Stock Code: 3533

Lotes Co., Ltd. and Subsidiaries

Consolidated Financial Statements and Accountant’s Audit Report

2024 & 2023

Notice to Readers

For the convenience of readers, the Consolidated Financial Statements and Accountant’s Audit Report 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’ report and consolidated financial statements shall prevail.

Address: No. 15, Wuxun St., Anle Dist., Keelung City 204 Telephone: (02) 2433 1110

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Item I. Cover Page II. Table of Content III. Declaration IV. Independent Auditor’ s Report V. Consolidated Balance Sheet VI. Consolidated Statement of Comprehensive Income VII. Consolidated Statement of Changes in Equity VIII. Consolidated Statement of Cash Flows IX. Notes to the Consolidated Financial Statements (I) Company History (II) Date and Procedures of Approval of Financial Statement (III) Application of New and Revised Standards and Interpretations (IV) Summary of Major Accounting Policies (V) Primary Sources of Major Accounting Judgment, Estimate and Assumption Uncertainties (VI) Descriptions for Important Accounting Items (VII) Related Party Transactions (VIII) Pledged Assets (IX) Significant Contingent Liabilities and Unrecognized Contractual Commitments (X) Significant Disaster Loss (XI) Significant Post-Period Events (XII) Others (XIII) Disclosing Information (1) Major Transaction Details (2) Information on Reinvestment Business (3) Investment in China (4) Information on Major Shareholders (XIV) Segmental Information	Page
	1 2 3 4 8 9 10 11 13 13 13~15 15~35 35~36 36~79 79~80 80 80~81 81 81 82 82~89 90 91~92 93 93~94

Item
I.
Cover Page
II.
Table of Content
III.
Declaration
IV.
Independent Auditor’ s Report
V.
Consolidated Balance Sheet
VI.
Consolidated Statement of Comprehensive Income
VII.
Consolidated Statement of Changes in Equity
VIII. Consolidated Statement of Cash Flows
IX.
Notes to the Consolidated Financial Statements
(I)
Company History
(II)
Date and Procedures of Approval of Financial Statement
(III) Application of New and Revised Standards and Interpretations
(IV) Summary of Major Accounting Policies
(V)
Primary Sources of Major Accounting Judgment, Estimate and
Assumption Uncertainties
(VI) Descriptions for Important Accounting Items
(VII) Related Party Transactions
(VIII) Pledged Assets
(IX) Significant Contingent Liabilities and Unrecognized Contractual
Commitments
(X)
Significant Disaster Loss
(XI) Significant Post-Period Events
(XII) Others
(XIII) Disclosing Information
(1)
Major Transaction Details
(2)
Information on Reinvestment Business
(3)
Investment in China
(4)
Information on Major Shareholders
(XIV) Segmental Information

Page

1
2
3
4
8
9
10
11
13
13
13~15
15~35
35~36
36~79
79~80
80
80~81
81
81
82
82~89
90
91~92
93
93~94

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Declaration

For the year 2024 (from January 1, 2024 to December 31, 2024), the companies that should be included in the consolidated financial statements of affiliated enterprises in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are the same as those that should be included in the consolidated financial statements of parent and subsidiary companies in accordance with IFRS 10 approved by the Financial Supervisory Commission, and the information required to be disclosed in the consolidated financial statements of affiliated enterprises has been disclosed in the previous consolidated financial statements of parent and subsidiary companies, therefore, no further consolidated financial statements of affiliated enterprises will be prepared.

Company: Lotes Co., Ltd.

Chairperson: CHU, TE-HSIANG

Date: March 10, 2025

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Independent Auditor’s Report

To the Board of Directors of Lotes Co., Ltd.:

Audit opinion

We have audited the Consolidated Balance Sheet of Lotes Co., Ltd. and subsidiaries (Lotes Group) as of December 31, 2024 and 2023, the Consolidated Statement of Comprehensive Income as of January 1 to December 31, 2024 and 2023 as well as the Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows and the Notes to Consolidated Financial Statement (including important accounting policies summary).

In our opinions, the compilation of the above consolidated financial statements present fairly, in all material respects, of the financial status of December 31, 2024 and 2023 in Lotes Group and the consolidated financial performance and consolidated cash flow of January 1 to December 31, 2024 and 2023 prepared according to Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and Interpretations approved by the Financial Supervisory Commission and issued into effect. Basis of the audit opinions

The audit was conducted by us in accordance with the Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountants and Generally Accepted Auditing Standards (GAAS). Our responsibilities under these standards will be further explained in the responsibility paragraph of the accountant’s audit on the consolidated financial statements. The personnel regulated by independence at the accounting firm that our accountants work with have been managed according to the code of professional ethics to maintain independence from Lotes Group as well as perform other responsibilities addressed on the regulation. Based on the audit results of us, we believe we have obtained sufficient and appropriate auditing evidence as the basis to express our audit opinions.

Key audit matters

Key audit matters refer to the most important matters on the audits to Lotes Group’s consolidated financial statements of fiscal year 2024 based on the professional judgment of our accountants. The matters have been responded on the whole audited consolidated financial statements and during the process of the expression of the audit opinions. There, our accountants will not express opinions separately towards the matters. Based on the judgment of the accountants, the following key audit matters that should be communicated on the audit report are as follows: I. Recognition of income

Please refer to Note IV (16) to the consolidated financial statements for the accounting policy in terms of income recognition. Please refer to Note VI (16) to the consolidated financial statements for the refund liability. Please refer to Note VI (24) to the consolidated financial statements for details about income.

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Description of the key audit matters:

The operating income is the most critical factor when determining the operational performance of Lotes Group. Users of the statements are cautiously concerned about the performance of the operating income. In response to the market conditions and business needs, discounts were provided for parts of the sales of goods agreed with the customers. Based on the agreements with the customers, the management would estimate the refund liability and include it as a deduction of operating income. Thus, the income recognition evaluation is one of the fundamental evaluation items for accountants in the execution of financial report audit for Lotes Group.

Corresponding audit procedures:

The primary audit procedure conducted by the accountants for the aforementioned key audit matters included the understanding and evaluation of the relevant control procedures and the effectiveness of the design and execution of the control procedure. Regarding the sampling testing for sales close to the balance sheet date, external certification documents were reviewed to assess the adequacy of the income recognition timings. The management’s method to estimate and list refund liabilities were also obtained to assess whether the evaluation is based on the agreed conditions with customers. The adequacy of the refund liability estimate was analyzed with the actual situation afterward.

II. Evaluation of inventory

Please refer to Note IV (8) for the accounting policy of inventory evaluation. Please refer to Note V in the consolidated financial statements for the accounting estimates and assumed uncertainties of the inventory evaluation. Please refer to Note VI (4) in the consolidated financial statements for the information on the losses from the falling price of inventory. Description of the key audit matters:

Due to the impacts of rapid changes in the market demand and the development of production technology, the existing products are at risk to become outdated inventory or non-compliant with market demand. Parts of the inventory may become obsolete or have the market prices dropped. Thus, the inventory evaluation is one of the fundamental evaluation items for the accountants in the execution of financial report audit for Lotes Group. Corresponding audit procedure:

The primary audit procedure conducted by the accountants for the aforementioned key audit matters included the understanding and evaluation of the basis and methods used by the management to assess the net realizable value of inventory. Review and audit were conducted in terms of the data used by the management as the basis and to estimate the net realizable value, and an evaluation was conducted on the estimated sales price to the latest sales record by sampling. To evaluate the adequacy of the drop in prices, the adequacy of the inventory aging report was checked, and the changes in the inventory aging of each period were analyzed.

Other Matters

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Lotes Co., Ltd. has prepared its parent company only financial statements for fiscal years 2024 and 2023, and we have issued an unqualified audit report thereon for your information.

Responsibility from management level and governing unit towards the consolidated financial statements

Management level’s responsibility is to prepare the consolidated financial statements present fairly according to Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and Interpretations approved by the Financial Supervisory Commission and issued into effect and to maintain necessary internal control related to the preparation of the consolidated financial statements in order to ensure there is no major untrue expression on the financial statements due to fraud or error.

When preparing the consolidated financial statements, the responsibility of management level also includes evaluating Lotes Group’s capability of continuous operation, disclosure of relevant matters and the application of continuous operation accounting model unless the management level intends to liquidate Lotes Group or suspend its business operation or there is no alternative practical and feasible solution other than liquidation or business suspension.

The governing unit (including the audit committee) at Lotes Group is responsible for supervising the process of financial reports.

Responsibility of accountants’ audit on the consolidated financial statements

The purpose of the consolidated financial statements audited by our accountants is to obtain reasonable assurance on whether the significant untrue expression exists on the whole consolidated financial statements due to fraud or error as well as issue the audit report. The reasonable assurance is the high certainty; however, it will not be able to guarantee that the significant untrue expression will definitely be able to be detected by generally accepted auditing standards, and the untrue expression might be caused from fraud or error. It is regarded as with significance if the individual amount or the aggregation number of the untrue expression can reasonably predict that it will affect the economic decisions made by the users of the consolidated financial statements.

When we conduct the audit according to generally accepted auditing standards, we use professional judgment and maintain our professional suspicion. We also executed the following tasks:

Identifying and evaluating the risk of major untrue expression on the consolidated financial statements due to fraud or error; designing and implementing proper responding strategies towards the risk evaluated; and obtaining sufficient and appropriate audit evidence as the basis of audit opinions. Due to fraud might be involving with collusion, counterfeiting, malicious omission untrue declaration, or going out of the internal control, the risk of not detecting the major untrue expression due to fraud will be higher than that due to error.
Obtaining necessary understanding of internal control related to audit in order to design proper audit procedure under the situation of the case. However, its purpose is not to express opinion toward the effectiveness of the internal control in Lotes Group.
Evaluating the adequacy of the accounting policies used by the management level and the rationality

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of the accounting evaluation and relevant disclosure concluded.

Based on the audit evidence obtained, conclusion towards the appropriateness of continuous operation accounting basis that the management level adopts and the existence of major uncertainty on events or situations with major concerns affecting Lotes Group’s capability in continuous operation are made. If we believe major uncertainty existed on the event or situation, we must remind the users of consolidated financial statements on the audit report to pay attention on the relevant disclosure or modify audit opinion when the disclosure is not appropriate. The conclusion that we made is based on the audit evidence obtained up to the audit report day, but future events or situations might cause Lotes Group not capable in continuous operation.
Evaluating the overall expression, structure and content of the consolidated financial statements (including relevant notes) as well as whether the consolidated financial statements present fairly, in all material respects, relevant transaction and events.
We obtained sufficient and appropriate audit evidence about the financial information of the constituent entities of the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and execution of the Group's audits and for forming an opinion on the Group's audits.

The communication between us and the governing unit includes the audit scope and time planned and major audit findings (including the significant defects on the internal control identified during the auditing process).

We have also provided information to the governing unit that the personnel of the firm—under which our CPAs are working—who are subject to independence requirements have complied with the statement of independence in the CPA code of professional ethics and communicated to the governing unit all relationships and other matters (including relevant safeguards) that may be considered to affect the independence of CPAs.

We determined the key audit matters that we would like to execute on Lotes Group’s consolidated financial statements for fiscal year 2024 from the communication with the governing unit. We clearly stated the related matters on the audit report unless it is the specific matter that is not allowed to be disclosed to the public according to laws, or under a very rare situation that we decided not to communicate specific matters on the audit report because we can reasonably anticipate the negative influence generated by the communication will be greater than the public interests increased.

KPMG Taiwan

CPAs:

Competent CHIN-KUAN-CHENG-SHENAuthority of : TZU No. 1000011652 Securities CHIN-KUAN-CHENG-SHENApproval TZU No. 1110333933 Certificate No.[March 10, 2025 ]

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Lotes Co., Ltd. And Subsidiaries

Consolidated Balance Sheet

December 31, 2024 and 2023

Unit: NT$ 1,000

Dec. 31, 2024 Amount % $ 18,658,882 37 190,867 - 693,156 1 11,945,095 24 658,417 1 1,094 - 3,418,496 7 190,548 - 1,560 - 3,622 -	Dec. 31, 2024 Amount % $ 3,765,000 7 29,134 - 6,761 - 2,834,862 6 2,592,146 5 1,227,751 2 136,656 - 548,478 1 41,186 -	Dec. 31, 2023 Amount % 1,580,000 4 30,617 - 5,209 - 1,822,819 5 1,859,015 5 969,358 3 129,085 - 420,182 1 38,059 -
	11,181,974 21	6,854,344 18
	288,665 1 73,097 - 269,524 1 413,844 1 24,073 -	934,155 2 43,534 - 226,640 1 487,452 1 25,272 -
35,761,737 70
230,008 1 186,472 - 153,048 - 10,990,051 22 1,228,926 3 525,789 1 217,364 1 306,440 1 611,214 1
	1,069,203 3	1,717,053 4
	12,251,177 24	8,571,397 22
	1,125,347 2 - - 9,830,950 20 24,935,301 50 78,419 -	1,113,298 3 1,423 - 8,896,393 24 18,552,928 49 (790,983) (2)
14,449,312 30
	35,970,017 72	27,773,059 74
	1,989,855 4	1,607,943 4
	37,959,872 76	29,381,002 78
	$ 50,211,049 100	37,952,399 100
$ 50,211,049 100

(Please read the Notes to the Consolidated Financial Statements) Manager: HO, TE-YU

Chairperson: CHU, TE-HSIANG

Accounting Manager: LIU, HSIN-HSIA

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Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Comprehensive Income

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

2024	% 100 48	2023	% 100 53
Amount $ 30,088,992 14,319,522		Amount 24,483,463 13,002,401
15,769,470	52	11,481,062	47
911,892 1,880,568 2,730,694 1,696	3 6 9 -	779,454 1,593,509 2,173,521 (11,371)	3 7 9 -
5,524,850	18	4,535,113	19
10,244,620	34	6,945,949	28
557,248 347,561 831,911 (86,360) 2,119 (28,274)	2 1 3 - - -	325,532 412,287 (74,898) (71,118) - (17,259)	1 2 - - - -
1,624,205	6	574,544	3
11,868,825 2,487,788	40 8	7,520,493 1,793,447	31 8
9,381,037	32	5,727,046	23
4,579 (3,463) 33 916	- - - -	(2,292) 3,892 - (458)	- - - -
233	-	2,058	-
899,449 3 9,858	3 - -	(320,804) - (1,794)	(1) - -
889,594	3	(319,010)	(1)
889,827	3	(316,952)	(1)
$ 10,270,864	35	5,410,094	22
$ 9,276,952 104,085	32 -	5,593,032 134,014	22 1
$ 9,381,037	32	5,727,046	23
$ 10,146,370 124,494	35 -	5,145,430 264,664	21 1
$ 10,270,864	35	5,410,094	22
$	82.77		50.65
$	82.33		50.19

(Please read the Notes to the Consolidated Financial Statements)

Chairperson: CHU, TE-HSIANG

Accounting Manager: LIU, HSIN-HSIA

Manager: HO, TE-YU

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Unit: NT$ 1,000

Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Changes in Equity

From January 1 to December 31, 2024 and 2023

			Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent					Non-controlling interests	Total equity 24,512,876 5,727,046 (316,952)
Share capital		Capital reserves		Retained earnings			Other equity		Equity attributable to owners of the parent
						Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at FVTOCI	Unearned compensation to employees
Share capital for ordinary shares	Certificates of bond-to-stock conversion		Legal reserve	Special reserve	Unappropriated retained earnings
$ 1,068,762 - -	9,536 - -	6,307,022 - -	1,918,686 - -	682,333 - -	13,164,286 5,593,032 (1,834)	(319,295) - (449,712)	(19,758) - 3,944	- - -	22,811,572 5,593,032 (447,602)	1,701,304 134,014 130,650
-	-	-	-	-	5,591,198	(449,712)	3,944	-	5,145,430	264,664	5,410,094
- - - - - - 35,000 9,536 - - -	- - - - - - - (8,113) - - -	- - - 114,556 24,049 52,309 2,270,973 127,484 - - -	625,649 - - - - - - - - - -	- (343,303) - - - - - - - - -	(625,649) 343,303 (2,803,575) - - - - - - - -	- - - - - - - - - - -	- - - - - - - - - - -	- - - - - - - - (6,162) - -	- - (2,803,575) 114,556 24,049 52,309 2,305,973 128,907 (6,162) - -	- - - - - - - - (6,258) (207,388) (144,379)	- - (2,803,575) 114,556 24,049 52,309 2,305,973 128,907 (12,420) (207,388) (144,379)
1,113,298 - -	1,423 - -	8,896,393 - -	2,544,335 - -	339,030 - -	15,669,563 9,276,952 3,696	(769,007) - 868,885	(15,814) - (3,163)	(6,162) - -	27,773,059 9,276,952 869,418	1,607,943 104,085 20,409	29,381,002 9,381,037 889,827
-	-	-	-	-	9,280,648	868,885	(3,163)	-	10,146,370	124,494	10,270,864
- - - - 12,049 - - -	- - - - (1,423) - - -	- - - 90,994 843,563 - - -	559,120 - - - - - - -	- 451,954 - - - - - -	(559,120) (451,954) (2,898,275) - - - - -	- - - - - - - -	- - - - - - - -	- - - - - 3,680 - -	- - (2,898,275) 90,994 854,189 3,680 - -	- - - - - 3,855 366,856 (113,293)	- - (2,898,275) 90,994 854,189 7,535 366,856 (113,293)
$ 1,125,347	-	9,830,950	3,103,455	790,984	21,040,862	99,878	(18,977)	(2,482)	35,970,017	1,989,855	37,959,872

