Stock code: 3346

Laster Tech Co., Ltd.

Parent Company Only Financial Statements and Auditors’ 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	Notes to Parent Company Only Financial Statements
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Independent Auditors’ Report	3~6	-
IV.	Parent Company Only Balance Sheet	7	-
V.	Parent Company Only Comprehensive Income Statement	8~9	-
VI.	Parent Company Only Statement of Changes in Shareholders Equity	10	-
VII.	Parent Company Only Statement of Cash Flows	11~12	-
VIII.	Notes to Parent Company Only Financial Statements
	(I) Organization and operations	13	1
	(II) The Authorization of Parent Company Only Financial Statements	13	2
	(III) Application of Newly Released and Revised Standards and Interpretations	13~15	3
	(IV) Summary of Significant Accounting Policies	16~31	4
	(V) Major sources of uncertainty in significant accounting judgments, estimates, and assumptions	31	5
	(VI) Summary of Significant Accounting Items	31~67	6~29
	(VII) Related Party Transactions	67~69	30
	(VIII) Pledged Assets	69~70	31
	(IX) Significant Contingent Liabilities and Unrecognized Commitments	70	32
	(X) Major Disaster Losses	-	-
	(XI) Significant Subsequent Events	-	-
	(XII) Foreign currency assets and liabilities with significant effect	70~71	33
	(XIII) Additional Disclosures
	1. Information about significant transactions	71, 73~80	34
	2. Information about investees	71, 81	34
	3. Information on investments in mainland China	71~72, 82~83	34
	(XIV) Segments Information	-	-
IX.	List of important account titles	84~98	-

Independent Auditors' Report

To Laster Tech Co., Ltd.:

Audit opinion

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

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and parent company only 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.

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 Auditors' Responsibilities for the Audit of the Unconsolidated Financial Statements section of our report. We are independent of the Company 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 Parent Company Only Financial Statements of the Company according to the professional determination thereof. These matters were addressed in the context of our audit

of the unconsolidated 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 for the 2025 Parent Company Only Financial Statements of the Company are stated as follows:

Recognition of sales revenue

In 2025, the sales revenue of the Company from major customers was NT$1,996,668 thousand, accounting for 96% of the total sales revenue. The impact on the parent company only financial statements is material; hence we have identified the occurrence of such 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.
Select samples and examine the sales revenue of major customers, and review the original orders and related shipping documents.
Send letters to inquiry about the balance of accounts receivable of the above main customers at the end of the period. If no reply is received, check the collection status of such accounts.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements free from materials 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 Company 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 Company or to cease operations, or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance whether the parent company only 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 parent company only 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 parent company only 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 parent company only 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 Company.
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 Company 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 parent company only 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 Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements (including the notes to the statements), and whether the parent company only 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 Laster Tech Co., Ltd. to express an opinion on the parent company only financial
5 -

statements. We are responsible for the direction, supervision and performance of the audit, and we are responsible for forming an audit opinion on Laster Tech Co., Ltd.

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 Company's 2025 parent company only 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.
Parent Company Only 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)	$ 955,012	12	$ 1,050,391	13
1110	Financial assets at fair value through profit or loss - current (Notes 4 and 7)	473,218	6	22,222	-
1136	Financial assets measured at after-amortization cost - current (Notes 4 and 9)	-	-	3,290	-
1170	Accounts receivable (Notes 4, 10, and 22)	215,209	3	714,935	8
1180	Accounts receivable - related parties (Notes 4, 22, and 30)	61,025	1	229,905	3
1200	Other receivables (Notes 4 and 10)	209,574	2	13,771	-
1210	Other receivables - related parties (Note 4 and 30)	214,723	3	278,809	3
1220	Current income tax assets (Notes 4 and 24)	14,447	-	13,289	-
130X	Inventories (Notes 4 and 11)	506,374	6	799,252	10
1410	Prepayments (Note 15)	42,762	-	60,485	1
1470	Other current assets (Notes 4, 15 and 31)	63,660	1	67,839	1
11XX	Total current assets	2,756,004	34	3,254,188	39
Non-Current Assets
1517	Financial assets at fair value through other comprehensive income - current (Notes 4 and 8)	181,032	2	-	-
1550	Investment by equity method (Notes 4 and 12)	4,037,917	49	3,798,308	46
1600	Property, plant and equipment (Notes 4, 13 and 31)	1,082,759	13	1,147,302	14
1755	Right-of-use assets (Notes 4 and 14)	42,450	1	51,040	1
1780	Intangible assets (Note 4)	4,707	-	2,831	-
1840	Deferred income tax assets (Note 4 and 24)	45,519	1	40,398	-
1975	Net defined benefit assets - non-current (Note 4 and 20)	5,739	-	4,886	-
1990	Other non-current assets (Notes 4 and 15)	35,365	-	7,225	-
15XX	Non-current assets	5,435,488	66	5,051,990	61
1XXX	Total assets	$ 8,191,492	100	$ 8,306,178	100
Liabilities and equity
Current liabilities
2100	Short-term borrowings (Notes 16 and 31)	$ 1,700,427	21	$ 1,709,952	21
2110	Short-term notes payable (Note 16)	-	-	358,644	4
2150	Accounts and notes payables (Note 18)	584,622	7	866,389	11
2180	Accounts payable - related parties (Note 30)	3,998	-	105,103	1
2200	Other payables (Note 19)	160,442	2	267,117	3
2220	Other payables - related parties (Note 30)	27,152	-	39,079	1
2230	Current income tax liabilities (Note 4 and 24)	9,260	-	-	-
2280	Lease liabilities - current (Notes 4 and 14)	4,791	-	8,669	-
2320	Long-term borrowings and bonds payable due within one year (Notes 4, 16, 17, and 31)	158,693	2	309,760	4
2399	Other current liabilities (Note 19)	2,043	-	28,421	-
21XX	Total current liabilities	2,651,428	32	3,693,134	45
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 17)	283,893	3	275,611	3
2540	Long-term borrowings (Notes 16 and 31)	1,618,285	20	762,434	9
2570	Deferred income tax liabilities (Note 4 and 24)	14,490	-	12,020	-
2580	Lease liabilities - non-current (Notes 4 and 14)	38,635	1	42,782	1
2645	Guarantee deposits received	850	-	850	-
25XX	Non-total current liabilities	1,962,783	24	1,096,157	13
2XXX	Total liabilities	4,614,211	56	4,789,291	58
Equity (Notes 4, 17, 21 and 26)
Share capital
3110	Common shares	1,212,284	15	1,151,590	14
3200	Stock dividends from	1,725,054	21	1,593,750	19
Retained earnings
3310	Legal reserve	170,592	2	143,346	2
3320	Special reserve	98,088	1	193,466	2
3350	Undistributed earnings	469,362	6	532,823	6
3300	Total retained earnings	738,042	9	869,635	10
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	44	3,516,887	42
Total liabilities and equity		$ 8,191,492	100	$ 8,306,178	100

The accompanying notes are a part of the parent only company financial report.

Charron: LuMe-Shu
Minger: LuMe-Shu
Chet Accounting Other: Li Yun-Chen

Laster Tech Co., Ltd.
Parent Company Only Comprehensive Income Statement
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, 22, and 30)	$ 2,082,894	100	$ 2,780,667	100
5000	Operating costs (Notes 4, 11, 23 and 30)	1,923,180	92	2,538,071	91
5900	Operating margin	159,714	8	242,596	9
5910	Realized sales gain	2,062	-	7,315	-
5950	Realized operating profit margin	161,776	8	249,911	9
	Operating expenses (Notes 4, 23, 26 and 30)
6100	Selling and marketing expenses	63,306	3	153,492	5
6200	General and administrative expenses	117,054	6	136,066	5
6300	Research and development expenses	12,810	-	27,046	1
6000	Total operating expenses	193,170	9	316,604	11
6500	Other income and expenses, net	2	-	-	-
6900	Net operating loss	( 31,392 )	( 1 )	( 66,693 )	( 2 )
	Non-operating income and expenses (Notes 4, 22 and 30)
7100	Interest income	18,925	1	7,619	-
7010	Other income	10,122	-	8,796	1
7020	Other gains and losses	9,542	-	57,939	2
7050	Financial costs	( 92,083 )	( 4 )	( 76,293 )	( 3 )
7070	Share of profit of subsidiaries accounted for using the equity method	99,484	5	366,970	13
7000	Total non-operating income and expenses	45,990	2	365,031	13
7900	Net Income before tax	14,598	1	298,338	11
7950	Income tax expenses (Notes 4 and 24)	( 1,424 )	-	( 26,981 )	( 1 )
8200	Net profit for the year	13,174	1	271,357	10

Code		2025		2024
		Amount	%	Amount	%
	Other comprehensive income
	Items not reclassified
	subsequently to profit or loss:
8311	Remeasurement of defined benefit plan (Notes 4 and 20)	$ 780	-	$ 1,378	-
8349	Income taxes related to items that will not be reclassified
	subsequently to profit or loss (Notes and 24)	(156)	-	(276)	-
8310		624	-	1,102	-
	Items possibly recategorized to profits and losses later:
8361	Currency translation difference (Note 4)	24,927	1	119,222	4
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 to profit or loss (Notes 4 and 24)	(5,029)	-	(23,844)	(1)
8360		20,111	1	95,378	3
8300	Other comprehensive income for the year (net after tax)	20,735	1	96,480	3
8500	Total comprehensive income for the year	$ 33,909	2	$ 367,837	13
	Earnings per share (Note 25)
9710	Basic	$ 0.11		$ 2.36
9810	Diluted	$ 0.11		$ 2.16

The accompanying notes are a part of the parent only company financial report.

