Hiwin Technologies Corporation and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we did not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

HIWIN TECHNOLOGIES CORPORATION

By:

Wen Hen Chuo
President

February 26, 2026

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
Hiwin Technologies Corporation

Opinion

We have audited the accompanying consolidated financial statements of Hiwin Technologies Corporation (the “Corporation”) and its subsidiaries (collectively the “Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matters of the Group’s consolidated financial statements for the year ended December 31, 2025 are described as follows:

Revenue Recognition

The sales of the Group mainly rely on distribution channels. Revenue from the sale of goods is recognized when the Group satisfies the performance obligations. There is a risk that revenue might be recognized even when specific conditions have not been satisfied. Because of the risk of misstatement and materiality of sales revenue generated by distribution channels, we identified the recognition of sales revenue as a key audit matter. The accounting policy on sales revenue recognition is disclosed in Note 4 to the consolidated financial statements.

Our key audit procedures performed in respect of revenue recognition included the following:

We understood the internal controls, evaluated the design and implementation of key controls and tested the operating effectiveness of relevant controls over order acceptance and shipping procedures. We selected sample sales transactions from distribution channels and verified that order receipts and the timing of revenue recognition were in accordance with the terms of the transaction.
We validated the terms of transactions against sales contracts and orders from major distributors to ensure the consistency between terms of transactions and the timing of revenue recognition. We tested the records of sales returns against source documents and checked whether there was any unusual item during the year and after the balance sheet date.

Other Matter

We have also audited the parent company only financial statements of Hiwin Technologies Corporation as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Li-Tung Wu and Hsiao-Fang Yen.

Deloitte & Touche
Taipei, Taiwan
Republic of China

February 26, 2026

Notice to Readers

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

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

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024 (After Retrospective Adjustment)
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 7,624,371	14	$ 7,353,929	14
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	330	-	112	-
Notes receivable from unrelated parties, net (Notes 4, 9 and 20)	530,430	1	569,416	1
Notes receivable from related parties, net (Notes 4, 9, 20 and 28)	556	-	1,091	-
Trade receivables from unrelated parties, net (Notes 4, 9 and 20)	3,886,960	7	3,896,076	7
Trade receivables from related parties, net (Notes 4, 9, 20 and 28)	333	-	810	-
Inventories (Notes 4 and 10)	7,093,796	13	7,407,335	14
Other current assets (Notes 4, 6, 28 and 29)	727,115	2	754,666	1
Total current assets	19,863,891	37	19,983,435	37
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8)	1,121,345	2	1,601,429	3
Investments accounted for using the equity method (Notes 4 and 12)	368,670	1	305,995	1
Property, plant and equipment (Notes 4, 13, 28 and 29)	29,835,615	55	29,449,620	54
Right-of-use assets (Notes 4, 14, 28 and 29)	653,322	1	710,880	1
Goodwill (Notes 4 and 24)	294,341	-	291,375	1
Deferred tax assets (Notes 4 and 22)	414,789	1	460,799	1
Prepayments for machinery and equipment (Note 15)	1,228,545	2	1,272,595	2
Refundable deposits (Notes 4 and 28)	93,041	-	99,780	-
Other non-current assets (Notes 4 and 9)	302,437	1	259,032	-
Total non-current assets	34,312,105	63	34,451,505	63
TOTAL	$ 54,175,996	100	$ 54,434,940	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 16 and 28)	$ 2,033,445	4	$ 1,397,394	3
Financial liabilities at fair value through profit or loss - current (Notes 4 and 7)	14,767	-	5,423	-
Contract liabilities - current (Notes 4 and 20)	54,528	-	139,507	-
Notes payable	4,576	-	2,631	-
Trade payables to unrelated parties	3,089,606	6	3,179,444	6
Trade payables to related parties (Note 28)	156,410	-	135,550	-
Other payables (Notes 17 and 28)	1,739,239	3	1,866,050	4
Current tax liabilities (Notes 4 and 22)	136,603	-	211,727	-
Lease liabilities - current (Notes 4, 14 and 28)	99,384	-	101,258	-
Current portion of long-term borrowings (Notes 16, 28 and 29)	977,336	2	1,067,434	2
Other current liabilities (Note 4)	223,852	1	215,618	-
Total current liabilities	8,529,746	16	8,322,036	15
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 16, 28 and 29)	6,712,084	12	7,562,662	14
Deferred tax liabilities (Notes 4 and 22)	902,908	2	822,748	2
Lease liabilities - non-current (Notes 4, 14 and 28)	419,523	1	470,373	1
Net defined benefit liabilities - non-current (Notes 4 and 18)	104,267	-	141,983	-
Other non-current liabilities (Note 16)	33,848	-	41,000	-
Total non-current liabilities	8,172,630	15	9,038,766	17
Total liabilities	16,702,376	31	17,360,802	32
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION
Ordinary shares	3,537,923	7	3,537,923	6
Capital surplus	7,479,735	14	7,479,735	14
Retained earnings
Legal reserve	4,213,350	8	4,028,836	7
Unappropriated earnings	20,949,461	38	20,520,180	38
Other equity	1,165,297	2	1,362,373	3
Total equity attributable to owners of the Corporation	37,345,766	69	36,929,047	68
NON-CONTROLLING INTERESTS	127,854	-	145,091	-
Total equity	37,473,620	69	37,074,138	68
TOTAL	$ 54,175,996	100	$ 54,434,940	100

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

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
SALES (Notes 4, 20 and 28)	$ 24,262,638	100	$ 24,391,684	100
COST OF GOODS SOLD (Notes 10, 21 and 28)	17,284,790	71	17,173,869	70
GROSS PROFIT	6,977,848	29	7,217,815	30
OPERATING EXPENSES (Notes 21 and 28)
Selling and marketing expenses	1,990,252	8	1,996,083	8
General and administrative expenses	2,319,707	10	2,199,585	9
Research and development expenses	1,024,660	4	963,362	4
Total operating expenses	5,334,619	22	5,159,030	21
PROFIT FROM OPERATIONS	1,643,229	7	2,058,785	9
NON-OPERATING INCOME AND EXPENSES
Subsidized revenue (Notes 4 and 16)	31,449	-	20,489	-
Finance costs (Notes 4, 21 and 28)	(215,268)	(1)	(178,230)	(1)
Share of profit of associates accounted for using the equity method (Notes 4 and 12)	22,129	-	35,421	-
Interest income (Note 4)	86,772	-	95,380	-
Other income (Notes 4 and 28)	111,044	-	125,671	1
Net foreign exchange gain (Notes 4 and 31)	145,496	1	187,248	1
Other expenses (Note 28)	(11,838)	-	(18,137)	-
Loss on disposal of property, plant and equipment (Notes 4)	(21,640)	-	(38,643)	-
Valuation loss on financial assets (liabilities) at fair value through profit or loss (Note 4)	(27,280)	-	(38,353)	-
Total non-operating income and expenses	120,864	-	190,846	1
PROFIT BEFORE INCOME TAX	1,764,093	7	2,249,631	10
INCOME TAX EXPENSE (Notes 4 and 22)	353,965	1	386,817	2
NET PROFIT FOR THE YEAR	1,410,128	6	1,862,814	8

(Continued)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
(Note 4)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans (Note 18)	$ 29,159	-	$ 13,670	-
Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income	(478,551)	(2)	765,228	3
Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 22)	(3,133)	-	(1,290)	-
	(452,525)	(2)	777,608	3
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	349,134	1	206,224	1
Income tax relating to items that may be reclassified subsequently to profit or loss (Note 22)	(67,787)	-	(41,337)	-
	281,347	1	164,887	1
Other comprehensive income (loss) for the year, net of income tax	(171,178)	(1)	942,495	4
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 1,238,950	5	$ 2,805,309	12
NET PROFIT (LOSS) ATTRIBUTABLE TO:
Owners of the Corporation	$ 1,525,866	6	$ 1,971,948	8
Non-controlling interests	(115,738)	-	(109,134)	-
	$ 1,410,128	6	$ 1,862,814	8
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
Owners of the Corporation	$ 1,352,899	6	$ 2,911,229	12
Non-controlling interests	(113,949)	(1)	(105,920)	-
	$ 1,238,950	5	$ 2,805,309	12
EARNINGS PER SHARE (Note 23)
Basic	$ 4.31		$ 5.57
Diluted	$ 4.30		$ 5.56

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

(Concluded)

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Equity Attributable to Owners of the Corporation (Notes 19 and 25)
	Ordinary Shares	Capital Surplus	Retained Earnings		Other Equity		Total	Non-controlling Interests (Notes 11 and 25)	Total Equity
			Legal Reserve	Unappropriated Earnings (Notes 8 and 25)	Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
BALANCE ON JANUARY 1, 2024	$ 3,537,923	$ 7,479,735	$ 3,821,341	$ 19,767,009	$ (280,839)	$ 672,855	$ 34,998,024	$ 116,301	$ 35,114,325
Appropriation of 2023 earnings
Legal reserve	-	-	207,495	(207,495)	-	-	-	-	-
Cash dividends - NT$2.5 per share	-	-	-	(884,481)	-	-	(884,481)	-	(884,481)
	-	-	207,495	(1,091,976)	-	-	(884,481)	-	(884,481)
Changes in percentage of ownership interests in subsidiaries	-	-	-	(95,725)	-	-	(95,725)	95,725	-
Disposal of investments in equity instruments as at fair value through other comprehensive income	-	-	-	(40,045)	-	40,045	-	-	-
Changes in non-controlling interests	-	-	-	-	-	-	-	38,985	38,985
Net profit (loss) for the year ended December 31, 2024	-	-	-	1,971,948	-	-	1,971,948	(109,134)	1,862,814
Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	8,969	165,084	765,228	939,281	3,214	942,495
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	1,980,917	165,084	765,228	2,911,229	(105,920)	2,805,309
BALANCE ON DECEMBER 31, 2024	3,537,923	7,479,735	4,028,836	20,520,180	(115,755)	1,478,128	36,929,047	145,091	37,074,138
Appropriation of 2024 earnings
Legal reserve	-	-	184,514	(184,514)	-	-	-	-	-
Cash dividends - NT$2.4 per share	-	-	-	(849,101)	-	-	(849,101)	-	(849,101)
	-	-	184,514	(1,033,615)	-	-	(849,101)	-	(849,101)
Difference between consideration received or paid and the carrying amount of the subsidiaries' net assets during actual disposal or acquisition	-	-	-	(142)	-	-	(142)	(11)	(153)
Changes in percentage of ownership interests in subsidiaries	-	-	-	(86,937)	-	-	(86,937)	86,937	-
Changes in non-controlling interests	-	-	-	-	-	-	-	9,786	9,786
Net profit (loss) for the year ended December 31, 2025	-	-	-	1,525,866	-	-	1,525,866	(115,738)	1,410,128
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	24,109	281,475	(478,551)	(172,967)	1,789	(171,178)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	1,549,975	281,475	(478,551)	1,352,899	(113,949)	1,238,950
BALANCE ON DECEMBER 31, 2025	$ 3,537,923	$ 7,479,735	$ 4,213,350	$ 20,949,461	$ 165,720	$ 999,577	$ 37,345,766	$ 127,854	$ 37,473,620