(Please read the Notes to the Consolidated Financial Statements) Manager: HO, TE-YU

Chairperson: CHU, TE-HSIANG

Accounting Manager: LIU, HSIN-HSIA

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Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Cash Flows

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

Cash flows from (used in) operating activities: Net profit before tax Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit impairment gain Net loss (gain) on financial assets and liabilities measured at fair value through profit or loss Interest expense Interest income Dividend income Compensation expense for share-based payment Share in the gain or loss of subsidiaries, associate and joint ventures accounted for using the equity method Loss (gain) on disposal of property, plant and equipment Impairment loss on non-financial instruments Inventory (reversal gain)/write-down and obsolescence loss Other adjustments Total adjustments to reconcile profit (loss): Changes in operating assets and liabilities: Changes in operating assets: Increase in notes receivable (Increase) decrease in accounts receivable Increase in other receivables (Increase) decrease in inventory (Increase) decrease in advance payment Decrease in other current assets Increase in other financial assets Total changes in operating assets Changes in operating liabilities: Decrease in contract liabilities (Increase) decrease in notes payable (Increase) decrease in accounts payable (Increase) decrease in other payables Increase (decrease) in provisions Increase in other current liabilities Increase in refund liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities	2024 $ 11,868,825 2,214,846 64,142 (423) 32,605 86,360 (557,248) (3,520) 25,649 28,274 20,899 - (156,817) (66)	2023 7,520,493 2,333,633 57,955 (11,371) (10,726) 71,118 (325,532) (4,003) 58,061 17,259 35,805 37,320 101,013 (607)
	1,754,701	2,359,925
	(387,592) (2,641,382) (123,205) (604,366) (87,993) 210 (1,560)	(88,404) 1,348,895 (58,914) 876,958 155,894 1,467 -
	(3,845,888)	2,235,896
	(1,483) 1,552 1,012,043 731,875 30,896 3,127 128,296	(27,506) (3,229) (942,001) (87,353) (168) 5,301 36,138
	1,906,306	(1,018,818)
	(1,939,582)	1,217,078
	(184,881)	3,577,003
	11,683,944 530,362 3,520 (70,740) (2,089,491)	11,097,496 275,214 4,003 (58,939) (2,184,951)
	10,057,595	9,132,823

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Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Cash Flows (Continued)

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

Cash flows from (used in) investing activities: Disposal of financial assets measured at FVTOCI Acquisition of financial assets measured at FVTOCI Acquisition of financial assets measured at FVTPL Disposal of financial assets measured at FVTPL Acquisition of Investments accounted for using the equity method Cash outflow from the losing the control of subsidiaries Acquisition of property, plant and equipment Disposal of property, plant and equipment Acquisition of intangible assets Net cash inflows from business combination Acquisition of investment property (Increase) decrease in other non-current assets Net cash flows from (used in) investing activities: Cash flows from (used in) financing activities: Increase (decrease) in short-term loans Repayments of long-term loans Payments of lease liabilities (Decrease)increase in other non-current liabilities Cash dividends paid Cash dividends paid to non-controlling interests Cash capital increase Issuance of restricted employee shares Repurchase of restricted stock awards Issuance of corporate bonds Changes in non-controlling interests Changes in subsidiaries, associates and joint ventures accounted for using equity method Net cash flows from (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2024 $ 2,544 (112,500) (370,860) 8,035 (107,491) - (3,749,026) 49,705 (126,469) - - (281,005)	2023 7,433 - (25,000) 27,794 (94,000) (50,631) (2,658,787) 72,444 (37,453) (54,076) (256,488) 299,198
	(4,687,067)	(2,769,566)
	2,185,000 - (141,087) (1,199) (2,898,275) (113,293) - - (343) 341,862 305,459 -	(317,432) (165,630) (249,887) 171 (2,803,575) (144,379) 2,305,973 16,620 255 1,079,877 (16,092) (1,508)
	(321,876)	(295,607)
	477,739 5,526,391 13,132,491	(25,463) 6,042,187 7,090,304
	$ 18,658,882	13,132,491

(Please read the Notes to the Consolidated Financial Statements) Manager: HO, TE-YU

Chairperson: CHU, TE-HSIANG

Accounting Manager: LIU, HSIN-HSIA

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Lotes Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements

2024 & 2023

(All amounts are in NT$ thousands unless otherwise stated)

I. Company History

Lotes Co., Ltd. (hereinafter referred to as the “Company”) was incorporated on August 23, 1986 in accordance with the provisions of the Company Act and was approved for registration with its registered office at No.15, Wuxun Street, Anle District, Keelung City. The Company and Subsidiaries (hereinafter referred to as the “Consolidated Company”) are principally engaged in the sale and purchase of various hardware parts and components, the manufacturing and processing of various terminals and their connectors, the import and export business in connection with the preceding item and the agency of the preceding item in connection with the tender quotation and distribution of products of domestic and foreign manufacturers. Please refer to Note XIV for further details.

II. Date and Procedures of Approval of Financial Statement

The Consolidated Financial Statement was approved and released by the Board of Directors on March 10, 2025.

III. Application of New and Revised Standards and Interpretations

(1) Impact of New and Revised Standards and Interpretations Endorsed by the Financial Supervisory Commission (FSC)

The Consolidated Company has adopted the following newly issued or amended International Financial Reporting Standards (IFRS) starting from January 1, 2024, as endorsed by the FSC. These adoptions did not have a significant impact on the Company’s consolidated financial statements.

‧Amendments to IAS 1, “Classification of Liabilities as Current or Non-current”

‧Amendments to IAS 1, “Non-current Liabilities with Covenants”

‧Amendments to IAS 7 and IFRS 7, “Supplier Finance Arrangements”

‧Amendments to IFRS 16, “Lease Liability in a Sale and Leaseback”

(2) New and Revised Standards and Interpretations Not Yet Endorsed by the FSC

The Consolidated Company has assessed that the application of the following newly amended International Financial Reporting Standards, effective from January 1, 2025, will not have a significant impact on its consolidated financial statements:

‧Amendments to IAS 21 “Lack of Exchangeability”

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Notes to the Consolidated Financial Statements (Continued)

(3) New and revised standards and interpretations not yet recognized by the FSC

The following new and revised standards and interpretations issued by the International Accounting Standards Board (IASB), but not yet endorsed by the FSC, may be relevant to the Consolidated Company:

Newly Issued or Revised Standard IFRS 18 “Presentation and Disclosure in Financial Statements”	Key Amendments The new standard introduces three categories of income and expenses, two subtotals in the statement of profit or loss, and a single note disclosure for management performance measures (MPMs). These three improvements provide enhanced and consistent guidance on disaggregation of information in financial statements, laying the foundation for better and more comparable information for users. ‧ More Structured Income Statement: Under the current standards, companies use different formats to present operating results, making it difficult for investors to compare financial performance across companies. The new standard adopts a more structured income statement format, introduces a newly defined subtotal for “operating profit,” and classifies all income and expenses derived from a company’s main business activities into three distinct categories. ‧ Management Performance Measures (MPMs): The new standard introduces a definition of MPMs and requires companies to include a single note disclosure in their financial statements explaining why each measure provides useful information, how it is calculated, and how it reconciles with amounts recognized under IFRS. ‧ Greater Disaggregation of Information: The new standard includes enhanced guidance on how companies should disaggregate information in financial statements, including guidance on whether the information should be included in the primary financial statements or further disaggregated in the notes.	Effective Date Issued by IASB
		January 1, 2027

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Notes to the Consolidated Financial Statements (Continued)

The Consolidated Company is currently assessing the potential impact of the above standard and interpretations on its financial position and results of operations, and the relevant impact will be disclosed upon completion of the evaluation.

The Consolidated Company does not expect the following other newly issued or amended standards that have not yet been endorsed to have a significant impact on its standalone financial statements:

‧Amendments to IFRS 10 and IAS 28, “Disposal of or Contribution to Assets between an Investor and its Affiliate or Joint Venture”.

‧Amendments to IFRS 17, “Insurance Contracts” and IFRS 17

‧IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

‧Amendments to IFRS 9 and IFRS 7 “Improvements to the Classification and Measurement

of Financial Instruments”

‧Annual Improvements to IFRS Accounting Standards

‧Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

IV. Summary of Major Accounting Policies

The major accounting policies adopted in this Financial Statement are summarized as follows. Unless otherwise noted, the following accounting policies have been applicable for all presentation period of the Consolidated Financial Statement.

(1) Compliance statement

The Consolidated Financial Statement was compiled in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and Interpretations approved by the Financial Supervisory Commission.

(2) Compiling basis
Measurement foundation

Except the major items in the following balance sheet, the Consolidated Financial Statement was compiled based on the historical costs:

(1) Financial assets at fair value through profit or loss measured with fair value.
(2) Financial assets measured at fair value through other comprehensive income.
(3) Liabilities for cash-settled share-based benefit agreements that are measured at fair value.
(4) Net defined benefit liability (or asset) is measured according to the fair value of the retirement fund assets deducting present value of the defined benefit obligation and the ceiling influence value listed in Footnotes IV (17).
Functional currency and presentation currency

Each party of the Consolidated Company takes the currency of major economic environment where each operation is located as its functional currency. The Consolidated

~15~

Notes to the Consolidated Financial Statements (Continued)

Financial Statement is presented in the functional currency of the Company, NTD. All of the financial information expressed herein in NTD is of one thousand per unit.

(3) Consolidation basis

The main entity for the preparation of consolidated financial statements consists of the Company and the entity controlled by the Company (i.e., the subsidiaries).

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control is obtained until the date that control is lost. Total consolidated income of subsidiaries is attributed to the Company's owners and non-controlling interests, respectively, even if the non-controlling interests become a deficit balance as a result.

Inter-company transactions, balances and any unrealized gains and losses are eliminated in the preparation of the consolidated financial statements.

The financial statements of subsidiaries have been appropriately adjusted to conform to the accounting policies used by the Consolidated Company.

Changes in ownership interests in subsidiaries that do not result in a loss of control of subsidiaries are accounted for as equity transactions with owners.

Subsidiaries included in the consolidated financial statements

The subsidiaries included in the consolidated financial statements are:

Investing
company
Subsidiary
**Location ** Shareholding %
Dec. 31,
2024
Dec. 31,
2023
Note

The Company Lotes Investments Limited
Samoa
〞
Good Hope Investments
Limited
〞
〞
Guansi Development Co., Ltd.
〞
〞
Zhaxi Investment Co., Ltd.
Anguilla
〞
Jiayou Investment Co., Ltd
Taiwan
〞
Lotes USA, Inc
America
〞
LOTES EU GmbH
Germany
〞
Lomites Co., Ltd.
Taiwan
〞
LOTES VIET NAM
COMPANY LIMITED
Vietnam
Lotes
Investments
Limited
Loteson International
Investments Limited
Hong Kong
Loteson
International
Investments
Limited
Lotes Guangzhou Co., Ltd.
China
Lotes
Guangzhou
Co., Ltd.
Lotes Hengnan Co., Ltd.
〞 100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.84%
99.04%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%

Investing company Subsidiary Location	Shareholding % Dec. 31, 2024 Dec. 31, 2023 Note
The Company Lotes Investments Limited Samoa `〞` Good Hope Investments Limited `〞` `〞` Guansi Development Co., Ltd. `〞` `〞` Zhaxi Investment Co., Ltd. Anguilla `〞` Jiayou Investment Co., Ltd Taiwan `〞` Lotes USA, Inc America `〞` LOTES EU GmbH Germany `〞` Lomites Co., Ltd. Taiwan `〞` LOTES VIET NAM COMPANY LIMITED Vietnam Lotes Investments Limited Loteson International Investments Limited Hong Kong Loteson International Investments Limited Lotes Guangzhou Co., Ltd. China Lotes Guangzhou Co., Ltd. Lotes Hengnan Co., Ltd. `〞`	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.84% 99.04% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

~16~

Notes to the Consolidated Financial Statements (Continued)

`〞`	Shenzhen DeYi Automation	`〞`	100.00%	100.00%
	Equipment Co., Ltd.
`〞`	Lotes Zhongshan Co., Ltd.	`〞`	50.00%	50.00%
`〞`	Zhongshan Dezhi Metal Surface	`〞`	100.00%	100.00%
	Treatment Co., Ltd.
`〞`	Hengnan Deyi Property	`〞`	100.00%	100.00%
	Development Co., Ltd.
`〞`	Zhongshan Jinmeida Metal	`〞`	- %	- % (Note 1)
	Surface Treatment Co., Ltd.
`〞`	Guangzhou Leside Technology	`〞`	100.00%	100.00%
	Co., Ltd.
`〞`	Zhongshan Huixing Electronics	`〞`	30.06%	30.06% (Note 1)
	Co., Ltd.
`〞`	Guangzhou Dezhi Technology	`〞`	100.00%	100.00%
	Co., Ltd.
Lotes	Zhongshan DeZhi Real Estate	China	100.00%	100.00%
Zhongshan	Development Co., Ltd.
Co., Ltd.
Guangzhou	Chongqing Fuxinrui Electronic	`〞`	51.00%	51.00%
Leside	Technology Co., Ltd.
Technology
Co., Ltd.
Zhongshan	Ningbo Huili Electronic	`〞`	51.00%	51.00%
Huixing	Technology Co., Ltd.
Electronics
Co., Ltd.
Good Hope	Xincheng Development Co.,	Samoa	100.00%	100.00%
Investments	Ltd.
Limited
`〞`	REKA Technology Co., Ltd.	Hong Kong	100.00%	100.00%
Guansi	Jae You Co., Ltd.	`〞`	100.00%	100.00%
Development
Co., Ltd.
Jae You Co.,	Lotes Suzhou Co., Ltd.	China	100.00%	100.00%
Ltd.
Lotes Suzhou	Lotes Zhongshan Co., Ltd.	`〞`	50.00%	50.00%
Co., Ltd.
Zhaxi	Wangden Investments Limited	Hong Kong	100.00%	100.00%
Investment
Co., Ltd.
Wangden	Zongka Technology (Shenzhen)	China	100.00%	100.00%
Investments	Co., Ltd.
Limited
Jiayou	Ememe Robot Co., Ltd.	Taiwan	94.37%	94.37% (Note 2)
Investment
Co., Ltd.
`〞`	Compertum Microsystems Inc.	`〞`	30.48%	31.78% (Note 1)
`〞`	Good News Medical Co., Ltd.	`〞`	27.29%	25.44% (Note 1)

~17~

Notes to the Consolidated Financial Statements (Continued)

`〞`	Lintes Technology Co., Ltd.	`〞`	48.32%	49.61% (Note 1)
Good News	FELICITY NEWS LIMITED	British Virgin Islands	100.00%	100.00%
Medical Co.,
Ltd.
FELICITY	Guangzhou Jiashimei Trading	China	100.00%	100.00%
NEWS	Co., Ltd.
LIMITED
Lintes	Genie Precision Machine Co.,	Taiwan	60.00%	60.00%
Technology	Ltd.
Co., Ltd.
`〞`	Compertum Microsystems Inc.	`〞`	10.16%	10.59% (Note 1)
`〞`	Jilong Co., Ltd.	Samoa	100.00%	100.00%
`〞`	LINTES TECHNOLOGY	Thailand	100.00%	100.00%
	(THAILAND) CO., LTD.
Jilong Co.,	Rihui Co., Ltd.	Samoa	100.00%	100.00%
Ltd.
Rihui Co.,	Lintes Technology (Suzhou)	China	100.00%	100.00%
Ltd.	Co., Ltd.

