KYEC - Interim / Quarterly Report 2025

English Translation of a Report and Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITOR FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

Address: No. 81, Sec. 2, Gongdao 5th Rd., Hsinchu City 300, Taiwan (R.O.C.) Telephone: 886-3-5751888

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

Independent Auditors’ Review Report

English Translation of a Report Originally Issued in Chinese

To King Yuan Electronics Co., Ltd.

Introduction

We have reviewed the accompanying consolidated balance sheets of King Yuan Electronics Co., Ltd. and its subsidiaries as of June 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three-month and six-month periods ended June 30, 2025 and 2024, changes in equity and cash flows for the six-month periods ended June 30, 2025 and 2024, and notes to the consolidated financial statements, including the summary of material accounting policies (together “the consolidated financial statements”). Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As explained in Note 4. (3), the financial statements of certain insignificant subsidiaries were not reviewed by independent auditors. Those statements reflect total assets of NT$141,738 thousand and NT$137,478 thousand, constituting 0.17% and 0.17% of the consolidated total assets, and total liabilities of NT$19,219 thousand and NT$27,270 thousand, constituting 0.05% and 0.07% of the consolidated total liabilities as of June 30, 2025 and 2024, respectively; and total comprehensive income of NT$7,965 thousand, NT$5,895 thousand, NT$15,649 thousand and NT$11,462 thousand, constituting 0.82%, 0.25%, 0.28% and 0.26% of the consolidated total comprehensive income for the three-month and six-month periods ended June 30, 2025 and 2024, respectively. As explained in Note 6. (7), those associates under the equity method amounted to NT$120,645 thousand and NT$99,361 thousand as of June 30, 2025 and 2024, respectively, were not reviewed by independent auditors. The related shares of gain from the associates under the equity method amounted to NT$16,533 thousand, NT$4,541 thousand, NT$24,998 thousand and NT$8,439 thousand for the three-month and six-month periods ended June 30, 2025 and 2024, respectively. The information related to above subsidiaries and associates accounted for under the equity method disclosed in Note 13 was also not reviewed by independent auditors.

Qualified Conclusion

Based on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain insignificant subsidiaries and associates accounted for using the equity method and the information been reviewed by independent auditors described in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of June 30, 2025 and 2024, and their consolidated financial performance for the three-month and six-month periods ended June 30, 2025 and 2024, and cash flows for the six-month periods ended June 30, 2025 and 2024, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Chiu, Wan-Ju

Hsu, Hsin-Min

Ernst & Young, Taiwan August 8, 2025

Notice to Readers

The accompanying consolidated financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.
Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of June 30, 2025, December 31, 2024 and June 30, 2024

(Amounts in thousands of New Taiwan Dollars)

ASSETS	Notes	June 30, 2025	%	December 31, 2024	%	June 30, 2024	%
Current assets Cash and cash equivalents Contract assets-current Accounts receivable, net Accounts receivable from related parties, net Other receivables Other receivables from related parties Inventories, net Prepayments Disposal group held for sale Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income-non-current Investments accounted for using the equity method Property, plant and equipment Right-of-use assets Intangible assets Deferred tax assets Other financial assets-non-current Other non-current assets Total non-current assets Total assets	6(1) 6(15), 6(16) 6(3), 6(16) 6(3), 6(16), 7 7 6(4) 6(5) 6(6) 6(2) 6(7) 6(8), 7, 8 6(17) 6(9) 4, 6(20), 6(21) 8	$14,805,232 102,145 4,156,646 2,073,638 2,946,526 24,632 1,000,415 993,604 - 201,415 26,304,253 6,015,359 120,645 48,480,672 1,486,328 6,673 231,986 148,754 53,386 56,543,803 $82,848,056	18 - 5 3 4 - 1 1 - - 32 7 - 59 2 - - - - 68 100	$10,329,331 90,414 4,050,713 1,980,803 764,228 17,915 848,115 219,398 25,387,003 230,068 43,917,988 6,369,337 99,727 34,923,771 1,045,372 7,503 167,443 148,916 30,729 42,792,798 $86,710,786	12 - 5 3 1 - 1 - 29 - 51 8 - 40 1 - - - - 49 100	$10,128,809 327,056 3,999,408 2,010,546 394,964 13,019 913,666 168,730 22,161,054 55,400 40,172,652 7,159,846 99,361 31,379,618 443,674 7,536 180,508 147,924 9,129 39,427,596 $79,600,248	13 - 5 3 - - 1 - 28 - 50 9 - 40 1 - - - - 50 100

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

(continued)

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of June 30, 2025, December 31, 2024 and June 30, 2024

(Amounts in thousands of New Taiwan Dollars)

LIABILITIES AND EQUITY	Notes	June 30, 2025	%	December 31, 2024	%	June 30, 2024	%
Current liabilities Notes payable Accounts payable Accounts payable to related parties Other payables Other payables to related parties Payables on equipment Current tax liabilities Liabilities directly associated with disposal group held for sale Lease liabilities-current Other current liabilities Total current liabilities Non-current liabilities Long-term loans Deferred tax liabilities Lease liabilities-non-current Net defined benefit liabilities Guarantee deposits Total non-current liabilities Total liabilities Equity attributable to owners of the parent company Share capital Common stock Capital surplus Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity Equity attributable to owners of the parent company Non-controlling interests Total equity Total liabilities and equity	7 7 4, 6(21) 6(6) 6(17) 6(10) 6(11), 8, 9 4, 6(20), 6(21) 6(17) 4 6(13) 6(13), 6(14), 6(23) 6(2), 6(13) 6(2) 6(13), 6(23)	$1,499 1,078,810 8,833 10,627,140 89,731 2,854,516 2,674,773 - 277,375 1,399,477 19,012,154 16,567,894 1,586,585 1,252,859 480,080 6,759 19,894,177 38,906,331 12,227,451 5,080,949 5,543,345 201,416 18,232,026 23,976,787 2,648,186 43,933,373 8,352 43,941,725 $82,848,056	- 1 - 13 - 4 3 - - 2 23 20 2 1 1 - 24 47 15 6 7 - 22 29 3 53 - 53 100	$8,115 918,828 15,446 4,543,127 110,592 1,749,768 746,284 7,253,301 148,609 1,412,558 16,906,628 20,580,713 2,952,476 926,222 626,948 6,316 25,092,675 41,999,303 12,227,451 5,077,764 4,763,685 201,416 17,431,161 22,396,262 3,594,796 43,296,273 1,415,210 44,711,483 $86,710,786	- 1 - 5 - 2 1 8 - 2 19 24 3 1 1 - 29 48 14 6 6 - 20 26 4 50 2 52 100	$25,113 626,953 8,692 7,328,141 72,754 1,995,629 528,245 6,828,535 29,310 1,297,258 18,740,630 16,590,266 2,635,432 432,496 639,072 6,492 20,303,758 39,044,388 12,227,451 5,052,770 4,763,685 201,416 12,905,804 17,870,905 4,194,699 39,345,825 1,210,035 40,555,860 $79,600,248	- 1 - 8 - 3 1 8 - 2 23 21 3 1 1 - 26 49 16 6 6 - 16 22 5 49 2 51 100

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

English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three months and six months ended June 30, 2025 and 2024

(Amounts in thousands of New Taiwan Dollars, except for earnings per share)

Description	Notes		Three Months	Ended June 30			Six Months E	nded June 30
		2025	%	2024	%	2025	%	2024	%
Net sales Operating costs Gross profit Operating expenses Selling expenses Administrative expenses Research and development expenses Total operating expenses Operating income Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit of associates accounted for using the equity method Total non-operating income and expenses Net income before income tax Income tax expense Net income from continuing operations Total profit from discontinued operations Net income Other comprehensive income Items that will not be reclassified subsequently to profit or loss: Unrealized gains and losses from equity instrument investments measured at fair value through other comprehensive income Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Items that will be reclassified subsequently to profit or loss: Exchange differences resulting from translating the financial statements of foreign operations Euity directly associated with disposal group held for sale Income tax related to components of other comprehensive income that will be reclassified to profit or loss Other comprehensive income, net of tax Total comprehensive income Net income attributable to : Owners of the parent company Non-controlling interests Total comprehensive income attributable to : Owners of the parent company Non-controlling interests Earnings per share (NT$) From continuing and discontinued operations Basic Earnings Per Share Diluted Earnings Per Share From continuing operations Basic Earnings Per Share Diluted Earnings Per Share	6(15), 6(17), 7 6(4), 6(9), 6(12), 6(17), 6(18), 7 6(9), 6(12), 6(16), 6(17), 6(18), 7 6(2), 6(7), 6(19) 4, 6(21) 6(6) 6(20), 6(21) 6(22)	$8,361,874 (5,390,307)	100 (64)	$6,543,206 (4,235,853)	100 (65)	$15,677,364 (10,255,424)	100 (65)	$12,520,379 (8,240,308)	100 (66)
		2,971,567	36	2,307,353	35	5,421,940	35	4,280,071	34
		(99,151) (484,152) (212,102)	(1) (6) (3)	(96,616) (411,114) (203,200)	(2) (6) (3)	(211,052) (1,057,373) (454,658)	(1) (7) (3)	(189,395) (781,045) (409,264)	(2) (6) (3)
		(795,405)	(10)	(710,930)	(11)	(1,723,083)	(11)	(1,379,704)	(11)
		2,176,162	26	1,596,423	24	3,698,857	24	2,900,367	23
		156,957 63,079 257,922 (12,472) 16,533	2 1 3 - -	28,282 128,435 (276,835) (103,933) 4,541	- 2 (4) (1) -	220,781 292,832 637,675 (87,695) 24,998	1 2 4 - -	36,001 160,509 (234,380) (223,403) 8,439	- 1 (2) (1) -
		482,019	6	(219,510)	(3)	1,088,591	7	(252,834)	(2)
		2,658,181 (482,851)	32 (6)	1,376,913 (214,369)	21 (3)	4,787,448 (1,333,047)	31 (9)	2,647,533 (471,300)	21 (4)
		2,175,330 -	26 -	1,162,544 817,722	18 12	3,454,401 3,053,084	22 19	2,176,233 1,211,445	17 10
		2,175,330	26	1,980,266	30	6,507,485	41	3,387,678	27
		120,941 (24,189) (1,625,569) - 324,955	1 - (19) - 4	308,134 (61,627) 133,453 - (24,622)	5 (1) 2 - -	(300,725) 60,144 (900,527) 50,887 171,213	(2) - (5) - 1	618,165 (123,633) 670,203 - (123,159)	5 (1) 5 - (1)
		(1,203,862)	(14)	355,338	6	(919,008)	(6)	1,041,576	8
		$971,468	12	$2,335,604	36	$5,588,477	35	$4,429,254	35
		$2,175,244 86	26 -	$1,902,778 77,488	29 1	$6,465,472 42,013	41 -	$3,271,243 116,435	26 1
		$2,175,330	26	$1,980,266	30	$6,507,485	41	$3,387,678	27
		$972,176 (708)	12 -	$2,247,772 87,832	35 1	$5,547,004 41,473	35 -	$4,258,411 170,843	34 1
		$971,468	12	$2,335,604	36	$5,588,477	35	$4,429,254	35
		$1.78		$1.56		$5.29		$2.68
		$1.77		$1.55		$5.25		$2.66
		$1.78		$0.96		$2.82		$1.80
		$1.77		$0.96		$2.80		$1.79

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

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the six months ended June 30, 2025 and 2024

(Amounts in thousands of New Taiwan Dollars)

Description				Equity attributa	ble to owners of the parent company	ble to owners of the parent company				Non-controlling interests	Total Equity
	Capital stock			Retained earnings			Other equity		Equity attributable to owners of the parent company
	Common stock	Capital surplus	Legal reserve	Special reserve	Undistributed earnings	Exchange differences resulting from translating the financial statements of foreign operations	Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income	Equity directly associated with disposal group held for sale
Balance as of January 1, 2024 Appropriation and distribution of 2023 earnings: Legal reserve Cash dividends Profit for the six months ended June 30, 2024 Other comprehensive income for the six months ended June 30, 2024 Total comprehensive income Changes in ownership interests in subsidiaries Balance as of June 30, 2024 Balance as of January 1, 2025 Appropriation and distribution of 2024 earnings: Legal reserve Cash dividends Profit for the six months ended June 30, 2025 Other comprehensive income for the six months ended June 30, 2025 Total comprehensive income Disposal of subsidiaries Changes in ownership interests in subsidiaries Proceeds from disposal of equity instruments measured at fair value through other comprehensive income Balance as of June 30, 2025	$12,227,451 - - - - - - $12,227,451 $12,227,451 - - - - - - - - $12,227,451	$4,955,581 - - - - - 97,189 $5,052,770 $5,077,764 - - - - - - 3,185 - $5,080,949	$4,177,574 586,111 - - - - - $4,763,685 $4,763,685 779,660 - - - - - - - $5,543,345	$201,416 - - - - - - $201,416 $201,416 - - - - - - - - $201,416	$14,133,456 (586,111) (3,912,784) 3,271,243 - 3,271,243 - $12,905,804 $17,431,161 (779,660) (4,890,980) 6,465,472 - 6,465,472 - - 6,033 $18,232,026	$(456,084) - - - 492,636 492,636 - $36,552 $465,893 - - - (727,223) (727,223) (369,611) - - $(630,941)	$3,663,615 - - - 494,532 494,532 - $4,158,147 $3,525,741 - - - (240,581) (240,581) - - (6,033) $3,279,127	$- - - - - - - $- $(396,838) - - - 49,336 49,336 347,502 - - $-	$38,903,009 - (3,912,784) 3,271,243 987,168 4,258,411 97,189 $39,345,825 $43,296,273 - (4,890,980) 6,465,472 (918,468) 5,547,004 (22,109) 3,185 - $43,933,373	$1,123,541 - - 116,435 54,408 170,843 (84,349) $1,210,035 $1,415,210 - - 42,013 (540) 41,473 (1,448,602) 271 - $8,352	$40,026,550 - (3,912,784) 3,387,678 1,041,576 4,429,254 12,840 $40,555,860 $44,711,483 - (4,890,980) 6,507,485 (919,008) 5,588,477 (1,470,711) 3,456 - $43,941,725

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

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended June 30, 2025 and 2024

(Amounts in thousands of New Taiwan Dollars)

