Stock code: 3346

Laster Tech Co., Ltd. and Subsidiaries

Consolidated Financial Statements and Independent Auditor's Report 2025 and 2024

Address: 5F, No. 97, Zhongyuan Street, Zhonghe District, New Taipei City
Telephone number: (02)2222-6112

§TABLE OF CONTENTS§

Item		Page	Note No. to The Consolidated Financial Statements
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Declaration of Consolidated Financial Statement of Affiliates	3	-
IV.	Independent Auditors’ Report	4~7	-
V.	Consolidated Balance Sheet	8	-
VI.	Consolidated Statements of Comprehensive Income	9~11	-
VII.	Consolidated Statements of Changes Equity	12	-
VIII.	Consolidated Statements of Cash Flows	13~15	-
IX.	Notes to consolidated financial reports
	(I) Organization and operations	16	1
	(II) The Authorization of Consolidated Financial Statements	16	2
	(III) Application of Newly Released and Revised Standards and Interpretations	16~18	3
	(IV) Summary of Significant Accounting Policies	19~34	4
	(V) Major sources of uncertainty in significant accounting judgments, estimates, and assumptions	34	5
	(VI) Summary of Significant Accounting Items	34~75	6~31
	(VII) Related Party Transactions	75~77	32
	(VIII) Pledged Assets	77	33
	(IX) Significant Contingent Liabilities and Unrecognized Commitments	77	34
	(X) Major Disaster Losses	-	-
	(XI) Significant Subsequent Events	-	-
	(XII) Information on foreign currency assets and liabilities with significant effect	77~78	35
	(XIII) Additional Disclosures
	1. Information about significant transactions	78~79, 82~90	36
	2. Information about investees	79, 91	36
	3. Information on investments in mainland China	79, 92~93	36
	(XIV) Segments Information	79~81	37

March 13, 2026

Declaration of Consolidated Financial Statement of Affiliates

In 2025 (from January 1 to December 31, 2025), the Company included the consolidated financial statements of affiliated enterprises in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises". It is the same as the companies that should be included in the consolidated financial statements of the parent company and subsidiaries in accordance with IFRS 10, and the relevant information to be disclosed in the consolidated financial statements of affiliated companies has been disclosed in the aforementioned consolidated financial statements. Therefore, there will be no separate preparation of combined financial statements of affiliated companies.

Your attention is requested

Company Name: Laster Tech Co., Ltd.

Chairman: Mei-Hsiu Liu

Independent Auditors' Report

To Laster Tech Co., Ltd.:

Audit opinion

We have audited the accompanying consolidated financial statements of Laster Tech Co., Ltd. and its subsidiaries (the "Group"), which comprise the consolidated balance sheet for the years ended December 31, 2025 and 2024, and the consolidated statements changes in equity and cash flows for January 1 to December 31, 2025 and 2024, and notes to the consolidated financial statements (including a summary of significant accounting policies).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and consolidated cash flows for January 1 to December 31, 2025 and 2024 in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis of Audit Opinion

We have conducted the audit according to the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of Consolidated Financial Statements. We are independent of the Company and its subsidiaries in accordance with The Norm of Professional Ethics for Certified Public Accountant of the R.O.C. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe we have obtained sufficient and appropriate audit evidence to express an opinion.

Key Audit Matters

The key audit matters refer to the matters considered by the auditors to be most significant for the auditing of 2025 Consolidated Financial Statements of the Company and its subsidiaries

according to the professional determination thereof. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters in the 2025 Consolidated Financial Statements of the Group are specified below:

Recognition of sales revenue

In 2025, the sales revenue of the Group from major customers was NT$4,715,617 thousand, accounting for 55% of the sales revenue. The impact on the consolidated financial statements is material; hence we have identified the occurrence of the aforementioned revenue recognition as a key audit matter. For the accounting policy for revenue recognition, please refer to Note 4.

The audit procedures we performed included:

To understand and test the design and the implementation of effectiveness concerning internal controls relevant to the above revenue recognition.
The above sales revenue is selected and checked, and the original orders, related statements of account and shipping documents are reviewed.
Send letters to inquiry about the balance of accounts receivable of the above customers at the end of the period. If no reply is received, check the collection status of such accounts.

Other Matters

Laster Tech Co., Ltd. has prepared the parent company only financial statements for 2025 and 2024. We have audited these statements and issued an unqualified opinion. Auditors' Reports issued by other accountants are on record for reference.

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

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

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

Those in charge of governance (including the Auditing Committee) are responsible for overseeing the financial reporting process of the Group.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

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

As part of an audit in accordance with the auditing principles, we exercise professional judgment and professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Group.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group and their ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
6 -

Evaluate the overall presentation, structure and content of the consolidated financial statements (including the notes to the statements), and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit, and we are responsible for forming an audit opinion on the Group.

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

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

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

Deloitte Taiwan
CPA, Chih-Yuan Chen
CPA, Yao-Lin Huang
Financial Supervisory Commission Approval Letter No.
Jin-Guan-Cheng-Shen-Zi No. 1060023872
Financial Supervisory Commission Approval Letter No.
Jin-Guan-Cheng-Shen-Zi No. 1060004806

March 16, 2026

Laster Tech Co., Ltd. and Subsidiaries
Consolidated Balance Sheet
December 31, 2025 and 2024
Unit: NT$ thousand

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
	Current assets
1100	Cash and cash equivalents (Notes 4 and 6)	$ 1,628,187	16	$ 2,383,455	22
1110	Financial assets at fair value through profit or loss - current (Notes 4 and 7)	632,599	6	22,222	-
1136	Financial assets measured at after-amortization cost - current (Notes 4 and 9)	314,720	3	3,290	-
1140	Contract assets - current (Notes 4 and 24)	29,637	-	43,545	-
1150	Notes receivable (Notes 4, 10, 24 and 31)	675,901	7	813,557	8
1160	Notes receivable - related parties (Notes 4, 24, 31 and 32)	121,902	1	163,527	2
1170	Accounts receivable (Notes 4, 10, and 24)	2,270,330	22	2,489,889	24
1180	Accounts receivable - related parties (Notes 4, 24 and 32)	84,621	1	169,943	2
1197	Finance lease receivables (Notes 4 and 11)	11,602	-	17,646	-
1200	Other receivables (Notes 4 and 10)	225,182	2	57,792	1
1220	Current income tax assets (Note 4 and 26)	16,541	-	15,352	-
130X	Inventories (Notes 4 and 12)	1,715,029	17	1,895,558	18
1410	Prepayments (Note 17)	203,317	2	124,839	1
1470	Other current assets (Notes 4, 17 and 33)	105,744	1	240,811	2
11XX	Total current assets	8,035,312	78	8,441,426	80
	Non-Current Assets
1517	Financial assets at fair value through other comprehensive income - current (Notes 4 and 8)	181,032	2	-	-
1600	Property, plant and equipment (Notes 4, 14 and 33)	1,573,163	15	1,593,474	15
1755	Right-of-use assets (Notes 4 and 15)	267,968	3	322,265	3
1780	Intangible assets (Notes 4 and 16)	52,395	-	26,227	-
1840	Deferred tax assets (Notes 4 and 26)	127,540	1	136,191	1
194D	Long-term finance lease receivable (Notes 4 and 11)	-	-	12,915	-
1975	Net defined benefit assets - non-current (Note 4 and 22)	5,739	-	4,886	-
1990	Other non-current assets (Notes 4, 17 and 33)	82,764	1	42,525	1
15XX	Non-current assets	2,290,601	22	2,138,483	20
1XXX	Total assets	$ 10,325,913	100	$ 10,579,909	100
Code	Liabilities and equity
	Current liabilities
2100	Short-term borrowings (Notes 18 and 33)	$ 1,766,972	17	$ 1,986,595	19
2110	Short-term notes payable (Note 18)	-	-	358,644	3
2130	Contract liabilities - current (Notes 4 and 24)	7,208	-	2,173	-
2170	Accounts payable (Notes 20 and 32)	2,311,567	22	2,616,135	25
2200	Other payables (Notes 21 and 32)	277,666	3	333,193	3
2230	Current income tax liabilities (Note 4 and 26)	9,386	-	22,719	-
2280	Lease liabilities - current (Notes 4 and 15)	49,910	-	62,764	1
2320	Long-term borrowings and bonds payable due within one year (Notes 4, 18, 19 and 33)	158,693	2	309,760	3
2399	Other current liabilities (Note 21)	9,446	-	36,796	-
21XX	Total current liabilities	4,590,848	44	5,728,779	54
	Non-current liabilities
2500	Financial liabilities measured at fair value through profit or loss - non-current (Notes 4 and 7)	6,630	-	2,460	-
2530	Corporate bonds payable (Notes 4 and 19)	283,893	3	275,611	3
2540	Long-term borrowings (Notes 18 and 33)	1,618,285	16	762,434	7
2570	Deferred income tax liabilities (Notes 4 and 26)	21,239	-	23,654	-
2580	Lease liabilities - non-current (Notes 4 and 15)	226,887	2	269,234	3
2645	Guarantee deposits received	850	-	850	-
25XX	Non-total current liabilities	2,157,784	21	1,334,243	13
2XXX	Total liabilities	6,748,632	65	7,063,022	67
	Equity (Notes 4, 19, 23 and 28)
	Share capital
3110	Common shares	1,212,284	12	1,151,590	11
3200	Stock dividends from	1,725,054	17	1,593,750	15
	Retained earnings
3310	Legal reserve	170,592	2	143,346	1
3320	Special reserve	98,088	1	193,466	2
3350	Undistributed earnings	469,362	4	532,823	5
3300	Total retained earnings	738,042	7	869,635	8
	Other interests
3410	Currency translation difference	( 78,147 )	( 1 )	( 98,088 )	( 1 )
3420	Unrealized gains or losses on financial assets measured at fair value through other comprehensive income	170	-	-	-
3400	Total other interests	( 77,977 )	( 1 )	( 98,088 )	( 1 )
3500	Treasury stocks	( 20,122 )	-	-	-
3XXX	Total equity	3,577,281	35	3,516,887	33
	Total liabilities and equity	$ 10,325,913	100	$ 10,579,909	100

Chairman: Luu Mes-Shua
The accompanying notes are a part of the consolidated financial statements.
Manager: Luu Mes-Shua
Chief Accounting Officer: Lu Yun-Chen

Laster Tech Co., Ltd. and Subsidiaries
Consolidated Statements of Comprehensive Income
For the Years then Ended December 31, 2025 and 2024
Units: NT$ in thousands; except earnings per share in NT$

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenues (Notes 4, 24 and 32)	$ 8,542,795	100	$ 9,338,397	100
5000	Operating costs (Notes 4, 12, 16, 25 and 32)	7,642,230	89	8,039,967	86
5900	Operating margin	900,565	11	1,298,430	14
	Operating expenses (Notes 4, 10, 16, 25 and 28)
6100	Selling and marketing expenses	254,960	3	292,098	3
6200	General and administrative expenses	282,349	4	297,759	3
6300	Research and development expenses	339,205	4	391,955	5
6450	Expected credit impairment loss	3,396	-	5,421	-
6000	Total operating expenses	879,910	11	987,233	11
6500	Other income and expense, net (Note 4 and 25)	2,231	-	525	-
6900	Net operating profit	22,886	-	311,722	3
	Non-operating income and expenses (Notes 4 and 25)
7100	Interest income	30,167	-	18,013	-
7010	Other income	21,523	-	17,207	-
7020	Other gains and losses	54,509	1	48,591	1
7050	Financial costs	( 103,229 )	( 1 )	( 93,066 )	( 1 )
7000	Total non-operating income and expenses	2,970	-	( 9,255 )	-
7900	Net Income before tax	25,856	-	302,467	3

Code		2025		2024
		Amount	%	Amount	%
7950	Income tax expenses (Notes 4 and 26)	($ 12,682)	-	($ 31,110)	-
8200	Net profit for the year	13,174	-	271,357	3
	Other comprehensive income
	Items not reclassified
	subsequently to profit
	or loss:
8311	Remeasurement of
	defined benefit
	plan (Notes 4 and 22)	780	-	1,378	-
8349	Income taxes related
	to items that will
	not be reclassified
	subsequently to
	profit or loss
	(Notes 4 and 26)	( 156 )	-	( 276 )	-
8310		624	-	1,102	-
	Items possibly
	recategorized to profits
	and losses later:
8361	Currency translation
	difference (Note
	4)	24,927	-	119,222	1
8367	Unrealized gains or
	losses on
	investments in
	debt instruments
	measured at fair
	value through
	other
	comprehensive
	income (Note
	4).	213	-	-	-
8399	Income taxes related
	to Items that may
	be reclassified
	subsequently to
	profit or loss
	(Notes 4 and 26)	( 5,029 )	-	( 23,844 )	-
8360		20,111	-	95,378	1

Code		2025		2024
		Amount	%	Amount	%
8300	Other comprehensive income for the year (net after tax)	20,735	-	96,480	1
8500	Total comprehensive income for the year	$ 33,909	-	$ 367,837	4
8610	Net profit attributable to: Owners of the parent company	$ 13,174	-	$ 271,357	3
8620	Non-controlling interests	-	-	-	-
8600		$ 13,174	-	$ 271,357	3
8710	Total comprehensive income attributable to: Owners of the parent company	$ 33,909	-	$ 367,837	4
8720	Non-controlling interests	-	-	-	-
8700		$ 33,909	-	$ 367,837	4
9710	Earnings per share (Note 27) Basic	$ 0.11		$ 2.36
9810	Diluted	$ 0.11		$ 2.16

The accompanying notes are a part of the consolidated financial statements.

Chairman: Liu Mei-Shiu Manager: Liu Mei-Shiu Chief Accounting Officer: Li Yun-Chen

Unit: NT$ thousand
- 12 -

Latter Tech Co., Ltd. and Subsidiaries
Consolidated Statements of Changes Equity
For the Years then Ended December 31, 2025 and 2024

Code		Share capital				Retained earnings				Other interests
		Common shares	Bond conversion entitlement certificates	Total	Stock dividends from	Legal reserve	Special reserve	Undistributed earnings	Total	Currency translation difference	Unrealized gains or losses on financial assets measured at fair value through other comprehensive income	Total	Treasury stocks	Total equity
A1	Balance on January 1, 2024	$ 1,135,217	$ 13,280	$ 1,148,497	$ 1,558,458	$ 112,252	$ 144,525	$ 512,878	$ 769,655	( $ 193,466 )	$ -	( $ 193,466 )	$ -	$ 3,283,144
B1	2023 Appropriation and distribution of retained earnings	-	-	-	-	31,094	-	( 31,094 )	-	-	-	-	-	-
	Legal reserve	-	-	-	-	-	48,941	( 48,941 )	-	-	-	-	-	-
B3	Cash dividends to the Company's shareholders	-	-	-	-	-	-	( 172,479 )	( 172,479 )	-	-	-	-	( 172,479 )
C5	Convertible bonds issued recognized as equity components	-	-	-	22,835	-	-	-	-	-	-	-	-	22,835
I1	Convertible bonds and Bond conversion entitlement certificates converted to common shares	16,373	( 13,280 )	3,093	9,646	-	-	-	-	-	-	-	-	12,739
N1	Issuance of employee stock warrants by the Company	-	-	-	2,811	-	-	-	-	-	-	-	-	2,811
D1	2024 Net profit	-	-	-	-	-	-	271,357	271,357	-	-	-	-	271,357
D3	Other comprehensive income (loss) in 2024	-	-	-	-	-	-	1,102	1,102	95,378	-	95,378	-	96,480
D5	Total comprehensive income (loss) of 2024	-	-	-	-	-	-	272,459	272,459	95,378	-	95,378	-	367,837
Z1	Balance on December 31, 2024	1,151,590	-	1,151,590	1,593,750	143,346	193,466	532,823	869,635	( 98,088 )	-	( 98,088 )	-	3,516,887
B1	2024 Appropriation and distribution of retained earnings	-	-	-	-	27,246	-	( 27,246 )	-	-	-	-	-	-
	Legal reserve	-	-	-	-	-	( 95,378 )	95,378	-	-	-	-	-	-
B5	Cash dividends to the Company's shareholders	-	-	-	-	-	-	( 145,391 )	( 145,391 )	-	-	-	-	( 145,391 )
C5	Convertible bonds issued recognized as equity components	-	-	-	-	-	-	-	-	-	-	-	-	-
E1	Cash Capital Increase	60,000	-	60,000	129,000	-	-	-	-	-	-	-	-	189,000
I1	Conversion of convertible bonds into common shares	694	-	694	2,304	-	-	-	-	-	-	-	-	2,998
L1	Repurchase of treasury shares	-	-	-	-	-	-	-	-	-	-	-	( 20,122 )	( 20,122 )
D1	2025 Net profit	-	-	-	-	-	-	13,174	13,174	-	-	-	-	13,174
D3	Other comprehensive income for 2025	-	-	-	-	-	-	624	624	19,941	170	20,111	-	20,735
D5	Total comprehensive income for 2025	-	-	-	-	-	-	13,798	13,798	19,941	170	20,111	-	33,909
Z1	Balance on December 31, 2025	$ 1,212,284	$ -	$ 1,212,284	$ 1,725,054	$ 170,592	$ 98,088	$ 469,362	$ 738,042	( $ 78,147 )	$ 170	( $ 77,977 )	( $ 20,122 )	$ 3,577,281

The accompanying notes are a part of the consolidated financial statements.
Chairman: Liu Mei-Shiu
Manager: Liu Mei-Shiu
Chief Accounting Officer: Li Yan-Chen

Laster Tech Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years then Ended December 31, 2025 and 2024
Unit: NT$ thousand

Code		2025	2024
	Cash flows from operating activities
A10000	Net income before tax this year	$ 25,856	$ 302,467
A20010	Income and expenses items:
A20100	Depreciation expenses	277,951	276,261
A20200	Amortization expenses	9,789	8,519
A20300	Expected credit impairment loss	3,396	5,421
A20400	Net benefits of financial assets and liabilities measured at fair value through the income	( 54,463 )	( 7,136 )
A20900	Financial costs	103,229	93,066
A21200	Interest income	( 30,167 )	( 18,013 )
A21300	Dividend income	( 7,020 )	( 847 )
A21900	Employee stock options -based compensation costs	-	2,811
A22500	Loss (gain) from the disposal of property, plant and equipment	395	( 2,911 )
A23100	Gain on disposal of investments	( 10,268 )	-
A23700	Loss on scrapped inventories	7,377	15,360
A23800	Loss (gain from price recovery) for market price decline and obsolete and slow-moving inventories	( 8,306 )	56,352
A24100	Unrealized foreign currency conversion gain, net	( 20,185 )	( 1,407 )
A24200	Losses on redemption of payable corporate bonds	-	161
A29900	Profit from lease modification	( 2,231 )	( 525 )
	Net change in operating assets and liabilities
A31125	Contract assets	13,908	11,546
A31130	Note receivable	137,656	( 309,551 )
A31140	Notes receivable - Related parties	41,625	( 72,712 )
A31150	Accounts receivable	220,499	( 153,286 )
A31160	Accounts receivable - Related parties	85,322	44,158
A31180	Other receivables	( 141,926 )	17,181
A31200	Inventory	179,684	325,765
A31230	Prepayments	( 78,942 )	17,110
A31240	Other current assets	133,141	183,583
A31260	Net defined benefit assets	( 73 )	( 43 )
A32125	Contractual liabilities	5,035	( 3,454 )
A32150	Notes and payable	( 302,654 )	12,079

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| Code | | 2025 | 2024 |
| --- | --- | --- | --- |
| A32180 | Other payables | ($ 76,908) | $ 39,666 |
| A32230 | Other current liabilities | ( 27,350) | 24,754 |
| A33000 | Cash generated from operations | 484,370 | 866,375 |
| A33100 | Interest received | 23,839 | 18,217 |
| A33300 | Interest paid | ( 89,854) | ( 89,105) |
| A33500 | Income tax paid | ( 25,402) | ( 50,990) |
| AAAA | Net cash inflow from operating activities | 392,953 | 744,497 |
| Cash flows from investing activities | | | |
| B00010 | Acquisition of financial assets at fair value through other comprehensive income | ( 189,953) | - |
| B00020 | Disposal of financial assets at fair value through other comprehensive income | 14,199 | - |
| B00040 | Acquisition of financial assets measured at after-amortization cost | ( 545,381) | - |
| B00050 | Disposal of financial assets measured at after-amortization cost | 245,361 | 4,779 |
| B00100 | Acquisition of financial assets at fair value through profit or loss | ( 728,602) | ( 726,922) |
| B00200 | Disposal of financial assets at fair value through profit or loss | 183,688 | 865,823 |
| B00700 | Refund of capital investment in capital reduction from financial assets measured at fair value through profit or loss | - | 1,832 |
| B02700 | Acquisition of property, plant and equipment | ( 192,746) | ( 152,364) |
| B02800 | Proceeds from the disposal of property, plant and equipment | 12,990 | 6,765 |
| B03700 | Decrease (increase) in refundable deposits | ( 1,705) | 952 |
| B04500 | Acquisition of intangible assets | ( 24,806) | ( 10,553) |
| B06100 | Decrease in finance lease receivables | 18,390 | 27,722 |
| B06500 | Decrease (increase) in other financial assets | 1,924 | ( 20,705) |
| B07100 | Increase in prepayment for equipment | ( 58,390) | ( 27,354) |
| B07300 | Decrease in prepaid lease payments | 1,643 | - |
| B07600 | Dividends received | 7,020 | 847 |
| BBBB | Net cash outflow from investment activities | ( 1,256,368) | ( 29,178) |
| Cash flows from financing activities | | | |
| C00100 | Increase (decrease) in short-term borrowings | ( 213,089) | 240,558 |

C00500	(Decrease) increase in short-term notes payable	( 360,000 )	99,256
C01200	Issuance of corporate bonds	-	299,280
C01300	Repayment of corporate bonds	( 145,400 )	( 6,827 )
C01600	Proceeds of long-term borrowings	1,640,000	169,212
C01700	Repayment of long-term borrowings	( 767,435 )	( 156,704 )
C04020	Repayment of principal of lease liabilities	($ 66,578 )	($ 60,052 )
C04500	Cash dividends to the Company's shareholders paid	( 145,391 )	( 172,479 )
C04600	Cash Capital Increase	189,000	-
C04900	Purchase of treasury shares	( 20,122 )	-
CCCC	Net cash inflow from financing activities	110,985	412,244
DDDD	Effects of exchange rate changes on the balance of cash and cash equivalents	( 2,838 )	110,814
EEEE	Increase (decrease) in cash and cash equivalents	( 755,268 )	1,238,377
E00100	Balance of cash and cash equivalents at the beginning of the year	2,383,455	1,145,078
E00200	Balance of cash and cash equivalents at the end of the year	$ 1,628,187	$ 2,383,455

The accompanying notes are a part of the consolidated financial statements.

