GS - Interim / Quarterly Report 2025

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

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

INDEPENDENT AUDITOR’S REVIEW REPORT

To: G-Shank ENTERPRISE CO., LTD.

Introduction

We have reviewed the accompanying consolidated balance sheets of G-Shank Enterprise Co., Ltd. and its subsidiaries as of June 30, 2025 and 2024 , the consolidated statements of comprehensive income for the three months and six months ended June 30, 2025 and 2024 , and the consolidated statements of changes in equity and of cash flows for the six months ended June 30, 2025 and 2024, and notes to the financial statements, including a summary of significant accounting policies. (collectively referred to as the consolidated financial statements). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effedt by the Financial Supervisory Commission (FSC) of the Republic of China. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except for the matter described in the Basis for Qualified Conclusion paragraph, we conducted our review in accordance with TWSRE 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of interim financial information consists primarily of inquiries (mainly of persons responsible for financial and accounting matters), analytical procedures, and other review procedures. A review is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4.(2) of the consolidated financial statements, the same period financial statements of the insignificant subsidiaries included in the aforementioned consolidated financial statements have not been reviewed by the independent auditors. The total assets were NT$3,421,614 thousand and NT$3,519,883 thousand, accounted for 29.44% and 28.22% of the total consolidated assets as of June 30, 2025 and 2024, respectively. The total liabilities were NT$458,298 thousand and NT$508,934 thousand, accounted for 12.48% and 11.47% of total consolidated liabilities, respectively. The total consolidated profits and losses were NT$(179,288) thousand, NT$119,179 thousand and NT$(69,932) thousand, NT$233,523 thousand, constituting 39.04%, 29.44% and 33.14%, 29.6% of the consolidated total comprehensive income for the three months and six months periods then ended June 30, 2025 and 2024, respectively. As stated in Note 6.(8) of the consolidated

financial statements, the investment book amount under the equity method on the consolidated balance sheet of G-Shank Enterprise Co., Ltd. and its subsidiaries were NT$206,104 thousand and NT$185,528 thousand, accounted for 1.77% and 1.49% of the total consolidated assets, respectively, as of June 30, 2025 and 2024, respectively. The amount of profit (loss) from the affiliated enterprise under the equity method was NT$(9,498) thousand, NT$6,265 thousand and NT$(8,699) thousand and NT$11,540 thousand, accounted for 2.07%, 1.55% and 4.12% ,1.46% of the total consolidated profits and losses for the period of the three months and six months periods then ended June 30, 2025 and 2024, respectively, which were calculated according to the same period financial statements of the invested companies that have not been reviewed by the independent auditors. In addition, the relevant information of the aforementioned subsidiaries as disclosed in Note 13 to the consolidated financial statements and the invested companies under the equity method have not been reviewed by the independent auditors.

Conclusion

In our conclusion, except for the financial statements of the insignificant subsidiaries and the invested companies under the equity method as stated in the “Foundation for a qualified conclusion ” paragraph and the relevant information disclosed in Note 13 to the consolidated financial statements may have affected the consolidated financial statements if they have been reviewed by the independent auditors, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of G-Shank Enterprise Co., Ltd. as at June 30, 2025 and 2024, and of its consolidated financial performance for the three-month and six-month periods then ended, and of its consolidated cash flows for the six months ended June 30, 2025 and 2024, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Lu, Jui-Wen Li, Pin-chueh

Diwan & Company August 4, 2025

Notice to Readers

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

Accordingly, the accompanying financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, the company cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(June 30, 2025 & 2024 have been Reviewed、December 31, 2024 have been audited)

(In Thousands of New Taiwan Dollars)

ASSETS	ASSETS	Notes	June 30, 2025	June 30, 2025	December 31, 2024	December 31, 2024	June 30, 2024	June 30, 2024
Code	Accounts		Amount	%	Amount	%	Amount	%
11xx 1100 1110 1150 1170 1180 1200 1220 130x 1470 1476 15xx 1510 1517 1550 1600 1755 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 Current tax assets Inventory Prepayments and Other current assets Other financial assets-current Total current assets Noncurrent Asset Financial assets at fair value through profit or loss - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Investments accounted for using equity method Property, Plant and Equipment Right-of-use asset Intangible assets Deferred tax assets Prepayments for equipment Refundable deposits Other noncurrent assets, others Total noncurrent Asset Total Assets	4 & 6.(1) 6.(2) 6.(3) & 6.(4) 6.(4) 7 6.(4) 4 & 6.(29) 6.(5) 4, 6.(6) & 8 6.(2) & 6.(13) 6.(7) & 6.(21) 6.(8) & 7 6.(9) & 9 6.(10) & 6.(14) 6.(11) 4 & 6.(29) 6.(4) & 8	3,006,610 $ 2,215,012 24,110 1,515,852 18 51,694 1,748 858,257 61,989 28,387 7,763,677 539 259,466 206,104 3,045,670 227,427 3,585 25,686 70,783 6,528 13,147 3,858,935 11,622,612 $	26 19 - 13 - 1 - 7 1 - 67 - 2 2 26 2 - - 1 - - 33 100	3,522,837 $ 2,333,708 31,136 1,453,314 - 69,728 10,842 860,592 55,743 29,613 8,367,513 1,951 444,031 177,776 3,037,858 251,407 1,504 9,828 28,942 3,781 16,349 3,973,427 12,340,940 $	29 19 - 12 - 1 - 7 - - 68 - 4 1 25 2 - - - - - 32 100	5,686,366 $ 1,871,881 49,423 1,429,001 51 51,960 5,027 845,981 66,633 31,345 10,037,668 2,952 374,593 185,528 1,248,368 256,467 1,725 10,027 337,851 3,820 14,399 2,435,730 12,473,398 $	46 15 - 11 - - - 7 1 - 80 - 3 2 10 2 - - 3 - - 20 100

(CONTINUING)

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

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

(June 30, 2025 & 2024 have been Reviewed、December 31, 2024 have been audited)

					(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Liabilities and Equity		Notes	June 30,2025		December 31,2024		June 30,2024
Code	Accounts		Amount	%	Amount	%	Amount	%
21xx 2100 2130 2170 2180 2200 2220 2230 2280 2300 25xx 2530 2570 2580 2640 2645 2xxx 31xx 3100 3110 3140 3200 3300 3310 3320 3350 3400 3410 3420 36xx 3xxx	Current liabilities Short-term loans Contract liabilities - current Accounts payable Accounts payable-related parties Other payables Other payables-related parties Current tax liabilities Lease liabilities-current Other current liabilities Total current liabilities Non-current liabilities Bonds payable Deferred tax liabilities Lease liabilities - noncurrent 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 attributable to owners of parent Non-controlling interests Total Equity Total liabilities and equity	6.(12) & 6.(31) 6.(24) 7 6.(9), 6.(15), 6.(20) & 6.(25) 7 4 & 6.(29) 6.(14) & 6.(31) 6.(13) & 6.(31) 4 & 6.(29) 4, 6.(14) & 6.(31) 4 & 6.(15) 6.(16) & 6.(23) 6.(13), 6.(17), 6.(20) & 6.(23) 6.(18) & 6.(20) 6.(19) 6.(20) 6.(21), 6.(22) & 6.(28) 6.(7), 6.(8), 6.(21) & 6.(28) 6.(22)	100,000 $ 22,075 548,887 378 1,374,586 2,985 117,499 46,917 33,047 2,246,374 747,054 600,852 46,477 10,750 19,368 1,424,501 3,670,875 2,108,960 - 922,359 1,157,252 284,690 3,130,602 (483,848) 238,642 7,358,657 593,080 7,951,737 11,622,612 $	1 - 5 - 12 - 1 1 - 20 6 5 1 - - 12 32 18 - 8 10 2 27 (4) 2 63 5 68 100	500,000 $ 20,745 517,367 243 677,601 2,789 226,987 56,371 22,471 2,024,574 750,731 593,915 50,612 10,750 14,032 1,420,040 3,444,614 2,097,755 3,205 1,422,430 1,049,201 284,690 3,216,868 (205,552) 425,283 8,293,880 602,446 8,896,326 12,340,940 $	4 - 4 - 6 - 2 - - 16 6 5 1 - - 12 28 17 - 12 9 2 26 (2) 3 67 5 72 100	1,000,000 $ 40,133 507,060 244 1,011,441 3,738 152,021 60,627 31,398 2,806,662 907,472 627,924 52,127 29,956 11,382 1,628,861 4,435,523 2,066,203 6,718 1,273,018 1,049,201 284,690 2,651,296 (276,004) 359,244 7,414,366 623,509 8,037,875 12,473,398 $	8 1 4 - 8 - 1 1 - 23 7 5 1 - - 13 36 17 - 10 8 2 21 (2) 3 59 5 64 100

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

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Reviewed, Not Audited)

					(In Thousands of New	(In Thousands of New	Taiwan Dollars, Except Earnings Per Share)	Taiwan Dollars, Except Earnings Per Share)	Taiwan Dollars, Except Earnings Per Share)	Taiwan Dollars, Except Earnings Per Share)
Code	Accounts	Notes	For the three mont		hs ended June 30		For the six month		s ended June 30
			2025	%	2024	%	2025	%	2024	%
4000 5000 5900 6000 6100 6200 6300 6450 6500 6900 7000 7100 7010 7020 7050 7060 7230 7900 7950 8200 8300 8310 8316 8320 8349 8360 8361 8399 8500 8600 8610 8620 8700 8710 8720 9750 9850	Sales revenue Operating costs Gross profit from operations Operating expense Selling 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 Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit of associates accounted for using the equity method Foreign exchange gains (loss) Total non-operating income and expenses Profit from continuing operations before tax Income Tax Expense Profit for the period Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss: Unrealised gain (loss) on financial assets measured at fair through other comprehensive income Share of the other comprehensive (loss) income of associates Income tax benefit (expense) relating to items that will not be reclassified subsequently 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: Exchange differences on translating foreign operations 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 (loss) for the period Net profit attributable to： Owners of the Corporation Non-controlling interests Total comprehensive income attributable to： Owners of the Corporation Non-controlling interests Earnings per share (dollar) Basic Diluted	6.(24) & 7 6.(5), 6.(15), 6.(25) & 7 6.(14), 6.(15) & 6.(25) 6.(4) 6.(9), 6.(25) & 6.(26) 6.(27) 6.(27) 6.(2) , 6.(9), 6.(13) & 6.(27) 6.(13), 6.(14) & 6.(27) 6.(8) & 6.(27) 6.(27) 4 & 6.(29) 6.(7) , 6.(8) & 6.(28) 6.(30)	1,811,516 $ (1,261,250)	100 (70) 30 (4) (7) (2) - (13) - 17 3 1 (12) - (1) (3) (12) 5 (3) 2 (4) - - (4) (23) - (23) (27) (25) - 2 2 (24) (1) (25)	1,648,461 $ (1,087,491)	100 (66) 34 (4) (8) (3) - (15) - 19 4 1 2 (1) - 1 7 26 (6) 20 1 - - 1 4 - 4 5 25 18 2 20 22 3 25	3,457,947 $ (2,425,790)	100 (70) 30 (4) (8) (2) - (14) - 16 3 1 (5) (1) - (1) (3) 13 (5) 8 (5) - - (5) (9) - (9) (14) (6) 6 2 8 (7) 1 (6)	3,052,951 $ (2,069,325)	100 (68) 32 (4) (9) (3) - (16) - 16 4 1 4 (1) - 2 10 26 (7) 19 2 - - 2 5 - 5 7 26 17 2 19 23 3 26
			550,266		560,970		1,032,157		983,626
			(72,804) (134,214) (41,713) (65)		(72,364) (136,184) (40,502) (1,092)		(141,612) (261,299) (82,596) 55		(138,421) (280,356) (81,076) (831)
			(248,796)		(250,142)		(485,452)		(500,684)
			95		95		191		191
			301,565		310,923		546,896		483,133
			50,951 18,461 (207,446) (4,563) (9,498) (50,608)		65,987 14,923 25,661 (9,374) 6,265 17,191		110,520 22,937 (171,783) (11,046) (8,699) (41,364)		125,352 16,039 119,511 (17,915) 11,540 49,352
			(202,703)		120,653		(99,435)		303,879
			98,862 (56,971)		431,576 (103,806)		447,461 (154,758)		787,012 (208,667)
			41,891		327,770		292,703		578,345
			(83,172) (1,421) -		13,459 5,265 -		(184,565) (2,338) -		53,690 5,374 -
			(84,593)		18,724		(186,903)		59,064
			(416,567) -		58,356 -		(316,850) -		151,614 -
			(416,567)		58,356		(316,850)		151,614
			(501,160)		77,080		(503,753)		210,678
			(459,269) $		404,850 $		(211,050) $		789,023 $
			8,145 $ 33,746		291,550 $ 36,220		232,523 $ 60,180		514,938 $ 63,407
			41,891 $		327,770 $		292,703 $		578,345 $
			(440,958) $ (18,311)		361,539 $ 43,311		(232,676) $ 21,626		707,636 $ 81,387
			(459,269) $		404,850 $		(211,050) $		789,023 $
			0.04 $		1.41 $		1.10 $		2.55 $
			0.04 $		1.31 $		1.07 $		2.39 $

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

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Reviewed, Not Audited)

									(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
				Equity Att	ributable to Owners	of the Corporation				Non-controlling Interests	Total Equity
	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	Unrealized Gains and Losses on Financial
BALANCE AT JANUARY 1, 2024 Appropriation of 2023 earnings (Note 6.(20)) Legal reserve Cash dividends to ordinary shareholders Unclaimed dividends past statutory expiry by shareholders Cash dividends distribution from capital surplus Net profit for the six months ended June 30, 2024 Other comprehensive income for the six months ended June 30, 2024 Total comprehensive income for the six months ended June 30, 2024 Cash Capital Increase Equity component arising from the issuance of convertible bonds - recognized stock options Changes in the net interest of associates recognised under the equity method Share-based payment transaction Conversion of convertible bonds Cash dividends paid by subsidiaries to non-controlling interests BALANCE AT JUNE 30, 2024 BALANCE AT JANUARY 1, 2025 Appropriation of 2024 earnings (Note 6.(20)) Legal reserve Cash dividends to ordinary shareholders Unclaimed dividends past statutory expiry by shareholders Exercise the right of disgorgement Cash dividends distribution from capital surplus Net profit for the six months ended June 30, 2025 Other comprehensive income for the six months ended June 30, 2025 Total comprehensive income for the six months ended June 30, 2025 Changes in the net interest of associates recognised under the equity method share-based payment transaction Conversion of convertible bonds Cash dividends paid by subsidiaries to non-controlling interests BALANCE AT JUNE 30, 2025	1,906,543 $ - - - - - - - 150,000 - - 9,660 - - 2,066,203 $ 2,097,755 $ - - - - - - - - - 9,050 2,155 - 2,108,960 $	1,900 $ - - - - - - - - - - (1,900) 6,718 - 6,718 $ 3,205 $ - - - - - - - - - (2,630) (575) - - $	489,905 $ - - 49 (205,844) - - - 716,447 189,655 366 43,573 38,867 - 1,273,018 $ 1,422,430 $ - - 44 28 (526,845) - - - 8,083 9,612 9,007 - 922,359 $	981,760 $ 67,441 - - - - - - - - - - - - 1,049,201 $ 1,049,201 $ 108,051 - - - - - - - - - - - 1,157,252 $	284,690 $ - - - - - - - - - - - - - 284,690 $ 284,690 $ - - - - - - - - - - - - 284,690 $	2,512,565 $ (67,441) (308,766) - - 514,938 - 514,938 - - - - - - 2,651,296 $ 3,216,868 $ (108,051) (210,738) - - - 232,523 - 232,523 - - - - 3,130,602 $	(409,638) $ - - - - - 133,634 133,634 - - - - - - (276,004) $ (205,552) $ - - - - - - (278,296) (278,296) - - - - (483,848) $	300,180 $ - - - - - 59,064 59,064 - - - - - - 359,244 $ 425,283 $ - - - - - - (186,903) (186,903) 262 - - - 238,642 $	6,067,905 $ - - (308,766) 49 (205,844) 514,938 192,698 707,636 866,447 189,655 366 51,333 45,585 - 7,414,366 $ 8,293,880 $ - (210,738) 44 28 (526,845) 232,523 (465,199)	683,605 $ - - - - 63,407 17,980 81,387 - - - - - (141,483) 623,509 $ 602,446 $ - - - - - 60,180 (38,554) 21,626 - - - (30,992) 593,080 $	6,751,510 $ - (308,766) 49 (205,844) 578,345 210,678
											789,023
											866,447 189,655 366 51,333 45,585 (141,483)
											8,037,875 $
											8,896,326 $ - (210,738) 44 28 (526,845) 292,703 (503,753)
									(232,676) 8,345 16,032 10,587 - 7,358,657 $		(211,050)
											8,345 16,032 10,587 (30,992)
											7,951,737 $