Description	Six Months Ended June 30	Six Months Ended June 30	Description	Six Months Ended June 30	Six Months Ended June 30
	2025	2024		2025	2024
Cash flows from operating activities : Profit before tax from continuing operations Profit before tax from discontinued operations Profit before tax Adjustments for : The profit or loss items which did not affect cash flows : Depreciation Amortization Expected credit losses Interest expenses Interest income Dividend income Share-based payment expenses Investment gain accounted for using the equity method Gain on disposal of property, plant and equipment Impairment of non-financial assets Gain on disposal of investments Unrealized foreign exchange (gains) losses Changes in operating assets and liabilities : Contract assets Accounts receivable Accounts receivable from related parties Other receivables Other receivables from related parties Inventories Prepayments Other current assets Contract liabilities Notes payable Accounts payable Accounts payable to related parties Other payables Other payables to related parties Other current liabilities Accrued pension liabilities Other operating liabilities Cash generated from operating activities Interest received Income tax paid Net cash provided by operating activities	$4,787,448 4,988,623 9,776,071 3,416,484 2,107 - 95,725 (223,206) (108,977) 3,456 (24,998) (311,501) - (4,457,091) (726,083) (134,521) (122,999) (117,870) (2,110,603) (6,717) (197,927) (657,313) 28,653 11,778 (6,616) (58,465) (6,613) 1,147,429 (20,296) (15,476) (146,868) (1,302) 5,026,261 228,063 (2,607,487) 2,646,837	$2,647,533 1,585,114 4,232,647 4,176,984 6,286 417 293,102 (71,368) (97,733) 33,317 (8,439) (14,435) 56,918 - 471,116 87,827 (911,774) (117,968) (214,912) 87,958 (15,585) (91,238) 7,431 (7,426) 24,255 33,159 1,538 328,511 (3,698) 200,426 (6,004) (4,226) 8,477,086 64,254 (373,471) 8,167,869	Cash flows from investing activities : Proceeds from disposal of financial assets at fair value through other comprehensive income Disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Acquisition of intangible assets Increase in other financial assets Decrease in other financial assets Dividends received Net cash provided by (used in) investing activities Cash flows from financing activities : Decrease in short-term loans Borrowing in long-term loans Repayments of long-term loans Increase in deposits received Decrease in deposits received Cash payments for the principal portion of the lease liabilities Interest paid Change in non-controlling interests Net cash used in financing activities Effect of changes in exchange rate on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Reconciliation of the amounts in the consolidated statements of cash flows with the equivalent items reported : Cash and cash equivalents in the consolidated balance sheets Cash and cash equivalents in disposal groups held for sale Cash and cash equivalents in the consolidated statements of cash flows	18,651,949 (16,267,414) 333,451 (23,152) (1,277) - 162 113,057 2,860,029 - 20,578,132 (23,865,477) 443 - (80,397) (95,574) - (3,462,873) (841,382) 1,202,611 13,602,621 $14,805,232 14,805,232 - $14,805,232 $53,253	- (5,423,510) 66,335 (2,489) (1,792) (591) - 48,293 (5,313,754) (187,697) 11,251,951 (12,763,692) - (27,560) (14,701) (288,192) (20,609) (2,050,500) (19,684) 783,931 12,262,554 $13,046,485 10,128,809 2,917,676 $13,046,485 $-

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

English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated)

1. Organization and Operation

King Yuan Electronics Co., Ltd. ("KYEC") was incorporated under the Company Law of the Republic of China (“R.O.C) on May 28, 1987, and commenced operations on July 23, 1987. The Company primarily engages in the business of design, manufacturing, selling, testing and assembly service of integrated circuits, and also engages in manufacturing and selling of IC Monitoring Burn-In machinery and related components. On May 9, 2001, the shares of KYEC were listed on the Taiwan Stock Exchange. KYEC’s registered office and the main business location is at No. 81, Sec. 2, Gongdaowu Road, Hsinchu City 300, Republic of China (R.O.C.).

2. Date and Procedures of Authorization of Financial Statements for Issue

The accompanying consolidated financial statements of KYEC and its subsidiaries (“the Company”) were approved and authorized for issue by the Board of Directors on August 8, 2025.

3. Newly Issued or Revised Standards and Interpretations

(1) Change in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time International Financial Reporting Standards (“IFRS”), International Accounting Standards (“IAS”), and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after January 1, 2025. The adoption of these new standards and amendments had no material impact on the Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which have been endorsed by FSC, and not yet adopted by the Company as at the date when the Company’s financial statements were authorized for issue, are listed below:
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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Items	New,Revised or Amended Standards and Interpretations	Effective Date Issued byIASB
A	IFRS 17 “Insurance Contracts”	January1,2023
B	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	January 1, 2026
C	Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026
D	Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7	January 1, 2026

(A) IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after January 1, 2023 (from the original effective date of January 1, 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after January 1, 2023.

(B) Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The amendments include:

(1) Clarify that a financial liability is derecognised on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.
(2) Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.
(3) Clarify the treatment of non-recourse assets and contractually linked instruments.
(4) Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESGlinked), and equity instruments classified at fair value through other comprehensive income.

(1) Amendments to IFRS 1
(2) Amendments to IFRS 7
(3) Amendments to Guidance on implementing IFRS 7
(4) Amendments to IFRS 9
(5) Amendments to IFRS 10
(6) Amendments to IAS 7
(D) Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7

The amendments include:

(1) Clarify the application of the ‘own-use’ requirements.
(2) Permit hedge accounting if these contracts are used as hedging instruments.
(3) Add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows.
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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The abovementioned standards and amendments are applicable for annual periods beginning on or after January 1, 2026 and have no material impact on the Company.

(3) Standards or interpretations issued, revised or amended, by IASB which have not been endorsed by FSC, and not yet adopted by the Company as at the date when the Company’s financial statements were authorized for issue, are listed below.

Items	New,Revised or Amended Standards and Interpretations	Effective Date Issued byIASB
A	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures(Amendment)	To be determined by IASB
B	IFRS 18 “Presentation and Disclosure in Financial Statements”	January1,2027
C	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures(IFRS 19)	January 1, 2027

(A) IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures (Amendment)

The amendments address the inconsistency between the requirements in IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures”, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(B) IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as below:

(1) Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

(2) Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

(3) Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

This standard permits subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the new or amended standards and interpretations listed under (B), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

4. Summary of Material Accounting Policies

(1) Statement of Compliance

The consolidated financial statements of the Company for the six-month periods ended June 30, 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and IAS 34 “Interim Financial Reporting” as endorsed and became effective by FSC.

(2) Basis of Preparation

The accompanying consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The accompanying consolidated financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Basis of Consolidation

Preparation principle of consolidated financial statement

Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has:

a. power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
b. exposure, or rights, to variable returns from its involvement with the investee; and
c. the ability to use its power over the investee to affect its returns.
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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

a. the contractual arrangement with the other vote holders of the investee;
b. rights arising from other contractual arrangements;
c. the Company’s voting rights and potential voting rights.

The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Subsidiaries are fully consolidated from the acquisition date, being the date on which the Company obtains control, and continue to be consolidated until the date the Company ceases to control the subsidiary. The financial statements of the subsidiaries are prepared for the same reporting period with the parent company, using consistent accounting policies. All intragroup balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

Total comprehensive income of the subsidiaries is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

If the Company loses control of a subsidiary, it:

a. derecognizes the assets (including goodwill) and liabilities of the subsidiary;
b. derecognizes the carrying amount of any non-controlling interest;
c. recognizes the fair value of the consideration received;
d. recognizes the fair value of any investment retained;
e. reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss, or transfer directly to retained earnings if required by other IFRSs; and
f. recognizes any resulting difference in profit or loss.
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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The consolidated entities are listed as follows:

Investor	Subsidiary	Business nature	Percentage of Ownership(%)	Percentage of Ownership(%)	Percentage of Ownership(%)
			2025.06.30	2024.12.31	2024.06.30
KYEC KYEC KYEC KYEC KYEC KYEC Investment International Co., Ltd. KYEC Technology Management Co., Ltd. KYEC Microelectronics Co., Ltd.	KYEC USA Corp. KYEC Investment International Co., Ltd. KYEC Technology Management Co., Ltd. KYEC Japan K.K. KYEC SINGAPORE PTE. Ltd. KYEC Microelectronics Co., Ltd. KYEC Microelectronics Co., Ltd. King Long Technology (Suzhou) Ltd.	Sales agent and business communication in USA General investing General investing Manufacturing and sales of electronic parts and components, sales agent and business communication in Japan Sales agent and business communication in Southeast Asia and Europe General investing General investing Research and development, design, manufacture, packaging, testing, processing and maintenance of semiconductor integrated circuits, transistors, electronic components, electronic materials, analog or hybrid automatic data processors, solid-state memory systems, heating ovens and related products and components. Integrated circuit related technology transfer, technical consultation, technical services, sales of self- produced products and provision of related after-sales services	100.00 100.00 - (Note 1) 89.83 100.00 - (Note 2) - (Note 2) - (Note 3)	100.00 100.00 100.00 89.83 100.00 94.02 5.98 92.16	100.00 100.00 100.00 89.83 100.00 94.02 5.98 92.16

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Investor	Subsidiary	Business nature	Percentage of Ownership(%)	Percentage of Ownership(%)	Percentage of Ownership(%)
			2025.06.30	2024.12.31	2024.06.30
King Long Technology (Suzhou) Ltd.	Suzhou Zhengkuan Technology Ltd.	R&D, production (package, testing), processing of large- scale integrated circuits for electronic components, electronic materials, analog or hybrid automatic data processors, solid-state memory systems, heating oven controllers, etc., sales of self- produced products, and provision of relevant after- sales service; integrated circuit related technology transfer, technical consultation, technical service	- (Note 3)	100.00	100.00

Note 1：On February 19, 2025, the Board of Directors of KYEC Technology Management Co., Ltd. resolved to discontinue operations, the related procedure are in progress as at June 30, 2025.
Note 2：On February 18, 2025, the Board of Directors of KYEC Microelectronics Co., Ltd. resolved to discontinue operations, the related procedure are in progress as at June 30, 2025.
Note 3：In order to meet the needs of future operational development and the long-term effective utilization of financial resources, the Board of Directors resolved to sell its entire 92.16% ownership interest in King Long Technology (Suzhou) Ltd., with the price of RMB$9.67 per registered capital unit which was previously owned by KYEC Microelectronics Co., Ltd., and the disposal of the assets and liabilities of King Long Technology (Suzhou) Ltd., was classified as a disposal group held for sale, which was presented as income (loss) from discontinued operations. As the settlement conditions were fulfilled, the settlement date was set on February 13, 2025, and the Company has disposed of its entire ownership interest in King Long Technology (Suzhou) Ltd.
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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The financial statements of certain insignificant subsidiaries were not reviewed by independent auditors. As of June 30, 2025 and 2024, the total assets of the subsidiaries which were unreviewed by auditors amounted to NT$141,738 thousand and NT$137,478 thousand, and total liabilities amounted to NT$19,219 thousand and NT$27,720 thousand, respectively. The comprehensive income of these subsidiaries amounts to NT$7,965 thousand, NT$5,895 thousand, NT$15,649 thousand and NT$11,462 thousand for the three-month and six-month periods ended June 30, 2025 and 2024, respectively.

(4) Except for the accounting policies Note 4. (5) and Note 4. (6), the same accounting policies have been followed in the consolidated financial statements for the six-month periods ended June 30, 2025 and 2024 as were applied in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2024. For the summary of other significant accounting policies, please refer to the consolidated financial statements for the year ended December 31, 2024.

(5) Post-employment benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted and disclosed for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(6) Income taxes

Interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period. The estimated average annual effective income tax rate only includes current income tax. The recognition and measurement of deferred tax follows annual financial reporting requirements in accordance with IAS 12. The Company recognizes the effect of change in tax rate for deferred taxes in full if the new tax rate is enacted by the end of the interim reporting period, by charging to profit or loss, other comprehensive income, or directly to equity.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. Significant Accounting Judgments, Estimates and Assumptions

The same significant accounting judgments, estimates and assumptions have been followed in the consolidated financial statements for the six-month periods ended June 30, 2025 and 2024 as were applied in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2024. Please refer to the consolidated financial statements for the year ended December 31, 2024.

6. Contents of Significant Accounts

(1) Cash and cash equivalents

Cash on hand Checking and savings accounts Time deposits Total	June 30, 2025	December 31, 2024	June 30, 2024
	$1 5,965,159 8,840,072	$1 8,729,330 1,600,000	$1 7,228,808 2,900,000
	$14,805,232	$10,329,331	$10,128,809

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

Equity instrument investments measured at fair value through other comprehensive income- non-current Listed company’s stocks Unlisted company’s stocks Total	June 30, 2025	December 31, 2024	June 30, 2024
	$31,409 5,983,950	$39,369 6,329,968	$48,444 7,111,402
	$6,015,359	$6,369,337	$7,159,846

The Company has equity instrument investments measured at fair value through other comprehensive income. Details on dividends recognized for the six months ended June 30, 2025 and 2024 are as follows:

Dividends revenue related to investments held at the end of the reporting period	Six months ended June 30	Six months ended June 30
	2025	2024
	$108,977	$97,733

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Financial assets at fair value through other comprehensive income were not pledged.

(3) Trade receivables and trade receivables from related parties

June 30, 2025	December 31, 2024	June 30, 2024
$4,169,753 (13,107)	$4,063,820 (13,107)	$4,012,515 (13,107)
4,156,646	4,050,713	3,999,408
2,073,638 -	1,980,803 -	2,010,546 -
2,073,638	1,980,803	2,010,546
$6,230,284	$6,031,516	$6,009,954

No trade receivables were pledged.

The receivables are generally on 30 to 120 days terms. Please refer to Note 6. (16) for more details on loss allowance of trade receivables for the six months ended June 30, 2025 and 2024. Please refer to Note 12 for more details on credit risk.

(4) Inventories

Raw materials Work in progress Finished goods Total	June 30, 2025	December 31, 2024	June 30, 2024
	$658,464 341,951 -	$559,046 289,069 -	$671,159 242,507 -
	$1,000,415	$848,115	$913,666

The cost of inventories recognized in operation costs for the three months ended June 30, 2025 and 2024 amounted to NT$5,390,307 thousand and NT$4,235,853 thousand, respectively, and the cost of inventories does not include the write-down of inventories.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The cost of inventories recognized in operations costs for the six months ended June 30, 2025 and 2024 amounted to NT$10,255,424 thousand and NT$8,240,308 thousand, respectively, including the write-down of inventories for the six months ended June 30, 2025 and 2024 amounted to NT$0 thousand and NT$1,550 thousand, respectively.

No inventories were pledged.

