Stock Code:3312

G.M.I. Technology Inc.

Parent Company Only Financial Statements

With Independent Auditors’ Report

For the Years Ended December 31, 2025 and 2024

Address: 2F., No. 57, Xingzhong Rd., Neihu District, Taipei City, 114

Telephone: (02)2659-9838

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

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Balance Sheets	4
5. Statements of Comprehensive Income	5
6. Statements of Changes in Equity	6
7. Statements of Cash Flows	7
8. Notes to the Financial Statements
(1) Company history	8
(2) Approval date and procedures of the financial statements	8
(3) New standards, amendments and interpretations adopted	8~10
(4) Summary of material accounting policies	10~25
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	25~26
(6) Explanation of significant accounts	26~57
(7) Related-party transactions	57~63
(8) Pledged assets	63
(9) Commitments and contingencies	63~64
(10) Losses Due to Major Disasters	64
(11) Subsequent Events	64
(12) Other	64~65
(13) Other disclosures
(a) Information on significant transactions	65~66
(b) Information on investees	66~67
(c) Information on investment in mainland China	67
(14) Segment information	67
9. List of major account titles	68~79

KPMG

多快速素群合作計算子將內

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of G.M.I. Technology Inc.:

Opinion

We have audited the financial statements of G.M.I. Technology Inc. (“the Company”), which comprise the balance sheet as of December 31, 2025 and 2024, the statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter paragraph), the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of current period. These matters were 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 these matters. The key audit matters that, in our professional judgment, should be communicated are as follows:

Revenue recognition

Please refer to note 4(m) “Revenue Recognition” for accounting policy, and note 6(p) Revenue from Customer Contracts, of the financial statements.

Description of key audit matter:

The Company mainly engages in the purchase and sale of electronic components. Since revenue is an important item in financial reporting and is of the interest to the users of financial statements, revenue recognition is one of the important evaluations performed by our auditors in the consolidated financial statements.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG

How the matter was addressed in our audit:

Our principal audit procedures included:

Understand and test the internal processes and related controls related to revenue recognition.
Analyze the form and transaction terms of major revenues to assess the appropriateness of the timing of revenue recognition.
Verify the revenue transaction records and various certificates for the period before and after the selected financial reporting date to assess the appropriate cutoff of operating revenue records.

Other Matter

We did not audit the financial statements of Rehear Audiology Company LTD. for the year ended December 31, 2025, nor those of Unitech Electronics Co., Ltd. and Global Mobile Internet Co., Ltd. for the years ended December 31, 2025 and 2024, respectively. Those statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for Rehear Audiology Company LTD., Unitech Electronics Co., Ltd., and Global Mobile Internet Co., Ltd., is based solely on the reports of other auditors. The financial statements of Rehear Audiology Company LTD., Unitech Electronics Co., Ltd., and Global Mobile Internet Co., Ltd. reflect total assets constituting 3.03% and 2.39% of the total assets at December 31, 2025 and 2024, respectively, and the related share of profit of subsidiaries, associates and joint ventures accounted for using the equity method constituting (0.77)% and 2.60% of total profit before tax for the years then ended respectively.

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

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation as well as related guidance endorsed 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 financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors' Responsibilities for the Audit of the Financial Statements

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

KPMG

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

Identify and assess the risks of material misstatement of the 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 Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 the investment in other entities accounted for using the equity method to express an opinion on this financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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.

KPMG

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

The engagement partners on the audit resulting in this independent auditors’ report are Chi, Meng-Chun and Yang, Shu-Chih.

KPMG

Taipei, Taiwan (Republic of China)
March 9, 2026

Notes to Readers

The accompanying parent company only financial statements are intended only to present the statement of financial position, financial performance and its cash flows in accordance with the 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 parent company only financial statements are those generally accepted and applied in the Republic of China.

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

(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese)

G.M.I. Technology Inc.

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2025		December 31, 2024		Liabilities and Equity	December 31, 2025		December 31, 2024
		Amount	%	Amount			%	Amount	%	Amount	%
Current assets:						Current liabilities:
1100	Cash and cash equivalents (note (6)(a))	$ 2,460,780	23	2,022,304	20	2100	Short-term borrowings (notes (6)(i) and (8))	$ 2,637,693	25	2,095,898	20
1110	Current financial assets at fair value through profit or loss (note (6)(j))	-	-	1,200	-	2110	Short-term notes and bills payable (note (6)(h))	349,858	3	449,326	4
1150	Notes receivable (notes (6)(b)(p))	125,455	1	201,942	2	2130	Current contract liabilities (note (6)(p))	22,814	-	14,023	-
1170	Accounts receivable (notes (6)(b)(p) and (8))	3,929,955	36	3,702,646	36	2170	Accounts payable	597,612	5	166,710	2
1180	Accounts receivable due from related parties, net (notes (6)(b), (p)and (7))	944,621	9	329,841	3	2180	Accounts payable – related parties (note (7))	2,238,686	20	2,468,239	24
1199	Finance lease payment receivable—related parties(notes (6)(c)and (7))	37,821	-	85,929	1	2213	Payable on machinery and equipment (note (6)(f))	97	-	912,248	9
1200	Other receivables	18,429	-	17,392	-	2219	Other payables, others	74,954	1	82,299	1
1210	Other receivables – related parties (note (7))	51,824	1	-	-	2220	Other payables – related parties (note (7))	-	-	200	-
1220	Current income tax assets	-	-	20,380	-	2230	Current income tax liabilities	35,078	-	21,771	-
130X	Inventories (note (6)(d))	1,297,958	12	1,160,439	11	2280	Current lease liabilities (note (6)(k))	2,966	-	5,310	-
1476	Other current financial assets (note (8))	243,223	2	231,596	2		Total Current liabilities	5,959,758	54	6,216,024	60
1470	Other current assets:	22,583	-	42,530	1		Non-Current liabilities:
	Total current assets	9,132,649	84	7,816,199	76	2530	Bonds payable (note (6)(j))	967,342	9	946,322	9
	Non-current assets:					2570	Deferred tax liabilities (note (6)(m))	-	-	9,194	-
1550	Investments accounted for using equity method (notes (6)(e) and (7))	348,119	3	274,237	3	2650	Credit in investments accounted for using equity method(note (6)(e))	88,954	1	69,755	1
1600	Property, plant and equipment (note (6)(f))	322,930	3	1,765,387	17	2670	Other non-current liabilities	160	-	57	-
1755	Right-of-use assets (note (6)(g))	2,941	-	5,251	-		Total Non-current liabilities	1,056,456	10	1,025,328	10
1840	Deferred tax assets (note (6)(m))	19,274	-	10,927	-		Total liabilities	7,016,214	64	7,241,352	70
194K	Long-term finance lease payment receivable—related parties (notes (6)(c)and (7))	123,264	1	419,117	4		Share capital (note (6)(n)):
						3110	Ordinary share	1,826,268	17	1,626,254	16
1915	Prepayments for business facilities	-	-	27,876	-	3200	Capital surplus	972,947	9	309,068	3
1975	Net defined benefit assets- non current (note (l))	6,799	-	6,131	-	3310	Legal reserve	217,708	2	178,894	2
1900	Other non-current assets	4,211	-	4,290	-	3350	Unappropriated retained earnings	801,975	7	779,596	7
1940	Long-term accounts receivable – related parties(notes (6)(b) and (7))	964,308	9	-	-	3400	Other equity	89,383	1	194,251	2
	Total non-current assets	1,791,846	16	2,513,216	24		Total equity	3,908,281	36	3,088,063	30
	Total assets	$ 10,924,495	100	10,329,415	100		Total liabilities and equity	$ 10,924,495	100	10,329,415	100

See accompanying notes to parent company only financial statements.

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)
G.M.I. Technology Inc.
Statements of Comprehensive Income
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue (notes (6)(p) and (7))	$ 21,096,244	100	17,742,569	100
5000	Operating costs (notes (6)(d) and (7))	19,988,967	95	16,804,095	95
	Gross profit (loss) from operations	1,107,277	5	938,474	5
	Operating expenses (notes (6)(f)(g)(l) and (7)):
6100	Selling expenses	343,553	2	304,315	2
6200	Administrative expenses	160,391	1	157,578	1
6300	Research and development expenses	29,318	-	26,602	-
6450	Impairment losses (impairment gains) determined in accordance with IFRS 9 (note (6)(b))	(924)	-	4,797	-
	Total operating expenses	532,338	3	493,292	3
	Net operating income (loss)	574,939	2	445,182	2
	Non-operating income and expenses (note (6)(r)):
7100	Interest income	20,883	-	54,128	-
7010	Other income	20,345	-	15,750	-
7020	Other gains and losses	(98,287)	-	119,091	1
7050	Finance costs	(113,695)	(1)	(78,015)	-
7060	Share of loss of associates accounted for using equity method	(20,822)	-	(60,286)	-
	Total non-operating income and expenses	(191,576)	(1)	50,668	1
7900	Profit before income tax	383,363	1	495,850	3
7950	Less: Income tax expenses (note (6)(m))	94,760	-	109,472	1
	Profit	288,603	1	386,378	2
8300	Other comprehensive income (loss):
8310	Items that may not be reclassified subsequently to profit or loss:
8311	Gains (losses) on remeasurements of defined benefit plans (note (6)(l))	265	-	1,766	-
8349	Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-	-	-	-
		265	-	1,766	-
8360	Items that may be reclassified subsequently to profit or loss:
8361	Exchange differences on translation of foreign financial statements	(104,458)	-	159,344	1
8380	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, that may be reclassified to profit or loss	(410)	-	1,054	-
8399	Less: income tax related to components of other comprehensive income that will be reclassified to profit or loss	-	-	-	-
	Total of items that may be reclassified to profit or loss	(104,868)	-	160,398	1
8300	Other comprehensive income, net	(104,603)	-	162,164	1
	Total comprehensive income	$ 184,000	1	548,542	3
	Basic earnings per share (note (6)(o))
9750	Basic earnings per share	$ 1.74		2.38
9850	Diluted earnings per share	$ 1.71		2.33

See accompanying notes to parent company only financial statements.

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)
G.M.I. Technology Inc.
Statements of Changes in Equity
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

	Ordinary shares	Capital surplus	Retained earnings			Total other equity interest		Total equity
			Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income
Balance at January 1, 2024	$ 1,626,254	223,116	146,600	-	618,896	33,510	443	2,648,819
Profit for the period	-	-	-	-	386,378	-	-	386,378
Other comprehensive income or loss for the period	-	-	-	-	1,766	159,244	1,054	162,064
Total comprehensive income or loss for the period	-	-	-	-	388,144	159,244	1,054	548,442
Appropriation and distribution of retained earnings:
Legal reserve	-	-	32,294	-	(32,294)	-	-	-
Cash dividends on ordinary shares	-	-	-	-	(195,150)	-	-	(195,150)
Other changes in capital surplus:
Changes in ownership interests in subsidiaries	-	19,710	-	-	-	-	-	19,710
Due to recognition of equity component of convertible bonds (preference share) issued	-	65,872	-	-	-	-	-	65,872
Difference between consideration and carrying amount of subsidiaries acquired or disposed	-	370	-	-	-	-	-	370
Balance at December 31, 2024	1,626,254	309,068	178,894	-	779,596	192,754	1,497	3,088,063
Profit for the period	-	-	-	-	288,603	-	-	288,603
Other comprehensive income or loss for the period	-	-	-	-	265	(104,458)	(410)	(104,603)
Total comprehensive income or loss for the period	-	-	-	-	288,868	(104,458)	(410)	184,000
Appropriation and distribution of retained earnings:
Legal reserve	-	-	38,814	-	(38,814)	-	-	-
Cash dividends on ordinary shares	-	-	-	-	(227,675)	-	-	(227,675)
Capital increase by cash	200,000	596,000	-	-	-	-	-	796,000
Conversion of convertible bonds	14	82	-	-	-	-	-	96
Other changes in capital surplus:
Changes in ownership interests in subsidiaries	-	62,705	-	-	-	-	-	62,705
Share-base payment transactions	-	4,904	-	-	-	-	-	4,904
Difference between consideration and carrying amount of subsidiaries acquired or disposed	-	188	-	-	-	-	-	188
Balance at December 31, 2025	$ 1,826,268	972,947	217,708	-	801,975	88,296	1,087	3,908,281

See accompanying notes to parent company only financial statements.

