LD - Interim / Quarterly Report 2025

Stock Code: 3588

Leadtrend Technology Corporation and Subsidiaries

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

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

INDEPENDENT AUDITORS’ REVIEW REPORT The Board of Directors and Shareholders Leadtrend Technology Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Leadtrend Technology Corporation and its subsidiaries as of September 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2025 and 2024, as well as the consolidated statements of changes in equity and cash flows for the nine months ended September 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 September 30, 2025 and 2024, its consolidated financial performance for the three months and nine months ended September 30, 2025 and 2024, as well as its consolidated cash flows for the nine months ended September 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

November 6, 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 September 30, 2025, December 31, 2024, and September 30, 2024 (In thousands of New Taiwan Dollars)

Code 1100 1110 1170 130X 1470 11XX 1540 1600 1755 1780 1900 15XX 1XXX 2170 2200 2230 2280 2320 2399 21XX 2540 2570 2580 2645 25XX 2XXX 3110 3210 3251 3273 3280 3310 3320 3350 3410 3491 3XXX	Assets Current asset Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Notes and accounts receivable (Note 9) Inventories (Note 10) Other current assets (Note 15) Total current assets Non-current assets Financial assets at amortized cost- non-current (Note 8) Property, plant and equipment (Note 12) Right-of-use assets (Note 13) Intangible assets (Note 14) Other non-current assets (Note 15) Total non-current assets Total assets Liabilities and Equity Current liabilities Accounts payable Remuneration payable to employees and directors (Note 22) Current income tax liabilities (Note 4 and 23) Lease liabilities - current (Note 13) Long-term borrowings -current portion (Note 16) Other current liabilities (Note 17) Total current liabilities Non-current liability Long-term borrowings (Note 16) Deferred tax liabilities Lease liabilities - non-current (Note 13) Deposits received Total non-current liabilities Total liabilities Equity (Notes 19 and 20) Share capital Common stock Capital surplus Share premium Donations received from shareholders Restricted stocks for employees Others Retained earnings Legal reserve Special reserve Undistributed earnings Other equity Exchange differences on translating the financial statements of foreign operations Unearned employee compensation Total equity Total liabilities and equity	September30,	2025 ％ 25 5 11 33 1 75 - 23 1 1 - 25 100 6 - - 1 - 4 11 - - 1 1 2 13 31 12 4 3 - 12 - 27 ( 1 ) ( 1) 87 100		December31,2024 Amount ％ $ 493,439 24 103,975 5 236,825 11 709,100 34 12,047 1 1,555,386 75 1,000 - 462,119 22 34,656 2 7,130 - 8,084 1 512,989 25 $2,068,375 100 $ 108,662 5 23,042 1 8,682 - 12,989 1 10,208 1 79,083 4 242,666 12 24,792 1 335 - 21,652 1 13,138 1 59,917 3 302,583 15 604,421 29 250,212 12 84,732 4 61,218 3 131 - 218,171 11 786 - 581,831 28 9,971 - 45,681) ( 2) 1,765,792 85 $2,068,375 100	September30,	September30,	2024
					Amount $ 493,439 103,975 236,825 709,100 12,047 1,555,386 1,000 462,119 34,656 7,130 8,084 512,989 $2,068,375 $ 108,662 23,042 8,682 12,989 10,208 79,083 242,666 24,792 335 21,652 13,138 59,917 302,583 604,421 250,212 84,732 61,218 131 218,171 786 581,831 9,971 45,681) 1,765,792 $2,068,375		Amount $ 522,574 91,053 267,630 697,713 18,827 1,597,797 - 467,529 13,534 8,588 5,772 495,423 $2,093,220 $ 165,988 29,284 8,619 6,316 5,833 79,472 295,512 29,167 284 7,215 10,845 47,511 343,023 600,291 240,702 84,732 38,251 131 218,171 786 571,135 13,884 17,886) 1,750,197 $2,093,220	％
				(		(		25 4 13 33 1 76 - 22 1 1 - 24 100 8 1 1 - - 4 14 1 - - 1 2 16 29 11 4 2 - 11 - 27 1 ( 1) 84 100

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 NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(In thousands of New Taiwan Dollars, except earnings per share)

