GS — Audit Report / Information 2024

Nov 29, 2024

G-SHANK ENTERPRISE CO., LTD.

Parent Company Only Financial Statements for the Years Ended December 31, 2024 and 2023 and Independent Auditors’ Report

Notice to Readers

The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

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INDEPENDENT AUDITOR’S REPORT

To: G-SHANK ENTERPRISE CO., LTD.

Opinion

The individual balance sheets of G-SHANK ENTERPRISE CO., LTD. as of December 31, 2024, and 2023, along with the individual statements of comprehensive income, statements of changes in equity, and statements of cash flows for the years ended December 31, 2024, and 2023, as well as the notes to the individual financial statements (including a summary of significant accounting policies), have been audited by our certified public accountant.

In our opinion, based on our audit and the audit reports of other independent auditors (please refer to the relevant paragraphs for details), the parent company only financial statements referred to above present fairly, in all material respects, the financial position of G-SHANK as of December 31, 2024, and 2023, and the results of its operations and its cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audit in accordance with the “Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountings” and generally accepted auditing standards. The responsibilities of the independent auditors under these standards will be further explained in the audit performed on the consolidated financial statements. The personnel of the CPA Firm subject to the independence requirement has acted independently from the business operations of G-SHANK in accordance with the Code of Ethics and have performed other responsibilities of the Code of Ethics. We believe that our audit and other CPA’s audit reports provide a reasonable basis for our opinion.

Key audit matters

The key audit matters refer to the most important matters in auditing the 2024 parent company only financial statements of G-SHANK in accordance with the professional judgment of the independent auditors. These matters have been handled during the process of reviewing the parent company only financial statements as a whole with audit opinions formed. The independent auditor does not express an independent opinion on these matters. The independent auditor determines that the key audit matters to be communicated in the audit report are as follows:

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1. Income recognition

Please refer to Note 4.(15) to the parent company only financial statements for the accounting policy on income recognition. Also, please refer to Note 6.(21) for the operating income in detail.

The operating income of G-SHANK is mainly generated from the production and sales of molds and stamping parts. The timing of income recognition is based on the transaction conditions agreed with each individual customer. An inappropriate timing for income recognition and unreasonable estimation of the refund liabilities for sales returns and sales discounts are key matters for income recognition, which will have an impact on the financial performance of G-SHANK. The independent auditor has the income recognition classified as a key audit matter in auditing the parent company only financial statements of G-SHANK.

The auditing procedures implemented by the independent auditors for the aforementioned key audit matters include: Understanding the sales process of G-SHANK, testing the internal control related to income recognition, reviewing the terms of the sales with the major customers, performing income cut-off tests, and checking the book-entry of sales returns and discounts, the measurement of the estimated refund liabilities for sales returns and sales discounts, and the implementation of analytical procedures.

2. Inventory evaluation

Please refer to Note 4.(9) of the parent company only financial statements for the accounting policy of inventory evaluation. please refer to Note 5.(2)(C) of the parent company only financial statements for the major sources of uncertainty of significant estimates and assumptions. Please refer to Note 6.(5) of the parent company only financial statements for inventory details.

G-SHANK is mainly engaged in the production and sale of molds and stamping parts with the production and sales policies formed that are indirectly affected by the needs of end-user. The cost of inventory could be un-recoverable due to the occurrence of inventory damaged, outdated, or price dropped entirely or partially; also, when the estimated cost to be invested to completion and the estimated sale expenses increased. The use and value of inventories rely on the management’s inventory policy and sale forecast. However, a forecast comes with uncertainties. Therefore, the independent director has the inventory evaluation classified as one of the key audit matters in auditing the parent company only financial statements of G-SHANK.

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A decisive factor in the value of inventories is the estimated net realizable value, which is based on the most reliable evidence of the expected realizable amount of inventories available at the time of estimation. Therefore, the relevant audit procedures of the independent auditor include reviewing and assessing whether the policy of G-SHANK in determining the net realizable value of inventories can reasonably reflect the forecast of future inventory sales, historical experience and other specific circumstances, inventory aging analysis and testing so to identify whether an allowance for inventory loss in valuation is appropriated reasonably according to historical experience for a specific obsolete inventory, the correlation between the assessment of past events and the yearend situation, and the impact of the price or cost fluctuation related to the said post events on the net realizable value of inventory.

Other matters

Regarding the parent company only financial report of G-SHANK and the relevant information of the investee company disclosed in Note 13. of the parent company only financial report, the financial statements as of December 31, 2024, and 2023 of G-SHANK, INC. are prepared in conformity with the generally accepted principles of the USA, the financial statements as of December 31, 2024, and 2023 of GREAT-SHANK CO., LTD. are prepared in conformity with the generally accepted principles of Thailand, and the financial statements as of December 31, 2024, and 2023 of G-SHANK ENTERPRISE (M) SDN. BHD. are prepared in conformity with the generally accepted principles of Malaysia, which were audited by other certified public accountants instead of the independent auditor. The financial statements of G-SHANK, INC., GREAT-SHANK CO., LTD., and G-SHANK ENTERPRISE (M) SDN. BHD. are translated in conformity with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and International Financial Reporting Standards (IFRS) that was recognized by the Financial Supervisory Commission, International Accounting Standards, Interpretations, and Notices (IFRS), Interpretation (IFRIC) and Interpretative Announcement (SIC). The independent auditor has completed all necessary auditing procedures. Therefore, the opinions of the independent auditor on the unadjusted amounts in the aforementioned financial statements of the subsidiaries are based on the audit reports of other certified public accountants and the results of additional audit procedures performed by them in compliance with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and generally auditing principles of the ROC. The balances of investments accounted for under the equity method in the aforementioned subsidiaries were NT$1,029,275 thousand and NT$916,473 thousand on December 31, 2024, and 2023, accounting for 9.41% and 10.86% of the total parent company only assets, respectively. The shares of profits recognized from subsidiaries and affiliated companies from January 1 to December 31, 2024, and 2023 were NT$113,894 thousand and NT$115,485 thousand, accounting for 8.53% and 13.49% of the parent company only profit before tax, respectively. Recognized the other comprehensive profit and loss of the subsidiaries and affiliated companies for an amount of NT$71,238 thousand and NT$(5,444) thousand, accounting for 5.05% and (0.82)% of the total comprehensive profit and loss, respectively.

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

The responsibility of the management is to have the parent alone financial report prepared fairly in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and maintain the necessary internal control related to the preparation of the parent alone financial report so to assure that the financial report is free of material misstatement.

In the preparation of the parent company only financial statements, the management’s responsibility also includes assessing the continuing operation of G-SHANK, the disclosure of the relevant matters, and the adoption of the continuing operation accounting base, unless the management intends to liquidate G-SHANK or cease the business operation, or there is lack of any option except for liquidation or suspension.

The governance unit (including the Audit Committee or supervisors) of G-SHANK is responsible for supervising the financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

The purpose of the independent auditor’s auditing of the parent company only financial statements is to obtain reasonable assurance about whether the parent company only financial statements are free of material misstatement arising from frauds or errors and with an audit report issued. Reasonable assurance means high assurance. However, the audit conducted in accordance with generally accepted auditing standards does not guarantee to have any material misstatement in the parent company only financial statements detected. Material misstatement could be arising from frauds or errors. If the misstated amount or aggregated amount is reasonably expected to affect the economic decisions made by the readers of the consolidated financial statements, it is considered significant.

The independent auditors when conducting the audit in accordance with generally accepted auditing standards shall exercise professional judgment and maintain professional suspicion. The independent auditors also perform the following auditing tasks:

1. Identify and evaluate the risk of material misstatement arising from frauds or errors of the parent company only financial statements; design and implement proper responsive measures for the assessed risks; also, obtain sufficient and adequate audit evidence for forming an audit opinion. Frauds may involve conspiracy, forgery, deliberate omission, false declaration, or violation of internal control; therefore, the risk of material misstatement arising from fraud is higher than that caused by errors.

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3. Obtain the necessary understanding of the internal control related to the audit in order to design appropriate audit procedures under the circumstance, but the purpose is not to express an opinion on the effectiveness of the internal control of G-SHANK.

4. Assess the appropriateness of the accounting policies adopted by the management; also, the reasonableness of the accounting estimates and related disclosures made.

5. Based on the audit evidence obtained , make conclusions on the suitability of the continuing operation accounting base adopted by the management and whether or not the events or circumstances causing significant doubts to the continuing operation ability of G-SHANK are with significant uncertainties. If the independent auditors believe that such events or circumstances are with significant uncertainties, it is necessary to remind the readers of the parent company only financial statements in the audit report to pay attention to the relevant disclosure or to revise the audit opinion when such disclosures are inappropriate. The conclusion of the independent auditors is based on the audit evidence obtained as of the audit report date. However, future events or circumstances may result in the inability of G-SHANK to continue operating.

6. Assess the overall presentation, structure, and content of the parent company only financial statements (including the relevant notes) and whether or not the relevant transactions and events in the consolidated financial statements are presented fairly.

7. Obtain sufficient and appropriate audit evidence on the financial information of the individual business entity within the G-SHANK in order to express an opinion on the parent company only financial statements. The independent auditors are responsible for guiding, supervising, and implementing the auditing process of the G-SHANK; also, are responsible for forming an opinion on the audit of the G-SHANK.

The matters communicated by the independent auditors to the governing unit include the scope and timing of the planned audit, and the significant findings (including the major nonconformities of internal controls identified in the auditing process).

The independent auditors have provided to the governing unit the declaration of independence of the CPA Firm personnel subject to the Code of Ethics; also, have communicated with the governing unit regarding the relationship and other matters (including the relevant protection measures) that may affect the independence of the independent auditors.

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The independent auditors have based on the communications with the governing unit to determine the key audit matters to be performed on the 2024 parent company only financial statements of G-SHANK. The independent auditors shall state the key audit matters in the audit report except for the specific matters prohibited from being disclosed, or, in rare cases; the independent auditors decide not to have specific matters communicated in the audit report since the negative effect of such disclosure can be reasonably expected to be greater than the increase of public interest.

Lu, Jui-Wen Li, Pin-chueh

Diwan & Company March 7, 2025

Notice to Readers

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

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

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY BALANCE SHEET

December 31, 2024 and 2023

			(Expressed in Thousands	(Expressed in Thousands	of New Taiwan Dollars)	of New Taiwan Dollars)
ASSETS		Notes	December 31, 2024		December 31, 2023
Code	Accounts		AMOUNT	%	AMOUNT	%
11xx 1100 1110 1150 1170 1180 1200 1210 130x 1470 1476 15xx 1510 1517 1550 1600 1780 1840 1915 1920 1990 1xxx	Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Notes receivable, net Accounts receivable, net Accounts receivable- related parties Other receivables Other receivables - related parties Inventory Prepayments and Other current assets Other financial assets-current Total current assets Noncurrent Asset Financial assets at fair value through other income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Investments accounted for using equity method Property, Plant and Equipment Intangible assets Deferred tax assets Prepayments for equipment Refundable deposits Other noncurrent assets, others Total noncurrent Asset Total Assets	4 & 6.(1) 4 & 6.(2) 4, 5, 6.(3) & 6.(4) 4, 5 & 6.(4) 4, 5 & 7 4, 5 & 6.(4) 4, 5 & 7 4, 5 & 6.(5) 4 & 6.(6) 4, 5, 6.(2) & 6.(12) 4, 5, 6.(7) & 6.(19) 4 & 6.(8) 4,5,6.(9) & 7 4 & 6.(10) 4 & 6.(26) 4 & 9.	900,436 $ 2,193,988 6,775 523,716 3,938 40,529 2,760 208,161 14,393 5,057 3,899,753 1,951 444,031 4,385,596 2,183,999 413 8,228 1,448 491 9,906 7,036,063 10,935,816 $	8 20 - 5 - 1 - 2 - - 36 - 4 40 20 - - - - - 64 100	619,238 $ 1,320,131 4,095 430,952 2,026 30,111 950 188,278 9,613 7,637 2,613,031 - 320,903 4,699,117 477,830 492 13,194 311,081 499 4,978 5,828,094 8,441,125 $	7 16 - 5 - 1 - 2 - - 31 - 4 56 5 - - 4 - - 69 100
(CONTINUING)

(Please refer to the accompanying notes to the individual financial statements.)

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY BALANCE SHEET

December 31, 2024 and 2023

			(Expressed in Thousands of New Taiwan Dollars)	(Expressed in Thousands of New Taiwan Dollars)	(Expressed in Thousands of New Taiwan Dollars)	(Expressed in Thousands of New Taiwan Dollars)
Liabilities and Equity		Notes	December 31, 2024		December 31, 2023
Code	Accounts		AMOUNT	%	AMOUNT	%
21xx 2100 2130 2170 2180 2200 2220 2230 2300 25xx 2530 2570 2640 2645 2xxx 31xx 3100 3110 3140 3200 3300 3310 3320 3350 3400 3410 3420 3xxx	Current liabilities Short-term loans Contract liabilities - current Accounts payable Accounts payable-related parties Other payables Other payables-related parties Current tax liabilities Other current liabilities Total current liabilities Non-current liabilities Bonds Payable Deferred tax liabilities Net defined benefit liabilities- noncurrent Guarantee deposits Total non-current liabilities Total liabilities Equity attributable to owners of parent Share capital Ordinary shares Advance Receipts for Capital Stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity Exchange differences on translation of foreign financial statements Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income Total Equity Total liabilities and equity	4, 6.(11) & 6.(28) 4 & 6.(21) 4 4 & 7 4, 6.(9), 6.(13) & 6.(22) 4 & 7 4 & 6.(26) 4, 6.(12) & 6.(28) 4 & 6.(26) 4, 5 & 6.(13) 4, 6(14),6.(20) & 11 4, 6.(14), 6(15), 6(18), 6(20) 6.(16) & 6.(18) 6.(17) 4, 6.(18) & 11 4, 6.(8), 6.(19) & 6.(25) 4, 6.(7), 6.(8), 6.(19) & 6.(25)	500,000 $ 9,271 171,833 613 413,520 2,815 170,203 14,665 1,282,920 750,731 592,641 10,750 4,894 1,359,016 2,641,936 2,097,755 3,205 1,422,430 1,049,201 284,690 3,216,868 (205,552) 425,283 8,293,880 10,935,816 $	4 - 2 - 4 - 2 - 12 7 5 - - 12 24 19 - 13 10 3 29 (2) 4 76 100	1,210,000 $ 6,497 149,351 2,041 275,060 2,706 13,166 6,789 1,665,610 - 674,593 29,956 3,061 707,610 2,373,220 1,906,543 1,900 489,905 981,760 284,690 2,512,565 (409,638) 300,180 6,067,905 8,441,125 $	15 - 2 - 3 - - - 20 - 8 - - 8 28 23 - 6 12 3 30 (5) 3 72 100

(Please refer to the accompanying notes to the individual financial statements.)

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY STATEMENT OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, except for earnings per share amounts)

Code	Accounts	Notes	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
			2024	%	2023	%
4000 5000 5900 6000 6100 6200 6300 6450 6500 6900 7000 7100 7010 7020 7050 7070 7630 7900 7950 8200 8300 8310 8311 8316 8330 8360 8380 8399 8500 9750 9850	Sales revenue Operating costs Gross profit from operations Operating expense Selling and marketing expenses General and administrative expenses Research and development expenses Loss (reversal) of expected credit loss Total operating expense Other operating income and expenses, net Net operating income (loss) Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of the profit (loss) of associates and subsidiaries for using equity method Foreign exchange gains (loss) Total non-operating income and expenses Profit (loss) from continuing operations before tax Income Tax Expense Profit (loss) for the period Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss： Remeasurements of the defined benefit plan Unrealised gain (loss) on financial assets measured at fair through other comprehensive income Share of the other comprehensive (loss) income of associates for using equity method-will not be reclassified to profit or loss Other comprehensive income (loss) that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss： Share of the other comprehensive income of subsidiaries and associates for using equity method-will may be reclassified subsequently to profit or loss Income tax expense relating to items that may be reclassified subsequently to profit or loss Total items that may be reclassified subsequently to profit or loss Total other comprehensive income (loss) for the period Total comprehensive income for the period Earnings per share (dollar) Basic Diluted	4, 6.(21) & 7 4, 6.(5), 6.(13), 6.(22),6.(29) & 7 4, 6.(13), 6.(22), 6.(29) & 7 4, 5 & 6.(4) 4, 6.(9), 6.(22) & 6.(23) 6.(24) 6.(7), 6.(24) & 7 6.(2), 6.(24) & 7 4, 6.(12) & 6.(24) 4, 6.(8) & 6.(24) 4 & 6.(24) 4 & 6.(26) 4, 6.(7),6.(8), 6.(13), 6.(19) & 6.(25) 4 & 6.(27)	2,016,460 $ (1,616,228)	100 (80) 20 (5) (10) (2) - (18) - 2 8 4 8 (1) 43 3 64 66 (13) 53 1 6 - 7 10 - 10 17 70	1,942,821 $ (1,583,842)	100 (82) 18 (5) (8) (3) - (16) - 2 6 4 3 (1) 29 1 42 44 (9) 35 - 3 - 3 (4) - (4) 1 34
			400,232 (99,446) (219,839) (41,935) 448 (360,772) 383 39,843 167,793 72,865 168,820 (28,258) 862,112 52,760 1,296,092 1,335,935 (271,611) 1,064,324 16,207 123,128 1,954 141,289 204,086 - 204,086 345,375 1,409,699 $ 5.18 $ 4.86 $		358,979 (96,846) (166,323) (50,597) (192) (313,958) 383 45,404 116,788 79,588 62,976 (18,304) 558,304 11,525 810,877 856,281 (181,241) 675,040 (596) 58,880 3,561 61,845 (71,054) - (71,054) (9,209) 665,831 $ 3.54 $ 3.49 $

(Please refer to the accompanying notes to the individual financial statements.)

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

								(In Thousands of Ne	w Taiwan Dollars)
Accounts				Equity Attributable to Owners of the Corporation
	Share Capital		Capital Surplus		Retained Earnings		Other	Equity	Total
	Ordinary Shares	Advance Receipts for Capital Stock		Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translating Foreign Operations	Unrealized Gains and Losses on Financial Assets at Fair Value Through Other Cpmprehensive Income
BALANCE AT JANUARY 1, 2023 Appropriation of 2022 earnings (Note 6.(18)) Legal reserve Cash dividends to ordinary shareholders Changes in associates recognised under the equity method Unclaimed dividends by shareholders beyond the statutory period Net profit for 2023 Other comprehensive income for 2023 Total comprehensive income for 2023 Share-based payment transaction BALANCE AT DECEMBER 31, 2023 Appropriation of 2023 earnings (Note 6.(18)) Legal reserve Cash dividends to ordinary shareholders Changes in associates recognised under the equity method Cash dividend distributed from capital surplus Unclaimed dividends by shareholders beyond the statutory period Exercise the right of disgorgement Net profit for 2024 Other comprehensive income for 2024 Total comprehensive income for 2024 Cash capital increase Equity component of issuance of convertible bonds -share options share-based payment transaction Conversion of convertible bonds BALANCE AT DECEMBER 31, 2024	1,897,843 $ - - - - - - - 8,700 1,906,543 $ - - - - - - - - - 150,000 - 10,490 30,722 2,097,755 $	8,700 $ - - - - - - - (6,800) 1,900 $ - - - - - - - - - - - 730 575 3,205 $	472,021 $ - - 296 55 - - - 17,533 489,905 $ - - 524 (205,844) 49 312 - - - 716,447 189,655 53,681 177,701 1,422,430 $	892,927 $ 88,833 - - - - - - - 981,760 $ 67,441 - - - - - - - - - - - - 1,049,201 $	284,690 $ - - - - - - - - 284,690 $ - - - - - - - - - - - - - 284,690 $	2,365,496 $ (88,833) (438,505) - - 675,040 (633) 674,407 - 2,512,565 $ (67,441) (308,766) - - - - 1,064,324 16,186 1,080,510 - - - - 3,216,868 $	(338,584) $ - - - - - (71,054) (71,054) - (409,638) $ - - - - - - - 204,086 204,086 - - - - (205,552) $	237,702 $ - - - - - 62,478 62,478 - 300,180 $ - - - - - - - 125,103 125,103 - - - - 425,283 $	5,820,795 $ - (438,505) 296 55 675,040 (9,209)
									665,831 19,433 6,067,905 $ - (308,766) 524 (205,844) 49 312 1,064,324 345,375 1,409,699 866,447 189,655 64,901 208,998 8,293,880 $

(Please refer to the accompanying notes to the individual financial statements.)

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

		(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Description		2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax from continuing operations Adjustments for The profit or loss items which did not affect cash flows: Depreciation Amortization Expected credit (profit) loss Net loss on financial assets and liabilities at fair value through profit or loss Interest expenses Interest income Dividends income Share-based payment expenses Share of profit of subsidiaries and associates ventures accounted for using the equity method Profit on disposal of property, plant and equipment Unrealized foreign exchange losses Other item Changes in operating assets and liabilities： Financial assets at fair value through profit or loss Notes receivables Accounts receivable Accounts receivable-related parties Other receivables Other receivables -related parties Inventories Prepayments and Other current assets Current contract Accounts payable Accounts payable-related parties Other payables Other payables-related parties Other current liabilities Net defined benefit liabilities Cash inflows and outflows generated from operating activities: Interest received Dividends received Interest paid Income tax paid Net cash inflows and outflows from operating activities		1,335,935 $ 72,754 17,625 (448) (167,243) 28,258 (167,793) (11,875) 43,017 (862,112) (1,577) (10,161) 800 (708,861) (2,680) (90,282) (1,851) (5,553) (1,788) (23,112) (4,687) 2,774 26,136 (1,440) 26,822 110 7,876 (2,999) (502,355) 162,928 11,875 (13,938) (191,560) (533,050)		856,281 $ 65,911 4,492 192 (62,757) 18,304 (116,788) (9,500) 15,766 (558,304) (219) 6,929 (1,585) (494,789) (1,198) 126,163 2,016 (6,515) 1,447 67,304 (3,720) 2,536 - (59,862) (9,455) (20,632) (960) (4,196) (2,569) (190,780) 118,182 9,500 (17,989) (150,877) (231,964)

(Continuing)

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G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

		(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Description		2024		2023
CASH FLOWS FROM INVESTING ACTIVITIES Cash dividends issued by investee companies using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Acquisition of intangible assets Decrease in other current financial assets Increase in other noncurrent assets Increase in prepayments for business facilities Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (Decrease) in Short-term borrowings Issuance of Convertible Bonds Repayment of long-term borrowings Increase in Deposited Guarantee Payment of cash dividends Cash dividend distributed from capital surplus Cash capital increase Employee exercise of stock warrant Unclaimed dividends by shareholders beyond the statutory period Exercise of the right of disgorgement Net cash (used in) provided by financing activities Effect of changes in exchange rate on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period		1,382,197 $ (1,354,328) 2,494 8 (255) 2,945 (22,219) (1,448) 9,394 (710,000) 1,134,903 - 1,833 (308,766) (205,844) 866,447 21,884 49 312 800,818 4,036 281,198 619,238 900,436 $		262,247 $ (45,192) 242 136 (281) (135) (3,547) (311,081) (97,611) 140,000 - (79,032) - (438,505) - - 3,667 55 - (373,815) (2,262) (705,652) 1,324,890 619,238 $

(Please refer to the accompanying notes to the individual financial statements.)

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G-SHANK ENTERPRISE CO., LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 202 4 AND 2023

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. COMPANY HISTORY

G-SHANK ENTERPRISE CO., LTD. (hereinafter referred to as “the company”) was approved for incorporation on November 14, 1973. The company was registered and operated at No. 1, Jiuzhou Road, Jiudou Li, Hsinwu District, Taoyuan City for the production and sales of molds, stamping parts, fixtures and tools, automatic machines and electrical appliances, and mechanical components.

The company’s stock had been listed for trade on the “Taipei Exchange, TPEx” since February 1998, then have been listed for trade on the “Taiwan Stock Exchange Corporation, TWSE” since September 2001.

The company’s board of directors had resolved on October 22, 2007 for the merger of the company and the subsidiary “HON YEH INVESTMENT CO., LTD.” (Referred to as “HON YEH” hereinafter) with “HON YEH” discontinued and the company continues to operate. The name of the merged company is “G-SHANK ENTERPRISE CO., LTD.” still with the merger base date scheduled on December 1, 2007.

“HON YEH,” the discontinued company, was approved for incorporation on February 24, 1998 for the operation of a general investment business.

2. FINANCIAL REPORT APPROVAL DATE AND PROCEDURE

The parent company only financial reports of the company (hereinafter referred to as “the company”) for the years ended December 31, 2024 and 2023 were submitted to the company’s board of directors on March 7, 2024 and then published lawfully.

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

3. APPLICATION OF THE NEWLY ANNOUNCED AND AMENDED REGULATIONS AND INTERPRETATIONS

(1) The new/amended/revised regulations and interpretations that have been adopted and approved by the Financial Supervisory Commission (FSC) and published to take effect.

Since January 1, 2024, the company has been applying the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations, and interpretation announcements disclosed on the website of the Securities and Futures Bureau of the Financial Supervisory Commission (FSC) applicable for the year 2024. There has been no significant impact on the company's individual financial statements.

(2) The International Accounting Standards Board (IASB) has issued and the Financial Supervisory Commission (FSC) has approved the new/amended/revised standards and interpretations that will be applicable in the year 2025.

New/Revision/Amendme Effective in the annual nt Standards and period commencing from Explanations Content the following date of IASB IAS 21 (amendments) Lack of Exchangeability January 1, 2025

The management of the company believes that the amendments to the aforementioned standards will not have a significant impact on the company's individual financial statements.

(3) The new/amended/revised standards and interpretations announced without effect by IASB and not yet recognized by the FSC

New/Revision/Amendme Effective in the annual nt Standards and period commencing from Explanations Content the following date of IASB IFRS 10 and IAS 28 Sale or investment of assets To be determined by (amendments) between investors and their IASB affiliated enterprises or joint ventures IFRS 17 Insurance contracts January 1, 2023 IFRS 17 (amendments) Amendments to IFRS 17 January 1, 2023 IFRS 17 (amendments) First-time application of IFRS January 1, 2023 17 and IFRS 9 - comparative information

• 15 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

New/Revision/Amendme nt Standards and Explanations IFRS IFRS 7 and IFRS 9 (amendments) IFRS 7 and IFRS 9 (amendments) IFRS 18 IFRS 19	Content Annual improvements to IFRS – volume 11 Amendments to the classification and measurement of financial instruments Contracts referencing nature-dependent electricity Presentation and disclosure in financial statements Subsidiaries without public accountability: disclosures	Effective in the annual period commencing from thefollowing date of IASB
		January 1, 2026 January 1, 2026 January 1, 2026 January 1, 2027 January 1, 2027

The company's management believes that the amendments to the aforementioned standards will not have a significant impact on the company's individual financial statements.

4. SUMMARY OF MAJOR ACCOUNTING POLICIES

The significant accounting policies adopted for the preparation of the individual financial statements are summarized as follows, and unless otherwise indicated, these accounting policies are consistently applied to all reporting periods ：

(1) Financial report preparation and measurement basis

(A) Statement of Compliance

The individual financial statements of the Company are prepared in accordance with the Financial Reporting Standards for Issuers of Securities (hereinafter referred to as the "Reporting Standards").