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

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Reviewed, Not Audited)

	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Description	For the six months ended June 30
	2025	2024
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 loss (gain) Net loss (gain) on financial assets and liabilities at fair value through profit or loss Interest expenses Interest income Dividends income Share-based payment expenses Share of loss (profit) of associates accounted for using equity method Loss (Gain) on disposal of property, plant and equipment Unrealized foreign exchange gains 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 Inventories Prepayments and Other current assets Current contract Accounts payable Accounts payable-related parties Other payables Other payables-related parties Other current liabilities Cash generated from operating activities: Interest received Dividends received Interest paid Income tax paid Net cash flows from operating activities	447,461 $ 99,987 17,523 (55) 173,078 11,046 (110,520) (16,964) 4,062 8,699 (1,649) (54,812) 262 (55,507) 7,026 (65,230) (18) 16,055 (854) (9,246) 1,330 35,152 135 4,065 196 10,576 521,798 111,391 16,964 (4,674) (264,073) 381,406	787,012 $ 86,712 7,868 831 (119,991) 17,915 (125,352) (11,874) 36,490 (11,540) 83 (73,155) - (309,092) (8,096) (91,486) (48) 5,116 (47,753) (18,460) 20,702 71,515 (1,033) 15,568 1,164 11,031 244,127 127,611 11,874 (10,215) (156,520) 216,877

(Continuing)

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUING)

(Reviewed, Not Audited)

	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Description	For the six-month ended June 30
	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of investments accounted for using the equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Acquisition of intangible assets Decrease (increase) in other current financial assets Increase in other non-current assets - other Increase in prepayments for business facilities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in Short-term borrowings Issue convertible bonds Increase in guarantee deposits received Cash payment for the principal portion of the lease liabilities Capital increase in cash Employee exercise of stock warrant Cash dividends paid by subsidiaries to non-controlling interests Unclaimed dividends past statutory expiry by shareholders Exercise the right of disgorgement Net cash (used in) provided by financing activities Effect of changes in exchange rate on cash and cash equivalents Net increase (decrease) 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	(31,282) $ (196,039) 4,595 253 (2,608) 1,139 (13,929) (42,645) (280,516) (400,000) - 6,106 (6,692) - 11,970 (30,992) 44 28 (419,536) (197,581) (516,227) 3,522,837 3,006,610 $	- $ (73,104) 1,496 (33) (406) (635) (10,422) (15,475) (98,579) (210,000) 1,134,903 713 (6,491) 866,447 14,843 (141,483) 49 - 1,658,981 201,228 1,978,507 3,707,859 5,686,366 $

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

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

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

(Reviewed, Not Audited)

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 consolidated financial reports of the Company and its subsidiaries (hereinafter referred to as "the Group") for the periods from January 1 to June 30 of 2025 and 2024 have been approved by the Company's Board of Directors and released on August 4, 2025.

10 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

3. APPLICATION OF THE NEWLY ISSUED AND REVISED STANDARDS AND INTERPRETATIONS

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

Since January 1, 2025, the Group has been applying the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations, and interpretations announcements applicable in 2025, as announced on the website of the Securities and Futures Bureau of the Financial Supervisory Commission. The new/amended/revised standards and interpretations that have been released by the International Accounting Standards Board (hereinafter referred to as IASB) and recognized and released by the FSC in 2025 are as follows:

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

The management of the Group has assessed the amendments to the regulations approved and announced by the FSC, and concluded that they do not have a material impact on the Group ’ s consolidated financial statements.

(2) The IASB has issued new/amended/revised standards and interpretations that have been recognized by the FSC as effective but have not yet been adopted:

New/Revision/Amendment Standards and Explanations	Content	Effective in the annual period commencing from thefollowing date of IASB
IFRS 7 and IAS 9 (amendments)	Amendments to the Classification and Measurement of Financial Instruments	January 1, 2026

The management team of this group is currently evaluating the potential impacts of the aforementioned criteria revisions, therefore it is not possible at this time to reasonably estimate the effects on the consolidated financial statements of this group.

11 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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

New/Revision/Amendment Standards and Explanations	Content Sale or investment of assets between investors and their affiliated enterprises or joint ventures Insurance contracts Amendments to IFRS17 First-time application of IFRS 17 and IFRS 9 - comparative information IFRS accounting standards annual improvements - volume 11 Amendments to the classification and measurement of financial instruments Nature-dependent electricity contracts Presentation and disclosure in financial statements Subsidiaries without Public Accountability: Disclosures	Effective in the annual period commencing from the following date of IASB
IFRS 10 and IAS 28 (amendments) IFRS 17 IFRS 17 (amendments) IFRS 17 (amendments) IFRS Partial Amendments to IFRS 7 and IFRS 9 (amendments) IFRS 7 and IAS 9 (amendments) IFRS 18 IFRS 19		To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2026 January 1, 2026 January 1, 2026 January 1, 2027 January 1, 2027

The Group’s management is currently evaluating the potential impact of the aforementioned new standards or amendments and is therefore unable to reasonably estimate their effect on the Group’s consolidated financial statements at this time.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

4. SUMMARY OF MAJOR ACCOUNTING POLICIES

The major accounting policies adopted for the preparation of the consolidated financial statements are summarized as follows, unless otherwise provided, these accounting policies are uniformly applicable to all reporting periods ：

(1) Financial report preparation and measurement basis

(A) Statement of Compliance

The consolidated financial statements are prepared in accordance with the Financial Reporting Standards for Issuers of Securities (hereinafter referred to as the reporting standards) and International Accounting Standard 34 "Interim Financial Reporting" as endorsed and issued by the Financial Supervisory Commission.

(B) Measurement basis

Except for the financial instruments measured at fair value, this consolidated 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 Group is the currency used in the main economic environment where it operates. This consolidated 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) The preparation scope of consolidated financial report

The company controls the invested company when the company receives variable remuneration from the invested company or is entitled to receiving such variable remuneration; also, the company can influence such remuneration through its power over the invested company. The company controls the invested company only when meeting the following three control elements:

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(A) The power over the invested company, that is, with the vested power to lead the relevant activities of the invested company;
(B) The risk exposure or rights to the variable remuneration resulted from the investment in the invested company; and
(C) Exercise the power over the invested company to affect the company’s remuneration.

If there are facts and circumstances indicating that one or more of the aforementioned three control factors has changed, the company will reevaluate whether the control over the invested company is intake.

The subsidiaries included in the consolidated financial report and their changes are as follows:

Investingcompany	Subsidiary	Location	Business nature	Shareholdingratio	Shareholdingratio	(%)
				June 30, 2025	December 31, 2024	June 30, 2024
The company The company The company The company The company The company The company The company The company	CHIN DE INVESTMENT CO., LTD. GRAND STAR ENTERPRISES L.L.C. G-SHANK, INC. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. G-SHANK ENTERPRISE (M) SDN. BHD. G-SHANK JAPAN CO., LTD. GREAT-SHANK CO., LTD. G-SHANK PHILIPPINES CORP.	Taiwan Anguilla USA China Shanghai (Note) China Suzhou (Note) Malaysia Japan Tokyo Thailand Philippines	General investment General investment Sales of stamping parts molds, and fixtures, and holding company Precision progressive die and hardware products Planer, milling machine or die machine, precision progressives die, and hardware products Stamping parts molds and fixtures International trade Precision progressive die and hardware products Precision progressive die and hardware products	100.00 100.00 100.00 85.00 5.86 92.33 58.89 85.00 100.00	100.00 100.00 100.00 85.00 5.86 92.33 58.89 85.00 -	100.00 100.00 100.00 85.00 5.86 92.33 58.89 85.00 -

(Continuing to next page)

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

(Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

Investingcompany	Subsidiary	Location	Business nature	Shareholdingratio	Shareholdingratio	(%)
				June 30, 2025	December 31, 2024	June 30, 2024
GRAND STAR ENTERPRISES L.L.C. (Note 3) GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. GLOBAL STAR INTERNATION AL CO., LTD. G-SHANK, INC. G-SHANK ENTERPRISE (M) SDN. BHD. SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD.	GLOBAL STAR INTERNATIONAL CO., LTD. HONG JING (SHANGHAI) ELECTRONICS CO., LTD. G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD. XIAMEN G-SHANK PRECISION MACHINERY CO., LTD. G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. QINGDAO G-SHANK PRECISION SDN.BHD. SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD TIANJIN G-SHANK PRECISION MACHINERY CO., LTD. SHENZHEN G-SHANK PRECISION SDN.BHD. SHENZHEN G-BAO PRECISION SDN.BHD. G-SHANK DE MEXICO, S.A. DE C.V. PT INDONESIA G-SHANK PRECISION HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD.	Cayman Islands China Shanghai (Note) China Dongguan (Note) China Xiamen (Note) China Suzhou (Note) China Qingdao (Note) China Shanghai (Note) China Tianjin (Note) China Shenzhen (Note) China Shenzhen (Note) Mexico Indonesia China Hubei (Note)	General investment Precision progressive die and hardware products Precision progressive die and hardware products Precision progressive die and hardware products Planer, milling machine or die machine, precision progressive die, and hardware products Precision progressive die and hardware products Precision progressive die and hardware products Precision progressive die and hardware products Precision progressive die and hardware products Precision progressive die and hardware products Stamping parts molds and fixtures Stamping parts molds and fixtures Precision progressive die and hardware products, and electroplating processing	100.00 80.19 51.00 79.60 94.14 92.83 85.00 88.20 93.85 91.43 100.00 94.00 100.00	100.00 80.19 51.00 79.60 94.14 92.83 85.00 88.20 93.85 91.43 100.00 94.00 100.00	100.00 80.19 51.00 79.60 94.14 92.83 85.00 88.20 93.85 91.43 100.00 94.00 100.00

(Continuing to next page)

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

(Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

Investingcompany	Subsidiary	Location	Business nature	Shareholdingratio	Shareholdingratio	(%)
				June 30, 2025	December 31, 2024	June 30, 2024
G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD. SHENZHEN G-BAO PRECISION SDN.BHD.	DONGGUAN QIAOJU TRADING CO., LTD. HUI ZHOU G-BAO PRECISION SDN.BHD.	China Dongguan (Note) China Huizhou (Note)	Plastic hardware wholesale and import/export business Precision progressive die and hardware products	100.00 100.00	100.00 100.00	100.00 100.00

Note ： The aforementioned companies are established in China where the foreign exchange control is enforced; therefore, the transfer of funds is restricted by local law and regulations. As of June 30, 2025, December 31, 2024, and June 30, 2024, the cash, bank deposits, and financial assets-current measured at amortized cost and other financial assets-current of the companies that are subject to foreign exchange control regulation were NT$1,986,584 thousand, NT$2,006,013 thousand, and NT$2,222,224 thousand, respectively.

G-SHANK ENTERPRISE CO., LTD. has prepared the consolidated financial reports with the separate statements from all subsidiaries accordingly. Except for SHANGHAI G- SHANK PRECISION MACHINERY CO., LTD., GRAND STAR ENTERPRISES L.L.C. and GLOBAL STAR INTERNATIONAL Co., Ltd., which financial statements for the first half of 2025 and 2024 having been audited by certified accounts, the financial statements of the remaining subsidiary companies have not been audited by certified accountants during the same accounting periods. The total assets of the unaudited subsidiary companies as of June 30, 2025 and 2024 are NT$3,421,614 thousand and NT$3,519,883 thousand, respectively. The total liabilities are NT$458,298 thousand and NT$508,934 thousand respectively. The total consolidated profits and losses were NT$(179,288) thousand, NT$119,179 thousand and NT$(69,932) thousand, NT$233,523 thousand, for the three months and six months periods ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the investment and shareholding ratios of the company and its subsidiaries are as follows:

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing) (Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

G-SHANK ENTERPRISE CO., LTD.

==> picture [776 x 386] intentionally omitted <==

----- Start of picture text -----

CHIN DE G-SHANK SHANGHAI GRAND STAR G-SHANK GREAT-SHANK GSHANK
INVESTMENT JAPAN CO., G-SHANK PRECISION ENTERPRISES G-SHANK, ENTERPRISE (M) PHILIPPINES
MACHINERY CO., INC. CO., LTD.
CO., LTD. LTD. LTD. L.L.C. 100.00% SDN. BHD. 85.00% CORP.
100.00% 58.89% 85.00% 100.00% 92.33% 100.00%
GLOBAL STAR G-SHANK DE PT INDONESIA
INTERNATIONAL MEXICO, G-SHANK
CO., LTD. S.A. DE C.V. PRECISION
5.86% 100.00% 100.00% 94.00%
G-SHANK PRECISION
94.14%
MACHINERY
(SUZHOU) CO., LTD.
100.00%
HONG JING G-LONG PRECISION XIAMEN G-SHANK SHANGHAI QINGDAO TIANJIN G-SHANK SHENZHEN SHENZHEN
(SHANGHAI) MACHINERY PRECISION G-SHANK PRECISION G-SHANK PRECISION G-SHANK G-BAO
ELECTRONICS (DONG GUAN) MACHINERY CO., HARDWARE CO., PRECISION MACHINERY CO., PRECISION PRECISION
CO., LTD. CO., LTD. LTD. LTD. SDN.BHD. LTD. SDN.BHD. SDN.BHD.
80.19% 51.00% 79.60% 85.00% 92.83% 88.20% 93.85% 91.43%
DONGGUAN HUBEI HANSTAR HUI ZHOU
QIAOJU TRADING ELECTRONICS G-BAO PRECISION
CO., LTD. TECHNOLOGY CO., LTD. SDN.BHD.
100.00% 100.00% 100.00%
----- End of picture text -----

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(3) Principles for the preparation of consolidated financial report

(A) The consolidated financial report is prepared in accordance with International Financial Reporting Standards No. 10 “Consolidated Financial Statements.” The assets and liabilities, equity, income, expenses and losses, and cash flows related to the transactions between business entities of the Group were written-off at the time of preparing the consolidated financial report; also, similar transactions and events under similar circumstances were handled in accordance with the uniform accounting policies. The consolidated financial report included income and expenses of the subsidiary incurred from the date the control was obtained to the date the control terminated. The comprehensive profit and loss are attributable to the shareholders’ equity and non-controlling interests of the company, even if it causes losses to the non-controlling interests eventually.

- (B) Transactions between shareholders of the company and non controlling interests

(a) Without resulting in “loss of control”

It is handled as an equity transaction. The difference between the fair value of any consideration paid for the purchase of non-controlling interests and the net book value of the relevant assets acquired from the subsidiary is recognized as equity and is attributable to the shareholders of the company. The profit or loss from the disposal of non-controlling interests is also recognized in equity.