	Threemonths ended September30, 2025 2024 Amount ％ Amount ％ $ 326,840 100 $ 428,712 100 227,780 70 266,104 62 99,060 30 162,608 38 15,226 5 15,254 4 26,122 8 27,331 6 66,919 20 72,527 17 108,267 33 115,112 27 9,207) ( 3) 47,496 11 1,870 1 1,417 - 1,460 - 923 - 9,266 3 2,407 1 145) - ( 124) - 12,451 4 4,623 1 3,244 1 52,119 12 1,741) ( 1) 5,978 1 4,985 2 46,141 11 16,743 5 6,298 1 $ 21,728 7 $ 52,439 12 $ 0.08 $ 0.76 $ 0.08 $ 0.76	Threemonths ended September30, 2025 2024 Amount ％ Amount ％ $ 326,840 100 $ 428,712 100 227,780 70 266,104 62 99,060 30 162,608 38 15,226 5 15,254 4 26,122 8 27,331 6 66,919 20 72,527 17 108,267 33 115,112 27 9,207) ( 3) 47,496 11 1,870 1 1,417 - 1,460 - 923 - 9,266 3 2,407 1 145) - ( 124) - 12,451 4 4,623 1 3,244 1 52,119 12 1,741) ( 1) 5,978 1 4,985 2 46,141 11 16,743 5 6,298 1 $ 21,728 7 $ 52,439 12 $ 0.08 $ 0.76 $ 0.08 $ 0.76	Threemonths ended September30, 2025 2024 Amount ％ Amount ％ $ 326,840 100 $ 428,712 100 227,780 70 266,104 62 99,060 30 162,608 38 15,226 5 15,254 4 26,122 8 27,331 6 66,919 20 72,527 17 108,267 33 115,112 27 9,207) ( 3) 47,496 11 1,870 1 1,417 - 1,460 - 923 - 9,266 3 2,407 1 145) - ( 124) - 12,451 4 4,623 1 3,244 1 52,119 12 1,741) ( 1) 5,978 1 4,985 2 46,141 11 16,743 5 6,298 1 $ 21,728 7 $ 52,439 12 $ 0.08 $ 0.76 $ 0.08 $ 0.76	Threemonths ended September30, 2025 2024 Amount ％ Amount ％ $ 326,840 100 $ 428,712 100 227,780 70 266,104 62 99,060 30 162,608 38 15,226 5 15,254 4 26,122 8 27,331 6 66,919 20 72,527 17 108,267 33 115,112 27 9,207) ( 3) 47,496 11 1,870 1 1,417 - 1,460 - 923 - 9,266 3 2,407 1 145) - ( 124) - 12,451 4 4,623 1 3,244 1 52,119 12 1,741) ( 1) 5,978 1 4,985 2 46,141 11 16,743 5 6,298 1 $ 21,728 7 $ 52,439 12 $ 0.08 $ 0.76 $ 0.08 $ 0.76	Ninemonths ended	Ninemonths ended	Ninemonths ended	September30,	September30,
	2025	％ 100 70 30 5 8 20 33 ( 3) 1 - 3 - 4 1 ( 1) 2 5 7		2024	2025	％ 100 65 35 5 8 20 33 2 1 - ( 1 ) - - 2 - 2 ( 2) -		2024
	Amount $ 326,840 227,780 99,060 15,226 26,122 66,919 108,267 9,207) 1,870 1,460 9,266 145) 12,451 3,244 1,741) 4,985 16,743 $ 21,728 $ 0.08 $ 0.08			Amount $ 428,712 266,104 162,608 15,254 27,331 72,527 115,112 47,496 1,417 923 2,407 124) 4,623 52,119 5,978 46,141 6,298 $ 52,439 $ 0.76 $ 0.76				Amount $1,118,481 694,245 424,236 50,337 87,877 205,848 344,062 80,174 4,571 3,909 11,795 401) 19,874 100,048 1,145) 101,193 14,670 $ 115,863 $ 1.67 $ 1.65	％
( ( (			(				( (		100 62 38 5 8 18 31 7 1 - 1 - 2 9 - 9 1 10

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 NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

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

		Share capital-common stock	Share capital-common stock	Share capital-common stock	Share capital-common stock				Capital surplus	Capital surplus	Capital surplus								Retained	earnings	earnings						Other	Other	equity
																										Exchange
																										differences on
Code		Shares (In thousands)			Amount	Share premium		Donations received from shareholders			Restricted stocks for employees				Others	Legal reserve		Special	reserve	Undistributed earnings				Total		translating the financial statements of			Unearned employee compensation				Total equity
																											foreign
																										operations
A1	Balance at January 1, 2024	58,918		$	589,178	$	254,672	$	84,732		$	50,306		$	125	$	215,284	$	-	$	485,253		$	700,537		( $	786 )		( $	35,803 )			$ 1,642,961
	Distribution of retained earnings for 2023
B1	Legal reserve		-		-		-			-			-		-		2,887		-	(	2,887 )				-			-			-		-
B3	Special reserve		-		-		-			-			-		-		-		786	(	786 )				-			-			-		-
B9	Stock dividends to shareholders－$0.2 per share	1,164			11,638		-			-			-		-		-		-	(	11,638)	(		11,638)				-			-		-
	Total distribution of retained earnings	1,164			11,638		-			-			-		-		2,887		786	(	15,311)	(		11,638)				-			-		-
C15	Capital surplus used for distribution of cash dividends－$0.4 per share		-		-	(	23,275)			-			-		-		-		-		-				-			-			-	(	23,275 )
C17	Changes in other capital surplus		-		-		-			-			-		6		-		-		-				-			-			-		6
D1	Net profit for the nine months ended September		-		-		-			-			-		-		-		-		101,193			101,193				-			-		101,193
	30, 2024
D3	Other comprehensive (income) loss for		-		-		-			-			-		-		-		-		-				-		14,670				-		14,670
	the nine months ended September 30, 2024
D5	Total comprehensive income (loss) for the		-		-		-			-			-		-		-		-		101,193			101,193			14,670				-		115,863
	nine months ended September 30, 2024
N1	Acquired restricted stocks for employees		-		-		9,305			-	(	9,305 )			-		-		-		-				-			-			-		-
N1	Canceled restricted stocks for employees	(	53 ) (		525 )		-			-		525			-		-		-		-				-			-			-		-
N1	Compensation cost of the restricted stocks for employees		-		-		-			-	(	3,275)			-		-		-		-				-			-		17,917			14,642
Z1	Balance at September 30, 2024	60,029		$	600,291	$	240,702	$	84,732		$	38,251		$	131	$	218,171	$	786	$	571,135		$	790,092		$	13,884		($	17,886)			$ 1,750,197
A1	Balance at January 1, 2025	60,442		$	604,421	$	250,212	$	84,732		$	61,218		$	131	$	218,171	$	786	$	581,831		$	800,788		$	9,971		( $	45,681 )			$ 1,765,792
	Distribution of retained earnings for 2024
B1	Legal reserve		-		-		-			-			-		-		11,189		-	(	11,189 )				-			-			-		-
B17	Special reserve		-		-		-			-			-		-		-	(	786 )		786				-			-			-		-
B5	Cash dividends to shareholders－$0.8 per share		-		-		-			-			-		-		-		-	(	47,623 )	(		47,623 )				-			-	(	47,623 )
B9	Stock dividends to shareholders－$0.2 per share	1,191			11,906		-			-			-		-		-		-	(	11,906)	(		11,906)				-			-		-
	Total distribution of retained earnings	1,191			11,906		-			-			-		-		11,189	(	786)	(	69,932)	(		59,529)				-			-	(	47,623)
C15	Capital surplus used for distribution of cash dividends－$0.4 per share		-		-	(	23,812 )			-			-		-		-		-		-				-			-			-	(	23,812 )
C17	Changes in other capital surplus		-		-		-			-			-		23		-		-		-				-			-			-		23
D1	Net profit for the nine months ended September		-		-		-			-			-		-		-		-		22,538			22,538				-			-		22,538
	30, 2025
D3	Other comprehensive (income) loss for the nine months ended September 30, 2025		-		-		-			-			-		-		-		-		-				-	(	18,309)				-	(	18,309)
D5	Total comprehensive income (loss) for the nine months ended September 30, 2025		-		-		-			-			-		-		-		-		22,538			22,538		(	18,309)				-		4,229
N1	Acquired restricted stocks for employees		-		-		9,417			-	(	9,417 )			-		-		-		-				-			-			-		-
N1	Canceled restricted stocks for employees	(	33 ) (		325 )		-			-		325			-		-		-		-				-			-			-		-
N1	Compensation cost of the restricted stocks for employees		-		-		-			-	(	2,344)			-		-		-		-				-			-		21,465			19,121
Z1	Balance at September 30, 2025	61,600		$	616,002	$	235,817	$	84,732		$	49,782		$	154	$	229,360	$	-	$	534,437		$	763,797		($	8,338)		($	24,216)			$ 1,717,730
								The	notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 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	Nine months ended September 30,
	2025 $ 24,924 53,916 5,574 ( 1,068 ) 540 ( 5,368 ) 19,121 1 ( 3,174 ) 4,860 17,610 66,333 ( 1,347 ) 12,755 ( 11,951 ) ( 6,607) 176,119 ( 540 ) ( 6,409) 169,170 - - ( 28,492 ) -	2024
		$ 100,048 57,121 5,028 ( 1,151 ) 401 ( 4,571 ) 14,642 8 3,705 ( 6,731 ) ( 72,923 ) ( 93,663 ) 3,302 58,221 10,069 936 74,442 ( 401 ) ( 3,187) 70,854 ( 72,368 ) 70,107 ( 29,498 ) ( 191 )