Chairman: Liu Mei-Shiu

Manager: Liu Mei-Shiu

Chief Accounting Officer: Li Yun-Chen

Laster Tech Co., Ltd.
Parent Company Only Statement of Changes in Shareholders Equity
For the Years then Ended December 31, 2025 and 2024
Unit: NT$ thousand

Code	Common shares	Share capital			Retained earnings					Other interests
		Bond conversion entitlement certificates	Total	Stock dividends from	Legal reserve	Special reserve	Undistributed earnings	Total	Difference in exchange from the conversion of financial statements of overseas operating entities	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)	($193,466)	$3,283,144
2023 Appropriation and distribution of retained earnings
B1	Legal reserve	-	-	-	-	31,094	-	(31,094)	-	-	-	-	-
B3	Special reserve	-	-	-	-	-	48,941	(48,941)	-	-	-	-	-
B5	Shareholders' cash dividends	-	-	-	-	-	-	(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 options	-	-	-	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
2024 Appropriation and distribution of retained earnings
B1	Legal reserve	-	-	-	-	27,246	-	(27,246)	-	-	-	-	-
B5	Special reserve	-	-	-	-	-	(95,378)	95,378	-	-	-	-	-
B17	Shareholders' cash dividends	-	-	-	-	-	-	(145,391)	(145,391)	-	-	-	(145,391)
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 parent only company financial report.

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

Laster Tech Co., Ltd.
Parent Company Only Statement of Cash Flows
For the Years then Ended December 31, 2025 and 2024

Code	Cash flows from operating activities	2025	2024
A10000	Net income before tax this year	$ 14,598	$ 298,338
A20010	Income and expenses items:
A20100	Depreciation expenses	89,926	83,812
A20200	Amortization expenses	2,409	2,017
A20400	Net benefits of financial assets and liabilities measured at fair value through the income	( 25,098 )	( 5,598 )
A20900	Financial costs	92,083	76,293
A21200	Interest income	( 18,925 )	( 7,619 )
A21300	Dividend income	( 7,020 )	( 847 )
A21900	Employee stock options -based compensation costs	-	2,811
A23100	Gain on disposal of investments	( 8,158 )	-
A22400	Share of profit of subsidiaries accounted for using the equity method	( 99,484 )	( 366,970 )
A22500	Losses from the disposal of property, plant and equipment	-	117
A23700	Loss on scrapped inventories	7,377	15,360
A23800	Loss on inventory valuation decline and obsolescence (reversal gain)	482	( 18,576 )
A23900	Realized sales gain	( 2,062 )	( 7,315 )
A24100	Unrealized foreign currency conversion gain, net	( 25,172 )	( 7,364 )
A24200	Loss on redemption of corporate bonds	-	161
A29900	Profit from lease modification	( 2 )	-
	Net change in operating assets and liabilities
A31150	Accounts receivable	507,374	( 330,892 )
A31160	Accounts receivable - Related parties	175,656	93,797
A31180	Other receivables	( 172,644 )	15,300
A31190	Other receivables - related parties	64,086	31,937
A31200	Inventory	285,019	( 101,501 )
A31230	Prepayments	17,723	18,426
A31240	Other current assets	2,253	( 61 )
A31990	Net defined benefit assets	( 73 )	( 43 )
A32130	Notes and payable	( 286,357 )	148,332
A32160	Accounts payable - Related parties	( 100,751 )	50,639
A32180	Other payables	( 123,745 )	56,907
A32190	Other payables - related parties	( 11,927 )	6,156
A32230	Other current liabilities	( 26,378 )	24,076
A33000	Cash generated from operations	351,190	77,693
A33100	Interest received	14,902	7,619
A33300	Interest paid	( 82,149 )	( 72,357 )
A33500	Income tax paid	( 1,158 )	( 13,057 )
AAAA	Net cash inflow (outflow) from operating activities	282,785	( 102 )

Unit: NT$ thousand
- 11 -

Code		2025	2024
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	( 242,071)	-
B00050	Financial assets measured at after-amortization cost at maturity	245,361	4,779
B00100	Acquisition of financial assets at fair value through profit or loss	( 509,610)	( 18,736)
B00200	Disposal of financial assets at fair value through profit or loss	86,823	22,059
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	( 15,494)	( 86,625)
B03700	Decrease (increase) in refundable deposits	1,559	( 719)
B04500	Acquisition of intangible assets	( 4,285)	( 3,064)
B05900	Repayment of borrowings from related parties	-	74,304
B06500	Increase in other financial assets	( 29,619)	( 20,503)
B06600	Decrease in other financial assets	31,545	-
B06700	Increase in prepayment for equipment	( 33,051)	( 3,352)
B07600	Receipt of dividends from subsidiaries	118	339
B09900	Receipt of other dividends	7,020	847
BBBB	Net cash outflow from investment activities	( 637,458)	( 28,839)
Cash flows from financing activities
C00100	Increase (decrease) in short-term borrowings	( 9,525)	319,096
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	( 8,579)	( 8,952)
C04500	Dividends paid	( 145,391)	( 172,479)
C04600	Cash Capital Increase	189,000	-
C04900	Cost of treasury shares repurchased	( 20,122)	-
C05400	Acquisition of stock options in subsidiaries	( 113,254)	-
CCCC	Net cash inflow from financing activities	259,294	541,882
EEEE	Increase (decrease) in cash and cash equivalents	( 95,379)	512,941
E00100	Balance of cash and cash equivalents at the beginning of the year	1,050,391	537,450
E00200	Balance of cash and cash equivalents at the end of the year	$ 955,012	$ 1,050,391

The accompanying notes are a part of the parent only company financial report.

Chairman: Liu Mei-Shiu

Manager: Liu Mei-Shiu

Chief Accounting Officer: Li Yun-Chen

Laster Tech Co., Ltd.
Notes to Parent Company Only Financial Statements
For the Years then Ended 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 parent company only financial report is the functional currency of the Company, “NTD”.

II. The Authorization of Parent Company Only Financial Statements

The parent company only 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 Group expected no material changes to the accounting policies of the Company after adopting the amended IFRS Accounting Standards approved and released by the FSC.

(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)
Application guidance amendments related to the derecognition of financial liabilities under the 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 January 01, 2023 amendments in 2020 and 2021)

As of the date of authorization for issuance of these parent company only financial statements, the Company has assessed that the amendments to the various standards and interpretations will not have a material impact on its parent company only financial position and parent company only 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”

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

The Company 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.

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 Company 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 Company shall label such items as “other” only when a more informative description cannot be identified.
Enhancing disclosures of management-defined performance measures: when the Company communicates publicly outside the financial statements, or conveys management’s view of a particular aspect of the Company’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 Company 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 Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If the Company 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 parent company only financial statements, the Company assessed the other effects of the amendments to each standards and interpretation on the parent company only financial position and parent company only financial performance on a continuous basis. The relevant effects would be disclosed after the assessment.

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IV. Summary of Significant Accounting Policies

(I) Statement of compliance

The parent company only financial statements were compiled in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(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 parent company only 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.

When preparing company only financial statements, the Company uses the equity method to account for its investment in subsidiaries. To align the profit or loss, other comprehensive income and equity of the year in the parent company only financial statements with the profit or loss, other comprehensive income and equity of the year attributable to the owner of the Company in the parent company only financial statements, the differences between the accounting treatments under the separate and consolidated bases were treated through adjustment of related equity items, including "investment under the equity method", "share of profit/loss of subsidiaries, associates and joint ventures under the equity method", "share of other comprehensive income of subsidiaries, associates, and joint ventures".

(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).
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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.

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 Company's equity instruments, such terms do not affect the classification of the liability as current or non-current, provided that the Company classifies the option as an equity instrument.

(IV) Foreign currency

During preparation of the parent company only financial statements, transactions using currencies other than the parent company only 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, 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 preparation of the parent company only financial statements, the assets and liabilities of 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

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average exchange rate of the period, and the exchange differences resulting therefrom were recognized in other comprehensive income.

If the Company disposes of all interests in a foreign operation, or disposes of a part of the interests of a subsidiary of a foreign operation and loses control, and the retained interests are financial assets, they shall be treated in accordance with the accounting policy for financial instruments. The accumulated exchange differences related to the foreign operation shall be reclassified to profit or loss.

If the partial disposal of a foreign operation's subsidiary does not result in a loss of control, the accumulated exchange difference shall not be recognized in profit or loss on a pro rata basis. 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.

(V) Inventory

Inventories include raw materials, finished goods, work-in-progress, and merchandise. 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 completed work and the estimated cost needed to complete the sale. The weighted average method is used to calculate the inventory cost.

(VI) Investment subsidiary

The Company accounts for its investment in subsidiaries using the equity method.

A subsidiary is an entity over which the Company has control.

Under the equity method, an investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the Company's share of the profit or loss of the subsidiary after the date of acquisition and other comprehensive income or loss and profit distribution. In addition, changes in the Company's other interests in subsidiaries are recognized in proportion to the shareholding.

Changes to the Company's equity ownership in the subsidiaries are treated as equity transactions if the changes do not result in loss of control. The difference between the carrying amount of investments and the fair value of any paid or received consideration is directly recognized as equity.

When the Company's share of losses on a subsidiary equals or exceeds its equity in the subsidiary (including the carrying amount of the subsidiary under the equity

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method and other long-term interests that in substance form part of the Company's net investment in the subsidiary), the Company continues to recognize the losses based on the shareholding ratio.

The excess of the acquisition cost in excess of the Company's share of the net fair value of the subsidiaries' identifiable assets and liabilities that constitute a business on the date of acquisition is recognized as goodwill. The goodwill is included in the carrying amount of the investment and shall not be amortized. The excess of the share of net identifiable assets and liabilities net fair value of the subsidiaries constituting the business on the date of acquisition is recognized as the current income.

The Company assesses impairment by considering the cash-generating units as a whole in the financial statements and comparing their recoverable amounts with their carrying amounts. If the recoverable amount of an asset increases in a subsequent period, the reversal of the impairment loss is recognized as a gain, provided that the carrying amount of the asset after the reversal of the impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset, less amortization. Reversal of an impairment loss for goodwill in a subsequent period is prohibited

When the Company loses control over a subsidiary, its remaining investment in the above subsidiary is measured at the fair value on the date when the control is lost. The fair value of the remaining investment and the difference between any disposal price and the carrying amount of the investment on the date when the control is lost are included in profit or loss for the period. In addition, the Company accounts for all amounts recognized in other comprehensive income or loss related to the subsidiary on the amounts in other comprehensive income are according to the same accounting treatment basis as the direct disposal of the related assets or liabilities.

Unrealized gains or losses from downstream transactions with subsidiaries are eliminated in the parent company only financial statements. Gains or losses arising from upstream and side-stream transactions with subsidiaries are recognized in the parent company only financial statements only to the extent that they are not related to the Company's interest in the subsidiary.

(VII) Property, plant and equipment

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.

