Stock Code:6213

ITEQ CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors' Report
For the Years Ended December 31, 2025 and 2024

Address: No. 17, Daluge Rd., Xinpu Township, Hsinchu County 305, Taiwan (R.O.C.)
Telephone: 886-3-588-7888

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

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4
5. Consolidated Balance Sheets	5
6. Consolidated Statements of Comprehensive Income	6
7. Consolidated Statements of Changes in Equity	7
8. Consolidated Statements of Cash Flows	8
9. Notes to the Consolidated Financial Statements
(1) Company history	9
(2) Approval date and procedures of the consolidated financial statements	9
(3) New standards, amendments and interpretations adopted	9~11
(4) Summary of material accounting policies	11~28
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	28
(6) Explanation of significant accounts	28~59
(7) Related-party transactions	60~62
(8) Pledged assets	62
(9) Commitments and contingencies	62
(10) Losses due to major disasters	62
(11) Subsequent events	62
(12) Other	63
(13) Other disclosures
(a) Information on significant transactions	64~66
(b) Information on investees	67
(c) Information on investment in mainland China	68
(14) Segment information	69~70

Representation Letter

The entities that are required to be included in the combined financial statements of ITEQ Corporation as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements." endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, ITEQ Corporation and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: ITEQ Corporation
Chairman: CHEN, CHIN-TSAI
Date: March 6, 2026

KPMG

多侯連素群合作計算方法

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

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

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

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of ITEQ Corporation:

Opinion

We have audited the consolidated financial statements of ITEQ Corporation and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, 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 a summary of material accounting policies.

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 with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“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 of 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 of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In our judgement, the key audit matters we communicated in the auditors' report were as follows:

The accuracy of the timing of revenue recognition

Refer to note 4(o) "Revenue" and note 6(s) to the consolidated financial statements for the disclosure of revenue recognition.

Description of key audit matter:

The sales of products from the Group are subject to the terms and conditions agreed upon in sales contracts with customers, wherein it will affect the timing of revenue recognition and transfer of control to the buyer to be incompliance with the accounting standards. If the revenue is recognized prior to the customer having obtained the goods, it will result in an inappropriate timing of revenue recognition the period surrounding the reporting date. Hence, the accuracy of the timing of revenue recognition during these periods is one of our key audit matters.

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

KPMG
4-1

How the matter was addressed in our audit:

Understanding the types of revenue, contract contents and transaction terms to assess the accuracy of the timing of revenue recognition.
Conducting the variance analysis on the revenue from major customers.
As well as testing the design, operation and implantation of the effectiveness of internal control on revenue recognition.
Selected some samples of transaction records of sales within the balance sheet date in order to obtain the related transaction documents to evaluate the appropriateness of timing of recognition.

Other Matter

ITEQ Corporation has prepared its parent-company-only financial statements 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 with the IFRSs, IASs, IFRC, 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 are (including the Audit Committee) 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 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.

KPMG

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

The engagement partners on the audit resulting in this independent auditors’ report are Tang, Chia-Chien and Chen, Ya-Ling.

KPMG

Taipei, Taiwan (Republic of China)

March 6, 2026

Notes to Readers

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

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

(English Translation of Consolidated Financial Statements and Originally Issued in Chinese) ITEQ CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2025		December 31, 2024		Liabilities and Equity	December 31, 2025		December 31, 2024
		Amount	%	Amount			%	Amount	%	Amount	%
Current assets:						Current liabilities:
1100	Cash and cash equivalents (note 6(a))	$ 4,989,377	13	4,583,412	13	2100	Short-term borrowings (note 6(j))	$ 3,401,687	9	2,719,387	8
1110	Current financial assets at fair value through profit or loss (note 6(b))	-	-	3,387	-	2170	Accounts payable	8,848,468	23	6,285,846	18
1136	Current financial assets at amortised cost (note 6(b))	-	-	60,791	-	2219	Other payables (note 6(r))	770,744	1	871,798	3
1170	Accounts and notes receivable, net (notes 6(c) and (s))	15,009,368	40	12,789,713	37	2230	Current tax liabilities	220,544	1	162,129	-
1200	Other receivables	101,836	-	132,102	-	2250	Current provisions	-	-	3,608	-
1220	Current tax assets	79,030	-	78,953	-	2280	Current lease liabilities (notes 6(l) and 7)	51,627	-	65,575	-
130X	Inventories (note 6(d))	4,890,409	13	3,763,259	11	2320	Long-term liabilities, current portion (notes 6(k) and 8)	241,717	1	1,263,581	4
1470	Other current assets (note 6(h))	897,142	2	846,974	2	2399	Other current liabilities (note 6(s))	25,876	-	13,130	-
	Total current assets	25,972,248	68	22,258,591	63		Total current liabilities	13,560,663	35	11,385,054	33
Non-current assets:						Non-current liabilities:
1517	Non-current financial assets at fair value through other comprehensive income (note 6(b))	53,284	-	30,099	-	2540	Long-term borrowings (notes 6(k) and 8)	2,101,889	6	1,592,257	5
1550	Investments accounted for using equity method (note 6(e))	30,401	-	36,896	-	2570	Deferred tax liabilities (note 6(n))	1,159,092	3	1,025,070	3
1600	Property, plant and equipment (notes 6(f), 8 and 9)	9,081,628	24	9,649,449	28	2580	Non-current lease liabilities (notes 6(l) and 7)	83,426	-	147,937	-
1755	Right-of-use assets (notes 6(g), 7 and 8)	165,177	-	240,753	1	2645	Guarantee deposits received	41,233	-	47,924	-
1780	Intangible assets (note 6(i))	9,365	-	9,664	-		Total non-current liabilities	3,385,640	9	2,813,188	8
1840	Deferred tax assets (note 6(n))	222,576	1	215,557	1		Total liabilities	16,946,303	44	14,198,242	41
1900	Other non-current assets (notes 6(h), (m), 7 and 8)	2,678,654	7	2,403,180	7	Equity attributable to owners of parent (notes 6(h), (m), (o), (q) and 7):
	Total non-current assets	12,241,085	32	12,585,598	37	3110	Ordinary share	3,631,572	10	3,629,572	10
						3140	Advance receipts for share capital	21,944	-	-	-
						3200	Capital surplus	9,248,735	24	9,227,074	27
						3300	Retained earnings	8,290,035	22	7,430,650	21
						3400	Other equity interest	74,744	-	358,651	1
							Total equity	21,267,030	56	20,645,947	59
Total assets		$ 38,213,333	100	34,844,189	100		Total liabilities and equity	$ 38,213,333	100	34,844,189	100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

ITEQ CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue (notes 6(s) and 7)	$ 33,098,283	100	29,377,677	100
5000	Operating costs (notes 6(d), (f), (g), (m), (r), 7 and 12)	28,313,757	86	25,687,715	87
	Gross profit from operations	4,784,526	14	3,689,962	13
	Operating expenses (notes 6(c), (f), (g), (l), (m), (q), (r), 7 and 12):
6100	Selling expenses	757,424	2	840,257	3
6200	Administrative expenses	847,745	3	803,446	3
6300	Research and development expenses	812,944	2	653,492	2
6450	Expected credit loss (gain on reversal)	(16,333)	-	42,100	-
	Total operating expenses	2,401,780	7	2,339,295	8
	Net operating income	2,382,746	7	1,350,667	5
	Non-operating income and expenses (notes 6(b), (e), (f), (g), (l), (m), (t), (u) and 7):
7100	Interest income	29,613	-	52,360	-
7060	Share of loss of associates and joint ventures accounted for using equity method	(6,495)	-	(5,226)	-
7010	Other income	194,864	-	181,816	-
7020	Other gains and losses	(88,841)	-	(88,686)	-
7050	Finance costs	(145,290)	-	(173,606)	-
	Total non-operating income and expenses	(16,149)	-	(33,342)	-
7900	Profit before tax	2,366,597	7	1,317,325	5
7950	Tax expenses (note 6(n))	856,378	3	495,538	2
	Profit	1,510,219	4	821,787	3
8300	Other comprehensive income (notes 6(b), (m), (n), (o) and (n)):
8310	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Gains (losses) on remeasurements of defined benefit plans	2,489	-	4,581	-
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	24,795	-	93	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	(405)	-	(46)	-
	Total components of other comprehensive income that will not be reclassified to profit or loss	26,879	-	4,720	-
8360	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements	(385,372)	(1)	1,139,562	4
8399	Income tax related to components of other comprehensive income that will be reclassified to profit or loss	77,075	-	(227,912)	(1)
	Total components of other comprehensive income that will be reclassified to profit or loss	(308,297)	(1)	911,650	3
8300	Other comprehensive income (net of tax)	(281,418)	(1)	916,370	3
	Total comprehensive income	$ 1,228,801	3	1,738,157	6
	Profit attributable to:
	Owners of parent	$ 1,510,219	4	821,787	3
	Comprehensive income attributable to:
	Owners of parent	$ 1,228,801	3	1,738,157	6
	Basic earnings per share (expressed in New Taiwan dollars) (note 6(p))	$	4.16		2.26
	Diluted earnings per share (expressed in New Taiwan dollars) (note 6(p))	$	4.15		2.26

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

ITEQ CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Ordinary shares	Advance receipts for share capital	Capital surplus	Retained earnings				Other equity
				Legal reserve	Special reserve	Unappropriated retained earnings	Total	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Total	Total equity
Balance on January 1, 2024	$ 3,629,572	-	9,214,696	2,316,563	281,338	4,550,817	7,148,718	(555,434)	2,296	(553,138)	19,439,848
Profit	-	-	-	-	-	821,787	821,787	-	-	-	821,787
Other comprehensive income	-	-	-	-	-	4,581	4,581	911,650	139	911,789	916,370
Total comprehensive income	-	-	-	-	-	826,368	826,368	911,650	139	911,789	1,738,157
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	-	67,650	-	(67,650)	-	-	-	-	-
Special reserve appropriated	-	-	-	-	271,800	(271,800)	-	-	-	-	-
Cash dividends of ordinary shares	-	-	-	-	-	(544,436)	(544,436)	-	-	-	(544,436)
Share-based payments	-	-	12,378	-	-	-	-	-	-	-	12,378
Balance on December 31, 2024	3,629,572	-	9,227,074	2,384,213	553,138	4,493,299	7,430,650	356,216	2,435	358,651	20,645,947
Profit	-	-	-	-	-	1,510,219	1,510,219	-	-	-	1,510,219
Other comprehensive income	-	-	-	-	-	2,489	2,489	(308,297)	24,390	(283,907)	(281,418)
Total comprehensive income	-	-	-	-	-	1,512,708	1,512,708	(308,297)	24,390	(283,907)	1,228,801
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	-	82,637	-	(82,637)	-	-	-	-	-
Reversal of special reserve	-	-	-	-	(553,138)	553,138	-	-	-	-	-
Cash dividends of ordinary shares	-	-	-	-	-	(653,323)	(653,323)	-	-	-	(653,323)
Excercise of employee stock options	2,000	21,944	14,880	-	-	-	-	-	-	-	38,824
Share-based payments	-	-	6,781	-	-	-	-	-	-	-	6,781
Balance on December 31, 2025	$ 3,631,572	21,944	9,248,735	2,466,850	-	5,823,185	8,290,035	47,919	26,825	74,744	21,267,030