(Continued on next page)

(Brought forward from previous page)

Code B03800 Decrease in refundable deposits 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 C01600 Proceeds from long-term debt C01700 Decrease in long-term borrowings C03000 Increase in deposits received C04020 Repayment of the principal portion of lease liabilities C04500 Cash dividends paid 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	Nine months ended September 30,	Nine months ended September 30,
	2025 $ 47 ( 4,160 ) 4,906 ( 27,699) - - - ( 35,000 ) 170 ( 9,937 ) ( 71,435 ) 23 ( 116,179) ( 16,428) 8,864 493,439 $ 502,303	2024
		$ - ( 2,484 ) 4,584 ( 29,850) 30,000 ( 30,000 ) 35,000 - 9,985 ( 10,374 ) ( 23,275 ) 6 11,342 12,483 64,829 457,745 $ 522,574

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

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 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 November 6, 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.
I. 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"(including the 2020 and	January 1, 2023
2021 amendments)

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 Effective date issued interpretations by IASB (Note 1) Amendments to IFRS 10 and IAS 28, "Sale or To be determined by contribution of assets between an investor and its IASB associate or joint venture" IFRS 18, "Presentation and disclosure in financial January 1, 2027(Note statements" 2) IFRS 19, "Subsidiaries without publicly accountability: January 1, 2027 disclosures"

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.
Note 2: On September 25, 2025, the FSC announced that enterprises in Taiwan shall apply IFRS 18 starting from January 1, 2028. Early adoption is permitted once IFRS 18 has been endorsed by the FSC.
I. 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 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
10 -

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.

4. 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.

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
Bank checks and demand deposits Foreign currency deposits Petty cash and cash on hand Cash equivalents Time deposits Commercial Paper	September 30, 2025 $ 111,112 105,475 316 285,400 - $ 502,303	December 31, 2024 $ 88,356 61,635 548 342,900 - $ 493,439	September 30, 2024
				$ 66,447 84,923 504 350,700 20,000 $ 522,574

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

follows：
Bank deposit	September 30, 2025 0.03%~2.75%	December 31, 2024 0.00%~3.30%	September 30, 2024
			0.03%~3.93%

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7. Financial Assets at Fair Value through Profit or Loss

8.	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	September 30, 2025 $ 100,225 September 30, 2025 $ 1,000	December 31, 2024 $ 103,975 December 31, 2024 $ 1,000	September 30, 2024	September 30, 2024
				$ 91,053 September 30, 2024
					$ -

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	September 30, 2025 $ 34,120 $ 185,018	December 31, 2024 $ 49,713 $ 187,112	September 30, 2024
				$ 58,790 $ 208,840

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

13 -

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 Work in progress Raw materials Finished goods	September 30, 2025 $ 185,018 September 30, 2025 $ 423,310 129,489 93,142 $ 645,941	December 31, 2024 $ 187,112 December 31, 2024 $ 430,721 176,078 102,301 $ 709,100	September 30, 2024	September 30, 2024
				$ 208,840 September 30, 2024
					$ 399,824 193,795 104,094 $ 697,713

The operating cost for the three months and nine months ended September 30, 2025 and 2024 were $227,780 thousand, $266,104 thousand, $661,994 thousand and $694,245 thousand respectively.