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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 Company 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 Company 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 Company 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 amount of the asset is estimated. When the recoverable amount of individual assets cannot be estimated, the Company estimates the recoverable amount

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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 liabilities are recognized in the consolidated balance sheet when the Company 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

The financial assets held by the Company 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.

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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.

The financial assets at fair value through profit or loss are measured at fair value. Their dividends and interests generated therefrom are recognized in other income and interest income, respectively. The gains or losses arising from the remeasurement are recognized in other gains and losses. For the determination of fair value, please refer to Note 29.

B. Financial assets measured at after-amortization cost

When the Company’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, accounts receivable (including related parties), other receivables (including related parties), 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.

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

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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.

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

Debt instrument investments held by the Company 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, 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

The Company assesses impairment losses on financial assets (including accounts receivable) measured at amortized cost on the basis of expected credit losses at each balance sheet date.

Allowances for losses on accounts receivable 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

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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 Company, 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 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 Company 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.

Equity instruments

The debt and equity instruments issued by the Company are classified as financial liabilities or equity based on the definition of real and financial

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liabilities as well as equity instruments under the terms and conditions of the contracts.

The equity instruments issued by the Company 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 or losses arising from remeasurement are recognized in other gains and losses.

For the determination of fair value, please refer to Note 29.

(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 Company 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.

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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 Company's own equity instruments; accordingly, it is classified as a derivative financial liability.

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 Company 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
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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 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.

2. Service revenue

The service revenue comes from the service of purchasing raw materials on behalf of others.

The Company provides services to purchase raw materials on behalf of subsidiaries. Before the inventories are transferred to subsidiaries, the Company does not acquire the control over the inventories and is not held responsible regarding whether the inventories will be accepted by the subsidiaries. In addition, before subsidiaries place their orders, the Company does not commit to purchasing inventories; therefore, there is no inventory risk. The Company provides raw material purchase services on behalf of others as an agent, and the net revenue is recognized after the control over the inventories is transferred to subsidiaries and there is no subsequent obligation.

(XII) Leases

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

1. The Company 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 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 Company's net investment outstanding in respect of leases.

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Under operating leases, lease payments, net of lease incentives, are recognized as income on a straight-line basis over the relevant lease term.

The Company 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 parent company only 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 (fixed payments). If the interest rate implicit in a lease could be readily determined, the lease payments were discounted at the interest 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 parent company only 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.

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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) 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.

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

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(XVI) Income tax

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

Income Tax of the current period

The Company 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 can be utilized.

Taxable temporary differences generated from investment in subsidiaries, associates and joint arrangements are recognized in deferred tax liabilities except where the Company 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 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 Company 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 Company 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 Company 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	$ 2,892	$ 2,449
Bank checks and demand deposits	948,796	1,027,942
Cash equivalents (investment with original maturity date of less than three months)
Bank time deposits	3,324	20,000
	$ 955,012	$ 1,050,391

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	0.005%~3.8%	0.001%~1.10%
Bank time deposits	3.8%	0.78%

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	31,789	-
TWSE (TPEx)-listed stocks	2,797	4,241
	$ 473,218	$ 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 Company invests in foreign bonds for medium- to long-term strategic purposes and expects to generate returns through long-term investment. Management of the Company 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 Company 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 Company 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 Company 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 Company assessed that no expected credit losses were recognized on the aforementioned debt instruments.

IX. Financial assets measured at after-amortization cost

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

As of December 31, 2024, the interest rate range of time deposits with original maturity date of over three months was 4.3%.

X. Accounts receivable and other receivables

	December 31, 2025	December 31, 2024
Accounts receivable
Measured at after-amortization cost
Total carrying amount	$ 215,209	$ 714,935
Less: Allowance for impairment loss	-	-
	$ 215,209	$ 714,935
Other receivables
Receivable for tariff subsidies	$ 192,921	$ -
Receivable from disposal of investments	9,588	-

Interest receivable	4,194	-
Sample fee receivable	2,747	12,978
Others	124	793
	$ 209,574	$ 13,771

Accounts receivable

The Company's average credit period for merchandise sales is 30 to 150 days, and no interest is accrued on accounts receivable. To mitigate credit risk, the Company'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 accounts receivable. In addition, the Company reviews the recoverable amounts of 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 accounts receivable. Accordingly, the management of the Company believes that the Company's credit risk has been significantly reduced.

Allowances for losses on accounts receivable on the basis of expected credit losses over the life of the receivables. 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 Company'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 accounts receivable.

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

The allowance for loss of accounts receivable measured by the Company 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	-	-	-	-	-	-
Total carrying amount	$ 215,209	$	$ -	$ -	$ -	$ 215,209
Allowance for losses (expected credit losses)	-	-	-	-	-	-
Cost after amortization	$ 215,209	$	$	$	$	$ 215,209

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	-	-	-	-	-	-
Total carrying amount	$ 714,935	$	$ -	$ -	$ -	$ 714,935
Allowance for losses (expected credit losses)	-	-	-	-	-	-
Cost after amortization	$ 714,935	$	$ -	$ -	$ -	$ 714,935

XI. Inventory

	December 31, 2025	December 31, 2024
Commodities	$ 2,322	$ 12,746
Finished goods	339,143	502,171
Work in process	20,566	41,398
Raw materials	144,343	242,937
	$ 506,374	$ 799,252

The nature of costs of sales is as follows:

	2025	2024
Cost of inventory sold	$ 1,834,431	$ 2,523,879
Loss on scrapped inventories	7,377	15,360
Loss (gain from price recovery) for market price decline and obsolete and slow-moving inventories	482	( 18,576 )
Inventory surplus	( 487 )	-
Unallocated fixed manufacturing expenses	81,377	17,408
	$ 1,923,180	$ 2,538,071

The reversal of inventory net realizable value in 2024 was attributable to an increase in the selling prices of the inventories.

XII. Investment by equity method

Investment subsidiary

	December 31, 2025	December 31, 2024
Laster International (Samoa) Co., Ltd. (Laster International) (Note 1)	$ 3,930,552	$ 3,765,745
LASTER TECH AUTOMOTIVE MEXICO INC, S.A. DE C.V. (Note 2)	45,270	-
Windlux International Co., Ltd. (Windlux)	31,470	31,648

Laster Tech Automotive
(America) Incorporated (Note 3)
Happy Power Corp.
29,341
1,284
$ 4,037,917
-
915
$ 3,798,308

Investee	Ownership interest and percentage of voting rights
	December 31, 2025	December 31, 2024
Laster International	100%	100%
LASTER TECH AUTOMOTIVE MEXICO INC, S.A. DE C.V.	100%	-
Windlux International Co., Ltd.	100%	100%
Laster Tech Automotive (America) Incorporated	100%	-
Happy Power Corp.	100%	100%

Note 1: On November 7, 2025, the Company’s Board of Directors approved a capital increase of USD 634 thousand for Laster International.

Note 2: 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.

Note 3: To meet market demand, the Company completed the registration and establishment of Laster Tech Automotive (America) Incorporated on January 2, 2025.

For the breakdown of the subsidiaries the Company indirectly invests in, please see Tables 6 and 7.

XIII. Property, plant and equipment

| Self-use | December 31, 2025
$ 1,082,759 | December 31, 2024
$ 1,147,302 |
| --- | --- | --- |

Self-use

	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	$ 183,362	$ 396,600	$ 4,914	$ 11,524	$ 35,998	$ 2,090	$ 1,346,408
Addition	-	4,112	2,239		839	3,952	1,743	12,885
Transferred from prepaid equipment	-	-	3,043	-	309	-	-	3,352
Disposal	-	-	( 40)	-	-	-	-	( 40)
Balance on December 31, 2025	$ 711,920	$ 187,474	$ 401,842	$ 4,914	$ 12,672	$ 39,950	$ 3,833	$ 1,362,605
Cumulative depreciation and impairment
Balance on January 1, 2025	$ -	$ 52,244	$ 125,650	$ 2,879	$ -	$ 18,333	$ -	$ 199,106
Depreciation expenses	-	18,518	53,236	1,628	1,259	6,139	-	80,780
Disposal	-	-	( 40)	-	-	-	-	( 40)
Balance on December 31, 2025	$ -	$ 70,762	$ 178,846	$ 4,507	$ 1,259	$ 24,472	$ -	$ 279,846

37 -

Net as of December 31, 2025	$ 711,920	$ 116,712	$ 222,996	$ 407	$ 11,413	$ 15,478	$ 3,833	$ 1,082,759
Cost
Balance on January 1, 2024	$ 711,920	$ 182,871	$ 321,895	$ 3,628	$ 1,060	$ 25,587	$ 9,964	$ 1,256,925
Addition	-	491	23,761	1,374	11,524	3,327	46	40,523
Disposal	-	-	-	( 560)	( 1,060)	( 836)	-	( 2,456)
Transferred from prepaid equipment	-	-	50,944	472	-	-	-	51,416
Reclassification	-	-	-	-	-	7,920	( 7,920)	-
Balance on December 31, 2024	$ 711,920	$ 183,362	$ 396,600	$ 4,914	$ 11,524	$ 35,998	$ 2,090	$ 1,346,408
Cumulative depreciation and impairment
Balance on January 1, 2024	$ -	$ 33,938	$ 76,980	$ 2,160	$ 856	$ 12,970	$ -	$ 126,904
Depreciation expenses	-	18,306	48,670	1,279	112	6,174	-	74,541
Disposal	-	-	-	( 560)	( 968)	( 811)	-	( 2,339)
Reclassification	-	-	-	-	-	-	-	-
Balance on December 31, 2024	$ -	$ 52,244	$ 125,650	$ 2,879	$ -	$ 18,333	$ -	$ 199,106
Net mount on December 31, 2024	$ 711,920	$ 131,118	$ 270,950	$ 2,035	$ 11,524	$ 17,665	$ 2,090	$ 1,147,302

No impairment loss was recognized or reversed in 2023 and 2022.

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 years
Lease improvements	10 years
Other equipment	2 to 15 years

For the amount of property, plant and equipment pledged for borrowings, please refer to Note 31.