Note 1:Although the Consolidated Company does not hold more than half of the voting shares of this company, it is included as a subsidiary in the consolidated financial statements because the Consolidated Company has control over its major operating activities and other decisions.
Note 2: Ememe Robot Co., Ltd. resolved to proceed with dissolution and liquidation at an extraordinary shareholders’ meeting on July 24, 2024, and completed the liquidation and final return filing on January 24, 2025.
Subsidiaries not included in the consolidated financial statements: None.

(4) Foreign currency

1. Foreign currency trading

Foreign currency is converted into functional currency according to exchange rate on the date of transaction. At the end of each subsequent reporting period (the “Reporting Date”), foreign currency monetary items are translated into functional currency at the exchange rate prevailing on that date. Non-monetary items measured at fair value in foreign currencies are translated into functional currencies using the exchange rates prevailing at the date of fair value measurement, while non-monetary items measured at historical cost in foreign currencies are translated at the exchange rates prevailing at the dates of the transactions.

The foreign currency exchange difference resulting from the conversion is recognized to be other comprehensive Income excepting for the following situations, otherwise, recognized to be gains and losses:

(1) Equity instruments designated as measured at fair value through other comprehensive income.
(2) Financial liabilities designated as a net investment hedge for a foreign operating entity

~18~

Notes to the Consolidated Financial Statements (Continued)

are within the effective range of the hedge; or

(3) Eligible cash flow hedges are within the effective range of the hedge.
Foreign operating organizations

The assets and liabilities of foreign operating organizations, including the business reputation and fair value adjustment during the acquisition, are converted to be NTD according to exchange rate on the report day; gains and losses are converted into NTD according to exchange rate in the current period, and the resultant conversion difference is recognized to be other comprehensive Income.

In case of the loss of control, joint control or material influences arising from the punishment on foreign operating organizations, the accumulated conversion differences related to the foreign operating organizations shall be fully reclassified as gains and losses. Upon partial disposal of a subsidiary with foreign operations, the related accumulated exchange differences are reattributed to non-controlling interest on a pro rata basis. In case of affiliated company or joint ventures of foreign operating organizations involved in some of the punishment, related accumulated conversion differences shall be fully reclassified as gains and losses in proportion.

As to the receivable and payable monetary items of foreign operating organizations, if without the repayment plan or the possibility of repayment in foreseeable future, the resultant gains and losses from foreign currency conversion shall be regarded as a part of net investments to the foreign operating organizations as recognized as other comprehensive income.

(5) Standards for classifying current and non-current assets and liabilities

The Consolidated Company classifies an asset as a current asset when it meets any of the following criteria; all other assets are classified as non-current assets:

It is expected to be realized in the entity’s normal operating cycle or is intended to be sold or consumed;
It is held primarily for the purpose of trading;
It is expected to be realized within 12 months after the reporting period; or
It is cash or a cash equivalent (as defined in IAS 7), unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. The Consolidated Company classifies a liability as a current liability when it meets any

of the following criteria; all other liabilities are classified as non-current liabilities:

It is expected to be settled in the entity’s normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within 12 months after the reporting period; or
The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

~19~

Notes to the Consolidated Financial Statements (Continued)

(6) Cash and cash equivalents

Cash includes cash on hand and demand deposits. Cash equivalents are the investments which are allowed to be converted into normed cash with few value change risks and short-term high flowability. Certificate of deposit which satisfy the foregoing definition and with the holding purpose of meeting the short-term cash pledges rather than investment or others shall be recognized as cash equivalents.

(7) Financial instrument

Accounts receivable and the original debt securities issued are recognized when they are incurred. All other financial assets and financial liabilities were originally recognized when the Consolidated Company became a party to the terms of the financial instrument agreement. Financial assets that are not measured at fair value through profit or loss (except accounts receivable, which do not contain a significant financial component) or financial liabilities are measured at fair value plus the transaction cost directly attributable to the acquisition or issue. Accounts receivable, which do not contain significant financial components, are originally measured at transaction prices.

1. Financial assets

The purchase or sale of financial assets by a conventional trader, the Consolidated Company shall treat all purchases and sales of financial assets classified in the same manner in accordance with the transaction date or the settlement date.

At the time of the original recognition, financial assets were classified as: financial assets measured at amortized cost, debt instrument investments measured at fair value through other comprehensive income, equity instrument investments measured at fair value through other comprehensive income, or financial assets measured at fair value through gains and losses.

The Consolidated Company will only change its business model for managing financial assets from the first day of the next reporting period to classify all affected financial assets.

(1) Financial assets measured at amortized cost

Financial assets are measured at post-amortized cost when they simultaneously meet the following conditions and are not specified to be measured at fair value through profit or loss:

The financial asset is held under a business model for the purpose of collecting contractual cash flow.
The cash flow generated by the terms of the contract on the financial asset at the specified date is solely for the payment of the principal and the interest on the outstanding principal amount.

The cumulative amortization of such assets is subsequently calculated by the

~20~

Notes to the Consolidated Financial Statements (Continued)

effective interest method plus or minus the original amount recognized, and the amortized cost of any loss allowance is adjusted. Interest income, foreign exchange gains and losses and impairment losses are recognized as gains and losses. When derecognized, the profit or loss shall be included in the profit or loss.

(2)Financial assets measured at FVTOCI

When the debt instrument investment simultaneously meets the following conditions and is not specified to be measured at fair value through profit and loss, it is measured at fair value through other consolidated profit and loss:

The financial asset is held under a business model for the purpose of collecting contractual cash flow and selling.
The cash flow generated by the terms of the contract on the financial asset at the specified date is solely for the payment of the principal and the interest on the outstanding principal amount.

The Consolidated Company may, at the time of its original recognition, irrevocably choose to report the subsequent changes in the fair value of its non-tradable equity instrument investments to other consolidated profits and losses. The foregoing selection is made on an item-by-item tool basis.

Debt instrument investors are measured by fair value afterwards. Interest income, foreign exchange gains and losses and impairment losses calculated by the effective interest method are recognized as gains and losses, while the remaining net gains or losses are recognized as other comprehensive income. When discounting, the accumulated amount of other comprehensive income shall be reclassified into comprehensive income.

Equity instrument investors are measured by fair value afterwards. Dividend income (unless it clearly represents the recovery of a portion of the investment cost) is recognized as a profit or loss. The remaining net benefits or losses are recognized as other comprehensive income and are not reclassified into gains and losses.

Dividend income from equity investments is recognized on the date (usually ex-dividend date) when the Consolidated Company becomes entitled to receive dividends.

(3) Financial assets measured at FVTPL

Financial assets not measured at amortized cost or through other comprehensive income at fair value (e.g., financial assets held for trading and managed on a fair value basis for performance evaluation) are measured at fair value through profit or loss, including derivative financial assets. The Consolidated Company may, at the time of its original recognition, irrevocably designate financial assets that meet the criteria of measuring at fair value according to the amortized cost or through other comprehensive

~21~

Notes to the Consolidated Financial Statements (Continued)

income as financial assets measured at fair value through gains and losses in order to eliminate or substantially reduce improper accounting matching.

Such assets are subsequently measured at fair value and their net gains or losses (including any dividends and interest income) are recognized as gains or losses.

(4) Business model evaluation

The purpose of the Consolidated Company is to assess the business model of holding financial assets at a portfolio level, which best reflects the way of operation and management and the way of providing information to management. The following information is considered:

The portfolio policies and objectives described and the operation of such policies. Including whether the management’s strategy is to focus on earning contractual cash flow, maintaining a certain portfolio of interest rates, matching the duration of financial assets with the duration of the relevant liabilities or anticipated cash outflows, or achieving cash flow through the sale of financial assets.
Performance of the business model and how the financial assets held under the business model are evaluated and reported to the principal managers of the business.
Risks that affect the performance of the business model (and the financial assets held under the business model) and the manner in which such risks are managed.
The frequency, amount and timeliness of previous sales of financial assets, the reasons for such sales and the expectation of future sales.
The transfer of a financial asset to a third party for the above business purposes
that does not meet the exclusion criteria is not a sale as described above, consistent with the purpose for which the merged Consolidated Company continues to recognize the asset.
(5) Evaluate whether the cash flow of the contract is fully the interest on the payment of the principal and the amount of outstanding principal

For evaluation purposes, the principal is the fair value of the financial asset at the time of its original recognition, and the interest is made up of the following considerations: the time value of money, the credit risk associated with the amount of outstanding principal in circulation during a particular period, and other basic lending risks and costs and profit margins.

To evaluate whether the contract cash flow is fully interest on the principal and the outstanding principal amount, the Consolidated Company considers the terms of the financial instrument contract, including whether the financial asset contains a contract term that can change the point or amount of the cash flow of the contract, causing it to fail to meet this condition. In the evaluation, the Consolidated Company considers:

~22~

Notes to the Consolidated Financial Statements (Continued)

Any contingencies that change the timeliness or amount of the cash flow of the contract;
The terms of the coupon rate may be adjusted, including the nature of the variable rate;
The nature of prepayment and extension; and
Claims of the Consolidated Company are limited to cash flow terms derived from specific assets (e.g. non-recourse nature).
(6) Impairment of financial assets

For the financial assets measured at the amortized cost after (including cash and about when cash, notes receivable, accounts receivable, other receivables, refundable deposit, and other financial assets, etc.), through the other comprehensive income measured at fair value, the debt instruments of investment assets and contract of expected loss, the Consolidated Company recognizes the allowance for credit losses.

The following financial assets are measured against losses according to the expected credit loss amount of 12 months, and the rest are measured according to the expected credit loss amount of the existing period:

Determine that the credit risk of the debt securities at the reporting date is low; and
The credit risk of other debt securities and bank deposits (i.e. the risk of default during the expected life of financial instruments) has not increased significantly since the original recognition.

The loss allowance for accounts receivable and contract assets is measured in terms of the expected credit loss during the period of existence.

In determining whether credit risk has increased significantly since the initial recognition, the Consolidated Company considers reasonable and verifiable information (available at no excessive cost or investment), including qualitative and quantitative information, as well as analysis based on the Consolidated Company’s historical experiences, credit assessment and forward-looking information.

The Consolidated Company shall be deemed to be in default of the financial asset if the debtor of the contract payment is unlikely to meet his credit obligations to make the full payment to the Consolidated Company.

Expected credit loss during the life of a financial instrument refers to the expected credit loss arising from all possible defaults during the life of the financial instrument.

Twelve-month expected credit loss refers to the expected credit loss arising from the possible default of the financial instrument within twelve months after the date of the report (or a shorter period, if the expected duration of the financial instrument is shorter than twelve months).

The longest contract period during which the expected credit loss is measured is

~23~

Notes to the Consolidated Financial Statements (Continued)

the longest contract period during which the Consolidated Company is exposed to credit risk.

The expected credit loss is the probabilistic weighted estimate of the credit loss during the expected life of the financial instrument. Credit losses are measured in terms of the present value of all cash shortfalls, the difference between the cash flows that the Consolidated Company can collect under the contract and the cash flows that the Consolidated Company expects to collect. The expected credit loss is discounted at the effective interest rate of the financial asset.

On each reporting date, the Consolidated Company evaluates whether there is a credit impairment in the debt securities on which financial assets are measured at after-amortized cost and on which fair value is measured through other comprehensive income. When one or more events have occurred that adversely affect the estimated future cash flow of a financial asset, the financial asset has suffered a credit impairment. Evidence of credit impairment of financial assets includes observable information relating to:

Major financial difficulties of the borrower or issuer;
Default, such as delay or delay beyond a specified period;
For economic or contractual reasons related to the borrower’s financial difficulties, the merged Consolidated Company gives the borrower concessions that the borrower would not have considered;
The borrower is likely to file for bankruptcy or other financial restructuring; or
The active market for the financial asset disappears due to financial difficulties.

The loss allowance for a financial asset measured at its amortized cost is deducted from the carrying amount of the asset. The allowance for losses on debt instrument investments is measured at fair value through other comprehensive income. It is adjusted and recognized as other comprehensive income (without reducing the carrying amount of the assets).

When the Consolidated Company cannot reasonably expect to recover the financial assets as a whole or in part, it will directly reduce the total book amount of its financial assets. For the Company, the Consolidated Company shall analyze the date and amount of the write-off on the basis of whether it is reasonable to expect recovery. The Consolidated Company does not expect a significant reversal of the write-off. However, financial assets that have been written off may still be enforced to comply with the procedures of the Consolidated Company for recovering overdue amounts. (7) Financial assets derecognition

When the Consolidated Company terminates the contractual rights from the cash flow of such assets or has transferred the financial assets and almost all risks and returns

~24~

Notes to the Consolidated Financial Statements (Continued)

of the asset ownership have been transferred to other enterprises, the financial assets shall be derecognized.

Transactions in which the Consolidated Company enters into transfers of financial assets that retain all or substantially all of the risks and rewards of ownership of the transferred assets continue to be recognized on the balance sheet.

Financial liabilities and equity instruments
(1) Classification of liabilities or equity

Debt and equity instruments issued by the Consolidated Company are classified as financial liabilities or equity based on the substance of the contractual agreements and the definitions of financial liabilities and equity instruments.

(2) Equity transactions

An equity instrument is any contract that evidences a residual interest in the assets of the Consolidated Company after deducting all of its liabilities. Equity instruments issued by the Consolidated Company are recognized at the amount of the consideration received less direct issue costs.

(3) Compound financial instruments

The number of shares issued does not vary with the change in fair value of the compound financial instruments, which are convertible bonds (denominated in New Taiwan dollars) that the holders have the option to convert to equity.

The original recognition amount of the liability component of a compound financial instrument is measured at the fair value of a similar liability excluding the equity conversion rights. The original recognition amount of the equity component is measured as the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to the carrying amounts of the original liability and equity.

After initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not remeasured after initial recognition.

Interest related to financial liabilities is recognized as profit or loss. Financial liabilities are reclassified to equity upon conversion, and no gain or loss is recognized upon conversion.

(4) Financial liabilities

Financial liabilities are classified as amortized costs or measured at fair value through profit or loss. Financial liabilities which are held for trading, derivatives or specified at the time of their original recognition are classified as being measured at fair

~25~

Notes to the Consolidated Financial Statements (Continued)

value through profit or loss. Financial liabilities, measured at fair value through profit and loss, are measured at fair value, and the associated net benefits and losses, including any interest expense, are recognized as profit and loss.

The effective subsequent interest method for other financial liabilities is measured at the amortized cost. Interest expenses and exchange gains and losses are recognized as gains and losses. Any benefit or loss at the time of discounting is also considered as profit or loss.

(5) Derecognition of financial liabilities

The Consolidated Company derecognizes financial liabilities when contractual obligations have been fulfilled, cancelled or matured. When the terms of a financial liability are modified and the cash flows of the modified liability differ materially, the original financial liability is derecognized and a new financial liability is recognized at fair value based on the modified terms.

When derecognizing financial liabilities, the difference between carrying amount and the sum of paid or payable considerations (including any transferred non-cash capital or assumed liabilities) shall be recognized as gains and losses.

(6) Offset between financial assets and liabilities

Financial assets and financial liabilities can be offset with each other and represented on the balance sheet with net value only when the Consolidated Company has legal rights to offset and has the intention to deliver with net value as well as realize capital and liquidate the liabilities.

3. Derivative financial instruments

The Consolidated Company holds derivative financial instruments to avoid foreign currency and interest rate risks. Embedded derivatives are separated from the main contract when specific conditions are met and the main contract is not a financial asset.

Derivative instruments are initially recognized at fair value and subsequently measured at fair value, and the resulting gain or loss is recognized directly in profit or loss.

(8) Inventory

Inventory shall be measured with the lower of the costs and net realizable value. The costs include the acquisition, production and processing costs enabling them to arrive at the available places and status and other costs, which are calculated according to the standard cost method, and priced at cost transferring according to weighted mean method. The costs of the inventory of finished products and products in process include the manufacturing costs amortized based on normal production capacity according to proper percentage.

Net realizable value refers to the estimated prices under normal operation deducting estimated costs to be needed for estimated completion and estimated costs to be needed for completing selling.

~26~

Notes to the Consolidated Financial Statements (Continued)

(9) Investments in Associates

Associates are entities over which the Consolidated Company has significant influence, but not control or joint control, over financial and operating policies.