The operating cost included reversal of allowance for obsolescence and market value decline for the three months and nine months ended September 30, 2025 and 2024 were ($2,694) thousand, $5,471 thousand, ($3,174) thousand and $3,705 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:

Name of company invested in Leadtrend	Name of Subsidiary Leadtrend Technology (Shenzhen) Ltd. ("Leadtrend Shenzhen")	Main business	Percentage of holdings September 30,2025 December 31, 2024 September 30,2024 100% 100% 100%	Percentage of holdings September 30,2025 December 31, 2024 September 30,2024 100% 100% 100%	Percentage of holdings September 30,2025 December 31, 2024 September 30,2024 100% 100% 100%	Note -
				December 31, 2024 100%	September 30,2024
		Computer software design service, computer system integration service, wholesale of integrated circuits and related electronic products, and agent import and export business activities.			100%

12. Property, Plant and Equipment

Property, Plant and Equipment
Assets used by the Company Assets subject to operating leases	September 30, 2025 $ 428,716 14,023 $ 442,739	December 31, 2024 $ 462,119 - $ 462,119	September 30, 2024
				$ 460,765 6,764 $ 467,529

(1) Assets used by the Company

Land	Buildings	R&D equipment	Office equipment	Molding equipment	Mask	Total
$ 84,099 ( 3,415 ) - - - $ 80,684 $ - - - - - $ - $ 80,684 $ 84,099 $ 84,099 ( 1,618 ) - - - $ 82,481 $ - - - - - $ - $ 82,481	$ 342,540 ( 12,814 ) 523 - ( 2,054) $ 328,195 $ 73,784 ( 2,014 ) 8,022 - ( 275) $ 79,517 $ 248,678 $ 268,756 $ 341,041 ( 6,070 ) - - 1,946 $ 336,917 $ 62,689 ( 833 ) 8,122 - 193 $ 70,171 $ 266,746	$ 292,375 - 10,283 ( 312 ) ( 602) $ 301,744 $ 234,615 - 15,436 ( 312 ) ( 439) $ 249,300 $ 52,444 $ 57,760 $ 291,902 - 1,314 ( 1,306 ) 595 $ 292,505 $ 213,209 - 18,103 ( 1,306 ) 396 $ 230,402 $ 62,103	$ 39,679 - 1,026 ( 196 ) ( 203) $ 40,306 $ 33,635 - 2,227 ( 195 ) ( 178) $ 35,489 $ 4,817 $ 6,044 $ 36,144 - 3,566 ( 347 ) 182 $ 39,545 $ 30,793 - 2,306 ( 339 ) 160 $ 32,920 $ 6,625	$ 33,440 - 394 - 314) $ 33,520 $ 28,060 - 1,857 - 106) $ 29,811 $ 3,709 $ 5,380 $ 28,168 - 5,271 - 69 $ 33,508 $ 25,474 - 1,952 - 26 $ 27,452 $ 6,056	$ 275,204 - 14,421 - -	$1,095,918 ( 16,229 ) 26,675 ( 508 ) ( 3,348) $1,102,508 $ 633,799 ( 2,014 ) 43,687 ( 507 ) ( 1,173) $ 673,792 $ 428,716 $ 462,119 $1,051,943 ( 7,688 ) 34,934 ( 1,653 ) 2,958 $1,080,494 $ 573,981 ( 833 ) 47,285 ( 1,645 ) 941 $ 619,729 $ 460,765
					$ 289,625
					$ 241,272 - 14,591 - -
					$ 255,863
					$ 33,762
					$ 33,932
					$ 245,857 - 21,063 - -
					$ 266,920
					$ 221,459 - 15,372 - -
					$ 236,831
					$ 30,089

15 -

No impairment losses were recognized or reversed for the nine months ended September 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 September 30, 2025 Accumulated depreciation Balance at January 1, 2025 Transfers from assets used by the Company Depreciation expenses Balance at September 30, 2025 Carrying amounts at September 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 September 30, 2024 Accumulated depreciation Balance at January 1, 2024 Transfers from assets used by the Company Depreciation expenses Balance at September 30, 2024 Carrying amounts at September 30, 2024		Land $ - 3,415 $ 3,415 $ - - - $ - $ 3,415 $ - $ - 1,618 $ 1,618 $ - - - $ - $ 1,618		Buildings $ - 12,814 $ 12,814 $ - 2,014 192 $ 2,206 $ 10,608 $ - $ - 6,070 $ 6,070 $ - 833 91 $ 924 $ 5,146		Total
						$ - 16,229 $ 16,229 $ - 2,014 192 $ 2,206 $ 14,023 $ - $ - 7,688 $ 7,688 $ - 833 91 $ 924 $ 6,764

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
September 30, 2025 December 31, 2024 September 30, 2024 Carrying amounts of right-of-use assets Buildings $ 24,331 $ 34,656 $ 13,534 Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Additions to the right-of-use assets $ - $ 2,199 Depreciation expenses of the right-of-use assets Buildings $ 3,314 $ 3,264 $ 10,037 $ 9,745		September 30, 2024
			$	13,534 September 30,
	2025			2024
	$ - $ 10,037			$ 2,199 $ 9,745

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 nine months ended September 30, 2025 and 2024.

