Global Lighting Technologies Inc. and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024 and Independent Auditors' Report

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders
Global Lighting Technologies Inc.

Opinion

We have audited the accompanying consolidated financial statements of Global Lighting Technologies Inc. (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of June 30, 2025 and 2024, and the consolidated statements of comprehensive income for the three months ended June 30, 2025 and 2024, and for the six months ended June 30, 2025 and 2024, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2025 and 2024, and its consolidated financial performance for the three months ended June 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

Key audit matter is a matters that, in our professional judgment, was of most significance in our audit of the consolidated financial statements for the six months ended June 30, 2025. The matter was addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the matter.

The key audit matter in the audit of the Group’s consolidated financial statements for the six months ended June 30, 2025 is stated below:

Validity of Occurrence of Sales Revenue from Specific Customers

Since the Group is a listed company, management may be under pressure to meet the financial targets. Furthermore, operating revenue is one of the important indicators to measure the Group’s profitability and operating performance, and recognition of revenue is inherently a higher risk. The amount of revenue from specific customers for the six months ended June 30, 2025 was $603,497 thousand, which accounted for 21% of the consolidated operating revenue. The impact of the sales on the consolidated financial statements was significant. Therefore, we identified the validity of occurrence of sales revenue from specific customers as a key audit matter for the six months ended June 30, 2025.

Refer to Note 4 to the consolidated financial statements for the year ended December 31, 2024 for details on accounting policies. Refer to Note 21 to the consolidated financial statements for relevant disclosures of revenue recognition. Our main audit procedures performed in respect of the aforementioned key audit matter were as follows:

We obtained an understanding of the internal controls related to the aforementioned sales, assessed the design of the controls, determined that controls have been implemented and tested the operating effectiveness of these controls.
We performed substantive testing of the aforementioned sales, selected appropriate samples and checked them against the external transaction documents and the recovery of receivables. We verified the validity of the occurrence of the transactions and also checked for any abnormalities in payment collections.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our group audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the six months ended June 30, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors' report are Chao-Mei Chen and Chiang-Shiun Chen.

Deloitte & Touche
Taipei, Taiwan
Republic of China

August 26, 2025

Notice to Readers

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

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

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

	June 30, 2025		December 31, 2024		June 30, 2024
ASSETS	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 4,177,077	42	$ 4,440,799	42	$ 4,453,970	41
Financial assets at amortized cost (Note 7)	202,000	2	5,600	-	8,000	-
Notes receivable (Notes 9 and 21)	41	-	-	-	-	-
Accounts receivable (Notes 9 and 21)	1,265,740	13	1,666,160	16	1,609,173	15
Accounts receivable - related parties (Notes 21 and 28)	10,774	-	19,987	-	20,041	-
Other receivables (Note 9)	1,840	-	952	-	5,376	-
Current tax assets (Note 4)	4,244	-	4,245	-	2,605	-
Inventories (Note 10)	465,497	5	568,931	5	687,822	7
Prepayments	21,344	-	19,911	-	22,925	-
Other current assets (Note 11)	216,966	2	2,198	-	2,302	-
Total current assets	6,365,523	64	6,728,783	63	6,812,214	63
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income (Note 8)	185,697	2	531,287	5	545,592	5
Property, plant and equipment (Note 14)	2,502,564	25	2,565,888	24	2,566,570	23
Right-of-use assets (Note 15)	560,125	6	590,652	6	783,559	7
Deferred tax assets (Note 4)	44,264	-	45,904	-	67,625	1
Prepayments for equipment	-	-	132	-	4,729	-
Net defined benefit assets (Note 4)	12,968	-	12,482	-	15,094	-
Other non-current assets (Notes 11 and 29)	337,381	3	206,992	2	88,685	1
Total non-current assets	3,642,999	36	3,953,337	37	4,071,854	37
TOTAL	$ 10,008,522	100	$ 10,682,120	100	$ 10,884,068	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Contract liabilities (Note 21)	$ 4,791	-	$ 2,852	-	$ 2,912	-
Accounts payable	842,084	8	1,010,419	9	1,154,658	11
Accounts payable - related parties (Note 28)	179,629	2	162,958	2	155,575	2
Other payables (Note 17)	551,696	6	377,387	4	470,265	4
Other payables - related parties (Note 28)	1,752	-	3,070	-	4,940	-
Current tax liabilities (Note 4)	7,242	-	869	-	286	-
Lease liabilities (Notes 15 and 28)	11,005	-	12,831	-	27,591	-
Other current liabilities	5,795	-	6,896	-	6,869	-
Total current liabilities	1,603,994	16	1,577,282	15	1,823,096	17
NON-CURRENT LIABILITIES
Long-term borrowings (Note 16)	471,566	5	-	-	-	-
Provision for employee benefits (Note 4)	8,648	-	8,073	-	8,450	-
Deferred tax liabilities (Note 4)	2,652	-	2,562	-	3,083	-
Lease liabilities (Notes 15 and 28)	421,610	4	426,600	4	622,838	6
Long-term deferred revenue (Note 19)	54,991	1	62,710	-	64,037	-
Total non-current liabilities	959,467	10	499,945	4	698,408	6
Total liabilities	2,563,461	26	2,077,227	19	2,521,504	23
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 20)
Share capital	1,288,641	13	1,288,641	12	1,288,641	12
Capital surplus	2,348,423	23	2,348,423	22	2,348,423	22
Retained earnings
Special reserve	-	-	93,295	1	93,295	1
Unappropriated earnings	4,585,398	46	4,722,140	44	4,482,845	41
Total retained earnings	4,585,398	46	4,815,435	45	4,576,140	42
Other equity	(777,401)	(8)	152,394	2	149,360	1
Total equity attributable to owners of the Company	7,445,061	74	8,604,893	81	8,362,564	77
Total equity	7,445,061	74	8,604,893	81	8,362,564	77
TOTAL	$ 10,008,522	100	$ 10,682,120	100	$ 10,884,068	100

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

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

	For the Three Months Ended June 30				For the Six Months Ended June 30
	2025		2024		2025		2024
	Amount	%	Amount	%	Amount	%	Amount	%
OPERATING REVENUE
(Notes 21 and 28)	$ 1,438,770	100	$ 1,807,614	100	$ 2,831,274	100	$ 3,215,264	100
OPERATING COSTS
(Notes 10, 22 and 28)	1,193,722	83	1,489,739	82	2,403,429	85	2,667,175	83
GROSS PROFIT	245,048	17	317,875	18	427,845	15	548,089	17
OPERATING EXPENSES
(Notes 22 and 28)
Selling and marketing	31,345	2	41,099	2	63,328	2	76,141	2
General and administrative	78,984	6	93,569	5	166,717	6	175,090	6
Research and development	59,982	4	63,847	4	121,084	4	125,553	4
Expected credit (gain) loss
(Note 9)	13	-	8	-	(406)	-	407	-
Total operating expenses	170,324	12	198,523	11	350,723	12	377,191	12
PROFIT FROM OPERATIONS	74,724	5	119,352	7	77,122	3	170,898	5
NON-OPERATING INCOME AND EXPENSES (Note 22)
Interest income	42,447	3	53,636	3	81,596	3	102,962	3
Other income (Note 19)	746	-	749	-	1,638	-	1,810	-
Other gains and losses	(99,983)	(7)	(51,624)	(3)	(89,600)	(3)	(18,500)	-
Finance costs (Note 28)	(3,155)	-	(3,145)	-	(5,756)	(1)	(6,027)	-
Total non-operating income and expenses	(59,945)	(4)	(384)	-	(12,122)	(1)	80,245	3
PROFIT BEFORE INCOME TAX	14,779	1	118,968	7	65,000	2	251,143	8
INCOME TAX (EXPENSE)
BENEFIT (Notes 4 and 23)	(8,821)	(1)	44,252	2	(11,536)	-	41,057	1
NET PROFIT	5,958	-	163,220	9	53,464	2	292,200	9
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Unrealized loss on investments in equity instruments at fair value through other comprehensive income
(Note 20)	(384,057)	(27)	(14,855)	(1)	(366,919)	(13)	(13,355)	-
Exchange differences on translation to the presentation currency
(Note 20)	(1,024,037)	(71)	117,438	7	(913,469)	(32)	455,571	14
	(1,408,094)	(98)	102,583	6	(1,280,388)	(45)	442,216	14

(Continued)

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended June 30				For the Six Months Ended June 30
	2025		2024		2025		2024
	Amount	%	Amount	%	Amount	%	Amount	%

Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations (Note 20)	$ 379,607	27	$ (60,169)	(4)	$ 350,593	12	$ (199,561)	(6)
Total other comprehensive (loss) income	(1,028,487)	(71)	42,414	2	(929,795)	(33)	242,655	8
TOTAL COMPREHENSIVE (LOSS) INCOME	$ (1,022,529)	(71)	$ 205,634	11	$ (876,331)	(31)	$ 534,855	17
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 5,958	-	$ 163,220	9	$ 53,464	2	$ 292,200	9
Non-controlling interests	-	-	-	-	-	-	-	-
	$ 5,958	-	$ 163,220	9	$ 53,464	2	$ 292,200	9
TOTAL COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO:
Owners of the Company	$ (1,022,529)	(71)	$ 205,634	11	$ (876,331)	(31)	$ 534,855	17
Non-controlling interests	-	-	-	-	-	-	-	-
	$ (1,022,529)	(71)	$ 205,634	11	$ (876,331)	(31)	$ 534,855	17
EARNINGS PER SHARE (Note 24)
Basic	$ 0.04		$ 1.27		$ 0.41		$ 2.27
Diluted	$ 0.04		$ 1.26		$ 0.41		$ 2.26

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

(Concluded)

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Company (Note 20)
	Share Capital	Capital Surplus	Retained Earnings		Exchange Differences on Translation the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total Equity
			Special Reserve	Unappropriated Earnings
BALANCE ON JANUARY 1, 2024	$ 1,288,641	$ 2,348,423	$ 43,706	$ 4,433,530	$ (80,914)	$ (12,381)	$ 8,021,005
Appropriation of 2023 earnings
Special reserve	-	-	49,589	(49,589)	-	-	-
Cash dividends distributed by the Company	-	-	-	(193,296)	-	-	(193,296)
Net profit for the six months ended June 30, 2024	-	-	-	292,200	-	-	292,200
Other comprehensive income (loss) for the six months ended June 30, 2024, net of income tax	-	-	-	-	256,010	(13,355)	242,655
Total comprehensive income (loss) for the six months ended June 30, 2024	-	-	-	292,200	256,010	(13,355)	534,855
BALANCE ON JUNE 30, 2024	$ 1,288,641	$ 2,348,423	$ 93,295	$ 4,482,845	$ 175,096	$ (25,736)	$ 8,362,564
BALANCE ON JANUARY 1, 2025	$ 1,288,641	$ 2,348,423	$ 93,295	$ 4,722,140	$ 220,637	$ (68,243)	$ 8,604,893
Appropriation of 2024 earnings
Reversal of special reserve	-	-	(93,295)	93,295	-	-	-
Cash dividends distributed by the Company	-	-	-	(283,501)	-	-	(283,501)
Net profit for the six months ended June 30, 2025	-	-	-	53,464	-	-	53,464
Other comprehensive loss for the six months ended June 30, 2025, net of income tax	-	-	-	-	(562,876)	(366,919)	(929,795)
Total comprehensive income (loss) for the six months ended June 30, 2025	-	-	-	53,464	(562,876)	(366,919)	(876,331)
BALANCE ON JUNE 30, 2025	$ 1,288,641	$ 2,348,423	$ -	$ 4,585,398	$ (342,239)	$ (435,162)	$ 7,445,061