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

ITEQ CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from (used in) operating activities:
Profit before tax	$ 2,366,597	1,317,325
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense	1,513,434	1,371,128
Amortization expense	72,347	102,493
Expected credit loss (gain on reversal)	(16,333)	42,100
Net losses (gains) on financial assets or liabilities at fair value through profit or loss	(1,699)	267
Interest expense	145,290	173,606
Interest income	(29,613)	(52,360)
Share-based payments	6,781	12,378
Share of loss of associates and joint ventures accounted for using equity method	6,495	5,226
Losses (gains) on disposal of property, plant and equipment	84,827	(8,981)
Other adjustments	(3,906)	(2,037)
Total adjustments to reconcile profit (loss)	1,777,623	1,643,820
Changes in operating assets and liabilities:
Changes in operating assets:
Notes receivable	(716,446)	293,579
Accounts receivable	(1,974,261)	(864,429)
Other receivable	28,116	(78,103)
Inventories	(1,259,993)	(551,459)
Other current assets	(75,946)	265,961
Other operating assets	(575)	(461)
Total changes in operating assets	(3,999,105)	(934,912)
Changes in operating liabilities:
Accounts payable	2,785,390	(81,406)
Other payable	67,085	(141,266)
Decrease in provisions	(3,448)	-
Other current liabilities	13,192	(46,835)
Total changes in operating liabilities	2,862,219	(269,507)
Total changes in operating assets and liabilities	(1,136,886)	(1,204,419)
Total adjustments	640,737	439,401
Cash inflow generated from operations	3,007,334	1,756,726
Interest paid	(144,979)	(177,805)
Income taxes paid	(593,003)	(653,777)
Net cash flows from operating activities	2,269,352	925,144
Cash flows from (used in) investing activities:
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	1,610	6,273
Proceeds from repayments of financial assets at amortised cost	56,300	30,929
Acquisition of property, plant and equipment	(325,197)	(677,136)
Proceeds from disposal of property, plant and equipment	21,826	17,064
Increase (decrease) in refundable deposits	165	(1,174)
Increase in other non-current assets	(51,226)	(74,427)
Increase in prepayments for business facilities	(1,214,194)	(1,049,159)
Interest received	28,455	51,215
Net cash used in investing activities	(1,482,261)	(1,696,415)
Cash flows from (used in) financing activities:
Increase in short-term borrowings	617,731	52,919
Proceeds from long-term borrowings	760,000	450,000
Repayments of long-term borrowings	(1,229,638)	(286,088)
Increase (decrease) in guarantee deposits received	(5,627)	2,180
Payment of lease liabilities	(63,178)	(63,208)
Distribution of cash dividends	(653,323)	(544,436)
Exercise of employee share options	38,824	-
Net cash used in financing activities	(535,211)	(388,633)
Effect of exchange rate changes on cash and cash equivalents	154,085	149,046
Net increase (decrease) in cash and cash equivalents	405,965	(1,010,858)
Cash and cash equivalents at beginning of period	4,583,412	5,594,270
Cash and cash equivalents at ending of period	$ 4,989,377	4,583,412

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

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

(1) Company history:

ITEQ Corp. (the “Company”) was incorporated on April 10, 1997. ITEQ Corp. and subsidiaries (the Group) engages in the manufacturing and sales of mass lamination boards, copper clad laminates, prepreg products, electronic components, as well as the import and export trade of manufacturing equipment for the aforementioned products.

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

These consolidated financial statements were authorized for issue by the Board of Directors on March 6, 2026.

(3) New standards, amendments and interpretations adopted:

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

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

Amendments to IAS 21 “Lack of Exchangeability”

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

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

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

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

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

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

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

(4) Summary of material accounting policies:

The material accounting policies presented in the consolidated financial statements are summarized below. The following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

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

(b) Basis of preparation

(i) Basis of measurement

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

1) Financial assets and liabilities at fair value through profit or loss are measured at fair value;
2) Financial assets at fair value through other comprehensive income are measured at fair value; and
3) The defined benefit assets are measured at fair value of the plan assets less the present value of the defined benefit obligation.

(ii) Functional and presentation currency

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances.

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

(ii) List of subsidiaries in the consolidated financial statements

List of the subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Principal activity	Shareholding		Description
			December 31, 2025	December 31, 2024
The Company	ITEQ International Ltd. (ITEQ International)	Investment activities	100.00 %	100.00 %
a	BangMao Investment Co., Ltd. (Bang Mao)	Investment activities	100.00 %	100.00 %
a	ITEQ Corporation (Thailand) Ltd. (ITEQ (TL))	Manufacturing and sales of prepreg and copper clad lamination	100.00 %	100.00 %
ITEQ International	ITEQ Holding Ltd. (ITEQ Holding)	Investment activities	100.00 %	100.00 %
ITEQ Holding	Ever Smart International Corporation (ESIC)	Investments in mainland China	100.00 %	100.00 %
a	International Partners Ltd. (IPL)	Import and export business	100.00 %	100.00 %
a	Inspire Investments Limited (IIL)	Import and export business	100.00 %	100.00 %
a	Eagle Great Investments Ltd. (Eagle Great)	Investments in mainland China	100.00 %	100.00 %
a	ITEQ (Hong Kong) Limited (ITEQ (HK))	Investments in mainland China	100.00 %	100.00 %
ESIC	ITEQ (Dongguan) Corporation (ITEQ (DG))	Manufacturing and sales of prepreg and copper clad lamination	100.00 %	100.00 %
a	ITEQ (Jiangxi) Electronic Technologies Co., Ltd. (ITEQ (JX))	Manufacturing and sales of prepreg and copper clad lamination	100.00 %	100.00 %	(Note 1)
ITEQ(HK)	ITEQ (Wuxi) Electronic Technologies Co., Ltd. (ITEQ (WX))	Manufacturing and sales of prepreg and copper clad lamination	100.00 %	100.00 %
a	ITEQ (Guangzhou) Corporation (ITEQ (GZ))	Manufacturing and sales of prepreg and copper clad lamination	100.00 %	100.00 %
Eagle Great	ITEQ (Huangjiang) Corporation (ITEQ (HJ))	Manufacturing and sales of mass lamination	100.00 %	100.00 %

Note 1: The Group holds a comprehensive shareholding, with 50% held by ESIC, 25% held by ITEQ (DG) and 25% held by ITEQ (WX).

(iii) List of subsidiaries which are not included in the consolidated financial statements: None.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(d) Foreign currencies

(i) Foreign currency transactions

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

Exchange differences are generally recognized in profit or loss, except an investment in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

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

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

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

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

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

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

(ii) It is held primarily for the purpose of trading;

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

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

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

(f) Cash and cash equivalents

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

(g) Financial instruments

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

(i) Financial assets

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

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Financial assets measured at amortized cost

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

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

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

2) Fair value through other comprehensive income (FVOCI)

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

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

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group's right to receive payment is established, which is normally the ex-dividend date.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized cost, notes and accounts receivable, other receivable, refundable deposits and other financial assets).

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

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

Loss allowance for accounts and notes receivable are always measured at an amount equal to lifetime ECLs.

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

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Group considers a financial asset to be in default when the financial asset is more than 90 days past due or the debtor is unlikely to pay its credit obligations to the Group in full.

The Group holds time deposits for financial institutions with investment grade or above, and it is considered to be low credit risk.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than 90 days past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
it is probable that the borrower will enter bankruptcy or other financial reorganization; or
the disappearance of an active market for a security because of financial difficulties.

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

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group's procedures for recovery of amounts due.

5) Derecognition of financial assets

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

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

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

2) Equity instrument

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

3) Financial liabilities

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

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

4) Derecognition of financial liabilities

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

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

5) Offsetting of financial assets and liabilities

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(h) Inventories

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

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

(i) Joint arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. The IFRS classifies joint arrangements into two types — joint operations and joint ventures, which have the following characteristics: (a) the parties are bound by a contractual arrangement; and (b) the contractual arrangement gives two or more of those parties joint control of the arrangement. IFRS 11 “Joint Arrangements” defines joint control as the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (i.e., activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint venture is a joint arrangement whereby the Group has joint control of the arrangement (i.e., joint venturers) in which the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Group recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in accordance with IAS 28 “Investments in Associates and Joint Ventures”, unless the Group qualifies for exemption from that Standard.

When assessing the classification of a joint arrangement, the Group considers the structure and legal form of the arrangement, the terms in the contractual arrangement, and other facts and circumstances. When the facts and circumstances change, the Group reevaluates whether the classification of the joint arrangement has changed.

(j) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

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

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Subsequent expenditure

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

(iii) Depreciation

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

Land is not depreciated.

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

1) Building and structures 3~20 years
2) Machinery and equipment 3~10 years
3) Transportation equipment 5~10 years
4) Facilities 3~10 years
5) Other equipment 2~10 years
6) Lease improvements 1~9 years

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

(k) Leases

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

(i) As a leasee

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

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

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

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

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

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

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

If an arrangement contains lease and non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a lessor

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

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

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

The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'rent income'.

(1) Intangible assets

(i) Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

(iii) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

1) Computer software
1~5 years

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

(m) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill is tested annually for impairment.

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

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

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

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

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(n) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

(o) Revenue

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group's main types of revenue are explained below.

1) Sale of goods

The Group manufactures prepreg and copper clad laminate, and sales to customer. The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over use the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

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

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

2) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Government grants

The Group recognizes an unconditional government grant in profit or loss as non-operating income when the grant becomes receivable. Other government grants related to assets are initially recognized as deferred income at fair value if there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant; they are then recognized in profit or loss as deduction of depreciation. Grants that compensate the Group for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

(q) Employee benefits

(i) Defined contribution plans

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

(ii) Defined benefit plans

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

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

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

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Short-term employee benefits

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

(r) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Grant date of a share-based payment award is the date which the Group confirms the numbers of shares subscribed by employees.

(s) Income taxes

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

The Group has determined that interest and penalties related to income taxes, including uncertain tax treatment, do not meet the definition of income taxes, and therefore accounted for them under IAS 37.

The Group has determined that the global minimum top-up tax – which it is required to pay under Pillar Two legislation – is an income tax in the scope of IAS 12. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

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

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

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

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

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

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

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

1) the same taxable entity; or

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

(t) Earnings per share

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(u) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

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

In preparing these consolidated financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

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

Information about judgements made in applying accounting policies do not have significant effects on the amounts recognized in the financial statements.

Information about assumptions and estimation uncertainties that do not have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 250	343
Cash in bank	3,534,248	1,935,333
Cash equivalents	178,864	684,995
Time deposits	1,276,015	1,962,741
Cash and cash equivalents	$ 4,989,377	4,583,412

Please refer to note 6(u) for the exchange rate risk and sensitivity analysis of the financial assets and liabilities of the Group.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Financial assets

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

	December 31, 2025	December 31, 2024
Stock listed on domestic emerging markets	$ 5,086	3,387

Please refer to note 6(t) for the amount of remeasurement at fair value recognized in profit or loss.

(ii) Financial assets at fair value through other comprehensive income

	December 31, 2025	December 31, 2024
Stock listed on domestic emerging markets	$ 28,314	-
Domestic unlisted common shares	-	5,546
Unlisted fund	24,970	24,553
	$ 53,284	30,099

The Group designated the investments shown above as equity instruments as at fair value through other comprehensive income because these equity instruments represent those investments that the Group intends to hold for long-term for strategic purposes.

(iii) Financial assets measured at amortized cost

	December 31, 2025	December 31, 2024
Time deposits	$ -	60,791

(iv) For credit risks, please refer to note 6(u).
(v) The aforementioned financial assets were not pledged.