(b) Resulting in “loss of control”

If a change in the ownership of the subsidiary’s equity results in the loss of control, the assets, liabilities, non-controlling interests, and all other equity constituents related to the former subsidiary are delisted on the date of loss of control; also, the difference among the said delisted amount and the fair value of the considerations collected, the share distribution for the equity transaction conducted with the former subsidiary, and the fair value of any retained investment are recognized in profit and loss. In addition, any remaining investment in the former subsidiary is measured at the fair value on the date of “loss of control,” and it is regarded as the fair value of the originally recognized financial asset, or as the cost of the original investment in an affiliated enterprise or a joint venture.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(4) 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.
(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 remeasured amount is included in other comprehensive profits and losses when it occurs; also, it is immediately recognized in the retained earnings. The pension cost in the interim period is calculated according to the pension cost rate actuarially calculated at the end of the previous year for the period from the beginning to the end of the year; also, the major market fluctuations, major reductions, settlements, or other significant non-reoccurring events after the end of the year should be adjusted and disclosed accordingly.
(5) 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.
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(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 Group, 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.
(G) The income tax expense of the interim reporting period is measured according to the best estimated annual effective tax rate by the management, that is, apply the estimated annual average effective tax rate to the net income before tax in the interim reporting period. For any change in the legislated tax rate that occurred in the interim reporting period, the relevant income tax effect is recognized in a lump sum during the said interim reporting period.

(6) Other significant accounting policies

The other significant accounting policies adopted in preparing this consolidated financial report are the same as those in Note 4 of the 2024 consolidated financial report. Please refer to the Group’s 2024 consolidated financial report for details.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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

The management must make judgments, estimations, and assumptions when preparing the Group’s consolidated 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.

The significant judgments made by the management of the Group while preparing this consolidated financial report, as well as the main causes of uncertainty in assumptions and estimations about the future are the same as those in Note 5 of the 2024 consolidated financial report. Please refer to the Group’s 2024 consolidated financial report for details.

6. DESCRIPTION OF IMPORTANT ACCOUNTING ITEMS

(1) Cash and cash equivalents

Cash and petty cash Checking deposit and savings deposit Time deposits Total	June 30,2025 $5,615 1,265,935 1,735,060 $3,006,610	December 31,2024 $9,358 1,621,921 1,891,558 $3,522,837	June 30,2024
			$6,990 2,651,737 3,027,639
			$5,686,366

(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.

21 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(2) Financial assets-current measured at fair value through profit and loss

Current items: Financial assets measured at fair value through profit and loss mandatorily Acquisition cost: Funds Bonds SWAP contracts Subtotal Evaluation adjustment: Funds Bonds SWAP contracts Subtotal Total Non-current items: Financial assets measured at fair value through profit or loss Embedded derivative financial instruments	June 30,2025 $56,766 2,231,562 - 2,288,328 2,784 (76,100) - (73,316) $2,215,012 $539	December 31,2024 $226,970 1,988,242 - 2,215,212 2,517 115,979 - 118,496 $2,333,708 $1,951	June 30,2024
			$97,154 1,684,811 -
			1,781,965
			1,267 84,181 4,468
			89,916
			$1,871,881
			$2,952

(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:
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Nominal principal Financial instrument (NT$ Thousand) Currency Due date June 30, 2025: None.

December 31, 2024: None.

June 30, 2024 SWAP contract SWAP contract SWAP contract SWAP contract Total	USD1,300 USD:NTD 2024.07.31 USD1,000 USD:NTD 2024.08.16 USD1,700 USD:NTD 2024.10.29 USD3,700 USD:NTD 2025.01.10 USD7,700

The net profits arising from foreign exchange transactions were NT$13,838 thousand and NT$18,627 for the three-month and six-month periods then ended June 30, 2024, respectively.

(B) The Group's valuation (losses) profits of financial assets at fair value through income were NT$(207,141) thousand, NT$26,211 thousand, NT$(173,078) thousand, and NT$119,991 thousand, for the three-month and six-month periods ended June 30, 2025 and 2024, 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 Group’s financial assets measured at fair value through profit and loss.
(E) The disclosure of information regarding embedded derivative financial instruments can be found in Notes 6.(13) and 12 of the consolidated financial statements.
(3) Notes receivable - net

Notes receivable Less: Allowance for loss Net amount	June 30,2025 $24,110 - $24,110	December 31,2024 $31,136 - $31,136	June 30,2024
			$49,423 -
			$49,423

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(4) Net Accounts Receivable and Collections

Accounts receivable Less: Allowance for loss Net amount Collection of receivables (classified under other non-current assets - others) Less: Allowance for losses Net amount	June 30,2025 $1,519,170 (3,318) $1,515,852 $21,755 (21,755) $-	December 31,2024 $1,456,912 (3,598) $1,453,314 $23,345 (23,345) $-	June 30,2024
			$1,433,206 (4,205)
			$1,429,001
			$23,168 (23,268)
			$-

(A) The allowance for loss of the Group’s notes receivable, accounts receivable, other receivable, and collection of receivables is simply measured by the expected credit losses amount throughout the duration. The notes receivable, accounts receivable, other receivable, and collection of receivables 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 Group’s notes receivable, accounts receivable, other receivable and collection of receivables 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 Exchange difference Balance - ending	For the six-monthperiods ended June 30,	For the six-monthperiods ended June 30,
	2025 $26,943 - (55) (1,815) $25,073	2024
		$25,871 831 - 671
		$27,373

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards)

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

(C) Please refer to Note 12.(2)(C)(b) of the consolidated financial report for the disclosure of the credit risk of the Group’s notes receivable, accounts receivable, other receivables, and collection of receivables.

(5) Inventory

	June 30,2025
Cost $294,759 26,205 206,542 389,038 4,834 $921,378	Allowance for loss of inventoryin valuation $15,918 324 21,227 25,098 554 $63,121	Book amount
		$278,841 25,881 185,315 363,940 4,280
		$858,257

	December 31,2024
Cost $295,195 20,593 196,413 410,795 4,348 $927,344	Allowance for loss of inventoryin valuation $19,824 136 21,494 24,537 761 $66,752 June 30,2024	Book amount
		$275,371 20,457 174,919 386,258 3,587
		$860,592

Cost $279,248 16,371 192,616 426,200 3,046 $917,481	Allowance for loss of inventoryin valuation $20,735 95 23,926 26,245 499 $71,500	Book amount
		$258,513 16,276 168,690 399,955 2,547
		$845,981

25 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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

For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
2025 $1,266,804 (4,810) (744) $1,261,250	2024	2025	2024
	$1,102,637 (14,510) (636)	$2,428,632 (952) (1,890)	$2,080,020 (9,395) (1300)
	$1,087,491	$2,425,790	$2,069,325

(B) Reversals of inventory write-downs were recognized due to the recovery or use of raw materials previously written down, or the completion and sale of work-in-process and finished goods, which eliminated the conditions that had caused the net realizable value of inventories to fall below cost. As a result, cost of goods sold decreased by NT$4,810 thousand, NT$14,510 thousand, NT$952 thousand, and NT$9,395 thousand for the three-month and six-month periods ended June 30, 2025 and 2024, respectively.
(C) The aforementioned inventory had not been provided as collateral or mortgaged.

(6) Other financial assets-current

Time deposit Restricted assets – bank deposit Overseas funds repatriation account Term deposit Total	June 30,2025	December 31,2024	June 30,2024
	$23,713 69 4,605	$24,482 74 5,057	$22,969 311 8,065
	$28,387	$29,613	$31,345

Please refer to Note 8 of the consolidated financial report for the other financial assetscurrent provided as collateral or mortgaged.

26 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(7) Financial assets at fair value through other comprehensive income - noncurrent

Equity instrument Unlisted stocks Equity instrument investment evaluation adjustment Total	June 30,2025	December 31,2024 $27,006 417,025 $444,031	June 30,2024
	$27,006 232,460		$27,006 347,587
	$259,466		$374,593

(A) Equity instrument investment measured at fair value through other comprehensive profit and loss was not an available-for-trade investment; therefore, the Group chose to have it designated as measured at fair value through other comprehensive profit and loss.
(B) The Group had recognized dividend income from the investment in equity instrument measured at fair value through other comprehensive profit and loss were NT$16,964 thousand, NT$11,874 thousand, NT$16,964 thousand, and NT$11,874 thousand for the three-month and six-month periods ended June 30, 2025 and 2024, respectively.
(C) The Group did not have cumulative profit or loss transferred within equity for the three-month and six-month periods ended June 30, 2025 and 2024.
(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 consolidated financial report for the disclosure of the market risk and credit risk of the Group’s financial asset measured at fair value through other comprehensive profit and loss.

(8) Investment under the equity method

(A) The Group’s invested companies under the equity method are individually insignificant affiliated companies with the book amount and equity holding ratio as follows:

Affiliated enterprises	June 30, 2025 $206,104	Equity holding ratio(%)	December 31,2024	Equity holding ratio(%)	June 30, 2024	Equity holding ratio(%)
SUNFLEX TECHNOLOGY CO., LTD. (Note)		14.42	$177,776	14.43	$185,528	14.43

27 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Note : The Group is the largest single shareholder of SUNFLEX TECHNOLOGY CO., LTD. with 14.42% voting shares. The shareholding of other top-ten shareholders (not related parties) exceeds the Group, and the shareholders have not agreed to discuss or make decisions collectively; apparently, the Group has no actual ability to lead relevant decision-making. Therefore, it is concluded that the Group has no control over SUNFLEX TECHNOLOGY CO., LTD., but only significant influence.
(B) The Group’s shareholding in each individual insignificant affiliated company is summarized as follows:

ummarized as follows:
Net profit of the continuing business unit – current Other comprehensive profit and loss (after tax) - current Total comprehensive profit and loss - current	For the three-month periods ended June 30,		For the six-month periods ended June 30,
	2025	2024	2025	2024
	$(9,498) (1,421)	$6,265 5,265	$(8,699) (2,338)	$11,540 5,374
	$(10,919)	$11,530	$(11,037)	$16,914

Beginning Balance Increases in investments for the current period (Note) Share of profit (loss) for the period Changes in associates accounted for using the equity method Share of unrealized gains (losses) arising from changes in the fair value of financial assets measured at fair value through other comprehensive income Ending Balance	For the six-monthperiods ended June 30,	For the six-monthperiods ended June 30,
	2025 $177,776 31,282 (8,699) 8,083 (2,338) $206,104	2024
		$168,248 - 11,540 366 5,374
		$185,528

Note ： In March 2025, the Group participated in the cash capital increase of SUNFLEX TECHNOLOGY CO., LTD. For more details, please refer to Note 7.(B)(c) of the consolidated financial statements.

28 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing) (Review only without following generally accepted auditing standards)

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

(D) The aforementioned investments under the equity method had not been provided as collateral or mortgaged.

(9) Property, plant and equipment

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

For the six months ended June 30, 2025

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, 2025 Addition Disposition Reclassification Exchange difference Balance at June 30, 2025 Accumulated depreciation: Balance at January 1, 2025 Depreciation Disposition Reclassification Exchange difference Balance at June 30, 2025 Carrying amount at June 30, 2025	$1,228,692 - - - (1,388)	$1,551,570 24,098 - - (51,459)	$2,558,317 109,500 (28,450) 25,171 (116,234)	$113,039 5,293 (6,103) 3,575 (4,426)	$109,514 2,037 (561) (2) (6,520)	$259,298 10,792 (5,290) 1,587 (8,550)	$248,909 498 - (26,638) (7,666)	$6,069,339 152,218 (40,404) 3,693 (196,243)
	1,227,304	1,524,209	2,548,304	111,378	104,468	257,837	215,103	5,988,603
	- - - - -	755,240 26,777 - - (36,321)	1,921,698 48,875 (25,837) 694 (91,126)	84,188 4,794 (5,935) - (3,499)	82,380 4,095 (504) - (5,057)	187,975 7,391 (5,182) (694) (7,019)	- - - - -	3,031,481 91,932 (37,458) - (143,022)
	-	745,696	1,854,304	79,548	80,914	182,471	-	2,942,933
	$1,227,304	$778,513	$694,00	$31,830	$23,554	$75,366	$215,103	$3,045,670

29 -

For the six months ended June 30, 2024

Cost	Land	House & building	Machinery equipment	Transportati on equipment	Office equipment	Other equipment	Construction in progress and equipment yet to be tested	Total
Balance at January 1, 2024 Addition Disposition Reclassification Exchange difference Balance at June 30, 2024 Accumulated depreciation	$134,504 - - - (443)	$1,053,443 3,588 - - 19,601	$2,403,892 27,083 (27,853) 6,119 43,202	$101,063 9,538 (2,066) - 1,598	$102,891 1,533 (440) - 2,626	$231,035 5,910 (3,364) (94) 2,432	$47,840 17,691 - (555) 1,352	$4,074,668 65,343 (33,723) 5,470 70,368
	134,061	1,076,632	2,452,443	110,133	106,610	235,919	66,328	4,182,126
	- - - - -	690,735 20,857 - - 12,603	1,824,626 43,160 (26,737) - 34,347	75,836 4,503 (1,948) - 1,178	73,753 4,055 (420) - 1,872	170,443 6,057 (3,039) (1) 1,878	- - - - -	2,835,393 78,632 (32,144) (1) 51,878
Balance at January 1, 2024 Depreciation Disposition Reclassification Exchange difference Balance at June 30, 2024 Carrying amount at June 30, 2024
	-	724,195	1,875,396	79,569	79,260	175,338	-	2,933,758
	$134,061	$352,437	$577,047	$30,564	$27,350	$60,581	$66,328	$1,248,368

30 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(B) The Group’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 Group did not acquire property, plant and equipment that caused the capitalization of the loan cost for the three-month and six-month periods ended June 30, 2025 and 2024.
(D) The Group did not have any impairment occurred to the property, plant and equipment for the three-month and six-month periods ended June 30, 2025 and 2024.
(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 consolidated cash flow statemen t:

The current addition of property, plant and equipment listed in Note 6(9)(A) of the consolidated financial report Add: Equipment payable - beginning Less: Equipment payable - ending Cash outflow for the acquisition of property, plant and equipment	For the six-monthperiods ended June 30,	For the six-monthperiods ended June 30,
	2025 $152,218 122,450 (78,629) $196,039	2024
		$65,343 10,355 (2,594)
		$73,104

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

House and building Less: Accumulated depreciation Leased assets - net	June 30,2025 $1,340 (1,099) $241	December 31,2024 $1,340 (1,080) $260	June 30,2024
			$1,340 (1,062)
			$278

(a) A portion of the Company’s plant premises was leased to BAIYUE PRECISION CO., LTD. (hereinafter referred to as “BAIYUE”) for the period from October 1, 2023 to September 30, 2024. The lease was subsequently renewed on October 25, 2024, covering the period from October 1, 2024 to September 30, 2025.
31 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards)

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

(b) The Group has leased certain floors of its own factory building to BAIYUE PRECISION CO., LTD. for use. Since the property cannot be sold separately, and the primary use of the building is for the production of goods, provision of services, and management purposes, it has not been classified as investment property.

(10) Right-of-use assets

(A) The increase and decrease of the Group’s right-of-use assets are as follows:

For the six-monthperiods ended June 30,2025	For the six-monthperiods ended June 30,2025	For the six-monthperiods ended June 30,2025
Land House & building Total $210,669 $127,231 $337,900 - - - - - - (13,493) (8,287) (21,780) 197,176 118,944 316,120 11,854 74,639 86,493 971 7,084 8,055 - - - (743) (5,112) (5,855) 12,082 76,611 88,693 $185,094 $42,333 $227,427 For the six-monthperiods ended June 30,2024		Total
		$337,900 - - (21,780)
		316,120
		86,493 8,055 - (5,855)
		88,693
		$227,427
Land $202,460 - - 5,353 207,813 9,424 960 - 255 10,639 $197,174	House & building $123,460 - - 2,590 126,050 58,542 7,120 - 1,095 66,757 $59,293	Total
		$325,920 - - 7,943
		333,863
		67,966 8,080 - 1,350
		77,396
		$256,467

32 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(B) The Group did not have the right-of-use assets sublet for the three-month and sixmonth periods ended June 30, 2025 and 2024.
(C) The Group did not have any impairment occurred to the right-of-use assets for the three-month and six-month periods ended June 30, 2025 and 2024.
(D) The aforementioned right-of-use assets had not been provided as collateral or mortgaged.