XIV. Lease agreement

(I) Right-of-use assets

	December 31, 2025	December 31, 2024
Carrying amount of right-of-use assets
Building	$ 41,540	$ 50,436
Transportation equipment	910	604
	$ 42,450	$ 51,040
	2025	2024
Increase in right-of-use assets	$ 932	$ 48,104
Depreciation expense on right-of-use assets
Building	$ 8,520	$ 8,647
Transportation equipment	626	624

$ 9,146
$ 9,271

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$ 4,791	$ 8,669
Non-current	$ 38,635	$ 42,782

The discount rate range for lease liabilities is as follows:

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

(III) Important lease activities and terms

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

The Company leases several transportation equipment for the use by employees for operations for a period of 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	$ 5,272	$ 5,261
Total cash (outflow) from leases	($ 24,220)	($ 14,555)

The Company 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.

XV. Other assets

	December 31, 2025	December 31, 2024
Current
Prepayments
Prepayment of expenses	$ 28,651	$ 23,215
Input tax and tax overpaid	14,111	37,270
	$ 42,762	$ 60,485
	December 31, 2025	December 31, 2024
Other assets

39 -

Other financial assets (Note 31)
Payment on behalf of others
Temporary payment
$ 61,158
2,162
340
$ 63,660
$ 63,084
4,754
1
$ 67,839

Non-current
Other non-current assets
Prepayment of equipment
Refundable deposits
$ 33,051
2,314
$ 35,365
$ 3,352
3,873
$ 7,225

XVI. Borrowings

(I) Short-term borrowings

Guaranteed loans (Note 31)
Bank borrowings (1)
Unsecured loans
Credit limit borrowings (2)
December 31, 2025
$ 524,023
1,176,404
$ 1,700,427
December 31, 2024
$ 435,723
1,274,229
$ 1,709,952

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

Commercial paper payable
Less: Discount on commercial paper payable
Short-term notes payable
December 31, 2024
$ 360,000
( 1,356 )
$ 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 collaterals	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 31)
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)
Long-term borrowings	$ 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, buildings, machinery and equipment 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.

XVII. 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 | - |
| Bonds payable | $ 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.

41 -

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

42 -

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
Liability components on December 31, 2025	$ 283,893

XVIII. Accounts payable

	December 31, 2025	December 31, 2024
Notes payable
Not occurred due to business	$ 6,136	$ -
Accounts payable	578,486	866,389
	$ 584,622	$ 866,389

The average credit period for the Company's inventory purchased is 30 to 90 days. The Company has formulated a financial risk management policy to ensure that all accounts payable are repaid within the prearranged credit period.

XIX. Other liabilities

	December 31, 2025	December 31, 2024
Current
Other payables
Payables for purchase on behalf of others	$ 60,359	$ 112,973
Salary and bonus payable	42,550	65,343
Accrued unused leave pay	6,348	8,168
Freight payable	4,725	22,793
Equipment payment payable	$ 1,620	$ 4,229
Employee remuneration payable	776	15,869

44 -

Director	remuneration
payable	466	3,174
Others	43,598	34,568
	$ 160,442	$ 267,117
Other current liabilities
Collection on behalf of others	$ 1,825	$ 1,594
Temporary collection	218	26,827
	$ 2,043	$ 28,421

XX. Post-employment benefits

(I) Defined allocation plan

The pension system under the “Labor Pension Act” adopted by the Company 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.

(II) Defined benefit plan

The pension plan adopted by the Company 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 Company does not have the right to influence the investment management strategies.

The amounts of the defined benefit plan included in the parent company only 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:

45 -

	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)
—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 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 Company'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 Company's present value of the defined benefit obligation 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.

46 -

47 -

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

XXI. 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)	121,228	115,159
Issued share capital	$1,212,283	$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 23 (7) 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

48 -

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.

An annual general meeting was held on June 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 Company's 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.

The Company's 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
Number of shares as of December 31, 2025
750
750

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

XXII. Revenue

	2025	2024
Revenue from customer contracts
Revenue from merchandise sales	$ 2,068,978	$ 2,728,766
Service revenue	13,916	51,901
	$ 2,082,894	$ 2,780,667

(I) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Accounts receivable (Note 10)	$ 215,209	$ 714,935	$ 340,703
Accounts receivable - related parties (Note 30)	$ 61,025	$ 229,905	$ 316,055

(II) Details of revenue from customer contracts

2025

	Vehicle lamp controller	LED chips	LED lighting fixtures	LED components	Components	Total
Type of merchandise Revenue from merchandise sales	$ 2,016,799	$ 15,692	$ 4,084	$ 294	$ 32,109	$ 2,068,978

2024

	Vehicle lamp controller	LED chips	LED lighting fixtures	LED components	Components	Total
Type of merchandise Revenue from merchandise sales	$ 2,673,140	$ 28,328	$ 2,451	$ 388	$ 24,459	$ 2,728,766

XXIII. Net profit

(I) Interest income

	2025	2024
Bank deposits	$ 14,293	$ 7,619
Interest income on bonds	4,145	-
Interest income from repurchase agreements	487	-
	$ 18,925	$ 7,619

51 -

(II) Other income

	2025	2024
Dividend income	$ 7,020	$ 847
Lease income	1,722	1,714
Government subsidy revenue	-	3,102
Others	1,380	3,134
	$ 10,122	$ 8,796

(III) Other gains and losses

	2025	2024
Gains (losses) on financial assets and financial liabilities
Mandatory financial assets measured at fair value through income	$ 29,268	$ 6,292
Financial liabilities held for trading	( 4,170)	( 694)
Gains (losses) from disposal of financial assets
Financial assets at FVTPL	8,542	-
Debt instrument investments at fair value through other comprehensive income	( 384)	-
Net foreign exchange (losses) gains	( 23,714)	52,636
Losses from the disposal of property, plant and equipment	-	( 117)
Loss on redemption of corporate bonds (other losses)	-	( 161)
Others	-	( 17)
	$ 9,542	$ 57,939

(IV) Financial costs

	2025	2024
Interest on bank loans	$ 73,345	$ 65,727
Interest on convertible corporate bonds	9,099	3,936
Interest on short-term notes payable	8,402	6,274
Interest on lease liabilities	1,223	342
Other interest expenses	14	14
	$ 92,083	$ 76,293

(V) Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 80,780	$ 74,541
Right-of-use assets	9,146	9,271
Intangible assets	2,409	2,017
	$ 92,335	$ 85,829
Summary of depreciation expenses by function
Operating costs	$ 81,364	$ 78,535
Operating expenses	8,562	5,277
	$ 89,926	$ 83,812
Summary of amortization expenses by function
Operating costs	$ 580	$ 647
Selling and marketing expenses	98	85
General and administrative expenses	1,670	959
Research and development expenses	61	326
	$ 2,409	$ 2,017
(VI) Employee benefits expense
	2025	2024
Post-employment benefits
Defined allocation plan	$ 8,116	$ 7,988
Defined benefit plan (Note 20)	(73)	(43)
	8,043	7,945
Share-based payment
Settlement of interests
(Note 26)	-	2,811
Other employee benefit	191,710	250,051
Total employee benefit expenses	$ 199,753	$ 260,807
Summarized by function
Operating costs	$ 98,398	$ 129,569
Operating expenses	101,355	131,238
	$ 199,753	$ 260,807

(VII) 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 parent company only financial report, 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 parent company only 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".

(VIII) Foreign currency exchange gains and losses

	2025	2024
Total foreign currency exchange gain	$ 121,143	$ 105,079
Total foreign currency exchange (loss)	( 144,857 )	( 52,443 )
Net (losses) gains	( $ 23,714 )	$ 52,636

XXIV. 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

	2025	2024
Additional tax on undistributed earnings	($ 9,260)	$ -
Deferred tax
Generated this year	7,836	( 26,981)
Income tax expense recognized in profit or loss	($ 1,424)	($ 26,981)

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

	2025	2024
Net Income before tax	$ 14,598	$ 298,338
Calculation of income tax expense on net income before tax at statutory tax rate	($ 2,920)	($ 59,668)
Expense and loss not deductible from tax	( 12,325)	( 21,722)
Non-taxable income	5,675	1,643
Additional tax on undistributed earnings	( 9,260)	-
Unrecognized loss carryforwards	( 2,503)	( 20,623)
Effect of deferred tax on subsidiary earnings	19,909	73,368
Others	-	21
Income tax expense recognized in profit or loss	($ 1,424)	($ 26,981)

(II) Income tax directly recognized in equity

	2024
Deferred tax
Equity components of convertible bonds	$ 21
Income tax gains directly recognized in equity	$ 21

(III) Income tax recognized in other comprehensive income

	2025	2024
Deferred tax
Generated this year
—Difference in exchange from the conversion of financial statements of overseas operating entities	($ 4,986)	($ 23,844)

	2025	2024
– Remeasured value of defined benefit plan	( 156 )	( 276 )
– Unrealized gains or losses on financial assets measured at fair value through other comprehensive income	( 43 )	-
	( 5,185 )	( 24,120 )
Income tax expenses recognized in other comprehensive income	($ 5,185)	($ 24,120)

(IV) Income tax assets for the period

	December 31, 2025	December 31, 2024
Income tax assets for the period Tax refund receivable	$ 14,447	$ 13,289
Current tax liabilities Income tax payable	$ 9,260	$ -

(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	Recognized in other comprehensive income	Closing balance
Temporary differences
Currency translation difference	$ 18,771	$ -	($ 4,986)	$ 13,785
Provision for loss on value decline of inventory	11,038	97	-	11,135
Others	2,955	1,573	-	4,528
	32,764	1,670	( 4,986)	29,448
Loss carryforwards	7,634	8,437	-	16,071
	$ 40,398	$ 10,107	($ 4,986)	$ 45,519
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
Defined benefit retirement plan	977	14	156	1,147

Unrealized losses (gains) recognized through other comprehensive income

-	-	43	43
$ 12,020	$ 2,271	$ 199	$ 14,490

2024

	Opening balance	Recognized as income	Recognized in other comprehensive income	Recognized directly in equity	Closing balance
Deferred tax assets
Temporary differences
Provision for loss on value decline of inventory	$ 14,754	($ 3,716)	$ -	$ -	$ 11,038
Currency translation difference	42,615	-	( 23,844)	-	18,771
Others	5,871	( 2,895)	-	( 21)	2,955
	63,240	( 6,611)	( 23,844)	( 21)	32,764
Loss carryforwards	23,660	( 16,026)	-	-	7,634
	$ 86,900	($ 22,637)	($ 23,844)	($ 21)	$ 40,398
Deferred tax liabilities
Temporary differences
Investment by equity method	$ 6,707	$ -	$ -	$ -	$ 6,707
Others	693	4,344	276	-	5,313
	$ 7,400	$ 4,344	$ 276	$ -	$ 12,020

(VI) Unused loss carryforwards for deferred tax assets not recognized in the parent company only 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	125,583	127,729
Expired in 2031	97,771	97,537
Expired in 2032	102,161	102,880
Expired in 2034	11,414	22,984
Expired in 2035	40,502	-
	$ 466,840	$ 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
135,941	2030

108,395
2031
113,956
2032
25,449
2034
55,182
2035
$ 547,193

(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.