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

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 1,764,093	$ 2,249,631
Adjustments for:
Depreciation expenses	2,302,621	2,272,470
Amortization expenses	55,308	62,244
Expected credit loss recognized on trade receivables	10,921	6,993
Net loss on fair value changes of financial assets and liabilities at fair value through profit or loss	14,437	5,311
Finance costs	215,268	178,230
Interest income	(86,772)	(95,380)
Dividend income	(2,416)	(9,730)
Share of profit of associates accounted for using the equity method	(22,129)	(35,421)
Loss on disposal of property, plant and equipment	21,640	38,643
Gain on disposal of investments accounted for using the equity method	-	(32,223)
Write-downs (reveral) of inventories	(64,435)	207,373
Unrealized foreign currency exchange loss (gain), net	(123,989)	12,074
Others	(1,156)	29
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through profit or loss	(5,311)	9,738
Notes receivable	33,690	9,071
Trade receivables	162,745	(843,499)
Inventories	780,158	254,158
Other current assets	78,148	(120,603)
Contract liabilities	(84,948)	2,116
Notes payable	1,945	(3,879)
Trade payables	(136,260)	415,867
Other payables	(55,712)	(82,400)
Other current liabilities	(885)	20,470
Net defined benefit liabilities	(34,512)	(13,916)
Cash generated from operations	4,822,449	4,507,367
Interest received	83,414	95,533
Dividend received	2,416	9,730
Interest paid	(225,876)	(192,193)
Income tax paid	(405,162)	(801,816)
Net cash generated from operating activities	4,277,241	3,618,621
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of financial assets at fair value through other comprehensive income	-	11,308
Proceeds from refunds from financial assets at fair value through other comprehensive income capital premium	1,533	2,000
Net cash outflow on acquisition of subsidiary (Note 24)	-	(140,693)
Payments for property, plant and equipment	(1,691,702)	(2,881,118)
		(Continued)

10 -

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
Proceeds from disposal of property, plant and equipment	$ 22,732	$ 14,793
Decrease in refundable deposits	5,963	9,681
Increase in other non-current assets	(82,317)	(76,743)
Increase in prepayments for machinery and equipment	(1,074,084)	(833,297)
Dividends received from associates	-	11,347
Net cash used in investing activities	(2,817,875)	(3,882,722)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings	617,936	(98,363)
Proceeds from long-term borrowings	355,761	1,802,043
Repayments of long-term borrowings	(1,290,489)	(700,593)
Repayment of the principal portion of lease liabilities	(136,508)	(176,353)
Increase (decrease) in other non-current liabilities	14,698	(191)
Dividends paid to owners of the Corporation	(849,101)	(884,481)
Acquisition of additional interests in subsidiaries	(153)	-
Changes in non-controlling interests	9,786	38,985
Net cash used in financing activities	(1,278,070)	(18,953)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	89,146	72,983
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	270,442	(210,071)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	7,353,929	7,564,000
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 7,624,371	$ 7,353,929

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

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Hiwin Technologies Corporation (the "Corporation") was incorporated on October 11, 1989. It manufactures and sells ballscrews, linear guideways, industrial robots, aerospace automation equipment parts, computer numerical control (CNC) milling machines and medical equipment.

The Corporation obtained approval from the Securities and Futures Bureau (SFB) of the Financial Supervisory Commission (FSC) to become a public company on April 16, 1997. The shares of the Corporation have been listed on the Taiwan Stock Exchange (TWSE) since June 26, 2009.

The consolidated financial statements are presented in the Corporation's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation's board of directors on February 26, 2026.

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

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

Amendments to IAS 21 "Lack of Exchangeability"

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

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IAS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

1) The amendments to the application guidance of classification of financial assets

The amendments mainly amend the requirements for the classification of financial assets, including:

a) If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if,

In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and
In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature.

b) To clarify that a financial asset has non-recourse features if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

c) To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches.

2) The amendments to the application guidance of derecognition of financial liabilities

The amendments mainly stipulate that a financial liability is derecognized on the settlement date. However, when settling a financial liability in cash using an electronic payment system, the Group can choose to derecognize the financial liability before the settlement date if, and only if, the Entity has initiated a payment instruction that resulted in:

The Entity having no practical ability to withdraw, stop or cancel the payment instruction;
The Entity having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and
The settlement risk associated with the electronic payment system being insignificant.

The Group shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of above standards and interpretations will not have a material impact on the Group’s financial position and financial performance.

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

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

a) To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

b) The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

c) Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.

d) Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

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

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
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Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

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

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

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

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and

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3) Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Group and the entities controlled by the Corporation (i.e., its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Corporation.

See Note 11, Tables 7 and 8 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

e. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.

Goodwill is measured as the excess of the sum of the consideration transferred and the fair value of the acquirer's previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after re-assessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held interests in the acquiree, the excess is recognized immediately in profit or loss as a bargain purchase gain.

f. Foreign currencies

In preparing the financial statements of the entities in the Group, transactions in currencies other than the entity's functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of transaction.

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For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations (including the subsidiaries or associates in other countries that use currencies which are different from the Corporation) are translated into the New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income and attributed to the owners of the Corporation and non-controlling interests as appropriate.

g. Inventories

Inventories consist of raw materials, supplies, work-in-process, finished goods and merchandise and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date.

h. Investment in associates

An associate is an entity over which the Group has significant influence and which is neither a subsidiary nor an interest in a joint venture.

The Group uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate is initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group's share of equity of associates.

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Group subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Group's ownership interest is reduced due to its additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Group's share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group's net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

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The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When an entity in the Group transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group.

i. Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Samples produced when testing whether an item of property, plant and equipment is functioning properly before that asset reaches its intended use are measured at the lower of cost or net realizable value, and any proceeds from selling and the cost are recognized in profit or loss. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Goodwill

Goodwill arising from the acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized on goodwill is not reversed in subsequent periods.

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If goodwill has been allocated to a cash-generating unit and the entity disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal, and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

k. Intangible assets

1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

2) Internally generated intangible assets - research and development expenditures

Expenditures on research activities are recognized as expenses in the period in which they are incurred.

An internally generated intangible asset arising from the development phase of an internal project is recognized if, and only if, all of the following have been demonstrated:

a) The technical feasibility of completing the intangible asset so that it will be available for use or sale;
b) The intention to complete the intangible asset and use or sell it;
c) The ability to use or sell the intangible asset;
d) How the intangible asset will generate probable future economic benefits;
e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
f) The ability to measure reliably the expenditures attributable to the intangible asset during its development.

The amount initially recognized for internally generated intangible assets is the sum of the expenditures incurred from the date when such an intangible asset first meets the recognition criteria listed above. Subsequent to initial recognition, such intangible assets are measured on the same basis as intangible assets that are acquired separately.

3) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

Impairment of property, plant and equipment, right-of-use assets and intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets (excluding goodwill) to determine whether there is any indication that those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

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The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount (less amortization and depreciation) that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

m. Financial instruments

Financial assets and financial liabilities are recognized when an entity in the Group becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

i. Financial asset at FVTPL

A financial asset is classified as at FVTPL when such a financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. Fair value is determined in the manner described in Note 27.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable, trade receivables, other receivables and refundable deposits at amortized cost, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such financial asset, except for:

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial asset; and
ii) Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).

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The Group always recognizes lifetime expected credit loss (ECL) for trade receivables. For all other financial instruments, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECL represents the expected credit loss that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Group determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Group):

i. Internal or external information shows that the debtor is unlikely to pay its creditors.

ii. When a financial asset is more than 360 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The Group recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

c) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

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

Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Corporation's own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Corporation's own equity instruments.

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3) Financial liabilities

a) Subsequent measurement

Except the following situations, all the financial liabilities are measured at amortized cost using the effective interest method:

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are held for trading.

Financial liabilities held for trading are stated at fair value, with any gain or loss arising on remeasurement recognized in profit or loss. The fair value is determined in the manner described in Note 27.

b) Derecognition of financial liabilities

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

4) Derivative financial instruments

The Group enters into foreign exchange forward contracts to manage its exposure to foreign exchange rate risks.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately. When the fair value of derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instrument is negative, the derivative is recognized as a financial liability.

n. Provision

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Provisions for the expected cost of warranty obligations to assure that products comply with agreed-upon specifications are recognized on the date of sale of the relevant products at the best estimate of the expenditure required to settle the Group’s obligation.

In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year.

o. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations, and recognizes revenue when performance obligations are satisfied.

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For contracts where the period between the date on which the Group transfers a promised good or service to a customer and the date on which the customer pays for that good or service is one year or less, the Group does not adjust the promised amount of consideration for the effects of a significant financing component.

Sales of goods are recognized as revenue when the goods are delivered to the customer’s specific location/the goods are shipped/the goods are picked up because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivable is recognized concurrently. The transaction price received is recognized as a contract liability until the goods have been delivered to the customer.

The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

p. Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

1) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted

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for as a separate lease, the Group accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the consolidated balance sheets.

q. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

r. Government grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.

The benefit of a government loan received at a below-market rate of interest is treated as a government grant measured as the difference between the proceeds received and the fair value of the loan based on prevailing market interest rates.

s. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost and net interest on the net defined benefit liabilities are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represent the actual deficit in the Group's defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

25 -

t. Share-based payment arrangements

The fair value at the grant date of the employee share options is expensed on a straight-line basis over the vesting period, based on the Corporation’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options; The expense is recognized in full at the grant date if the grants are vested immediately. The grant date of issued ordinary shares for cash which are reserved for employees is the date on which the number of shares that the employees purchase is confirmed.

At the end of each reporting period, the Corporation revises its estimate of the number of employee share options that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - employee share options.

u. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (refundable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is calculated on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

26 -

The Group has applied the exception from the recognition and disclosure of deferred tax assets and liabilities relating to Pillar Two income taxes. Accordingly, the Group neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

3) Current and deferred taxes for the year

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity respectively.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

When the Group develops material accounting estimates, the Group considers the possible impact of US reciprocal tariffs. The estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Group's management, the accounting policies, estimates and assumptions adopted by the Group have not been subject to material accounting judgements, estimates and assumptions uncertainty.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 1,470	$ 2,804
Checking accounts and demand deposits	5,201,971	5,147,435
Pledged time deposits	609	799
Cash equivalents
Time deposits (investments with original maturities of 3 months or less)	2,420,930	2,203,690
	7,624,980	7,354,728
Less: Pledged time deposits (classified as other current assets)	(609)	(799)
	$ 7,624,371	$ 7,353,929
Rate of interest per annum (%)
Cash in bank	0.00-3.43	0.00-4.30
Time deposits (investments with original maturities of 3 months or less)	0.10-3.60	0.45-4.62
Pledged time deposits (Note 29)	0.28-1.68	0.05-3.00

28 -

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

The Group’s financial assets and liabilities mandatorily designated as at fair value through profit or loss (FVTPL) are all generated from its derivative financial products of foreign exchange forward contracts. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting are as follows:

	Currency	Maturity Date	Notional Amount (In Thousands)
December 31, 2025
Sell	EUR/NTD	2026.1.23-2026.3.31	EUR6,200/NTD227,466
Sell	CNY/NTD	2026.1.22-2026.3.31	CNY135,000/NTD595,107
Sell	USD/NTD	2026.1.30-2026.3.31	USD4,300/NTD133,912
December 31, 2024
Sell	EUR/NTD	2025.1.22-2025.3.14	EUR3,100/NTD105,595
Sell	CNY/NTD	2025.1.21-2025.3.28	CNY170,000/NTD756,798
Sell	USD/NTD	2025.1.21-2025.2.27	USD5,500/NTD178,003

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

	December 31
	2025	2024
Name of Investee Company
Domestic listed ordinary shares
Hiwin Mikrosystem Corp. (Hiwin Mikrosystem)	$ 981,145	$ 1,457,429
Ever Fortune. AI Co., Ltd. (Ever Fortune)	140,200	144,000
Domestic unlisted ordinary shares
Taichung International Country Club	-	-
Sunengine Corporation Ltd. (Sunengine)	-	-
King Kong Iron Work Ltd.	-	-
	$ 1,121,345	$ 1,601,429

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

In April and August 2024, the Group sold its partial shares in Taichung International Country Club and Sunengine at a fair value of $4,250 thousand and $7,058 thousand, respectively, and its related unrealized valuation gain (loss) of $2,150 thousand and $(42,195) thousand were transferred from other equity to retained earnings.