(5) Prepayments

Prepaid equipment Prepaid expenses Input tax Total	June 30, 2025	December 31, 2024	June 30, 2024
	$102,622 18,670 872,312	$46,388 58,470 114,540	$13,381 15,911 139,438
	$993,604	$219,398	$168,730

(6) Disposal group held for sale

A. Discontinued operations

On April 26, 2024, the Board of Directors of the Company resolved to sell its entire 92.16% ownership interest in King Long Technology (Suzhou) Ltd., with the price of RMB$9.67 per registered capital unit, which was previously owned by KYEC Microelectronics Co., Ltd., to Suzhou Industrial Park Industrial Investment Fund (L.P.) and other companies, and the total transaction amount is RMB$ 4,884,582 thousand. As the settlement conditions were fulfilled, the settlement date was set on February 13, 2025, and the Company has disposed of its entire ownership interest in King Long Technology (Suzhou) Ltd. Please refer to Note 6. (24) for detailed information relating to the disposal.

The above transactions met the criteria of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”. Therefore, the gain (loss) on disposal of King Long Technology (Suzhou) Ltd., was presented as income (loss) from discontinued operations.

The details of profit (loss) from discontinued operations and the related cash flow information are as follows:

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 1, 2025 to February13,2025	April 1, 2024 to June 30,2024	January 1, 2024 to June 30,2024
$985,800 (327,499)	$2,492,130 (1,135,688)	$4,729,675 (2,617,856)
658,301 (2,658) (32,432) (33,894) -	1,356,442 (9,379) (123,444) (126,655) (244)	2,111,819 (18,395) (276,046) (264,805) (417)
589,317 2,425 (29,806) 3,521 (8,030)	1,096,720 16,970 (23,725) (3,693) (32,164)	1,552,156 35,367 69,127 (1,837) (69,699)
557,427 (122,507)	1,054,108 (236,386)	1,585,114 (373,669)
434,920 4,431,196 (1,813,032)	817,722 - -	1,211,445 - -
$3,053,084	$817,722	$1,211,445

Net cash provided by operating activities Net cash used in investing activities Net cash provided by (used in) financing activities Effect of changes in exchange rate on cash and cash equivalents Net cash outflow	January 1, 2025 to February13,2025	January 1, 2024 to June 30,2024
	$94,931 (399,785) 2,270 3,130	$2,361,992 (2,231,174) (479,501) (13,339)
	$(299,454)	$(362,022)

Please refer to Note 6. (24) for the carrying amounts of assets and liabilities of the discontinued operation at the date of disposal.

B. Disposal group held for sale

Assets of disposal group held for sale Liabilities directly associated with disposal group held for sale	December 31, 2024	June 30, 2024
	$25,387,003	$22,161,054
	$7,253,301	$6,828,535

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

On April 26, 2024, the Board of Directors resolved to sell its entire 92.16% ownership in King Long Technology (Suzhou) Ltd., the details of related assets and liabilities held for sale were as follows:

December 31, 2024 Assets of disposal group held for sale Cash and cash equivalents $3,273,290 Contract asset-current 1,806 Accounts receivable, net 2,588,249 Accounts receivable from related parties, net 80,601 Other receivables 35,253 Inventories, net 170,033 Prepayments 669,633 Other financial assets-current 4 Property, plant and equipment 18,490,121 Right-of-use assets 173,206 Intangible assets 1,209 Other financial assets-non-current 3,591 Consolidation write-off (99,993) Total $25,387,003 Liabilities directly associated with disposal group held for sale Short-term loans $- Contract liabilities-current 8,032 Accounts payable 1,080,895 Accounts payable to related parties 201,863 Other payables 540,063 Other payables to related parties 75,031 Payables on equipment 270,549 Current tax liabilities 102,554 Current portion of long-term loans 1,106,114 Other current liabilities 2,395 Long-term loans 3,989,575 Deferred tax liabilities 94,967 Long-term deferred income 58,157 Consolidation write-off (276,894) Total $7,253,301	December 31, 2024	June 30,2024
	$3,273,290 1,806 2,588,249 80,601 35,253 170,033 669,633 4 18,490,121 173,206 1,209 3,591 (99,993)	$2,917,676 - 2,409,956 80,558 35,313 174,670 394,267 4 16,075,728 172,915 1,206 2,993 (104,232)
	$25,387,003	$22,161,054
		$43,396 1,940 560,619 - 330,921 87,724 96,507 79,373 789,691 - 4,755,477 104,820 65,791 (87,724)
Short-term loans Contract liabilities-current Accounts payable Accounts payable to related parties Other payables Other payables to related parties Payables on equipment Current tax liabilities Current portion of long-term loans Other current liabilities Long-term loans Deferred tax liabilities Long-term deferred income Consolidation write-off Total
	$7,253,301	$6,828,535

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The sales proceeds of the disposal were expected to exceed the carrying amount of the related net assets, no impairment losses were recognized on the classification of these operations as disposal group held for sale.

(7) Investments accounted for using the equity method

	June 30,2025	June 30,2025	December 31,2024	December 31,2024	June 30,2024	June 30,2024
	Carrying amount	Percentage of ownership	Carrying amount $65,389 34,338 $99,727	Percentage of ownership	Carrying amount	Percentage of ownership
Fixwell Technology Corp. Wei Jiu Industrial Co., Ltd. Total	$85,658 34,987	23.33% 34.00%		23.33% 34.00%	$68,654 30,707	23.33% 34.00%
	$120,645				$99,361

The Company’s investments in Fixwell Technology Corp. and Wei Jiu Industrial Co., Ltd. are not individually material. The summarized financial information of the Company’s ownership in those associates is as follows:

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$16,533 -	$4,541 -	$24,998 -	$8,439 -
$16,533	$4,541	$24,998	$8,439

The investments mentioned above were not pledged.

Those associates under the equity method amounted to NT$120,645 thousand and NT$99,361 thousand as of June 30, 2025 and 2024, respectively, and the related shares of gain from the associates under the equity method amounted to NT$16,533 thousand, NT$4,541 thousand, NT$24,998 thousand and NT$8,439 thousand for the three months and six months ended June 30, 2025 and 2024, respectively. The information related to above associates accounted for under the equity method was not reviewed by independent auditors.

(8) Property, plant and equipment

Owner occupied property, plant and equipment Property, plant and equipment leased out under operating leases Total	June 30, 2025	December 31, 2024	June 30, 2024
	$48,385,210 95,462	$34,815,074 108,697	$31,245,138 134,480
	$48,480,672	$34,923,771	$31,379,618

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

A. Owner occupied property, plant and equipment

Land	Buildings and facilities	Plant equipment	Machinery and equipment	Office equipment	Transportation equipment	Other equipment	Leasehold improvements	Construction in progress and equipment awaiting examination	Total
$2,005,519 - - - - -	$5,243,589 130 - (15,210) - (20)	$13,156,483 270,083 (4,286) 155,605 - -	$89,038,286 12,757,501 (889,242) 378,616 (2,838,595) (50)	$803,909 47,713 (160) - - (210)	$66,388 15,258 (8,686) - - -	$5,808,312 864,442 (3,044) 29,976 - (105)	$4,425 - - 13,287 - -	$1,712,744 3,084,721 - (593,317) - -	$117,839,655 17,039,848 (905,418) (31,043) (2,838,595) (385)
$2,005,519	$5,228,489	$13,577,885	$98,446,516	$851,252	$72,960	$6,699,581	$17,712	$4,204,148	$131,104,062
$1,660,897 4,513 - - - -	$7,183,637 70,643 - (21,363) (2,085,421) 96,068	$12,456,030 100,821 (58,470) 1,225,721 (1,508,014) 72,651	$105,279,197 4,584,769 (1,411,409) 578,105 (22,205,406) 975,151	$894,583 22,873 (134,194) 5,770 (91,377) 4,517	$72,313 4,261 (3,367) - (7,167) 349	$6,668,983 258,994 (67,640) 37,622 (1,819,807) 84,805	$4,425 - - - - -	$2,551,915 1,722,597 (35,101) (1,935,543) (1,278,747) 47,768	$136,771,980 6,769,471 (1,710,181) (109,688) (28,995,939) 1,281,309

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Land	Buildings and facilities	Plant equipment	Machinery and equipment	Office equipment	Transportation equipment	Other equipment	Leasehold improvements	Construction in progress and equipment awaiting examination	Total
$- - - - - -	$2,010,051 82,538 - (12,298) - (20)	$7,924,882 339,180 (4,286) - - -	$68,447,586 2,648,145 (775,574) 33,831 (2,847,133) (49)	$557,279 36,200 (160) - - (203)	$47,502 2,722 (8,686) - - -	$4,033,004 203,064 (3,043) - - (105)	$4,277 148 - - - -	$- - - - - -	$83,024,581 3,311,997 (791,749) 21,533 (2,847,133) (377)
$-	$2,080,271	$8,259,776	$67,506,806	$593,116	$41,538	$4,232,920	$4,425	$-	$82,718,852
$- - - - - - -	$2,584,945 116,326 - (16,313) - (794,678) 36,964	$8,006,285 338,688 (58,470) - - (708,578) 34,037	$76,559,881 3,444,432 (1,392,884) (113,282) 56,918 (10,258,697) 469,322	$683,914 31,087 (134,194) 154 - (54,284) 2,675	$49,405 3,137 (3,367) - - (4,676) 224	$4,890,353 204,755 (67,640) - - (1,205,356) 56,675	$3,835 221 - - - - -	$- - - - - - -	$92,778,618 4,138,646 (1,656,555) (129,441) 56,918 (13,026,269) 599,897
$-	$1,927,244	$7,611,962	$68,765,690	$529,352	$44,723	$3,878,787	$4,056	$-	$82,761,814
$2,005,519	$3,148,218	$5,318,109	$30,939,710	$258,136	$31,422	$2,466,661	$13,287	$4,204,148	$48,385,210
$2,005,519	$3,233,538	$5,231,601	$20,590,700	$246,630	$18,886	$1,775,308	$148	$1,712,744	$34,815,074
$1,665,410	$3,316,320	$4,676,777	$19,034,717	$172,820	$21,666	$1,284,170	$369	$1,072,889	$31,245,138

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

B. Property, plant and equipment leased out under operating leases

Buildings and facilities	Machinery and equipment	Total
$289,488 - - 15,210 -	$303,216 - - (40,400) -	$592,704 - - (25,190) -
$304,698	$262,816	$567,514
$276,979 - - 21,363 (9,299) 445	$329,681 - - 118,765 - -	$606,660 - - 140,128 (9,299) 445
$289,488	$448,446	$737,934
$219,775 4,915 - 12,298 -	$264,232 4,663 - (33,831) -	$484,007 9,578 - (21,533) -
$236,988	$235,064	$472,052
$201,112 4,631 - 16,313 (7,297) 347	$258,444 16,622 - 113,282 - -	$459,556 21,253 - 129,595 (7,297) 347
$215,106	$388,348	$603,454
$67,710	$27,752	$95,462
$69,713	$38,984	$108,697
$74,382	$60,098	$134,480

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

C. Capitalized borrowing costs of property, plant and equipment are as follows:

Construction in progress Capitalization rate of borrowing costs	Six months ended June 30	Six months ended June 30
	2025	2024
	$143,887 2.25~3.31%	$64,259 2.89~3.67%

D. The investing activities partially influenced the cash flow are as follows:

Acquisition of property, plant and equipment - continuing operations Acquisition of property, plant and equipment - discontinued operations Net increase in payables to equipment suppliers Net decrease (increase) in other payables - related parties Total Disposal of property, plant and equipment - continuing operations Disposal of property, plant and equipment - discontinued operations Net increase in other receivables Total	Six months ended June 30	Six months ended June 30
	2025	2024
	$17,039,848 598,429 (1,371,428) 565	$6,769,471 - (1,339,488) (6,473)
	$16,267,414	$5,423,510
	Six months ended June 30
	2025	2024
	$401,516 10,775 (78,840)	$68,061 - (1,726)
	$333,451	$66,335

E. As of June 30, 2024, the Company recognized an impairment loss of NT$ 56,918 thousand, for certain machinery and equipment which were either damaged or idle and could no longer be used. No such transaction occurred in 2025.

F. Please refer to Note 8 for property, plant and equipment under pledges.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(9) Intangible assets

Cost: As of January 1, 2025 Additions from acquisitions Disposals Exchange differences As of June 30, 2025 As of January 1, 2024 Additions from acquisitions Disposals Reclassification to group held for sale Exchange differences As of June 30,2024 Amortization and impairment: As of January 1, 2025 Amortization Disposals Exchange differences As of June 30,2025 As of January 1, 2024 Amortization Disposals Reclassification to group held for sale Exchange differences As of June 30,2024 Net carrying amount as of: June 30, 2025 December 31, 2024 June 30, 2024	Software
	$122,199 1,277 (21,315) -
	$102,161
	$198,667 1,792 (24,755) (60,953) 2,908
	$117,659
	$114,696 2,107 (21,315) -
	$95,488
	$185,496 6,286 (24,755) (59,747) 2,843
	$110,123
	$6,673
	$7,503
	$7,536

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Amortization expenses of intangible assets recognized are as follows:

Three months ended June 30	Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024		2025		2024
$177 902 -	$1,507 772 -		$375 1,732 -		$3,952 2,035 -
1,079 -	2,279 66		2,107 -		5,987 299
$1,079	$2,345		$2,107		$6,286
					June 30, 2024
$118,708 1,240,802 39,967		$278,768 1,131,287 2,503			$551,533 741,702 4,023
$1,399,477		$1,412,558		$1,297,258

(10) Other current liabilities

- (11) Long term borrowings

As of June 30, 2025

Lenders	Nature	Maturity Date	Balance	Terms of repayment
Mega Bank Cathay United Bank	Unsecured bank loans Unsecured bank loans	2026.12.28 2027.09.24	$761,800 1,758,000	Revolving Credit Revolving Credit

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Lenders	Nature	Maturity Date	Balance	Terms of repayment
HSBC Taiwan Bank Bank of China Shanghai Commercial Bank Taiwan Business Bank Land Bank of Taiwan First Bank Yuanta Commercial Bank Yuanta Commercial Bank Yuanta Commercial Bank Yuanta Commercial Bank Yuanta Commercial Bank Taipei Fubon Commercial Bank	Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans	2027.09.30 2026.10.07 2027.03.10 2027.04.30 2027.03.04 2029.08.23 2027.08.20 2028.03.02 2027.10.11 2028.08.30 2029.03.28 2029.10.31	1,500,000 293,000 937,600 615,300 937,600 2,000,000 1,000,000 1,500,000 876,322 721,348 249,064 400,000	Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit 50% of principal will be repaid on April 11, 2027. The remaining principal will be repaid on maturity day. 50% of principal will be repaid on February 29, 2028. The remaining principal will be repaid on maturity day. 50% of principal will be repaid on September 28, 2028. The remaining principal will be repaid on maturity day. Repayable in 25 monthly instalments from November 1, 2027.