XXV. Earnings per share

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

Net income for the period

	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 earnings per share used for calculating earnings per share	120,649	127,387

57 -

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.

XXVI. 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.

XXVII. Cash flow information

(I) Non-cash transactions

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

58 -

Non-cash transactions of fund raising activities the Company conducted in 2025 and 2024 are as follows:
In 2022, 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 2022, 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

	Non-cash changes
	January 1, 2025	Cash flow	Interest expenses	Equity component of conversion rights of convertible bonds	New lease	Lease modification	Cash flows from operating activities	December 31, 2025
Short-term borrowings	$ 1,709,952	($ 9,325)	$ -	$ -	$ -	$ -	$ -	$ 1,700,427
Short-term notes payable	358,644	( 360,000)	8,402	-	-	-	( 7,046)	-
Long-term borrowings (including those due within one year)	904,413	872,565	-	-	-	-	-	1,776,978
Bonds payable	443,392	( 145,400)	9,099	( 2,998)	-	-	( 20,200)	283,893
Lease liabilities	51,451	( 8,579)	1,223	-	932	( 378)	( 1,223)	43,426
Guarantee deposits received	- 850	-	-	-	-	-	-	850
	$ 3,468,702	($ 349,061)	$ 18,724	($ 2,998)	$ 932	($ 378)	($ 28,469)	$ 3,805,574

2024

	Non-cash changes
	January 1, 2024	Cash flow	Interest expenses	Loss on redemption of corporate bonds	Equity component of conversion rights of convertible bonds	Fair value adjustments	New lease	Foreign currency valuation loss
Short-term borrowings	$1,389,192	$319,096	$-	$-	$-	$-	$-	$( 1,664)
Long-term borrowings (including those due within one year)	891,905	12,508	-	-	-	-	-	-
Short-term notes payable	259,388	99,256	6,274	-	-	-	-	( 6,274)
Corporate bonds payable (including those due within one year)	184,052	292,453	3,936	161	( 35,595)	( 1,615)	-	-
Lease liabilities	12,299	( 8,952)	342	-	-	-	48,104	-
Guarantee deposits received	- 850	-	-	-	-	-	-	-
	$2,737,686	$714,361	$10,552	$161	($ 35,595)	($ 1,615)	$48,104	$( 6,616)

XXVIII. Capital risk management

The Company'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 Company may adjust the number of dividends paid to shareholders and issue new shares to reduce liabilities.

The capital structure of the Company is comprised of their net liabilities (e.g., loans and bonds less cash) and shareholders' equity (e.g., capital stock, capital surplus, retained earnings and other equity items).

The Company is not subject to other external capital requirements.

XXIX. Financial instrument

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

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

December 31, 2025

	Book value	Fair 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

	Book value	Fair 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	31,789	-	-	31,789
TWSE (TPEx)-listed stocks	2,797	-	-	2,797
	$ 473,218	$ -	$ -	$ 473,218
Financial liabilities at fair value through profit or loss
Put option on convertible bonds	$ -	$ 6,630	$ -	$ 6,630

December 31, 2024

60 -

61 -

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	$ 473,218	$ 22,222
Financial assets at fair value through other comprehensive income
Debt instrument investments	181,032	-
Financial assets measured at after-amortization cost (Note 1)	1,719,015	2,358,058
Financial liabilities
Measured at fair value through profit or loss
Held for trading	6,630	2,460
Measured at amortized cost (Note 2)	4,488,222	4,602,385

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

Note 2: The balance includes short-term borrowings, short-term notes payable, 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 Company’s main financial instruments include investments in equity and debt instruments, cash and cash equivalents, accounts receivable, accounts payable, corporate bonds payable, loans and lease liabilities. The Company’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 Company’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 Company 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 Company engages in foreign currency-denominated sales and import transactions, exposing the Company 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, please refer to Note 33.

Sensitivity analysis

The Company is primarily affected by exchange rate fluctuations in the USD and RMB.

The following table consists of details of an analysis of the Company’s sensitivity when the exchange rate of New Taiwan dollar (functional currency) increases and decreases by 1%. This 1% is the sensitivity ratio

62 -

used by the Company 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	($6,162)	(Note 1)	($1,075)	(Note 2)	($514)	(Note 3)
	2)	2)	3)	3)	3)	3)

Note 1: The profit or loss was mainly generated from the Company'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 Company'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 Company's Euro-denominated receivables, and payables which were outstanding on the balance sheet date and were not hedged against the cash-flow risk.

The Company's sensitivity to the USD exchange rate increased in the current year was mainly due to the increase in sales denominated in USD, resulting in an increase in bank deposits and receivables denominated in USD. The increase in sensitivity to RMB in the current year was due to the increase in sales denominated in RMB, resulting in an increase in receivables denominated in RMB. The decrease in sensitivity to Euro in the current year was due to the decrease in sales denominated in Euro, resulting in an increase in receivables denominated in Euro.

(2) Interest rate risk

The interest rate risk exposure occurs as the Company borrows funds at the floating rates at the same time. The Company pays attention to changes in market interest rates to manage interest rate risk.

The carrying amounts of the Company’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	$ 520,010	$ 497,654
- Financial liabilities	2,022,469	2,487,361
With cash flow interest rate risk
- Financial assets	490,945	614,632
- Financial liabilities	1,782,255	980,491

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 Company 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 Company in 2025 and 2024 will decrease by NT$12,913 thousand and NT$3,659 thousand, respectively.

The Company’s sensitivity to interest rates decreased during the current year, mainly due to an increase in variable-rate bank deposits and borrowings.

2. Credit risk

Credit risk refers to the risk of financial loss of the Company resulting from the counterparty’s default on contractual obligations. As of the balance sheet date, the Company’s maximum exposure to the credit risk of financial loss due to the

64 -

failure of counter-parties' obligation performance and financial guarantee provided by the Company was mainly due to the carrying amount of financial assets recognized in the parent company only balance sheet.

3. Liquidity risk

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

For the Company, bank loans are one of the important sources of liquidity. For the unused credit limits of the Company, 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 Company and the non-discounted cash flow of the financial liabilities (including the principal and estimated interest). Hence, the bank loan which the Company may be requested to repay immediately is listed in the earliest period on the table without consideration of the possibility of the bank exercising 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	$ 292,138	$ 199,146	$ 116,451	$ 18	$ -	$ -
Lease liabilities	503	1,007	1,497	2,859	5,717	37,097
Floating-rate instruments	14,321	49,921	42,916	99,302	218,178	1,529,217
Fixed-rate instruments	223,740	444,441	828,897	236,707	-	1,393
	$ 530,702	$ 694,515	$ 989,761	$ 338,886	$ 223,895	$ 1,567,707

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	$ 5,866	$ 22,417	$ 20,397	$ -	$ -
Floating-rate instruments	206,460	1,291,708	214,478	195,357	45,852
Fixed-rate instruments	1,733,785	1,393	-	-	-
	$ 1,946,111	$ 1,315,518	$ 234,875	$ 195,357	$ 45,852

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	$ 319,115	$ 537,513	$ 140,754	$ 3,160	$ -	$ -
Lease liabilities	998	1,996	2,839	4,049	5,668	42,221
Floating-rate instruments	43,039	59,173	70,011	65,467	152,881	743,265
Fixed-rate instruments	539,573	539,126	926,817	169,453	-	300,000
	$ 902,725	$ 1,137,808	$ 1,140,421	$ 242,129	$ 158,549	$ 1,085,486

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	$ 9,882	$ 21,961	$ 25,928	$ -	$ -
Floating-rate instruments	237,690	440,459	214,478	195,357	45,852
Fixed-rate instruments	2,174,969	300,000	-	-	-
	$ 2,422,541	$ 762,420	$ 240,406	$ 195,357	$ 45,852

(2) Credit limit

	December 31, 2025	December 31, 2024
Unsecured bank overdraft facilities
Amount
utilized	$ 1,326,404	$ 1,369,719
Amount
unutilized	1,364,171	816,965
	$ 2,690,575	$ 2,186,684
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

XXX. Related Party Transactions

In addition to those disclosed in other notes, the transactions between the Company and related parties are as follows.

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

Related Party Name	Relationship with the Company
Windlux International Co., Ltd.	Subsidiary
Laster Tech Automotive (Shanghai) Co., Ltd. (Laster Shanghai)	Subsidiary
Li San (Shanghai) International Trade Ltd. (Li San Shanghai)	Subsidiary
Laster Tech Electronics (Dongguan) Co., Ltd. (Laster Dongguan)	Subsidiary
Laster Tech (Thailand) Co., Ltd. (Laster Tech Thailand)	Subsidiary

(II) Operating revenue

Accounting items	Related party category/name	2025	2024
Sales revenue	Subsidiary
	Laster Shanghai	$ 46,393	$ 219,416
	Laster Dongguan	13,460	19,891
	Others	4,236	2,451
		$ 64,089	$ 241,758
Service revenue	Subsidiary
	Laster Shanghai	$ 13,835	$ 49,950
	Others	81	8
		$ 13,916	$ 49,958

The Company'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.

The price of the Company's services to related parties is negotiated based on the cost plus a fixed gross margin, and the collection conditions are equivalent to non-related parties.

(III) Purchases

Related party category/name	2025	2024
Subsidiary
Others	$ 13,906	$ 125,657

The Company's purchasing from related parties are negotiated based on product types with reference to market prices and other factors, and the payment conditions are equivalent to non-related parties.

