LD - Interim / Quarterly Report 2025

Stock Code: 3588

Leadtrend Technology Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors’ Review Report for the Six Months Ended June 30, 2025 and 2024

Address: 1, 4/F, 1, the Second Taiyuan Street, Zhubei City, Hsinchu County. Telephone: (03) 554-3588

The Board of Directors and Shareholders Leadtrend Technology Corporation

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

We have reviewed the accompanying consolidated balance sheets of Leadtrend Technology Corporation and its subsidiaries as of June 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2025 and 2024, as well as the consolidated statements of changes in equity and cash flows for the six months ended June 30, 2025 and 2024, and the related notes to the consolidated financial statements, including the summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Leadtrend Technology Corporation and its subsidiaries as of June 30, 2025 and 2024, its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, as well as its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Chang, Ya-Yun and Chen, Ming-Hui.

Deloitte & Touche Taipei, Taiwan Republic of China

August 7, 2025

Notice to Readers:

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of June 30, 2025, December 31, 2024, and June 30, 2024 (In thousands of New Taiwan Dollars)

				June 30,	2025			December31,	December31,	2024	2024		June 30,	2024
Code	Assets			Amount		％			Amount		％		Amount		％
	Current asset
1100	Cash and cash equivalents (Note 6)		$	550,631		28		$	493,439		24		$ 494,099		25
1110	Financial assets at fair value through profit
	or loss - current (Note 7)			95,698		5			103,975		5		89,111		5
1170	Notes and accounts receivable (Note 9)			215,443		11			236,825		11		258,932		13
130X	Inventories (Note 10)			628,706		31			709,100		34		622,756		31
1470	Other current assets (Note 15)			10,545		-			12,047		1		14,640		1
11XX	Total current assets		1,501,023			75		1,555,386			75		1,479,538		75
	Non-current assets
1540	Financial assets at amortized cost-
	non-current (Note 8)			1,000		-			1,000		-		-		-
1600	Property, plant and equipment (Note 12)			446,935		23			462,119		22		470,452		24
1755	Right-of-use assets (Note 13)			27,470		1			34,656		2		16,646		1
1780	Intangible assets (Note 14)			7,384		-			7,130		-		9,757		-
1840	Deferred tax assets			807		-			-		-		-		-
1900	Other non-current assets (Note 15)			7,831		1			8,084		1		4,471		-
15XX	Total non-current assets			491,427		25			512,989		25		501.326		25
1XXX	Total assets		$1,992,450			100		$2,068,375			100		$1,980,864		100
	Liabilities and Equity
	Current liabilities
2100	Short-term borrowings (Note 16)		$	-		-		$	-		-		$ 35,000		2
2170	Accounts payable			109,071		5			108,662		5		127,120		6
2200	Remuneration payable to employees and
	directors (Note 22)			10,109		1			23,042		1		19,287		1
2216	Dividends payable（Note 19）			71,435		4			-		-		23,275		1
2230	Current income tax liabilities (Note 4 and 23)			5,704		-			8,682		-		3,149		-
2280	Lease liabilities - current (Note 13)			12,831		1			12,989		1		8,379		1
2320	Long-term borrowings -current portion (Note
	16)			-		-			10,208		1		-		-
2399	Other current liabilities (Note 17)			66,095		3			79,083		4		56,773		3
21XX	Total current liabilities			275,245		14			242,666		12		272,983		14
	Non-current liability
2540	Long-term borrowings (Note 16)			-		-			24,792		1		-		-
2570	Deferred tax liabilities			-		-			335		-		202		-
2580	Lease liabilities - non-current (Note 13)			14,742		1			21,652		1		8,501		1
2645	Deposits received			12,753		-			13,138		1		6,117		-
25XX	Total non-current liabilities			27,495		1			59,917		3		14,820		1
2XXX	Total liabilities			302,740		15			302,583		15		287,803		15
	Equity (Notes 19 and 20)
	Share capital
3110	Common stock			604,256		30			604,421		29		589,003		30
3150	Stock dividends to be distributed			11,906		1			-		-		11,638		-
	Capital surplus
3210	Share premium			235,817		12			250,212		12		240,702		12
3251	Donations received from shareholders			84,732		4			84,732		4		84,732		4
3273	Restricted stocks for employees			50,817		3			61,218		3		40,340		2
3280	Others			154		-			131		-		131		-
	Retained earnings
3310	Legal reserve			229,360		11			218,171		11		218,171		11
3320	Special reserve			-		-			786		-		786		-
3350	Undistributed earnings			529,452		27			581,831		28		524,994		27
	Other equity
3410	Exchange differences on translating the
	financial statements of foreign
	operations	(		25,081 )	(	1 )			9,971		-		7,586		-
3491	Unearned employee compensation	(		31,703)	(	2)	(		45,681)	(	2)	(	25,022)	(	1)
3XXX	Total equity		1,689,710			85		1,765,792			85		1,693,061		85
	Total liabilities and equity		$1,992,450			100		$2,068,375			100		$1,980,864		100

The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In thousands of New Taiwan Dollars, except earnings per share)

Threemonths ended June 30,	Threemonths ended June 30,	Threemonths ended June 30,	Threemonths ended June 30,	Six months ended June 30,	Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
2025	％ 100 62 38 4 8 20 32 6 1 - ( 6 ) - ( 5) 1 - 1 (13) (12)		2024	2025	％ 100 63 37 4 8 20 32 5 - - ( 2 ) - ( 2) 3 1 2 ( 5) ( 3)		2024
			Amount $ 378,685 234,469 144,216 16,538 27,526 69,397 113,461 30,755 1,868 1,486 3,637 168) 6,823 37,578 7,123) 44,701 2,639 $ 47,340 $ 0.74 $ 0.73				Amount $ 689,769 428,141 261,628 35,083 60,546 133,321 228,950 32,678 3,154 2,986 9,388 277) 15,251 47,929 7,123) 55,052 8,372 $ 63,424 $ 0.91 $ 0.90	％
		( (				( (		100 62 38 5 9 19 33 5 1 - 1 - 2 7 ( 1) 8 1 9

The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(In thousands of New Taiwan Dollars, unless stated otherwise)

Code A1 Balance at January 1, 2024 Distribution of retained earnings for 2023 B1 Legal reserve B3 Special reserve B9 Stock dividends to shareholders－$0.2 per share Total distribution of retained earnings C15 Capital surplus used for distribution of cash dividends－$0.4 per share C17 Changes in other capital surplus D1 Net profit for the six months ended June 30, 2024 D3 Other comprehensive (income) loss for the six months ended June 30, 2024 D5 Total comprehensive income (loss) for the six months ended June 30, 2024 N1 Acquired restricted stocks for employees N1 Canceled restricted stocks for employees N1 Compensation cost of the restricted stocks for employees Z1 Balance at June 30, 2024 A1 Balance at January 1, 2025 Distribution of retained earnings for 2024 B1 Legal reserve B17 Special reserve B5 Cash dividends to shareholders－$0.8 per share B9 Stock dividends to shareholders－$0.2 per share Total distribution of retained earnings C15 Capital surplus used for distribution of cash dividends－$0.4 per share C17 Changes in other capital surplus D1 Net profit for the six months ended June 30, 2025 D3 Other comprehensive (income) loss for the six months ended June 30, 2025 D5 Total comprehensive income (loss) for the six months ended June 30, 2025 N1 Acquired restricted stocks for employees N1 Canceled restricted stocks for employees N1 Compensation cost of the restricted stocks for employees Z1 Balance at June 30, 2025	Share capital-common	Share capital-common	Share capital-common	stock Stock dividends to be distributed $ - - - 11,638 11,638 - - - - - - - - $ 11,638 $ - - - - 11,906 11,906 - - - - - - - - $ 11,906		Capital surplus	Capital surplus	Capital surplus		Others $ 125 - - - - - 6 - - - - - - $ 131 $ 131 - - - - - - 23 - - - - - - $ 154		Retained	earnings		Total $ 700,537 - - 11,638) 11,638) - - 55,052 - 55,052 - - - $ 743,951 $ 800,788 - - 47,623 ) 11,906) 59,529) - - 17,553 - 17,553 - - - $ 758,812	Other equity Exchange differences on translating the financial statements of foreign operations Unearned employee compensation ( $ 786 ) ( $ 35,803 ) - - - - - - - - - - - - - - 8,372 - 8,372 - - - - - - 10,781 $ 7,586 ($ 25,022) $ 9,971 ( $ 45,681 ) - - - - - - - - - - - - - - - - ( 35,052) - ( 35,052) - - - - - - 13,978 ($ 25,081) ($ 31,703)	Other equity Exchange differences on translating the financial statements of foreign operations Unearned employee compensation ( $ 786 ) ( $ 35,803 ) - - - - - - - - - - - - - - 8,372 - 8,372 - - - - - - 10,781 $ 7,586 ($ 25,022) $ 9,971 ( $ 45,681 ) - - - - - - - - - - - - - - - - ( 35,052) - ( 35,052) - - - - - - 13,978 ($ 25,081) ($ 31,703)		Total equity
	Shares (In thousands) 58,918 - - - - - - - - - - ( 18 ) - 58,900 60,442 - - - - - - - - - - - ( 16 ) - 60,426		Amount $ 589,178 - - - - - - - - - - 175 ) - $ 589,003 $ 604,421 - - - - - - - - - - - 165 ) - $ 604,256		Share premium $ 254,672 - - - - ( 23,275 ) - - - - 9,305 - - $ 240,702 $ 250,212 - - - - - ( 23,812 ) - - - - 9,417 - - $ 235,817	Donations received from shareholders $ 84,732 - - - - - - - - - - - - $ 84,732 $ 84,732 - - - - - - - - - - - - - $ 84,732		Restricted stocks for employees $ 50,306 - - - - - - - - - 9,305 ) 175 836) $ 40,340 $ 61,218 - - - - - - - - - - 9,417 ) 165 1,149) $ 50,817			Legal reserve $ 215,284 2,887 - - 2,887 - - - - - - - - $ 218,171 $ 218,171 11,189 - - - 11,189 - - - - - - - - $ 229,360	Special reserve $ - - 786 - 786 - - - - - - - - $ 786 $ 786 - ( 786 ) - - ( 786) - - - - - - - - $ -	Undistributed earnings $ 485,253 ( 2,887 ) ( 786 ) ( 11,638) ( 15,311) - - 55,052 - 55,052 - - - $ 524,994 $ 581,831 ( 11,189 ) 786 ( 47,623 ) ( 11,906) ( 69,932) - - 17,553 - 17,553 - - - $ 529,452			Exchange differences on translating the financial statements of foreign operations ( $ 786 ) - - - - - - - 8,372 8,372 - - - $ 7,586 $ 9,971 - - - - - - - - ( 35,052) ( 35,052) - - - ($ 25,081)
	( (	( (			( (		( ( ( (					( (	( ( ( ( ( ( ( (	( ( ( ( (		( ( ( (	( ( ( (	( ( ( ( ( (	$1,642,961 - - - - 23,275 ) 6 55,052 8,372 63,424 - - 9,945 $1,693,061 $1,765,792 - - 47,623 ) - 47,623) 23,812 ) 23 17,553 35,052) 17,499) - - 12,829 $1,689,710