Chairman: Liu Mei-Shiu Manager: Liu Mei-Shiu Chief Accounting Officer: Li Yun-Chen

Laster Tech Co., Ltd. and Subsidiaries
Notes to consolidated financial reports
January 1 to December 31, 2025 and 2024
(In NT$ thousands unless otherwise stated)

I. Organization and operations

Established in August 1999, Laster Tech Co., Ltd. (hereinafter referred to as "the Company") is primarily engaged in the sales of LED chips and components and assembly and sales of LED automotive lighting, LED lighting fixtures-related products and automotive lighting controllers.

The Company's shares began listing on TWSE on December 19, 2016.

The presentation currency of the consolidated financial statements is the functional currency of the Company, "NTD."

II. The Authorization of Consolidated Financial Statements

The Consolidated Financial Statements have been passed by the Board on March 13, 2026.

III. Application of Newly Released and Revised Standards and Interpretations

(I) The International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations (IFRIC) and the statements of interpretation (SIC) (the "IFRS Accounting Standards") approved and released by the Financial Supervisory Commission (hereinafter referred to as "IFSC") are applied for the first time.

The application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC does not have a material impact on the accounting policies of the Company and the entities controlled by the Company (the "Group").

(II) FSC-approved IFRS Accounting Standards to be applied in 2026

New issued/amended/revised standards and interpretations	Effective date of the release of the International Accounting Standards Board (IASB)
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 01, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-Dependent Electricity”	January 01, 2026
“Annual Improvements to IFRS Accounting Standards — Volume 11”	January 01, 2026
IFRS 17 "Insurance Contracts" (including amendments in 2020 and 2021)	January 01, 2023

As of the date of authorization for issuance of these consolidated financial statements, the Group has assessed that the amendments to the various standards and interpretations will not have a material impact on its consolidated financial position and consolidated financial performance.

(III) IFRS Accounting Standards issued by the IASB but not yet approved and released by the FSC

New issued/amended/revised standards and interpretations	Effective Date per IASB (Note 1)
Amendments to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and their Associate or Joint Venture”	To be determined
IFRS 18“Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments)	January 01, 2027
Amendments to IAS 21“Translation into a Hyperinflationary Presentation Currency”	January 01, 2027

Note 1: Unless otherwise specified, the above-mentioned new/amended/revised standards or interpretation shall become effective in the annual reporting periods beginning on or after each effective date for such standards or interpretation.

Note 2: The Financial Supervisory Commission announced on September 25, 2025, that enterprises in Taiwan shall apply IFRS 18 starting January 1, 2028. Early adoption is permitted upon approval of IFRS 18 by the Financial Supervisory Commission.

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

IFRS 18 will replace IAS 1 “Presentation of Financial Statements.” The main changes include:

The Group shall assess whether it has specific main business activities, such as investing in particular types of assets or providing financing to customers, and, based on such assessment, classify income and expense items in the statement of profit or loss into operating, investing, financing, income tax, and discontinued operations categories.
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The statement of profit or loss shall present operating profit or loss, profit or loss before financing and income tax, as well as subtotals and totals of profit or loss.
Guidance is provided to strengthen aggregation and disaggregation requirements: the Group shall identify assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and aggregate them based on shared characteristics, so that each line item presented in the primary financial statements has at least one similar characteristic. Items with dissimilar characteristics shall be disaggregated in the primary financial statements and in the notes. The Group shall label such items as “other” only when a more informative description cannot be identified.
Enhancing disclosures of management-defined performance measures: when the Group communicates publicly outside the financial statements, or conveys management’s view of a particular aspect of the Group’s overall financial performance to users of the financial statements, it shall disclose in a single note to the financial statements information about management-defined performance measures, including a description of the measure, how it is calculated, a reconciliation to subtotals or totals specified by IFRS Accounting Standards, and the effects of related reconciling items on income tax and non-controlling interests.

In addition, the following consequential amendments are made to IAS 7:

When the Group uses the indirect method to prepare cash flows from operating activities, operating profit or loss shall be used as the starting point for reconciliation.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If the Group determines that it has specific main business activities, it shall consider the nature of dividend income, interest income, and interest expense presented in the statement of profit or loss in order to determine the classification of dividends received, interest received, and interest paid in the statement of cash flows. However, each of the above cash flows shall be classified into only one category of activities in the statement of cash flows.

Except for the above-mentioned effects, up to the approval and release date of the consolidated financial statements, the Group assessed the effects of the amendments to other standards and interpretations on the consolidated financial position and consolidated financial performance on a continuous basis. The relevant effects will be disclosed after the assessment.

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IV. Summary of Significant Accounting Policies

(I) Statement of compliance

The consolidated financial statements were prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS Accounting Standards approved and released by the FSC.

(II) Basis of preparation

Except for financial instruments measured at fair value and the net defined benefit asset recognized as the fair value of plan assets less the present value of defined benefit obligations, these consolidated financial statements have been prepared on a historical cost basis.

Fair value measurements are classified into Level 1, 2 and 3 based on the degree to which an input is observable and the significance of the input:

Level 1 inputs: refer to quoted prices in an active market for identical assets or liabilities that are accessible on the measurement date (before adjustment).
Level 2 inputs: refer to the inputs, other than the quoted prices included in Level 1, that are observable for assets or liabilities directly (namely, the price) or indirectly (namely, presumed from the price).
Level 3 inputs: refer to the inputs that are not observable for assets or liabilities.

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

Current assets include:

assets held mainly for the purpose of trading;
assets expected to be realized within 12 months after the balance sheet date; and
cash or cash equivalents (excluding those that are restricted for being used for exchange or settlement of liabilities within 12 months after the balance sheet date).

Current liabilities include:

liabilities held mainly for the purpose of trading;
liabilities to be settled within 12 months after the balance sheet date, (irrelevant whether any long-term re-financing or payment re-arrangement agreement has been completed after the balance sheet date and before the date of release of financial statements; such liabilities are still current liabilities); and
Liabilities for which there is no substantive right to defer settlement beyond the balance sheet date by at least 12 months.
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Assets or liabilities that are not the above-mentioned current assets or current liabilities are classified as non-current assets or non-current liabilities. If the terms of a liability allow it to be settled, at the counterparty’s option, by transferring the Group’s equity instruments, such terms do not affect the classification of the liability as current or non-current, provided that the Group classifies the option as an equity instrument.

(IV) Basis of consolidation

The consolidated financial statements are financial statements including the Company and the entities controlled (subsidiaries). The operating profits and losses of acquired or disposed subsidiaries from the acquisition date to the disposal date in the current period are included in the consolidated statement of comprehensive income. The financial statements of the subsidiaries are adjusted to have their accounting policies consistent with those of the Group. All the transactions, account balances, profits, and expenses/losses between entities are eliminated during the preparation of the consolidated financial statements. The total comprehensive income of the subsidiaries is attributable to the owner of the Company and the non-controlling equity even though this results in the non-controlling equity having a deficit balance.

Changes to the Group’s equity ownership in the subsidiaries are treated as equity transactions if the changes do not result in loss of control. The book values of the Group and the non-controlling equity are adjusted to reflect the changes in their relative equity in the subsidiaries. The difference between the adjusted amount of the non-controlling equity and the fair value of any paid or received consideration is directly recognized as equity and attributable to the owner of the Company.

For details of the shareholding ratio and operating items of subsidiaries, please refer to Note 13 and Tables 7 and 8.

(V) Foreign currency

During the preparation of each entity’s financial statements, transactions using currencies other than the entity’s functional currency (foreign currencies) are stated in the functional currency at the exchange rate on the date of transaction.

Monetary foreign currency items are translated at the closing exchange rate on each balance sheet date. Exchange differences arising from settlement or translation of the monetary items are recognized as profit or loss in the current period.

Non-monetary foreign currency items measured at fair value are translated at the exchange rate on the date of determining the fair value, and the exchange differences resulting therefrom are recognized as profit or loss in the current period. However,

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when changes in the fair value are recognized as other comprehensive income, the exchange differences arising therefrom are stated as the same.

Non-monetary foreign currency items measured at historical cost are translated at the exchange rate on the date of transaction and are not retranslated.

During the preparation of the consolidated financial statements, the assets and liabilities of the Company and foreign operations (including the subsidiaries, associates, joint ventures or branches with countries in which they operate or currencies they use different from those of the Company) are translated into NTD at the exchange rate on each balance sheet date. Their profit and expense/loss items were translated at the average exchange rate of the period, and the exchange differences resulting therefrom were recognized in other comprehensive income.

If the Group disposes of its entire interest in a foreign operation, or disposes of part of its interest in a subsidiary that is a foreign operation and loses control, or if, after disposing of a foreign operation, the retained interest is a financial asset accounted for in accordance with the accounting policies for financial instruments, all cumulative exchange differences related to that foreign operation shall be reclassified to profit or loss.

If a partial disposal of a subsidiary that is a foreign operation does not result in a loss of control, the accumulated exchange differences are reattributed to the non-controlling interests of that subsidiary on a pro rata basis and are not recognized in profit or loss. In the case of any other partial disposal of a foreign operation, the accumulated exchange differences shall be reclassified to profit or loss in proportion to the disposal.

(VI) Inventory

Inventory includes raw materials, materials, finished goods work in process, and real estate held for sale. The inventory is measured based on the lower of the cost or net realizable value. The cost and the net realizable value are compared on the basis of the individual items except for the inventories of the same type. Net realizable value refers to the estimated selling price in a normal situation less the estimated cost needed to complete the work and the estimated cost needed to complete the sale. The weighted average method is used to calculate the inventory cost.

(VII) Property, plant and equipment

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The property, plant, and equipment are recognized in accordance with the cost and subsequently measured based on the cost net of accumulated depreciation and impairment losses.

The property, plant, and equipment under construction are recognized based on the cost net of accumulated impairment losses. The cost included professional service fees and the loan costs eligible for capitalization. Once the assets are completed and ready for their intended use, the assets are classified as appropriate items under property, plant and equipment, and the depreciation of the assets starts.

Except for the self-owned land that is not depreciated, the remaining properties, plants, and equipment are separately depreciated on the straight-line basis over its useful life. The Group reviews the estimated useful life, residual value and method of depreciation at least on the end day of each year and prospectively recognizes the effect of changes in accounting estimates.

For derecognition of the property, plant and equipment, the difference between the net disposal proceeds and the asset book value is recognized as profit or loss.

(VIII) Intangible assets

Acquired separately

Intangible assets with limited useful life acquired separately are initially measured in accordance with the cost and subsequently based on the cost net of accumulated amortization and impairment losses. Intangible assets are amortized on the straight-line basis over its useful life. The Group reviews the estimated useful life, residual value and method of amortization at least on the end day of each year and prospectively recognizes the effect of changes in accounting estimates. Intangible assets with indefinite useful life are recognized based on the cost net of accumulated impairment losses.

Derecognition

For derecognition of the intangible assets, the difference between the net disposal proceeds and the asset book value is recognized as profit or loss of the period.

(IX) Impairments of property, plant and equipment, right-of-use assets, and intangible assets

The Group assesses whether there are any signs indicating that any property, plant and equipment, right-of-use assets, and intangible assets (excluding goodwill) may be impaired on each balance sheet date. If there is any of such signs, the recoverable

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amount of the asset is estimated. When the recoverable amount of individual assets cannot be estimated, the Group estimates the recoverable amount of the cash-generating unit to which the assets belong. Shared assets are allocated to individual cash-generating units on a reasonable and consistent basis.

Intangible assets with indefinite useful lives and those not yet available for use are tested for impairment at least annually and whenever there is an indication of impairment.

The recoverable amount is the higher of the fair value less costs of sale and the value in use. When the recoverable amount of any individual assets or cash-generating units is less than the book value, the book value of the individual assets or cash-generating units is adjusted down to the recoverable amount, and the impairment loss is recognized as profit or loss.

When the impairment loss is reversed subsequently, the book value of the asset, cash-generating unit or contract cost-related assets is adjusted up to the revised recoverable amount. However, the increased book value does not exceed the book value (less the amortization or depreciation) determined under the circumstance that the impairment loss of the assets, cash-generating unit or contract cost-related assets is not recognized in the previous year. The reversal of the impairment loss is recognized as profit or loss.

(X) Financial instrument

All financial assets and all financial liabilities are recognized in the consolidated balance sheet when the Group becomes a party to the contractual provisions of the instrument.

At initial recognition, a financial asset or financial liability at shall be measured at its fair value. In the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets

Regular transactions of financial assets are recognized and derecognized based on the accounting on the transaction date.

(1) Type of measurements

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The financial assets held by the Group are classified as financial assets at fair value through profit or loss, financial assets measured at amortized cost, and debt instrument investments at fair value through other comprehensive income.

A. Financial assets at FVTPL

Financial assets measured at fair value through profit or loss are mandatorily to be measured at fair value through profit and loss. Financial assets mandatorily measured at fair value through profit or loss include equity instrument investments not designated at fair value through other comprehensive income, and debt instrument investments that do not meet the criteria for classification as measured at amortized cost or at fair value through other comprehensive income.

Financial assets at fair value through profit or loss are measured at fair value. Dividends and interest arising therefrom are recognized in other income and interest income, respectively, while gains or losses arising from remeasurement are recognized in other gains and losses. For the determination of fair value, please refer to Note 31.

B. Financial assets measured at after-amortization cost

When the Group’s invested financial assets meet both of the following two conditions, they are classified as financial assets measured at amortized cost:

a. The financial assets held under a business model with the purpose of holding these assets to collect contractual cash flows; and
b. The contractual terms generate cash flows on a specific date that are solely payments of principal and interest.

After the initial recognition, the financial assets measured at amortized cost (including cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables (excluding value-added tax and employee benefits), other financial assets and refundable deposits) are measured based on the amortized cost equal to the total book value determined under the effective interest method less any impairment losses, and any profit or loss from foreign currency exchange is recognized as profit or loss.

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Except for the following two circumstances, the interest income is calculated as the effective interest rate times the total book value of financial assets:

a. For purchased or originated credit-impaired financial assets, the interest income is calculated as the credit-adjusted effective interest rate times the amortized cost of the financial assets.

b. For financial assets originally not purchased or originated credit-impaired but subsequently becoming credit-impaired, the interest income is calculated as the effective interest rate times the amortized cost of the financial assets in the next reporting period after the credit impairment.

Financial assets are credit-impaired when the issuer or debtor has experienced major financial difficulty, default, the debtor is likely to file for bankruptcy or other financial reorganization, or financial difficulties that cause the active market of the financial asset to disappear.

Cash equivalents include time deposits that are highly liquid, convertible into fixed amounts of cash at any time with little risk of value changes within three months from the date of acquisition, and are used to meet short-term cash commitments.

C. Debt instrument investments at fair value through other comprehensive income

Debt instrument investments held by the Group are classified as financial assets at fair value through other comprehensive income if they meet both of the following conditions:

a. They are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

b. The contractual terms generate cash flows on a specific date that are solely payments of principal and interest.

Debt instrument investments at fair value through other comprehensive income are measured at fair value. Changes in the carrying amount attributable to interest income calculated using the effective interest method, foreign exchange gains or losses, and impairment losses or reversal gains are recognized in profit or loss,

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while other changes are recognized in other comprehensive income. Upon disposal of the investment, the cumulative gain or loss is reclassified to profit or loss.

(2) Impairment of financial assets and contract assets

At each balance sheet date, the consolidated entity assesses impairment losses based on expected credit losses for financial assets measured at amortized cost (including accounts receivable), debt instrument investments measured at fair value through other comprehensive income, finance lease receivables, and contract assets.

Allowances for losses on accounts receivable, finance lease receivables, and contract assets are recognized on the basis of expected credit losses over the life of the leases. Whether the credit risk on other financial assets significantly increases shall be first assessed after the initial recognition. When the increase is not significant, the allowance for losses for the financial assets is recognized based on the 12-month expected credit losses; when the increase is significant, it is recognized on the basis of expected credit losses over the life of the receivables.

The expected credit losses are the average credit losses weighted by the risk of default. 12-month expected credit losses represent the expected credit losses on financial instruments from any potential default within 12 months after the reporting date. Lifetime-expected credit losses represent the expected credit losses on financial instruments from any potential default during the expected lifetime.

For the purpose of internal credit risk management, the Group, without considering the collateral held, determines that the following situations represent a default on the financial assets:

A. There is internal or external information indicating that it is impossible for the debtor to pay off the debt.

B. Overdue for more than 365 days unless there is reasonable and corroborative information showing that the delayed default standard is more appropriate.

The impairment loss on all financial assets is deducted from the book value of the financial assets through allowance accounts. However, the allowance for losses of the investment in liability instruments measured at

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fair value through other comprehensive income is recognized as other comprehensive income, and the book value thereof is not reduced.

(3) Derecognition of financial assets

The Group derecognizes financial assets only when the contractual rights to the cash flows from the assets become invalid, or the financial assets and almost all the risks and returns over the ownership of the financial assets are transferred to other companies.

For removal of the entire financial assets measured at amortized cost, the differences between the book value and the received consideration are recognized in profit or loss. Upon derecognition of debt instrument investments measured at fair value through other comprehensive income, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss previously recognized in other comprehensive income is recognized in profit or loss.

Equity instruments

The debt and equity instruments issued by the Group are classified as financial liabilities or equity based on the definition of real and financial liabilities as well as equity instruments under the terms and conditions of the contracts.

The equity instruments issued by the Group are recognized based on the payment net of the direct cost of issuance.