(11) Intangible assets

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

Cost Balance – beginning Addition - current Decrease in the current period – delisted on the due date Reclassification Exchange difference Balance – ending Accumulated depreciation Balance – beginning Amortization – current Decrease in current period – delisted on the due date Exchange difference Balance – ending Book amount - ending	For the six-monthperiods ended June 30,	For the six-monthperiods ended June 30,
	2025 $2,735 2,608 - 300 (138) 5,505 1,231 759 - (70) 1,920 $3,585	2024
		$1,968 406 - 1,022 7
		3,403
		1,307 374 - (3)
		1,678
		$1,725

(B) The Group did not have any impairment occurred to the intangible assets for the threemonth and six-month periods ended June 30, 2025 and 2024.
33 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(12) Short-term loans

Credit loans	June 30,2025 $100,000	December 31,2024 $500,000	June 30,2024
			$1,000,000

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

Nature of loan Credit loan	June 30,2025 1.80%	December 31,2024 1.845%-1.853%	June 30,2024
			1.665%-1.785%

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

(13) Bonds Payable

June 30, 2025 December 31, 2024 June 30, 2024 Domestic Second Unsecured Convertible Corporate Bonds $1,000,000 $1,000,000 $1,000,000 Less: Discount on corporate bonds payable (22,246) (29,569) (44,628) Less: Cumulative amount of conversion applications by bondholders’ (230,700) (219,700) (47,900) Components of non-derivative financial instrument liabilities 747,054 750,731 907,472 Less: Corporate bonds payable due within one year - - - Non-current portion of corporate bonds payable $747,054 $750,731 $907,472 Embedded Derivatives (Note) Non-current Financial Assets Measured at Fair Value through Profit or Loss $539 $1,951 $2,952 Equity Component (Capital Surplus) $145,902 $147,988 $ 180,571 For the three-month periods ended June 30, For the six-month periods ended June 30, 2025 2024 2025 2024 Gains on financial assets measured at fair value through profit or loss as part of the liabilities composition $(384) $2,452 $(1,384) $2,652 Interest expense $3,445 $4,326 $6,938 $7,510	June 30, 2025 December 31, 2024 June 30, 2024 Domestic Second Unsecured Convertible Corporate Bonds $1,000,000 $1,000,000 $1,000,000 Less: Discount on corporate bonds payable (22,246) (29,569) (44,628) Less: Cumulative amount of conversion applications by bondholders’ (230,700) (219,700) (47,900) Components of non-derivative financial instrument liabilities 747,054 750,731 907,472 Less: Corporate bonds payable due within one year - - - Non-current portion of corporate bonds payable $747,054 $750,731 $907,472 Embedded Derivatives (Note) Non-current Financial Assets Measured at Fair Value through Profit or Loss $539 $1,951 $2,952 Equity Component (Capital Surplus) $145,902 $147,988 $ 180,571 For the three-month periods ended June 30, For the six-month periods ended June 30, 2025 2024 2025 2024 Gains on financial assets measured at fair value through profit or loss as part of the liabilities composition $(384) $2,452 $(1,384) $2,652 Interest expense $3,445 $4,326 $6,938 $7,510	June 30, 2025 December 31, 2024 June 30, 2024 Domestic Second Unsecured Convertible Corporate Bonds $1,000,000 $1,000,000 $1,000,000 Less: Discount on corporate bonds payable (22,246) (29,569) (44,628) Less: Cumulative amount of conversion applications by bondholders’ (230,700) (219,700) (47,900) Components of non-derivative financial instrument liabilities 747,054 750,731 907,472 Less: Corporate bonds payable due within one year - - - Non-current portion of corporate bonds payable $747,054 $750,731 $907,472 Embedded Derivatives (Note) Non-current Financial Assets Measured at Fair Value through Profit or Loss $539 $1,951 $2,952 Equity Component (Capital Surplus) $145,902 $147,988 $ 180,571 For the three-month periods ended June 30, For the six-month periods ended June 30, 2025 2024 2025 2024 Gains on financial assets measured at fair value through profit or loss as part of the liabilities composition $(384) $2,452 $(1,384) $2,652 Interest expense $3,445 $4,326 $6,938 $7,510	June 30, 2024
			$1,000,000 (44,628) (47,900)
			907,472 -
			$907,472
			$2,952
			$ 180,571
2025 $(384) $3,445	2024	2025	2024 $2,652 $7,510
	$2,452	$(1,384)
	$4,326	$6,938

34 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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.

(A) As of June 30, 2025, 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, with a face value of 100 thousand per bond, issued at 113.80% of the face value. The actual total funds raised amount to 1,137,967 thousand, after deducting related issuance costs of 3,064 thousand, the net funds raised is 1,134,903 thousand .

(b) Issue Period:

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

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 onemonth 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 company may, at any subsequent time, send a registered "Bond Redemption Notice" with a one-month expiration date to the bondholders, notifying the exercise

35 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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 January 8, 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 prices, as adjusted pursuant to the terms of issuance, were NT$69.6, NT$69.6, and NT$71.3 per share as of June 30, 2025, December 31, 2024, and June 30, 2024, respectively.

(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 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
36 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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 three-month and six-month periods ended June 30, 2025 and 2024, the amounts of convertible bonds converted into common shares upon bondholders ’ requests were NT$0 thousand, NT$47,900 thousand, NT$11,000 thousand, and NT$47,900 thousand, respectively.

(14) Lease liabilities

Lease liabilities
Lease liabilities Land House and building Total Less: Lease liabilities due within one year Lease liabilities due after one year	Discount rate	June 30, 2025	December 31, 2024	June 30, 2024
	2.475%-4.750%	$44,384 49,010	$47,628 59,355	$47,267 65,487
		93,394 (46,917)	106,983 (56,371)	112,754 (60,627)
		$46,477	$50,612	$52,127

(A) Our subsidiaries, G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD., G-SHANK JAPAN CO., LTD., and SHENZHEN G-BAO PRECISION SDN. BHD., respectively leased factories and dormitories in September 2007, April 2017, and August 2017 under lease agreements. They began recognizing right-of-use assets from January 1, 2019, with lease terms of 40 years, 2 years, and 3 years, respectively, and paying monthly lease payments.
37 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(B) Other rental information is listed as follows:

	For the three-month	For the three-month	For the six-month periods	For the six-month periods
	periods ended June 30,		ended	June 30,
	2025	2024	2025	2024
Short-term lease expense	$1,490	$1,355	$3,119	$3,086
Low-value asset lease
expenses	$-	$-	$-	$-
Changes in lease expense
excluded from the
measurement of a lease
liability	$-	$-	$-	$-
Total cash outflow of all
leases	$5,352	$5,395	$11,090	$11,099
Lease liabilities interest	$604	$754	$1,279	$1,522

The Group chose to have the qualified short-term dormitories lease exempted from lease recognition, and no related right-of-use assets and lease liabilities of such lease are recognized.

(15) Retirement benefits

(A) Defined benefits plan

(a) The company has established an employee retirement plan according to the employees’ years of service and the expected wages before retirement. A certain percentage of the monthly wage is appropriated as pension in accordance with the “Labor Standards Act” that is deposited in the special account and managed by the Labor Retirement Reserve Committee. The aforementioned pension fund is completely separated from the company; therefore, it is not included in the consolidated financial report. As of June 30, 2025, December 31, 2024, and June 30, 2024, the company’s pension reserve deposit account with the Bank of Taiwan was with a balance of NT$183,703 thousand, NT$172,260 thousand, and NT$178,216 thousand, respectively.
38 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)
(b) Please refer to Note 6.(15)(A) of the 2024 consolidated financial report for the company’s defined benefit plan on December 31, 2024.

(c) Pension expenses recognized as profit or loss:

as profit or loss:
For the three-month periods ended June 30, 2025 2024 $537 $525 138 142 334 322 67 115 $1,076 $1,104	For the six-month periods ended June 30,
2025 $537 138 334 67 $1,076	2025 $1,079 279 667 142 $2,167	2024
		$1,056 283 645 233
		$2,217

(B) Defined contribution plan

(a) The company has adopted a definite contribution plan since the implementation of the “Labor Pension Act” in July 2005. The employees can choose the relevant pension plan of the “Labor Standards Act” since then or apply the pension system of the “Labor Pension Act” and retain the seniority accumulated before the Act. For employees subject to the “Labor Pension Act,” the company shall appropriate an amount not less than 6% of the employee’s monthly salary and have it deposited in the employee’s personal account with the Bureau of Labor Insurance, Ministry of Labor. The company after paying the monthly pension for each employee is not liable for the statutory and constructive obligations of paying additional contributions.
(b) The Group’s subsidiaries in Mainland China, Malaysia, Indonesia, the United States, Mexico, Thailand, and Japan shall appropriate an amount equivalent to a certain percentage of the salaries as pension in accordance with the local law and regulations, and pay the appropriated amount to the responsible government departments and then have it deposited in each employee’s personal account.
39 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)
(c) The pension expenses recognized according to the defined contribution plan of the Group is as follows:

Cost of Goods Sold Selling expenses General and administrative expenses Research and development expenses Total	For the three-month periods ended June 30, 2025 2024 $12,574 $11,878 2,355 2,159 2,996 2,759 2,020 2,012 $19,945 $18,808	For the six-month periods ended June 30,	For the six-month periods ended June 30,
		2025 $25,727 4,819 6,279 4,177 $41,002	2024
			$23,456 4,281 5,458 4,053
			$37,248

(16) Capital stock

Capital stock
Balance amount on January 1, 2025 Employee stock options execution Conversion of convertible bonds Balance amount on June 30, 2025 Balance amount on January 1, 2024 Cash capital increase and issuance of new shares Employee stock options execution Conversion of convertible bonds Balance amount on June 30, 2024	Authorized capital stock (1,000 shares) 350,000 350,000 350,000 350,000	Common stock shares issued at NT$10par
		Shares (1,000 shares) 210,096 642 158 210,896 190,844 15,000 776 672 207,292	Capital stock
			$2,100,960 6,420 1,580
			$2,108,960
			$1,908,443 150,000 7,760 6,718
			$2,072,921

(A) As of June 30, 2025, December 31, 2024, and June 30, 2024, 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:
40 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(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 employee stock options exercised during the first half of 2025, the fourth quarter of 2024 and the first half of 2024 were 642 thousand shares, 263 thousand shares and 776 thousand shares, respectively. As of June 30, 2025, December 31, 2024, and June 30, 2024, the cumulative number of shares subscribed through the exercise of employee stock options was 12,556 thousand shares, 11,914 thousand shares, and 11,568 thousand shares, respectively. Among these, there were 263 thousand shares pending completion of the change registration process, which were temporarily recorded under "stock received in advance" as of December 31, 2024. For additional information regarding the issuance of employee stock options, please refer to Note 6.(23) of the consolidated financial statements.
(D) On October 27, 2023, the Company’s Board of Directors resolved to conduct a cash capital increase by issuing new shares amounting to NT$150,000 thousand, divided into 15,000 thousand shares with a par value of NT$10 per share, and issued at a premium of NT$58 per share. The total amount of the cash capital increase was NT$870,000 thousand, with issuance costs of NT$3,553 thousand deducted, resulting in a net cash capital increase of NT$866,447 thousand. The Chairman was authorized to set February 27, 2024, as the record date for the capital increase. The aforementioned capital increase has been approved by the competent authorities and the registration for the capital increase has been completed.
(E) As of June 30, 2025, the cumulative number of shares applied for conversion by the holders of the Company’s convertible bonds amounted to 3,288 thousand shares, of which 58 thousand shares and 672 thousand shares as of December 31 and June 30, 2024, respectively, had not yet completed the registration process and were therefore temporarily recorded under “Advance Receipts for Capital Stock.”, resulting in a capital surplus from conversion of convertible bonds of NT$230,461 thousand (including capital surplus from conversion of convertible bond warrants transferred at the conversion ratio of NT$43,753 thousand). For more information on the issuance of convertible bonds, please refer to Note 6.(13) of the consolidated financial statements.
41 -

- (17) Additional paid in capital

Additional paid-in capital
Common stock premium Conversion premium for 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 Convertible bonds into stock options Invalid employee stock options Unclaimed dividends past statutory expiry by shareholders Exercise the right of disgorgement Total	June 30, 2025 $345,141 230,461 63,306 3,563 40,765 44,751 145,902 46,298 1,832 340 $922,359	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	June 30, 2024
			$857,707 47,951 63,306 3,563 32,524 39,328 180,571 46,280 1,788 -
			$1,273,018

(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) The Company’s shareholders’ meetings resolved to distribute cash dividends to shareholders from capital surplus in the amounts of NT$526,845 thousand (NT$2.5 per share) and NT$205,844 thousand (NT$1.0 per share), On June 13, 2025 and June 14, 2024, respectively.
42 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(18) 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.

(19) Special reserve

The Company appropriated and reversed special reserve in accordance with FSC Order No. 1090150022 and the "Q&A on the Application of Special Reserve under IFRSs."

(20) 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) The aforementioned earnings distribution proposal issued by the board of directors or resolved in the shareholders’ meeting is as follows:
43 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (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 Capital surplus distribution to shareholders Cash Cash dividend per share	Years ended December 31,	Years ended December 31,
	2024	2023
	$108,051 $- $210,738 NT$1.00 -share -NT$ $526,845 NT$2.50	$67,441 $- $308,766 NT$1.50 -share -NT$ $205,844 NT$1.00

(21) Other equity (net amount after tax)
(A) The exchange difference from the conversion of the financial statements of foreign operating institutions:

operating institutions:
Balance - beginning Transactions of current period Reclassified to (profit) and loss in the current period Balance - ending	For the six-monthperiods ended June 30,
	2025 $(205,552) (278,296) - $(483,848)	2024
		$(409,638) 133,634 -
		$(276,004)

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

comprehensive profit and loss:
Balance - beginning Transactions of current period Recognized under the equity method in the current period - affiliated enterprise Reclassified to retained earnings in the current period Balance - ending	For the six-monthperiods ended June 30,
	2025 $425,283 (184,565) (2,338) 262 $238,642	2024 $300,180 53,690 5,374 - $359,244

44 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(22) Non-controlling interests

For the six-month periods ended June 30,

Balance - beginning The amount attributable to non- controlling interests: Net income Exchange difference from the conversion of the financial statements of foreign operating institutions Cash dividends paid by subsidiaries to non-controlling interests Balance - ending	2025 $602,446 60,180 (38,554) (30,992) $593,080	2024
		$683,605 63,407 17,980 (141,483)
		$623,509

The Group had no subsidiaries with significant non-controlling interests in the first half of 2025 and 2024.

(23) Share-based payment - employee rewards

(A) Employee stock options

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.

45 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

As of June 30, 2025, the issuance of compensatory employee stock warrants is disclosed 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)
2018.09.12	290,000	61,000	610,000	$18.60
2019.08.12	210,000	128,600	1,286,000	18.70
2022.08.05	100,000	88,000	352,000	47.30
2022.11.04	100,000	100,000	400,000	41.40
2023.06.05	100,000	100,000	400,000	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 June 30, 2025.
(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$2,042 thousand, NT$3,923 thousand, NT$4,062 thousand, and NT$7,847 thousand, for the three-month and the six-month periods ended June 30, 2025 and 2024, respectively. The input values of the stock option pricing model are as follows:

are as follows:
Expected dividend ratio Expected price fluctuation ratio Risk-free interest rate Expected duration	2022 Stock optionplan	2022 Stock optionplan	2022 Stock optionplan
	-% 32.86%~36.80% 1.0873%~1.0996% 4.5~6 years	-% 32.35%~36.13% 1.5365%~1.5954% 4.5~6 years	-% 31.76%~35.33% 1.0109%~1.0687% 4.5~6 years

46 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Expected dividend ratio Expected price fluctuation ratio Risk-free interest rate Expected duration	2018 Stock optionplan	2018 stock optionplan
	-% 18.99%~20.95% 0.554%~0.582% 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.