(IV) Receivables from related parties

Accounting items	Related party category/name	December 31, 2025	December 31, 2024
Accounts receivable - Subsidiary Related parties
	Laster Shanghai	$ 55,631	$ 228,497
	Others	5,394	1,408
		$ 61,025	$ 229,905
Other receivables - Subsidiary related parties
	Laster Shanghai	$ 213,593	$ 272,647
	Others	1,130	6,162
		$ 214,723	$ 278,809

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.

The above-mentioned other receivables due from related parties refer to the payments made by the Company on behalf of its subsidiaries for purchases.

(V) Accounts payables from related parties

Accounting items	Related party category/name	December 31, 2025	December 31, 2024
Accounts payable - Subsidiary Related parties
	Li San Shanghai	$ 2,583	$ 743
	Laster Dongguan	803	645
	Laster Shanghai	612	103,715
		$ 3,998	$ 105,103
Other payables - Subsidiary related parties
	Windlux International Co., Ltd.	$ 26,902	$ 32,761
	Laster Shanghai	-	6,067
	Others	250	251
		$ 27,152	$ 39,079

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

(VI) Property, plant and equipment acquired

	Acquisition consideration
Related party category/name	2025	2024
Subsidiary
Laster Shanghai	$ 1,066	$ 8,680

(VII) Endorsements and guarantees

Endorsement/guarantee provided

Related party category/name December 31, 2025 December 31, 2024

Subsidiary

Laster Shanghai
Guaranteed amount $ 278,500 $ 179,120
Transaction Amounts 14,207 -
Laster Dongguan
Guaranteed amount 382,160 44,780
Transaction Amounts - -

(VIII) Other related party transactions

Accounting items	Related party category/name	2025	2024
Service expenses	Subsidiary Others	$ -	$ 239
Other expenses	Subsidiary Laster Tech Thailand Others	$ -	$ 65,435
		66	-
		$ 66	$ 65,435

(IX) Remuneration to key management

	2025	2024
Short-term employee benefits	$ 12,433	$ 17,213
Post-employment benefits	108	108
	$ 12,541	$ 17,321

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

XXXI. 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-current)
61,158
$ 872,647
63,084
$ 893,258

XXXII. Significant Contingent Liabilities and Unrecognized Commitments

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

Unrecognized contractual commitments

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment	$ 7,538	$ 106,497

XXXIII. 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 Company’s individual entities. The disclosed exchange rate represents the exchange rate of such foreign currency to the functional currency. Foreign currency assets and liabilities with significant effect are as follows:

December 31, 2025

	Foreign currency	Exchange rate	Book value
Foreign currency assets
Monetary item
USD	$ 51,545	31.43 (USD : NTD)	$ 1,620,059
RMB	26,172	4.496 (RMB : NTD)	117,669
Euro	2,304	36.90 (EUR : NTD)	85,018
Non-monetary items
Subsidiaries by equity method
RMB	874,171	4.496 (RMB : NTD)	3,930,552
Peso	25,898	1.748 (Peso : NTD)	45,270
USD	933	31.43 (USD : NTD)	29,341
Foreign currency liabilities
Monetary item
USD	$ 60,111	31.43 (USD:NTD)	$ 1,889,289

December 31, 2024

70 -

	Foreign currency	Exchange rate	Book value
Foreign currency assets
Monetary item
USD	$ 62,881	32.79 (USD : NTD)	$ 2,061,554
RMB	39,162	4.478 (RMB:NTD)	175,367
Non-monetary items
Subsidiaries by equity method
RMB	840,944	4.478 (RMB:NTD)	3,765,745
Foreign currency liabilities
Monetary item
USD	44,086	32.79 (USD : NTD)	1,445,360
RMB	14,159	4.478 (RMB:NTD)	63,404

The Company's foreign currency conversion gains (realized and unrealized) were NT$(23,714) thousand and NT$52,636 thousand in 2025 and 2024, respectively. Due to a wide variety of transactions in foreign currencies, the Group is unable to disclose the conversion gain or loss based on each foreign currency of material impact.

XXXIV. Additional Disclosures

(I) Information about significant transactions:

Loans to others: Table 1.
Endorsements/guarantees provided: Table 2.
Material marketable securities held at end of period (excluding the equity of investment in subsidiaries, associates, and joint ventures): 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.

(II) Information related to the investment business (excluding investee companies in Mainland China): Table 6.

(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, and investment income or

loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 7.

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.

72 -

Laster Tech Co., Ltd.

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	Amount of allowance for losses recognized	Collateral		Loans limits for individual entities	Total loan limit	Remark
													Name	Value
0	Laster Tech Co., Ltd.	Laster Tech 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	Laster Tech Electronics (Dongguan) Co., Ltd.	Laster Tech 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)	-
2	Laster Tech Opto (Shenzhen) Co., Ltd.	Laster Tech Automotive (Shanghai) Co., Ltd.	Other receivables - related parties	Yes	67,170	-	-	3.50%	(2)	-	Operational turnover	-	-	-	183,415 (Note 9)	183,415 (Note 9)	-
3	Li San (Shanghai) International Trade Ltd.	Laster Tech Automotive (Shanghai) Co., Ltd.	Other receivables - related parties	Yes	34,298	-	-	3.00%	(2)	-	Operational turnover	-	-	-	46,115 (Note 10)	46,115 (Note 10)	-
4	Laster Tech 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 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 aggregated amount of NT$276,618 thousand, which is the business dealings between the two parties during the 12-month period before the loan. A loan shall not exceed the total aggregate loan amount of NT$1,430,912 thousand (Note 4) 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%).

74 -

Laster Tech Co., Ltd.
Endorsement/guarantee provided
2025
Units: NT$ thousands, unless otherwise specified

Table 2

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.	Laster Tech 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.	Laster Tech 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	Laster Tech Electronics (Dongguan) Co., Ltd.	Laster Tech 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	Laster Tech Automotive (Shanghai) Co., Ltd.	Laster Tech 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, 2026 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.

76 -

Laster Tech Co., Ltd.
Statement of Significant 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	—
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	—

(To be Continued)

(Continued From Previous Page)

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
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 Bonds	—	Financial assets at FVTPL - Current	3,000,000	30,630		30,630	—
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	—

78 -

Laster Tech Co., Ltd.
Purchase or sale of goods with related parties is at least NT$100 million or 20% of the paid-in capital
2025

Units: NT$ thousands, unless otherwise specified

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)
Laster Tech 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%	—
Laster Tech 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.

79 -

Laster Tech Co., Ltd.
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	Turnover Rate	Overdue		Accounts receivable from related parties recovered after the period (Note)	Amount of allowance for losses recognized	Remark
					Amount	Actions Taken
Laster Tech Co., Ltd.	Laster Tech Automotive (Shanghai) Co., Ltd.	Sub-subsidiary	Accounts receivable	$ 55,631	0.33	$ -	Receipt of funds according to their capital status	$ -	$ -	-
			Other receivables	213,593		-	-	24,865	-	-
				$ 269,224		$ -		$ 24,865	$ -
Laster Tech 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	$ -	-
Laster Tech (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	$ -	-
			Other receivables - loaning of funds (see Table 1)	89,920		-	-	89,920	-	-
				$ 103,002		$ -		$ 101,799	$ -

Note: Amount recovered as of March 13, 2026.

2025
Units: NT$ thousands, unless otherwise specified

Table 6

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	$ 1,243,719	$ 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) Incorporated	USA	Manufacturing, assembly and sales of LED automotive lighting-related products	32,781	-	10,000	100%	29,341	(2,072)	(2,072)	Subsidiary
	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	89,150	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 (Note 2)	100% (Note 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	89,377	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.

2025
Units: NT$ thousands, unless otherwise specified

Table 7

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
Laster Tech 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	-	-
Laster Tech 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	$ 978,334	No investment amount limit
(Note 9)	(Note 9)	(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.

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.

83 -

TABLE OF CONTENTS FOR IMPORTANT ACCOUNT TITLES§

Item	Number/Index
Statement of Assets, Liabilities and Equity
Statement of Cash and Cash Equivalents	Subsidiary Ledger 1
Statement of Accounts Receivable	Subsidiary Ledger 2
Statement of Other Receivables	Note 10
Statement of Inventory	Subsidiary Ledger 3
Statement of Investments Accounted For Using the Equity Method	Subsidiary Ledger 4
Statement of Acquisition of Property, Plant and Equipment	Note 13
Statement of Deferred Tax Assets	Note 24
Statement of Short-Term Borrowings	Subsidiary Ledger 5
Statement of Accounts Payable	Subsidiary Ledger 6
Statement of Other Payable	Note 19
Statement of Bonds Payable	Note 17
Statement of Long-Term Borrowings	Subsidiary Ledger 7
Statement of Deferred Tax Liabilities	Note 24
Statements of Profit or Loss Items
Statement of Operating Revenue	Subsidiary Ledger 8
Statement of Operating Costs	Subsidiary Ledger 9
Statement of Operating Expenses	Subsidiary Ledger 10
Statement of Financial Costs	Note 23
Statement of Current Employee Benefits, Depreciation, Depletion, and Amortization Expenses by Function	Subsidiary Ledger 11

84 -

Laster Tech Co., Ltd.
Statement of Cash and Cash Equivalents
December 31, 2025

Subsidiary Ledger1
Units: NT$ thousands, unless otherwise specified

Item	Summary	Annual interest rate	Amount
Cash on hand and working capital			$ 2,892
Bank deposits
Bank check deposit			1,323
Bank demand deposit		0.005%~0.725%	292,589
		0.005%~0.725%
Bank foreign currency time deposits	Note	0.0003%~3.80%	654,884
			948,796
Cash equivalents (investment with original maturity date of less than three months)
Bank time deposits		3.8%	3,324
			$ 955,012

Note: Mainly include USD 18,166 thousand (exchange rate: 31.430), EUR 294 thousand (exchange rate: 36.900) and RMB 15,029 thousand (exchange rate: 4.496).