The Consolidated Company accounts for its interests in associates using the equity method. Under the equity method, the investment is initially recognized at cost, including the cost of the transaction. The carrying amount of the investment in associates includes goodwill identified at the time of the initial investment, less any accumulated impairment losses.

The consolidated financial reports include the Consolidated Company's share of the profits or losses and other comprehensive income of the associates, from the date of significant influence until the date when significant influence is lost, after adjustments consistent with the Consolidated Company’s accounting policies. When an associate undergoes an equity transaction affecting comprehensive income and other comprehensive income that does not affect the Consolidated Company’s ownership percentage, the Consolidated Company recognizes any changes in equity proportionately as capital reserves.

Unrealized gains and losses arising from transactions between the Consolidated Company and its associates are recognized in the financial statements only to the extent unrelated to the investor's interest in the associates. When the Consolidated Company’s share of losses in an associate equals or exceeds its interest in the associate, recognition of further losses is stopped unless there is a legal or constructive obligation or payments have been made on behalf of the investee.

(10) Investment property

Investment real estate means real property held for the purpose of earning rent or asset appreciation, or both, rather than for the purpose of production, provision of goods or services, or for administrative purposes. Investment real estate is originally measured by cost, and later measured by cost minus accumulated depreciation and accumulated impairment. The depreciation method, durable life and residual value shall be treated in accordance with the provisions of real estate, plant and equipment.

The disposal interest or loss of the investment real estate (calculated at the difference between the net disposal price and the account amount of the project) shall be recognized as the profit or loss.

The rental income of investment real estate is recognized as other income in the straight-line method during the lease term. The incentive to lease is recognized as part of the rental income during the lease term.

(11) Property, plant and equipment

1. Recognition and measurement

Items of property, plant and equipment are measured at cost, including capitalized

~27~

Notes to the Consolidated Financial Statements (Continued)

borrowing costs, less accumulated depreciation and any accumulated impairment.

Significant components of property, plant and equipment are treated as separate items

(major components) when they have different life cycles.

Gain or loss on disposal of property, plant and equipment is recognized in profit or

loss.

Subsequent costs

Subsequent expenses are capitalized only when it is probable that future economic benefits will flow into the Consolidated Company.

Depreciation

Depreciation is calculated based on the cost of the asset less its residual value and is recognized in profit or loss using the straight-line method over the estimated useful life of each component.

The land is not subject to depreciation.

The estimated useful lives for the current and comparative periods are as follows:

(1) Buildings 20-40 years
(2) Machinery 2-10 years
(3) Other equipment 2-15 years

The Consolidated Company reviews the method of depreciation, durability and residual value at each reporting date and makes appropriate adjustment as necessary.

Reclassification to investment real estate

When real property for own use is reclassified to investment property, the real property is reclassified to investment property based on its carrying amount at the time of change of use.

(12) Leasing

The Consolidated Company shall assess whether the contract is a lease or includes a lease on the date of formation of the contract. If the contract transfers control over the use of the identified assets for a period of time in exchange for consideration, the contract shall be a lease or includes a lease.

1. The lessee

The Consolidated Company recognize the right-of-use assets and lease liabilities on the beginning date of the lease. Right-of-use assets are originally measured in terms of cost, which includes the original measured amount of lease liabilities, adjusts the lease beginning date or before payment of any rent payment, and the initial direct costs, and applied to removing the asset and restoring its location or the estimated cost of the underlying assets. It minuses the charge of any lease incentives at the same time.

Depreciation of right-of-use assets following the commencement of the lease shall be carried out by the straight-line method at the end of the useful life of right-of-use assets or

~28~

Notes to the Consolidated Financial Statements (Continued)

earlier at the end of the lease term. In addition, the Consolidated Company will periodically evaluate whether there is any loss of right-of-use assets and deal with any loss that has occurred, and adjust the right-of-use assets in the case of lease liabilities.

Lease liabilities are defined as the present value of lease benefits not yet paid at lease commencement date. If the implied lease rate is easy to determine, the discount rate will be that rate, and if not, the incremental borrowing rate of the Consolidated Company will be used. Generally speaking, the Consolidated Company adopts its incremental borrowing rate as the discount rate.

Lease benefits measured in lease liabilities include:

(1) fixed payments, including substantive fixed payments;
(2) depending on the variation of a certain index or rate of rent payment, the index or rate on the commencement date of the lease shall be used as the original measurement;
(3) the guaranteed amount of salvage value expected to be paid; and
(4) the price at which the option to exercise the option to purchase or terminate the lease will be reasonably determined or the penalty to be paid.

Lease liabilities is then calculated using effective interest method, and the amount was measured when:

(1) changes in the index or rate used to determine lease payments result in changes in future lease payments;
(2) the guaranteed amount of the residual value expected to be paid has changed;
(3) the evaluation of the underlying asset purchase option has changed;
(4) the estimate of whether to exercise the option of extension or termination has changed, which leads to the change of the assessment of the lease period;
(5) modification of the subject matter, scope or other terms of the lease.

Lease liabilities are remeasured due to the aforementioned changes in the index or rate used to determine lease payments, changes in the residual value guarantee amount, and changes in the evaluation of purchases, extensions or termination options, the book value of right-of-use assets should be adjusted accordingly. When the book value of right-of-use assets is reduced to zero, the remaining re-measured amount is recognized in profit or loss.

For the tease modifications about the reduced coverage, the book amount of right-of-use assets will be reduced to reflect partial or total termination of Lease, and the difference between Lease assets and Lease assets will be included in the profit and loss.

The Consolidated Company will express the right-of-use assets and lease liabilities that do not conform to the definition of investment real estate in the form of single line items in the balance sheet.

~29~

Notes to the Consolidated Financial Statements (Continued)

In relation to short-term leases and leases of low-value assets, the Consolidated Company has chosen not to recognize right-of-use assets and lease liabilities, but rather to recognize lease payments on a straight-line basis as an expense during the lease term.

2. The lessor

The transaction in which the Consolidated Company is a lessor shall be classified as a financial lease or an operating lease on the date of establishment of the lease, depending on whether or not the lease contract is transferred to almost all the risks and rewards attached to the ownership of the underlying asset. In the evaluation, the Consolidated Company shall consider certain indicators, including whether the lease term covers the principal part of the underlying asset’s economic life.

If the Consolidated Company is a sublease lessor, it will handle the master lease and the sublease transaction respectively and evaluate the sublease transaction classification based on the right-of-use assets generated from the master lease. If the principal lease is a short-term lease and a recognition waiver is applicable, the sublease transaction shall be classified as an operating lease.

(13) Intangible assets

1. Recognition and measurement

Goodwill arising from the acquisition of subsidiaries is measured at cost less accumulated impairment.

Computer software acquired by the Consolidated Company is measured at cost less accumulated amortization and accumulated impairment.

2. Subsequent expenditure

The subsequent expenditure can be capitalized only when they can increase the future economic benefits of relevant specific assets, and all of other expenditures are recognized as gains and losses when they occur, including the expenses for developing reputation and brand establishing.

3. Amortization

Except for goodwill, amortization is calculated based on the cost of the asset less its estimated residual value and is recognized in profit or loss using the straight-line method over the estimated useful lives of the Intangible assets, from one to five years from the time the assets reach a ready-for-use condition.

The Consolidated Company reviews the amortization method, useful life and residual value of Intangible assets at each reporting date and makes appropriate adjustments as necessary.

(14) Non-financial asset impairment

At each reporting date, the Consolidated Company assesses whether there is any indication that the carrying amount of non-financial assets (other than inventories, deferred

~30~

Notes to the Consolidated Financial Statements (Continued)

income tax assets) may be impaired. If any indication exists, the recoverable amount of the asset is estimated. Goodwill is tested for impairment on a regular basis each year.

For the purpose of impairment testing, cash inflows that are largely independent of other individual assets or groups of assets are treated as the smallest identifiable group of assets.

The recoverable amount is the higher of the fair value less costs to dispose of the individual asset or cash-generating unit or its value in use. If the recoverable amount of an individual asset or cash-generating unit is less than its carrying amount, an impairment loss is recognized. An impairment loss is recognized immediately in profit or loss and is reduced first by the carrying amount of goodwill amortized on the cash-generating unit and then by the carrying amount of each other asset in the unit in proportion to its carrying amount.

Goodwill impairment losses are not reversed. Non-financial assets other than goodwill are reversed only to the extent that they do not exceed the carrying amount (net of depreciation or amortization) that would have been determined had no impairment loss been recognized for the asset in prior years.

(15) Provision for liabilities

Provisions are recognized as present obligations due to past events that make it probable that the Consolidated Company will need to expend economically efficient resources in the future to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The amortization of the discount is recognized as interest expense.

The amount recognized in Provisions takes into account the risks and uncertainties of the obligation and is the best estimate of the payments required to settle the obligation at the end of the reporting period. If Provisions is measured at the estimated cash flows to settle this realistic obligation, the carrying amount is the present value of those cash flows. Restoration of Leased Premises:

A provision is recognized for the estimated dismantling, removal, and restoration obligations associated with leased assets acquired by the Consolidated Company, and the related expenses are recognized over the lease term.

(16) Income recognition

Revenue from customer contracts

Income is measured in consideration for the expected entitlement to transfer goods or services. The Consolidated Company recognizes revenue from the transfer of control of goods or services to the customer in order to meet its performance obligations.

The Consolidated Company manufactures electronic components and sells them to manufacturers in the electronics industry. The Consolidated Company recognizes revenue at the time of the transfer of control over the products. Control transfer of the product means

~31~

Notes to the Consolidated Financial Statements (Continued)

that the product has been delivered to the customer and the customer can fully determine the sales channel and price of the product, and there is no failure to fulfill obligations that would affect the customer’s acceptance of the product. Delivery occurs when the product is shipped to a specific location, the risk of obsolescence and loss has been transferred to the customer, the customer has accepted the product in accordance with the sales contract, the acceptance terms have expired, or the Consolidated Company has objective evidence that all acceptance conditions have been met.

The Consolidated Company recognizes revenue on the basis of the net amount of the estimated discount deducted from the contract price, the amount of which is estimated based on past experiences, and only to the extent that there is a high probability that no significant turnaround will occur. As of the date of the report, the sales will expect to pay the customer for the discount, which is refunded as refund liabilities. The average credit period of sales is one hundred twenty days to one hundred fifty days, which is consistent with the practice of the same trade, so no financing elements are included.

The Consolidated Company shall recognize accounts receivable at the time of delivery of the goods, as the Consolidated Company shall have the right to receive unconditional consideration at that time.

The time between the transfer of goods or services from all customer contracts to the customer and the time between the customer’s payments for the goods or services is expected to be no more than one year, so the Consolidated Company does not adjust the time currency value of the transaction price.

(17) Employee benefits

1. Defined contribution plan

The obligation for contributions under the defined contribution plan is recognized as an expense during the period in which the employees provide services.

2. Defined benefit plan

The Consolidated Company’s net obligation to a defined benefit plan is measured by discounting the present value of future benefits earned by the employee’s current or prior period of service, less the fair value of the plan assets.

The defined benefit obligation is actuated annually by a qualified actuary using the projected unit benefit method. When the results of the calculation are probable to be favorable to the Consolidated Company, an asset is recognized to the extent of the present value of any economic benefits that may be obtained by returning a contribution from the plan or reducing future contributions to the plan. Any minimum funding requirement is taken into account in calculating the present value of economic benefits.

The remeasurement of the net defined benefit obligation, including actuarial gains and losses, compensation for plan assets (excluding interest), and any change in the impact of asset limits (excluding interest) is recognized immediately in other comprehensive

~32~

Notes to the Consolidated Financial Statements (Continued)

income and accumulated in retained earnings. The Consolidated Company determines net interest expense (income) for net defined benefit liabilities (assets) using the net defined benefit liabilities (assets) and discount rate determined at the beginning of the annual reporting period. Net interest expense and other costs for defined benefit plans are recognized in profit or loss.

When a plan is revised or curtailed, changes in benefits related to prior period service costs or curtailment gains or losses are recognized immediately in profit or loss. The Consolidated Company recognizes gain or loss on the settlement of defined benefit plans when settlement occurs.

3. Short-term employee benefits

Short-term employee benefit obligations are recognized as an expense when services are provided. If the Consolidated Company has a present legal or constructive obligation to pay for services rendered by employees in the past and the obligation can be estimated reliably, the amount is recognized as a liability.

(18) Share-based payment transactions

Equity-settled share-based payment agreements recognize an expense and increase relative equity over the vesting period of the award at the grant date fair value. The expense recognized is adjusted for the number of awards that are expected to qualify for the service condition and the non-market vesting condition, and the final amount recognized is measured based on the number of awards that qualify for the service condition and the non-market vesting condition on the vesting date.

The non-vested conditions regarding share-based payment awards are reflected in the measurement of the fair value of the share-based payment awards at the date of grant and no adjustment is required to be made to verify the difference between the expected and actual results.

The fair value amount of the share appreciation rights payable to employees for cash settlement is recognized as an expense and an increase in the relative liability in the period in which the employees reach the point where they can receive unconditional compensation. The liability is remeasured at the fair value of the share appreciation rights at each reporting date and settlement date, and any change is recognized in profit or loss.

(19) Income tax

Income taxes include current and deferred income tax asset. Except those related to enterprise consolidation and items directly recognized as equities or other comprehensive income, Current tax and deferred income tax asset shall be recognized as gains and losses.

The Consolidated Company has determined that the top-up tax under Pillar Two of the global minimum tax regime falls within the scope of IAS 12 "Income Taxes." A temporary mandatory exception to deferred tax accounting has been applied for top-up tax, and any

~33~

Notes to the Consolidated Financial Statements (Continued)

actual top-up tax incurred is recognized as current income tax expense.

Current taxes include expected payable income taxes or receivable tax rebates of the annual taxation (losses) calculated according to the legal tax rate or substantial legal tax rate on the report day, and any unappropriated retained earnings plus 10% income tax recognized as tax expense in the shareholders meeting resolution year calculated according to the adjustments to the payable income taxes in the previous year and the provisions of income tax laws.

Deferred income tax is recognized for temporary differences between the carrying amounts of assets and liabilities at the reporting date and their tax bases. Deferred income tax is not recognized for the following temporary differences:

Temporary differences arising from the initial recognition of assets or liabilities in transactions that are not business combinations and, at the time of the transaction, (i) do not affect either accounting profit or taxable income (loss) and (ii) do not result in taxable and deductible temporary differences in equal amounts.
Those generated due to investment subsidiary company and joint equities and likely to not to be returned in the foreseeable future.
Original recognition of business reputation

Deferred income tax assets are recognized for unused tax losses and unused income tax credits in subsequent periods to the extent that it is probable that future taxable income will be available against which the temporary differences can be deducted. Deferred income tax assets are reassessed at each reporting date and reduced to the extent that it is not probable that the related income tax benefit will be realized, or to the extent that it becomes probable that sufficient taxable income will be available to allow the reversal of the original reduction.

Deferred income tax assets are measured according to the tax rate in the current period when the expected capital is realized or liabilities are liquidated and based on the legal tax rate or substantial legal tax rate on the report day.

Only when the Consolidated Company shall meet the following conditions at the same time, can the deferred income tax assets and deferred tax liabilities offset with each other:

Having the legal execution right to make the current income tax assets and the current tax liabilities offset with each other: and
Deferred income tax assets and deferred tax liabilities are related to one of the subjects of tax payment from which the same tax authority levies income tax;
(1) Same subject of tax payment; or
(2) Different subjects of tax payment, but all subjects intend to liquidate the current tax liabilities and assets based on net amount or at the same time realize assets and liquidate liabilities in each of the future periods when deferred income tax assets of major amounts are expected to be recovered and deferred tax liabilities expected to be liquidated.

~34~

Notes to the Consolidated Financial Statements (Continued)

(20) Business combination

Goodwill is measured at the fair value of the consideration transferred at the date of acquisition, including the amount of any non-controlling interest attributable to the acquiree, less the net amount of identifiable assets acquired and liabilities assumed (usually the fair value). If the resulting balance is negative, the Consolidated Company reassesses whether all assets acquired and liabilities assumed have been correctly identified before recognizing gain recognized in bargain purchase transaction in profit or loss.

Transaction costs associated with a business combination, except for those related to the issuance of debt or equity instruments, are recognized as expenses of the Consolidated Company immediately upon incurrence.

Non-controlling interest of the acquiree, which is a present ownership interest and the holder of which is entitled to a proportionate share of the net assets of the enterprise at the time of liquidation, is measured at fair value at the acquisition date or at the present ownership instrument's proportionate share of the recognized amount of the acquiree's identifiable net assets, at the option of the Consolidated Company, on a transaction by transaction basis. Other non-controlling interests are measured at their fair values on the acquisition date or on other bases as prescribed by IFRSs recognized by the FSC.