When a reacquired equity instrument is originally owned by the Company, the re-acquisition is recognized as a deduction from equity. Purchase, sale, issuance or cancellation of the equity instruments owned by the Company are not recognized as profit or loss.

Financial liabilities

(1) Subsequent measurement

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

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include those held for trading.

Financial liabilities held for trading are measured at fair value. Interest arising therefrom is recognized in finance costs, while other gains

27 -

or losses arising from remeasurement are recognized in other gains and losses.

For the determination of fair value, please refer to Note 31.

(2) Derecognition of financial liabilities

For derecognition of financial liabilities, the differences between the book value and the consideration paid (including any non-cash assets transferred and any liabilities assumed) are recognized as profit or loss.

Convertible bonds

The compound instruments (convertible bonds) issued by the Group are classified as financial liabilities and equity in accordance with the component parts be accounted for and presented separately according to their substance based on the definitions of liability and equity, at the time of initial recognition.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate of interest for a similar non-convertible instrument. Amortized cost is calculated using the effective interest method until the date of conversion or maturity. The liability component that is embedded in non-equity derivatives is measured at fair value.

The conversion right classified as equity is equal to the remaining amount of the fair value of the compound instrument as a whole less the fair value of the separately determined liability component. The amount is recognized as equity, net of income tax effect, and is not subsequently measured. When the conversion right is exercised, the related liability component and the amount in equity is transferred to equity and capital surplus - issuance premium. If the conversion right of convertible bonds is not exercised on the maturity date, the amount recognized in equity will be transferred to capital surplus - other.

Transaction costs of issue of convertible bonds are allocated to the liabilities (accounted for in the carrying amount of the liability) and the equity components (accounted for in equity) of the instrument in proportion to the total apportioned price.

The conversion option component embedded in the convertible bonds issued by the Company does not meet the criterion of settlement by exchanging a fixed amount of cash or another financial asset for a fixed number of the Group's own equity instruments; accordingly, it is classified as a derivative financial liability.

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At initial recognition, the derivative financial liability component of the convertible bonds is measured at fair value, while the initial carrying amount of the non-derivative financial liability component is the residual amount after separating the embedded derivative. In subsequent periods, the non-derivative financial liability is measured at amortized cost using the effective interest method, while the derivative financial liability is measured at fair value, with changes in fair value recognized in profit or loss. Transaction costs directly attributable to the issuance of convertible bonds are allocated to the non-derivative financial liability component (included in the carrying amount of the liability) and the derivative financial liability component (recognized in profit or loss) in proportion to their relative fair values.

(XI) Revenue recognition

The Group allocates the transaction price to performance obligations after the performance obligations are identified in the customer contract. Revenue is recognized when performance obligations are satisfied.

Revenue from merchandise sales

Revenue from merchandise sales is generated from the sales of LED automotive lighting modules, LED chips, LED components, and LED lighting fixtures and lighting controllers. The revenue and accounts receivable are recognized at that point of time once the merchandise is delivered to the customer-designated location or after the customers picks up the merchandise and transfer ownership control and the Group has personally verified that the customer is entitled to the products' price determination and right of use, and has the main responsibility to resell the merchandise, and takes the risk that the products might become outdated. The receipts in advance from the sale are recognized as contract liabilities before the delivery of the products.

(XII) Leases

The Group assesses whether an agreement is (or contained) a lease on the date of entering into the agreement.

The Group is the lessor

A lease is classified as finance leases when almost all the risks and returns attached to the ownership of assets are transferred to the lessee according to the terms and conditions. All the other leases are classified as operating leases.

Under finance leases, lease payments include variable lease payments that depend on an index or a rate. The net lease investment is measured by the sum

29 -

of the present value of the lease payment receivable and the unguaranteed residual value plus the initial direct cost and presented as financial lease receivable. Finance lease income is allocated to each accounting period to reflect the fixed rate of return on the Group’s net investment outstanding in respect of leases.

When the lease includes both land and building elements, the Group assesses whether each element is classified as a finance lease or an operating lease based on whether almost all the risks and rewards attached to the ownership of each element have been transferred to the lessee. For lease payments, the fair value of the lease rights of land and buildings on the contract establishment date to land and buildings based on the respective proportion. If the lease payment can be reliably allocated to these two elements, each element is treated according to the applicable lease classification. If the lease payments cannot be reliably allocated to these two elements, the overall lease is classified as a financial lease; however, if these two elements clearly meet the criteria for an operating lease, the overall lease is classified as an operating lease.

The Group is the lessee

The lease payment from the leases of low-value underlying assets to which the exemption of recognition is applied and short-term lease is recognized as expenses on the straight-line basis over the lease term, while right-of-use assets and lease liabilities with respect to other leases are recognized on the lease commencement date.

The right-of-use assets are initially measured based on the cost (the initial recognized amount of lease liabilities) and subsequently measured based on the cost net of accumulated depreciation and accumulated impairment losses, and then the remeasurement of the lease liabilities is adjusted. The right-of-use assets are separately presented in the consolidated balance sheet.

The right-of-use assets are depreciated on the straight-line basis over the period from the lease commencement date to the expiration of the useful life or the lease term, whichever is sooner.

The lease liabilities are initially measured based on the present value of lease payments (including fixed payments). If the interest rate implicit in a lease could be readily determined, the lease payments were discounted at the interest

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rate. When such interest rate cannot be readily determined, the lessee's incremental borrowing rate of interest is used.

Subsequently, the lease liabilities are measured at amortized cost under the effective interest method, and the interest expenses are amortized over the lease term. When any changes in the lease term cause changes in future lease payments, the right-of-use assets are adjusted accordingly. However, if the carrying amount of the right-of-use asset is reduced to zero, any remaining amount of the remeasurement shall be recognized in profit or loss. A lease liability is recorded as separate line item on the consolidated balance sheet.

(XIII) Cost of borrowing

The cost of borrowing that can be directly attributable to the assets for which acquisition, building or production meet the requirements is part of the cost of such assets until almost all the required activities for them to reach the intended status of use or sale are completed.

The income earned from temporary investment by using certain loans before the occurrence of capital expenses meeting the requirements is deducted from the cost of borrowing that meets the requirements of capitalization.

Otherwise, all the costs of borrowing are recognized as profit or loss in the year in which the borrowing occurred.

(XIV) Government subsidy

A government grants is recognized only when there is reasonable assurance that the Group will comply with the conditions attached to the grant and the grant will be received.

The grant is recognized as income over the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis. Government grants for which the acquisition of non-current assets in a purchase or building manner or in other manners by the Group is necessary are recognized as deferred income and transferred to profit or loss on a reasonable and systematic basis over the useful life of the relevant assets.

If the government grants are used to make up the expenses or losses that have occurred, or immediately support the finance of the Group and there is no future cost, such grants are recognized in profit or loss during the period when they can be received.

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A government grant may take the form of a transfer of a non-monetary asset, for the use of the Group. In these circumstances it is usual to assess the fair value of the non-monetary asset at that fair value.

For government loans obtained by the Group at below-market interest rates, the difference between the proceeds received and the fair value of the loan calculated using the prevailing market interest rate is recognized as a government grant.

(XV) Employee welfare

Short-term employee benefits

Liabilities related to short-term employee benefits are measured at non-discounted amount expected to be paid against the services to be provided by the employees.

Post-employment benefits

Every pension fund contributed under the defined pension contribution plan is recognized as expenses during the period when employees provide services.

Defined retirement benefit costs (including service costs, net interest, and remeasurement) under the defined retirement benefit plan are calculated actuarially using the projected unit credit method. Service costs (including current and previous service costs) and net interest on net defined benefit liabilities (assets) are recognized in employee benefit expenses when they are incurred. Remeasurement (including actuarial profits or losses and return on plan assets net of interest) is recognized in other comprehensive income and presented in retained earnings when it occurs. It is not reclassified as profit or loss in the subsequent periods.

Net defined benefit liabilities (assets) represent the contribution deficit (surplus) in the defined retirement benefit plan. Net defined benefit assets shall not exceed the present value of contribution refunded from the defined retirement benefit plan or future deductible contribution.

(XVI) Share-based payment agreement

Employee stock options

Employee stock options are recognized as expenses based on the fair value of equity instruments on the grant date and the best estimate of the vested amount on the straight-line basis over the vesting period, while the capital reserve -employee stock options shall be adjust. If the amount is immediately vested on the grant date, it is

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recognized as expenses on that date. The Group may reserve employee share options. The grant date is the date of shares subscribed by employees.

(XVII) Income tax

The income tax expenses are the total of current and deferred taxes.

Income Tax of the current period

The Group determines the current revenue (loss) in accordance with the laws and regulations of the jurisdiction where the income tax returns are filed and, with this as a basis, calculates the income tax payable (receivable).

The additional income tax on undistributed earnings calculated according to the Income Tax Act of the Republic of China is recognized in the year when the related resolution is made at the shareholders' meeting.

The adjustments to the income tax payable in the previous year are recognized in the current income tax.

Deferred tax

The deferred taxes are calculated based on the temporary difference between the book value of assets and liabilities in the book and the tax base for calculation of taxable income.

The general principle is that a deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset shall be recognized for the carryforward of income tax credits arising from temporary differences, or loss carryforwards can be utilized.

Taxable temporary differences generated from investment in subsidiaries, associates and joint arrangements are recognized in deferred tax liabilities except where the Group can control the timing of reversal of the taxable temporary differences, and where such differences are not likely to be reversed in the foreseeable future. Deductible temporary differences related to such investment are recognized, to the extent that they are expected to be reversed in the foreseeable future, as deferred tax assets only when we are likely to have taxable income adequate to realize the temporary differences.

The book value of deferred tax assets is reviewed at each balance sheet date. When any of the deferred tax assets is not likely to have taxable income adequate to return all or part of the assets anymore, the book value thereof is reduced. Those that are not originally recognized as deferred tax assets are reviewed at each balance sheet date. When any of those is likely to generate taxable income

33 -

adequate to return all or part of the assets in the future, the book value thereof is increased.

The deferred tax assets and liabilities are measured at the tax rate of the period in which the liabilities or assets are expected to be settled or realized. The tax rate is subject to the tax rate and tax laws legislated or substantively legislated on the balance sheet date. The deferred tax liabilities and assets are measured to reflect the tax on the balance sheet date arising from the method that the Group excepts to use to recover or settle the book value of the liabilities and assets.

Current and deferred income tax

The current and deferred taxes are recognized as profit or loss other than those related to the titles stated as other comprehensive income or as equity directly, which are recognized in other comprehensive income separately or in equity directly.

V. Major sources of uncertainty in significant accounting judgments, estimates, and assumptions

For adoption of the accounting policies, management must make judgments, estimates and assumptions related to the information that cannot be readily acquired from other sources based on historical experience and other relevant factors. The actual results may differ from those estimates.

In developing significant accounting estimates, the Group incorporates the potential effects of inflation and fluctuations in market interest rates into key assumptions, including estimates of cash flows, growth rates, discount rates, and profitability. Management will continue to review these estimates and underlying assumptions.

The accounting policies, estimates and basic assumptions adopted by the Group have been evaluated by the management of the Group and are free of significant accounting judgments, estimates and assumptions uncertainty.

VI. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 4,114	$ 3,225
Bank checks and demand deposits	1,543,643	2,272,909
Cash equivalents (investment with original maturity date of less than three months)
Bank time deposits	80,430	107,321
	$ 1,628,187	$ 2,383,455

The range of annual interest rates for demand and time deposits with banks as of the balance sheet date is as follows:

	December 31, 2025	December 31, 2024
Bank demand deposit	0.0003%~3.8%	0.001%~1.35%
Bank time deposits	1.29%~3.8%	0.78%~1.55%

VII. Financial instruments measured at fair value through profit or loss

	December 31, 2025	December 31, 2024
Financial assets - current
Mandatory measurement through profit or loss at fair value
Derivative instruments
– Call option embedded in convertible bonds	$ -	$ 90
Non-derivative financial assets
- Fund beneficiary certificate	438,632	17,891
– Gold passbook	191,170	-
TWSE (TPEx)-listed stocks	2,797	4,241
	$ 632,599	$ 22,222
Financial liabilities - non-current
Held for trading
Derivative instruments
– Put option embedded in convertible bonds	$ 6,630	$ 2,460

VIII. Financial assets at fair value through other comprehensive income

Debt instrument investments

	December 31, 2025
Non-current
Foreign bonds	$181,032

The Group invests in foreign bonds for medium- to long-term strategic purposes and expects to generate returns through long-term investment. Management of the Group believes that recognizing short-term fluctuations in the fair value of such investments in profit or loss would be inconsistent with the aforementioned long-term investment strategy; therefore, these investments are designated at fair value through other comprehensive income.

The Group purchased 30-year corporate bonds issued by the Public Investment Fund in March 2025 with a coupon rate of 5.375% and an effective interest rate of 5.939%, 30-year government bonds issued by Saudi Arabia in July 2025 with a coupon rate of 5.750% and an effective interest rate of 5.880%, 30-year corporate bonds issued by Saudi Arabian Oil Company in July 2025 with a coupon rate of 5.750% and an effective interest rate of 5.998%, 30-year corporate bonds issued by Aflac Incorporated in August 2025 with a coupon rate of 4.750% and an effective interest rate of 5.452%, 30-year corporate bonds issued by Apple Inc. in August 2025 with a coupon rate of 4.650% and an effective interest rate of 5.006%, and 30-year corporate bonds issued by 3M Company in November 2025 with a coupon rate of 5.700% and an effective interest rate of 4.471%.

The Group invests only in debt instruments with credit ratings of investment grade or above (inclusive) and that are assessed as having low credit risk in the impairment assessment. Credit rating information is provided by independent rating agencies. The Group continuously monitors external credit rating information to oversee changes in the credit risk of its debt instrument investments, and also reviews other information, such as bond yield curves and significant information about the issuers, to assess whether the credit risk of the debt instrument investments has increased significantly since initial recognition. As of December 31, 2025, the Group assessed that no expected credit losses were recognized on the aforementioned debt instruments.

IX. Financial assets measured at after-amortization cost

	December 31, 2025	December 31, 2024
Current
Domestic investment
Time deposits with original maturity date of more than 3 months	$ 314,720	$ 3,290

As of December 31, 2025 and 2024, the interest rates on time deposits with original maturities of more than three months were 1.65% and 4.3% per annum, respectively.

X. Notes receivable, accounts receivable and other receivables

	December 31, 2025	December 31, 2024
Note receivable
Measured at after-amortization cost
Total carrying amount	$ 675,901	$ 813,557
Less: Allowance for impairment loss	-	-
	$ 675,901	$ 813,557

Occurred due to business	$ 675,901	$ 813,557
Less: Allowance for impairment loss	-	-
	$ 675,901	$ 813,557
Accounts receivable
Measured at after-amortization cost
Total carrying amount	$ 2,283,849	$ 2,499,844
Less: Allowance for impairment loss	( 13,519 )	( 9,955 )
	$ 2,270,330	$ 2,489,889
Other receivables
Receivable for tariff subsidies	$ 192,921	$ -
Receivable from disposal of investments	9,588	-
Interest receivable	6,895	396
Tax refund receivable	6,514	766
Sample fee receivable	2,747	12,978
Freight allowances receivable	1,915	5,408
Compensation receivable	-	33,204
Others	4,602	5,040
	$ 225,182	$ 57,792

Notes and accounts receivable

The Group's average credit period for merchandise sales is 30 to 150 days, and no interest is accrued on accounts and notes receivable. To mitigate credit risk, the Group's management shall assign dedicated personnel to be responsible for the determination of credit limit, credit approval and other monitoring procedures in order to ensure that appropriate actions are taken to collect overdue notes and accounts receivable. In addition, the Group reviews the recoverable amounts of notes and accounts receivable on a case-by-case basis on the balance sheet date to ensure that appropriate impairment losses have been provided for non-recoverable notes and accounts receivable. Accordingly, the management of the Company believes that the Group's credit risk has been significantly reduced.

The Group recognized the allowance for losses of notes and accounts receivable based on lifetime expected credit loss. The lifetime expected credit losses are calculated based on the allowance matrix with reference to each customer's past default history, current financial position, and industrial economic situation, as well as the GDP forecast and industry outlook. The Group's historical credit loss experience shows that there is no significant difference in the loss patterns of different customer groups. Therefore, instead

of further differentiating the customer groups, the allowance matrix only sets the expected credit loss rate based on the number of days past due on notes and accounts receivable.

If there is evidence that a counterparty is facing serious financial difficulties and the Group cannot reasonably expect to recover the amount, the Group will directly write off the relevant notes and accounts receivables but will continue the collection. The recovered amount is recognized in profit or loss.

The allowance for loss of notes and accounts receivable measured by the Group based on the allowance matrix is as follows:

December 31, 2025

	Not Past Due	1 to 90 days past due	91 to 180 days past due	181 to 365 days past due	Over 365 days past due	Total
Expected credit loss rate	0.01%	5.18%	5.65%	7.21%	100.00%
Total carrying amount	$ 2,730,062	$ 183,164	$ 44,881	$ 541	$ 1,102	$ 2,959,750
Allowance for losses (expected credit losses)	( 360 )	( 9,483 )	( 2,535 )	( 39 )	( 1,102 )	( 13,519 )
Cost after amortization	$ 2,729,702	$ 173,681	$ 42,346	$ 502	$ -	$ 2,946,231

December 31, 2024

	Not Past Due	1 to 90 days past due	91 to 180 days past due	181 to 365 days past due	Over 365 days past due	Total
Expected credit loss rate	0.04%	7.83%	8.72%	-	100%
Total carrying amount	$ 3,217,391	$ 94,314	$ 321	$ -	$ 1,375	$ 3,313,401
Allowance for losses (expected credit losses)	( 1,171 )	( 7,381 )	( 28 )	-	( 1,375 )	( 9,955 )
Cost after amortization	$ 3,216,220	$ 86,933	$ 293	$ -	$ -	$ 3,303,446

The movements of allowance for losses of notes and accounts receivable is as follows:

	2025	2024
Opening balance	$ 9,955	$ 4,353
Add: Provision for impairment for the year	3,396	5,421
Foreign currency exchange difference	168	181
Closing balance	$ 13,519	$ 9,955

XI. Finance lease receivables

	December 31, 2025	December 31, 2024
Undiscounted lease payments
Year 1	$ 12,956	$ 20,050
Year 2	-	14,264
	12,956	34,314
Less: Unearned finance income	( 1,354 )	( 3,753 )

39 -

Less: Allowance for impairment loss	-	-
Lease payments receivable	11,602	30,561
Present value of unguaranteed residual value	-	-
Net investment in leases presented as finance lease receivables	$ 11,602	$ 30,561
Current	$ 11,602	$ 17,646
Non-current	-	12,915
	$ 11,602	$ 30,561

Regarding the finance lease agreements entered into by the Group, all leases are denominated in RMB and have a finance lease term of 13 to 14.5 years.

The interest rate implicit in the lease for the lease periods cannot be changed after determination, and the interest rates implicit in the lease were 6.55% to 7.05% per annum for December 31, 2025 and 2024.

In addition to the minimum lease payments, the finance lease agreement also contains contingent rental clauses which allow the Group to charge contingent rents if the lessee's energy prices increase by more than a specified percentage.

The Group measures the allowance for losses of finance lease receivables based on lifetime expected credit loss. Finance lease receivables are secured by equipment leased. As of the balance sheet date, there were no overdue finance lease receivables. Meanwhile, taking into account the past default history of the counterparty, the future development of the industry related to the lease target, and the value of the collateral, the Group considered that the above finance lease receivables are not impaired.

XII. Inventory

	December 31, 2025	December 31, 2024
Commodities	$ 4,505	$ 11,733
Finished goods	1,045,016	1,160,389
Work in process	127,286	165,742
Raw materials	538,222	557,694
	$ 1,715,029	$ 1,895,558

The nature of costs of sales is as follows:

	2025	2024
Cost of inventory sold	$ 7,561,782	$ 7,950,847
Loss (gain from price recovery) for market price decline and obsolete and slow-moving inventories	( 8,306 )	56,352

Loss on scrapped inventories
Unallocated manufacturing
expenses
7,377
15,360
81,377
17,408
$ 7,642,230
$ 8,039,967

The reversal of inventory net realizable value in 2025 was attributable to an increase in the selling prices of the inventories.