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)

G.M.I. Technology Inc.

Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from (used in) operating activities:
Profit before tax	$ 383,362	495,850
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense	13,775	12,878
Expected credit loss (Reversal of expected credit loss)	(924)	4,797
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	1,200	600
Interest expense	113,695	78,015
Interest income	(20,883)	(54,128)
Finance lease interest revenue	(248,152)	(38,117)
Share-based payments	4,904	-
Share of loss (profit) of subsidiaries, associates and joint ventures accounted for using equity method	20,822	60,286
Loss (gain) on disposal of property, plant and equipment	(495)	-
Loss on lease modification	49,012	-
Total adjustments to reconcile profit (loss)	(67,046)	64,331
Changes in operating assets and liabilities:
Changes in operating assets:
(Increase) decrease in notes receivable	67,322	(101,181)
Increase in accounts receivable	(342,515)	(555,360)
Increase in accounts receivable due from related parties	(255,612)	(119,912)
Decrease (increase) in other receivable	(1,432)	896
Increase in other receivables due from related parties	(51,824)	-
Decrease in finance lease receivables due from related parties	372,653	75,482
Increase in Inventory	(181,360)	(80,111)
Decrease in other current assets	19,886	44,597
Total changes in operating assets	(372,882)	(735,589)
Changes in operating liabilities:
Increase (decrease) in contract liabilities	9,292	(2,074)
Increase (decrease) in accounts payable	473,407	(115,957)
Increase (decrease) in accounts payable to related parties	(164,798)	503,431
(Decrease)Increase in other payables	(6,076)	9,558
Decrease in other payable to related parties	(200)	(5,091)
Decrease in net defined benefit liability	(403)	(1,978)
Total changes in operating liabilities	311,222	387,889
Total adjustments	(128,706)	(283,369)
Cash inflow (outflow) from operations	254,656	212,481
Interest received	21,144	54,652
Interest paid	(93,097)	(64,725)
Income taxes paid	(79,959)	(86,161)
Net cash flows from operating activities	102,744	116,247
Cash flows from (used in) investing activities:
Acquisition of investments accounted for using equity method	(17,806)	(1,116)
Proceeds from disposal of investments accounted for using equity method	-	1,950
Acquisition of property, plant and equipment	(1,027,217)	(1,055,596)
Proceeds from disposal of property, plant and equipment	262,840	-
Decrease in other non-current assets	(20,867)	9,153
Increase (decrease) in other non-current assets	-	(107)
Decrease (Increase) in prepayments for business facilities	27,876	(27,876)
Dividends received	5,735	3,306
Net cash flows from (used in) investing activities	(769,439)	(1,070,286)
Cash flows from (used in) financing activities:
Increase in short-term borrowing	8,022,487	7,125,076
Decrease in short-term borrowing	(7,480,692)	(6,384,496)
Increase in short-term notes and bills	7,389,797	3,247,077
Decrease in short-term notes and bills	(7,489,265)	(2,997,352)
Proceeds from issuing bonds	-	1,000,000
Repayments of long-term debt	-	(202,300)
Payment of lease liabilities	(8,036)	(8,168)
Increase in other non-current liabilities	103	57
Cash dividends paid	(227,675)	(195,150)
Proceeds from issuing shares	796,000	-
Net cash flows from (used in) financing activities	1,002,719	1,584,744
Effect of exchange rate changes on cash and cash equivalents	102,452	(13,107)
Net increase (decrease) in cash and cash equivalents	438,476	617,598
Cash and cash equivalents at beginning of period	2,022,304	1,404,706
Cash and cash equivalents at end of period	$ 2,460,780	2,022,304

See accompanying notes to parent company only financial statements.

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)
G.M.I. Technology Inc.

Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

G.M.I. Technology Inc. (hereinafter referred to as the Company) was established in October 1995 with the approval of the Ministry of Economic Affairs, R.O.C and its registered office is located at 2F, No. 57, Xingzhong Rd, Neihu District, Taipei, Taiwan. The Company is principally engaged in the trading and manufacturing of electronic equipment and components, computer software development, trading and related business services.

(2) Approval date and procedures of the financial statements:

These financial statements were authorized for issue by the Board of Directors on March 9, 2026.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

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

Amendments to IAS 21 “Lack of Exchangeability”

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

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

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The following new and amended standards, which may be relevant to the Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:x

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.

• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027
note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The Company is evaluating the impact on its financial position and financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies:

The significant accounting policies presented in the parent company only financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the parent company only financial statements.

(a) Statement of compliance

These financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C..

(b) Basis of preparation

(i) Basis of measurement

Except for the following significant accounts, the parent company only financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note XX.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) Functional and presentation currency

The functional currency of each Company entity is determined based on the primary economic environment in which the entity operates. The parent company only financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Company entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Nonmonetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

1) an investment in equity securities designated as at fair value through other comprehensive income;
2) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
3) qualifying cash flow hedges to the extent that the hedges are effective.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Company disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interests. When the Company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

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

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

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

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

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(e) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are shortterm, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting shortterm cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose of the consolidated statement of cash flows.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(f) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

Some accounts receivables are held within a business model whose objective is achieved by both collecting contractual cash flows and selling by the Company, therefore, those receivables are measured at FVOCI. However, they are included in the ‘trade receivables’ line item.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Dividend income is recognized in profit or loss on the date on which the Company’s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. Trade receivables that the Company intends to sell immediately or in the near term are measured at FVTPL; however, they are included in the ‘trade receivables’ line item. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivable, leases receivable, guarantee deposit paid and other financial assets), debt investments measured at FVOCI and contract assets.

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

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

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company’s historical experience and informed credit assessment as well as forward-looking information.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 180 days past due.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Company has a policy of writing off the gross carrying amount when the financial asset is 180 days past due based on historical experience of recoveries of similar assets. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Compound financial instruments

Compound financial instruments issued by the Company comprise convertible bonds denominated in NTD that can be converted to ordinary shares at the option of the holder, when the number of shares to be issued is fixed and does not vary with changes in fair value.

The liability component of compound financial instruments is initially recognized at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognized at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not remeasured.

Interest related to the financial liability is recognized in profit or loss. On conversion at maturity, the financial liability is reclassified to equity and no gain or loss is recognized.

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

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

The cost of inventories transferred from biological assets is its fair value less costs to sell at the date of harvest.

(h) Investment in associates

Associates are those entities in which the Company has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Company's share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate's equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated Company's interests in the associate.

When the Company's share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The Company discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Company accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) (or retained earnings) when the equity method is discontinued. If the Company’s ownership interest in an associate is reduced while it continues to apply the equity method, the Company reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest to profit or loss.

If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Company continues to apply the equity method without remeasuring the retained interest.

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under capital surplus. If the capital surplus resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Company’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(i) Investment in subsidiaries

The subsidiaries in which the Company holds controlling interest are accounted for under equity method in the parent company only financial statements. Under equity method, the net income, other comprehensive income and equity in the parent company only financial statement are the same as those attributable to the owners of parent in the financial statements.

Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

(j) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses. The cost of certain items of property, plant and equipment on January 1, 2012, the Group’s date of transition to the Standards, was determined with reference to its fair value at that date.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

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

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straightline basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1) Building and structure 30 years
2) Machinery and equipment 5 years
3) Office equipment and other equipment 3~5 years
4) Leasehold Improvement 3 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(k) Leases

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

(i) As a leasee

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

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

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

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

(1) fixed payments, including in-substance fixed payments;
(2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(3) amounts expected to be payable under a residual value guarantee; and
(4) payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

(1) there is a change in future lease payments arising from the change in an index or rate; or
(2) there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or
(3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
(4) there is a change of its assessment on whether it will exercise a extension or termination option; or
(5) there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

For lease modifications that decrease the scope of the lease, the carrying amount of the right-of-use asset is reduced to reflect the partial or full termination of the lease, and the difference between such reduction and the remeasurement of the lease liability is recognized in profit or loss.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) As a leasor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Company applies IFRS15 to allocate the consideration in the contract.

The lessor recognizes a finance lease receivable at an amount equal to its net investment in the lease. Initial direct costs, such as lessors to negotiate and arrange a lease, are included in the measurement of the net investment. The lessor recognizes the interest income over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor's net investment in the lease. The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'other income'.

(1) Impairment of non financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, deferred tax assets and investment properties and biological assets, measured at fair value, less costs) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(m) Revenue Recognition

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The main revenues items of the merged company are described as follows:

(i) Selling goods

The Company recognizes revenue when control over a product is transferred. The transfer of control of the product means that the product has been delivered to the customer, the customer has full control over the sales channel and price of the product, and there are no outstanding obligations that would affect the customer's acceptance of the product. Delivery occurs when the product is delivered to a specific location, the risk of obsolescence and loss has been transferred to the customer, and the customer has accepted the product in accordance with the sales contract, the terms of acceptance have lapsed, or the Company has objective evidence that all acceptance conditions have been met.

The Company regularly provides sales discounts to its customers on the basis of sales achieved. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated sales discounts. Accumulated experience is used to estimate the discounts, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognized for expected volume discounts payable to customers in relation to sales made until the end of the reporting period.

The Company recognizes accounts receivable when the goods are delivered because the Company has the unconditional right to receive the consideration at that point in time.

(ii) Rental income

When the combined company leases equipment to customers, lease income is recognized based on the conditions of the lease contract and the period during which it is realized.

(n) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

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

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(o) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

(i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

(ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

1) the same taxable entity; or

2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(p) Earnings per share

The Company discloses the Company's basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, such as convertible bonds and employee compensation.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(q) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities, over the period during which the employees become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the share appreciation rights. Any changes in the liability are recognized in profit or loss.

Grant date of a share-based payment award is the date which the board of directors authorized the price and number of a new award.

(r) Operating segments

Segment information was disclosed in consolidated financial statements; therefore, it was not disclosed in the parent company only financial statement.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparing these consolidated financial statements, management has made judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Company's risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

The accounting policies involved significant judgement and have a significant impact on the amounts recognized in this consolidated financial report as follows:

(a) Judgement regarding significant influence over an investee

The Group holds 12.73% voting shares, and is the second largest shareholder, of Unitech Electronics Co., Ltd., resulting in the Group's chairman and his family having substantial control and significant influence over Unitech Electronics Co., Ltd..

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(b) Judgment regarding substantive control over an investee

Although the Company owns less than 50% of Rehear Audiology Company LTD, the Company and the related parties own more than 50% of Rehear Audiology Company LTD, and the Company could determine the related operating activities. Therefore, Rehear Audiology Company LTD, is regarded as a subsidiary.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of COVID-19 pandemic:

(a) The loss allowance for trade receivables

The Company has estimated the loss allowance for trade receivables that is based on the risk of a default occurring and the rate of expected credit loss. The Company has considered historical experience, current economic conditions and forward-looking information at the reporting date to determine the assumptions to be used in calculating the impairments and the selected inputs. The relevant assumptions and input values, please refer to note 6(b).

(b) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, The Company estimates the net realizable value of inventories for obsolescence and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a specific time horizon. Due to the rapid technological changes, the net realizable value of inventories may change significantly. The relevant assumptions and input values, please refer to note 6(d).