(21) Earnings per share

The Consolidated Company lists the basic and diluted earnings per share of holders of common stock equity of the Company. The basic earnings per share of the Consolidated Company shall be calculated with the gains and losses of the holders of common stock equity of the Company divided by the weighted mean of current outstanding common shares. Diluted earnings per share shall be calculated after adjusting the influence of all potential diluted common shares of the gains and losses of the holders of common stock equity of the Company and the weighted mean of current outstanding common shares. The potential diluted common shares of the Consolidated Company include convertible corporate bonds and stock options for employees.

(22) Segmental Information

An operating segment is a component of the Consolidated Company that engages in operating activities that may earn revenues and incur expenses, including revenues and expenses related to transactions with other components of the Consolidated Company. The operating results of all operating segments are reviewed regularly by the Consolidated Company's chief operating decision maker to make decisions about the allocation of resources to the segment and to evaluate its performance. Separate financial information is available for each operating segment.

V. Primary Sources of Major Accounting Judgment, Estimate and Assumption Uncertainties

When preparing the consolidated financial statements, management must make judgments

~35~

Notes to the Consolidated Financial Statements (Continued)

and estimates regarding the future (including climate-related risks and opportunities), which affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Management continuously reviews estimates and underlying assumptions, which are consistent with the Consolidated Company’s risk management practices and climate-related commitments. Changes in estimates are recognized prospectively in the period of the change and in any affected future periods.

The following assumptions and estimates are subject to significant risks of material adjustments to the carrying amounts of assets and liabilities in the next financial year, and the related information is as follows:

Inventory Evaluation

Since inventory must be measured at the lower of cost or net realizable value, the Consolidated Company estimates the reported amount of inventory due to normal wear and tear, obsolescence, or no market sale value daily and reduces the cost of inventory to net realizable value. The net realizable value of inventories may change significantly due to rapid changes in the industry and the introduction of new products. Please refer to Note VI (4) for the inventory assessment.

VI. Descriptions for Important Accounting Items

(1) Cash and cash equivalents

riptions for Important Accounting Items Cash and cash equivalents
Petty cash Checks and demand deposits Time deposits Cash and cash equivalents listed on the Statement of Cash Flows	Dec. 31, 2024 $ 3,656 7,235,401 11,419,825	Dec. 31, 2023 3,585 4,035,836 9,093,070 13,132,491
	$ 18,658,882

Disclosures of interest rate risks and sensitivity analysis on financial assets and liabilities of the Consolidated Company are seen in Note VI (27).

(2) Financial assets
Financial assets measured at FVTPL

Financial assets mandatorily measured at FVTPL: Current: Non-hedging derivative financial assets Embedded derivative instruments - redemption right Non-derivative financial assets	Dec. 31, 2024 $ 300	Dec. 31, 2023 187

~36~

Notes to the Consolidated Financial Statements (Continued)

Shares of listed ("OTC") companies Over-the-counter company stocks Emerging stock Subtotal Non-current: Non-hedging derivatives Embedded derivatives—right of redemption Non-derivative financial assets Private equity funds Overseas bonds Subtotal Total	17,716 53,290 28,633 7,307 144,218 - 190,867 60,784 - 2,205 59,964 24,711 170,044 - 230,008 26,916 $ 420,875 87,700

Please refer to Note VI (14) for the disclosure of embedded derivatives of the convertible bonds issued by the Consolidated Company.

Please refer to Note VI (27) for the amount recognized in profit or loss based on fair value remeasurement.

Financial assets measured at FVTOCI

Equity instruments measured at FVTOCI: Current: Domestic unlisted (or OTC) stock`－`AICP Technology Corporation Non-current: Domestic listed stock - Chailease Finance Co., Ltd. Domestic listed stock - Hotai Finance Co., Ltd. Domestic unlisted (or OTC) stock—SteadyBeat Technology Corporation Domestic unlisted (or OTC) stock—G-sau Co., Ltd Domestic unlisted (or OTC) stock—UPBEAT TECHNOLOGY Co., Ltd. Domestic unlisted (or OTC) stock—Phoenix Six Innovation Technology Venture Capital Corp. Total	Dec. 31, 2024 $ - 50,227 28,560 - 15 19,845 87,825	Dec. 31, 2023 - 50,125 28,710 1,129 15 - - 79,979
	$ 186,472

The Consolidated Company’s investments in these equity instruments are not held for trading purposes and have been designated as measured at FVTOCI.

The Consolidated Company recognized dividend income from equity instruments

~37~

Notes to the Consolidated Financial Statements (Continued)

measured at fair value through other comprehensive income, amounting to NT$3,206 thousand in 2024 and NT$2,298 thousand in 2023.

On December 18, 2024, February 20, 2023, and December 29, 2023, the Consolidated Company adjusted its investment portfolio for asset allocation considerations to diversify risk, selling specified investments in SteadyBeat Technology Corporation measured at fair value through other comprehensive income. The fair values at the time of disposal were NT$2,544 thousand, NT$4,889 thousand, and NT$2,544 thousand, respectively, with accumulated gains or losses on disposal of NT$0 thousand.

For information on market risks, refer to note 6(27).

As of December 31, 2024, and December 31, 2023, there were no financial assets of the Consolidated Company provided as collateral for pledges.

(3) Notes receivable, accounts receivable and other receivables

Notes receivable Accounts receivable Other receivables Allowance for losses	Dec. 31, 2024 $ 693,156 11,951,232 658,664 (6,384) $ 13,296,668	Dec. 31, 2023 305,564 9,312,888 509,221 (10,493) 10,117,180

For changes in the allowance for doubtful accounts related to notes receivable and accounts receivable as of December 31, 2024 and 2023, please refer to Note 6(27)1.(3) for details on impairment losses.

(4) Inventory

Merchandises Finished goods Work in process Raw materials Goods in transit	Dec. 31, 2024 $ 814,277 892,871 939,264 675,410 96,674 $ 3,418,496	Dec. 31, 2023 602,757 829,978 770,644 453,934 - 2,657,313

The Consolidated Company’s inventory as of December 31, 2024 and 2023 including allowance for inventory losses are NT$287,084 thousand and NT$445,445 thousand respectively.

The Consolidated Company recognized inventory-related expenses (gain) as follows:

Cost of goods sold Inventory (reversal gain)/write-down and obsolescence	2024 $ 14,476,339 (156,817)	2023 12,901,388 101,013

~38~

Notes to the Consolidated Financial Statements (Continued)

loss Total	$ 14,319,522	13,002,401

As of December 31, 2024 and 2023, the Consolidated Company’s inventories were not pledged as security.

(5) Investments accounted for using the equity method

The Consolidated Company's investments accounted for using the equity method as of the reporting date are listed as follows:

Associates	Dec. 31, 2024 $ 153,048		Dec. 31, 2023 81,730

1. Associates

On April 25, 2024, the Consolidated Company acquired a 24.83% equity interest in AionChip Technologies Co., Ltd. for NT$88,400 thousand in cash, thereby obtaining significant influence over the investee.

On July 24, 2023, the Consolidated Company acquired a 21.01% interest in I-See Vision Technology Inc. for NT$94,000 thousand in cash, thereby obtaining significant influence over the company.

The Consolidated Company's investments in associates that are individually not significant are accounted for using the equity method, and their aggregated financial information is as follows. This financial information is included in the Consolidated Company's consolidated financial reports:

Year-end aggregated carrying amount of equity in individually not significant associates Attributable to the Consolidated Company: Net loss for the period Other comprehensive income Total comprehensive income	Dec. 31, 2024 $ 153,048		Dec. 31, 2023 81,730 2023 (17,259) -
	2024
	$ (28,274) 36
	$ (28,238)		(17,259)

2. Guarantees

There are no pledges as guarantees for the Consolidated Company's investments accounted for using the equity method.

(6) Changes in ownership interests in subsidiaries

1. Acquisition of subsidiaries

On October 27, 2023, the Consolidated Company acquired a 31.65% stake in ZhongShan HuiXing Electronics Co., Ltd. (HuiXing Electronics) for NT$10,175 thousand in cash. HuiXing Electronics is a manufacturer of electronic connectors, and the acquisition is expected to increase the Consolidated Company's market share in China.

~39~

Notes to the Consolidated Financial Statements (Continued)

From the acquisition date to December 31, 2023, HuiXing Electronics contributed revenues and a net loss of NT$203,265 thousand and NT$9,071 thousand, respectively. Had this acquisition occurred on January 1, 2023, management estimates that the Consolidated Company's revenues and net loss would have increased by NT$481,612 thousand and NT$25,055 thousand, respectively. In determining these amounts, management assumed that the acquisition took place on January 1, 2023, and that the provisional fair value adjustments arising on the acquisition date were the same.

The costs associated with this acquisition transaction have been recognized under "Other Expenses" in the consolidated statement of comprehensive income.

The main categories of consideration transferred, assets acquired, and liabilities assumed, and the amount of goodwill recognized on the acquisition date are as follows:

(1) Net cash outflow from acquisition of subsidiaries

Consideration paid in cash Less: Cash and cash equivalents acquired	$ 10,175 64,251 $ (54,076)

(2) Identifiable assets acquired and liabilities assumed

(2) Identifiable assets acquired and liabilities assumed	(2) Identifiable assets acquired and liabilities assumed
The fair values of the identifiable assets acquired and liabilities assumed		at the date
of acquisition were as follows:
Current Assets
Cash and cash equivalents	$	64,251
Notes receivable, accounts receivable, and other receivables		185,511
Inventories		92,408
Other current assets		649
Non-current Assets
Property, plant, and equipment		95,464
Intangible assets		23
Other non-current assets		7,639
Current Liabilities
Notes payable, accounts payable, and other payables		(433,406)
Contract liabilities – Current		(3,696)
Other non-current liabilities – Other		(698)
Fair value of identifiable net assets	$	8,145
(3) Goodwill
Goodwill recognized from acquisitions is as follows:
Consideration transferred	$	10,175
Plus: Non-controlling interests (measured at the proportionate share of		5,567

~40~

Notes to the Consolidated Financial Statements (Continued)

the identifiable net assets) Less: Fair value of identifiable net assets Goodwill	(8,145)
	$ 7,597

2. Acquisition of additional equity interests in subsidiaries

On November 22, 2024, the Consolidated Company acquired additional equity interests in Lomites Co., Ltd. for NT$1,500 thousand in cash, increasing its equity interest in Lomites Co., Ltd. by 0.80%.

The effect of the change in the Consolidated Company's ownership interest in the subsidiaries listed above on the equity attributable to the owners of parent is as follows:

Carrying amount of non-controlling interests acquired Consideration paid to non-controlling interests Capital reserves - the difference between the actual acquisition or disposal price and the carrying amount of the subsidiary	2024	2023
	$ 1,978 - (1,500) -
	$ 478 -

Disposal of partial subsidiary shares without loss of control

In November 2023, the Consolidated Company disposed of 0.88% of its equity interest in Lomites Co., Ltd. for NT$1,100 thousand.

In March 2023, the Consolidated Company disposed of 0.01% of its equity interest in Lintes Technology Co., Ltd. for NT$900 thousand.

The changes in the Consolidated Company's ownership interests in the above subsidiaries had the following impact on the equity attributable to the parent company's shareholders:

Carrying amount of the disposed subsidiary shares Consideration received from non-controlling interests Capital reserve – difference between the actual price of acquisition or disposal of subsidiary shares and the carrying value	2024 $ - -	2023 (1,059) 2,000
	$ -	941

The Consolidated Company did not subscribe to the subsidiary's cash capital increase in proportion to its shareholding, which did not result in a loss of control.

On July 31, 2024, Compertum Microsystems Inc. issued 5,690 thousand new shares through a cash capital increase, raising a total of NT$56,900 thousand. The Consolidated Company subscribed for 2,264 thousand shares, totaling NT$22,645 thousand. As the subscription was not in proportion to its shareholding, the Consolidated Company’s equity interest in Compertum Microsystems Inc. decreased by 0.30%.

~41~

Notes to the Consolidated Financial Statements (Continued)

On April 30, 2024, Good News Medical Co., Ltd. issued 1,000 thousand new shares through a cash capital increase, raising a total of NT$10,000 thousand. The Consolidated Company subscribed for 319 thousand shares, totaling NT$3,192 thousand. As the subscription was not in proportion to its shareholding, the Consolidated Company’s equity interest in Good News Medical Co., Ltd. increased by 1.85%.

On March 19, 2024, Lintes Technology Co., Ltd. issued 3,000 thousand new shares through a cash capital increase, raising a total of NT$390,000 thousand. The Consolidated Company subscribed for 996 thousand shares, totaling NT$129,502 thousand. As the subscription was not in proportion to its shareholding, the Consolidated Company’s equity interest in Lintes Technology Co., Ltd. decreased by 0.75%.

On January 18, 2024, Compertum Microsystems Inc. issued 460 thousand new shares through a cash capital increase, raising a total of NT$4,600 thousand. As the Consolidated Company did not subscribe, its equity interest in Compertum Microsystems Inc. decreased by 1.21%.

In November 2023, ZhongShan HuiXing Electronics Co., Ltd. issued 385 thousand new shares, raising a total of NT$1,667 thousand. The Consolidated Company’s ownership in ZhongShan HuiXing Electronics Co., Ltd. decreased by 1.59% due to not subscribing to the new shares.

The effect of changes in the Consolidated Company's ownership interest in the subsidiaries listed above on the equity attributable to owners of parent was as follows:

Increase (decrease) in equity after issuance of new shares by subsidiaries Amount not subscribed in proportion to shareholding Capital reserves - recognition of changes in ownership interests in subsidiaries	2024 $ 199,956 (155,339)	2023 441 - 441
	$ 44,617

The exercise of the conversion right of the unsecured convertible corporate bonds of the subsidiary did not result in a loss of control.

In 2024, due to the exercise of conversion rights by bondholders, Lintes Technology Co., Ltd. issued 737 thousand new shares, resulting in a 0.54% decrease in the Consolidated Company’s equity interest in Lintes Technology Co., Ltd.

The subsidiary, Lintes Technology Co., Ltd., issued 1,644 thousand new shares in 2023 due to bondholders exercising their conversion rights, resulting in a 0.34% decrease in the Consolidated Company's equity in Lintes Technology Co., Ltd.

The changes in the Consolidated Company's ownership interests in the subsidiaries for 2024 and 2023 increased the equity attributable to the parent company's shareholders by NT$51,218 thousand and NT$15,266 thousand, respectively.

~42~

Notes to the Consolidated Financial Statements (Continued)

The subsidiary issued restricted employee stock options without resulting in loss of control.

The subsidiary, Lintes Technology Co., Ltd., issued 358 thousand restricted shares to employees on August 25, 2023, decreasing the Consolidated Company’s equity in Lintes Technology Co., Ltd. by 0.29%.

The change in the Consolidated Company’s ownership interests in the subsidiary for 2023 increased the equity attributable to the parent company's shareholders by NT$7,277 thousand.

Subsidiary employee stock options expired

In 2023, 5.5 thousand restricted shares held by departing employees of the subsidiary Lintes Technology Co., Ltd. expired, increasing the Consolidated Company’s equity in Lintes Technology Co., Ltd. by 0.01%.

The changes in the Consolidated Company’s ownership interests in the subsidiary for 2023 increased the equity attributable to the parent company's shareholders by NT$124 thousand.

(7) Subsidiaries with significant non-controlling interests

The non-controlling interests of subsidiaries that are material to the Consolidated Company are as follows:

Company are as follows:
Name of subsidiary Lintes Technology Co., Ltd.	Principal place of business/country of incorporation Taiwan	The percentage of ownership interests and voting interests in all non-controlling interests
		Dec. 31, 2024	Dec. 31, 2023
		51.68%	50.39%

The aggregate financial information of the above subsidiaries is as follows. The financial information has been prepared in accordance with International Financial Reporting Standards (IFRSs) approved by the Financial Supervisory Commission (FSC), and the financial information represents amounts before the elimination of intercompany transactions:

1. Comprehensive financial information of Lintes Technology Co., Ltd.:

Current assets Non-current assets Current liabilities Non-current liabilities Less: Non-controlling interests Equity attributable to owners of Lintes Technology	Dec. 31, 2024 $ 2,763,860 1,934,588 (589,152) (422,807) 73,644	Dec. 31, 2023 2,528,937 1,246,610 (584,325) (179,677) 119,813
	$ 3,612,845	2,891,732

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Notes to the Consolidated Financial Statements (Continued)

Co., Ltd.