XIII. Subsidiary

Subsidiaries listed in the consolidated financial statements

Entities in the consolidated financial statements are as follows:

Investor	Investee	Main Business	% of Ownership		Explanation
			December 31, 2025	December 31, 2024
The Company	Laster International (Samoa) Co., Ltd. (Laster International)	Investment	100%	100%	—
The Company	Windlux International Co., Ltd. (Windlux)	Sales of LED chips	100%	100%	—
The Company	Happy Power Corp.	Investment	100%	100%	—
The Company	Laster Tech Automotive (America) Incorporated	Sales of LED automotive lighting-related products	100%	-	Note 2
The Company	LASTER TECH AUTOMOTIVE MEXICO INC, S.A. DE C.V.	Manufacturing, assembly and sales of LED automotive lighting-related products	100%	-	Note 3
Happy Power	SWEEO TECHNOLOGY CO., LTD	Sales of lighting products and lighting fixtures	100%	100%	Note 1
Laster International	Laster Overseas (Samoa) Co., Ltd. (Laster Overseas)	Investment	100%	100%	—
Laster International	Super Continental Ltd. (Super Continental)	Investment	100%	100%	—
Laster International	Laster Forever Co., Ltd. (Laster Forever)	Investment	100%	100%	—
Laster International	Excitement Holding Co., Ltd. (Excitement Holding)	Investment	100%	100%	—
Laster Overseas	LasterTech Electronics (Dongguan) Co., Ltd. (Laster Dongguan)	Sales of LED chips and manufacturing, assembly and sales of LED automotive lighting-related products	100%	100%	—
Super Continental	Li San (Shanghai) International Trade Ltd. (Li San Shanghai)	Sales of LED chips and components	100%	100%	—
Super Continental	Laster Tech Opto (Shenzhen) Co., Ltd. (Laster Shenzhen)	Sales of energy-saving lighting fixtures and accessories	100%	100%	—
Super Continental	Ang Ran Technology Co., Ltd. (Ang Ran)	Investment	100%	100%	—
Laster Forever	LasterTech Automotive (Shanghai) Co., Ltd. (Laster Shanghai)	Manufacturing, assembly and sales of LED automotive lighting-related products	100%	100%	—
Excitement Holding	Laster Tech (Thailand) Co., Ltd. (Laster Tech Thailand)	Sales of lighting products and lighting fixtures	100%	100%	—

Description:

Happy Power Corp. holds 100% of the shares of SWEEO TECHNOLOGY CO.,LTD. However, due to local restrictions, 51% of the shares are held in the name of Thai natural persons.
To meet market demand, the Company completed the registration and establishment of Laster Tech Automotive (America) Incorporated on January 2, 2025.
40 -

To meet market demand, the Company completed the registration and establishment of LASTER TECH AUTOMOTIVE MEXICO INC, S.A. DE C.V. on March 10, 2025.

XIV. Property, plant and equipment

Self-use	December 31, 2025				December 31, 2024
		$1,573,163				$1,593,474
	Land	Buildings	Equipment	Mold equipment	Lease improvements	Other equipment	Unfinished construction and equipment to be accepted	Total
Cost
Balance on January 1, 2025	$ 711,920	$ 234,812	$ 1,328,346	$ 244,186	$ 153,893	$ 137,833	$ 6,482	$ 2,817,472
Addition	-	4,112	134,808	18,898	962	21,773	10,453	191,066
Transferred from prepaid equipment	-	-	4,622	-	310	2,448	284	7,664
Disposal	-	-	(13,100)	(13,963)	(59,830)	(1,648)	-	(88,541)
Reclassification	-	-	6,485	12	-	12	(6,509)	-
Net exchange difference	-	1,191	8,561	1,148	(1,585)	1,343	164	10,822
Balance on December 31, 2025	$ 711,920	$ 240,115	$ 1,469,722	$ 250,281	$ 93,750	$ 161,761	$ 10,874	$ 2,938,423
Cumulative depreciation and impairment
Balance on January 1, 2025	$ -	$ 59,674	$ 727,951	$ 215,758	$ 117,080	$ 103,535	$ -	$ 1,223,998
Disposal	-	-	(7,208)	(6,590)	(59,830)	(1,528)	-	(75,156)
Depreciation expenses	-	20,523	154,002	12,121	4,702	18,683	-	210,031
Reclassification	-	-	-	-	-	-	-	-
Net exchange difference	-	213	5,949	1,001	(1,618)	842	-	6,387
Balance on December 31, 2025	$ -	$ 80,410	$ 880,694	$ 222,290	$ 60,334	$ 121,532	$ -	$ 1,365,260
Net as of December 31, 2025	$ 711,920	$ 159,705	$ 589,028	$ 27,991	$ 33,416	$ 40,229	$ 10,874	$ 1,573,163
Cost
Balance on January 1, 2024	$ 711,920	$ 231,813	$ 1,172,446	$ 232,702	$ 139,232	$ 120,205	$ 16,833	$ 2,625,151
Addition	-	491	72,812	7,429	12,371	9,292	3,867	106,262
Transferred from prepaid equipment	-	-	54,122	472	-	102	363	55,059
Disposal	-	-	(7,886)	(4,423)	(2,598)	(3,075)	-	(17,982)
Reclassification	-	-	6,886	-	-	7,920	(14,806)	-
Net exchange difference	-	2,508	29,966	8,006	4,888	3,389	225	48,982
Balance on December 31, 2024	$ 711,920	$ 234,812	$ 1,328,346	$ 244,186	$ 153,893	$ 137,833	$ 6,482	$ 2,817,472
Cumulative depreciation and impairment
Balance on January 1, 2024	$ -	$ 39,088	$ 559,485	$ 197,650	$ 105,060	$ 90,209	$ -	$ 991,492
Disposal	-	-	(5,743)	(3,047)	(2,474)	(2,864)	-	(14,128)
Depreciation expenses	-	20,306	156,812	14,276	10,784	13,399	-	215,577
Reclassification	-	-	-	-	-	-	-	-
Net exchange difference	-	280	17,397	6,879	3,710	2,791	-	31,057
Balance on December 31, 2024	$ -	$ 59,674	$ 727,951	$ 215,758	$ 117,080	$ 103,535	$ -	$ 1,223,998
Net mount on December 31, 2024	$ 711,920	$ 175,138	$ 600,395	$ 28,428	$ 36,813	$ 34,298	$ 6,482	$ 1,593,474

No impairment loss was recognized or reversed in 2025 and 2024.

Depreciation expense is provided on a straight-line basis over the following useful lives:

Buildings
Plant main building		11 years
Electromechanical	power
equipment		5 to 10 years
Engineering system		3 to 10 years
Equipment		2 to 10 years
Mold equipment		2 to 5 years

Lease improvements
Other equipment
10 years
2 to 15 years

For the amount of property, plant and equipment pledged for borrowings, please refer to Note 33.

XV. Lease agreement

(I) Right-of-use assets

	December 31, 2025	December 31, 2024
Carrying amount of right-of-use assets
Building	$ 267,058	$ 321,661
Transportation equipment	910	604
	$ 267,968	$ 322,265
	2025	2024
Increase in right-of-use assets	$ 17,514	$ 242,671
Depreciation expense on right-of-use assets
Building	$ 67,294	$ 60,060
Transportation equipment	626	624
	$ 67,920	$ 60,684

No impairment loss was recognized or reversed in 2025 and 2024.

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$ 49,910	$ 62,764
Non-current	$ 226,887	$ 269,234

The discount rate range for lease liabilities is as follows:

	December 31, 2025	December 31, 2024
Building	2.65%~8.14%	0.42%~4.65%
Transportation equipment	1.96%~2.61%	1.11%~2.22%

(III) Important lease activities and terms

The Group leases several buildings for the use as plants and offices for a period of 2 to 10 years. At the end of the lease period, the Company has no preferential right to purchase the leased buildings.

The Group leases several transportation equipment for the use by employees for operations for a period of 1 to 3 years. At the end of the lease period, the Company has no preferential right to purchase the leased transportation equipment.

(IV) Other information on lease

	2025	2024
Short-term lease expenses	$ 10,921	$ 9,799
Total cash (outflow) from leases	($ 85,716)	($ 75,681)

The Group has elected to apply the recognition exemptions to certain leases of buildings and office equipment that qualify as short-term leases and does not recognize the related right-of-use assets and lease liabilities for these leases.

XVI. Intangible assets

	Computer software
Cost
Balance on January 1, 2025	$ 54,197
Acquired separately	24,806
Transferred from prepaid equipment	10,116
Derecognition	( 6,830)
Net exchange difference	1,255
Balance on December 31, 2025	$ 83,544
Accumulated amortization
Balance on January 1, 2025	$ 27,970
Amortization expenses	9,789
Derecognition	( 6,830)
Net exchange difference	220
Balance on December 31, 2025	$ 31,149
Net as of December 31, 2025	$ 52,395
Cost
Balance on January 1, 2024	$ 44,869
Acquired separately	10,553
Transferred from prepaid equipment	227
Derecognition	( 2,892)
Net exchange difference	1,440
Balance on December 31, 2024	$ 54,197
Accumulated amortization
Balance on January 1, 2024	$ 21,657
Amortization expenses	8,519
Derecognition	( 2,892)
Net exchange difference	686

Balance on December 31, 2024
$ 27,970
Net as of December 31, 2024
$ 26,227

Amortization expense is recognized on a straight-line basis over the following useful lives:

Computer software
1 to 10 years

Amortization expense by function is summarized as follows:

	2025	2024
Operating costs	$ 2,462	$ 3,306
Selling and marketing expenses	127	1,889
General and administrative expenses	2,717	1,071
Research and development expenses	4,483	2,253
	$ 9,789	$ 8,519

XVII. Other assets

	December 31, 2025	December 31, 2024
Current
Prepayments
Prepayment of expenses	$ 133,676	$ 53,344
Input tax and tax overpaid	40,400	43,908
Prepaid lease payments	18,963	20,606
Prepayment of goods	10,278	6,981
	$ 203,317	$ 124,839
Other assets
Other financial assets (Note 33)	$ 61,158	$ 63,084
Temporary payment	40,709	165,980
Payment on behalf of others	3,877	11,747
	$ 105,744	$ 240,811
Non-current
Other assets
Prepayment of equipment	$ 70,748	$ 32,424
Refundable deposits	11,812	9,899
Other financial assets (Note 33)	204	202
	$ 82,764	$ 42,525

XVIII. Borrowings

(I) Short-term borrowings

	December 31, 2025	December 31, 2024
Guaranteed loans (Note 33)
Bank borrowings (1)	$ 524,023	$ 435,723
Unsecured loans
Credit limit borrowings (2)	1,242,949	1,550,872
	$ 1,766,972	$ 1,986,595

As of December 31, 2025 and 2024, the annual interest rates for the bank borrowings were $2.35\% - 2.99\%$ and $2.48\% - 3.45\%$ , respectively. Part of the borrowings were guaranteed by the Small and Medium Enterprise Credit Guarantee Fund of Taiwan, and the amounts as of December 31, 2025 and 2024 were NT$50,000 thousand and NT$66,846 thousand, respectively.
As of December 31, 2025 and 2024, the annual interest rates for the bank borrowings were $2.07\% - 2.86\%$ and $2.16\% - 6.92\%$ , respectively.

(II) Short-term notes payable

	December 31, 2024
Commercial paper payable	$ 360,000
Less: Discount on commercial paper payable	( 1,356 )
Short-term notes payable	$ 358,644

Commercial notes payable not yet due are as follows:

December 31, 2024

Guarantee / Acceptance Institution	Face value	Discount amount	Book value	Annual interest rate	Name of collateral	Book value of collaterals
Commercial paper payable
International Bills Finance Corporation	$ 80,000	($ 277)	$ 79,723	3.34%	—	$ -
China Bills Finance Corporation	80,000	( 204)	79,796	3.00%	—	-
Grand Bills Finance Corp.	50,000	( 268)	49,732	3.00%	—	-
Dah Chung Bills Finance Corp.	80,000	( 281)	79,719	3.30%	—	-
Taiwan Cooperative Bills Finance Corporation	50,000	( 240)	49,760	3.00%	—	-
Taiwan Finance Corporation	20,000	( 86)	19,914	3.24%	—	-
	$ 360,000	($ 1,356)	$ 358,644			$ -

(III) Long-term borrowings

	December 31, 2025	December 31, 2024
Guaranteed loans (Note 33)
Bank borrowings (1)	$ 1,626,978	$ 808,923
Unsecured loans
Credit limit borrowings (2)	150,000	95,490
	1,776,978	904,413
Less: Those due within one year	(158,693)	(141,979)
	$ 1,618,285	$ 762,434

From September 2021 to October 2028, these loans are repaid once a month until repaid in full in April 2026 to October 2030. As of December 31, 2025 and 2024, the annual interest rates were $1.48\% - 2.82\%$ and $1.48\% - 2.78\%$ , respectively. The Company provided land and buildings as collaterals for the loans stated above. The loans were guaranteed by the Small & Medium Enterprise Credit Guarantee Fund of Taiwan for NT$1,590,903 thousand, NT$111,708 thousand, respectively on December 31, 2025 and 2024.
From August 2025 to February 2026, these loans are repaid once a month until repaid in full in February 2027 to August 2027. As of December 31, 2025 and 2024, the annual interest rates were $2.36\% - 2.46\%$ and $1.43\% - 2.32\%$ , respectively.

XIX. Bonds payable

	December 31, 2025	December 31, 2024
The Company’s 4th domestic unsecured convertible bonds	$ -	$ 148,070
The Company’s 5th domestic unsecured convertible bonds	-	19,711
The Company’s 6th domestic unsecured convertible bonds	283,893	275,611
	283,893	443,392
Less: Those due within one year	-	(167,781)
	$ 283,893	$ 275,611

On February 17, 2022, the Company issued its 4th domestic unsecured convertible bonds for 2 thousand units with a total principal of NT$200,000 thousand at 100% of par value and a zero coupon rate for a term of 3 years. As of December 31, 2023, the creditors holding bonds with an aggregate par value of NT$54,600 thousand had exercised their conversion rights, while those holding bonds with an aggregate par value of NT$145,400 thousand had redeemed the bonds.

The Company's 4th domestic unsecured convertible bonds consist of liability and equity components. The equity component is expressed as capital surplus - stock options

under equity. The original effective interest rate recognized for the liability component was 1.70%.

Issue price (less transaction costs of NT$2,000 thousand)	$ 198,000
Equity component (less transaction costs of NT$84 thousand allocated to equity and added back NT$17 thousand of income tax effects)	( 8,353 )
Deferred tax assets	400
Components of liabilities on the issue date (less the transaction costs allocated to liabilities of NTD 1,916 thousand and the related income tax effect of NTD 383 thousand)	190,047
Interest calculated at an effective rate of 1.70%	8,436
Bonds payable converted to common shares and share conversion entitlement certificates	( 50,366 )
Deferred tax assets	( 47 )
Liability components on December 31, 2024	148,070
Interest calculated at an effective rate of 1.70%	328
Bonds payable converted to common shares and share conversion entitlement certificates	( 2,998 )
Redemption of corporate bonds	( 145,400 )
Liability components on December 31, 2025	$ -

On December 28, 2022, the Company issued its 5th domestic unsecured convertible bonds for 3 thousand units with a total principal of NT$300,000 thousand at 100% of par value and a zero coupon rate for a term of 3 years. As of December 31, 2025, the creditors holding bonds with an aggregate par value of NT$274,500 thousand had exercised their conversion rights, while those holding bonds with an aggregate par value of NT$25,500 thousand had applied for early redemption.

The Company's 5th domestic unsecured convertible bonds consist of liability and equity components. The equity component is expressed as capital surplus - stock options under equity. The original effective interest rate recognized for the liability component was 2.48%.

Issue price (less transaction costs of NT$5,000 thousand)	$ 295,000
Equity component (less transaction costs of NT$296 thousand allocated to equity and added back NT$59 thousand of income tax effects)	( 17,494 )
Deferred tax assets	1,000
Liability component at the issue date (less transaction costs of NT$4,705 thousand allocated to liability and added back NT$941 thousand of income tax effects)	278,506
Interest calculated at an effective rate of 2.48%	5,172
Bonds payable converted to common shares and share conversion entitlement certificates	( 258,070 )
Redemption of corporate bonds	( 5,166 )

Deferred tax assets
( 731 )
Liability components on December 31, 2024
19,711
Interest calculated at an effective rate of 2.48%
489
Redemption of corporate bonds
( 20,200 )
Liability components on December 31, 2025
$ -

The Company issued its 6th domestic unsecured convertible bonds on November 27, 2024, in the amount of 3,000 units. The convertible bonds were publicly underwritten through a competitive auction. The total principal amount was NT$300,000 thousand, issued at 100% of par value, with actual total proceeds of NT$301,280 thousand. The bonds carry a zero coupon rate and have a term of three years. On the next day after 3 months following the issuance date of the bonds, the bondholders may request for the corporate bonds to be exchanged for the Company's common stock. The original conversion price was NT$38.80 per share, and the conversion price was NT$36.50 on December 31, 2025. From 3 months to 40 days before the expiration of the issuance term, if the closing price of the Company's common stock exceeds 30% of the prevailing conversion price for 30 consecutive business day or if the outstanding balance of the bonds is less than 10% of the original amount issued, the Company may redeem the outstanding bonds in cash at their face value. The date on which the bonds are issued for two years is the base date for early sale of the bonds. With 30 days of the base date for early sale of the bonds, the bondholders may request the Company to redeem the bonds held by them in cash at their face value. Except for the conversion into the Company's common stock or early recovery of bonds as stated above, the Company repays the principal in cash at maturity in accordance with the face value of the bonds.

The Company's 6th domestic unsecured convertible bonds consist of liability and equity components. The equity component is expressed as capital surplus - stock options under equity. The original effective interest rate recognized for the liability component was 2.96%.

Issue price (less transaction costs of NT$2,000 thousand)	$ 299,280
Equity component (less transaction costs allocated to equity of NT$22,835 thousand)	( 22,835 )
Liability component at the issue date (less transaction costs allocated to the liability of NT$1,615 thousand)	( 1,615 )
Liability component at the issue date (less total transaction costs allocated to both equity and liability of NT$24,450 thousand)	274,830
Interest calculated at an effective rate of 2.96%	781
Liability components on December 31, 2024	275,611
Interest calculated at an effective rate of 2.96%	8,282

48 -

Liability components on December 31, 2025

\$ 283,893

XX. Accounts payable

	December 31, 2025	December 31, 2024
Accounts payable	$ 2,311,116	$ 2,615,946
Accounts payable - related parties (Note 32)	451	189
	$ 2,311,567	$ 2,616,135

The average credit period for the Group's inventory purchased is 30 to 90 days. The Group ensures that all accounts payable are repaid within the prearranged credit period according to the financial risk management policy.

XXI. Other liabilities

	December 31, 2025	December 31, 2024
Current
Other payables
Salary and bonus payable	$ 133,868	$ 137,719
Labor costs payable	46,078	52,603
Leave payables	24,658	19,471
Value-added tax payable	13,770	2,742
Freight payable	4,725	22,793
Equipment payment payable	1,620	4,229
Employee remuneration payable	776	15,869
Director remuneration payable	466	3,174
Other payables - related parties (Note 32)	303	302
Others	51,402	74,291
	$ 277,666	$ 333,193
Other liabilities
Collection on behalf of others	$ 9,199	$ 9,941
Temporary collection	247	26,855
	$ 9,446	$ 36,796

XXII. Post-employment benefits

(I) Defined allocation plan

The pension system under the "Labor Pension Act" adopted by the Group and Windlux of the Group is a defined contribution retirement plan administered by the government that $6\%$ of the monthly salary of employees is deposited to the special personal accounts of employees in the Bureau of Labor Insurance.

The employees of the Group's subsidiaries in the U.S., Mexico, Thailand and Mainland China are members of the retirement benefit plan managed by the American,

Mexican, Thai and Chinese governments. The subsidiary is required to contribute a specific percentage of the salary cost to the retirement benefit plan to provide funds for the plan. The obligation of the Group for this government-operated retirement benefit plan is only to contribute a specific amount.