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KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

English Translation of Financial Statements Originally Issued in Chinese

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Lenders	Maturity Date	Balance	Terms of repayment
Bank of Taiwan and 14 others (Note) Mortgage bank loans Bank of Taiwan and 14 others (Note) Commercial paper loans Subtotal Less:current portion Less:arrangement fee Less:unamortized discount Total Interest Rates	2029.05.06 2029.05.06	50,000 3,000,000	25% of principal will be repaid on November 6, 2027. The remaining principal will be repaid on maturity day. Revolving credit. Renewable every three months. Credit has not been fully utilized.
		16,600,034 - (23,520) (8,620)
		$16,567,894
		1.50%~4.87%

As of December 31, 2024

Lenders	Nature	Maturity Date	Balance	Terms of repayment
Shanghai Commercial Bank Bank of China Cathay United Bank HSBC Taiwan Bank Mizuno Bank Land Bank of Taiwan CTBC Bank	Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans	2027.03.10 2026.10.07 2027.09.24 2027.09.30 2026.01.01 2026.01.25 2026.08.31	$1,049,120 885,195 991,775 917,980 900,000 98,355 1,900,000	Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Lenders	Nature	Maturity Date	Balance	Terms of repayment
Taipei Fubon Commercial Bank Bank of Communications Mega Bank Mega Bank Far Eastern Bank Yuanta Commercial Bank Yuanta Commercial Bank Yuanta Commercial Bank First Bank Taipei Fubon Commercial Bank Cathay United Bank Bank of Taiwan and 15 others (Note)	Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Mortgage bank loans	2027.10.25 2026.05.08 2026.12.28 2028.03.15 2027.06.20 2027.08.20 2027.10.11 2028.08.30 2029.08.09 2029.10.31 2027.09.24 2028.04.06	1,000,000 300,000 163,925 1,400,000 1,200,000 1,000,000 980,553 807,147 1,000,000 400,000 351,065 200,000	Revolving Credit Revolving Credit Revolving Credit Repay at maturity Repay at maturity Revolving Credit 50% of principal will be repaid on April 11, 2027. The remaining principal will be repaid on maturity day. 50% of principal will be repaid on February 29, 2028. The remaining principal will be repaid on maturity day. Repayable in 5 semi-annual instalments from February 9, 2027 after the grace period of 2.5 years. Repayable in 25 monthly instalments from November 1, 2027. 50% of principal will be repaid on March 24, 2027. The remaining principal will be repaid on maturity day. 25% of principal will be repaid on October 6, 2026. The remaining principal will be repaid on maturity day.

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KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

English Translation of Financial Statements Originally Issued in Chinese

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Lenders	Maturity Date	Balance	Terms of repayment
Bank of Taiwan and 15 others (Note) Commercial paper loans Bank of Taiwan and 14 others (Note) Mortgage bank loans Subtotal Less: current portion Less: arrangement fee Less: unamortized discount Total Interest Rates	2028.04.06 2029.05.06	5,000,000 50,000	Revolving credit. Renewable every three months. Credit has not been fully utilized. 25% of principal will be repaid on November 6, 2027. The remaining principal will be repaid on maturity day.
		20,595,115 - (9,600) (4,802)
		$20,580,713
		1.50%~5.61%

As of June 30, 2024

Lenders	Nature	Maturity Date	Balance	Terms of repayment
Shanghai Commercial Bank Standard Chartered Bank Cathay United Bank HSBC Taiwan Bank Bank of China Land Bank of Taiwan Shin Kong Commercial Bank Bank of Taiwan	Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans	2027.03.10 2026.06.30 2025.12.25 2026.09.30 2025.10.14 2026.01.25 2026.09.27 2025.10.13	$1,038,400 649,000 486,750 1,005,950 129,800 497,350 450,000 150,000	Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit Revolving Credit

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Lenders	Nature	Maturity Date	Balance	Terms of repayment
SinoPac Bank E. Sun Bank Taishin Bank Mega Bank Mega Bank Mega Bank Far Eastern Bank Yuanta Commercial Bank Taipei Fubon Commercial Bank Taipei Fubon Commercial Bank Bank of Taiwan and 15 others (Note)	Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Unsecured bank loans Mortgage bank loans	2026.04.30 2025.12.14 2028.06.28 2025.12.28 2028.03.15 2028.03.15 2027.06.20 2027.10.11 2026.05.12 2026.04.25 2028.04.06	200,000 300,000 1,200,000 662,250 48,276 1,400,000 1,200,000 934,892 250,000 750,000 200,000	Revolving Credit Revolving Credit Revolving Credit Revolving Credit 50% of principal will be repaid on September 15, 2025. The remaining principal will be repaid on maturity day. Repay at maturity Repay at maturity 50% of principal will be repaid on April 11, 2027. The remaining principal will be repaid on maturity day. 50% of principal will be repaid on November 12, 2025. The remaining principal will be repaid on maturity day. 50% of principal will be repaid on October 25, 2025. The remaining principal will be repaid on maturity day. 25% of principal will be repaid on October 6, 2026. The remaining principal will be repaid on maturity day.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Lenders	Maturity Date	Balance	Terms of repayment
Bank of Taiwan and 15 others (Note) Commercial paper loans Bank of Taiwan and 14 others (Note) Mortgage bank loans Subtotal Less:current portion Less:arrangement fee Less:unamortized discount Total Interest Rates	2028.04.06 2029.05.06	5,000,000 50,000	Revolving credit. Renewable every three months. Credit has not been fully utilized. 25% of principal will be repaid on November 6, 2027. The remaining principal will be repaid on maturity day.
		16,602,668 - (10,800) (1,602)
		$16,590,266
		1.82%~6.08%

Note:

A. Certain property, plant and equipment were pledged. Please refer to Note 8 for more details.

B. Please refer to Note 9 for the financial covenants during the loan period.

(12) Post-employment benefits

Defined contribution plan

Pension expenses under the defined contribution plan for the three months ended June 30, 2025 and 2024 were NT$52,769 thousand and NT$48,246 thousand, respectively. Pension expenses under the defined contribution plan for the six months ended June 30, 2025 and 2024 were NT$104,760 thousand and NT$96,231 thousand, respectively.

Defined benefit plan

Pension expenses under the defined benefits plan are as follows:

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$8,196 236 624 476	$5,749 236 520 396	$15,209 507 1,180 909	$11,327 473 1,014 779
$9,532	$6,901	$17,805	$13,593

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(13) Equity

A. Share capital

As of June 30, 2025, December 31, 2024 and June 30, 2024, KYEC’s authorized share capital was NT$15,000,000 thousand; issued share capital was NT$12,227,451 thousand (1,222,745 thousand shares), with par value of NT$10 per share. Each share has one voting right and a right to receive dividends.

B. Capital surplus

Additional paid-in capital Arising from conversion of bonds Treasury share transactions Arising from the exercise of employee restricted shares Changes in ownership interests in subsidiaries Total	June 30, 2025	December 31, 2024	June 30, 2024
	$561,119 3,588,848 390,101 30,755 510,126	$557,934 3,588,848 390,101 30,755 510,126	$532,940 3,588,848 390,101 30,755 510,126
	$5,080,949	$5,077,764	$5,052,770

According to the Company Act, the capital surplus shall not be used except for offset the deficit of the company. When a company incurs no loss, it may distribute the capital surplus generated from the excess of the issuance price over the par value of share capital and donations. The distribution could be made in cash to its shareholders in proportion to the number of shares being held by each of them.

C. Retained earnings and dividend policy

According to KYEC’s Articles of Incorporation, net profits for each fiscal year, if any, shall be distributed in following order:

a. reserve for tax payments;
b. offset prior year’s losses;
c. set aside 10% of the remaining amount after deducting items (a) and (b) as legal reserve;
d. set aside or reverse special reserve in accordance with law and regulations; and
e. the distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders’ meeting.
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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The policy of dividend distribution should reflect factors such as the current and future investment environment, fund requirements, domestic and international competition and capital budgets; as well as the interest of the shareholders, share bonus equilibrium and long-term financial planning, etc. The Board of Directors shall make the distribution proposal annually and present it at the shareholders’ meeting. As the Company currently is still in the growth stage, funding may be required in the near future for expansion. Therefore, the current policy is to distribute cash dividends at no less than 20% of total dividends to be distributed.

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total authorized capital. The legal reserve can be used to offset the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal reserve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

Pursuant to existing regulations, the Company is required to set aside additional special reserve equivalent to the net debit balance of the other components of shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed.

Following the adoption of TIFRS, the FSC on April 6, 2012 issued Order No. FinancialSupervisory-Securities-Corporate-1010012865, which sets out the following provisions for compliance:

On a public company's first-time adoption of the TIFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded in shareholders’ equity that the Company elects to transfer to retained earnings by application of the exemption under IFRS 1, the Company shall set aside an equal amount of special reserve. Following a company’s adoption of the TIFRS for the preparation of its financial reports, when distributing distributable earnings, it shall set aside to special reserve, from the profit/loss of the current period and the undistributed earnings from the previous period, an amount equal to “other net deductions from shareholders’ equity” for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements in the preceding point, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of June 30, 2025 and 2024, special reserve set aside for the first-time adoption of TIFRS amounted to NT$201,416 thousand.

The appropriations for earnings for 2023 were resolved by the shareholders in its meeting on May 31, 2024, while the proposed appropriation of earnings for 2024 were resolved by the shareholders in its meeting on May 27, 2025. The appropriations and dividends per share were as follows:

Legal reserve Cash dividends-common stock	Appropriation of earnings	Appropriation of earnings	Dividendper share(NT$)	Dividendper share(NT$)
	2024	2023	2024	2023
	$779,660 4,890,980	$586,111 3,912,784	$4.00	$3.20

Please refer to Note 6. (18) for information regarding the employees’ compensation (bonuses) and remuneration to directors.

D. Non-controlling interests

Beginning balance Net gain attributable to non-controlling interests Other comprehensive income, attributable to non- controlling interests, net of tax: Exchange differences resulting from translating the financial statements of foreign operations Changes in ownership interests in subsidiaries Disposal of subsidiaries Ending balance	Six months ended June 30	Six months ended June 30
	2025	2024
	$1,415,210 42,013 (540) 271 (1,448,602)	$1,123,541 116,435 54,408 (84,349) -
	8,352	$1,210,035

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(14) Share-based payment plans

Certain employees of the Company are entitled to share-based payment awards as part of their remuneration. Services are provided by the employees in return for the equity instruments granted. These plans are accounted for as equity-settled share-based payment transactions.

Restricted stocks plan for employees of subsidiaries

A. On September 28, 2022, the Board of Directors of King Long Technology (Suzhou) Ltd., (“King Long”) resolved to issue restricted stocks of 5,461,000 units to qualified employees with exercise price of RMB$1 per unit. Restrictions and vesting conditions of restricted stocks for employees are as follows:
(a)To issue registered capital of King Long with each unit.
(b)After the grant date, employee’s shall remain employed by the Company for at least 5 years and achieve the specified personal performance goals during the vesting period. Restricted stocks will vest by 40%, 70%, 90%, 97%, and 100% on the first, second, third, forth and fifth anniversary after the grant date, respectively. In addition to the shares vested as mentioned above, the unvested portions will be purchased back by King Long when employees have not remained employed by the Company for at least 5 years.
(c)During the vesting period, employees may not sell, pledge, transfer, give to another person, create any encumbrance on, or otherwise dispose of, restricted employee stocks, excluding inheritance.
(d)The voting rights of restricted stocks shall be exercised by a trust or a centralized custodian institution in accordance with the contract.
(e)The fair value information of restricted stocks for employees is as follows:

Grant date	Cut-off date of lock-up period	Total units of restricted stocks issued	Total unit outstanding	Fair value per unit
2022.10.08	2027.10.07	5,461,000	3,826,000	CNY$10.54

As of December 31, 2023, total outstanding units were 5,461,000 shares, and the cancellation of 1,635,000 shares retrieved back from those employees who resigned was completed in January 2024. Accordingly, total outstanding units as of settlement date on February 13, 2025 were 3,826,000 shares.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The compensation cost was recognized under the fair value method and the BlackScholes Option Pricing model was used to estimate the fair value of options granted. The estimated compensation expenses amounted to NT$160,921 thousand in total based on the vesting conditions and will be recognized during the vesting period.

Assumptions used in calculating the fair value are disclosed as follows:

Expected volatility (%) Risk free interest rate (%) Expected life (Years)	Restricted stocks for employees
	30.67% 1.78% 5 years

The expected life of the restricted stocks is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the restricted stocks is indicative of future trends, which may also not necessarily be the actual outcome.

B. On May 17, 2021, the Board of Directors of King Long Technology (Suzhou) Ltd., (“King Long”) resolved to issue restricted stocks of 12,502,187 units and 22,282,749 units to qualified employees with exercise price of RMB$4.18 and RMB$7.42 per unit, respectively. Restrictions and vesting conditions of restricted stocks for employees are as follows:
(a)To issue registered capital of King Long with each unit.
(b)During the vesting period, employees may not sell, pledge, transfer, give to another person, create any encumbrance on, or otherwise dispose of, restricted employee stocks, excluding inheritance.
(c)The voting rights of restricted stocks shall be exercised by a trust or a centralized custodian institution in accordance with the contract.
(d)Employee's continuous employment with King Long through the vesting dates, with no violation on any terms of the King Long’s employment agreement, employee policies, are eligible to receive the vested shares.
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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(e)The fair value information of restricted stocks for employees is as follows:

Grant date	Cut-off date of lock-up period	Total units of restricted stocks issued	Total unit outstanding	Fair value per share
2021.05.20	2026.05.19	34,784,936	32,723,904	CNY$7.38

As of December 31, 2023, total outstanding units were 34,784,936 shares, and the cancellation of 2,061,032 shares retrieved back from those employees who resigned was completed in January 2024. Accordingly, total outstanding units as of settlement date on February 13, 2025 were 32,723,904 shares.

The compensation cost was recognized under the fair value method and the BlackScholes Option Pricing model was used to estimate the fair value of options granted. The estimated compensation expenses amounted to NT$118,326 thousand in total based on the vesting conditions and will be recognized during the vesting period.

Assumptions used in calculating the fair value are disclosed as follows:

Expected volatility (%) Risk free interest rate (%) Expected life (Year)	Restricted stocks for employees
	44.88% 0.08% 5 years

Share-based compensation expenses recognized for employee services received are shown in the following table:

Restricted stocks for employees	Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
	2025	2024	2025	2024
	$-	$16,901	$3,456	$33,317

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company did not modify or cancel any share-based payment plans for the six months ended June 30, 2025 and 2024 expect for the completion of cancellation of the abovementioned outstanding units for those employees who resigned.