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

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)

	For the Six Months Ended June 30
	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$ 65,000	$ 251,143
Adjustments for:
Depreciation expense	172,821	186,809
Expected credit (gains) losses	(406)	407
Interest expense	5,756	6,027
Interest income	(81,596)	(102,962)
Loss on inventories valuation and obsolescence	20,386	11,433
Loss (gain) on disposal of property, plant and equipment	700	(557)
Impairment loss recognized on property, plant and equipment	-	66,964
Unrealized (gain) loss on foreign currency exchanges	(18,621)	13,289
Amortization of long-term deferred revenue	(1,393)	(1,412)
Net changes in operating assets and liabilities
Notes receivable	(41)	-
Accounts receivable	297,157	(178,203)
Accounts receivable - related parties	7,869	2,686
Other receivables	(1,363)	2,190
Inventories	49,113	(175,436)
Prepayments	(3,002)	(7,008)
Other current assets	107	665
Net defined benefit assets	(486)	(278)
Contract liabilities	2,435	(198)
Accounts payable	(94,952)	305,722
Accounts payable - related parties	20,118	39,761
Other payables	(37,810)	(42,931)
Other payables - related parties	(1,304)	(1,555)
Other current liabilities	(660)	(222)
Provision for employee benefits	575	555
Cash generated from operations	400,403	376,889
Interest received	82,050	101,999
Interest paid	(5,528)	(6,027)
Income tax paid	(5,046)	(16,381)
Net cash generated from operating activities	471,879	456,480
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	(37,000)	(223,346)
Purchase of financial assets at amortized cost	(202,000)	(8,000)
Principal from financial assets measured at amortized cost	5,600	-
Payments for property, plant and equipment (Note 25)	(207,075)	(84,517)
Proceeds from disposal of property, plant and equipment	406	707
Decrease in refundable deposits	27	-
		(Continued)

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)

	For the Six Months Ended June 30
	2025	2024
Payments for right-of-use assets (Note 25)	$ -	$ (129,265)
Increase in other financial assets - restricted assets	(235,836)	-
Increase in other non-current assets	(147,956)	(68,176)
Net cash used in investing activities	(823,834)	(512,597)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	-	100,000
Decrease in short-term borrowings	-	(100,000)
Proceeds from long-term borrowings	479,900	-
Repayment of the principal portion of lease liabilities	(6,411)	(20,992)
Net cash generated from (used in) financing activities	473,489	(20,992)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	(385,256)	178,227
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(263,722)	101,118
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	4,440,799	4,352,852
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$ 4,177,077	$ 4,453,970

The accompanying notes are an integral part of the consolidated financial statements. (Concluded)

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Global Lighting Technologies Inc. (the "Company", and its subsidiaries collectively referred to as the "Group") was incorporated in the Cayman Islands on July 28, 2000. The Group is mainly engaged in the design, manufacturing, and sales of applications of light guide plates, development of optical molds and the manufacturing, and sales of plastic components. The Company's shares have been listed on the Taiwan Stock Exchange (TWSE) since July 28, 2011.

The functional currency of the Company is the United States dollar. As the Company's shares are listed on the TWSE, for greater comparability and consistency of financial reporting, the consolidated financial statements are presented in New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on August 15, 2025.

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

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

Amendments to IAS 21 "Lack of Exchangeability"

The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Group's accounting policies.

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group's financial position and financial performance.

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

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

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

IFRS 18 “Presentation and Disclosure in Financial Statements”

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes 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.
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.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Statement of Compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

13 -

Basis of Preparation

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

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

a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

b. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

c. Level 3 inputs are unobservable inputs for an asset or liability.

Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those by the Company.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

See Note 12, Tables 6 and 7 for the detailed information of subsidiaries (including percentages of ownership and main businesses).

Other Material Accounting Policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.

a. Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

b. Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

14 -

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Group considers the possible impact of climate change, US reciprocal tariffs and related government policies and regulations on the cash flow projection, growth rates, discount rates, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

6. CASH AND CASH EQUIVALENTS

	June 30, 2025	December 31, 2024	June 30, 2024
Cash on hand	$ 2,092	$ 1,417	$ 1,787
Checking accounts and demand deposits	4,049,311	3,586,612	4,281,323
Cash equivalents
Time deposits with original maturities of 3 months or less	125,674	852,770	170,860
	$ 4,177,077	$ 4,440,799	$ 4,453,970

7. FINANCIAL ASSETS AT AMORTIZED COST

	June 30, 2025	December 31, 2024	June 30, 2024
Current
Time deposits with original maturities of more than 3 months	$ 202,000	$ 5,600	$ 8,000

The interest rates for time deposits with original maturities of more than 3 months were approximately 1.61%-1.69%, 1.46%-1.53% and 1.33%-1.53% per annum as of June 30, 2025, December 31, 2024 and June 30, 2024, respectively.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	June 30, 2025	December 31, 2024	June 30, 2024
Non-current
Domestic investments
Unlisted shares
Top Taiwan XIII Venture Capital Co., Ltd.	$ 84,100	$ 99,200	$ 94,400
J-MEX Inc.	31,913	69,708	42,550
Smobio Technology, Inc.	33,847	-	-
	149,860	168,908	136,950
			(Continued)

15 -

	June 30, 2025	December 31, 2024	June 30, 2024
Foreign investments
Unlisted shares
Sensel Inc.	$ -	$ 321,664	$ 343,742
Cytesi Inc.	35,837	40,715	64,900
	35,837	362,379	408,642
	$ 185,697	$ 531,287	$ 545,592
			(Concluded)

These investments in equity instruments are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes.

The Board of Directors resolved to dissolve and liquidate Sensel Inc. in June 2025. As of June 30, 2025, the liquidation process was still in progress. The Group recognized the fair value loss of $310,294 thousand for the six months ended June 30, 2025, which was accounted for as an unrealized loss on financial assets at fair value through other comprehensive income.

In April and May 2024, the Group participated in the capital increase of the foreign investment company with US$7,000 thousand (equivalent to NT$223,346 thousand) for medium- to long-term strategic purposes; the management designated these investments as at FVTOCI.

In March 2025 and October 2024, the Group participated in the capital increase of the domestic investment company with $37,000 thousand and $25,000 thousand, respectively for medium- to long-term strategic purposes; the management designated these investments as at FVTOCI.

9. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

	June 30, 2025	December 31, 2024	June 30, 2024
Notes receivable
At amortized cost
Gross carrying amount	$ 41	$ -	$ -
Less: Allowance for impairment loss	-	-	-
	$ 41	$ -	$ -
Accounts receivable
At amortized cost
Gross carrying amount	$ 1,265,740	$ 1,666,576	$ 1,609,585
Less: Allowance for impairment loss	-	(416)	(412)
	$ 1,265,740	$ 1,666,160	$ 1,609,173
Other receivables
At amortized cost	$ 1,840	$ 952	$ 5,376

a. Notes receivable and accounts receivable

The average credit period of sales of goods is 60 to 120 days on a monthly basis. The Group adopted a policy of only dealing with entities that are rated the equivalent of investment grade or higher, and credit exposure is controlled by counterparty limits that are reviewed and approved annually.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates and industry outlook. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base. The Group assesses the possibility of recovery based on the past due days of accounts receivables and determines the expected credit loss rate by reference to default risk as a weight.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable based on the Group's provision matrix.

| | June 30, 2025
Not Past Due | December 31, 2024
Not Past Due | June 30, 2024
Not Past Due |
| --- | --- | --- | --- |
| Expected credit loss rate | 0% | 0% | 0% |
| Gross carrying amount | $ 41 | $ - | $ - |
| Loss allowance (Lifetime ECLs) | - | - | - |
| Amortized cost | $ 41 | $ - | $ - |

The following table details the loss allowance of accounts receivable based on the Group's provision matrix.

June 30, 2025

	Not Past Due	Up to 30 Days	31 to 60 Days	61 to 90 Days	91 to 180 Days	181 to 270 Days	Over 271 Days	Total
Expected credit loss rate	0%	0%	0%	0%	0%	0%	0%
Gross carrying amount	$ 1,241,388	$ 20,524	$ 1,924	$ 1,820	$ 84	$ -	$ -	$ 1,265,740
Loss allowance (Lifetime ECL)	-	-	-	-	-	-	-	-
Amortized cost	$ 1,241,388	$ 20,524	$ 1,924	$ 1,820	$ 84	$ -	$ -	$ 1,265,740

December 31, 2024

	Not Past Due	Up to 30 Days	31 to 60 Days	61 to 90 Days	91 to 180 Days	181 to 270 Days	Over 271 Days	Total
Expected credit loss rate	0%	0%	0%	0%	0%	0%	100%
Gross carrying amount	$ 1,574,389	$ 75,279	$ 16,341	$ 39	$ -	$ 112	$ 416	$ 1,666,576
Loss allowance (Lifetime ECL)	-	-	-	-	-	-	(416)	(416)
Amortized cost	$ 1,574,389	$ 75,279	$ 16,341	$ 39	$ -	$ 112	$ -	$ 1,666,160

June 30, 2024

	Not Past Due	Up to 30 Days	31 to 60 Days	61 to 90 Days	91 to 180 Days	181 to 270 Days	Over 271 Days	Total
Expected credit loss rate	0%	0%	0%	0%	0%	0%	100%
Gross carrying amount	$ 1,559,604	$ 47,863	$ 398	$ 148	$ 1,129	$ 31	$ 412	$ 1,609,585
Loss allowance (Lifetime ECL)	-	-	-	-	-	-	(412)	(412)
Amortized cost	$ 1,559,604	$ 47,863	$ 398	$ 148	$ 1,129	$ 31	$ -	$ 1,609,173

For the six months ended June 31, 2025 and 2024, the loss allowance of accounts receivable were as follows:

	For the Six Months Ended June 30
	2025	2024
Balance on January 1	$ 416	$ -
Add: Impairment loss recognized	-	407
Less: Reversed of impairment loss	(406)	-
Foreign exchange gains and losses	(10)	5
Balance on June 30	$ -	$ 412

b. Other receivables

Other receivables comprise value-added tax refund receivable and outstanding interest receivables from banks. The Group only transacts with counterparties that have good credit ratings and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group continues to engage in enforcement activity to trace the conditions of the receivables with reference to the past default experience of the debtor and an analysis of the debtor's current financial position, in determining whether the credit risk of other receivables has increased significantly since initial recognition as well as for measuring the expected credit losses. As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group assessed that the expected credit loss of other receivables was considered to be 0%.