(c) Receivables

	December 31, 2025	December 31, 2024
Notes receivable	$ 1,478,438	787,328
Accounts receivable	13,575,520	12,064,898
Less: loss allowance	(44,590)	(62,513)
	$ 15,009,368	12,789,713

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

	December 31, 2025
	Gross carrying amount	Weight- average loss rate	Loss allowance
Current	$ 14,663,972	0.00%	-
Past due 1 to 30 days	225,997	0.00%~12.00%	5,006
Past due 31 to 90 days	620	11.00%~28.00%	170
Past due more the 91 days	163,369	20%~100%	39,414
	$ 15,053,958		44,590
	December 31, 2024
	Gross carrying amount	Weight- average loss rate	Loss allowance
Current	$ 12,461,691	0.00%	-
Past due 1 to 30 days	223,186	0.00%~18.60%	21,430
Past due 31 to 90 days	89,400	0.00%~66.8%	17,783
Past due more the 91 days	77,949	20%~100%	23,300
	$ 12,852,226		62,513

The movement in the allowance for receivables were as follows:

	2025	2024
Balance on January 1	$ 62,513	20,078
Impairment loss recognized (reversed)	(16,333)	42,100
Amounts written off	-	(1,134)
Effect of changes in exchange rates	(1,590)	1,469
Balance on December 31	$ 44,590	62,513

As of December 31, 2025 and 2024, the aforementioned financial assets were not pledged.

(d) Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 3,581,626	2,811,674
Work in progress	80,554	120,600
Finished goods	1,196,628	803,070
Inventories in transit	31,601	27,915
	$ 4,890,409	3,763,259

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Except cost of goods sold and inventories recognized as expenses, the remaining gains or losses which were recognized as operating cost or deduction of operating cost were as follows:

	2025	2024
Losses (gains) on valuation of inventories	$ 10,496	(16,569)
Scrap income	(575,433)	(505,580)
	$ (564,937)	(522,149)

The aforementioned losses on valuation of inventories were due to the reduction to net realizable value and recognition of losses on valuation of inventories, and gains on reversal valuation of inventories were due to the disposal of inventories which had been recognized as loss evaluation.

As of December 31, 2025 and 2024, the inventories were not pledged.

(e) Investments accounted for using the equity method

The components of investments accounted for using the equity method at the reporting date were as follows:

	December 31, 2025	December 31, 2024
Joint venture	$ 30,401	36,896

(i) Joint venture

To expand the manufacturing and sales of materials for laminate substrates in semiconductor packaging, the Group established MGC-ITEQ Technology Co., Ltd. as a joint venture with Mitsubishi Gas Chemical Company, Inc. on March 31, 2022. According to the agreement, both parties have the power to veto any major resolutions at the Board meetings, so the Group has no control over the joint venture; therefore, the Group classified the agreement as a joint venture and treated it by using the equity method. The Group's share of profit or loss and other comprehensive income of such investments were recognized based on the unaudited financial statements by the certified public accountant.

The Group's financial information for investments in individually insignificant joint venture accounted for using equity method at the reporting date was as follows. These financial information are included in the consolidated financial statements.

	December 31, 2025	December 31, 2024
Carrying amount of individually insignificant joint venture	$ 30,401	36,896
	2025	2024
Attributable to the Group:
Loss from continuing operations	$ (6,495)	(5,226)

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Pledge to secure

As of December 31, 2025 and 2024, the investments accounted for using equity method were not pledged.

(f) Property, plant and equipment

The movements in property, plant and equipment of the Group were as follows:

	Land	Buildings and structure	Machinery and equipment	Transport equipment	Facilities	Other equipment	Leased improvements	Total
Costs:
Balance on January 1, 2025	$ 204,705	4,467,909	10,975,749	62,250	425,417	2,054,920	436,701	18,627,651
Additions	-	2,143	147,540	-	-	35,547	1,910	187,140
Disposals	-	(157,760)	(315,322)	(2,272)	(20,872)	(34,285)	-	(530,511)
Reclassification (Note)	-	-	880,534	4,313	289	68,450	22,203	975,789
Effects of changes in exchange rates	8,424	(96,196)	(178,536)	(16,803)	(2,355)	(20,145)	-	(305,611)
Balance on December 31, 2025	$ 213,129	4,216,096	11,509,965	47,488	402,479	2,104,487	460,814	18,954,458
Balance on January 1, 2024	$ 193,985	3,957,921	8,397,236	45,932	417,703	1,777,161	406,239	15,196,177
Additions	-	32,655	347,690	7,167	335	91,790	3,730	483,367
Disposals	-	(1,040)	(42,443)	(3,664)	(14,455)	(7,733)	(10,368)	(79,703)
Reclassification (Note)	-	269,069	1,892,134	11,112	864	133,239	37,100	2,343,518
Effects of changes in exchange rates	10,720	209,304	381,132	1,703	20,970	60,463	-	684,292
Balance on December 31, 2024	$ 204,705	4,467,909	10,975,749	62,250	425,417	2,054,920	436,701	18,627,651
Depreciation and impairment loss:
Balance on January 1, 2025	$ -	1,238,421	5,824,074	33,525	385,499	1,261,222	235,461	8,978,202
Depreciation	-	195,047	986,804	4,587	12,066	207,271	43,905	1,449,680
Disposals	-	(84,703)	(286,318)	(5,709)	(18,861)	(28,267)	-	(423,858)
Effects of changes in exchange rates	-	(3,817)	(106,493)	122	(7,304)	(13,702)	-	(131,194)
Balance on December 31, 2025	$ -	1,344,948	6,418,067	32,525	371,400	1,426,524	279,366	9,872,830
Balance on January 1, 2024	$ -	994,628	4,827,579	30,695	346,152	1,013,671	207,536	7,420,261
Depreciation	-	198,393	832,182	4,244	17,304	215,034	38,290	1,305,447
Disposals	-	(9,023)	(38,284)	(3,626)	(2,676)	(7,646)	(10,365)	(71,620)
Effects of changes in exchange rates	-	54,423	202,597	2,212	24,719	40,163	-	324,114
Balance on December 31, 2024	$ -	1,238,421	5,824,074	33,525	385,499	1,261,222	235,461	8,978,202
Carrying amount:
Balance on December 31, 2025	$ 213,129	2,871,148	5,091,898	14,963	31,079	677,963	181,448	9,081,628
Balance on January 1, 2024	$ 193,985	2,963,293	3,569,657	15,237	71,551	763,490	198,703	7,775,916
Balance on December 31, 2024	$ 204,705	3,229,488	5,151,675	28,725	39,918	793,698	201,240	9,649,449

(Note): Reclassified from the prepayments for business facilities.

For the year ended December 31, 2025, capitalized interest expenses amounted to $18,129 thousand. The annual interest rates at which these interest were capitalized ranged from 2.39%–4.98%. There were no such transaction for the year ended December 31, 2024.

As of December 31, 2025 and 2024, the property, plant and equipment of the Group had been pledged as collateral, please refer to note 8.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(g) Right-of-use assets

The cost and accumulated depreciation of the Group leases lands and buildings were as follows:

	Land	Buildings	Total
Costs:
Balance on January 1, 2025	$ 108,581	504,732	613,313
Additions	-	2,676	2,676
Disposals	-	(102,675)	(102,675)
Effects of changes in exchange rates	(2,123)	(6,754)	(8,877)
Balance on December 31, 2025	$ 106,458	397,979	504,437
Balance on January 1, 2024	$ 103,210	493,538	596,748
Additions	-	3,716	3,716
Disposal	-	(2,952)	(2,952)
Effects of changes in exchange rates	5,371	10,430	15,801
Balance on December 31, 2024	$ 108,581	504,732	613,313
Accumulate depreciation:
Balance on January 1, 2025	$ 71,864	300,696	372,560
Depreciation	1,446	62,308	63,754
Disposals	-	(91,635)	(91,635)
Effects of changes in exchange rates	(1,368)	(4,051)	(5,419)
Balance on December 31, 2025	$ 71,942	267,318	339,260
Balance on January 1, 2024	$ 66,871	231,564	298,435
Depreciation	1,497	64,184	65,681
Effects of changes in exchange rates	3,496	4,948	8,444
Balance on December 31, 2024	$ 71,864	300,696	372,560
Carrying amount:
Balance on December 31, 2025	$ 34,516	130,661	165,177
Balance on January 1, 2024	$ 36,339	261,974	298,313
Balance on December 31, 2024	$ 36,717	204,036	240,753

As of December 31, 2025 and 2024, the right-of-use assets of the Group had been pledged as collateral, please refer to note 8.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(h) Other current assets and other non-current assets

(i) The other current assets of the Group were as follows:

	December 31, 2025	December 31, 2024
Net input VAT	$ 767,411	717,673
Prepayments for suppliers	7,459	15,663
Prepaid expense and others	122,272	113,638
	$ 897,142	846,974

(ii) The other non-current assets of the Group were as follows:

	December 31, 2025	December 31, 2024
Prepayments for business facilities	$ 2,333,157	1,971,926
Long-term prepaid expenses	101,044	175,572
Materials and supplies	57,895	74,427
Net defined benefit plan assets	36,899	33,835
Refundable deposits	137,969	136,460
Others	11,690	10,960
	$ 2,678,654	2,403,180

(i) Intangible assets

	December 31, 2025	December 31, 2024
Goodwill	$ 9,365	9,664

Goodwill refers to the excess of net equity value from the subsidiary, ESIC, whose equity cost was acquired by ITEQ Holdings.

(j) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured bank borrowings (currency: NTD, THB and USD)	$ 3,401,687	2,719,387
Unused credit lines	$ 8,538,425	8,908,660
Interest rate collars	1.65%~4.98%	1.81%~5.39%

The Group has not pledged the asset as collateral for its short-term bank borrowings.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(k) Long-term borrowings

	December 31, 2025
	Currency	Interest rate collars	Expiration	Amount
Unsecured bank borrowings	NTD and RMB	1.80%~1.95%	2026.1~2030.8	$ 2,031,293
Secured bank borrowing	RMB	3.35%	2028.1	312,313
Less: current portion				(241,717)
Total				$ 2,101,889
Unused credit lines				$ 1,925,186
	December 31, 2024
	Currency	Interest rate collars	Expiration	Amount
Unsecured bank borrowings	NTD and RMB	1.73%~3.76%	2025.2~2029.3	$ 2,378,020
Secured bank borrowing	RMB	3.70%	2028.1	477,818
Less: current portion				(1,263,581)
Total				$ 1,592,257
Unused credit lines				$ 2,349,892

For details of interest expenses, please refer to note 6(t). The Group had pledged the asset as collateral for long-term borrowings, please refer to note 8.

(l) Lease liabilities

Lease liabilities of the Group were as follows:

	December 31, 2025	December 31, 2024
Current	$ 51,627	65,575
Non-current	$ 83,426	147,937

For the maturity analysis, please refer to note 6(u) financial instruments.

Amount recognized in profit or loss were as follows:

	2025	2024
Interest expenses on lease liabilities	$ 4,603	6,698
Expenses relating to short-term leases and leases of low-value asset	$ 34,194	39,129

Amount recognized in the statement of cash flow were as follows:

	2025	2024
Total cash outflow for leases	$ 101,975	109,035

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Leases of lands and buildings

The Group leases lands and buildings for its factory and office space. The leases run for a period of 2 to 50 years. Some leases include an option to renew the leases for an additional period of the same duration after the end of the contract term.

(ii) The Group also leases machinery with contract terms within a year. These leases are short-term leases or leases of low-value items. The Group has selected not to recognize right-of-use assets and lease liabilities for these leases.

