LD - Audit Report / Information 2024

Stock Code: 3588

Leadtrend Technology Corporation

Parent Company Only Financial Statements and Independent Auditors' Report

For the Years Ended December 31, 2024 and 2023

Notice to Readers

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

Independent Auditors' Report

The Board of Directors and Shareholders

Leadtrend Technology Corporation

Opinion

We have audited the independent financial statements of Leadtrend Technology Corporation, which comprise the parent company only balance sheets as of December 31, 2024 and 2023 and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the 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 prepare fairly, in all material respects, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and present fairly its parent company only financial conditions of Leadtrend Technology Corporation as of December 31, 2024 and 2023 and its parent company only financial performance and parent company only cash flows for the years then ended.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significant in our audit of the parent company only financial statements of Leadtrend Technology Corporation for the year ended December 31, 2024. These matters were addressed in the context of our audit of the parent company only financial statements and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the parent company only financial statements of Leadtrend Technology Corporation for the year ended December 31, 2024 are stated as follows:

Recognition of Sales Revenue

For the significant sales revenue amounts of Leadtrend Technology Corporation, please refer to Note 20. Proceeds from sale of power management integrated circuits are the main revenue of Leadtrend Technology Corporation. To initiate the process of recognizing such revenue, the production management personnel provide the delivery order to get the products ready for the customer as instructed by the business segment. After the products to be shipped are ready, quality assurance personnel are informed and requested to inspect the products. After products are inspected and qualified, production management personnel sign and affix the official seal to the delivery order and the finished goods outbound order, have the products shipped after the approval of the authorized supervisor, and update the stock details in the operating system. Then the accountant recognizes the sales revenue based on the delivery order signed by the customer or the shipping company.
As the aforementioned transaction involves manual control, the risk of recognizing revenue by mistake or without obtaining the delivery order signed by the customer or the shipping company exists.
We consider the revenue recognition policy of Leadtrend Technology Corporation and evaluate appropriateness of the revenue recognition by understanding and testing the effectiveness of the internal controls on the approval of orders and the shipment procedures, sampling the vouchers relevant to sales revenue, reviewing the amounts received in cash or subsequent cash receipts in order to verify the existence and occurrence of the sales, and also check whether any abnormality about the entity to which products have been sold and the entity receiving payments exists.
3 -

Inventory Evaluation

Refer to Note 9 of the parent company only financial statements. It is significant that the inventory balance of Leadtrend Technology Corporation accounted for 30% of the total assets as of December 31, 2024. Valuation allowance for inventories is a material accounting estimate. Leadtrend Technology Corporation engages in design and development of integrated circuits, and sells products after outsourcing manufacturing. As such products can be replaced fast in the highly competitive industry, inventory depreciation and obsolescence loss risks may exist.

At the situations stated in any of the most important matters for the audit conducted this year, we have carried out the primary audit procedures as follows:

Understand and evaluate the rationality of the inventory valuation policy adopted by the management.
Obtain the evaluation information about the lower of inventory cost or net realizable value, sample and review the latest information of selling prices of inventories to verify the net realizable value of inventories, and compare the net realizable value of inventories with the book cost of inventories to test the rationality of the amount allocated as inventory loss. Obtain the inventory aging statements, sample and review the inventory change information to test whether the inventory aging classification, inventory quantity and amount are consistent in order to verify the accuracy and completeness of the inventory aging statements. Then verify the rationality of the amount allocated as inventory obsolescence loss pursuant to the inventory evaluation policy.
Carry out inventory retrospectability testing. Review the status of inventory write-off and compare with the inventory obsolescence loss allocation policy to verify whether the inventory obsolescence loss allocated for the current period is proper.

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

Management is responsible for 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 also responsible for maintenance of the internal controls associated with the preparation of the parent company only financial statements, to ensure the parent company only financial statements free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is also responsible for assessing the ability of Leadtrend Technology Corporation to continue, as a going concern, disclosing any and all relevant matters and using the going concern basis of accounting unless management either intends to liquidate Leadtrend Technology Corporation or cease operations, or has no feasible alternative but to do so.

Those charged with governance (including the audit committee) are responsible for overseeing the financial reporting process of Leadtrend Technology Corporation.

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. If misstatements could, individually or in the aggregate, be reasonably expected to influence the economic decisions of users taken based on the parent company only financial statements, then the misstatements are considered material.

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

Identify and assess the risks of material misstatement of the 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 the one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
Obtain an understanding of the internal controls 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 controls of Leadtrend Technology Corporation.
5 -
Evaluate the appropriateness of accounting policies used, and the reasonableness of accounting estimates and related disclosures made, by management.
Conclude, based on the audit evidence obtained, on the appropriateness of the management's use of the going concern basis of accounting, and whether a material uncertainty exists that is associated with any events or conditions casting significant doubt on the ability of Leadtrend Technology Corporation to continue as a going concern. If we believe that a material uncertainty exists, we are required to draw attention in our auditors' report to the relevant disclosures in the parent company only financial statements, or to modify our opinion if such disclosures are inadequate. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause Leadtrend Technology Corporation 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 thereof) and whether the parent company only financial statements appropriately represent the underlying transactions and events.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities within Leadtrend Technology Corporation to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit conducted for Leadtrend Technology Corporation, and also responsible for our audit opinion.

We have communicated with those charged with governance about the planned scope and timing of the audit, and significant audit findings (including any and all significant flaws identified, during our audit, in the internal controls).

We have also provided those charged with governance with a statement, declaring that we as CPAs comply with applicable ethical requirements regarding independence, and have communicated with them about all relationships and other matters that may reasonably be considered to influence our independence (including relevant protection measures).

From the matters communicated with those charged with governance, we have determined the key audit matters in the audit of the parent company only financial statements of Leadtrend Technology Corporation for the year ended December 31, 2024. We have described these matters in our auditors' report unless any law or regulation prohibits the matters from being disclosed or when, in extremely rare circumstances, we decide that the matters should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interests to be facilitated.

The engagement partners on the audit resulting in this independent auditors’ report are Yu-Feng Huang and Mei-Chen Tsai.

Deloitte & Touche Taipei, Taiwan Republic of China

February 20, 2025

Leadtrend Technology Corporation

Balance Sheets

December 31, 2024 and 2023

(In Thousands of New Taiwan Dollars)

Code 1100 1170 1180 130X 1470 11XX 1535 1550 1600 1755 1780 1840 1990 15XX 1XXX 2170 2180 2200 2230 2280 2320 2399 21XX 2540 2570 2580 2645 25XX 2XXX 3110 3210 3251 3273 3280 3310 3320 3350 3410 3491 3XXX	Assets Current assets Cash and cash equivalents (Notes 4 and 6) Accounts receivable (Notes 4, 5, 8 and 20) Accounts receivable－related parties (Notes 4, 5, 8, 20 and 26) Inventories (Notes 4, 5 and 9) Other current assets (Notes 14 and 26) Total current assets Non-current assets Financial assets at amortized cost- non-current (Notes 4 and 7) Investments accounted for using equity method (Notes 4 and 10) Property, plant and equipment (Notes 4 and 11) Right-of-use assets (Notes 4 and 12) Intangible assets (Notes 4 and 13) Deferred tax assets (Notes 4 and 22) Other non-current assets (Notes 4 and 14) Total non-current assets Total assets LiabilitiesandEquity Current liabilities Accounts payable Accounts receivable－Related parties (Note 26) Remuneration payable to staff and directors (Note 21) Current tax liabilities (Notes 4 and 22) Current lease liabilities (Notes 4 and 12) Long-term bank loan-current portion (Notes 4 and 15) Other current liabilities (Note 16) Total current liabilities Non-current liabilities Long-term bank loans (Notes 4 and 15) Deferred tax liabilities (Notes 4 and 22) Lease liabilities- non-current (Notes 4 and 12) Guarantee deposits received Total non-current liabilities Total liabilities Equity (Notes 4, 18 and 19) Stock capital Ordinary share Capital surplus Share premium Donations received from shareholders Employee restricted stock award shares Others Retained earnings Legal reserve Special reserve Unappropriated earnings Other Equity Exchange differences on translating the financial statements of foreign operations Employees' unearned compensation Total equity Total liabilities and equity		December31,2024 Amount ％ $ 456,534 22 98,511 5 87,572 4 608,919 30 11,622 1 1,263,158 62 1,000 - 306,379 15 414,136 21 27,722 2 7,130 - - - 7,051 - 763,418 38 $ 2,026,576 100 $ 95,923 5 501 - 23,042 1 6,242 - 9,266 - 10,208 1 71,538 4 216,720 11 24,792 1 335 - 18,811 1 126 - 44,064 2 260,784 13 604,421 30 250,212 13 84,732 4 61,218 3 131 - 218,171 11 786 - 581,831 28 9,971 - 45,681) ( 2) 1,765,792 87 $ 2,026,576 100	December31,2024 Amount ％ $ 456,534 22 98,511 5 87,572 4 608,919 30 11,622 1 1,263,158 62 1,000 - 306,379 15 414,136 21 27,722 2 7,130 - - - 7,051 - 763,418 38 $ 2,026,576 100 $ 95,923 5 501 - 23,042 1 6,242 - 9,266 - 10,208 1 71,538 4 216,720 11 24,792 1 335 - 18,811 1 126 - 44,064 2 260,784 13 604,421 30 250,212 13 84,732 4 61,218 3 131 - 218,171 11 786 - 581,831 28 9,971 - 45,681) ( 2) 1,765,792 87 $ 2,026,576 100		December31,2023	December31,2023	December31,2023
			Amount $ 456,534 98,511 87,572 608,919 11,622 1,263,158 1,000 306,379 414,136 27,722 7,130 - 7,051 763,418 $ 2,026,576 $ 95,923 501 23,042 6,242 9,266 10,208 71,538 216,720 24,792 335 18,811 126 44,064 260,784 604,421 250,212 84,732 61,218 131 218,171 786 581,831 9,971 45,681) 1,765,792 $ 2,026,576					％
		(		(			(	24 6 2 29 1 62 - 13 23 1 1 - - 38 100 5 - 1 1 1 - 3 11 - - - - - 11 32 14 4 3 - 12 - 26 - 2) 89 100

The accompanying notes are an integral part of the parent company only financial statements.

Leadtrend Technology Corporation

Parent Company Only Statements of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

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

Code Operating revenue (Notes 4, 20 and 26) 4110 Sales revenue 4170 Sales returns and allowances 4000 Net operating revenue Operating costs (Notes 9, 17 and 21) 5110 Cost of goods sold 5900 Gross profit 5910 Unrealized profit from sales (Note 4) 5920 Realized profit from sales (Note 4) 5950 Realized gross profit Operating expenses (Notes 17 and 21) 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Net operating income (loss) Non-operating income and expenses (Note 21) 7100 Interest income 7010 Other incomes 7020 Other gains and losses 7050 Finance cost 7070 Share of profit or loss of subsidiaries accounted for using the equity method (Notes 4 and 10) 7000 Total non-operating income and expenses		2024

(Continued on next page)

(Brought forward from previous page)

(Brought forward from previous page)
Code 7900 Profit before income tax 7950 Income tax benefit (Notes 4 and 22) 8200 Net profit for the year Other comprehensive incomes (losses) 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translating the financial statements of foreign operations (Note 18) 8300 Total other comprehensive incomes (losses) (Net) 8500 Total comprehensive incomes (losses) for the year Earnings per share (Note 23) 9750 Basic 9850 Diluted		2024	％ 8 - 8 1 1 9		2023
		Amount $ 108,521 3,368) 111,889 10,757 10,757 $ 122,646 $ 1.89 $ 1.86			Amount $ 24,722 4,142) 28,864 6,388) 6,388) $ 22,476 $ 0.49 $ 0.48		％
	(			( ( (		( (	3 - 3 1) 1) 2

The accompanying notes are an integral part of the parent company only financial statements.