(B) Measurement basis

• (a) According to Article 21 of the “Regulations Governing the Preparation of Financial Reports by Securities Firms,” the profit and loss and other comprehensive profit and loss of the company’s parent only financial statements shall be the same as the amortized amount of the profit and loss and other comprehensive profit and loss attributable to the shareholders of the parent company in the consolidated financial statements. Also, the shareholders’ equity in the parent alone financial statements shall be the same as the shareholders’

• 16 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

equity attributable to the parent company in the consolidated financial statements. Therefore, investments in subsidiaries are included in “investments under the equity method” in the parent-alone financial statements with necessary evaluation adjustments made.

• (b) Except for the financial instruments measured at fair value, this parent company only financial report is prepared on the basis of historical cost. For assets, the historical cost refers to the cash, cash equivalents, or the fair value of other considerations paid to obtain assets. For liabilities, the historical cost refers to the amount received when assuming obligations or the amount expected to be paid for liquating liabilities.

(C) Functional and reporting currency

The functional currency of each business entity of the Company is the currency used in the main economic environment where it operates. This parent company only financial report is prepared in New Taiwan Dollar that is the functional currency of the company. All financial information prepared in New Taiwan Dollar is in the unit of “NT$ Thousand,” unless otherwise specified.

(2) Criteria for the classification of current and noncurrent assets and liabilities

• (A) Current assets include cash and cash equivalents (except for those that cannot be exchanged or used for liquidating liabilities within 12 months after the reporting period), assets held primarily for trading purposes, and assets expected to be realized within 12 months after the reporting period or assets expected to be realized, sold, or consumed within the regular business cycle. Assets other than current assets are classified as noncurrent assets.

• (B) Current liabilities include liabilities held primarily for trading purposes, liabilities that are expected to be settled within 12 months after the reporting period or liabilities expected to be settled within the regular business cycle, and liabilities that cannot be unconditionally deferred for 12 months after the reporting period. Liabilities other than current liabilities are classified as noncurrent liabilities.

• 17 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(3) Foreign currency transactions and conversion of foreign operating entities

• (A) New Taiwan Dollar (NTD) is the Company’s functional currency that is also applied for the presentation of the parent company only financial statements. The Company’s originally recognized foreign currency transactions are booked by having the foreign currency converted into the functional currency at the spot exchange rate between the functional currency and the foreign currency on the trade date. Monetary items in foreign currency are translated at the closing exchange rate on the reporting date; non-monetary items in foreign currency that are measured at historical cost are not retranslated on the reporting date; non-monetary items in foreign currency that are measured at fair value are translated according to the exchange rate on the date the fair value is determined. The exchange difference of monetary items is recognized as profit and loss upon occurrence. When the profit or loss of non-monetary items is recognized as other comprehensive profit and loss, the exchange component of the profit or loss is also recognized as other comprehensive profit and loss. When the profit or loss of non-monetary items is recognized as profit and loss, the exchange component of the profit or loss is also recognized as profit and loss.

• (B) The assets and liabilities of foreign operating entities, including goodwill arising from acquisitions and fair value adjustments to the book value of the assets and liabilities acquired, are presented in their functional currency. When the functional currency is different from the presentation currency in a non-highly inflationary economy, the financial performance and financial position are converted into the presentation currency according to the following procedures:

• (a) The assets and liabilities on each balance sheet are translated at the closing exchange rate on the reporting date.

• (b) The income and expenses on each consolidated income statement are translated at the average exchange rate of the current period; however, if the exchange rate fluctuates significantly, the exchange rate on the trade date shall prevail.

• (c) All exchange differences arising from translation are recognized in “other comprehensive profit and loss.”

When the control over a subsidiary or the influence on the affiliated enterprise is lost due to the disposal of a foreign operating entity, the accumulated exchange differences related to the foreign operating entity that has been previously recognized

• 18 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

in “ other comprehensive profit and loss” and accumulated to the equity shall be reclassified from equity to profit and loss at the time of recognizing disposal profit and loss. If the control is not lost while disposing of subsidiaries partially that include a foreign operating entity, the accumulated exchange differences recognized in other comprehensive profit and loss will be re-classified to the non-controlling interests of the foreign operating entity proportionally. If the significant influence is not lost while disposing subsidiaries partially that includes an affiliated enterprise of the foreign operating entity, the accumulated exchange differences recognized in other comprehensive profit and loss will be re-classified to the profit and loss proportionally.

If there is not a payment plan in place for the monetary receivables or payables with the foreign operating entity, and it is unlikely to have them paid off in the near future, it will be treated as part of the net investment in the said foreign operating entity; also, the exchange difference resulted thereafter will be recognized in the “other comprehensive profit and loss.”

(4) Cash and cash equivalents

It refers to the cash on hand, demand deposits, and short-term and highly liquid time deposits or investments that can be converted into a fixed amount of cash at any time with little risk of value change, and it is held to meet short-term cash commitments other than for investment or other purposes.

(5) Financial instruments

• (A) When the parties to the financial instrument contract have financial assets or financial liability recognized in the balance sheet, and when a financial asset is purchased or sold in an arms-length transaction, an equity instrument should be processed according to the trade day accounting; however, a debt instrument, beneficiary certificate, and derivatives should be processed according to the settlement date accounting.

• (B) The financial asset or financial liability is measured at fair value when it is initially recognized; however, for those that are not measured at fair value through profit and loss, the transaction cost for the acquisition or issuance should be included.

• 19 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (C) The components of the financial instruments issued by the Company are classified as financial liabilities, financial assets, or equity instruments at the initial recognition in accordance with the substance of the contractual agreement and the definitions of financial liabilities, financial assets, and equity instruments.

• (D) Financial assets and financial liabilities are offset against each other and presented in a net amount on the balance sheet only when the GROUP has a legally enforceable right, intends to have it settled at a net amount, or to realize the asset and settle the liability simultaneously.

• (E) The Company’s financial instruments are as follows:

(a) Financial assets measured at fair value through profit and loss

• Financial assets measured at fair value through profit and loss include financial assets that are mandated to be measured at fair value through profit and loss and that are designated to be measured at fair value through profit and loss. Financial assets that are mandated to be measured at fair value through profit and loss include the Company’s investments in equity instruments not designated to be measured at fair value through other comprehensive profit and loss and investment in debt instruments that are not classified to be measured at amortized cost or measured at fair value through other comprehensive profit and loss. The profit or loss arising from the financial assets measured at fair value through profit and loss is recognized in profit and loss.

(b) Financial assets measured at amortized cost

Financial assets that meet both of the following conditions and are not designated to be measured at fair value through profit or loss are to be measured at amortized cost, including cash and cash equivalents, notes receivable, accounts receivable, financial assets measured at amortized cost, other financial assets, and other receivable on the balance sheet:

• (i) The financial asset is held solely for the purpose of collecting contractual cash flows.

• (ii) The contractual terms of the financial asset are to generate cash flows on specific dates for the sole purpose of paying back outstanding principal and interest.

• 20 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

For financial assets measured at amortized cost, after initial recognition, it is measured at the cost derived from the total book amount determined with an effective interest method net of the amortized impairment loss. The profit or loss derived from delisting, through amortization procedure, or recognizing impairment profit or loss should be recognized in the profit and loss.

• (c) Financial assets measured at fair value through other comprehensive profit and

loss

It refers to the investment in debt instruments that meet both of the following conditions and are not designated to be measured at fair value through profit or loss; or, the investment in equity instrument that is not held for trading purpose and is with the change in fair value booked in the “other comprehensive profit or loss,” which is an irrevocable decision made at the initial recognition:

• (i) The financial asset is held for the purposes of collecting contractual cash flows and for sale.

• (ii) The contractual terms of the financial asset are to generate cash flows on specific dates for the sole purpose of paying back outstanding principal and interest.

It is measured at fair value subsequently; also, the changes in its value, except for the impairment loss of investment in debt instrument, exchange profit and loss of monetary financial assets, interest calculated with the effective interest method, and dividends from the investment in equity instrument that is not conspicuously representing the investment cost recovery, should be recognized in other comprehensive profit and loss before delisting or reclassification. For the accumulated profit or loss previously recognized in other comprehensive profit and loss at the time of delisting, the investment in debt instrument is reclassified from equity to profit and loss; and the investment in equity instrument is reclassified to retained earnings. In addition, the dividends from the investment in equity instrument are recognized when the right to receive dividends is acquired.

(d) Financial liabilities measured at amortized cost

Financial liabilities that are not measured at fair value through profit or loss are financial liabilities measured at amortized cost, including short-term loans, accounts payable, other payables, long-term loans, and lease liabilities, which are measured at the amortized cost derived with the use of the effective interest

• 21 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

method; however, short-term payables without interest paid, if it is without the significant impact of discounting, are measured at the original transaction amount.

(e) Compound Financial Instruments

• (i) The compound financial instruments issued by the Company refer to convertible bonds that grant the holders the option to convert them into the Company's ordinary shares. The number of shares issued upon conversion does not vary with changes in their fair value.

• (ii) The initial recognition amount of the liability component of a compound financial instrument is measured at the fair value of a similar liability that does not include an equity conversion feature. The initial recognition amount of the equity component is measured as the difference between the overall fair value of the compound financial instrument and the fair value of the liability component. After initial recognition, the liability component that does not involve derivative financial instruments is subsequently measured at amortized cost using the effective interest method until conversion or redemption. The liability component that involves derivative financial instruments is subsequently measured at fair value through profit or loss. Changes in the fair value of the equity component are not recognized after issuance.

• (iii) The issuance costs of convertible bonds are allocated to the liability and equity components based on their respective carrying amounts at initial recognition.

• (iv) Interest, losses, or gains related to the liability component are recognized in profit or loss. No gain or loss is recognized upon conversion of the financial liability, as it is reclassified to equity.

(f) The non-hedging derivatives and embedded derivatives

The non-hedging derivatives are initially recognized at fair value at the time of signing a contract, and are subsequently measured at fair value on the balance sheet date. The profit or loss resulting from subsequent measurement is directly recognized as profit and loss; however, the timing for recognizing the profit or loss of the derivatives that are designated as effective hedging instruments depends on the nature of the hedging relationship. When the fair value of

• 22 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

derivatives is positive, it is classified as a financial asset. When the fair value is negative, it is classified as a financial liability. If the derivatives embedded in the master contract are classified as a financial asset subject to IFRS 9 “Financial Instruments” (hereinafter referred to as IFRS 9), the classification of financial assets is determined according to the terms of the overall hybrid contract. If the derivatives embedded in the master contract are not classified as a financial asset subject to IFRS 9 “Financial Instruments,” it is necessary to assess whether the embedded derivative instrument is closely related to the master contract. If not, the embedded derivatives should be separated from the master contract and processed as derivatives unless the overall hybrid contract is measured at fair value through profit and loss.

(6) Measurement at fair value

• (A) The fair value is the price that the assets could be sold or liabilities could be transferred in an orderly arm’s-length transaction that is fair for both the buyer and the seller on the measurement date. The structure of fair value measurement is with the characteristics of a particular asset or liability taken into consideration, including the condition and location of the asset, and the restrictions on the sale or use of the asset, and assuming that the sale of the asset or the transfer of the liability occurs in the primary market where it belongs, or, if there is no primary market available, occurs in the most favorable market for the asset or liability; the aforementioned primary market or the most favorable market must be accessible to the Company for trading; also, assumes that the market participants have the price determined based on their best economic interests.

For the non-financial asset measured at fair value, the consideration is whether a market participant has exhausted the good use of the asset or sold the asset to another market participant who will exhaust the good use of the asset in order to generate economic benefits.

• (B) The fair value measured with a valuation technique means it is measured with an appropriate valuation technique with sufficient information available under the circumstances, including maximized relevant observable inputs and minimized unobservable inputs.

• 23 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(7) Delisting of financial assets and liabilities

(A) Financial assets

Financial assets are delisted and the rights and obligations resulted or retained from such transfer will be recognized as assets or liabilities only when the contractual rights to the cash flows derived from the financial asset are terminated, or, the financial asset has been transferred along with almost all risks and rewards related to the ownership of the asset, or, almost all risks and rewards related to the ownership of the financial asset have not been transferred nor retained and without control over the financial asset. The difference between the book value of the delisted portion of financial assets measured at amortized cost and the consideration received is recognized in profit and loss on the delisting day. The difference between the book value of the investment in equity instrument measured at fair value through other comprehensive profit and loss and the sum of the consideration received and the cumulative profit or loss recognized in other comprehensive profit and loss is recognized in retained earnings; however, the investment in debt instrument is recognized in profit and loss. For the financial assets not delisted entirely, the respective book value is amortized based on the relative fair value of the continuously recognized portion of the assets. If a financial asset does not qualify for the de-listing transfer, the entire transferred asset is recognized continuously, and the consideration received is recognized as a financial liability.

(B) Financial liabilities

Financial liabilities are delisted entirely or partially only when the contractual obligations are performed, canceled, or expired with the financial liabilities eliminated. If the debtor and creditor have the debt instrument containing significantly different terms exchanged or have the incumbent financial liabilities terms modified entirely or partially, the incumbent financial liability is delisted and a new financial liability is recognized simultaneously. The difference between the book value of a financial liability that is eliminated or transferred to another party entirely or partially and the consideration paid is recognized in profit and loss.

(8) Asset impairment

(A) Impairment of financial assets

• (a) The Company has allowances recognized for expected credit loss derived from the financial assets measured at amortized cost (including cash and cash equivalents, notes receivable, accounts receivable, other receivables and other financial assets, etc.).

• 24 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (b) The Company has the expected credit loss of financial assets measured by reflecting the amount determined with an unbiased and probability-weighted method after evaluating all possible results, the time value of money, and reasonable and verifiable information related to past events, current conditions, and forecasts of future economic conditions (available on the reporting day without excessive cost or investment). Except for notes receivable, accounts receivable, and other receivables handled with a simplified approach by having the allowance for loss measured at the expected credit loss amount during the duration on the reporting date, for cash and cash equivalents and financial assets measured at amortized cost, if the credit risk on the reporting date is low or the credit risk has not increased significantly since the original recognition, the allowance for loss is measured at the 12-month expected credit loss. If the aforementioned credit risk of financial assets has increased significantly on the reporting date since the original recognition, it is measured at the expected credit loss during the duration.

• (c) The book value of the aforementioned financial assets is adjusted down with the allowance for losses. The appropriation and reversal of the allowance for loss are recognized in profit and loss.

(B) Impairment of non-financial assets

For the assets subject to IAS 36 “Impairment of Assets,” except for goodwill, intangible assets with an undetermined useful life, and intangible assets not yet available for use are with an impairment test performed annually and when there are indications that they may be impaired, the Company assesses assets to determine whether there is any indication of impairment on each reporting date. If there is an indication of impairment, the recoverable amount of the asset is estimated. The recoverable amount refers to the fair value of the assets or the cash-generating unit net of the cost of sales and the values in use whichever is higher. If the recoverable amount of the asset is lower than the book value, the said book value must be reduced to be equal to the recoverable amount and the amount of reduction is the impairment loss that is to be recognized in profit and loss. If there is any indication of the recovery or decrease of the previously recognized impairment loss of assets, except for goodwill, on the reporting date subsequently, the recoverable amount of the asset should be re-estimated. If the estimated recoverable amount of the assets is increased as a result of a change in the estimation, the impairment loss should be

• 25 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

reversed. However, the increased book value of the asset arising from the reversal of the impairment loss shall not exceed the book value of the asset net of the amortization or depreciation, but before recognizing the impairment.

For a cash-generating unit with goodwill amortized, an impairment test is performed by comparing its book value containing the goodwill to its recoverable amount. If the book value of the said unit exceeds the recoverable amount, an impairment loss is recognized. The impairment loss recognized is to be deducted from the cash-generating unit’s book value with goodwill amortized, and the insufficient amount for deduction is allocated to the book value of the respective asset of the unit proportionally. The recognized impairment loss of goodwill shall not be reversed in the subsequent periods.

(9) Inventory

Inventory cost includes all purchase costs, processing costs, and other costs incurred for bringing the inventory to its current location and condition. It is calculated in accordance with the weighted average cost method to allocate inventory cost. The yearend inventory is measured at the lower cost or net realizable value. The comparison of cost and net realizable value is itemized, except for inventories of the same category. The net realizable value refers to the amount resulted from the estimated selling price in the course of business net of the estimated additional cost to completion and the estimated sales expenses after the completion.

(10) Investments under the equity method

• (A) The Company’s controlled entities are the Company’s subsidiaries. The Company’s investment in subsidiaries is evaluated with the equity method. According to Article 21 of the “Regulations Governing the Preparation of Financial Reports by Securities Firms,” the “investment under the equity method” comes with necessary evaluation adjustments so to have had the profit and loss and other comprehensive profit and loss of the Company’s parent alone financial statements same as the amortized amount of the profit and loss and other comprehensive profit and loss attributable to the shareholders of the parent company in the consolidated financial statements; also, the shareholders’ equity in the parent alone financial statements same as the shareholders’ equity attributable to the parent company in the consolidated financial statements.

• 26 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) An affiliated enterprise is an entity that is significantly influenced but not controlled by the Company, that is, the Company holds more than 20% but less than 50% of the voting rights of the invested company directly or indirectly, or holds less than 20% of the voting rights but can clearly prove that the Company has a significant influence on the affiliated enterprise. The investment in the affiliated enterprise is valued under the equity method starting from the date when it becomes an affiliated enterprise of the Company.

• (C) The investment under the equity method is recognized at cost initially and adjusted subsequently according to the changes in the ownership of the affiliated enterprise’s net assets proportionally. When the Company’s loss from the ownership of the subsidiaries net assets exceeds the equity owned in the subsidiaries, the loss should be recognized by shareholding proportion continually; When the Company’s loss from the ownership of the affiliated enterprise net assets exceeds the equity owned in the affiliated enterprise, no loss should be recognized further, and the Company will only recognize additional losses and liabilities within the scope of legal obligation, presumed obligation, or payment made on behalf of the affiliated enterprise. If the investment cost exceeds the Company’s share of the net fair value of the identifiable assets and liabilities of the subsidiaries and affiliated enterprise on the acquisition date, the difference is the goodwill related to the subsidiaries and affiliated enterprise that is included in the book value of the investment and shall not be amortized; otherwise, it is to be recognized in profit immediately after the reassessment.

• (D) If the changes in the Company’s ownership interests in subsidiaries do not result in the loss of control, it is to be processed as an equity transaction. The difference between the book value of the investment and the fair value of the consideration paid or received is directly recognized as equity.

• (E) When there is a change in equity that is non-profit and loss and other comprehensive profit and loss occurred to the subsidiaries and affiliated enterprise; also, it does not affect the shareholding ratio of the subsidiaries and affiliated enterprise, the Company will have the change in the equity of the subsidiaries and affiliated enterprise recognized in the “additional paid-in capital” proportionally to the shareholdings.

• (F) When the affiliated enterprise issues new shares, if the Company does not subscribe it proportionally to the shareholdings, resulting in a change in the shareholding ratio and thus causing an increase or decrease in the net equity value of the investment, the

• 27 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

increase or decrease amount shall be adjusted to the “investment under the equity method” and “additional paid-in capital” when the significant influence is intact. If the aforementioned adjustment is debited to the “additional paid-in capital,” and there is an insufficient balance of additional paid-in capital from the investment under the equity method, the difference should be debited to the “retained earnings.” However, if it is not subscribed proportionally to the shareholdings and results in a decrease in the ownership interest, in addition to the aforementioned adjustment, the profit or loss related to the decrease in the ownership interest that has been previously recognized in other comprehensive profit and loss, which has also been reclassified to profit and loss when the relevant assets or liabilities are disposed, shall be reclassified to profit and loss proportionally to the decreased amount.

• (G) When the Company loses control or significant influence on subsidiaries and the affiliated enterprise, the Company recognizes the remaining investment in the former subsidiaries and affiliated enterprise at the fair value on the date of losing control or significant influence. The difference between the fair value of the remaining investment and any disposal price and the book value of the investment on the date of losing control or significant influence is recognized in profit and loss. For the amounts recognized in other comprehensive profit and loss related to the subsidiaries and affiliated enterprise, the accounting base is the same as if the related assets or liabilities are disposed directly by the Company.

• (H) The unrealized profit and loss of the transactions conducted between the Company and subsidiaries or affiliated enterprise is written off within the scope of its equity related to the Company.

(11) Property, plant and equipment

• (A) Property, plant and equipment are used for production or labor services, leased to others, or held for management purposes. It is recognized and subsequently measured at cost, which is an amount net of the accumulated depreciation and accumulated impairment losses. The cost of assets refers to the cash, cash equivalents, or the fair value of the consideration paid to acquire or construct the assets, including the cost related to dismantling, removing, and recovering the location. When the useful lives of the significant components of property, plant and equipment are different, it should be processed as an item separated from the property, plant and equipment.

• 28 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) Property, plant and equipment, except for land, is depreciated in accordance with the straight-line method, over the useful life indicated below. The residual value of assets, useful life, and the depreciation method should be examined at the end of each year. If the expected value is different from the estimation, or the expected consumption pattern of the future economic benefits of the asset has changed significantly, and it becomes necessary to have the depreciation method changed to reflect the changed pattern, such change should be treated as a change in accounting estimate. For the property, plant and equipment with asset impairment losses recognized, the depreciation expense of the asset in the future period shall be adjusted by deducting its residual value from the amended book value of the asset and amortized in accordance with the straight-line method over the remaining useful life:

House, building, and auxiliary equipment	3-50	years
Machinery equipment	2-10	years
Transportation equipment	4-6	years
Office equipment	5	years
Other equipment	3-15	years

• (C) Replacement and significant inspection costs are recognized in the book value of the property, plant and equipment. Routine maintenance expenses incurred are recognized in profit and loss. The cost of loans that are used to acquire, construct, or produce qualified assets is capitalized and incorporated into the cost of the assets.

• (D) The property, plant and equipment are delisted at the book value when it is disposed of or when it cannot generate future economic effect through use or disposition. The profit or loss resulted from the delisting is recognized in profit and loss; also, the profit may not be classified as income.

(12) Lease

(A) The Company is the lessor

When a lease is for the purpose of having the asset ownership and the related substantial risks and rewards transferred to the lessee, it is classified as a financial lease. A lease other than a financial lease is classified as an operating lease.

• 29 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (a) The net investment amount in a financial lease is measured at the sum of the present value of the amount payable by the lessee and the unguaranteed residual value plus the original direct cost, which is booked as financial lease receivables. The financial lease income is recognized at a fixed rate of return that reflects the Company’s unexpired net lease investment on each lease period.

• (b) The operating lease income is recognized in accordance with the straight-line method over the lease period. If the lease contract offers incentives to the lessee so to have the lease contract signed, the total cost of such incentives should be credited to the total lease income in accordance with the straight-line method over the lease period. The original direct costs incurred in negotiating and arranging an operating lease are added to the book value of the underlying asset and recognized as an expense in accordance with the straight-line method over the lease period.

The variable rent, if any, in the lease agreement that is not dependent on an index or rate is recognized as income upon occurrence.

• (B) The Company is the lessee

Except for the short-term leases and lease payments for low-value assets are recognized as expenses in accordance with the straight-line method over the lease period, other leases are recognized as right-of-use assets and lease liabilities on the lease commencement date.

• (a) The right-of-use asset is originally recognized at cost and subsequently measured at cost too. Also, it is booked at the cost net of the accumulated depreciation, accumulated impairment losses, and adjusted lease liability remeasurement. The right-of-use asset is depreciated in accordance with the straight-line method over the period from the lease commencement date to the expiry date of the useful life of the right-of-use asset or the lease expiry date, whichever is earlier.

• (b) The lease lability is originally recognized at the present value of the lease payables on the lease commencement date. If the implied interest rate of the lease is easy to determine, the lease payment is discounted at the implied interest rate, but if the implied interest rate is hard to determine, it is to be discounted at the lessee’s incremental loan rate. It is subsequently measured at amortized cost in accordance with the effective interest method. The lease liability remeasurement is adjusted to the right-of-use asset; however, if the book value of the right-of-use asset is zero, the remaining remeasurement is recognized in profit and loss.

• 30 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

The variable rent, if any, in the lease agreement that is not dependent on an index or rate is recognized as expense upon occurrence.

(13) Intangible assets

• (A) Computer software, etc., acquired independently that are intangible assets with limited service-life, is measured at cost in accordance with the straight-line method over the average useful life of 3 years. Examine the amortization period and amortization method of the intangible assets with limited service-life on each reporting date. If the estimated useful life is different from the estimation, the amortization period will be changed accordingly. If the expected consumption pattern of the future economic benefits of the asset has changed, the amortization method will be adjusted to reflect the said change, which will be processed as a change in accounting estimate. Once the tangible assets with limited useful life is with impairment loss recognized, the amortization expense of the asset in the future period is adjusted based on the amended book value of the assets in accordance with the straight-line method over the remaining useful life.

• (B) The intangible asset is delisted when it is disposed of or when it cannot generate future economic effect through use or disposition. The profit or loss resulted from the delisting is recognized in profit and loss; also, the profit may not be classified as income.

• (C) The expenses incurred in the research phase are expensed. The expenses incurred in the development stage are recognized as intangible assets when the specified conditions are met, but expenses that do not meet the requirements will be expensed upon incurred in the research phase.

(14) Equity instrument

Equity instrument refers to the contract that represents the Company’s remaining interest in assets net of all liabilities. The Company’s equity instruments are recognized at the price received, net of direct issuance costs.

• 31 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(15) Income recognition

Income is measured at the consideration that is expected to receive after having goods or labor service transferred. The Company recognizes income when the control of the goods or labor services is transferred to the customer to fulfill the Company’s performance obligations. The Company’s main income items are as follows:

Sale of goods

The Company mainly manufactures and sells molds and stamping parts with income recognized at the time of having the control of the products transferred to the customers and in return with the right to collect considerations. Therefore, the Company usually recognizes income when the goods have been delivered and the legal title has been passed on to the customers. If the sales discount or sales return in the future can be reliably estimated, and liability for refunds can be recognized based on past experience and other relevant factors, it is to be credited to the sales income when the sales are recognized.

The Company has accounts receivable recognized when the control of the goods is transferred and in return with the right to collect the considerations unconditionally. If the goods have been transferred to the customer without the right to collect the considerations unconditionally, it is recognized as a contract asset. If the right to collect the consideration from the customer is obtained or is to be obtained before the transfer of the goods to the customer, also, the Company has no obligation to have the goods transferred to the customer under the circumstance, it is recognized as a contract liability.

If the timing of contractual payment for the transfer of goods provides the customer or the Company with significant financial benefits, either explicitly or implicitly, the Company shall adjust the promised consideration amount to reflect the time value of money. If a sale contract is signed to have goods transferred to the customer and the period from the date the goods transferred to the date the payment made by the customer is for less than 1 year, the Company does not adjust the promised consideration amount.

• 32 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(16) Loan cost

It refers to the interest and other cost related to the loans. The loan cost that is directly attributable to the acquisition, construction, or production of qualified assets (referring to the assets that take a long time to reach the intended use or sale status) is capitalized as an integral part of the cost of the asset, while other loan cost is recognized as an expense upon occurrence. When a specific loan is invested temporarily before the expenditure incurred for the qualified assets, the investment income arising from such loan investment should be deducted from the actual loan cost incurred. The capitalization of loan cost is stopped when almost all the necessary activities to reach the intended state of use or sale have been completed for the qualified assets. If the active development of the qualified assets is suspended for a long period of time, the capitalization of loan cost will be suspended for the said period.