(m) Employee benefits

(i) Defined benefit plans

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

	December 31, 2025	December 31, 2024
Present value of the defined benefit obligations	$ 20,984	21,451
Fair value of plan assets	(57,883)	(55,286)
Net defined benefit assets (under other non-current assets)	$ (36,899)	(33,835)

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

1) Composition of plan assets

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

The Group’s Bank of Taiwan labor pension reserve account balance amounted to $57,883 thousand as of December 31, 2025. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Group were as follows:

	2025	2024
Defined benefit obligations on January 1	$ 21,451	21,928
Current interest costs	365	351
Remeasurements of the net defined benefit asset
—Actuarial losses (gains) arising from experience adjustments	1,304	(225)
Benefits paid by the plan	(2,136)	(603)
Defined benefit obligations on December 31	$ 20,984	21,451

3) Movements of defined benefit plan assets

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

	2025	2024
Fair value of plan assets on January 1	$ 55,286	50,721
Interest income	940	812
Remeasurements of the net defined benefit asset:
—Return on plan assets excluding interest income	3,793	4,356
Benefits paid by the plan	(2,136)	(603)
Fair value of plan assets on December 31	$ 57,883	55,286

4) Expenses recognized in profit or loss

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

	2025	2024
Net interest of net assets for defined benefit assets	$ (575)	(461)
	2025	2024
Operating expense	$ (575)	(461)

5) Remeasurements of the net defined benefit asset recognized in the other comprehensive income

The Group’s remeasurements of the net defined benefit asset recognized in the other comprehensive income were as follow:

	2025	2024
Accumulated amount on January 1	$ (16,087)	(11,506)
Recognized during the period	(2,489)	(4,581)
Accumulated amount on December 31	$ (18,576)	(16,087)

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.60 %	1.70 %
Future salary increase rate	2.00 %	2.00 %

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date for 2025 is $0 thousand.

The weighted-average lifetime of the defined benefits plans for the year ended December 31, 2025 is 1.5 years.

7) Sensitivity analysis

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

	Impact on the defined benefit obligations
	Increased 0.25%	Decreased 0.25%
December 31, 2025
Discount rate	$ (285)	292
Future salary increasing rate	264	(260)
December 31, 2024
Discount rate	$ (301)	308
Future salary increasing rate	280	(275)

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

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

(ii) Defined contribution plans

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $13,625 thousand and $13,463 thousand for the years ended December 31, 2025 and 2024, respectively.

The Group’s subsidiaries including ITEQ (DG), ITEQ (JX), ITEQ (WX), ITEQ (GZ) and ITEQ (HJ), adopted the defined contribution plans, with the pension costs of $139,223 thousand and $154,280 thousand for the years ended December 31, 2025 and 2024, respectively.

(n) Income taxes

(i) Income tax expenses

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

	2025	2024
Current income tax expense (benefit)
Current period	$ 679,782	356,360
Adjustment for prior periods	(27,077)	(12,804)
	652,705	343,556
Deferred income tax expense
Origination and reversal of temporary differences	203,673	151,982
Income tax expense	$ 856,378	495,538

The amount of income tax benefit (expense) recognized in other comprehensive income (loss) for 2025 and 2024 were as follows:

	2025	2024
Components of other comprehensive income that will not be reclassified to profit or loss:
Unrealized gains (losses) on equity instruments at fair value through other comprehensive income	$ (405)	46
Components of other comprehensive income that will be reclassified to profit or loss:
Exchange differences on translation	$ 77,075	(227,912)

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Reconciliation of income tax expense and income before tax for December 31, 2025 and 2024 were as follows:

	2025	2024
Profit before tax	$ 2,366,597	1,317,325
Income tax calculated using the Company’s domestic tax rate	$ 473,319	263,465
Effect of tax rates in foreign jurisdiction	(166,914)	(118,813)
Non-deductible expenses	9,578	8,057
Exempt income	(643)	(251)
Change in unrecognized temporary differences	14,902	150,173
Deferred tax effect on earnings of subsidiaries	570,896	245,738
Adjustment for undistributed earnings	(16,101)	-
Adjustment for prior periods	(10,976)	(12,804)
Tax incentives	(2,897)	(32,481)
Others	(14,786)	(7,546)
	$ 856,378	495,538

(ii) Deferred tax assets and liabilities

1) Unrecognized deferred tax liabilities

The Group was able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2025 and 2024. Also, management considered its probability that the temporary differences will not reverse in the foreseeable future. Hence, such temporary differences were not recognized under deferred tax liabilities as follows:

	December 31, 2025	December 31, 2024
Aggregate amount of temporary differences related to investments in subsidiaries	$ 2,965,454	2,970,467

2) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following Items:

	December 31, 2025	December 31, 2024
Loss carryforward	$ 60,127	30,970

According to the Income Tax Act, the operating loss as examined and assessed by the local tax authorities can be carried forward for use as a deduction from taxable income over a period for prior years. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As of December 31, 2025, the information of the Group’s unutilized tax losses for which no deferred tax assets were recognized are as follows:

Year of loss	Unrecognized unutilized tax losses	Recognized tax losses	Expiry date
2022	$ 12,801	-	2027
2023	32,596	-	2028
2024	76,063	-	2029
2025	119,050	-	2030
	$ 240,510	-

3) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for December 31, 2025 and 2024 were as follows:

	Unrealized sales allowance	Allowance for valuation of inventories	Impairment of receivables	Exchange differences on translation of the financial statements of foreign operations	Loss carryforward	Others	Total
Deferred tax assets:
Balance on January 1, 2025	$ 541	69,382	16,743	-	111,869	17,022	215,557
Recognized in profit or loss	(541)	2,373	(2,237)	-	-	7,424	7,019
Recognized in other comprehensive income	-	-	-	-	-	-	-
Balance on December 31, 2025	$ -	71,755	14,506	-	111,869	24,446	222,576
Balance on January 1, 2024	$ 515	72,686	12,636	138,858	134,140	12,258	371,093
Recognized in profit or loss	26	(3,304)	4,107	-	(22,271)	4,764	(16,678)
Recognized in other comprehensive income	-	-	-	(138,858)	-	-	(138,858)
Balance on December 31, 2024	$ 541	69,382	16,743	-	111,869	17,022	215,557
		Investment income under equity method	Exchange differences on translation of the financial statements of foreign operations		Others	Total
Deferred tax liabilities:
Balance on January 1, 2025		$ 885,391		89,054	50,625	1,025,070
Recognized in profit or loss		218,807		-	(8,115)	210,692
Recognized in other comprehensive income		-		(77,075)	405	(76,670)
Balance on December 31, 2025		$ 1,104,198		11,979	42,915	1,159,092
Balance on January 1, 2024		$ 750,473		-	50,285	800,758
Recognized in profit or loss		134,918		-	386	135,304
Recognized in other comprehensive income		-		89,054	(46)	89,008
Balance on December 31, 2024		$ 885,391		89,054	50,625	1,025,070

(iii) Assessment of tax

The Company's and subsidiary Bang Mao's income tax returns for the years through 2023 were assessed and approved by the local tax authorities.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions and was gradually coming into effect or implemented. There was no material impact on current income tax expense of the Group at the end of the reporting period as of December 31, 2025 and 2024.

(o) Capital and other equity

(i) Ordinary shares

As of December 31, 2025 and 2024, the number of authorized common shares of both 500,000 thousand shares had a par value of $10 per share. The total value of the authorized ordinary shares amounted to both $5,000,000 thousands, of which 363,157 thousand shares and 362,957 thousand shares, were issued and outstanding, all issued shares were paid up upon issuance.

In 2025, the Company issued 200 thousand new shares at par value, totaling $2,000 thousand, as a result of employees' exercise of stock options. All proceeds related to the issuance were fully collected, and the relevant registration procedures have been completed.

As of December 31, 2025, employee of the Company exercised employee stock options amounting to $21,944 thousand. However, as the relevant registration procedures have not yet been completed, the amount recorded under advance receipts for share capital.

(ii) Capital surplus

The details of capital surplus were as follows:

	December 31, 2025	December 31, 2024
Additional paid-in capital	$ 9,195,516	9,167,555
Expired employee stock options	36,300	20,402
Employee stock options	16,919	39,117
	$ 9,248,735	9,227,074

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Retained earnings

The Company's Article of Incorporation stipulates that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance is to be appropriated as follows:

A. 10% is to be appropriated as legal reserve
B. Special reserve should be appropriated (reversed) in according to relevant laws and regulations.
C. If there is any remaining amount, combine it with the cumulative undistributed earnings, the Board of Directors shall propose for the distribution of earnings subject to the final approval of the shareholders' meeting for the distribution of dividends and bonuses to shareholders. Where the earnings, mentioned above is paid out in cash, the Board of Directors shall be authorized to adopt a supermajority resolution for the payout and report it to the shareholders' meeting, whereas if it is paid out by issuing new shares, it shall be carried out after a resolution is adopted by the shareholders' meeting in accordance with the regulations.

The Company is currently in its growth stage; thus, the policy for distribution of dividends should reflect factors such as the current and future investment environment, fund requirements, domestic competition and capital budget, as well as benefits to be given out, balance in the distribution of shares and cash bonuses and long-term financial planning. The Company's Articles of Incorporation stipulate that at least 20% of dividends to shareholders shall be distributed in cash.

1) Legal reserve

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

2) Special reserve

In accordance with the requirements issued by the FSC, a portion of earnings shall be allocated as special reserve during earnings distribution. If the Company has already reclassified a portion of earnings to special reserve under the preceding subparagraph, it shall make supplemental allocation of special reserve for any difference between the amount it has already allocated and the amount of the current-period total net reduction of other shareholders' equity. An equivalent amount of special reserve shall be allocated from the after-tax net profit in the period, plus items other than after-tax net profit in the period, that are included in the undistributed current-period earnings and the undistributed prior-period earnings. A portion of undistributed prior-period earnings shall be reclassified to special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to the net reduction of other shareholders' equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Appropriation of earnings

The amounts of cash dividends on the 2024 and 2023 earnings distribution had been approved during the board meeting on March 7, 2025 and February 27, 2024, respectively, the relevant dividend distributions to shareholders were as follows:

	2024		2023
	Amount per share (in dollars)	Amount	Amount per share (in dollars)	Amount
Dividends distributed to ordinary shareholders:
Cash	$ 1.8	$ 653,323	$ 1.5	$ 544,436

The related information mentioned above would be available at the Market Observation Post System website.

The amount of cash dividends on the 2025 earnings distribution, had been approved during the board meeting held on March 6, 2026, the relevant dividend distributions to shareholders were as follows:

	2025
	Amount per share (in dollars)	Amount
Dividends distributed to ordinary shareholders:
Cash	$ 3.0	1,090,402

(iv) Other equity (net after tax)

	Exchange differences on translation of foreign financial statement	Unrealized gains (losses) on financial assets at fair value through other comprehensive income	Total
Balance on January 1, 2025	$ 356,216	2,435	358,651
Unrealized gains (losses) on financial assets at fair value through other comprehensive income	-	24,390	24,390
Exchange difference on translation of foreign financial statements	(308,297)	-	(308,297)
Balance on December 31, 2025	$ 47,919	26,825	74,744
	Exchange differences on translation of foreign financial statement	Unrealized gains (losses) on financial assets at fair value through other comprehensive income	Total
Balance on January 1, 2024	$ (555,434)	2,296	(553,138)
Unrealized gains (losses) on financial assets at fair value through other comprehensive income	-	139	139
Exchange difference on translation of foreign financial statements	911,650	-	911,650
Balance on December 31, 2024	$ 356,216	2,435	358,651

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Earnings per share

The calculation for the basic earnings per share and diluted earnings per share of the Group were as follows:

Unit: thousand shares

	2025	2024
Basic earnings per share
Profit attributable to common shareholders of the Company	$ 1,510,219	821,787
Weighted average number of common shares	362,987	362,957
Basic earnings per share (express in New Taiwan dollars)	$ 4.16	2.26
	2025	2024
Diluted earnings per share
Profit attributable to common shareholders of the Company	$ 1,510,219	821,787
Weighted average number of common shares (basic)	362,987	362,957
Effect of employee compensation	810	714
Employee stock options	35	30
Weighted average number of common shares (diluted)	363,832	363,701
Diluted earnings per share (express in New Taiwan dollars)	$ 4.15	2.26

(q) Share-based payment

As of December 31, 2025 and 2024, the Group had the share-based payment arrangements as follows:

Type	Equity-settled
	Employee stock options issued in 2021
Grant date	2021.7.30
Number of shares granted (units)	1,000
Number of common shares eligible (shares)	1,000
Subscription price per share (dollar)	$95.9

The duration of employee stock option is five years, after two years from the grant of employee stock options, the option holder may exercise were as follows:

Employee stock options grant period	Exercise rate (cumulative)
The 2nd year of the expired date	60 %
The 3rd year of the expired date	80 %
The 4th year of the expired date	100 %

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Determined the fair value of equity instruments granted

The Company used Black-Scholes Model in measuring the fair value of its employee stock option issued in 2021, the fair value of employee stock option is 57.2 dollars per units at the date of grant. The summarized factors considered were as follows:

	Employee stock options plan in 2021
Exercise price at grant date (dollar)	$95.9
Expected life	3.5 years; 4 years; 4.5 years
Share price at grant date (dollar)	$137
Expected volatility	36.48%
Expected dividend	-
Risk-free interest rate	0.289% : 0.299% : 0.308%

(ii) Description of share-based payment arrangements

Details of the employee stock options were as follows:

	2025		2024
	Weighted average exercise price (dollar)	Number of options (units)	Weighted average exercise price (dollar)	Number of options (units)
Outstanding on January 1	$ 86.1	787	86.1	1,000
Granted during the period	84.4	(460)	-	-
Forfeited during the period	84.4	(127)	86.1	(213)
Outstanding on December 31	84.4	200	86.1	787
Exercisable on December 31		200		587

For the years ended December 31, 2025 and 2024, the Group recognized the employee stock option compensation cost (attributable to subsidiaries employee) were $6,781 thousand and $12,378 thousand, respectively, and recorded under capital surplus-employee stock options.