10 -

Leadtrend Technology Corporation Parent Company Only Statements of Changes in Equity For the Years Ended December 31, 2024 and 2023

	Share capital Shares (In Thousands) Amount 56,883 $ 568,838 - - - - 1,707 17,065 1,707 17,065 - - - - - - - - - - 420 4,200 - - 92 ) ( 925 ) - - 58,918 589,178 - - - - 1,164 11,638 1,164 11,638 - - - - - - - - - - 420 4,200 - - 60 ) ( 595 ) - - 60,442 $ 604,421	Share capital Shares (In Thousands) Amount 56,883 $ 568,838 - - - - 1,707 17,065 1,707 17,065 - - - - - - - - - - 420 4,200 - - 92 ) ( 925 ) - - 58,918 589,178 - - - - 1,164 11,638 1,164 11,638 - - - - - - - - - - 420 4,200 - - 60 ) ( 595 ) - - 60,442 $ 604,421			Capital surplus	Capital surplus		Retained earnings	Retained earnings	Retained earnings		thousands of New Taiwan Dollars, except as other Other Equity Exchange differences on translating the financial statements of foreign operations Employees' unearned compensation $ 5,602 ( $ 31,945 ) - - - - - - - - - - - - - - ( 6,388) - ( 6,388) - - ( 27,930 ) - - - - - 24,072 ( 786 ) ( 35,803 ) - - - - - - - - - - - - - - 10,757 - 10,757 - - ( 37,128 ) - - - - - 27,250 $ 9,971 ($ 45,681)	thousands of New Taiwan Dollars, except as other Other Equity Exchange differences on translating the financial statements of foreign operations Employees' unearned compensation $ 5,602 ( $ 31,945 ) - - - - - - - - - - - - - - ( 6,388) - ( 6,388) - - ( 27,930 ) - - - - - 24,072 ( 786 ) ( 35,803 ) - - - - - - - - - - - - - - 10,757 - 10,757 - - ( 37,128 ) - - - - - 27,250 $ 9,971 ($ 45,681)	wis	e indicated herein) Total equity
												Exchange differences on translating the financial statements of foreign operations $ 5,602 - - - - - - - ( 6,388) ( 6,388) - - - - ( 786 ) - - - - - - - 10,757 10,757 - - - - $ 9,971
	Shares (In Thousands) 56,883 - - 1,707 1,707 - - - - - 420 - 92 ) - 58,918 - - 1,164 1,164 - - - - - 420 - 60 ) - 60,442			Share premium $ 258,027 - - - - 19,909 ) - - - - - 16,554 - - 254,672 - - - - 23,275 ) - - - - - 18,815 - - $ 250,212	Donations received from shareholders $ 84,732 - - - - - - - - - - - - - 84,732 - - - - - - - - - - - - - $ 84,732	Employee restricted stock award shares $ 47,567 - - - - - - - - - 23,730 ( 16,554 ) 925 ( 5,362) 50,306 - - - - - - - - - 32,928 ( 18,815 ) 595 ( 3,796) $ 61,218	Legal reserve $ 199,793 15,491 - - 15,491 - - - - - - - - - 215,284 2,887 - - 2,887 - - - - - - - - - $ 218,171	Special reserve $ - - - - - - - - - - - - - - - - 786 - 786 - - - - - - - - - $ 786		Unappropriated earnings $ 520,231 15,491 ) 31,286 ) 17,065) 63,842) - - 28,864 - 28,864 - - - - 485,253 2,887 ) 786 ) 11,638) 15,311) - - 111,889 - 111,889 - - - - $ 581,831
( (		( (	( (			( ( ( (			( ( ( ( ( ( ( (		( ( ( ( (	( ( (	( ( ( ( (	( ( ( ( (	$ 1,652,951 - 31,286 ) - 31,286) 19,909 ) 19 28,864 6,388) 22,476 - - - 18,710 1,642,961 - - - - 23,275 ) 6 111,889 10,757 122,646 - - - 23,454 $ 1,765,792

The accompanying notes are an integral part of the parent company only financial statements.

11 -

Leadtrend Technology Corporation

Parent Company Only Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

(In Thousands of New Taiwan Dollars)

Code Cash flows from operating activities A10000 Profit before income tax A20010 Adjustments for: A20100 Depreciation expense A20200 Amortization expense A20900 Finance cost A21200 Interest income A21900 Compensation cost on restricted stock for employees A22400 Share of profit or loss of subsidiaries accounted for using the equity method A22500 Gains on disposal of property, plant and equipment A23200 Gain on disposal of subsidiaries accounted for using equity method A23700 Write-down of inventories A23900 Unrealized profit on intercompany sales A24000 Realized profit on intercompany sales A24100 Net (gain) loss on foreign exchange A30000 Changes in operating assets and liabilities A31150 Notes and accounts receivable A31160 Accounts receivable－Related parties A31200 Inventories A31240 Other current assets A32150 Accounts payable A32200 Remunerations payable to employees and directors A32230 Other current liabilities A32240 Defined benefit liabilities A33000 Cash generated from operations A33300 Interest paid A33500 Income tax paid AAAA Net cash generated by operating activities	2024 $ 108,521 65,438 6,588 380 ( 6,636 ) 23,454 ( 85,263 ) - - 6,694 26,243 ( 1,103 ) ( 6,051 ) 15,750 ( 46,781 ) ( 73,634 ) 2,188 ( 45 ) 3,827 7,027 - 46,597 ( 380 ) ( 340) 45,877	2023
		$ 24,722 79,199 10,516 338 ( 4,073 ) 18,710 ( 38,080 ) ( 1,843 ) ( 1,139 ) 14,560 28,146 ( 27,245 ) 2,249 ( 7,819 ) ( 11,165 ) 194,341 4,843 37,091 ( 18,293 ) ( 17,316 ) ( 4,840) 282,902 ( 338 ) ( 584) 281,980

(Continued on next page)

12 -

(Brought forward from previous page) Code Cash flows from investing activities B00040 Acquisition of financial assets at amortized cost B01900 Net cash generated from disposal of subsidiaries B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 (Increase) decrease in refundable deposits B04500 Acquisition of intangible assets B07500 Interest received BBBB Net cash used in investing activities Cash flows from financing activities C00100 Increase in short-term loans C00200 Decrease in short-term loans C03000 (Decrease) increase in guarantee deposits received C01600 Proceeds from long-term debt C04020 Payments of lease liabilities C04500 Cash dividends paid C09900 Other financing activities CCCC Net cash provided by (used in) financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Net increase in cash and cash equivalents E00100 Cash and cash equivalents at the beginning of the year E00200 Cash and cash equivalents at the end of the year	2024 ( $ 1,000 ) - ( 38,359 ) - ( 139 ) ( 5,153 ) 6,654 ( 33,826) 30,000 ( 30,000 ) ( 106 ) 35,000 ( 9,089 ) ( 23,275 ) 6 2,536 2,727 17,314 439,220 $ 456,534	2023
		$ - 3,555 ( 34,380 ) 10,395 15,227 ( 7,819 ) 3,903 ( 5,834) - - 30 - ( 8,561 ) ( 51,195 ) 19 ( 59,707) ( 519) 215,920 223,300 $ 439,220

The accompanying notes are an integral part of the parent company only financial statements.

13 -

Leadtrend Technology Corporation

Notes to Parent Company Only Financial Statements

For the Years Ended December 31, 2024 and 2023

(In thousands of New Taiwan Dollars, except as otherwise indicated herein)

1. General Information

Leadtrend Technology Corporation (hereinafter referred to as the Company), incorporated on September 18, 2002 after the approval of Ministry of Economic Affairs, mainly engages in research, development, production, manufacturing and sale of analog integrated circuits.

Stocks of the Company have been traded at Taiwan Stock Exchange Corporation since August 14, 2009.

The New Taiwan Dollar, the functional currency adopted by the Company, is used to express amounts indicated in the parent company only financial statements.

2. Date and Procedure of Adoption of Financial Statements

The parent company only financial statements were approved by the board of directors on February 20, 2025 to be published.

3. Applicability of New and Amended Standards and Interpretations

(1) International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretation (IFRIC) and Interpretation Notices (SIC) recognized and issued by the Financial Supervisory Commission (hereinafter referred to as "IFRSs") as applied initially. The application of the revised IFRSs approved and issued by the FSC will not result in any material change in the accounting policies of Affiliated Companies.

Application of the IFRSs, which are endorsed and issued by the FSC, does not cause any significant change in accounting policies of the Company.

(2) IFRS approved by the Financial Supervisory Commission applicable in 2025.

Standards Published / Amended / Revised and Effective date of IASB Interpretations issued Amendment to IAS 21 "Lack of Exchangeability" January 1, 2025 (Note 1)

14 -

Note1: They are applicable for the annual reporting periods beginning after January 1, 2025. When this amendment is applied for the first time, the comparative period shall not be restated, but the impact shall be recognized in the retained earnings or exchange differences of foreign operating institutions under equity (as appropriate) on the date of initial application and the related affected assets and liabilities.

	January 1, 2025. When this amendment is applied for the first time, the comparative period shall not be restated, but the impact shall be recognized in the retained earnings or exchange differences of foreign operating institutions under equity (as appropriate) on the date of initial application and the related affected assets and liabilities.	January 1, 2025. When this amendment is applied for the first time, the comparative period shall not be restated, but the impact shall be recognized in the retained earnings or exchange differences of foreign operating institutions under equity (as appropriate) on the date of initial application and the related affected assets and liabilities.
(3)	IFRSs Published by IASB already but Not Recognized or Published by FSC Yet: Standards Published / Amended / Revised and Interpretations Effective date of IASB issued(Note 1) "Annual Improvement of IFRS Accounting Standards - Volume 11" January 1, 2026 Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" January 1, 2026 Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity" January 1, 2026 Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between Investors and Their Affiliates or Joint Ventures" To be determined by IASB IFRS 17 "Insurance Contract" January 1, 2023 Amendment to IFRS 17 January 1, 2023 Amendment to IFRS 17 "Initial Application of IFRS 17 and IFRS 9- Comparative Information" January 1, 2023 IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 IFRS 19 "Subsidiaries without publicly accountable: Disclosure" January 1, 2027
		January 1, 2026 January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

Note1: Except otherwise as indicated, the standards newly published/amended/revised or interpretations shall come into effect from the annual reporting period after the indicated date.

As of the date of adopting these parent company only financial statements, the Company continues to evaluate the impact of amendments to other standards and interpretations on financial position and financial performance, and the relevant impact will be disclosed when the evaluation is completed.

15 -

4. Summary of Material Accounting Policies

(1) Declaration of Compliance
The parent company only financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
(2) Preparation Basis
The parent company only financial statements are prepared on the basis of historical cost, except for the financial instruments at fair value, and the net defined benefit liability recognized based on the present value of defined benefit obligations less the fair value of plan assets.

Fair value measurement is classified from level 1 to level 3 based on observable level and importance of relevant inputs.

A. Level 1 Inputs: They refer to the prices of the same assets or liabilities obtained in the active market on measurement date (not adjusted).
B. Level 2 Inputs: They refer to direct inputs (i.e. prices) or indirect inputs (presumed from prices) observable, except level 1 prices, for assets or liabilities.
C. Level 3 Inputs: They refer to inputs not observable for assets or liabilities. The Company used the equity method to treat investee subsidiaries when preparing the parent company only financial statements. To ensure that the profit or loss of the current year, other comprehensive incomes and equity specified in the parent company only financial statements are the same as the profit or loss of the current year, other comprehensive incomes and equity attributed to owners of the Company in the Company’s consolidated financial statements, the Company adjusted the “investments accounted for using the equity method,” “share of profit or loss of subsidiaries accounted for using the equity method” and relevant equity items to respond to accounting treatment differences when preparing the parent company only and consolidated financial statements.
16 -
(3) Standards of Distinguishing Current Assets and Liabilities from Non-current Assets and Liabilities

Current assets:

A. The assets held primarily for trading purposes.
B. Assets expected to be realized within 12 months after the balance sheet date.
C. Cash and cash equivalents (not including the same that would be used to exchange or pay off liabilities 12 months after the balance sheet date and be therefore restricted).

Current liabilities:

A. The liabilities held primarily for trading purposes.
B. The liabilities due for settlement within 12 months after the balance sheet date.
C. Liabilities for which there is no substantive right at the balance sheet date to defer settlement to at least 12 months after the balance sheet date.

The assets and liabilities which are not listed as current assets and current liabilities above are classified as non-current assets and non-current liabilities.

(4) Foreign Currency

The functional currency adopted by the Company is the New Taiwan Dollar. For the transactions completed by the Company using a (foreign) currency rather than its functional currency, the Company converts the foreign currency to the functional currency at the exchange rate prevailing on the date of transaction in preparing the parent company only financial statements.

Foreign monetary items are converted at the closing rate on the balance sheet date. Exchange differences generated from the transfer or conversion of monetary items is recognized in profit or loss for the current year when the differences occur. Foreign currency non-monetary items measured at fair value are converted at the exchange rate on the date when fair value is determined. Exchange differences generated are listed as profits or losses for the current year. However, in case of changes in fair value recognized in other comprehensive incomes or losses, the exchange differences generated are listed as other comprehensive incomes or losses.

Foreign currency non-monetary items measured at historical cost are converted at the exchange rate on the date of transaction and will not be re-converted.

17 -

In preparing the parent company only financial statements, the Company converts the assets and liabilities of the foreign operations (including the subsidiaries using, and the subsidiaries operating in the countries using, any currency that differs from the currency used by the Company) to NT dollars at the exchange rate on the balance sheet date. Incomes and expenses are converted at the average exchange rate of the current year. Exchange differences generated are recognized as other comprehensive incomes or losses.

If the Company disposes all equity of a foreign operation, then the accumulate exchange differences relevant to the foreign operation will be reclassified to profits or losses.

(5) Inventories

Inventories include raw materials, work in process and finished goods. Inventories are measured by using the lower of cost or net realizable value method. Cost and net realizable value is compared base on each individual item, except the same type of inventories. Net realizable value refers to the amount of the selling price, estimated in normal circumstances, from which the estimated cost required to be put in prior to the completion and the estimated cost needed for the completion of sale are subtracted. Cost of inventories is calculated by use of the weighted average method.

(6) Investments in Subsidiaries

The Company uses the equity method to treat its investments in subsidiaries. A subsidiary means an entity controlled by the Company.

With the equity method, investments are originally recognized at cost. After the date of acquisition, the carrying amount increases or decreases subject to the share of profits, losses, other comprehensive incomes and distributed profits to be enjoyed by the Company from subsidiaries. In addition, changes in other equity of subsidiaries to be enjoyed by the Company are recognized proportionally based on the ratio of shareholding.

18 -

When changes in the Company’s ownership interests in a subsidiary do not cause the Company to lose its control over the subsidiary, the changes are treated as an equity transaction. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is recognized as equity directly.

When the Company’s share of loss in a subsidiary equals or exceeds its interests in the subsidiary (including the carrying amount of investments in the subsidiary accounted for using the equity method, and other long-term interests substantially comprising the Company’s net investments in the subsidiary), the Company shall recognize loss based on the ratio of shareholding.