(II) Defined benefit plan

The pension plan adopted by the Group under the “Labor Standards Act” is a defined contribution plan administered by the government. The years of service rendered and the average salary of 6 months prior to the approved retirement date shall be the reference for calculation of the pension to be paid to the employee. The Company contributes 4% of the total salary of an employee as the labor pension fund each month and deposit the amount to the special account at the Bank of Taiwan in the name of the Labor Pension Fund Supervisory Committee. Before the end of each year, if the estimated balance in the account is inadequate to make a payment of pensions to the employees who meet the retirement conditions in the next year, the difference will be made up in one appropriation before the end of March the following year. The special account is managed by the Bureau of Labor Funds, Ministry of Labor and the Group does not have the right to influence the investment management strategies.

The amounts of the defined benefit plan included in the consolidated balance sheet are listed as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 9,143	$ 8,826
Fair value of plan assets	(14,882)	(13,712)
Net defined benefit (assets)	($ 5,739)	($ 4,886)

Changes in net defined benefit (assets) are as follows:

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit (assets)
Balance on January 1, 2024	$ 9,001	($ 12,466)	($ 3,465)
Interest expense (income)	113	( 156)	( 43)
Recognized as income	113	( 156)	( 43)
Remeasurement
Return on plan assets (except for any amount included in net interest)	-	( 1,090)	( 1,090)
Actuarial gains
—Changes in financial assumptions	( 227)	-	( 227)

51 -

| —Experience
adjustments | ( 61 ) | — | ( 61 ) |
| --- | --- | --- | --- |
| Recognized in other
comprehensive income | ( 288 ) | ( 1,090 ) | ( 1,378 ) |
| Contribution by employer | — | — | — |
| Balance on December 31, 2024 | 8,826 | ( 13,712 ) | ( 4,886 ) |
| Interest expense (income) | 132 | ( 205 ) | ( 73 ) |
| Recognized as income | 132 | ( 205 ) | ( 73 ) |
| Remeasurement | | | |
| Return on plan assets
(except for any amount
included in net interest) | — | ( 965 ) | ( 965 ) |
| Actuarial gains | | | |
| —Changes in
financial assumptions | 88 | — | 88 |
| —Experience
adjustments | 97 | — | 97 |
| Recognized in other
comprehensive income | 185 | ( 965 ) | ( 780 ) |
| Contribution by employer | — | — | — |
| Balance on December 31, 2025 | $ 9,143 | ($ 14,882) | ($ 5,739) |

The amounts of the defined benefit plan recognized in profit or loss are summarized by function as follows:

	2025	2024
General and administrative expenses	($ 73)	($ 43)

The Company of the Group is exposed to the following risks due to the pension system under the "Labor Standards Act":

Investment risk: The Bureau of Labor Funds, Ministry of Labor separately has invested the labor pension fund in domestic (foreign) equity and debt securities, and bank deposits. The investment is conducted at the discretion of the Bureau or under the mandated management. However, the profit generated from the Group’s plan assets shall be calculated with an interest rate not below the interest rate for a 2-year time deposit with local banks.
Interest rate risk: A decrease in the interest rates of government bonds and corporate bonds leads to increase the present value of the defined benefit obligation, and the return on debt investment of the plan assets will be increased accordingly. The net defined benefit liabilities may be partially offset by both increases.

Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salary of the plan participants. Therefore, the present value of the defined benefit obligation will be increased due to an increase in the plan participants' salary.

The present value of the defined benefit obligation of the Company of the Group was calculated actuarially by a qualified actuary. The major assumptions on the date of measurement are as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.40%	1.50%
Anticipated salary increase rate	2.00%	2.00%

If there were any reasonably possible changes to the major actuarial assumptions separately, the resulting increase (decrease) in the present value of the defined benefit obligation in the situation where all the other assumptions remained the same is as follows:

	December 31, 2025	December 31, 2024
Discount rate
Increase by 0.25%	($ 219)	($ 219)
Decrease by 0.25%	$ 226	$ 227
Anticipated salary increase rate
Increase by 1%	$ 933	$ 941
Decrease by 1%	($ 837)	($ 847)

Since the actuarial assumptions might be correlated to each other, and it was unlikely that the changes were only in a single assumption, the aforesaid sensitivity analysis might not reflect the actual changes in the present value of the defined benefit obligation.

	December 31, 2025	December 31, 2024
Expected contribution within 1 year	$ -	$ -
Average maturity of defined benefit obligations	10.3 years	10.6 years

XXIII. Equity

(I) Share capital

Common shares

	December 31, 2025	December 31, 2024
Authorized shares (in thousand shares)	150,000	150,000
Authorized capital	$1,500,000	$1,500,000

Issued and fully-paid shares (in thousand shares)
Issued share capital
121,228
$ 1,212,283
115,159
$ 1,151,590

The change in the Company's share capital was mainly due to the capital increase in cash and conversion of corporate bonds into common shares.

On August 9, 2024, the Board of Directors adopted the resolution of cash capital increase by issuing 6,000 thousand new shares at a par value of NT$10 and premium of NT$32 per share. The paid-in capital after capital increase was NT$1,211,590 thousand. The above capital increase by cash was approved and by the Securities and Futures Bureau, Financial Supervisory Commission on January 22, 2025. The Board of Directors resolved January 16, 2025 as the capital increase base date, and the registration of the change was completed on April 9, 2025.

(II) Stock dividends from

	December 31, 2025	December 31, 2024
Available for covering loss, distribution of cash dividends or transfer into capital (Note)
Stock issuance in excess of par value	$ 997,805	$ 868,805
Corporate bond conversion premium	645,924	643,494
Treasury share transaction	660	660
Only available to cover losses
Dividends unclaimed by shareholders	99	99
Others	53,840	47,768
Not to be used for any purpose
Stock options	26,726	32,924
	$ 1,725,054	$ 1,593,750

Note: These capital reserves may be used to cover losses or to distribute cash dividends or be transferred into the capital if the Company does not incur a loss. However, the amount of the transfer into the capital shall be limited to a certain percentage of the paid-in capital in every year.

(III) Retained earnings and dividend policy

The Company's shareholders' meeting held on May 28, 2025 resolved to approve amendments to the Articles of Incorporation, revising the policies for the distribution of employees' and directors' remuneration. In accordance with the Articles of Incorporation, the Company shall appropriate employees' remuneration at a rate of not

less than 5% to 15% and directors’ and supervisors’ remuneration at a rate of not more than 3%, based on the profit before tax for the year prior to the distribution of such remuneration. An amount no less than 30% of the remuneration of employees described in preceding paragraph shall be appropriated as the remuneration of entry-level employees.

According to the earnings distribution policy stipulated in the Company’s Articles of Incorporation prior to amendment, net profit after tax of the Company after final accounts, if any, shall first cover the accumulated losses (including the adjustment of the amount of undistributed earnings). Pursuant to law, 10% of the net profit after tax shall be set aside as legal reserve, except for when the accumulated legal reserve has reached the Company’s total paid-in capital; followed by the allocation or reservation of special reserve pursuant to the law or regulations. The Board of Directors shall prepare a motion for earnings distribution for the remaining earnings coupled with the opening undistributed earnings (including the adjustment of the amount of undistributed earnings) to be submitted to the shareholders’ meeting for resolution on the distribution of dividends to shareholders. For the remuneration policy of employees and directors stipulated in the Company’s Articles of Incorporation, please refer to Note 25(8) Remuneration to employees and directors.

In addition, according to the Company’s Articles of Incorporation, the dividend policy is correspondent to the Company profitability, capital structure and future operational needs. Not less than 12% of distributable earnings will be paid to shareholders each year; however, earnings will not be distributed if the accumulated distributable earnings are lower than 20% of the Company’s paid-in capital. The payment principle of dividends to shareholders is subject to a balanced dividend policy of stock dividends and cash dividends, with the distribution ratio of cash dividends not less than 10% of the total dividends to be distributed to shareholders.

The legal reserve shall be appropriated until the balance reaches the Company’s total paid-in capital. The legal reserve may be used to cover losses. If the Company does not incur a loss, the part of the legal reserves that exceeds the total paid-in capital by 25% may be appropriated as capital or distributed by cash.

When appropriating special reserve for the net deduction of other equity accumulated in the previous period, the provision is only made for the undistributed earnings of the previous period.

54 -

An annual general meeting was held on May 28, 2025 and May 21, 2024. Earnings distribution motion for 2024 and 2023 passed by resolution is as follows:

	2024	2023
Legal reserve	$ 27,246	$ 31,094
Special reserve	($ 95,378)	$ 48,941
Cash dividends	$ 145,391	$ 172,479
Cash dividends per share (NT$)	$ 1.20	$ 1.50

The 2025 earnings distribution proposed by the Board of Directors on March 13, 2026 is as follows:

	2025
Legal reserve	$ 1,380
Special reserve	($ 20,111)
Cash dividends	$ 13,253
Cash dividends per share (NT$)	$ 0.11 (Note)

Note: If subsequently the number of the outstanding shares is affected by factors such as any change in the share capital increase in cash, repurchase of the Company's shares, and conversion of bond holders to undergo share conversion, etc., the shareholders' dividend ratio will change which results in a change in the shareholder dividend payout ratio, it is proposed that the Chairman be authorized by the annual general meeting to handle the related matters.

Earnings distribution for 2025 is pending resolution by the shareholders' meeting on June 22, 2026.

(IV) Treasury stocks

Reason of reacquisition	Transfer to employees (thousand shares)
Number of shares as of January 1, 2025	-
Increase during the period	750
Number of shares as of December 31, 2025	750

Treasury shares held shall not be pledged and are not entitled to dividend distributions or voting rights in accordance with the Securities and Exchange Act.

XXIV. Revenue

	2025	2024
Revenue from customer contracts
Revenue from merchandise sales	$ 8,542,795	$ 9,336,454
Service revenue	-	1,943
	$ 8,542,795	$ 9,338,397

(I) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable (Note 10)	$ 675,901	$ 813,557	$ 504,006
Notes receivable - related parties (Note 32)	$ 121,902	$ 163,527	$ 90,815
Accounts receivable (Note 10)	$ 2,270,330	$ 2,499,844	$ 2,384,007
Accounts receivable - related parties (Note 32)	$ 84,621	$ 169,943	$ 214,101
Contract assets - current Merchandise sales	$ 29,637	$ 43,545	$ 55,091
Contractual liabilities - Current Merchandise sales	$ 7,208	$ 2,173	$ 5,627

Allowances for losses on contract assets on the basis of expected credit losses over the life of the receivables. The contract assets are reclassified as accounts receivable when the bill is issued, and the credit risk characteristics are equivalent to the accounts receivable generated from similar contracts. Therefore, the Group considers that the expected credit loss rate of accounts receivable can also be applied to contract assets.

	2025	2024
Expected credit loss rate	-	-
Total carrying amount	$ 29,637	$ 43,545
Allowance for losses (expected credit losses)	-	-
	$ 29,637	$ 43,545

The amount of contract liabilities at the beginning of the year recognized as income during the year is as follows:

	2025	2024
Contract liabilities at the beginning of the year
Merchandise sales	$ 2,173	$ 5,627

(II) Details of revenue from customer contracts 2025

57 -

	LED automotive lighting	Vehicle lamp controller	Components	LED chips	LED lighting fixtures	LED components	Total
Type of merchandise Revenue from merchandise sales	$ 5,504,581	$ 2,931,387	$ 68,500	$ 18,818	$ 11,065	$ 8,444	$ 8,542,795
2024
	LED automotive lighting	Vehicle lamp controller	Components	LED chips	LED lighting fixtures	LED components	Total
Type of merchandise Revenue from merchandise sales	$ 5,806,453	$ 3,455,927	$ 16,890	$ 33,831	$ 12,686	$ 10,667	$ 9,336,454

XXV. Net profit

(I) Other income and expenses, net

	2025	2024
Profit from lease modification	$ 2,231	$ 525

(II) Interest income

	2025	2024
Bank deposits	$ 23,208	$ 13,197
Interest income on bonds	4,145	1,002
Finance lease receivables	2,327	3,703
Interest income from repurchase agreements	487	111
	$ 30,167	$ 18,013

(III) Other income

	2025	2024
Dividend income	$ 7,020	$ 847
Government subsidy revenue	5,270	5,301
Others	9,233	11,059
	$ 21,523	$ 17,207

(IV) Other gains and losses

	2025	2024
Gains (losses) from financial assets and liabilities
Mandatory financial assets measured at fair value through income	$ 58,633	$ 7,830
Financial liabilities held for trading	( 4,170)	( 694)
Gains (losses) from disposal of financial assets

58 -

Financial assets at FVTPL	10,652	-
Investments in debt instruments at fair value through other comprehensive income	( 384)	-
Net foreign exchange (losses) gains	( 4,431)	39,561
Gains (losses) from the disposal of property, plant and equipment	( 395)	2,911
Others	( 5,396)	( 1,017)
	$ 54,509	$ 48,591

(V) Financial costs

	2025	2024
Interest on bank loans	$ 76,649	$ 75,832
Interest on convertible corporate bonds	9,099	3,936
Interest on short-term notes payable	8,402	6,274
Interest on lease liabilities	8,217	5,830
Interest on notes receivable financing	862	1,194
	$ 103,229	$ 93,066

(VI) Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 210,031	$ 215,577
Right-of-use assets	67,920	60,684
Intangible assets	9,789	8,519
	$ 287,740	$ 284,780
Summary of depreciation expenses by function
Operating costs	$ 208,270	$ 223,528
Operating expenses	69,681	52,733
	$ 277,951	$ 276,261
Summary of amortization expenses by function
Operating costs	$ 2,462	$ 3,306
Operating expenses	7,327	5,213
	$ 9,789	$ 8,519

For information on the allocation of amortization expense of intangible assets to each line item, please refer to Note 16.

(VII) Employee benefits expense

59 -

	2025	2024
Post-employment benefits
Defined allocation plan	$ 31,417	$ 30,241
Defined benefit plan (Note 22)	(73)	(43)
	31,344	30,198
Share-based payment
Settlement of interests	-	2,811
Other employee benefit	706,969	759,507
Total employee benefit expenses	$ 738,313	$ 792,516
Summarized by function
Operating costs	$ 269,732	$ 328,481
Operating expenses	468,581	464,035
	$ 738,313	$ 792,516

(VIII) Employee remuneration and director’s remuneration

According to the Company’s Articles of Incorporation, the Company contributes 5% to 15% and no more than 3% of the profit before tax to employees and directors, respectively. In accordance with the amendments to the Securities and Exchange Act in August 2024, the Company approved amendment to its Articles of Incorporation at the 2025 shareholders’ meeting, stipulating that no less than 30% of the employees’ remuneration appropriated for the year shall be allocated to entry-level employees. The Company's estimated remuneration to employees and directors for 2025 and 2024 was resolved by the Board of Directors on March 13, 2026 and March 12, 2025, respectively, as follows:

Estimated ratio

	2025	2024
Remuneration to employees	5%	5%
Remuneration to directors	3%	1%

Amount

	2025	2024
	Cash	Cash
Remuneration to employees	$ 776	$ 15,869
Remuneration to directors	466	3,174

Where there is still a change in the amount after the publication date of the consolidated financial statements, the change is treated as a change in accounting estimate and recorded in the following year.

There was no difference between the actual amounts of remuneration distributed to the employees and directors in 2024 and 2023 and the amounts recognized in the consolidated financial statements in 2024 and 2023.

For information regarding the Company's remuneration to employees and directors resolved by the Board of Directors, please refer to the "Market Observation Post System" of the Taiwan Stock Exchange".

(IX) Foreign currency exchange gains and (losses)

	2025	2024
Total foreign currency exchange gain	$ 244,177	$ 177,104
Total foreign currency exchange loss	( 248,608 )	( 137,543 )
Net profit (loss)	($ 4,431)	$ 39,561

XXVI. Income tax

(I) Income tax recognized in profit or loss

Major components of income tax expenses are as follows:

	2025	2024
Income Tax of the current period
Generated this year	($ 3,496)	($ 46,417)
Additional tax on undistributed earnings	( 9,260)	-
Adjustments of previous years	1,129	( 38)
	( 11,627)	( 46,455)
Deferred tax
Generated this year	( 1,935)	( 10,595)
Changes in tax rates	880	25,940
	( 1,055)	15,345
Income tax expense recognized in profit or loss	($ 12,682)	($ 31,110)

Reconciliation of accounting income to income tax expense is as follows:

	2025	2024
Net Income before tax	$ 25,856	$ 302,467
Calculation of income tax expense on net income before tax at statutory tax rate	($ 28,557)	($ 60,910)
Expense and loss not deductible from tax	( 18,595)	( 20,815)
Non-taxable income	5,675	66

61 -

Additional tax on undistributed earnings ( 9,260) -
Unrecognized deductible temporary differences ( 26,462) -
Unrecognized loss carryforwards ( 15,065) ( 20,623)
Investment tax credit used during the period 57,464 45,249
Loss carryforwards used during the period 26 -
Effect of deferred tax on subsidiary earnings 19,909 -
Changes in tax rates 880 25,940
Adjustment of income tax expenses from the previous year during the year 1,129 ( 38)
Others 174 21
Income tax expense recognized in profit or loss ($ 12,682) ($ 31,110)

(II) Income tax directly recognized in equity

Deferred tax
Equity components of convertible bonds $ 21
Income tax directly recognized in equity $ 21

(III) Income tax recognized in other comprehensive income

Deferred tax
Generated this year
- Difference in exchange from the conversion of financial statements of overseas operating entities ($ 4,986) ($ 23,844)
- Remeasured value of defined benefit plan ( 156) ( 276)
- Unrealized gains or losses on financial assets measured at fair value through other comprehensive income ( 43) ( 24,120)
Income tax expenses recognized in other comprehensive income ($ 5,185) ($ 24,120)

(IV) Current income tax assets and liabilities

	December 31, 2025	December 31, 2024
Income tax assets for the period Tax refund receivable	$ 16,541	$ 15,352
Current tax liabilities Income tax payable	$ 9,386	$ 22,719

(V) Deferred tax assets and liabilities

Changes in deferred tax assets and liabilities are as follows:

2025

Deferred tax assets	Opening balance	Recognized as income	Changes in tax rates	Recognized in other comprehensive income	Exchange difference	Closing balance
Temporary differences
Provision for loss on value decline of inventory	$ 85,467	($ 24,631)	$ 2,106	$ -	($ 552)	$ 62,390
Currency translation difference	18,771	-	-	( 4,986)	-	13,785
Leave payables	5,991	( 1,465)	78	-	( 21)	4,583
Others	18,328	( 11,642)	247	-	( 433)	6,500
	128,557	( 37,738)	2,431	( 4,986)	( 1,006)	87,258
Loss carryforwards	7,634	31,770	-	-	878	40,282
	$ 136,191	($ 5,968)	$ 2,431	($ 4,986)	($ 128)	$ 127,540
Deferred tax liabilities
Temporary differences
Investment by equity method	$ 6,707	$ -	$ -	$ -	$ -	$ 6,707
Unrealized gains on valuation of foreign currency-denominated assets and liabilities	4,336	2,257	-	-	-	6,593
Unrealized gains recognized through profit or loss	-	3,874	832	-	177	4,883
Defined benefit retirement plan	977	14	-	156	-	1,147
Unrealized gains recognized through other comprehensive income	-	-	-	43	-	43
Others	11,634	( 10,178)	719	-	( 309)	1,866
	$ 23,654	($ 4,033)	$ 1,551	$ 199	($ 132)	$ 21,239

2024

Deferred tax assets	Opening balance	Recognized as income	Changes in tax rates	Recognized in other comprehensive income	Recognized directly in equity	Exchange difference	Closing balance
Temporary differences
Provision for loss on value decline of inventory	$ 50,309	$ 11,512	$ 22,203	$ -	$ -	$ 1,443	$ 85,467
Exchange differences of foreign operations	42,615	-	-	( 23,844 )	-	-	18,771
Leave payables	3,470	1,188	1,252	-	-	81	5,991
Others	14,879	( 2,845 )	5,915	-	( 21 )	400	18,328
	111,273	9,855	29,370	( 23,844 )	( 21 )	1,924	128,557
Loss carryforwards	23,660	( 16,026 )	-	-	-	-	7,634
	$ 134,933	($ 6,171 )	$ 29,370	($ 23,844 )	($ 21 )	$ 1,924	$ 136,191

Deferred tax liabilities
Temporary differences Investment by equity method
	$ 6,707	$ -	$ -	$ -	$ -	$ -	$ 6,707
Others	8,524	4,424	3,430	276	-	293	16,947
	$ 15,231	$ 4,424	$ 3,430	$ 276	$ -	$ 293	$ 23,654

(VI) Unused loss carryforwards for deferred tax assets not recognized in the consolidated balance sheet

	December 31, 2025	December 31, 2024
Loss carryforwards
Expired in 2028	$ 14,932	$ 21,362
Expired in 2029	74,477	82,384
Expired in 2030	177,727	127,729
Expired in 2031	97,772	97,537
Expired in 2032	102,161	102,880
Expired in 2034	11,414	22,984
Expired in 2035	40,502	-
	$ 518,985	$ 454,876

(VII) Information on unused loss carryforwards

As of December 31, 2025, information on unused loss carryforwards is as follows:

Balance not yet deducted	Final credit year
$ 21,362	2028
86,908	2029
284,925	2030
108,395	2031
113,956	2032
25,449	2034
55,182	2035
$ 696,177

(VIII) Total amount of temporary differences related to investments and deferred tax liabilities not recognized

As of December 31, 2025 and 2024, taxable temporary differences related to investments in subsidiaries not recognized as deferred tax liabilities were NT$2,686,732 thousand and NT$2,587,189 thousand.