10. INVENTORIES

	June 30, 2025	December 31, 2024	June 30, 2024
Raw materials	$ 241,935	$ 231,617	$ 342,843
Work in process	33,968	38,374	47,179
Finished goods	166,273	279,688	257,920
Inventory in transit	23,321	19,252	39,880
	$ 465,497	$ 568,931	$ 687,822

The nature of the cost of goods sold is as follows:

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Cost of inventories sold	$ 1,194,744	$ 1,484,426	$ 2,383,043	$ 2,655,742
Inventory write-downs	(1,022)	5,313	20,386	11,433
	$ 1,193,722	$ 1,489,739	$ 2,403,429	$ 2,667,175

11. OTHER ASSETS

	June 30, 2025	December 31, 2024	June 30, 2024
Current
Other financial assets - restricted assets	$ 215,066	$ -	$ -
Others	1,900	2,198	2,302
	$ 216,966	$ 2,198	$ 2,302
Non-current
Prepayments for land	$ 315,892	$ 187,649	$ -
Other financial assets - restricted assets (Note 29)	20,756	18,510	18,510
Refundable deposits	733	833	70,175
	$ 337,381	$ 206,992	$ 88,685

Other financial assets - restricted assets as of June 30, 2025, were held in a designated account to pay the retained funds for the 2024 cash dividends, which were distributed on July 11, 2025.

The Group acquired land from a unrelated party for the total contract price of $350,992 thousand (THB390,000 thousand). As of June 30, 2025, the Group has paid $315,892 thousand (THB351,000 thousand), which was recognized as prepayment for the land.

12. SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

Investor	Investee	Nature of Activities	Proportion of Ownership (%)
			June 30, 2025	December 31, 2024	June 30, 2024
Global Lighting Technologies Inc. (Cayman)	Solid State OPTO Limited (BVI) (Solid State OPTO)	Holding company engaged in the sale of products	100.00	100.00	100.00
	Solid State Display Limited (BVI) (Solid State Display)	Holding company engaged in the sale of products	100.00	100.00	100.00
	Solid State Technology Limited (BVI) (Solid State Technology)	Holding company engaged in the sale of products	100.00	100.00	100.00
	Solid State Electronics Limited (BVI) (Solid State Electronics)	Holding company engaged in the sale of products	100.00	100.00	100.00
	Shining Green Limited (Shining Green)	Holding company	100.00	100.00	100.00
	Global Lighting Technologies Inc. (GLT-Taiwan)	Design, production, and sale of applications of light guide plates, design and production of optical molds, and sales of plastic products for electronic components	23.36	23.36	23.36

(Continued)

Investor	Investor	Nature of Activities	Proportion of Ownership (%)
			June 30, 2025	December 31, 2024	June 30, 2024
Solid State OPTO	Global Lighting Technologies Inc. (GLT-USA)	Design and sale of applications of light guide plates	100.00	100.00	100.00
Solid State Display	Global Lighting Technologies Inc. (GLT-Taiwan)	Design, production, and sale of applications of light guide plates, design and production of optical molds, and sales of plastic products for electronic components	76.64	76.64	76.64
Solid State Technology	Suzhou Opto Technologies Inc. (GLT-Suzhou Opto)	Design, production, and sale of applications of light guide plates and monitor, design of optical molds, and production and sale of plastic products for electronic use	100.00	100.00	100.00
	Global Lighting Technology (Thailand) Co., Ltd. (GLT-Thailand) (Note 1)	Design, production, and sale of applications of light guide plates, design of optical molds, and production and sale of plastic products for electronic components	100.00	100.00	-
Solid State Electronics	Shanghai Global Lighting Technologies Inc. (GLT-Shanghai) (Note 2)	Design, production, and sale of applications of light guide plates, design of optical molds, and production and sale of plastic products for electronic components	100.00	100.00	100.00
Shining Green	Zhongshan Global Lighting Technology Limited Co. (GLT-Zhongshan) (Note 3)	Production, and sale of applications of light guide plates	100.00	100.00	100.00
Global Lighting Technologies Inc. (Taiwan)	Hao Yuan Technology Limited Co. (Hao Yuan Technology)	Investment industry; wholesale and retail sale of electronic materials	100.00	100.00	100.00
	Global Lighting Technologies (Vietnam) Limited Liability Company (GLT-Vietnam)	Production and sale of applications of light guide plates, design of optical molds, and production and sale of plastic products for electronic components	100.00	100.00	100.00

Note 1: In July 2024, the Company established GLT-Thailand with a registered capital of THB420,000 thousand. GLT-Thailand is mainly engaged in production and sale of applications of light guide plates, design of optical molds, and production and sale of plastic products for electronic components. To align with the Group's capital arrangement, it is planned to process capital injections in stages according to the progress of plant establishment. As of June 30, 2025, the Company had invested US$11,500 thousand (THB394,000 thousand).

Note 2: In order to enhance the Group's capital planning, the board of directors of GLT-Shanghai resolved to reduce the capital by US$10,000 thousand on February 18, 2025. The procedure of capital reduction was completed and approved by Shanghai Municipal Administration for Market Regulation on April 7, 2025. The refunded capital had been repatriated in April 2025.

Note 3: In order to integrate the Group's resources, there was no longer an operational need for GLT Zhongshan. The Board of Directors resolved to dissolve and liquidate in April 30, 2025, and was approved by Zhongshan Municipal Administration for Market Regulation on August 15, 2025.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	June 30, 2025	December 31, 2024	June 30, 2024
Unlisted shares
Asensetek Incorporation	$ -	$ -	$ -
Proportion of the Group’s ownership:
	June 30, 2025	December 31, 2024	June 30, 2024
Asensetek Incorporation	-	27.15%	27.15%

Due to continuous operating losses of Asensetek Incorporation, the Group has recognized the full carrying amount of the investment for impairment losses after assessing the recoverable amount in the previous year. The shareholders' meeting of Asensetek Incorporation resolved on March 21, 2025, to proceed with the company's dissolution and liquidation. The dissolution was approved by the New Taipei City Government on June 6, 2025.

As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group's investments accounted for using the equity method for the six months ended June 30, 2025 and 2024 and the share of profit or loss and other comprehensive income from the investments were recognized based on the unaudited financial statements; however, the Group considered that there was no significant impact on the consolidated financial statements.

14. PROPERTY, PLANT AND EQUIPMENT

	Freehold Land	Buildings	Machine Equipment	Molding Equipment	Leasehold Improvements	Other Equipment	Equipment to Be Inspected or under Construction	Total
Cost
Balance on January 1, 2025	$ 167,176	$ 2,552,755	$ 2,614,704	$ 74,258	$ 29,352	$ 424,722	$ 219,030	$ 6,081,997
Additions	-	2,160	3,638	-	-	6,814	163,809	176,421
Disposals	-	-	(2,403)	-	(6,106)	(6,482)	-	(14,991)
Reclassifications	-	373	5,547	-	-	3,466	(10,260)	(874)
Effects of foreign currency exchange differences	-	(79,406)	(128,867)	(7,619)	(2,633)	(24,171)	(34,529)	(277,225)
Balance on June 30, 2025	167,176	2,475,882	2,492,619	66,639	20,613	404,349	338,050	5,965,328
Accumulated depreciation and impairment
Balance on January 1, 2025	-	1,060,984	1,973,102	72,278	27,904	381,841	-	3,516,109
Depreciation expenses	-	43,450	108,634	989	67	10,323	-	163,463
Disposals	-	-	(2,403)	-	(5,208)	(6,274)	-	(13,885)
Reclassifications	-	-	-	-	-	-	-	-
Effects of foreign currency exchange differences	-	(52,243)	(117,935)	(7,490)	(2,555)	(22,700)	-	(202,923)
Balance on June 30, 2025	-	1,052,191	1,961,398	65,777	20,208	363,190	-	3,462,764
Carrying amount at June 30, 2025	$ 167,176	$ 1,423,691	$ 531,221	$ 862	$ 405	$ 41,159	$ 338,050	$ 2,502,564
Carrying amount at December 31, 2024 and January 1, 2025	$ 167,176	$ 1,491,771	$ 641,602	$ 1,980	$ 1,448	$ 42,881	$ 219,030	$ 2,565,888
Cost
Balance on January 1, 2024	$ 167,176	$ 2,515,892	$ 3,167,485	$ 69,212	$ 196,041	$ 416,942	$ 32,068	$ 6,564,816
Additions	-	785	10,185	-	-	12,781	55,474	79,225
Disposals	-	-	(10,595)	-	-	(7,201)	-	(17,796)
Reclassifications	-	-	28,391	-	-	769	(29,160)	-
Effects of foreign currency exchange differences	-	37,117	55,733	3,482	10,001	11,979	304	118,616
Balance on June 30, 2024	167,176	2,553,794	3,251,199	72,694	206,042	435,270	58,686	6,744,861
Accumulated depreciation and impairment
Balance on January 1, 2024	-	952,502	2,359,552	66,314	109,830	373,645	-	3,861,843
Impairment loss recognized	-	-	7,587	-	59,377	-	-	66,964
Depreciation expenses	-	43,849	111,246	1,147	3,923	9,803	-	169,968
Disposals	-	-	(10,595)	-	-	(7,051)	-	(17,646)
Effects of foreign currency exchange differences	-	22,727	53,362	3,352	6,542	11,179	-	97,162
Balance on June 30, 2024	-	1,019,078	2,521,152	70,813	179,672	387,576	-	4,178,291
Carrying amount at June 30, 2024	$ 167,176	$ 1,534,716	$ 730,047	$ 1,881	$ 26,370	$ 47,694	$ 58,686	$ 2,566,570

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings

Main buildings

Decorating constructions

Machine equipment

Molding equipment

Leasehold improvements

Other equipment

15-50 years

5-31 years

3-8 years

2 years

5 years

3-10 years

There was no impairment of the property, plant and equipment for the six months ended June 30, 2025.

The decorating constructions of part of the buildings and machine equipment no longer met manufacturing needs; in consideration of future operating plans and current capacity plans, the Group estimated that there would be no future cash inflows from these assets, and the value-in-use was $0. The recoverable amounts of these assets were therefore assessed to be lower than their carrying amounts, leading to the recognition of an impairment loss of $66,964 thousand which was recognized in other gains and losses for the six months ended June 30, 2024.