(17) Employee welfare

(A) Short-term employee welfare

It refers to the employee benefits (except for employment termination benefits) that are expected to be fully paid within 12 months after the annual reporting period for the services provided by employees, which is measured at the undiscounted amount expected to be paid in exchange for employee services, and it is recognized as an expense and liability. The expected cost of profit sharing and dividend payment is recognized as an expense and liability in accordance with the provision stated in the preceding paragraph due to a current legal or presumed payment obligation arising from past events with an amount that can be estimated reliably.

(B) Employee benefits - retirement benefits

• (a) All full-time employees of the company are entitled to the retirement plan. The entire employee pension fund is deposited in the pension fund account and managed by the Labor Retirement Reserve Committee. The aforementioned pension fund is deposited in the name of the Labor Retirement Reserve Committee that is completely separated from the company; therefore, it is not included in the aforementioned consolidated financial report. The retirement plan for employees of foreign subsidiaries is handled in accordance with local law and regulations.

• 33 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (b) For a defined contribution plan, the company’s monthly employee pension contribution rate shall not be less than 6% of the employee’s monthly salary, and the contributed amount is recognized as the current expense. Foreign subsidiaries are to appropriate a certain percentage of the salary as pension according to the local law; also, it is recognized as a current expense.

• (c) For a defined benefit plan, the actuarial pension amount should be appropriated on the annual reporting date according to the Projected Unit Credit Method. The re-measured amount is included in other comprehensive profits and losses when it occurs; also, it is immediately recognized in the retained earnings.

(18) Share-based payment

• (A) For share-based payment transactions with equity delivered to the employees, the fair value of the labor service received from the employees is based on the fair value of the equity instrument on the delivery day. If the delivered equity instrument is immediately vested without providing labor service in a specific period, the labor services received are recognized in full on the delivery date with the equity increased relatively. If it is not immediately vested until the labor services are completed in a specific period, it is presumed that the labor service provided by the counterparty as the consideration for the equity instrument will be received in the future vested period, and it is recognized as a remuneration expense in the vested period with the equity increased relatively. The recognition of remuneration expense is based on the best estimate of the equity instruments expected to be vested during the vested period. If the expected vested equity instruments are subsequently found to be different from the estimation, the said estimation will be amended, if necessary, so to match up with the final vested equity instrument on the vested day.

• (B) The fair value of equity instruments is measured according to the market price available on the measurement date and the terms and conditions related to the decision-making in vesting equity instruments. If the market price is not available, apply appropriated estimation techniques to estimate the price of the delivered equity instruments on the measurement date in an arms-length transaction between the two parties who are fully understanding and willing to trade in order to estimate the fair value of the equity instruments. Also, the aforementioned evaluation techniques are consistent with generally accepted evaluation techniques for financial instrument pricing, and all the elements and assumptions related to the pricing are considered by the traders who are fully understanding and willing to trade are included.

• 34 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (19) Income tax

• (A) Income tax expenses include current and deferred income taxes. Except for those related to business mergers, directly recognized in equity, or other comprehensive profit and loss, current income tax and deferred income tax expenses are recognized in profit and loss.

• (B) Current income tax expenses refer to the estimated income tax payable or tax refund receivable calculated on the taxable income or loss of the current year at the tax rate that has been legislated or substantively legislated on the reporting date, including any adjustment made to the income tax payable or refundable of the previous year.

• (C) Deferred income tax expenses are calculated and recognized on the temporary difference between the tax base of assets and liabilities and the book amounts reported.

• (D) Deferred income tax assets and liabilities are measured at the tax rate applicable when the temporary difference is expected to reverse that has been legislated or substantively legislated on the reporting date. Deferred income tax assets and liabilities can only be applied to offset current income tax assets and liabilities lawfully; also, it is limited to the same taxpayer and the same levying tax authority; or it can be offset by different taxpayers when the intention is to have the net current income tax liabilities and assets offset, or the income tax liabilities and assets will be realized at the same time.

• (E) The outstanding taxable losses, income tax credit, and deductible temporary differences are recognized as deferred income tax assets to the extent of the potential taxable income that occurred in the future. Also, the deferred income tax assets are evaluated on each reporting day and adjusted down to the extent of the relevant tax benefit unlikely to be realized.

• (F) For the domestic subsidiaries of the Company, for the additionally levied business income tax on the unappropriated earnings of the year, the income tax expense of the unappropriated earnings is recognized according to the actual earnings distribution that is resolved in the shareholders meeting of the following year.

• 35 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(20) Earnings per share

The Company presents the current basic and diluted earnings per share attributable to the common stock shareholders of the Company. Basic earnings per share is calculated by having the profit and loss attributable to the common stock shareholders of the Company divided by the current weighted average outstanding common stock shares. Diluted earnings per share is calculated by having all the dilutive potential common stock shares and the adjusted profit and loss attributable to the common stock shareholders of the Company divided by all the dilutive potential common stock shares and the adjusted current outstanding weighted average stock shares.

(21) Government grants

• (A) The Company will have government grants recognized with certainty that all requirements for eligibility will be met and the Company is probably to receive it.

• (B) The asset-related government grants are recognized in profit and loss systematically in the period when the cost of the funded asset is recognized as an expense by the Company. The government grants that are used to compensate the occurred expenses or losses will be recognized in profit and loss during the period when it is collectible.

• (C) Government grants are presented in the consolidated financial statements as follows: Unrealized government grants (that is, the benefits of deferred government grants) are classified as liabilities in the consolidated balance sheet; realized government grants are debited to the relevant expenses or other income in the consolidated income statement.

5. MAIN CAUSES OF UNCERTAINTY TO MATERIAL ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The management must make judgments, estimations, and assumptions when preparing the parent company only financial report, which will affect the reported amount of income, expenses, assets, and liabilities. The uncertainties of these material assumptions and estimations may cause significant adjustments to the book amount of assets and liabilities in the future, that is, actual results may differ from estimates.

• 36 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (1) The management’s judgments regarding the significant impact on the amounts recognized in the parent company only financial statements during the process of adopting accounting policies: Please refer to Note 6.(9)(G) to the parent company only financial statements for the classification of investment property.

• (2) The other main sources of information related to the uncertainties of assumptions and estimation that may have resulted in significant adjustments to the book value of assets and liabilities in the next financial year on the reporting date are described as follows:

- (A) Employee benefits measurement of the defined benefit obligation

As stated in Note 6.(13) to the parent company only financial statements, the defined benefit obligations and expenses are measured with actuarial assumptions made, including demographic and financial assumptions related to the employees eligible for benefits in the future. Any change in the actuarial assumptions may result in actuarial profit and loss and thus affect the net defined benefit liability.

The Company's net defined benefit liability for an amount of NT$10,750 thousand was booked on December 31, 2024. If the discount rate adopted for the Company's actuarial assumptions and the expected salary increase rate were increased / decreased by 0.5%, the book value of the net defined benefit liability would be decreased by NT$2,179 thousand or increased by NT$4,039 thousand, and increased by NT$3,999 thousand or decreased by NT$2,190 thousand, respectively.

The impact of changes in one single assumption is analyzed in the preceding paragraph with all other assumptions remained intact; however, the impact of changes in actual actuarial assumptions is interactive in reality. The approaches adopted for sensitivity analysis are consistent with the approaches adopted for the measurement of the net defined benefit liability, and the approaches and assumptions used are the same as that of in the prior period.

(B) Impairment of accounts receivable

As stated in Note 4.(8), 6.(3) and 6.(4) to the parent company only financial statements, allowance for loss of the accounts receivable is measured simply at the expected credit loss during the duration on the reporting date. Receivables are classified according to the nature of the common risks that indicate the customer’s ability to pay all payables in accordance with the contractual terms, taking into

• 37 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

account the consideration of the reasonable and verifiable information (obtainable on the reporting date without excessive costs or inputs) related to past events, current conditions, and forecasts of future economic conditions; also, the expected credit loss is estimated on the basis of the probability of default and the expected credit loss rate. If the classification of receivables and the estimation of the probability of default and the expected credit loss rate is changed by the management of the Company or is changed due to the economic conditions, the estimated allowance for losses of the receivables will be affected inevitably.

The Company’s net receivables amounted to NT$577,718 thousand (including net notes receivable, net accounts receivable (including related parties), and other receivables (including related parties) on December 31, 2024, net of the estimated allowance for loss of NT$174 thousand.

(C) Inventory evaluation

As stated in Note 4.(9) of the parent company only financial statements, the yearend inventory is measured at the lower of cost or net realizable value. The comparison of cost and net realizable value is itemized, except for inventories of the same category. The net realizable value refers to the amount resulted from the estimated selling price in the course of business net of the estimated additional cost needed for project completion and the estimated sales expenses after the project completion. The said estimation is based on the current market conditions and historical sales experience in similar products, which could be significantly affected by the changes in market conditions.

The book value of the Company’s inventories was NT$208,161 thousand on December 31, 2024, net of the allowance for inventory loss in valuation amounted to NT$23,689 thousand.

(D) Fair value of financial instruments

As stated in Note 4.(6) of the parent company only financial statements, financial assets-noncurrent measured at fair value through other comprehensive profit and loss are financial instruments without an active market; therefore, their fair value is determined with appropriate evaluation techniques adopted. The said valuation techniques include the recent arm’s-length transactions conducted in the market, reference to the current fair value of another financial instrument that is

• 38 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

substantially equivalent, and other valuation models. The measurement of the fair value could be affected by any change in assumptions and estimates. Please refer to Note 12.(2)(C)(D) to the parent company only financial statements for details.

The company recognized the value of the embedded derivative financial instrument—its call option—under the terms of the issued convertible corporate bonds. The carrying amount of financial assets measured at fair value through profit or loss – noncurrent was NT$1,951 thousand on December 31, 2024.

The book value of the Company’s unlisted (non-TPEx) stock shares that were measured at fair value through other comprehensive profit and loss was NT$444,031 thousand on December 31, 2024.

6. DESCRIPTION OF IMPORTANT ACCOUNTING ITEMS

(1) Cash and cash equivalents

Cash and petty cash Checking deposit and savings deposit Time deposits Total	December 31,2024 $2,555 336,012 561,869 $900,436	December 31,2023
		$2,909 112,369 503,960
		$619,238

• (A) The aforementioned time deposits can be converted into a fixed amount of cash at any time and with limited risk of value changes.

• (B) The aforementioned bank deposits had not been provided as collateral or mortgaged.

• 39 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

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

Financial assets mandatorily measured at fair value through profit or loss Acquisition cost: Funds Bonds SWAP contracts Subtotal Evaluation adjustment: Funds Bonds SWAP contracts Subtotal Total Noncurrent items: Financial assets mandatorily measured at fair value through profit or loss Embedded derivative financial instruments	December 31,2024 $145,016 1,935,414 - 2,080,430 93 113,465 - 113,558 $2,193,988 $1,951	December 31,2023
		$- $1,329,762 -
		1,329,762
		(9,979) 348
		(9,631)
		$1,320,131
		$-

• (A) The SWAP contracts signed between our company and a financial institution is primarily aimed at avoiding the financial risks caused by fluctuations in foreign currency debt and liabilities. However, it was not designated as a hedging instrument, and details of the derivative instruments related to financial assets and financial liabilities held for trading that were not accounted for as hedging instruments are as follows:

Financial instrument December 31, 2024：None.	Nominal principal (NT$ Thousand)	Currency	Due date

• 40 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Financial instrument December 31, 2023 SWAP contract SWAP contract SWAP contract Total	Nominal principal (NT$ Thousand) USD 3,700 USD 5,000 USD 1,000 USD 9,700	Currency USD:NTD USD:NTD USD:NTD	Due date
			01.05.2024 01.31.2024 02.16.2024

The net gains arising from foreign exchange transactions for the years 2024 and 2023 were NT$23,065 thousand and NT$41,938 thousand, respectively.

• (B) The Company's valuation losses of financial assets and liabilities at fair value through income were NT$167,243 thousand and NT$62,757 thousand for the years ended December 31, 2024 and 2023, respectively, which were booked in the “Non-operating income and expenses - other profit and loss” account.

• (C) The aforementioned financial assets measured at fair value through profit and loss had not been provided as collateral or mortgaged.

• (D) Please refer to Note 12.(2)(C)(a) and (b) of the consolidated financial report for the disclosure of the market risk and credit risk of the Company’s financial assets measured at fair value through profit and loss.

• (E) For disclosures regarding embedded derivative financial instruments, please refer to Notes 6(12) and Notes 12 of the individual financial statements.

(3) Notes receivable - net

Notes receivable-net
Notes receivable Less: Allowance for loss Net amount	December 31,2024 $6,775 - $6,775	December 31,2023
		$4,095 -
		$4,095

• 41 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(4) Accounts receivable - net

Accounts receivable-net
Accounts receivable Less: Allowance for loss Net amount	December 31,2024 $523,890 (174) $523,716	December 31,2023
		$431,574 (622)
		$430,952

• (A) The allowance for loss of the Company’s notes receivable, accounts receivable, and other receivable is simply measured by the expected credit losses amount throughout the duration. The notes receivable and accounts receivable are classified according to the common risk characteristics of the customers’ ability to pay all due amounts in accordance with the contract terms, taking into account the reasonable and provable information related to past events, current conditions, and future economic conditions (obtainable without excessive cost or investment on the reporting date), and estimating the expected credit loss according to the estimated default rate and expected credit loss rate.

• (B) The increase or decrease of allowance for loss of the Company’s notes receivable, accounts receivable, and other receivable is as follows:

Balance - beginning Allowance account for the impairment of notes receivable, accounts receivable, and other receivables Allowance reversal account for the impairment of notes receivable, accounts receivable, and other receivables Balance - ending	Fortheyearsended December 31,	Fortheyearsended December 31,
	2024 $622 - (448) $174	2023
		$430 192 -
		$622

• (C) Please refer to Note 12.(2)(C)(b) of the parent company only financial report for the disclosure of the credit risk of the Company’s notes receivable, accounts receivable, and other receivables.

• 42 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(5) Inventory

Inventory
Raw materials Substances Work-in-process goods Finished goods Merchandise trade Total		December 31,2024
	Cost	Allowance for loss of inventoryin valuation $3,362 57 15,506 4,668 96 $23,689	Book amount
	$54,897 9,441 95,252 71,965 295		$51,535 9,384 79,746 67,297 199
	$231,850		$208,161

Raw materials Substances Work-in-process goods Finished goods Merchandise trade Total		December 31,2023
	Cost	Allowance for loss of inventoryin valuation	Book amount
	$53,780 10,624 83,381 73,393 363	$4,715 62 22,856 5,625 5	$49,065 10,562 60,525 67,768 358
	$221,541	$33,263	$188,278

(A) Cost of goods sold related to inventory is as follows:

Inventory booked in “cost of goods sold” Inventory cost debited to “net cash value” Recovery of the net cash value of inventory Inventory loss Total operating cost	For theyears ended December 31,	For theyears ended December 31,
	2024	2023
	$1,631,414 - (9,574) (5,612)	$1,590,104 2,336 - (8,598)
	$1,616,228	$1,583,842

• 43 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The reversal of the provision for inventory write-down in 2024, attributable to either the increase in raw material prices or usage, or the completion and sale of products, resulted in the elimination of factors that caused the net realizable value of inventories to fall below cost. Consequently, the recognition of the net realizable value of inventories increased, leading to a reduction in the cost of goods sold by NT$9,574 thousand. The aforementioned inventory had not been provided as collateral or mortgaged.

• (C) The aforementioned inventory had not been provided as collateral or mortgaged.

• (6) Other financial assets-current

Other financial assets-current
Special account for transferring overseas funds back to Taiwan Time deposit	December 31,2024 $5,057	December 31,2023
		$7,637

The aforementioned other financial assets - current are not provided with any collateral or pledge.

(7) Financial assets-current measured at fair value through other comprehensive profit and loss

Equity instrument Unlisted stocks Equity instrument investment evaluation adjustment Total	December 31,2024 $27,006 417,025 $444,031	December 31,2023
		$27,006 293,897
		$320,903

• (A) Equity instrument investment measured at fair value through other comprehensive profit and loss was not an available-for-trade investment; therefore, the Company chose to have it designated as measured at fair value through other comprehensive profit and loss.

• 44 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The Company had recognized dividend income from the investment in equity instrument measured at fair value through other comprehensive profit and loss were NT$11,875 thousand, and NT$9,500 thousand for the years ended December 31, 2024 and 2023, respectively.

• (C) The Company did not have cumulative profit or loss transferred within equity for the years ended December 31, 2024 and 2023.

• (D) The aforementioned financial assets measured at fair value through other comprehensive profit and loss had not been provided as collateral or mortgaged.

• (E) Please refer to Note 12.(2)(C)(a) and (b) of the parent company only financial report for the disclosure of the market risk and credit risk of the Company’s financial asset measured at fair value through other comprehensive profit and loss.

(8) Investment under the equity method

• (A) The Company’s investments under the equity method are as follows:

Investee company	December 31,2024	Equity holding ratio(%)	December 31,2023	Equity holding ratio(%)
CHIN DE INVESTMENT CO., LTD. G-SHANK, INC. GRAND STAR ENTERPRISES L.L.C. (Note) G-SHANK ENTERPRISE (M) SDN. BHD SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. GREAT-SHANK CO., LTD. G-SHANK JAPAN CO., LTD. SUNFLEX TECHNOLOGY CO., LTD. (SUNFLEX) G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. Total	$61,028 411,004 1,699,544 481,631 1,379,072 136,640 20,877 177,595 18,205	100.00 100.00 100.00 92.33 85.00 85.00 58.89 14.42 5.86	$54,271 375,076 1,615,802 409,297 1,912,990 132,100 14,678 168,076 16,827	100.00 100.00 100.00 92.33 85.00 85.00 58.89 14.48 5.86
	$4,385,596		$4,699,117

• 45 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The Company’s shareholding in each individual insignificant affiliated company is summarized as follows:

summarized as follows:
Net profit (loss) of the continuing business unit – current Other comprehensive profit and loss (after tax) - current Total comprehensive profit and loss - current	For theyears ended December 31,
	2024 $14,002 1,952 $15,954	2023
		$9,977 3,557
		$13,534

• (C) The increase or decrease of the Company’s investments under the equity method is as follows:

follows:
Balance - beginning Dividends paid by subsidiaries and associates Share of profit for the period Changes in subsidiaries and associates accounted for using the equity method The exchange difference amount from the conversion of the financial statements of foreign operating institutions The unrealized valuation profit (loss) amount of the financial assets measured at fair value through other comprehensive profit and loss The share of unrealized gains (losses) from changes in fair value of financial assets measured at fair value through other comprehensive income. Balance - ending	For theyears ended December 31,
	2024 $4,699,117 (1,382,197) 862,112 524 204,086 (21) 1,975 $4,385,596	2023
		$4,470,257 (262,247) 558,304 296 (71,054) (37) 3,598
		$4,699,117

• (D) The Company recognized the equity investment changes in the aforementioned subsidiaries and affiliated enterprises in 2024 and 2023, which were calculated based on the audited financial statements of the invested companies for the same period.

• 46 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (E) The Company’s subsidiaries, except for the entities dissolved and liquidated by the resolution of the board of directors that could no longer be included in the consolidated statements, were all included in the 2024 and 2023 consolidated financial reports.

• (F) The investment under the equity method mentioned above does not involve any collateral or pledges.

• 47 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(9) Property, plant and equipment

• (A) The change in the Company’s property, plant and equipment is as follows:

For the years ended December 31, 2024

Cost	Land	House & building	Machinery equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment yet to be tested	Total
Balance at January 1, 2024 Addition： Disposition Reclassification –current Balance at December 31, 2024 Accumulated depreciation： Balance at January 1, 2024 Depreciation Disposition Reclassification -current Balance at December 31, 2024 Carrying amount at December 31, 2024	$102,911 873,955 - 218,157	$272,330 372,420 - 87,471	$718,029 60,775 (33,735) 5,928	$32,934 4,269 (653) 1,754	$1,082 1,135 - -	$103,630 17,456 (773) 105	$- 136,413 - -	$1,230,916 1,466,423 (35,161) 313,415
	1,195,023	732,221	750,997	38,304	2,217	120,418	136,413	2,975,593
	- - - -	182,412 15,282 - -	481,144 45,280 (32,818) -	22,370 3,680 (653) -	927 122 - -	66,233 8,390 (773) (2)	- - - -	753,086 72,754 (34,244) (2)
	-	197,694	493,606	25,397	1,049	73,848	-	791,594
	$1,195,023	$534,527	$257,391	$12,907	$1,168	$46,570	$136,413	$2,183,999

• 48 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

For the years ended December 31, 2023

Cost	Land	House & building	Machinery equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment yet to be tested	Total
Balance at January 1, 2023 Addition Disposition Reclassification -current Balance at December 31, 2023 Accumulated depreciation: Balance at January 1, 2023 Depreciation Disposition Reclassification -current Balance at December 31, 2023 Carrying amount at December 31, 2023	$102,911 - - -	$257,630 11,260 - 3,440	$690,340 13,866 (2,343) 16,166	$34,553 2,884 (4,503) -	$991 171 (80) -	$88,468 13,172 (475) 2,465	$4,386 - - (4,386)	$1,179,279 41,353 (7,401) 17,685
	102,911	272,330	718,029	32,934	1,082	103,630	-	1,230,916
	- - - -	171,304 11,108 - -	438,185 45,279 (2,320) -	24,086 2,787 (4,503) -	991 16 (80) -	59,987 6,721 (475) -	- - - -	694,553 65,911 (7,378) -
	-	182,412	481,144	22,370	927	66,233	-	753,086
	$102,911	$89,918	$236,885	$10,564	$155	$37,397	$-	$477,830

• 49 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The Company’s major building constituents mainly include the main plant buildings, workshops, and plant decoration, which are depreciated according to their service life of 3-50 years.

• (C) The Company did not acquire property, plant and equipment that caused the capitalization of the loan cost for the years ended December 31, 2024 and 2023.

• (D) The Company did not have any impairment occurred to the property, plant and equipment for the years ended December 31, 2024 and 2023.

• (E) The aforementioned property, plant and equipment had not been provided as collateral or mortgaged.

• (F) The acquired property, plant and equipment listed in the parent company only cash flow statemen t:

flow statement:
The current addition of property, plant and equipment listed in Note 6(9)(A) of the parent company only financial report Add: Equipment payable–beginning Less: Equipment payable–ending Cash outflow for the acquisition of property, plant and equipment	For theyears ended December 31,
	2024	2023
	$1,466,423 10,355 (122,450)	$41,353 14,194 (10,355)
	$1,354,328	$45,192

• (G) The Company's leased assets are as follows:

Buildings and structures Less: Accumulated depreciation Leased assets - net	December 31,2024 $1,340 (1,080) $260	December 31,2023
		$1,340 (1,043)
		$297

• (a) The company had part of the plant building leased to BAIYUE PRECISION CO., LTD. (hereinafter referred to as “BAIYUE”) for a period from October 1, 2022 to September 30, 2023. The lease contract was renewed on September 30, 2023 for a lease period from October 1, 2023 to September 30, 2024. The lease contract was renewed on October 25, 2024 for a lease period from October 1, 2024 to September 30, 2025.

• 50 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (b) The Company had part of the plant building leased to BAIYUE. The said plant building could not be sold independently; also, the said plant building owned by the Group was mainly for the purpose of product production, service providing, and management; therefore, the proprietary plant was not classified as an investment property.

(10) Intangible assets

• (A) The increase or decrease of the Company’s intangible assets-computer software is as follows:

follows:
Cost: Balance - beginning Addition - current Decrease in the current period - delisted on the due date Balance - ending Accumulated depreciation: Balance - beginning Amortization - current Decrease in current period - delisted on the due date Balance - ending Book amount - ending	For theyears ended December 31,
	2024 $1,225 255 (831) 649 733 334 (831) 236 $413	2023
		$2,741 281 (1,797)
		1,225
		1,785 745 (1,797)
		733
		$492

• (B) The Company did not have any impairment occurred to the intangible assets for the years ended December 31, 2024 and 2023.

(11) Short-term loans

loans
Credit loans	December 31,2024 $500,000	December 31,2023
		$1,210,000

• 51 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(A) The Group’s short-term loan interest rate is as follows:

Nature of loan Credit loan	December 31,2024 1.845%-1.853%	December 31,2023
		1.640%-2.380%

(B) The Company did not provide collateral for the aforementioned short-term loans.

(12) Bonds Payable

Domestic Second Unsecured Convertible Corporate Bonds Less: Discount on Accounts Payable Corporate Bonds Less: Accumulated Application for Converting Amounts by Creditors Non-derivative Financial Liability Component Less: Current Portion of Accounts Payable Corporate Bonds Non-current Portion of Accounts Payable Corporate Bonds Embedded Derivatives (Note) Non-current Financial Assets Measured at Fair Value through Profit or Loss Equity Component (Capital Surplus) Financial assets (gains or losses) measured at fair value through profit or loss -liability component Interest expense	December 31,2024 $1,000,000 (29,569) (219,700) 750,731 - $750,731 $1,951 $147,988 2024 $2,247 $14,781	December 31,2023
		$- - -
		- -
		$-
		$-
		$-
		2023
		$-
		$-

Note: The fair value of embedded derivative financial instruments for the company's redemption rights is calculated on each reporting date using the risk-free rate plus a credit risk premium for discounting.

• 52 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (A) As of December 31, 2024, the company has issued the 2024 domestic second unsecured convertible bonds with the following main terms explained:

• (a) Issue Amount:

The total issue amount is 1,000,000 thousand NT dollars, with a face value of 100 thousand NT dollars per bond, issued at 113.80% of the face value. The actual total funds raised amount to 1,137,967 thousand NT dollars, after deducting related issuance costs of 3,064 thousand NT dollars, the net funds raised is 1,134,903 thousand NT dollars.

(b) Issue Period:

The bonds have a three-year term, issued on January 26, 2024, and will mature on January 26, 2027.

• (c) Bond Type:

Unsecured convertible bonds.

• (d) Face Interest Rate and Repayment Method:

The face interest rate is 0%. Except for conversion into the company's common stock as specified in the conversion method or repurchased and cancelled by securities dealers commissioned by the company, the company shall repay the convertible bonds in cash in full at face value within ten business days starting from the day after the maturity date of the convertible bonds.

(e) Company's Redemption Rights for the Convertible Bonds:

From three months after the issuance date of the convertible bonds (April 27, 2024) to forty days before the maturity date (December 17, 2026), if the closing price of the company's common stock exceeds 30% of the conversion price for thirty consecutive trading days, the company may, within the following thirty trading days, send a registered "Bond Redemption Notice" to the bondholders with a one-month expiration date, notifying the exercise of the redemption rights. Within five business days after the bond redemption reference date, the company may redeem all the bonds in cash at face value. Additionally, if the outstanding balance of the convertible bonds in circulation falls below 10% of the original total face value, the

• 53 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

company may, at any subsequent time, send a registered "Bond Redemption Notice" with a one-month expiration date to the bondholders, notifying the exercise of the redemption rights. Within five business days after the bond redemption reference date, the company may redeem all the bonds in cash at face value.