Acquisition cost exceeding the Company’s share of the identifiable assets and liabilities of subsidiaries in fair value on the date of acquisition is recognized as goodwill. The goodwill is included in the carrying amount of the investments and shall not be amortized. When the share of the identifiable assets and liabilities of subsidiaries in fair value enjoyed by the Company on the acquisition date exceeds the amount of the acquisition cost, such excess is recognized as profit for the current year.

In evaluating impairment, the Company uses the financial statements as a whole to consider cash-generating units and compares the recoverable amount with the carrying amount. If the recoverable amount of the asset increases afterward, the reversal of impairment loss is recognized as profit. However, the carrying amount of the asset after the impairment loss is reversed shall not exceed the carrying amount of the asset from which the amortization to be allocated is subtracted before the impairment loss is recognized for the asset.

Unrealized profits or losses from downstream transactions between the Company and a subsidiary are eliminated from the parent company only financial statements. Profits or losses generated from upstream and sidestream transactions between the Company and a subsidiary are recognized in the parent company only financial statements only to the extent that the equity of the subsidiary owned by the Company is not relevant.

19 -
(7) Property, Plant and Equipment

Property, plant and equipment are recognized at cost and measured subsequently based on the amount of cost less both accumulated depreciation and accumulated impairment loss.

The self-owned land is not depreciated while each important portion of other property, plant and equipment within service life is depreciated by use of the straight line method. The Company reviews the estimated service life, residual value and depreciation method at least at the end of every year and put off the impact on applicable changes in accounting estimates.

Upon derecognition of property, plant and equipment, the difference between the net proceeds on disposal and the carrying amount of the assets is recognized in profits or losses.

(8) Intangible Assets
A. Individual Acquisition
- Intangible assets with limited service life acquired individually are originally measured at cost and measured subsequently based on the amount of cost less accumulated amortization and accumulated impairment loss. Intangible assets are amortized within service life by use of the straight line method. Estimated service life, residual value and amortization method are reviewed at least at the end of every year and the impact on applicable changes in accounting estimates is put off.
B. Derecognition
- Upon derecognition of intangible assets, the difference between the net disposal proceeds and the carrying amount to such assets is recognized in profits or losses for the current year.
(9) Impairment of Property, Plant and Equipment, Right-of-use Assets and Intangible Assets

The Company evaluates on every balance sheet date whether there is any sign indicating that property, plant and equipment, right-of-use assets or intangible assets may be impaired. In case of any sign of impairment, a recoverable amount is estimated for the assets. If a recoverable amount cannot be estimated for any individual asset, the Company will estimate the recoverable amount of the cash generating unit ("CGU") of the concerned asset. In case those corporate assets are

20 -

shared among CGUs on the basis of reasonable consensus, corporate assets shall be shared among individual CGUs. Otherwise, corporate assets shall be shared among the smallest CGU groups that are shared on the basis of reasonable consensus.

The recoverable amount is the higher of fair value less costs to sell and use value. If the recoverable amount of individual assets or CGUs is less than the carrying amount thereof, then the carrying amount of the assets or CGUs will be reduced to the recoverable amount, and the impairment loss will be recognized in profits or losses.

Upon subsequent reverse of impairment loss, the carrying amount of the assets or CGUs is increased to the revised recoverable amount. However, the increased carrying amount shall not exceed the carrying amount (less amortization or depreciation) that would be determined if the impairment loss of the assets or CGUs had not been recognized in the previous year. Reverse of impairment loss is recognized in profits or losses.

(10) Financial Instruments

Financial assets and financial liabilities are recognized in the parent company only balance sheets when the Company becomes a party to the contract concerning the instruments.

If financial assets or financial liabilities are not measured at fair value through profit or loss ("FVTPL"), the financial assets or financial liabilities, upon original recognition, are measured at fair value plus the transaction cost attributable directly to the obtained or issued financial assets or financial liabilities. The transaction cost attributable directly to the obtained or issued financial assets or financial liabilities at FVTPL is recognized as profits or losses immediately.

A. Financial Assets

Routine transactions of financial assets are recognized or derecognized on transaction date.

(A) Type of Measurement

Types of financial assets held by the Company are financial assets measured at amortized cost.

21 -

Financial Assets at Amortized Cost

Financial assets invested by the Company are classified as the financial assets measured at amortized cost if both of the following conditions are satisfied simultaneously:

a. The financial assets are possessed in a specific business model, and the model is used to acquire contractual cash flows by possessing financial assets; and
b. Cash flows generated on the specific date as provided in contractual terms are completely used for payment of principals and the interest on the outstanding principals.

After being recognized originally, the financial assets measured at amortized cost (including cash and cash equivalents, accounts receivable, and refundable deposits) are measured at the amortized cost of the total carrying amount less any impairment loss determined by the effective interest method. Foreign exchange gains or losses are recognized in profits or losses.

Interest income is computed based on the effective interest rate multiplied by the total carrying amount of financial assets, except in either of the following situations:

a. For the credit-impaired financial assets purchased or established, interest income is computed based on the effective interest rate, after credit adjustment, multiplied by the amortized cost of the financial assets.
b. If the financial assets without credit impairment upon purchase or establishment become credit-impaired subsequently, then interest income is computed based on the effective interest rate multiplied by the amortized cost of the financial assets.
Cash equivalents refer to the time deposits that are highly liquid and may be transferred to a fixed amount of cash any time with minimal risk of changes in value to fulfill short-term cash commitments.
22 -

(B) Impairment of Financial Assets

The Company evaluates impairment loss of financial assets at amortized cost (including accounts receivable) based on the expected credit loss every balance sheet date.

Loss allowances for accounts receivable are recognized based on the expected credit loss for the duration of accounts receivable. As for other financial assets, the Company determines whether credit risk increases significantly after the original recognition of such other financial assets. If the risk does not increase significantly, then loss allowances for other financial assets are recognized based on the expected credit loss for 12 months. If the risk increases significantly, loss allowances are recognized based on the expected credit loss for the duration of such other financial assets.

The expected credit loss refers to the weighted average credit loss computed by weighting the risk of a breach of contract. The expected credit loss for 12 months means the expected credit loss incurred due to violation of a financial instrument within 12 months after the date of reporting. The expected credit loss for the duration means the expected credit loss incurred due to all violations of a financial instrument for the duration of the financial instrument.

The impairment loss of all financial assets is reflected by reducing the carrying amount of the financial assets through the allowance account.

The Company derecognizes financial assets only when their rights to cash flows from financial assets under a contract expire or when financial assets have been transferred and almost all risks of ownership of the assets and payments of the assets have been transferred to other enterprises.

Upon derecognition of the entire financial assets measured at amortized cost, the difference between the carrying amount of the financial assets and the received consideration is recognized in profits or losses.

23 -

B. Equity Instruments

The equity instruments issued by the Company are classified as equity based on the substance of contractual agreements and the definition of equity instruments.

The equity instruments issued by the Company are recognized based on the obtained consideration less the cost of direct issuance.

The equity instruments of the Company taken back are recognized as and subtracted from equity. Their carrying amount is calculated in a weighted average based on types of stocks. No purchase, sale, issuance or annulment of equity instruments of the Company shall be recognized in profits or losses.

C. Financial Liabilities

(A) Subsequent Measurement

All financial liabilities of the Company are measured at amortized cost by use of the effective interest method.

(B) Derecognition of Financial Liabilities

With respect to derecognition of financial liabilities, the difference between the carrying amount and the consideration paid (including any transferred non-cash assets or assumed liabilities) is recognized as profit or loss.

(11) Revenue Recognition

After identifying its obligations under a contract made with a customer, the Company amortizes the transaction price to each obligation and recognizes revenue upon fulfillment of each obligation.

Sales Revenue

Sales revenue comes from sale of integrated circuits. When integrated circuits products are shipped, the customer has already had the right to determine the price and use the products and had the primary responsibility for resale, and shall take the risk of obsolescence of the products, so the Company recognizes revenue and accounts receivables at that point of time.

For the goods delivered to be processed, revenue is not recognized upon such delivery as the ownership of processed goods is not transferred.

24 -
(12) Lease

Upon establishment of a contract, the Company evaluates whether the contract is (or includes) a lease.

A. The Company is a lessor.

If almost all of the risks and compensation pertaining to the ownership of the assets are required to be transferred to the lessee in accordance with the terms of the lease, then the lease is classified as a financed lease. All other leases are classified as operating leases.

Lease payments less lease incentives are recognized as incomes under the operating lease for the lease period on a straight-line basis.

B. The Company is a lessee.

For other leases, right-of-use assets and lease liabilities are recognized on the date of lease commencement, except for leases of low-value assets for which exemptions can be recognized and short-term leases, in which case, lease payments are recognize as expenses for the lease period on a straight-line basis.

Right-of-use assets are originally measured at cost (including the amount of originally measured lease liabilities). They are subsequently measured based on the cost less accumulated depreciation and accumulated impairment loss, and the remeasurement of lease liabilities is adjusted accordingly. Right-of-use assets are expressed separately in the parent company only balance sheets.

Right-of-use assets are depreciated on a straight-line basis between the date of lease commencement and the expiration of the service life or expiration of the lease period, whichever comes first.

Lease liabilities are originally measured based on the current value of lease payments. If a lease implies an interest rate that can be determined easily, then lease payments are discounted at the interest rate. If the interest rate cannot be determined easily, then the lessee's incremental borrowing rate of interest is used.

25 -

After that, lease liabilities are measured at amortized cost by use of the effective interest method, and interest expenses are amortized for the leasing. If the lease period, the amount expected to be paid to the extent of the guaranteed residual value, the evaluation of call options for subject assets, or the index or rate determined for lease payments changes so that future lease payments are varied accordingly, the Company would remeasure lease liabilities and adjust right-of-use assets accordingly. However, when the carrying amount of right-of-use assets is already reduced to zero, the rest of the remeasurement amount is recognized in profits or losses. Lease liabilities are expressed separately in the parent company only balance sheets.

(13) Loan Costs

Loan costs are recognized in profit or loss for the current year when they occur.

(14) Employee Benefits
A. Short-term Employee Benefits
- Liabilities relevant to short-term employee benefits are measured based on non-discounted amounts expected to be paid to exchange for employees' service.
B. Post-employment Benefits

As for retirement pensions under the defined contribution plan, the pension amounts allocated for the period during which employees provide service are recognized as expenses.

Defined costs (including service costs, net interest and remeasurements) of the defined benefit plan are calculated by use of the projected unit credit method. Service costs (including service costs for the current year) and net interest on defined benefit liabilities (assets) are recognized as employee benefit expenses upon their occurrence. Remeasurements (including actuarial gains and losses, and return on plan asset less interest) are recognized in other comprehensive incomes or losses upon their occurrence and listed in retained earnings, and they will not be reclassified to profits or losses in a subsequent period.

Net defined benefit liabilities (assets) are allocated shortage (surplus) of the defined benefit plan. Net defined benefit assets shall not exceed the current value of the refund of contributions from the plan or the reduction in future contributions.

26 -
C. Other Long-term Employee Benefits

The accounting treatment of other long-term employee benefits is the same as that of the defined benefit plan. However, relevant remeasurements are recognized in profits or losses.

(15) Share-based Payment Arrangement

Employee stock options and employee restricted stock award shares granted by the Company to employees are recognized as expenses on a straight-line basis for the vesting period based on the fair value of equity instruments on the grant date － and the expected best estimate, and the "capital surplus employee stock options and other equity (unearned compensation)" is also adjusted simultaneously. If they are obtained immediately on the grant date, they are recognized as expenses on the grant date.

When the Company issues restricted stock award shares, other equity (employees' unearned compensation) is recognized on the grant date, and the "capital surplus － employee restricted stock award shares" is adjusted simultaneously. If such shares are issued for value and the amount of shares is agreed to be returned upon resignation of the employee, then relevant payables shall be recognized. For the grant date prior to October 10, 2024, the payables are continuously recognized based on the estimated amount after considering the turnover rate according to the Q&A issued by the FSC. If the employee who resigns within the vesting period is not required to return the dividends received already, then expenses are recognized upon announcement of the dividends to be distributed, and retain － earnings and "capital surplus employee restricted stock award shares" are adjusted simultaneously.

The Company amends the estimate of the obtained employee stock options and employee restricted stock award shares on each balance sheet date. If an originally estimated amount is amended, its effects are recognized as profits or losses so that － the accumulated expenses reflect the amended estimate. The "capital surplus － employee stock option" and "capital surplus employee restricted stock award shares" are also adjusted accordingly.

27 -

(16) Income Tax

The tax expense is the sum of current income tax and deferred tax.

A. Current Income Tax

The Company determines its incomes (losses) for the current year in accordance with the regulations enacted by the Republic of China, and calculates income tax payable (refundable) based on such incomes (losses).

The income tax on undistributed earnings computed in accordance with the Income Tax Act of the Republic of China is recognized for the year when the resolution is adopted at the shareholders' meeting.

Adjustment made for the previous year's income tax payable is listed in current income tax.

B. Deferred tax

Deferred tax is computed based on temporary differences generated from the carrying amounts of assets and liabilities and the tax base used to compute taxable income.

Deferred tax liabilities are generally recognized based on taxable temporary differences. Deferred tax assets are recognized when there may probably be taxable incomes from which the tax credits generated from temporary differences and loss carryforwards can be subtracted.

Taxable temporary differences relevant to investments in subsidiaries are recognized as deferred tax liabilities, except when the Company is able to control the point of reverse of temporary differences and the taxable temporary differences will not be reversed in the foreseeable future. Deductible temporary differences relevant to the investments are recognized as deferred tax assets only to the extent of the foreseeable reverse expected in the future when there is taxable income sufficient to realize temporary differences.