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

For the six-month periods For the six-month periods ended June 30, 2025 ended June 30, 2024

Employee stock operations	QTY(unit)	QTY(unit)	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)	541,800 - (64,200) -	664,600 - (77,600) -	$31.76 - 19.13 - 33.01 19.15
	477,600	587,000
	304,800	247,000
	$-	$-

The weighted average share prices on the exercise dates of employee stock options executed during the first half of 2025 and 2024 were NT$93.9 and NT$75.1 per share, respectively.

As of June 30, 2025, December 31, 2024 and June 30, 2024, the company’s outstanding compensatory employee stock option plan is as follows:

47 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

June 30, 2025 2018 Stock option plan 2018 Stock option plan 2022 Stock option plan 2022 Stock option plan 2022 Stock option plan December 31, 2024 2018 Stock option plan 2018 Stock option plan 2022 Stock option plan 2022 Stock option plan 2022 Stock option plan June 30, 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)	Outstandingstock options	Outstandingstock options	Outstandingstock options	Exercisable employee stock options	Exercisable employee stock options
		Outstandin g QTY (Unit)	Weighted average expected remaining duration	Weighted average price per share (NTD)	Exercisable QTY(Unit)	Weighted average price per share (NTD)
	$18.60 18.70 47.30 41.40 46.90 $18.60 18.70 47.30 41.40 46.90 $19.10 19.20 48.40 42.10 48.00	61,000 128,600 88,000 100,000 100,000 96,700 157,100 88,000 100,000 100,000 129,300 157,700 100,000 100,000 100,000	- 0.03 2.19 2.44 3.03 - 0.18 2.69 2.94 3.52 0.08 0.46 3.19 3.44 4.03	$18.60 18.70 47.30 41.40 46.90 $18.60 18.70 47.30 41.40 46.90 $19.10 19.20 48.40 42.10 48.00	61,000 128,600 35,200 40,000 40,000 96,700 157,100 35,200 40,000 - 129,300 117,700 - - -	$18.60 18.70 47.30 41.40 46.90 $18.60 18.70 47.30 41.40 46.90 $19.10 19.20 48.40 42.10 48.00

48 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(B) Cash capital increase with employee subscription

On October 27, 2023, the Company’s Board of Directors resolved to conduct a cash capital increase, with 2,250 thousand shares reserved for employee subscription. The number of shares forfeited due to employees' waiver of subscription rights was 775 thousand shares. The Company estimated the fair value per share to be NT$12.73 on the grant date using the Black-Scholes option pricing model. In the second quarter and the first half of 2024, the Company recognized compensation costs of NT$0 and NT$28,643 thousand, respectively, and recognized NT$9,866 thousand under capital surplus for expired stock options.

The fair value of the employee subscription rights reserved by the company for cash capital increase is assessed using the Black-Scholes option pricing model. The information regarding the assumptions for each of these items is as follows:

Exercise price per share (NT$ dollars) Stock price per share on grant date (before capital increase) (NT$ dollars) Stock price per share on grant date (after capital increase) (NT$ dollars) Expected dividend yield Expected price volatility Risk-free interest rate Expected term to maturity	Issue date: 2023.10.27
	$58.00 71.70 70.70 -% 30.25% 1.0302% 16 days

(24) Net operating income

Net operating income
Sales income Parts income Mold income Fixture income Merchandise income Total Less: Sales return Sales discount Net operating income	For the three-month periods ended June 30,		For the six-month periods ended June 30,
	2025	2024	2025	2024
	$1,730,731 52,721 11,831 19,363	$1,573,047 50,638 10,707 16,393	$3,311,285 95,150 23,106 34,509	$2,914,800 88,497 21,090 34,784
	1,814,646 (1,630) (1,500)	1,650,785 (91) (2,233)	3,464,050 (2,397) (3,706)	3,059,171 (3,243) (2,977)
	$1,811,516	$1,648,461	$3,457,947	$3,052,951

49 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(A) Income classification:

(a) Main merchandise / service

For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
2025 $1,727,604 52,721 11,831 19,360 $1,811,516	2024	2025	2024
	$1,570,805 50,563 10,707 16,386	$3,305,236 95,150 23,106 34,455	$2,908,666 88,422 21,090 34,773
	$1,648,461	$3,457,947	$3,052,951

(b) Main regional markets

Main regional markets
Customer location	For the three-month periods ended June 30,		For the six-month periods ended June 30,
	2025	2024	2025	2024
Taiwan Asia (other than aiwan) America Others Total	$397,396 1,287,222 73,341 53,557	$339,417 1,153,487 87,776 67,781	$758,674 2,433,562 145,984 119,727	$596,363 2,169,266 167,473 119,849
	$1,811,516	$1,648,461	$3,457,947	$3,052,951

(c) Income recognition time

Goods transferred at a certain time	For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
	2025	2024 $1,648,461	2025	2024
	$1,811,516		$3,457,947	$3,052,951

(B) Contract liabilities:

Contract liabilities	June 30,2025	December 31,2024 $20,745	June 30,2024
	$22,075		$40,133

50 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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	For the six-monthperiods ended June 30,	For the six-monthperiods ended June 30,
	2025 $(5,053) 6,383	2024
		$(10,588) 31,290

(25) Operating costs and expenses

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

Function Nature	For the three-month periods ended June 30,2025	For the three-month periods ended June 30,2025	For the three-month periods ended June 30,2025	For the three-month periods ended June 30,2024	For the three-month periods ended June 30,2024	For the three-month periods ended June 30,2024
	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)	$226,012	$123,189	$349,201	$205,651	$134,350	$340,001
Labor and health insurance expenses	17,212	10,079	27,291	15,101	9,812	24,913
Pension expenses	13,111	7,910	21,021	12,403	7,509	19,912
Director remuneration	-	1,337	1,337	-	1,399	1,399
Other welfare expenses	6,610	2,230	8,840	6,035	1,978	8,013
Depreciation expenses(Note 2)	33,751	16,415	50,166	31,374	12,304	43,678
Amortization expense	7,329	778	8,107	4,251	714	4,965

Function Nature	For the six-month periods 30,2025	For the six-month periods 30,2025	ended June	For the six-month periods ended June 30,2024	For the six-month periods ended June 30,2024	For the six-month periods ended June 30,2024
	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)	$441,732	$240,889	$682,621	$402,486	$277,222	$679,708
Labor and health insurance expenses	34,614	21,003	55,617	30,293	19,973	50,266
Pension expenses	26,806	16,363	43,169	24,512	14,953	39,465
Director remuneration	-	3,259	3,259	-	3,403	3,403
Other welfare expenses	12,779	4,770	17,549	11,729	4,276	16,005
Depreciation expenses(Note 2)	67,450	32,518	99,968	62,395	24,298	86,693
Amortization expense	15,940	1,583	17,523	6,193	1,675	7,868

51 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

  - (Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Note 1 ： (1) According to the company’s Articles of Incorporation, the Company appropriates 1% to 10% of pre-tax profit, before employee and directors’ remuneration, as employee remuneration, and up to 3% as directors’ remuneration. If accumulated losses exist, an amount sufficient to cover such losses shall be reserved. Of the employee remuneration appropriated, at least 30% is allocated to rank-and-file employees. Employee remuneration may be paid in shares or cash, and may include employees of subsidiaries who meet the Board of Directors’ criteria. Directors’ remuneration is paid exclusively in cash.
(2) The estimated amounts of employee compensation payable for the first half of 2025 and 2024 were NT$14,142 thousand and NT$12,054 thousand, respectively, while director compensation for both periods was NT$0. The estimation of employee compensation is based on a certain percentage of the Company's pre-tax net profit for the first half of 2025 and 2024 (without considering the impact of employee compensation). The estimated employee compensation is recognized as operating costs or operating expenses for the current period. However, if the amount of distribution resolved by the Board of Directors subsequently changes, it will be treated as a change in accounting estimate and adjusted in the profit or loss of the following year.
(3) 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 that were reported in the regular shareholders meeting on June 13, 2025; also, it was not different from the estimated remuneration to employees, directors, and 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 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 and directors in the company’s 2023 financial report.
(4) 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 Group had appropriated the depreciation expenses were NT$50,176 thousand, NT$43,688 thousand, NT$99,987 thousand, and NT$86,712 thousand, for the second quarter and the first half of 2025 and 2024, respectively. Also, the
52 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

depreciation expenses of the property, plant and equipment - leased assets were NT$10 thousand, NT$10 thousand, NT$19 thousand, and NT$19 thousand, respectively, and listed in the “Other income and expenses - net” account.

(26) 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 the three-month periods ended June 30,		For the six-month periods ended June 30,
	2025	2024	2025	2024
	$105 (10)	$105 (10)	$210 (19)	$210 (19)
	$95	$95	$191	$191

(27) Non-operating income and expense

For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
2025	2024	2025	2024
$15,127 35,824	$42,149 23,838	$32,075 78,445	$69,906 55,446
$50,951	$65,987	$110,520	$125,352
$16,964 1,497	$11,874 3,049	$16,964 5,973	$11,874 4,165
$18,461	$14,923	$22,937	$16,039
$(207,141) (2) (303)	$26,211 (159) (391)	$(173,078) 1,649 (354)	$119,991 (83) (397)
$(207,446)	$25,661	(171,783)	119,511

53 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
2025	2024	2025	2024
$(514) (604) (3,445)	$(4,294) (754) (4,326)	$(2,829) (1,279) (6,938)	$(8,883) (1,522) (7,510)
$(4,563)	$(9,374)	$(11,046)	$(17,915)

(E) Share of profit of associates accounted for using the equity method

Please refer to Note 6.(8)(C) of the consolidated financial report for details.

(F)	Exchange profit (loss)-net Realized exchange profit (loss) - net Unrealized exchange profit (loss) -net Total	$(35,904) (14,704)	$(2,792) 19,983	$(96,176) 54,812	$(23,803) 73,155
		$(50,608)	$17,191	$41,364	$49,352

(28) Other comprehensive profit and loss

Other comprehensive profit and loss constituents	Transactions of current period	Reclassification and adjustment of current period	Other comprehensive profit and loss	Income tax expense	Amount after tax
For the three-month periods ended June 30,	2025 $(83,172) (1,421)	$- -	$(83,172) (1,421)	$- -	$(83,172) (1,421)
	(84,593)	-	(84,593)	-	(84,593)
	(416,567)	-	(416,567)	-	(416,567)

54 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Other comprehensive profit and loss constituents	Transactions of current period	Reclassification and adjustment of current period	Other comprehensive profit and loss	Income tax expense	Amount after tax
For the three-month periods ended June 30,	2024 $13,459 5,265	$- -	$13,459 5,265	$- -	$13,459 5,265
	18,724	-	18,724	-	18,724
	58,356	-	58,356	-	58,356
	$77,080	$-	$77,080	$-	$77,080
		$- -	$(184,565) (2,338)	$- -	$(184,565) (2,338)
Items not reclassified to profit and loss: Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive loss 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 Total
	(186,903)	-	(186,903)	-	(186,903)
	(316,850)	-	(316,850)	-	(316,850)
	$(503,753)	$-	$(503,753)	$-	$(503,753)

55 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Other comprehensive profit and loss constituents	Transactions of current period	Reclassification and adjustment of current period	Other comprehensive profit and loss	Income tax expense	Amount after tax
For the six-month periods ended June 30,2024 Items not reclassified to profit and loss: Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive loss $53,690 Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive loss of affiliated enterprises under the equity method 5,374 Total amount of items not reclassified to profit and loss: 59,064 Items that may be reclassified to profit and loss subsequently: Exchange difference from the conversion of the financial statements of foreign operating institutions 151,614 Total $210,678		$- -	$53,690 5,374	$- -	$53,690 5,374
Items not reclassified to profit and loss: Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive loss Unrealized appraisal benefits of equity instrument investment measured at fair value through other comprehensive loss 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 Total
	59,064	-	59,064	-	59,064
	151,614	-	151,614	-	151,614
	$210,678	$-	$210,678	$-	$210,678

(29) Income tax

(A) The Group is required to file corporate income tax returns on an individual entity basis, and consolidated filing is not permitted. The corporate income tax returns of the Company for fiscal year 2022 and prior, and those of its subsidiary, CHIN DE INVESTMENT CO., LTD., for fiscal year 2023 and prior, have been assessed and approved by the relevant tax authorities.
(B) The income tax expense constituents:
(a) Income tax recognized in profit and loss

For the three-month periods ended June 30, 2025 2024 $94,267 $203,196 (37,296) (99,390) $56,971 $103,806	For the six-month periods ended June 30,	For the six-month periods ended June 30,
2025	2025 $163,679 (8,921) $154,758	2024
$94,267 (37,296)		$250,158 (41,491)
$56,971		$208,667

56 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards)

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

(b) The Group had no income tax related to other comprehensive profit and loss constituents or direct debited or credited to equity for the three-month and sixmonth periods ended June 30, 2025 and 2024, respectively.

(30) 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:

For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
2025	2024	2025	2024
$8,145	$291,550	$232,523	$514,938
210,896,003 shares - - -	187,832,298 shares - 71,032	210,095,958 shares - 475,293 85,492	190,844,298 shares 10,302,198 443,429 35,517
210,896,003 shares	206,691,330 shares	210,656,743 shares	201,625,442 shares
$0.04	$1.41	$1.10	$2.55

Note 1: The increase in cash is calculated based on the number of shares outstanding as of the capital increase reference date.

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

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(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:

114.04.01 -114.06.30	113.04.01 -113.06.30	114.01.01 -114.06.30	113.01.01 -113.06.30
$8,145 -	$291,550 1,835	$232,523 8,258	$514,938 4,789
$8,145	$293,385	$240,781	$519,727
210,896,003 shares 2,329,109 - 198,903	206,691,330 shares 3,401,967 13,954,198 109,086	210,656,743 shares 2,704,277 11,125,714 306,150	201,625,442 shares 3,470,196 12,063,171 215,309
213,424,015 shares	224,156,581 shares	224,792,884 shares	217,374,118 shares
$0.04	$1.31	$1.07	$2.39

Note: The Company issued convertible bonds outstanding in 2024. As they were anti-dilutive in the second quarter of 2025, they were excluded from the calculation of diluted earnings per share.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(31) Reconciliation of liabilities from financing activities

Accountingitem	Balance - beginning	Cash flow	Changes in non-cash Transaction of current period Change in exchange rate Other $- $- $- - 6,938 (10,615) (6,897) - - $(6,897) $6,938 $(10,615) $- $- $- - 7,510 (234,941) 2,862 - - $2,862 $7,510 $(234,941)	Changes in non-cash Transaction of current period Change in exchange rate Other $- $- $- - 6,938 (10,615) (6,897) - - $(6,897) $6,938 $(10,615) $- $- $- - 7,510 (234,941) 2,862 - - $2,862 $7,510 $(234,941)	Changes in non-cash Transaction of current period Change in exchange rate Other $- $- $- - 6,938 (10,615) (6,897) - - $(6,897) $6,938 $(10,615) $- $- $- - 7,510 (234,941) 2,862 - - $2,862 $7,510 $(234,941)	Balance - ending
			Transaction of current period	Change in exchange rate	Other
			$- - (6,897)	$- 6,938 -	$- (10,615) -	$100,000 747,054 93,394
	$500,000 750,731 106,983
	$1,357,714	$(406,692)	$(6,897)	$6,938	$(10,615)	940,448
			$- - 2,862	$- 7,510 -	$- (234,941) -	$1,000,000 907,472 112,754
Short-term loan Long-term loan (including those due within one year) Lease liabilities (including current and noncurrent) Total	$1,210,000 - 116,383
	$1,326,383	$918,412	$2,862	$7,510	$(234,941)	2,020,226

7. RELATED PARTY TRANSACTIONS

The account balance amount, transactions, income, and expenses related to the transactions between entities within the Group were written-off at the time of preparing the consolidated financial report. Please refer to Note 13.(1)(J) of the consolidated financial report for the business relationships and important transactions between the company and the subsidiaries and among subsidiaries. The relationship and transactions between the Group and related parties are disclosed as follows:

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(1) Name of related party and relationship

Name of related party and relationship
Name of relatedparty KUAI LUNG PRECISION INDUSTRY CO., LTD. (KUAI LUNG) SUNFLEX TECHNOLOGY CO., LTD. (SUNFLEX)	Relationshipwith the Group
	The chairman of KUAI LUNG is the general manager of G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD., the subsidiary of the company. SUNFLEX is invested by the company under equity method.