(r) Employees' compensation and Directors' remuneration

On May 26, 2025, the Company resolved at the shareholders' meeting to amend its Articles of Incorporation. According to the amended Articles, if the Company has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Company. The remainder, if any, no less than 2% shall be allocated as employee compensation (including a minimum of 5% to those entry-level employees) and a maximum of 2% as remunerations for directors. The distribution of shares and cash of the abovementioned employee compensation is approved by the Board of Directors, the recipients may include the employees' of the Company's subsidiaries who meet certain conditions, the conditions and distribution methods are determined by the Board of Directors. Prior to the amendment, the Articles of Incorporation stipulated that, the Company should contribute no less than 2% of the profit as employee compensation and less than 2% as director's remuneration when there is profit for the year.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Company accrued its employees' compensation and directors' remuneration were as follows:

	2025	2024
Employees' compensation	$ 78,492	49,432
Directors' remuneration	19,623	12,358
	$ 98,115	61,790

The abovementioned amount of employees' compensation and remuneration of Directors were estimating based on profit before tax, with deducted multiplied by the distribution ratio of employees' compensation and remuneration of Directors set out in the Articles of Incorporation as the estimation basis and presented as the operating costs or operating expenses of the period. If there is any difference between the actual distribution amount in the following year and the estimated amount, it shall be treated as changes in accounting estimates, and the difference is recognized as the profit or loss of the following year.

The amounts, as stated in the parent-company-only financial statements, are identical to those of the actual distributions for 2025 and 2024. Related information would be available at the Market Observation Post System website.

(s) Revenue from contracts with customers

(i) Details of revenue

	2025
	ITEQ Corporation	ITEQ (WX)	ITEQ (DG)	ITEQ (JX)	Other department	Total
Primary geographical markets:
Asia	$ 1,187,898	12,229,799	3,953,331	12,983,983	2,553,660	32,908,671
Europe	121,191	-	-	-	15,884	137,075
Other	35,674	-	7,836	-	9,027	52,537
	$ 1,344,763	12,229,799	3,961,167	12,983,983	2,578,571	33,098,283
Major products:
Copper clad laminate	$ 924,739	8,526,325	2,847,742	9,033,195	2,566,218	23,898,219
Prepreg	411,142	3,703,036	1,105,589	3,950,788	-	9,170,555
Other	8,882	438	7,836	-	12,353	29,509
	$ 1,344,763	12,229,799	3,961,167	12,983,983	2,578,571	33,098,283

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	2024
	ITEQ Corporation	ITEQ (WX)	ITEQ (DG)	ITEQ (JX)	Other department	Total
Primary geographical markets:
Asia	$ 944,553	11,962,775	4,972,384	8,768,526	2,517,406	29,165,644
Europe	121,538	656	5	-	23,260	145,459
Other	62,835	-	-	-	3,739	66,574
	$ 1,128,926	11,963,431	4,972,389	8,768,526	2,544,405	29,377,677
Major products:
Copper clad laminate	$ 778,911	8,241,137	3,507,314	6,178,367	2,466,254	21,171,983
Prepreg	327,804	3,722,294	1,465,075	2,590,148	25,435	8,130,756
Other	22,211	-	-	11	52,716	74,938
	$ 1,128,926	11,963,431	4,972,389	8,768,526	2,544,405	29,377,677

(ii) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable	$ 1,478,438	787,328	1,019,692
Accounts receivable	13,575,520	12,064,898	10,498,105
Less: loss allowance	(44,590)	(62,513)	(20,078)
Total	$ 15,009,368	12,789,713	11,497,719

As of December 31, 2025 and 2024, the balance of contract liabilities from sales of products were amounted to $5,207 thousand and $7,411 thousand (accounted for other current liabilities), respectively. The amount of revenue recognized for the years ended December 31, 2025 and 2024 that were included in the contract liabilities at the beginning of the period amounted to $4,881 thousand and $43,400 thousand, respectively. The major change in the balance of contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received.

(t) Non-operating income and expenses

(i) Interest income

	2025	2024
Interest income from bank deposits	$ 29,613	52,360

(ii) Other income

	2025	2024
Government grant income	$ 173,517	152,508
Other income	21,347	29,308
	$ 194,864	181,816

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Other gains and losses

	2025	2024
Foreign exchange gains (losses)	$ 6,379	(86,265)
Net gains (losses) on financial assets and liabilities at fair value through profit or loss	1,699	(267)
Gains (losses) on disposals of property, plant and equipment	(84,827)	8,981
Others	(12,092)	(11,135)
	$ (88,841)	(88,686)

(iv) Financial costs

	2025	2024
Interest expense
Bank borrowings	$ 158,816	166,908
Lease liabilities	4,603	6,698
Less: capitalized interest	(18,129)	-
	$ 145,290	173,606

(u) Disclosures for financial instruments

(i) Credit risk

1) Credit risk exposure

The Carrying amount of financial assets represents the maximum amount exposed to credit risk.

2) Concentration of credit risk

As of December 31, 2025 and 2024, 49% and 51%, respectively, of accounts receivable were concentrated on the Group's ten major customers. Thus, the Group’s credit risk is significantly centralized.

3) Credit risk of receivables

For credit risk exposure of receivables, please refer to note 6(c).

Other financial assets at amortized cost includes time deposits, other receivables and guarantee deposits received, there were no loss allowance as of December 31, 2025 and 2024.

All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12-month expected credit losses. Regarding how the financial instruments are considered to have low credit risk, please refer to note 4(g).

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

	Carrying amount	Contractual cash flows	Within 1 year	1-2 years	2-5 years	More than 5 years
December 31, 2025
Non-derivative financial liabilities
Short-term borrowings	$ 3,401,687	3,417,625	3,417,625	-	-	-
Accounts payable	8,848,468	8,848,468	8,848,468	-	-	-
Other payables	770,744	770,744	770,744	-	-	-
Lease liabilities	135,053	138,939	54,057	51,168	33,714	-
Long-term borrowings (including current portion)	2,343,606	2,434,993	287,906	1,048,145	1,098,942	-
Guarantee deposits received	41,233	41,233	-	41,233	-	-
	$ 15,540,791	15,652,002	13,378,800	1,140,546	1,132,656	-
December 31, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 2,719,387	2,723,766	2,723,766	-	-	-
Accounts payable	6,285,846	6,285,846	6,285,846	-	-	-
Other payables	871,798	871,798	871,798	-	-	-
Lease liabilities	213,512	222,422	70,335	68,186	83,901	-
Long-term borrowings (including current portion)	2,855,838	2,928,142	1,315,186	951,384	661,572	-
Guarantee deposits received	47,924	47,924	-	47,924	-	-
	$ 12,994,305	13,079,898	11,266,931	1,067,494	745,473	-

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(iii) Foreign currency risk

1) Exposure to currency risk

The Group's significant exposure to foreign currency risk were as follows:

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD
Financial assets
Monetary items
USD	$ 23,299 USD/NTD	31.43	732,300	60,217 USD/NTD	32.79	1,974,515
	605,767 USD/RMB	7.029	19,039,261	493,963 USD/RMB	7.1884	16,194,565
	1,206 USD/THB	31.37	37,908	230 USD/THB	34.069	7,546
Financial liabilities
Monetary items
USD	65,858 USD/NTD	31.43	2,069,912	98,696 USD/NTD	32.79	3,236,242
	237,057 USD/RMB	7.029	7,450,710	123,919 USD/RMB	7.1884	4,062,669
	34,957 USD/THB	31.37	1,098,350	345 USD/THB	34.069	11,626

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable and accounts payable and etc. that are denominated in foreign currency. A strengthening (weakening) of 1% of the NTD against the USD as of December 31, 2025 and 2024 would have increased (decreased) the profit before tax by $91,905 thousand and $108,661 thousand, respectively. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables remain constant and performed on the same basis for 2025 and 2024.

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the years ended December 31, 2025 and 2024, foreign exchange gains (losses) (including realized and unrealized portions) amounted to $6,379 thousand and $(86,265) thousand, respectively.

(iv) Interest rate analysis

Please refer to the notes on liquidity risk anaggement and interest rate exposure of the Group's financial liabilities.

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

If the interest rate had increased / decreased by 1%, the Group’s profit before tax would have increased / decreased by $57,453 thousand and $55,752 thousand, respectively, for the years ended December 31, 2025 and 2024, with all other variable factors remaining constant. This is mainly due to the Group’s borrowing at variable rates.

(v) Other market price risk

For the years ended December 31, 2025 and 2024, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

	2025		2024
Price of securities on the reporting date	Other comprehensive income before tax	Profit	Other comprehensive income before tax	Profit
Increasing 1%	$ 533	51	301	34
Decreasing 1%	$ (533)	(51)	(301)	(34)

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(vi) Fair value of financial instruments

1) Categories and fair value of financial instruments

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

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Stocks listed on domestic emerging markets	$ 5,086	-	-	5,086	5,086
Financial assets at fair value through other comprehensive income
Unlisted fund	24,970	-	-	24,970	24,970
Stocks listed on domestic emerging markets	28,314	28,314	-	-	28,314
Subtotal	53,284	28,314	-	24,970	53,284
Financial assets measured at amortized cost
Cash and equivalents	$ 4,989,377	-	-	-	-
Notes receivable and accounts receivable (including related parties)	15,009,368	-	-	-	-
Other receivables	101,836	-	-	-	-
Refundable deposits	137,969	-	-	-	-
Subtotal	20,238,550	-	-	-	-
Total	$ 20,296,920	28,314	-	30,056	58,370
Financial liabilities at amortized cost
Bank borrowings	$ 5,745,293	-	-	-	-
Accounts payable	8,848,468	-	-	-	-
Lease liabilities	135,053	-	-	-	-
Other payables	770,744	-	-	-	-
Guarantee deposits received	41,233	-	-	-	-
Total	$ 15,540,791	-	-	-	-
	December 31, 2024
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Stocks listed on domestic emerging markets	$ 3,387	-	-	3,387	3,387
Financial assets at fair value through other comprehensive income
Unlisted fund	24,553	-	-	24,553	24,553
Domestic unlisted common shares	5,546	-	-	5,546	5,546
Subtotal	30,099	-	-	30,099	30,099

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and equivalents	$ 4,583,412	-	-	-	-
Financial assets measured at amortized cost	60,791	-	-	-	-
Notes receivable and accounts receivable	12,789,713	-	-	-	-
Other receivables	132,102	-	-	-	-
Refundable deposits	136,460	-	-	-	-
Subtotal	17,702,478	-	-	-	-
Total	$ 17,735,964	-	-	33,486	33,486
Financial liabilities at amortized cost
Bank borrowings	$ 5,575,225	-	-	-	-
Accounts payable	6,285,846	-	-	-	-
Lease liabilities	213,512	-	-	-	-
Other payables	871,798	-	-	-	-
Guarantee deposits received	47,924	-	-	-	-
Total	$ 12,994,305	-	-	-	-

2) Valuation techniques for financial instruments measured at fair value

The fair value of non-derivative financial instrument traded in an active market is based on the quoted market prices. The quotations, which is published by the main exchange center, is included in the fair value of the listed securities instruments in an active market open bid.