The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY Corporation AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In thousands of New Taiwan Dollars)

(In thousands of New Taiwan Dollars)
Code Cash flows from operating activities A10000 Net profit before income tax A20010 Adjustments for: A20100 Depreciation expenses A20200 Amortization expenses A20400 Net gain on financial assets or liabilities at fair value through profit or loss A20900 Finance costs A21200 Interest income A21900 Compensation cost of the restricted stocks for employees A22500 Loss on disposal of property, plant and equipment A23700 Write-down of inventories A24100 Unrealized foreign exchange gain (loss) A30000 Net changes in operating assets and liabilities A31150 Notes and accounts receivable A31200 Inventories A31240 Other current assets A32150 Accounts payable A32180 Remuneration payable to employees and directors A32230 Other current liabilities A33000 Cash flow generated from operations A33300 Interest paid A33500 Income tax paid AAAA Net cash flows from operating activities Cash flows from investment activities B00100 Acquisition of financial assets at fair value through profit or loss B00200 Proceeds from disposal of financial assets at fair value through profit or loss B02700 Acquisition of property, plant and equipment B03700 Increase in refundable deposits (Continued on next page)	Six months ended June 30,
	2025 $ 21,680 35,690 3,785 ( 759 ) 395 ( 3,498 ) 12,829 1 ( 480 ) 17,148 15,968 80,874 1,533 2,414 ( 12,933 ) ( 13,543) 161,104 ( 395 ) ( 8,119) 152,590 - - ( 19,635 ) 89	2024
		$ 47,929 38,612 3,476 ( 774 ) 277 ( 3,154 ) 9,945 8 ( 1,766 ) ( 4,848 ) ( 63,270 ) ( 13,235 ) 7,481 17,866 72 ( 18,738) 19,881 ( 277 ) ( 2,761) 16,843 ( 26,670 ) 24,448 ( 19,834 ) ( 34 )

(Brought forward from previous page)

Code B04500 Acquisition of intangible assets B07500 Interest received BBBB Net cash flows used in investment activities Cash flows from financing activities C00100 Increase in short-term borrowings C00200 Decrease in short-term borrowings C01700 Decrease in long-term borrowings C03000 Increase in deposits received C03100 Decrease in deposits received C04020 Repayment of the principal portion of lease liabilities C09900 Other financing activities CCCC Net cash flows from (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 beginning of the period E00200 Cash and cash equivalents at end of the period	Six months ended June 30,	Six months ended June 30,
	2025 ( $ 1,472 ) 3,467 ( 17,551) - - ( 35,000 ) - ( 385 ) ( 6,501 ) 23 ( 41,863) ( 35,984) 57,192 493,439 $ 550,631	2024
		( $ 2,101 ) 3,175 ( 21,016) 65,000 ( 30,000 ) - 5,257 - ( 6,832 ) 6 33,431 7,096 36,354 457,745 $ 494,099

The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In thousands of New Taiwan Dollars, unless stated otherwise)

1. History of Company

Leadtrend Technology Corporation (hereinafter referred to as "Leadtrend") was established on September 18, 2002, approved by the Ministry of Economic Affairs. It mainly engages in research, development, production, manufacturing, and sales of analog integrated circuits.

Leadtrend offered its shares at the Taiwan Stock Exchange on August 14, 2009.

The consolidated financial statements are presented in Leadtrend's functional currency, the New Taiwan Dollar.

2. Approval Date and Procedures of the Financial Statements

The consolidated financial statements were approved and issued by the Board of Directors on August 7, 2025.

3. Application of New, Amended and Revised 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.
Amendments to IAS21“Lack of exchangeability”

The application of the amended to IAS 21 “Lack of exchangeability” does not cause any significant change in accounting policies of Leadtrend and its subsidiaries (hereinafter referred to as "the Company").

(2) IFRS approved by the Financial Supervisory Commission applicable in 2026.

The newly issued / amended / revised standards and	Effective date issued
interpretations	byIASB(Note 1)
The amendments to IFRS 9 and IFRS 7, "Amendments	January 1, 2026
to the classification and measurement of financial
instruments"
Amendments to IFRS 9 and IFRS 7, "Contracts	January 1, 2026
referencing nature-dependent electricity"
Annual Improvements to IFRS Accounting Standards -	January 1, 2026
Volume 11
IFRS 17, "Insurance contracts"	January 1, 2023
Amendments to IFRS 17	January 1, 2023

The newly issued / amended / revised standards and Effective date issued interpretations by IASB (Note 1) Amendments to IFRS 17, "Initial application of IFRS 17 January 1, 2023 and IFRS 9- comparative information"

Note 1: Applicable for annual reporting periods beginning on or after January 1, 2026. Companies may also opt for early adoption starting January 1, 2025.

As of the date of approval and issuance of this consolidated financial report, the Company is still in the process of assessing the impact of the amendments on its financial position and performance.

(3) IFRSs issued by IASB but not approved and issued by the FSC.

The newly issued / amended / revised standards and interpretations Amendments to IFRS 10 and IAS 28, "Sale or contribution of assets between an investor and its associate or joint venture" IFRS 18, "Presentation and disclosure in financial statements" IFRS 19, "Subsidiaries without publicly accountability: disclosures"	Effective date issued byIASB(Note 1)
	To be determined by IASB January 1, 2027 January 1, 2027

Note 1: Unless stated otherwise, the above newly issued / amended / revised standards and interpretations are effective for annual periods beginning on or after their respective effective dates.

IFRS 18, "Presentation and Disclosure in Financial Statements"

IFRS 18, "Presentation of Financial Statements.” replaces IAS 1. The main changes include:

 Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
 The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
 Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the
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primary financial statements and in the notes. The Company labels items as “other” only if it cannot find a more informative label.

 When engaging in public communications outside the financial statements and conveying management’s perspective on a specific aspect of the Company's overall financial performance to financial statement users, the Company shall disclose management-defined performance measures in a single financial statement note, including a description of the measure, how the measure is calculated, its reconciliation with IFRS-defined subtotals or totals, and the income tax and non-controlling interest impact of the related adjustment items.

In addition to the above impacts, as of the date the accompanying consolidated financial statements were issued, the Company continues in evaluating other impacts of the above amended standards and on its financial position and financial performance from the initial adoption of the aforementioned standards or interpretations and related applicable period. The related impacts will be disclosed when the Company completes its evaluation.

Summary of Material Accounting Policies
(1) Statement of compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting,” endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRS Accounting Standards endorsed and issued into effect by the FSC.

(2) Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value.

Fair value measurement is classified as Levels 1 through Level 3 according to the observable degree and importance of relevant input values:

I. Level 1 Input value: refers to the quotation in the active market (without adjustment) of the same asset or liability available at the measurement date.
II. Level 2 Input value: refers to the observable input value of the asset or liability, either directly (i.e., as price) or indirectly (i.e., derived from price), except as quoted in level 1.
III. Level 3 Input value: refers to the unobservable input value of the asset or liability.
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(3) Basis of consolidation

The consolidated financial statements cover the financial statements of Leadtrend and the entities under its control (i.e. subsidiaries). The financial statements of the subsidiaries have been adjusted to bring their accounting policies in line with those of the Company. In the preparation of consolidated financial statements, all transactions between individual affiliates, account balances, gains and losses have been wiped out.

Please refer to Notes 11 and 30 for details on the subsidiaries, shareholding ratios and main business.

(4) Other material accounting policies

Except for the following, please refer to the summary of material accounting policies in the Company’s consolidated financial statements for the year ended December 31, 2024.

Income tax expense

Income tax expense is the sum of current income tax and deferred income tax. Interim period income tax is assessed on an annual basis and calculated by applying the estimated annual effective tax rate to the interim profit before tax income.

5. Material Accounting Judgements, Estimates and Key Sources of Assumption

Uncertainty

Please refer to the consolidated financial statements for the year ended December 31, 2024.

6. Cash and Cash Equivalents

31, 2024. Cash and Cash Equivalents
Foreign currency deposits Bank checks and demand deposits Petty cash and cash on hand Cash equivalents Time deposits Commercial Paper		June 30, 2025 $ 104,708 90,830 393 334,700 20,000 $ 550,631	December 31, 2024 $ 61,635 88,356 548 342,900 - $ 493,439		June 30, 2024
					$ 100,174 47,625 400 345,900 - $ 494,099

The interest rate for cash and equivalent cash at the balance sheet date ranges as follows：

follows：
Bank deposit	June 30, 2025 0.03%~3.00%	December 31, 2024 0.00%~3.30%	June 30, 2024
			0.05%~3.93%

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7. Financial Assets at Fair Value through Profit or Loss

Financial Assets-Current Financial assets mandatorily measured at fair value through profit or loss Non-derivative financial assets - Fund benefit certificate Financial Assets at Amortized Cost Non-Current Domestic Investment Bond Investment - P12 TSMC 2A		June 30, 2025 $ 95,698 June 30, 2025 $ 1,000	December 31, 2024 $ 103,975 December 31,2024 $ 1,000		June 30, 2024
					$ 89,111 June 30, 2024
					$ -

Financial Assets at Amortized Cost

On December 20, 2024, the Company purchased corporate bonds issued by Taiwan Semiconductor Manufacturing Company Limited with a face value of $1,000 thousand. The bonds will mature on May 3, 2028, with an effective interest rate of 1.60%.