(f) Conversion Period:

Bondholders may convert the convertible bonds from the day after the issuance date of the convertible bonds (April 27, 2024) to forty days before the maturity date (January 26, 2027), except during the following periods: (1) from the fifteenth business day before the ex-dividend date, the ex-date for cash dividends, or the record date for rights offerings; (2) from the record date for capital reduction to the day before the commencement of trading of the shares issued in exchange for the reduction; (3) from the date of cessation of conversion due to stock split to the day before the commencement of trading of the new shares issued in the stock split; (4) during any period when the transfer of ordinary shares is legally suspended, bondholders may request, through securities dealers, the Taiwan Depository & Clearing Corporation Limited to convert the bonds into the company's common stock in accordance with the conversion method.

(g) Conversion Price and Its Adjustment:

The conversion price was set at NT$72.2 per share on August 1, 2024 as the reference date. After the issuance of the convertible bonds, the conversion price will be adjusted in accordance with the terms of issuance when there is an increase in the company's outstanding common shares due to various events such as cash capital increase, profit to capital increase, capital surplus to capital increase, mergers, acquisitions, stock splits, issuance of overseas depositary receipts, and changes in the face value of shares. Additionally, the conversion price will be adjusted if the company distributes cash dividends on common shares, issues new securities with conversion rights at a price lower than the market price per share, or grants subscription rights for the issuance of new shares to others. The conversion price will also be adjusted if there is a reduction in common shares due to reasons other than the cancellation of treasury shares. As of December 31, 2024, the adjusted conversion price based on the terms of issuance is NT$69.6 per share.

• (B) The company has separated the conversion option of the convertible bonds mentioned above in accordance with regulations. At the original recognition, the portion classified as an equity component is recorded under capital surplus - conversion option of

• 54 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

convertible bonds, amounting to NT$189,655 thousand. The portion classified as a liability component in the main contract is recorded under accounts payable - convertible bonds, amounting to NT$945,548 thousand, while the liability component of embedded derivative financial instruments in the terms of issuance is recorded through profit or loss at fair value under financial assets - non-current, amounting to NT$300 thousand.

• (C) For the years ended December 31, 2024, the amounts converted by the creditors of the aforementioned convertible bonds were NT$219,700 thousand.

(13) Retirement benefits

(A) Defined benefit plan

• (a) The Company has based on the employee’s seniority and the expected salary before retirement to have the employee retirement plan formulated, and has pension reserve appropriated for an amount equivalent to certain percentage of the monthly salary in accordance with the “Labor Standards Act” and then deposited in a special account and used by the Labor Pension Committee. The pension reserve is operated separately from the business operation of the Company; therefore, it is not included in the consolidated financial statements.

• (b) The remeasurement of the net defined benefit liability is accumulated and recognized in other comprehensive profit and loss as follows:

Balance - beginning Net defined benefit plan remeasurement Balance - ending	2024	2023
	$(71,594) 16,207	$(70,998) (596)
	$(55,387)	$(71,594)

• 55 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(c) The reconciliation of the present value of the defined benefit obligation and the fair value of the plan asset is as follows:

Present value of defined benefit obligation Fair value of plan assets Plan shortfalls Booked in other payables Net defined benefit obligation	December 31,2024	December 31,2023
	$183,372 (172,260)	$194,480 (164,158)
	11,112 (362)	30,322 (366)
	$10,750	$29,956

• (d) The changes in the present value of the defined benefit obligation are as follows:

Book value - beginning Current service cost Interest expense Net defined benefit obligation remeasurement Actuarial loss arising from changes in demographic assumptions Actuarial losses arising from changes in financial assumptions Actuarial gains (losses) arising from experience adjustments Benefits paid Book value - ending	2024 $194,480 1,009 2,275 2 228 (1,542) (13,080) $183,372	2023
		$206,349 1,491 2,538 - 509 882 (17,289)
		$194,480

• 56 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (e) The changes in the fair value of plan assets are as follows:

Balance – beginning Interest income Remeasurements of the net defined benefit asset: –Actuarial gains on plan assets arising from experience adjustments Employer’s contributions Benefits paid Balance - ending	2024 $164,158 1,921 14,895 4,366 (13,080) $172,260	2023
		$174,034 2,141 795 4,477 (17,289)
		$164,158

• (i) In accordance with the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund,” the revenues, safekeeping, and utilization of the Company’s plan assets are administered by the competent authority in conjunction with the Ministry of Finance, and entrusted to the Bank of Taiwan. The safekeeping and utilization of the fund may also be delegated to other financial institutions. The utilization of the fund covers deposits in domestic and foreign financial institutions; investments in domestic and foreign listed, OTC, or privately placed equity securities; investments in domestic and foreign debt securities; investments in public or private placement securities investment trust funds, futures trust fund beneficiary certificates, collective trust fund beneficiary certificates or collective trust products; investments in beneficiary certificates, fund shares, or investment units issued or managed by foreign fund management institutions; investments in domestic and foreign real estate and real estate securitized products; investments in domestic and foreign physical commodities; engaging in domestic and foreign derivatives transactions; and securities lending transactions. The minimum annual return of the fund’s final settlement and allocation shall not be lower than the return calculated based on the two-year time deposit interest rate offered by local banks. Information regarding the utilization of the Labor Retirement Fund, including contribution and return rates provided by Bank of Taiwan, as well as asset allocation data published by the Bureau of Labor Funds, Ministry of Labor, Executive Yuan, can be found on the Bureau’s official website.

• 57 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (ii) The Company’s pension reserves in the special account with the Bank of Taiwan were NT$172,260 thousand and NT$164,158 thousand on December 31, 2024 and 2023, respectively.

• (iii) As of December 31, 2024, the Company’s expected appropriation of defined benefit plan in 2025 was NT$4,144 thousand.

• (f) The pension expense recognized in profit and loss and booked amount are as follows:

follows:
Service cost Interest expense Interest income Total Operating cost Selling and marketing expenses General and administrative expenses Research and development expenses Total	2024 $1,009 2,275 (1,921) $1,363 $659 180 397 127 $1,363	2023
		$1,491 2,538 (2,141)
		$1,888
		$922 237 546 183
		$1,888

• (g) The main actuarial assumptions used in determining the present value of the defined benefit obligation are as follows:

benefit obligation are as follows:
Discount rate Expected salary increase rate	December 31,2024 1.52% 1.50%	December 31,2023
		1.17% 1.50%

Please refer to Note 5.(2)(A) to the consolidated financial statements for the sensitivity analysis regarding the impact on the net defined benefit liabilities due to the reasonable and possible changes in the Company’s actuarial assumptions.

• 58 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(h) Information on the maturity overview of the defined benefit obligation is as follows:	(h) Information on the maturity overview of the defined benefit obligation is as follows:
	December 31,2024 December 31,2023
Weighted average duration	3years 6years

Maturity analysis of future benefit payments

Within 1 year 2~5 years Over 6 years Total undiscounted amount Present value of benefit payments	December 31,2024 $164,139 19,104 12,875 $196,118 $192,567	December 31,2023
		$169,481 20,428 6,099
		$196,008
		$194,682

(B) Defined contribution plan

• (a) The Company has adopted a defined contribution plan since the implementation of the “Labor Pension Act” in July 2005. The employees may choose to be subject to the pension provisions of the “Labor Standards Act” or the “Labor Pension Act” with the reservation of the seniority prior to the “Labor Pension Act” took forth. For the employees subject to the “Labor Pension Act,” the Company shall assume the pension contribution for an amount not less than 6% of the monthly salary that is to be appropriated on a monthly basis and deposited in the personal account of each employee with the Bureau of Labor Insurance. The Company is without any legal or presumed obligation to make any additional contribution other than the monthly pension contribution.

• (b) The pension expense recognized by the Company according to the definite contribution plan is as follows:

contribution plan is as follows:
Operating cost Selling and marketing expenses General and administrative expenses Research and development expenses Total	2024 $11,724 2,090 3,317 1,293 $18,424	2023
		$11,631 1,991 3,043 1,440
		$18,105

• 59 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(14) Capital stock

Capital stock
Balance amount on January 1,2024 Cash capital increase through the issuance of new shares Execution of employee stock options Conversion of convertible bonds Balance amount on December 31, 2024 Balance amount on January 1,2023 Employee exercise of stock warrant Balance amount on December 31, 2023	Authorized capital stock (1,000 shares) 350,000 350,000 350,000 350,000	Common stock shares issued at NT$10 par (including Advance Receipts for Capital Stock)
		Shares (1,000 shares) 190,844 15,000 1,122 3,130 210,096 190,654 190 190,844	Capital stock
			$1,908,443 150,000 11,220 31,297
			$2,100,960
			$1,906,543 1,900
			$1,908,443

• (A) As of December 31, 2024 and 2023, the company’s authorized capital stock included 20,000 thousand shares reserved for the issuance of an employee stock warrant.

• (B) The related rights, priority, and restrictions of the common stock shares issued by the company are as follows:

• (a) Each shareholder is entitled to one vote per share.

• (b) The distribution of dividends and bonuses are based on the shareholding ratio of each shareholder.

• (c) The property net of the debt is distributed proportionally to the shareholding ratio of each shareholder.

• (C) The number of shares subscribed through the exercise of employee stock options by our company in 2024 and 2023 were 1,122 thousand shares and 190 thousand shares , respectively. As of December 31, 2024 and 2023, the cumulative number of shares subscribed through the issuance of employee stock options was 11,914 thousand shares and 10,792 thousand shares , respectively. As of December 31, 2024, there were 263 thousand and 190 thousand shares that had not completed the registration process for

• 60 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

the change in ownership, and were therefore temporarily recorded under the category of prepaid capital. For more information on the issuance of employee stock options, Please refer to Note 6.(20) in the individual financial statements.

• (D) The Company, pursuant to a resolution of the Board of Directors on October 27, 2023, conducted a cash capital increase by issuing 15,000 thousand new shares with a par value of NT$10 per share, totaling NT$150,000 thousand. The shares were issued at a premium of NT$58 per share, resulting in gross proceeds of NT$870,000 thousand. After deducting issuance-related expenses of NT$3,553 thousand, the net proceeds amounted to NT$866,447 thousand. The Chairman was authorized to set February 27, 2024, as the record date for the capital increase. The capital increase was approved and declared effective by the competent authority, and the related registration procedures have been completed.

• (E) As of December 31, 2024, the cumulative number of common shares converted upon the request of the holders of the Company's convertible bonds was 3,130 thousand shares (of which 58 thousand shares have yet to complete the change registration process and are therefore temporarily recorded under "Advance Receipts for Share Capital" as of December 31, 2024). This conversion resulted in additional paid-in —

• capital conversion premium of NT$219,368 thousand (including NT$41,667 thousand —

• reclassified from additional paid-in capital stock warrants of convertible bonds based on the conversion ratio). For further details on the issuance of convertible bonds, please refer to Note 6.(12) of the individual financial statements.

• 61 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(15) Capital Surpluses

Capital Surpluses
Common stock premium Conversion Premium of Convertible Bonds Treasury stock transaction The difference between the actual acquisition price of the subsidiary’s equity and the book amount Changes in the net equity value of subsidiaries under the equity method and affiliated enterprises Employee stock options Stock Warrants of Convertible Bonds Invalid employee stock options Unclaimed dividends by shareholders beyond the statutory period Exercise the right of disgorgement Total	December 31,2024 $863,310 219,368 63,306 3,563 32,682 43,815 147,988 46,298 1,788 312 $1,422,430	December 31,2023
		$317,414 - 63,306 3,563 32,158 35,311 - 36,414 1,739 -
		$489,905

(A) According to the Company Act, the company shall apply the additional paid-in capital to make up for losses only. However, if the company has no loss, the stock premium and all or part of the donation received may be used to distribute new shares or cash proportionally to the shareholders’ original shareholding ratio. In addition, the company may apply the additional paid-in capital to supplement the capital loss only when there is an insufficient reserve.

(B) On June 14, 2024, the Company’s Annual Shareholders' Meeting resolved to distribute cash of NT$205,844 thousand (NT$1 per share) to shareholders from capital reserves.

(16) Legal reserve

According to the Company Act, the company after having all taxes paid and ready for earnings distribution shall first appropriate 10% legal reserve and continue to appropriate until the total legal reserve amount equals total capital. The legal reserve can be applied to make up for the company’s losses; also, if the company has no loss, the amount of the legal reserve exceeding 25% of the paid-in capital can be used to distribute new shares or cash proportionally to the shareholders’ original shareholding ratio.

• 62 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(17) Special reserve

The Company has special reserve appropriated and reversed in accordance with Jin-Guan-Zheng-Far-Tzi No. 1010012865 Order, Jin-Guan-Zheng-Far-Tzi No. 1010047490 Order, and “ Questions and Answers on the Appropriation of Special Reserves after the Adoption of International Financial Reporting Standards (IFRSs). ” When the amount debited to other equity is reversed subsequently, the reversed amount could be distributed. In addition, the Financial Supervisory Commission had issued the Jin-Guan-Zheng-Far-Tzi No. 1090150022 Order on March 31, 2021, then the Jin-Guan-Zheng-Far-Zi No. 1010012865 Order and Jin-Guan-Zheng-Far-Tzi No. 1010047490 Order were revoked on December 31, 2021 and March 31, 2021, respectively. The Company will comply with the relevant letter and orders continuously.

(18) Earnings distribution and dividend policy

• (A) According to the company’s Articles of Incorporation, the annual earnings, if any, should be applied to pay income tax and make up for the losses of the previous years; also, appropriate 10% legal reserve from the remaining balance, if any. In addition, appropriate or reverse a certain amount of special reserve according to the regulations of the competent authority. Then, for the balance amount, if any, and the unappropriated earnings of the previous year, except for the retained amount, the board of directors shall draft an earnings distribution plan for the resolutions of the shareholders meeting.

• (B) The company’s dividend policy: the company’s current industrial development is growing and will be expanded to support the business development. The earnings distribution shall be handled in accordance with the company’s Articles of Incorporation. However, the shareholders’ dividends distributed in the current year shall include not more than 50% of the stock dividend and must be more than 50% of the cash.

• (C) Regarding the proposed resolutions on profit distribution (pending approval at the shareholders' meeting to be held on June 13, 2025) or approved resolutions at the shareholders' meeting regarding profit distribution and distribution of dividends from capital surplus to shareholders, the situation is as follows:

• 63 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Legal reserve Special reserve Shareholder’s dividends Cash Cash dividend per share Stock (NT$10 par) Stock dividend per share Distribute capital surplus to shareholders. Cash Cash dividend per share	Years Ended December 31	Years Ended December 31	Years Ended December 31
	2024 $108,051 $- $210,738 NT$1.00 -share -NT$ $526,845 NT$2.50	2023 $67,441 $- $308,766 NT$1.50 -share -NT$ $205,844 NT$1.00	2022
			$88,833 $- $438,505 NT$2.30 -share -NT$ $- -NT$

(19) Other equity (net amount after tax)

• (A) The exchange difference from the conversion of the financial statements of foreign operating institutions:

perating institutions:
Beginning Balance Current period occurrence Reclassified to (profit) and loss in the current period Ending balance	For theyears ended December 31,
	2024 $(409,638) 204,086 - $(205,552)	2023
		$(338,584) (71,054) -
		$(409,638)

• (B) Unrealized valuation benefits of financial assets measured at fair value through other comprehensive profit and loss:

omprehensive profit and loss:
Beginning Balance Current period occurrence Recognized under the equity method in the current period - affiliated enterprise Reclassified to retained earnings in the current period Ending balance	For theyears ended December 31,
	2024 $300,180 123,128 1,975 - $425,283	2023
		$237,702 58,880 3,598 -
		$300,180

• 64 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(20) Share-based payment - employee rewards

The company was authorized by the Securities and Futures Bureau of the Financial Supervisory Commission to issue employee stock warrants on August 22, 2018, and June 21, 2022, for 500,000 units, and 300,000 units respectively. One stock warrant is entitled to subscribe to 10 common stock shares of the company. New shares will be issued for the stock option exercised by employees and the subscription price is the company’s common stock closing price on the issuance day. The stock warrant holders can exercise a certain percentage of the stock warrant after 2-year from the issuance date (according to the regulations, the exercisable subscription amount is 40% of the amount available for subscription in each stock warrant issued after 2-year from the issuance date, 60% after 3-year from the issuance date, 80% after 4-year from the issuance date, and 100% after 5 years from the issuance date). The duration of the stock warrant is for seven years. The unexercised stock options after 7 years shall be deemed as being waived, and the subscribers cannot claim their rights to subscribe.

As of December 31, 2024, the issuance of compensatory employee stock warrants is disclosed as follows:

closed as follows:
Warrant issuance date	Total warrants issued originally	Total warrants outstanding at yearend	Total warrants available for subscription at yearend	Subscription price (NTD) (Note)
September 12, 2018	290,000	96,700	967,000	$18.60
August 12, 2019	210,000	157,100	1,571,000	18.70
August 5, 2022	100,000	88,000	352,000	47.30
November 4, 2022	100,000	100,000	400,000	41.40
June 5, 2023	100,000	100,000	-	46.90

Note ： The company has the subscription price adjusted when there is a change in common stock share or cash dividend is distributed for common stock shares in accordance with the “Regulations Governing the Issuance of Employee Stock Warrant and Stock Subscription.” The stock subscription price per share after adjustment is disclosed as of December 31, 2024.

• 65 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (A) The company adopts the Black-Scholes stock options model to assess the fair value of the employee stock warrant issued each year. The remuneration cost accrued were NT$14,374 thousand and NT$15,766 thousand, for the years ended December 31, 2024 and 2023, respectively. The input values of the stock option pricing model are as follows:

Expected dividend ratio Expected price fluctuation ratio Risk-free interest rate Expected duration Expected dividend ratio Expected price fluctuation ratio Risk-free interest rate Expected duration	2022 Stock optionplan -% 32.86%~36.80% 1.0873%~1.0996% 4.5~6 years 2018 Stock optionplan -% 18.99%~20.95% 0.554%~0.582% 4.5~6 years	2022 Stock optionplan	2022 Stock optionplan
		-% 32.35%~36.13% 1.5365%~1.5954% 4.5~6 years 2018 Stock optionplan	-% 31.76%~35.33% 1.0109%~1.0687% 4.5~6 years
		-% 21.38%~22.07% 0.700%~0.758% 4.5~6 years

The assumption of the expected price fluctuation ratio is measured according to the impact of the annual dividend distribution in the past on stock price, and the expected stock price fluctuations in the future period. The stock option duration is the employee exercising stock option period that is deducted from the historical data and current expectation, which may not necessarily match the actual result or actual implementation.

• 66 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The quantity and weighted average price of the compensatory employee stock option plan issued by the company is disclosed as follows:

plan issued by the company	is disclosed as follows:
Employee stock operations	2024 QTY(unit) Weighted average price per share (NTD) 664,600 $31.76 - - (112,200) 19.50 (10,600) 45.68 541,800 32.72 329,000 24.49 $-	2023 QTY(unit) Weighted average price per share (NTD) 585,700 $29.89 100,000 51.00 (19,000) 19.30 (2,100) 19.30 664,600 31.76 324,600 19.34 $16.67
	QTY(unit) 664,600 - (112,200) (10,600) 541,800 329,000 $-		Weighted average price per share (NTD)
Outstanding shares - beginning Granted in current period Exercised in current period Lost in current period (expired) Outstanding shares - ending Exercisable employee stock options - ending Average fair value per share of stock options granted to employees in the current period (NTD)			$29.89 51.00 19.30 19.30 31.76 19.34

The weighted average share price is NTD $80.63 and NTD $72.10 of the company's employees did execute stock options for the nine-month periods ended December 31, 2024 and 2023.

As of December 31, 2024 and 2023, the company’s outstanding compensatory employee stock option plan is as follows:

December 31, 2024 2018 Stock option plan 2018 Stock option plan 2022 Stock option plan 2022 Stock option plan 2022 Stock option plan	Price range per share (NTD) $18.60 18.70 47.30 41.40 46.90	Outstandingstock options	Outstandingstock options	Exercisable employee stock options	Exercisable employee stock options
		Outstandi ng QTY (Unit)	Weighted average expected remaining duration Weighted average price per share (NTD)	Exercisable QTY(Unit)	Weighted average price per share (NTD)
		96,700 157,100 88,000 100,000 100,000	- $18.60 0.18 18.70 2.69 47.30 2.94 41.40 3.52 46.90	96,700 157,100 35,200 40,000 -	$18.60 18.70 47.30 41.40 46.90

• 67 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

December 31, 2023 2018 Stock option plan 2018 Stock option plan 2022 Stock option plan 2022 Stock option plan 2022 Stock option plan	Price range per share (NTD) 19.30 19.40 49.00 42.90 48.60	Outstandingstock options	Outstandingstock options	Outstandingstock options	Exercisable employee stock options	Exercisable employee stock options
		Outstandi ng QTY (Unit)	Weighted average expected remaining duration	Weighted average price per share (NTD)	Exercisable QTY(Unit)	Weighted average price per share (NTD)
		185,600 179,000 100,000 100,000 100,000	0.26 0.78 3.69 3.94 4.53	19.30 19.40 49.00 42.90 48.60	185,600 139,000 - - -	19.30 19.40 49.00 42.90 48.60

(C) Cash capital increase reserved for employee subscriptions

On October 27, 2023, the Board of Directors of the Company resolved to carry out a cash capital increase, with 2,250 thousand shares reserved for employee subscriptions. The number of shares forfeited due to employees waiving their subscription rights was 775 thousand shares. On the grant date, the fair value per share was estimated at NT$12.73 using the Black-Scholes option pricing model. The Company recognized labor cost of NT$28,643 thousand for the year 2024 and recognized additional paid-in capital—expired stock options of NT$9,866 thousand.

Regarding the above, the fair value of the employee stock options reserved for the cash capital increase was determined using the Black-Scholes option pricing model. The relevant assumptions used in the model are as follows:

Exercise price per share (NT$)	$58.00
Share price on the grant date (pre-capital increase) (NT$)	71.70
Share price on the grant date (post-capital increase) (NT$)	70.70
Expected dividend yield	-%
Expected price volatility	30.25%
Risk-free interest rate	1.0302%
Expected term	16 days

• 68 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(21) Net operating income

For the years ended December 31,

Sales income Parts income Mold income Fixture income Merchandise income Total Less : Sales return Sales discount Net operating income	2024 $1,895,647 74,919 22,576 32,463 2,025,605 (4,351) (4,794) $2,016,460	2023
		$1,763,152 78,380 47,847 68,501
		1,957,880 (9,169) (5,890)
		$1,942,821

(A) Income classification:

(a) Main merchandise / service

me classification: Main merchandise / service
Parts income Mold income Tools income Merchandise income Total	For theyears ended December 31,
	2024 $1,887,548 73,879 22,576 32,457 $2,016,460	2023
		$1,748,873 77,961 47,847 68,140
		$1,942,821

(b) Main regional markets

Main regional markets
Customer location Taiwan Asia (other than Taiwan) America Europe Total	For theyears ended December 31,
	2024 $1,344,930 604,662 44,009 22,859 $2,016,460	2023
		$1,272,770 606,011 44,436 19,604
		$1,942,821

• 69 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(c) Income recognition time

Income recognition time
Goods transferred at a certain time	For theyears ended December 31,
	2024 $2,016,460	2023
		$1,942,821

(B) Contract liabilities:

Contract liabilities	December 31,2024 $9,271	December 31,2023 $6,497

The significant changes in the contract liability balance are as follows:

Contract liabilities balance -beginning transferred to income in the current period Increase in cash received in advance in the current period	Years Ended	December 31
	2024 $(6,497) 9,271	2023
		$(8,534) 5,998

(22) Operating costs and expenses

The Company’s employee welfare expenses, depreciation, and amortization expenses are summarized as follows:

Function Nature	For the years ended December 31, 2024	For the years ended December 31, 2024	For the years ended December 31, 2024	For the years ended December 31, 2023	For the years ended December 31, 2023	For the years ended December 31, 2023
	Attributable to operating cost	Attributable to operating expense	Total	Attributable to operating cost	Attributable to operating expense	Total
Employee welfare expenses
Employee expense(Note 1)	$385,696	$223,376	$609,072	$358,531	$189,665	$548,196
Labor and health insurance expenses	35,622	16,554	52,176	34,822	16,028	50,850
Pension expenses	12,383	7,404	19,787	12,553	7,440	19,993
Director remuneration	-	5,212	5,212	-	5,076	5,076
Other welfare expenses	9,423	2,982	12,405	8,414	2,688	11,102
Depreciation expenses(Note 2)	58,512	14,205	72,717	56,598	9,276	65,874
Amortization expense	17,320	305	17,625	3,747	745	4,492

• 70 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note 1 ： (A) According to the company’s Articles of Incorporation, the company shall appropriate an amount equivalent to 1-10% of the company’s net income before tax before deducting remuneration to employees, directors, and supervisors as remuneration to employees and not more than 3% as remuneration to directors and supervisors. However, it is necessary to reserve a sufficient amount to make up for the losses, if any. The remuneration to employees in the preceding paragraph is paid in the form of stocks or cash, including the employees of the controlled companies who meet the conditions set by the board of directors. The remuneration to directors and supervisors must be paid in cash. The aforementioned matters shall be resolved by the board of directors for implementation and shall be reported to the shareholders meeting.

• (B) The estimated amounts of accrued employee compensation payable for the fiscal years 2024 and 2023 of our company are NT$28,177 thousand and NT$23,000 thousand, respectively, and the remuneration to directors and supervisors was NT$0, respectively. The estimated basis of employee compensation is determined by a certain proportion of the current year's pre-tax net profit (excluding the impact of employee compensation). The recognized employee compensation accrual is classified as current period operating costs or operating expenses. However, if there is a change in the dividend payout amount approved by the Board of Directors in the future, it will be adjusted in the next year's income statement according to accounting estimates.

• (C) The company’s board of directors had resolved on March 7, 2025 to distribute the 2024 remuneration to employees for NT$28,177 thousand in cash and remuneration to directors for NT$0; also, it was not different from the estimated remuneration to employees and directors in the company’s 2024 financial report. The company’s board of directors had resolved on March 8, 2024 to distribute the 2023 remuneration to employees for NT$23,000 thousand in cash and remuneration to directors and supervisors for NT$0 that were reported in the regular shareholders meeting on June 14, 2024; also, it was not different from the estimated remuneration to employees, directors, and supervisors in the company’s 2023 financial report.

• 71 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (D) Please refer to the Market Observation Post System for the information regarding the remuneration to employees and directors resolved by the company’s board of directors.

• Note 2 ： The depreciation expenses provided by the Company for the years 2024 and 2023 were NT$72,754 thousand and NT$65,911 thousand, respectively. Among them, the depreciation expenses for real estate, factories, and equipment - leased assets were all NT$37 thousand, which were listed under the net amount of other income and expenses.

• Note 3：(A) The Company’s average number of employees at the end of each month was 809 and 800 for the years 2024 and 2023, respectively. Among them, the number of directors not concurrently serving as employees was six in both years.

• (B) The Company’s average employee benefit expenses were NT$864 thousand and NT$794 thousand in 2024 and 2023, respectively.