(2) Major transactions with related parties

(A) Purchases

Purchases
Related party category/name Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	For the three-month periods ended June 30,		For the six-month periods ended June 30,
	2025	2024 $8 159 $167	2025	2024
	$321 246		$338 748	$8 489
	$567		$1,086	$497

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 90 days; while other suppliers are with a payment term of OA 0-120 days.

(B) Sales

For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
2025 $17 - $17	2024	2025	2024
	$13 36	$34 8	$13 42
	$49	$42	$55

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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 30-45 days; while the general customer is with a payment term of OA 30-150 days.

(C) Acquisition of Investments Accounted for Using the Equity Method

In the first quarter of 2025, the Group subscribed to a capital increase in cash by its affiliated, SUNFLEX, in the amount of NT$23,810 thousand, and acquired 1,082,279 common shares.

(D) Processing expense

The company had contracted the affiliated, SUNFLEX, for product proceeding with a processing expense of NT$3,702 thousand, NT$3,958 thousand, NT$7,778 thousand and NT$6,822 thousand incurred for the three-month and six-month periods ended June 30, 2025 and 2024, respectively.

(E) Other

The Company commissioned its affiliate, SUNFLEX, to purchase employee uniforms at amounts of NT$0, NT$0, NT$0 thousand and NT$79 for the three-month and sixmonth periods ended June 30, 2025 and 2024, respectively.

(F) Claims/obligations arising from the aforementioned transactions

	Relatedpartycategory/name Accounts receivable–related party Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	June 30, 2025 $18 - $18	December 31, 2024 $- - $-	June 30, 2024
(a)				$13 38
				$51

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

	Relatedpartycategory/name Accounts payable`–`related party Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total Other payable`–`related party Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	June 30, 2025 $355 23 $378 $677 2,308 $2,985	December 31, 2024 $- 243 $243 $- 2,789 $2,789	June 30, 2024
(b) (c)				$8 236
				$244
				$777 2,961
				$3,738

The claims/obligations between the Group 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 Group’s claims against the related parties.

(G) Information on total remunerations of key management personnel

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

Item	For the three-month periods ended June 30,	For the three-month periods ended June 30,	For the six-month periods ended June 30,	For the six-month periods ended June 30,
	2025 $2,781 95 - $2,876	2024	2025 $7,893 192 - $8,085	2024
Short-term benefits Retirement benefits Share-based payment Total		$2,858 95 -		$8,105 192 6,239
		$2,953		$14,536

The remuneration to key management personnel is determined by the Group’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.

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8. MORTGAGED ASSETS

As of June 30, 2025, December 31, 2024, and June 30, 2024, the Group had assets provided as collateral to financial institutions for loans, applying for credit line, electricity deposits, materials, contracts, and issuing the letter of credit as follows:

Accountingitem Other financial assets - current Bank deposits Other noncurrent assets - others Bank deposits Other noncurrent assets - others Bank deposits Total	June 30, 2025 $69 231 1,038 $1,338	December 31, 2024	June 30, 2024 $311 222 1,008 $1,541	Mortgage agency	Collateral for loans
		$74 240 1,050		Bank of China Bangkok Bank Mizuho Bank	Material deposit, contract deposit, and others Electricity deposit Tariff deposits
		$1,364

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS

The Group had the following significant contingent liabilities and unrecognized contractual commitments not yet included in the aforementioned consolidated financial report as of June 30, 2025:

(1) The company had had a guaranteed loan from financial institutions for the tariff guarantee amount of NT$500 thousand on June 30, 2025.
(2) The Group’s G-SHANK ENTERPRISE (M) SDN. BHD. had a guaranteed loan of MYR$4,000 thousand from financial institutions for the introduction of foreign labor and other matters on June 30, 2025.
(3) The Group had entered into contract for the purchase of property, plant and equipment for an amount of RMB $45,059 thousand, a of which the outstanding amount is RMB $22,559 thousand.
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards)

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

(4) The Group’s PT INDONESIA G-SHANK PRECISION has signed a land lease quotation with an amount of IDR $19,850,000 thousand, of which IDR $4,052,708 thousand remains unpaid.

10. SIGNIFICANT DISASTER LOSS

None.

11. MATERIAL POST EVENTS

None.

12. OTHERS

(1) Capital management

(A) The Group’s capital management is aimed to ensure the Group’s ongoing concern, to continue to provide remuneration to shareholders and benefits to stakeholders, 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 Group 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 Group may adjust the dividends paid to shareholders, refund shareholders by de-capitalization, and issue new shares or sell assets to settle liabilities.

(2) Financial risk management

(A) The Group’s main financial instruments include cash and cash equivalents, financial assets measured at fair value through profit and loss, financial assets measured at fair value through other comprehensive profit and loss, financial assets measured at amortized cost, other financial assets (time deposits), short-term loans, bonds payable, lease liabilities, receivables and payables arising from operating activities, etc., also,
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

adjust operating fund needs through such financial instruments. Therefore, the Group’s operations are subject to various financial risks, including market risk (including exchange rate risk, interest rate risk, and other price risks), credit risk, and liquidity risk. The purpose of the Group’s overall financial risk management is to reduce the potential adverse effects of the Group’s exposure to financial risks due to changes in the financial market.

(B) The Finance Department of the Group is responsible for identifying, evaluating, and hedging financial risks through close contact with the business units of the Group, planning and coordinating the access to domestic and international financial markets, and manages the Group’s operation related financial risks by analyzing the degree of risk exposure; also, the Group’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 Group 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 Group’s financial instruments are as follows:

(a) Market risk

The main market risks of the Group 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.

(i) Exchange rate risk
(01) The Group 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. In addition, the Group’s net investment in foreign operating institutions is a strategic investment; therefore, no hedging is performed.

The Group’s financial assets and liabilities denominated in nonfunctional currencies with significant risk exposure of exchange rate fluctuations on the reporting date, and sensitivity analysis information are as follows (the functional currency of the company and some subsidiaries is “NTD,” and the functional currency of some subsidiaries is RMB, THB, USD, PHP, MYR, IDR, and JPY); sensitivity analysis is

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

regarding the impact of the Group’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:

Exchange rate	Sensitive analysis	Sensitive analysis	Sensitive analysis
	Change ratio	Increase/ decrease in net income before tax	Decrease in Equity
29.85 35.06 0.2075 4.173 3.809 23.47 29.85 23.47 37.43 None. 29.85 0.2075 4.173	5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%	$66,133 3,838 1,546 567 296 141 $82,539 24,096 1,147 $1,057 1,172 691	$- - - - - - $- - - $- - -

Derivative financial instrument: None.

(Continuing to next page)

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

(Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

(Continued from previous page)	evious page)
Foreign currency (Thousand) December 31, 2024 Financial assets Monetary items USD $46,637 JPY 52,777 HKD 2,089 EUR 2,445 Non-monetary items USD $62,308 SGD 2,558 Derivative financial instrument: Financial liabilities Monetary items USD $822 JPY 379,332 RMB 2,194	Foreign currency (Thousand)	Exchange rate	Book amount $1,528,758 11,083 8,824 83,490 $2,042,471 61,750 $26,948 79,660 9,825	Sensitive analysis
				Change ratio	Increase/ decrease in net income before tax	Decrease in Equity
		32.78 0.21 4.225 34.15 32.78 24.14 None. 32.78 0.21 4.478		5% 5% 5% 5% 5% 5% 5% 5% 5%	$76,438 554 441 4,175 $102,124 3,088 $1,347 3,983 491	$- - - - $- - $- - -

Non-monetary items: None.

Derivative financial instrument: None.

(Continuing to next page)

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

(Continued from previous page)	ious page)
Foreign currency (Thousand) June 30, 2024 Financial assets Monetary items USD $71,294 JPY 42,461 HKD 1,160 EUR 2,966 Non-monetary items USD $52,700 SGD 2,506 Derivative financial instrument USD $138 Financial liabilities Monetary items USD $491 JPY 9,833	Foreign currency (Thousand)	Exchange rate		Sensitiveanalysis
			Book amount	Change ratio	Increase/ decrease in net income beforetax	Decrease in Equity
		32.43 0.2017 4.156 34.71 32.43 23.92 32.43 32.43 0.2017	$2,312,056 8,564 4,821 102,951 $1,709,058 59,934 $4,468 (Note) $15,913 1,983	5% 5% 5% 5% 5% 5% 5% 5% 5%	$115,603 428 241 5,148 $85,453 2,997 $223 $796 99	$- - - - $- - $- $- -

Non-monetary items: None.

Derivative financial instrument: None.

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 consolidated financial report for the operation position, nominal principal, and due date.

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

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Functional currency NTD USD RMB MYR Others Total	For the three-month periods ended June 30,2025 Exchange profit(loss) Average exchange rate $(50,684) - 517 30.58 6,183 4.247 (7,316) 7.190 692 - $(50,608)	For the three-month periods ended June 30,2024 Exchange profit(loss) Average exchange rate $13,285 - (2,699) 32.457 3,949 4.465 1,358 6.857 1,298 - $17,191	For the three-month periods ended June 30,2024 Exchange profit(loss) Average exchange rate $13,285 - (2,699) 32.457 3,949 4.465 1,358 6.857 1,298 - $17,191
	Exchange profit(loss) $(50,684) 517 6,183 (7,316) 692 $(50,608)		Average exchange rate
			- 32.457 4.465 6.857 -

Functional currency NTD USD RMB MYR Others Total	For the six -month periods ended June 30,2025 Exchange profit(loss) Average exchange rate $(45,773) - 3,477 31.737 10,657 4.389 (9,262) 7.313 (463) - $(41,364)	For the six-month periods ended June 30,2024	For the six-month periods ended June 30,2024
	Exchange profit(loss) $(45,773) 3,477 10,657 (9,262) (463) $(41,364)	Exchange profit(loss) $39,298 (2,863) 5,804 4,745 2,368 $49,352	Average exchange rate
			- 32.035 4.423 6.765 -

(02) In addition, the SWAP contracts held by the Group are a financial hedging operation intended to hedge exchange rate risk arising from the change (mainly including sales and purchases denominated in nonfunctional 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.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(ii) Interest rate risk

The Group’s interest rate risks include the fair value interest rate risk of the financial instruments with fixed interest rate and the cash flow interest rate risk of financial instruments with floating interest rate. The financial instruments with fixed interest rate refer to the company’s time deposits, some financial assets-current measured at fair value through profit and loss, some other financial assets-current, some bank loans, bonds payable, and lease liabilities.; the financial instruments with floating rate refer to savings deposits, some other financial assets-current, some other noncurrent assetsothers, and some bank loans. The Group has interest rate risk evaluated and analyzed on a dynamic basis and controlled the interest rate risk exposure by maintaining an appropriate combination of fixed and floating interest rates. The Group expects no significant interest rate risk.

(01) The Group’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	June 30,2025 $3,918,840 (940,448) $2,978,392 $1,259,619 - $1,259,619	December 31, 2024 $4,025,318 (1,357,714) $2,667,604 $1,613,523 - $1,613,523	June 30,2024
			$4,827,665 (2,020,226)
			$2,807,439
			$2,646,540 -
			$2,646,540

(02) Sensitivity Analysis

For the Group’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 quarter and all other factors are given, it would cause the Group’s net income (loss) before tax increased by NT$3,149 thousand and NT$6,616 thousand for the six-month periods ended June 30, 2025 and 2024, respectively.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

The embedded derivative financial instruments arising from the convertible corporate bonds in the fixed-rate financial liabilities engaged by the Group will expose it to fair value interest rate risk. Assuming a 0.1% increase or decrease in the risk-free interest rate as of the reporting date, and all other risk variables remain unchanged, there will be no impact on the Group's pre-tax net profit for the first half of 2025.

(iii) Other price risks

The Group’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 Group manages the price risk of beneficiary certificates and equity securities by holding investment portfolios with different risks.

Sensitivity Analysis

For the Group’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:

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	June 30, 2025 $110,751 $12,973	December 31,2024 $116,685 $22,202	June 30, 2024
			$93,371
			$18,730

The embedded derivative financial instruments arising from the convertible bonds issued by the group will be subject to price risk due to changes in the company's stock price. If the group's stock price increases or decreases by 10% on the reporting date, assuming other risk variables remain constant, it will result in an increase of NT$385 thousand or a decrease of NT$231 thousand, respectively, in the Group’s profit before tax for the six-month period ended

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

June 30, 2025, and a decrease of NT$1,047 thousand or NT$857 thousand, respectively, for the six-month period ended June 30, 2024.

(b) Credit risk

(i) The Group’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 Group. In order to reduce credit risk, the Group 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 Group continues to evaluate the financial 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 Group’s credit-granting quality.
(ii) The Group evaluates and analyzes the overdue or impairment of financial assets on the balance sheet date. The Group’s credit risk exposure amount is as follows:

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 and overdue receivables Total	June 30, 2025 $- 25,073 $25,073	December 31,2024 $- 26,943 $26,943	June 30, 2024
			$- 27,373
			$27,373

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

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)
(iii) The expected credit loss of the Group’s notes and accounts receivable as of June 30, 2025, December 31, 2024 and June 30, 2024 is analyzed as follows:

June 30, 2025 Not overdue 30days overdue 31-90 days overdue 91-180 days overdue 181-365 days overdue Over 366 days overdue Total December 31, 2024 Not overdue 30days overdue 31-90 days overdue 91-180 days overdue 181-365 days overdue Over 366 days overdue Total June 30, 2024 Not overdue 30days overdue 31-90 days overdue 91-180 days overdue 181-365 days overdue Over 366 days overdue Total	Total book amount of notes and accounts receivable	Reserve matrix (loss rate) 0%~3.67% 0%-52.15% 0%-56.85% 0%-48.20% 0%-55.77% 100% 0%~3.90% 0%~49.29% 0%~45.42% 0%~33.02% 0%~42.42% 100% 0%~3.38% 0%-35.79% 0%-31.78% 0%-27.96% 0%-35.64% 100%	Allowance for loss (expected credit loss throughout the duration)
	$1,365,308 156,351 7,450 9,100 3,391 1,680		$826 499 87 148 78 1,680
	$1,543,280		$3,318
	$1,360,802 82,671 33,029 4,632 5,677 1,237		$736 248 517 354 506 1,237
	$1,488,048		$3,598
	$1,321,317 128,824 13,973 17,183 945 387		$847 1,327 279 1,049 316 387
	$1,482,629		$4,205

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

The accounts receivable ratio of the top five customers	June 30, 2025 41.09%	December 31,2024 37.21%	June 30, 2024
			36.15%

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(c) Liquidity risk

The Group 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 Group. 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 Group’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 Group’s SWAP contract has been determined; therefore, there is no significant cash flow risk.