For information on credit risk management and expected impairment losses related to financial assets measured at amortized cost, please refer to Note 26.

9. Notes and Accounts Receivable

Notes and Accounts Receivable
Notes receivable Measured at amortized cost Total carrying amount Accounts receivable Measured at amortized cost Total carrying amount		June 30, 2025 $ 50,280 $ 165,163	December 31, 2024 $ 49,713 $ 187,112		June 30, 2024
					$ 54,588 $ 204,344

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 use other publicly available financial information and historical transaction histories to grade major customers. The Company continuously monitors credit risks and the credit ratings of the other trading party. To mitigate credit risks, the management of the Company assigns a dedicated team to determine credit lines, approve credit lines and other monitoring procedures to ensure that appropriate actions are taken to collect overdue receivables. In addition, the Company reviews the recoverable amounts of receivables on a case-by-case basis at the balance sheet date to ensure

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that appropriate impairment losses have been included in unrecoverable receivables. Accordingly, the Company's management believes that the Company's credit risk has been significantly reduced.

The Company recognizes allowance losses for accounts receivable on the basis of expected credit losses during the duration of existence. 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. As the Company's credit loss history shows that there is no significant difference in loss patterns among different customer groups, the reserve matrix does not further distinguish between customer groups and only sets the expected credit loss rate based on the overdue days of accounts receivable.

If there is evidence that the other trading party is in serious financial difficulties and the Company cannot reasonably expect the amount to be recovered, the Company will directly write off the relevant accounts receivable, but will continue to pursue recovery activities, as the amount recovered will be recognized as profit or loss.

Please refer to the table below for an aging analysis of accounts receivable at the end of the reporting period.

Aging analysis of net accounts receivable

10.	No overdue nor derogation Inventories Finished goods Work in progress Raw materials		June 30, 2025 $ 165,163 June 30, 2025 $ 98,109 407,270 123,327 $ 628,706	December 31, 2024 $ 187,112 December 31, 2024 $ 102,301 430,721 176,078 $ 709,100		June 30, 2024
						$ 204,344 June 30, 2024
						$ 90,611 384,052 148,093 $ 622,756

The operating cost for the three months and six months ended June 30, 2025 and 2024 were $213,551 thousand, $234,469 thousand, $434,214 thousand and $428,141 thousand respectively.

The operating cost included reversal of allowance for obsolescence and market value decline for the three months and six months ended June 30, 2025 and 2024 were ($5,184) thousand, ($3,423) thousand, ($480) thousand and ($1,766) thousand respectively.

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11. Subsidiary

(1) Subsidiaries incorporated into consolidated financial statements

The subjects incorporated into preparation of the consolidated financial statements are listed below:

statements are listed below:
Percentage of holdings Name of company invested in Name of Subsidiary Main business June 30, 2025 December 31, 2024 June 30, 2024 Note Leadtrend Leadtrend Technology (Shenzhen) Ltd. ("Leadtrend Shenzhen") Computer software design service, computer system integration service, wholesale of integrated circuits and related electronic products, and agent import and export business activities. 100% 100% 100% - Property, Plant and Equipment June 30, 2025 December 31, 2024 June 30, 2024 Assets used by the Company $ 432,848 $ 462,119 $ 452,335 Assets subject to operating leases 14,087 - 18,117 $ 446,935 $ 462,119 $ 470,452	Percentage of holdings
		December 31, 2024	June 30, 2024

				$ 452,335 18,117 $ 470,452

12. Property, Plant and Equipment

(1) Assets used by the Company

Cost Balance at January 1, 2025 Transfers to assets subject to operating leases Additions Disposals Net exchange differences Balance at June 30, 2025 Accumulated depreciation and impairment Balance at January 1, 2025 Transfers to assets subject to operating leases Depreciation expenses Disposals Net exchange differences Balance at June 30, 2025 Carrying amounts at June 30, 2025 Carrying amounts at December 31, 2024 and January 1,2025 Cost Balance at January 1, 2024 Transfers to assets subject to operating leases Additions Disposals Net exchange differences Balance at June 30, 2024 Accumulated depreciation and impairment Balance at January 1, 2024 Transfers to assets subject to operating leases Depreciation expenses Disposals Net exchange differences Balance at June 30, 2024 Carrying amounts at June 30, 2024		Land		Buildings		R&D equipment		Office equipment	( (	Molding equipment	Leased Improvements $ 28,581 - - - ( 326) $ 28,255 $ 22,433 - 1,035 - ( 326) $ 23,142 $ 5,113 $ 6,148 $ 24,732 - 3,570 - 100 $ 28,402 $ 20,357 - 913 - 100 $ 21,370 $ 7,032		Mask $ 275,204 - 11,447 - - $ 286,651 $ 241,272 - 9,348 - - $ 250,620 $ 36,031 $ 33,932 $ 245,857 - 13,849 - - $ 259,706 $ 221,459 - 10,828 - - $ 232,287 $ 27,419	Total
	( (	$ 84,099 3,415 ) - - - $ 80,684 $ - - - - - $ - $ 80,684 $ 84,099 $ 84,099 4,314 ) - - - $ 79,785 $ - - - - - $ - $ 79,785	( ( ( ( ( (	$ 342,540 12,814 ) 523 - 3,842) $ 326,407 $ 73,784 2,014 ) 5,363 - 549) $ 76,584 $ 249,823 $ 268,756 $ 341,041 16,186 ) - - 1,172 $ 326,027 $ 62,689 2,221 ) 5,308 - 108 $ 65,884 $ 260,143	( ( ( ( ( (	$ 292,375 - 4,386 126 ) 1,126) $ 295,509 $ 234,615 - 10,300 126 ) 843) $ 243,946 $ 51,563 $ 57,760 $ 291,902 - 670 1,298 ) 362 $ 291,636 $ 213,209 - 12,142 1,298 ) 236 $ 224,289 $ 67,347	( ( ( ( ( (	$ 39,679 - 1,003 56 ) 379) $ 40,247 $ 33,635 - 1,530 55 ) 338) $ 34,772 $ 5,475 $ 6,044 $ 36,144 - 120 347 ) 111 $ 36,028 $ 30,793 - 1,519 339 ) 96 $ 32,069 $ 3,959		$ 33,440 - 394 - 586) $ 33,248 $ 28,060 - 1,263 - 234) $ 29,089 $ 4,159 $ 5,380 $ 28,168 - 5,180 - 42 $ 33,390 $ 25,474 - 1,259 - 7 $ 26,740 $ 6,650	( (			$ 1,095,918 ( 16,229 ) 17,753 ( 182 ) ( 6,259) $ 1,091,001 $ 633,799 ( 2,014 ) 28,839 ( 181 ) ( 2,290) $ 658,153 $ 432,848 $ 462,119 $ 1,051,943 ( 20,500 ) 23,389 ( 1,645 ) 1,787 $ 1,054,974 $ 573,981 ( 2,221 ) 31,969 ( 1,637 ) 547 $ 602,639 $ 452,335
														( (

15 -

No impairment losses were recognized or reversed for the six months ended June 30, 2025 and 2024.

(2) Assets subject to operating leases

Cost Balance at January 1, 2025 Transfers from assets used by the Company Balance at June 30, 2025 Accumulated depreciation Balance at January 1, 2025 Transfers from assets used by the Company Depreciation expenses Balance at June 30, 2025 Carrying amounts at June 30, 2025 Carrying amounts at December 31, 2024 and January 1,2025 Cost Balance at January 1, 2024 Transfers from assets used by the Company Balance at June 30, 2024 Accumulated depreciation Balance at January 1, 2024 Transfers from assets used by the Company Depreciation expenses Balance at June 30, 2024 Carrying amounts at June 30, 2024		Land $ - 3,415 $ 3,415 $ - - - $ - $ 3,415 $ - $ - 4,314 $ 4,314 $ - - - $ - $ 4,314		Buildings $ - 12,814 $ 12,814 $ - 2,014 128 $ 2,142 $ 10,672 $ - $ - 16,186 $ 16,186 $ - 2,221 162 $ 2,383 $ 13,803		Total
						$ - 16,229 $ 16,229 $ - 2,014 128 $ 2,142 $ 14,087 $ - $ - 20,500 $ 20,500 $ - 2,221 162 $ 2,383 $ 18,117

The Company leases parking spaces on an operating lease basis, with a lease period of one year. All operating lease contracts include a clause that the lessee will adjust the rent based on the market rent when exercising the right to renew the lease. The lessee does not have preferential purchase rights for the asset at the end of the lease period.

Depreciation expenses are calculated on a straight-line basis for the following useful lives:

useful lives:
Buildings R&D equipment Office equipment Molding equipment Leased Improvements Mask	Used by the Companyitself 10 ~ 50 years 2 ~ 12 years 3 ~ 9 years 3 years 2 ~ 6 years 2 ~ 3 years	Assets leased under operatingleases
		50 years - - - - -

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13. Lease Agreements

(1) Right-of-use assets

se Agreements Right-of-use assets	se Agreements Right-of-use assets	se Agreements Right-of-use assets
June 30, 2025 December 31, 2024 June 30, 2024 Carrying amounts of right-of-use assets Buildings $ 27,470 $ 34,656 $ 16,646 Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Additions to the right-of-use assets $ - $ 2,161 Depreciation expenses of the right-of-use assets Buildings $ 3,332 $ 3,255 $ 6,723 $ 6,481			June 30, 2024
	$

		2025		2024
		$ - $ 6,723		$ 2,161 $ 6,481

Except for the additions and depreciation expenses recognized listed above, the Company did not have any significant sublease or impairment of the right-of-use assets for the six months ended June 30, 2025 and 2024.

(2) Lease liability

ompany did not have any significant sublease or impairment ssets for the six months ended June 30, 2025 and 2024. Lease liability	of	the right-of-us
June 30, 2025 December 31, 2024 Carrying amount of lease liabilities Current $ 12,831 $ 12,989 Non-Current $ 14,742 $ 21,652 The discount rate range for lease liabilities is as follows: June 30, 2025 December 31, 2024 Buildings 1.96%~2.24% 1.96%~2.24%		June 30, 2024
		$ 8,379 $ 8,501 June 30, 2024
	1.96%~2.10%

(3) Major leasing activities and terms

The Company has leased several buildings for office use for 3~5 years. At the end of the lease term, the Company has no preferential right to purchase the leased land and buildings and agrees that the Company shall not sublease or transfer all or part of the leased property without the prior consent of the Lessor.