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 3,616	1,274
Cheques and demand deposits	2,457,164	2,021,030
	$ 2,460,780	2,022,304

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(b) Notes receivable, accounts receivable, and accounts receivable due from related parties

(i) The details are as follows:

	December 31, 2025	December 31, 2024
Current:
Notes receivable	$ 125,832	202,550
Accounts receivable	3,963,561	3,737,459
Accounts receivable due from related parties	675,607	329,841
Less: Allowance for losses	(33,983)	(35,421)
	4,731,017	4,234,429
Installment accounts receivable from related parties	347,561	-
Less: unrealized interest income	(78,547)	-
	269,014	-
Subtotal	5,000,031	4,234,429
Non-current:
Long-term installment accounts receivable from related parties	1,042,682	-
Less: unrealized interest income	(78,374)	-
Subtotal	964,308	-
	$ 5,964,339	4,234,429

1) On December 26, 2025, the Company's shareholders' meeting approved, in response to adjustments made to align with actual operating conditions, the resale of 127 H200 GPU servers to its U.S. subsidiary, GMI USA Corporation, at a sale price of USD44,233 thousand (approximately NTD1,390,243 thousand), with payment to be collected in 36 installments. The Company recognized the transaction at present value. For other related information on the transaction, please refer to Note 7(h)(3).

2) Details of the above financial assets pledged as collateral for short-term borrowings and credit facilities are provided in Note 8.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward-looking information. The loss allowance provisions were determined as follows:

	December 31, 2025
	Notes and accounts receivable carrying amount	Weighted-average loss ratio	Allowance provision
Current	$ 4,762,993	0.71%	33,869
Less than 90 days past due	2,007	5.68%	114
	$ 4,765,000		33,983
	December 31, 2024
	Notes and accounts receivable carrying amount	Weighted-average loss ratio	Allowance provision
Current	$ 4,122,146	0.82%	33,790
Less than 90 days past due	147,358	0.87%	1,285
More than 180 days past due	346	100%	346
	$ 4,269,850		35,421

The movement in the allowance for notes and accounts receivable were as follows:

	2025	2024
Balance at January 1	$ 35,421	32,974
Impairment losses (reversal of gains)	(924)	4,797
Foreign exchange gains or losses	(514)	(2,350)
Balance at December 31	$ 33,983	35,421

As of December 31, 2025 and 2024, none of the aforementioned financial assets were pledged as collateral for long-term borrowings or credit facilities.

(iii) The Company did not expect any default events to occur over the lifetime of the installment receivable from related parties and, therefore, no expected credit loss was recognized.

(iv) For information on credit risk, please refer to Note 6(t).

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The Company leases the GPU servers to its related party, GMI Computing International Ltd., wherein the Company classified the lease as a finance lease because the leases included the whole of the remaining term of the head lease. Please refer to note 7 for the description of related party transactions.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date, is as follows:

	December 31, 2025		December 31, 2024
	USD	TWD	USD	TWD
Less than one year	$ 1,890	59,408	4,680	153,449
1~2 year	1,890	59,408	4,680	153,449
2~3 year	1,890	59,408	4,680	153,449
3~4 year	945	29,705	4,680	153,449
4~5 year	-	-	2,342	76,722
Total lease payments receivable	6,615	207,929	21,062	690,518
Unearned finance income	(1,490)	(46,844)	(5,803)	(185,472)
Present value of lease payments receivable	$ 5,125	161,085	15,259	505,046
	December 31, 2025	December 31, 2024
---	---	---
Finance lease payment receivable - current	$ 37,821	85,929
Long term finance lease payment receivable	123,264	419,117
	$ 161,085	505,046

For credit risk information, please refer to Note 6(t).

For information on losses arising from lease modifications, please refer to Note 7.

For details of assets pledged as collateral for credit facilities as of December 31, 2025 and 2024, please refer to Note 8.

(d) Inventories

(i) The details are as follows:

	December 31, 2025	December 31, 2024
Goods for sale	$ 1,297,958	1,160,439

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) The movement in the allowance for notes and accounts receivable was as follows:

	2025	2024
Cost of goods sold	$ 19,969,134	16,821,698
Write down of inventory (Reversal of write down)	(29,179)	(17,603)
Loss on lease modification	49,012	-
Operating Costs	$ 19,988,967	16,804,095

The recovery gain on inventories was mainly attributable to changes in market conditions and historical sales experience, which resulted in an increase in net realizable value and a reduction in operating costs.

(iii) As of December 31, 2025 and 2024, none of the Company’s inventories had been pledged as collateral.

(e) Investments accounted for using equity method

A summary of the Company’s financial information for investments accounted for using the equity method at the reporting date is as follows:

	December 31, 2025	December 31, 2024
Subsidiaries	$ 4,538	(42,830)
Associates	331,267	323,952
Accumulated impairment loss and amortization:	(76,640)	(76,640)
Subtotal	259,165	204,482
Credit balance of investment accounted for using equity method	88,954	69,755
	$ 348,119	274,237

(i) Subsidiaries

Please refer to the consolidated financial statements for the year ended December 31, 2025.

(ii) Associates

For Affiliates that are significant to the Company, their relevant information is as follows:

Associate Name	Nature of the relationship with the Company	Main business sector/Country of company registration	Proportion of ownership interest and voting rights
			December 31, 2025	December 31, 2024
Unitech Electronics Co., Ltd.	Invested by the Company using equity method	Taiwan	12.73 %	12.73 %

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

For Affiliates that are significant to the Company have been listed on the stock exchange, their fair values are as follows:

	December 31, 2025	December 31, 2024
Unitech Electronics	$ 275,299	371,845

The aggregated financial information of the affiliates that are material to the Company is as follows. The financial information has been adjusted to the amounts included in the IFRS consolidated financial statements of each affiliate to reflect the Company's fair value adjustments and adjustments made for differences in accounting policies for affiliates when acquiring equity in Affiliates:

1) Unitech Electronics’s Aggregate Financial Information:

	December 31, 2025	December 31, 2024
Current Assets	$ 2,101,930	2,004,388
Non-Current Assets	522,096	547,490
Current Liabilities	(599,690)	(567,107)
Non-Current Liabilities	(85,734)	(101,189)
Net Assets	$ 1,938,602	1,883,582
	2025	2024
Operating Income	$ 2,452,536	2,438,169
Current period net profit	$ 100,984	94,214
Other comprehensive gains and losses	(905)	3,434
Total comprehensive gains and losses	$ 100,079	97,648
Total comprehensive income attributable to non-controlling interests	$ 256	289
Total comprehensive income attributable to owners of the investe	$ 99,823	97,359
	2025	2024
Beginning carrying balance of the Company’s share of net assets of affiliates	$ 231,361	222,590
The Company’s total gains and losses attributable to affiliates	13,008	12,077
Dividends received from affiliates	(5,735)	(3,306)
Ending balance of the Company’s share of net assets of affiliates	238,634	231,361
Ending balance of the Company’s share of net assets of associates	$ 238,634	231,361

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(iii) The aggregate financial information of the Company's equity-method associates, which are individually insignificant, is summarized as follows (amounts included in the Company's consolidated financial statements):

	December 31, 2025	December 31, 2024
Carrying amount of equity in individual insignificant associates	$ 15,993	15,951
	For the years ended December 31,
	2025	2024
Attributable to the Company:
Net income for the period	$ 654	938
Other comprehensive income or loss	(612)	924
Total comprehensive income or loss	$ 42	1,862

(iv) Collateral

Some of the Company's investments accounted for using the equity method have been pledged as collateral, please refer to Note 8.

(f) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Company for the years ended December 31, 2025 and 2024 were as follows:

Costs	Land	Buildings and Construction	Machinery and equipment	Leasehold improvements	Office equipment	Other equipment	Unfinished construction	Total
Balance on January 1, 2025	$ 270,496	51,264	-	-	11,816	3,771	1,440,041	1,777,388
Additions	-	-	112,189	-	2,639	238	-	115,066
Reclassification	-	-	1,440,041	-	-	-	(1,440,041)	-
Disposal	-	-	(1,552,230)	-	(760)	-	-	(1,552,990)
Effects of changes in foreign exchange rates	-	-	-	-	(50)	-	-	(50)
Balance on December 31, 2025	$ 270,496	51,264	-	-	13,645	4,009	-	339,414
Balance on January 1, 2024	$ 270,496	51,264	-	2,499	12,951	1,715	-	338,925
Additions	-	-	524,347	-	1,326	2,130	1,440,041	1,967,844
Disposal	-	-	(524,347)	(2,617)	(2,559)	(74)	-	(529,597)
Effects of changes in foreign exchange rates	-	-	-	118	98	-	-	216
Balance on December 31, 2024	$ 270,496	51,264	-	-	11,816	3,771	1,440,041	1,777,388

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

	Land	Buildings and Construction	Machinery and equipment	Leasehold improvements	Office equipment	Other equipment	Unfinished construction	Total
Depreciation and impairment losses:
Balance on January 1, 2025	$ -	5,775	-	-	5,392	834	-	12,001
Depreciation for the year	-	1,699	527	-	2,715	831	-	5,772
Disposal	-	-	(527)	-	(728)	-	-	(1,255)
Effects of changes in foreign exchange rates	-	-	-	-	(34)	-	-	(34)
Balance on December 31, 2025	$ -	7,474	-	-	7,345	1,665	-	16,484
Balance on January 1, 2024	$ -	4,076	-	2,499	5,316	396	-	12,287
Depreciation for the year	-	1,699	-	-	2,569	512	-	4,780
Disposal	-	-	-	(2,617)	(2,559)	(74)	-	(5,250)
Effects of changes in foreign exchange rates	-	-	-	118	66	-	-	184
Balance on December 31, 2024	$ -	5,775	-	-	5,392	834	-	12,001
Carrying amounts:
Balance on December 31, 2025	$ 270,496	43,790	-	-	6,300	2,344	-	322,930
Balance on December 31, 2024	$ 270,496	45,489	-	-	6,424	2,937	1,440,041	1,765,387
Balance on January 1, 2024	$ 270,496	47,188	-	-	7,635	1,319	-	326,638

(i) In order to expand its business and rendering various kinds of services, the Company built a total of 52 GPU servers, which were completed in June 2024, based on a resolution approved during its board meeting held on March 12, 2024. After continuous evaluation and consideration due to a number of factors such as the long preparation time of the professional AI computing team, the difficulty in technology training, and the timing of the AI cloud market, instead of building its own organizational team to operate in cloud services in July, the Company entered into an agreement with GMI Computing International Ltd., a related party, to lease out the GPU servers that have been built, to which it charge a rental fee from them.

(ii) The 127 GPU servers acquired by the Company have been received and installed as of March 31, 2025 for cloud computing operations, based on the resolution approved during its board meeting held on September 5, 2024. Moreover, the said equipment was recognized as "payable on machinery equipment" as of December 31, 2025, and December 31, 2024 since the relevant construction work has been completed and the servers were leased to GMI Computing, wherein the rental fees of $0 thousand and $912,248 thousand, respectively, have been collected.

(iii) Based on the decisions made by its board on September 5 and October 22, 2024, to be submitted during its shareholders' meeting for approval on December 10, 2024, the Group recognized the above lease, and the disposal of the subject asset, as a finance lease because the lease included the entire remaining term of the head lease, and finance lease receivable, respectively. Please refer to Note 6(c) and Note 7 for the finance lease payment receivable disclosed in the following table and related party transactions, respectively.