(i) Bank loan amount

(ii)	June 30,2025 December 31,2024 Short-term loan $2,519,500 $2,253,334 Maturity analysis of undiscounted financial liabilities	June 30,2024
		$1,769,500

June 30, 2025 Non-derivative financial liabilities Short-term loan Accounts payable Accounts payable - related party Other payables Other payables - related party Bonds payable Lease liabilities Total	Less than 1year	More than 1-2years	More than 2-5years	Over 5years	Total
	$100,424 548,887 378 1,364,796 2,985 - 51,692	$- - - 9,790 - 769,300 3,310	$- - - - - - 9,929	$- - - - - - 67,400	$100,424 548,887 378 1,374,586 2,985 769,300 132,331
	$2,069,162	$782,400	$9,929	$67,400	$2,928,891

Derivative financial liabilities: None.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

December 31, 2024 Non-derivative financial liabilities Short-term loan Accounts payable Accounts payable - related party Other payables Other payables - related party Bonds payable Lease liabilities Total	Less than 1year	More than 1-2years	More than 2-5years	Over 5years $- - - - - 70,251 $70,251	Total
	$501,575 517,367 243 674,946 2,789 - 58,279	$- - - 2,655 - - 3,612	$- - - - - 780,300 10,101		$501,575 517,367 243 677,601 2,789 780,300 142,693
	$1,755,649	$6,267	$790,401		$2,622,568

Derivative financial liabilities: None

June 30, 2024 Non-derivative financial liabilities Short-term loan Accounts payable Accounts payable - related party Other payables Other payables - related party Bonds payable Lease liabilities Total	$1,002,208 507,060 244 993,195 3,738 - 63,069	$- - - 18,246 - - 5,020	$- - - - - 952,100 10,006	$- - - - - - 71,258	$1,002,208 507,060 244 1,011,441 3,738 952,100 149,353
	$2,569,514	$23,266	$962,106	$71,258	$3,626,144

Derivative financial liabilities: None

(D) Fair value of financial instruments

The book amount of the Group’s financial instruments is an amount reasonably close to the fair value.

Bonds payable	June 30,2025	June 30,2025	December 31,2024	December 31,2024	June 30,2024	June 30,2024
	Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount $907,472	Fair value
	$747,054	$746,913	$750,731	$747,840		$903,543

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (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; if it is an embedded derivative financial instrument, its fair value is assessed using a binomial tree convertible bond pricing model.
(iii) Financial assets measured at fair value through other comprehensive profit and loss are equity instrument investments without market price available for reference; therefore, the fair value is estimated according to the Market Approach. The company has the fair value estimated according to 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.
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(vi) Lease liabilities are discounted at the Group’s increment loan interest rate on the unpaid lease expense on the lease starting day and then measured at amortized cost of the effective interest method subsequently. The book amount of the lease liabilities is an amount reasonably close to the fair value.
(vii) The fair value of payable corporate bonds is estimated by discounting their cash flows using the market interest rate for corporate bonds with similar terms.

(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 nonrepetitive basis. The fair value level of assets and liabilities measured at fair value on a repetitive basis is as follows:

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

June 30, 2025 Assets Financial assets measured at fair value through profit and loss Funds Bonds SWAP contracts Embedded derivative financial instruments Financial assets measured at fair value through other profit and loss Unlisted stocks Liabilities: None December 31, 2024 Assets Financial assets measured at fair value through profit and loss Funds Bonds SWAP contracts Financial assets measured at fair value through other profit and loss Unlisted stocks Liabilities: None	Lever 1	Level 2	Level 3	Total
	$59,550 - - - $229,487 - - -	$- 2,155,462 - - $- 2,104,221 - -	$- - 539 259,466 $- - 1,951 444,031	$59,550 2,155,462 539 259,466 229,487 2,104,221 1,951 444,031

(Continuing to next page)

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

June 30, 2024 Assets Financial assets measured at fair value through profit and loss Funds Bonds SWAP contracts Embedded derivative financial instruments Financial assets measured at fair value through other profit and loss Unlisted stocks Liabilities:None	Lever 1	Level 2	Level 3	Total
	$98,421 - - -	$- 1,768,992 4,468 -	$- - - 2,952 374,593	$98,421 1,768,992 4,468 2,952 374,593

(ii) The Group did not have any significant transfers between Level 1 and Level 2 of the fair value hierarchy in the first half of 2025 and 2024.
(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

Items Opening balance Additions during the period Recognized in profit or loss during the period Reclassification Closing balance	Embedded derivative financial instruments	Embedded derivative financial instruments
	For the six months ended June 30
	2025 $1,951 - (1,384) (28) $539	2024
		$- 300 2,652 -
		$2,952

(02) Financial assets measured at fair value through other comprehensive income
79 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Items Opening balance Total (loss) profit Recognized in other comprehensive income Closing balance	Investment in equity instruments - unlisted(OTC)stocks	Investment in equity instruments - unlisted(OTC)stocks
	For the Six Months Ended June 30
	2025 $444,031 (184,565) $259,466	2024
		$320,903 53,690
		$374,593

In the first half of 2025 and 2024, the Group recognized fair value changes of level 3 financial assets in profit or loss for the current period in the amounts of NT$(1,384) thousand and NT$2,652, respectively, which were presented under non-operating income and expenses - other gains and losses. In the first half of 2025 and 2024, the Group recognized fair value changes of level 3 financial assets in other comprehensive income for the current period in the amounts of NT$(184,565) thousand and NT$53,690 thousand, respectively, which were presented under other comprehensive income - unrealized gains (losses) 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 embedded derivative financial instrument liability consists of components whose fair value is evaluated using a binomial tree convertible bond pricing model.
(05) The fair value of domestic unlisted equity instrument investment is evaluated with the Market Approach.
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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

June 30, 2025 Financial assets	Evaluation technique	Significant unobservable input value	Quantitative information	Relationship between the input value and fair value	Sensitivity analysis of the relationship between the input value and fair value
					When the volatility increases (decreases) by 5%, the profit / loss for the Group will increase by NT$308 thousand / decrease by NT$154 thousand. When the stock price-to-net value ratio of similar companies increases (decreases) by 5%, the equity of the Group will increase/decrease by NT$12,973 thousand. 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.

81 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

June 30,2024 Financial assets	Evaluation technique	Significant unobservable input value	Quantitative information	Relationship between the input value and fair value	Sensitivity analysis of the relationship between the input value and fair value
					When the volatility increases (decreases) by 5%, the profit / loss for the Group will increase by NT$571 thousand / decrease by NT$1,333 thousand. When the stock price-to-net value ratio of similar companies increases (decreases) by 5%, the equity of the Group will increase/decrease by NT$18,730 thousand.

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

The Accounting Department of the Group 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 Group s accounting policies to ensure the reasonableness of the evaluation result.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. and Subsidiaries (Continuing)

(Review only without following generally accepted auditing standards)

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

13. SUPPLEMENTARY DISCLOSURE MATTERS

The transactions between the company and the following subsidiaries and among the subsidiaries were written-off at the time of preparing the consolidated financial report. The information disclosed below is for reference only.

(1) Information on major transactions

Supplementary information of the company and the subsidiaries for the six-month periods ended June 30, 2025 is disclosed as follows:

(A) Loaning of funds:

															Unit: NT$	Thousand/RMB
No	Lending company	Borrower	Accounting item	Related party	Maximum amount - current	Balance – ending (June 30.2025) (Note 2)	Actual amount implemented (Note 3)	Interest rate range	Nature of loan	Transaction 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	Valu e
1	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD	Other accounts receivable - related party	Yes	$ 41,730 (RMB10,000,000)	$ 33,384 (RMB8,000,000)	$ 33,384 (RMB8,000,000)	-	Short -term loan	$-	Business operation of affiliated enterprise	$-	-	$-	$151,222 (RMB36,238,301 )	$604,890 (USD144,953,204)

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.

83 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards)

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

(B) Provision of endorsements and guarantees to others: None.
(C) Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures):

					Unit: NT$ Thousand/RMB/THB/USD	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	Ending (June 30, 2025)				Remarks
					Shares / unit / 1,000 shares	Book amount	Shareholdi ng ratio (%)	Fair value / net value
G-SHANK ENTERPRISE CO., LTD.	Stocks	REEL MASK INDUSTRY CO., LTD.	None	Financial assets-noncurrent measured at fair value through other comprehensive profit and loss	3,392,713	$259,466	9.98	$259,466
	Bonds	HSBC Holding bonds HSBC 6.95 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	3,000,000	90,087 (USD 3,018,000)	-	90,087 (USD 3,018,000)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	1,330,000	43,494 (USD 1,457,068)	-	43,494 (USD 1,457,068)
	Bonds	UBS Group Bonds UBS 6.85 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	3,000,000	89,980 (USD 3,014,400)	-	89,980 (USD 3,014,400)
	Bonds	UBS Group Bonds UBS 7.75 PERP (I)	None	Financial assets-current measured at fair value through profit and loss	1,440,000	45,281 (USD 1,516,968)	-	45,281 (USD 1,516,968)
	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	107,115 (USD 3,588,436)	-	107,115 (USD 3,588,436)
	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	58,617 (USD 1,963,728)	-	58,617 (USD 1,963,728)
	Bonds	BCS-Barclays Plc bonds BACR 7.625 PERP	None	Financial assets-current measured at fair value through profit and loss	1,200,000	$36,059 (USD 1,208,016)	-	$36,059 (USD 1,208,016)

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84 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards)

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

(Continued from previous page)

Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title	Ending (June 30,2025)	Ending (June 30,2025)	Ending (June 30,2025)	Ending (June 30,2025)
					Shares / unit / 1,000 shares	Book amount	Shareholdi ng ratio (%)	Fair value / net value
G-SHANK ENTERPRISE CO., LTD.	Bonds	HSBC Holding bonds HSBC 6.875 PERP	None	Financial assets-current measured at fair value through profit and loss	4,930,000	149,210 (USD 4,998,675)	-	149,210 (USD 4,998,675)
	Bonds	HSBC Holding bonds HSBC 6.95 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	3,270,000	98,195 (USD 3,289,620)	-	98,195 (USD 3,289,620)
	Bonds	ING Groep NV INTNED 7.5 PERP	None	Financial assets-current measured at fair value through profit and loss	500,000	15,420 (USD 516,580)	-	15,420 (USD 516,580)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	1,608,000	52,585 (USD 1,761,628)	-	52,585 (USD 1,761,628)
	Bonds	UBS Group Bonds UBS 6.85 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	4,610,000	138,269 (USD 4,632,128)	-	138,269 (USD 4,632,128)
	Bonds	UBS Group Bonds UBS 7 PERP	None	Financial assets-current measured at fair value through profit and loss	400,000	11,953 (USD 400,452)	-	11,953 (USD 400,452)
	Bonds	UBS Group Bonds UBS 7.125 PERP	None	Financial assets-current measured at fair value through profit and loss	5,990,000	178,013 (USD 5,963,584)	-	178,013 (USD 5,963,584)
	Bonds	UBS Group Bonds UBS 7.75 PERP (II)	None	Financial assets-current measured at fair value through profit and loss	5,030,000	$158,171 (USD 5,298,854)	-	$158,171 (USD 5,298,854)

(Continuing to next page)

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title	Ending (June 30,2025)	Ending (June 30,2025)	Ending (June 30,2025)	Ending (June 30,2025)
					Shares / unit / 1,000 shares	Book amount	Shareholdi ng ratio (%)	Fair value / net value
G-SHANK ENTERPRISE 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	10,366 (USD 347,268)	-	10,366 (USD 347,268)
	Bonds	UBS Group Bonds UBS 9.25 PERP (5Y) (II)	None	Financial assets-current measured at fair value through profit and loss	1,000,000	32,565 (USD 1,090,960)	-	32,565 (USD 1,090,960)
	Bonds	BCS-Barclays Plc bonds BACR 9.625 PERP	None	Financial assets-current measured at fair value through profit and loss	1,490,000	49,276 (USD 1,650,771)	-	49,276 (USD 1,650,771)
	Bonds	HSBC Holding bonds HSBC 6.95 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	1,250,000	37,286 (USD 1,249,125)	-	37,286 (USD 1,249,125)
	Bonds	HSBC Holding bonds HSBC 8 PERP	None	Financial assets-current measured at fair value through profit and loss	787,000	24,608 (USD 824,383)	-	24,608 (USD 824,383)
	Bonds	Societe Generale bonds SOCGEN 10 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	1,500,000	48,778 (USD 1,634,100)	-	48,778 (USD 1,634,100)
	Bonds	UBS Group Bonds UBS 6.85 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	598,000	17,874 (USD 598,777)	-	17,874 (USD 598,777)
	Bonds	UBS Group Bonds UBS 7.75 PERP (III)	None	Financial assets-current measured at fair value through profit and loss	2,500,000	$78,259 (USD 2,621,750)	-	$78,259 (USD 2,621,750)

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title	Ending (June 30,2025)	Ending (June 30,2025)	Ending (June 30,2025)	Ending (June 30,2025)
					Shares / unit / 1,000 shares	Book amount	Shareholdi ng ratio (%)	Fair value / net value
G-SHANK ENTERPRISE CO., LTD.	Bonds	UBS Group Bonds UBS 5.6 PERP(SGD) (I)	None	Financial assets-current measured at fair value through profit and loss	1,000,000	24,454 (SGD1,041,930)	-	24,454 (SGD1,041,930)
	Bonds	HSBC Holding bonds HSBC 5.25 PERP(SGD) (I)	None	Financial assets-current measured at fair value through profit and loss	5,750,000	137,797 (SGD 5,871,210)	-	137,797 (SGD 5,871,210)
	Bonds	UBS Group Bonds UBS 5 PERP (SGD)	None	Financial assets-current measured at fair value through profit and loss	750,000	17,992 (SGD 766,613)	-	17,992 (SGD 766,613)
	Bonds	HSBC Holding bonds HSBC 5.25 PERP (SGD) (II)	None	Financial assets-current measured at fair value through profit and loss	3,000,000	71,894 (SGD 3,063,240)	-	71,894 (SGD 3,063,240)
	Bonds	BCS-Barclays Plc bonds BACR 5.4 PERP (SGD)	None	Financial assets-current measured at fair value through profit and loss	2,000,000	47,304 (SGD 2,015,500)	-	47,304 (SGD 2,015,500)
	Bonds	HSBC Holding bonds HSBC 5.25 PERP (SGD) (III)	None	Financial assets-current measured at fair value through profit and loss	2,750,000	66,163 (SGD 2,819,025)	-	66,163 (SGD 2,819,025)
	Bonds	UBS Group Bonds UBS 5.6 PERP(SGD)	None	Financial assets-current measured at fair value through profit and loss	3,000,000	73,392 (SGD 3,127,050)	-	73,392 (SGD 3,127,050)
	Bonds	UBS Group Bonds UBS 5.75 PERP(SGD)	None	Financial assets-current measured at fair value through profit and loss	1,250,000	$30,677 (SGD 1,307,063)	-	$30,677 (SGD 1,307,063)
	Bonds	UBS Group Bonds UBS 3.375 PERP (CHF)	None	Financial assets-current measured at fair value through profit and loss	600,000	22,774 (CHF 608,454)	-	22,774 (CHF 608,454)

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(Continued from previous page)

Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title	Ending (June 30, 2025)	Ending (June 30, 2025)	Ending (June 30, 2025)	Ending (June 30, 2025)
					Shares / unit / 1,000 shares	Book amount	Shareholding ratio (%)	Fair value / net value
CHIN DE INVESTMEN T CO., LTD.	Bonds	UBS Group Bonds UBS 6.85 PERP	None	Financial assets-current measured at fair value through profit and loss	540,000	16,196 (USD 542,592)	-	16,196 (USD 542,592)
	Bonds	Societe Generale bonds SOCGEN 10 PERP	None	Financial assets-current measured at fair value through profit and loss	1,080,000	35,318 (USD 1,183,183)	-	35,318 (USD 1,183,183)
GREAT- SHANK CO., LTD.	Funds	BFIXED	None	Financial assets-current measured at fair value through profit and loss	885,155	10,929 (THB 11,866,827)	-	10,929 (THB 11,866,827)
	Funds	KFAFIX-A	None	Financial assets-current measured at fair value through profit and loss	3,099,082	34,971 (THB 37,970,878)	-	34,971 (THB 37,970,878)
	Funds	SCBFIXDA	None	Financial assets-current measured at fair value through profit and loss	1,331,274	13,650 (THB 14,820,537)	-	13,650 (THB 14,820,537)

(D) The amount of purchases from or sales to related parties reached NT$100 million or 20% or more of the paid-in capital: None.