The Company has issued the restricted stocks plan for employees with grant dates prior to October 10, 2024. According to the Q&A issued by Financial Supervisory Commission, there is no need to retroactively apply the Q&A “Restricted stocks plan for employees” issued by Accounting Research and Development Foundation. Therefore, the original accounting treatment remains applicable.

(15) Operating revenue

A. The summary of operating revenue from continuing operations are as follows. Please refer to Note 6. (6) for discontinued operations information.

Nature of revenue	Timing of revenue recognition	Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
		2025	2024	2025	2024
Assembly and testing processing revenue Revenue from rental of machinery Rental income from property Other operating revenue Total revenue	Over time Over time On a straight- line basis or on a systematic basis (Note) At a point in time	$7,357,078 699,811 11,846 293,139	$5,441,585 732,989 23, 121 345,511	$13,846,183 1,270,145 27,250 533,786	$10,363,284 1,429,126 39,818 688,151
		$8,361,874	$6,543,206	$15,677,364	$12,520,379

Note: Please refer to Note 6. (17) for information regarding leases.

B. Contract balances

(a) Contract assets – current

Nature of revenue	June 30, 2025	December 31, 2024	June 30, 2024	January 1, 2024
Rendering of services	$102,145	$90,414	$327,056	$414,883

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Please refer to Note 6. (16) for more details on effect of impairment. Relevant information of revenue from contracts with customers for the six months ended June 30, 2025 and 2024 are as follows:

The opening balance transferred to trade receivables Change in completion measurement	Six months ended June 30	Six months ended June 30
	2025	2024
	$90,414	$414,883
	$102,145	$327,056

(b) Contract liabilities - current

Nature of revenue	June 30, 2025	December 31, 2024	June 30, 2024	January 1, 2024 $9,365
Assembly and testing processing revenue	$-	$-	$-

The difference of the six months ended June 30, 2024 is the net effect of the performance obligations completed during the period and the new contracts not yet performed as of the balance sheet date.

(16) Expected credit losses

Operating expenses - expected credit losses (gains)

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$- - - -	$- - - -	$- - - -	$- - - -
- -	- (244)	- -	- (417)
$-	$(244)	$-	$(417)

Please refer to Note 12 for more details on credit risk.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company measures the loss allowance of its contract assets and receivables (including notes receivable and trade receivables) at an amount equal to lifetime expected credit losses. The assessment of the Company’s loss allowance as of June 30, 2025 and 2024 are as follows:

A. The gross carrying amount of contract assets is NT$102,145 thousand and NT$327,056 thousand, respectively. Expected credit loss ratio is estimated to be 0%.
B. The Company considers the grouping of trade receivables by counterparties’ credit ratings, geographical regions and industry sectors. Loss allowance is measured by using a provision matrix. Details are as follows:

As of June 30, 2025

Group1	Not yet due (Note)		Overdue	Overdue		Total
		1-90 days	91-180 days	181-365 days	>366 days
Gross carrying amount Loss ratio Lifetime expected credit losses Subtotal Group2	$6,190,905 -%	$51,261 -%	$899 1%	$84 2%	$- 5%	$6,243,149 (12,865)
	(12,855)	-	(9)	(1)	-
	6,178,050	51,261	890	83	-	6,230,284
	Not yet due (Note)		Overdue			Total
		1-90 days	91-180 days	181-365 days	>366 days
Gross carrying amount Loss ratio Lifetime expected credit losses Subtotal Total	$242 100%	$- 100%	$- 100%	$- 100%	$- 100%	$242 (242)
	(242)	-	-	-	-
	-	-	-	-	-	-
						$6,230,284

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of December 31, 2024

Group1	Not yet due (Note)		Overdue	Overdue		Total
		1-90 days	91-180 days	181-365 days	>366 days
Gross carrying amount Loss ratio Lifetime expected credit losses Subtotal Group2	$5,941,211 -%	$58,528 -%	$43,060 1%	$- 2%	$- 5%	$6,042,799 (11,283)
	(10,852)	-	(431)	-	-
	5,930,359	58,528	42,629	-	-	6,031,516
	Not yet due (Note)		Overdue			Total
		1-90 days	91-180 days	181-365 days	>366 days
Gross carrying amount Loss ratio Lifetime expected credit losses Subtotal Total	$985 100%	$- 100%	$- 100%	$- 100%	$839 100%	$1,824 (1,824)
	(985)	-	-	-	(839)
	-	-	-	-	-	-
						$6,031,516

As of June 30, 2024

Group1	Not yet due (Note)		Overdue	Overdue		Total
		1-90 days	91-180 days	181-365 days	>366 days
Gross carrying amount Loss ratio Lifetime expected credit losses Subtotal	$5,938,480 -%	$81,350 -%	$- 1%	$- 2%	$- 5%	$6,019,830 (9,876)
	(9,876)	-	-	-	-
	5,928,604	81,350	-	-	-	6,009,954

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Group2	Not yet due (Note)		Overdue	Overdue		Total
		1-90 days	91-180 days	181-365 days	>366 days
Gross carrying amount Loss ratio Lifetime expected credit losses Subtotal Total	$1,068 100%	$- 100%	$- 100%	$- 100%	$2,163 100%	$3,231 (3,231)
	(1,068)	-	-	-	(2,163)
	-	-	-	-	-	-
						$6,009,954

Note: All of the Company’s notes receivable are not overdue.

The movement in the provision for impairment of contract assets, notes receivable, and trade receivables for the six months ended June 30, 2025 and 2024 are as follows:

Contract assets	Notes receivable	Trade receivables	Other receivables
$- - - -	$- - - -	$13,107 - - -	$444 - - -
$-	$-	$13,107	$444
Contract assets	Notes receivable	Trade receivables	Other receivables
$- - - - -	$- - - - -	$13,405 417 - (733) 18	$444 - - - -
$-	$-	$13,107	$444

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(17) Leases

A. The Company as a lessee

The Company leases land and buildings with lease terms ranging from 1 to 20 years. At the end of the lease terms, the Company does not have the purchase option to acquire the leasehold land and buildings.

The Company leases transportation equipment for operational use with lease terms of 1 years. The Company has purchase options to acquire leasehold transportation equipment at the end of the lease terms.

The effect that leases have on the financial position, financial performance and cash flows of the Company are as follows:

a. Amounts recognized in the balance sheet
(a) Right-of-use assets

The carrying amount of right-of-use assets

Land Buildings Transportation equipment Total	June 30, 2025	December 31, 2024	June 30, 2024
	$402,223 1,078,168 5,937	$411,613 627,725 6,034	$421,108 15,241 7,325
	$1,486,328	$1,045,372	$443,674

During the six months ended June 30, 2025, the additions to right-of-use assets of the Company amounted to NT$536,414 thousand. No additions to right-of-use assets for the six months ended June 30, 2024.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(b) Lease liabilities

Lease liabilities-current Lease liabilities-non- current Total	June 30, 2025 $277,375 1,252,859 $1,530,234	December 31, 2024	June 30, 2024
		$148,609 926,222	$29,310 432,496
		$1,074,831	$461,806

Please refer to Note 6. (19) C. for the interest on lease liabilities recognized during the six months ended June 30, 2025 and 2024, and refer to Note 12. (5) Liquidity Risk Management for the maturity analysis for lease liabilities as of June 30, 2025 and 2024.

b. Amounts recognized in the statement of profit or loss

Depreciation charge for right-of-use assets

Three months	ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$4,695 50,280 755	$4,800 2,386 636	$9,391 84,117 1,401	$9,515 4,740 1,251
55,730	7,822	94,909	15,506
-	402	-	1,579
$55,730	$8,224	$94,909	$17,085

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

c. Income and costs relating to leasing activities

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$100,592 171	$34,291 167	$169,478 343	$41,573 333
100,763	34,458	169,821	41,906
- -	71,293 1,226	23,525 437	114,719 2,233
-	72,519	23,962	116,952
$100,763	$106,977	$193,783	$158,858

d. Cash outflows relating to leasing activities

During the six months ended June 30, 2025 and 2024, the Company’s total cash outflows for leases amounted to NT$285,659 thousand and NT$177,917 thousand, respectively.

e. Other information relating to leasing activities

Extension and termination options

Some of the Company’s property rental agreements contain extension and termination options. In determining the lease terms, the non-cancellable period for which the Company has the right to use an underlying asset, together with periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. These options are used to maximize operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Company.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

After the commencement date, the Company reassesses the lease term upon the occurrence of a significant event or a significant change in circumstances that is within the control of the lessee and affects whether the Company is reasonably certain to exercise an option not previously included in its determination of the lease term, or not to exercise an option previously included in its determination of the lease term.

B. The Company as a lessor

The Company entered into commercial property leases with remaining terms between one to five years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

Lease income for operating leases Income relating to fixed lease payments and variable lease payments that depend on an index or a rate	Three months	ended June 30	Six months ended June 30	Six months ended June 30
	2025	2024	2025	2024
	$11,846	$23,121	$27,250	$39,818

Please refer to Note 6. (8) for relevant disclosure of property, plant and equipment for operating leases under IFRS 16. For operating leases entered by continuing operations, the undiscounted lease payments to be received and a total of the amounts for the remaining years as of June 30, 2025, December 31, 2024 and June 30, 2024 are as follow:

Not later than one year Later than one year and not later than five years Later than 5 years Total	June 30, 2025	December 31, 2024	June 30, 2024
	$23,654 4,668 -	$54,131 7,697 -	$44,413 10,669 -
	$28,322	$61,828	$55,082

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(18) Summary statement of employee benefits, depreciation and amortization expenses from continuing operations by function for the three months and six months ended June 30, 2025 and 2024:

		Three months	Three months	ended June 30	ended June 30
		2025			2024
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$1,546,423	$338,515	$1,884,938	$1,214,983	$324,516	$1,539,499
Labor and health insurance	142,030	21,128	163,158	110,125	19,934	130,059
Pension	51,003	11,298	62,301	44,476	10,671	55,147
Other employee benefits expense	78,571	10,334	88,905	65,358	10,105	75,463
Total	$1,818,027	$381,275	$2,199,302	$1,434,942	$365,226	$1,800,168
Depreciation	$1,621,018	$146,263	$1,767,281	$1,492,562	$140,266	$1,632,828
Amortization	$177	$902	$1,079	$1,507	$772	$2,279

			Six months ended June 30	Six months ended June 30	Six months ended June 30
		2025			2024
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$3,088,277	$761,264	$3,849,541	$2,342,235	$619,448	$2,961,683
Labor and health insurance	279,947	42,850	322,797	222,542	41,835	264,377
Pension	99,948	22,617	122,565	88,192	21,632	109,824
Other employee benefits expense	154,834	20,658	175,492	119,570	18,775	138,345
Total	$3,623,006	$847,389	$4,470,395	$2,772,539	$701,690	$3,474,229
Depreciation	$3,127,074	$289,410	$3,416,484	$2,985,497	$271,886	$3,257,383
Amortization	$375	$1,732	$2,107	$3,952	$2,035	$5,987

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

In accordance with the Articles of Incorporation, no higher than 1% of the profit of the current year is distributable as remuneration to directors (including independent directors). However, the Company’s accumulated losses shall have been covered (if any). The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by twothirds of the total number of directors, have the profit distributable as employees’ compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders’ meeting. In addition, according to the Company’s Articles of Incorporation, the remuneration paid to directors (including independent directors) is determined based on the Company’s overall operating performance with consideration of the contribution of each director to the Company and reference to industry norm. The remuneration proposal shall be approved by more than half members of the Compensation Committee and submitted to the Board of Directors for further approval.

According to the Company’s Articles of Incorporation and the Company Law, the remuneration of the Company’s executives is determined based on the positions of the executives, contribution to the Company’s operations, individual performance, and consideration of the Company’s future risk and reference to the industry norm. The remuneration is to be reviewed by the Compensation Committee for its plausibility and submitted to the Board of Directors for resolution.

The employee’s compensation policy of the Company takes into account various factors such as individual’s salary, rank, and performance evaluation, the industry norm and the Company’s operating results, etc.

In accordance with the Articles of Incorporation, 8% to 10% of profit of the current year is distributable as employees’ compensation (of the amount allocated as employee’s compensation, no less than 2% shall be allocated to the non-executive employees), and no higher than 1% of profit of the current year is distributable as remuneration to directors. However, KYEC’s accumulated losses shall have been covered (if any). KYEC may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by twothirds of the total number of directors, have the profit distributable as employees’ compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders’ meeting. Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors can be obtained from the “Market Observation Post System” on the website of the TWSE.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

KYEC estimated the amounts of the employees’ compensation and remuneration to directors to be 8% of profit of the period (or NT$233,196 thousand) and 0.8% of profit of the period (or NT$23,320 thousand) for the three months ended June 30, 2025, which were recognized as salary expense. KYEC estimated the amounts of the employees’ compensation and remuneration to directors to be 8% of profit of the period (or NT$689,508 thousand) and 0.8% of profit of the period (or NT$68,951 thousand) for the six months ended June 30, 2025, which were recognized as salary expense. KYEC estimated the amounts of the employees’ compensation and remuneration to directors to be 8% of profit of the period (or NT$200,693 thousand) and 0.8% of profit of the period (or NT$20,069 thousand) for the three months ended June 30, 2024, which were recognized as salary expense. KYEC estimated the amounts of the employees’ compensation and remuneration to directors to be 8% of profit of the period (or NT$350,484 thousand) and 0.8% of profit of the period (or NT$35,048 thousand) for the six months ended June 30, 2024, which were recognized as salary expense. If the Board of Directors resolved to distribute employees’ compensation in the form of stocks, then the number of stocks distributed is calculated based on the closing price one day prior to the date of resolution. If the estimated amounts differ from the actual distribution resolved by the Board of Directors, the difference will be recognized in the profit or loss in the subsequent year.