NOTES RECEIVABLE AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable
At amortized cost
Gross carrying amount	$ 531,018	$ 570,556
Less: Allowance for impairment loss	(32)	(49)
	$ 530,986	$ 570,507
Trade receivables
At amortized cost
Gross carrying amount	$ 3,912,626	$ 3,915,815
Less: Allowance for impairment loss	(25,333)	(18,929)
	$ 3,887,293	$ 3,896,886

a. Notes receivable

The Group's aging of notes receivable is as follows:

	December 31
	2025	2024
Not past due	$ 531,018	$ 570,556
Past due	-	-
	$ 531,018	$ 570,556

The above aging schedule was based on the past due days.

b. Trade receivables

The Group determines the credit period of sales of goods based on the counterparty's credit rating, location and transaction terms.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.

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

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

The following table details the loss allowance of trade receivables:

	Not Past Due	1 to 120 Days	121 to 360 Days	Over 360 Days	Total
December 31, 2025
Gross carrying amount	$ 3,737,055	$ 135,747	$ 24,274	$ 15,550	$ 3,912,626
Loss allowance (Lifetime ECLs)	(328)	(5,073)	(4,382)	(15,550)	(25,333)
Amortized cost	$ 3,736,727	$ 130,674	$ 19,892	$ -	$ 3,887,293
December 31, 2024
Gross carrying amount	$ 3,762,956	$ 135,633	$ 8,646	$ 8,580	$ 3,915,815
Loss allowance (Lifetime ECLs)	(1,788)	(3,595)	(4,966)	(8,580)	(18,929)
Amortized cost	$ 3,761,168	$ 132,038	$ 3,680	$ -	$ 3,896,886

The movements of the loss allowance were as follows (other receivables are classified as other non-current assets):

	For the Year Ended December 31, 2025
	Notes Receivable	Trade Receivables	Other Receivables
Balance on January 1, 2025	$ 49	$ 18,929	$ 27,395
Amounts recovered	-	2,198	-
Net remeasurement of loss allowance	(17)	10,938	-
Amounts written off	-	(8,210)	-
Foreign exchange gains and losses	-	1,478	-
Balance on December 31, 2025	$ 32	$ 25,333	$ 27,395
	For the Year Ended December 31, 2024
	Notes Receivable	Trade Receivables	Other Receivables
Balance on January 1, 2024	$ 22	$ 9,629	$ 27,395
Acquisitions through business combinations	-	3,043	-
Net remeasurement of loss allowance	27	6,966	-
Amounts written off	-	(581)	-
Foreign exchange gains and losses	-	(128)	-
Balance on December 31, 2024	$ 49	$ 18,929	$ 27,395

31 -

10. INVENTORIES

	December 31
	2025	2024
Merchandise	$ 1,574	$ 1,209
Finished goods	3,160,683	3,275,288
Work in process	1,534,707	1,523,281
Raw materials and supplies	2,142,880	2,233,634
Inventory in transit	253,952	373,923
	$ 7,093,796	$ 7,407,335

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 was $17,284,790 thousand and $17,173,869 thousand, respectively.

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 included inventory write-downs (reversal) of $(64,435) thousand and $207,373 thousand, respectively, and unallocated fixed overhead of $351,432 thousand and $340,091 thousand, respectively. Inventory write-downs were reversed as a result of inventory being consumed.

11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Entities included in the Group’s consolidated financial statements were as follows:

Investor	Investee	Main Business	% of Ownership
			2025	2024
The Corporation	Hiwin Corporation, U.S.A. (“Hiwin USA”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
	Hiwin Corporation, Japan (“Hiwin Japan”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
	Hiwin GmbH (“Hiwin Germany”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
	Eterbright Solar Corporation (“Eterbright”)	Research, development, design, manufacture and sale of solar cell, electronic components, electric power supply, electric transmission and power distribution machinery products	89	89
	Hiwin Singapore Pte. Ltd. (“Hiwin Singapore”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
	Hiwin Corporation (“Hiwin Korea”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
	Hiwin Technologies (China) Corporation (“Hiwin China”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
	Matrix Precision Co., Ltd. (“Matrix Precision”) (Note 25)	Research, development, production, manufacture and sale of gear cutting tools and machinery	67	61
	Hiwin Healthcare Corp.	Sale of medical robots	100	100
	Hiwin S.R.L. (“Hiwin Italy”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
				(Continued)

Investor	Investee	Main Business	% of Ownership
			December 31
			2025	2024
The Corporation	Matrix Machine Tool (Coventry) Limited (“Matrix England”)	Design, integrated application, research, development, manufacture and sale of thread forming machinery	100	100
	Hiwin (Schweiz) GmbH (“Hiwin Schweiz”)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	81	81
Hiwin Germany	Hiwin Schweiz	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	19	19
	Hiwin S.R.O. (“Hiwin Czech”) (Note 24)	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
	Hiwin SAS (“Hiwin France”)	Sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	100
Matrix Precision	Suzhou Matrix Precision Machinery Co., Ltd. (“Suzhou Matrix”)	Sale of gear cutting tools and machinery	100	100
Hiwin Czech	Hiwin Bulgaria Eood (“Hiwin Bulgaria”)	Sale of aerospace parts, ballscrews, linear guideways and industrial robots	-	100
Hiwin Schweiz	Hiwin Bulgaria Eood (“Hiwin Bulgaria”)	Sale of aerospace parts, ballscrews, linear guideways and industrial robots	100	-
				(Concluded)

In November 2024, Hiwin Germany acquired a $68\%$ interest in Hiwin Czech for $256,050 thousand. Combined with its existing $32\%$ equity, Hiwin Germany now holds $100\%$ equity interest in Hiwin Czech. Consequently, Hiwin Czech became a sub-subsidiary and its financial statements are consolidated into those of Hiwin Germany.

Hiwin Germany established Hiwin France with an investment amounting to $17,070 thousand in December 2024.

Due to management needs, the Group underwent an organizational restructuring. As a result, in January 2025, Hiwin Schweiz acquired $100\%$ equity interest in Hiwin Bulgaria from Hiwin Czech.

The resolution to liquidate and dissolve Eterbright was approved during the extraordinary meeting of shareholders on November 27, 2023. The base date for dissolution was set as February 29, 2024 and this was approved by the Ministry of Economic Affairs on March 20, 2024. As of December 31, 2025, the liquidation has not yet been completed.

b. Details of subsidiaries that have material non-controlling interests

Name of Subsidiary	Proportion of Ownership and Voting Rights Held by Non-controlling Interests
	December 31
	2025	2024
Eterbright	11%	11%
Matrix Precision (Note 25)	33%	39%

See Tables 7 and 8 for the information on places of incorporation and principal places of business.

33 -

| Name of Subsidiary | Loss and Comprehensive Loss
Allocated to Non-controlling
Interests | | Accumulated
Non-controlling Interests | |
| --- | --- | --- | --- | --- |
| | For the Year Ended
December 31 | | December 31 | |
| | 2025 | 2024 | 2025 | 2024 |
| Eterbright | $ 417 | $ (339) | $ 61,849 | $ 61,432 |
| Matrix Precision | (114,366) | (105,581) | 66,005 | 83,659 |
| | $ (113,949) | $ (105,920) | $ 127,854 | $ 145,091 |

The summarized financial information below represents amounts before intragroup eliminations.

Eterbright

	December 31
	2025	2024
Current assets	$ 578,750	$ 575,158
Non-current assets	47,798	47,798
Current liabilities	(50,668)	(50,962)
Non-current liabilities	-	-
Equity	$ 575,880	$ 571,994
Equity attributable to:
Owners of Eterbright	$ 514,031	$ 510,562
Non-controlling interests of Eterbright	61,849	61,432
	$ 575,880	$ 571,994
	For the Year Ended December 31
	2025	2024
Revenue	$ -	$ -
Net profit (loss) for the year	$ 3,886	$ (3,154)
Other comprehensive income for the year	-	-
Total comprehensive income (loss) for the year	$ 3,886	$ (3,154)
Profit (loss) and total comprehensive income (loss) attributable to:
Owners of Eterbright	$ 3,469	$ (2,815)
Non-controlling interests of Eterbright	417	(339)
	$ 3,886	$ (3,154)
Net cash inflow (outflow) from:
Operating activities	$ 99,156	$ (20,658)
Investing activities	-	4,633
Financing activities	-	-
Net cash inflow (outflow)	$ 99,156	$ (16,025)

Matrix Precision and Matrix Precision's subsidiaries

	December 31
	2025	2024
Current assets	$ 496,126	$ 507,184
Non-current assets	2,463,962	2,427,904
Current liabilities	(841,692)	(784,483)
Non-current liabilities	(1,902,237)	(1,920,477)
Equity	$ 216,159	$ 230,128
Equity attributable to:
Owners of Matrix Precision	$ 145,669	$ 139,964
Non-controlling interests of Matrix Precision	70,490	90,164
	$ 216,159	$ 230,128
	For the Year Ended December 31
	2025	2024
Revenue	$ 165,257	$ 292,730
Net loss for the year	$ (299,520)	$ (249,703)
Other comprehensive income for the year	5,552	8,247
Total comprehensive loss for the year	$ (293,968)	$ (241,456)
Loss attributable to:
Owners of Matrix Precision	$ (182,249)	$ (141,064)
Non-controlling interests of Matrix Precision	(117,271)	(108,639)
	$ (299,520)	$ (249,703)
Total comprehensive loss attributable to:
Owners of Matrix Precision	$ (178,485)	$ (136,030)
Non-controlling interests of Matrix Precision	(115,483)	(105,426)
	$ (293,968)	$ (241,456)
Net cash inflow (outflow) from:
Operating activities	$ (307,497)	$ (234,992)
Investing activities	(155,175)	(536,004)
Financing activities	420,315	799,294
Net cash inflow (outflow)	$ (42,357)	$ 28,298

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Associates that are not individually material	$ 368,670	$ 305,995
	For the Year Ended December 31
	2025	2024
The Group's share of:
Net profit for the year	$ 22,129	$ 35,421
Other comprehensive income for the year	-	-
Total comprehensive income for the year	$ 22,129	$ 35,421