(iv) For details on financial assets guaranteed as st-term loans and financing guarantees mentioned above, please refer to Note 8.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(g) Right-of-use assets

	Buildings and Construction	Transportation Equipment	Total
Cost:
Balance on January 1, 2025	$ 6,151	6,528	12,679
Additions	5,827	-	5,827
Reduction	(5,827)	(6,528)	(12,355)
Effects of changes in foreign exchange rates	(268)	-	(268)
Balance on December 31, 2025	$ 5,883	-	5,883
Balance on January 1, 2024	$ 11,170	6,528	17,698
Additions	5,995	-	5,995
Reduction	(11,699)	-	(11,699)
Effects of changes in foreign exchange rates	685	-	685
Balance on December 31, 2024	$ 6,151	6,528	12,679
Depreciation:
Balance on January 1, 2025	$ 3,076	4,352	7,428
Depreciation	5,827	2,176	8,003
Reduction	(5,827)	(6,528)	(12,355)
Effects of changes in foreign exchange rates	(134)	-	(134)
Balance on December 31, 2025	$ 2,942	-	2,942
Balance on January 1, 2024	$ 8,378	2,176	10,554
Depreciation	5,922	2,176	8,098
Reduction	(11,699)	-	(11,699)
Effects of changes in foreign exchange rates	475	-	475
Balance on December 31, 2024	$ 3,076	4,352	7,428
Carrying amounts:
Balance on December 31, 2025	$ 2,941	-	2,941
Balance on December 31, 2024	$ 3,075	2,176	5,251
Balance on January 1, 2024	$ 2,792	4,352	7,144

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(h) Short-term notes and bills payable

December 31, 2025
Guarantee or acceptance institution	Range of interest rates	Total Amount
Commercial paper payable	Dah Chung Bills Finance Corp.	1.91% $ 150,000
Commercial paper payable	Taiwan Finance Corporation	1.92% 100,000
Commercial paper payable	Mega Bills Finance Corp.	1.93% 100,000
Less: Discount on short term notes and bills payable		(142)
Total		$ 349,858
December 31, 2024
---	---	---
Guarantee or acceptance institution	Range of interest rates	Total Amount
Commercial paper payable	Dah Chung Bills Finance Corp.	2.099% $ 150,000
Commercial paper payable	Taiwan Finance Corporation	2.1% 100,000
Commercial paper payable	Taiwan Cooperative Bills Finance Corporation	2.058% 100,000
Commercial paper payable	Ta Ching Bills Finance Corp.	1.988% 100,000
Less: Discount on short term notes and bills payable		(674)
Total		$ 449,326

The Company has pledged assets as collateral for the payment of short-term notes and bills, please refer to Note 8.

(i) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured bank loans	$ 2,357,693	1,815,898
Secured bank loans	280,000	280,000
	$ 2,637,693	2,095,898
Unused short-term credit lines	$ 7,917,796	5,978,199
Range of Interest rate	1.85%~5.49%	1.88%~6.29%

For the collateral for bank loans, please refer to Note 8.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(j) Bonds Payable

(i) The information on the Company’s Unsecured Bonds issued were as follows:

	December 31, 2025	December 31, 2024
Total convertible corporate bond issued	$ 1,000,000	1,000,000
Less:unamortised discount on corporate bonds payable	(32,558)	(53,678)
Cumulative amount converted	(100)	-
Balance of corporate bonds payable at end of period	$ 967,342	946,322
Embedded derivative – recallable right, included in financial assets at fair value through profit or loss	$ -	1,200
Equity component – conversion options, included in capital surplus–stock options	$ 65,865	65,872
	2025	2024
Embedded derivative – recallable right at fair value through profit or loss, included in financial liabilities at fair value through profit or loss	$ (1,200)	(600)
Interest expense	$ 21,116	10,385

In 2025, the Company issued 1 unit of convertible corporate bond that was converted into 14 thousand ordinary shares upon the exercise of the conversion right by the bondholder at a conversion price of NT$73.5 per share.

(ii) The principal terms of issue of the first convertible corporate bons are as follows:

1) Periods: 3 Year (As of June 25, 2024 to June 25, 2027)
2) Cupon rate : 0%
3) Redemption method: The Company may redeem the bonds under the following circumstances:

A. For the period from 3 months after the issuance date to the 40 days before the expiration of the issuance period. If the Company's ordinary shares, which are listed on the Taiwan Stock Exchange (TWSE), have a closing price exceeding the current conversion price more than 30% for 30 consecutive business days, the Company has the right to redeem the bonds at the face value.
B. For the period from 3 months after the issuance date to the 40 days before expiration of the issuance period. If the outstanding balance of the convertible corporate bonds is less than 10% of the total face value of the original issue, the Company has the right to redeem the bonds at face value.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(iii) Conversion Method:

A. Creditors may apply for conversion into ordinary shares of the Company in accordance with the conversion method from September 26, 2024 to June 25, 2027.

B. Conversion price: The initial conversion price at issuance was NT$76.8 per share. When events requiring adjustment of the conversion price occur in accordance with the issuance terms due to changes in the Company’s ordinary shares, the conversion price shall be adjusted based on the formula specified in the issuance terms. There is no reset clause for these bonds. As of December 31, 2025, the conversion price was NT$73.2 per share.

(k) Lease liabilities

The carrying amounts of the Company’s lease liabilities were as follows:

	December 31, 2025	December 31, 2024
Current	$ 2,966	5,310

The amounts of leases recognized in profit or loss were as follows:

	For the years ended December 31,
	2025	2024
Interest expense on lease liabilities	$ 154	194
Expenses relating to short-term leases	$ 524	530

The amounts of leases recognized in the statement of cash flows for the Company were as follows:

	For the years ended December 31,
	2025	2024
Total cash outflow for leases	$ 8,714	8,892

The Company leases buildings for its office space and employee housing, with terms that typically run for five years. Some leases include an option to extend the lease for the same period as the original contract upon maturity. To the extent that it is not reasonably certain that an optional extension of the lease term will be exercised, payments related to the period covered by the option are not included in the lease liability.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(1) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value is as follows:

	December 31, 2025	December 31, 2024
Present value of the defined benefit obligations	$ 7,413	8,635
Fair value of plan assets	(14,212)	(14,766)
Net defined benefit liabilities	$ (6,799)	(6,131)

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pension benefits for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company’s Bank of Taiwan labor pension reserve account balance amounted to $14,212 thousand as of December 31, 2025. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

2) Movements in present value of defined benefit obligations

The movement in present value of the defined benefit obligations of the Company was as follows:

	For the years ended December 31,
	2025	2024
Defined benefit obligations at January 1	$ 8,635	12,175
Current service cost and interest cost	138	146
Net defined benefit liability remeasurement	764	(494)
Benefits paid	(2,124)	(3,192)
Defined benefit obligations at December 31	$ 7,413	8,635

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

3) Movements in fair value of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Company were as follows:

	For the years ended December 31,
	2025	2024
Fair value of plan assets at January 1	$ (14,766)	(14,562)
Interest income	(239)	(177)
Net defined benefit asset remeasurement	(1,029)	(1,272)
Contributions paid by the employer	(302)	(351)
Benefits paid	2,124	1,596
Fair value of plan assets at December 31	$ (14,212)	(14,766)

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Company were as follows:

	For the years ended December 31,
	2025	2024
Current service cost and interests	$ 138	146
Net interest of net liabilities for defined benefit obligations	(239)	(177)
	$ (101)	(31)
	2025	2024
Operating expenses	$ (101)	(31)

5) Remeasurement of the net defined benefit liabilities recognized in other comprehensive income

The cumulative remeasurement of the Company’s net defined benefit obligation recognized in other comprehensive income were as follows:

	For the years ended December 31,
	2025	2024
Cumulated amount at January 1	$ 1,880	114
Total gain/loss recognized	265	1,766
Cumulated amount at December 31	$ 2,145	1,880

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

6) Actuarial assumptions

The principal actuarial assumptions of the actuarial valuation was as follows:

	2025	2024
Discount Rate	1.30 %	1.60 %
Future salary increases	3.00 %	3.00 %

The expected allocation payment to be made by the Company to the defined benefit plans for the one year period after the reporting date is $257 thousand.

The weighted average lifetime of the defined benefit plans is 5.5 years.

7) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

	Impact on the defined benefit obligations
	Increased 1.00%	Decreased 1.00%
Balance at December 31, 2025
Discount Rate	$ (413)	418
Future salary increases	358	(355)
Balance at December 31, 2024
Discount Rate	(463)	468
Future salary increases	397	(394)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. In practical, the relevant actuarial assumptions are correlated to each other. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of the sensitivity analysis for 2025 and 2024.

(ii) Defined contribution plans

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The total pension costs of the Company’s overseas subsidiaries under their respective defined contribution plans are recognized in accordance with their local regulations. All pension payment contributed in the current period are recognized as pension expense.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $5,724 thousand and $3,959 thousand for the years ended December 31, 2025 and 2024, respectively.

(iii) Defined benefit plans

The expenses recognized in profit or loss for the Company were as follows:

Short term paid leave liabilities (presented under other payables)

2025	2024
$ 2,031	$ 1,116

(m) Income taxes

(i) Income tax expenses

The components of income tax expense (gains) in the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31,
	2025	2024
Current tax expense
Current period	$ 112,301	84,342
Subtotal	112,301	84,342
Deferred tax expense (income)
Origination and reversal of temporary differences	(17,541)	25,130
Subtotal	(17,541)	25,130
Income tax expense	$ 94,760	109,472

Reconciliation of income tax expense and profit before tax for 2025 and 2024 is as follows:

	For the years ended December 31,
	2025	2024
Profit before income tax	$ 383,363	495,850
Income tax using the Company’s domestic tax rate	76,672	99,170
Permanent difference	5,151	1,882
Change in unrecognized temporary differences	3,572	12,587
Additional tax on undistributed earnings	6,083	4,774
Others	3,282	(8,941)
Total	$ 94,760	109,472

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) Deferred tax assets and liabilities

1) Unrecognized deferred tax assets

Deferred tax assets have not been recognized with respect to the following items:

	December 31, 2025	December 31, 2024
Tax effect of deductible Temporary Differences	$ 128,940	125,368

The deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom.

2) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax liabilities for 2025 and 2024 were as follows:

	Unrealized exchange gains
Balance at January 1, 2025	$ 9,194
Recognized in profit or loss	(9,194)
Balance at December 31, 2025	$
Balance at January 1, 2024	$ -
Recognized in profit or loss	9,194
Balance at December 31, 2024	$ 9,194

Changes in the amount of deferred tax assets for 2025 and 2024 were as follows:

	Allowance for bad debt	Unrealized exchange loss	Other	Total
Balance at January 1, 2025	$ 5,172		5,755	10,927
Recognized in profit or loss	(676)	8,026	997	8,347
Balance at December 31, 2025	$ 4,496	8,026	6,752	19,274
Balance at January 1, 2024	$ 6,956	15,759	4,148	26,863
Recognized in profit or loss	(1,784)	(15,759)	1,607	(15,936)
Balance at December 31, 2024	$ 5,172	-	5,755	10,927

(iii) The Company did not recognize any income tax directly in other comprehensive income in 2025 and 2024.

(iv) The Company’s income tax returns have been assessed and approved by the tax authorities through 2022.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(n) Capital and other equity

As of December 31, 2025 and 2024, the total value of authorized ordinary shares was amounted to $3,000,000 thousand and $2,000,000 thousand, respectively. The number of authorized ordinary shares were 300,000 thousand shares and 200,000 thousand shares with par value of $10 per share, of which 182,627 thousand shares and 162,625 thousand shares of ordinary shares were issued, respectively. All issued shares were paid up upon issuance.

Reconciliation of shares outstanding for year ended December 31, 2025 and 2024 were as follows:

	Ordinary share
	For the years ended December 31,
(in thousands of shares)	2025	2024
Beginning balance as of January 1	162,625	162,625
Issued for cash	20,000	-
Conversion of convertible bonds	2	-
Ending balance as of December 31	182,627	162,625

(i) Issuance of ordinary shares

From January 1 to December 31, 2025, the Company issued 2 thousand new shares upon the exercise of conversion rights by the holders of convertible bonds. The shares were issued at par value, with total proceeds of $14 thousand. The capital increase base date was October 28, 2025, and the related statutory registration procedures have been completed.