A resolution was passed at a Board of Directors meeting held on February 21, 2025 to distribute NT$850,211 thousand and NT$85,021 thousand in cash as employees’ compensation and remuneration to directors, respectively. No material differences exist between the estimated amount and the actual distribution of the employee compensation and remuneration to directors for the year ended December 31, 2024. A resolution was passed at a Board of Directors meeting held on February 23, 2024 to distribute NT$626,838 thousand and NT$62,684 thousand in cash as employees’ compensation and remuneration to directors, respectively. No material differences exist between the estimated amount and the actual distribution of the employee compensation and remuneration to directors for the year ended December 31, 2023.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(19) Income and expenses from continuing operations

A. Other income

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$- 63,079	$97,733 30,702	$108,977 183,855	$97,733 62,776
$63,079	$128,435	$292,832	$160,509

B. Other gains and losses

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$94,581 163,371 - - (30)	$4,508 37,654 - (56,918) (262,079)	$300,848 310,962 25,895 - (30)	$5,071 79,582 - (56,918) (262,115)
$257,922	$(276,835)	$637,675	$(234,380)

C. Finance costs

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$6,273 6,199	$101,747 2,186	$76,216 11,479	$219,045 4,358
$12,472	$103,933	$87,695	$223,403

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Please refer to Note 6. (6) for more details on non-operating income and expenses from discontinued operations.

(20) Components of other comprehensive income

For the three months ended June 30, 2025

Not to be reclassified to profit or loss in subsequent periods: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of foreign operations Total of other comprehensive income	Arising during the period	Reclassification adjustments during the period	Other comprehensive income	Income tax income (expenses)	Other comprehensive income, net of tax
	$120,941 (1,625,569)	$- -	$120,941 (1,625,569)	$(24,189) 324,955	$96,752 (1,300,614)
	$(1,504,628)	$-	$(1,504,628)	$300,766	$(1,203,862)

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the three months ended June 30, 2024

Not to be reclassified to profit or loss in subsequent periods: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of foreign operations Total of other comprehensive income	Arising during the period	Reclassification adjustments during the period	Other comprehensive income	Income tax income (expenses)	Other comprehensive income, net of tax
	$308,134 133,453	$- -	$308,134 133,453	$(61,627) (24,622)	$246,507 108,831
	$441,587	$-	$441,587	$(86,249)	$355,338

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the six months ended June 30, 2025

Not to be reclassified to profit or loss in subsequent periods: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of foreign operations Equity directly associated with disposal group held for sale Total of other comprehensive income	Arising during the period	Reclassification adjustments during the period	Other comprehensive income	Income tax income (expenses)	Other comprehensive income, net of tax
	$(300,725) (900,527) 50,887	$- - -	$(300,725) (900,527) 50,887	$60,144 171,213 -	$(240,581) (729,314) 50,887
	$(1,150,365)	$-	$(1,150,365)	$231,357	$(919,008)

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the six months ended June 30, 2024

Not to be reclassified to profit or loss in subsequent periods: Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of foreign operations Total of other comprehensive income	Arising during the period	Reclassification adjustments during the period	Other comprehensive income	Income tax income (expenses)	Other comprehensive income, net of tax
	$618,165 670,203	$- -	$618,165 670,203	$(123,633) (123,159)	$494,532 547,044
	$1,288,368	$-	$1,288,368	$(246,792)	$1,041,576

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(21) Income tax

The major components of income tax expense from continuing operations are as follows:

Income tax expense recognized in profit or loss

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$1,151,299 (38,864) (629,584)	$275,551 (57,258) (3,924)	$2,664,203 (38,864) (1,292,292)	$517,946 (57,258) 10,612
$482,851	$214,369	$1,333,047	$471,300

Income tax relating to components of other comprehensive income

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$24,189 (324,955)	$61,627 24,622	$(60,144) (171,213)	$123,633 123,159
$(300,766)	$86,249	$(231,357)	$246,792

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The assessment of income tax returns

As of June 30, 2025, the assessment of the income tax returns of the Company is as follows:

Entities	The assessment of income tax returns
KYEC Subsidiary: KYEC USA Corp. KYEC Japan K.K. KYEC SINGAPORE PTE. Ltd.	Assessed and approved up to 2023 Filed up to 2024 Filed up to 2024 Filed up to 2023

(22) Earnings per share

Basic earnings per share is calculated by dividing net profit for the year attributable to ordinary equity owners of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity owners of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$2,175,244 -	$1,902,778 727,897	$6,465,472 3,011,262	$3,271,243 1,072,712
$2,175,244	$1,174,881	$3,454,210	$2,198,531
1,222,745	1,222,745	1,222,745	1,222,745

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English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$1.78	$1.56	$5.29	$2.68
$1.78	$0.96	$2.82	$1.80
		Six months ended June 30
2025	2024	2025	2024
$2,175,244 -	$1,902,778 727,897	$6,465,472 3,011,262	$3,271,243 1,072,712
$2,175,244	$1,174,881	$3,454,210	$2,198,531
1,222,745 6,760	1,222,745 2,945	1,222,745 8,857	1,222,745 4,861
1,229,505	1,225,690	1,231,602	1,227,606
$1.77	$1.55	$5.25	$2.66
$1.77	$0.96	$2.80	$1.79

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date the financial statements were issued.

(23) Changes in the ownership interest of subsidiaries

A. Targeted reduction of capital

King Long Technology (Suzhou) Ltd. completed a capital reduction for certain employees, restricted stocks plan on January 18, 2024 and the Company did not participate the capital reduction that resulted its ownership increased to 92.16%. Cash decrease due to the capital reduction amounted to NT$20,609 thousand. Related information of the change in capital surplus is shown below:

Cash from capital reduction Decrease in non-controlling interest Differences in equity-capital surplus	Six months ended June 30,2024
	$(20,609) 87,005
	$66,396

No such transaction occurred for the six months ended June 30, 2025.

B. Share-based payment plans

On September 28, 2022, and May 17, 2021, Board of Directors of King Long Technology (Suzhou) Ltd. approved an employee share-based payment compensation plan. The compensation cost was recognized during the vesting period. Please refer to Note 6. (14) for relevant disclosures. The abovementioned transaction effected the changes in the ownership interest of subsidiaries.

(24) Disposal of subsidiary

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Assets and liabilities of disposed are shown as follows:

Assets Cash and cash equivalents Contract assets Accounts receivable, net Accounts receivable from related parties, net Other receivables Inventories, net Prepayments Other financial assets-current Property, plant and equipment Right-of-use assets Intangible assets Other non-current assets Subtotal Liabilities Contract liabilities Accounts payable Other payables Payables on equipment Current tax liabilities Current portion of long-term loans Long-term loans Deferred tax liabilities Long-term deferred income Subtotal Non-controlling interests Net assets disposal Gain on disposal of subsidiary: Consideration received Net assets disposal Gain on disposals Net cash inflow on disposal of subsidiary: Consideration received in cash and cash equivalents Less: Disposal of cash and cash equivalents Net cash inflow on disposal of subsidiary	Net assets disposal
	$2,973,836 124,596 2,605,315 105,636 37,542 215,660 576,150 4 19,022,332 173,174 1,209 3,591
	25,839,045
	(19,810) (862,448) (495,549) (537,229) (34,258) (1,125,155) (3,969,600) (94,950) (56,855)
	(7,195,854)
	(1,448,602)
	$17,194,589
	$21,625,785 (17,194,589)
	$4,431,196
	$21,625,785 (2,973,836)
	$18,651,949

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7. Related Party Transactions

Information of the related parties that had transactions with the Company during the financial reporting period is as follows:

A. Name and nature of relationship of the related parties

Name of the relatedparties	Nature of relationshipof the relatedparties
MediaTek Inc. MediaTek Singapore Pte. Ltd. Airoha Technology Corp. LePower (HK) Limited Other related parties (Note) Hsieh, Chi-Chun LC Architecture Realization Company, Inc Fixwell Technology Corp. Wei Jiu Industrial Co., Ltd.	The chairman of the Company and the chairman of MediaTek Inc. are close relatives Subsidiary of MediaTek Inc. Subsidiary of MediaTek Inc. Subsidiary of MediaTek Inc. Subsidiary of MediaTek Inc. The vice-chairman of the Company A director of the Company also serves as the chairman of LC Architecture Realization Company, Inc Associates Associates

Note: The Company's transactions with these companies are not material.

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English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

B. Significant transactions with related parties

a. Operating income

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$1,188,791 623,102 242,728 2,525	$640,123 1,029,372 235,772 2,630	$2,265,200 1,238,656 464,370 5,076	$1,549,536 1,771,612 375,824 5,277
2,057,146	1,907,897	3,973,302	3,702,249
- - -	91,925 34,013 1,116	25,762 19,498 234	201,534 60,842 1,152
-	127,054	45,494	263,528
$2,057,146	$2,034,951	$4,018,796	$3,965,777

Trading price with related parties was determined through mutual agreement based on the market conditions. The trade credit terms with related parties were 60 to 90 days, while the terms with non-related parties were 30 to 120 days. The outstanding balance due from related parties as of June 30, 2025 and 2024 was unsecured, non-interest bearing and must be settled in cash. The receivables from the related parties were not guaranteed.

b. The Company purchased inventories from associates. For the three months ended June 30, 2025 and 2024, the purchase amounts were NT$9,811 thousand and NT$15,078 thousand, respectively. For the six months ended June 30, 2025 and 2024, the purchase amounts were NT$27,800 thousand and NT$25,452 thousand, respectively. The purchase price was based on the market conditions. The payment terms with related parties were 30 to 90 days, while the terms with non-related parties were 30 to 120 days.
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c. The Company appointed an associate to perform machinery repairs. For the three months ended June 30, 2025 and 2024, the operating costs recognized amounted to NT$55,217 thousand and NT$52,534 thousand, respectively. For the six months ended June 30, 2025 and 2024, the operating costs recognized amounted to NT$108,470 thousand and NT$108,640 thousand, respectively.
d. The Company paid rental expenses for renting machines from associates. For the three months ended June 30, 2025 and 2024, the rental expenses amounted to NT$5,021 thousand and NT$2,074 thousand, respectively. For the six months ended June 30, 2025 and 2024, the rental expenses amounted to NT$9,082 thousand and NT$2,511 thousand, respectively. The rental price was based on the similar machine’s rental price in the market. The payment terms with related parties were 30 days, while terms with non-related parties were 0 to 30 days.
e. The Company engaged Hsieh, Chi-Chun as the physician at the factory. For the three months ended June 30, 2025 and 2024, the operating expenses amounted to NT$150 thousand for both periods. For the six months ended June 30, 2025 and 2024, the operating expenses amounted to NT$300 thousand and NT$200 thousand, respectively.
f. Significant property transactions with related parties:
(a) Acquisition of property, plant and equipment

Relatedparty	Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
	2025	2024	2025	2024
	Purchase price	Purchase price	Purchase price	Purchase price
Associates	$61,184	$38,874	$139,137	$67,333

The purchase price was determined through mutual agreement based on the market conditions.

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(b) Disposal of Subsidiary

The Company has disposed of its ownership interest in King Long Technology (Suzhou) Ltd., to LePower (HK) Limited with the consideration received of US$25,000 thousand. Please refer to Note 6. (24) for detailed information relating to the disposal.

g. Trade receivables from related parties

June 30, 2025	December 31, 2024	June 30, 2024
$1,137,966 690,166 221,465 22,968 1,073 -	$1,013,690 721,583 223,956 20,711 863 -	$713,872 1,054,796 - 240,980 898 -
2,073,638	1,980,803	2,010,546
- - -	46,274 33,784 543	60,687 18,626 1,069
-	80,601	80,382
$2,073,638	$2,061,404	$2,090,928

h. Other receivables from related parties

MediaTek Inc. Mediatek Singapore Pte. Ltd. Other related parties Associates Total	June 30, 2025	December 31, 2024	June 30, 2024
	$24,390 220 8 14	$17,621 279 - 15	$10,387 2,551 81 -
	$24,632	$17,915	$13,019

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i. Account payables to related parties

	June 30,	December 31,	June 30,
	2025	2024	2024
Wei Jiu Industrial Co., Ltd.	$8,833	$15,299	$8,545
Associates	-	147	147
Total	$8,833	$15,446	$8,692

j. Other payables to related parties

	June 30,	December 31,	June 30,
	2025	2024	2024
Wei Jiu Industrial Co., Ltd.	$57,505	$49,396	$33,773
Fixwell Technology Corp.	31,355	60,010	37,859
Other related parties	826	1,141	1,077
Other	45	45	45
Total	$89,731	$110,592	$72,754

k. Key management personnel compensation

Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
2025	2024	2025	2024
$61,734 324 -	$55,119 297 4,223	$167,900 648 890	$102,964 594 8,324
$62,058	$59,639	$169,438	$111,882

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8. Assets Pledged as Security

The following table lists assets of the Company pledged as security:

Items	Carryingamount	Carryingamount	Carryingamount	Purpose ofpledge
	June 30, 2025	December 31, 2024	June 30, 2024
Continuing operations: Other non-current financial assets Land Building and facility Machinery and equipment Subtotal Discontinued operations: Other current financial assets Total	$148,754 914,594 924,306 4,376,380	$148,916 914,594 963,150 4,795,725	$147,924 914,594 1,001,994 3,294,633	Customs clearance Long-term borrowings Long-term borrowings Long-term borrowings L/C guarantee deposits
	6,364,034 -	6,822,385 4	5,359,145 4
	$6,364,034	$6,822,389	$5,359,149

9. Significant Contingent Liabilities and Unrecognized Commitments

As of June 30, 2025, the following contingencies and material commitments were not included in the Company’s consolidated financial statements:

A. The Company's issued and outstanding letters of credit totaled approximately NT$2,180,971 thousand.
B. To construct the plant and factory premises, the Company had entered into several construction contracts in an aggregate amount of NT$5,744,945 thousand with NT$4,048,141 thousand already paid and NT$1,696,804 thousand remaining unpaid (including notes payable issued).
C. The promissory notes issued for secured bank loans amounted to NT$53,233,275 thousand.
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D. The Company entered into a loan agreement with Yuanta Commercial Bank, the following financial covenants shall be maintained on semi-annual and annual basis during the period from 2023 to 2027:
(a) Current ratio not less than 100%;
(b) Debt ratio not more than 150%;
(c) Interest coverage ratio no less than 300%.

The Company entered into a loan agreement with Yuanta Commercial Bank, the following financial covenants shall be maintained on semi-annual and annual basis during the period from 2024 to 2028:

(a) Current ratio not less than 100%;
(b) Debt ratio not more than 150%;
(c) Interest coverage ratio no less than 300%.

The Company entered into a loan agreement with Yuanta Commercial Bank, the following financial covenants shall be maintained on semi-annual and annual basis during the period from 2025 to 2029:

(a) Current ratio not less than 100%;
(b) Debt ratio not more than 150%;
(c) Interest coverage ratio no less than 300%.

The Company entered into a loan agreement with Cathay United Bank, the following financial covenants shall be maintained on semi-annual and annual basis during the period from 2024 to 2027:

(a) Current ratio not less than 100%;
(b) Debt ratio not more than 150%;
(c) Interest coverage ratio no less than 300%.