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(4) Other lease Information

Expense on short-term lease contracts Expense on leases of low-value assets Total cash (outflow) from leases	Three months ended June 30, 2025 2024 $ 155 $ 168 $ 14 $ 5 ($ 3,480) ($ 3,375)		Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
			2025 $ 326 $ 27 $ 7,201)		2024
		(		(	$ 313 $ 11 $ 7,362)

The Company chooses to apply the recognition exemption to office equipment that qualifies as short-term leases and office equipment that qualifies as low-value asset leases, and doesn’t recognize related right-of-use assets and lease liabilities for these leases.

14. Intangible Assets

Intangible Assets
Cost Balance at January 1, 2025 Additions Net exchange differences Balance at June 30, 2025 Accumulated amortization Balance at January 1, 2025 Amortization expenses Net exchange differences Balance at June 30, 2025 Carrying amounts at June 30, 2025 Carrying amounts at December 31, 2024 and January 1,2025 Cost Balance at January 1, 2024 Additions Net exchange differences Balance at June 30, 2024 Accumulated amortization Balance at January 1, 2024 Amortization expenses Net exchange differences Balance at June 30, 2024 Carrying amounts at June 30, 2024		Computer Software $ 103,851 1,472 10) $ 105,313 $ 100,108 2,193 10) $ 102,291 $ 3,022 $ 3,743 $ 102,517 847 1 $ 103,365 $ 95,961 2,080 1 $ 98,042 $ 5,323	Specialized Technology $ 34,688 2,567 - $ 37,255 $ 34,584 1,173 - $ 35,757 $ 1,498 $ 104 $ 33,434 1,254 - $ 34,688 $ 32,979 978 - $ 33,957 $ 731		Right of Patent $ 8,383 - - $ 8,383 $ 5,100 419 - $ 5,519 $ 2,864 $ 3,283 $ 8,383 - - $ 8,383 $ 4,262 418 - $ 4,680 $ 3,703		Others $ 2,922 - - $ 2,922 $ 2,922 - - $ 2,922 $ - $ - $ 2,922 - - $ 2,922 $ 2,922 - - $ 2,922 $ -		Total $ 149,844 4,039 10) $ 153,873 $ 142,714 3,785 10) $ 146,489 $ 7,384 $ 7,130 $ 147,256 2,101 1 $ 149,358 $ 136,124 3,476 1 $ 139,601 $ 9,757
	( (							( (

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The above-mentioned intangible assets with limited useful lives shall be amortized on a straight-line basis for the following useful lives:

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

An analysis of amortization expenses by function

Other An analysis of amortization	expenses by function	expenses by function	3 ~ 5 years	3 ~ 5 years
Amortization expenses summarized by function Operating costs Selling expenses Administrative expenses Research and development expenses	Three months ended June 30, 2025 2024 $ 253 $ 253 14 11 923 912 758 402 $ 1,948 $ 1,578		Six months ended June 30,
		2025 $ 253 14 923 758 $ 1,948	2025	2024
			$ 506 25 1,853 1,401 $ 3,785	$ 506 22 1,794 1,154 $ 3,476

Other Assets

Other Assets
Current Payment in advance Temporary payments Tax refund receivable Others Non-current Prepayments for purchases of equipment Refundable deposits Prepaid patent rights		June 30, 2025	December 31, 2024 $ 2,691 3,803 1,321 4,232 $ 12,047 $ 1,854 3,663 2,567 $ 8,084		June 30, 2024
		$ 2,478 1,187 277 6,603 $ 10,545 $ 4,257 3,574 - $ 7,831			$ 5,347 1,359 - 7,934 $ 14,640 $ 954 3,517 - $ 4,471

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16. Borrowings

(1) Short-term borrowings

rowings Short-term borrowings
June 30, 2025 Unsecured borrowings Bank loan $ - The interest rate is 0.5% at June 30, 2024. Long-term borrowings June 30, 2025 Unsecured borrowings Bank loan $ - Less：current portion - Long-term borrowings $ -	December 31, 2024 $ - December 31, 2024 $ 35,000 ( 10,208) $ 24,792	June 30, 2024
		$ 35,000 June 30, 2024
	(	$ - - $ -

(2) Long-term borrowings

The bank loan is a government preferential interest loan under the Guidelines for Project Loans to Assist SMEs in Low-Carbon and Smart Transformation, as well as Optimization of Infrastructure for Registered and Specific Factories' initiated by the Ministry of Economic Affairs. The subsidy period is one year, with maturities gradually due before May 2027. The interest rate is calculated as the bank rate of 2.22% minus the government subsidy rate of 1.72%, resulting in a net interest rate of 0.5%.

17. Other Current Liabilities

net interest rate of 0.5%. Other Current Liabilities
Bonus payable Unpaid leave benefits payable Insurance payable Payables on equipment Service fee payable Others		June 30, 2025 $ 33,814 5,951 5,413 4,120 3,026 13,771 $ 66,095	December 31, 2024 $ 46,946 6,442 3,864 3,599 4,073 14,159 $ 79,083		June 30, 2024
					$ 26,879 4,478 3,849 245 3,441 17,881 $ 56,773

18. Post-employment benefits plans

(1) Defined contribution plan

Leadtrend adopts a defined contribution plan in accordance with the Labor Pension Act of the Republic of China. Leadtrend makes monthly contributions equal to 6% of each employee’s salary to their individual pension accounts. Leadtrend Shenzhen, located in the People’s Republic of China, contributes social welfare benefits based on a certain percentage of employees’ salaries, which are recognized as current annual expenses at the time of provision. In

20 -

accordance with these provisions, the amounts recognized as expenses in the Company’s consolidated income statement were $2,767 thousand, $2,681 thousand, $5,518 thousand and $5,363 thousand for the three months and six months ended June 30, 2025 and 2024, respectively.

19. Equity

(1) Share capital

ty Share capital
Common stock Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		June 30, 2025 200,000 $2,000,000 60,426 $ 604,256	December 31, 2024 200,000 $2,000,000 60,442 $ 604,421		June 30, 2024
					200,000 $2,000,000 58,900 $ 589,003

Each share at a par value of $10 has one voting right and a right to receive dividends.

The share capital reserved for exercise of employee stock options is 7,800 thousand shares.

On May 29, 2025, the Company’s shareholders’ meeting resolved to capitalize earnings by issuing 1,191 thousand shares with a par value of $10 per share. The Board of Directors set the effective date of the capital increase on July 17, 2025.

(2) Capital surplus

2025. Capital surplus
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (I) Share premium (including exercised or lapsed employee stock options) Donations received from shareholders (II) May only be used to offset a deficit Other May not be used for any purpose Restricted stocks for employees	June 30, 2025 $ 235,817 84,732 154 50,817 $ 371,520	December 31, 2024 $ 250,212 84,732 131 61,218 $ 396,293		June 30, 2024
				$ 240,702 84,732 131 40,340 $ 365,905

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I. Such capital surplus may be used to offset a deficit. Additionally, when the Company has no deficit, the capital surplus may be distributed as cash dividends or transferred to share capital, limited to a certain percentage of the Company’s capital surplus and only once per year.
II. Cash donations from Delaware Asia Pacific Investment Company.
(3) Retained earnings and dividend policy

In accordance with the earnings distribution policy of the Articles of Association of Leadtrend, if there is any net profit after tax in the current period in the general accounts of each year, it shall be distributed in the following order:

I. Offset accumulated deficits (including the adjustment of the amount of undistributed earnings).
II. Set aside 10% of the remaining profit as legal reserve, unless the accumulated amount of the legal reserve has reached the total amount of paid-in capital of Leadtrend.
III. Set aside or reverse special reserve in accordance with the law or the regulations of the competent authority.
IV. The remaining balance, together with the undistributed earnings at the beginning of the period (including the adjustment of the amount of undistributed earnings) shall be proposed by the Board of Directors if dividends would be distributed by issuing new shares and resolved by the shareholders at the stockholders’ meeting.

Leadtrend shall distribute all or part of dividends and bonuses or legal reserve and capital surplus, in the form of cash, by authorizing the Board of Directors to report to the shareholders' meeting with the consent of more than two-thirds of the directors present and more than half of the directors present.

For the remuneration allocation policy in the Articles of Association of Leadtrend, please refer to Note 22 (7) employees’ compensation and directors’ remuneration.

The distribution of dividends of Leadtrend shall be based on the current year's earnings. As per the principle of dividend stability, the distribution ratio shall not be less than 30% of the current year's after-tax earnings, and the annual cash dividend shall not be less than 10% of the total cash and stock dividends of the current year.

The legal reserve shall be withdrawn until the balance reaches the total amount of Leadtrend's paid-in capital. The legal reserve may be used to offset deficits. When Leadtrend has no deficit, the portion of the legal reserve exceeding 25% of the total paid-in capital can be distributed in cash in addition to increasing share capital.

22 -

Leadtrend's earnings distribution plans for 2024 and 2023 are as follows:

Legal reserve Special reserve Cash dividends Stock dividends Cash dividends per share (NTD) Stock dividends per share (NTD)		2024 $ 11,189 $ 786) $ 47,623 $ 11,906 $ 0.800 $ 0.200		2023
	(			$ 2,887 $ 786 $ - $ 11,638 $ - $ 0.200

In addition, on April 10, 2025, the Board of Directors of Leadtrend resolved to distribute cash dividends of $23,812 thousand ($0.4 per share) from the capital surplus of 2024. Besides the cash dividends, the remaining surplus distribution items were also resolved at the regular meeting of shareholders on May 29, 2025.

On April 11, 2024, the Board of Directors of Leadtrend resolved 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 resolved at the regular meeting of shareholders on May 28, 2024.

(4) Other equity

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

operations
Balance at beginning of the period Recognized for the period Exchange differences in foreign operations Other Comprehensive Income and loss for the period Balance at end of the period	Six months ended June 30,
		2025	2024
	( ( (	$ 9,971 ( 35,052) 35,052) $ 25,081)	$ 786) 8,372 8,372 $ 7,586

The relevant exchange difference resulting from the exchange differences on translating the net assets of foreign operations from its functional currency to the Company's expressed currency (i.e., New Taiwan Dollar) is directly recognized as the exchange differences on translating the financial statements of foreign operations under other comprehensive income and loss items. The previously accumulated exchange differences on translating the financial statements of foreign operations shall be reclassified to profit or loss when disposed of by the foreign operations.