(2) Lease liability

Lease liability
September 30, 2025 December 31, 2024 Carrying amount of lease liabilities Current $ 12,510 $ 12,989 Non-Current $ 11,924 $ 21,652 The discount rate range for lease liabilities is as follows: September 30, 2025 December 31, 2024 Buildings 1.96%~2.24% 1.96%~2.24%	September 30, 2024
	$ 6,316 $ 7,215 September 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.

17 -

(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 September 30, 2025 2024 $ 153 $ 171 $ 13 $ 6 ($ 3,750) ($ 3,798)	Nine months ended	Nine months ended	Nine months ended	September 30,
			2025 $ 479 $ 40 $ 10,951)		2024
		(		(	$ 484 $ 17 $ 11,160)

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 September 30, 2025 Accumulated amortization Balance at January 1, 2025 Amortization expenses Net exchange differences Balance at September 30, 2025 Carrying amounts at September 30, 2025 Carrying amounts at December 31, 2024 and January 1,2025 Cost Balance at January 1, 2024 Additions Net exchange differences Balance at September 30, 2024 Accumulated amortization Balance at January 1, 2024 Amortization expenses Net exchange differences Balance at September 30, 2024 Carrying amounts at September 30, 2024		Computer Software $ 103,851 1,789 5) $ 105,635 $ 100,108 2,961 5) $ 103,064 $ 2,571 $ 3,743 $ 102,517 1,230 3 $ 103,750 $ 95,961 3,109 3 $ 99,073 $ 4,677	Specialized Technology $ 34,688 4,938 - $ 39,626 $ 34,584 1,984 - $ 36,568 $ 3,058 $ 104 $ 33,434 1,254 - $ 34,688 $ 32,979 1,291 - $ 34,270 $ 418		Right of Patent $ 8,383 - - $ 8,383 $ 5,100 629 - $ 5,729 $ 2,654 $ 3,283 $ 8,383 - - $ 8,383 $ 4,262 628 - $ 4,890 $ 3,493		Others $ 2,922 - - $ 2,922 $ 2,922 - - $ 2,922 $ - $ - $ 2,922 - - $ 2,922 $ 2,922 - - $ 2,922 $ -		Total $ 149,844 6,727 5) $ 156,566 $ 142,714 5,574 5) $ 148,283 $ 8,283 $ 7,130 $ 147,256 2,484 3 $ 149,743 $ 136,124 5,028 3 $ 141,155 $ 8,588
	( (							( (

18 -

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 September 30, 2025 2024 $ - $ 253 20 10 842 928 927 361 $ 1,789 $ 1,552		Nine months ended		September 30,
		2025 $ - 20 842 927 $ 1,789		2025	2024
				$ 506 45 2,695 2,328 $ 5,574	$ 759 32 2,722 1,515 $ 5,028

Other Assets

Other Assets
Current Payment in advance Tax refund receivable Temporary payments Tax retained Others Non-current Refundable deposits Prepayments for purchases of equipment Prepaid patent rights	September 30, 2025		December 31, 2024 $ 2,691 1,321 3,803 - 4,232 $ 12,047 $ 3,663 1,854 2,567 $ 8,084	September 30, 2024
		$ 4,546 2,741 762 507 5,300 $ 13,856 $ 3,616 2,255 - $ 5,871			$ 4,666 3,100 785 4,490 5,786 $ 18,827 $ 3,674 2,098 - $ 5,772

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16. Borrowings

Borrowings
Unsecured borrowings Bank loan Less：current portion Long-term borrowings	September 30, 2025 $ - - $ -	December 31, 2024 $ 35,000 ( 10,208) $ 24,792	September 30, 2024
		(	(	$ 35,000 5,833) $ 29,167

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%. The Company repaid the loan early in May 2025.

17. Other Current Liabilities

Other Current Liabilities
Bonus payable Unpaid leave benefits payable Insurance payable Service fee payable Payables on equipment Others	September 30, 2025 $ 42,407 5,903 4,128 3,553 2,183 12,789 $ 70,963	December 31, 2024 $ 46,946 6,442 3,864 4,073 3,599 14,159 $ 79,083	September 30, 2024
				$ 36,203 5,112 3,713 2,363 3,270 28,811 $ 79,472

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 accordance with these provisions, the amounts recognized as expenses in the Company’s consolidated income statement were $2,799 thousand, $2,589 thousand, $8,317 thousand and $7,952 thousand for the three months and nine months ended September 30, 2025 and 2024, respectively.

20 -

19. Equity

(1) Share capital

Common stock

ty Share capital Common stock
Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	September 30, 2025 200,000 $2,000,000 61,600 $ 616,002	December 31, 2024 200,000 $2,000,000 60,442 $ 604,421	September 30, 2024
				200,000 $2,000,000 60,029 $ 600,291

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. The Company completed the registration change on August 11, 2025.

(2) Capital surplus

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	September 30,2025 $ 235,817 84,732 154 49,782 $ 370,485	December 31, 2024 $ 250,212 84,732 131 61,218 $ 396,293	September 30,2024
				$ 240,702 84,732 131 38,251 $ 363,816

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.
21 -

(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	Nine months ended September 30,
		2025	2024
	( ( (	$ 9,971 ( 18,309) 18,309) $ 8,338)	$ 786) 14,670 14,670 $ 13,884

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.

23 -

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.