The Company entered into a syndicated loan agreement with 14 banks, led by Bank of Taiwan, and the Company shall maintain the following financial covenants on semi-annual and annual basis during the period from 2024 to 2029:

(a) Current ratio not less than 100%;
(b) Debt ratio not more than 150%;
(c) Interest coverage ratio not less than 300%.
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In the case of failure to adhere to the aforementioned financial covenants during the period from 2024 to 2029, Bank of Taiwan may assemble a meeting among the banks to govern the matter to decide on a course of action or request for each bank’s written approval for such course of action, when necessary.

As of June 30, 2025, the Company did not violate any financial covenants.

As the settlement conditions were fulfilled, the settlement date was set on February 13, 2025, and the Company has disposed of its entire ownership interest in King Long Technology (Suzhou) Ltd. In the event of any violation of the representations, warranties, commitments, or agreements under the share purchase agreement, if any illegal actions existed within King Long Technology (Suzhou) Ltd. before or on the settlement date, or if any third party raises claims or asserts rights regarding actions taken by King Long Technology (Suzhou) Ltd. before or on the settlement date, resulting in losses to the buyers after the settlement date, the company shall assume liability for indemnification. The aforementioned indemnification obligation is not limited to commercial activities but also include tax, housing provident fund, and other statutory obligations. However, the resolution of statutory obligations such as taxes and housing provident fund depends on the future development of approval practices, and the profit from selling King Long Technology (Suzhou) Ltd. recognized by the company have not considered the impact of these uncertainties.

10. Losses due to Major Disasters

None.

11. Significant Subsequent Events

(1) On August 8, 2025, the Board of Directors of the Company resolved to issue new stocks by cash with 80,000 thousand shares with a par value of NT$10. In accordance with Article 267 of the Company Act, 10% of the newly issued shares, are reserved for subscription by the Company’s employees on a preferential basis.
(2) On August 8, 2025, the Board of Directors of the Company resolved to increase its investment in KYEC SINGAPORE PTE. Ltd., by a cash injection of SGD 100,000 thousand.
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12. Others

(1) Categories of financial instruments (including disposal group held for sale)

A. Categories of financial instruments

June 30, 2025	December 31, 2024	June 30, 2024
$6,015,359 24,208,594	$6,369,337 23,302,075	$7,159,846 22,148,580
$30,223,953	$29,671,412	$29,308,426
$- 1,089,142 13,571,387 16,567,894 1,530,234 6,759	$- 2,023,284 7,214,099 25,676,402 1,074,831 6,316	$43,396 1,221,377 9,823,953 22,135,434 461,806 6,492
$32,765,416	$35,994,932	$33,692,458

Note: Includes cash and cash equivalents (excluding cash on hand), notes receivable, trade

receivables (including related parties), other receivables (including related parties), other financial assets and refundable deposits.

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(2) Financial risk management objectives

The objective of the Company’s financial risk management is mainly to manage the market risk, credit risk and liquidity risk derived from its operating activities. The Company identified, measured and managed the aforementioned risks based on the Company’s policy and risk tendency.

The Company has established appropriate policies, procedures and internal controls for financial risk management. The plans for material treasury activities are reviewed by Board of Directors and Audit committee in accordance with relevant regulations and internal controls. The Company complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise foreign currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variables, there are usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

A. Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense are denominated in a different currency from the Company’s functional currency) and the Company’s net investments in foreign operations.

Some receivables and payables are denominated in the same foreign currency, and it will result in economic hedging effect. Further, net investments in foreign operations are primarily for strategic purposes, and they are not hedged by the Company.

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The Company's sensitivity analysis to foreign currency risk mainly focuses on foreign currency monetary items at the end of the reporting period. The Company’s foreign currency risk is mainly from the volatility in the exchange rates of US$ and CNY. The sensitivity analysis is as follows:

When NT$ appreciates or depreciates against US$ by 1%, the profit for the six months ended June 30, 2025 and 2024 would have decreased/increased by NT$85,030 thousand and by NT$11,692 thousand, respectively.

When NT$ appreciates or depreciates against CNY by 1%, the profit for the six months ended June 30, 2025 and 2024 would have increased/decreased by NT$9,760 thousand and by NT$19,303 thousand, respectively.

B. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s loans and receivable at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

The Company manages its risk by having a balanced portfolio of financial instruments with fixed and floating interest rates. The Company did not apply hedging accounting since such hedging activities did not qualify for criteria of hedge accounting.

The Company’s sensitivity analysis to interest rate risk mainly focuses on items exposed to interest rate risk at the end of the reporting period, including investments with floating interest rates and bank borrowings with floating rates. Assuming investments and bank borrowings had been outstanding for the entire period and all other variables were constant, a hypothetical increase/decrease of 10 basis points of interest rate in a reporting period would have resulted in a decrease/increase in profit by NT$8,300 thousand and NT$11,096 thousand for the six months ended June 30, 2025 and 2024, respectively.

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C. Equity price risk

The Company’s equity investments, including listed and unlisted equity securities, are exposed to market price risk arising from uncertainties of future values of equity securities. The Company’s investments in listed and unlisted equity securities are classified under financial assets at fair value through other comprehensive income. The Company manages the equity price risk through diversification and placing limits on individual and total equity investments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves certain significant equity investments according to level of authority.

At the reporting date for the six months ended June 30, 2025 and 2024, a change of 20% in the price of the listed equity securities classified under equity instrument investments measured at fair value through other comprehensive income would have impact of NT$6,282 thousand and NT$9,689 thousand on the equity attributable to the Company.

Please refer to Note 12. (3) section H for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

D. Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for contract assets, trade receivables and notes receivable) and from its financing activities (including bank deposits and other financial instruments).

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and controls relating to customer credit risk management. Credit limits are established for all customers based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company’s internal rating criteria, etc. Certain customer’s credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment and insurance.

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As of June 30, 2025, December 31, 2024 and June 30, 2024, receivables from top ten 、 customers represented 67% 58% and 55% of the total trade receivables of the Company, respectively. The credit concentration risk of other accounts receivable was insignificant.

The Company manages its exposure to credit risk arising from bank deposits, fixed income securities and other financial instruments in accordance with established group policies. Since the counter-parties are selected reputable financial institutions and companies, the Company believes its exposure to credit risk is not significant.

E. Liquidity risk management

The Company maintained financial flexibility through the holding of cash and cash equivalents, investments in securities with high liquidity, and facilities of bank borrowings. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity, and the payment amount also includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

Non-derivative financial instruments

June 30, 2025 Payables Borrowings Lease liabilities (Note) December 31, 2024 Payables Borrowings Lease liabilities (Note) June 30, 2024 Payables Borrowings Lease liabilities (Note)	Less than 1year	1 to 2years	2 to 3years	3 to 4years	Longer than 4years	Total
	$14,660,529 431,688 303,915 $9,237,383 1,741,921 169,650 $11,045,330 1,445,298 38,771	$- 4,415,149 296,168 $- 7,579,736 159,556 $- 5,939,173 29,712	$- 7,738,509 294,629 $- 9,574,654 158,959 $- 6,119,397 26,341	$- 3,197,044 226,824 $- 7,670,784 158,466 $- 9,901,686 26,341	$- 2,096,845 549,225 $- 1,032,322 562,385 $- 701,121 446,823	$14,660,529 17,879,235 1,670,761 $9,237,383 27,599,417 1,209,016 $11,045,330 24,106,675 567,988

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Notes: Information about the maturities of lease liabilities is provided in the table below:

Lease liabilities June 30, 2025 December 31, 2024 June 30, 2024		Maturities Period	Maturities Period	Maturities Period
	Less than 1year	1 to 5years	6 to 10years	>10years	Total
	$303,915 $169,650 $38,771	$969,928 $630,381 $108,165	$120,767 $120,742 $120,730	$276,151 $288,243 $300,322	$1,670,761 $1,209,016 $567,988

F. Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the six months ended June 30, 2025:

As of January 1, 2025 Cash flows Non-cash changes Syndicated loan issuance costs Amortization on bonds payable Acquisition of right-of-use assets Foreign exchange movement As of June 31, 2025	Short-term borrowings	Long-term loans	Lease liabilities	Total liabilities from financing activities
	$- - - - - -	$20,580,713 (3,287,345) 2,880 (3,819) - (724,535)	$1,074,831 (80,397) - - 536,414 (614)	$21,655,544 (3,367,742) 2,880 (3,819) 536,414 (725,149)
	$-	$16,567,894	$1,530,234	$18,098,128

Reconciliation of liabilities for the six months ended June 30, 2024:

As of January 1, 2024 Cash flows Non-cash changes Syndicated loan issuance costs Amortization on bonds payable Remeasurement of lease liabilities Foreign exchange movement Disposal group held for sale As of June 30, 2024	Short-term borrowings	Long-term loans	Lease liabilities	Total liabilities from financing activities
	$220,133 (187,697) - - - 10,960 (43,396)	$23,175,624 (1,511,741) 1,200 10,389 - 459,962 (5,545,168)	$472,066 (14,701) - - 4,247 194 -	$23,867,823 (1,714,139) 1,200 10,389 4,247 471,116 (5,588,564)
	$-	$16,590,266	$461,806	$17,052,072

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G. Fair values of financial instruments

a. The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

(a) The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and other payables approximate their fair value due to their short maturities.
(b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price at the reporting date.
(c) Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).
(d) Fair value of debt instruments without market quotations, bank loans and other noncurrent liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instruments.
b. Fair value of financial instruments measured at amortized cost

The carrying amounts of the Company’s financial assets and financial liabilities measured at amortized cost approximate their fair value.

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c. Fair value measurement hierarchy for financial instruments

Please refer to Note 12. (3) section H for fair value measurement hierarchy for financial instruments of the Company.

H. Fair value measurement hierarchy

a. Fair value measurement hierarchy

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Input other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.
Level 3: Unobservable inputs for the assets or liabilities.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

b. Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets measured at fair value on a non-recurring basis; the following table presents the fair value measurement hierarchy of the Company’s assets and liabilities on a recurring basis:

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Level 1	Level 2	Level 3	Total
$31,409 Level 1	$- Level 2	$5,983,950 Level 3	$6,015,359 Total
$39,369 Level 1	$- Level 2	$6,329,968 Level 3	$6,369,337 Total
$48,444	$-	$7,111,402	$7,159,846

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Transfers between Level 1 and Level 2 during the period

During the six months ended June 30, 2025 and 2024, there were no transfers between Level 1 and Level 2 fair value measurements.

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

For the six months ended June 30, 2025：

Assets

	Assets
Beginning balances as of January 1, 2025 Total gains and losses recognized for the six months ended June 30, 2025: Amount recognized in OCI (presented in “unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income”) Disposal Ending balances as of June 30, 2025 For the year ended December 31, 2024： Beginning balances as of January 1, 2024 Total gains and losses recognized for the year ended December 31, 2024: Amount recognized in OCI (presented in “unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income”) Ending balances as of December 31, 2024	At fair value through other comprehensive income
	Stocks
	$6,329,968 (292,765) (53,253)
	$5,983,950
	Assets
	At fair value through other comprehensive income
	Stocks
	$6,491,001 (161,033)
	$6,329,968

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For the six months ended June 30, 2024：

Assets At fair value through other comprehensive income Stocks Beginning balances as of January 1, 2024 $6,491,001 Total gains and losses recognized for the six months ended June 30, 2024: Amount recognized in OCI (presented in “unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income”) 620,401 Ending balances as of June 30, 2024 $7,111,402

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

As of June 30, 2025

Financial assets: Financial assets at fair value through other comprehensive income Stocks	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
	Assets approach	Discount for lack of marketability	10%	The higher the discount for lack of marketability, the lower the fair value of the stocks	10% increase/decrease in the discount for lack of marketability would result in decrease/increase in the Company’s equity by NT$664,883 thousand.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of December 31, 2024

Financial assets: Financial assets at fair value through other comprehensive income Stocks Stocks As of Financial assets: Financial assets at fair value through other comprehensive income Stocks Stocks	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
	Assets approach Discount for lack of marketability Markets approach P/E, P/B, EV/EBITDA, EV/EBIT and EV/Sales June 30, 2024 Valuation techniques Significant unobservable inputs		10% 30% Quantitative information	The higher the discount for lack of marketability, the lower the fair value of the stocks The higher the proportion of similar quantified information, the higher the fair value of the stocks Relationship between inputs and fair value	10% increase/decrease in the discount for lack of marketability would result in decrease/increase in the Company’s equity by NT$698,450 thousand. 10% increase/decrease in the discount for lack of marketability would result in decrease/increase in the Company’s equity by NT$6,273 thousand. Sensitivity of the input to fair value
	Assets approach Markets approach	Discount for lack of marketability P/E, P/B, EV/EBITDA, EV/EBIT and EV/Sales	10% 30%	The higher the discount for lack of marketability, the lower the fair value of the stocks The higher the proportion of similar quantified information, the higher the fair value of the stocks	10% increase/decrease in the discount for lack of marketability would result in decrease/increase in the Company’s equity by NT$782,635 thousand. 10% increase/decrease in the discount for lack of marketability would result in decrease/increase in the Company’s equity by NT$9,669 thousand.

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Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Company’s Finance Department is responsible for validating the fair value measurements and ensuring that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Department analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company’s accounting policies at each reporting date.

I. Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

Monetaryfinancial assets		June 30,2025
	Foreign Currency (thousand)	Exchange rate	NT$ (thousand)
	$611,112 5,454 320,906 244,029	29.30 4.091 29.30 4.091	$17,905,571 22,312 9,402,532 998,320
US$ CNY Monetaryfinancial liabilities
US$ CNY

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KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Monetaryfinancial assets	December 31,2024	December 31,2024	December 31,2024
	Foreign Currency (thousand)	Exchange rate	NT$ (thousand)
	$221,802 1,111,168 223,300 1,511,562	32.785 4.478 32.785 4.478 June 30,2024	$7,271,766 4,975,810 7,320,898 6,768,773
US$ CNY Monetaryfinancial liabilities
US$ CNY Monetaryfinancial assets
	Foreign Currency (thousand)	Exchange rate	NT$ (thousand)
	$212,164 993,340 176,133 1,427,605	32.45 4.445 32.45 4.445	$6,884,713 4,415,396 5,715,529 6,345,704
US$ CNY Monetaryfinancial liabilities
US$ CNY

Functional currencies of entities of the Company are varied. Accordingly, the Company is not able to disclose the information of exchange gains and losses of monetary financial assets and liabilities by each significant assets and liabilities denominated in foreign currencies. The foreign exchange gains from continuing operations were NT$163,371 thousand and NT$37,654 thousand for the three months ended June 30, 2025 and 2024, respectively. The foreign exchange gains were NT$310,962 thousand and NT$79,582 thousand for the six months ended June 30, 2025 and 2024, respectively.

J. Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

87 -

English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

13. Additional Disclosures

(1) The following are additional disclosures for the Company and its affiliates as required by the R.O.C. Securities and Futures Bureau for the six months ended June 30, 2025:
A. Financing provided to others: Please refer to Attachment 1.
B. Endorsement/Guarantee provided to others: None.
C. Securities held as of June 30, 2025: Please refer to Attachment 2.
D. Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock: Please refer to Attachment 3.
E. Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock: Please refer to Attachment 4.
F. Parent-subsidiary relationship between business dealings and important circumstances: Please refer to Attachment 5.
(2) Information on investees

Information regarding investee companies over which the Company can exercise significant influence or control: Please refer to Attachment 6.

(3) Investment in Mainland China: Please refer to Attachment 5 and 7.

14. Segment Information

General information

The main revenue stream of the Company comes from testing and assembly services. The chief operating decision maker reviews the overall operating results to make decisions about resources to be allocated to and evaluates the overall performance. Therefore, the Company is aggregated into a single segment.

88 -

Attachment 1

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

As of June 30, 2025

(Amounts in New Taiwan Thousand Dollars, Unless Specified otherwise)

Number (Note 1)	Financing Company Name	Counter Party	Financial Statement Account	Related Party	Maximum Balance for the Period (Note 3)	Ending Balance	Amount Actually Drawn	Interest Rate	Nature of Financing	Transaction Amounts	Reason for Financing	Allowance for Bad Debts	Collateral	Collateral	Financing Limits for Each Borrowing Company (Note 2)	Financing Company's Total Financing Amount Limits (Note 2)
													Item	Value
0	KYEC	KYEC Microelectronics Co., Ltd.	Other receivables from related parties	Yes	$328,484	$-	$-	6%	Short-term financing	-	Operating Capital	$-	-	-	$4,393,337	$8,786,674

Note 1: The numbers filled in for the financings provided by the group or subsidiaries are as follows:

(1) The Company is "0".

(2) The subsidiaries are numbered in order starting from "1".

Note 2: The total amount for lending and the maximum amount lendable to a single company shall not exceed 40% of the Company's net worth in KYEC'S "Procedures for Loaning Funds to Others", and this can also be divided into the following two scenarios:

(1) The maximum amount of financing to trading partners is 20% of the Company's net worth, and shall not exceed the transaction amount arising from business dealings during the most recent 1 year which is the higher amount of total sales or purchase transactions.

(2) The maximum amount of short-term financing to trading partners is 20% of the Company's net worth, and the maximum amount of short-term financing to a single company is 10% of the Company's net worth.

Note 3: Maximum accumulated balance of financing amount as of the declaration month for the period.

89 -

Attachment 2

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

MARKTEABLE SECURITIES HELD

As of June 30, 2025

(Amounts in New Taiwan Thousand Dollars, Unless Specified otherwise)

Held Company Name	Securities Type	Securities Name	Relationship with the Company	Financial Statement Account	Balances as of June 30,2025	Balances as of June 30,2025	Balances as of June 30,2025	Balances as of June 30,2025	Note
					Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value
The Company	Stock Stock Stock Stock Stock Stock Stock	Shieh Yong Investment Co., Ltd. APM Communication, Inc. Greenliant Systems, Ltd. YANN YUAN Investment Co., Ltd. Movella Holdings Inc. Baas Innovation Co., Ltd. Unimicron Technology Corp.	- - - - - - -	Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income	153,488,602 10,456 2,333,333 127,500,000 258,419 315,999 203,045	$1,323,518 - - 4,660,432 30 8,232 23,147	7.58% 0.11% 3.74% 14.55% 0.51% 1.05% 0.01%	$1,323,518 - - 4,660,432 30 8,232 23,147

90 -

Attachment 3

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

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

For the six months ended June 30, 2025

(Amounts in New Taiwan Thousand Dollars, Unless Specified otherwise)

Company Name	Related Party	Nature of Relationships	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Payable or Receivable (Included Contract Assets)	Notes/Accounts Payable or Receivable (Included Contract Assets)
			Purchase/ Sales	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
KYEC	MediaTek Inc.	The chairman of the Company and the chairman of Mediatek Inc. are close relatives	Sales	$2,265,200	14.45%	Month-end 75 days	-	-	$1,137,966	17.97 %
	Mediatek Singapore Pte. Ltd.	Subsidiaryof MediaTek Inc.	Sales	$1,238,656	7.90%	Month-end 60 days	-	-	$690,166	10.90 %
	Airoha TechnologyCorp.	Subsidiaryof MediaTek Inc.	Sales	$413,709	2.64%	Month-end 60 days	-	-	$221,465	3.50 %

91 -

Attachment 4

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

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

As of June 30, 2025

(Amounts in New Taiwan Thousand Dollars, Unless Specified otherwise)

Company Name	Related Party	Nature of Relationships	Ending Balance	Turnover Rates	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
KYEC	MediaTek Inc.	The chairman of the Company and the chairman of Mediatek Inc. are close relatives	$1,162,356 (Note 1)	4.21	$-	-	$354,168	-
	Mediatek Singapore Pte. Ltd.	Subsidiary of MediaTek Inc.	$690,386 (Note 2)	3.51	$-	-	$282,583	-
	Airoha Technology Corp.	Subsidiary of MediaTek Inc.	$221,465	3.72	$-	-	$5,309	-

Note 1 : Includes other receivables - related party amounting to NT$24,390 thousand arising from handling charges, freights and tax fees.

Note 2 : Includes other receivables - related party amounting to NT$220 thousand arising from customs clearance charges and freights.

92 -

Attachment 5

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIP AND SIGNIFICANT INTERCOMPANY TRANSACTIONS DURING THE REPORTING PERIOD For the six months ended June 30, 2025

(Amounts in New Taiwan Thousand Dollars, Unless Specified otherwise)

Number	Company name	Counterparty	Relationship	Intercompany Transaction	Intercompany Transaction	Intercompany Transaction
				Finacial Statement Account	Amount	Transaction terms	% of Net revenues or total assets
0	KYEC	KYEC USA Corp.	1	Commission expense Accrued expenses	$38,475 11,658	according to contract	0.23% 0.01%
		King Long Technology (Suzhou) Ltd.		Receivable on equipment	21,345		0.03%
		KYEC Japan. K.K.		Accrued expenses Commission expense	3,664 11,288		0.00% 0.07%
		KYEC Singapore PTE. LTD.		Commission expense	26,189		0.16%
		KYEC Microelectronics Co.,Ltd.		Interest revenue	2,413		0.01%
1	King Long Technology (Suzhou) Ltd.	Suzhou Zhengkuan Technology Ltd.	3	Sales revenue	13,962		0.08%

Note 1: The information of transactions between the Company and the conlidated subsidiaries should be noted in "Number" column.

(1) Number 0 represents the Company.

(2) The consolidated subsidiaries are numbered in order from number 1.

Note 2: The transaction relationships with the counterparties are as follows:

(1) The Company to the consolidated subsidiary.
(2) The consolidated subsidiary to the Company.
(3) The consolidated subsidiary to another consolidated subsidiary.

Note 3: In calculating the ratio, the transaction amount is divided by consolidated total assets for balance sheet accounts and is divided by consolidated total revenues for income statement accounts.

93 -

Attachment 6

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA) As of June 30, 2025

(Amounts in New Taiwan Thousand Dollars and United States Thousand Dollars, Unless Specified otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of June 30, 2025	Balance as of June 30, 2025	Balance as of June 30, 2025	Net Income (Loss) of the Investee	Investment income (loss) recognised by the Company for the three months ended June 30, 2025.
				June 30, 2025	December 31,2024	Shares	Percentage of Ownership	Carrying Value
KYEC	KYEC USA Corp.	Note 1	Sales agent and business communication in USA	$4,973	$4,973	160,000	100.00 %	$18,266	$3,817	$3,817
	KYEC Investment International Co., Ltd.	Note 2	Investing activities	5,292,315	5,292,315	164,923,636	100.00 %	8,843,414	3,139,216	3,139,216
	KYEC Technology Management Co., Ltd.	Note 3	Investing activities	-	251,579	-	-	-	212,323	212,323
	KYEC Japan. K.K.	Note 4	Manufacturing and sales of electronic parts and components, sales agent and business communication in Japan	102,735	102,735	1,899	89.83 %	73,775	2,187	1,964
	KYEC SINGAPORE PTE. LTD.	Note 5	Sales agent and business communication in Southeast Asia and Europe	1,830	1,830	78,000	100.00 %	22,124	9,645	9,645
	Fixwell Technology Corp.	Note 6	Manufacturing, selling and wholesale of electronics parts and components and repairing of electronics related products	28,000	28,000	2,800,000	23.33 %	85,658	67,995	20,269
	Wei Jiu Industrial Co., Ltd.	Note 7	CNC center processing machine, lathe machining processing design and various precision mechanical components manufacturing	10,200	10,200	1,020,000	34.00 %	34,987	13,910	4,729
KYEC Investment International Co., Ltd.	KYEC Microelectronics Co., Ltd.	Note 8	Investing activities	-	USD 116,155	-	-	-	USD 102,762	-
KYEC Technology Management Co., Ltd.	KYEC Microelectronics Co., Ltd.	Note 8	Investing activities	-	USD 7,500	-	-	-	USD 102,762	-

Note 1：101 Meto Drive., #540 San Jose, CA 95110 USA.

Note 2：Wickhams Cay II Road Town, Tortola, VG1110, British Virgin Islands.

Note 3：Portcullis TrustNet Chambers, P.O. Box 1225, Apia, Samoa.

Note 4：5F 2-3-8 Momochihama, Sawara-ku, Fukuoka 814-0001 Japan. Note 5：750A Chai Chee Road, ESR BizPark @ Chai Chee Singapore (469001). Note 6 ： No.380, Huashan Rd., Dadu Dist., Taichung City 432, Taiwan (R.O.C.)

Note 7 : No.8, Aly. 8, Ln. 48, Sec. 2, Nan’ai Rd., Xiangshan Dist., Hsinchu City 300, Taiwan (R.O.C.)

Note 8：P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands.

94 -

Attachment 7

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA

As of June 30, 2025

(Amounts in New Taiwan Thousand Dollars and United States Thousand Dollars)

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of December 31, 2024	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of June 30, 2025	Net Income (Loss) of the Investee Company	Percentage of Ownership	Share of Profits/Losses (Note 5)	Carrying Amount as of June 30, 2025	Accumulated Inward Remittance of Earnings as of June 30, 2025
					Outflow	Inflow
King Long Technology (Suzhou) Ltd.	Note 1	- -	Indirectly investment in Mainland China through companies registered in a third region (Note 2)	$3,623,092 (USD 123,655)	$-	$3,623,092 (USD 123,655)	$-	$533,163 (USD 16,287)	-	$491,373 (USD 15,011)	-	$9,647,487 USD 307,051
Suzhou Zhengkuan Technology Ltd.	Note 3	- -	Indirectly investment in Mainland China through companies registered in a third region (Note 4)	$1,428,921 (USD 48,769)	$-	$1,428,921 (USD 48,769)	$-	$13,225 (USD 404)	-	$12,189 (USD 372)	-

Accumulated Investment in Mainland China as of June 30, 2025 (Note 6)	Investment Amounts Authorized by Investment Commission, MOEA (Note 6)	Upper Limit on Investment
$-	$-	$26,360,023

Note 1: Sales and manufacturing of components of automotive data processing machinery, solid memory parts, monitoring burn-in machinery, and testing and assembly service of integarted circuits.

Note 2: The Company obtained the approval from the Investment Commission, MOEA, to invest indirectly in King Long Technology (Suzhou) via KYEC Microelectronics Co., Ltd. which is registered in Cayman Island. KYEC Microelectronics Co., Ltd. is invested by KYEC Investment International Co., Ltd. which is registered in BVI.

Note 3: Testing and assembly service of integrated circuits, sales and after service of processing of electronic components and materials, components of automotive data processing machinery, solid memory parts, and monitoring burn-in machinery. Note 4: Investment was through King Long Technology (Suzhou) Ltd.

Note 5: Recognition of investment gains (losses) was calculated based on the investee's reviewed financial statements.

Note 6: The Company has filed with the Investment Commission, MOEA for the inward remittance of USD 314,551 thousand, and the amount has been deducted from investment in Mainland China, and the approval from the Investment Commission had been obtained on July 21, 2025.

95 -

AI assistant

KYEC — Interim / Quarterly Report 2025

52090_rns_2025-12-05_327881a1-ae70-4564-b1fe-b5c5c3705405.pdf

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

Address: No. 81, Sec. 2, Gongdao 5th Rd., Hsinchu City 300, Taiwan (R.O.C.) Telephone: 886-3-5751888

Independent Auditors’ Review Report

English Translation of a Report Originally Issued in Chinese

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of June 30, 2025, December 31, 2024 and June 30, 2024

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of June 30, 2025, December 31, 2024 and June 30, 2024

English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three months and six months ended June 30, 2025 and 2024

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the six months ended June 30, 2025 and 2024

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended June 30, 2025 and 2024

English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Operation

2. Date and Procedures of Authorization of Financial Statements for Issue

3. Newly Issued or Revised Standards and Interpretations

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4. Summary of Material Accounting Policies

(1) Statement of Compliance

(2) Basis of Preparation

(3) Basis of Consolidation

Preparation principle of consolidated financial statement

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(5) Post-employment benefits

(6) Income taxes

5. Significant Accounting Judgments, Estimates and Assumptions

6. Contents of Significant Accounts

(1) Cash and cash equivalents

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

English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(3) Trade receivables and trade receivables from related parties

(4) Inventories

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(5) Prepayments

(6) Disposal group held for sale

A. Discontinued operations

English Translation of Financial Statements Originally Issued in Chinese KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(7) Investments accounted for using the equity method

(8) Property, plant and equipment

English Translation of Financial Statements Originally Issued in Chinese

English Translation of Financial Statements Originally Issued in Chinese

B. Property, plant and equipment leased out under operating leases

(9) Intangible assets

(10) Other current liabilities

- (11) Long term borrowings

English Translation of Financial Statements Originally Issued in Chinese

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

English Translation of Financial Statements Originally Issued in Chinese

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

English Translation of Financial Statements Originally Issued in Chinese

KING YUAN ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

English Translation of Financial Statements Originally Issued in Chinese

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

English Translation of Financial Statements Originally Issued in Chinese

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(12) Post-employment benefits

KYEC Interim / Quarterly Report 2025