13. PROPERTY, PLANT AND EQUIPMENT

	For the Year Ended December 31, 2025
	Beginning Balance (After Retrospective Adjustment)	Additions	Disposals	Reclassified Amount	Translation Adjustments	Ending Balance
Cost
Land	$ 5,504,601	$ -	$ -	$ -	$ (5,616)	$ 5,498,985
Buildings and improvements	18,965,873	83,265	-	2,112,274	55,188	21,216,600
Machinery and equipment	13,935,317	414,960	(1,610,257)	998,731	47,824	13,786,575
Transportation equipment	265,989	35,374	(31,721)	6,837	14,663	291,142
Leasehold improvements	65,396	762	-	-	(65)	66,093
Miscellaneous equipment	2,525,704	294,885	(91,488)	124,707	12,383	2,866,191
Construction in progress	1,812,624	796,782	(8,140)	(2,124,512)	20,445	497,199
	43,075,504	$ 1,626,028	$ (1,741,606)	$ 1,118,037	$ 144,822	44,222,785
Accumulated depreciation and impairment
Buildings and improvements	$ 3,569,161	$ 511,088	$ -	$ -	$ 30,649	$ 4,110,898
Machinery and equipment	8,269,954	1,536,568	(1,586,855)	559	27,805	8,248,031
Transportation equipment	156,741	40,281	(28,247)	1,948	8,627	179,350
Leasehold improvements	34,574	6,999	-	-	109	41,682
Miscellaneous equipment	1,595,454	285,782	(82,132)	(1,935)	10,040	1,807,209
	13,625,884	$ 2,380,718	$ (1,697,234)	$ 572	$ 77,230	14,387,170
	$ 29,449,620					$ 29,835,615

For the Year Ended December 31, 2024

	Beginning Balance	Acquisitions through business combinations (Note 24)	Additions	Disposals	Reclassified Amount	Translation Adjustments	Ending Balance
Cost
Land	$ 5,470,749	$ 38,617	$ -	$ -	$ -	$ (4,765)	$ 5,504,601
Buildings and improvements	17,047,036	106,757	52,369	(2,435)	1,690,348	71,798	18,965,873
Machinery and equipment	13,900,296	46,309	227,757	(810,933)	544,178	27,710	13,935,317
Transportation equipment	282,345	-	25,242	(49,589)	7,947	44	265,989
Leasehold improvements	48,138	-	25,038	(6,261)	-	(1,519)	65,396
Miscellaneous equipment	2,330,302	-	262,668	(151,055)	78,699	5,090	2,525,704
Construction in progress	1,311,615	-	2,212,741	-	(1,710,732)	(1,000)	1,812,624
	40,390,481	$ 191,683	$ 2,805,815	$(1,020,273)	$ 610,440	$ 97,358	43,075,504
Accumulated depreciation and impairment
Buildings and improvements	$ 3,065,611	$ 30,464	$ 457,715	$ (2,385)	$ -	$ 17,756	$ 3,569,161
Machinery and equipment	7,433,128	32,687	1,560,410	(767,646)	(2,006)	13,381	8,269,954
Transportation equipment	163,434	-	41,213	(47,291)	-	(615)	156,741
Leasehold improvements	37,361	-	4,501	(6,188)	-	(1,100)	34,574
Miscellaneous equipment	1,476,083	-	256,154	(143,327)	-	6,544	1,595,454
	12,175,617	$ 63,151	$ 2,319,993	$ (966,837)	$ (2,006)	$ 35,966	13,625,884
	$28,214,864						$29,449,620

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings and improvements
Main buildings	8-55 years
Electrical power equipment	5-15 years
Engineering system	5-20 years
Machinery and equipment
Machinery equipment	3-20 years
Inspection equipment	3-20 years
Transportation equipment	2-10 years
Leasehold improvements	2-17 years
Miscellaneous equipment	1-15 years

Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 29.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amounts (Note 29)
Land	$ 350,654	$ 366,900
Buildings	292,196	327,861
Transportation equipment	7,868	13,937
Miscellaneous equipment	2,604	2,182
	$ 653,322	$ 710,880

37 -

	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 102,300	$ 367,587
Depreciation charge for right-of-use assets
Land	$ 19,357	$ 19,633
Buildings	119,804	157,023
Transportation equipment	3,172	3,692
Miscellaneous equipment	603	428
	$ 142,936	$ 180,776

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 99,384	$ 101,258
Non-current	$ 419,523	$ 470,373

Range of discount rate for lease liabilities was as follows:

	December 31
	2025	2024
Land	1.50%-2.02%	1.50%-1.89%
Buildings	0.90%-6.37%	0.90%-5.35%
Transportation equipment	1.23%-2.38%	1.23%-4.10%
Miscellaneous equipment	1.48%-4.69%	1.48%-4.10%

c. Material leasing activities and terms

The Group leases certain transportation and miscellaneous equipment for the use of product manufacturing and marketing with lease terms of 1 to 7 years. These arrangements do not contain renewal or purchase options.

The Group also leases land and buildings for the use of plants and offices with lease terms of 1 to 50 years. The lease contract for land located in the Republic of China specifies that lease payments will be adjusted on the basis of changes in the consumer price index or announced land value prices. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

d. Other lease information

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 10,073	$ 12,884
Expenses relating to low-value asset leases	$ 17,237	$ 16,587
Total cash outflow for leases	$ (174,418)	$ (218,258)

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

15. PREPAYMENTS FOR MACHINERY AND EQUIPMENT

The aging of prepayments for machinery and equipment is as follows:

The Date of Initial Cost Contribution	December 31
	2025	2024
Within 1 year	$ 693,947	$ 658,161
1-2 years	331,278	168,315
2-5 years	103,356	264,766
More than 5 years	99,964	181,353
	$ 1,228,545	$ 1,272,595

In order to maintain key manufacturing technologies, reduce product costs and improve automation of the equipment, the Group designed, developed, and assembled the equipment by itself. The abovementioned prepayments for machinery and equipment include both internally developed and outsourced equipment.

16. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 2,033,445	$ 1,397,394
Rate of interest per annum (%)
Line of credit borrowings	1.29-5.28	0.79-5.69

b. Long-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 29)
Secured loans - Expired from February 2026 to December 2042	$ 7,082,740	$ 7,876,687
Unsecured borrowings
Unsecured loans - Expired from April 2027 to July 2030	606,680	753,409
	7,689,420	8,630,096
Less: Current portion	(977,336)	(1,067,434)
Long-term borrowings	$ 6,712,084	$ 7,562,662
		(Continued)

39 -

	December 31
	2025	2024
Rate of interest per annum (%)
Secured loans	1.32-4.12	1.25-4.12
Unsecured loans	0.90-5.49	0.90-4.68
		(Concluded)

In August 2019, the Corporation received a qualification letter for the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan from the Ministry of Economic Affairs, and therefore received the subsidy for processing fee of long-term borrowings. As of December 31, 2025, $1,002,000 thousand was drawn down for building the plant, the purchase of machinery and equipment and the use of operating capital. The Corporation recognized $22,632 thousand as a government grant, which is the difference between the loan amount obtained at a lower-than-market interest rate and the fair value, which was accounted for as deferred revenue and would be subsequently recognized in profit or loss over the useful life of the asset.

17. OTHER PAYABLES

	December 31
	2025	2024
Payables for salaries and bonuses	$ 751,344	$ 790,428
Payables for annual leave	247,098	205,442
Payables for compensation of employees	115,859	156,559
Payables for purchase of equipment	98,830	165,076
Payables for remuneration of directors	58,120	78,467
Others	467,988	470,078
	$ 1,739,239	$ 1,866,050

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

Hiwin Germany, Hiwin Schweiz, Hiwin Japan, Hiwin Singapore, Hiwin China, Matrix England, Suzhou Matrix, Hiwin Czech, Hiwin France and Hiwin Bulgaria have pension plans which pay for an annuity and certain types of insurance under the local regulations. Hiwin USA has defined contribution pension plans, which are independently administered.

b. Defined benefit plans

The defined benefit plans adopted by the Corporation and Matrix Precision of the Group in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation and Matrix Precision contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is

inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Group has no right to influence the investment policy and strategy. Hiwin Italy and Hiwin Korea also adopted the defined benefit plans in accordance with the local laws.

The amounts included in the consolidated balance sheets in respect of the Group's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 417,744	$ 445,722
Fair value of plan assets	(313,477)	(303,739)
Net defined benefit liabilities	$ 104,267	$ 141,983

Movements in net defined benefit liabilities were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2025	$ 445,722	$ (303,739)	$ 141,983
Service cost
Current service cost	18,790	-	18,790
Net interest expense (income)	8,453	(4,977)	3,476
Recognized in profit or loss	27,243	(4,977)	22,266
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(21,587)	(21,587)
Actuarial gain - changes in financial assumptions	(1,170)	-	(1,170)
Actuarial gain - experience adjustments	(6,402)	-	(6,402)
Recognized in other comprehensive income	(7,572)	(21,587)	(29,159)
Contributions from the employer	-	(30,127)	(30,127)
Benefits paid	(51,235)	46,619	(4,616)
Reclassification	(157)	-	(157)
Exchange differences on foreign plans	3,743	334	4,077
Balance on December 31, 2025	$ 417,744	$ (313,477)	$ 104,267 (Continued)

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2024	$ 423,708	$ (282,872)	$ 140,836
Service cost
Current service cost	10,221	-	10,221
Net interest expense (income)	6,992	(3,566)	3,426
Recognized in profit or loss	17,213	(3,566)	13,647
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(24,053)	(24,053)
Actuarial loss - changes in demographic assumptions	5	-	5
Actuarial gain - changes in financial assumptions	(5,867)	-	(5,867)
Actuarial loss - experience adjustments	16,245	-	16,245
Recognized in other comprehensive income	10,383	(24,053)	(13,670)
Contributions from the employer	-	(22,340)	(22,340)
Benefits paid	(33,859)	29,073	(4,786)
Reclassification	30,194	-	30,194
Exchange differences on foreign plans	(1,917)	19	(1,898)
Balance on December 31, 2024	$ 445,722	$ (303,739)	$ 141,983
			(Concluded)

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rates	1.30%、1.35%、3.96%、5.00%	1.50%、1.60%、3.38%、4.20%
Expected rates of salary increase	0.50%、2.00%、2.00%、3.00%	0.50%、2.00%、3.00%、2.50%

If possible reasonable changes in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
The Corporation
Discount rate
0.25% increase	$ (3,168)	$ (3,682)
0.25% decrease	$ 3,249	$ 3,784
Expected rate of salary increase/decrease
0.25% increase	$ 3,212	$ 3,750
0.25% decrease	$ (3,148)	$ (3,667)
Matrix Precision
Discount rate
0.25% increase	$ (619)	$ (682)
0.25% decrease	$ 648	$ 711
Expected rate of salary increase/decrease
0.25% increase	$ 675	$ 738
0.25% decrease	$ (578)	$ (640)
Hiwin Italy
Discount rate
0.25% increase	$ (47,008)	$ (51,103)
0.25% decrease	$ 48,501	$ 52,822
Hiwin Korea
Discount rate
0.25% increase	$ (21,758)	$ (25,279)
0.25% decrease	$ 22,831	$ 26,657
Expected rate of salary increase/decrease
0.25% increase	$ 22,844	$ 26,663
0.25% decrease	$ (21,740)	$ (25,263)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plan for the next year	$ 29,831	$ 34,128
Average duration of the defined benefit obligation	8.1 years, 9.8 years, 10.2 years, 10.1 years	9.0 years, 9.9 years, 10.6 years, 10.6 years

19. EQUITY

a. Ordinary shares

	December 31
	2025	2024
Number of shares authorized (in thousands)	1,000,000	1,000,000
Shares authorized	$10,000,000	$10,000,000
Number of shares issued and fully paid (in thousands)	353,792	353,792
Shares issued	$3,537,923	$3,537,923

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note)
Issuance of ordinary shares	$ 7,469,101	$ 7,469,101
Invalid employee share options	10,634	10,634
	$ 7,479,735	$ 7,479,735

Note: Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, until the accumulated legal reserve equals the Corporation’s paid-in capital, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit shall be distributed as dividends, where the dividends distributed should not exceed 6% of the remaining profit. The Corporation’s profit may be distributed in the form of cash or share dividends; however, the ratio of share dividends distributed shall not exceed two-thirds of the Corporation’s total amount of dividends and bonuses distributed to shareholders. A distribution plan is also to be made by the board of directors and should be resolved in the shareholder’s meeting. The dividends could be distributed in whole or in part by cash after the resolution has been passed by more than half of the directors present at the meeting of the board of directors, in which at least two-thirds of the total number of directors should be present. In addition, a report of such distribution shall be submitted to the shareholders’ meeting. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 21-c.