85 -

Laster Tech Co., Ltd.
Statement of Accounts Receivable
December 31, 2025

Subsidiary Ledger 2
Unit: NT$ thousand

Name of customer	Amount
Non-related Parties
A	$ 214,411
Others	798
	215,209
Less: Allowance for impairment loss	-
	$ 215,209

86 -

Laster Tech Co., Ltd.
Statement of Inventory
December 31, 2025

Subsidiary Ledger 3
Unit: NT$ thousand

Item	Amount
	Cost	Net realizable value
Commodities	$ 48,782	$ 134,855
Finished goods	342,842	352,944
Work in process	20,566	28,696
Raw materials	149,858	150,292
	562,048	$ 666,787
Less: Provision for loss on value decline of inventory	( 55,674 )
	$ 506,374

87 -

2025
Subsidiary Ledger 4
Unit: NT$ thousand

Investee company	Opening balance		Increase in the year		Decrease in the year		Closing balance			Guarantee or pledge	Remark
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Number of shares	Shareholding %	Amount
Unlisted company
Laster International (Samoa) Co., Ltd.	40,401,698	$ 3,765,745	2,000,000	$ 164,807	-	$ -	42,401,698	100	$ 3,930,552	—	Note 1
LASTER TECH AUTOMOTIVE MEXICO INC, S.A .DE. C.V.	-	-	3,000,000	64,818	-	( 19,548)	3,000,000	100	45,270	—	Note 2
Windlux International Co., Ltd.	3,000,000	31,648	-	-	-	( 178)	3,000,000	100	31,470	—	Note 3
Laster Tech Automotive (America) Incorporated	-	-	10,000	32,871	-	( 3,530)	10,000	100	29,341	—	Note 4
Happy Power Corp.	1,000,000	915	-	369	-	-	1,000,000	100	1,284	—	Note 5
		$ 3,798,308		$ 262,865		($ 23,256)			$ 4,037,917

Note 1: The increase for the current year consists of a cash capital increase of NT$19,368 thousand, share of profit recognized under the equity method of NT$120,849 thousand, translation adjustments of NT$22,528 thousand, and a net adjustment of NT$2,062 thousand for realized gains on downstream transactions during the year.
Note 2: The increase for the current year consists of a cash capital increase of NT$61,015 thousand and translation adjustments of NT$3,803 thousand; a share of loss of NT$19,548 thousand was recognized under the equity method.
Note 3: The decrease for the current year consists of a share of loss of NT$60 thousand recognized under the equity method and cash dividends received of NT$118 thousand.
Note 4: The increase for the current year consists of a cash capital increase of NT$32,871 thousand; the decrease for the current year consists of a share of loss of NT$2,072 thousand recognized under the equity method and translation adjustments of NT$1,458 thousand.
Note 5: The increase in the current year was based on the investment gains of NT$315 thousand recognized under the equity method and conversion adjustment of NT$54 thousand.

88 -

Subsidiary Ledger 5
Unit: NT$ thousand
Laster Tech Co., Ltd.
Statement of Short-Term Borrowings
December 31, 2025

Loan type and creditor	Closing balance	Contract term	Annual interest rate (%)	Credit limit	Guarantee or pledge	Remark
Secured loans (NT$)
First Commercial Bank, Zhonghe Branch	$ 50,000	December 2025 to February 2026	2.35	250,000	Note 1
First Commercial Bank, Zhonghe Branch	250,000	October 2025 to April 2026	2.43	2,385,000	Note 2
First Commercial Bank, Zhonghe Branch	40,000	November 2025 to April 2026	2.46	2,385,000	Note 2
First Commercial Bank, Zhonghe Branch	44,000	December 2025 to May 2026	2.46	2,385,000	Note 2
Cathay United Bank, Guanqian Branch	45,000	November 2025 to April 2026	2.52	96,275	Note 3
Bangkok Bank, Taipei Branch	30,000	November 2025 to May 2026	2.99	100,576	Note 4
Yuanta Commercial Bank, Xinzhuang Branch	35,000	November 2025 to May 2026	2.50	200,000	Note 5
COTA Commercial Bank, Banqiao Branch	30,023	October 2025 to April 2026	2.80	33,000	Note 6
Subtotal	524,023
Credit loans (NT$)
First Commercial Bank, Zhonghe Branch	100,000	December 2025 to February 2026	2.35	400,000		Note 7
First Commercial Bank, Zhonghe Branch	22,280	October 2025 to April 2026	2.35	400,000		Note 7
First Commercial Bank, Zhonghe Branch	4,750	November 2025 to May 2026	2.35	400,000		Note 7
Shanghai Commercial & Savings Bank, Yonghe Branch	5,277	July 2025 to January 2026	2.69	140,576		Note 8
Land Bank of Taiwan, Keelung Branch	50,000	December 2025 to March 2026	2.19	50,000		Note 9
Taichung Commercial Bank, Fuxing Branch	30,000	October 2025 to August 2026	2.73	130,000		Note 10
Taichung Commercial Bank, Fuxing Branch	10,000	April 2025 to April 2026	2.73	130,000		Note 10
Taichung Commercial Bank, Fuxing Branch	20,000	August 2025 to August 2026	2.73	130,000		Note 10
Taichung Commercial Bank, Fuxing Branch	6,290	July 2025 to January 2026	2.73	130,000		Note 10
Taichung Commercial Bank, Fuxing Branch	7,542	August 2025 to February 2026	2.73	130,000		Note 10
Bank of Taiwan, Liencheng Branch	145,000	September 2025 to September 2026	2.44	245,000		Note 11
Bank SinoPac, Taipei Branch	100,000	September 2025 to March 2026	2.29	500,000		Note 12
Bank SinoPac, Taipei Branch	43,800	November 2025 to February 2026	2.07	500,000		Note 12
Bank SinoPac, Taipei Branch	44,928	July 2025 to January 2026	2.29	500,000		Note 12
Bank SinoPac, Taipei Branch	5,226	August 2025 to February 2026	2.29	500,000		Note 12
Bank SinoPac, Taipei Branch	4,434	November 2025 to May 2026	2.29	500,000		Note 12
Bank SinoPac, Taipei Branch	82,038	November 2025 to May 2026	2.29	500,000		Note 12
Mega International Commercial Bank, Yonghe Branch	30,000	October 2025 to April 2026	2.71	165,000		Note 13
Mega International Commercial Bank, Yonghe Branch	6,210	August 2025 to February 2026	2.86	165,000		Note 13
Mega International Commercial Bank, Yonghe Branch	4,934	August 2025 to February 2026	2.86	165,000		Note 13
Mega International Commercial Bank, Yonghe Branch	3,400	August 2025 to January 2026	2.86	165,000		Note 13
Mega International Commercial Bank, Yonghe Branch	4,394	September 2025 to March 2026	2.86	165,000		Note 13
Mega International Commercial Bank, Yonghe Branch	12,882	September 2025 to March 2026	2.86	165,000		Note 13
Mega International Commercial Bank, Yonghe Branch	15,342	October 2025 to April 2026	2.86	165,000		Note 13
Mega International Commercial Bank, Yonghe Branch	8,036	October 2025 to April 2026	2.86	165,000		Note 13

89 -

Mega International Commercial Bank, Yonghe Branch	7,293	November 2025 to May 2026	2.50	165,000	Note 13
Mega International Commercial Bank, Yonghe Branch	7,443	November 2025 to May 2026	2.50	165,000	Note 13
Mega International Commercial Bank, Yonghe Branch	8,212	November 2025 to May 2026	2.50	165,000	Note 13
Mega International Commercial Bank, Yonghe Branch	18,746	December 2025 to June 2026	2.50	165,000	Note 13
Mega International Commercial Bank, Yonghe Branch	12,408	December 2025 to June 2026	2.50	165,000	Note 13
Taiwan Shin Kong Commercial Bank, Liancheng Road Branch	19,369	July 2025 to January 2026	2.76	480,000	Note 14
Taiwan Shin Kong Commercial Bank, Liancheng Road Branch	16,678	July 2025 to January 2026	2.76	480,000	Note 14
Taiwan Shin Kong Commercial Bank, Liancheng Road Branch	11,003	August 2025 to February 2026	2.76	480,000	Note 14
Taiwan Shin Kong Commercial Bank, Liancheng Road Branch	18,489	September 2025 to March 2026	2.76	480,000	Note 14
Export-Import Bank of the Republic of China	15,000	August 2025 to August 2026	2.14	40,000	Note 15
Export-Import Bank of the Republic of China	25,000	March 2025 to March 2026	2.20	40,000	Note 15
Chang Hwa Bank, Tianmu Branch	20,000	December 2025 to June 2026	2.59	140,000	Note 16
Hua Nan Commercial Bank, Zhonghe Branch	100,000	December 2025 to June 2026	3.01	250,000	Note 17
Hua Nan Commercial Bank, Zhonghe Branch Subtotal	130,000	July 2025 to January 2026	2.74	250,000	Note 17
Total	$ 1,700,427

Note 1: The amount of NT$50,000 thousand was guaranteed by the Small and Medium Enterprise Credit Guarantee Fund of Taiwan.
Note 2: Machinery and equipment as well as real property are pledged as collateral.
Note 3: NT$4,500 thousand of cash reserve was provided as collateral.
Note 4: NT$3,000 thousand of cash reserve was provided as collateral.
Note 5: NT$3,500 thousand of cash reserve was provided as collateral.
Note 6: NT$3,002 thousand of cash reserve was provided as collateral.
Note 7: NT$400,000 thousand of financing line was shared.
Note 8: NT$140,576 thousand of financing line was shared.
Note 9: NT$50,000 thousand of financing line was shared.
Note 10: NT$130,000 thousand of financing line was shared.
Note 11: NT$245,000 thousand of financing line was shared.
Note 12: NT$500,000 thousand of financing line was shared.
Note 13: NT$165,000 thousand of financing line was shared.
Note 14: NT$480,000 thousand of financing line was shared.
Note 15: NT$40,000 thousand of financing line was shared.
Note 16: NT$140,000 thousand of financing line was shared.
Note 17: NT$250,000 thousand of financing line was shared.

Laster Tech Co., Ltd.
Statement of Accounts Payable
December 31, 2025

Subsidiary Ledger 6
Unit: NT$ thousand

Name of supplier	Amount
Non-related Parties
B	$ 401,579
C	59,750
D	28,611
E	24,142
Other (note)	64,404
	$ 578,486

Note: No balances of the accounts exceeded 5% of the balance of this account.