Closing balance of non-controlling interests attributable to the Consolidated Company Operating revenue Net profit (loss) for the period Attributable to Owners of Lotes Co., Ltd. Attributable to Non-controlling Interests Other comprehensive income Attributable to Owners of Lotes Co., Ltd. Total of comprehensive income Attributable to Owners of Lotes Co., Ltd. Attributable to Non-controlling Interests Net income of the Consolidated Company for the period attributable to non-controlling interests Comprehensive income of the Consolidated Company for the period attributable to non-controlling interests Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Effect of exchange rate changes Increase in cash and cash equivalents Dividends paid to non-controlling interests	$ 1,867,075	1,457,195 2023 2,454,917 396,730 (21,250) (7,265) 389,465 (21,250) 198,978 195,353 2023 880,699 (278,397) (404,383) (8,455) 189,464 139,489
	2024 $ 2,243,509
	$ 343,161
	$ (46,169)
	$ 38,848
	$ 382,009
	$ (46,169)
	$ 175,712
	$ 196,004
	2024 $ 667,263 (944,775) 523,779 23,317
	$ 269,584
	$ 113,293

(8) Property, plant and equipment

The changes in the costs of the property, plant and equipment, losses on depreciation and impairment of the Consolidated Company are as follows:

Cost or deemed cost: Balance on Jan. 1, 2024 Addition Prepayment for equipment transferred in Completion of construction in progress and acceptance of equipment to be examined Disposal Reclassified to investment property	Land $ 836,910 - - - - (176,144)	Buildings 3,515,936 50,869 - 224,371 (3,811) -	Machinery equipment 4,748,536 231,515 49,281 520,848 (68,484) -	Other 7,044,242 333,106 3,914 1,446,114 (273,014) -	Outstanding work and equipment to be inspected 884,390 3,133,536 (10,939) (2,191,333) (5,662) -	Total 17,030,014 3,749,026 42,256 - (350,971) (176,144)

~44~

Notes to the Consolidated Financial Statements (Continued)

- - 8,846	- - 154,807	- (65,799) 183,457	- 65,799 225,595	(747) - 37,459
$ 669,612	3,942,172	5,599,354	8,845,756	1,846,704
$ 767,108 109,366 - - - - (1,276) (38,442) 154	2,523,944 200,235 320 - 909,717 - (4,121) (15,770) (98,389)	4,086,610 760,270 66,730 11,795 116,285 (150,332) - (27,679) (115,143)	6,264,473 191,175 14,632 74,162 896,741 (261,440) - (19,597) (115,904)	1,375,401 1,397,741 28,717 31,244 (1,922,743) - - - (25,970)
$ 836,910	3,515,936	4,748,536	7,044,242	884,390
$ - - - - -	592,886 163,174 (70) - 20,784	2,196,502 431,545 (57,706) (4,610) 72,084	5,110,712 1,448,339 (222,591) 4,615 157,883	- - - - -
$ -	776,774	2,637,815	6,498,958	-
$ - - - - - - -	459,743 144,709 - - (593) (387) (10,586)	1,953,192 368,306 1,234 (92,587) - (1,203) (32,440)	3,732,721 1,653,393 20,503 (210,936) - (6,846) (78,123)	- - - - - - -
$ -	592,886	2,196,502	5,110,712	-
$ 669,612	3,165,398	2,961,539	2,346,798	1,846,704
$ 836,910	2,923,050	2,552,034	1,933,530	884,390

As of December 31, 2024 and December 31, 2023, property, plant and equipment were used as collateral for loans and financing lines. Please refer to Note VIII for details.

(9) Right-of-use assets

The changes in the cost and depreciation of the right-of-use assets recognized by the consolidated company for leasing land, buildings, and other equipment are as follows:

Buildings Other Total

~45~

Notes to the Consolidated Financial Statements (Continued)

Cost of right-of-use assets: Balance on January 1, 2024 Addition Decrease Effect of change in exchange rate Balance on December 31, 2024 Balance on January 1, 2023 Addition Decrease Effect of change in exchange rate Balance on December 31, 2023 Depreciation of right-of-use assets: Balance on January 1, 2024 Depreciation for the period Decrease Effect of change in exchange rate Balance on December 31, 2024 Balance on January 1, 2023 Depreciation for the period Decrease Effect of change in exchange rate Balance on December 31, 2023 Book value: December 31, 2024 December 31, 2023	Land $ 739,775 840,110 - 51,599 - (59,913) 46,592 28,247	equipment 13,566 1,593,451 6,225 57,824 (5,302) (65,215) 236 75,075
	$ 786,367 860,043	14,725 1,661,135
	$ 666,442 604,356 113,434 396,528 - (146,166) (40,101) (14,608)	12,816 1,283,614 3,994 513,956 (3,120) (149,286) (124) (54,833)
	$ 739,775 840,110	13,566 1,593,451
	$ 50,299 260,194 17,917 144,198 - (58,795) 3,774 9,005	4,245 314,738 4,613 166,728 (3,362) (62,157) 121 12,900
	$ 71,990 354,602	5,617 432,209
	$ 37,066 260,333 15,133 143,278 - (139,032) (1,900) (4,385)	3,344 300,743 4,081 162,492 (3,120) (142,152) (60) (6,345)
	$ 50,299 260,194	4,245 314,738
	$ 714,377 505,441	9,108 1,228,926
	$ 689,476 579,916	9,321 1,278,713

~46~

Notes to the Consolidated Financial Statements (Continued)

(10) Investment property

The changes in the investment property of the Consolidated Company are as follows:

Self-owned assets Land Buildings Cost or deemed cost: Balance on January 1, 2024 $ 43,622 26,831 Transferred from property, plant and equipment 176,144 - Effect of change in exchange rate - - Balance on December 31, 2024 $ 219,766 26,831 Balance on January 1, 2023 $ 42,346 22,710 Additions - - Transferred from property, plant and equipment 1,276 4,121 Effect of change in exchange rate - - Balance on December 31, 2023$ 43,622 26,831 Losses on depreciation and impairment: Balance on January 1, 2024 $ - 4,272 Depreciation for the year - 883 Effect of change in exchange rate - - Balance on December 31, 2024$ - 5,155 Balance on January 1, 2023 $ - 2,832 Depreciation for the year - 847 Transferred from property, plant and equipment - 593 Impairment losses - - Effect of change in exchange rate - - Balance on December 31, 2023$ - 4,272 Book value: December 31, 2024 $ 219,766 21,676 December 31, 2023 $ 43,622 22,559 Fair value: December 31, 2024 December 31, 2023	Self-owned assets Land Buildings Cost or deemed cost: Balance on January 1, 2024 $ 43,622 26,831 Transferred from property, plant and equipment 176,144 - Effect of change in exchange rate - - Balance on December 31, 2024 $ 219,766 26,831 Balance on January 1, 2023 $ 42,346 22,710 Additions - - Transferred from property, plant and equipment 1,276 4,121 Effect of change in exchange rate - - Balance on December 31, 2023$ 43,622 26,831 Losses on depreciation and impairment: Balance on January 1, 2024 $ - 4,272 Depreciation for the year - 883 Effect of change in exchange rate - - Balance on December 31, 2024$ - 5,155 Balance on January 1, 2023 $ - 2,832 Depreciation for the year - 847 Transferred from property, plant and equipment - 593 Impairment losses - - Effect of change in exchange rate - - Balance on December 31, 2023$ - 4,272 Book value: December 31, 2024 $ 219,766 21,676 December 31, 2023 $ 43,622 22,559 Fair value: December 31, 2024 December 31, 2023	Right-of-use assets Land 289,528 - 10,104	Right-of-use assets Land 289,528 - 10,104	Total 359,981 176,144 10,104
$ 219,766	26,831	299,632		546,229
	22,710 - 4,121 -	37,731 256,488 - (4,691)		102,787 256,488 5,397 (4,691)
$ 43,622	26,831	289,528		359,981
$ - - -	4,272 883 -	10,712 4,177 396		14,984 5,060 396
$ -	5,155	15,285		20,440
	2,832 847 593 - -	2,138 3,886 - 4,863 (175)		4,970 4,733 593 4,863 (175)
$ -	4,272	10,712		14,984
$ 219,766	21,676	284,347		525,789
$ 43,622	22,559	278,816		344,997
			$ 633,832
			$ 410,733

As of December 31, 2024 and December 31, 2023, the Consolidated Company’s investment properties were not pledged as security.

(11) Intangible assets

The changes in the cost and amortization of the intangible assets of the Consolidated Company are as follows:

Cost: Balance on January 1, 2024 $	Computer Software 329,274	Other 8,222	Total 337,496

~47~

Notes to the Consolidated Financial Statements (Continued)

Acquired separately Transferred from equipment pending inspection Derecognition Effect of change in exchange rate Balance on December 31, 2024 Balance on January 1, 2023 Acquired separately Acquired through business combinations Derecognition Loss of control over a subsidiary Effect of change in exchange rate Balance on December 31, 2023 Losses on amortization and impairment: Balance on January 1, 2024 Amortization for the period Derecognition Effect of change in exchange rate Balance on December 31, 2024 Balance on January 1, 2023 Amortization for the period Impairment Acquired through consolidation Derecognition Loss of control over a subsidiary Effect of change in exchange rate Balance on December 31, 2023 Book value: Balance on December 31, 2024 Balance on December 31, 2023	126,469 747 (9,071) 7,127	- - - 144	126,469 747 (9,071) 7,271 462,912 323,573 29,856 7,622 (16,663) (3,421) (3,471) 337,496 187,383 64,142 (9,071) 3,094 245,548 141,504 57,955 7,597 2 (16,663) (1,485) (1,527) 187,383 217,364 150,113
	$ 454,546	8,366
	$ 322,973 29,856 - (16,663) (3,421) (3,471)	600 - 7,622 - - -
	$ 329,274	8,222
	$ 179,783 64,139 (9,071) 2,951	7,600 3 - 143
	$ 237,802	7,746
	$ 141,504 57,954 - - (16,663) (1,485) (1,527)	- 1 7,597 2 - - -
	$ 179,783	7,600
	$ 216,744	620
	$ 149,491	622

(12) Accounts payable and notes payable

ccounts payable and notes payable
Notes payable Accounts payable	Dec. 31, 2024	Dec. 31, 2023 5,209 1,822,819
	$ 6,761 2,834,862
	$ 2,841,623	1,828,028

(13) Short-term loans

The details, conditions and terms of the short-term loans of the Consolidated Company are as follows:

	Dec. 31, 2024		Amount $ 3,765,000
Currency NTD	Interest rate range	Maturity 2025
	1.88%~2.22% Dec. 31, 2023
			$ 3,985,039
			Amount $ 1,580,000
Currency NTD	Interest rate range	Maturity 2024
	1.80%~1.90%
			$ 3,403,056

For information on the Consolidated Company's exposure to interest rate and foreign currency risks, please refer to Note 6(27). Additionally, for details on the Consolidated Company's assets pledged as collateral for bank loans, refer to Note 8, and for the issuance of

~48~

Notes to the Consolidated Financial Statements (Continued)

guarantee notes due to bank loans and financing limits, refer to Note 9.

(14) Bonds payable

Information on the issuance of unsecured convertible bonds by the Consolidated Company is as follows:

Total amount of convertible bonds issued Accumulated converted amount Unamortized balance of discount on bonds payable Bonds payable at the end of the period Embedded derivative - right of redemption(reported as financial assets measured at FVTPL) Equity components - conversion rights (reported in capital reserves - stock options) Equity component - Conversion rights (listed under the changes in the net value of the subsidiary's equity recognized using the equity method and non-controlling interests) Right of redemption valuation benefit (loss) (reported in other gains and losses) Interest expense Conversion rights classified as equity	Dec. 31, 2024 $ 1,600,000 (1,300,000) (11,335)	Dec. 31, 2023 1,300,000 (333,200) (32,645) 934,155 2,392 114,556 16,078 2023 1,468 14,086
	$ 288,665
	$ 300
	$ -
	$ 59,063
	2024 $ (194)
	$ 12,034

The Company's second domestic unsecured convertible bonds
(1) Issuance Details

On March 9, 2023, the Company issued 10,000 zero percent coupon, three-year unsecured convertible bonds, which will be repaid at maturity in cash based on the face value of the bonds.

The conversion price was initially set at NT$862.1 per share at issuance. If any

adjustments to the conversion price occur according to the terms provided in the issuance related to the Company’s common shares, the conversion price is adjusted accordingly. As of December 31, 2023, the conversion price was NT$829.9. These bonds do not have reset clauses.

The right to redeem the bonds for cash at face value applies if one of the following conditions is met:

A. From the day after three months following the issuance until forty days before the

end of the issuance period, if the closing price of the Company's common stock on the Taiwan Stock Exchange exceeds the conversion price of the bonds by at least

~49~

Notes to the Consolidated Financial Statements (Continued)

30% for thirty consecutive trading days.

B. From the day after three months following the issuance until forty days before the end of the issuance period, if the outstanding balance of the bonds is less than 10% of the original total amount issued.
(2) Conversion Details

In 2024 and 2023, bondholders exercised conversion rights for 8,819 and 1,181 units, respectively, of the Company’s second three-year unsecured domestic convertible bonds. The total book value at the time of conversion amounted to NT$856,386 thousand and NT$113,861 thousand, respectively. The net increase in capital surplus resulting from the bond conversions was NT$843,563 thousand and NT$112,143 thousand, respectively. The amount of common stock issued due to the conversions was NT$10,626 thousand and NT$1,423 thousand, respectively. For details on the conversion of capital stock, please refer to Note 6(21).

As of July 23, 2024, all conversion rights for the Company’s second three-year unsecured domestic convertible bonds had been fully exercised.

Subsidiary – Lintes Technology Co., Ltd. Second Unsecured Domestic Convertible Bonds (1) Issuance Details

On January 18, 2024, Lintes Technology Co., Ltd. (a subsidiary) issued 3,000 units of zero-coupon second unsecured domestic convertible bonds with a maturity of three years. The bonds will be redeemed in full in cash at face value upon maturity.

The initial conversion price was set at NT$168 per share. If any adjustment events defined in the issuance terms occur in relation to the common shares of Lintes Technology Co., Ltd., the conversion price shall be adjusted in accordance with the formula specified in the bond terms. The adjusted conversion price as of December 31, 2024, was NT$162.9.

The bonds are subject to redemption by Lintes Technology Co., Ltd. at face value under either of the following conditions:

A. From the day after three months from the issuance date to forty days before the maturity date, if the closing price of Lintes Technology Co., Ltd.'s common stock on the Taiwan Stock Exchange exceeds the then-current conversion price by 30% or more for 30 consecutive trading days.
B. From the day after three months from the issuance date to forty days before the maturity date, if the outstanding balance of the bonds falls below 10% of the original total issuance amount.
The first domestic unsecured convertible corporate bonds of the subsidiary, Lintes Technology Co., Ltd.
(1) Issuance details

~50~

Notes to the Consolidated Financial Statements (Continued)

The subsidiary, Lintes Technology Co., Ltd., issued 3,000 domestic first unsecured convertible corporate bonds with a coupon rate of 0% on January 19, 2022. These bonds are due for a one-time cash repayment at maturity according to the bond par value.

The conversion price was set at NT$123.4 per share at issuance. When there are adjustments to the ordinary shares of the subsidiary, Lintes Technology Co., Ltd., that meet the terms of issuance, the conversion price is adjusted according to the formula specified in the terms. As of December 31, 2023, the conversion prices was NT$116.4. This bond does not have a reset clause.

If any of the following conditions regarding the redemption rights are met, the subsidiary, Lintes Technology Co., Ltd., will recover the outstanding bonds in cash at face value:

A. >From the day after three months after the issuance of the bond until forty days before the end of the issuance period, if the closing price of the common shares of the subsidiary, Lintes Technology Co., Ltd., on the Taiwan Stock Exchange, exceeds the current conversion price of the bond by 30% (inclusive) or more for thirty consecutive business days.
B. From the day after three months after the issuance of the bond until forty days before the end of the issuance period, if the outstanding balance of the bond is less than 10% of the original total issuance amount. (2) 轉換情形

As of December 31, 2024, bondholders of Lintes Technology Co., Ltd.’s first three-year unsecured domestic convertible bonds had exercised conversion rights to obtain a total of 2,526 thousand common shares of Lintes Technology Co., Ltd.