Nine months ended September 30,

	Nine months ended September 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 ) 19,121 14,642 2,344 3,275 ($ 24,216) ($ 17,886)

20. Share-based Payment

Restricted stock plans for employees

Information regarding Leadtrend's issuance of 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 -

Nine months ended September 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) Nine months ended September 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 ) ( 3.0) 67.0 $ 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:
Nine months ended September 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) Nine months ended September 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

27 -

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
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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:
Nine months ended September 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) Nine months ended September 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 39.0) 381.0 $ 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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Nine months ended September 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 15.0) 399.0 $ 88.4

Due to resignation of employees, 28 thousand and 42 thousand restricted stocks for employees were recovered in 2025 and 2024 respectively, and there were 6 thousand and 7 thousand shares among such recovered shares to be revoked.

The compensation cost of the restricted stocks for employees as recognized for the nine months ended September 30 of 2025 and 2024 are $19,121 thousand and $14,642 thousand respectively.

21. Operating Revenue

Operating Revenue
Revenue from contracts with customers Integrated circuits (1) Contractual balance Notes and accounts receivable (Note 9)	Three months ended September 30,					Nine months ended			September 30, 2024 $ 1,118,481 January 1, 2024
		2025		2024			2025
		$ 326,840 September 30,2025		$ 428,712 December 31,2024			$ 1,014,777 September 30,2024
			$ 219,138		$ 236,825			$ 267,630		$ 191,426

(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 September 30, 2025 2024 $ 165,355 $ 215,312 159,505 212,660 520 740 1,460 - $ 326,840 $ 428,712	Nine months ended September 30,
	2025 $ 165,355 159,505 520 1,460 $ 326,840	2025 $ 517,689 491,620 1,978 3,490 $ 1,014,777	2024
			$ 569,482 546,902 2,097 - $ 1,118,481

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22. Non-operating Income and Expenses

(1) Interest income

Interest income
Bank deposits Commercial paper Deposit interest	Three months ended September 30, 2025 2024 $ 1,807 $ 1,346 52 61 11 10 $ 1,870 $ 1,417	Nine months ended September 30,
	2025 $ 1,807 52 11 $ 1,870	2025 $ 5,108 227 33 $ 5,368	2024
			$ 4,450 92 29 $ 4,571

(2) Other Income

Bank deposits Commercial paper Deposit interest Other Income	$ 1,807 $ 1,346 52 61 11 10 $ 1,870 $ 1,417	$ 5,108 $ 4,450 227 92 33 29 $ 5,368 $ 4,571	$ 5,108 $ 4,450 227 92 33 29 $ 5,368 $ 4,571
Lease income Other operating leases Government grants income Others	Three months ended September 30, 2025 2024 $ 460 $ 424 172 5 828 494 $ 1,460 $ 923	Nine months ended September 30,
	2025 $ 460 172 828 $ 1,460	2025 $ 1,390 177 1,873 $ 3,440	2024
			$ 1,414 701 1,794 $ 3,909

(3) Other gains and losses

Net gain (loss) on foreign exchange Gains and losses on financial assets Financial assets at fair value through profit or loss Loss on disposal of property, plant and equipment Others		Three months ended September 30, 2025 2024 $ 8,901 $ 2,030 309 377 - - 56 - $ 9,266 $ 2,407	Three months ended September 30, 2025 2024 $ 8,901 $ 2,030 309 377 - - 56 - $ 9,266 $ 2,407		Nine months ended September 30,	Nine months ended September 30,	Nine months ended September 30,
		2025 $ 8,901 309 - 56 $ 9,266			2025 $ 7,406 ) 1,068 1 ) 56 $ 6,283)		2024
				( ( (		(	$ 10,652 1,151 8 ) - $ 11,795

(4) Financial costs

Financial costs
Interest on lease liabilities Interest from bank borrowings	Three months ended September 30, 2025 2024 $ 145 $ 79 - 45 $ 145 $ 124	Nine months ended September 30,
	2025 $ 145 - $ 145	2025 $ 492 48 $ 540	2024
			$ 285 116 $ 401

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(5) Depreciation and amortization

Three months ended September 30, 2025 2024 $ 4,384 $ 4,811 13,842 13,698 $ 18,226 $ 18,509 Three months ended September 30, 2025 2024 $ - $ 253 1,789 1,299 $ 1,789 $ 1,552	Nine months ended September 30,	Nine months ended September 30,
	2025 2024 $ 13,036 $ 14,222 40,880 42,899 $ 53,916 $ 57,121 Nine months ended September 30,	2024

2025 $ - 1,789 $ 1,789	2025 $ 506 5,068 $ 5,574	2024
		$ 759 4,269 $ 5,028

(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 September 30, 2025 2024 $ 2,799 $ 2,589 6,292 4,697 77,946 88,273 $ 87,037 $ 95,559 $ 13,209 $ 13,601 73,828 81,958 $ 87,037 $ 95,559	Three months ended September 30, 2025 2024 $ 2,799 $ 2,589 6,292 4,697 77,946 88,273 $ 87,037 $ 95,559 $ 13,209 $ 13,601 73,828 81,958 $ 87,037 $ 95,559		Nine months ended September 30,	Nine months ended September 30,	Nine months ended September 30,
		2025 $ 2,799 6,292 77,946 $ 87,037 $ 13,209 73,828 $ 87,037			2025 $ 8,317 19,121 234,468 $ 261,906 $ 39,438 222,468 $ 261,906		2024
							$ 7,952 14,642 256,133 $ 278,727 $ 40,223 238,504 $ 278,727

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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 nine months ended September 30, 2025, and 2024, employees’ compensation and directors’ remuneration were accrued as follows:

Accrual rate

follows: Accrual rate
Employees’ compensation Directors’ remuneration	Nine months ended September 30,
	2025 2024
	15% 16% 1% 1%

Amount

Amount
Employees’ compensation Directors’ remuneration	Three months ended September 30, 2025 2024 $ 897 $ 9,216 $ 85 $ 781	Nine months ended September 30,
	2025 $ 897 $ 85	2025 $ 4,057 $ 382	2024
			$ 19,125 $ 1,714