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II. Unearned employee compensation

The shareholders’ meetings of Leadtrend held on May 28, 2024, June 13, 2023, June 9, 2022 and June 23, 2020, respectively, resolved the restricted share plans for employees, please refer to Note 20.

Six months ended June 30,

	Six months ended June 30,
Balance at beginning of the period Share-based payment expenses recognized Revoked restricted stocks for employees Balance at end of the period	2025 2024
	( $ 45,681 ) ( $ 35,803 ) 12,829 9,945 1,149 836 ($ 31,703) ($ 25,022)

20. Share-based Payment

Restricted stock plans for employees

Information on the Leadtrend's issued new shares with restricted stocks for employees 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	Number of shares expected to be issued(In thousands) 1,200 1,200 420 420 420	Number of shares resolved by the Board of Directors (In thousands) 900 300 420 420 420	Granted date 2020/09/11 2021/08/03 2022/10/07 2023/10/06 2024/10/08	Effective date of the capital increase 2020/11/06 2021/08/03 2022/10/12 2023/10/11 2024/10/09	Number of actually issued shares(In thousands) 900 300 420 420 420	Fair value on the granted date
						34.35 122 47.1 66.5 88.4

Issuance of restricted stocks for employees in a total amount of $12,000 thousand and was resolved at the shareholders’ meeting of Leadtrend on June 23, 2020. A total of 1,200 thousand shares were issued. Issuance regulations are summarized as follows:

Employees to whom restricted stocks 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 Leadtrend upon expiration of any of the following vesting period, they will receive restricted stocks at the granting ratio as scheduled below:

24 -

Vesting period From the grant date until October 15 of the first year following the grant date. From the grant date until April 15 of the second year following the grant date. From the grant date until October 15 of the second year following the grant date. From the grant date until April 15 of the third year following the grant date. From the grant date until October 15 of the third year following the grant date. From the grant date until April 15 of the fourth year following the grant date.	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

Vesting period

From the grant date until October 15 of the first year following the
grant date.
From the grant date until April 15 of the second year following the
grant date.
From the grant date until October 15 of the second year following
the grant date.
From the grant date until April 15 of the third year following the
grant date.
From the grant date until October 15 of the third year following
the grant date.
From the grant date until April 15 of the fourth 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, Leadtrend will take back, without compensation, the restricted stocks 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, Leadtrend will take back, without compensation, the restricted stocks that have not vested in the employees that time.
(3) Leadtrend will give to the employees, without compensation, the dividends allocated based on the restricted stocks 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 Leadtrend 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 Leadtrend on behalf of the employees and the stock trust agency in the period for which restricted stocks for employees are trusted, Leadtrend shall take back, without compensation, the restricted stocks from the employees.

The restricted stocks for employees taken back by Leadtrend without compensation will be revoked by Leadtrend.

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

25 -

Six months ended June 30,2025 Outstanding at the beginning of the period Granted for the period Outstanding at the end of the period Granted weighted average fair value (NTD) Six months ended June 30,2024 Outstanding at the beginning of the period Granted for the period Recovered for the period Outstanding at the end of the period Granted weighted average fair value (NTD)	Restricted stock plan for employees 2020-1 Unit (In thousands) - - - $ 34.35 132.0 ( 132.0 ) - - $ 34.35	Restricted stock plan for employees 2020-2	Restricted stock plan for employees 2020-2
		(In	Unit thousands)
		33.5 ( 33.5) - $ 122 105.0 ( 35.0 ) ( 2.0) 68.0 $ 122

Issuance of restricted stocks for employees in a total amount of $ 4,200 thousand was resolved at the shareholders’ meeting of Leadtrend on June 9, 2022. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

Employees to whom restricted stocks 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 Leadtrend upon expiration of any of the following vesting period, they will receive restricted stocks at the granting ratio as scheduled below:

Leadtrend upon expiration of any of the following vesting period, restricted stocks at the granting ratio as scheduled below:	they will receive
Vesting period From the grant date until October 11 of the first year following the grant date. From the grant date until April 11 of the second year following the grant date. From the grant date until October 11 of the second year following the grant date. From the grant date until April 11 of the third year following the grant date. From the grant date until October 11 of the third year following the grant date. From the grant date until April 11 of the fourth year following the grant date.	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

Leadtrend upon expiration of any of the following vesting period,
restricted stocks at the granting ratio as scheduled below:

they will receive

Vesting period

From the grant date until October 11 of the first year following the
grant date.
From the grant date until April 11 of the second year following the
grant date.
From the grant date until October 11 of the second year following
the grant date.
From the grant date until April 11 of the third year following the
grant date.
From the grant date until October 11 of the third year following
the grant date.
From the grant date until April 11 of the fourth year following the
grant date.

Grantingratio

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

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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, Leadtrend will take back, without compensation, the restricted stocks 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, Leadtrend will take back, without compensation, the restricted stocks 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 Leadtrend 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 Leadtrend on behalf of the employees and the stock trust agency in the period for which restricted stocks for employees are trusted, Leadtrend shall take back, without compensation, the restricted stocks from the employees.

The restricted stocks for employees taken back by Leadtrend without compensation will be revoked by Leadtrend.

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

follows:
Six months ended June 30,2025 Outstanding at the beginning of the period Granted for the period Recovered for the period Outstanding at the end of the period Granted weighted average fair value (NTD) Six months ended June 30,2024 Outstanding at the beginning of the period Granted for the period Outstanding at the end of the period Granted weighted average fair value (NTD)	Restricted stock plan for employees 2022
	Unit(In thousands)
	171.0 ( 56.0 ) ( 3.0) 112.0 $ 47.1 292.5 ( 58.5) 234.0 $ 47.1

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Issuance of restricted stocks for employees in a total amount of $ 4,200 thousand was resolved at the shareholders’ meeting of Leadtrend on June 13, 2023. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

Leadtrend upon expiration of any of the following vesting period, restricted stocks at the granting ratio as scheduled below:	they will receive
Vesting period From the grant date until October 11 of the first year following the grant date. From the grant date until April 11 of the second year following the grant date. From the grant date until October 11 of the second year following the grant date. From the grant date until April 11 of the third year following the grant date. From the grant date until October 11 of the third year following the grant date. From the grant date until April 11 of the fourth year following the grant date.	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

Leadtrend upon expiration of any of the following vesting period,
restricted stocks at the granting ratio as scheduled below:

they will receive

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, Leadtrend will take back, without compensation, the restricted stocks 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, Leadtrend will take back, without compensation, the restricted stocks 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 Leadtrend 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 Leadtrend on behalf of the employees and the stock trust agency in the period for which restricted stocks for employees
28 -

are trusted, Leadtrend shall take back, without compensation, the restricted stocks from the employees.

The restricted stocks for employees taken back by Leadtrend without compensation will be revoked by Leadtrend.

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

follows:
Six months ended June 30,2025 Outstanding at the beginning of the period Granted for the period Recovered for the period Outstanding at the end of the period Granted weighted average fair value (NTD) Six months ended June 30,2024 Outstanding at the beginning of the period Recovered for the period Outstanding at the end of the period Granted weighted average fair value (NTD)	Restricted stock plan for employees 2023
	Unit(In thousands)
	( ( (	317.5 63.5 ) 10.0) 244.0 $ 66.5 420.0 33.0) 387.0 $ 66.5

Issuance of restricted stocks for employees in a total amount of $ 4,200 thousand was resolved at the shareholders’ meeting of Leadtrend on May 28, 2024. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

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Vesting period From the grant date until October 11 of the first year following the grant date. From the grant date until April 11 of the second year following the grant date. From the grant date until October 11 of the second year following the grant date. From the grant date until April 11 of the third year following the grant date. From the grant date until October 11 of the third year following the grant date. From the grant date until April 11 of the fourth 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, Leadtrend will take back, without compensation, the restricted stocks 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, Leadtrend will take back, without compensation, the restricted stocks 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 Leadtrend 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 Leadtrend on behalf of the employees and the stock trust agency in the period for which restricted stocks for employees are trusted, Leadtrend shall take back, without compensation, the restricted stocks from the employees.

The restricted stocks for employees taken back by Leadtrend without compensation will be revoked by Leadtrend.

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

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Six months ended June 30, 2025 Outstanding at the beginning of the period Recovered for the period Outstanding at the end of the period Granted weighted average fair value (NTD)	Restricted stock plan for employees 2024	Restricted stock plan for employees 2024
	Unit(In thousands)
	(	414.0 9.0) 405.0 $ 88.4

Due to resignation of employees, 22 thousand and 35 thousand restricted stocks for employees were recovered in 2025 and 2024 respectively, and there were 16 thousand and 35 thousand shares among such recovered shares to be revoked.

The compensation cost of the restricted stocks for employees as recognized for the six months ended June 30 of 2025 and 2024 are $12,829 thousand and $9,945 thousand respectively.