The carrying amount of deferred tax assets is reviewed again on every balance sheet date. For all or part of assets that taxable income may probably not be sufficient to recover, the carrying amount is reduced accordingly. Those that are not originally recognized as deferred tax assets are also reviewed again on every balance sheet date. The carrying amount is increased when there may be any taxable income used to recover all or part of the assets.

28 -

Deferred tax assets and liabilities are measured at the tax rate applicable to the year when liabilities are expected to be repaid or assets are expected to be realized. The interest rate refers to the interest rate determined by the tax law that is enacted or substantially enacted as of the balance sheet date. Deferred tax liabilities and assets are measured to reflect the tax consequences generated in the way that the Company expects to recover or repay the carrying amount of its assets or liabilities as of the balance sheet date.

C. Current and Deferred taxes
Current and deferred taxes are recognized in profits or losses. However, the current and deferred taxes relevant to the items recognized in other comprehensive incomes or losses or those included directly in equity are recognized in other comprehensive incomes or losses or included directly in equity respectively.

5. Main Sources of Material Accounting Judgments, Estimates and Assumption Uncertainty

For relevant information not accessible by the Company from other resources in applying accounting policies, the management must make relevant judgments, estimates and assumptions based on historical experience and other relevant factors. The actual result may probably differ from the estimate.

Main Sources of Estimates and Assumption Uncertainty

(1) Impairment of Financial Asset Estimates
Accounts receivable and liability instruments are estimated based on the assumptions of probability of default and loss-given default made by the Company. The Company considers historical experience, current market conditions and forward-looking information to make its assumptions and chooses input values for the impairment of estimates. If the actual cash flows in the future are less than those expected by the Company, a material impairment loss may occur.
29 -

(2) Impairment of Inventories

The net realizable value of inventories is an estimate of the difference obtained after the cost estimate to be spent until completion of the production and the cost estimate to be required for completion of the sale are subtracted from the selling price estimate. These estimates are evaluated based on current market conditions and historical sales of similar products. Changes in market conditions may affect these estimated results materially.

6. Cash and Cash Equivalents

these estimated results materially. Cash and Cash Equivalents
Foreign currency deposits Checking accounts and demand deposits Petty cash and cash on hand Cash equivalents Time deposits	December 31,2024 $ 61,563 51,603 468 342,900 $ 456,534	December 31,2023
			$ 63,088 32,998 434 342,700 $ 439,220

The interest rate range of cash and cash equivalents as of the balance sheet date is as follows:

follows:
Bank deposits Financial Assets at Amortized Cost Non-current Domestic investment Bond investment－P12TSMC2A	December 31,2024 0.00%~3.30% December 31,2024 $ 1,000	December 31,2023 0.1%~4.05% December 31,2023

			$ -

7. Financial Assets at Amortized Cost

On December 20, 2024, the Company purchased Taiwan Semiconductor Manufacturing Co. Ltd.'s corporate bonds with a face value of $1,000 thousand. The corporate bonds expire on May 3, 2028, and the effective interest rate is 1.60%.

Information on the credit risk management and expected credit loss assessment related to financial assets at amortized cost is provided in Note 25.

30 -

8. Accounts Receivable

Accounts Receivable
Accounts receivable－ Non-related parties Measured at amortized cost Total carrying amount Accounts receivable－Related parties Measured at amortized cost Total carrying amount	December 31,2024 $ 98,511 87,572 $ 186,083	December 31,2023
			$ 108,662 40,266 $ 148,928

The Company's average credit period for merchandise sales is 30 to 60 days per month, and accounts receivable are interest-free. The Company will rate main customers by using other publicly available financial information and historical transaction records. The Company continues monitoring credit risk exposure, and the credit rating of the counterparty to each transaction. To reduce credit risk, the management of the Company designates a team to take charge of the decision of credit line, credit approval and other monitoring procedures to ensure that proper measures are taken to recover overdue receivables. In addition, the Company also reviews recoverable amounts of receivables on a case-by-case basis on the balance sheet date to ensure that a proper amount of impairment loss is allocated for unrecoverable receivables. Accordingly, the management of the Company believes that the Company's credit risk has significantly reduced.

The Company recognizes, based on expected credit loss for the duration, the allowance for losses on accounts receivable. The expected credit loss during the life period is calculated using the reserve matrix, which takes into account the customer's past default record and the current financial position and industrial economic situation, as well as the GDP forecast and industrial outlook. Thus the provision matrix is not used to distinguish customer bases, and the expected credit loss rates are determined based on the number of days that the accounts receivable are past due.

If evidence shows that the counterparty encounters serious financial difficulties and the Company is unable to reasonably expect a recoverable amount, then the Company will write off relevant accounts receivable directly; however, claiming activities will still continue. Amounts claimed and recovered are recognized in profits.

Please refer to the following table for the analysis on aging of accounts receivable as of the end of the reporting period.

31 -

Analysis on Aging of Accounts Receivable

9.

Not overdue, and not impaired Inventories Finished goods Work in process Raw materials	December 31,2024 $ 98,511 December 31,2024 $ 93,773 343,890 171,256 $ 608,919	December 31,2023	December 31,2023
		$ 108,662 December 31,2023
			$ 86,618 300,174 155,187 $ 541,979

Cost of goods sold relevant to inventories was $858,881 thousand and $677,439 thousand respectively in 2024 and 2023.

Cost of goods sold included an inventory valuation loss $6,694 thousand and an obsolescence loss $14,560 thousand respectively in 2024 and 2023.

10. Investments Accounted for Using Equity Method

Investments in Subsidiaries Investments in Subsidiaries Leadtrend Technology (Shenzhen) Ltd. Name of subsidiary Leadtrend Technology (Shenzhen) Ltd. Leadtrend Technology (Samoa) Limited	December 31,2024 December 31,2023 $ 306,379 $ 235,499 December 31,2024 December 31,2023 $ 306,379 $ 235,499 Percentage of ownership interest and voting rights December 31,2024 December 31,2023 100% 100% - -	December 31,2024 December 31,2023 $ 306,379 $ 235,499 December 31,2024 December 31,2023 $ 306,379 $ 235,499 Percentage of ownership interest and voting rights December 31,2024 December 31,2023 100% 100% - -	December 31,2024 December 31,2023 $ 306,379 $ 235,499 December 31,2024 December 31,2023 $ 306,379 $ 235,499 Percentage of ownership interest and voting rights December 31,2024 December 31,2023 100% 100% - -

		December 31,2024 100% -	December 31,2023
			100% -

Leadtrend Technology (Samoa) Limited was liquidated and had registration nullified in November 2023, and returned the invested amount to the Company.

Share of the current profit or loss and other comprehensive incomes of subsidiaries accounted for using the equity method for 2024 and 2023 were recognized based on the financial statements of each subsidiary audited by CPAs for the same periods.

32 -

11. Property, Plant and Equipment

Self-used

Co		Land		Buildings		R&D equipment		Office equipment	Molding equipment		Lease improvements		Mask		Total
	(	$ 84,099 - - $ 84,099 $ - - - $ - $ 84,099 $ 86,200 - 2,101) $ 84,099 $ - - - $ - $ 84,099	( (	$ 298,083 - - $ 298,083 $ 58,980 9,147 - $ 68,127 $ 229,956 $ 304,083 1,055 7,055) $ 298,083 $ 50,764 9,199 983) $ 58,980 $ 239,103	( ( ( (	$ 278,309 2,119 1,076) $ 279,352 $ 204,360 22,075 1,076) $ 225,359 $ 53,993 $ 271,094 7,511 296) $ 278,309 $ 180,764 23,892 296) $ 204,360 $ 73,949	( ( ( (	$ 32,098 3,527 351) $ 35,274 $ 27,323 2,829 351) $ 29,801 $ 5,473 $ 31,544 771 217) $ 32,098 $ 24,358 3,168 203) $ 27,323 $ 4,775	$ 26,663 - - $ 26,663 $ 25,449 679 - $ 26,128 $ 535 $ 26,082 581 - $ 26,663 $ 24,610 839 - $ 25,449 $ 1,214	( (	$ 21,084 3,721 - $ 24,805 $ 16,709 1,948 - $ 18,657 $ 6,148 $ 22,475 121 1,512) $ 21,084 $ 16,549 1,306 1,146) $ 16,709 $ 4,375	( (	$ 245,857 29,347 - $ 275,204 $ 221,459 19,813 - $ 241,272 $ 33,932 $ 275,274 20,063 49,480) $ 245,857 $ 239,033 31,907 49,481) $ 221,459 $ 24,398	( ( ( (	$ 986,193 38,714 1,427) $ 1,023,480 $ 554,280 56,491 1,427) $ 609,344 $ 414,136 $ 1,016,752 30,102 60,661) $ 986,193 $ 536,078 70,311 52,109) $ 554,280 $ 431,913
Bal Inc De Bal Ac
Bal Inc De Bal Net Co
Bal Inc De Bal Ac
Bal Inc De Bal Net

No impairment loss was recognized or reversed in 2024 and 2023.

Depreciation expenses are allocated on a straight-line basis based on the following service lives:

s:
Buildings	10~50 years
R&D equipment	3~8 years
Office equipment	4 ~ 9 years
Molding equipment	3 years
Lease improvements	2 ~ 6 years
Mask	2 ~ 3 years

12. Lease Agreement

(1) Right-of-use Assets

Agreement Right-of-use Assets
Carrying amount of right-of-use assets Buildings Added right-of-use assets Depreciation expenses for right-of-use assets Buildings	December 31,2024 $ 27,722 2024 $ 24,504 $ 8,947	December 31,2023
			$ 12,165 2023
			$ 6,156 $ 8,888

33 -

(2) Lease Liabilities

Lease Liabilities
Carrying amount of lease liabilities Current Non-current	December 31,2024 $ 9,266 $ 18,811	December 31,2023
			$ 8,430 $ 4,232

The range of discount rates for lease liabilities is as follows:

Buildings	December 31,2024 1.96%~2.24%	December 31,2023
		1.96%~2.10%

(3) Important Lease Activities and Terms

The Company has leased several buildings for office use for 3~5 years. The Company does not have the right of first refusal for the buildings leased by the Company upon expiration of a lease period. It has been agreed that the Company shall not relent or assign the whole or part of the leased buildings to third parties without the consent of a lessor.

(4) Other Lease Information

without the consent of a lessor. Other Lease Information
Short-term lease expenses Low-value asset lease expenses Total cash (used in) leases		2024 $ 45 $ 27 $ 9,379)		2023
	(		(	$ 1,103 $ 54 $ 10,055)

The Company chooses to recognize exemptions applicable to the office equipment that is in line with short-term leases and the office equipment rental that is in line with low-value asset leases, and does not recognize right-of-use assets or lease liabilities relevant to such leases.

34 -

13. Intangible Assets

Intangible Assets
Cost Balance at January 1, 2024 Increase Balance at December 31, 2024 Accumulated amortization Balance at January 1, 2024 Increase Balance at December 31, 2024 Net at December 31, 2024 Cost Balance at January 1, 2023 Increase Balance at December 31, 2023 Accumulated amortization Balance at January 1, 2023 Increase Balance at December 31, 2023 Net at December 31, 2023		Computer software $ 102,421 1,332 $ 103,753 $ 95,865 4,145 $ 100,010 $ 3,743 $ 100,064 2,357 $ 102,421 $ 92,181 3,684 $ 95,865 $ 6,556		Specialized technology $ 33,434 1,254 $ 34,688 $ 32,979 1,605 $ 34,584 $ 104 $ 27,972 5,462 $ 33,434 $ 26,984 5,995 $ 32,979 $ 455		Right of Patent $ 8,383 - $ 8,383 $ 4,262 838 $ 5,100 $ 3,283 $ 8,383 - $ 8,383 $ 3,425 837 $ 4,262 $ 4,121		Others $ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ - $ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ -		Total
										$ 147,160 2,586 $ 149,746 $ 136,028 6,588 $ 142,616 $ 7,130 $ 139,341 7,819 $ 147,160 $ 125,512 10,516 $ 136,028 $ 11,132

Amortization expenses are allocated for the aforementioned intangible assets on a straight-line basis based on the following service lives:

Computer software	3~6 years
Specialized technology	5 years
Right of patent	10 years
Others	3~5 years

14. Other Assets

Other Assets
Current Temporary payments Prepayment for purchases Income tax refund receivable Tax overpaid retained for offsetting the future tax payable Others Non-current Refundable deposits Prepayment for patent right Prepayment for equipment	December 31,2024 $ 3,463 2,691 1,321 - 4,147 $ 11,622 $ 2,630 2,567 1,854 $ 7,051	December 31,2023
			$ 993 4,396 813 1 8,157 $ 14,360 $ 2,491 - 2,781 $ 5,272

35 -

15. Loan

Long-term Loans

Loan Long-term Loans
Unsecured borrowing Bank loan (Note 1) Less: portion due within one year. Long-term Loans	December 31,2024 $ 35,000 (10,208) $ 24,792	December 31,2023 $ - - $ -
			$ - - $ -

(1) This bank loan is a government preferential interest rate loan for the "Ministry of Economic Affairs' project to assist small and medium-sized enterprises in the low-carbon and smart transformation and development and management of factories and specific factory infrastructure optimization projects". The subsidy period is 1 year and will be continued before May 2027. At maturity, the interest rate is 2.22% bank borrowing rate minus 1.72% government subsidy interest rate, so the borrowing interest rate is 0.5%.