• (C) The Company’s average employee salary was NT$758 thousand and NT$690 thousand in 2024 and 2023, respectively. The average employee salary was an increase of 9.86% in 2024 from the year 2023.

• (D) The Company’s remuneration policy (including directors, supervisors, managerial officers, and employees) is as follows:

  • (a) Director and supervisor’s traveling allowance: The Company’s board of directors has resolved a monthly traveling allowance for the board directors and supervisors for an amount of NT$20,000.

  • (b) Remuneration to directors and supervisors from the earnings distribution: The Company’s board of directors and supervisors have currently waived their remuneration with a letter of consent issued and filed, respectively.

  • (c) Remuneration to directors and supervisors: All board directors and supervisors, except for the Chairman and several board directors, do not receive remuneration for their services.

• 72 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (d) Remuneration to managerial officers and employees, each one of them is compensated reasonably by taking into consideration of the Company’s overall operational performance, the contribution of each position holder to the Company’s performance, and the respective connection to future risks.

Please refer to Note 1(A) for the remuneration to employees and directors stipulated in the Company’s Articles of Incorporation.

(23) Other income and expenses – net

Other income and expenses–net
Property, plant and equipment – lease assets Rent income Depreciation expense Other income and expenses - net	For theyears ended December 31,
	2024	2023
	$420 (37)	$420 (37)
	$383	$383

(24) Non-operating income and expense

(A) (B)	Interest income Bank deposit interest Other interest income Total Other income Cash dividends Other income-other Total	For theyears ended December 31,	For theyears ended December 31,
		2024	2023
		$32,925 134,868	$46,884 69,904
		$167,793	$116,788
		$11,875 60,990	$9,500 70,088
		$72,865	$79,588

• 73 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(C) (D) (E) (F)	For theyears ended December 31, 2024 2023 Other profit and loss Net loss of financial assets measured at fair value through profit and (loss) $167,243 $62,757 Net profit from the disposal of property, plant, and equipment 1,577 219 Total $168,820 $62,976 Financial cost Bank loan interest $(13,477) $(18,304) Amortization of Discount on Bonds Payable (14,781) -- Total $(28,258) $(18,304) Profit (loss) amount from the subsidiaries and affiliated enterprises under the equity method Please refer to Note 6.(8)(C) of the parent company only financial report for details. For theyears ended December 31, 2024 2023 Exchange loss-net Realized exchange profit (loss) - net $42,599 $18,454 Unrealized exchange profit (loss)-net 10,161 (6,929) Total $52,760 $11,525	For theyears ended December 31,	For theyears ended December 31,
		2024	2023
		$167,243 1,577	$62,757 219
		$168,820	$62,976
		$(13,477) (14,781)	$(18,304) --
		$(28,258)	$(18,304)
		2024	2023
		$42,599 10,161	$18,454 (6,929)
		$52,760	$11,525

• 74 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(25) Other comprehensive profit and loss

Other comprehensiveprofit and loss constituents For the years ended December 31, 2024 Items not reclassified to profit and loss: Remeasurements of defined benefit plan Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive loss Remeasurements of defined benefit plan of affiliated enterprises under the equity method Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive profit of affiliated enterprises under the equity method Total amount of items not reclassified to profit and loss: Items that may be reclassified to profit and loss subsequently: Exchange difference from the conversion of the financial statements of foreign operating institutions of subsidiaries under the equity method Total	Transactions of current period $16,207 123,128 (21) 1,975 141,289 204,086 $345,375	Reclassification and adjustment of currentperiod	Other comprehensive profit and loss $16,207 123,128 (21) 1,975 141,289 204,086 $345,375	Income tax expense $- - - - - - $-	Amount after tax
		$- - - -			$16,207 123,128 (21) 1,975
		-			141,289
		-			204,086
		$-			$345,375

• 75 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Other comprehensiveprofit and loss constituents For the years ended December 31, 2023 Items not reclassified to profit and loss: Remeasurements of defined benefit plan Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive loss Remeasurements of defined benefit plan of affiliated enterprises under the equity method Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive profit of affiliated enterprises under the equity method Total amount of items not reclassified to profit and loss: Items that may be reclassified to profit and loss subsequently: Exchange difference from the conversion of the financial statements of foreign operating institutions of subsidiaries under the equity method Total	Transactions of current period $(596) 58,880 (37) 3,598 61,845 (71,054) $(9,209)	Reclassification and adjustment of currentperiod	Other comprehensive profit and loss $(596) 58,880 (37) 3,598 61,845 (71,054) $(9,209)	Income tax expense $- - - - - - $-	Amount after tax
		$- - - -			$(596) 58,880 (37) 3,598
		-			61,845
		-			(71,054)
		$-			$(9,209)

• 76 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(26) Income tax

• (A) The Company’s business income tax return filed before 2022 (inclusive) were reviewed and approved by the tax collection agency.

• (B) The income tax expense constituents:

• (a) Income tax recognized in profit and loss

income tax expense constituents: Income tax recognized in profit and loss
Current income tax expense Current income tax expense Adjustment of prior years' current income tax recognized in the current period. Deferred income tax expense Origin of temporary difference and reversing relevant deferred income tax (benefits) expense Income tax expense	Years Ended December 31
	2024 $348,579 18 (76,986) $271,611	2023
		$110,413 - 70,828
		$181,241

(b) The Group had no income tax related to other comprehensive profit and loss constituents or direct debited or credited to equity for the years ended December 31, 2024 and 2023, respectively.

• 77 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(C) The relationship between income tax expense and accounting profit

(C) The relationship between income tax expense and accounting profit	(C) The relationship between income tax expense and accounting profit	(C) The relationship between income tax expense and accounting profit	ting profit	ting profit	ting profit	ting profit
Years Ended December 31 2024 2023 Accounting profit Net income before tax of the continuing business unit $1,335,935 $856,281 Tax calculated according to the applicable tax rate in the respective country $267,187 $171,256 Unappropriated earnings with business income tax levied additionally 8,842 15,463 Adjustments Tax impact of taxable adjustments and non-deductible expenses (2,557) (4,489) Tax benefit from the Act for Repatriation of Offshore Funds (1,879) (989) Tax impact of temporary differences 76,986 (70,828) The income tax expense payable for the current period. 348,579 110,413 Adjustment of prior years' current income tax recognized in the current period 18 - Current income tax expense 348,597 110,413 Deferred income tax (profit) expense (76,986) 70,828 Income tax expense $271,611 $181,241 (D) The deferred income tax assets and liabilities are analyzed as follows: Balance -ending Recognized in profit and loss Recognized in other profit and loss Balance -ending For the years ended December 31, 2024 Deferred income tax assets Unrealized inventory loss in valuation $6,653 $(1,915) $- $4,738 Unrealized financial assets and liabilities loss in valuation 1,926 (1,926) - - Unrealized exchange losses 1,386 (1,386) - - Financial and tax difference of property, plant and equipment 3,229 261 - 3,490 Total $13,194 $(4,966) $- $8,228			Years Ended December 31
						2023
						$856,281
						$171,256 15,463 (4,489) (989) (70,828) 110,413 -
						110,413 70,828
						$181,241
						Balance -ending
	$6,653 1,926 1,386 3,229	$(1,915) (1,926) (1,386) 261		$- - - -		$4,738 - - 3,490
	$13,194	$(4,966)		$-		$8,228

• 78 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

		Recognized	Recognized in
	Balance	in profit and	other profit	Balance
	-ending	loss	and loss	-ending
For the years ended December 31, 2024
Deferred income tax liabilities
Unrealized gain on financial asset
valuation	$-	$22,693	$-	$22,693
Unrealized foreign exchange gain	-	2,032	-	2,032
Unrealized long-term equity	674,593	(106,677)	-	567,916
investment income
Total	$674,593	$(81,952)	$-	$592,641
For the years ended December 31, 2023
Deferred income tax assets
Unrealized inventory loss in valuation	$6,185	$468	$-	$6,653
Unrealized financial assets and
liabilities loss in valuation	15,907	(13,981)	-	1,926
Unrealized exchange losses	804	582	-	1,386
Financial and tax difference of
property, plant and equipment	2,969	260	-	3,229
Total	$25,865	$(12,671)	$-	$13,194
Deferred income tax liabilities
Unrealized long-term equity
investment income	$616,436	$58,157	$-	$674,593

(E) Unrecognized deferred income tax assets:

The Company’s unrecognized deferred income tax assets were NT$0 as of December 31, 2024 and 2023 respectively.

(27) Earnings per share

(A) Basic earnings per share

The basic earnings per share are calculated by dividing the profit and loss attributable to the company’s common stock shareholders by the outstanding weighted average common stock shares in the current period as follows:

• 79 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Net profit attributable to the company’s common stock shareholders Beginning Outstanding Shares Issuance of new shares through cash capital increase (Note 1) Employee stock option – subscribing issue new shares (Note 2) Conversion of convertible bonds into common shares (Note 2) Outstanding weighted average shares Basic earnings per share (after tax) (NTD)	For theyears ended December 31,	For theyears ended December 31,
	2024 $1,064,324 190,844,298 shares 12,663,934 677,541 1,258,506 205,444,279 shares $5.18	2023
		$675,040
		190,654,298 shares - 7,288 -
		190,661,586 shares
		$3.54

Note 1: The number of shares outstanding is calculated from the date of the capital increase.

Note 2: Calculated based on the period of outstanding shares for each subscription or conversion.

(B) Diluted earnings per share

The diluted earnings per share are calculated by having the dilutive potential common stock share effect adjusted to the profit and loss attributable to the common stock shareholders of the company divided by the dilutive potential common stock share effect adjusted to the outstanding weighted average shares of the period as follows:

• 80 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Net profit to the company’s common stock shareholders Add: The impact of assuming the conversion of convertible bonds on net income. Adjusted net profit to the company’s common stock shareholders Outstanding weighted average shares Add: Potential common stock share effect Employee stock option hypothesis -subscribing new shares (Note) The additional shares resulting from the assumed conversion of convertible bonds. Employee Remuneration hypothesis –issuing new shares Adjusted weighted average shares Diluted basic earnings per share (after tax) (NTD)	For theyears ended December 31,	For theyears ended December 31,
	2024 $1,064,324 12,395 $1,076,719 205,444,279 shares 3,593,489 12,102,794 380,836 221,521,398 shares $4.86	2023
		$675,040 -
		$675,040
		190,661,586 shares 2,445,783 - 400,752
		193,508,121 shares
		$3.49

Note ： The Company issued employee stock options In June 2023 and August 2022. Due to their anti-dilutive nature, they were not included in the calculation of diluted earnings per share for the year 2023.

(28) Reconciliation of liabilities from financing activities

Accountingitem	Balance -beginning	Cash flow		Changes in non-cash	Changes in non-cash
			Change in exchange rate	Recognition of interest expense	Other	Balance -ending
			$- -	$- 14,781	$- (398,953)	$500,000 750,731
Short-term loan Bonds Payable Total	$1,210,000 -
	$1,210,000	$424,903	$-	$14,781	$(398,953)	$1,250,731

• 81 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Accountingitem	Balance -beginning	Cash flow		Changes in non-cash	Changes in non-cash
			Change in exchange rate	Recognition of interest expense	Other	Balance -ending
			$- -	$- -	$- -	$1,210,000 -
Short-term loan Long-term borrowings (including current portion) Total	$1,070,00 79,032
	$1,149,032	$60,968	$-	$-	$-	$1,210,000

(29) Lease

Other lease information is as follows:

Lease Other lease information is as follows:
Short-term lease expense Low-value asset lease expenses Changes in lease expense excluded from the measurement of a lease liability Total cash outflow of all leases Lease liabilities interest	Years Ended	December 31
	2024	2023
	$2,094	$1,870
	$-	$-
	$-	$-
	$2,094	$1,870
	$-	$-

The Company elects to recognize an exemption for short-term leases of dormitories, offices, and similar assets, and does not recognize related right-of-use assets and lease liabilities for such leases.

7. RELATED PARTY TRANSACTIONS

(1) Name of related party and relationship

Name of related party Relationship with the Group G-SHANK ENTERPRISE (M) SDN. BHD. The subsidiary of the Company. (MALAYSIA G-SHANK) The subsidiary of the Company. G-SHANK, Inc. SHANGHAI G-SHANK PRECISION The subsidiary of the Company. MACHINERY CO., LTD. (SHANGHAI G-SHANK)

• 82 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Name of related party Relationship with the Group GREAT-SHANK CO., LTD. The subsidiary of the Company. (THAILAND G-SHANK) G-SHANK JAPAN CO., LTD. The subsidiary of the Company. (JAPAN G-SHANK) XIAMEN G-SHANK PRECISION MACHINERY The subsidiary of the Company. CO., LTD.(XIAMEN G-SHANK) QINGDAO G-SHANK PRECISION SDN.BHD. The subsidiary of the Company. (QINGDAO G-SHANK) G-SHANK PRECISION MACHINERY The subsidiary of the Company. (SUZHOU) CO., LTD.(SUZHOU G-SHANK) G-LONG PRECISION MACHINERY (DONG The subsidiary of the Company. GUAN) CO., LTD.(DONG GUAN G-LONG) TIANJIN G-SHANK PRECISION MACHINERY The subsidiary of the Company. CO., LTD.(TIANJIN G-SHANK) PT INDONESIA G-SHANK PRECISION The subsidiary of the Company. (INDONESIA G-SHANK) SHENZHEN G-SHANK PRECISION SDN.BHD. The subsidiary of the Company. (SHENZHEN G-SHANK ) SHENZHEN G-BAO PRECISION SDN.BHD. The subsidiary of the Company. (SHENZHEN G-BAO) SUNFLEX TECHNOLOGY CO., LTD. Investee companies accounted for (SUNFLEX) using the equity method by the Company KUAI LUNG PRECISION INDUSTRY CO., LTD. The chairman of KUAI LUNG is (KUAI LUNG) the general manager of G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD., the subsidiary of the company.

• 83 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(2) Major transactions with related parties

(A) Purchases

or transactions with related parties Purchases
Relatedpartycategory/name Subsidiaries JAPAN G-SHANK SUZHOU G-SHANK SHANGHAI G-SHANK TIANJIN G-SHANK DONG GUAN G-LONG SHENZHEN G-SHANK THAILAND G-SHANK SHENZHEN G-BAO Subtotal Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	For theyears ended December 31,
	2024 $2,476 722 291 83 13 - - - 3,585 8 161 $3,754	2023
		$470 1,478 279 66 - 694 167 77
		3,231
		314
		9,465
		$13,010

The aforementioned purchase is mostly for molds and parts with special specifications from one single supplier. Therefore, there is no other purchase price available for comparison. The payment term from such a single supplier is OA 60-90 days; while other suppliers are with a payment term of OA 0-120 days.

• 84 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(B) Sales

Sales
Relatedpartycategory/name Subsidiaries G-SHANK, Inc. MALAYSIA G-SHANK THAILAND G-SHANK JAPAN G-SHANK SHENZHEN G-BAO INDONESIA G-SHANK SHANGHAI G-SHANK QINGDAO G-SHANK Subtotal Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	For theyears ended December 31,
	2024 $4,649 3,641 2,691 1,697 1,282 1,054 473 25 15,512 13 49 $15,574	2023
		$5,671 5,819 4,595 2,899 2,221 784 310 27
		22,326
		- 56
		$22,382

The products sold in the preceding paragraph are mostly equipment, tools, and materials used for production with the price negotiated by both parties by adding a percentage to the cost or by the cost price at the time of trade depending on the type of product traded; also, taking into account the expenses and exchange rate risk. The specifications of products that are sold to related parties are exclusive; therefore, there is no other customer available for comparison. The payment term of sales to a related party is OA 30-90 days; while the general customer is with a payment term of OA 30-150 days.

• 85 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(C) Management and technical service income

The Company had collected management and technical service fees from the subsidiaries - SHANGHAI G-SHANK, TIANJIN G-SHANK, QINGDAO G-SHANK, THAILAND G-SHANK, MALAYSIA G-SHANK , SHENZHEN G-SHANK, XIAMEN G-SHANK, DONG GUAN G-LONG, SHENZHEN G-BAO, and SUZHOU G-SHANK for an amount of NT$57,059 thousand and NT$60,896 thousand in 2024 and 2023, respectively and had them booked in the “ non-operating income and expenses - other income ” account.

(D) Processing expense

The company had contracted the affiliated enterprise, SUNFLEX TECHNOLOGY CO., LTD., for product proceeding with a processing expense of NT$15,127 thousand and NT$14,139 thousand incurred for the years ended December 31, 2024 and 2023, respectively.

(E) Property Transactions

In the fiscal year 2024, the company sold real estate, factory buildings, equipment, and classified assets to its subsidiary, SHANGHAI G-SHANK, for a selling price of NT$587 thousand, resulting in a net gain of NT$287 thousand from the sale. The gains were recorded under non-operating income and expenses -other gains and losses -gain on disposal of real estate, factory buildings, and equipment NT$267 thousand and other income NT$20 thousand.

(F) Others

• (a) The Company entrusted its affiliated enterprise, SUNFLEX THCHNOLOGY, to purchase employee uniforms, with the amounts being NT$84 thousand and NT$143 thousand in 2024 and 2023, respectively.

• (b) The Company had paid Japan G-SHANK, the subsidiary, for the management and technical support services and overseas information collection services for an amount of NT$530 thousand in 2023.

• 86 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(G) Claims/obligations arising from the aforementioned transactions

	Relatedpartycategory/name Accounts receivable-related party Subsidiaries G-SHANK, Inc. THAILAND G-SHANK SHENZHEN G-BAO INDONESIA G-SHANK MALAYSIA G-SHANK SHANGHAI G-SHANK JAPAN G-SHANK QINGDAO G-SHANK Subtotal Affiliated enterprises SUNFLEX Total Other receivable-related party Subsidiaries THAILAND G-SHANK SHANGHAI G-SHANK SHENZHEN G-BAO G-SHANK, Inc. JAPAN G-SHANK Total Accounts payable-related party Subsidiaries SHANGHAI G-SHANK SUZHOU G-SHANK DONG GUAN G-LONG TIANJIN G-SHANK JAPAN G-SHANK Subtotal	December 31,2024 $1,443 911 532 506 375 104 67 - 3,938 - $3,938 $1,718 593 267 158 24 $2,760 $297 256 13 - - 566	December 31,2023
(a) (b) (c)			$216 799 141 - 782 49 10 26
			2,023
			3
			$2,026
			$874 - - 66 10
			$950
			$133 618 - 13 -
			764

(Continuing to next page)

• 87 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

	Relatedpartycategory/name Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total Other payable-related party Subsidiaries JAPAN G-SHANK SHENZHEN G-BAO SHENZHEN G-SHANK SHANGHAI G-SHANK QINGDAO G-SHANK Subtotal Affiliated enterprises SUNFLEX Total	December 31,2024 - 47 $613 $26 - - - - 26 2,789 $2,815	December 31,2023
(d)			195
			1,082
			$2,041
			$70 30 19 9 4
			132
			2,574
			$2,706

The claims/obligations between the Company and the related party are without collateral or guarantee received or provided, and a conclusion is made after thorough evaluations that it is no need to appropriate allowance for loss for the Company’s claims against the related parties.

(H) Information on total remunerations of key management personnel

The total remunerations to the Company’s directors, general manager, vice general manager, and other managerial officers are summarized as follows:

Items Short-term benefits Retirement benefits Share-based payment Total	For theyears ended December 31,	For theyears ended December 31,
	2024 $12,456 387 6,239 $19,082	2023
		$12,259 353 72
		$12,684

• 88 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

The remuneration to key management personnel is determined by the Company’s Remuneration Committee with reference to the general standards of the industry and taking into account personal performance, the company operating performance, and related future risks.

8. MORTGAGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS

The Company had the following significant contingent liabilities and unrecognized contractual commitments not yet included in the aforementioned the parent company only financial report as of December 31, 2024:

• (1) The company had had a guaranteed loan from financial institutions for the tariff guarantee amount of NT$500 thousand on December 31, 2024.

• (2) The company has an outstanding unused letter of credit balance of RMB 3,610 thousand.

10. SIGNIFICANT DISASTER LOSS

None.

• 89 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

11. MATERIAL POST EVENTS

• (1) As stated in Notes 6.(14)(C) and (E) of the individual financial statements, in the fourth quarter of 2024, a total of 263 thousand shares were subscribed through the exercise of employee stock warrants, and 58 thousand shares were converted from convertible bonds by bondholders (recorded under the "advance receipts for share capital" account). Subsequently, on March 7, 2025, the Board of Directors resolved to set the capital increase base date as March 10, 2025.

• (2) On March 7, 2025, the company’s board of directors proposed the earnings distribution plan for the year 2024 and the proposal to distribute cash to shareholders from capital surplus (subject to approval at the annual general meeting scheduled for June 13, 2025). Please refer to Note 6.(18)(C) of the individual financial statements.

• (3) On February 17, 2025, a total of 642 thousand shares were subscribed through the exercise of employee stock warrants. As of the approval date of the individual financial statements, the registration process for these shares has not yet been completed.

12. OTHERS

• (1) Capital management

• (A) The Company’s capital management is aimed to ensure the Company’s ongoing concern, to continue to provide remuneration to shareholders and benefits to shareholders, and to maintain the best capital structure in order to reduce capital costs and to set the price of products or services according to the relative risk levels in order to provide shareholders with sufficient remuneration.

• (B) The Company bases on the risk ratio to set the capital stock; also, manage and adjust the capital structure appropriately in accordance with the changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the dividends paid to shareholders, refund shareholders by de-capitalization, and issue new shares or sell assets to settle liabilities.

• 90 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (2) Financial risk management

• (A) The Company's main financial instruments include cash and cash equivalents, financial assets measured at fair value through profit or loss, other financial assets, financial assets measured at fair value through other comprehensive income, short-term loans, bonds payable, long-term loans, and accounts receivable and accounts payable arising from operating activities. These financial instruments are utilized to manage the Company's working capital requirements. As a result, the Company's operations are subject to various financial risks, including market risks (such as foreign exchange risk, interest rate risk, and other price risks), credit risk, and liquidity risk. The overall objective of the Company's financial risk management is to mitigate potential adverse impacts arising from fluctuations in financial markets on the Company's exposure to financial risks.

• (B) The Finance Department of the Company is responsible for identifying, evaluating, and hedging financial risks through close contact with the business units of the Company, planning and coordinating the access to domestic and international financial markets, and manages the Company’s operation related financial risks by analyzing the degree of risk exposure; also, the Company’s board of directors is responsible for supervision and management. In addition, the Group uses derivative financial instruments to hedge risk exposure at an appropriate time to reduce the impact of financial risks. The Company has the procedures for derivative financial instrument transactions stipulated that have been approved by the board of directors and the shareholders meeting. The said procedures include trade principles and policies, risk management measures, internal audit systems, regular evaluation methods, and handling of nonconformities, of which, the risk management includes credit, market prices, liquidity, cash flow, operations, law, etc.

(C) The main risks of the Company’s financial instruments are as follows:

(a) Market risk

The main market risks of the Company are exchange rate risks arising from operating activities, such as sales or purchases denominated in non-functional currencies, and interest rate risks or price risks arising from financial instruments transactions.

• 91 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(i) Exchange rate risk

• (01) The Company evaluates and analyzes the overall exchange rate risk. When the listed assets and liabilities and future business transactions are exposed to significant exchange rate risk, within the permitted range of the policy, manage risk through forwarding exchange contract.

The Company’s financial assets and liabilities denominated in non-functional currencies with significant risk exposure of exchange rate fluctuations on the reporting date, and sensitivity analysis information are as follows, sensitivity analysis is regarding the impact of the Company’s financial assets and liabilities denominated in non-functional currencies appreciated by 5% against a respective foreign currency that is the functional currency of each overseas subsidiary on the net income before tax or equity on the reporting date; also, when it depreciated by 5%, it will affect the net income before tax and equity reversely:

Foreign currency (Thousand) Exchange rate December 31, 2024 Financial assets Monetary items USD $17,470 32.78 JPY 17,489 0.21 RMB 2,096 4.478 Non-monetary items USD $60,620 32.78 SGD 2,558 24.14 Derivative financial instrument:None.	Foreign currency (Thousand)	Exchange rate	Book amount	Sensitive analysis	Sensitive analysis	Sensitive analysis
				Change ratio	Increase/ decrease in net income before tax	Decrease in Equity
			$572,682 3,673 9,388 $1,987,129 61,750	5% 5% 5% 5% 5%	$28,634 184 469 $99,356 3,088	$- - - $- -

(Continuing to next page)

• 92 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

(Continued from the last page)
Foreign currency (Thousand) Exchange rate Book amount	Sensitive analysis
	Change ratio Increase/ decrease in net income before tax Decrease in Equity
December 31, 2024 Financial liabilities Monetary items USD $128 32.78 $4,211 JPY 362,877 0.21 76,204 Non-monetary items: None Derivative financial instrument:None December 31, 2023 Financial assets Monetary items USD $22,653 30.71 $695,682 JPY 11,189 0.2174 2,432 RMB 3,221 4.329 13,942 Non-monetary items USD $42,976 30.71 $1,319,783 Derivative financial instrument: USD $11 30.71 $348 (Note) Financial liabilities Monetary items USD $118 30.71 $3,612 JPY 2,332 0.2174 507	5% $211 $- 5% 3,810 - 5% $34,784 $- 5% 122 - 5% 697 - 5% $65,989 $- 5% $17 $- 5% $181 $- 5% 25 -

Non-monetary items: None

Derivative financial instrument: None

• 93 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note: The aforementioned derivatives information refers to the book amount of the SWAP contracts that have not yet been settled on each reporting day. Please refer to Note 6.(2) of the parent company only financial report for the operation position, nominal principal, and due date.

The exchange profit and loss (including realized and unrealized) of the Company’s monetary items converted to functional currencies, and the exchange rate for the conversion to the reporting currency of the parent company only financial report are as follows:

Functional currency NTD	2024 Exchange profit(loss) Average exchange rate $52,760 -	2023	2023
	Exchange profit(loss) $52,760	Exchange profit(loss) $11,525	Average exchange rate
			-

• (02) In addition, the SWAP contracts held by the Company are a financial hedging operation intended to hedge exchange rate risk arising from the change (mainly including sales and purchases denominated in non-functional currencies, such as USD) in the exchange rate of foreign claims. Regarding the aforementioned SWAP contracts, the profit and loss arising from changes in the exchange rate will generally offset the profit and loss of the hedged project, so there is no significant market risk. As for the aforementioned hedged project, the net position of foreign currency claims that are not effectively hedged is linked to the market risk of changes in exchange rates, of which, the depreciation or appreciation of USD, RMB, MYR, or JPY will result in the risk of exchange profit or loss.

(ii) Interest rate risk

The Company's interest rate risk includes fair value interest rate risk arising from fixed-rate financial instruments and cash flow interest rate risk arising from floating-rate financial instruments. Fixed-rate financial instruments include time deposits, certain financial assets at fair value through profit or loss – current, other financial assets – current, bank loans, and corporate bonds payable. Floating-rate financial instruments include demand deposits. The Company assesses and analyzes interest rate risk on a dynamic basis and manages its exposure by maintaining an appropriate mix of fixed and floating interest rate instruments. The Company does not expect to be exposed to any

• 94 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

significant interest rate risk.