On July 3, 2025, the Company's Board of Directors resolved to undertake a cash capital increase and issue 20,000 thousand common shares at an issue price of $39.8 per share (including premium), with total proceeds of $796,000 thousand. The capital increase base date was October 29, 2025. All subscription payments for the issued shares have been collected, and the related statutory registration procedures have been completed.

(ii) Capital surplus

The balances of capital surplus as of December 31, 2025 and 2024, were as follows:

	December 31, 2025	December 31, 2024
Share capital at premium	$ 816,030	219,941
Difference arising from subsidiary's share price and its carrying value	558	370
Changes in net equity of associates recognized by equity method	36	36
Employee stock options	8,043	3,139
Subsidiary cash capital increase	82,415	19,710
Convertible corporate bonds stock options	65,865	65,872
	$ 972,947	309,068

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

The Company did not participate in the cash capital increase of its subsidiary, Rehear Audiology, who issued 1,000 shares, at a par value of $5 per share and an issue price of $80, with the base date set on August 1, 2024, based on its board meeting held on March 25, 2024. Instead, the entire shares above totaling $80,000 thousand had been fully subscribed by Transcend Information, Inc., with the relevant procedures having been completed on August 16, 2024, resulting in the Company's shareholding ratio to decrease from 27.05% to 25.76%, while maintaining control over Rehear Audiology and its relevant activities. Furthermore, the above transaction resulted in an increase of $188 thousand in the Company's capital reserve.

A subsidiary of the Group, Rehear Audiology, approved by the Board of Directors on April 25, 2025, a cash capital increase through the issuance of 3,525 thousand new shares with a par value of $5 per share at an issue price of $80 per share, for a total amount of $282,000 thousand. The record date for the cash capital increase was June 24, 2025. As the Group did not subscribe for the new shares in proportion to its existing ownership interest, its equity interest decreased from 27.62% to 23.65%. Accordingly, the change in ownership interest resulted in an increase in capital surplus of $62,705 thousand.

On July 3, 2025, the Company's Board of Directors approved a cash capital increase through the issuance of new shares. In accordance with applicable laws and regulations, a portion of the new shares was reserved for employee subscription. Please refer to Note 6(x) for further details.

(iii) Retained earnings

In accordance with the Company's Articles of Association, if there is any surplus in the annual final accounts, the Company shall first pay taxes to cover for the prior years' deficits and then set aside 10% of the legal reserve, except when the legal reserve has reached the Company's paid-in capital; in addition, special reserve shall be set aside in accordance with the Company's operating needs and laws and regulations. Then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the shareholders' meeting for approval.

In order to maintain a sound financial structure and to take into account the interests of investors, the Company adopts a balanced dividend policy by distributing no less than 30% of the distributable earnings and paying cash dividends on 10% or more of the dividends distributed in a given year. If the dividend is less than $3, the Company may distribute stock dividends in full.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

In accordance with Permit No. 1010012865 as issued by the Financial Supervisory Commission on 6 April 2012, a special reserve equal to the contra account of other shareholders’ equity is appropriated from current and prior period earnings. When the debit balance of any of the contra accounts in the shareholders’ equity is reversed, the related special reserve can be reversed. The subsequent reversals of the contra accounts in shareholders' equity shall qualify for additional distributions.

3) Earnings distribution

On June 25,2025 and June 26,2024, the appropriation of earnings for 2024 and 2023 was resolved in the general meeting of shareholders. The amounts of dividends distributed to shareholders were as follows:

	2024		2023
	Amount per share	Total Amount	Amount per share	Total Amount
Dividends distributed to ordinary shareholders:
Cash	$ 1.40	227,675	1.20	195,150

On March 9, 2026, the Company’s Board of Directors proposed the appropriation of earnings for 2025. The amounts of dividends to be distributed to owners are as follows:

	For the years ended December 31,
	2025
	Amount per share	Total Amount
Dividends distributed to ordinary shareholders:
Cash	$ 1.30	237,415

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(iv) Other equity

	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial assets at fair value through other comprehensive income	Total
Balance on January 1, 2025	$ 192,754	1,497	194,251
Exchange differences on translation of net assets of foreign operations	(104,458)	(410)	(104,868)
Balance on December 31, 2025	$ 88,296	1,087	89,383
Balance at January 1, 2024	$ 33,510	443	33,953
Exchange differences on translation of net assets of foreign operations	159,244	1,054	160,298
Balance at December 31, 2024	$ 192,754	1,497	194,251

(o) Earnings per share

(i) Basic earnings per share

Basic earnings per share for 2025 and 2024 were calculated based on the profit attributable to ordinary equity holders of the Company and the weighted-average number of ordinary shares outstanding during the year. The related calculations were as follows:

	For the years ended December 31,
	2025	2024
Profit attributable to ordinary equity holders of the Company	$ 288,603	386,378
Weighted-average number of ordinary shares outstanding	$ 166,133	162,625
Basic earnings per share	$ 1.74	2.38

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) Diluted earnings per share

The details on the calculation of diluted earnings per share as of December 31, 2025 and 2024 were based on the profit attributable to ordinary shareholders of the Company, and the weighted average number of ordinary shares outstanding after adjusting the effects of all dilutive potential ordinary shares is as follows:

	2025	2024
Profit attributable to ordinary shareholders of the Company	$ 288,603	386,378
Interest expense on convertible bonds, net of tax and gains on remeasurements of redemption of convertible corporate bonds at fair value	18,093	8,908
Profit attributable to ordinary shareholders of the Company	$ 306,696	395,286
Weighted-average number of ordinary shares outstanding	$ 166,133	162,625
Effect of convertible corporate bonds	13,661	6,778
Effect of employee share bonus	14	13
Weighted-average number of ordinary shares outstanding	$ 179,808	169,416
Diluted earnings per share	$ 1.71	2.33

(p) Revenue from contracts with customers

(i) Details of revenue

	For the years ended December 31,
	2025	2024
Primary geographical markets:
Taiwan	$ 625,531	498,102
United States	186,828	-
China	19,670,519	16,463,707
Others	613,366	780,760
	$ 21,096,244	17,742,569

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

	2025	2024
Major products/service lines:
Digital Communication Solutions and Components	$ 18,000,264	15,724,337
Storage Applications Solutions and Components	2,678,407	1,828,152
Analog Electronic Components	169,421	151,963
Server lease interest revenue	$ 248,152	38,117
	$ 21,096,244	17,742,569

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable	$ 125,832	202,550	91,960
Accounts receivable	3,963,561	3,737,459	3,008,056
Accounts receivable due from related parties	675,607	329,841	193,053
Less: Loss allowance	(33,983)	(35,421)	(32,974)
Total	$ 4,731,017	4,234,429	3,260,095
Contract liabilities	$ 22,814	14,023	14,531

The opening balances of contract liabilities of $8,790 thousand and $9,643 thousand on January 1, 2025 and 2024 were recognized as income for the years ended December 2025 and 2024, respectively. For details on notes and accounts receivable and allowance for impairment, please refer to note 6(b).

(q) Employee compensation and directors' and supervisors' remuneration

On June 25, 2025, the Company resolved at the shareholders' meeting to amend its Articles of Incorporation. According to the amended Company Article of Incorporation, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2% (in cash) of the remaining net profit shall be allocated as remunerations to directors and supervisors, and not less than 1% (in shares or in cash) as employee remuneration, including a minimum of 15% to those base-level employees. The distribution shall also include those employees of the Company's subsidiaries who meet certain requirements. Prior to the amendment, the Articles of Incorporation stipulated that, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2% (in cash) of the remaining net profit shall be allocated as remunerations to directors and supervisors, and a minimum of 0.1% (in shares or in cash) as employee remuneration, including those employees of the Company's subsidiaries who meet certain requirements. The distribution of employee remuneration, be it in shares or in cash, has to be resolved at the board meeting. Thereafter, the remuneration to each employee, director and supervisor should be submitted and reported to the shareholders' meeting.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

For the years ended December 31, 2025 and 2024, the Company accrued its employee remunerations of $400 thousand and $600 thousand, as well as its remunerations to directors and supervisors of $7,800 thousand and $10,000 thousand, respectively. The estimated amounts mentioned above were calculated based on the net profit before tax, excluding the remuneration to employees, directors and supervisors of each period, multiplied by the percentage of remuneration to employees, directors and supervisors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during the years ended 2025 and 2024. If the actual amounts differ from the estimated amounts, the differences shall be accounted as changes in accounting estimates and recognized as profit or loss in the following year. However, if the Board of Directors resolved that the employee remuneration is distributed through stock dividends, the numbers of shares to be distributed will be calculated based on the closing price of the Company's ordinary shares one day before the date of the meeting of Board of Directors.

The related information can be accessed from market observation post system website. The amounts, as stated in the consolidated financial statements, are identical to those of the actual distributions for 2025 and 2024.

(r) Non-operating income and expenses:

(i) Interest income

The details of interest income are as follows:

	For the years ended December 31,
	2025	2024
Interest income	$ 20,883	54,128

(ii) Other income

The Company’s other income was as follows:

	For the years ended December 31,
	2025	2024
Other	$ 20,345	15,750

(iii) Other gains and losses

The Company’s other gains and losses were as follows:

	For the years ended December 31,
	2025	2024
Foreign exchange gains	$ (97,335)	119,691
Gains (Losses) on financial assets (liabilities) at fair value through profit or loss	(1,200)	(600)
Losses on disposals of property, plant and equipment	495	-
Other	(247)	-
	$ (98,287)	119,091

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(iv) Finance costs

Finance costs of the Company are detailed as follows:

	For the years ended December 31,
	2025	2024
Interest on bank loans	$ (92,425)	(67,435)
Lease liabilities	(154)	(195)
Convertible corporate bonds	(21,116)	(10,385)
	$ (113,695)	(78,015)

(s) Financial instruments

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

2) Concentration of credit risk

The Company’s customers are concentrated in a large group of high-tech computer industry customers. In order to reduce the credit risk of accounts receivable, the Company continuously evaluates the financial position of its customers and, if necessary, requires them to provide guarantees or assurances. The Company also regularly evaluates the probability of collection of accounts receivable and provides an allowance for losses.

3) Credit risk of receivables

For details on credit risk of notes and accounts receivable, please refer to note 6(b).

(ii) Liquidity risk

The followings were the contractual maturities of financial liabilities, including estimated interest payment.

	Carrying amounts	Contractual Cash flows	within 6 months	6-12 months	1-2 years	2-5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities
Short-term borrowings	$ 2,637,693	2,655,047	1,975,906	679,141	-	-	-
Short-term notes payables	349,858	350,000	350,000	-	-	-	-
Accounts payable (including related parties)	2,836,298	2,836,298	2,836,298	-	-	-	-
Payable on machinery and equipment	97	97	97	-	-	-	-
Other payable (including related parties)	74,954	74,954	74,954	-	-	-	-
Lease liabilities	2,966	2,981	2,981	-	-	-	-
Bonds payable	967,342	999,900	-	-	999,900	-	-
	$ 6,869,208	6,919,277	5,240,236	679,141	999,900	-	-

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

	Carrying amounts	Contractual Cash flows	within 6 months	6-12 months	1-2 years	2-5 years	Over 5 years
December 31, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 2,095,898	2,116,191	1,967,126	149,065	-	-	-
Short-term notes payables	449,326	450,000	450,000	-	-	-	-
Accounts payable (including related parties)	2,634,949	2,634,949	2,634,949	-	-	-	-
Payable on machinery and equipment	912,248	912,248	912,248	-	-	-	-
Other payable (including related parties)	82,499	82,499	82,499	-	-	-	-
Lease liabilities	5,310	5,295	4,181	1,114	-	-	-
Bonds payable	946,322	1,000,000	-	-	-	1,000,000	-
	$ 7,126,552	7,201,182	6,051,003	150,179	-	1,000,000	-

The Company does not expect that the cash flows included in the maturity analysis would occur significantly earlier or at significantly different amounts.