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry company, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm's-length basis. Otherwise, the market is deemed to be inactive. Normally, a market is considered to be inactive as follows:

a) the bid-ask spread is increasing; or
b) the bid-ask spread varies significantly; or
c) there has been a significant decline in trading volume.

When the financial instrument of the Group is traded in an active market, its fair value is illustrated by the category and nature as follows:

The fair value of stocks listed on domestic and foreign markets, which are the financial assets with standard terms and conditions and traded in an active market, are based on the market closing prices.

Except the aforementioned financial instruments traded in an active market, measurements of fair value of financial instruments were based on a valuation technique. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

When the financial instrument of the Group is traded in an inactive market, its fair value is illustrated by the category and nature as follows:

Unquoted equity instruments: the fair value of financial instruments transactions in an inactive market, which is valued by comparable method. The main hypothesis is referred from the quotations of comparable listed companies and earning multiplies of price-book ratio proportion as basic, which is adjusted by the discount affections of equity securities lacking market liquidity.

3) Level transfers

In January 2025, TMY Technology Inc., which the Group holds an investment in equity shares of, listed its equity shares on the emerging market and it is currently actively traded in the market. Because the equity shares now have published price quotation in an active market, the fair value measurement was transferred from Level 3 to Level 1 of the fair value hierarchy since the first quarter of 2025.

4) Reconciliation of Level 3 fair values

	Fair value through profit or loss	Fair value through other comprehensive income
	Unquoted equity instruments	Unquoted equity instruments	Total
Balance on January 1, 2025	$ 3,387	30,099	33,486
Total gains or losses:
Recognized in profit or loss	1,699	-	1,699
Recognized in other comprehensive income	-	2,027	2,027
Capital reduction	-	(1,610)	(1,610)
Transfer out of level 3	-	(5,546)	(5,546)
Balance on December 31, 2025	$ 5,086	24,970	30,056
	Fair value through profit or loss	Fair value through other comprehensive income
	Unquoted equity instruments	Unquoted equity instruments	Total
Balance on January 1, 2024	$ 3,654	36,279	39,933
Total gains or losses:
Recognized in profit or loss	(267)	-	(267)
Recognized in other comprehensive income	-	93	93
Capital reduction	-	(6,273)	(6,273)
Balance on December 31, 2024	$ 3,387	30,099	33,486

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The aforementioned total gains and losses that were included in “other gains and losses” and “unrealized gains and losses on fair value through other comprehensive income-equity investments”, which related to holding assets on December 31, 2025 and 2024 were as follows:

	2025	2024
Recognized in profit or loss	$ 1,699	(267)
Recognized in other comprehensive income	$ 2,027	93

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group's financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through profit or loss-equity investments”.

Most of the Group's financial instruments that use level 3 inputs to measure fair value have multiple significant unobservable inputs. There is no correlation existence among the significant unobservable inputs of equity investments that have no active markets because they were independent of each other.

Quantified information of significant unobservable inputs was as follows:

Items	Evaluation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
Financial assets at fair value through profit or loss-equity investments without an active market	Comparable companies approach	• Price-book ratio (as of December 31, 2025 and 2024 were 2.37 and 1.52, respectively)
• Market liquidity discount rate (as of December 31, 2025 and 2024 were all 20%)	• The higher the price-book ratio, the higher the fair value
• The higher the market liquidity discount rate, the lower the fair value
Financial assets at fair value through other comprehensive income-equity investments without an active market	Comparable companies approach	• Price-book ratio (as of December 31, 2024 were 3.82)
• Market liquidity discount rate (as of December 31, 2024 were 25%)	• The higher the price-book ratio, the higher the fair value
• The higher the market liquidity discount rate, the lower the fair value
Financial assets at fair value through other comprehensive income-unlisted fund	Net asset value method	• Net asset value	Not applicable

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

6) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The fair value measurements of the Group's financial instruments are reasonable. However, changes in the use of valuation models or valuation variables may affect the estimations. As of December 31, 2025 and 2024, for value measurements in Level 3, if changing valuation variables, would have the following effects on the other comprehensive income were as follows:

Input	Upwards or downward changes	Fair value variation on profit or loss
		Favorable		Unfavorable
		December 31, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Price-book ratio	5%	122	95	(122)	(95)
Market liquidity discount rate	5%	72	42	(72)	(42)
Input	Upwards or downward changes	Fair value variation on other comprehensive income
		Favorable		Unfavorable
		December 31, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Price-book ratio	5%	-	226	-	(226)
Market liquidity discount rate	5%	-	89	-	(89)

The favorable and unfavorable effects represent the change in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects from changes in a single input, and it does not include the inter-relationships with another input.

(v) Financial risk management

(i) Overview

The Group have exposures to the following risks from its financial instruments:

1) credit risk
2) liquidity risk
3) market risk

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

(ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The financial management department is responsible for developing and managing risk management operations for the Group, and reports regularly to the Board of Directors on its activities.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group's risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group's Audit Committee oversees how management monitors compliance with the Group's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group's Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(iii) Credit risk

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

1) Notes and accounts receivable

According to the credit policy, each new customer is analyzed individually for creditworthiness before the Group's standard payment, trade and other terms and conditions are offered. The Group's review includes external ratings, when available, and, in some cases, bank references. Credit limits are established for each customer, these limits are reviewed regularly.

2) Investments

The exposure to credit risk for the bank deposits, equity instruments, and other financial instruments are measured and monitored by the Group's finance department. The Group only deals with financial institutions and stock issued by companies with good credit ratings. The Group does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

3) Guarantees

According to the Group's policy, it may only provide financial guarantee for the companies which listed in the Group's Procedures for Endorsement & Guarantee. The Group did not provide financial guarantees to other company which is not its subsidiary as of December 31, 2025 and 2024.

(iv) Liquidity risk

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

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Loans and borrowings from the bank form an important source of liquidity for the Group. As of December 31, 2025 and 2024, the Group's unused credit line were amounted to $10,463,611 thousand and $11,258,552 thousand, respectively.

(v) Market risk

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

The Group buys and sells derivatives, and also incurs financial liabilities, in order to manage market risk. Generally, all transactions are executed in accordance with policies approved by the Board of Directors, and related financial operations also supervised by the internal audit department.

1) Currency risk

The Group is exposed to currency risk on sales and purchases transactions that are denominated in a currency other than the respective functional currencies of the Group's entities. The currencies used in these transactions are the NTD, USD and RMB.

The Group monitors exposure of individual foreign currency assets and liabilities periodically and uses forward foreign exchange contracts to manage risks to the extent permitted by the policy. The maturity date of forward foreign exchange contracts undertaken by the Group is less than one year and does not meet the conditions of hedging accounting.

2) Interest rate risk

The Group's long-term and short-term borrowings are mainly floating rate debts, so changes in market interest rates will cause their effective interest rates to change accordingly, resulting in fluctuations in their future cash flows. In response to the risk of interest rate changes, the Group mainly adopts regular assessment of bank borrowing interest rates and maintains good relationships with financial institutions to obtain lower financing costs, and at the same time strengthens working capital management to reduce its dependence on bank borrowings and diversify the risk of interest rate changes.

3) Other market price risk

Risks arising from the Group's holding of equity instruments for the purpose of monitoring cash flow requirements and planning idle funds. The management of the Group plans the investment targets according to the timing of the cash flow requirements. Significant investments are managed individually and all purchase and sale decisions are approved by the Board of Directors.

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(w) Capital management

The Group's policy is to manage its capital to safeguard the capacity to continue as a going concern, to continue to provide returns for shareholders, maintain the interest of other related parties, and to maintain an optimal capital structure to reduce the cost of capital. The Group use the debt-to-equity ratio to manage capital. This ratio is the total net debt divided by the total capital. Net liabilities from the balance sheet are derived from the total liabilities less cash and cash equivalents. The total equity is the entire component of the equity.

The debt-to-capital ratios at the reporting date were as follows:

	December 31, 2025	December 31, 2024
Total liabilities	$ 16,946,303	14,198,242
Less: cash and cash equivalents	(4,989,377)	(4,583,412)
Net liabilities	$ 11,956,926	9,614,830
Total equity	$ 21,267,030	20,645,947
Debt-to-equity ratio	56.22%	46.57%

As of December 31, 2025, the Group's capital management method has not changed.

(x) Investing and financing activities not affecting cash flow

The reconciliation of liabilities arising from financing activities of the Group were as follows:

	Non-cash changes
	January 1, 2025	Cash flows	Foreign exchange movement	Other	December 31, 2025
Short-term borrowings	$ 2,719,387	617,731	64,569	-	3,401,687
Long-term borrowings	2,855,838	(469,638)	(42,594)	-	2,343,606
Lease liabilities	213,512	(63,178)	(3,011)	(12,270)	135,053
Guarantee deposits received	47,924	(5,627)	(1,064)	-	41,233
Total liabilities from financing activities	$ 5,836,661	79,288	17,900	(12,270)	5,921,579
	Non-cash changes
	January 1, 2024	Cash flows	Foreign exchange movement	Other	December 31, 2024
Short-term borrowings	$ 2,646,225	52,919	20,243	-	2,719,387
Long-term borrowings	2,621,137	163,912	70,789	-	2,855,838
Lease liabilities	272,000	(63,208)	5,993	(1,273)	213,512
Guarantee deposits received	42,895	2,180	2,849	-	47,924
Total liabilities from financing activities	$ 5,582,257	155,803	99,874	(1,273)	5,836,661

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(7) Related-party transactions:

(a) Names and relationship with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

Name of related party	Relationship with the Group
WIN Semiconductors Corp. (WIN Corporation)	The entity’s Chairman is the Company’s Chairman
MGC-ITEQ Technology Co., Ltd. (MGC Corporation)	Affiliate
Tian He Int'l Enterprise Co., Ltd. (Tian He Corporation)	Other related party

(b) Significant transactions with related parties

(i) Sales

The Group's significant sales amount and outstanding balance to related parties were as follows:

Sales
	2025	2024
Affiliate — WIN Corporation	$ 31	-
Affiliate — MGC Corporation	17	-
	$ 48	-

The selling price and payment terms of sales to related parties depend on the economic environment and market competition, and are not significantly different from those with third-parties customers.

(ii) Leases

The Group signed an operating lease contract for its factory with WIN Corporation in January 2013, with a leasing period from January 2013 to December 2028, and the rental paid on a monthly basis, relevant right-of-use assets, lease liabilities and profit or loss were as follows:

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Account items	December 31, 2025	December 31, 2024
Right-of-use assets	$ 93,537	122,039
Refundable deposits (under other non-current assets)	$ 106,448	105,290
Lease liabilities-current	$ 31,120	29,977
Lease liabilities-non-current	63,742	92,839
	$ 94,862	122,816
	2025	2024
Financial cost	$ 1,771	2,205
Depreciation expense	$ 31,178	30,510
Interest income	$ 1,158	1,145

(iii) Operating expense

MGC Corporation provided human support to the Group, for the years ended December 31, 2025, the operating expense recognized $716 thousand.