16. Other Current Liabilities

interest rate is 0.5%. Other Current Liabilities
Bonuses payable Unused leave payments Professional service fees payable Insurance premium payable Payables on equipment Others	December 31,2024 $ 40,090 6,009 4,012 3,864 3,599 13,964 $ 71,538	December 31,2023
			$ 32,305 5,273 3,296 3,853 - 16,185 $ 60,912

17. Post-employment Benefit Plan

(1) Defined Contribution Plan

The retirement pension system provided in the Labor Pension Act, which is applicable to the Company, refers to the defined contribution plan managed by the government. The 6% of the monthly wages of an employee is allocated to the specific account of the individual with Bureau of Labor Insurance.

36 -

(2) Defined Welfare Plan

The retirement pension system adopted by the Company in accordance with the Labor Standards Act of the Republic of China is the defined benefit plan managed by the government. The retirement pension to an employee is computed based on the employee's service time and average wage of the 6 months immediately before the date of retirement approval. The Company allocates the 2% of the monthly wages of an employee to the employee's retirement funds and transfers it to Supervisory Committee of Business Entities' Labor Retirement Reserve. Then the committee deposits it to the specific account with Bank of Taiwan in the name of the committee. If the balance of the specific account at the end of a fiscal year is estimated not to be enough to be paid to the employees who will meet the requirements of retirement in the next year, the difference will be allocated in full by the end of March in the next year. This special account is entrusted by the Labor Fund Management Bureau of the Ministry of Labor, and the Company has no right to affect the investment management strategy.

The Company reached an agreement with employees in August 2023 to settle the years of service accumulated in the old system and settle pension amounts in accordance with relevant regulations. Such settlement was approved by the competent authority. The Company was under no obligation to pay either the balance recovered from the specific pension accounts or the carrying amount of net defined benefit liability. The balance and the carrying amount were transferred to income. Such income, totaling $15,045 thousand, was listed as other income. Please refer to Note 21(2) Other Income.

18. Equity

(1) Stock Capital

Common Shares

Stock Capital Common Shares
Authorized number of shares (In thousand shares) Authorized stock capital Number of issued and paid-in shares (In thousand shares) Issued stock capital	December 31,2024 200,000 $ 2,000,000 60,442 $ 604,421	December 31,2023
			200,000 $ 2,000,000 58,918 $ 589,178

37 -

Common shares are issued with par value $10. A shareholder is entitled to one vote for each share the shareholder holds, and has the right to receive dividends. The stock capital in authorized stock capital surplus for issuance of employee stock options was 7,800 thousand shares.

(2) Capital reserve

Capital reserve
Used to cover losses, distribute cash or allocate capital stock(A.) Additional paid-in capital in excess of par (including exercised or invalid employee stock options) Donations received from shareholders (B.) Used to make good of losses only Others Not used for any purpose Employee restricted stock award shares	December 31,2024 $ 250,212 84,732 131 61,218 $ 396,293	December 31,2023
			$ 254,672 84,732 125 50,306 $ 389,835

A. Such capital surplus may be used to make good of loss, and may also be used to distribute cash or expand stock capital when the Company does not have a loss; however, the amount used to expend stock capital is limited to a certain percentage of the paid-in capital.
B. It was cash given as a gift by Delaware Asia Pacific Investment Corp.
(3) Retained Earnings and Dividend Policies
According to the earning distribution policy provided by the Company's articles of incorporation, net profits after tax at the final settlement of each fiscal year, if any, shall be allocated, in the following order, for:
A. Making good of accumulated loss (including adjustment of the amount of undistributed earnings);
B. Setting aside 10% as legal reserve; however, no legal reserve shall be allocated if the total legal reserve has reached the amount of the paid-in capital of the Company;
C. Allocating or reversing special reserve in accordance with statutes or as required by the competent authority.
38 -
D. The rest of profits together with the undistributed earnings at the beginning of the year (including the adjusted amount of undistributed earnings), for which the board of directors shall prepare a proposal of earning distribution, to be distributed by means of issuance of new shares, are distributed after being resolved at the shareholders' meeting.

In case that the Company distributes the whole or part of dividends and bonuses or legal reserve and capital surplus in cash, the distribution shall be adopted only when more than two-thirds of directors are present at the board meeting and more than half of the directors present approve, and shall be reported at the shareholders' meeting.

For the policy of the allocation of remunerations to employees and directors as stated in the Company's articles of incorporation, refer to Note 21(7) Remunerations to Employees and Directors.

Dividends are distributed by the Company based on the status of earnings for the current year, including distributable earnings, capital surplus and other sources distributable in accordance with laws. The percentage of total distributions shall not be less than 30% of the profit after tax for the current year. Cash dividends distributed every year shall not be less than 10% of the total of the cash dividends and stock dividends distributed for the current year.

Legal reserve shall be allocated until the balance thereof reaches the total paid-in capital of the Company. Legal reserve may be used to make good of loss. When the Company has no loss, the portion of legal reserve in excess of 25% of paid-in capital can be used to expand stock capital or be distributed in cash.

The Company's earnings distribution plans for 2023 and 2022 are as follows:

Legal reserve allocated Special reserve allocated Cash dividends Stock dividends Cash dividends per share (NTD) Stock dividends per share (NTD)		2023 $ 2,887 $ 786 $ - $ 11,638 $ - $ 0.200		2022
				$ 15,491 $ - $ 31,286 $ 17,065 $ 0.550 $ 0.300

39 -

In addition, on April 11, 2024, the board of directors of the Company decided to distribute cash dividends of $23,275 thousand ($0.4 per share) from the capital surplus of 2023. Besides the cash dividends, the remaining surplus distribution items were also decided at the regular meeting of shareholders on May 28, 2024. The board of directors of the Company resolved on May 2, 2023 that the capital surplus of 2022 should be used to distribute cash dividends $19,909 thousand ($0.350 per share). In addition to cash dividends, other earning distribution items were already resolved at the general meeting of shareholders held on June 13, 2023.

(4) Other Components of Equity

A. Exchange differences on translating the financial statements of foreign operations

operations
Balance at January 1 Generated in the current year Differences on translating foreign operations Reclassification adjustment Disposal of the share of subsidiaries accounted for using equity method Other comprehensive incomes (losses) for the current year Balance at December 31		2024 $ 786) 10,757 - 10,757 $ 9,971		2023
	(		$ 5,602 ( 5,249 ) ( 1,139) ( 6,388) ($ 786)

Exchange differences arising on translating the net assets of foreign operations in the functional currency to those in the presentation currency used by the Company (i.e. NTD) are recognized directly as "exchange differences on translation of financial statements of foreign operations" under other comprehensive incomes. The previously accumulated exchange differences on translation of financial statements of foreign operations are reclassified as profits or losses upon disposal of the foreign operations.

40 -

B. Employees' Unearned Compensation

Issuance of restricted stock award shares was resolved at the shareholders' meeting of the Company held on May 28, 2024, June 13, 2023, June 9, 2022 and June 23, 2020 respectively. For relevant explanation, please refer to Note

9.
Balance at January 1 Granted for the current year Recognized share-based payment expenses Revoked and cancelled in the year Balance at December 31	2024 ( $ 35,803 ) ( 37,128 ) 23,454 3,796 ($ 45,681)	2023
		( $ 31,945 ) ( 27,930 ) 18,710 5,362 ($ 35,803)

19. Share-based Payment

Employee Restricted Stock Award Shares

Information relevant to the employee restricted stock award shares issued by the Company is as follows:

Date of approval by the shareholders' meeting 2020.06.23 2020.06.23 2022.06.09 2023.06.13 2024.05.28	Shares expected to be issued (In thousand shares) 1,200 1,200 420 420 420	Shares resolved by the board of directors (In thousand shares) 900 300 420 420 420	Grant date 109.09.11 110.08.03 111.10.07 112.10.06 113.10.08	Base date for capital increase 109.11.06 110.08.03 111.10.12 112.10.11 113.10.09	Number of actually issued shares (In thousand shares) 900 300 420 420 420	Fair value on the grant date
						34.35 122 47.1 66.5 88.4

Issuance of restricted stock award shares in a total amount of $12,000 thousand was resolved at the shareholders' meeting of the Company on June 23, 2020. A total of 1,200 thousand shares were issued. Issuance regulations are summarized as follows:

Employees to whom restricted stock award shares have been allocated shall satisfy the Personal Performance requirement by obtaining the result of "Satisfactory" or above in the latest personal performance assessment prior to the vesting date. If the employees still work at the Company upon expiration of any of the following vesting periods, they will receive award shares at the granting ratio as scheduled below:

41 -

Vesting period From the grant date to Oct. 15 of the 1st year following the grant date From the grant date to Apr. 15 of the 2nd year following the grant date From the grant date to Oct. 15 of the 2nd year following the grant date From the grant date to Apr. 15 of the 3rd year following the grant date From the grant date to Oct. 15 of the 3rd year following the grant date From the grant date to Apr. 15 of the 4th year following the grant date	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

Vesting period
From the grant date to Oct. 15 of the
1st year following the grant date
From the grant date to Apr. 15 of the
2nd year following the grant date
From the grant date to Oct. 15 of the
2nd year following the grant date
From the grant date to Apr. 15 of the
3rd year following the grant date
From the grant date to Oct. 15 of the
3rd year following the grant date
From the grant date to Apr. 15 of the
4th year following the grant date

Grantingratio

1/6
1/6
1/6
1/6
1/6
1/6

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

(1) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees (for the current year) and have not vested in the employees.
(2) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(3) The Company will give to the employees, without payment, the dividends allocated based on the award shares prior to the expiration of the vesting period.
(4) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.
The restricted stock award shares taken back by the Company without payment will be revoked by the Company.
42 -

Shares granted under the aforementioned stock option plan are summarized as follows:

2024 Outstanding at the beginning of the year Vested for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value 2023 Outstanding at the beginning of the year Vested for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value	Employee restricted stock award shares for 2020-1 Unit(Thousand) 132.0 ( 132.0 ) - - $ 34.35 424.5 ( 266.5 ) ( 26.0) 132.0 $ 34.35	Employee restricted stock award shares for 2020-2
		Unit(Thousand)
		105.0 ( 68.5 ) ( 3.0) 33.5 $ 122 192.5 ( 69.5 ) ( 18.0) 105.0 $ 122

Issuance of restricted stock award shares in a total amount of $4,200 thousand was resolved at the shareholders' meeting of the Company on June 9, 2022. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

Employees to whom restricted stock award shares have been allocated shall satisfy the Personal Performance requirement by obtaining the result of "Satisfactory" (i.e. a performance assessment scale score ≧5.8) or above in the latest personal performance assessment prior to the vesting date. If the employees still work at the Company upon expiration of any of the following vesting periods, they will receive award shares at the granting ratio as scheduled below:

granting ratio as scheduled below:
Vesting period From the grant date to Oct. 11 of the 1st year following the grant date From the grant date to Apr. 11 of the 2nd year following the grant date From the grant date to Oct. 11 of the 2nd year following the grant date From the grant date to Apr. 11 of the 3rd year following the grant date From the grant date to Oct. 11 of the 3rd year following the grant date From the grant date to Apr. 11 of the 4th year following the grant date	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

granting ratio as scheduled below:

Vesting period
From the grant date to Oct. 11 of the
1st year following the grant date
From the grant date to Apr. 11 of the
2nd year following the grant date
From the grant date to Oct. 11 of the
2nd year following the grant date
From the grant date to Apr. 11 of the
3rd year following the grant date
From the grant date to Oct. 11 of the
3rd year following the grant date
From the grant date to Apr. 11 of the
4th year following the grant date

Grantingratio

1/6
1/6
1/6
1/6
1/6
1/6

43 -

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

(1) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees (for the current year) and have not vested in the employees.
(2) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(3) The employees are not entitled to any stocks, cash dividends or capital surplus allocated before the expiration of the vesting period.
(4) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.
The restricted stock award shares taken back by the Company without payment will be revoked by the Company.

Shares granted under the aforementioned stock option plan are summarized as follows:

2024 Outstanding at the beginning of the year Vested for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value 2023 Outstanding at the beginning of the year Vested for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value	Employee restricted stock award shares for 2022
	Unit(Thousand)
	292.5 ( 117.0 ) ( 4.5) 171.0 $ 47.1 420.0 ( 61.5 ) ( 66.0) 292.5 $ 47.1

44 -

Issuance of restricted stock award shares in a total amount of $4,200 thousand was resolved at the shareholders' meeting of the Company on June 13, 2023. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

granting ratio as scheduled below:
Vesting period From the grant date to Oct. 11 of the 1st year following the grant date From the grant date to Apr. 11 of the 2nd year following the grant date From the grant date to Oct. 11 of the 2nd year following the grant date From the grant date to Apr. 11 of the 3rd year following the grant date From the grant date to Oct. 11 of the 3rd year following the grant date From the grant date to Apr. 11 of the 4th year following the grant date	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

granting ratio as scheduled below:

Grantingratio

1/6
1/6
1/6
1/6
1/6
1/6

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

(1) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees (for the current year) and have not vested in the employees.
(2) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(3) The employees are not entitled to any stocks, cash dividends or capital surplus allocated before the expiration of the vesting period.
45 -
(4) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.
The restricted stock award shares taken back by the Company without payment will be revoked by the Company.