21. Operating Revenue

thousand respectively. Operating Revenue
Revenue from contracts with customers Integrated circuits (1) Contractual balance Revenue from customer contracts integrated circuit （Note 9）	Three months ended June 30, 2025 2024 $ 343,147 $ 378,685 June 30, 2025 December 31,2024 $ 215,443 $ 236,825			Six months ended June 30, 2025 2024 $ 687,937 $ 689,769 June 30, 2024 January 1, 2024 $ 258,932 $ 191,426
	2025 $ 343,147 June 30, 2025			2025 $ 687,937 June 30, 2024


		$ 215,443	$ 236,825		$ 258,932	$ 191,426

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(2) Itemized revenue from contracts with customers

Itemized by areas

Itemized by areas
Taiwan (where Leadtrend is located) Mainland China Korea Others	Three months ended June 30, 2025 2024 $ 174,195 $ 200,900 166,259 177,220 663 565 2,030 - $ 343,147 $ 378,685		Six months ended June 30,
		2025 $ 174,195 166,259 663 2,030 $ 343,147	2025 $ 352,334 332,115 1,458 2,030 $ 687,937	2024
				$ 354,170 334,242 1,357 - $ 689,769

22. Non-operating Income and Expenses

(1) Interest income

Interest income
Bank deposits Repurchase agreement bond Deposit interest Commercial paper	Three months ended June 30, 2025 2024 $ 1,631 $ 1,847 114 - 11 9 - 12 $ 1,756 $ 1,868		Six months ended June 30,
		2025 $ 1,631 114 11 - $ 1,756	2025 $ 3,301 159 22 16 $ 3,498	2024
				$ 3,104 - 19 31 $ 3,154

(2) Other Income

Repurchase agreement bond 114 - Deposit interest 11 9 Commercial paper - 12 $ 1,756 $ 1,868 Other Income	114 - 11 9 - 12 $ 1,756 $ 1,868	114 - 11 9 - 12 $ 1,756 $ 1,868	114 - 11 9 - 12 $ 1,756 $ 1,868	114 - 11 9 - 12 $ 1,756 $ 1,868		159 - 22 19 16 31 $ 3,498 $ 3,154	159 - 22 19 16 31 $ 3,498 $ 3,154	159 - 22 19 16 31 $ 3,498 $ 3,154
Three months ended June 30, 2025 2024 Lease income Other operating leases $ 466 $ 497 Government grants income - 696 Others 265 293 $ 731 $ 1,486 Other gains and losses Three months ended June 30, 2025 2024 Gains and losses on financial assets Financial assets at fair value through profit or loss $ 354 $ 361 Net gain (loss) on foreign exchange ( 20,104 ) 3,276 Loss on disposal of property, plant and equipment - ( 8 ) Others - 8 ($ 19,750) $ 3,637	Three months ended June 30,					Six months ended June 30,
		2025		2024		2025		2024

		2025		2024		2025		2024
	( (	$ 354 20,104 ) - - $ 19,750)	(	$ 361 3,276 8 ) 8 $ 3,637	( ( (	$ 759 16,307 ) 1 ) - $ 15,549)	(	$ 774 8,622 8 ) - $ 9,388

(3) Other gains and losses

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(4) Financial costs

Financial costs
Interest on lease liabilities Interest from bank borrowings	Three months ended June 30, 2025 2024 $ 164 $ 97 18 71 $ 182 $ 168		Six months ended June 30,
		2025 $ 164 18 $ 182	2025 $ 347 48 $ 395	2024
				$ 206 71 $ 277

(5) Depreciation and amortization

Three months ended June 30, 2025 2024 $ 4,248 $ 4,756 13,679 14,266 $ 17,927 $ 19,022 Three months ended June 30 2025 2024 $ 253 $ 253 1,695 1,325 $ 1,948 $ 1,578	Six months ended June 30,	Six months ended June 30,
	2025 2024 $ 8,652 $ 9,411 27,038 29,201 $ 35,690 $ 38,612 Six months ended June 30	2024

2025 $ 253 1,695 $ 1,948	2025 $ 506 3,279 $ 3,785	2024
		$ 506 2,970 $ 3,476

(6) Employee benefit expenses

Post-employment benefit plans (Note 18) Defined contribution plan Share-based payment (Note 20) Delivery of equity Other employee benefits Total employee benefit expenses Summary by function Operating costs Operating Expenses	Three months ended June 30, 2025 2024 $ 2,767 $ 2,681 6,025 4,467 76,514 87,335 $ 85,306 $ 94,483 $ 12,582 $ 14,463 72,724 80,020 $ 85,306 $ 94,483	Three months ended June 30, 2025 2024 $ 2,767 $ 2,681 6,025 4,467 76,514 87,335 $ 85,306 $ 94,483 $ 12,582 $ 14,463 72,724 80,020 $ 85,306 $ 94,483	Three months ended June 30, 2025 2024 $ 2,767 $ 2,681 6,025 4,467 76,514 87,335 $ 85,306 $ 94,483 $ 12,582 $ 14,463 72,724 80,020 $ 85,306 $ 94,483		Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
		2025 $ 2,767 6,025 76,514 $ 85,306 $ 12,582 72,724 $ 85,306			2025 $ 5,518 12,829 156,522 $ 174,869 $ 26,229 148,640 $ 174,869		2024
							$ 5,363 9,945 167,860 $ 183,168 $ 26,622 156,546 $ 183,168

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(7) Employees’ compensation and directors’ remuneration

In accordance with Leadtrend’s Articles of Incorporation, Leadtrend allocates employees’ compensation and directors’ remuneration from the current pre-tax earnings before distribution, with no less than 5% allocated to employees’ compensation and no more than 2% allocated to directors’ remuneration, respectively. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of Leadtrend resolved the amendments to Leadtrend’s Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of employees’ compensation and directors’ remuneration from the current pre-tax earnings before distribution, with no less than 10% allocated to employees’ compensation and no more than 2% allocated to directors’ remuneration. Additionally, no less than 40% of the employees’ compensation mentioned above shall be distributed to non-executive employees.

For the three months and six months ended June 30, 2025, and 2024, employees’ compensation and directors’ remuneration were accrued as follows:

Accrual rate

follows: Accrual rate
Six months ended June 30, 2025 2024 Employees’ compensation 14% 17% Directors’ remuneration 1% 2% Amount Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Employees’ compensation $ 278 $ 8,046 $ 3,160 $ 9,909 Directors’ remuneration $ 26 $ 758 $ 297 $ 933	Six months ended June 30,
	2025	2024
		17% 2% Six months ended June 30, 2025 2024 $ 3,160 $ 9,909 $ 297 $ 933
		2025 $ 3,160 $ 297

If there is a change in the amounts after the consolidated financial statements are authorized for issue, the differences will be handled according to the change in accounting estimates and adjusted and recorded in the next year.

The employees’ compensation and directors’ remuneration for the years ended December 31, 2024, and 2023 were resolved by Leadtrend’s Board of Directors on February 20, 2025, and February 29, 2024, respectively, as follows:

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Amount

Amount
Employees’ compensation Directors’ remuneration	2024 Cash Share $ 21,147 $ - 1,895 -	2023
	Cash $ 21,147 1,895	Cash $ 5,197 489	Share
			$ - -

There is no difference between the actual amounts of employees’ compensation and directors’ remuneration paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023, respectively.

Information on the employees’ compensation and directors’ remuneration by Leadtrend’s Board of Directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

(8) Gains and losses on foreign currency exchange

Foreign currency exchange gains Foreign currency exchange losses Net gain (loss)	Three months ended June 30, 2025 2024 $ 1,353 $ 174 ( 21,457) 3,102 ($ 20,104) $ 3,276	Three months ended June 30, 2025 2024 $ 1,353 $ 174 ( 21,457) 3,102 ($ 20,104) $ 3,276	Three months ended June 30, 2025 2024 $ 1,353 $ 174 ( 21,457) 3,102 ($ 20,104) $ 3,276		Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
		2025 $ 1,353 21,457) $ 20,104)			2025 $ 5,895 22,202) $ 16,307)		2024
	( (			( (		(	$ 8,885 263) $ 8,622

23. Income Tax

(1) Income tax recognized in profit or loss

The main components of income tax (benefit) expense are as follows:

Current income tax Incurred in current period Tax on undistributed earnings Adjustments for prior year Deferred income tax Incurred in current period Income tax (benefit) expense recognized in profit or loss	Three months ended June 30, 2025 2024 $ 275 $ 2,265 2,098 678 ( 1,218 ) ( 9,894 ) ( 34) ( 172) $ 1,121 ($ 7,123)	Three months ended June 30, 2025 2024 $ 275 $ 2,265 2,098 678 ( 1,218 ) ( 9,894 ) ( 34) ( 172) $ 1,121 ($ 7,123)	Three months ended June 30, 2025 2024 $ 275 $ 2,265 2,098 678 ( 1,218 ) ( 9,894 ) ( 34) ( 172) $ 1,121 ($ 7,123)		Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
		2025 $ 275 2,098 1,218 ) 34) $ 1,121			2025 $ 3,247 2,098 1,218 ) - $ 4,127		2024
	( (		( ( (	(		( (	$ 1,350 678 9,894 ) 743 $ 7,123)

(2) The assessment of income tax returns

Leadtrend’s income tax returns through 2023 have been assessed and approved by the Tax Authorities.

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24. Earnings per Share

Unit: NTD per share

Earnings per Share			Unit: NTD per share	Unit: NTD per share
Basic earnings per share Diluted earnings per share	Three months ended June 30, 2025 2024 $ 0.03 $ 0.74 $ 0.03 $ 0.73		Six months ended June 30,
		2025 $ 0.03 $ 0.03	2025 $ 0.29 $ 0.29	2024
				$ 0.91 $ 0.90

In calculating earnings per share, the impact of the allotment of shares without compensation has been retroactively adjusted, with the effective date of the capital increase set as July 17, 2025. Due to this retroactive adjustment, the changes in basic and diluted earnings per share for the three months and six months ended June 30, 2024, are as follows:

Unit: NTD per share

Basic earnings per share Diluted earnings per share	Before retroactive adjustment Three months ended June 30,2024 Six months ended June 30,2024 $ 0.75 $ 0.93 $ 0.75 $ 0.92	Before retroactive adjustment Three months ended June 30,2024 Six months ended June 30,2024 $ 0.75 $ 0.93 $ 0.75 $ 0.92	After retroactive	After retroactive	adjustment
	Three months ended June 30,2024 $ 0.75 $ 0.75		Three months ended June 30,2024 $ 0.74 $ 0.73		Six months ended June 30,2024
					$ 0.91 $ 0.90

The net profit and weighted average shares of common stock used to calculate earnings per share are as follows:

Net profit for the period

Net profit for the period
Net profit used to calculate basic and diluted earnings per share Number of shares The weighted average number of common shares used to calculate basic earnings per share Impact of dilutive potential common stock: Restricted stocks for employees Employees’ compensation The weighted average number of common shares used to calculate diluted earnings per share	Three months ended June 30,			Six months ended June 30,
		2024			2024
	2025 60,817 169 67 61,053		2025 60,753 218 154 61,125

If Leadtrend offered to settle the compensation paid to employees in stock or cash, Leadtrend assumed that the entire amount of the compensation will be settled in stock, and the resulting potential shares were included in the weighted average

36 -

number of shares outstanding used in the computation of diluted earnings per shares, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

25. Capital Risk Management

The Company manages its capital to ensure that it is able to maximize shareholders' returns as a going concern. There has been no significant change in the Company's overall strategy.