(01) The Company’s financial assets and liabilities with fixed and floating

interest rates

interest rates
Fixed interest rate Financial assets Financial liabilities Net amount Floating interest rate Financial assets Financial liabilities Net amount	December 31,2024 $2,615,806 (1,250,731) $1,365,075 $326,250 - $326,250	December 31,2023
		$1,831,380 (1,210,000)
		$621,380
		$101,391 -
		$101,391

(02) Sensitivity Analysis

For the Company’s financial assets and liabilities with a floating interest rate, if the interest rate of market deposits or loans increased by 0.5% on the reporting date, assuming that it is held for an accounting year and all other factors are given, it would cause the Company’s net income before tax increased by NT$1,631 thousand and NT$507 thousand for the years of 2024 and 2023, respectively.

Embedded derivative financial instruments arising from convertible bonds within the Company’s fixed-rate financial liabilities are subject to fair value interest rate risk. If the risk-free interest rate as of the reporting date had increased or decreased by 0.1%, with all other risk variables held constant, there would have been no impact on the Company’s profit before tax for the year 2024.

(iii) Other price risks

The Company’s beneficiary certificates and equity securities, such as financial assets measured at fair value through profit and loss and financial assets measured at fair value through other comprehensive profit and loss, are with price risk resulted. The Company manages the price risk of beneficiary

• 95 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

certificates and equity securities by holding investment portfolios with different risks.

Sensitivity Analysis

For the Company’s financial assets measured at fair value through profit and loss and financial assets measured at fair value through other comprehensive profit and loss, the impact of the beneficiary certificates and equity securities with a 5% price increase on the net income before tax or equity on the reporting date is as follows; also, the beneficiary certificates and equity securities with a 5% price decrease will affect the net income before tax or equity reversely:

equity reversely:
Increase in net income before tax Financial assets measured at fair value through profit and loss Increase in equity Financial assets measured at fair value through other comprehensive profit and loss	December 31, 2024 $109,699 $22,202	December 31, 2023
		$65,989
		$16,045

The embedded derivative financial instruments arising from the company's issuance of convertible bonds are subject to price risk due to fluctuations in the company's stock price. If the company's stock price increases or decreases by 10% as of the reporting date, assuming all other risk variables remain unchanged, the company's pre-tax net income for the year 2024 would increase by NT$624 thousand or decrease by NT$858 thousand, respectively.

(b) Credit risk

• (i) The Company’s credit risk is mainly the potential impact of the counterparty or other parties’ failure in performing financial assets contracts, which includes the concentration of credit risks, constituents, contract amounts, and other receivables of the financial assets transactions of the Company. In order to reduce credit risk, the Company has dealt with all well-known domestic and foreign financial or securities institutions for bank deposits, financial assets measured at fair value through profit and loss, financial assets measured at amortized cost, some other financial assets, which are with low credit risk. For receivables, the Company continues to evaluate the financial

• 96 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

status of the counterparties, historical experience, and other factors to adjust the trade amount and trade method of individual customers appropriately in order to improve the Company’s credit-granting quality.

• (ii) The Company evaluates and analyzes the overdue or impairment of financial assets on the balance sheet date. The Company’s credit risk exposure amount is as follows:

is as follows:
Credit risk exposure amount Allowance for losses-measured by the expected credit losses amount for 12-month Allowance loss-measured by the expected credit loss amount throughout the duration - Accounts receivable Total	December 31, 2024 $- 174 $174	December 31, 2023
		$- 622
		$622

The aforementioned credit risk exposure amounts are all from the recovery of accounts receivable. The Company has continuously evaluated the losses that affect the estimated future cash flow of accounts receivable with appropriate allowance accounts appropriated. Therefore, the book amount of accounts receivable is with credit risk properly considered and reflected. In addition, the Company does not hold collateral for the impairment of financial assets that is with an allowance account appropriated.

• (iii) The expected credit loss of the Company’s notes and accounts receivable as of December 31, 2024 and 2023 is analyzed as follows:

December 31, 2024 Not overdue 30 days overdue 31-90 days overdue 91-180 days overdue 181-365 days overdue Total	Total book amount of notes and accounts receivable $501,373 29,156 136 - - $530,665	Reserve matrix (loss rate) 0.02% 0.33% 1.96% - -	Allowance for loss (expected credit loss throughout the duration)
			$76 96 2 - -
			$174

• 97 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

December 31, 2023 Not overdue 30 days overdue 31-90 days overdue 91-180 days overdue 181-365 days overdue Total	Total book amount of notes and accounts receivable Reserve matrix (loss rate) $408,488 0.01% 20,117 0.17% 7,030 7.65% 34 1.58% - 0.00% $435,669	Allowance for loss (expected credit loss throughout the duration)
		$49 34 538 1 -
		$622

• (iv) The concentration of credit risk of accounts receivable is analyzed as follows:

December 31, 2024 December 31, 2023 The accounts receivable ratio of the top five customers 44.11% 47.40%

(c) Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support all contractual obligations for business operations and to minimize the impact of cash flow fluctuations. Bank loans are an important source of liquidity to the Company. The management ensures the repeating bank loans through capital structure management, monitoring the use of bank credit line, and complying with loan contract terms to reduce liquidity risk. The Company’s stock investment under the financial assets measured at fair value through other comprehensive profit and loss is exposed to liquidity risk due to lack of an active market. In addition, the exchange rate of the Company’s SWAP contract has been determined; therefore, there is no significant cash flow risk.

(i) Bank loan amount

Bank loan amount
Short-term loan	December 31,2024 $2,253,334	December 31,2023
		$3,059,500

• 98 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(ii) Maturity analysis of undiscounted financial liabilities

December 31, 2024 Non-derivative financial liabilities Short-term loan Accounts payable Accounts payable -related party Other payables Other payables -related party Bonds payable Total	Less than 1year	More than 1-2years $- - - - - - $-	More than 2-5years	Over 5years	Total
	$501,575 171,833 613 413,520 2,815 -		$- - - - - 780,300	$- - - - - -	$501,575 171,833 613 413,520 2,815 780,300
	$1,090,356		$780,300	$-	$1,870,656

Derivative financial liabilities: None

December 31, 2023 Non-derivative financial liabilities Short-term loan Accounts payable Accounts payable -related party Other payables Other payables -related party Total	$1,216,423 149,351 2,041 275,060 2,706	$- - - - - $-	$- - - - -	$- - - - -	$1,216,423 149,351 2,041 275,060 2,706
	$1,645,581		$-	$-	$1,645,581

Derivative financial liabilities: None

(D) Fair value of financial instruments

Except for the items listed in the table below, the carrying amounts of the Group’s financial instruments approximate their fair values.

Bonds payable	December 31,2024	December 31,2024
	Book value	Fair value
	$750,731	$747,840

• 99 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (a) The methods adopted for the fair value of financial instruments and the assumptions adopted for the use of evaluation techniques

• (i) The fair value of short-term financial instruments is estimated according to the book value on the balance sheet. Such financial instruments are with a short maturity date; also, the present value of future cash flows discounted at the market interest rate is close to the book amount; therefore, the book amount should be a reasonable basis for estimating the fair value. This method is applied to cash and cash equivalents, net notes receivable, net accounts receivable (including related parties), other receivables (including related parties), short-term loans, accounts payable (including related parties), and other payables (including related parties).

• (ii) Financial assets measured at fair value through profit and loss are those with active market quotations, and therefore, the fair value is determined based on the market price. For foreign bonds, the fair value is determined based on the quotations on the reporting date through Bloomberg, Reuters or other brokers and trading platforms.

• (iii) Financial assets measured at fair value through other comprehensive income are equity instrument investments without active market quotations. The fair value is estimated using the Market Approach, which is based on the prices derived from the market transactions of the same or comparable equity instruments and other relevant information.

• (iv) The fair value of other financial assets and other noncurrent assets-restricted assets is estimated according to the book amount, since the present value of future cash collected and discounted at the market interest rate is close to the book amount; therefore, the book amount should be a reasonable basis for estimating the fair value.

• (v) The evaluation of derivative financial instruments is based on the evaluation models that are widely accepted in the market, such as, discount method and option pricing model.

• (vi) Bonds payable are measured at fair value based on the discounted value of market interest rates for corporate bonds with similar terms and conditions.

• 100 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(b) Classification of fair value measurement

All assets and liabilities measured or disclosed at the fair value are classified to the respective fair value level according to the lowest level input value critical to the overall fair value measurement. The input values for each level are as follows:

• Level 1: The market price (unadjusted) available for the same asset or liability on the measurement date;

• Level 2: Direct or indirect observable input values of assets or liabilities, except for those quotations in Level 1;

Level 3: Unobservable input value of assets or liabilities;

The assets and liabilities that were originally measured at fair value on a repetitive basis and recognized on the balance sheet should be reassessed for classification at the end of each reporting period to determine whether there is a swift between the levels of the fair value hierarchy.

• (i) The classification of financial instruments measured at fair value and recognized in the balance sheet

The Group does not have assets and liabilities measured at fair value on a non-repetitive basis. The fair value level of assets and liabilities measured at fair value on a repetitive basis is as follows:

December 31, 2024	Lever 1	Level 2	Level	3	Total
Assets:
Financial assets measured	at fair value	through profit	and loss
Funds	$145,109	$-	$-		$145,109
Bonds	-	2,048,879		-	2,048,879
Embedded derivative
financial
instruments	-	-	1,951		1,951
Financial assets measured	at fair value	through other	comprehensive profit
and loss
Unlisted stocks	-	-	444,031		444,031
Liabilities:None

• 101 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

December 31, 2023 Assets: Financial assets measured at fair value through profit and loss Bonds Swap contract Financial assets measured at fair value through other comprehensive profit and loss Unlisted stocks Liabilities:None	Lever 1 $- - -	Level 2 $1,319,783 348 -	Level 3 $- - 320,903	Total
				$1,319,783 348 320,903

• (ii) the company had no significant transfers between Level 1 and Level 2 of the fair value hierarchy in 2024 and 2023.

• (iii) The adjustment of the fair value measurement in Level 3 is as follows:

• (01) Financial assets measured at fair value through profit or loss

Item Balance -beginning Additions during the period Recognized in profit or loss during the period Reclassification Balance -ending	Embedded derivative financial instruments	Embedded derivative financial instruments
	For theyears ended December 31,
	2024 $- 300 2,247 (596) $1,951	2023
		$- - - -
		$-

• 102 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (02) Financial assets measured at fair value through profit or loss

Item Balance -beginning Total profit Recognized in other comprehensive profit and loss Balance -ending	Equityinstrument investment – Unlisted stocks	Equityinstrument investment – Unlisted stocks
	For theyears ended December 31,
	2024 $320,903 123,128 $444,031	2023
		$262,023 58,880
		$320,903

In 2024 and 2023, the Company recognized total gains of NT$2,247 thousand and NT$0, respectively, in profit or loss arising from changes in the fair value of Level 3 financial instruments, which were presented under “ Other gains and losses ” in non-operating income and expenses. In the same years, the Company recognized total gains of NT$123,128 thousand and NT$58,880 thousand, respectively, in other comprehensive income arising from changes in the fair value of Level 3 financial instruments, which were presented under “ Unrealized gains on equity instruments measured at fair value through other comprehensive income. ”

• (iv) The evaluation techniques and assumptions adopted to measure the fair value of financial assets.

• (01) The fair value of financial assets with standard terms and conditions that are traded in an active market is determined by referring to market price.

• (02) The foreign bonds are determined by quotations on the reporting date through Bloomberg, Reuters or other brokers and trading platforms.

• (03) The exchange transaction contracts are based on the discounted cash flow methods. Future cash flows are estimated at the forward exchange rate observable on the reporting date and the exchange rate set in the contract, and discounted at a discount rate that can reflect the credit risk of each counterparty.

• (04) The liability component of the embedded derivative financial instrument was measured at fair value using a binomial convertible bond pricing model.

• (05) The fair value of domestic unlisted equity instrument investment is evaluated with the Market Approach.

• 103 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (v) Quantitative information on the fair value measurement of significant unobservable input values (Level 3):

Evaluation technique Significant unobservable input value Quantitative information Relationship between the input value and fair value December 31,2024 Financial assets Financial assets measured at fair value through profit and loss: Embedded Derivative Financial Instruments Binomial Tree Convertible Bond Valuation Model Volatility 39.55% The higher the volatility, the higher the estimated fair value. Financial assets measured at fair value through other comprehensive profit and loss: Stock Market Approach Similar company’s stock price-to-net value ratio 3.59 The higher the stock price-to-net value ratio of similar companies, the higher the estimated fair value December 31,2023 Financial assets Financial assets measured at fair value through other comprehensive profit and loss: Stock Market Approach Similar company’s stock price-to-net value ratio 2.67 The higher the stock price-to-net value ratio of similar companies, the higher the estimated fair value

Sensitivity analysis of the relationship between the input value and fair value

If the volatility increases (decreases) by 5%, the profit or loss of the Company would increase by NT$624 thousand / decrease by NT$858 thousand. When the stock price-to-net value ratio of similar companies increases (decreases) by 5%, the equity of the Company will increase/decrease by NT$22,202 thousand. When the stock price-to-net value ratio of similar companies increases (decreases) by 5%, the equity of the Company will increase/decrease by NT$16,045 thousand.

• (vi) The evaluation process for the fair value measurement of significant unobservable input values (Level 3):

The Accounting Department of the Company is responsible for fair value verification, using independent sources of information to bring the evaluation results closer to the market, confirming that the data source is independent, reliable, consistent with other data resources, and representing executable prices. Also, analyze the value change in the assets and liability that must be re-measured or re-evaluated on the reporting date according to the Company’s accounting policies to ensure the reasonableness of the evaluation result.

• 104 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

13. SUPPLEMENTARY DISCLOSURE MATTERS

(1) Information on major transactions

Supplementary information of the company and the subsidiaries for the year ended December 31, 2024 is disclosed as follows:

(A) Loans to others:

															Unit: NT$ Thousand / RMB	Unit: NT$ Thousand / RMB
No	Lending company	Borrower	Accounting item	Related party	Maximum amount -current	Balance – ending (12.31.2022) (Note 2)	Actual amount implemented (Note 3)	Interest rate range	Nature of loan	Transac -tion amount	Reason for short-term loan	Allowance for bad debt appropriated	Collateral		Loaning of fund limit to individual (Note 1)	Total loaning of fund limit (Note 1)
													Name	Value
1	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD	Other accounts receivable -related party	Yes	$44,780 (RMB10,000,000)	44,780 (RMB10,000,000)	44,780 (RMB10,000,000)	-	Short -term loan	-	Business operation of affiliated enterprise	-	-	-	$161,804 (RMB 36,238,301)	$649,216 (RMB 144,953,204)

Note 1: The total loaning of fund limit refers to an amount equivalent to 40% of the current net value of the lending company. The loaning of fund limit to individual refers

to an amount equivalent to 10% of the current net value of the lending company. The current net value is based on the latest financial statements audited by an independent auditor.

Note 2: It is the loaning of fund amount resolved by the company’s board of directors.

Note 3: It is the actual outstanding loan amount at yearend.

(B) Provision of endorsements and guarantees to others: None

• 105 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(C) Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures):

Unit: NT$ Thousand / RMB / THB / USD

Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December	31,2024	31,2024	Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRIS E CO., LTD.	Stocks	REEL MASK INDUSTRY CO., LTD.	None	Financial assets-noncurrent measured at fair value through other comprehensiveprofit and loss	3,392,713	$444,031	9.98	$444,031
	Funds	FSITC Taiwan Money Market	None	Financial assets-current measured at fair value through profit and loss	1,879,770	30,014	-	30,014
	Funds	JIH SUN MONEY MARKET FUND	None	Financial assets-current measured at fair value through profit and loss	2,913,946	45,080	-	45,080
	Funds	CTBC Hua Win Money Market Fund	None	Financial assets-current measured at fair value through profit and loss	6,101,334	70,015	-	70,015
	Bonds	BCS-Barclays Plc bonds (2022) BACR 8 PRRP(I)	None	Financial assets-current measured at fair value through profit and loss	2,290,000	77,868 (USD 2,375,486)	-	77,868 (USD 2,375,486)
	Bonds	DB-Deutsche Bank AG bonds DB 7.5 PERP(I)	None	Financial assets-current measured at fair value through profit and loss	1,600,000	52,386 (USD 1,598,096)	-	52,386 (USD 1,598,096)
	Bonds	HSBC Holding bonds HSBC 6.95 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	4,600,000	150,636 (USD 4,595,354)	-	150,636 (USD 4,595,354)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	2,830,000	98,980 (USD 3,019,525)	-	98,980 (USD 3,019,525)
	Bonds	UBS Group Bonds UBS 6.85 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	3,000,000	97,603 (USD 2,977,530)	-	97,603 (USD 2,977,530)

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

						Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD
Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December 31,2024			Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRIS E CO., LTD.	Bonds	UBS Group Bonds UBS 7.75 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	1,440,000	$49,222 (USD 1,501,589)	-	$49,222 (USD 1,501,589)
	Bonds	UBS Group Bonds UBS 9.25 PERP (10Y) (I)	None	Financial assets-current measured at fair value through profit and loss	3,100,000	116,906 (USD 3,566,395)	-	116,906 (USD 3,566,395)
	Bonds	UBS Group Bonds UBS 9.25 PERP (5Y) (I)	None	Financial assets-current measured at fair value through profit and loss	1,800,000	63,906 (USD 1,949,544)	-	63,906 (USD 1,949,544)
	Bonds	BCS-Barclays Plc bonds (2022) BACR 8 PERP(II)	None	Financial assets-current measured at fair value through profit and loss	800,000	27,203 (USD 829,864)	-	27,203 (USD 829,864)
	Bonds	BCS-Barclays Plc bonds BACR 9.625 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	940,000	33,975 (USD 1,036,463)	-	33,975 (USD 1,036,463)
	Bonds	BNP Paribas bonds BNP 8.5 PERP	None	Financial assets-current measured at fair value through profit and loss	800,000	27,366 (USD 834,840)	-	27,366 (USD 834,840)
	Bonds	DB-Deutsche Bank AG bonds DB 7.5 PERP(II)	None	Financial assets-current measured at fair value through profit and loss	800,000	26,193 (USD 799,048)	-	26,193 (USD 799,048)
	Bonds	HSBC Holding bonds HSBC 6.5 PERP	None	Financial assets-current measured at fair value through profit and loss	1,000,000	$32,615 (USD 994,960)	-	$32,615 (USD 994,960)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

						Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD
Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December 31,2024			Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRIS E CO., LTD.	Bonds	HSBC Holding bonds HSBC 6.875 PERP	None	Financial assets-current measured at fair value through profit and loss	3,000,000	$98,082 (USD 2,992,140)	-	$98,082 (USD 2,992,140)
	Bonds	HSBC Holding bonds HSBC 6.95 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	3,270,000	107,082 (USD 3,266,697)	-	107,082 (USD 3,266,697)
	Bonds	HSBC Holding bonds HSBC 8 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	1,150,000	39,553 (USD 1,206,603)	-	39,553 (USD 1,206,603)
	Bonds	ING Group NV INTNED 7.5 PERP	None	Financial assets-current measured at fair value through profit and loss	500,000	16,774 (USD 511,720)	-	16,774 (USD 511,720)
	Bonds	Mitsubishi UFJ Financial Group, Inc. (MUFG) MUFG8.2 PERP(I)	None	Financial assets-current measured at fair value through profit and loss	200,000	7,190 (USD 219,328)	-	7,190 (USD 219,328)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	2,608,000	91,216 (USD 2,782,658)	-	91,216 (USD 2,782,658)
	Bonds	Societe Generale bonds SOCGEN 8.5 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	1,160,000	37,955 (USD 1,157,877)	-	37,955 (USD 1,157,877)
	Bonds	UBS Group Bonds UBS 6.85 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	4,610,000	149,984 (USD 4,575,471)	-	149,984 (USD 4,575,471)
	Bonds	UBS Group Bonds UBS 7.75 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	5,030,000	171,936 (USD 5,245,133)	-	171,936 (USD 5,245,133)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

						Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD
Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December 31,2024			Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRIS E CO., LTD.	Bonds	UBS Group Bonds UBS 9.25 PERP (10Y) (II)	None	Financial assets-current measured at fair value through profit and loss	300,000	$11,314 (USD 345,135)	-	$11,314 (USD 345,135)
	Bonds	UBS Group Bonds UBS 9.625 PERP (5Y) (II)	None	Financial assets-current measured at fair value through profit and loss	1,000,000	35,503 (USD 1,083,080)	-	35,503 (USD 1,083,080)
	Bonds	BCS-Barclays Plc bonds BACR 9.625 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	2,990,000	108,010 (USD 3,295,010)	-	108,010 (USD 3,295,010)
	Bonds	HSBC Holding bonds HSBC 6.95 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	1,250,000	41,139 (USD 1,254,988)	-	41,139 (USD 1,254,988)
	Bonds	HSBC Holding bonds HSBC 8 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	787,000	27,070 (USD 825,799)	-	27,070 (USD 825,799)
	Bonds	Mitsubishi UFJ Financial Group, Inc. (MUFG) MUFG8.2 PERP(II)	None	Financial assets-current measured at fair value through profit and loss	300,000	10,794 (USD 329,277)	-	10,794 (USD 329,277)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	1,500,000	52,425 (USD 1,599,300)	-	52,425 (USD 1,599,300)
	Bonds	Societe Generale bonds SOCGEN 8.5 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	650,000	21,280 (USD 649,188)	-	21,280 (USD 649,188)
	Bonds	UBS Group Bonds UBS 6.85 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	598,000	19,469 (USD 593,934)	-	19,469 (USD 593,934)
	Bonds	UBS Group Bonds UBS 7.75 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	2,500,000	85,494 (USD 2,608,125)	-	85,494 (USD 2,608,125)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

						Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD	Unit: NT$Thousand / RMB / THB /USD
Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December 31,2024			Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRIS E CO., LTD.	Bonds	HSBC Holding bonds HSBC 5.25 PERP	None	Financial assets-current measured at fair value through profit and loss	1,500,000	$36,916 (SGD 1,529,250)	-	$36,916 (SGD 1,529,250)
	Bonds	UBS Group Bonds UBS 5.6 PERP	None	Financial assets-current measured at fair value through profit and loss	1,000,000	24,834 (SGD1,028,750)	-	24,834 (SGD1,028,750)
CHIN DE INVESTME NT CO., LTD.	Bonds	UBS Group Bonds UBS 6.85 PERP	None	Financial assets-current measured at fair value through profit and loss	540,000	17,568 (USD 535,955)	-	17,568 (USD 535,955)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	860,000	30,079 (USD 917,594)	-	30,079 (USD 917,594)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	220,000	7,695 (USD 234,733)	-	7,695 (USD 234,733)
GREAT-SHA NK CO., LTD.	Funds	KFAFIX-A	None	Financial assets-current measured at fair value through profit and loss	3,099,082	35,414 (THB 36,966,776)	-	35,414 (THB 36,966,776)
	Funds	BBL-AIBP6-24	None	Financial assets-current measured at fair value through profit and loss	1,588,000	15,280 (THB 15,950,031)	-	15,280 (THB 15,950,031)
	Funds	SCB SB6M2	None	Financial assets-current measured at fair value through profit and loss	1,511,588	14,600 (THB 15,239,525)	-	14,600 (THB 15,239,525)
	Funds	SCBFIXDA	None	Financial assets-current measured at fair value through profit and loss	1,348,969	14,213 (THB 14,836,631)	-	14,213 (THB 14,836,631)
	Funds	SCBASF1YG8	None	Financial assets-current measured at fair value through profit and loss	500,000	4,871 (THB 5,084,100)	-	4,871 (THB 5,084,100)

• 110 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (D) Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company’s paid-in capital:

Unit: NT$ Thousand

Buying/Selling Company	Type and Name of Securities	Account Item	Counterparty	Relation -ship	Beginning Balance (2024.01.01)	Beginning Balance (2024.01.01)	Purchases	Purchases	Sales	Sales	Sales	Sales	others	Ending Balance (2024.12.31)	Ending Balance (2024.12.31)
					Number of Shares/ Units	Amount	Number of Shares/Units	Amount	Number of Shares/ Units	Selling Price	Carrying Amount	Gains or Losses on Disposal	Valuation Gains (Losses)	Number of Shares/ Units	Amount
G-SHANK ENTERPRISE CO., LTD.	CTBC Hua Win Money Market Fund	Financial Assets at Fair Value through Profit or Loss - Current	CTBC Investment Trust	None.	-	$-	40,417,084	$461,000	34,315,750	$391,382	$391,000	$382	$15	6,101,334	$70,015

• (E) Acquired real estate for an amount of more than NT$300 million or 20% of the paid-in capital:

Unit: NT$ Thousand

Company Name	Property	Event Date	Transaction Amount	Payment Term	Counterparty		Prior Transactions of Related Counter Party	Prior Transactions of Related Counter Party	Prior Transactions of Related Counter Party	Prior Transactions of Related Counter Party	Pricing Reference	Purpose of	Other Term
						Relationship	Owner		Transfer Date	Amount
												Acquisition
								Relationships
G-SHANK ENTERPRISE CO., LTD.	Land, buildings,	October 27, 2023 (Note 1)	$1,550,000	$1,550,000	FLEX TEK CO., LTD.	None	N/A	N/A	N/A	$-	Note 2	For company	None
	and ancillary											operational
	equipment											use

Note 1: Refers to the signing date of the transaction.

Note 2: The company obtained appraisal reports from Cushman & Wakefield Real Estate Appraisal Firm and Jiaju Real Estate Appraisal Firm.

• 111 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (F) Disposed real estate for an amount more than NT$300 million or 20% of the paid-in capital ： None

• (G) The purchase or sale of goods with the related party for an amount more than NT$100 million or 20% of the paid-in capital ：

Purchase (Sales) Company	Transaction Counterparty Name	Relationship		Transaction Details	Transaction Details		Differences from General Transaction Terms & Reasons	Differences from General Transaction Terms & Reasons	Notes Receivable (Payable), Accounts Receivable (Payable)	Notes Receivable (Payable), Accounts Receivable (Payable)	Remarks
			Purchase (Sales)	Amount	Percentage of Total Purchase (Sales)	Credit Period	Unit Price	Credit Period	Balance	Percentage of Total Notes Receivable (Payable) and Accounts Receivable(Payable)
HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	Affiliated Company	Sales	$130,855 (RMB29,306,810)	100%	T/T 60	(Note)	(Note)	$28,900 (RMB 6,453,776)	100.00%

Note: The products sold to related parties do not have the same specifications as those sold to other customers; therefore, there are no other customers for comparison. The payment terms for general customers are monthly settlements of 30 to 90 days.

• (H) Accounts receivable from related parties amounted to more than NT$100 million or 20% of the paid-in capital ： None

• (I) Engage in derivative instruments transactions: Please refer to Notes 6.(2), 6.(12) and 12 of the consolidated financial statements.