The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

43 -

The appropriations of earnings of the Corporation for 2024 and 2023 were as follows:

	Appropriation of Earnings		Dividends Per Share (NT$)
	For the Year Ended December 31		For the Year Ended December 31
	2024	2023	2024	2023
Legal reserve	$ 184,515	$ 207,495
Cash dividends	849,101	884,481	$ 2.4	$ 2.5

The appropriations of cash dividends for 2024 and 2023 had been approved by the Corporation's board of directors on February 26, 2025 and February 27, 2024, respectively; the other appropriations of earnings for 2024 and 2023 had been approved by the shareholders in their meetings on May 28, 2025 and May 31, 2024, respectively.

The appropriation of earnings for 2025, which was proposed by the Corporation's board of directors on February 26, 2026 was as follows:

	Appropriation of Earnings	Dividends Per Share (NT$)
Legal reserve	$ 146,290
Cash dividends	707,584	$ 2.0

The above-mentioned cash dividends were approved by the Corporation's board of directors for distribution, and the other appropriation of earnings is subject to the resolution of the shareholders in their meeting to be held on May 27, 2026.

20. REVENUE

		For the Year Ended December 31
		2025	2024
Revenue from contracts with customers
Revenue from the sale of goods		$24,262,638	$24,391,684
a. Contract balances
	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable and accounts receivable (Note 9)	$ 4,418,279	$ 4,467,393	$ 3,552,752
Contract liabilities - current Sale of goods	$ 54,528	$ 139,507	$ 137,391

b. Disaggregation of revenue

	For the Year Ended December 31
	2025	2024
Linear guideways	$ 14,951,829	$ 15,496,851
Ballscrews	4,886,269	4,842,602
Others	4,424,540	4,052,231
	$24,262,638	$24,391,684

21. NET PROFIT FROM CONTINUING OPERATIONS

a. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 204,668	$ 165,796
Interest on lease liabilities	10,600	12,434
	$ 215,268	$ 178,230

Information about capitalized interest is as follows:

	For the Year Ended December 31
	2025	2024
Capitalized interest	$ 12,124	$ 49,754
Capitalization rates (%)	1.38-2.48	1.27-2.33

b. Employee benefits expense, depreciation and amortization expenses

	Operating Costs	Operating Expenses	Non-business – Other Expenses	Total
For the Year Ended December 31, 2025
Short-term employee benefits	$3,741,321	$2,935,709	$ -	$6,677,030
Post-employment benefits
Defined contribution plans	125,155	82,754	-	207,909
Defined benefit plans (Note 18)	8,666	13,600	-	22,266
Other employee benefits	169,622	139,790	-	309,412
Depreciation expenses	1,885,961	416,352	308	2,302,621
Amortization expenses	9,269	46,039	-	55,308
				(Continued)

46 -

	Operating Costs	Operating Expenses	Non-business – Other Expenses	Total
For the Year Ended December 31, 2024
Short-term employee benefits	$3,709,383	$2,805,588	$ -	$6,514,971
Post-employment benefits
Defined contribution plans	121,407	80,893	-	202,300
Defined benefit plans (Note 18)	6,368	7,279	-	13,647
Other employee benefits	165,094	117,532	-	282,626
Depreciation expenses	1,881,013	391,213	244	2,272,470
Amortization expenses	6,357	55,887	-	62,244
				(Concluded)

c. Compensation of employees and remuneration of directors

In accordance with the Corporation’s Articles of Incorporation, the Corporation is required to accrue employees compensation and directors’ remuneration at rates of no less than 1% and no more than 4%, respectively, of net profit before income tax, employees compensation and directors’ remuneration. Pursuant to the amendments to the Securities and Exchange Act in August 2024, revisions to the Articles had been approved in the 2025 shareholders' meeting. The Articles' revisions stipulate that no less than 1% of net profit before income tax, employees compensation and directors' remuneration shall be allocated, of which no less than 0.3% of the employees compensation is to be distributed to non-executive employees. The compensation of employees and remuneration of directors for the years ended December 31, 2025 and 2024 which have been approved by the Corporation’s board of directors on February 26, 2026 and February 26, 2025, respectively, were as follows:

Cash	For the Year Ended December 31
	2025		2024
	Accrual rate	Amount	Accrual rate	Amount
Compensation of employees	6.0%	$ 115,859	6.2%	$ 156,559
Remuneration of directors	3.0%	57,930	3.1%	78,279

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

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

Information on the compensation of employees and remuneration of directors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

22. INCOME TAXES

a. Major components of income tax expense recognized in profit or loss

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 330,845	$ 498,478
Income tax on unappropriated earnings	9,343	8,472
Adjustments for prior years	(41,473)	(66,480)
Deferred tax
In respect of the current year	55,250	(53,653)
Income tax expense recognized in profit or loss	$ 353,965	$ 386,817

A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Income tax expense calculated at the statutory rate	$ 432,213	$ 498,595
Non-deductible expenses in determining taxable income	18,307	416
Tax-exempt income	-	(11,730)
Others	(1,512)	(1,602)
Income tax on unappropriated earnings	45,363	49,149
Loss carryforwards used	1,365	-
Investment tax credits used	(131,303)	(125,632)
Current tax	364,433	409,196
Unrecognized deductible temporary differences and loss carryforwards	31,005	44,101
Adjustments for prior years’ tax	(41,473)	(66,480)
Income tax expense recognized in profit or loss	$ 353,965	$ 386,817

The tax rate applicable to companies subject to the Income Tax Act in the ROC is 20%; the tax rate applicable to subsidiaries in China is 25%. Tax rates used by other entities in the Group operating in other jurisdictions are based on the tax laws in those jurisdictions.

Hiwin Japan, Hiwin Germany, Hiwin Korea, Hiwin Italy, Matrix England, Hiwin Schweiz, Hiwin Czech, Hiwin France, Hiwin Bulgaria and Hiwin Singapore were incorporated in Japan, Germany, Korea, Italy, United Kingdom, Switzerland, Czech Republic, France, Bulgaria and Singapore, respectively. The Pillar Two income tax legislation of the aforementioned regions has been in effect. Under the legislation, these subsidiaries will be required to pay, or the jurisdiction of the ultimate parent entity will obtain the primary taxing right to impose, in 2025, a top-up tax on the profits of subsidiaries that are subject to an effective tax rate of less than 15 percent. Nevertheless, among the aforementioned jurisdictions where the Pillar Two rules has been in effect, except for Hiwin Korea, Hiwin Schweiz and Hiwin Czech, lawfully, other subsidiaries complied with the transitional safe harbor provision.

The Group is continuing to assess the impact of the Pillar Two income tax legislation on its future financial performance.

b. Income tax expense in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year:
Translation of foreign operations	$ 67,787	$ 41,337
Remeasurement of defined benefit plans	3,133	1,290
	$ 70,920	$ 42,627

c. The movements of the deferred tax assets and liabilities

	For the Year Ended December 31, 2025
	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized intercompany profit	$ 200,230	$ (39,368)	$ -	$ 160,862
Allowance for inventory devaluation	148,577	14,444	-	163,021
Payables for annual leave	30,605	6,681	-	37,286
Exchange differences on foreign operations	28,816	-	(28,816)	-
Deferred expenses	19,507	(178)	-	19,329
Defined benefit obligation	19,177	-	(3,133)	16,044
Provisions	3,778	(203)	-	3,575
Impairment loss on financial assets	2,895	-	-	2,895
Allowance for impairment loss	1,371	756	-	2,127
Financial liabilities at FVTPL	1,062	1,825	-	2,887
Others	4,781	1,982	-	6,763
	$ 460,799	$ (14,061)	$ (31,949)	$ 414,789
Deferred tax liabilities
Temporary differences
Unappropriated earnings of subsidiaries	$ 758,836	$ 24,947	$ -	$ 783,783
Unrealized gain on foreign currency exchange	3,382	23,559	-	26,941
Exchange differences on foreign operations	-	-	38,971	38,971
Others	60,530	(7,317)	-	53,213
	$ 822,748	$ 41,189	$ 38,971	$ 902,908

For the Year Ended December 31, 2024

	Opening Balance	Acquisitions through business combinations	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized intercompany profit	$ 209,601	$ -	$ (9,371)	$ -	$ 200,230
Allowance for inventory devaluation	122,560	-	26,017	-	148,577
Payables for annual leave	27,281	-	3,324	-	30,605
Exchange differences on foreign operations	70,153	-	-	(41,337)	28,816
Deferred expenses	16,796	-	2,711	-	19,507
Defined benefit obligation	20,467	-	-	(1,290)	19,177
Provisions	3,567	-	211	-	3,778
Impairment loss on financial assets	4,071	-	(1,176)	-	2,895
Allowance for impairment loss	1,010	-	361	-	1,371
Financial liabilities at FVTPL	-	-	1,062	-	1,062
Unrealized loss on foreign currency exchange	12,125	-	(12,125)	-	-
Others	3,606	-	1,175	-	4,781
	$ 491,237	$ -	$ 12,189	$ (42,627)	$ 460,799
Deferred tax liabilities
Temporary differences
Unappropriated earnings of subsidiaries	$ 796,830	$ -	$ (37,994)	$ -	$ 758,836
Unrealized gain on foreign currency exchange	-	-	3,382	-	3,382
Financial assets at FVTPL	1,948	-	(1,948)	-	-
Intangible assets	1,617	-	(1,617)	-	-
Others	46,478	17,339	(3,287)	-	60,530
	$ 846,873	$ 17,339	$ (41,464)	$ -	$ 822,748

d. Deductible temporary differences and unused loss carryforwards for which no deferred tax assets have been recognized in the consolidated balance sheets

	December 31
	2025	2024
Loss carryforwards	$ 9,629,120	$ 9,497,332
Investment loss	3,871,932	3,875,400
Deductible temporary difference	105,647	107,386
	$13,606,699	$13,480,118

e. Information about unused loss carryforwards

Loss carryforwards as of December 31, 2025 comprised:

Investee	Unused Amount	Expiry Year
Eterbright	$ 6,168,925	2026-2034
Matrix Precision	2,152,079	2026-2035
Hiwin Japan	495,436	2026-2035
Hiwin Korea	330,180	2026-2035
Matrix England	482,500	no limit
	$ 9,629,120

f. Income tax assessments

The tax returns of the Corporation, Eterbright and Matrix Precision through 2023 have been assessed by the tax authorities.