15. LEASE ARRANGEMENTS

a. Right-of-use assets

	June 30, 2025	December 31, 2024	June 30, 2024
Carrying amount
Land	$ 389,935	$ 394,988	$ 400,041
Buildings	2,067	3,854	189,946
Land use rights	167,690	190,640	191,736
Transportation equipment	74	168	249
Other equipment	359	1,002	1,587
	$ 560,125	$ 590,652	$ 783,559
	For the Three Months Ended June 30	For the Six Months Ended June 30
	2025	2024	2025
Additions to right-of-use assets		$ -	$ 155,544
Depreciation charge for right-of-use assets
Land	$ 2,526	$ 2,551	$ 5,053
Buildings	723	4,454	1,496
Land use rights	945	1,172	2,144
Transportation equipment	40	42	82
Other equipment	281	297	583
	$ 4,515	$ 8,516	$ 9,358

Except for the additions and recognition of depreciation expenses listed above, there was no significant sublease or impairment of the Group's right-of-use assets for the six months ended June 30, 2025 and 2024.

b. Lease liabilities

	June 30, 2025	December 31, 2024	June 30, 2024
Carrying amount
Current	$ 11,005	$ 12,831	$ 27,591
Non-current	$ 421,610	$ 426,600	$ 622,838

The discount rates for lease liabilities were as follows:

	June 30, 2025	December 31, 2024	June 30, 2024
Land	1.555%	1.555%	1.555%
Buildings	4.750%	4.750%	1.750%-4.750%
Transportation equipment	3.700%	3.700%	1.333%
Other equipment	6.910%	6.910%	6.910%

c. Material leasing activities and terms

The Group leases certain land and buildings for the use of plants and office spaces with lease terms of 1 to 20 years. The Group does not have bargain purchase options to acquire the leased assets at the end of the lease terms.

The Group also leases certain transportation equipment and other equipment with lease terms of 3 to 5 years. The Group does not have bargain purchase options to acquire the transportation equipment at the end of the lease terms.

Land use rights are amortized using the straight-line method over 45-50 years.

The Group leased a factory from Wistron Zhongshan Company in 2013. The agreement was terminated in December 2024.

d. Other lease information

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Expenses relating to short-term leases	$ 1,305	$ 2,324	$ 2,739	$ 4,624
Expenses relating to low-value asset leases	$ 454	$ 313	$ 742	$ 605
Total cash outflow for leases			$ (13,365)	$ (160,947)

The Group's leases of certain office space, dormitories and parking lots qualify as short-term leases and low-value asset leases. The Group has elected to apply the recognition exemption and thus did not recognize right-of-use assets and lease liabilities for these leases.

16. BORROWINGS

Long-term Borrowings

	June 30, 2025	December 31, 2024	June 30, 2024
Secured borrowings
Bank loans	$ 81,566	$ -	$ -
Unsecured borrowings
Bank loans	390,000	-	-
Less: Current portion	-	-	-
Long-term borrowings	$ 471,566	$ -	$ -
	Nature of Activities	June 30, 2025	December 31, 2024
Secured borrowings
Chinatrust Commercial Bank	The period is from June 25, 2025 to June 5, 2030, and the principal will be repaid in 13 installments starting from June of 2027.	$ 81,566	$ -
Unsecured borrowings
Taipei Fubon Commercial Bank	The period is from January 2, 2025 to January 2, 2030, and the principal will be repaid in 36 installments starting from February of 2027. The period is from February 24, 2025 to January 2, 2030, and the principal will be repaid in 34 installments starting from March of 2027.	120,000	-
		270,000	-
Less: Current portion		471,566	-
Long-term borrowings		$ 471,566	$ -

The range of interest rates on bank loan-term borrowings was 1.39%-4.80% per annum as of June 30, 2025.

24 -

17. OTHER PAYABLES

	June 30, 2025	December 31, 2024	June 30, 2024
Payable for dividends	$ 283,501	$ -	$ 193,296
Payable for salaries and bonuses	189,157	248,289	180,973
Payable for commission	8,768	12,806	12,827
Payable for purchase equipment	5,849	36,635	8,750
Others	64,421	79,657	74,419
	$ 551,696	$ 377,387	$ 470,265

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

GLT-Taiwan adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

GLT-Shanghai, GLT-Suzhou Opto, GLT-Zhongshan and GIT-Vietnam, the Group's subsidiaries in mainland China and Vietnam, are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits, the contribution ratios were 16%, 16%, 14% and 14%, respectively. GLT-USA, the Group's subsidiary in the U.S. allocates pension according to the 401(K) plan.

There were no pension plans for Global Lighting Technologies (Cayman), Solid State OPTO, Solid State Display, Solid State Technology, Solid State Electronics, Shining Green, GLT-Thailand and Hao Yuan Technology since these companies had no regular employees.

Pension expenses for these defined contribution plans are classified under the following accounts:

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Operating costs	$ 12,493	$ 13,696	$ 25,935	$ 26,997
Operating expenses	$ 4,046	$ 4,142	$ 8,369	$ 11,045

b. Defined benefit plan

For the three months ended June 30, 2025 and 2024 and for the six months ended June 30, 2025 and 2024, the pension expenses of defined benefit plans were $287 thousand, $278 thousand, $575 thousand and $555 thousand, respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2024 and 2023, respectively.

25 -

19. LONG-TERM DEFERRED REVENUE

In 2006 to 2008, the Group received a government grant for relocating its factory in accordance with the Suzhou government land planning policy. The subsidy was recognized as long-term deferred revenue, which is amortized and recognized as realized long-term deferred revenue over its estimated useful life (under the line item of non-operating income and expenses - other income).

Since July 2019, the Group received testing equipment donated from non-shareholders, which were recognized as long-term deferred revenue, and the realized long-term deferred revenue (under the line item of non-operating income and expense - other income) is amortized over the estimated useful life of the testing equipment.

As of June 30, 2025, December 31, 2024 and June 30, 2024, long-term deferred revenue was $54,991 thousand, $62,710 thousand and $64,037 thousand, respectively.

The Group’s realized long-term deferred revenue recognized as other income and government grants related to income are as follows:

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Realized long-term deferred revenue	$ 672	$ 716	$ 1,393	$ 1,412
Received from government grants related to income	-	19	147	353
	$ 672	$ 735	$ 1,540	$ 1,765

20. EQUITY

a. Share capital - ordinary shares

	June 30, 2025	December 31, 2024	June 30, 2024
Number of shares authorized (in thousands)	360,000	360,000	360,000
Shares authorized	$ 3,600,000	$ 3,600,000	$ 3,600,000
Number of shares issued and fully paid (in thousands)	128,864	128,864	128,864
Shares issued and fully paid	$ 1,288,641	$ 1,288,641	$ 1,288,641

A holder of issued ordinary shares with par value of NT$10 is entitled to vote and to receive dividends.

b. Capital surplus

	June 30, 2025	December 31, 2024	June 30, 2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Issuance of ordinary shares	$ 2,199,672	$ 2,199,672	$ 2,199,672
Expiry of employee share options	85,068	85,068	85,068
Donations	39,702	39,702	39,702
May be used to offset a deficit only
Share of changes in capital surplus of associates	23,981	23,981	23,981
	$ 2,348,423	$ 2,348,423	$ 2,348,423

The capital surplus from shares issued in excess of par could be used to offset deficits; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to capital (limited to a certain percentage of the Company's paid-in capital and once a year).

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Company's Articles of Incorporation, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years and setting aside as special reserve in accordance with the laws and regulations. The current year's distributable earnings are the current year's net profit after deduction of the aforementioned amounts plus the accumulated undistributed retained earnings. The board of directors may approve all or part of the distributable surplus in the current year to be distributed as dividends (including cash dividends or share dividends) in the current year in consideration of financial, business and other operating factors. However, dividends to be distributed for the current year should not be lower than 10% of the net profit after tax for the current year if the profit has not been used to offset losses or set aside as special reserve. Additionally, cash dividends should not be lower than 10% of the total dividends to be distributed for the current year. For policies on the distribution of employees' compensation and remuneration of directors, refer to employees' compensation and remuneration of directors in Note 22(g).

When a special reserve is appropriated for cumulative net debit balance reserves from prior period during surplus distribution, the sum of net profit for current period and items other than net profit that are included directly in the unappropriated earnings for current period is used if the prior unappropriated earnings is not sufficient. Before the Articles is amended, the special reserve is appropriated from the prior unappropriated earnings.

The appropriations of earnings for 2024 and 2023, which were approved in the shareholders' meetings on May 28, 2025 and May 28, 2024, respectively, were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
(Reversals) special reserve	$ (93,295)	$ 49,589
Cash dividends	$ 283,501	$ 193,296
Cash dividends per share (NT$)	$ 2.2	$ 1.5

d. Other equity items

Exchange differences on the translation of the financial statements of foreign operations

	For the Six Months Ended June 30
	2025	2024
Balance on January 1	$ 220,637	$ (80,914)
Recognized for the period
Exchange differences on translation to the presentation currency	(913,469)	455,571
Exchange differences on the translation of the financial statements of foreign operations	350,593	(199,561)
Balance on June 30	$ (342,239)	$ 175,096
Unrealized gain (loss) on financial assets at FVTOCI
	For the Six Months Ended June 30
	2025	2024
Balance on January 1	$ (68,243)	$ (12,381)
Recognized for the period
Unrealized loss	(366,919)	(13,355)
Balance on June 30	$ (435,162)	$ (25,736)

REVENUE

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Revenue from contracts with customers
Revenue from the sale of goods	$ 1,435,177	$ 1,803,904	$ 2,825,332	$ 3,208,215
Revenue from commission	3,593	3,710	5,942	7,049
	$ 1,438,770	$ 1,807,614	$ 2,831,274	$ 3,215,264

a. Contract balances

	June 30, 2025	December 31, 2024	June 30, 2024	January 1, 2024
Notes receivable (Note 9)	$ 41	$ -	$ -	$ -
Accounts receivable (Note 9)	$ 1,265,740	$ 1,666,160	$ 1,609,173	$ 1,377,975
Accounts receivable - related parties (Note 28)	$ 10,774	$ 19,987	$ 20,041	$ 21,763
Contract liabilities
Sale of goods	$ 4,791	$ 2,852	$ 2,912	$ 3,014

The changes in the balance of contract liabilities primarily result from the timing difference between the Group's satisfaction of performance obligations and the respective customer's payment.