(iii) Currency risk

1) Exposure of foreign currency risk

The Company’s significant exposure to foreign currency risk was as follows:

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD
Financial assets
Monetary items
USD	$ 331,056	31.430	10,405,090	242,313	32.785	7,944,232
RMB	737	4.496	3,314	219	4.478	981
Financial liabilities
Monetary items
USD	151,328	31.430	4,756,239	121,535	32.785	3,984,525

2) Sensitivity analysis

The Company’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. A strengthening (weakening) of 1% of the NTD against the USD and the CNY at December 31, 2025 and 2024, would have increased or decreased the profit before tax by $56,522 thousand and $39,607 thousand, respectively. The analysis assumes that all other variables remain constant and was performed on the same basis for both periods.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

3) Foreign exchange gains and losses on monetary items

Since the Company has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For years 2025 and 2024, foreign exchange gain (including realized and unrealized portions) amounted to $(97,335) thousand and $119,691 thousand, respectively.

(iv) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Company's financial assets and liabilities.

The following sensitivity analysis is based on the risk exposure to the interest rates risk of derivative and non-derivative financial instruments on the reporting date. Regarding liabilities with variable interest rates, the analysis is based on the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the Company management's assessment of the reasonably possible interest rate change.

If the interest rate increases or decreases by 1% the Company's net income will decrease /increase by $29,876 thousand and $25,452 thousand for the years ended December 31, 2025 and 2024 with all other variable factors remaining constant. This is mainly due to the Company's variable rate bank deposit.

(v) Fair value of financial instruments

1) Fair value hierarchy

The fair value of financial assets and liabilities at fair value through profit or loss, financial instruments used for hedging, and financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Company's financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required :

	December 31, 2024
	Book Value	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Convertible corporate bond recallable rights	$ 1,200	-	1,200	-	1,200

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

2) Valuation technique for the financial instrument at fair value

(2.1) Non-derivative financial instruments

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

Measurements of fair value of financial instruments without an active market are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

(2.2) Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models. Fair value of forward currency is usually determined by the forward currency exchange rate.

(t) Financial risk management

(i) Overview

The Company has exposure to the following risks from its financial instruments:

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

The following likewise discusses the Company’s exposure information, objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying non-consolidated financial statements.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(ii) Structure of risk management

The Company’s finance management department provides business services for the overall internal department. It monitor and manage financial risks of the Company’s business operation through internal risk report, which analyze the exposure according to risk levels and scopes. The Company these risks by natural hedging through timely adjust its foreign currency assets and liabilities position. The Board of Directors regulated the use of derivative financial instruments in accordance with the Company’s policy about risks arising from financial instruments such as currency risk, interest rate risk, credit risk, the use of derivative and non-derivative financial instruments and the investments of excess liquidity. The internal auditors of the Company continue with the review of the amount of the risk exposure in accordance with the Company’s policies and the risk management policies and procedures. The Company has no transactions in financial instruments (including derivative financial instruments) for the purpose of speculation. The business and finance departments submit quarterly financial and business reports to the board of directors of the Company in accordance with the procedure of the board meetings.

(iii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in debt securities.

1) Accounts receivable and other receivables

The policy adopted by the Company is to deal only with reputable parties and, where necessary, obtain collateral to mitigate the risk of financial losses arising from default. The Company will rate the major customers using other publicly available financial information and mutual transaction records. The Company continuously monitors credit risk and credit ratings of the counterparty, and distributes the total amount of the transaction to eligible customers of each credit rating. Credit risk exposure is controlled through the credit limit of the counterparty that is reviewed and approved annually by the Risk Management Committee.

2) Investments

The exposure to credit risk for the bank deposits and other financial instruments is measured and monitored by the Company’s finance department. The Company only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Company does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(iv) Liquidity risk

The Company manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Company’s management supervises the banking facilities and ensures compliance with the terms of loan agreements.

Loans and borrowings from the bank form an important source of liquidity for the Company. As of December 31, 2025 and 2024, the Company's unused credit line were amounted to $7,917,796 thousand and $5,978,199 thousand, respectively.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Company income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Company is exposed to currency risk on sales and purchases and borrowings that are denominated in a currency other than the functional currency of the Company’s respective entity, primarily the NTD, USD, HKD and RMB. The currencies used in these transactions are the NTD, USD dollar, HKD and RMB.

2) Interest rate risk

The Company borrows funds on fixed and variable interest rates, which has a risk exposure to changes in fair value and cash flow. The Company manages the interest rates risk by maintaining an adequate combination of fixed and variable interest rates.

(u) Capital management

The Company sets its objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return to stockholders, to safeguard the interest of related parties, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the dividend payment and reduce the capital for redistribution to its shareholders, issue new shares, or sell assets to settle any liabilities.

The Company uses the debt-to-equity ratio to manage capital. The net debt from the balance sheet is derived from the total liabilities less cash and cash equivalents. The total capital and equity include share capital, capital surplus, retained earnings, and other equity plus net debt. The total capital and equity include share capital, capital surplus, retained earnings, and other equity plus net debt.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The Company’s debt-to-equity ratios at the end of the reporting periods were as follows:

	December 31, 2025	December 31, 2024
Total liabilities	$ 7,016,214	7,241,352
Less: Cash and cash equivalents	(2,460,780)	(2,022,304)
Net liabilities	$ 4,555,434	5,219,048
Total equity	$ 3,908,281	3,088,063
Debt-to-equity ratio	53.82%	62.83%

(v) Investing and financing activities not affecting cash flows

The reconciliation of liabilities arising from financing activities was as follows:

	Non-Cash changes
	Jan. 1, 2025	Cash flows	Amortization of discount and premium	Conversion into ordinary shares	Lease modification	Foreign exchange movement	December 31, 2025
Short-term notes payables	$ 449,326	(99,468)	-	-	-	-	349,858
Short-term borrowings	2,095,898	541,795	-	-	-	-	2,637,693
Lease liabilities	5,310	(8,036)	-	-	5,827	(135)	2,966
Bonds payables	946,322	-	21,120	(100)	-	-	967,342
Total liabilities from financing activities	$ 3,496,856	434,291	21,120	(100)	5,827	(135)	3,957,859
	Non-Cash changes
	Jan. 1, 2024	Cash flows	Amortization of discount and premium	Conversion into ordinary shares	Lease modification	Foreign exchange movement	December 31, 2024
Short-term notes payables	$ 199,601	249,725	-	-	-	-	449,326
Short-term borrowings	1,350,950	740,580	-	-	-	4,368	2,095,898
long-term borrowings	202,300	(202,300)	-	-	-	-	-
Lease liabilities	7,267	(8,168)	-	-	5,995	216	5,310
Lease liabilities	-	1,000,000	(53,678)	-	-	-	946,322
Total liabilities from financing activities	$ 1,760,118	1,779,837	(53,678)	-	5,995	4,584	3,496,856

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(w) Net cash outflow for the acquisition of property, plant, and equipment

	December 31, 2025	December 31, 2024
Additions	$ 115,066	1,967,844
Add: Payable on machinery and equipment balance at January 1, 2025	912,248	-
Less: Payable on machinery and equipment balance at December 31, 2025	(97)	(912,248)
	$ 1,027,217	1,055,596

(x) Share-based payment transaction

(i) The Company’s Board of Directors resolved to implement issuance of stock for cash on July, 3, 2025, of which 2,000 thousand shares were reserved for employees.

	Cash injection reserved for employees subscription
Grant date	Balance at September, 22, 2025
Number of options granted	1,226 thousand shares
Recipients	Employee
Vesting conditions	Immediately vested

The Company adopted the BlackScholes model to evaluate the fair value of the share-based payments at the grant date. The assumptions adopted in this valuation model were as follows:

The fair value per unit of the share option was 4.00 and the remuneration cost of $4,904 thousand was recognized in the year ended December 31, 2025 and classified as operating expenses. Please refer to note 6(n) for the capital reserve recognition.

(ii) Employee expenses attributable to share based payment are as follows:

	For the years ended December 31,
	2025
Expenses resulting from granted employee share options	$ 4,904

(7) Related-party transactions

(a) Names and relationship with related parties

The followings are related parties that have had transactions with the Company during the periods covered in the consolidated financial statements:

Name of related party	Relationship with the Group
G.M.I. Technology (BVI) Co., Ltd. (hereinafter referred to as G.M.I. (BVI))	Subsidiary of the Company

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

Name of related party	Relationship with the Group
GMI USA Corporation (hereinafter referred to as GMI USA)	Subsidiary of the Company
Harken Investments Limited (hereinafter referred to as Harken)	Subsidiary of the Company
Vector Electronic Co. Ltd (hereinafter referred to as Vector)	Subsidiary of the Company
G.M.I (Shanghai) Trading Company Limited. (hereinafter referred to as G.M.I(Shanghai))	Subsidiary of the Company
Hong Da Fu Tong Electronics Company Limited. (hereinafter referred to as Shenzhen Fu Tong)	Subsidiary of the Company
GW Electronics Company Limited. (hereinafter referred to as GW Electronics)	Investee company accounted for the using equity method
Rehear Audiology Company Ltd. (hereinafter referred to as Rehear Audiology)	Investee company accounted for the using equity method
Unitech Electronics Co., Ltd. (hereinafter referred to as Unitech Electronics)	Investee company accounted for the using equity method
Realtek Semiconductor Corp. (hereinafter referred to as Realtek)	The Chairman of the company is the beneficial party of the entity
Realtek Singapore private Limited (hereinafter referred to as Realtek Singapore)	Subsidiary of Realtek Semiconductor Co.
RayMx Microelectronics Corp (hereinafter referred to as RayMx)	Subsidiary of Realtek Semiconductor Co.
Actions Technology (HK) Company Ltd. (hereinafter referred to as Actions (HK)).	The Chairman of the company is the beneficial party of the entity
GMI Computing International Ltd. (hereinafter referred to as GMI Computing)	The Chairman of the company is the first-degree farmily of the Chaiman of the company
GMI Cloud US INC(hereinafter referred to as GMI Cloud US)	The Chairman of the company is the first-degree farmily of the Chaiman of the company
HI-JET INCORPORATION (hereinafter referred to as HI-JET)	The Chairman of the company is the same as of the Chairman of the company
UNITECH COMPUTER CO.,LTD.(hereinafter referred to as "UNITECH COMPUTER")	The Chairman of the company is the same as of the Chairman of the company
Chia-Wen Yeh	The Chairman of the company
Wan-Yu Cho	The senior manager of the company
Po-Jen Liao	The senior manager of the company

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(b) Significant transactions with related parties

(i) Sale revenue

The amounts of significant sales transactions between the Company and related parties were as follows:

	For the years ended December 31,
	2025	2024
Other related parties - Realtek	$ 71,234	43,803
Other related parties - Realtek Singapore	35,899	32,119
Subsidiaries - G.M.I(Shanghai)	747,684	457,656
Subsidiaries - Vector	1,038,604	396,852
Other related parties - Unitech Electronics	150	188
Subsidiaries - Rehear Audiology	785	139
	$ 1,894,356	930,757

The selling prices for the second-tier subsidiary are based on the contracted cost plus a markup. The credit terms offered to the second-tier subsidiary are not significantly different from those offered to unrelated parties. The products sold to other related parties are not sold to other customers. Therefore, the selling prices are not comparable to those of other customers, and the selling price and credit terms are not significantly different from those of unrelated parties.