Shares granted under the aforementioned stock option plan are summarized as follows:

2024 Outstanding at the beginning of the year Vested for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value 2023 Outstanding at the beginning of the year Granted for the current year Outstanding at the end of the year Granted weighted average fair value	Employee restricted stock award shares for 2023
	Unit(Thousand)
	420.0 ( 63.5 ) ( 39.0) 317.5 $ 66.5 - 420 420 $ 66.5

Issuance of restricted stock award shares in a total amount of $4,200 thousand was resolved at the shareholders' meeting of the Company on May 28, 2024. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

46 -

Vesting period From the grant date to Oct. 11 of the 1st year following the grant date From the grant date to Apr. 11 of the 2nd year following the grant date From the grant date to Oct. 11 of the 2nd year following the grant date From the grant date to Apr. 11 of the 3rd year following the grant date From the grant date to Oct. 11 of the 3rd year following the grant date From the grant date to Apr. 11 of the 4th year following the grant date	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

Grantingratio

1/6
1/6
1/6
1/6
1/6
1/6

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

(1) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees and have not vested in the employees.
(2) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(3) The employees are not entitled to any stocks, cash dividends or capital surplus allocated before the expiration of the vesting period.
(4) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.
The restricted stock award shares taken back by the Company without payment will be revoked by the Company.
47 -

Shares granted under the aforementioned stock option plan are summarized as follows:

2024 Outstanding at the beginning of the year Granted for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value	Employee restricted stock award shares for 2024	Employee restricted stock award shares for 2024
	Unit(Thousand)
	(	- 420.0 6.0) 414.0 $ 88.4

Due to resignation of employees, 52.5 thousand and 100 thousand restricted stock award shares were recovered in 2024 and 2023 respectively, and there were 10.5 thousand and 17.5 thousand shares among such recovered shares to be revoked.

The compensation cost recognized for restricted stock award shares in 2024 and 2023 was $23,454 thousand and $18,710 thousand respectively.

20. Operating Revenue

Operating Revenue
Revenue from contracts with customers Integrated circuits		2024 $ 1,299,376		2023
				$ 1,027,136

(1) Contract Balance

Contract Balance
Accounts receivable (including those from related parties) (Note 8)	December 31, 2024 $ 186,083	December 31, 2023 $ 148,928		January 1, 2023
				$ 132,666

(2) Itemized Revenue from Contracts with Customers

Itemized by Areas

Itemized by Areas
Taiwan (where the Company is located) Mainland China Korea Other countries		2024 $ 743,258 553,440 2,678 - $ 1,299,376		2023
				$ 598,364 419,849 2,187 6,736 $ 1,027,136

48 -

		2023
	$	3,883 25 36 129 4,073 2023
	$

		$ 2,188 16,189 $ 18,377 2023
( $ $		199 ) 1,843 1,139 2,783 2023
	$

		$ 337 - 1 $ 338 2023
		$ 18,501 60,698 $ 79,199 $ 1,177 9,339 $ 10,516

49 -

(6) Employee Benefit Expenses

Employee Benefit Expenses
Post-employment benefits Defined contribution plan Defined benefit plan (Note 17) Share-based payment (Note 19) Equity settlement Other employee benefits Total employee benefit expenses By functions: Operating costs Operating expenses		2024 $ 10,635 - 10,635 23,454 303,562 $ 337,651 $ 51,861 285,790 $ 337,651		2023
				$ 10,922 216 11,138 18,710 257,948 $ 287,796 $ 44,750 243,046 $ 287,796

(7) Remunerations to Employees and Directors

The Company allocated employees' remuneration and directors' remuneration, from its profit computed before deduction of employees' remuneration and directors' remuneration, at a rate no less than 5% and at a rate no more than 2% respectively in accordance with the articles of incorporation. The remunerations to employees and directors estimated for the years 2024 and 2023 were resolved at the board meeting on February 20, 2025 and February 29, 2024 respectively as follows:

Estimated Percentage

follows: Estimated Percentage
Remuneration to employees Remuneration to directors	2024 16% 1%	2023
		17% 2%

Amount

Amount
Remuneration to employees Remuneration to directors	2024 Cash Stock $ 21,147 $ - 1,895 -	2023
	Cash	Cash	Stock $ - -
	$ 21,147 1,895	$ 5,197 489

If any amount is changed after the date when the annual parent company only financial report is announced, then such change is treated as a change in accounting estimate and entered into the account for the following year after adjustment.

50 -

There is no difference between the amount of the employees' remuneration and directors' remuneration distributed actually for the years 2023 and 2022 and the corresponding amount recognized in the parent company only financial statements of the years 2023 and 2022.

For information of the remunerations to employees and directors resolved by the board of directors of the Company, please check at the market observatory post system of Taiwan Stock Exchange.

(8) Foreign Exchange Gain (Loss)

system of Taiwan Stock Exchange. Foreign Exchange Gain (Loss)
Total foreign exchange gains Total foreign exchange losses Net gain (loss)	(	2024 $ 18,470 4,809) $ 13,661	( (	2023
				$ 14,756 14,955) $ 199)

22. Income Tax

(1) Income Tax Recognized in Profit or Loss

The tax benefits mainly comprise the items listed as follows:

		2024		2023
Current income tax
Incurred for the current year		$ 4,972		$ 1,321
Undistributed surplus
earnings additional		678		-
Adjusted for the previous
year	(	9,894)	(	5,013)
	(	4,244 )	(	3,692 )
Deferred tax
Incurred for the current year		876	(	450)
Tax benefits recognized in
profit or loss	(	$ 3,368)	(	$ 4,142)

51 -

The accounting income and the tax benefits are reconciled as follows:

		2024		2023
Net profit before income tax
of continuing operations		$ 108,521		$ 24,722
Tax expense computed based
on the net profit before
income tax at the legal tax
rate		$ 21,704		$ 4,944
Permanent difference	(	21,347 )	(	7,616 )
Effect of temporary
difference		5,491		3,543
Undistributed surplus
earnings additional		678			-
Current adjustment of the tax
expense of the previous
year	(	9,894)	(	5,013)
Tax benefits recognized in
profit or loss	(	$ 3,368)	(	$ 4,142)

(2) Current Tax Liabilities

Current Tax Liabilities
Current tax liabilities Income tax payable	December 31,2024 $ 6,242	December 31,2023
			$ 10,844

(3) Deferred Tax Assets and Liabilities

Changes in deferred tax assets and liabilities are as follows:

2024

2024
Deferred tax assets Temporary difference Deferred tax liabilities	Beginning balance $ 541 Beginning balance		Changes for the year ($ 541) Changes for the year $ 335 Changes for the year $ 450			Endingbalance
						$ - Endingbalance

Temporary difference 2023 Deferred tax assets		$ - Beginning balance		$ 335 Changes for the year		$ 335 Endingbalance
Temporary difference		$ 91			$ 450		$ 541

(4) Income Tax Assessment

The Company's profit-seeking business income tax declaration cases as of 2022 have been approved by the tax authority.

52 -

23. Earnings Per Share

Earnings Per Share
Basic earnings per share Diluted earnings per share		2024 $ 1.89 $ 1.86	Unit: NTD per share 2023
				$ 0.49 $ 0.48

The effect of stock grants was retroactively adjusted already in calculating earnings per share. The base date for stock grants was determined to be July 17, 2024. Due to retroactive adjustment, changes in basic and diluted earnings per share for 2023 are as follows:

follows:
Basic earnings per share Diluted earnings per share	Before retroactive adjustment $ 0.50 $ 0.49	Unit: NTD per share After retroactive adjustment
			$ 0.49 $ 0.48

Both the net profit and the weighted average number of common shares outstanding that were used to calculate earnings per share are disclosed as follows:

Net profit for the year Net profit used to calculate basic and diluted earnings per share Number of Shares Unit: In thousand shares Weighted average number of common shares outstanding used to calculate basic earnings per share Impact of potential common shares with dilutive effect: Employee restricted stock award shares Remuneration to employees Weighted average number of common shares outstanding used to calculate diluted earnings per share		2024 $ 111,889 2024 59,309 452 322 60,083		2023
				$ 28,864 2023
				58,858 718 188 59,764

53 -

If the Company chooses to distribute employees' remuneration in stock or cash, then for calculation of diluted earnings per share, employees' remuneration is assumed to be distributed in stock and the weighted average number of common shares outstanding is included when potential common shares have dilutive effect. When calculating diluted earnings per share before the number of shares distributed as employees' remuneration is resolved at the shareholders' meeting in the next year, the Company will continue to consider dilutive effect of the potential common shares.

24. Capital Risk Management

The Company conducts capital management to ensure the maximum of return on equity on the premise that the Company operates on an ongoing basis. No significant changes in the overall strategy of the Company.

The capital structure of the Company comprises stock capital, capital surplus, retained earnings and other components of equity.

The Company is not required to meet other external capital requirements.

25. Financial Instruments

(1) Information of Fair Value - Financial Instruments Not Measured at Fair Value
Except for the items listed in the table below, the management of the Company believes that the carrying amounts of the financial assets and financial liabilities not measured at fair value are close to their fair value:

December 31, 2024

December 31, 2024
Financial assets Financial assets at amortized cost - Domestic corporate bonds	Carrying amount $ 1,000		Fair value
		Level 1 $ -	Level 2 $ 994	Level 3 $ -	Total
					$ 994

The fair value measurement of Level 2 mentioned above is based on the quotation of the Taipei Exchange.

54 -

(2) Types of Financial Instruments

Types of Financial Instruments
Financial assets Financial assets at amortized cost Cash and cash equivalents Accounts receivable Accounts receivable－Related parties Non-current financial assets at amortized cost Refundable deposits Financial liabilities Measured at amortized cost Accounts payable (including those from related parties) Long-term loans (including due within one year) Guarantee deposits received	December 31,2024 $ 456,534 98,511 87,572 1,000 2,630 96,424 35,000 126	December 31, 2023
		$ 439,220 108,662 40,266 - 2,491 94,183 - 232

(3) Purpose and Policy of Financial Risk Management

Main financial instruments of the Company include accounts receivable (including those from related parties), refundable deposits, loans, accounts payable (including those from related parties) and lease liabilities. The financial risk management objective of the Company is to manage the exchange rate risk, interest rate risk, credit risk and liquidity risk relevant to operating activities. For reducing relevant financial risks, the Company is committed to identifying, evaluating and avoiding market uncertainties to reduce the potential negative impact of market changes on the financial performance of the Company.

Important financial activities of the Company are reviewed by the board of directors pursuant to applicable regulations and internal control systems. During the implementation of the financial plan, the Company shall comply with applicable financial operating procedures for overall financial risk management and division of powers and responsibilities.

A. Market Risk

Main financial risks assumed by the Company for its operating activities are exchange rate risk (as stated in (A) below) and interest rate risk (as stated in (B) below).

55 -

The Company does not change the methods that it has adopted to manage and measure risk exposure with respect to market risk for financial instruments.

(A) Currency Risk

Part of cash used or generated by the Company is in foreign currencies, so the effect of natural hedge exists. The Company manages exchange rate risk just for the purpose of hedging, not for profit.

The exchange rate risk management strategy is established to review net positions of various currency assets and liabilities, and conduct risk management on net positions.

For carrying amounts of monetary assets and monetary liabilities of the Company in non-functional currencies on the balance sheet date, please refer to Note 28.

Net investments made by foreign operations of the Company are strategic investments; therefore, the Company does not hedge investment risk.

Sensitivity Analysis

The Company is mainly impacted by fluctuation of USD and CNY exchange rates.

The table below shows the Company’s sensitivity analysis for the situations when the exchange rate of the NTD (the functional currency) to each foreign currency increases or decreases by 5%. Sensitivity analysis considers outstanding foreign currency monetary items, and the conversion made at the end of the period is adjusted by 5% exchange rate fluctuation. The scope of sensitivity analysis includes cash and cash equivalents, accounts receivable (including those from related parties), other receivables (including those from related parties), accounts payable and other payables. The positive number in the table below shows the amount increasing in the pretax net profit when the NTD against each foreign currency depreciates by 5%. If the NTD against each foreign currency appreciates by 5%, the impact on the pretax net profit will be a negative of the same amount.

Profit (loss) before tax	Effect of USD 2024 2023 $ 3,950 $ 4,035	Effect of CNY	Effect of CNY
	2024 $ 3,950	2024 $ 4,502	2023
			$ 2,503

56 -

Effects mainly derived from the receivables and payables in USD and CNY which were still outstanding on the balance sheet date and of which the cash flows were not hedged by the Company.

The Company's sensitivity to the USD exchange rate decreased for the current period. It was mostly because the balance of accounts receivable in USD decreased so that net USD assets decreased at the end of the year. Increase in sensitivity to the CNY exchange rate was mostly because accounts receivable in CYN increased so that net CNY assets increased at the end of the year.

(B) Interest Rate Risk

As the Company possesses fixed rate and floating rate assets, interest rate risk exposure is therefore incurred.

The carrying amounts of financial assets of the Company exposed to interest rate risk on the balance sheet date are as follows:

With fair value interest rate risk －Financial assets －Financial liabilities With cash flow interest rate risk －Financial assets	December 31,2024 $ 342,900 63,077 113,166	December 31,2023
		$ 342,700 12,662 96,086

Sensitivity Analysis

The following sensitivity analysis is determined based on interest rate exposure with respect to non-derivative instruments on the balance sheet date. For the assets with floating interest rates, the analysis is made based on the assumption that the assets outstanding on the balance sheet date are still outstanding during the reporting period.

If the interest rate is increased/decreased by 0.1%, then in the situation where all other variables remain unchanged, the pretax net profit for 2024 and 2023 would increase/decrease by $113 thousand and $96 thousand, which is due to the Company's interest rate exposure with respect to net assets with variable interest rates.