(IX) Authorized income tax

The profit-seeking enterprise income taxes of the Company up to 2023 were reported and approved by the tax authorities.

The profit-seeking enterprise income taxes of the subsidiary Windlux up to 2023 were reported and approved by the tax authorities.

Subsidiaries Laster Shanghai, Laster Dongguan, Li San Shanghai and Laster Shenzhen are established in Mainland China, and their corporate income tax as of 2024 has been settled with the local tax agency.

The subsidiaries SWEEO TECHNOLOGY CO., LTD. and Laster Tech Thailand are established in Thailand, and their corporate income tax filings for all periods up to 2024 have been completed with the local tax agency.

The subsidiary Laster Tech Automotive (America) Incorporated was established in the United States on January 2, 2025, and as of March 13, 2026, has not yet completed filing with the local tax agency.

The subsidiary LASTER TECH AUTOMOTIVE MEXICO INC., S.A. DE C.V. was established in Mexico on March 10, 2025, and as of March 13, 2026, has not yet completed filing with the local tax agency.

XXVII. Earnings per share

Weighted-average number of common shares and earnings per share used for calculating earnings per share are as follows:

Net profit for the year

	2025	2024
Earnings used for calculating basic earnings per share	$ 13,174	$ 271,357
Effect of potentially dilutive common shares
Interest on convertible corporate bonds after tax	-	3,934
Earnings used for calculating diluted earnings per share	$ 13,174	$ 275,291

Number of shares Unit: thousand shares

	2025	2024
Weighted-average number of common shares and basic earnings per share used for calculating earnings per share	120,513	115,103
Effect of potentially dilutive common shares
Convertible bonds	-	11,747
Remuneration to employees	136	537
Weighted-average number of common shares and diluted	120,649	127,387

earnings per share used for calculating earnings per share

When the Company selects to distribute remuneration to employees in stocks or cash, it is assumed that the employee’s remuneration is paid with stocks when the diluted EPS is calculated. The weighted average outstanding common stocks are added when the potential common shares have diluting capability to calculate the diluted EPS. The diluting capability of the potential common shares is referenced in the next year when the Board of Directors resolved to calculate the diluted EPS prior to payment of the employee’s remuneration with stocks.

In 2025, due to the anti-dilutive effect of the Company’s 6th outstanding domestic unsecured convertible bonds after conversion, they were not included in the calculation of diluted earnings per share.

XXVIII. Share-based payment agreement

On August 9, 2024, the Board of Directors resolved to issue new shares for capital increase in cash, and in accordance with the Company Act, 600,000 shares were reserved for subscription by employees, and the number and price of the shares to be subscribed by employees was confirmed in November 2024. If the employees under-subscribe or waive the subscription, the Chairman shall negotiate with specific persons to subscribe for the shares at the issuing price.

The Company granted 600 thousand shares of employee stock options in cash above. The Black-Scholes valuation model was used and inputs used in the valuation model are as follows:

	November 2024
Stock price on grant date (NT$)	NTD 37.70
Exercise price (NT$)	NTD 32
Anticipated volatility	31.04%
Duration	0.15 years
Expected dividend rate	0%
Risk-free interest rate	1.37%

The expected volatility rate is the expected fluctuation in the value of a stock in certain period in the future, taking into account the effect of dividend distribution on stock price changes in prior years.

The remuneration cost recognized in 2024 was NT$2,811 thousand.

XXIX. Cash flow information

(I) Non-cash transactions

In addition to those disclosed in other notes, the Group entered into the following non-cash financing activities in 2025 and 2024:

Non-cash transactions of fund raising activities the Company conducted in 2025 and 2024 are as follows:
In 2025, the Company has converted the convertible corporate bonds with a total face value of NT$3,000 thousand into share capital of NT$694 thousand at the request of the holders.
In 2024, the Company has converted the convertible corporate bonds with a total face value of NT$13,100 thousand into share capital of NT$3,093 thousand at the request of the holders.

(II) Changes in liabilities from financing activities

2025

	January 1, 2025	Cash flow	Non-cash changes							Cash flows from operating activities
			Interest expenses	Spits off equity components of convertible bonds	New lease	Lease modification	Foreign currency valuation loss	Net exchange difference
Short-term borrowings	$ 1,986,595	( $ 213,089 )	$ -	$ -	$ -	$ -	$ 11	( $ 6,345 )	$ -	$ 1,766,972
Long-term borrowings (including those due within one year)	904,413	872,565	-	-	-	-	-	-	-	1,776,978
Corporate bonds payable (including those due within one year)	443,392	( 145,400 )	9,099	( 2,998 )	-	-	-	-	( 20,200 )	283,893
Short-term notes payable	358,644	( 360,000 )	8,402	-	-	-	-	-	( 7,046 )	-
Lease liabilities	331,990	( 66,578 )	8,217	-	17,514	( 5,736 )	-	( 401 )	( 8,217 )	276,797
Guarantee deposits received	850	-	-	-	-	-	-	-	-	850
	$ 4,025,892	$ 87,498	$ 25,714	( $ 2,998 )	$ 17,514	( $ 5,736 )	$ 11	( $ 6,946 )	( $ 35,463 )	$ 4,105,490

2024

	January 1, 2024	Cash flow	Non-cash changes									Cash flows from operating activities
			Interest expenses	Loss on redemption of corporate bonds	Spits off equity components of convertible bonds	Fair value adjustments	New lease	Lease modification	Foreign currency valuation loss	Net exchange difference
Short-term borrowings	$ 1,732,805	$ 240,558	$ -	$ -	$ -	$ -	$ -	$ -	$ 1,664	$ 11,568	$ -	$ 1,986,595
Long-term borrowings (including those due within one year)	891,905	12,588	-	-	-	-	-	-	-	-	-	904,413
Corporate bonds payable (including those due within one year)	184,052	292,453	3,936	161	( 35,595 )	( 1,615 )	-	-	-	-	-	443,392
Short-term notes payable	259,388	99,256	6,274	-	-	-	-	-	-	-	( 6,274 )	358,644
Lease liabilities	144,393	( 60,052 )	5,830	-	-	-	242,671	( 395 )	-	5,381	( 5,830 )	331,998
Guarantee deposits received	850	-	-	-	-	-	-	-	-	-	-	850
	$ 3,213,393	$ 584,723	$ 16,040	$ 161	( $ 35,595 )	( $ 1,615 )	$ 242,671	( $ 395 )	$ 1,664	$ 16,949	( $ 12,164 )	$ 4,025,892

XXX. Capital risk management

The Group's capital management objectives are to ensure the Group's sustained operation, maintain the optimal capital structure, reduce the cost of capital, and provide returns to shareholders. In order to maintain or adjust the capital structure, the Group may

adjust the number of dividends paid to shareholders and issue new shares to reduce liabilities.

The Group’s capital structure consists of its net debt (i.e., borrowings and corporate bonds less cash and cash equivalents) and equity (i.e., share capital, capital surplus, retained earnings, and other equity).

The Group is not subject to other external capital requirements.

XXXI. Financial instrument

(I) Fair value information - financial instruments not measured at fair value

In addition to the following, the management of the Group considers that the carrying amount of financial assets and financial liabilities not measured at fair value approximates their fair value.

December 31, 2025

	Fair value
	Book value	Level 1	Level 2	Level 3	Total
Financial liabilities
Financial liabilities measured at amortized cost
- Convertible bonds	$ 283,893	$ -	$ 289,950	$ -	$ 289,950

December 31, 2024

	Fair value
	Book value	Level 1	Level 2	Level 3	Total
Financial liabilities
Financial liabilities measured at amortized cost
- Convertible bonds	$ 443,392	$ -	$ 443,821	$ -	$ 443,821

The Level 2 fair value measurement was determined under cash flow discounting analysis using the income approach.

(II) Fair value information - financial instruments measured at fair value on a repetitive basis

Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	$ 438,632	$ -	$ -	$ 438,632
Gold passbook	191,170	-	-	191,170
TWSE (TPEx)-listed stocks	2,797	-	-	2,797
	$ 632,599	$ -	$ -	$ 632,599

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Financial liabilities at fair value through profit or loss	$ -	$ 6,630	$ -	$ 6,630
Put option on convertible bonds
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	$ 17,891	$ -	$ -	$ 17,891
TWSE (TPEx)-listed stocks	4,241	-	-	4,241
Call option on convertible bonds	-	90	-	90
	$ 22,132	$ 90	$ -	$ 22,222
Financial liabilities at fair value through profit or loss
Put option on convertible bonds	$ -	$ 2,460	$ -	$ 2,460

There was no transfer of fair value measurements between Level 1 and Level 2 in 2025 and 2024.

Evaluation technology and inputs of Level 2 fair value measurement

Class of financial instruments	Evaluation technology and inputs
Call and put options embedded in convertible bonds	Fair value is measured using a binomial tree model for convertible bonds, and the input parameters used in the valuation model, such as interest rates, yield curves, and volatility, are based on observable market data.

(III) Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Measured at fair value through profit or loss
Mandatory measurement through profit or loss at fair value	$ 632,599	$ 22,222
Financial assets at fair value through other comprehensive income
Debt instrument investments	181,032	-

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Financial assets measured at after-amortization cost (Note 1)	5,387,503	6,153,872
Financial liabilities
Measured at fair value through profit or loss
Held for trading	6,630	2,460
Measured at amortized cost (Note 2)	6,244,388	6,464,247

Note 1: The balance comprises financial assets measured at amortized cost, including cash and cash equivalents, financial assets at amortized cost, notes receivable (including related parties), accounts receivable (including related parties), other receivables (excluding value-added tax), other financial assets, and refundable deposits.

Note 2: The balance includes short-term borrowings, short-term bills payable, notes and accounts payable (including related parties), other payables (including related parties but excluding employee benefits and business tax), corporate bonds payable, long-term borrowings, guarantee deposits received, and other financial liabilities measured at amortized cost.

(IV) Financial risk management purpose and policy

The Group’s main financial instruments include investments in equity instruments, cash and cash equivalents, notes receivable, accounts receivable, accounts payable, corporate bonds payable, loans and lease liabilities. The Group’s financial management department provides services to each business unit and coordinates access to financial markets according to the level and breadth of risk in order to monitor and manage financial risks in relation to the Group’s operations. These risks include market risk (including exchange rate risk and interest rate risk), credit risk and liquidity risk.

Market risk

The major financial risks that the operating activities imposed on the Group is the foreign exchange rate risk (as described in (1) below) and interest rate risk (as described in (2) below).

(1) Exchange rate risk

The Group engages in foreign currency-denominated sales and import transactions, exposing the Group to exchange rate fluctuations.

For the carrying amounts of the Group's monetary assets and monetary liabilities denominated in non-functional currencies as of the balance sheet date (including monetary items denominated in non-functional currencies that have been offset in the consolidated financial statements), please refer to Note 35.

Sensitivity analysis

The Group is primarily affected by exchange rate fluctuations in the USD, RMB, and Euro.

The following table consists of details of an analysis of the Group's sensitivity when the exchange rate of each functional currency increases and decreases by 1%. This 1% is the sensitivity ratio used by the Group when reporting the exchange rate risk to key management. It also indicates the assessment of management of the reasonably possible range of changes in foreign currency exchange rates. The sensitivity analysis includes only foreign currency monetary items in circulation and 1% of their year-end translation is adjusted in exchange rates. The amounts in the following table represent the increase (decrease) in net income before tax when NTD depreciates by 1% against each relevant currency; when NTD appreciates by 1% against each relevant currency, the effect on the income before tax is represented with a negative number of the same amount.

	Effect of USD		Effect of RMB		Effect of Euro
	2025	2024	2025	2024	2025	2024
Profit or loss	$ 4,695	($ 3,860)	($ 621)	$ 155	$ 399	($ 1,609)
	(Note 1)	(Note 1)	(Note 2)	(Note 2)	(Note 3)	(Note 3)

Note 1: The profit or loss was mainly generated from the Group's USD-denominated bank deposits, receivables, short-term loans and payables which were outstanding on the balance sheet date and were not hedged against the cash-flow risk.

Note 2: The profit or loss was mainly generated from the Group's RMB-denominated bank deposits, receivables, and payables which were outstanding on the balance sheet date and were not hedged against the cash-flow risk.

Note 3: The profit or loss was mainly generated from the Group's Euro-denominated receivables, and payables which were outstanding

70 -

on the balance sheet date and were not hedged against the cash-flow risk.

The Group’s sensitivity to the USD exchange rate increased in the current year, mainly due to the increase in amounts receivable denominated in USD resulting from the increase in sales denominated in USD. The sensitivity to the RMB exchange rate recorded a year-on-year decrease, mainly due to the increase in accounts payable denominated in RMB resulting from the increase in purchase denominated in RMB. The sensitivity to the Euro exchange rate increased in the current year, mainly due to the increase in amounts receivable denominated in Euro resulting from the increase in sales denominated in Euro.

(2) Interest rate risk

The interest rate risk exposure occurs as the Group’s entities borrow funds at the floating rates at the same time. The Group pays attention to changes in market interest rates to manage interest rate risk.

The carrying amounts of the Group’s financial assets and financial liabilities exposed to interest rate risk as of the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
With fair value interest rate risk
- Financial assets	$ 615,026	$ 637,561
- Financial liabilities	2,255,840	2,767,908
With cash flow interest rate risk
- Financial assets	980,498	1,839,800
- Financial liabilities	1,848,799	1,257,135

Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk exposure of the non-derivative instruments on the balance sheet date. As for the liabilities at floating interest rate, the analysis is made with the assumption that the outstanding liability amount on the balance sheet date is completely in circulation during the reporting period. The variable interest rate used by the Group when reporting the interest rate to the key management is the interest rate plus or minus 1%. It also indicates the

assessment of management on the reasonable potential fluctuation of the interest rate.

If the interest rate increased/decreased by 1%, with all other variables held constant, the net income before tax of the Group in 2025 and 2024 will decrease/increase by NT$8,683 thousand and NT$5,827 thousand, respectively.

The Group’s sensitivity to interest rates increased in the year, mainly due to an increase in variable-rate bank deposits.

Credit risk

Credit risk refers to the risk of financial loss of the Group resulting from the counterparty’s default on contractual obligations. As of the balance sheet date, the Group’s maximum exposure to the credit risk of financial loss due to the failure of counter-parties’ obligation performance and financial guarantee provided by the Group was mainly due to the carrying amount of financial assets recognized in the consolidated balance sheet.

The Group’s credit risk is mainly concentrated in the top 10 customers. As of December 31, 2025 and 2024, the ratio of total receivables (including notes receivable, accounts receivable, finance lease receivable and long-term finance lease receivable) from the top 10 customers was 79% and 81%, respectively.

Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support the Group’s business operation and reduce the effect of the fluctuating cash flow. Management of the Group monitors the use of financing facility and ensures compliance with the terms of the loan contract.

For the Group, bank loans are one of the important sources of liquidity. For the unused credit limits of the Group, please refer to the description of credit limits in (2) below.

(1) Liquidity and interest rate risks of non-derivative financial liabilities

The remaining contractual maturity analysis of the non-derivative financial liabilities is compiled based on the earliest repayment date required to the Group and the non-discounted cash flow of the financial liabilities (including the principal and estimated interest). Hence, the bank loan which the Group may be requested to repay immediately is listed in the earliest period on the table without consideration of the possibility of

72 -

the bank to exercise this right immediately; the maturity analysis of other non-derivative financial liabilities is compiled based on the agreed repayment date.

For the interest cash flow paid at floating interest rates, the undiscounted interest amount is inferred based on the yield curve on the balance sheet date.

December 31, 2025

	Required immediate repayment or less than 1 month	1-3 months	3-6 months	6 months - 1 year	1-2 years	More than 2 years
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 1,183,111	$ 855,270	$ 271,280	$ 1,906	$ -	$ -
Lease liabilities	5,806	11,612	17,404	30,919	59,317	181,883
Floating-rate instruments	14,321	113,332	46,049	99,302	218,178	1,529,217
Fixed-rate instruments	223,740	444,441	828,897	231,386	-	300,000
	$ 1,426,978	$ 1,424,655	$ 1,163,630	$ 363,513	$ 277,495	$ 2,011,100

More information on the maturity analysis of the above financial liabilities is as follows:

	Less than 1 year	1-5 years	5-10 years	10-15 years	15-20 years
Lease liabilities	$ 65,742	$ 179,897	$ 61,302	$ -	$ -
Floating-rate instruments	273,004	1,747,395	-	-
Fixed-rate instruments	1,728,464	300,000	-	-	-
	$ 2,067,210	$ 2,227,292	$ 61,302	$ -	$ -

December 31, 2024

	Required immediate repayment or less than 1 month	1-3 months	3-6 months	6 months - 1 year	1-2 years	More than 2 years
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 975,942	$ 1,145,615	$ 289,385	$ 3,160	$ -	$ -
Lease liabilities	6,451	12,903	19,418	37,119	62,449	238,275
Floating-rate instruments	85,701	139,537	179,652	109,444	152,881	743,265
Fixed-rate instruments	539,573	539,126	926,817	169,453	-	300,000
	$ 1,607,667	$ 1,837,181	$ 1,415,272	$ 319,176	$ 215,330	$ 1,281,540

More information on the maturity analysis of the above financial liabilities is as follows:

	Less than 1 year	1-5 years	5-10 years	10-15 years	15-20 years
Lease liabilities	$ 75,891	$ 203,692	$ 97,032	$ -	$ -
Floating-rate instruments	514,334	440,459	214,478	195,357	45,852
Fixed-rate instruments	2,174,969	300,000	-	-	-

$ 2,765,194 $ 944,151 $ 311,510 $ 195,357 $ 45,852

(2) Credit limit

	December 31, 2025	December 31, 2024
Unsecured bank overdraft facilities
Amount
utilized	$ 1,392,949	$ 1,646,362
Amount
unutilized	2,399,158	1,486,762
	$ 3,792,107	$ 3,133,124
Secured bank borrowing facilities
Amount
utilized	$ 2,151,001	$ 1,244,646
Amount
unutilized	1,283,850	521,612
	$ 3,434,851	$ 1,766,258

(V) Information on financial asset transfer

Information on the Group’s discounted notes receivable outstanding at the end of the year is as follows:

December 31, 2025

Related Party	Discounted amount	Amount transferred to other receivables	Amount available for advance	Amount advanced	Annual interest rate on amount advanced
Ningbo Bank, Shanghai Jiading Branch	$ 248,579	$ -	$ -	$ 248,579	0.60%~0.77%

The Group transferred some of its banker’s acceptance receivable in China to the suppliers to pay for accounts payable. As almost all risks and rewards of these bills were transferred, the Group derecognized the banker’s acceptance receivable transferred and the corresponding accounts payable. However, the Group continues to participate in these bills as the suppliers have the right to request the Group for settlement if the banker’s acceptance receivable derecognized fails to be honored at mutuality.