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 September 30, 2025 2024 $ 8,287 $ 5,898 614 ( 3,868) $ 8,901 $ 2,030	Three months ended September 30, 2025 2024 $ 8,287 $ 5,898 614 ( 3,868) $ 8,901 $ 2,030		Nine months ended September 30,	Nine months ended September 30,	Nine months ended September 30,
		2025 $ 8,287 614 $ 8,901			2025 $ 14,182 21,588) $ 7,406)		2024
			(	( (		(	$ 14,783 4,131) $ 10,652

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 September 30, 2025 2024 $ 50 ) $ 5,896 - - 1,691 ) - - 82 $ 1,741) $ 5,978	Three months ended September 30, 2025 2024 $ 50 ) $ 5,896 - - 1,691 ) - - 82 $ 1,741) $ 5,978		Nine months ended September 30,	Nine months ended September 30,	Nine months ended September 30,
		2025 $ 50 ) - 1,691 ) - $ 1,741)			2025 $ 3,197 2,098 2,909 ) - $ 2,386		2024
	( ( (			(		( (	$ 7,246 678 9,894 ) 825 $ 1,145)

(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 September 30, 2025 2024 $ 0.08 $ 0.76 $ 0.08 $ 0.76	Nine months ended September 30,
	2025 $ 0.08 $ 0.08	2025 $ 0.37 $ 0.37	2024
			$ 1.67 $ 1.65

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 nine months ended September 30, 2024, are as follows:

Unit: NTD per share

		Unit: NTD per share	Unit: NTD per share	Unit: NTD per share
Basic earnings per share Diluted earnings per share	Before retroactive adjustment Three months ended September 30,2024 Nine months ended September 30,2024 $ 0.78 $ 1.71 $ 0.77 $ 1.69	After retroactive adjustment
	Three months ended September 30,2024 $ 0.78 $ 0.77	Three months ended September 30,2024 $ 0.76 $ 0.76	Nine months ended September 30,2024
				$ 1.67 $ 1.65

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 September 30,		Nine months ended September 30,
	2025 $ 4,985 Three months September	2024	2025 2024 $ 22,538 $ 101,193 Unit: In thousands of shares Nine months ended September 30, 2025 2024 60,782 60,428 227 524 134 227 61,143 61,179	2024
		$ 46,141 ended 30, 2024 60,516 325 217 61,058
	2025 60,816 189 76 61,081		2025 60,782 227 134 61,143

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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 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.

September 30, 2025

fair value. September 30, 2025
Financial assets Financial assets measured at amortized cost -Domestic corporate bonds December 31, 2024	Carrying amount $ 1,000		Fair value
		Level 1 $ -	Level 2 $ 999	Level 3 $ -	Total
					$ 999

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

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

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

September 30, 2025

recurring basis. I.Fair value hierarchy September 30, 2025
Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Fund beneficiary certificate$100,225 $ - $ - $100,225 December 31, 2024 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Fund beneficiary certificate$103,975 $ - $ - $103,975 September 30, 2024 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Fund beneficiary certificate$ 91,053 $ - $ - $ 91,053 There were no transfer between Level 1 and Level 2 for the nine months ended September 30, 2025 and 2024. Categories of financial instruments September 30,2025 December 31, 2024 September 30,2024 Financial Assets Measured at fair value through profit or loss Non-derivative financial assets measured at fair value $ 100,225 $ 103,975 $ 91,053	Level 3 $ - Level 3	Total $100,225 Total

(3) Categories of financial instruments

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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 Accounts payable Long-term borrowings (including current portion) Deposit received	September 30,2025	December 31, 2024 $ 493,439 236,825 1,000 3,663 $ 108,662 35,000 13,138	September 30,2024
	$ 502,303 219,138 1,000 3,616 $ 121,266 - 13,308		$ 522,574 267,630 - 3,674 $ 165,988 35,000 10,845

(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 Nine months ended September 30,2025 Nine months ended September 30,2024 $ 3,118 $ 2,734	Impact of CNY	Impact of CNY
	Nine months ended September 30,2025 $ 3,118	Nine months ended September 30,2025 $ 5,181	Nine months ended September 30,2024
			$ 4,635

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.

40 -

During the current period, the Company's sensitivity to USD and CNY exchange rates increased primarily due to a rise in the net asset balances 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	September 30,2025	December 31, 2024 $ 342,900 69,641 149,991	September 30,2024
	$ 285,400 24,434 216,587		$ 370,700 48,531 151,370

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 nine months ended September 30, 2025 and 2024 will increase/decrease by $162 thousand and $114 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 included in unrecoverable receivables. Accordingly, the Company's

41 -

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 September 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.

September 30, 2025

Accounts payable Lease liabilities Other current liabilities	Less than 1 month $71,992 $ 816 $ 8,307	1 to 3 months $49,274 $ 2,191 $ 6,011	3 months to 1year $ - $ 9,876 $ -	1 to 5 years $ - $12,055 $ -	Total
					$ 121,266 $ 24,938 $ 14,318