EARNINGS PER SHARE

	Net Profit Attributable to Owners of the Corporation	Number of Shares (In Thousands)	Earnings Per Share (NT$)
For the Year Ended December 31, 2025
Basic earnings per share
Profit for the year attributable to owners of the Corporation	$ 1,525,866	353,792	$ 4.31
Effect of potentially dilutive ordinary shares
Compensation of employees	-	667
Diluted earnings per share
Profit for the year attributable to owners of the Corporation plus effect of potentially dilutive ordinary shares	$ 1,525,866	354,459	$ 4.30 (Continued)

51 -

For the Year Ended December 31, 2024

	Net Profit Attributable to Owners of the Corporation	Number of Shares (In Thousands)	Earnings Per Share (NT$)
Basic earnings per share
Profit for the year attributable to owners of the Corporation	$ 1,971,948	353,792	$ 5.57
Effect of potentially dilutive ordinary shares
Compensation of employees	-	576
Diluted earnings per share
Profit for the year attributable to owners of the Corporation plus effect of potentially dilutive ordinary shares	$ 1,971,948	354,368	$ 5.56 (Concluded)

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

24. BUSINESS COMBINATIONS

a. Subsidiaries acquired

Subsidiary	Principal Activity	Date of Acquisition	Proportion of Voting Equity Interests Acquired (%)	Consideration Transferred (Cash)
Hiwin Czech	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	November 27, 2024	68	$ 256,050

The Group acquired the equity of Hiwin Czech in order to expand the development in the field of drive control, enhance its competitive advantage and increase the scale of operations.

b. Assets acquired and liabilities assumed at the date of acquisition

Current assets
Cash and cash equivalents	$ 115,357
Trade receivables	69,084
Inventories	88,000
Other current assets	6,556
Non-current assets
Property, plant and equipment	128,532
Other non-current assets	374
	(Continued)

Current liabilities
Trade payables and other payables $ (32,747)
Other current liabilities (17,489)

Non-current liabilities
Deferred tax liabilities (17,339)

$ 340,328
(Concluded)

c. Goodwill recognized on acquisitions

Consideration transferred $ 256,050
Plus: The originally interests held by the Group at fair value on the date of acquisition 119,490
Less: Fair value of identifiable net assets acquired (340,328)

Goodwill recognized on acquisitions $ 35,212

Before the acquisition date, the carrying amount of equity of Hiwin Czech held by the Group was $87,267 thousand. The equity originally held by the Group is then re-evaluated, with its fair value being $119,490 thousand on the acquisition date, the Group recognized gain on disposal of investments amounted to $32,223 thousand.

d. Net cash outflow on the acquisition of subsidiaries

Considerations paid in cash $ 256,050
Less: Cash balances acquired (115,357)

$ 140,693

e. As of December 31, 2025, the Group completed the identification of the difference between the cost of the investment and the Group’s share of the net fair value of the identifiable assets and liabilities of Hiwin Czech, and retrospectively adjusted the consolidated financial statements accordingly. The adjustments to the consolidated balance sheet as of December 31, 2024 were as follows:

	After Retrospective Adjustment	Before Retrospective Adjustment
Consolidated balance sheets
December 31, 2024
Property, plant and equipment	$29,449,620	$29,367,053
Goodwill	$291,375	$356,603
Deferred tax liabilities	$822,748	$805,409

52 -

53 -

25. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In July and December 2025, the Corporation acquired an additional equity interest and subscribed for additional new shares of Matrix Precision at a percentage different from its existing ownership percentage, thereby increasing its continuing interest from 60.82% to 67.39%, and recognized a decrease of $87,079 thousand in retained earnings.

On March 31 and December 31, 2024, the Corporation subscribed for additional new shares of Matrix Precision at a percentage different from its existing ownership percentage, thereby increasing its continuing interest from 50% to 61%, and recognized a decrease of $95,725 thousand in retained earnings.

The above transactions were accounted for as equity transactions, since the Corporation did not cease to have control over the subsidiary.

26. CAPITAL MANAGEMENT

To support the needs for expansion and upgrade of its plant and equipment, the Group has to maintain an appropriate amount of capital. Therefore, the Group manages its capital to ensure it has the necessary financial resources and operating plan to support the required operating funds, capital expenditures, research and development fees, debt repayment and dividend payments in the next 12 months to achieve an overall balanced capital structure.

Key management personnel of the Group review the capital structure periodically. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders and the amount of new debt issued or existing debt redeemed.

27. FINANCIAL INSTRUMENTS

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

1) Fair value hierarchy

The Group’s financial assets and liabilities at FVTPL are measured at fair value using Level 2 inputs, and the financial assets at FVTOCI are measured at fair value using Level 1 inputs and Level 3 inputs.

2) Valuation techniques and inputs applied for the purpose of Level 2 fair value measurement

Financial Instruments	Valuation Techniques and Inputs
Derivatives - foreign currency forward contracts	Discounted cash flow.
	Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

b. Categories of financial instruments

	December 31
	2025	2024
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$ 330	$ 112
Financial assets at amortized cost (1)	12,453,110	12,227,990
Financial assets at FVTOCI
Equity instruments	1,121,345	1,601,429
Financial liabilities
FVTPL
Mandatorily classified as at FVTPL	14,767	5,423
Financial liabilities at amortized cost (2)	13,541,984	13,983,618

1) The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable (including from related parties), trade receivables (including from related parties), other receivable and refundable deposits.

2) The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, notes payable, trade payables (including from related parties), other payables, long-term borrowings (including those due within one year) and refundable deposits.

c. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, lease liabilities and borrowings. The Group’s corporate treasury function provides services to the business, monitors and manages the financial risks relating to the operations of the Group. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

The plans for material treasury activities are reviewed by the audit committee and the board of directors in accordance with procedures required by relevant regulations and internal controls.

1) Market risk

The Group entered into some derivative financial instruments, mainly forward foreign exchange contracts, to manage its exposure to foreign currency risk arising on translation of sales and receivables from the export of precision component to USA, Germany, Japan and China.

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

a) Foreign currency risk

The Group’s operating activities and net investment in foreign operations are denominated in foreign currencies. Consequently, the Group is exposed to foreign currency risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Group utilizes foreign exchange forward contracts to hedge its currency exposure. These instruments help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements.

Since the Group’s net investments in foreign operations are held for strategic purposes, they are not hedged.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities and derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 31.

Sensitivity analysis

The Group was mainly exposed to the USD, EUR, JPY and RMB.

The sensitivity analysis of foreign currency risk used when reporting foreign currency risk internally to key management personnel mainly focuses on foreign currency denominated monetary items at the end of the reporting period. When the NTD had increased by 1% against the relevant foreign currency, the post-tax profit for the years ended December 31, 2025 and 2024 would have decreased by $37,886 thousand and $43,715 thousand, respectively.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates.

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

	December 31
	2025	2024
Fair value interest rate risk
Deposits in bank	$ 2,421,539	$ 2,204,489
Lease liabilities	518,907	571,631
Short-term borrowings	586,175	492,134
Long-term borrowings	293,963	391,206
Cash flow interest rate risk
Deposits in bank	5,033,383	5,034,394
Short-term borrowings	1,447,270	905,260
Long-term borrowings	7,395,457	8,238,890

Sensitivity analysis

For floating rate assets and liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher and all other variables were held constant, the Group’s post-tax profit for the years ended December 31, 2025 and 2024 would have decreased by $30,475 thousand and $32,878 thousand, respectively.

55 -

56 -

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. At the end of the reporting period, the counterparties are all creditworthy organizations; thus, no significant credit risk is expected.

The counterparties of the Group’s trade receivables cover a large number of customers, spread across diverse industries. Ongoing credit evaluation is performed on the financial condition of the counterparties of trade receivables.

The Group’s concentration of credit risk by geographical locations was mainly in Asia, which accounted for 72% and 73% of the total trade receivables as of December 31, 2025 and 2024, respectively.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Group had available unutilized bank loan facilities of $14,671,674 thousand and $14,177,844 thousand, respectively.

The following table details the Group’s remaining contractual obligations for its financial liabilities with agreed repayment periods. The tables below had been drawn up based on the undiscounted contractual maturities of the financial liabilities.

	Less Than 1 Year	1-5 Years	More Than 5 Years
December 31, 2025
Non-derivative financial liabilities
Non-interest bearing	$ 4,989,831	$ -	$ -
Lease liabilities	106,943	291,388	162,595
Fixed interest rate liabilities	719,044	182,462	-
Variable interest rate liabilities	2,459,080	3,548,676	3,590,409
	$ 8,274,898	$ 4,022,526	$ 3,753,004
Derivative financial liabilities
Foreign exchange forward contracts	$ 14,767	$ -	$ -
December 31, 2024
Non-derivative financial liabilities
Non-interest bearing	$ 5,183,675	$ -	$ -
Lease liabilities	105,438	316,552	184,922
Fixed interest rate liabilities	629,633	292,391	-
Variable interest rate liabilities	2,031,264	3,653,818	4,335,423
	$ 7,950,010	$ 4,262,761	$ 4,520,345

57 -

Less Than 1 Year	1-5 Years	More Than 5 Years

December 31, 2024

Derivative financial liabilities
Foreign exchange forward contracts
$ 5,423
$ -

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

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years
December 31, 2025
Lease liabilities	$ 106,943	$ 291,388	$ 107,274	$ 42,312	$ 13,009
Fixed interest rate liabilities	719,044	182,462	-	-	-
Variable interest rate liabilities	2,459,080	3,548,676	2,890,926	546,614	152,869
	$ 3,285,067	$ 4,022,526	$ 2,998,200	$ 588,926	$ 165,878
December 31, 2024
Lease liabilities	$ 105,438	$ 316,552	$ 113,765	$ 51,644	$ 19,513
Fixed interest rate liabilities	629,633	292,391	-	-	-
Variable interest rate liabilities	2,031,264	3,653,818	3,407,068	656,335	272,020
	$ 2,766,335	$ 4,262,761	$ 3,520,833	$ 707,979	$ 291,533

28. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Details of significant transactions between the Group and other related parties are disclosed below.

a. Related party name and categories

Related Party Name	Relationship with the Group
Hiwin Czech	Associate (became sub-subsidiary on November 27, 2024)
Mega-Fabs Motion Systems Ltd. (Mega-Fabs)	Associate
Hiwin Mikrosystem	Other related party
Hiwin Investment and Holding Corporation (Hiwin Investment Corporation)	Other related party
Yong-Yin Investment and Holding Corp. (Yong-Yin Investment Corporation)	Other related party
Hiwin Technologies Foundation in Education (Hiwin Education Foundation)	Other related party
All Horng Gear Industry Co., Ltd.	Other related party
Yung-Tsai Chuo	Key management personnel
Wen-Hen Chuo	Key management personnel

b. Operating transactions

	For the Year Ended December 31
	2025	2024
1) Sales of goods
Other related parties	$ 102,088	$ 74,185
Associates	-	190,088
	$ 102,088	$ 264,273

Due to the differences in product specifications, the selling prices of goods sold to related parties and those sold to third parties are not comparable. The selling price is quoted at cost plus a reasonable margin based on the market and competitor pricing.