57 -

B. Credit Risk

Credit risk refers to the risk incurred when the counterparty to a transaction delays its contractual obligations and thus causes financial loss of the Company. As of the balance sheet date, the maximum credit risk to which the Company was exposed due to possible failure by the counterparty to perform its obligations so as to cause a financial loss of the Company mainly results from the carrying amounts of financial assets recognized in the parent company only balance sheets.

To mitigate credit risk, the management of the Company has designated a team to take charge of the decision of credit line, credit approval and other monitoring procedures to ensure that proper measures are taken to recover overdue receivables. In addition, the Company also reviews recoverable amounts of receivables on a case-by-case basis on the balance sheet date to ensure that a proper amount of impairment loss is allocated for unrecoverable receivables. Accordingly, the management of the Company believes that the Company's credit risk has significantly reduced.

The entities from which accounts receivable shall be collected cover many customers engaging in different industries and located in different geographical areas. The Company continues evaluating financial conditions of each customer from which accounts receivable shall be collected.

Except for Customer A, Customer B and Customer C as described below, the Company does not have a material credit risk against any single trading party or any set of trading parties with similar characteristics. When the trading parties are related enterprises to each other, the Company defines them as the trading parties with similar characteristics. As of December 31, 2024, no credit risk focusing on counterparties, except Customers A, Customer B, and Customer C, exceeded 5% of the total accounts receivable. However, as Customers A, Customer B, and Customer C are reputable entities, credit risk is therefore limited.

C. Liquidity Risk

The Company keeps successful business operation and mitigates the impact of cash flow fluctuation by managing and maintaining sufficient cash and cash equivalents.

58 -

(A) Liquidity of Non-derivative Financial Liabilities

The table below shows the maturity analysis for the remaining contracts of non-derivative financial liabilities, which is conducted based on the undiscounted cash flows of financial liabilities, including cash flows of interest and principal, on the earliest date that the Company is requested to make the repayment.

December 31, 2024

Accounts payable (including those from related parties) Lease liabilities Fixed rate instruments Other current liabilities	Payable upon demand or less than 1 month $ 60,652 $ 816 $ - $ 8,168	1~3 months $ 35,772 $ 1,632 $ - $ 8,312	3 months~ 1 year $ - $ 7,343 $ 10,208 $ -		1~5years $ - $ 19,235 $ 24,792 $ -		Total
							$ 96,424 $ 29,026 $ 35,000 $ 16,480

Further information regarding the maturity analysis for the aforementioned financial liabilities is as follows:

financial liabilities is	as	follows:
Lease liabilities Fixed rate instruments		Less than 1 year $ 9,791 10,208 $ 19,999		1～5years $ 19,235 24,792 $ 44,027	Over 5years
						$ - - $ -

December 31, 2023

Accounts payable Lease liabilities Other current liabilities	Payable upon demand or less than 1 month $ 60,587 $ 772 $ 13,175	1~3 months $ 33,596 $ 1,544 $ 5,613	3 months~ 1 year $ - $ 6,286 $ -		1~5years $ - $ 4,370 $ -		Total
							$ 94,183 $ 12,972 $ 18,788

Further information regarding the maturity analysis for the aforementioned financial liabilities is as follows:

==> picture [361 x 40] intentionally omitted <==

59 -

26. Transactions with Related Parties

Transactions between the Company and related parties are as follows:

(1) Name of and Relationship with a Related Party

Name of Related Party Leadtrend Technology (Shenzhen) Ltd. Operating Revenue Type of Related Party A subsidiary		Relationshipwith the Company	Relationshipwith the Company	Relationshipwith the Company
		A subsidiary 2024 $ 448,326		2023
				$ 276,569

(2) Operating Revenue

There is no appropriate object comparable with the sales price of sales between the Company and a related party, and the payment collection conditions are identical to general transaction conditions.

(3) Accounts Receivable from Related Parties

Account Accounts receivable －Related parties	Type of Related Party A subsidiary	December 31, 2024 $ 87,572	December 31, 2023	December 31, 2023
				$ 40,266

(4) Accounts Payable to Related Parties

Account Accounts payable－ Related parties	Type of Related Party A subsidiary	December 31, 2024 $ 501	December 31, 2023	December 31, 2023
				$ -

(5) Other Receivables

Other Receivables
Account Other current assets	Type of Related Party A subsidiary	December 31, 2024 $ -	December 31, 2023
				$ 514

(6) Remunerations to Main Managements

Remunerations to Main Managements
Short-term employee benefits Post-employment benefits Share-based payment		2024 $ 26,641 522 3,468 $ 30,631		2023
				$ 26,412 818 4,015 $ 31,245

The remunerations to directors and main managements are determined by the remuneration committee based on individual performance and market trends.

60 -

27. Material Contingent Liabilities and Unrecognized Contractual Commitments The material commitments of the Company as of the balance sheet date are as follows: (1) Material Commitments

The Company signed a patent technology transfer agreement with a company in March 2018. The consideration for the transfer was agreed to be made in installations for 3 terms. The total contract amount for the 1st and 2nd terms was USD 600 thousand. The amount to be paid for the 3rd term was calculated at a certain percentage of the proceeds of patent derivatives earned for 3 years from the launch date, and should be no less than USD 300 thousand.
Information of Foreign Currency Assets and Liabilities Having a Material Impact The following information is expressed in foreign currencies, rather than the functional currency used by the Company. The disclosed exchange rate refers to the exchange rate of the foreign currency to the functional currency. Foreign currency financial assets and liabilities having a material impact are as follows:

December 31, 2024

December 31, 2024
Foreign currency assets Monetary item USD CNY Non-monetary item Subsidiaries accounted for using the equity method CNY Foreign currency liabilities Monetary item USD CNY	Foreign currency $ 4,182 20,221 68,419 1,772 112	Exchange rate 32.785 (USD: NTD) 4.478 (CNY: NTD) 4.478 (CNY: NTD) 32.785 (USD: NTD) 4.478 (CNY: NTD)		Carrying amount
				$ 137,091 90,550 $ 227,641 $ 306,379 $ 58,089 501 $ 58,590

61 -

December 31, 2023

December 31, 2023
Foreign currency assets Monetary item USD CNY Non-monetary item Subsidiaries accounted for using the equity method CNY Foreign currency liabilities Monetary item USD	Foreign currency $ 4,808 11,569 54,425 2,180	Exchange rate 30.705 (USD: NTD) 4.327 (CNY: NTD) 4.327 (CNY: NTD) 30.705 (USD: NTD)		Carrying amount
				$ 147,642 50,058 $ 197,700 $ 235,499 $ 66,952

The realized and unrealized net foreign exchange gains (losses) for 2024 and 2023 was $13,661 thousand and ($199) thousand respectively. As foreign currency transactions are diversified, disclosing foreign exchange gains or losses based on each foreign currency with material impact is not feasible.

Disclosures in the Notes
(1) Material Transactions, and (B) Reinvestment-related Information:
A. Funds lent to others: None.
B. Endorsement and guarantee for others: None.
C. Negotiable securities held at the end of the year:

Company holding securities	Type of negotiable securities	Name of negotiable securities	Relation with the issuer of negotiable securities	Account	End o	End o	fyear		Remark
					Shares or units (Thousand)	Carrying amount	Shareholding ％	Fair value
Leadtrend Shenzhen	Funds	CR Yuanta Cash Money Market Fund B	－	Financial assets at FVTPL－Current	-	$ 52,249	-	$ 52,249	Note 1
		ICBC Financial Management Corporation Tianlibao Net Value Financial Products	－	Financial assets at FVTPL－Current	-	51,726	-	51,726	Note 1
The Company	Bonds	P12TSMC2A	－	Non-current financial assets at amortized cost	10	1,000	-	994	Note 2

Note1: It was calculated based on the net worth on December 31, 2024. Note2: It was calculated based on the trading market price of $100 at the end of 2024.

Note3: There were not any users providing collaterals or pledges for loans or being restricted by other agreements with respect to the negotiable securities listed above as of December 31, 2024.

D. Accumulated purchases or sales of negotiable securities up to NTD 300 million or 20% of the paid-in capital: None
62 -
E. An amount of obtained real estate up to NTD 300 million or 20% of the paid-in capital: None
F. Proceeds up to NTD 300 million or 20% of the paid-in capital from disposal of real estate: None
G. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital:

Selling (purchasing) company	Counterparty	Relation		Tra	nsaction		Transaction term those for general reasons	s different from transactions, and (Note)	Notes and receivable	accounts (payable)	Remark
			Sale (purchase)	Amount	Of total purchase (sale) (％)	Credit period	Unit price	Credit period	Balance	Of the total notes and accounts receivable (payable) (％)
The Company	Leadtrend Technology (Shenzhen) Ltd.	Parent company and subsidiary	Sale	$ 448,32	6 35	60 days after monthly settlement	Note	Corresponding	$ 87,572	47	－

Note: The selling price at which the Company sold products to the related party was determined based on the arm's length principle.

H. Receivables from related parties up to NTD 100 million or 20% of the paid-in

capital: None

I. Transactions of derivatives: None.
J. Information on investees: None.
(2) Information of Investments in Mainland China:
A. Name of investee company in Mainland China, main business activities, paid-in capital, investment method, funds remitted in and out, shareholding, investment gain or loss, carrying amount of investments at the end of the year, investment gain (loss) remitted back already, and limit of investments in Mainland China:

==> picture [377 x 207] intentionally omitted <==

----- Start of picture text -----

Unit: In thousands of NTD; in thousands of USD
company in Mainland Name of investee China Main business activities Paid-in capital [Investment ] method investment amount beginning of the remitted from Taiwan at the Accumulated year remitted or recovered Remitted Recovered Investment amount in the year end of the remitted from Taiwan at the Accumulated investment amount year Current profit (loss) of the company investee shares held by through direct Percentage of the Company investment or indirect (loss) recognized Investment gain for the year (Note 2) investment (NoteEnding carrying amount of 2) the end of the gain remitted Taiwan as of Investment back to year
Leadtrend Design and R&D of $ 324,572 Note 1 $ 231,134 $ $ $ 231,134 $ 85,263 100% $ 85,263 $ 306,379 $ -
Technology computer ( USD 9,900 ) ( USD 7,050 ) ( USD 7,050 ) ( USD2,655 ) ( USD2,655 ) ( USD 9,345 )
(Shenzhen) application
Ltd. software and
system integration;
wholesale of
computer software,
integrated circuits,
semiconductor
chips and related
electronic parts and
components;
manufacturing of
electronic
components,
manufacturing of
integrated circuit
chips and products,
manufacturing of
computer software,
hardware and
peripheral
equipment
Accumulated investment amount Investment amount approved by 60% of net worth, the limit of investment
remitted from Taiwan to Mainland Investment Commission, Ministry provided by Investment Commission,
China at the end of the year of Economic Affairs Ministry of Economic Affairs
$231,134 (USD 7,050) $324,572 (USD9,900) $1,059,475
----- End of picture text -----

63 -

Note1: The investment was made physically in Mainland China.

Note2: It was calculated based on the financial statements of the same accounting period audited by CPAs.

  - Note3: The figures in a foreign currency indicated in the table were converted into NT dollars at the exchange rate announced on the reporting date.

  - Note4: At December 31, 2024, Leadtrend Company had an investment amount of US$9,900 approved by the Investment Review Committee of the Ministry of Economic Affairs, and had actually remitted US$7,050. The remaining uninvested amount has expired.

B. Material transactions with investee companies in Mainland China directly or through a third region, the prices, payment terms, unrealized gains (losses) with respect to the transactions, and relevant information helpful for understanding the impact of investments in Mainland China on the financial statements: Refer to (1) G.
(3) Information of Key Shareholders: Name of Shareholder Holding Over 5% of Equity, Number of Shares Held and Percentage of Shareholding:

Name of key shareholder	Shares	Shares
	Shares held	Percentage of shareholding（％）
Jie NengInvestment Co.,Ltd.	4,880,227	8.07

64 -

§TABLE OF CONTENTS OF STATEMENT OF IMPORTANT ACCOUNTING ITEMS§

ITEM

NO./INDEX

Statements of Items in Assets, Liabilities and Equity Statement of Cash and Cash Equivalents Statement 1 Statement of Accounts Receivable Statement 2 Statement of Inventories Statement 3 Statement of Other Current Assets Note 14 Non-current Financial Assets at Amortized Cost Note 7 Statement of Changes in Investments Accounted for Using Statement 4 the Equity Method Statement of Changes in Property, Plant and Equipment Note 11 Statement of Changes in Right-of-use Assets Statement 5 Statement of Changes in Intangible Assets Note 13 Statement of Other Non-current Assets Note 14 Statement of Accounts Payable Statement 6 Statement of Other Current Liabilities Note 16 Statement of Long-term Loans Statement 7 Statement of Lease Liabilities Statement 8 Statements of Items in Profit or Loss Statement of Operating Revenue Statement 9 Statement of Operating Costs Statement 10 Statement of Operating Expenses Statement 11 Statement of Other Gains and Losses Note 21 Summary Statement of Current Period Employee Benefits, Statement 12 Depreciation and Amortization Expenses By Function

65 -

Leadtrend Technology Corporation

Statement of Cash and Cash Equivalents

For the Year Ended December 31, 2024

Statement 1

Unit: thousands of New Taiwan Dollars, except as otherwise indicated herein

Item Bank deposits Foreign currency deposits Checking accounts and demand deposits Petty cash and cash on hand Cash equivalents Time deposits	Description USD 1,798 thousand (exchange rate was USD 1: NTD 32.785); CNY 587 thousand (exchange rate was CNY 1: NTD 4.478) CNY 78 thousand (exchange rate was CNY 1: NTD 4.478) The annual interest rate was 1.00%~1.658%		Amount
			$ 61,563 51,603 468 342,900 $ 456,534

66 -

	Leadtrend Technology Corporation
	Statement of Accounts Receivable
	For the Year Ended December 31, 2024
Statement 2	(In Thousands of New Taiwan Dollars)
	Name of Customer Amount
Customer A	$ 41,547
Customer B	30,322
Customer C	20,363
Others (Note	1) 6,279
	$ 98,511
Note1: Balance of each customer has not exceeded 5% of total account balance.
Note2: There was no overdue exceeding one year.