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

liabilities is as follows:
Lease liabilities	Less than 1 year $ 12,883	1 to 5years $ 12,055	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:

liabilities is as follows:	liabilities is as follows:
Less than 1 year Lease liabilities $ 13,578 Fixed rate instruments 10,208 $ 23,786 September 30, 2024 Less than 1 month 1 to 3 months Accounts payable $95,595 $70,393 Lease liabilities $ 772 $ 1,476 Fixed rate instruments $ - $ - Other current liabilities $ 6,552 $ 8,414		Less than 1 year		1 to 5years Over 5years $ 22,098 $ - 24,792 - $ 46,890 $ - 3 months to 1year 1 to 5 years Total $ - $ - $ 165,988 $ 4,235 $ 7,337 $ 13,820 $ 5,833 $29,167 $ 35,000 $ - $ - $ 14,966	Over 5years
			$ 13,578 10,208 $ 23,786 1 to 3 months $70,393 $ 1,476 $ - $ 8,414			$ - - $ - Total

Accounts payable Lease liabilities Fixed rate instruments Other current liabilities
	$95,595 $ 772 $ - $ 6,552					$ 165,988 $ 13,820 $ 35,000 $ 14,966

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

liabilities is as follows:
Lease liabilities Fixed rate instruments	Less than 1 year $ 6,483 5,833 $ 12,316	1 to 5years $ 7,337 29,167 $ 36,504	Over 5years
				$ - - $ -

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.
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(2) Compensation of key management personnel

Short-term employee benefits Post-employment benefits Share-based payment		Three months ended September 30, 2025 2024 $ 5,691 $ 6,170 102 130 1,161 554 $ 6,954 $ 6,854	Three months ended September 30, 2025 2024 $ 5,691 $ 6,170 102 130 1,161 554 $ 6,954 $ 6,854		Nine months ended September 30,	Nine months ended September 30,	Nine months ended September 30,
		2025 $ 5,691 102 1,161 $ 6,954			2025 $ 20,190 362 3,576 $ 24,128		2024
							$ 19,276 393 2,050 $ 21,719

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:

Unit: In thousands in each foreign currency

September 30, 2025

September 30, 2025
Financial assets Monetary items USD USD CNY	Foreign currency $ 4,139 2 25,070	Exchange rate 30.445 (USD：NTD) 7.1055 (USD：CNY) 4.271 (CNY：NTD)		Carrying amount
				$ 125,999 66 107,075 $ 233,140

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Financial liabilities Monetary items USD CNY December 31, 2024 Financial assets Monetary items USD USD CNY Financial liabilities Monetary items USD CNY September 30, 2024 Financial assets Monetary items USD USD CNY Financial liabilities Monetary items USD	Foreign currency $ 2,093 809 Foreign currency $ 4,182 2 20,221 $ 1,772 112 Foreign currency $ 4,830 3 20,497 3,105	Exchange rate 30.445 (USD：NTD) 4.271 (CNY：NTD) Exchange rate 32.785 (USD：NTD) 7.321 (USD：CNY) 4.478 (CNY：NTD) 32.785 (USD：NTD) 4.478 (CNY：NTD) Exchange rate 31.650 (USD：NTD) 6.9976 (USD：CNY) 4.523 (CNY：NTD) 31.650 (USD：NTD)		Carrying amount
				$ 63,711 3,455 $ 67,166 Carrying amount
				$ 137,091 71 90,550 $ 227,712 $ 58,089 501 $ 58,590 Carrying amount
				$ 152,881 69 92,709 $ 245,659 $ 98,267

The realized and unrealized net foreign exchange (losses) gains for the three months and nine months ended September 30, 2025 and 2024 was $8,901 thousand, $2,030 thousand, ($7,406) thousand and $10,652 thousand respectively.

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As foreign currency transactions are diversified, disclosing foreign exchange gains or losses based on each foreign currency with material impact is not feasible.

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		September 30, 2025	September 30, 2025	September 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	-	$50,396	-	$50,396	Note 1
		ICBC Financial Management Corporation Tianlibao Net Value Financial Products	－	Financial assets at fair value through profit or loss -current	-	49,829	-	49,829	Note 1

Note 1: Based on net value as at September 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 September 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	Counterpart y	Relation		Transa	ction	ction	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	$319,281	36	Net 60 days, end of the month	Note	Approximat ely the same	$ 77,037	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 -

Nine months ended September 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 $319,281 77,037	Trading condition Note 3 Note 3	Ratio of total sales or assets
							31% 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	$310,406 ( USD9,900)	Note 1	(	$214,637 USD7,050)	$ -	$ -	$214,637 ( USD7,050)	$ (	20,261 USD649 )	100%	$20,261 ( USD649 )	$ 318,345 (USD10,456)	$ -

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
$214,637(USD7,050)					$301,406(USD 9,900)					$1,030,638

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 September 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 nine months ended September 30, 2025, and 2024, please refers to the consolidated income statements for those periods. For the segment's assets reported as of September 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_c04ccb9b-1ce4-40ff-b9ab-5226af6e95ce.pdf

Leadtrend Technology Corporation and Subsidiaries

Introduction

Scope of Review

Conclusion

Notice to Readers:

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

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 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 NINE MONTHS ENDED SEPTEMBER 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 NINE MONTHS ENDED SEPTEMBER 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 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In thousands of New Taiwan Dollars, unless stated otherwise)

1. History of Company

2. Approval Date and Procedures of the Financial Statements

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

4. Summary of Material Accounting Policies

(3) Basis of consolidation

Income tax expense

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

17. Other Current Liabilities

18. Post-employment benefits plans

(1) Defined contribution plan

19. Equity

Common stock

(4) Other equity

II. Unearned employee compensation

20. Share-based Payment

Restricted stock plans for employees

21. Operating Revenue

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

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

September 30, 2025

September 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

(I) Liquidity of non-derivative financial liabilities

September 30, 2025

December 31, 2024

27. Transactions with Related Parties

(2) Compensation of key management personnel

28. Significant Contingent Liabilities and Unrecognized Contractual Commitments

LD Interim / Quarterly Report 2025