Revenue recognized in the current year from the satisfaction of performance obligations of contract liabilities at the beginning of the year is as follows:

	For the Six Months Ended June 30
	2025	2024
From contract liabilities at the beginning of the year
Sale of goods	$ 2,852	$ 3,014

b. Disaggregation of revenue

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Applications of light guide plates	$ 1,187,045	$ 1,585,458	$ 2,339,925	$ 2,817,330
Plastic components	248,132	218,446	485,407	390,885
Revenue from commission	3,593	3,710	5,942	7,049
	$ 1,438,770	$ 1,807,614	$ 2,831,274	$ 3,215,264

22. NET PROFIT

a. Interest income

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Bank deposits	$ 42,447	$ 53,636	$ 81,596	$ 102,962

b. Other income

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Government grants (Note 19)	$ 672	$ 735	$ 1,540	$ 1,765
Others	74	14	98	45
	$ 746	$ 749	$ 1,638	$ 1,810

c. Other gains and losses

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
(Loss) gain on foreign currency exchange	$ (100,016)	$ 14,895	$ (88,900)	$ 47,907
Impairment loss recognized on property, plant and equipment	-	(66,964)	-	(66,964)
(Loss) gain on disposal of property, plant and equipment	33	445	(700)	557
	$ (99,983)	$ (51,624)	$ (89,600)	$ (18,500)

d. Finance costs

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Interest on lease liabilities	$ 1,722	$ 2,741	$ 3,473	$ 5,461
Interest on bank loans	1,433	404	2,283	566
	$ 3,155	$ 3,145	$ 5,756	$ 6,027

e. Depreciation

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Property, plant and equipment	$ 80,482	$ 85,012	$ 163,463	$ 169,968
Right-of-use assets	4,515	8,516	9,358	16,841
	$ 84,997	$ 93,528	$ 172,821	$ 186,809
An analysis of depreciation by function
Operating costs	$ 64,314	$ 71,872	$ 130,685	$ 143,664
Operating expenses	20,683	21,656	42,136	43,145
	$ 84,997	$ 93,528	$ 172,821	$ 186,809

f. Employee benefit expenses

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Post-employment benefit (Note 18)
Defined contribution plans	$ 16,539	$ 17,838	$ 34,304	$ 38,042
Defined benefit plans	287	278	575	555
Payroll expenses	189,045	210,940	381,822	404,643
Labor and health insurance expenses	17,096	16,508	36,055	34,656
Remuneration of directors	1,323	2,759	3,165	5,908
Other employee benefits	14,821	16,609	30,240	32,161
Total employee benefit expenses	$ 239,111	$ 264,932	$ 486,161	$ 515,965
An analysis of employee benefit expense by function
Operating costs	$ 153,829	$ 170,159	$ 307,247	$ 331,936
Operating expenses	85,282	94,773	178,914	184,029
	$ 239,111	$ 264,932	$ 486,161	$ 515,965

g. Employees' compensation and remuneration of directors

The Company accrued employees' compensation and remuneration of directors at the rates between 1% to 15% and not higher than 1.5% of net profit before income tax, employees' compensation, and remuneration of directors. The employees' compensation and remuneration of directors for the six months ended June 30, 2025 and 2024 which estimated based on the profit before income tax without considering the effect of employees' compensation and remuneration of directors, were as follows:

Accrual rate

	For the Six Months Ended June 30
	2025	2024
Employees' compensation	5.0%	5.0%
Remuneration of directors	1.5%	1.5%

Amount

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
	Cash	Cash	Cash	Cash
Employees' compensation	$ 402	$ 8,729	$ 2,942	$ 15,626
Remuneration of directors	121	2,619	883	4,688

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

The employees' compensation and remuneration of directors for the years ended December 31, 2024 and 2023 which had been approved by the Company's board of directors on February 27, 2025 and February 26, 2024, respectively, were as follows:

	For the Year Ended December 31
	2024	2023
	Cash	Cash
Employees' compensation	$ 28,285	$ 17,722
Remuneration of directors	8,486	5,317

There was no difference between the actual amounts of employees' compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on the employees' compensation and remuneration of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

h. Gains or losses on foreign currency exchange

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Foreign currency exchange gains	$ 30,397	$ 31,125	$ 53,035	$ 71,639
Foreign currency exchange losses	(130,413)	(16,230)	(141,935)	(23,732)
Net gain	$ (100,016)	$ 14,895	$ (88,900)	$ 47,907

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense (benefit) are as follows:

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Current tax
In respect of the current period	$ 2,275	$ 5,135	$ 4,479	$ 9,613
Unappropriated retained earnings	7,842	-	7,842	-
Adjustments for prior years	(787)	(4,082)	(787)	(4,082)
Deferred tax
In respect of the current period	(509)	(45,305)	2	(46,588)
Income tax expense (benefit) recognized in profit or loss	$ 8,821	$ (44,252)	$ 11,536	$ (41,057)

The income tax rates of the entities in the Group based on the operating jurisdictions of the respective entities are as follows:

1) GLT-USA: 21%
2) GLT-Taiwan and Hao Yun Technology: 20%
3) GLT-Shanghai and GLT-Zhongshan: 25%
4) GLT-Suzhou Opto: and qualified as a high-tech enterprise is 15%
5) GLT-Vietnam is entitled to income tax incentives based on the Law on Foreign Investment in Vietnam and is entitled to income tax exemption for six years beginning from the first profit earning year - full exemption in the first two years and half exemption in the next four years (the original rate is 20%).
6) GLT-Thailand: 20%

b. Income tax assessments

Income tax returns of GLT-Taiwan through 2022 have been examined and cleared by the tax authorities; Hao Yuan Technology through 2023 have been examined and cleared by the tax authorities.

24. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding that were used in the computation of earnings per share were as follows:

Net Profit for the Period

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Profit for the period attributable to owners of the Company	$ 5,958	$ 163,220	$ 53,464	$ 292,200

Weighted average number of ordinary shares outstanding (in thousands of shares):

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	128,864	128,864	128,864	128,864
Effect of potentially dilutive ordinary shares:
Employees’ compensation	10	241	228	348
Weighted average number of ordinary shares used in the computation of diluted earnings per share	128,874	129,105	129,092	129,212

The Group may settle the compensation of employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

25. CASH FLOW INFORMATION

a. Non-cash transactions

In addition to those disclosed in other notes, for the six months ended June 30, 2025 and 2024, the Group entered into the following partial non-cash investing and financing activities, which were not reflected in the consolidated statements of cash flows:

1) Partial cash payments for the acquisition of property, plant and equipment

	For the Six Months Ended June 30
	2025	2024
Purchase of property, plant and equipment	$ 176,421	$ 79,225
Net change in prepayments for purchases of equipment	(132)	3,122
Net change in payables for purchase of equipment	30,786	2,170
Cash paid	$ 207,075	$ 84,517

2) Partial cash payments for the acquisition of right-of-use assets

	For the Six Months Ended June 30
	2025	2024
Purchase of right-of-use assets	$ -	$ 155,544
Net change in prepayments for purchases of right-of-use asset	-	(14,816)
Net change in lease liabilities	-	(11,463)
Cash paid	$ -	$ 129,265

3) The cash dividends approved in the shareholders' meetings were not yet distributed as of June 30, 2025 and 2024 (refer to Notes 17 and 20).

b. Changes in liabilities arising from financing activities

For the six months ended June 30, 2025

	Balance on January 1, 2025	Cash Flows	Non-cash Changes		Balance on June 30, 2025
			New Leases	Effects of Foreign Currency Exchange Differences
Long-term borrowings	$ -	$ 479,900	$ -	$ (8,334)	$ 471,566
Lease liabilities	439,431	(6,411)	-	(405)	432,615
	$ 439,431	$ 473,489	$ -	$ (8,739)	$ 904,181

For the six months ended June 30, 2024

	Balance on January 1, 2024	Cash Flows	Non-cash Changes		Balance on June 30, 2024
			New Leases	Effects of Foreign Currency Exchange Differences
Lease liabilities	$ 649,403	$ (20,992)	$ 11,463	$ 10,555	$ 650,429

26. CAPITAL MANAGEMENT

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

27. FINANCIAL INSTRUMENTS

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

The management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values (or their fair values cannot be reliably measured).

b. Fair value of financial instruments that are measured at fair value on a recurring basis

1) Fair value hierarchy

June 30, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
Foreign unlisted shares	$ -	$ -	$ 35,837	$ 35,837
Domestic unlisted shares	-	-	149,860	149,860
	$ -	$ -	$ 185,697	$ 185,697
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
Foreign unlisted shares	$ -	$ -	$ 362,379	$ 362,379
Domestic unlisted shares	-	-	168,908	168,908
	$ -	$ -	$ 531,287	$ 531,287
June 30, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
Foreign unlisted shares	$ -	$ -	$ 408,642	$ 408,642
Domestic unlisted shares	-	-	136,950	136,950
	$ -	$ -	$ 545,592	$ 545,592

There were no transfers between Levels 1 and 2 for the six months ended June 30, 2025 and 2024.

35 -

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the six months ended June 30, 2025

	Financial Assets at FVTOCI
	Equity Instruments
Balance on January 1, 2025	$ 531,287
Purchases	37,000
Recognized in other comprehensive loss	(366,919)
Effects of foreign currency exchange differences	(15,671)
Balance on June 30, 2025	$ 185,697
For the six months ended June 30, 2024
	Financial Assets at FVTOCI
	Equity Instruments
Balance on January 1, 2024	$ 322,045
Purchases	223,346
Recognized in other comprehensive loss	(13,355)
Effects of foreign currency exchange differences	13,556
Balance on June 30, 2024	$ 545,592

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair values of financial assets and financial liabilities are evaluated using the market approach, or asset-based approach, or income approach.

c. Categories of financial instruments

	June 30, 2025	December 31, 2024	June 30, 2024
Financial assets
Financial assets at FVTOCI	$ 185,697	$ 531,287	$ 545,592
Financial assets at amortized cost (Note 1)	5,892,642	6,152,834	6,181,056
Financial liabilities
Amortized cost (Note 2)	1,550,393	1,269,416	1,382,590

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable, accounts receivable - related parties, part of other receivables (excluding tax refund receivable), refundable deposits (presented in other current assets) and other financial assets (presented in other current and non-current assets).

Note 2: The balances include financial liabilities measured at amortized cost, which comprise accounts payable, accounts payable - related parties, part of other payables (excluding payable for short-term employee benefits, payable for dividends, payable for commission and payable for business tax), other payables - related parties and long-term borrowings.

d. Financial risk management objectives and policies

The Group’s major financial instruments include cash and cash equivalents, equity investments, accounts receivable, accounts payable, long-term borrowings and lease liabilities. The Group’s corporate treasury function monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

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

There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 32.

Sensitivity analysis

The Group was mainly exposed to the U.S. dollar and Japanese yen.

The following table details the Group’s sensitivity to a 5% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. A positive number below indicates an increase in pre-tax profit and other equity associated with the New Taiwan dollar strengthening 5% against the relevant currency. For a 5% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit and other equity, and the balances below would be negative.

	U.S. Dollar Impact		Japanese Yen Impact
	For the Six Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
(Loss) profit	$(46,165)	$(41,528)	$(174)	$(188)

The result was mainly attributable to the exposure on bank deposits, accounts receivable and accounts payable in U.S. dollars and Japanese yen that were not hedged at the end of the year.

The Group’s sensitivity to U.S. dollars increased during the current period due to the increase in net assets denominated in U.S. dollars, and the sensitivity to Japanese yen had little difference compared to the six months ended June 30, 2024.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings and using interest rate swap contracts and forward interest rate contracts.

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

	June 30, 2025	December 31, 2024	June 30, 2024
Fair value interest rate risk
Financial assets	$ 325,314	$ 854,810	$ 170,500
Financial liabilities	432,615	439,431	650,429
Cash flows interest rate risk
Financial assets	3,956,173	3,484,165	4,205,212
Financial liabilities	471,566	-	-

Sensitivity analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of the asset and liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables been held constant, the Group’s pretax profit for the six months ended June 30, 2025 would have increased/decreased by $4,356 thousand, which was mainly attributable to the Group’s exposure to interest rates on its demand deposits.