67 -

Leadtrend Technology Corporation

Statement of Inventories

For the Year Ended December 31, 2024

Statement 3 (In Thousands of New Taiwan Dollars)

Item Finished goods Work in process Raw materials		Amount	Amount	Amount
		Cost $ 93,773 343,890 171,256 $ 608,919	Net realisable value
				$ 163,459 513,297 190,475 $ 867,231

Note: As of the end of 2024, the insured amount of inventories was $130,000 thousand.

68 -

Leadtrend Technology Corporation

Statement of Changes in Investments Accounted for Using the Equity Method For the Year Ended December 31, 2024

Statement 4

Unit: thousands of New Taiwan Dollars, except as otherwise indicated herein

Name of investee company Leadtrend Technology (Shenzhen) Ltd.	Beginningbalance Shares (In Thousands) Amount -$ 235,499	Beginningbalance Shares (In Thousands) Amount -$ 235,499	Increase for theyear Shares (In Thousands) Amount -$ -	Increase for theyear Shares (In Thousands) Amount -$ -	Decrease for theyear Shares (In Thousands) Amount -$ -	Decrease for theyear Shares (In Thousands) Amount -$ -	Gain on disposal of investments accounted for using equity method $ -	Share of profit of subsidiaries accounted for using the equitymethod $ 85,263		Realized (unrealized) profit $ 25,140)	Exchange differences on translating the financial statements of foreign operations $ 10,757	Endingbalance	Endingbalance	Endingbalance	Amount $ 306,379	Net asset value of equity	Net asset value of equity
	Shares (In Thousands) -		Shares (In Thousands) -		Shares (In Thousands) -							Shares (In Thousands) -	Percentage of ownership (%) 100
									(								$ 391,278

Note1: It was calculated based on the financial statements of the same accounting period audited by CPAs. Note2: The above negotiable securities were not pledged or used as collaterals.

69 -

Leadtrend Technology Corporation

Statement of Changes in Right-of-use Assets and Accumulated Depreciation of

Right-of-use Assets

For the Year Ended December 31, 2024

Leadtrend Technology Corporation Statement of Changes in Right-of-use Assets and Accumulated Depreciation of Right-of-use Assets For the Year Ended December 31, 2024	Leadtrend Technology Corporation Statement of Changes in Right-of-use Assets and Accumulated Depreciation of Right-of-use Assets For the Year Ended December 31, 2024	Leadtrend Technology Corporation Statement of Changes in Right-of-use Assets and Accumulated Depreciation of Right-of-use Assets For the Year Ended December 31, 2024
Statement 5 (In Thousands of New Taiwan Dollars) Item House and building Cost Balance at January 1, 2024 $ 30,084 Addition 24,504 Disposal (23,928) Balance at December 31, 2024 30,660 Accumulated depreciation Balance at January 1, 2024 17,919 Depreciation expense 8,947 Disposal (23,928) Balance at December 31, 2024 2,938 Net at December 31, 2024 $ 27,722
	( (	$ 30,084 24,504 23,928) 30,660 17,919 8,947 23,928) 2,938 $ 27,722

70 -

Leadtrend Technology Corporation

Statement of Accounts Payable

For the Year Ended December 31, 2024

Statement 6 (In Thousands of New Taiwan Dollars)

Name of supplier Taiwan Semiconductor Manufacturing Company Limited Greatek Electronics Inc. Test-Serv Inc. Tongfu Microelectronics Co., Ltd. Others (Note)		Amount
		$ 34,122 17,573 15,549 5,921 22,758 $ 95,923

Note: Balance of each customer has not exceeded 5% of total account balance.

71 -

Statement 7 Creditor Mega International Commercial Bank	Leadtrend Technology Corporation Statement of Long-term Loans For the Year Ended December 31, 2024 Term and repayment method Annual interest rate （％） Expiring within one year 2024.05.09~2027.05.09, with equal monthly principal and interest repayments starting from June 2025 (Note 15) $ 10,208	Expiring after one year $ 24,792		(In Thousands of New Taiwan Dollars) Total Collateral or pledge $ 35,000 －

72 -

Leadtrend Technology Corporation

Statement of Lease Liabilities

For the Year Ended December 31, 2024

Statement 8

(In Thousands of New Taiwan Dollars)

Item Lease term Discount rate Ending balance Building 2023.03 - 2028.03 1.96% ~ 2.24% $ 28,077 Less: Current lease ( 9,266 ) liabilities Lease liabilities$ 18,811 non-current

73 -

Leadtrend Technology Corporation

Statement of Operating Revenue

For the Year Ended December 31, 2024

Unit: thousands of New Taiwan Dollars, except as otherwise indicated herein


Statement 9 Item Integrated circuits Sales returns and allowances Net operating revenue	U Quantity 312,878	nit: thousands of New Taiwan Dollars, except as otherwise indicated herein Unit Amount Thousand $ 1,333,681 ( 34,305) $ 1,299,376
			(	$ 1,333,681 34,305) $ 1,299,376

74 -

Leadtrend Technology Corporation

Statement of Operating Costs

For the Year Ended December 31, 2024

Statement 10 (In Thousands of New Taiwan Dollars)

Item
Beginning raw materials
Raw materials purchased for the year
Transfer to expenses and others
Ending raw materials
Raw materials used for the year
Manufacturing expense
Manufacturing cost
Beginning work in process
Ending work in process
Work in process sold
Transfer to expenses and others
Costs of finished goods
Beginning finished goods
Ending finished goods
Costs of work in process sold
Transfer to expenses and others
Total cost of goods sold

Amount

$ 155,187
581,243
(
7,548 )
(171,256)
557,626
360,799
918,425
300,174
( 343,890 )
( 197,590 )
(
3,003)
674,116
86,618
( 93,773 )
197,590
(
5,670)
$ 858,881

75 -

Leadtrend Technology Corporation

Statement of Operating Expenses

	For the	Year Ended	December 31, 2024
Statement 11			(In Thousands of New Taiwan Dollars)
Item	Selling expenses		Administrative	Research and
			expenses	development
				expenses
Wages and salaries	$ 31,643		$ 60,863	$ 162,475
Business promotion		5,614	-	-
expenses
Depreciation expense		2,540	6,230	40,736
Taxes and regulatory		256	6,642	-
fees
Professional service		145	13,666	1,842
fees
Others (Note)		9,048	25,766	47,412
	$ 49,246		$ 113,167	$ 252,465

Note: Balance of each item has not exceeded 5% of total account balance.

76 -

Leadtrend Technology Corporation

Summary Statement of Current Period Employee Benefits, Depreciation and Amortization Expenses by Function For the Years Ended December 31, 2024 and 2023

Statement 12 (In Thousands of New Taiwan Dollars)

Employee benefit expenses Wages and salaries Pension costs Remuneration to directors Meal expenses Welfare funds Employee insurance premium Other employee benefit expenses Subtotal Depreciation expense Amortization expense		2024		Total $ 295,317 10,635 5,455 5,584 1,633 18,518 509 $ 337,651 $ 65,438 $ 6,588		2023
	Classified as operating costs $ 45,791 1,740 - 1,052 256 3,019 3 $ 51,861 $ 15,932 $ 1,012	Classified as operating expenses $ 249,526 8,895 5,455 4,532 1,377 15,499 506 $ 285,790 $ 49,506 $ 5,576			Classified as operating costs $ 38,547 1,734 - 1,110 209 3,150 - $ 44,750 $ 18,501 $ 1,177	Classified as operating expenses $ 205,963 9,404 4,034 4,651 2,384 16,026 584 $ 243,046 $ 60,698 $ 9,339		Total
								$ 244,510 11,138 4,034 5,761 2,593 19,176 584 $ 287,796 $ 79,199 $ 10,516

Note1: The average number of employees at the end of each month for 2024 and 2023 were 153 and 159, including 5 and 4 non-employee directors, respectively.

Note2: A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information:

(1) Average employee benefit expense in 2024 was $2,245 thousand ((Total employee benefit expense of 2024
Total remuneration to directors of 2024) / (Number of employees of 2024 - Number of non-employee directors of 2024)).

Average employee benefit expense in 2023 was $1,831 thousand ((Total employee benefit expense of 2023

Total remuneration to directors of 2023) / (Number of employees of 2023 - Number of non-employee directors of 2023)).
(2) Average employee wages and salaries in 2024 were $1,995 thousand (Total wages and salaries of 2024 / (Number of employees of 2024 - Number of non-employee directors of 2024)). Average employee wages and salaries in 2023 were $1,577 thousand (Total wages and salaries of 2023 / (Number of employees of 2023 - Number of non-employee directors of 2023)).
(3) Adjustments of average employee wages and salaries were 26.51% ((Average employee wages and salaries of 2024 - Average employee wages and salaries of 2023) /Average employee wages and salaries of 2023).
(4) As the Company established an Audit Committee on June 21, 2016, it has no supervisors in 2024 and 2023.

(Continued)

77 -
(5) The Company’s salary and compensation policy (including directors, managers and employees): The Company’s salary and compensation are based on the related regulations of the Company's Articles of Incorporation, the Remuneration Committee and the Regulations for Salary Administration.
A. In accordance with the Articles of Incorporation, the Company allocated remuneration to employees and directors, from the current pre-tax net profit before deduction of remuneration to employees and directors, at a rate no less than 5% and at a rate no more than 2% respectively. However, if the Company has accumulated losses (including adjustments to the amount of retained earnings), it should first set aside an amount to cover the losses, and then allocate remuneration to employees and directors based on the aforementioned percentages.
B. The remuneration to the Company's chairman and directors is determined based on the value of their participation in and contribution to the operation of the Company, taking into account the industry standards, which is authorized to be decided by the board of directors.
C. The remuneration to the Company’s managers includes salaries and bonuses, and the salaries are determined based on industry standards and managers’ positions, ranks, education (work) experiences, professional abilities and duties. The bonuses are determined based on the managers’ performance evaluation items, including financial index and non-financial index. The distribution principles are suggested by the Remuneration Committee, which is approved by the chairman based on the operational performance.
D. The remuneration to the Company's employees primarily includes three parts, minimum wages, bonuses and employee dividends and benefits. The minimum wages are determined based on the market competitiveness for the employees’ position and the Company's policies. Bonuses and employee dividends are linked to the achievement of goals of employees and departments or the Company's overall operational performance. For the design of benefits, it is based on compliance with the regulations of the laws, while also taking into account the needs of employees, to provide shareable benefit measures for employees.
78 -

AI assistant

LD — Audit Report / Information 2024

52348_rns_2024-11-13_9c43af58-6d62-4379-994f-5b02a6e06165.pdf

Leadtrend Technology Corporation

Notice to Readers

Independent Auditors' Report

Opinion

Basis for Opinion

Key Audit Matters

Recognition of Sales Revenue

Inventory Evaluation

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

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Leadtrend Technology Corporation

Balance Sheets

December 31, 2024 and 2023

Leadtrend Technology Corporation

Parent Company Only Statements of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

(Brought forward from previous page)

Leadtrend Technology Corporation Parent Company Only Statements of Changes in Equity For the Years Ended December 31, 2024 and 2023

Leadtrend Technology Corporation

Parent Company Only Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

Leadtrend Technology Corporation

Notes to Parent Company Only Financial Statements

For the Years Ended December 31, 2024 and 2023

1. General Information

2.

Date and Procedure of Adoption of Financial Statements

3. Applicability of New and Amended Standards and Interpretations

4. Summary of Material Accounting Policies

Current assets:

Current liabilities:

(A) Type of Measurement

Financial Assets at Amortized Cost

(B) Impairment of Financial Assets

B. Equity Instruments

C. Financial Liabilities

Sales Revenue

(16) Income Tax

5. Main Sources of Material Accounting Judgments, Estimates and Assumption Uncertainty

Main Sources of Estimates and Assumption Uncertainty

(2) Impairment of Inventories

6. Cash and Cash Equivalents

7. Financial Assets at Amortized Cost

8. Accounts Receivable

Analysis on Aging of Accounts Receivable

9.

10. Investments Accounted for Using Equity Method

11. Property, Plant and Equipment

Self-used

12. Lease Agreement

(1) Right-of-use Assets

(2) Lease Liabilities

(3) Important Lease Activities and Terms

(4) Other Lease Information

13. Intangible Assets

14. Other Assets

15. Loan

16. Other Current Liabilities

17. Post-employment Benefit Plan

(1) Defined Contribution Plan

(2) Defined Welfare Plan

18. Equity

Common Shares

B. Employees' Unearned Compensation

19. Share-based Payment

Employee Restricted Stock Award Shares

20. Operating Revenue

Itemized by Areas

(6) Employee Benefit Expenses

(7) Remunerations to Employees and Directors

Estimated Percentage

Amount

22. Income Tax

(2) Current Tax Liabilities

(3) Deferred Tax Assets and Liabilities

2024

(4) Income Tax Assessment

LD Audit Report / Information 2024