The maximum exposure to loss on the Group’s continuous participation in the derecognized bank’s acceptance bills transferred but not yet matured at December 31, 2025 and 2024 had a face value of NT$52,593 thousand and $378,891 thousand, respectively. These bills mature within one to five months after the balance sheet date.

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Taking into account the credit risk of the bank's acceptance bills derecognized, the Group assessed that the fair value of its continuous participation was not material.

The Group did not recognize any gains or losses when transferring the banker's acceptance receivable for 2025 and 2024, and no gains or losses were recognized for the current and cumulative periods for its continuous participation in these bills.

XXXII. Related Party Transactions

As the transactions, account balances, revenues, and expenses between the Company and its subsidiaries (related parties of the Company) were eliminated upon consolidation, there is no disclosure in this note. In addition to those disclosed in other notes, the transactions between the Group and other related parties are as follows:

(I) Names of the related party and the relationship with it

Related Party Name	Relationship with the Group
Damao TYC Automotive Components Co., Ltd. (Damao TYC)	Substantive related party (Notes 1 and 4)
Chongqing Damao TYC Automotive Components Co., Ltd. (Chongqing Damao)	Substantive related party (Notes 2 and 5)
Changzhou Tweixi Precision Mould Co., Ltd. (Changzhou Tweixi)	Substantive related party (Notes 3 and 6)
Kunshan TYC Automotive Components Co., Ltd. (Kunshan TYC)	Substantive related party (Note 2)

Note 1: The chairman of an investee that has indirect joint control of such company is a director of the Company.

Note 2: Subsidiary of Damao TYC

Note 3: The chairman of such company is a director of the Company.

Note 4: Formerly Varroc TYC Auto Lamps Co., Ltd.

Note 5: Formerly Chongqing Varroc TYC Auto Lamps Co., Ltd.

Note 6: Formerly Changzhou Damao Precision Industrial Co., Ltd.

(II) Operating revenue

Accounting items	Related party category/name	2025	2024
Sales revenue	Substantive related party Others	$ 375,370	$ 525,727

The Group's selling prices to related parties are negotiated based on product types with reference to market prices and other factors, and the collection conditions are equivalent to non-related parties.

(III) Purchases

The purchase prices for goods procured by the Group from related parties are determined based on product type with reference to market prices and other factors, and the payment terms are comparable to those with non-related parties.

(IV) Receivables from related parties

Accounting items	Related party category/name	December 31, 2025	December 31, 2024
Notes receivable - Related parties	Substantive related party
	Damao TYC	$ 63,481	$ 128,171
	Chongqing Varroc TYC	58,421	35,356
Chongqing Varroc TYC		$ 121,902	$ 163,527
Accounts receivable - Related parties	Substantive related party
	Damao TYC	$ 49,798	$ 94,842
	Chongqing Varroc TYC	32,080	75,101
	Others	2,743	-
		$ 84,621	$ 169,943

No guarantee was received from related parties for outstanding receivables. No allowance for losses were provided for receivables from related parties in 2025 and 2024.

(V) Accounts payables from related parties

Accounting items	Related party category/name	December 31, 2025	December 31, 2024
Accounts payable - Related parties	Substantive related party
	Damao TYC	$ 318	$ 189
	Chongqing	133	-
	Varroc TYC
		$ 451	$ 189
Other payables - related parties	Substantive related party
	Changzhou TYC	$ 303	$ 302

No guarantee was received from related parties for outstanding accounts payables.

(VI) Remuneration to key management

	2025	2024
Short-term employee benefits	$ 17,614	$ 24,031
Post-employment benefits	108	108
	$ 17,722	$ 24,139

Remuneration to directors and other key management is determined by the Remuneration Committee based on individual performance and market trends.

XXXIII. Pledged Assets

The following assets were provided as collateral for financing loans and goods received from the customs:

	December 31, 2025	December 31, 2024
Land and buildings	$ 748,956	$ 754,376
Equipment	62,533	75,798
Allowed cash and pledged time deposits (recorded as other financial assets)	61,362	63,286
	$ 872,851	$ 893,460

XXXIV. Significant Contingent Liabilities and Unrecognized Commitments

Except as disclosed in other notes, the significant commitments of the Group as of the balance sheet date are as follows:

Unrecognized contractual commitments

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment	$ 102,877	$ 125,801

XXXV. Information on foreign currency assets and liabilities with significant effect

The following information is summarized and stated based on the foreign currencies other than the functional currency of the Group's individual entities. The disclosed exchange rate represents the exchange rate of such foreign currency to the functional currency. Information on foreign currency assets and liabilities with significant effect is as follows:

December 31, 2025

	Foreign currency	Exchange rate	Book value
Foreign currency assets
Monetary item
USD	$ 47,106	31.43 (USD : NTD)	$ 1,480,542

RMB	15,331	4.496 (RMB : NTD)	68,928
Euro	298	36.90 (EUR : NTD)	10,996
Foreign currency liabilities
Monetary item
USD	59,263	31.43 (USD : NTD)	1,862,636
USD	2,841	7.32 (USD : RMB)	89,293
Euro	911	36.90 (EUR : NTD)	33,616

December 31, 2024

	Foreign currency	Exchange rate	Book value
Foreign currency assets
Monetary item
USD	$ 52,618	32.785 (USD : NTD)	$ 1,725,081
Euro	5,266	7.62 (EUR : RMB)	179,781
USD	1,509	7.32 (USD : RMB)	49,473
RMB	9,217	4.478 (RMB : NTD)	41,274
Foreign currency liabilities
Monetary item
USD	40,013	32.785 (USD : NTD)	1,311,826
USD	2,352	7.32 (USD : RMB)	77,110
RMB	12,670	4.478 (RMB : NTD)	56,736

The Group's foreign currency conversion gains (losses) (realized and unrealized) were NT$(4,431) thousand and NT$39,561 thousand in 2025 and 2024, respectively. Due to transactions in foreign currencies and the wide variety of group entities' functional currencies, the Group is unable to disclose the conversion gain or loss based on each foreign currency of material impact.

XXXVI. Additional Disclosures

(I) Information about significant transactions:

Loans to others: Table 1.
Endorsements/guarantees provided: Table 2.
Marketable securities held at end of period (excluding the equity of investment in subsidiaries): Table 3.
Purchase or sale of goods with related parties is at least NT$100 million or 20% of the paid-in capital: Table 4.

Receivables from related parties is at least NT$100 million or 20% of the paid-in capital: Table 5.
Other: Business relationships and significant transactions between the parent company and subsidiaries and between the subsidiaries, and their amounts: Table 6.

(II) Information related to the investment business (excluding investee companies in Mainland China): Table 7.

(III) Information on investments in mainland China:

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

(1) The amount and percentage of purchases, and the ending balance and percentage of the related payables.

(2) The amount and percentage of sales, and the ending balance and percentage of the related receivables.

(3) The amount of property transactions and the resulting gains or losses.

(4) The ending balance and purpose of endorsements and guarantees of notes, or the provision of collateral.

(5) The maximum balance, ending balance, interest rate range, and total interest for the period in respect of financing arrangements.

(6) Other transactions that have a significant impact on the profit or loss or financial position for the period, such as the provision or receipt of services.

XXXVII. Segments Information

The Group’s information reported to the chief operating decision-maker for resource allocation and segment performance assessment focuses on types of goods or services delivered or provided. The Group’s reportable segments for 2022 and 2021 are as follows:

Laster Segment - the Company.
Dongguan Laster - Laster Dongguan.
79 -

Shanghai Laster Segment - Laster Shanghai.
Other segments - subsidiaries other than the above subsidiaries.

(I) Segment revenues and results

The revenue and the operating results of the Group are analyzed based on the segments to be reported as follows:

2025

	Laster Segment	Dongguan Laster Segment	Shanghai Laster Segment	Other segments	Total
Revenue from external customers	$ 2,004,889	$ 492,089	$ 6,004,769	$ 41,048	$ 8,542,795
Interdepartmental revenue	78,005	79,753	81,123	70,849	309,730
Segment Revenue	2,082,894	571,842	6,085,892	111,897	8,852,525
Internal write-offs	( 78,005 )	( 79,753 )	( 81,123 )	( 70,849 )	( 309,730 )
Consolidated revenue	$ 2,004,889	$ 492,089	$ 6,004,769	$ 41,048	$ 8,542,795
Segment profit or loss	( $ 31,393 )	$ 68,104	$ 26,627	( $ 40,452 )	$ 22,886
Interest income					30,167
Other income					21,523
Other gains and losses					54,509
Financial costs					( 103,229 )
Net Income before tax					$ 25,856

2024

	Laster Segment	Dongguan Laster Segment	Shanghai Laster Segment	Other segments	Total
Revenue from external customers	$ 2,488,754	$ 559,095	$ 6,277,999	$ 12,549	$ 9,338,397
Interdepartmental revenue	291,913	76,436	163,459	19,340	551,148
Segment Revenue	2,780,667	635,531	6,441,458	31,889	9,889,545
Internal write-offs	( 291,913 )	( 76,436 )	( 163,459 )	( 19,340 )	( 551,148 )
Consolidated revenue	$ 2,488,754	$ 559,095	$ 6,277,999	$ 12,549	$ 9,338,397
Segment profit or loss	$ 581	$ 71,625	$ 276,285	( $ 36,769 )	$ 311,722
Interest income					18,013
Other income					17,207
Other gains and losses					48,591
Financial costs					( 93,066 )
Net Income before tax					$ 302,467

(II) Revenue from major products

By product	2025	2024
LED automotive lighting	$ 5,504,581	$ 5,806,453
Vehicle lamp controller	2,931,387	3,455,927
Components	68,500	16,890
LED chips	18,818	33,831
LED lighting fixtures	11,065	12,686
LED components	8,444	10,667
	$ 8,542,795	$ 9,336,454

(III) Information on the regions

The Group primarily operates in four regions—Taiwan, China, Thailand, and the Americas.

The Groups operating revenue from external customers based on the location of customers and non-current assets based on the location of assets is listed as follows:

	Revenue from external customers
	2025	2024
China	$ 5,874,431	$ 6,226,755
USA	2,228,890	2,680,865
Others	439,474	430,777
	$ 8,542,795	$ 9,338,397
	Non-Current Assets
	December 31, 2025	December 31, 2024
Taiwan	$ 1,162,967	$ 1,204,526
China	717,283	738,335
The Americas	46,726	-
Thailand	37,298	31,529
	$ 1,964,274	$ 1,974,390

Non-current assets do not include financial instruments, deferred tax assets and net defined benefit assets.

(IV) Information on major customers

A single customer who contributes 10% or more of the Group’s total revenue is as follows:

	2025	2024
Customer A	$ 4,715,617	$ 5,788,422
Customer B	1,205,996	892,323

Laster Tech Co., Ltd. and Subsidiaries

Loans to others

2025

Units: NT$ thousands, unless otherwise specified

Table 1

Serial No. (Note 1)	Loan extending company	Borrower	Dealing items	Whether a related party	Maximum balance for the period	Ending balance	Transaction Amounts	Interest Rate	Loan nature (Note 2)	Business Transaction Amounts (Note 4 and 5)	Reason for short-term financing	Provision for allowance for loss for bad debt	Collateral		Loans limits for individual entities	Total loan limit	Remark
													Name	Value
0	Laster Tech Co., Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	Other receivables - related parties	Yes	118,884	$ -	$ -	-	(1)	$ 276,618	Operational turnover	$ -	-	$ -	$ 276,618 (Note 3)	$ 1,430,912 (Note 4)	-
0	Laster Tech Co., Ltd.	Laster Tech (Thailand) Co., Ltd.	Other receivables - related parties	Yes	40,076	40,076	-	-	(2)	-	Operational turnover	-	-	-	715,456 (Note 5)	1,430,912 (Note 4)	-
0	Laster Tech Co., Ltd.	Windlux International Co., Ltd.	Other receivables - related parties	Yes	60,000	60,000	-	-	(2)	-	Operational turnover	-	-	-	715,456 (Note 6)	1,430,912 (Note 4)	-
0	Laster Tech Co., Ltd.	Laster Forever (Samoa) Co., Ltd	Other receivables - related parties	Yes	20,295	20,295	-	-	(2)	-	Operational turnover	-	-	-	715,456 (Note 7)	1,430,912 (Note 4)	-
1	LasterTech Electronics (Dongguan) Co., Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	Other receivables - related parties	Yes	181,380	179,840	89,920	3.00%	(2)	-	Operational turnover	-	-	-	1,037,867 (Note 8)	1,037,867 (Note 8)	Note 12
2	Laster Tech Opto (Shenzhen) Co., Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	Other receivables - related parties	Yes	67,170	-	-	3.50%	(2)	-	Operational turnover	-	-	-	183,415 (Note 9)	183,415 (Note 9)	Note 12
3	Li San (Shanghai) International Trade Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	Other receivables - related parties	Yes	34,298	-	-	3.00%	(2)	-	Operational turnover	-	-	-	46,115 (Note 10)	46,115 (Note 10)	Note 12
4	LasterTech Automotive (Shanghai) Co., Ltd.	Li San (Shanghai) International Trade Ltd.	Other receivables - related parties	Yes	47,208	47,208	31,472	3.00%	(2)	-	Operational turnover	-	-	-	2,592,963 (Note 11)	2,592,963 (Note 11)	Note 12

Note 1: The explanation of the number column is as follows:
(1) Fill in 0 for the issuer.
(2) Investee companies are numbered in sequence in each company type starting numerically from 1.

Note 2: The nature of loaning of funds is completed in the following manner:
(1) Fill in "1" for a company which the Company has business dealings with.
(2) Fill in "2" for a company with necessary need of short-term financing

Note 3: Loaning of funds for business dealings is subject to an aggravate amount of NT$531,417 thousand which is the businesses dealings between the 2 parties during the 12-month period before the loan. A loan shall not exceed the total aggregate loan amount of NT$1,406,754 thousand (Note 6) of Laster Tech Co., Ltd. Therefore, the limit is NT$276,618 thousand.

Note 4: The aggregate limit is 40% of the net value of the latest financial statements of Laster Tech Co., Ltd. audited or reviewed. After calculation, the limit was NT$1,430,912 thousand (net value of NT$3,577,281 thousand at December 31, 2025 x 40%).

Note 5: For fund lending between Laster Tech Co., Ltd. and its subsidiary Laster Tech (Thailand) Co., Ltd., as well as among companies in which they directly or indirectly hold 100% of the voting shares, the aggregate limit is 20% of the net worth based on the most recent audited or reviewed financial statements, amounting to NT$715,456 thousand (net worth of NT$3,577,281 thousand as of December 31, 2025 × 20%).

Note 6: For fund lending between Laster Tech Co., Ltd. and its subsidiary Windlux International Co., Ltd., as well as among companies in which they directly or indirectly hold 100% of the voting shares, the aggregate limit is 20% of the net worth based on the most recent audited or reviewed financial statements, amounting to NT$715,456 thousand (net worth of NT$3,577,281 thousand as of December 31, 2025 × 20%).

Note 7: For fund lending between Laster Tech Co., Ltd. and its subsidiary Laster Forever (Samoa) Co., Ltd, as well as among companies in which they directly or indirectly hold 100% of the voting shares, the aggregate limit is 20% of the net worth based on the most recent audited or reviewed financial statements, amounting to NT$715,456 thousand (net worth of NT$3,577,281 thousand as of December 31, 2025 × 20%).

Note 8: The aggregate amount of a loan by Laster Tech Electronics (Dongguan) Co., Ltd. and its parent company Laster Tech Co., Ltd. to companies in which they directly or indirectly hold 100% of their shares is subject to 100% of the net value of the most recent financial statements of the loaner Laster Tech Electronics (Dongguan) Co., Ltd. After calculation, the limit was NT$1,037,867 thousand (net value of NT$1,037,867 thousand on December 31, 2025 x 100%).

Note 9: The amount of a loan to a single company by Laster Tech Opto (Shenzhen) Co., Ltd. and its parent company Laster Tech Co., Ltd. to companies in which they directly or indirectly hold 100% of their shares is subject to 100% of the net value of the most recent financial statements of the loaner Laster Tech Opto (Shenzhen) Co., Ltd. After calculation, the limit was NT$183,415 thousand (net value of NT$183,415 thousand at December 31, 2025 x 100%).

Note 10: The amount of a loan to a single company by Li San (Shanghai) International Trade Ltd. and its parent company Laster Tech Co., Ltd. to companies in which they directly or indirectly hold 100% of their shares is subject to 100% of the net value of the most recent financial statements of the loaner Li San (Shanghai) International Trade Ltd. After calculation, the limit was NT$46,115 thousand (net value of NT$46,115 thousand at December 31, 2025 x 100%).

Note 11: The aggregate amount of a loan by Laster Tech Automotive (Shanghai) Co., Ltd. and its parent company Laster Tech Co., Ltd. to companies in which they directly or indirectly hold 100% of their shares is subject to 100% of the net value of the most recent financial statements of the loaner Laster Tech Automotive (Shanghai) Co., Ltd. After calculation, the limit was NT$2,592,963 thousand (net value of NT$2,592,963 thousand on December 31, 2025 x 100%).

Note 12: Written off upon preparation of the consolidated financial statements.

83 -

Laster Tech Co., Ltd. and Subsidiaries

Endorsement/guarantee provided

2025

Table 2
Units: NT$ thousands, unless otherwise specified

Serial No. (Note 1)	Name of company of the endorsement/guarantee	Guaranteed Party		Endorsement/guarantee limit for a single enterprise	Maximum endorsement/guarantee balance of the period	Endorsement/guarantee balance of the period	Transaction Amounts	Amount of endorsement/guarantee backed by assets	Ratio of the cumulative endorsement/guarantee amount to the net value in the latest financial report	Endorsement/guarantee limit	Endorsement/guarantee from the parent company to subsidiary (Note 9)	Endorsement/guarantee from subsidiary to parent company (Note 9)	Endorsement/guarantee to entities in the Mainland China (Note 9)	Remark
		Company name	Relationship (Note 2)
0	Laster Tech Co., Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	(2)	$ 1,788,640 (Note 3)	$ 290,690	$ 278,500	$ 14,207	$ -	7.79%	$ 1,788,640 (Note 4)	Y	N	Y	--
0	Laster Tech Co., Ltd.	LasterTech Electronics (Dongguan) Co., Ltd.	(2)	1,788,640 (Note 3)	382,160	382,160	-	-	10.68%	1,788,640 (Note 4)	Y	N	Y	--
1	LasterTech Electronics (Dongguan) Co., Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	(4)	1,037,867 (Note 5)	820,230	764,320	52,327	-	73.64%	1,037,867 (Note 6)	N	N	Y	--
2	LasterTech Automotive (Shanghai) Co., Ltd.	LasterTech Electronics (Dongguan) Co., Ltd.	(4)	2,592,963 (Note 7)	91,460	89,920	-	-	3.47%	2,592,963 (Note 8)	N	N	Y	--

Note 1: The explanation of the number column is as follows:
(1) Fill in 0 for the issuer.
(2) Investee companies are numbered in sequence in each company type starting numerically from 1.

Note 2: The party who the Company makes endorsement/guarantee to is subject to the following types:
(1) A company with business relations.
(2) A company with more than 50% of its voting shares is directly and indirectly held by the company.
(3) A company directly or indirectly holding more than 50% of the voting shares of the company.
(4) A company with more than 90% of its voting shares is directly or indirectly held by the company.
(5) A company with mutual guarantees in accordance with the contract which is in the same industry or a joint constructor to contract the project.
(6) A company that has been endorsed/guaranteed by all the contributing shareholders in accordance with their shareholding ratios due to a joint investment relationship.
(7) Joint and several guarantees for the performance of a contract for the sale of pre-sold houses among companies in the same industry in accordance with the provisions of the Consumer Protection Act.