The capital structure of the Company consists of share capital, capital surplus, retained earnings and other equity.

The Company is not subject to other external capital requirements.

26. Financial Instruments

－
(1) Fair value information Financial instruments not measured at fair value.

The management of the Company believes that the book amounts of the financial assets and financial liabilities not measured at fair value are close to fair value.

June 30, 2025

fair value. June 30, 2025
Financial assets Financial assets measured at amortized cost -Domestic corporate bonds December 31, 2024 Financial assets Financial assets measured at amortized cost -Domestic corporate bonds	Carrying amount $ 1,000 Carrying amount		Fair value		Total $ 995
		Level 1 $ -	Level 2 Level 3 $ 995 $ - Fair value

		Level 1	Level 2 $ 994	Level 3	Total
	$ 1,000	$ -		$ -	$ 994

The above Level 2 fair value measurement is based on quoted prices obtained from the Taipei Exchange.

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(2) Fair value information - Financial instruments measured at fair value on a recurring basis.
I. Fair value hierarchy

recurring basis. I.Fair value hierarchy
June 30, 2025 Financial assets at fair value through profit or loss Fund beneficiary certificate December 31, 2024 Financial assets at fair value through profit or loss Fund beneficiary certificate June 30, 2024 Financial assets at fair value through profit or loss Fund beneficiary certificate	Level 1 $ 95,698 Level 1 $103,975 Level 1 $ 89,111	Level 2 $ - Level 2 $ - Level 2 $ -	Level 3 $ - Level 3	Total $ 95,698 Total


			$ - Level 3 $ -

There were no transfer between Level 1 and Level 2 for the six months ended June 30, 2025 and 2024.

(3) Categories of financial instruments

Financial Assets Measured at fair value through profit or loss Non-derivative financial assets measured at fair value	June 30, 2025 $ 95,698	December 31, 2024 $ 103,975	June 30, 2024
			$ 89,111

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forward from previous page)
Financial assets at amortized costs Cash and cash equivalents Notes and accounts receivable Financial assets measured at amortized cost- non-current Refundable deposits Financial liabilities Measured at amortized cost Short-term borrowings Accounts payable Long-term borrowings (including current portion) Deposit received	June 30, 2025	December 31, 2024 $ 493,439 236,825 1,000 3,663 $ - 108,662 35,000 13,138	June 30, 2024
	$ 550,631 215,443 1,000 3,574 $ - 109,071 - 12,753		$ 494,099 258,932 - 3,517 $ 35,000 127,120 - 6,117

(4) Purpose and policy of financial risk management

Main financial instruments of the Company include notes and accounts receivable, refundable deposits, accounts payable, borrowings 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.

I. Market Risk

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

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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.

(I) Exchange rate risk

Some of the Company’s cash inflows and outflows are denominated in foreign currencies with the effect of natural hedging. The Company’s management of the exchange rate risk aims to hedge rather than making profits.

The management strategy of exchange rate risk 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 29.

Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

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, other receivables, accounts payable and other payables. The positive number in the table below shows the amount increasing in the net profit before income tax when the NTD against each foreign currency depreciates by 5%. If the NTD against each foreign currency appreciates by 5%, the impact on the net profit before income tax will be a negative of the same amount.

Net profit before income tax	Impact of USD Six months ended June 30,2025 Six months ended June 30,2024 $ 3,857 $ 4,618	Impact of CNY	Impact of CNY
	Six months ended June 30,2025 $ 3,857	Six months ended June 30,2025 $ 5,243	Six months ended June 30,2024
			$ 5,763

The impact primarily arises from receivables and payables in USD and CNY that remained outstanding on the balance sheet date, with cash flows not hedged by the Company.

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During the current period, the Company's sensitivity to USD and CNY exchange rates decreased primarily due to a reduction in the net balances of assets denominated in USD and CNY at the end of the period.

(II) Interest rate risk

Interest rate exposures arise as entities under the Company hold assets and liabilities at both fixed and floating rates.

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

Fair value interest rate risk －Financial assets －Financial liabilities Cash flow interest rate risk －Financial assets	June 30, 2025	December 31, 2024 $ 342,900 69,641 149,991	June 30, 2024
	$ 354,700 27,573 195,538		$ 345,900 51,880 147,799

Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk of non-derivative instruments at the balance sheet date. For floating rate assets, the analysis assumes that the amount of assets outstanding on the balance sheet date is outstanding during the reporting period.

If the interest rate increases/decreases by 0.1%, all other variables held constant, the Company's net profit before income tax for the six months ended June 30, 2025 and 2024 will increase/decrease by $98 thousand and $74 thousand respectively, due to the interest rate risk of the Company's variable interest rate net assets.

II. Credit risk

Credit risk refers to the risk of financial loss to the Company caused by default of contractual obligations by the other trading party. As of the balance sheet date, the Company's greatest credit risk exposure to non-performance of obligations by the other trading party is primarily attributable to the carrying value of financial assets recognized in the consolidated balance sheet.

To reduce credit risk, the management of the Company has appointed a dedicated team responsible for the determination of credit lines, credit approval and other monitoring procedures to ensure that appropriate actions are taken to collect overdue receivables. In addition, the Company reviews the recoverable amounts of receivables on a case-by-case basis at the balance sheet date to ensure that appropriate impairment losses have been

41 -

included in unrecoverable receivables. Accordingly, the Company's management believes that the Company's credit risk has been significantly reduced.

Accounts receivable cover a large number of customers, dispersed in different industries and geographical regions. The Company continuously evaluates the financial position of its customers involving in accounts receivable.

Except for Customers A, B, C, D, E, F, and G, as described below, the Company does not have a material credit risk exposure to any single trading party or any group of trading parties with similar characteristics. When trading parties are related enterprises, the Company classifies them as trading parties with similar characteristics. As of June 30, 2025, excluding Customers A, B, C, D, E, F, and G, the concentration of credit risk related to other trading parties did not exceed 5% of total accounts receivable. The credit risks associated with Customers A, B, C, D, E, F, and G are limited, as they are highly reputable manufacturers.

III. Liquidity risk

The Company manages liquidity risk by monitoring and maintaining an adequate level of cash and cash equivalents to finance its operations and mitigate the impact of cash flow fluctuations.

(I) Liquidity of non-derivative financial liabilities

The table below presents the maturity analysis for the remaining contracts of non-derivative financial liabilities. This analysis is based on the undiscounted cash flows of these liabilities, including both interest and principal payments, calculated as of the earliest date on which the Company is required to make repayment.

June 30, 2025

June 30, 2025
Accounts payable Dividends payable Lease liabilities Other current liabilities	Less than 1 month $ 65,522 $ - $ 816 $ 11,822		1 to 3 months $43,549 $71,435 $ 2,168 $ 5,067	3 months to 1year $ - $ - $10,289 $ -		1 to 5 years $ - $ - $14,950 $ -		Total
								$ 109,071 $ 71,435 $ 28,223 $ 16,889

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

liabilities is as follows:
Lease liabilities	Less than 1 year $ 13,273	1 to 5years $ 14,950	Over 5years
				$ -

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December 31, 2024

Accounts payable Lease liabilities Fixed rate instruments Other current liabilities	Less than 1 month $ 66,437 $ 816 $ - $ 8,229		1 to 3 months $ 42,225 $ 2,218 $ - $ 8,312	3 months to 1year $ - $ 10,544 $ 10,208 $ -		1 to 5 years $ - $ 22,098 $ 24,792 $ -	Total
							$ 108,662 $ 35,676 $ 35,000 $ 16,541

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

instruments $ - $ - $ 10,208 $ 24,792 $ 35,000 Other current liabilities $ 8,229 $ 8,312 $ - $ - $ 16,541 Further information on the maturity analysis of the above financial liabilities is as follows:	instruments $ - $ - $ 10,208 $ 24,792 $ 35,000 Other current liabilities $ 8,229 $ 8,312 $ - $ - $ 16,541 Further information on the maturity analysis of the above financial liabilities is as follows:	instruments $ - $ - $ 10,208 $ 24,792 $ 35,000 Other current liabilities $ 8,229 $ 8,312 $ - $ - $ 16,541 Further information on the maturity analysis of the above financial liabilities is as follows:
Less than 1 year 1 to 5years Over 5years Lease liabilities $ 13,578 $ 22,098 $ - Fixed rate instruments 10,208 24,792 - $ 23,786 $ 46,890 $ - June 30, 2024 Less than 1 month 1 to 3 months 3 months to 1year 1 to 5 years Total Accounts payable $78,677 $48,443 $ - $ - $127,120 Dividends payable$ - $23,275 $ - $ - $ 23,275 Lease liabilities $ 834 $ 2,250 $ 5,501 $ 8,662 $ 17,247 Other current liabilities $ 11,508 $ 4,735 $ - $ - $ 16,243 Further information on the maturity analysis of the above financial liabilities is as follows: Less than 1 year 1 to 5years Over 5years Lease liabilities $ 8,585 $ 8,662 $ -
		$ -

June 30, 2024

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

27. Transactions with Related Parties

(1) All transactions between Leadtrend and its subsidiaries, account balances, gains and losses have been wiped out at the time of consolidation and are not disclosed in this note. The Company has no dealings with any other affiliated party.
(2) Compensation of key management personnel

Short-term employee benefits Post-employment benefits Share-based payment		Three months ended June 30, 2025 2024 $ 8,219 $ 6,424 130 132 1,181 664 $ 9,530 $ 7,220	Three months ended June 30, 2025 2024 $ 8,219 $ 6,424 130 132 1,181 664 $ 9,530 $ 7,220	Six months ended June 30,	Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
		2025 $ 8,219 130 1,181 $ 9,530			2025 $ 14,499 260 2,415 $ 17,174		2024
							$ 13,106 263 1,496 $ 14,865

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The compensation of directors and key management personnel is determined by the Remuneration Committee in accordance with individual performance and market trends.

28. Significant Contingent Liabilities and Unrecognized Contractual Commitments

The significant commitments of the Company as of the balance sheet date are as follows:

(1) Significant commitments

Leadtrend signed a patented technology transfer agreement with a company in March 2018, and the transfer consideration was paid in three phases. The total amount of the first and second contractual amounts was US$ 600, and the third-phase was paid based on the profits of the patented derivative products within three years after the offering date, amounting at least US$ 300.