91 -

Subsidiary Ledger 7
Unit: NT$ thousand
Laster Tech Co., Ltd.
Statement of Long-Term Borrowings
December 31, 2025

Loan type and creditor	Summary	Loan amount			Contract term	Annual interest rate	Guarantee or pledge
		Expires in one year	Expires after one year	Total
Secured loans
Shanghai Commercial & Savings Bank, Yonghe Branch	From September 2021, these loans are repaid once a month until repaid in full in August 2026.	$ 1,180	$ -	$ 1,180	September 2021 to September 2026	1.825	Credit guarantee (80%): NTD 944 thousand
Shanghai Commercial & Savings Bank, Yonghe Branch	From February 2025, these loans are repaid once a month until repaid in full in January 2030.	4,000	12,333	16,333	January 2025 to January 2030	2.220	Credit guarantee (80%): NTD 13,067 thousand
Shanghai Commercial & Savings Bank, Yonghe Branch	From February 2025, these loans are repaid once a month until repaid in full in January 2028.	3,334	3,611	6,945	January 2025 to January 2028	2.720	Credit guarantee (80%): NTD 5,556 thousand
Taiwan Business Bank, Songshan Branch	From September 2021, these loans are repaid once a month until repaid in full in November 2026.	490	-	490	April 2021 to April 2026	2.720	Credit guarantee (80%): NTD 392 thousand
Taishin International Bank	From April 2024, these loans are repaid once a month until repaid in full in April 2027.	8,280	2,230	10,510	March 2024 to March 2027	2.590	Credit guarantee (100%): NTD 10,510 thousand
Taipei Fubon Bank	From June 2024, these loans are repaid once a month until repaid in full in March 2027.	10,588	2,647	13,235	May 2024 to April 2027	2.822	Credit guarantee (100%): NTD 13,235 thousand
Hua Nan Commercial Bank, Zhonghe Branch	From July 2023, these loans are repaid once a month until repaid in full in June 2028.	4,000	6,000	10,000	June 2023 to June 2028	2.450	Credit guarantee (80%): NTD 8,000 thousand
Hua Nan Commercial Bank, Zhonghe Branch	From June 2024, these loans are repaid once a month until repaid in full in May 2029.	3,000	7,250	10,250	May 2024 to May 2029	2.220	Credit guarantee (80%): NTD 8,200 thousand
CTBC Bank	From September 2024, these loans are repaid once a month until repaid in full in August 2027.	13,071	8,714	21,785	September 2023 to September 2027	1.475	Equipment
Mega International Commercial Bank, Yonghe Branch	From January 2026, these loans are repaid once a month until repaid in full in December 2028.	8,750	17,500	26,250	December 2023 to December 2028	2.220	Credit guarantee (80%): NTD 21,000 thousand
First Commercial Bank, Zhonghe Branch	From October 2028, these loans are repaid once a month until repaid in full in October 2030.	-	1,510,000	1,510,000	October 2025 to October 2030	2.429	Machinery and equipment, and real property
		56,693	1,570,285	1,626,978
Unsecured loans
Export-Import Bank of the Republic of China	From February 2026, these loans are repaid once a month until repaid in full in August 2027.	30,000	30,000	60,000	August 2024 to August 2027	2.355

92 -

93 -
| KGI Bank, Chengdong Branch | From August 2025, these loans are repaid once a month until repaid in full in February 2027. | 72,000 | 18,000 | 90,000 | February 2025 to February 2027 | 2.460 |
| --- | --- | --- | --- | --- | --- | --- |
| | | 102,000 | 48,000 | 150,000 | | |
| | | $ 158,693 | $ 1,618,285 | $ 1,776,978 | | |

Laster Tech Co., Ltd.
Statement of Operating Revenue
2025

Subsidiary Ledger 8
Unit: NT$ thousand

Item	Number of sales	Amount
Revenue from merchandise sales
Vehicle lamp controller	4,656,904 units	$ 2,016,799
Components	13,511,924 units	32,109
LED chips	9,613,230 chips	15,692
LED lighting fixtures	45,845 units	4,084
LED components	152,000 pieces	294
		2,068,978
Service revenue		13,916
		$ 2,082,894

94 -

Laster Tech Co., Ltd.
Statement of Operating Costs
For the Years then Ended December 31, 2025

Subsidiary Ledger 9
Unit: NT$ thousand

Item	Amount
Operating costs
Raw materials at the beginning of the year	$ 244,275
Add: Purchase of materials this year	1,358,225
Inventory surplus	493
Others	714
Less: Transferred expenses	( 1,722)
Raw materials at the end of the year	( 149,858)
Raw material consumption	1,452,127
Manufacturing expenses	264,486
Manufacturing costs	1,716,613
Work in process at the beginning of the year	41,398
Less: Unamortized fixed manufacturing expenses	( 81,377)
Work in process at the end of the year	( 20,566)
Cost of finished goods	1,656,068
Finished goods at the beginning of the year	510,541
Less: Scrapped inventories	( 7,377)
Transferred expenses	( 168)
Inventory loss	( 6)
Finished goods at the end of the year	( 342,842)
Cost of goods sold of finished products	1,816,216
Commodities at the beginning of the year	58,230
Add: Goods purchased during the year	8,958
Add: Others	120
Less: Transferred expenses	( 311)
Commodities at the end of the year	( 48,782)
Cost of goods sold	18,215
Unamortized fixed manufacturing expenses	81,377
Loss on scrapped inventories	7,377
Loss on inventory valuation decline and obsolescence	482
Inventory surplus	( 487)
Total operating cost	$ 1,923,180

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Laster Tech Co., Ltd.
Statement of Operating Expenses
2025
Subsidiary Ledger 10
Unit: NT$ thousand

Item	Selling and marketing expenses	General and administrative expenses	Research and development expenses	Total
Salary expenses	$ 12,506	$ 65,513	$ 8,294	$ 86,313
Depreciation and amortization	2,205	6,846	1,341	10,392
Freight	43,032	2,073	2	45,107
Professional service charge	370	9,714	40	10,124
Insurance premium	1,309	6,050	842	8,201
Others	3,884	26,858	2,291	33,033
	$ 63,306	$ 117,054	$ 12,810	$ 193,170

Note: The amount of each item does not reach 5% of the total amount.

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Laster Tech Co., Ltd.
Statement of Current Employee Benefits, Depreciation, Depletion, and Amortization Expenses by Function
For the Years then Ended December 2025 and 2024
Subsidiary Ledger 11
Units: NT$ thousands, unless otherwise specified

	2025			2024
	Attributable to cost of operation	Attributable to operating expense	Total	Attributable to cost of operation	Attributable to operating expense	Total
Employee benefits expense
Salary expenses	$ 68,554	$ 79,228	$ 147,782	$ 98,733	$ 106,073	$ 204,806
Labor and national health insurance expenses	10,367	8,018	18,385	11,228	7,054	18,282
Pension expenses	4,562	3,481	8,043	4,936	3,009	7,945
Remuneration to the Directors	-	3,914	3,914	-	6,569	6,569
Other employee benefit costs	14,915	6,714	21,629	14,672	8,533	23,205
	$ 98,398	$ 101,355	$ 199,753	$ 129,569	$ 131,238	$ 260,807
Depreciation expenses	$ 81,364	$ 8,562	$ 89,926	$ 78,535	$ 5,277	$ 83,812
Amortization expenses	$ 580	$ 1,829	$ 2,409	$ 647	$ 1,370	$ 2,017

Note: 1. The number of employees for the current year and the previous year were 206 and 212, respectively. There were 8 directors and 8 directors who did not concurrently serve as employees, respectively.
2. The company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the information as follows:

(1) The average employee benefit expenses in the year were NT$989 thousand ("Total employee benefit expenses in the year - total remuneration to directors" / "Number of employees in the year - number of directors who were not employees"). The average employee benefit expenses in the previous year were NT$1,246 thousand ("Total employee benefit expenses in the previous year - total remuneration to directors" / "Number of employees in the previous year - number of directors who were not employees").

(2) The average employee salary expenses in the year were NT$746 thousand (Total salary expenses in the year / "Number of employees in the year - number of directors who were not employees"). The average employee salary expenses in the previous year were NT$1,004 thousand (Total salary expenses in the previous year / "Number of employees in the previous year - number of directors who were not employees").

(3) The average employee salary expenses changed by (25.7%) ("Average employee salary expense in the year - average employee salary expense in the previous year" / average employee salary expense in the previous year).

(4) The Company has no supervisors.

(5) Information on the Company's remuneration policy (including directors, company officers, employee) is as follow:

The Company's remuneration to directors includes directors' remuneration and emoluments. Remuneration is paid in accordance with the Articles of Incorporation, not more than 3% of the profits, if any, shall be allocated as remuneration to directors. Remuneration to the directors takes into account the Company's competitive environment, operational risks and duties performed by the directors as well as the risks they borne. The remuneration proposal is submitted to the Remuneration Committee for approval

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followed by a resolution of the Board of Directors.

The composition of the remuneration to the Company’s company officers and employees includes fixed salaries and variable bonuses. Fixed salaries are basic salaries and fixed allowances; while variable bonuses are linked to the Company’s operational performance and the achievement of strategic objectives. The proposal for remuneration to company officers is submitted to the Remuneration Committee for approval and submitted to the Board of Directors for resolution.

98 -

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Laster Tech — Audit Report / Information 2026

52317_rns_2026-05-21_9dd29a98-a6f0-43ed-8b31-6153624a39da.pdf

Audit opinion

Basis of Audit Opinion

Key Audit Matters

Recognition of sales revenue

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Auditor's Responsibilities for the Audit of the Parent Company Only Financial Statements

2. Service revenue

(XII) Leases

1. The Company is the lessor

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

VIII. Financial assets at fair value through other comprehensive income

Debt instrument investments

Accounts receivable

XIII. Property, plant and equipment

Self-use

XIV. Lease agreement

(III) Long-term borrowings

XVII. Bonds payable

XVIII. Accounts payable

XIX. Other liabilities

XX. Post-employment benefits

(I) Defined allocation plan

(II) Defined benefit plan

XXI. Equity

(I) Share capital

Common shares

(II) Stock dividends from

(VII) Employee remuneration and director's remuneration

XXVI. Share-based payment agreement

XXVII. Cash flow information

(I) Non-cash transactions

XXIX. 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. Credit risk

3. Liquidity risk

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

XXXII. Significant Contingent Liabilities and Unrecognized Commitments

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

XXXIV. Additional Disclosures

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Laster Tech Audit Report / Information 2026