	For the Year Ended December 31
	2025	2024
2) Purchases of goods
Other related parties	$ 563,608	$ 560,495
Associates	-	413
	$ 563,608	$ 560,908

The products purchased from related parties and those from third parties are not the same; therefore, their prices are not comparable.

3) Other operating transactions

	For the Year Ended December 31
	2025	2024
Non-operating income - dividend income (classified as other income)
Hiwin Mikrosystem	$ 1,905	$ 953
Non-operating income - other income
Other related parties	$ 1,335	$ 4,986
Non-operating expense - other expenses
Other related parties	$ 50	$ 4,756
Manufacturing and operating expenses
Other related parties	$ 30,935	$ 42,563
Operating expenses - donations
Hiwin Education Foundation	$ 9,000	$ 7,000

59 -

	December 31
	2025	2024
4) Notes receivable
Other related parties	$ 556	$ 1,091
5) Trade receivables
Other related parties	$ 333	$ 810
6) Other receivables (classified as other current assets)
Other related parties	$ 280	$ 577
7) Trade payables
Other related parties	$ 156,410	$ 135,550
8) Other payables
Key management personnel	$ 1,689	$ 1,610
Other related parties	356	6,445
	$ 2,045	$ 8,055
9) Refundable deposits
Other related parties	$ 2,625	$ 1,616

c. Acquisition of property, plant and equipment

	Purchase Price
	For the Year Ended December 31
	2025	2024
Other related parties	$ 3,600	$ 8,199

d. Lease arrangements

Lease arrangements represented the lease prices of the factory. The lease prices were determined in accordance with mutual agreements and were based on the market price of the nearby factories and the lease area. The rental expenses were paid monthly.

	For the Year Ended December 31
	2025	2024
Acquisition of right-of-use assets
Other related parties	$ 40,588	$ 25,895

60 -

	December 31
	2025	2024
Lease liabilities
Other related parties	$ 30,114	$ 13,926
	For the Year Ended December 31
	2025	2024
Finance costs
Other related parties	$ 483	$ 413
e. Endorsements and guarantees
	December 31
Related Party Category	2025	2024
Key management personnel
Amount endorsed	$ 2,151,638	$ 2,475,517
Amount utilized (classified as borrowings)	$ 1,882,230	$ 1,872,545
Other related parties
Amount endorsed	$ -	$ -
Amount utilized (classified as long-term borrowings)	$ -	$ 489,000

Note: The other related parties had been terminated their endorsement and guarantee relationship with Matrix Precision on December 20, 2024, and returned the guarantee promissory note amounted to $489,000 thousand.

f. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 202,521	$ 219,286
Post-employment benefits	1,210	2,021
	$ 203,731	$ 221,307

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

61 -

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets had been pledged or mortgaged as collateral for long-term bank loans and deposits for cooperation in the establishment of education:

	December 31
	2025	2024
Property, plant and equipment	$20,233,808	$17,754,132
Right-of-use assets	142,795	145,775
Pledged deposits (classified as other current assets)	609	799
	$20,377,212	$17,900,706

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. As of December 31, 2025 and 2024, unused letters of credit for purchases of raw materials and machinery equipment amounted to $298,838 thousand and $388,844 thousand, respectively.

b. As of December 31, 2025 and 2024, commitments for acquisition of property, plant and equipment amounted to $1,097,321 thousand and $1,448,767 thousand, respectively.

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

	December 31, 2025			December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 28,915	31.43	$ 908,789	$ 33,047	32.785	$ 1,083,456
EUR	30,357	36.90	1,120,163	34,709	34.14	1,184,966
JPY	1,913,376	0.2008	384,206	2,770,724	0.2099	581,575
RMB	661,996	4.496	2,976,334	754,522	4.478	3,378,751
Non-monetary items
ILS	34,063	9.859	335,841	31,819	8.585	273,166
Financial liabilities
Monetary items
USD	15,445	31.43	485,428	13,174	32.785	431,894
EUR	1,088	36.90	40,140	2,959	34.14	101,034
JPY	524,953	0.2008	105,411	1,046,171	0.2099	219,591
RMB	5,075	4.496	22,818	2,644	4.478	11,838

The Group is mainly exposed to the USD, EUR, JPY and RMB. The following information was aggregated by the functional currencies of the entities in the Group, and the exchange rates between the respective functional currencies and the presentation currency were disclosed. The significant (realized and unrealized) foreign exchange gain (loss) are as follows:

Foreign Currencies	For the Year Ended December 31
	2025		2024
	Exchange Rate	Net Foreign Exchange Gain	Exchange Rate	Net Foreign Exchange Gain
NTD	1 (NTD:NTD)	$ 139,263	1 (NTD:NTD)	$ 236,776

32. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and b. investees:

1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint controlled entities). (Table 3)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)
6) Other: intercompany relationships and significant intercompany transactions. (Table 6)
7) Information on investees. (Table 7)

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 8)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period. (None)
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period. (Tables 4 and 6)
c) The amount of property transactions and the amount of the resultant gains or losses. (None)
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes. (None)

e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds. (None)

f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services. (None)

33. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Group’s reportable segments are linear guideways, ballscrews and others.

a. Segment revenue and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments.

	For the Year Ended December 31
	Segment Revenue		Segment Profit
	2025	2024	2025	2024
Linear guideways	$ 14,951,829	$ 15,496,851	$ 1,336,827	$ 1,663,735
Ballscrews	4,886,269	4,842,602	495,040	458,150
Others	4,424,540	4,052,231	(188,638)	(63,100)
Total from continuing operations	$ 24,262,638	$ 24,391,684	1,643,229	2,058,785
Subsidy revenue			31,449	20,489
Finance costs			(215,268)	(178,230)
Share of profit of associates accounted for using the equity method			22,129	35,421
Interest income			86,772	95,380
Other income			111,044	125,671
Net foreign exchange gain			145,496	187,248
Other expenses			(11,838)	(18,137)
Loss on disposal of property, plant and equipment			(21,640)	(38,643)
Valuation loss on financial assets (liabilities) at FVTPL			(27,280)	(38,353)
Profit before income tax			$ 1,764,093	$ 2,249,631

Segment revenue reported above represents revenue generated from external customers. The intersegment sales are eliminated for the years ended December 31, 2025 and 2024.

Segment profit represents the profit before tax earned by each segment without subsidy revenue, finance costs, share of profit of associates accounted for using the equity method, interest income, other income, net foreign exchange gain, other expenses, loss on disposal of property, plant and equipment, valuation loss on financial assets (liabilities) at FVTPL and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment total assets and liabilities

The Group had not reported segment assets and liabilities information to the chief operating decision maker. Thus, no disclosure is made.

c. Geographical information

The Group’s revenue from continuing operations from external customers and information about its non-current assets by location of assets are detailed below:

| | Revenue from
External Customers | | Non-current Assets | |
| --- | --- | --- | --- | --- |
| | For the Year Ended December 31 | | December 31 | |
| | 2025 | 2024 | 2025 | 2024 |
| Taiwan | $10,574,957 | $11,004,063 | $26,242,014 | $26,019,769 |
| China | 5,098,734 | 5,079,431 | 1,808,870 | 1,919,327 |
| Germany | 3,932,114 | 3,859,779 | 1,302,527 | 1,232,819 |
| USA | 1,247,856 | 1,165,478 | 388,702 | 445,111 |
| Japan | 930,676 | 876,334 | 1,302,025 | 1,408,730 |
| Others | 2,478,301 | 2,406,599 | 1,068,822 | 766,151 |
| | $24,262,638 | $24,391,684 | $32,112,960 | $31,791,907 |

Non-current assets exclude financial instruments, goodwill and deferred tax assets.

d. Information about major customers

	For the Year Ended December 31
	2025		2024
	Amount	%	Amount	%
Customer A	$ 4,274,149	18	$ 4,597,069	19
Customer B	2,455,819	10	2,045,873	8

TABLE 1

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Note 4)	Ending Balance (Note 4)	Actual Amount Borrowed	Interest Rate	Nature of Financing (Note 2)	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 3)
													Item	Value
0	The Corporation	Hiwin Japan	Other receivables from related parties	Yes	$ 62,816	$ -	$ -	2.0654%	1	Sales $531,024	-	$ -	-	$ -	$ 5,601,865	$ 11,203,730

Note 1: The total amount for lending to a single company shall not exceed 15% of the net assets of the Corporation based on its latest parent company only financial statements. For financing provided by the Corporation due to business dealings, other than the aforementioned restrictions, the amount of financing is also limited to the higher of the total purchase or sales amount between the 2 parties within 1 year from the date of financing or in the most recent year based on the principle that business transactions have already occurred between the two parties.

Note 2: The nature of financing is numbered as follows:

A company that has business dealings with the lender.
A company with short-term financing needs.

Note 3: The total amount of the Corporation’s accumulated financing provided should not exceed 30% of the Corporation’s net assets as shown in its latest financial statements.

Note 4: The ending balance has been approved by the board of directors.

TABLE 2

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars and Foreign Currencies)

No.	Endorser/Guarantor	Endorsee/Guaranteed Party		Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/ Guaranteed During the Year (Note 3)	Outstanding Endorsement/ Guarantee at the End of the Year (Notes 3 and 4)	Actual Amount Borrowed (Note 4)	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	The Corporation	Matrix England	Subsidiary	$ 3,734,577	$ 43,050 (GBP 1,000)	$ 42,330 (GBP 1,000)	$ -	$ -	0.1%	$ 13,071,018	Yes	-	-
0	The Corporation	Hiwin Italy	Subsidiary	3,734,577	1,303,171 (EUR 35,801)	1,088,550 (EUR 29,500)	744,007 (EUR 20,163)	-	2.9%	13,071,018	Yes	-	-
0	The Corporation	Hiwin Singapore	Subsidiary	3,734,577	199,230 (USD 6,000)	188,580 (USD 6,000)	101,522 (USD 3,230)	-	0.5%	13,071,018	Yes	-	-
0	The Corporation	Hiwin Korea	Subsidiary	3,734,577	398,460 (USD 12,000)	377,160 (USD 12,000)	330,015 (USD 10,500)	-	1.0%	13,071,018	Yes	-	-
0	The Corporation	Hiwin Japan	Subsidiary	3,734,577	1,546,875 (JPY 6,899,530)	1,354,933 (JPY 6,747,672)	1,274,613 (JPY 6,347,672)	-	3.6%	13,071,018	Yes	-	-
0	The Corporation	Matrix Precision	Subsidiary	3,734,577	1,250,000	1,050,000	585,000	-	2.8%	13,071,018	Yes	-	-

Note 1: The limit on the endorsements/guarantees provided for a single enterprise is 10% of the Corporation's net assets as shown in its most recent financial statements. If approved by the board of directors, the amount of endorsements/guarantees provided by the Corporation for its subsidiaries is not subject to the foregoing limitations; however, it must not exceed 50% of the Corporation's net assets in its most recent financial statements.
Note 2: The aggregate endorsement/guarantee limit is 35% of the Corporation's net assets as shown in its latest financial statements.
Note 3: The ending balance has been approved by the board of directors.
Note 4: The amounts denominated in foreign currencies were translated into the New Taiwan dollar at the exchange rate prevailing at the end of last month.