• 112 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (J) Business relationship and important transactions and transaction amount between the parent company and subsidiaries and among subsidiaries:

	subsidiaries:
No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
0	G-SHANK ENTERPRISE CO., LTD.	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	1	Sales income Cost of goods sold Other income Gain on Disposal of Assets Accounts receivable -related party Accounts payables -related party Otherpayables -relatedparty	$473 291 22,280 267 104 297 593	Note 4 Note 5 Note 7 Note 7	0.01% 0.01% 0.34% - - - -
0	G-SHANK ENTERPRISE CO., LTD.	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	1	Cost of goods sold Other income Accountspayables -relatedparty	13 903 13	Note 5 Note 7	- 0.01% -
0	G-SHANK ENTERPRISE CO., LTD.	XIAMEN G-SHANK PRECISION MACHINERY CO.,LTD.	1	Other income	2,497	Note 7	0.04%
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK PRECISION MACHINERY (SUZHOU) CO.,LTD	1	Cost of goods sold Other income Accountspayables -relatedparty	722 6,906 256	Note 5 Note 7	0.01% 0.10% -
0	G-SHANK ENTERPRISE CO., LTD.	QINGDAO G-SHANK PRECISION SDN.BHD.	1	Sales income Other income	25 4,198	Note 4 Note 7	- 0.06%

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
0	G-SHANK ENTERPRISE CO., LTD.	SHENZHEN G-SHANK PRECISION SDN.BHD.	1	Other income	$2,337	Note 7	0.04%
0	G-SHANK ENTERPRISE CO., LTD.	TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	1	Cost of goods sold Other income	83 4,356	Note 5 Note 7	- 0.07%
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK, INC.	1	Sales income Accounts receivable -related party Other receivables – relatedparty	4,649 1,443 158	Note 4	0.07% 0.01% -
0	G-SHANK ENTERPRISE CO., LTD.	SHENZHEN G-BAO PRECISION SDN.BHD.	1	Sales income Other income Accounts receivable -related party Other receivables -relatedparty	1,282 3,798 532 267	Note 4 Note 7	0.02% 0.06% - -
0	G-SHANK ENTERPRISE CO., LTD.	GREAT-SHANK CO., LTD.	1	Sales income Other income Accounts receivable -related party Other receivables – relatedparty	2,691 3,845 911 1,718	Note 4 Note 7	0.04% 0.06% 0.01% 0.01%
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK ENTERPRISE (M) SDN. BHD.	1	Sales income Other income Accounts receivable -relatedparty	3,641 5,959 375	Note 4 Note 7	0.06% 0.09% -

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)	Transactions	Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
0	G-SHANK ENTERPRISE CO., LTD.	PT INDONESIA G-SHANK PRECISION	1	Sales income Accounts receivable -related party	$1,054 506	Note 4	0.02% -
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK JAPAN CO., LTD	1	Sales income Cost of goods sold Accounts receivable -related party Other receivables – related party Otherpayables -relatedparty	1,697 2,476 67 24 26	Note 4 Note 5	0.03% 0.04% - - -
1	SHANGHAI G-SHANK RECISION	HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	3	Sales income Cost of goods sold Other profit and loss Accounts receivable -related party Other receivables -related party Otherpayables -relatedparty	6,345 130,855 16,074 468 3,096 28,900	Note 6 Note 6 Note 7	0.10% 1.98% 0.24% - 0.03% 0.23%
1	SHANGHAI G-SHANK RECISION	.TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income	21	Note 6	-

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
1	SHANGHAI G-SHANK RECISION	SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD.	3	Sales income Cost of goods sold Other profit and loss Accounts receivable -related party Other receivables -related party Otherpayables -relatedparty	$1,531 41,320 20,601 220 48,528 7,983	Note 6 Note 6 Note 7	0.02% 0.63% 0.31% - 0.39% 0.06%
1	SHANGHAI G-SHANK RECISION	XIAMEN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income Accounts receivable -related party	11 13	Note 6	- -
1	SHANGHAI G-SHANK RECISION	GREAT-SHANK CO., LTD..	3	Sales income Accounts receivable -related party Other receivables – relatedparty	1,016 106 209	Note 6	0.02% - -
1	SHANGHAI G-SHANK RECISION	G-SHANK JAPAN CO., LTD	3	Sales income Cost of goods sold Accounts receivable -related party Otherpayables -relatedparty	2,887 27,406 142 3,666	Note 6 Note 6	0.04% 0.41% - 0.03%
1	SHANGHAI G-SHANK RECISION	PT INDONESIA G-SHANK PRECISION	3	Sales income	7,666	Note 6	0.12%
1	SHANGHAI G-SHANK RECISION	G-SHANK PRECISION MACHINERY (SUZHOU) CO.,LTD.	3	Sales income Cost of goods sold	249 646	Note 6 Note 6	- 0.01%-

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
1	SHANGHAI G-SHANK RECISION	G-SHANK ENTERPRISE (M) SDN. BHD.	3	Sales income Cost of goods sold Accountspayable -relatedparty	$101 782 68	Note 6 Note 6	- 0.01% -
1	SHANGHAI G-SHANK ECISION	HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD.	3	Sales income Cost of goods sold Accounts receivable -related party Accountspayables -relatedparty	1,818 8,146 184 598	Note 6 Note 6	0.03% 0.12% - -
1	SHANGHAI G-SHANK ECISION	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	3	Sales income Cost of goods sold Accounts receivable -relatedparty	372 130 132	Note 6 Note 6	0.01% - -
1	SHANGHAI G-SHANK ECISION	QINGDAO G-SHANK PRECISION SDN.BHD.	3	Sales income Cost of goods sold Otherpayables -relatedparty	104 8,100 2,056	Note 6	- 0.12% 0.02%
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	SHENZHEN G-BAO PRECISION SDN.BHD.	3	Sales income Accounts receivable -related party	621 124	Note 6	0.01% -
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	3	Cost of goods sold Other payables -related party	194 26	Note 6	- -
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	GREAT SHANK CO., LTD.	3	Sales income	163	Note 6	-

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
3	G-SHANK PRECISION MACHINERY (SUZHOU)CO.,LTD.	HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	3	Sales income Accounts receivable -related party	$2,061 379	Note 6	0.03% -
3	G-SHANK PRECISION MACHINERY (SUZHOU)CO.,LTD.	G-SHANK JAPAN CO., LTD.	3	Cost of goods sold	96	Note 6	-
4	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	TIANJIN G-SHANK PRECISION MACHINERY CO., LTD.	3	Sales income	65	Note 6	-
4	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	SHENZHEN G-BAO PRECISION SDN.BHD.	3	Sales income Accounts receivable -related party	78 27	Note 6	- -
4	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD.	3	Sales income Accounts receivable -related party	228 7	Note 6	- -
4	G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD.	DONGGUAN QIAOJUTRADING CO., LTD.	3	Sales income Cost of goods sold Other profit and loss Accounts receivable -related party Accounts payables -related party Other receivables -relatedparty	7,769 221 161 2,834 221 25	Note 6 Note 6 Note 7	0.12% - - 0.02% - -

(Continuing to next page)

• 118 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
5	G-SHANK ENTERPRISE (M) SDN. BHD.	G-SHANK JAPAN CO., LTD.	3	Sales income Cost of goods sold Accounts receivable -related party Accountspayables -relatedparty	$8,279 7,490 855 1,740	Note 6 Note 6	0.13% 0.11% 0.01% 0.01%
6	G-SHANK JAPAN CO., LTD.	SHENZHEN G-BAO PRECISION SDN.BHD.	3	Cost of goods sold Accounts payables -related party	841 2	Note 6	0.01% -
6	G-SHANK JAPAN CO., LTD.	PTINDONESIA G-SHANK PRECISION	3	Sales income	315	Note 6	-
6	G-SHANK JAPAN CO., LTD.	GREAT-SHANK CO., LTD.	3	Cost of goods sold Other receivables – related party	287 97	Note 6	- -
6	G-SHANK JAPAN CO., LTD.	XIAMEN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income	116	Note 6	-
6	G-SHANK JAPAN CO., LTD.	TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Cost of goods sold	385	Note 6	-
7	QINGDAO G-SHANK PRECISION SDN.BHD	TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income Accounts receivable -related party	505 3	Note 6	0.01% -

• 119 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Note 1: Business transactions conducted between the parent company and subsidiaries should be noted in the “No.” column as follows: (a) Fill in “0” for the parent company;

• (b) The subsidiaries are numbered sequentially starting from the Arabic number “1” by the company type.

• Note 2: The “relationship with the trading companies” includes three types (The same transaction between parent company and subsidiary or between two subsidiaries needs not to be disclosed repeatedly, for example, if the parent company has already disclosed the transaction conducted with the subsidiary, the subsidiary does not need to have it disclosed again. If one of the two subsidiaries has already disclosed the transaction conducted, the other subsidiary does not need to have it disclosed again), which should be marked as follows:

• (a) The parent company to the consolidated subsidiary;

• (b) Consolidate subsidiary to parent company;

• (c) Consolidated subsidiary to consolidated subsidiary;

• Note 3: For the ratio of the transaction amount to the consolidated total operating income or total assets, if it is an asset or liability item, it is calculated for the ratio of the ending balance amount to the consolidated total assets; if it is a profit and loss item, it is calculated for the ratio of the interim cumulative amount to total consolidated operating income.

• Note 4: The products sold are mostly equipment, tools, and materials used for production with the price negotiated by both parties by adding a percentage to the cost or by the cost price of trade depending on the type of product traded; also, taking into account the expenses and exchange rate risk. However, the specifications of products that are sold to related parties are exclusive; therefore, there is no other customer available for comparison. The payment term of sales to a related party is OA 60-150 days.

• Note 5: The purchase is mostly for molds and parts with special specifications from one single supplier. Therefore, there is no other purchase price available for comparison. The payment term for such single supplier is OA 60-120 days.

• Note 6: The collection (payment) term is OA 60-150 days according to the contract signed.

• Note 7: It is calculated and collected according to the contract signed.

• 120 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(2) Re-investment business-related information

Supplementary disclosure of information related to the company’s direct or indirect significant influence, control, or joint venture equity on the investee company not in Mainland China for the nine-month period ended December 31, 2024.

									Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR
Investor Company	Investee Company	Location	Main business operation	Original investment amount (Note 12)		As of December 31, 2024			Current profit (loss) of the Investee Company	Investment profit (loss) recognized in current period (Note 11)	Remarks
				December 31, 2024	December 31, 2023	Number of shares	Ratio (%)	Book amount (Note 11)
G-SHANK ENTERPRISE CO., LTD.	CHIN DE INVESTMENT CO.,LTD.	Note 1	General investment	$50,000	$50,000	5,000,000	100.00	$61,028	$6,755	$6,755
	GRAND STAR ENTERPRISES L.L.C.(Note 2)	Note 2	General investment	590,864	590,864	-	100.00	1,699,544	143,213	143,385
	G-SHANK, INC.	Note 3	Stamping parts molds,fix tures	36,686	36,686	1,000	100.00	411,004	10,329	10,424
	G-SHANK ENTERPRISE (M)SDN. BHD.	Note 4	Stamping parts molds, fixtures	85,112	85,112	6,924,750	92.33	481,631	91,021	84,065
	GREAT-SHANK CO., LTD.	Note 5	Precision progressive die and hardware products	69,509	69,509	7,968,750	85.00	136,640	22,805	19,405
	G-SHANK JAPAN CO.,LTD.	Note 6	International trade	19,749	19,749	1,060	58.89	20,877	11,494	6,769
	SUNFLEX TECHNOLOGY CO.,LTD.	Note 7	Manufacturing and trading of electronic components	40,448	40,448	9,940,956	14.42	177,595	97,076	14,002

(Continuing to next page)

• 121 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

(Continued from the last page)	(Continued from the last page)	(Continued from the last page)	(Continued from the last page)
				Unit：NTD Thousand/USD/MYR
Investor Company	Investee Company	Location	Main business operation	Original investment amount (Note 12)		As of December 31, 2024			Current profit (loss) of the Investee Company	Investment profit (loss) recognized in current period (Note 11)	Remarks
				December 31, 2024	December 31, 2023	Number of shares	Ratio (%)	Book amount (Note 11)
CHIN DE INVESTMENT CO.,LTD.	SUNFLEX TECHNOLOGY CO.,LTD.	Note 7	Manufacturing and trading of electronic components	217	217	10,000	0.01	181	97,076	14
G-SHANK ENTERPRISE (M)SDN. BHD.	PT INDONESIA G-SHANK PRECISION	Note 8	Stamping parts molds, fixtures	52,298 (RM7,144,500)	52,298 (RM7,144,500)	18,800	94.00	254,699 (RM34,794,918)	31,371 (RM4,442,179)	-
G-SHANK, INC.	G-SHANK DEMEXICO,S. A. DE C.V.	Note 9	Stamping parts molds, fixtures	$5,213 (USD159,025)	$5,213 (USD159,025)	-	100.00	$31,208 (USD952,030)	$(3,895) (USD121,132)	-
GRAND STAR ENTERPRISES L.L.C.(Note 2)	GLOBAL STAR INTERNATION AL CO., LTD.	Note 10	General investment	629,966 (USD19,218,011)	629,966 (USD19,218,011)	19,218,011	100.00	1,685,327	141,728	-

Note 1: 20F-2, No. 83, Section 1, Chung Hsiao E. Road, Zhongzheng District, Taipei City. Note 2: 201 Rogers Office Building Edwin Wallace Rey Drive George Hill Anguilla.

Note 3: 1034 Old Port Isabel Rd., Suite 2 Brownsville, TX 78521, U.S.A.

Note 4: Plot 94, Bayan Lepas Industrial Estate 11900 Bayan Lepas, Penang, Malaysia. Note 5: 116 Moo 1 Hitech Industrial Estate T.Banlane , A.Bang Pa-In , Ayutthaya Thailand 13160 Note 6: 1-17-14, Nishi-Shinbashi ,Excel Annex 8F, Nishi-Shinbashi, Minato-Ku,Tokyo, 105-0003 Japan. Note 7: No. 522, Nanshang Road, Guishan District, Taoyuan City

Note 8: Jl. Industri Kawasan JABABEKA Tahap Il Block RR 5C-5D Cikarang-Bekasi 17530, Indonesia.

Note 9: NO.15, Gral, Pedro Hinojosa, cd industrial H.Matamoros, Tamps, Mexico.

Note 10: Suite 102, Cannon Place, P.O. Box 712, North Sound Rd., George Town, Grand Cayman, KYl-9006 Cayman Islands.

• Note 11: It is calculated based on the financial statements of the invested companies for the same period audited by the accountants.

• Note 12: The original investment amount at the end of the current period and the end of last year is calculated according to the exchange rate on December 31, 2024.

• 122 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(3) Investment in China

(A) The name, main business operation, paid-in capital, investment methods, remittance in and out of funds, shareholding ratio, investment profit and loss, investment book amount at yearend, remittance in of investment profit and loss, and investment limits of the invested company in China:

company in China:	company in China:	company in China:	company in China:	company in China:
					Unit：NTD Thousand/USD/RMB/HKD
Invested company in China	Main business operation	Paid-in capital	Investment method	Cumulative investment amount remitted out of Taiwan in current period - beginning	Investment amount remitted in or out in current period		Cumulative investment amount remitted out of Taiwan in current period - ending	Current profit (loss) of the invested company	The company’s direct or indirect investment shareholding ratio (%)	Investment profit (loss) recognized in current period (Note 4)	Book amount of investment - ending	Investment profit remitted into Taiwan as of current period
					Remitted	Remitted
					out	in
SHANGHAI G-SHANK PRECISION MACHINERY CO.,LTD.	Precision progressive die and hardware products	USD 10,000,000 (Note A)	Entrusted investment (Note B)	USD1,700,000	$-	$-	USD1,700,000	$677,022	85.00	$575,202	$1,379,072	$2,967,387 (USD90,524,309)
HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	Precision progressive die and hardware products	USD1,590,000	Investment through the company set up in the third region (Note C)	USD1,275,000	-	-	USD1,275,000	12,318	80.19	9,878	70,048	109,623 (USD3,344,206)
G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD.	Precision progressive die and hardware products	USD3,000,000	Investment through the company set up in the third region (Note D)	USD1,530,000	-	-	USD1,530,000	10,533	51.00	5,372	113,473	22,361 (USD682,168)
XIAMEN G-SHANK PRECISION MACHINERY CO., LTD.	Precision progressive die and hardware products	USD2,500,000	Investment through the company set up in the third region (Note E)	USD1,990,000	-	-	USD1,990,000	7,466	79.60	5,943	94,125	74,806 (USD2,282,062)

(Continuing to next page)

• 123 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

										Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR
Invested company in China	Main business operation	Paid-in capital	Investment method	Cumulative investment amount remitted out of Taiwan in current period - beginning	Investment amount remitted in or out in current period		Cumulative investment amount remitted out of Taiwan in current period - ending	Current profit (loss) of the invested company	The company’s direct or indirect investment shareholding ratio (%)	Investment profit (loss) recognized in current period (Note 4)	Book amount of investment - ending	Investment profit remitted into Taiwan as of current period
					Remitted	Remitted
					out	in
G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD.	Planer, milling machine or die machine, precision continuous die and hardware products	USD1,400,000	Investment through the company set up in the third region (Note F)	USD1,671,825	$-	$-	USD1,671,825	$35,918	100.00	$35,918	$310,665	$148,381 (USD4,526,578)
QINGDAO G-SHANK PRECISION SDN.BHD.	Precision progressive die and hardware products	USD4,000,000	Investment through the company set up in the third region (Note G)	USD3,342,000	-	-	USD3,342,000	(3,439)	92.83	(3,193)	229,103	356,029 (USD10,861,158)
TIANJIN G-SHANK PRECISION MACHINERY CO., LTD.	Precision progressive die and hardware products	USD2,500,000	Investment through the company set up in the third region (Note H)	USD2,205,000	-	-	USD2,205,000	37,858	88.20	33,391	207,759	167,769 (USD5,118,031)
SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD.	Precision progressive die and hardware products	USD300,000	Investment through the company set up in the third region (Note I)	USD 255,000	-	-	USD255,000	21,283	85.00	18,090	93,499	648,603 (USD19,786,536)
SHENZHEN G-SHANK PRECISION SDN.BHD.	Precision progressive die and hardware products	USD2,600,000	Investment through the company set up in the third region (Note J)	USD2,440,000	-	-	USD2,440,000	3,769	93.85	3,538	104,186	8,547 (USD260,742)

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

										Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR
Invested company in China	Main business operation	Paid-in capital	Investment method	Cumulative investment amount remitted out of Taiwan in current period - beginning	Investment amount remitted in or out in current period		Cumulative investment amount remitted out of Taiwan in current period - ending	Current profit (loss) of the invested company	The company’s direct or indirect investment shareholding ratio (%)	Investment profit (loss) recognized in current period (Note 4)	Book amount of investment - ending	Investment profit remitted into Taiwan as of current period
					Remitted	Remitted
					out	in
SHENZHEN G-BAO PRECISION SDN.BHD.	Precision progressive die and hardware products	USD3,150,000	Investment through the company set up in the third region (Note K)	USD2,880,000	$-	$-	USD2,880,000	$38,061	91.43	$34,799	$477,673	$161,830 (USD4,936,848)
HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD. (Note 5)	Precision progressive die and hardware products, electroplating processing	RMB19,000,000 (Note 6)	Transfer investment of SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD.	-	-	-	-	(2,665)	100.00	(2,665)	86,143	-
DONGGUAN QIAOJU TRADING CO., LTD. (Note 5)	Plastic hardware wholesale and import/export business	HKD3,000,000	Transfer investment of G-LONG PRECISION MACHINERY (DONG GUAN) CO.,LTD.	-	-	-	-	(5,698)	100.00	(5,698)	18,613	-
HUI ZHOU G-BAO PRECISION SDN.BHD. (Note 5)	Precision progressive die and hardware products	RMB55,000,000	Transfer investment of SHENZHEN G-BAO PRECISION SDN.BHD.	-	-	-	-	703	100.00	703	250,597	-

• 125 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Cumulative investment amount remitted out from Taiwan to China atyearend(Note 1)	Investment amount approved by the Investment Commission,MOEA(Notes 1 and 2)	The investment amount limit stipulated by the Investment Commission,MOEA(Note 3)
$691,204 (USD21,086,140)	$926,280 (USD28,257,472)	$5,337,796

• Note 1: It includes the net amount of USD2,730,000 derived from the approved investment of GSYUE DG TOOLING CO.,LTD. for USD932,685 and net of the liquidating investment fund remitted in for USD1,797,315.

• Note 2: It includes the capital increase from earnings of SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in May 2001 and October 2004, and the capital increase from earnings of QINGDAO G-SHANK PRECISION SDN.BHD. in January 2019.

• Note 3: According to the “Principles for the Review of Investment or Technical Cooperation in Mainland China” stipulated by the Investment Commission, MOEA the company’s investment in China is limited to 60% of the net worth or consolidated net worth, whichever is higher. However, the enterprises that are with the certification document to evidence its meeting the operation scope of the headquarters issued by the Industrial Development Bureau, MOEA is not subject to this limit. The company had applied to the Industrial Development Bureau, MOEA for approval as the corporate operation headquarters on April 18, 2024 that would be valid from March 18, 2024 to March 17, 2027 for the investment in China, which had not violated the investment limit of the Investment Commission, MOEA.

• Note 4: The Company's share of profit or loss from subsidiaries accounted for using the equity method for the year 2024 is calculated based on the audited financial statements of these investee companies for the same period.

• Note 5: It is an investment made through the invested company in China; therefore, it is unnecessary to report to the Investment Commission MOEA and is not included in the “Cumulative investment amount remitted out from Taiwan to China.”

• Note 6 ： HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD. originally had a paid-in capital of RMB 30,000,000. In May 2023, it carried out a reduction of capital and refunded RMB 11,000,000 to shareholders, resulting in a revised paid-in capital of RMB 19,000,000.

• 126 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note A ： SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. had a paid-in capital of US$2,000 thousand originally. It had arranged a capital increase from earnings for an amount of US$2,500 thousand and US$5,500 thousand in May 2001 and October 2004, respectively. As of December 31, 2024, SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. had a paid-in capital of US$10,000 thousand.

• Note B ： The company has signed a power of attorney with G-SHANK ENTERPRISE (M) SDN. BHD. (hereinafter referred to as the “trustee”), a business entity of the company in the third region, to indirectly establish SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in China with the related party, Yuhuang Lin. The main content of the power of attorney is as follows:

• (a) The company designated the trustee to invest US$1,700,000 (including bank transfer of US$1,250,000 and machinery and equipment for an amount of US$450,000) in SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in China.

• (b) The trustee is to apply to the competent authorities in China to invest and establish SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in the name of the trustee.

• (c) The trustee upon receiving income or benefits from SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. should have it transferred to the company entirely.

• (d) If SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. is to return the investment funds due to capital reduction, business termination, or other reasons, the trustee upon receiving such refund shall have it transferred to the company entirely.

• (e) The trustee shall notify the company when transferring investment funds, benefits, or income due to the reasons stated in the last two preceding paragraphs according to the instruction of the company.

• (f) The trustee’s rights and obligations in SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. are transferred to the company due to this entrusted investment relationship; therefore, the trustee does not guarantee the income and profit and loss.

• (g) The trustee shall exercise due diligence to manage investment, foreign exchange settlement, and benefit collection.

• (h) The matters not addressed in the power of attorney shall be handled in accordance with the law and regulations of the Republic of China, domestic and foreign banking practices, and other regulations.

• 127 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note C ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90010260 (Investment Commission, MOEA had the (90) Shen-II-Tzi No. 90010260 amended by issuing the (95) Shen-II-Tzi No. 095004988 on 03.03.2006), and the company was approved by the Investment Commission, MOEA by issuing the Shen-II-Tzi No. 093031757 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in HONG JING (SHANGHAI) ELECTRONICS CO., LTD. HONG JING (SHANGHAI) ELECTRONICS CO., LTD. had arranged a capital increase in cash on November 1, 2012; however, the company did not subscribe shares proportionally to the shareholding ratio; therefore, the company’s shareholding ratio was 80.19% thereafter.

• Note D ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90010259 and Jin-Shen-II-Tzi No. 91015965, and the company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092042580 Letter and Jin-Shen-II-Tzi No. 093031432 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD.

• Note E ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90022866, and the company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092042581 Letter and Jin-Shen-II-Tzi No. 093006075 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in XIAMEN G-SHANK PRECISION MACHINERY CO., LTD.

• Note F ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90001835, Jin-Shen-II-Tzi No. 091031112, and Jin-Shen-II-Tzi No. 92008940 to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. Subsequently, 5.86% (investment amount of US$82 thousand) and 2% (investment mount US$28 thousand) of the shareholding was transferred to non-related parties, Mr. Bershin Lo and Mr. Guodong Hsu, in March 2003, respectively. The company’s shareholding was reduced to 92.14 % thereafter that was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092010563 Letter. HON YEH INVESTMENT CO., LTD., a subsidiary of the company, had paid US$23 thousand to acquire the 2% (investment amount US$28 thousand) shareholding from Mr.

• 128 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Guodong Hsu on January 5, 2007 with the shareholding increased to 94.14% thereafter and it was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 09500329480 Letter. The company’s board of directors had resolved on June 13, 2019 to acquire the 5.86% (investment amount US$361 thousand) shareholding from the non-related party, Mr. Bershin Lo, and it was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 10800157300 Letter with the comprehensive shareholding increased to 100% thereafter.

• Note G ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Shen-II-Tzi No. 90010261, Jin-Shen-II-Tzi No. 91039369, Jin-Shen-II-Tzi No. 092003008 Letter, and Jin-Shen-II-Tzi No. 094008181 to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in QINGDAO G-SHANK PRECISION SDN.BHD. Subsequently, 5% (investment amount of US$130 thousand), 2.23% (investment mount US$58 thousand), and 0.58% (investment amount US$15 thousand) of the shareholding was transferred to non-related parties, Mr. Shenwei Guo, Mr. Hongjun Li, and Mr. Bangyong Liu, in March 2003, respectively. The company’s shareholding was reduced to 92.19 % thereafter that was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092010560 Letter. QINGDAO G-SHANK PRECISION SDN.BHD. had arranged capital increase in cash on November 25, 2006; however, the company did not subscribe shares proportionally to the shareholding ratio; therefore, the company’s shareholding ratio was 92.83% thereafter. QINGDAO G-SHANK PRECISION SDN.BHD. had a paid-in capital of US$3,600 thousand and then arranged a capital increase from earnings for an amount of US$400 thousand in January 2019 and the paid-in capital of QINGDAO G-SHANK PRECISION SDN.BHD. was US$4,000 thousand thereafter.

• Note H ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092044159, Jin-Shen-II-Tzi No. 093005557, and Jin-Shen-II-Tzi No. 093006249 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in TIANJIN G-SHANK PRECISION MACHINERY CO., LTD.

• Note I ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 095026420 Letter to indirectly invest in SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD. through G-SHANK ENTERPRISE (M) SDN. BHD. in the third region. Then it was approved for amendment by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 095032048 Letter to invest in SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD. through GLOBAL STAR INTERNATIONAL CO., LTD. that was invested by GRAND STAR

• 129 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

ENTERPRISES L.L.C. in the third region. The investment fund was transferred through GRAND STAR ENTERPRISES L.L.C. to GLOBAL STAR INTERNATIONAL CO., LTD. for an amount of US$255 thousand on November 18, 2006, and the said amount was then transferred to SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD. on January 20, 2006.

• Note J ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 09500121350, Jin-Shen-II-Tzi No. 09600108160, and Jin-Shen-II-Tzi No. 09600265810 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in SHENZHEN G-SHANK PRECISION SDN.BHD.