There was no such transaction for the years ended December 31, 2024.

(iv) Other income

The Group provide test sample and human support to MGC Corporation, for the years ended December 31, 2025 and 2024, the revenue recognized $94 thousand and $968 thousand, respectively.

(v) Other

A summary of the Group's dividends paid to related parties were as follows:

	2025	2024
WIN Corporation	$ 117,736	98,113
Tian He Corporation	77,462	64,552
	$ 195,198	162,665

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	2025	2024
Short-term employee benefits	$ 38,899	26,461
Post-employment benefits	527	529
	$ 39,426	26,990

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Pledged to secure	December 31, 2025	December 31, 2024
Property, plant and equipment	Long-term borrowings	$ 1,017,299	1,118,226
Right-of-use assets	Long-term borrowings	10,933	11,415
Other non-current assets	Gas deposits	5,452	3,952
		$ 1,033,684	1,133,593

(9) Commitments and contingencies:

(a) Unrecognized contractual commitments

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment	$ 1,374,034	1,436,433

(b) The Group's unused letters of credit

	December 31, 2025	December 31, 2024
Unused letters of credit	$ 419,459	353,158

(10) Losses due to major disasters: None
(11) Subsequent events: None

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(12) Other:

A summary of employee benefits, depreciation, and amortization, by function, were as follows:

	For the year ended December 31
By function
By item	2025			2024
	Operating cost	Operating expense	Total	Operating cost	Operating expense	Total
Employee benefits
Salary	986,934	628,504	1,615,438	1,009,607	610,136	1,619,743
Labor and health insurance	54,361	47,334	101,695	81,725	50,962	132,687
Pension	97,665	54,608	152,273	109,642	57,640	167,282
Remuneration of directors	-	19,868	19,868	-	12,623	12,623
Others	81,113	35,767	116,880	96,268	41,993	138,261
Depreciation	1,253,554	259,880	1,513,434	1,121,115	250,013	1,371,128
Amortization	65,960	6,387	72,347	91,846	10,647	102,493

(Continued)

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(13) Other disclosures

(a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” of the Company for the years ended December 31, 2025:

(1) Loans to other parties:

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount	Range of interest rates during the period	Purposes of fund financing for the borrower (Note 3)	Transaction amount	Reasons for short-term financing	Loss allowance	Collateral		Individual funding loan limits (Note 1) (Note 2)	Maximum limit of fund financing (Note 1) (Note 2)
													Item	Value
1	ITEQ (WX)	ITEQ (IX)	Account receivables - related parties and other receivables - related parties	Yes	2,081,610	2,012,220	1,743,924	2.5	2	-	Operating Capital	-	None	-	4,253,406	4,253,406
2	ITEQ Holding	ITEQ (TL)	Account receivables - related parties and other receivables - related parties	Yes	617,613	-	-	-	2	-	Operating Capital	-	None	-	4,253,406	4,253,406

Note 1: The Company’s “Procedures for Lending Fund to Others Parties” states that the limit amount and the total limit for lending to a company is 20% and 40% of the Company’s net worth based on the most recent financial statements audited or reviewed by the Certified Public Accountants.

Note 2: The total limit for lending funds to a single entity for the Company’s 100% owned subsidiaries is subject to 600% of the Company’s net worth based on the most recent statements of each counterparty audited or reviewed by the Certified Public Accountants. However, if the maximum amount of the capital accommodation exceeds 20% of the net worth of the Company’s most recent financial statements audited or reviewed, the limit shall be subject to 20% of the Company’s net worth based on the most recent financial statements.

Note 3: Nature of financing:

For entities that the Company has business transactions with.
For entities with short-term financing needs.

Note 4: The aforementioned transactions have been eliminated in the consolidated financial statements.

ii. Guarantees and endorsements for other parties:

No.	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise (Note 1) (Note 2)	Highest balance for guarantees and endorsements during the period (Note 3)	Balance of guarantees and endorsements as of reporting date	Actual usage amount	Property pledged for guarantees and endorsements amount	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements (Note 1) (Note 2)	Parent company endorsements/guarantees to subsidiary	Subsidiary endorsements/guarantees to parent company	Endorsements/guarantees to companies in Mainland China
		Name	Relationship with the Company (Note 4)
0	The Company	III.	2	21,267,030	597,690 (Note 3)	408,590	123,942	-	1.92%	21,267,030	Yes	No	No
0	a	IPL	2	21,267,030	3,469,923 (Note 3)	2,451,540	245,793	-	11.53%	21,267,030	Yes	No	No
0	a	ITEQ (IX)	2	21,267,030	2,122,830 (Note 3)	314,300	121,292	-	1.48%	21,267,030	Yes	No	Yes
0	a	ITEQ (TL)	2	21,267,030	2,272,830 (Note 3)	2,272,830	1,591,612	-	10.69%	21,267,030	Yes	No	No

Note 1: The total amount of the guarantee provided to a single-party and aggregate limits shall not exceed 100% of the Company’s net worth based on the most recent financial statements audited or reviewed by the Certified Public Accountants.

Note 2: Single-party and aggregate limits on guarantees provided to 100% owned subsidiaries are capped at 100% of each subsidiary’s net worth based on the most recent financial statements audited or reviewed by the Certified Public Accountants.

Note 3: Bank guarantee amount obtained by jointly issuing bills.

Note 4: Relationship with the Company:

Ordinary business relationship.
Subsidiary which owned more than 50% by the guarantor.
An invoice owned more than 50% in total by both the guarantor and its subsidiary.
An invoice owned more than 90% by the guarantor or its subsidiary.
Fulfillment of contractual obligations by providing mutual endorsements and guarantees for peer or joint builders in order to undertake a construction project.
An entity that is guaranteed and endorsed by all capital contributing shareholders in proportion to their shareholding percentages.
The companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre - construction homes pursuant to the Consumer Protection Act for each other.

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

iii. Significant Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

Name of holder	Category and name of security	Relationship with company	Account name	Ending balance
				Shares/Units	Carrying value	Percentage of ownership	Fair value
The Company	TMY Technology Inc.	-	Non-current financial assets at fair value through other comprehensive income	357	28,314	0.6%	28,314
Bang Mao	Mortech Corporation	-	Current financial assets at fair value through profit or loss	381	5,086	1.0%	5,086
-	TIEF FUND, L.P.	-	Non-current financial assets at fair value through other comprehensive income	-	24,970	4.8%	24,970

iv. Related-party transactions for purchases and sales with amounts exceeding the lower of NT$ 100 million or 20% of the paid-in capital:

Name of company	Related party	Nature of relationship	Purchase/Sale	Transaction details			Transactions with terms different from others		Notes receivable/ Accounts receivable (Notes payable/ Accounts payable)		Note
				Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes receivable/ accounts receivable (Notes payable/ Accounts payable)
The Company	ITEQ (WX)	The Company holds 100% indirectly	(Sale)	(661,076)	(27.93%)	OA120 days	No material difference with general customers	No material difference with general customers	187,861	23.75%	Note
The Company	ITEQ (JX)	The Company holds 100% indirectly	o	(308,930)	(13.05%)	o	o	o	121,480	15.36%	o
IPL	ITEQ (GZ)	Same parent company	o	(298,709)	(37.21%)	o	o	o	114,900	80.90%	o
IPL	ITEQ (JX)	Same parent company	o	(491,674)	(61.25%)	o	o	o	25,519	18.29%	o
IIL	The Company	The Company holds 100% indirectly	o	(395,868)	(46.98%)	o	o	o	216,190	53.96%	o
IIL	ITEQ(WX)	Same parent company	o	(452,377)	(53.02%)	o	o	o	184,424	46.04%	o
ITEQ(WX)	IIL	Same parent company	o	(368,415)	(2.69%)	o	o	o	177,941	2.92%	o
ITEQ(WX)	ITEQ(DG)	Same parent company	o	(145,448)	(1.06%)	o	o	o	35,096	0.57%	o
ITEQ(WX)	ITEQ (JX)	Same parent company	o	(943,474)	(6.89%)	o	o	o	586,825	9.61%	o
ITEQ(DG)	ITEQ (JX)	Same parent company	o	(1,226,332)	(23.57%)	o	o	o	800,375	37.08%	o
ITEQ (JX)	ITEQ(WX)	Same parent company	o	(3,189,321)	(16.83%)	o	o	o	326,146	5.01%	o
ITEQ (JX)	ITEQ(DG)	Same parent company	o	(2,755,534)	(14.54%)	o	o	o	432,858	6.65%	o
ITEQ(WX)	The Company	The Company holds 100% indirectly	Purchase	661,076	5.52%	o	o	o	(187,861)	(5.86%)	o
ITEQ (JX)	The Company	The Company holds 100% indirectly	o	308,930	1.87%	o	o	o	(121,480)	(2.00%)	o
ITEQ (GZ)	IPL	Same parent company	o	298,709	13.00%	o	o	o	(114,900)	(33.61%)	o
ITEQ (JX)	IPL	Same parent company	o	491,674	2.97%	o	o	o	(25,978)	(0.43%)	o
The Company	IIL	The Company holds 100% indirectly	o	395,868	17.08%	o	o	o	(216,190)	(23.23%)	o
ITEQ(WX)	IIL	Same parent company	o	452,377	3.78%	o	o	o	(184,424)	(5.75%)	o
IIL	ITEQ(WX)	Same parent company	o	368,415	43.17%	o	o	o	(177,941)	(54.01%)	o
ITEQ(DG)	ITEQ(WX)	Same parent company	o	145,448	3.01%	o	o	o	(35,096)	(3.25%)	o
ITEQ (JX)	ITEQ(WX)	Same parent company	o	943,474	5.70%	o	o	o	(586,825)	(9.67%)	o
ITEQ (JX)	ITEQ(DG)	Same parent company	o	1,226,332	7.40%	o	o	o	(800,375)	(13.20%)	o
ITEQ(WX)	ITEQ (JX)	Same parent company	o	3,189,321	26.63%	o	o	o	(326,146)	(10.18%)	o
ITEQ (DG)	ITEQ (JX)	Same parent company	o	2,755,534	57.11%	o	o	o	(432,858)	(40.06%)	o

Note: The amount of the transaction have been eliminated in the consolidated financial statements.