TABLE 3

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	December 31, 2025
			Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Corporation	Shares
	Hiwin Mikrosystem
Ever Fortune	Other related party	Financial assets at FVTOCI - non-current
Financial assets at FVTOCI - non-current	9,525,676
2,000,000	$ 981,145
140,200	8
2	$ 981,145
140,200

Note: For information on the investments in subsidiaries and associates, see Tables 7 and 8.

67 -

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

TABLE 4

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

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount (Note)	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance (Note)	% to Total
The Corporation	Hiwin China	Subsidiary	Sale	$ (3,777,063)	(22)	O/A 90 days	$ -	-	$ 1,125,433	25%
	Hiwin Germany	Subsidiary	Sale	(1,308,841)	(7)	O/A 90 days	-	-	338,983	7%
	Hiwin Italy	Subsidiary	Sale	(544,995)	(3)	O/A 180 days	-	-	380,721	8%
	Hiwin Japan	Subsidiary	Sale	(518,931)	(3)	O/A 150 days	-	-	275,765	6%
	Hiwin USA	Subsidiary	Sale	(360,502)	(2)	O/A 120 days	-	-	111,018	2%
	Hiwin Korea	Subsidiary	Sale	(228,188)	(1)	O/A 180 days	-	-	7,189	-
	Hiwin Schweiz	Subsidiary	Sale	(169,184)	(1)	O/A 60 days	-	-	21,868	-
	Hiwin Singapore	Subsidiary	Sale	(128,854)	(1)	O/A 120 days	-	-	47,589	1%
Hiwin China	The Corporation	Parent company	Purchase	3,777,063	91	O/A 90 days	-	-	(1,125,433)	(94%)
Hiwin Germany	The Corporation	Parent company	Purchase	1,308,841	71	O/A 90 days	-	-	(338,983)	(76%)
	Hiwin Mikrosystem	Other related party	Purchase	125,869	7	O/A 90 days	-	-	(28,058)	(6%)
Hiwin Italy	The Corporation	Parent company	Purchase	544,995	86	O/A 180 days	-	-	(380,721)	(72%)
Hiwin Japan	The Corporation	Parent company	Purchase	518,931	82	O/A 150 days	-	-	(275,765)	(92%)
Hiwin USA	The Corporation	Parent company	Purchase	360,502	81	O/A 120 days	-	-	(111,018)	(66%)
Hiwin Korea	The Corporation	Parent company	Purchase	228,188	94	O/A 180 days	-	-	(7,189)	(54%)
Hiwin Schweiz	The Corporation	Parent company	Purchase	169,184	66	O/A 60 days	-	-	(21,868)	(46%)
Hiwin Singapore	The Corporation	Parent company	Purchase	128,854	80	O/A 120 days	-	-	(47,589 )	(78%)

Note: Except for Hiwin Mikrosystem, significant intercompany accounts and transactions have been eliminated.

TABLE 5

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

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

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance (Note)	Turnover Rate (Times)	Overdue		Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
The Corporation	Hiwin China	Subsidiary	Trade receivables from related parties	$ 1,125,433	3.81	$ -	-	$ 712,707	$ -
	Hiwin Italy	Subsidiary	Trade receivables from related parties	380,721	1.41	-	-	68,043	-
			Other receivables from related parties	925	-	-	-	-	-
	Hiwin Japan	Subsidiary	Trade receivables from related parties	275,765	1.65	-	-	29,181	-
			Other receivables from related parties	1,161	-	-	-	-	-
	Hiwin Germany	Subsidiary	Trade receivables from related parties	338,983	4.29	-	-	170,477	-
			Other receivables from related parties	5	-	-	-	-	-
	Hiwin USA	Subsidiary	Trade receivables from related parties	111,018	2.90	-	-	31,403	-

Note : Significant intercompany accounts and transactions have been eliminated.

TABLE 6

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Investee Company	Counterparty	Relationship (Note 1)	Transaction Details
				Financial Statement Account	Amount (Note 2)	Payment Terms	% to Total Sales or Assets
0	The Corporation	Hiwin Germany	1	Sales	$ 1,308,841	O/A 90 days	5
			1	Trade receivables	338,983	O/A 90 days	1
		Hiwin Japan	1	Sales	518,931	O/A 150 days	2
			1	Trade receivables	275,765	O/A 150 days	1
		Hiwin China	1	Sales	3,777,063	O/A 90 days	16
			1	Trade receivables	1,125,433	O/A 90 days	2
		Hiwin Italy	1	Sales	544,995	O/A 180 days	2
			1	Trade receivables	380,721	O/A 180 days	1
		Hiwin USA	1	Sales	360,502	O/A 120 days	1
		Hiwin Korea	1	Sales	228,188	O/A 180 days	1
		Hiwin Schweiz	1	Sales	169,184	O/A 60 days	1
		Hiwin Singapore	1	Sales	128,854	O/A 120 days	1

Note 1: Relationship of investee company to counterparty: (1) parent company to subsidiary; (2) subsidiary to parent company.
Note 2: For balance sheet accounts, transactions exceeding $1\%$ of the consolidated total assets should be disclosed; for income statement accounts, transactions exceeding $1\%$ of the consolidated total revenue should be disclosed. The transactions within the Group were eliminated in the consolidated financial statements.
Note 3: Unrealized gains from Hiwin China totaled $177,959 thousand.

TABLE 7

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	As of December 31, 2025	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
The Corporation	Hiwin Germany	Germany	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	$ 224,257	$ 224,257	-	100	$ 2,809,682
Hiwin USA	United States of America	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	353,844	353,844	2,148,000	100	1,188,264	83,777
Hiwin Japan	Japan	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	1,281,417	1,104,902	97,140	100	(38,560)	(158,422)
Mega-Fabs	Israel	Research, manufacture and sale of drivers and controllers	42,444	42,444	240,000	40	368,670	55,322
Eterbright	Taiwan	Research, development, design, manufacture and sale of solar cell, electronic components, electric power supply, electric transmission and power distribution machinery products	6,322,668	6,322,668	505,360,592	89	514,031	3,886
Hiwin Singapore	Singapore	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	117,550	117,550	5,000,000	100	(13,699)	(32,011)
Hiwin Korea	Korea	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	242,707	242,707	1,760,000	100	(214,241)	12,500
Matrix Precision	Taiwan	Research, development, production, manufacture and sale of gear cutting tools and machinery	1,707,055	1,436,688	102,733,163	67	313,637	(299,520)
Hiwin Healthcare Corp.	Samoa	Sale of medical robots	3,108	3,108	100,000	100	2,943	(11)
Hiwin Italy	Italy	Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots	296,580	296,580	-	100	329,698	(17,215)
Matrix England	United Kingdom	Design integrated application, research, development, manufacture and sale of thread forming machinery	812,334	812,334	8,249,500	100	339,590	(50,684)
Hiwin Schweiz	Switzerland	Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots	266,300	266,300	243,000	81	536,081	73,152
Hiwin Germany	Hiwin Czech	Czech Republic	Sale of aerospace parts, ballscrews, linear guideways, and industrial robots	256,154 (EUR 7,502)	256,154 (EUR 7,502)	-	100	425,375 (EUR 11,528)
Hiwin Schweiz	Switzerland	Manufacture and sale of aerospace parts, ballscrews, linear guideways, and industrial robots	3,320 (EUR 72)	3,320 (EUR 72)	57,000	19	47,485	73,152
Hiwin France	France	Sale of aerospace parts, ballscrews, linear guideways, and industrial robots	35,520 (EUR 1,000)	17,070 (EUR 500)	-	100	3,424 (EUR 93)	(31,916)
Hiwin Czech	Hiwin Bulgaria	Bulgaria	Sale of aerospace parts, ballscrews, linear guideways, and industrial robots	-	3,880 (BGN 222)	(Note 4)	(Note 4)	(Note 4)
Hiwin Schweiz	Hiwin Bulgaria	Bulgaria	Sale of aerospace parts, ballscrews, linear guideways, and industrial robots	20,484 (EUR 600)	-	-	100	36,407 (CHF 919)

Note 1: Exempted from disclosure in accordance with regulations.
Note 2: Except for Mega-Fabs, the remaining investee companies are all consolidated entities and the significant intercompany accounts and transactions have been eliminated.
Note 3: For information on investments in mainland China, see Table 8.
Note 4: In January 2025, Hiwin Schweiz acquired 100% equity interest of Hiwin Bulgaria from Hiwin Czech.

TABLE 8

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investments from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025
					Outward	Inward
Hiwin China	Manufacture and sale of aerospace parts, ballscrews, linear guideways and industrial robots	$ 1,498,040 (RMB 300,000)	(Note 1)	$ 1,498,040 (RMB 300,000)	$ -	$ -	$ 1,498,040 (RMB 300,000)	$ 132,845	100	$ 132,853 (Notes 2 and 4)	$ 2,749,192 (Note 4)	$ -
Suzhou Matrix	Sale of gear cutting tools and machinery	36,192 (RMB 8,000)	(Note 1)	36,192 (RMB 8,000)	-	-	36,192 (RMB 8,000)	(9,909)	67	(6,678) (Notes 2 and 4)	1,598 (Note 4)	-
Investor Company	Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2025	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
---	---	---	---
The Corporation	$ 1,498,040 (RMB 300,000)	$ 1,498,040 (RMB 300,000)	(Note 3)
Matrix Precision	$ 36,192 (RMB 8,000)	$ 36,192 (RMB 8,000)	$ 129,696 (Note 3)

Note 1: The investment in mainland China was made directly.
Note 2: The investment gain (loss) is recognized according to the financial statements audited by the Corporation's independent auditors.
Note 3: Calculated in accordance with the "Regulations on Screening and Approval of Investment and Technical Cooperation in Mainland China" issued by the Investment Commission of the Ministry of Economic Affairs, the Corporation has been certified by the Industrial Development Bureau of the Ministry of Economic Affairs as an enterprise that has conformed to the scope of operations of the headquarters; therefore, there is no investment limit. The upper limit on the amount of investments in Matrix Precision is 60% of the net assets of Matrix Precision.
Note 4: Significant intercompany accounts and transactions have been eliminated.

AI assistant

HIWIN — Annual Report 2025

51962_rns_2026-04-23_91c75447-f471-4072-bf86-94462801875e.pdf

Hiwin Technologies Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

15. PREPAYMENTS FOR MACHINERY AND EQUIPMENT

16. BORROWINGS

17. OTHER PAYABLES

18. RETIREMENT BENEFIT PLANS

19. EQUITY

20. REVENUE

21. NET PROFIT FROM CONTINUING OPERATIONS

22. INCOME TAXES

24. BUSINESS COMBINATIONS

25. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

26. CAPITAL MANAGEMENT

27. FINANCIAL INSTRUMENTS

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

28. TRANSACTIONS WITH RELATED PARTIES

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

32. SEPARATELY DISCLOSED ITEMS

33. SEGMENT INFORMATION

a. Segment revenue and results

b. Segment total assets and liabilities

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

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

FOR THE YEAR ENDED DECEMBER 31, 2025

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

HIWIN TECHNOLOGIES CORPORATION AND SUBSIDIARIES

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