As of July 12, 2024, all conversion rights for the first issuance of convertible bonds had been fully exercised.

(15) Lease liabilities

The book values of the lease liabilities of the Consolidated Company are as follows:

Current Non-current	Dec. 31, 2024 $ 136,656	Dec. 31, 2023 129,085 487,452
	$ 413,844

For the maturity analysis, please refer to Note VI (27).

The amounts recognized in profit or loss are as follows:

Interest expense for lease liabilities Changes in lease payments not included in the measurement of lease liabilities Income from the sublease of right-of-use assets Expenses for short-term leases	2024 $ 33,870	2023 34,122 12,421 30,898 7,045
	$ 7,698
	$ 37,715
	$ 5,051

~51~

Notes to the Consolidated Financial Statements (Continued)

Cost of low-value leased assets (excluding low-value leases under short-term leases) $ 1,065 The amounts recognized in the Statement of Cash Flows are as follows: 2024 Total cash outflow from leases $ 188,771	328 2023 303,803

1. Lease of land, premises and buildings

The Consolidated Company leases land, premises and buildings for plant, office space and staff quarters. The lease term of the plant and office space is usually one to ten years, and the lease term of the staff quarters is three to eight years. Part of the lease includes an option to extend the lease at the end of the lease term. In cases where it is not reasonably determined to exercise an optional extension of lease term, the relevant benefits for the period covered by the option are not included in the lease liabilities.

The Consolidated Company is a sublease of right-of-use assets by business lease.

2. Other leases

The lease term for machinery and other equipment leased by the Consolidated Company ranges from two to six years. In addition, some lease contracts have terms of one year and are classified as short-term leases. The Consolidated Company chooses to apply the exemption of relevant right-of-use assets and lease liabilities.

(16) Refund liabilities - current

Refund liabilities - current	Dec. 31, 2024 $ 548,478	Dec. 31, 2023 420,182

The refund liabilities are mainly the prepayments to customers for the sales discount and defects of electronic components.

(17) Provision for liabilities

and defects of electronic components. ovision for liabilities
Provision for liabilities - non-current Employee benefits Decommissioning and restoration Total	Dec. 31, 2024 $ 38,516 34,581	Dec. 31, 2023 43,534 -
	$ 73,097	43,534

Employee benefits are estimated under the Consolidated Company’s defined benefit plan. Please refer to Note VI (19).

(18) Operating lease

The Consolidated Company leases its investment real estate, which is classified as an operating lease because almost all risks and rewards belonging to the ownership of the underlying asset have not been transferred. Please refer to Note VI (10) for details of the investment real estate.

~52~

Notes to the Consolidated Financial Statements (Continued)

The maturity analysis of lease payments is presented in the following table for the total undiscounted lease payments to be received after the reporting date:

Not more than 1 year 1-2 years 2-3 years Total undiscounted lease payment	Dec. 31, 2024 $ 1,369 900 75	Dec. 31, 2023 484 130 -
	$ 2,344	614

In year 2024 and 2023, the income tax generated in the investment property from rentals were NT$1,127 thousand and NT$555 thousand, respectively, and the direct operating expenses (including maintenance) incurred in the investment property from rentals were NT$753 thousand and NT$826 thousand, respectively.

(19) Employee benefits

1. Defined benefit plans

A reconciliation of the present value of the Company's defined benefit obligation to the fair value of plan assets is as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	Dec. 31, 2024 $ 79,665 (41,149)	Dec. 31, 2023 79,676 (36,142)
	$ 38,516	43,534

The Company's defined benefit plan is contributed to the Bank of Taiwan's Labor Retirement Reserve Fund. Retirement payments to each employee under the Labor Standards Act are based on the basis of the number of years of service and the average salary for the six months prior to retirement.

(1) Composition of plan assets

The Company's pension fund under the Labor Standards Act is managed by the Bureau of Labor Funds, Ministry of Labor (hereinafter referred to as the Bureau of Labor Funds). According to the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund", the minimum annual earnings to be distributed to the fund shall not be less than the earnings calculated based on the two-year time deposit interest rate of the local bank.

As of the date of this report, the balance of the Bank of Taiwan's Labor Retirement Reserve Fund was $41,149 thousand. For information on the use of the Labor Pension Fund assets, including the fund yield and fund asset allocation, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(2) Changes in the present value of the defined benefit obligation

The changes in the present value of the Company's defined benefit obligation for

~53~

Notes to the Consolidated Financial Statements (Continued)

fiscal 2024 and 2023 are as follows:

2024 Defined benefit obligation at January 1 $ 79,676 Current service cost and interest 1,241 Remeasurement of net defined benefit liability (asset) (1,252) Benefits planned to be paid - Defined benefit obligation at December 31 $ 79,665	2024 Defined benefit obligation at January 1 $ 79,676 Current service cost and interest 1,241 Remeasurement of net defined benefit liability (asset) (1,252) Benefits planned to be paid - Defined benefit obligation at December 31 $ 79,665	2023 78,993 1,485 2,583 (3,385)
	$ 79,665	79,676

(3) Changes in the fair value of plan assets

The changes in the fair value of the Company's defined benefit plan assets for fiscal 2024 and 2023 are as follows:

2024 Fair value of plan assets as of January 1 $ 36,142 Interest income 431 Remeasurement of net defined benefit liability (asset) 3,327 Amount contributed to the plan 1,249 Benefits paid under the plan - Fair value of plan assets at December 31 $ 41,149	2024 Fair value of plan assets as of January 1 $ 36,142 Interest income 431 Remeasurement of net defined benefit liability (asset) 3,327 Amount contributed to the plan 1,249 Benefits paid under the plan - Fair value of plan assets at December 31 $ 41,149	2023 37,583 486 291 1,167 (3,385)
	$ 41,149	36,142

(4) Expenses recognized in profit or loss

The expenses recognized in profit or loss in fiscal 2024 and 2023 were as follows:

Current service cost Net interest on net defined benefit liability Operating cost Promotion expense Administration expense R&D expense	2024 $ 295 515	2023 468 531
	$ 810	999
	$ 73 350 261 126	102 424 318 155
	$ 810	999

(5) Remeasurement of net defined benefit liability (asset) recognized as other comprehensive income

The remeasurements of net defined benefit liability (asset) recognized as other comprehensive income in fiscal 2024 and 2023 are as follows:

Accumulated balance as of January 1 Recognized in the current period Accumulated balance as of December 31	2024 $ (1,354) 4,579	2023 938 (2,292)
	$ 3,225	(1,354)

(6) Actuarial assumptions

~54~

Notes to the Consolidated Financial Statements (Continued)

The significant actuarial assumptions used to determine the present value of the Company's defined benefit obligation at the end of the financial reporting period are as follows:

follows:
Discount rate Future salary increases	Dec. 31, 2024 1.65% 2.00%	Dec. 31, 2023
		1.20% 2.00%

The Company anticipates making contributions to defined benefit plans amounting to NT$1,258 thousand and NT$1,185 thousand within one year following the reporting dates of 2024 and 2023, respectively.

The weighted-average duration of the defined benefit plan for 2024 is 8 years.

(7) Sensitivity analysis

The effect of changes in key actuarial assumptions on the present value of the defined benefit obligation as of December 31, 2024 and 2023 are as follows:

December 31, 2024 Discount rate Future salary increases December 31, 2023 Discount rate Future salary increases	Effect on the defined benefit obligation Increase of 0.25% Decrease of 0.25% $ (1,692) 1,748 1,738 (1,691) (1,835) 1,899 1,879 (1,825)
	Increase of 0.25% $ (1,692) 1,738 (1,835) 1,879

The sensitivity analysis above analyzes the effect of changes in a single assumption with other assumptions held constant. In practice, changes in many assumptions may be linked. The sensitivity analysis is consistent with the methodology used to calculate the net pension liability on the balance sheet.

The methodology and assumptions used in preparing the sensitivity analysis are the same as those used in the previous period.

2. Defined contribution plan

As to the defined contribution plan, the Consolidated Company shall contribute the retirement funds of employees to the individual accounts for labor retirement funds of the Bureau of Labor Insurance according to 6% of the monthly salaries of labors under the provisions of Labor Pension Act. Under this plan, after contributing fixed amount to the Bureau of Labor Insurance, the Consolidated Company will not assume the legal or constructive obligations of paying extra amount.

The pension expense under the defined contribution retirement funds of the Consolidated Company for year 2024 and 2023 were NT$17,233 thousand and NT$17,427

~55~

Notes to the Consolidated Financial Statements (Continued)

thousand respectively, which have been contributed to the Bureau of Labor Insurance.

In accordance with the pension insurance system established by the government of the People’s Republic of China, the subsidiaries in Mainland China make monthly contributions to employees’ pension insurance based on a certain percentage of their salaries and wages. The monthly pension plan is administered and arranged by the government, and the above-mentioned company has no further obligation other than to make monthly contributions. The related pension expense for 2024 and 2023 were NT$423,487 thousand and NT$357,922 thousand, respectively.

Details of employee benefit liabilities:

Dec. 31, 2024 Dec. 31, 2023 Liabilities for paid leave $ 34,018 30,013 ome tax 1. The details of the income tax expense of the Consolidated Company are as follows: 2024 2023 Income tax expense for the period Current income tax $ 2,268,626 1,682,633 Global minimum tax 15,886 - Tax on unappropriated retained earnings 90,620 174,484 Prior period current income tax adjustment (27,743) (6,561) 2,347,389 1,850,556 Deferred income tax expense Other deferred income tax expense (benefit) 121,677 (58,803) Change in income tax rate 19,241 - Adjustments from prior years (519) 1,694 140,399 (57,109) Income tax expense $ 2,487,788 1,793,447	Dec. 31, 2024	Dec. 31, 2023
	$ 34,018	30,013
	2,347,389	1,850,556
	121,677 19,241 (519)	(58,803) - 1,694
	140,399	(57,109)
	$ 2,487,788	1,793,447

(20) Income tax

A breakdown of the Consolidated Company's income tax expense (benefit) recognized under other comprehensive income is as follows: 2024 2023 Components of other comprehensive income that will not be reclassified to profit or loss: Remeasurements of defined benefit plan $ 916 (458) Components of other comprehensive income that will be reclassified to profit or loss: Exchange differences on translation $ 9,858 (1,794)	A breakdown of the Consolidated Company's income tax expense (benefit) recognized under other comprehensive income is as follows: 2024 2023 Components of other comprehensive income that will not be reclassified to profit or loss: Remeasurements of defined benefit plan $ 916 (458) Components of other comprehensive income that will be reclassified to profit or loss: Exchange differences on translation $ 9,858 (1,794)	A breakdown of the Consolidated Company's income tax expense (benefit) recognized under other comprehensive income is as follows: 2024 2023 Components of other comprehensive income that will not be reclassified to profit or loss: Remeasurements of defined benefit plan $ 916 (458) Components of other comprehensive income that will be reclassified to profit or loss: Exchange differences on translation $ 9,858 (1,794)
	$ 9,858	(1,794)

The relationship adjustment between the Consolidated Company’s income tax expense (benefit) and pre-tax net income for 2024 and 2023 is as follows:

~56~

Notes to the Consolidated Financial Statements (Continued)

Net profit before tax Income tax based on domestic tax rate Current income tax related to global minimum tax Adjustments based on local tax laws Change in income tax rate Changes in unrecognized temporary differences Adjustment of prior period income tax expense Additional tax levied on unappropriated retained earnings Others Total	2024 $ 11,868,825	2023 7,520,492
	3,660,733 15,886 (1,246,519) 19,241 (19,173) (28,262) 90,620 (4,738)	2,560,937 - (921,533) - (15,574) (4,867) 174,484 -
	$ 2,487,788	1,793,447

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax assets

The items not recognized as deferred tax assets of the Consolidated Company are as follows:

Inventory devaluation losses Tax losses Right-of-use assets	Dec. 31, 2024 $ 9,778 87,073 119	Dec. 31, 2023 - 52,747 -
	$ 96,970	52,747

In accordance with the Income Tax Act, losses for the previous ten years may be deducted from net income before income tax is assessed. These items are not recognized as deferred tax assets because it is not probable that the Consolidated Company will have sufficient taxable income in the future to utilize the temporary differences.

Domestic subsidiaries, according to the Income Tax Act and approved by the tax authorities, can deduct losses from the previous ten years from the current year's net income for tax assessment purposes. As of December 31, 2024, for taxable losses not yet recognized as deferred tax assets by the Consolidated Company, the deduction periods are as follows:

Year of loss 2019 2020 2021 2022 2023 2024	Losses not yet deducted $ 519 30,583 48,878 64,487 95,588 195,311	Last year to be deducted
		2029 2030 2031 2032 2033 2034

~57~

Notes to the Consolidated Financial Statements (Continued)

$ 435,366 (2) Deferred tax assets recognized Dec. 31, 2024 Inventory valuation and obsolescence losses $ 42,059 Undistributed pension costs 115 Loss on decline in value of fixed assets and idle assets 44 Refund liabilities 109,697 Unrealized exchange loss 55 Estimated payables 54,882 Remeasurement of defined benefit plans 7,970 Exchange differences on translation - Unrealized loss on financial assets 4,426 Lease liabilities 87,143 Expected credit losses on other receivables 49 Other - Deferred income tax assets $ 306,440 (3) Deferred income tax liabilities recognized Dec. 31, 2024 Unrealized exchange gain $ 72,182 Investment income recognized by the equity method 109,215 Gain recognized in bargain purchase transaction - Unrealized gains on financial assets - Right-of-use assets 81,005 Exchange differences on translation 7,122 Deferred income tax liabilities $ 269,524	$ 435,366 (2) Deferred tax assets recognized Dec. 31, 2024 Inventory valuation and obsolescence losses $ 42,059 Undistributed pension costs 115 Loss on decline in value of fixed assets and idle assets 44 Refund liabilities 109,697 Unrealized exchange loss 55 Estimated payables 54,882 Remeasurement of defined benefit plans 7,970 Exchange differences on translation - Unrealized loss on financial assets 4,426 Lease liabilities 87,143 Expected credit losses on other receivables 49 Other - Deferred income tax assets $ 306,440 (3) Deferred income tax liabilities recognized Dec. 31, 2024 Unrealized exchange gain $ 72,182 Investment income recognized by the equity method 109,215 Gain recognized in bargain purchase transaction - Unrealized gains on financial assets - Right-of-use assets 81,005 Exchange differences on translation 7,122 Deferred income tax liabilities $ 269,524	Dec. 31, 2023 66,024 203 44 84,037 49,316 45,562 8,886 2,736 - 148,902 - 6,361
	$ 306,440	412,071
	Dec. 31, 2024 $ 72,182 109,215 - - 81,005 7,122	Dec. 31, 2023 - 83,145 522 948 142,025 -
	$ 269,524	226,640

3. Income tax assessment

The profit-seeking enterprise income tax filings of the Company and its domestic subsidiaries—Jiayu Investment Co., Ltd., Ememe Robot Co., Ltd., Compertum Microsystems Inc., GOOD NEWS MEDICAL CO., LTD., Lomites Co., Ltd., Lintes Technology Co., Ltd., and Genie Precision Machine Co., Ltd.—have been approved by the tax authorities up to the fiscal year 2022.

4. Global Minimum Tax

The Consolidated Company recognizes supplementary taxes as current income tax when incurred, and temporary exemptions are applied to the related deferred income tax accounting for supplementary taxes, as detailed in Note (4).

~58~

Notes to the Consolidated Financial Statements (Continued)

The Consolidated Company’s operations in Germany and Vietnam are subject to the global minimum tax regime. Due to additional tax incentives obtained by the subsidiary operating in Vietnam, its effective tax rate falls below 15%, and additional current income tax is expected to be payable. As of December 31, 2024, the amount of current income tax recognized in relation to the top-up tax was NT$15,886 thousand.

However, due to the new tax law announced in Hong Kong where another subsidiary of the Consolidated Company operates, which had not yet come into effect as of December 31, 2024, there was no impact on current income tax.

(21) Capital and other equity

As of December 31, 2024 and 2023, the total authorized capital stock of the Company were all NT$1,550,000 thousand with a par value of $10 per share, and the actual amount issued were NT$1,125,347 and NT$1,113,298 thousand respectively.

In 2024, due to the exercise of conversion rights by convertible bondholders, the Company issued 1,063 thousand new shares. The Board of Directors approved the base date for issuing the new common shares on August 9, 2024, and legal registration procedures were completed on August 30, 2024.