(E) The balance of accounts receivable from related parties amounted to NT$100 million or 20% or more of the paid-in capital: None.

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(F) Business relationship and important transactions and transaction amount between the parent company and subsidiaries and among 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	Other income Other receivables - related parties	$12,612 12,068	Note 4	0.36% 0.10%
1	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	3	Cost of goods sold Other payables - related parties	53,802 21,177	Note 5	1.56% 0.18%
1	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD.	3	Cost of goods sold Accounts receivable -related parties	18,648 36,794	Note 5	0.54% 0.32%
1	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	G-SHANK JAPAN CO., LTD	3	Cost of goods sold	11,626	Note 5	0.34%

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.

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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing) (Review only without following generally accepted auditing standards)

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

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: Recognized in accordance with contractual terms.
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.
90 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing) (Review only without following generally accepted auditing standards)

(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 six-month period ended June 30, 2025.

Unit ： NTD Thousand/USD/MYR

Investor Company	Investee Company	Location	Main business operation	Original investment amount (Note 13)	Original investment amount (Note 13)		As of June 30, 2025	As of June 30, 2025	Current profit (loss) of the Investee Company	Investment profit (loss) recognized in current period (Note 12)
				June 30, 2025	December 31, 2024	Number of shares	Ratio (%)	Book amount (Note 12)
G-SHANK ENTERPRISE CO., LTD.	CHIN DE INVESTMENT CO., LTD.	Note 1	General investment	$50,000	$50,000	5,000,000	100.00	$57,685	$(1,511)	$(1,511)
	GRAND STAR ENTERPRISES L.L.C.	Note 2	General investment	590,864	590,864	-	100.00	1,512,239	61,939	61,935
	G-SHANK, Inc.	Note 3	Stamping parts molds, fixtures	36,686	36,686	1,000	100.00	375,901	1,712	1,755
	G-SHANK ENTERPRISE (M) SDN. BHD.	Note 4	Stamping parts molds, fixtures	85,112	85,112	6,924,750	92.33	492,265	28,609	26,586
	GREAT-SHANK CO., LTD.	Note 5	Precision progressive die and hardwareproducts	69,509	69,509	7,968,750	85.00	109,150	11,026	9,369
	G-SHANK JAPAN CO., LTD.	Note 6	International trade	19,749	19,749	1,060	58.89	23,275	4,661	2,745
	G-SHANK PHILIPPINES CORP.	Note 11	Stamping parts molds, fixtures	68,428	-	1,200,000	100.00	65,194	1,299	1,299
	SUNFLEX TECHNOLOGY CO., LTD.	Note 7	Manufacturing and trading of electronic components	71,706	40,448	11,375,148	14.41	205,904	(60,482)	(8,690)

91 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards)

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

(Continued from previous page)

(Continued from previous page)	(Continued from previous page)	(Continued from previous page)	(Continued from previous page)
				Uni`t`：NTD Thousand/USD/MYR
Investor Company	Investee Company	Location	Main business operation	Original investment amount (Note 13)		As of June 30, 2025			Current profit (loss) of the Investee Company	Investment profit (loss) recognized in current period (Note 12)	Footnote
				June 30, 2025	December 31, 2024	Number of shares	Ratio (%)	Book amount (Note 12)
CHIN DE INVESTMENT CO.,LTD.	SUNFLEX TECHNOLOGY CO., LTD.	Note 7	Manufacturing and trading of electronic components	$241	$217	11,087	0.01	$200	$(60,482)	$(9)
G-SHANK ENTERPRISE (M)SDN. BHD.	PT INDONESIA G-SHANK PRECISION	Note 8	Stamping parts molds, fixtures	50,655 (RM7,144,500)	50,655 (RM7,144,500)	18,800	94.00	231,168 (RM32,604,865)	18,847 (RM2,577,255)	-
G-SHANK, INC.	G-SHANK DEMEXICO,S.A. DE C.V.	Note 9	Stamping parts molds, fixtures	433 (USD 14,512)	433 (USD 14,512)	-	100.00	31,488 (USD1,054,877)	3,264 (USD102,847)	-
GRAND STAR ENTERPRISES L.L.C.(Note 2)	GLOBAL STAR INTERNATIONAL CO.,LTD.	Note 10	General investment	573,658 (USD19,218,011)	573,658 (USD19,218,011)	19,218,011	100.00	1,499,019	62,932	-

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, KYl9006 Cayman Islands.

Note 11: Lot 1 Block 24 Phase 1 Building 5 Sheng U MFG. Inc., M.H. Del Pilar Street, Lima Technology Center-SEZ San Lucas, Lipa City, Batangas 4217.

Note 12: Except for GRAND STAR ENTERPRISES L.L.C. and GLOBAL STAR INTERNATIONAL CO., LTD. the calculation according to the financial statements of the invested companies of the same period that have not been reviewed by the independent auditor.

Note 13: 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 June 30, 2025.

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(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:

Uni t ： 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 currentperiod	Investment amount remitted in or out in currentperiod	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	$277,403	85.00	$235,830	$1,509,350	$2,702,151 (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	1,639	80.19	1,315	58,228	107,199 (USD3,591,264)
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	13,294	51.00	6,780	97,742	33,066 (USD1,107,739)
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	1,124	79.60	895	88,565	68,120 (USD2,282,062)

(Continuing to next page)

93 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from previous page)

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 currentperiod	Investment amount remitted in or out in currentperiod	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 investmen t - ending	Investment profit remitted into Taiwan as of current period
					Remitted out	Remitted in
G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD.	Planer, milling machine or die machine, precision continuous die and hardwareproducts	USD1,400,000	Investment through the company set up in the third region (Note F)	USD1,671,825	$-	$-	USD1,671,825	$16,911	100.00	$16,911	$242,990	$189,869 (USD6,360,767)
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	(10,373)	92.83	(9,629)	173,352	351,432 (USD11,773,269)
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	19,468	88.20	17,171	209,934	152,773 (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)	USD255,000	-	-	USD255,000	4,750	85.00	4,037	72,088	607,407 (USD20,348,650)
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	5,994	93.85	5,625	102,438	7,783 (USD260,742)
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	$23,007	91.43	$21,035	$465,138	$147,365 (USD4,936,848)

(Continuing to next page)

94 -

(Continued from previous page)

Unit ： NTD Thousand/USD/RMB/HKD

Invested company in China	Main business operation	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 currentperiod	Investment amount remitted in or out in currentperiod	Cumulative investment amount remitted out of Taiwan in current period - ending	Current profit (loss) of the invested company	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 investmen t - ending	Investment profit remitted into Taiwan as of current period
						Remitted out	Remitted in
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.	$-	$-	$-	$-	$(2,184)		100.00	$(2,184)	$78,198	$-
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.	-	-	-	-		4,838	100.00	4,838	21,944	-
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.	-	-	-	-		-	100.00	-	233,528	-

		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)
		$629,421 (USD21,086,140)			$843,486 (USD28,257,472)					$4,771,042

95 -

Note 1 ： It includes the approved investment of USD 2,730,000 in Dongguan Qiaoju Trading Co., Ltd., with the remaining investment funds of USD 932,685 deducted, resulting in a net amount of USD 1,797,315.
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 March 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 profit and loss amount from the subsidiary under the equity method for the six-month period ended June 30, 2025 was calculated according to the investee company’s financial statements not audited by the independent auditors, except for SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.
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.
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. and Subsidiaries (Continuing) (Review only without following generally accepted auditing standards) (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 June 30, 2025, SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. had a paid-in capital of USD$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, Lin, Yu-Huang. The main content of the power of attorney is as follows:
(a) The company designated the trustee to invest USD$1,700,000 (including bank transfer of USD$1,250,000 and machinery and equipment for an amount of USD$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.
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(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.
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 March 3, 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 JinShen-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.
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Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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 JinShen-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. 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, JinShen-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
99 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

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 JinShen-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 JinShen-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 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 JinShen-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 JinShen-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.
100 -

(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 13.(1)(F) of the consolidated financial report for details.
(b) The sales amount and percentage and the related receivable amount and percentage at yearend: The transaction amount for the current period was not material and, therefore, was not disclosed.
(c) The property transaction amount and the profit and loss resulted: The transaction amount for the current period was not material and, therefore, was not disclosed.
(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 the consolidated financial report for details.
(f) Other transactions that have a significant impact on the profit and loss or financial status: Please refer to Note 13.(1)(F) of the consolidated financial report for details.

14. DEPARTMENT INFORMATION

There are two reporting departments within the Group, including the stamping parts department and the general investment department. The stamping parts department is mainly for the manufacturing and production, processing, and trading of stamping components, while the general investment department is engaged in short-term investment and general investment activities. The reportable departmental profit and loss are measured by operating profit and loss before tax (excluding the total management and logistics costs to be amortized, non-operating income and benefits, non-operating expenses and losses, and income tax expenses) and it is the base for performance evaluation. This measurement amount is provided to the operating decision-maker to determine the allocation of resources to each department and to evaluate the performance of each department. The accounting policies of the operating department are the same as the summary of the significant accounting policies described in Note 4 of the consolidated financial report.

101 -

Department information

Department information
Stamping parts department For the three-month period ended June 30, 2025	Stamping parts department	General investment department	Adjustment & write-off	Consolidation
		$- -	$- -	$1,811,516 -
Income Income from external customers $1,811,516 Inter-department income - Total income $1,811,516 Departmental profit and loss $301,567 Non-operating income and expense Net income before tax of the continuing business unit For the three-month period ended June 30, 2024	$1,811,516 -
	$1,811,516	$-	$-	$1,811,516
	$301,567	$(4,362)	$-	$297,205 (198,343)
		$- -	$- -
				$98,862
				$1,648,461 -
Income Income from external customers Inter-department income Total income Departmental profit and loss Non-operating income and expense Net income before tax of the continuing business unit	$1,648,461 -
	$1,648,461	$-	$-	$1,648,461
	$310,924	$877	$-	$311,801 119,775

				$431,576

102 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

For the six-month period ended	Stamping parts department	General investment department	Adjustment & write-off	Consolidation
	June 30, 2025 $3,457,947 -	$- -	$- -	$3,457,947 -
Income Income from external customers Inter-department income Total income Departmental profit and loss Non-operating income and expense Net income before tax of the continuing business unit For the six-month period ended
	$3,457,947	$-	$-	$3,457,947
	$546,900	$(1,887)	$-	$545,013 (97,552) $447,461
	June 30, 2024 $3,052,951 -	$- -	$- -
				$3,052,951 -
Income Income from external customers Inter-department income Total income Departmental profit and loss Non-operating income and expense Net income before tax of the continuing business unit
	$3,052,951	$-	$-	$3,052,951
	$483,141	$4,312	$-	$487,453 299,559

				$787,012

103 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

Stamping parts department	General investment department	Adjustment & write-off	Consolidation
$8,908,099 1,733 25,423 2,629,407	$57,672 15 263 -	$- - - -	$8,965,771 1,748 25,686 2,629,407
$11,564,662	$57,950	$-	$11,622,612
$2,941,749 117,259 600,852 10,750	$25 240 - -	$- - - -	$2,941,774 117,499 600,852 10,750
$3,670,610	$265	$-	$3,670,875
$9,357,224 10,537 9,676 2,901,943	$61,103 305 152 -	$- - - -	$9,418,327 10,842 9,828 2,901,943
$12,279,380	$61,560	$-	$12,340,940
$2,612,937 226,987 593,407 10,750	$25 - 508 -	$- - - -	$2,612,962 226,987 593,915 10,750
$3,444,081	$533	$-	$3,444,614

(Continuing to the next page)

104 -

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(Review only without following generally accepted auditing standards) (Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the previous page) Stamping parts department June 30, 2024 Assets Department assets $10,017,719 Current tax assets 4,722 Deferred tax assets 9,346 Investment – non- investment department 2,383,647 Total assets $12,415,434 Liabilities Department liabilities $3,625,597 Current tax liabilities 152,021 Deferred tax liabilities 627,713 Net defined benefit liabilities 29,956 Total liabilities $4,435,287	General investment department	Adjustment & write-off	Consolidation
$10,017,719 4,722 9,346 2,383,647	$56,978 305 681 -	$- - - -	$10,074,697 5,027 10,027 2,383,647
$12,415,434	$57,964	$-	$12,473,398
$3,625,597 152,021 627,713 29,956	$25 - 211 -	$- - - -	$3,625,622 152,021 627,924 29,956
$4,435,287	$236	$-	$4,435,523

105 -

AI assistant

GS — Interim / Quarterly Report 2025

52110_rns_2025-12-01_41d8dce6-84f1-470f-a4e0-e020da70cd10.pdf

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

Notice to Readers

INDEPENDENT AUDITOR’S REVIEW REPORT

To: G-Shank ENTERPRISE CO., LTD.

Introduction

Scope of Review

Basis for Qualified Conclusion

Conclusion

Notice to Readers

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUING)

G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

1. COMPANY HISTORY

2. FINANCIAL REPORT APPROVAL DATE AND PROCEDURE

3. APPLICATION OF THE NEWLY ISSUED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MAJOR ACCOUNTING POLICIES

(1) Financial report preparation and measurement basis

(A) Statement of Compliance

(B) Measurement basis

(C) Functional and reporting currency

(2) The preparation scope of consolidated financial report

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

(Continuing)

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

G-SHANK ENTERPRISE CO., LTD.

(3) Principles for the preparation of consolidated financial report

- (B) Transactions between shareholders of the company and non controlling interests

(a) Without resulting in “loss of control”

(b) Resulting in “loss of control”

(4) Employee benefits - retirement benefits

(6) Other significant accounting policies

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

6. DESCRIPTION OF IMPORTANT ACCOUNTING ITEMS

(1) Cash and cash equivalents

(2) Financial assets-current measured at fair value through profit and loss

December 31, 2024: None.

(4) Net Accounts Receivable and Collections

(5) Inventory

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

(6) Other financial assets-current

(7) Financial assets at fair value through other comprehensive income - noncurrent

(8) Investment under the equity method

(9) Property, plant and equipment

For the six months ended June 30, 2025

For the six months ended June 30, 2024

(10) Right-of-use assets

(11) Intangible assets

(12) Short-term loans

(13) Bonds Payable

(f) Conversion Period:

(14) Lease liabilities

(B) Other rental information is listed as follows:

(15) Retirement benefits

(A) Defined benefits plan

(c) Pension expenses recognized as profit or loss:

(B) Defined contribution plan

(16) Capital stock

- (17) Additional paid in capital

(18) Legal reserve

(19) Special reserve

(20) Earnings distribution and dividend policy

(22) Non-controlling interests

(23) Share-based payment - employee rewards

(A) Employee stock options

Notes to Consolidated Financial Statements of G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES (Continuing)

(B) Cash capital increase with employee subscription

(24) Net operating income

(A) Income classification:

(a) Main merchandise / service

(b) Main regional markets

GS Interim / Quarterly Report 2025