If interest rates had been 25 basis points higher/lower and all other variables been held constant, the Group’s pretax profit for the six months ended June 30, 2024 would have increased/decreased by $5,257 thousand, which was mainly attributable to the Group’s exposure to interest rates on its demand deposits.

The Group’s sensitivity to interest rates decreased during the current period mainly due to the decrease in variable rate deposits and increase in long-term borrowings.

c) Other price risk

The Group was exposed to equity price risk through its investments in equity securities.

38 -

39 -

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 10% higher/lower, pre-tax other comprehensive income for the six months ended June 30, 2025 would have increased/decreased by $18,570 thousand as a result of the changes in fair value of financial assets at FVTOCI.

If equity prices had been 10% higher/lower, pre-tax other comprehensive income for the six months ended June 30, 2024 would have increased/decreased by $54,559 thousand as a result of the changes in fair value of financial assets at FVTOCI.

The Group’s sensitivity to equity prices during the current year mainly due to the decrease in equity securities held.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As of the end of the reporting period, the Group’s maximum exposure to credit risk, which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation, is primary from the book value of its financial assets.

The Group uses other publicly available financial information and its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored.

The Group’s credit risk is concentrated in its top 10 customers.

The Group’s concentration of credit risk of 87.12%, 85.96% and 88.82% in total trade receivables as of June 30, 2025, December 31, 2024 and June 30, 2024, respectively, was related to the Group’s ten largest customers.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants. Financial assets at fair value through other comprehensive income are exposed to liquidity risk since these assets have no active markets.

The Group manages liquidity risk by maintaining adequate bank balance and banking facilities, and continuously monitoring forecast and actual cash flows as well as the maturity profiles of financial assets and liabilities.

The Group relies on bank borrowings as a significant source of liquidity. As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group had available unutilized bank loan facilities set out in (b) below.

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

The following table details the Group's remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

June 30, 2025

	On Demand or Less than 1 Year	1-2 Years	2-5 Years	Over 5 Years
Non-derivative financial liabilities
Non-interest bearing	$ 1,362,328	$ -	$ -	$ -
Variable interest rate liabilities	9,597	62,091	433,550	-
Lease liabilities	17,683	14,820	44,462	497,724
	$ 1,389,608	$ 76,911	$ 478,012	$ 497,724

Further information on the analysis of undiscounted lease liabilities maturity dates is as follows:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	Over 20 Years
Lease liabilities	$ 17,683	$ 59,282	$ 74,103	$ 74,103	$ 74,103	$ 275,415

December 31, 2024

	On Demand or Less than 1 Year	1-2 Years	2-5 Years	Over 5 Years
Non-derivative financial liabilities
Non-interest bearing	$ 1,269,416	$ -	$ -	$ -
Lease liabilities	19,688	15,704	44,462	505,134
	$ 1,289,104	$ 15,704	$ 44,462	$ 505,134

Further information on the analysis of undiscounted lease liabilities maturity dates is as follows:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	Over 20 Years
Lease liabilities	$ 19,688	$ 60,166	$ 74,103	$ 74,103	$ 74,103	$ 282,823

June 30, 2024

	On Demand or Less than 1 Year	1-2 Years	2-5 Years	Over 5 Years
Non-derivative financial liabilities
Non-interest bearing	$ 1,575,886	$ -	$ -	$ -
Lease liabilities	38,100	36,235	99,194	649,374
	$ 1,613,986	$ 36,235	$ 99,194	$ 649,374

Further information on the analysis of undiscounted lease liabilities maturity dates is as follows:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	Over 20 Years
Lease liabilities	$ 38,100	$ 135,429	$ 165,323	$ 119,713	$ 74,103	$ 290,235

The amount of non-derivative financial liabilities would change due to the change in the floating interest rate as compared to the interest rate estimated on the balance sheet date.

b) Financing facilities

	June 30, 2025	December 31, 2024	June 30, 2024
Secured bank loan facilities
Amount used	$ 81,566	$ -	$ -
Amount unused	504,434	262,280	-
	$ 586,000	$ 262,280	$ -
Unsecured bank loan facilities
Amount used	$ 390,000	$ -	$ -
Amount unused	767,000	1,187,720	1,462,250
	$ 1,157,000	$ 1,187,720	$ 1,462,250

42 -

28. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, transactions between the Group and other related parties are based on agreement. Details of the transactions are disclosed below.

a. The Group’s related parties

Related Party	Relationship with the Group
Shinny Plastics Corp.	Other related party (the chairman of the Company and the chairman of Shinny Plastics are second-degree relatives)
Tony Material LLC	Related party in substance
Wistron Corporation	Other related party (a legal entity as director of the Company)
Wistron InfoComm (Zhongshan) Corporation	Other related party (subsidiary of Wistron)
Wistron InfoComm (Chengdu) Corporation	Other related party (subsidiary of Wistron)

b. Operating revenue

	For the Three Months Ended June 30		For the Six Months Ended June 30
Related Party Category/Name	2025	2024	2025	2024
Other related parties	$ 7,085	$ 11,016	$ 13,579	$ 23,638

The sales of goods to other related parties in substance was made at prices determined based on agreement; the payment term between the Group and other related parties in substance is open account 120 days, and is not significantly different from transactions between the Group and non-related parties.

c. Purchases of goods

	For the Three Months Ended June 30		For the Six Months Ended June 30
Related Party Category/Name	2025	2024	2025	2024
Other related parties	$ 73,217	$ 57,430	$ 139,467	$ 106,260
Related party in substance	65,672	63,461	109,115	110,933
	$ 138,889	$ 120,891	$ 248,582	$ 217,193

Purchases were made at the prices determined based on agreement with other related parties and related party in substance; the payment terms between the Group and other related parties, and between the Group and the related party in substance are within next month settlement 90 days and next month settlement 30 days, respectively, and are not significantly different from transactions between the Group and non-related parties.

d. Manufacturing and operating expenses

	For the Three Months Ended June 30		For the Six Months Ended June 30
Related Party Category/Name	2025	2024	2025	2024
Related party in substance	$ 2,832	$ 5,348	$ 6,336	$ 11,024
Other related parties	402	4,178	531	7,654
	$ 3,234	$ 9,526	$ 6,867	$ 18,678

The transactions were mainly the payments made for administration fees of the industrial park, utility expenses and mold charges to other related parties and related party in substance.

e. Receivables from related parties

Related Party Category/Name	June 30, 2025	December 31, 2024	June 30, 2024
Accounts receivable - related parties
Wistron InfoComm (Zhongshan)	$ 8,746	$ 7,594	$ 13,783
Wistron InfoComm (Chengdu)	1,189	10,731	5,931
Other related parties	839	1,662	327
	$ 10,774	$ 19,987	$ 20,041

The outstanding trade receivables from related parties are unsecured. As of June 30, 2025, December 31, 2024 and June 30, 2024, the accounts receivable from related parties were not overdue. For the six months ended June 30, 2025 and 2024, no impairment losses were recognized for trade receivables from related parties.

f. Payables to related parties

Related Party Category/Name	June 30, 2025	December 31, 2024	June 30, 2024
Accounts payable - related parties
Shinny Plastics Corp.	$ 129,566	$ 125,199	$ 98,663
Tony material LLC	50,063	37,759	56,912
	$ 179,629	$ 162,958	$ 155,575
Other payables - related parties
Tony material LLC	$ 1,749	$ 2,177	$ 3,488
Wistron InfoComm (Zhongshan)	-	488	1,427
Other related parties	3	405	25
	$ 1,752	$ 3,070	$ 4,940

g. Lease arrangements

Line Item	Related Party Category/Name	June 30, 2025	December 31, 2024	June 30, 2024
Lease liabilities	Wistron InfoComm (Zhongshan)	$ -	$ -	$ 204,702
	Related Party Category/Name	For the Three Months Ended June 30	For the Six Months Ended June 30
Line Item		2025 2024	2025	2024
Interest expense	Wistron InfoComm (Zhongshan)	$ -	$ 907	$ -

The Group leases a plant from Wistron InfoComm (Zhongshan), the terms of the transaction are negotiated by both the parties and the rent is paid monthly according to the lease agreement, refer to Note 15.

h. Remuneration of key management personnel

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2025	2024	2025	2024
Short-term employee benefits	$ 2,982	$ 5,027	$ 7,715	$ 11,270
Post-employment benefits	54	54	108	108
	$ 3,036	$ 5,081	$ 7,823	$ 11,378

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided for the import transactions in the Customs Administration, for the lease of land from Hsinchu Science Park, Ministry of Science and Technology, and as a performance guarantee for the power substation engineering project from Northern Power Construction Company:

	June 30, 2025	December 31, 2024	June 30, 2024
Other financial assets - restricted assets (under other non-current assets)	$ 20,756	$ 18,510	$ 18,510

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant contingencies and unrecognized commitments of the Group as of June 30, 2025 were not included in the consolidated financial statements as follows:

The Group entered into contracts for the purchase of equipment, plant engineering for the Vietnam investment project and land use rights for the Thailand investment project were $406,539 thousand and $350,992 thousand, respectively. Unrecognized commitments were $84,946 thousand and $35,100 thousand, respectively.

45 -

31. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

None.

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

(In Thousands of New Taiwan Dollars and Foreign Currencies)

June 30, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 27,469	29.3000 (USD:NTD)	$ 804,851
USD	18,682	7.1586 (USD:RMB)	547,391
USD	366	26,090.0000 (USD:VND)	10,719
USD	544	32.5564 (USD:THB)	15,946
JPY	14,607	0.2034 (JPY:NTD)	2,971
JPY	2,493	0.0069 (JPY:USD)	507
Financial liabilities
Monetary items
USD	1,142	29.3000 (USD:NTD)	33,446
USD	14,408	7.1586 (USD:RMB)	422,154
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 30,398	32.7850 (USD:NTD)	$ 996,604
USD	20,631	7.1884 (USD:RMB)	676,392
USD	1,866	25,916.9960 (USD:VND)	61,171
USD	539	34.0694 (USD:THB)	17,679
JPY	16,103	0.2099 (JPY:NTD)	3,380
JPY	2,493	0.0064 (JPY:USD)	523
Financial liabilities
Monetary items
USD	1,459	32.7850 (USD:NTD)	47,834
USD	15,662	7.1884 (USD:RMB)	513,493
JPY	1,495	0.2099 (JPY:NTD)	314

June 30, 2024

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 28,877	32.4500 (USD:NTD)	$ 937,049
USD	15,777	7.1268 (USD:RMB)	511,967
USD	1,866	25,856.5737 (USD:VND)	60,546
JPY	16,431	0.2017 (JPY:NTD)	3,314
JPY	2,493	0.0062 (JPY:USD)	503
Financial liabilities
Monetary items
USD	3,410	32.4500 (USD:NTD)	110,648
USD	17,515	7.1268 (USD:RMB)	568,346
JPY	325	0.2017 (JPY:NTD)	66

For the three months ended June 30, 2025 and 2024, and for the six months ended June 30, 2025 and 2024, realized and unrealized net foreign exchange (losses) gains were $(100,016) thousand, $14,895 thousand, $(88,900) thousand and $47,907 thousand, respectively. It is impractical to disclose net foreign exchange losses by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the entities in the Group.

33. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:

1) Financing provided to others: Table 1 (attached)
2) Endorsements/guarantees provided: Table 2 (attached)
3) Significant marketable securities held (excluding investment in subsidiaries): Table 3 (attached)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4 (attached)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5 (attached)
6) Intercompany relationships and significant intercompany transactions: Table 8 (attached)

b. Information on investees (Table 6) (attached)

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 7 (attached).

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: Table 8 (attached)

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.

c) The amount of property transactions and the amount of the resultant gains or losses.

d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None.

e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: Table 1 (attached).

f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services.

SEGMENT INFORMATION

The Group’s reportable segments as follows:

a. Department of light guide plates applications: Provide the service of manufacturing and sales of related application products such as light guide plates.

b. Department of plastic components: Provide the service of design, manufacturing and sales of plastic components

Reportable segment income and loss is measured by pre-tax other comprehensive income (non-operating income and expense and income tax expenses are excluded). The amount is for chief operating decision maker to determine the allocation of resources to each department and evaluate the performance of each department.

Since the information on the segment assets and liabilities was not provided to the operational decision makers for reference or for decision-making purposes, the segment assets and liabilities were not disclosed.

47 -

c. Segment revenue and results

	Department of Light Guide Plates Applications	Department of Plastic Components	Eliminations	Total
For the six months ended June 30, 2025
Revenue
Revenue from external customers	$ 2,339,925	$ 491,349	$ -	$ 2,831,274
Inter-segment revenue	-	-	-	-
Total revenue	$ 2,339,925	$ 491,349	$ -	$ 2,831,274
Segment income	$ 23,823	$ 53,299		$ 77,122
Non-operating income and expenses				(12,122)
Profit before tax (continuing operations)				$ 65,000
For the six months ended June 30, 2024
Revenue
Revenue from external customers	$ 2,817,330	$ 397,934	$ -	$ 3,215,264
Inter-segment revenue	-	-	-	-
Total revenue	$ 2,817,330	$ 397,934	$ -	$ 3,215,264
Segment income	$ 169,279	$ 1,619		$ 170,898
Non-operating income and expenses				80,245
Profit before tax (continuing operations)				$ 251,143

TABLE 1

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE SIX MONTHS ENDED JUNE 30, 2025

(In Thousands of New Taiwan Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed (Note 3)	Interest Rate (%)	Nature of Financing (Note 1)	Business Transaction Amount	Reason for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note 2)	Financing Company's Aggregate Financing Limits (Note 2)
													Item	Value
1	GLT-Suzhou Opto	GLT-Zhongshan	Other receivables - related parties, current portion	Yes	$ 20,507	$ -	$ -	-	b	$ -	Operating turnover	$ -	-	$ -	$ 415,416	$ 415,416
2	Solid State Technology	GLT-Taiwan	Other receivables - related parties, current portion	Yes	263,700	-	-	-	b	-	Operating turnover	-	-	-	808,484	808,484

Note 1: The nature of financing is numbered as follows:
a. Business relationship.
b. Short-term financing needs.

Note 2: The aggregate financing limit of loans made from the parent company to its subsidiaries in which the parent company directly or indirectly holds 100% of the voting shares is limited to 40% of the parent company's net worth based on its latest audited or reviewed financial statements. For loans made between offshore subsidiaries (excluding subsidiaries in the Republic of China) in which the parent company directly or indirectly holds 100% of the voting shares, the financing limit is 80% of the lender's net worth based on its latest audited or reviewed financial statements. The financing limit for each borrower in which the parent company directly or indirectly holds 100% of the voting shares is 10% of the parent company's net worth based on its latest audited or reviewed financial statements. For loans made from offshore subsidiaries to each borrower in which the parent company holds, directly or indirectly, 100% of the voting shares is limited to 80% of the parent company's net worth based on its latest audited or reviewed financial statements. For loans made between subsidiaries in the Republic of China, both the aggregate financing limit and financing limit for each borrower is limited to 40% of the lender's net worth based on its latest audited or reviewed financial statements. For loans made from the lender to its ultimate parent company and subsidiaries in the Republic of China, both the aggregate financing limit and financing limit for each borrower is both 40% of the lender's net worth based on its latest audited or reviewed financial statements. The financing limit for each borrower is the lender's aggregate financing limit.

Note 3: All intercompany transactions have been eliminated upon consolidation.

49 -

TABLE 2

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE SIX MONTHS ENDED JUNE 30, 2025

(In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorses/Guarantee		Limit on Endorsement/ Guarantor Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantor at the End of the Period	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantor to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantor Limit (Note 1)	Endorsement/ Guarantor Given by Parent on Behalf of Subsidiaries (Note 2)	Endorsement/ Guarantor Given by Subsidiaries on Behalf of Parent (Note 2)	Endorsement/ Guarantor Given on Behalf of Companies in Mainland China (Note 2)
		Name	Relationship
1	GLT-Taiwan	GLT-Vietnam	Subsidiary of Global Lighting Technologies Inc.	$ 2,828,141	$ 586,000	$ 586,000	$ 81,566	$ -	7.87	$ 2,828,141	-	-	-

Note 1: The parent company can provide endorsements/guarantees to subsidiaries in which the parent company directly or indirectly holds more than 90% of the voting shares, and the amount of endorsement/guarantee should not exceed 10% of the parent company's net worth. The above limit on endorsement/guarantee is not applicable to subsidiaries in which the parent company directly or indirectly holds 100% of the voting shares. The limit of overall endorsement/guarantee of the Company and its subsidiaries is 50% of the Company's net worth based on its most recent audited or reviewed consolidated financial statements. The amount of endorsement/guarantee for an individual entity shall not exceed 30% of the Company's net worth based on its most recent audited or reviewed consolidated financial statements. The total amount of endorsements and guarantees provided by GLT-Taiwan to the ultimate parent company and the subsidiaries in which the ultimate parent company directly and indirectly holds 100% of the voting rights and the limit for a single endorsement shall not exceed 85% of the net worth of GLT-Taiwan's lately audited or reviewed financial statements.

Note 2: Y is indicated for endorsements/guarantees provided by parent companies (listed companies) for its subsidiaries, endorsements/guarantees provided by subsidiaries for their parent companies (listed companies) and endorsements/guarantees provided for companies in mainland China.

50 -

TABLE 3

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

JUNE 30, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	June 30, 2025
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value (Note1)	Note
Global Lighting Technologies Inc.	Shares
Sensel Inc.	The Company is the director of Sensel Inc.	Financial assets at FVTOCI - non-current	2,695,416	$ -	11.53	$ -	Note 2
Solid State OPTO	Shares
Cytesi Inc.	-	Financial assets at FVTOCI - non-current	375,188	35,837	4.24	35,837
GLT-Taiwan	Shares
Top Taiwan XIII Venture Capital Co., Ltd.	GLT-Taiwan is the director of Top Taiwan XIII Venture Capital Co., Ltd.	Financial assets at FVTOCI - non-current	10,000,000	84,100	11.63	84,100
	J-MEX INC.	-	Financial assets at FVTOCI - non-current	5,833,333	31,913	14.12	31,913
	Smobio Technology, Inc.	-	Financial assets at FVTOCI - non-current	1,000,000	33,847	6.19	33,847

Note 1: Unlisted equity investments are evaluated using the asset-based approach, or market approach, or income approach.
Note 2: The company resigned as director of the board on July 4, 2025.

TABLE 4

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALE TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship (Note 1)	Transaction Details				Abnormal Transaction		Notes/Accounts Payable or Receivable		Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
GLT-Shanghai	Solid State OPTO	b	Sale	$ (1,011,265)	59	Open account 120 days	Based on agreement	Based on agreement	$ 613,461	62	Note 2
Solid State OPTO	GLT-Shanghai	b	Purchase	1,011,265	85	Open account 120 days	Based on agreement	Based on agreement	(613,461)	88	Note 2
Solid State Technology	GLT-Shanghai	b	Sale	(757,399)	100	Open account 60 days	Based on agreement	Based on agreement	281,995	100	Note 2
GLT-Shanghai	Solid State Technology	b	Purchase	757,399	55	Open account 60 days	Based on agreement	Based on agreement	(281,995)	40	Note 2
Solid State OPTO	GLT-USA	b	Sale	(233,094)	18	Open account 60 days	Based on agreement	Based on agreement	69,890	20	Note 2
GLT-USA	Solid State OPTO	b	Purchase	233,094	100	Open account 60 days	Based on agreement	Based on agreement	(69,890)	100	Note 2
GLT-Taiwan	Solid State OPTO	b	Sale	(158,894)	14	Open account 60 days	Based on agreement	Based on agreement	74,163	12	Note 2
Solid State OPTO	GLT-Taiwan	b	Purchase	158,894	13	Open account 60 days	Based on agreement	Based on agreement	(74,163)	11	Note 2
GLT-Taiwan	Solid State Technology	b	Sale	(197,870)	18	Open account 60 days	Based on agreement	Based on agreement	105,438	17	Note 2
Solid State Technology	GLT-Taiwan	b	Purchase	197,870	27	Open account 60 days	Based on agreement	Based on agreement	(105,438)	38	Note 2
GLT-Taiwan	Shinny Plastics Corp.	d	Purchase	139,467	20	Next open account 90 days	Based on agreement	Based on agreement	(129,566)	28

Note 1: The relationships with related parties are divided into the following four types:
a. Parent company to subsidiary.
b. Subsidiary to subsidiary.
c. Subsidiary to parent company.
d. Subsidiaries to non-related parties within the Group.

Note 2: All intercompany transactions have been eliminated upon consolidation.

TABLE 5

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

JUNE 30, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance (Note)	Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
GLT-Shanghai	Solid State OPTO	Subsidiary to subsidiary	$ 613,461	2.65	$ -	-	$ 169,822	$ -
Solid State Technology	GLT-Shanghai	Subsidiary to subsidiary	281,995	4.95	-	-	88,700	-
GLT-Taiwan	Solid State Technology	Subsidiary to subsidiary	105,438	4.34	-	-	71,820	-

Note: All intercompany transactions have been eliminated upon consolidation.