29. Information on Foreign Currency Assets and Liabilities with Significant Impact

The following information is summarized in terms of foreign currencies other than the Company's individual functional currency. The exchange rate disclosed refers to the exchange rate at which such foreign currencies are converted to functional currency. Foreign currency assets and liabilities with significant impact are listed below:

June 30, 2025 Financial assets Monetary items USD USD CNY Financial liabilities Monetary items USD	Foreign currency $ 4,583 2 25,678 1,952	Unit: In thousands in each foreign currency Exchange rate Carrying amount 29.300 (USD：NTD) $ 134,274 7.1621 (USD：CNY) 64 4.091 (CNY：NTD)105,050 $ 239,388 29.300 (USD：NTD)$ 57,207

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December 31, 2024

December 31, 2024
Financial assets Monetary items USD USD CNY Financial liabilities Monetary items USD CNY June 30, 2024 Financial assets Monetary items USD USD CNY Financial liabilities Monetary items USD	Foreign currency $ 4,182 2 20,221 Foreign currency $ 1,772 112 Foreign currency $ 4,962 2 25,932 2,118	Exchange rate 32.785 (USD：NTD) 7.321 (USD：CNY) 4.478 (CNY：NTD) Exchange rate 32.785 (USD：NTD) 4.478 (CNY：NTD) Exchange rate 32.450 (USD：NTD) 7.3003 (USD：CNY) 4.445 (CNY：NTD) 32.450 (USD：NTD)	Carrying amount
			$ 137,091 71 90,550 $ 227,712 Carrying amount
			$ 58,089 501 $ 58,590 Carrying amount
			$ 161,026 71 115,268 $ 276,365 $ 68,731

The realized and unrealized net foreign exchange (losses) gains for the three months and six months ended June 30, 2025 and 2024 was ($20,104) thousand, $3,276 thousand, ($16,307) thousand and $8,622 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.

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30. Matters Disclosed in Notes

(1) Major transactions and (2) Related information on reinvested business: At the time of preparation of these consolidated financial statements, all significant transactions between the parent and subsidiaries and their balances have been wiped out.

I. Loans to others: None.
II. Provision of endorsements and guarantees to others: None.
III. Holding of significant marketable securities at the end of the period:

Holding company name	Type of marketable securities	Name of marketable securities	Relationship with the holding company	Financial statement account		June 30, 2025	June 30, 2025		Remark
					Number of shares or Unit	Carrying amount	Percentage of Ownership	Fair Value
Leadtrend Technology (Shenzhen) Ltd.	Fund	Fund B on Mainland China Resources YuanDa Cash Connect Money Market	－	Financial assets at fair value through profit or loss - current	-	$48,118	-	$ 48,118	Note 1
		ICBC Financial Management Corporation Tianlibao Net Value Financial Products	－	Financial assets at fair value through profit or loss - current	-	47,580	-	47,580	Note 1

Note 1: Based on net value as at June 30, 2025.
Note 2: No security, pledged loans or other agreed restriction for use of the securities as listed above has been offered as of June 30, 2025.

Note3: The securities listed in this table are determined by the Company based on the principle of materiality.

IV. Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital:

Purchaser /seller	Counterparty	Relation	Trans	Trans	action	action	Transaction terms different from those for general transactions, and reasons	Transaction terms different from those for general transactions, and reasons	Notes a receiva	nd accounts ble(payable)	Remark
			Sale (purchase )	Amount	Percentage of total purchase (sales)	Credit term			Balance	Percentage of the total notes and accounts receivable (payable)
							Unit price	Credit period
Leadtrend	Leadtrend Technology (Shenzhen) Ltd.	Parent company and subsidiary	Sale	$205,578	35	Net 60 days, end of the month	Note	Approximat ely the same	$ 74,433	47	－

Note: The sales price charged by Leadtrend to related parties is determined in accordance with normal business practices.
V. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
VI. Others: Information and amount of business relations and important transactions between the parent company and subsidiaries:
46 -

Six months ended June 30, 2025

No. 0 0	Companyname Leadtrend Technology Corporation Leadtrend Technology Corporation	Counterparty Leadtrend Technology (Shenzhen) Ltd. Leadtrend Technology (Shenzhen) Ltd.	Relationship (Note 2) 1 1		Transaction information	Transaction information	Transaction information
				Item Sales revenue Accounts receivable - related parties	Amount $205,578 74,433	Trading condition Note 3 Note 3	Ratio of total sales or assets
							30% 4%

Note 1: The number of transactions with the parent company is 0. Subsidiaries are numbered sequentially, starting with number 1.
Note 2: The number 1 represents transactions from the parent company to the subsidiary.
Note 3: There is no appropriate object comparable to the sales price between subsidiaries, and the collection period with the subsidiary is comparable to that with ordinary customers.
Note 4: The Company may decide whether to disclose the significant transactions listed in this table based on the principle of materiality.
VII. Information on investee companies: None.
(3) Information on investments in Mainland China:

The Company has no other matters to be disclosed except the following:

I. Name of investee company in Mainland China, main business, paid-in capital, investment method, funds remitted in and out, shareholding, investment gain or loss, book value of investments at the end of the period, investment gain (loss) remitted back already, and limit of investments in Mainland China:

Unit: In thousands of NTD; in thousands of USD

Investee company	Main business	Paid-in capital	Invest ment method	Accumulated amount of remittance from Taiwan at the beginning of the period	Accumulated amount of remittance from Taiwan at the beginning of the period	Amount re Taiwan to China/ remitte to Taiwa the	mitted from Mainland Amount d back n during period	Accumulated amount of remittance from Taiwan at the end of the period	I co pr d	nvestee mpany’s ofit (loss) uring the period	Percentage of shares held by the Company through direct or indirect investment	Investment gain (loss) recognized during the period (Note 2)	Ending book value of investment (Note 2)	Investment gain remitted back to Taiwan at the end of the period
						Remitted to Mainland China	Remitted back to Taiwan
Leadtrend Technology (Shenzhen) Ltd.	Computer software design service, computer system integration service, wholesale of integrated circuits and related electronic products, and agent import and export business activities	$290,070 ( USD9,900)	Note 1	(	$206,565 USD7,050)	$ -	$ -	$206,565 ( USD7,050)	$ (	18,401 USD578 )	100%	$18,401 ( USD578 )	$ 305,835 (USD10,438)	$ -

Accumulated amount of remittance from Taiwan to Mainland China at the end of the period					Investment amount approved by the Investment Commission, Ministry of Economic Affairs					60% of net worth, the limit of investment provided by the Investment Commission, Ministry of Economic Affairs
$206,565(USD7,050)					$290,070(USD 9,900)					$1,013,826

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 NTD at the exchange rate announced on the reporting date.
47 -
Note 4: As of June 30, 2025, Leadtrend had an investment amount of US$9,900 thousand approved by the Investment Review Committee of the Ministry of Economic Affairs, and had actually remitted US$7,050 thousand. The remaining uninvested amount has expired.
II. Information on major transactions with invested companies in Mainland China directly or indirectly through a third-party, and related prices, terms of payment, unrealized gains and losses and any other information which may be helpful to understand the impact of investment in Mainland China on financial statements: Please refer to section (1) VI. Others.

31. Segment Information

The Company's operating decision makers focus on and use product-specific information to allocate resources and evaluate segment performance. Each product has similar economic characteristics and is marketed through a unified and centralized marketing approach; therefore, the Company summarizes and reports them within a single operating segment. Additionally, the segment information provided to operating decision makers for review is measured on the same basis as the consolidated financial statements. Consequently, for the segment's revenue and operating results reported for the three months and six months ended June 30, 2025, and 2024, please refer to the consolidated income statements for those periods. For the segment's assets reported as of June 30, 2025, and 2024, please refer to the consolidated balance sheets as of those dates, respectively.

48 -

AI assistant

LD — Interim / Quarterly Report 2025

52348_rns_2025-11-12_df1b358c-7b7b-4329-9a58-da78b1bcf524.pdf

Leadtrend Technology Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Conclusion

Notice to Readers:

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of June 30, 2025, December 31, 2024, and June 30, 2024 (In thousands of New Taiwan Dollars)

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In thousands of New Taiwan Dollars, except earnings per share)

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(In thousands of New Taiwan Dollars, unless stated otherwise)

LEADTREND TECHNOLOGY Corporation AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In thousands of New Taiwan Dollars)

(Brought forward from previous page)

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. History of Company

2. Approval Date and Procedures of the Financial Statements

3. Application of New, Amended and Revised Standards and Interpretations

(3) Basis of consolidation

Income tax expense

5. Material Accounting Judgements, Estimates and Key Sources of Assumption

Uncertainty

6. Cash and Cash Equivalents

7. Financial Assets at Fair Value through Profit or Loss

9. Notes and Accounts Receivable

Aging analysis of net accounts receivable

11. Subsidiary

(1) Subsidiaries incorporated into consolidated financial statements

12. Property, Plant and Equipment

(1) Assets used by the Company

(2) Assets subject to operating leases

13. Lease Agreements

(4) Other lease Information

14. Intangible Assets

An analysis of amortization expenses by function

16. Borrowings

(1) Short-term borrowings

(2) Long-term borrowings

17. Other Current Liabilities

18. Post-employment benefits plans

(1) Defined contribution plan

19. Equity

(4) Other equity

II. Unearned employee compensation

20. Share-based Payment

Restricted stock plans for employees

21. Operating Revenue

(2) Itemized revenue from contracts with customers

Itemized by areas

22. Non-operating Income and Expenses

(1) Interest income

(2) Other Income

(3) Other gains and losses

(4) Financial costs

(5) Depreciation and amortization

(6) Employee benefit expenses

Accrual rate

Amount

(8) Gains and losses on foreign currency exchange

23. Income Tax

(1) Income tax recognized in profit or loss

(2) The assessment of income tax returns

24. Earnings per Share

Net profit for the period

25. Capital Risk Management

26. Financial Instruments

June 30, 2025

(4) Purpose and policy of financial risk management

I. Market Risk

Sensitivity analysis

(II) Interest rate risk

Sensitivity analysis

II. Credit risk

III. Liquidity risk

June 30, 2025

December 31, 2024

June 30, 2024

27. Transactions with Related Parties

28. Significant Contingent Liabilities and Unrecognized Contractual Commitments

LD Interim / Quarterly Report 2025