• Note K ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 09600405610 and Jin-Shen-II-Tzi No. 09700084160 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in SHENZHEN G-BAO PRECISION SDN.BHD. SHENZHEN G-BAO PRECISION SDN.BHD. had arranged capital increase in cash on September 13, 2012; however, the company did not subscribe shares proportionally to the shareholding ratio; therefore, the company’s shareholding ratio was reduced to 91.43% thereafter.

• (B) Significant transactions conducted with the invested companies in China in the current period ：

• (a) The purchase amount and percentage and the related payable amount and percentage at yearend: Please refer to Notes 7 and 13.(1)(J) of parent company only financial report for details.

• (b) The sales amount and percentage and the related receivable amount and percentage at yearend: Please refer to Note 7 and 13.(1)(J) of parent company only financial report for details.

• (c) The property transaction amount and the profit and loss resulted ： please refer to Note 7 and 13.(1)(J) of parent company only financial report for details.

• (d) The ending balance and purpose of notes endorsements/guarantees or collateral provided: None.

• (e) Maximum balance amount, ending balance amount, interest rate range, and total interest of the current period of loans: Please refer to Note 13.(1)(A) of parent company only financial report for details.

• (f) Other transactions that have a significant impact on the profit and loss or financial status: Please refer to Notes 13.(1)(J) of parent company only financial report for details.

• 130 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(4) Major Shareholder information

The name, shareholding, and shareholding ratio for more than 5% of the company’s shareholders ：

Shares	Shareholdin (shares)	Shareholdin ratio (%)
o Major shareholders	g	g
~~t~~ e JIHONG INVESTMENT CO., LTD	16,089,465 shares	7.65%

• Note 1 ： The information of the major shareholders in this table is based on the shareholders

• who have received more than 5% common stock shareholding completed with dematerialized registration (including treasury stock) on the last business day of each quarter that is counted by Taiwan Depository & Clearing Corporation. The capital stock recorded in the company’s consolidated financial report and the company’s actual number of shares delivered with dematerialized registration may be different due to different calculation bases adopted.

• Note 2 ： If the aforementioned information is regarding shareholders having their shares delivered to the trust, it is disclosed by the individual account of the principal who entrusts the trustee to open a trust account. As for the shareholder’s reporting 10% or more of insider’s shareholding in accordance with the Securities and Exchange Act, the shareholding includes the principal’s shareholding and the shares delivered to the trust that remains under the control of the principal. Please refer to the Market Observation Post System for the insider’s equity reporting information.

14. DEPARTMENT INFORMATION

The company has disclosed departmental information in the consolidated financial report, so the parent company only financial report may not be disclosed according to regulation.

• 131 -

G-SHANK ENTERPRISE CO., LTD.

1.Statement of Cash and Cash Equivalents

December 31, 2024

					(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item		Description			Amount	Note
Cash and petty cash Checking deposit and savings deposit Time deposits Total		MaturityDate 2025.01.13-2025.03.12	Interest Rates		2,555 $ 336,012 561,869 900,436 $	1 USD = NT32.78 1 JPY = NT0.21 1 RMB = NT4.478 USD 2,281,396.28 JPY 16,382,986.20 RMB 652,829.01 USD 10,124,146.46 3. Time deposits with foreign currency: 2. Demand deposits include foreign currency: 1. 2024.12.31exchange rate:
			1.61%~4.92%

• 132 -

G-SHANK ENTERPRISE CO., LTD.

2.Statement of Financial Assets at Fair Value through Profit or Loss - Current

December 31, 2024

					(In Th	ousands of New Ta	iwan Dollars, Unless Specified Otherwise)	iwan Dollars, Unless Specified Otherwise)	iwan Dollars, Unless Specified Otherwise)
Name of securities	Shares /unit /shares	unit cost /face value	Total Amount	Rates	Acquisition cost	Market	Value	Changes in fair value attributable to changes in credit risk	Note
						Unit Pric($US)	Total Amount
Financial assets-Funds： FSITC Taiwan Money Market JIH SUN MONEY MARKET FUND (I) JIH SUN MONEY MARKET FUND (II) CTBC Hua Win Money Market Fund Subtotal Financial assets-Bonds： BCS-Barclays Plc bonds (2022) BACR 8 PRRP (I) DB-Deutsche Bank AG bonds DB 7.5 PERP (I) HSBC Holding bonds HSBC 6.95 PERP (I) Societe Generale bonds SOCGEN 10 PERP (I) UBS Group Bonds UBS 6.85 PERP (I) UBS Group Bonds UBS 7.75 PERP (I) UBS Group Bonds UBS 9.25 PERP (10Y) (I) UBS Group Bonds UBS 9.25 PERP (5Y) (I) BCS-Barclays Plc bonds (2022) BACR 8 PERP (II) BCS-Barclays Plc bonds BACR 9.625 PERP (I) BNP Paribas bonds BNP 8.5 PERP DB-Deutsche Bank AG bonds DB 7.5 PERP (II) HSBC Holding bonds HSBC 6.5 PERP HSBC Holding bonds HSBC 6.875 PERP HSBC Holding bonds HSBC 6.95 PERP (II) HSBC Holding bonds HSBC 8 PERP (I) ING Group NV INTNED 7.5 PERP Mitsubishi UFJ Financial Group, Inc. (MUFG) MUFG 8.2 PERP (I) Societe Generale bonds SOCGEN 10 PERP (II) Societe Generale bonds SOCGEN 8.5 PERP (I) UBS Group Bonds UBS 6.85 PERP (II) UBS Group Bonds UBS 7.75 PERP (II) UBS Group Bonds UBS 9.25 PERP (10Y) (II) UBS Group Bonds UBS 9.25 PERP (5Y) (II) BCS-Barclays Plc bonds BACR 9.625 PERP (II) HSBC Holding bonds HSBC 6.95 PERP (III) HSBC Holding bonds HSBC 8 PERP (II) Mitsubishi UFJ Financial Group, Inc. (MUFG) MUFG 8.2 PERP (II) Societe Generale bonds SOCGEN 10 PERP (III) Societe Generale bonds SOCGEN 8.5 PERP (II) UBS Group Bonds UBS 6.85 PERP (III) UBS Group Bonds UBS 7.75 PERP (III) HSBC Holding bonds HSBC 5.25 PERP UBS Group Bonds UBS 5.6 PERP Subtotal Total	1,879,770 972,248 1,941,697 6,101,334 2,290,000 1,600,000 4,600,000 2,830,000 3,000,000 1,440,000 3,100,000 1,800,000 800,000 940,000 800,000 800,000 1,000,000 3,000,000 3,270,000 1,150,000 500,000 200,000 2,608,000 1,160,000 4,610,000 5,030,000 300,000 1,000,000 2,990,000 1,250,000 787,000 300,000 1,500,000 650,000 598,000 2,500,000 1,500,000 1,000,000	15.9594 15.4447 15.4504 11.4729 USD 96.4466 USD 103.1650 USD 102.0961 USD 102.8913 USD 99.7205 USD 105.3292 USD 104.3819 USD 102.3050 USD 100.0344 USD 104.4400 USD 98.9200 USD 104.6625 USD 100.6300 USD 101.1567 USD 101.5972 USD 102.2252 USD 100.4500 USD 101.5000 USD 106.1864 USD 97.9684 USD 100.4778 USD 103.0763 USD 102.1500 USD 101.3340 USD 100.0138 USD 100.7600 USD 100.5527 USD 101.5850 USD 101.7000 USD 98.7500 USD 99.0900 USD 100.9888 SGD 99.9300 SGD 100.1600	30,000 $ 15,016 30,000 70,000	- - - - 8.000% 7.500% 6.950% 10.000% 6.850% 7.750% 9.250% 9.250% 8.000% 9.625% 8.500% 7.500% 6.500% 6.500% 6.950% 8.000% 7.500% 8.200% 10.000% 8.500% 6.850% 7.750% 9.250% 9.250% 9.625% 6.950% 8.000% 8.200% 10.000% 8.500% 6.850% 7.750% 5.250% 5.600%	30,000 $ 15,016 30,000 70,000	15.9668 15.4706 15.4706 11.4753 USD 103.7330 USD 99.8810 USD 99.8990 USD 106.6970 USD 99.2510 USD 104.2770 USD 115.0450 USD 108.3080 USD 103.7330 USD 110.2620 USD 104.3550 USD 99.8810 USD 99.4960 USD 99.7380 USD 99.8990 USD 104.9220 USD 102.3440 USD 109.6640 USD 106.6970 USD 99.8170 USD 99.2510 USD 104.2770 USD 115.0450 USD 108.3080 USD 110.2010 USD 100.3990 USD 104.9300 USD 109.7590 USD 106.6200 USD 99.8750 USD 99.3200 USD 104.3250 SGD 101.95 SGD 102.875	30,014 $ 15,041 30,039 70,015
			145,016 $		145,016 $		145,109
			2,208,628 USD 1,650,640 USD 4,696,420 USD 2,911,824 USD 2,991,615 USD 1,516,740 USD 3,235,840 USD 1,841,490 USD 800,275 USD 981,736 USD 791,360 USD 837,300 USD 1,006,300 USD 3,034,700 USD 3,322,228 USD 1,175,590 USD 502,250 USD 203,000 USD 2,769,341 USD 1,136,434 USD 4,632,028 USD 5,184,739 USD 306,450 USD 1,013,340 USD 2,990,414 USD 1,259,500 USD 791,350 USD 304,755 USD 1,525,500 USD 641,875 USD 592,558 USD 2,524,719 USD 59,380,939 USD		66,856 50,185 150,122 92,502 97,396 49,065 103,700 58,668 24,639 30,781 25,248 23,911 32,680 98,552 106,308 36,624 15,353 6,032 87,567 36,703 149,277 166,929 9,329 31,879 91,035 39,131 24,098 9,452 46,401 20,598 19,245 77,935 34,054 23,159		77,868 52,386 150,636 98,980 97,603 49,222 116,906 63,906 27,203 33,975 27,366 26,193 32,615 98,082 107,082 39,553 16,774 7,190 91,216 37,955 149,984 171,936 11,314 35,503 108,010 41,139 27,070 10,794 52,425 21,280 19,469 85,494 36,916 24,834 2,048,879
			1,498,950 SGD 1,001,600 SGD
			2,500,550 SGD		1,935,414 $
							2,193,988 $

• 133 -

G-SHANK ENTERPRISE CO., LTD.

3. Statement of Net Notes Receivable

December 31, 2024

(In Thousands of New Taiwan Dollars)

Client Name	Description		Amount	Note
Notes receivable Client A Others Total Less: Allowance loss Net amount	(Note)		6,120 $ 655 6,775 - 6,775 $	The notes receivable in the left column are due to operation.

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

• 134 -

G-SHANK ENTERPRISE CO., LTD.

4. Statement of Net Accounts Receivable

December 31, 2024

(In Thousands of New Taiwan Dollars)

Client Name	Description		Amount	Note
Notes receivable Client B Client C Client D Client E Client F Client G Others Total Less: Allowance loss Net amount	(Note)		80,695 $ 54,836 54,207 38,586 37,806 28,068 229,692 523,890 (174) 523,716 $	The notes receivable in the left column are due to operation.

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

• 135 -

G-SHANK ENTERPRISE CO., LTD.

5.Statement of Account Receivable - Related Parties

December 31, 2024

(In Thousands of New Taiwan Dollars)

Name of related party	Description		Amount	Note
Account receivable G-SHANK, INC. GREAT-SHANK CO., LTD. SHENZHEN G-BAO PRECISION SDN.BHD. PT INDONESIA G-SHANK PRECISION G-SHANK ENTERPRISE (M) SDN. BHD. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. G-SHANK JAPAN CO., LTD. Total			1,443 $ 911 532 506 375 104 67 3,938 $

• 136 -

G-SHANK ENTERPRISE CO., LTD.

6. Statement of Other Receivables

December 31, 2024

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Items	Description		Amount	Note
Accounts receivable for interest Accounts receivable for tax refunds Others Total	VAT		28,259 $ 4,660 7,610 40,529 $

• 137 -

G-SHANK ENTERPRISE CO., LTD.

7. Statement of Other Receivables - Related Parties

December 31, 2024

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of related party	Description		Amount	Note
GREAT-SHANK CO., LTD. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. SHENZHEN G-BAO PRECISION SDN.BHD. G-SHANK, INC. G-SHANK JAPAN CO., LTD. Total			1,718 $ 593 267 158 24 2,760 $

• 138 -

G-SHANK ENTERPRISE CO., LTD.

8. Statement of Inventory

December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Description	Amount	Amount	Note
		Cost	Net Realizable Value
Raw materials Supplies Work in process Finished product Merchandise Total Less: Allowance to reduce inventory to market Book amount		54,897 $ 9,441 95,252 71,965 295 231,850 (23,689) 208,161 $	54,272 $ 9,719 91,860 111,733 364 267,948 $	2. Inventories are evaluated at the lower of cost and net realizable value at the end of the period. When comparing cost and net realizable value, except for inventories of the same category , individual items are compared item by item. 1. The inventories listed on the left are not guaranteed or pledged.

• 139 -

G-SHANK ENTERPRISE CO., LTD.

9. Statement of Prepayments and Other Current Assets

December 31, 2024

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Description		Amount	Note
Prepaid expenses Prepayment for purchases Others Total			5,727 $ 3,394 5,272 14,393 $

• 140 -

G-SHANK ENTERPRISE CO., LTD.

10. Statement of Other Financial Assets - Current

December 31, 2024

(In Thousands of New Taiwan Dollars)

Item		Description	Description		Amount	Note
Special account for transferring overseas funds back to Taiwan Time deposit		MaturityDate 114.12.19	Interest Rates		5,057 $	USD 154,280.92 1.2023.12.31exchange rate： 1 USD = NT 32.78 2.Time deposits with foreign currency：
			4.20%

• 141 -

G-SHANK ENTERPRISE CO., LTD.

11. Statement of Changes in Financial Assets at Fair Value Through Profit or Loss – Non-Current

For the year ended December 31, 2024

								(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name	Beginning of the period		Additions in	Investment	Decrease in	Investment	Valuation Gain or Loss	End of period		Guarantee or Pledge Status	Note
	Shares/Units	Fair value	Shares/Units	Amount	Shares/Units	Amount		Shares/Units	Fair value
Embedded Derivative Financial Instruments (Note)	-	- $	-	300 $	-	596 $	2,247 $	-	1,951 $	None.

Note: For relevant information, please refer to note 12.(2)(D)(b)(iii) of parent company only financial report .

• 142 -

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Changes in Financial Assets Measured at Fair Value through Other Comprehensive Income - Non-Current For the year ended December 31, 2024

								(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name	Beginning of the period		Additions in Investment		Decrease in	Investment	Equity instrument investment evaluation adjustment	End of period		Accumulated Impairment Loss	Collateral	Note
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	Market Value
Unlisted stocks REEL MASK INDUSTRY CO., LTD.	3,392,713	320,903 $	-	- $	-	- $	123,128 $	3,392,713	444,031 $	N/A	None.

• 143 -

G-SHANK ENTERPRISE CO., LTD.

13. Statement of Changes in Investments Accounted for Using Equity Method For the year ended December 31, 2024

									(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Investees	Beginning	of theperiod	Additio	ns in Investment	Dec	rease in Investment	Share of the profit (loss) of associates	Exchange differences on translating foreign operations	End ofperiod			Market Value or	Net Assets Value	Collateral	Remark
	Shares	Amount	Shares	Amount	Shares	Amount			Shares	Shareholding ratio	Amount	Unit Price (NT$)	Total Amount
Investments accounted for using equity method CHIN DE INVESTMENT CO., LTD. G-SHANK, INC. GRAND STAR ENTERPRISES L.L.C. G-SHANK ENTERPRISE (M) SDN. BHD. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. GREAT-SHANK CO., LTD. G-SHANK JAPAN CO., LTD. SUNFLEX TECHNOLOGY CO., LTD. G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. Total	5,000,000 1,000 - 6,924,750 - 7,968,750 1,060 9,940,956 -	54,271 $ 375,076 1,615,802 409,297 1,912,990 132,100 14,678 168,076 16,827	- - - - - - - - -	2 $ (NOTE 1) - - - - - - 2,497 (NOTE 3) - 2,499 $	- - - - - - - - -	- $ - (114,343) (NOTE 2) (50,143) (NOTE 2) (1,187,261) (NOTE 2) (22,187) (NOTE 2) - (6,980) (NOTE 4) (1,304) (NOTE 2) (1,382,218) $	6,755 $ 10,424 143,385 84,065 575,202 19,405 6,769 14,002 2,105 862,112 $	- $ 25,504 54,700 38,412 78,141 7,322 (570) - 577 204,086 $	5,000,000 1,000 - 6,924,750 - 7,968,750 1,060 9,940,956 -	100.00% 100.00% 100.00% 92.33% 85.00% 85.00% 58.89% 14.42% 5.86%	61,028 $ 411,004 1,699,544 481,631 1,379,072 136,640 20,877 177,595 18,205	12.21 $ 41,229.07 - 69.61 - 17.15 19,695.36 27.55 -	61,028 $ 411,229 1,699,548 482,043 1,379,338 136,698 20,877 273,873 18,205	N/A N/A N/A N/A N/A N/A N/A N/A N/A	Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5
		4,699,117 $									4,385,596 $		4,482,839 $

Note 1：The fluctuation amount of unrealized losses on financial assets measured at fair value through other comprehensive income - items not reclassified to profit or loss

• attributed to subsidiary recognized using the equity method is NTD $2 thousands.

Note 2：Cash dividends issued by investee companies.

• Note 3：Represents the share of other comprehensive income of associates accounted for using the equity method - items not reclassified to profit or loss - unrealized gains

on financial assets measured at fair value through other comprehensive income, amounting to NT$1,973 thousand, and the variation recognized in associates

accounted for using the equity method amounting to NT$524 thousand.

Note 4：Represents the share of other comprehensive income of associates accounted for using the equity method - items not reclassified to profit or loss - remeasurement amount of defined benefit plans of NT$21 thousand, and cash dividends distributed by investee companies of NT$6,959 thousand.

Note 5：Calculated based on the audited financial statements of the aforementioned investee companies for the same period by the accountant.

• 144 -

G-SHANK ENTERPRISE CO., LTD. 14. Statement of Changes in Cost of Real Estate, Buildings, and Equipment For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(9)(A) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Changes in Accumulated Depreciation of Real Estate, Buildings, and Equipment For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(9)(A) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD. 16. Statement of Changes in Intangible Assets For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(10)(A) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD. 17. Statement of Deferred Tax Assets For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(26)(D) of the parent company only financial report.

• 145 -

G-SHANK ENTERPRISE CO., LTD.

18. Statement of Advances for Equipment, Deposits, and Other Non-Current Assets - Other December 31, 2024

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Description		Amount	Note
Prepayments for business facilities Refundable deposits Other noncurrent assets, others	Prepayment for the facilities that has not been Shipped to the Company Lease guarantee, etc. Details listed on important account statement 18		1,448 $ 491 $ 9,906 $

• 146 -

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Changes in Other Non-Current Assets - Other For the year ended December 31, 2024

								(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Items		Beginning of the period		Increase during the period		Decrease during the period		reclassification		End of the period	Note
Deferred expenses Mole expense		4,978 $		22,219 $		(17,291) $		- $		9,906 $

• 147 -

G-SHANK ENTERPRISE CO., LTD.

20. Statement of Short-term Borrowings

December 31, 2024

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Borrowing items	Directions	End of the period	Contract period	Interest rate	~~Financing~~ available Mortgage or	Collateral	Note
Credit loan CTBC BANK BANK OF TAIWAN CATHAY UNITED BANK Total		230,000 $ 120,000 150,000 500,000 $	113.4.30~114.4.30 113.8.15~114.8.15 113.9.2~114.9.2	1.850% 1.845% 1.853%	~~guarantee~~ 190,000 $ 13,834 150,000	None None None

• 148 -

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Contract Liabilities - Current For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Contract liabilities	Unearned revenue		9,271 $

• 149 -

G-SHANK ENTERPRISE CO., LTD.

22. Statement of Accounts Payable

December 31, 2024

Vendor Name	Description		Amount	Note
Accounts payable Vendor H Vendor I Vendor J Vendor K Vendor L Vendor M Other Total	(Note)		24,074 $ 15,839 14,964 12,601 11,246 10,839 82,270 171,833 $	The notes receivable in the left column are due to operation.

Note：The balance of each customer does not exceed 5% of the balance of this item

• 150 -

G-SHANK ENTERPRISE CO., LTD.

23. Statement Of Accounts Payable- Related Parties, Net December 31, 2024

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of related party	Description		Amount	Note
Accounts payable SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. SUNFLEX TECHNOLOGY CO., LTD. G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD. Total			297 $ 256 47 13 613 $

• 151 -

G-SHANK ENTERPRISE CO., LTD.

24. Statement of Other Payables

December 31, 2024

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Description		Amount	Note
Equipment Payments Payable Salaries and Bonuses Payable Processing Fees Payable Employee Compensation Payable Insurance Premiums Payable Retirement Benefits Payable Other Total			122,450 $ 96,437 94,135 28,177 9,205 5,018 58,098 413,520 $

• 152 -

G-SHANK ENTERPRISE CO., LTD.

25. Statement of Other Payables - Related Parties

December 31, 2024

(In Thousands of New Taiwan Dollars)

Name of related party	Description		Amount	Note
SUNFLEX TECHNOLOGY CO., LTD. G-SHANK JAPAN CO., LTD. Total			2,789 $ 26 2,815 $

• 153 -

G-SHANK ENTERPRISE CO., LTD.

26. Statement of Income Tax Liabilities -Current

December 31, 2024

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Items	Summary		Amount	Note
Income tax liabilities -current	Corporate Income Tax		13,166 $

• 154 -

G-SHANK ENTERPRISE CO., LTD.

27. Statement of Other Current Liabilities

December 31, 2024

(In Thousands of New Taiwan Dollars)

			(In Thousands of	New Taiwan Dollars)
Items	Summary		Amount	Note
Temporary credits Receipts under custody Total			10,574 $ 4,091 14,665 $

• 155 -

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Corporate Bonds Payable December 31, 2024

										(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Bond Name	Trustee	Issue Date	Interest Payment Date	Coupon Rate			Amount				Redemption Method	Collateral Status	Notes
					Total Issued Amount	Amount Repaid	Amount Converted	Ending Balance	Unamortized Premium (Discount)	Book Value
Domestic Second Unsecured Convertible Corporate Bond	BANK SINOPAC COMPANY LIMITED	2024/1/26	-	0%	1,000,000 $	- $	219,700 $	780,300 $	(29,569) $	750,731 $	Please refer to Note 6.(12) of parent company only financial report.	None.

• 156 -

G-SHANK ENTERPRISE CO., LTD. 29. Statement of Deferred Tax Liabilities

December 31, 2024

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(26)(D) of the parent company only financial report.

30. Statement of Net Defined Benefit Liabilities - Noncurrent December 31, 2024

(In Thousands of New Taiwan Dollars) For relevant information, please refer to Note 6.(13)(A)(c) of the parent company only financial report.

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G-SHANK ENTERPRISE CO., LTD.

31. Statement of Deposits Received

December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Guarantee deposits received	Lease Deposits and Others		4,894 $

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G-SHANK ENTERPRISE CO., LTD.

32. Statement of Net Operating Revenues

For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Total Operating Revenue Sales revenue Parts Mold Tools Product Total Less: Sales returns Sales discounts and allowances Net sales revenue	2,499,842 KPCS 159 sets 13,201 units 1,054 units		1,895,647 $ 74,919 22,576 32,463 2,025,605 (4,351) (4,794) 2,016,460 $

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G-SHANK ENTERPRISE CO., LTD.

33.Statement of Operating Costs

For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Self-production： Direct raw material Beginning inventory Add：Current net material purchased Work-in-process cover into Other cover into Inventory surplus Less：Ending inventory Reclassified product Rendering work-in-process Current period consumption Direct labor Manufacturing overhead Manufacturing cost Add：Beginning work-in-process Goods Transfer In Raw material transfer in Finished goods transfer in Less：Ending work-in-process Reclassify raw materials Reclassify expenses Cost of finished goods Add：Beginning finished goods Inventory surplus or deficit Less：Ending finished goods Reclassify assets Reclassify work-in-process Reclassify expenses Cost of goods sold (Self-production) Buying and selling: Beginning inventory Add：Current net material purchased Raw material transfer in Expenses transfer in Less：Ending finished goods Reclassify work-in-process Cost of goods sold (Buying and selling) Other operating cost: Inventory surplus Recovery of net realizable value of inventory Total operation cost			53,780 $ 583,481 110,885 21 2,275 (54,897) (7,066) (789) 687,690 286,354 760,477 1,734,521 83,381 1 789 308,051 (95,252) (110,885) (2,747) 1,917,859 73,393 3,337 (71,965) (8,567) (308,051) (142) 1,605,864 363 18,360 7,066 57 (295) (1) 25,550 (5,612) (9,574) 1,616,228 $

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G-SHANK ENTERPRISE CO., LTD.

34. Statement of Manufacturing Expenses

For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Wages and salaries Rent expense Repairs and maintenance expense Packing expenses Utilities expense Insurance expense Processing expense Depreciations Depletions and amortizations Meal expense Indirect materials Consumables Ole mold parts expenses Other expenses Total			111,725 $ 1,630 13,697 32,733 26,579 35,885 304,115 58,512 17,320 9,423 104,563 31,429 9,031 3,835 760,477 $

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G-SHANK ENTERPRISE CO., LTD.

35.Statement of Selling and Marketing Expenses

For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Wages and salaries Traveling Expense Freight Utilities expense Insurance expense Entertainment expenses Depreciations Various amortization Export expenses Packing expenses Services expense Other expenses Total			58,655 $ 4,875 3,150 4,116 6,345 2,007 2,344 65 6,787 2,116 1,858 7,128 99,446 $

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G-SHANK ENTERPRISE CO., LTD.

36.Statement of General and Administrative Expenses

For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Wages and salaries Traveling Expense Repairs and maintenance expense Utilities expense Insurance expense Taxes Depreciations Various amortization Employee benefits/welfare Training expense Miscellaneous purchases Environmental maintenance fee Services expense Consumables Other expenses Total			144,912 $ 2,788 3,970 7,591 10,405 6,627 11,056 112 3,193 1,046 2,048 2,653 2,524 2,807 18,107 219,839 $

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G-SHANK ENTERPRISE CO., LTD.

37. Statement of Research and Development Expenses

For the year ended December 31, 2024

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Wages and salaries Utilities expense Insurance expense Depreciations Various amortization Consumables Other expenses Total			32,425 $ 3,310 2,830 805 128 540 1,897 41,935 $

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G-SHANK ENTERPRISE CO., LTD.

38.Statement of Loss (reversal) of expected credit loss For the year ended December 31, 2024

For relevant information, please refer to Note 6.(4) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

39.Statement of Other Operating Income and Expenses, Net For the year ended December 31, 2024

For relevant information, please refer to Note 6.(23) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD. 40.Statement of Non-operating Income and Expenses For the year ended December 31, 2024

For relevant information, please refer to Note 6.(24) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

41.Statement of Employee Benefits, Depreciation, and Amortization Expenses Incurred in the Current Period by Functional Categories

For the year ended December 31, 2024

For relevant information, please refer to Note 6.(22) of the parent company only financial report.

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