(ii) Purchases

The amounts of significant purchases by the Company from related parties were as follows:

	For the years ended December 31,
	2025	2024
Other related parties - Realtek	$ 11,831,953	9,637,038
Other related parties - Realtek Singapore	4,874,522	4,823,391
Other related parties - RayMx	188,500	104,429
Other related parties - Actions (HK)	265,826	299,451
	$ 17,160,801	14,864,309

The products which the Company purchases from the above-mentioned related parties are not purchased from other vendors, resulting in no purchase price to compare with that of other vendors. The payment terms are not significantly different from those of non-related parties.

(iii) The expenses incurred by the Company consulting subsidiary for its overseas operations in the years ended December 31, 2025 and 2024 were $142,535 thousand and $90,123 thousand, respectively.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

(iv) Receivables from related parties

The receivables from related parties were as follows:

Account	Relationship	December 31, 2025	December 31, 2024
Accounts receivable due from related parties	Realtek	$ 6,254	2,539
Accounts receivable due from related parties	Realtek Singapore	11,655	8,407
Accounts receivable due from related parties	Unitech Electronics	-	47
Accounts receivable due from related parties	G.M.I(Shanghai)	189,051	135,406
Accounts receivable due from related parties	Vector	366,972	183,442
		$ 573,932	329,841

(v) Payable to related parties

The payables to related parties were as follows:

Account	Relationship	December 31, 2025	December 31, 2024
Payables to related parties	Realtek	$ 1,606,612	1,343,386
Payables to related parties	Realtek Singapore	553,896	1,057,514
Payables to related parties	RayMx	49,291	36,050
Payables to related parties	Actions (HK)	28,887	31,289
		$ 2,238,686	2,468,239

(vi) Sale of Patent

In 2023, the Company sold patents to its subsidiaries for $7,810 thousand, and the unrealized gain on disposal was recognized in profit or loss based on the useful life of the patents. As of December 31, 2025 and 2024, the unrealized gain on disposal was $4,927 thousand and $6,043 thousand and is in balance of "investments account for using equity method".

(vii) Property transaction

1) In April 2024, the Group sold its 200 thousand shares in Rehear Audiology to its management for $1,000 thousand, which has already been received. As the Company considers its development and improvement of its shareholder structure, it has reached an agreement with the aforementioned management on December 31, 2024 for the Group to repurchase the entire shares above at the original price on March 21, 2025, wherein the payment has been made as of the reporting date.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

2) On March 11, 2025, the Group sold equipment to a related party for a total consideration of $14,253 thousand, as approved by the Board of Directors on March 11, 2025, resulting in a loss of $527 thousand. In addition, the Group also purchased equipment from GMI Computing for a total of $7,857 thousand. As of December 31, 2025, the outstanding net receivable related to both transactions has been fully collected. For further details on property, plant, and equipment, please refer to Note 6(f).

3) During 2025, the Company sold computer peripherals to another related party, GMI Computing, for $1,438 thousand. As of December 31, 2025, the related amount had not yet been collected and was recognized under “Other receivables - related parties”.

(viii) Financial leases

1) The Company entered into two 5-year lease agreements, at the total contract amounts of $2,202,835 thousand (USD66,340 thousand) and $747,936 thousand (USD23,402 thousand), for its 127 and 52 units of GPU servers to be leased out to its related party, GMI Computing, starting from March 1, 2025 and July 1, 2024, with the monthly rentals of USD1,106 thousand (excluding tax) and USD390 thousand (excluding tax) within seven days after invoicing, wherein the Company had obtained the principal notes of $76,855 thousand and $6,238 thousand, respectively, from GMI Computing.

The lease periods under the aforementioned agreements cover the major useful life of the underlying assets. Based on the contractual terms, substantially all risks and rewards incidental to ownership of the assets have been transferred. Therefore, the Company has classified these leases as finance leases. On March 1, 2025 (the lease commencement date) and July 1, 2024 (the lease commencement date), the Company derecognized the machinery and equipment costs of $1,537,977 thousand and $524,347 thousand, respectively, and recognized finance lease receivables from the related party.

2) On May 9, 2025, the board of directors approved revisions of the server transaction terms, resulting in a lease modification loss of $49,012 thousand (USD1,673 thousand), which was recorded under "Operating costs".

3) On December 26, 2025, the shareholders' meeting approved, in order to align with actual operating conditions, the resale of 127 H200 GPU servers to the Company's U.S. subsidiary, GMI USA, at a selling price of US$44,233 thousand (approximately NT$1,390,243 thousand), to be collected in 36 installments. The Company recognized the receivable at present value under "Installment accounts receivable". Please refer to Note 6(b) for further details. In addition, the Company reached an agreement with the original lessee, GMI Computing, to change the lessee to GMI Cloud US INC., an affiliated entity of GMI Computing. As the only change was the lessee and all other transaction terms, including the lease term and monthly rental, remained unchanged, the Company entered into a supplemental agreement with the related parties on December 26, 2025 to assign all rights and obligations of both parties under the "Equipment Lease Agreement" dated January 10, 2025 to GMI USA and GMI Cloud US INC.

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

4) Due to market factors, GMI Computing negotiated with the Company to terminate the lease agreements for part of the H100 GPU servers and undertook to bear the losses incurred by the Company from the disposal of the related assets. On October 20, 2025, the Company’s Board of Directors approved the termination of the lease agreements for 31 units of equipment, and on October 27, 2025, the Company sold those servers to Konsttech LTD. for a total selling price of US$5,019 thousand (approximately NT$154,185 thousand), which had been fully collected in October 2025. In addition, pursuant to the agreement between the Company and GMI Computing, the disposal loss to be borne by GMI Computing amounted to US$3,000 thousand (approximately NT$93,000 thousand), and the related compensation had been fully received in December 2025.

5) For 2025 and 2024, the Company recognized lease interest income and the present value of the related lease receivables arising from the aforementioned transactions. Please refer to Note 6(c) and Note 6(p) for the related disclosures. Cash collections from finance lease receivables amounted to $372,653 thousand (US$11,955 thousand) and $75,482 thousand (US$2,340 thousand), respectively.

(ix) Other

1) During 2025, the Company paid server room rental and related expenses amounting to $50,386 thousand (excluding VAT) on behalf of another related party, GMI Computing. As of December 31, 2025, the related outstanding amount had not yet been collected and was recorded under “Other receivables – related parties.”

2) During 2025 and 2024, the Company paid investment advisory fees of $1,524 thousand and $2,286 thousand, respectively, to other related parties. In addition, during the year ended December 31 of 2025, the Company paid cloud server maintenance fees of $1,187 thousand to other related parties, wherein the payment has been made as of December 31, 2025.

3) Details of the accounts receivable and finance lease receivables arising from the aforementioned transactions are as follows:

Account	Relationship	December 31, 2025	December 31, 2024
Accounts receivable - related parties	GMI Computing	$ 101,675	-
Other receivable-related parties	GMI Computing	51,824	-
Installment accounts receivable-related parties	GMI USA	1,233,322	-
Net finance lease receivables - related parties	GMI Computing	161,085	505,046
		$ 1,547,906	505,046

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

Key management personnel compensation comprised:

	For the years ended December 31,
	2025	2024
Short-term employee benefits	$ 33,390	31,984
Post-employment benefits	164	271
	$ 33,554	32,255

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Object	December 31, 2025	December 31, 2024
Time deposit (classified under other financial assets)	Bank loan limit	$ 243,223	231,596
Property, plant and equipment	Short-term bank loans	293,959	294,867
Stock (classified under Investments accounted for using the equity method)	Short-term notes and bills payable	-	231,361
Finance lease receivables (note)	Short-term bank loans	-	505,046
		$ 537,182	1,262,870

Note: Since the machinery and equipment were recognized as assets held under finance leases, the amount of net lease investment had been accounted for as finance lease receivables.

(9) Commitments and contingencies:

(a) Guarantees provx`ided by the Group's bank to its suppliers for the delivery of goods:

	December 31, 2025	December 31, 2024
Purchase Guarantee	$ 392,870	306,710

(b) The amount of unused outstanding letters of credit were as follows:

	December 31, 2025	December 31, 2024
Outstanding standby letters of credit	$ 2,244,089	2,924,951

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

	December 31, 2025	December 31, 2024
Taxes on imported goods guaranteed by banks	$ 4,000	4,000

(d) As of December 31, 2025 and 2024, the Company had issued $1,222,645 thousand and $1,252,545 thousand, respectively, of guarantee notes for the purchase of goods from vendors.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(12) Other:

(a) A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

	For the years ended December 31
By function	2025			2024
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits
Salary	-	144,286	144,286	-	141,901	141,901
Labor and health insurance	-	9,037	9,037	-	8,354	8,354
Pension	-	5,623	5,623	-	3,928	3,928
Remuneration of directors	-	8,523	8,523	-	11,057	11,057
Others	-	10,474	10,474	-	6,767	6,767
Depreciation	-	13,775	13,775	-	12,878	12,878

The additional information about number of employees and employee benefit expenses for the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
Employees	115	118
Directors not in concurrent employment	7	7
Average employee benefits	$ 1,569	1,450
Average employee salary	$ 1,336	1,278
Average raise of employee salary	4.54 %

(Continued)

G.M.I. Technology Inc.

Notes to the Financial Statements

The Company's remuneration policy (including directors, supervisors, managers and employees) is as follows:

The performance assessment and remuneration of managers and directors by the Company taking into account of usual standard payments of peers to evaluate the reasonableness of relationship among personal performance, operation performance and future risks. The Company complying with Labor Standards Act and relevant regulations to set out various employee remuneration and benefits and to provide competitive benefits to motivate its employees.

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Company:

(i) Loans to other parties: None.
(ii) Guarantees and endorsements for other parties: None
(iii) Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures): None.
(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details				Transactions with terms different from others		Notes/Accounts receivable (payable)
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company	Realtek	The Chairman of the company is the beneficial party of the entity	Purchase	11,831,953	58.88%	Monthly settlement occurs 45 days after the invoice is issued	No purchases from other vendors	No material variance	(1,606,612)	(56.64)%
The Company	Realtek Singapore	Subsidiary of Realtek Semiconductor Co.	Purchase	4,874,522	24.26%	Monthly settlement occurs 45 days after the invoice is issued	No purchases from other vendors	No material variance	(553,896)	(19.53)%
The Company	RayMx	Subsidiary of Realtek Semiconductor Co.	Purchase	188,500	0.94%	Monthly settlement occurs 45 days after the invoice is issued	No purchases from other vendors	No material variance	(49,291)	(1.74)%
The Company	Actions(HK)	The Chairman of the company is the beneficial party of the entity	Purchase	265,826	1.32%	Monthly settlement occurs 30 days after the invoice is issued	No purchases from other vendors	No material variance	(28,887)	(1.02)%

(Continued)

G.M.I. TECHNOLOGY INC.