Note 3: The amount limit of endorsement/guarantee between Laster Tech Co., Ltd. and a company in which it directly and indirectly owns 50% or more of its voting shares is subject to 50% of the net value of the latest financial statements of Laster Tech Co., Ltd. audited or reviewed. After calculation, the limit was NT$1,788,640 thousand (net value of NT$3,577,281 thousand on December 31, 2025 x 50%).

Note 4: The maximum limit is 50% of the net value of the latest financial statements of Laster Tech Co., Ltd. audited or reviewed. After calculation, the limit was NT$1,788,640 thousand (net value of NT$3,577,281 thousand on December 31, 2025 x 50%).

Note 5: The amount limit of endorsement/guarantee between Laster Tech Electronics (Dongguan) Co., Ltd. and a company in which it directly and indirectly owns 100% of its voting shares is subject to 100% of the net value of the latest financial statements of Laster Tech Co., Ltd. audited or reviewed. After calculation, the limit was NT$1,037,867 thousand (net value of NT$1,037,867 thousand on December 31, 2025 x 100%).

Note 6: The maximum limit is 100% of the net worth of Li Qing Electronics (Dongguan) Co., Ltd. on the most recent audited or reviewed financial statements, which is calculated as NTD 1,037,867 thousand (Net worth on December 31, 2025 at NTD 1,037,867 thousand = 100%).

Note 7: The amount limit of endorsement/guarantee between Laster Tech Automotive (Shanghai) Co., Ltd. and a company in which it directly and indirectly owns 100% of its voting shares is subject to 100% of the net value of the latest financial statements of Laster Tech Co., Ltd. audited or reviewed. After calculation, the limit was NT$2,592,963 thousand (net value of NT$2,592,963 thousand on December 31, 2025 x 100%).

Note 8: The maximum limit is 100% of the net value of the latest financial statements of Laster Tech Automotive (Shanghai) Co., Ltd. audited or reviewed. After calculation, the limit was NT$2,592,963 thousand (net value of NT$2,592,963 thousand on December 31, 2025 x 100%).

Note 9: Y is required only for an endorsement/guarantee of a listed parent company to a subsidiary, an endorsement/guarantee of a subsidiary to a listed parent company, and an endorsement/guarantee to entities in Mainland China.

85 -

Laster Tech Co., Ltd. and Subsidiaries
Status of marketable securities held at the end of the period
December 31, 2025

Table 3
Units: NT$ thousands, unless otherwise specified

Holding Company Name	Name and type of marketable securities	Relationship with the Holding Company	Financial report Account	Period end				Remark
				Number of shares/units	Book value	Shareholding ratio (%)	Fair value
Laster Tech Co., Ltd.	Stocks
	China Steel Corporation	—	Financial assets at FVTPL - Current	100,000	$ 1,900	-	$ 1,900	—
	Longchen Paper	—	Financial assets at FVTPL - Current	50,000	493	-	493	—
	China Airlines Ltd.	—	Financial assets at FVTPL - Current	20,000	404	-	404	—
	Funds
	Allianz Income and Growth - Class BMg (Monthly Payout Gross Income) (USD)	—	Financial assets at FVTPL - Current	12,302	3,197		3,197	—
	Amundi Funds Emerging Markets Bond - A (USD)	—	Financial assets at FVTPL - Current	46,992	31,341		31,341	—
	Amundi Funds Emerging Markets Bond - T AUD Hedged (Monthly Payout)	—	Financial assets at FVTPL - Current	88,080	31,441		31,441	—
	Schroder International Selection Fund - Global Multi-Asset Income AUD Hedged Class U - Distribution Month Fixed (C)	—	Financial assets at FVTPL - Current	8,350	30,981		30,981	—
	Old Mutual Asia Pacific Equity Income Fund Class L Accumulation Shares (USD)	—	Financial assets at FVTPL - Current	149,233	31,260		31,260	—
	Schroder International Selection Fund - Global Gold (USD) - A - Accumulation	—	Financial assets at FVTPL - Current	2,448	31,058		31,058
	Franklin Gold and Precious Metals Fund - Class A (USD)	—	Financial assets at FVTPL - Current	20,286	29,419		29,419	—
	Fubon NASDAQ-100 Index Fund (Class B, TWD)	—	Financial assets at FVTPL - Current	100,000	994		994	—
	Amundi Funds Emerging Markets Bond - A AUD Hedged (Monthly Payout)	—	Financial assets at FVTPL - Current	84,677	31,222		31,222	—
BlackRock Global Funds - World Gold Fund Class A2 Hedged (AUD)	—	Financial assets at FVTPL - Current	73,855	40,872		40,872	—

(To be Continued)

(Continued From Previous Page)

Holding Company Name	Name and type of marketable securities	Relationship with the Holding Company	Financial report Account	Period end				Remark
				Number of shares/units	Book value	Shareholding ratio (%)	Fair value
	BlackRock Global Funds - World Financials Fund Class A10 USD (Stable Daily Payout / Total Return)	—	Financial assets at FVTPL - Current	53,291	$ 33,013		$ 33,013	—
	Schroder International Selection Fund - Global Multi-Asset Income Class A USD - Distribution Month Fixed 2	—	Financial assets at FVTPL - Current	7,293	30,654		30,654	—
	Ninety One Global Strategy Fund - Global Gold Fund Class C Income Shares (Reinvestment)	—	Financial assets at FVTPL - Current	5,417	29,645		29,645	—
	BlackRock Global Funds - World Mining Fund Class A2 Hedged (AUD)	—	Financial assets at FVTPL - Current	92,853	32,218		32,218	—
	SinoPac China Technology Fund	—	Financial assets at FVTPL - Current	554,000	6,726		6,726	—
	Shin Kong US Electric Power and Infrastructure Fund	—	Financial assets at FVTPL - Current	1,125,000	13,961		13,961	—
	Yuanta Global AI New Economy Active ETF	—	Financial assets at FVTPL - Current	3,000,000	30,630		30,630	—
	Bonds
	PIFKSA 5 3/8 01/29/54	—	Financial assets at fair value through other comprehensive income - non-current	-	28,150		28,150	—
	KSA 5 3/4 01/16/54	—	Financial assets at fair value through other comprehensive income - non-current	-	31,839		31,839	—
	ARAMCO 5 3/4 07/17/54	—	Financial assets at fair value through other comprehensive income - non-current	-	31,410		31,410	—
	AFL 4.75 01/15/49	—	Financial assets at fair value through other comprehensive income - non-current	-	30,289		30,289	—
	AAPL 4.65 02/23/46	—	Financial assets at fair value through other comprehensive income - non-current	-	29,015		29,015	—
MMM 5.70 03/15/37	—	Financial assets at fair value through other comprehensive income - non-current	-	30,329		30,329	—

87 -

2025
Units: NT$ thousands, unless otherwise specified

Laster Tech Co., Ltd. and Subsidiaries

Purchase or sale of goods with related parties is at least NT$100 million or 20% of the paid-in capital

Table 4

Buyer/Seller	Name of counterparty	Relationship	Transaction Details				Differences in transaction terms from those of general transactions and reasons		Note/Accounts Receivable (Payable)		Remark
			Purchase/Sale	Amount	Percentage of total purchase (sale)	Credit period	Unit Price	Credit period	Balance	Percentage over total notes and accounts receivable (payable)
LasterTech Automotive (Shanghai) Co., Ltd.	Damao TYC Automotive Components Co., Ltd.	Substantive related party	Sales	($ 211,017)	( 10.13%)	Receipt of funds according to their capital status	-	Note	$ 113,279	3.92%	-
LasterTech Automotive (Shanghai) Co., Ltd.	Chongqing Damao TYC Automotive Components Co., Ltd.	Substantive related party	Sales	( 158,902)	( 7.63%)	Receipt of funds according to their capital status	-	Note	90,501	3.13%	-

Note: More flexible collection terms are adopted in consideration of the overall cost and capital deployment.

88 -

Laster Tech Co., Ltd. and Subsidiaries
Statement of Receivables From Related Parties Is at Least NT$100 Million or 20% Of the Paid-in Capital
December 31, 2025

Table 5
Units: NT$ thousands, unless otherwise specified

Company Name	Name of counterparty	Relationship	Balance of accounts receivable from related parties	Overdue		Accounts receivable from related parties recovered after the period (Note 1)	Amount of allowance for losses recognized	Remark
				Amount	Actions Taken
Laster Tech Co., Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	Sub-subsidiary	Accounts receivable $ 55,631	0.33	$ -	Receipt of funds according to their capital status	$ -	$ -	Note 2
			Other receivables 213,593		$ -	—	24,865	$ -	Note 2
			$ 269,224		$ -		$ 24,865	$ -
LasterTech Automotive (Shanghai) Co., Ltd.	Damao TYC Automotive Components Co., Ltd.	Substantive related party	Notes receivable and receivable accounts $ 113,279	1.67	$ -	Receipt of funds according to their capital status	$ 61,770	$ -	—
LasterTech Electronics (Dongguan) Co., Ltd.	LasterTech Automotive (Shanghai) Co., Ltd.	Sister company	Accounts receivable $ 13,082	1.67	$ -	Receipt of funds according to their capital status	$ 11,879	$ -	Note 2
			Other receivables - loaning of funds 89,920		$ -	—	89,920	$ -	Note 2
			(see Table 1) $ 103,002		$ -		$ 101,799	$ -

Note 1: Amount recovered as of March 13, 2026.
Note 2: Written off upon preparation of the consolidated financial statements.

89 -

2025
- 90 -

Laster Tech Co., Ltd. and Subsidiaries

Business relationships and significant transactions between the parent company and subsidiaries and between the subsidiaries, and their amounts

Table 6
Units: NT$ thousands, unless otherwise specified

Serial No. (Note 1)	Transaction Company	Counterparty	Relationship with the transaction parties (Note 2)	Description of Transactions
				Account	Amount (Note 4)	Transaction Terms	Percentage over consolidated total revenue or total assets (Note 3)
0	The Company	Laster Shanghai	(1)	Other receivables - related parties	213,593	Depending on availability of funds	2.1%
		Laster Shanghai	(1)	Accounts receivable - Related parties	55,631	Depending on availability of funds	0.5%
1	Laster Dongguan	Laster Shanghai	(3)	Other receivables - related parties (financing)	89,920	Handled according to the general conditions	0.9%
		Laster Shanghai	(3)	Sales revenue	66,838	Handled according to the general conditions	0.8%

Note 1: The business information between the parent company and the subsidiary shall be indicated in the number column respectively, and the number shall be filled in as follows:
(1) Fill in 0 for the parent company
(2) Subsidiaries are numbered in sequence in each company type starting numerically from 1.

Note 2: There are three types of relations with the transaction company, just enter the code:
(1) Parent company with a subsidiary.
(2) A subsidiary with a subsidiary.

Note 3: Regarding the proportion of transaction amount to the total consolidated revenue or assets, if it is recognized in the balance sheet account, it is shown with the closing balance as a percentage of the total consolidated assets; if it is in the profit or loss account, it is shown with the cumulative amount throughout the period as a percentage of the consolidated total revenue.

Note 4: Written off upon preparation of the consolidated financial statements.

Laster Tech Co., Ltd. and Subsidiaries

Investees, Locations, and Other Information

2025

Units: NT$ thousands, unless otherwise specified

Table 7

Investor	Name of investee	Location	Main Businesses and Products	Original Investment Amount		Shares held as at end of the period			Net income (loss) of investee companies in the current period	Investment gains (losses) recognized in the current period	Remark
				End of the period	End of last year	Number of shares	Ratio	Book value
Laster Tech Co., Ltd.	Laster International (Samoa) Co., Ltd.	Samoa	Investment	$ 1,263,086	$ 1,243,719	40,401,698	100%	$ 3,930,552	$ 120,849	$ 122,911 (Note 1)	Subsidiary
	Windlux International Co., Ltd.	New Taipei City	Sales of LED chips	30,000	30,000	3,000,000	100%	31,470	(60)	(60)	Subsidiary
	Happy Power Corp.	Seychelles	Investment	840	840	1,000,000	100%	1,284	314	314	Subsidiary
	Laster Tech Automotive (America)	USA	Sales of LED automotive lighting-related products	32,781	-	10,000	100%	29,341	(2,072)	(2,072)	Subsidiary
	Incorporated LASTER TECH AUTOMOTIVE MEXICO INC, S.A. DE C.V.	Mexico	Manufacturing, assembly and sales of LED automotive lighting-related products	30,970	-	3,000,000	100%	45,270	(19,548)	(19,548)	Subsidiary
Laster International (Samoa) Co., Ltd.	Laster Overseas (Samoa) Co., Ltd.	Samoa	Investment	316,844	316,844	9,836,038	100%	1,037,870	79,245		Sub-subsidiary
	Super Continental Ltd.	Mauritius	Investment	169,956	169,956	5,654,140	100%	225,689	12,299		Sub-subsidiary
	Laster Forever (Samoa) Co., Ltd.	Samoa	Investment and trading	634,266	634,266	20,802,953	100%	2,595,737	47,297		Sub-subsidiary
	Excitement Holding Co., Ltd.	Seychelles	Investment	108,518	89,150	3,073,017	100%	69,527	(17,991)		Sub-subsidiary
Happy Power Corp.	SWEEO TECHNOLOGY CO., LTD	Thailand	Sales of lighting products and lighting fixtures	847	847	12,000 (28.2)	100% (28.2)	1,279	314		Sub-subsidiary
Super Continental Ltd.	Ang Ran Technology Co., Ltd.	Hong Kong	Investment	10,141	10,141	1,800,000	100%	658	(47)		Sub-subsidiary
Excitement Holding Co., Ltd.	Laster Tech (Thailand) Co., Ltd.	Thailand	Sales of lighting products and lighting fixtures	108,745	89,377	1,000,000	100%	69,408	(17,991)		Sub-subsidiary

Note 1: The balance after the net profit of NTD 120,849 thousand of the invested company plus the net adjustment of unrealized and realized gains of NTD 2,062 thousand from downstream transactions is recognized in proportion to the shareholding.
Note 2: Due to local regulations, 5,100 shares (51% of shareholding ratio) were held in the name of a natural person of Thai nationality.
Note 3: Written off upon preparation of the consolidated financial statements.

2025
Units: NT$ thousands, unless otherwise specified

Table 8

Name of the investee in mainland China	Main Businesses and Products	Paid-in capital	Method of Investments (Note 1)	Cumulative outward remittance of investment amount from Taiwan at the beginning of the period	Investment Flows of current period		Cumulative outward remittance of the investment amount from Taiwan in the period end	Net income of investee companies for current period	% Ownership of Direct or Indirect Investment	Investment gains recognized in the current period (Note 2)	Value of the investment at the end of the period	Investment gains repatriated as of the end of the period	Remark
					Outward	Inward
LasterTech Electronics (Dongguan) Co., Ltd.	Sales of LED chips and manufacturing, assembly and sales of LED automotive lighting-related products	$ 216,984	(2) (Note 3)	$ 216,984	$ -	$ -	$ 216,984	$ 79,245	100%	$ 79,245 (Note 6)	$ 1,037,867	$ 197,550	--
Li San (Shanghai) International Trade Ltd.	Sales of LED chips and components	16,961	(2) (Note 4)	16,961	-	-	16,961	9,853	100%	9,853 (Note 7)	46,115	-	--
LasterTech Automotive (Shanghai) Co., Ltd.	Manufacturing, assembly and sales of LED automotive lighting-related products	852,046	(2) and (3) (Note 5)	584,309 (Note 8)	-	-	584,309 (Note 8)	47,336	100%	47,336 (Note 6)	2,592,963	-	--
Laster Tech Opto (Shenzhen) Co., Ltd.	Sales of energy-saving lighting fixtures and accessories	147,271	(2) (Note 4)	147,271	-	-	147,271	2,493	100%	2,493 (Note 7)	183,415	48,742	--
The cumulative amount of outward remittance of investment from Taiwan to mainland China at the end of the period	Investment amount approved by the Investment Commission, MOEA	In compliance with the investment limit stipulated by the Investment Commission, MOEA for investment in mainland China
---	---	---
$ 963,699
(Note 9)	$ 978,334
(Note 9)	No investment amount limit
(Note 10)

Note 1: Investment methods are divided into the following three types, just enter the code:
(1) Direct investment in mainland China.
(2) Indirect investment in mainland China through third-region companies.
(3) Other methods.

Note 2: In the field "Investment Gains/Losses Recognized for Current Period":
(1) If it is under preparation and there is no investment gain or loss, it shall be indicated.
(2) The recognition basis of investment gains and losses is divided into the following three types, which shall be indicated.
A. Financial statements audited and attested by any international accounting firms with partnership with any accounting firm of the Republic of China.
B. Financial statements audited and attested by CPAs appointed by the parent company in Taiwan.
C. Financial statements not reviewed by CPAs appointed by the parent company in Taiwan.

Note 3: The investee company in the third region is Laster Overseas (Samoa) Co., Ltd.
Note 4: The investee company in the third region is Super Continental Ltd.
Note 5: The investee company in the third region is Laster Forever (Samoa) Co., Ltd.
Note 6: Note 2, (2) and B is the basis for recognizing investment income or loss.
Note 7: Note 2, (2) and C. is the basis for recognizing investment income or loss.
Note 8: Including the accumulated amount of NT$569,674 thousand remitted from Taiwan through Laster Forever (Samoa) Co., Ltd. at the beginning and end of the period and the direct investment amount of NT$14,635 thousand by Laster Forever (Samoa) Co., Ltd. with its own funds, excluding NT$267,737 thousand of Laster Tech Automotive (Shanghai) Co., Ltd. with its undistributed earnings to raise capital.

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Note 9: “The cumulative amount of outward remittance of investment from Taiwan to mainland China at the end of the period” and “Investment amount approved by the Investment Commission, MOEA” included NTS12,809 thousand (among this, NTS771 thousand was retained in a third region of Ang Ran Technology Co., Ltd.) of equity remitted by (Guangzhou) Luyi Opto Technology Co., Ltd. The liquidation of (Guangzhou) Luyi Opto Technology Co., Ltd. was completed in June 2014. The Company has obtained the approval of the MOEA to cancel the investment in (Guangzhou) Luyi Opto Technology Co., Ltd. However, the amount of investment had not been recovered as of December 31, 2025.

Note 10: There is no limit on the amount of investment in accordance with the regulations of the Investment Commission, MOEA, as the Company obtained the certificate for operating the headquarters approved and issued by the MOEA.

Note 11: Written off upon preparation of the consolidated financial statements.

93 -

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Laster Tech — Annual Report 2025

52317_rns_2026-05-21_bbb6179a-1984-404a-b0c1-46b3ad6d82df.pdf

Declaration of Consolidated Financial Statement of Affiliates

Audit opinion

Basis of Audit Opinion

Key Audit Matters

Recognition of sales revenue

Other Matters

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

VII. Financial instruments measured at fair value through profit or loss

VIII. Financial assets at fair value through other comprehensive income

Debt instrument investments

Notes and accounts receivable

XIII. Subsidiary

Description:

XV. Lease agreement

(I) Right-of-use assets

(II) Lease liabilities

(III) Important lease activities and terms

XIX. Bonds payable

XX. Accounts payable

XXI. Other liabilities

XXII. Post-employment benefits

(I) Defined allocation plan

(II) Defined benefit plan

XXV. Net profit

(V) Financial costs

(VI) Depreciation and amortization

(VII) Employee benefits expense

(VIII) Employee remuneration and director’s remuneration

Estimated ratio

Amount

XXVII. Earnings per share

XXVIII. Share-based payment agreement

XXIX. Cash flow information

XXXI. Financial instrument

(I) Fair value information - financial instruments not measured at fair value

(II) Fair value information - financial instruments measured at fair value on a repetitive basis

Sensitivity analysis

(2) Interest rate risk

Sensitivity analysis

XXXII. Related Party Transactions

(IV) Receivables from related parties

(V) Accounts payables from related parties

XXXIII. Pledged Assets

XXXIV. Significant Contingent Liabilities and Unrecognized Commitments

Unrecognized contractual commitments

XXXV. Information on foreign currency assets and liabilities with significant effect

December 31, 2025

XXXVI. Additional Disclosures

Laster Tech Co., Ltd. and Subsidiaries

Laster Tech Co., Ltd. and Subsidiaries

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