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

v. Receivables from related parties with amounts exceeding the lower of NT$ 100 million or 20% of paid-in capital :

Name of company	Related party	Nature of relationship	Ending balance (Note 2)	Turnover Rate	Overdue		Amounts received in subsequent period (As of March 6, 2026)	Loss allowance
					Amount	Action taken
The Company	ITEQ (WX)	The Company holds 100% indirectly	187,861	5.26	-	-	107,400	-
The Company	ITEQ (JX)	Same parent company	121,480	1.77	-	-	52,086	-
IPL	ITEQ (GZ)	Same parent company	114,900	2.71	-	-	48,141	-
IIL	The Company	The Company holds 100% indirectly	216,190	2.27	-	-	95,572	-
IIL	ITEQ (WX)	Same parent company	184,424	3.84	-	-	62,869	-
ITEQ (DG)	ITEQ (JX)	Same parent company	800,375	2.00	-	-	252,173	-
ITEQ (JX)	ITEQ (WX)	Same parent company	326,146	9.25	-	-	326,146	-
ITEQ (JX)	ITEQ (DG)	Same parent company	432,858	5.53	-	-	432,108	-
ITEQ (WX)	IIL	Same parent company	177,941	2.11	-	-	64,589	-
ITEQ (WX)	ITEQ (JX)	Same parent company	586,825	2.16	-	-	121,390	-
ITEQ (WX)	ITEQ (JX)	Same parent company	1,743,924	Note 1	-	-	269,490	-

Note 1: The ending balance was other account receivables, which was not applicable for the calculation of turnover rate.
Note 2: The amount of the transaction have been eliminated in the consolidated financial statements.

vi. Business relationships and significant intercompany transactions:

No. (Note 1)	Name of company	Name of counter-party	Nature of relationship (Note 2)	Intercompany transactions (Note 3)(Note 6)
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	The Company	ITEQ (WX)	1	Sale	661,076	Note 4	2.00%
0	The Company	ITEQ (JX)	1	Sale	308,930	Note 4	0.93%
1	IPL	ITEQ (GZ)	3	Sale	298,709	Note 4	0.90%
1	IPL	ITEQ (JX)	3	Sale	491,674	Note 4	1.49%
2	IIL	The Company	2	Sale	395,868	Note 4	1.21%
2	IIL	ITEQ (WX)	3	Sale	452,377	Note 4	1.37%
3	ITEQ (WX)	IIL	3	Sale	368,415	Note 4	1.11%
3	ITEQ (WX)	ITEQ (JX)	3	Sale	943,474	Note 4	2.85%
4	ITEQ (DG)	ITEQ (JX)	3	Sale	1,226,332	Note 4	3.71%
5	ITEQ (JX)	ITEQ (WX)	3	Sale	3,189,321	Note 4	9.64%
5	ITEQ (JX)	ITEQ (DG)	3	Sale	2,755,534	Note 4	8.33%
2	IIL	The Company	2	Account receivable	216,190	Note 4	0.57%
4	ITEQ (DG)	ITEQ (JX)	3	Account receivable	800,375	Note 4	2.09%
5	ITEQ (JX)	ITEQ (WX)	3	Account receivable	326,146	Note 4	0.85%
5	ITEQ (JX)	ITEQ (DG)	3	Account receivable	432,858	Note 4	1.13%
3	ITEQ (WX)	ITEQ (JX)	3	Account receivable	586,825	Note 4	1.54%
3	ITEQ (WX)	ITEQ (JX)	3	Other Account receivable	1,743,924	Note 5	4.56%

Note 1: Company numbering as follows:
1. Parent company - 0
2. Subsidiary starts from 1

Note 2: The numbering of the relationship between transaction parties as follows:
1. Parent company to subsidiary - 1
2. Subsidiary to parent company - 2
3. Subsidiary to subsidiary - 3

Note 3: The ratio of consolidated revenue or assets depends on the account to which it belongs. The profit and loss account are a percentage of consolidated revenue while the assets or liabilities are a percentage of consolidated total assets.

Note 4: No material difference from non-related parties.

Note 5: Loans to other parties with an interest rate of 2.5%

Note 6: These accounts are disclosures based on the amounts exceed NT$ 200,000 thousand.

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Information on investees (excluding information on investees in mainland China) :

(In Thousands of Shares/New Taiwan Dollar)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Highest percentage of ownership during the year	Net profits (losses) of investee	Share of profits/losses of investee	Note
				The ending balance at the end	The ending balance at the beginning	Shares	Percentage of ownership	Carrying value
The Company	ITEQ International	Samoa	Investment activities	1,719,377	1,879,344	56,820	100%	22,175,485	100%	2,720,472	2,720,472	Note 1
o	Bang Mao	Hsinchu	Investment activities	1,000	1,000	100	100%	36,630	100%	1,517	1,517	Note 1
o	MGC Corporaion	Hsinchu	Electronic parts and components manufacturing	49,000	49,000	4,900	49%	30,401	49%	(13,254)	(6,495)
o	ITEQ (TL)	Thailand	Manufacturing and sales of prepreg and copper clad lamination	901,818	586,083	10,000	100%	998,832	100%	25,819	25,819	Note 1
ITEQ International	ITEQ Holding	British Cayman Islands	Investment activities	1,719,377	1,879,344	56,820	100%	22,175,485	100%	2,720,472	2,720,472	Note 1
ITEQ Holding	ESIC	The British Virgin Islands	Investments in mainland China	395,850	395,850	10,750	100%	9,604,229	100%	1,197,627	1,197,627	Note 1
o	IPL	Samoa	Import and export business	30,450	30,450	1,000	100%	133,202	100%	43,960	43,960	Note 1
o	IIL	Samoa	Import and export business	30,450	30,450	1,000	100%	72,083	100%	(1,864)	(1,864)	Note 1
o	Eagle Great	The British Virgin Islands	Investments in mainland China	98,828	258,795	3,600	100%	138,778	100%	(122,684)	(122,684)	Note 1
o	ITEQ (HK)	Hong Kong	Investments in mainland China	736,890	736,890	51,500	100%	12,241,846	100%	1,603,383	1,603,383	Note 1

Note 1: The amount of the transaction have been eliminated in the consolidated financial statements.

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2025	Net profits (losses) of the investee	Percentage of ownership	Highest percentage of ownership during the year	Investment profits (losses) (Note 2)	Carrying value at the end of this period	Accumulated remittance of earnings in current period
					Outflow	Inflow
ITEQ (DG) (Note 5)	Manufacturing and sales of prepreg and copper clad lamination	609,000	(Note 1)(Note 4)	395,850	-	-	395,850	521,200	100%	100%	521,200	5,393,139	683,450
ITEQ (WX) (Note 5)	Manufacturing and sales of prepreg and copper clad lamination	1,248,450	(Note1)(Note 4)	672,945	-	-	672,945	1,485,609	100%	100%	1,485,609	9,956,289	5,505,343
ITEQ (HJ) (Note 5)	Manufacturing and sales of mass lamination	98,828	(Note 1)	252,309	-	(159,967)	92,342	(116,028)	100%	100%	(116,028)	137,755	-
ITEQ (GZ) (Note 5)	Manufacturing and sales of prepreg and copper clad lamination	721,665	(Note 1)	493,290	-	-	493,290	117,894	100%	100%	117,894	2,261,594	1,675,224
ITEQ (JX) (Note 5)	Manufacturing and sales of prepreg and copper clad lamination	4,896,360	(Note 1)(Note 4)	-	-	-	-	1,350,870	100%	100%	1,350,870	8,251,067	-

ii) Limitation on investment in mainland China:

Accumulated Investment in mainland China as of December 31, 2025	Investment Amount Authorized by Department of Investment Review, MOEA (Note 6)	Upper Limit on Investment (Note 3)
1,814,394
(USD 59,586)	2,526,972
(USD 80,400)	12,760,218

Note1: Investment in companies in mainland China by incorporating an overseas company.
Note2: Investment income (loss) was based on financial statements audited by the parent company's auditors.
Note3: The Company's amount was based on the regulation issued by the Department of Investment Review under the Ministry of Economic Affairs, 60% of total equity or total consolidated equity, which is higher.
Note4: ITEQ (JX) is invested by ESIC, ITEQ (DG), ITEQ (WX). Other companies are invested by the Company by incorporating an overseas company.
Note5: The transactions have been eliminated in the consolidated financial statements.
Note6: Translated using the exchange rates on December 31, 2025.

iii) Significant transactions

For the years ended December 31, 2025, the direct and indirect significant transactions of investees in mainland China have been eliminated in the consolidated financial statements, please refer to note 13(a) "Information on significant transactions" for details.

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(14) Segment information:

(a) General information

The Group's main business activities are manufacturing and sales of prepreg and copper clad lamination, and its reportable segment included ITEQ Corporation, ITEQ (WX), ITEQ (DG) and ITEQ (JX), the other segments did not meet the quantitative thresholds of a reportable segment.

(b) Information about profit or loss, assets of the reportable segments and their measurement and reconciliations

Taxation, are managed on a group basis, and hence they are not able to be allocated to each reportable segment. The reportable amount is similar to that in the report used by the chief operating decision maker.

The operating segment accounting policies are similar to those described in note 4 “summary of material accounting policies”. The Group used operating segment profit or loss as the basis to determine resource allocation and make a performance evaluation.

The Group's operating segment information and reconciliation were as follow:

	2025
	ITEQ Corporation	ITEQ (WX)	ITEQ (DG)	ITEQ (JX)	Other department	Reconciliation and elimination	Total
Revenue:
Revenue from external customers	$ 1,344,763	12,229,799	3,961,167	12,983,983	2,578,571	-	33,098,283
Intersegment revenues	1,022,199	1,463,343	1,242,312	5,961,242	1,659,017	(11,348,113)	-
Interest revenue	7,789	51,198	9,304	2,433	11,123	(52,234)	29,613
Total revenue	$ 2,374,751	13,744,340	5,212,783	18,947,658	4,248,711	(11,400,347)	33,127,896
Share of profit (loss) of associates and joint ventures accounted for using equity method	$ 2,741,313	337,717	337,717	-	2,876,809	(6,300,051)	(6,495)
Depreciation and amortization	$ 339,959	118,621	59,634	1,017,665	51,488	(1,586)	1,585,781
Interest expense	$ (79,053)	-	(1,821)	(105,876)	(10,774)	52,234	(145,290)
Reportable segment profit (loss)	$ 1,864,289	1,682,487	578,377	1,566,441	3,027,288	(6,352,285)	2,366,597
	2024
	ITEQ Corporation	ITEQ (WX)	ITEQ (DG)	ITEQ (JX)	Other department	Reconciliation and elimination	Total
Revenue:
Revenue from external customers	$ 1,128,926	11,963,431	4,972,389	8,768,526	2,544,405	-	29,377,677
Intersegment revenues	683,100	1,041,224	677,816	6,750,116	2,606,254	(11,758,510)	-
Interest revenue	11,106	59,870	11,161	2,258	20,058	(52,093)	52,360
Total revenue	$ 1,823,132	13,064,525	5,661,366	15,520,900	5,170,717	(11,810,603)	29,430,037
Share of profit (loss) of associates and joint ventures accounted for using equity method	$ 2,058,051	125,882	125,882	-	2,107,318	(4,422,359)	(5,226)
Depreciation and amortization	$ 265,503	138,301	66,455	934,924	69,907	(1,469)	1,473,621
Interest expense	$ (79,251)	-	(3,745)	(120,923)	(21,780)	52,093	(173,606)
Reportable segment profit (loss)	$ 1,173,999	1,531,048	299,187	581,989	2,207,023	(4,475,921)	1,317,325

(c) Geographic information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers and non-current assets are based on the geographical location of the assets.

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Revenue from the external customers:

Area	2025	2024
Asia	$ 32,908,671	29,165,644
Europe	137,075	145,459
Other	52,537	66,574
	$ 33,098,283	29,377,677

Non-current assets:

Area	December 31, 2025	December 31, 2024
Taiwan	$ 1,729,318	1,974,079
Asia	10,021,273	10,149,008
	$ 11,750,591	12,123,087

Non-current assets include property, plant and equipment, right-of-use assets, intangible assets, and other assets, not including financial instruments, goodwills, deferred tax assets, investments accounted for using equity method and pension fund assets.

(d) Major customers

For the years ended December 31, 2025 and 2024, sales to customers greater than 10% of net revenue were as follows:

	2025		2024
	Amount	Percentage of net revenue (%)	Amount	Percentage of net revenue (%)
A Company	$ 4,208,962	13	4,217,548	14

AI assistant

ITEQ — Audit Report / Information 2025

52533_rns_2026-04-14_0159487e-cd9c-4776-a90a-2ed74fb5ccd4.pdf

ITEQ CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

Representation Letter

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

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

Notes to Readers

(English Translation of Consolidated Financial Statements and Originally Issued in Chinese) ITEQ CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

ITEQ CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

ITEQ CORPORATION AND SUBSIDIARIES

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

ITEQ CORPORATION AND SUBSIDIARIES

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

(ii) Functional and presentation currency

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Financial assets

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

(ii) Financial assets at fair value through other comprehensive income

(iii) Financial assets measured at amortized cost

(c) Receivables

ITEQ CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

ITEQ CORPORATION AND SUBSIDIARIES

ITEQ Audit Report / Information 2025