Notes to the Financial Statements

Name of company	Related party	Nature of relationship	Transaction details				Transactions with terms different from others		Notes/Accounts receivable (payable)
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company	G.M.I (Shanghai)	Subsidiaries	Sales	(747,684)	(3.54)%	Monthly settlement occurs 120 days after the invoice is issued	No material variance	No material variance	189,051	3.78%
The Company	Vector	Subsidiaries	Sales	(1,038,604)	(4.92)%	Monthly settlement occurs 120 days after the invoice is issued	No material variance	No material variance	366,972	7.34%

(v) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Company	G.M.I (Shanghai)	Subsidiaries	189,051	460.88 %	-		189,051	-
The Company	Vector	Subsidiaries	366,972	377.39 %	-		169,965	-
The Company	GMI Computing	The Chairman of the company is the beneficial party of the entity	161,085	74.51 %	-		10,396	-
The Company	GMI USA	Subsidiaries	1,233,322	- %	-		-	-

(b) Information on investees:

The following is the information on investees for the years ended December 31, 2025 (excluding information on investees in Mainland China):

(In Thousands of New Taiwan Dollars)

Name of investor	Name of investor	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Net income (losses) of investor	Share of profits/losses of investor
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of intership	Carrying value
GMI Technology Inc.	G.M.I. Technology (BVI) Ltd.	British Virgin Island	Investment holding	556,991	556,991	18,277	100.00 %	(88,954)	(17,408)	(17,408)
GMI Technology Inc.	Global Mobile Internet Co., Ltd	Taiwan	Sale of electronic products	15,484	15,484	1,548	34.21 %	15,993	1,913	654
GMI Technology Inc.	Unitech Electronics Co., Ltd.	Taiwan	Sale of electronic products	200,739	200,739	9,559	12.73 %	238,634	100,614	12,807
G.M.I. Technology (BVI) Ltd.	Vector Electronic Co. Ltd	Hong Kong	Trading of electronic components and investment holding	151,141	151,141	34,149	100.00 %	(89,034)	(17,408)	(17,408)
G.M.I. Technology (BVI) Ltd.	HARKEN INVESTMENTS LIMITED	British Virgin Islands	Investment holding	393,484	393,484	13,169	100.00 %	77	-	-
HARKEN INVESTMENTS LIMITED	GW Electronics Company Limited	Hong Kong	Trading of electronic components	393,236	393,236	102,000	51.00 %	-	-	-
G.M.I. Technology Inc.	Rehear Audiology Co., Ltd.	Taiwan	Research, development and sales of medical equipments	29,000	27,050	5,800	23.65 %	76,458	(65,851)	(16,426)

(Continued)

G.M.I. TECHNOLOGY INC.

Notes to the Financial Statements

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Net income (losses) of investee	Share of profits/losses of investee
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of wnership	Carrying value
G.M.I. Technology Inc.	G.M.I. USA Corporation	United States	Service Leasing	14,740	-	500	100.00 %	17,034	(449)	(449)
G.M.I. Technology Inc.	GMI Technology HK LTD.	Hong Kong	Trading of electronic components and investment holding	-	-	-	- %	-	-	-

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousands of New Taiwan Dollars)

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment (note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investee	Percentage of ownership	Investment income (losses)	Book value	Accumulated remittance of earnings in current period	Note
					Outflow	Inflow
G.M.I (Shanghai) Trading Company Limited.	Trading of electronic components and business marketing consulting	68,382	(b)	48,708	-	-	48,708 (note 2)	(23,901)	100.00%	(23,901)	(97,851)	-	-
Hong Da Fu Tong Electronics Company Limited	Trading of electronic components	65,445	(b)	44,660	-	-	44,660 (note 2)	4,155	100.00%	4,155	(6,163)	-	-

Note 1: Three types of investment method are as follows:
(a) Direct investment in Mainland China.
(b) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(c) Others

Note 2: The difference between the amount of paid-in capital and the accumulated investment amount remitted from Taiwan at the end of the period is the direct investment by Vector Electronic Co. Ltd with its own capital.

(ii) Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
93,368	629,123	2,344,968

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China for the year ended December 31, 2025, which were eliminated in the preparation of consolidated financial statements, are disclosed in "Information on significant transactions".

(14) Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2025.

(Continued)

G.M.I. Technology Inc.
Statement of Cash and Cash Equivalents
Balance on December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Item	Description	Amount
Cash	Cash on hand	$ 3,616
Bank deposits	Check deposits (HKD292,[email protected];)	1,180
	[email protected])	3
	Demand deposits	37,917
	Foreign currency demand deposits	2,308,312
	(USD73,433,[email protected] ;
	RMB8,[email protected])	40
	HKD27,169,[email protected])	109,712
	Subtotal	2,457,164
Total		$ 2,460,780

G.M.I. Technology Inc.
Statement of Notes Receivable
Balance on December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Notes receivable
WORLD	$ 57,735
Shenzhen C-DATA Technology Co., Ltd.	39,978
Shanghai Xinliulian Information Technology Co., Ltd.	16,841
Other (all less than 5%)	11,278
Subtotal	125,832
Less: Allowance for bad debt	(377)
Total	$ 125,455

G.M.I. Technology Inc.
Statement of Accounts Receivable
Balance on December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Accounts receivable
Cloud Network Technology Singapore Pte. Ltd	$ 392,139
Nanning Fulian Fugui Precision Industrial Co., Ltd.	378,261
Futaihua Industrial (Shenzhen) Co., Ltd.	320,639
LCFC (Hefei) Electronics Technology Co., Ltd.	319,551
AMTRAN TECHNOLOGY CO., LTD.	265,050
ZTE Kangxun Telecom CO.,LTD.	235,758
Other (all less than 5%)	2,052,163
Subtotal	3,963,561
Less: Allowance for bad debt	(33,606)
Total	$ 3,929,955

G.M.I. Technology Inc.
Statement of other receivable
Balance on December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Income tax refund receivable	$ 15,795
Other (all less than 5%)	2,634
Total	$ 18,429

G.M.I. Technology Inc.

Statement of Inventories

Balance on December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Costs	Market price	Notes
Merchandise inventory	$ 1,355,411	1,364,867	Market price is below Net realizable value
Less: Allowance for inventory valuation and obsolescence losses	(57,453)
	$ 1,297,958

G.M.I. Technology Inc.

Statement of changes in investments under equity method

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Beginning Balance		Increase		Disposal Amount (Note 1)	Equity method Share of profits/losses of investee	Exchange differences adjustment	Other (Note 2)	Ending balance			Pledge or guarantee Object
	shares	Amount	shares	Amount (Note 2)					shares	Percentage	Amount
Equity method
G.M.I. Technology (BVI) Ltd.	18,277	$ (69,755)	-	-	-	(17,408)	(1,791)	-	18,277	100.00 %	(88,954)	No
Global Mobile Internet Co., Ltd	1,548	15,951	-	-	-	654	(612)	-	1,548	34.21 %	15,993	"
Unitech Electronics Co., Ltd.	9,559	231,361	-	-	(5,735)	12,807	201	-	9,559	12.73 %	238,634	"
Rehear Audiology Co., Ltd.	5,410	26,925	390	64,843	-	(16,426)	-	1,116	5,800	23.65 %	76,458	"
GMI USA Corporation	-	-	500	14,740	-	(449)	971	1,772	500	100.00 %	17,034	"
		204,482		79,583	(5,735)	(20,822)	(1,231)	2,888			259,165
Credit balance of investment accounted for using equity method		69,755									88,954
		$ 274,237									$ 348,119

Note 1: The decrease in investments accounted for using equity method Unitech Electronic due to the distribution of earning of $5,735 thousand.

Note 2: Realized gains from intercompany transactions between the parent company and its subsidiary amounted to $1,116 thousand. Unrealized gains on disposal from intercompany transactions between the parent company and its subsidiary amounted to $1,772 thousand.

Note 3: In March 2025, the Company repurchased 390 thousand shares of Rehear for $1,950 thousand, and the related consideration has been fully paid. Rehear approved a cash capital increase through the issuance of 3,525 thousand new shares, at a par value of $5 per share and an issue price of $80 per share, based on the decision of the Board of Directors on April 25, 2025, wherein the Company did not participate in the subscription in proportion to its shareholding, resulting in a change in ownership interests and an increase of $62,893 thousand in investments accounted for using the equity method.

G.M.I. Technology Inc.
Statement of Short-term Borrowings
Balance on December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Type of loan	Bank	Balance at December 31, 2023	Loan period	Range of Interest rate	Collateral or pledge
Credit loans	E.SUN Syndicated Loans	$ 188,580	2025/10/15~2026/1/15	5.49%	None
〃	E.SUN Syndicated Loans	128,863	2025/11/17~2026/2/13	5.44%	〃
〃	First Commercial Bank	100,000	2025/10/21~2026/1/19	1.89%	〃
〃	Taipei Fubon Commercial Bank	150,000	2025/10/23~2026/1/21	1.90%	〃
〃	E.SUN Commercial Bank	150,000	2025/12/31-2026/1/30	1.85%	〃
〃	Taiwan Cooperative Bank	300,000	2025/11/19~2026/1/30	1.85%	〃
〃	HSBC Bank (Taiwan) Limited	300,000	2025/11/3~2026/2/2	1.90%	〃
〃	Land Bank of Taiwan	300,000	2025/12/5~2026/2/5	1.90%	〃
〃	First Commercial Bank	20,000	2025/11/28~2026/2/26	1.89%	〃
〃	Chang Hwa Commercial Bank, Ltd.	50,000	2025/12/5~2026/3/5	1.93%	〃
〃	The Export-Import Bank of the Republic of China	100,000	2025/7/23-2026/7/23	1.88%	〃
〃	Chang Hwa Commercial Bank, Ltd.	170,250	2025/8/11-2026/8/11	1.93%	〃
〃	The Export-Import Bank of the Republic of China	400,000	2025/9/19-2026/9/18	1.88%	〃
Secured loans	Chang Hwa Commercial Bank, Ltd.	280,000	2025/12/10~2026/6/10	1.88%	Note 8

Total
$ 2,637,693

G.M.I. Technology Inc.
Statement of Accounts Payable
Balance on December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Winbond Electronics Corp.	$ 194,054
AUO Display Plus Corp.	182,684
Winbond Electronics (H.K.) Limited	143,952
Zbit Semiconductor Limited	32,368
Other (all less than 5%)	44,554
Total	$ 597,612

G.M.I. Technology Inc.
Statement of other payables
Balance on December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Wages and salaries payable	$ 42,055
Remuneration payables to employees, directors, and supervisors	8,200
Other (all less than 5%)	24,699
Total	$ 74,954

G.M.I. Technology Inc.

Statement of Operating revenue

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Number (thousands)	Amount
Digital Communication Solutions and Components	419,652	$ 18,000,264
Storage Applications Solutions and Components	79,296	2,678,407
Analog Electronic Components	309,418	169,421
Server lease interest revenue		248,152
Total		$ 21,096,244

Note: The above amounts are net of sales returns and discounts of $539,969 thousand.

G.M.I. Technology Inc.
Statement of Operating Costs
For the year ended December 31, 2025
(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Beginning inventory	$ 1,250,262
Add: Purchase for the period, net	20,814,194
Less: Inventories at the end of the period	(1,355,411)
Transfer to operating expenses	(744)
Inventory obsolescence losses	(208)
Subtotal	20,708,093
Commissions revenue	(718,843)
Write down of inventory (Reversal of write down)	(29,179)
Import expense	26,866
Lease modification loss	49,012
Other	(46,982)
Total	$ 19,988,967

G.M.I. Technology Inc.

Statement of Operating Expenses

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Selling	Administrative	Research and development
Business consultation fees of subsidiary	$ 142,535	-	-
Salary and bonus expenses	44,886	82,932	16,792
Service expenses	31,993	77	-
Delivery expense	21,850	9,887	-
Insurance expenses	19,815	-	-
Other (all less than 5%)	82,474	67,495	12,526
Total	$ 343,553	160,391	29,318

Please refer to Note 6(f) for Statement of property, plant and equipment

Please refer to Note 6(f) for Statement of Changes in accumulated depreciation of property, plant and equipment

Please refer to Note 6(g) for Statement of right-for use assets.

Please refer to Note 6(g) for Statement of Changes in accumulated depreciation of right-for use assets.

AI assistant

G.M.I — Audit Report / Information 2025

52314_rns_2026-05-14_6f9fca98-3b9c-428f-a639-603d76177df2.pdf

Table of contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Other Matter

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

Auditors' Responsibilities for the Audit of the Financial Statements

Notes to Readers

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)

G.M.I. Technology Inc.

Statements of Cash Flows

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

(6) Explanation of significant accounts:

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

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Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

G.M.I. Technology Inc.

Notes to the Financial Statements

(iii) Conversion Method:

(k) Lease liabilities

G.M.I Audit Report / Information 2025