TABLE 6

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE

FOR THE SIX MONTHS ENDED JUNE 30, 2025

(In Thousands of New Taiwan Dollars or in Thousands of Foreign Currencies)

Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount		June 30, 2025			Net Income (Loss) of the Investee	Share of Profit (Loss) (Notes 1 and 2)	Note
				June 30, 2025	December 31, 2024	Number of Shares	%	Carrying Amount (Notes 1 and 2)
Global Lighting Technologies Inc.	Solid State OPTO Limited	British Virgin Islands	Holding company engaged in the sale of products	$ 291,540	$ 291,540	9,950,167	100.00	$ 1,177,139	$ 75,387	$ 75,387
				(US$ 9,950)	(US$ 9,950)			(US$ 40,175)	(US$ 2,369)	(US$ 2,369)
	Solid State Display Limited	British Virgin Islands	Holding company engaged in the sale of products	1,029,723	1,029,723	35,144,141	100.00	2,598,823	(42,555)	(48,483)
				(US$ 35,144)	(US$ 35,144)			(US$ 88,697)	(US$ (1,337))	(US$ (1,523))
	Solid State Technology Limited	British Virgin Islands	Holding company engaged in the sale of products	314,975	314,975	10,750,000	100.00	2,008,628	(1,512)	8,329
				(US$ 10,750)	(US$ 10,750)			(US$ 68,554)	(US$ (48))	(US$ 262)
	Solid State Electronics Limited	British Virgin Islands	Holding company engaged in the sale of products	192,237	192,237	6,561,000	100.00	794,585	(10,525)	49,565
				(US$ 6,561)	(US$ 6,561)			(US$ 27,119)	(US$ (331))	(US$ 1,557)
	Shining Green Limited	Independent state of Samoa	Holding company	439,500	439,500	15,000,000	100.00	(19,686)	29,426	4,952
				(US$ 15,000)	(US$ 15,000)			(US$ 1672)	(US$ 925)	(US$ 156)
Global Lighting Technologies Inc. (Taiwan)	Republic of China	Design, production, and sales of applications of light guide plates, design and production of optical molds, and sales of plastic products for electronic components	850,894	850,894	33,994,364	23.36	777,290	(68,207)	(15,934)
Solid State OPTO	Global Lighting Technologies Inc.	United States	Design and sales of applications of light guide plates	212,347	212,347	100	100.00	545,859	15,587	15,587
				(US$ 7,247)	(US$ 7,247)			(US$ 18,630)	(US$ 490)	(US$ 490)
Solid State Display	Global Lighting Technologies Inc. (Taiwan)	Republic of China	Design, production, and sales of applications of light guide plates, design and production of optical molds, and sales of plastic products for electronic components	1,115,200	1,115,200	111,519,956	76.64	2,549,934	(68,207)	(52,273)
								(US$ 87,028)	(US$ (2,143))	(US$ (1,643))
Solid State Technology Limited	Global Lighting Technology (Thailand) Co., Ltd.	Thailand	Design, production, and sales of applications of light guide plates, design and production of optical molds, and sales of plastic products for electronic components	336,950	190,450	39,400,000	100.00	348,315	(387)	(387)	Note 3
				(US$ 11,500)	(US$ 6,500)			(US$ 11,888)	(US$ (12))	(US$ (12))
Global Lighting Technologies Inc. (Taiwan)	Hao Yuan Technology	Republic of China	Investment industry, wholesale and retail sale of electronic materials	2,991	2,991	100,000	100.00	2,511	43	43
	Global Lighting Technologies Inc. (Taiwan)	Vietnam	Design, production, and sales of applications of light guide plates, design and production of optical molds, and sales of plastic products for electronic components	439,500	439,500	-	100.00	410,235	441	441
	Asensetek Incorporation	Republic of China	Manufacturing and selling of optical and precision equipment, electronic components, motors and electronic machinery	439,500	439,500	-	100.00	(US$ 14,001)	(US$ 14)	(US$ 14)
				-	14,430	-		-	-	-	Note 4

Note 1: The calculations based on the investee's financial statements that have been audited by us for the same period, taking into considerations of the effect of unrealized gain or loss on intercompany transactions.
Note 2: All intercompany transactions have been eliminated upon consolidation.
Note 3: In July 2024, the Company established GLT-Thailand with a registered capital of THB420,000 thousand, as of June 30, 2025, the Company had invested US$11,500 thousand (THB394,000 thousand). Please refer to Note 12.
Note 4: The shareholders' meeting of Asensetek Incorporation resolved on March 21, 2025, to proceed with the company's dissolution and liquidation. The dissolution was approved by the New Taipei City Government on June 6, 2025. Please refer to Note 13.

TABLE 7

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE SIX MONTHS ENDED JUNE 30, 2025

(In Thousands of New Taiwan Dollars, or in Thousands of Foreign Currencies)

Investor Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of June 30, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Notes 2 and 3)	Carrying Amount as of June 30, 2025 (Notes 2 and 3)	Accumulated Repatriation of Investment Income as of June 30, 2025
					Outflow	Inflow
Shanghai Global Lighting Technologies Inc.	Production, and sales of applications of light guide plates, design of optical molds, and production and sales of plastic products for electronic use	$ 293,000 (US$ 10,000) (Note 4)	b.	$ 586,000 (US$ 20,000)	$ -	$ 293,000 (US$ 10,000) (Note 4)	$ 293,000 (US$ 10,000)	$ (14,551)	100	$ (14,551)	$ 655,960	$ -
Suzhou Opto Technologies Inc.	Design, production, and sales of applications of light guide plates and monitor, design of optical molds, and production and sales of plastic products for electronic use	386,760 (US$ 13,200)	b.	386,760 (US$ 13,200)	-	-	386,760 (US$ 13,200)	(23,498)	100	(23,498)	519,270	-
Zhongshan Global Lighting Technology Limited Co.	Production, and sales of applications of light guide plates	439,500 (US$ 15,000)	b.	439,500 (US$ 15,000)	-	-	439,500 (US$ 15,000)	29,426	100	29,426	63,562	-
Accumulated Outward Remittance for Investment in Mainland China as of June 30, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
---	---	---
$1,119,260 (US$38,200 thousand)	Not applicable	Not applicable

Note 1: Investments are divided into three categories as follows:
a. Direct investment.
b. Indirect investment through a holding company registered in a third region.
c. Others.

Note 2: The calculations based on the investee's financial statements that have been audited by us for the same period.

Note 3: All intercompany transactions have been eliminated upon consolidation.

Note 4: In order to enhance the Group's capital planning, the board of directors of GLT-Shanghai resolved to reduce the capital by US$10,000 thousand on February 18, 2025. The procedure of capital reduction was completed and approved by Shanghai Market Supervisory Authority on April 7, 2025. The refunded capital has been repatriated in April 2025.

TABLE 8

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2025

(Amounts in Thousands of New Taiwan Dollars)

No. (Note 1)	Company	Counterparty	Flow of Transactions (Note 2)	Transaction Details
				Financial Statement Account	Amount (Note 4)	Payment Terms	% of Total Sales or Assets (Note 3)
1	Solid State Electronics	GLT-Suzhou Opto	c	Sales	$ 215	Based on agreement	-
2	Solid State OPTO	GLT-USA	c	Accounts receivable	69,890	Open account 60 days	1
			c	Sales	233,094	Based on agreement	8
3	Solid State Technology	GLT-Shanghai	c	Accounts receivable	281,995	Open account 60 days	3
			c	Sales	757,399	Based on agreement	27
		GLT-Thailand	c	Investments accounted for using the equity method	146,500	Cash capital increase	-
4	Solid State Display	GLT-Shanghai	c	Sales	624	Based on agreement	-
5	GLT-Shanghai	Solid State OPTO	c	Accounts receivable	613,461	Open account 120 days	6
			c	Sales	1,011,265	Based on agreement	36
		GLT-Taiwan	c	Accounts receivable	13,765	Open account 120 days	-
		Solid State Electronics	c	Sales	21,135	Based on agreement	1
			c	Investments accounted for using the equity method	293,000	Cash capital reduction	-
6	GLT-Zhongshan	GLT-Taiwan	c	Sales	443	Based on agreement	-
		GLT-Suzhou Opto	c	Gains on disposals of property, plant and equipment	33,445	-	1
7	GLT-Taiwan	GLT-Shanghai	c	Accounts receivable	267	Open account 60 days	-
			c	Sales	273	Based on agreement	-
			c	Gains on disposals of property, plant and equipment	253	-	-
		Solid State OPTO	c	Accounts receivable	74,163	Open account 60 days	1
			c	Sales	158,894	Based on agreement	6
		Solid State Technology	c	Accounts receivable	105,438	Open account 60 days	1
			c	Sales	197,870	Based on agreement	7
		GLT-Suzhou Opto	c	Accounts receivable	3,157	Open account 60 days	-
			c	Sales	26,232	Based on agreement	1
		Solid State Display	c	Accounts receivable	233	Open account 60 days	-
			c	Sales	312	Based on agreement	-
		GLT-USA	c	Sales	119	Based on agreement	-

(Continued)

| No.
(Note 1) | Company | Counterparty | Flow of
Transactions
(Note 2) | Transaction Details | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | Financial Statement Account | Amount
(Note 4) | Payment Terms | % of
Total Sales or
Assets (Note 3) |
| 8 | GLT-Suzhou Opto | GLT-Taiwan | c | Accounts receivable | $ 76,065 | Open account 120 days | 1 |
| | | | c | Sales | 99,262 | Based on agreement | 4 |
| | | Solid State Display | c | Accounts receivable | 33,723 | Open account 120 days | - |
| | | | c | Sales | 40,986 | Based on agreement | 1 |
| | | Solid State OPTO | c | Accounts receivable | 13,064 | Open account 120 days | - |
| | | | c | Sales | 15,449 | Based on agreement | 1 |
| | | GLT-Shanghai | c | Sales | 25 | Based on agreement | - |
| | | | c | Interest revenue | 64 | Based on agreement | - |

Note 1: Companies are numbered as follows:
a. Global Lighting Technologies Inc. is numbered as "0".
b. Subsidiaries are numbered from "1" onward.

Note 2: The flow of transactions is as follows:
a. From GLT-Cayman to the subsidiary.
b. From the subsidiary to GLT-Cayman.
c. Between subsidiaries.

Note 3: If the transaction amounts are related to the balance sheet accounts, the percentages are those of the ending balances to the consolidated total assets. If the transaction amounts are related to the income statement accounts, the percentages are the total amounts of the year to the consolidated total sales.

Note 4: All intercompany transactions have been eliminated upon consolidation.

(Concluded)

AI assistant

GLT — Interim / Quarterly Report 2025

52442_rns_2026-04-26_6483e299-b67c-459e-a9d9-c62ff7fa7453.pdf

Global Lighting Technologies Inc. and Subsidiaries

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matter

Validity of Occurrence of Sales Revenue from Specific Customers

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Statement of Compliance

Basis of Preparation

Basis of Consolidation

Other Material Accounting Policies

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT AMORTIZED COST

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

b. Other receivables

10. INVENTORIES

11. OTHER ASSETS

12. SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. PROPERTY, PLANT AND EQUIPMENT

Buildings

15. LEASE ARRANGEMENTS

16. BORROWINGS

17. OTHER PAYABLES

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

b. Defined benefit plan

19. LONG-TERM DEFERRED REVENUE

20. EQUITY

22. NET PROFIT

23. INCOME TAXES

24. EARNINGS PER SHARE

25. CASH FLOW INFORMATION

a. Non-cash transactions

26. CAPITAL MANAGEMENT

27. FINANCIAL INSTRUMENTS

Sensitivity analysis

28. TRANSACTIONS WITH RELATED PARTIES

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

31. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

33. SEPARATELY DISCLOSED ITEMS

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

GLOBAL LIGHTING TECHNOLOGIES INC. AND SUBSIDIARIES

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