In 2023, due to convertible bondholders exercising their conversion rights, the Company issued 142 thousand new shares. The issuance was recorded under bond conversion entitlement certificates at NT$1,423 thousand and legal registration procedures were completed in April 2024.

On November 10 and December 15, 2022, the board of directors resolved to issue 3,500 thousand new shares via a cash capital increase at NT$10 per share and an issue price of NT$660 per share, with April 7, 2023, set as the base date for the capital increase. This capital increase was approved by the Financial Supervisory Commission and legally registered on April 25, 2023.

1. Capital reserves

The components of the Company’s capital reserve are as follows:

gistered on April 25, 2023. . Capital reserves The components of the Company’s capital reserve	are as follows:
Premium of issued shares Convertible bond conversion premium Treasury stock transactions Change in the net value of the stock of subsidiaries and associates accounted for using the equity method Employee stock options Convertible bond stock options Expired subscription rights	Dec. 31, 2024 $ 6,951,216 2,225,010 423 613,166 40,330 - 805		Dec. 31, 2023 6,951,216 1,266,891 423 522,172 40,330 114,556 805 8,896,393
	$ 9,830,950

~59~

Notes to the Consolidated Financial Statements (Continued)

In accordance with the Companies Act, capital reserves are required to cover losses first before new shares or cash can be issued in proportion to the shareholders’ original shares. Realized capital reserves referred to in the preceding paragraph include premiums from the issuance of shares in excess of par value and proceeds from gifts received. In accordance with the Regulations Governing the Issuer’s Offerings and Issuance of Marketable Securities, the aggregate amount of capital reserves that may be capitalized each year shall not exceed 10% of the paid-in capital.

2. Retained earnings

In accordance with the Company's Articles of Incorporation, after the final settlement of each year’s earnings, the Company shall first complete tax contributions, make up for prior years’ deficits, and set aside 10% as a legal reserve, except when the legal reserve has reached the total capital level. Subsequently, according to the laws, the special reserve may be set aside or reversed; if there are any profits remaining, along with accumulated undistributed profits, the board of directors will prepare a profit distribution proposal for resolution at the shareholder's meeting. The distribution of shareholder dividends must not be less than 20% of the net amount of the year's after-tax profits after legally mandated profit reserves have been deducted.

The Company will take into account the environment and growth of the Company and the distribution of earnings should take into account the Company’s future capital expenditure budget and capital requirements, and pay cash dividends of not less than 10% of the dividends distributed in the current year.

(1) Legal reserve

If the Company has no deficit, it may, by resolution of the shareholders in general meeting, issue new shares or cash out of the legal reserve to the extent that such reserve exceeds 25% of the paid-in capital.

(2) Special reserve

When the Company distributes the distributable profit, the net decrease in other equity items occurring in the year is added to the undistributed profit of the current period along with other items beyond the net profit after tax. A special reserve is set aside from the undistributed profit of the previous period. For accumulated decrease in other equity items of previous periods, an equal amount of special reserve shall be set aside from the undistributed profit of previous periods and cannot be distributed. When there is a reversal of other decreases in equity, profits can be distributed for the reversed part.

(3) Earnings distribution

The Company resolved the profit distribution for the fiscal years 2023 and 2022 at the annual general shareholders' meetings held on June 13, 2024, and June 16, 2023,

~60~

Notes to the Consolidated Financial Statements (Continued)

respectively. The amounts distributed as dividends to shareholders are as follows:

Distributed to the holders of ordinary shares: Cash		2023	2023	Amount 2,898,275	2022	2022	Amount 2,803,575
	Payout ratio (NT$) $ 26.00				Payout ratio (NT$) 25.18

On March 10, 2025, the Company’s board of directors proposed the following 2024 earnings distribution:

Distributed to the holders of ordinary shares: Cash		2024	2024	Amount 4,670,190
	Payout ratio (NT$) $ 41.50

Information on the Company’s Board-approved and shareholder-approved earnings distribution proposals can be found on the Market Observation Post System (MOPS). 3. Other equity

Balance on January 1, 2024 Exchange differences arising from the translation of the net assets of foreign operations Unrealized losses from financial assets measured at FVTOCI Changes in ownership interests in subsidiaries Balance on December 31, 2024 Balance on January 1, 2023 Exchange differences arising from the translation of the net assets of foreign	Exchange differences on translation of foreign operations $ (769,007) 868,885 - -	Unrealized gain (loss) on financial assets measured at FVTOCI (15,814) - (3,163) -	Unearned compensation (6,162) - - 3,680	Total (790,983) 868,885 (3,163) 3,680
	$ 99,878	(18,977)	(2,482)	78,419
	$ (319,295) (449,712)	(19,758) -	- -	(339,053) (449,712)

~61~

Notes to the Consolidated Financial Statements (Continued)

operations
Unrealized losses from
financial assets measured at
FVTOCI		-	3,944	-	3,944
Changes in ownership
interests in subsidiaries		-	-	(6,162)	(6,162)
Balance on December 31,
2023	$	(769,007)	(15,814)	(6,162)	(790,983)

(22) Share-based payment

The Consolidated Company has the following share-based payment transactions:

Date of grant
Number of grants
Granted to
Vesting conditions
Fair value at the date of grant

Cash capital increase reserved for employee
stock options
Restricted Stock for
Employees

Lintes Technology
The Company
Lintes Technology

2024.03.19
2023.03.08
2023.08.25
263 thousand shares
350 thousand shares
358 thousand shares
Current employees of
the subsidiary
Current employees of
the Consolidated
Company
Eligible employees of
subsidiaries
Immediate vesting
Immediate vesting
From the grant date to
6, 18, and 30 months of
continuous
employment, and upon
achieving individual
performance metrics or
corporate operational
goals set by the
company:
$ 181.34
$ 161.00
$ 69.61

Cash capital increase reserved for employee subscription

The Company’s cost of employee compensation based on the shares generated from the cash capital increase retained for employee stock options was $52,309 thousand recognized in fiscal 2023.

In 2024, the subsidiary, Lintes Technology Co., Ltd., recognized a cost of $25,649 thousand for share-based employee compensation arising from the cash capital increase reserved for employees to subscribe for shares.

Restricted stock for employees

On June 15, 2023, the shareholder meeting of Lintes Technology Co., Ltd. resolved to issue restricted stock for employees, with August 25, 2023, as the base date for the capital increase (grant date). A total of 358 thousand shares were issued. The rights to the shares allocated to employees before fulfilling the vesting conditions are restricted, including prohibitions against selling, pledging, transferring, gifting to others, creating any encumbrance, or disposing of in any other manner. Other rights include, but are not limited to, entitlement to dividends, bonuses, statutory reserves, and capital reserves rights,

~62~

Notes to the Consolidated Financial Statements (Continued)

as well as rights to subscribe to new shares in a cash capital increase, identical to those of the company’s already issued ordinary shares.

If employees fail to meet the vesting conditions, the subsidiary Lintes Technology Co., Ltd. shall fully reclaim or repurchase the restricted shares allocated to the employees and cancel them.

The compensation costs recognized due to the cancellation and reclaiming of restricted employee shares amounted to NT$343 thousand and NT$255 thousand for 2024 and 2023, respectively.

(23) Earnings per share

The calculation of basic earnings per share and diluted earnings per share of the Consolidated Company is as follows:

Basic earnings per share: Net profit attributable to the Company in the year Weighted average shares outstanding (1,000 shares) Basic earnings per share Diluted earnings per share: Net profit attributable to the Company in the year Dilutive potential ordinary shares: Convertible bond Net income attributable to equity holders of the Company’s common stock (adjusted for the effect of dilutive potential common stock) Weighted average shares outstanding (1,000 shares) Dilutive potential ordinary shares: Employee bonuses Convertible bond Weighted average common shares outstanding (adjusted for the effect of dilutive potential common stock) Diluted earnings per share	2024 $ 9,276,952	2023 5,593,032 110,416 50.65 5,593,032 9,302 5,602,334 110,416 244 964 111,624 50.19
	112,082
	$ 82.77
	$ 9,276,952 4,917
	$ 9,281,869
	112,082 146 516
	112,744
	$ 82.33

(24) Revenue from contracts with customers
Please refer to Note XIV (3) and (4) for the disclosure of disaggregation of revenue for the major products and major regional markets.
Balance of contract

Contract liabilities	Dec. 31, 2024 $ 29,134	Dec. 31, 2023 30,617	Jan. 1, 2023 54,427

The beginning balances of contract liabilities as of January 1, 2024 and 2023 were recognized as income of NT$21,948 thousand dollars and NT$45,847 thousand dollars

~63~

Notes to the Consolidated Financial Statements (Continued)

respectively.

(25) Non-operating revenue/expense

1. Interest income

The breakdown of interest income of the Consolidated Company is as follows:

Bank deposits Others	2024 $ 555,287 1,961	2023 325,532 - 325,532
	$ 557,248

2. Other income

The details of other income of the Consolidated Company are as follows:

Dividend income Income from molding Income from compensation Income from rentals Income from subsidies Others	2024 $ 3,520 128,890 6,132 41,625 16,665 150,729	2023 4,003 150,533 1,451 34,175 68,668 153,457 412,287
	$ 347,561

3. Other gains and losses

The details of other gains and losses of the Consolidated Company are as follows:

Foreign exchange gain Net profit (loss) from financial assets measured at FVTPL: Derivatives: Embedded derivative Non-derivatives Stock Private equity funds Beneficiary certificate Overseas bonds Loss from the disposal of property, plant and equipment Lease modification interest Impairment losses on non-financial assets Other Total	2024	2023 20,150 1,468 9,547 (289) - - (35,805) 607 (37,320) (33,256)
	$ 910,021 (194) (6,213) 253 (3,641) (22,810) (20,899) 71 - (24,677)
	$ 831,911	(74,898)

4. Financial costs

~64~

Notes to the Consolidated Financial Statements (Continued)

The details of the financial costs of the Consolidated Company are as follows:

Bank loans Lease liabilities Conversion of corporate bonds Others	2024	2023 22,910 34,122 14,086 -
	$ 38,056 33,870 12,034 2,400
	$ 86,360	71,118

(26) Compensation to employees and directors

In accordance with the Company’s Articles of Incorporation, no less than 3% of the Company’s annual profits shall be appropriated to the Compensation of Employees and no more than 2% to the Compensation of Directors; however, if the Company has accumulated losses, it shall retain the amount of compensation in advance and appropriate the Compensation of Employees and Directors in proportion to the aforementioned. The former Compensation of employees to whom stock or cash is issued may include employees of a subordinate company who meet certain criteria.

In 2024 and 2023, the Company estimated employee compensation at NT$220,000 thousand and NT$202,700 thousand, respectively, and director compensation at NT$4,480 thousand for both years. The estimates were calculated based on the Company’s pre-tax net income before deducting employee and director compensation, multiplied by the allocation percentages stipulated in the Company’s Articles of Incorporation. These amounts were reported as operating costs or operating expenses and were fully paid in cash. If the actual distributed amounts in the following year differ from the estimates, the difference is accounted for as a change in accounting estimate and recognized in the profit or loss of the following year.

The amount of employee compensation approved by the Board of Directors for 2024 was consistent with the estimate disclosed in the 2024 consolidated financial statements. The amount of director compensation approved by the Board of Directors for 2024 differed by NT$1,020 thousand from the estimate, and the Company accounted for the difference as a change in estimate and recognized it in the 2025 profit or loss. The actual distribution of employee and director compensation for 2023 was consistent with the estimates disclosed in the 2023 consolidated financial statements. Relevant information can be found on the Market Observation Post System (MOPS).

(27) Information on financial instruments and fair value

1. Credit risk

(1) Credit risk exposure

The carrying amount of a financial asset represents the maximum amount of credit risk. The maximum amount of credit risk exposure was $32,121,938 thousand and

~65~

Notes to the Consolidated Financial Statements (Continued)

$23,246,086thousand as of December 31, 2024 and 2023 respectively.

(2) Concentration of credit risk

In order to reduce the credit risk of accounts receivable, the Consolidated Company continually evaluates the financial position of its customers and adjusts the terms of transactions between them if necessary. As of December 31, 2024 and 2023, the Consolidated Company both had 7 different customers with accounts receivable balances exceeding 5% of total accounts receivable for a single customer. The Consolidated Company periodically evaluates the probability of recovery of accounts receivable and presents Provisions, and the total loss is always within management’s expectations.

(3) Impairment loss

The Consolidated Company uses a simplified method of estimating expected credit losses for all of its notes and accounts receivable, which is to measure expected credit losses over the life of the notes and accounts receivable, and for this purpose, the notes and accounts receivable are grouped by common credit risk characteristics that represent the ability of customers to pay all amounts due under contractual terms and are included in forward-looking information. The expected credit losses on the Consolidated Company’s notes and accounts receivable are analyzed as follows:

Dec. 31, 2024

		Dec. 31, 2024
Not past due 1-60 days past due 61-120 days past due 121-180 days past due 181-270 days past due More than 271 days past due	Book value of notes and accounts receivable $ 12,368,199 249,652 23,669 240 1,988 640	Weighted average expected credit loss rate	Expected credit loss in the duration of provision 151 1,015 3,288 63 981 639
		0.00% 0.41% 13.89% 26.25% 49.35% 99.84%
	$ 12,644,388		6,137

Not past due 1-60 days past due 61-120 days past due 121-180 days past due 181-270 days past due		Dec. 31, 2023	Expected credit loss in the duration of provision 77 267 3,275 52 196
	Book value of notes and accounts receivable $ 9,310,187 279,125 24,870 236 392	Weighted average expected credit loss rate 0.00% 0.10% 13.17% 22.03% 50.00%

~66~

Notes to the Consolidated Financial Statements (Continued)

More than 271 days past due

3,642 99.18% $ 9,618,452	3,612 7,479

The changes in the provisions for notes and accounts receivable of the Consolidated Company are as follows:

Opening balance Acquired through business combinations Recognition of impairment losses (reversal gains) Write-offs for the period Foreign currency translation (losses) gains Closing balance	2024
	$ 6,137 7,479

2. Liquidity risk

The contracts of financial liabilities are sorted by their maturity dates as follows. The estimated interests are included, but the effect of net value agreement is excluded.

Book value $ 3,765,000 288,665 6,761 2,834,862 2,592,146 550,500	Cash flow from the contract 3,805,462 300,000 6,761 2,834,862 2,592,146 668,056	Within 6 months 993,185 - 6,761 2,834,862 2,592,146 84,338	6 12 months 2,812,277 - - - - 80,130	1-2years - 300,000 - - - 130,177	2-5years - - - - - 181,327
$ 10,037,934	10,207,287	6,511,292	2,892,407	430,177	181,327
$ 1,580,000 934,155 5,209 1,822,819 1,859,015 616,537	1,594,090 966,800 5,209 1,822,819 1,859,015 758,012	591,019 - 5,209 1,822,819 1,859,015 82,043	1,003,071 - - - - 78,590	- 84,900 - - - 138,985	- 881,900 - - - 227,871
$ 6,817,735	7,005,945	4,360,105	1,081,661	223,885	1,109,771

The Consolidated Company does not anticipate that the cash flows analyzed at maturity date

will alter significantly or that the actual amounts will vary significantly.

Market risk—exchange rate risk
(1) Exposure to exchange rate risk

The Consolidated Company’s financial assets and liabilities exposed to significant

foreign currency exchange rate risk are as follows:

	Financial assets Currency USD		Dec. 31, 2024
		$	Foreign currency (Note) 1,097,452

~67~

Notes to the Consolidated Financial Statements (Continued)

	RMB 472,014 4.4780 2,113,677 HKD 33 4.2220 141 JPY 135,660 0.2099 28,475 EUR 7,003 34.1400 239,066 INR 4 0.4791 2 VND 1,300 0.0013 2 Financial liabilities Currency USD $ 491,644 32.7850 16,118,560 RMB 159,698 4.4780 715,127 JPY 113,720 0.2099 23,870 EUR 858 34.1400 29,300 VND 27,598 0.0013 36 THB 123 0.9623 118

	Financial assets Currency USD RMB HKD JPY EUR INR VND Financial liabilities Currency USD RMB JPY EUR		Dec. 31, 2023
		$ $	Foreign currency (Note) 693,919 324,774 42 178,348 3,572 4 1,630 357,513 75,251 908 1,344

Note: The foreign currencies denominated in the non-functional currencies of the

consolidated entities include items that have been eliminated in the consolidated financial statements for inter-group transactions.

Due to the variety of functional currencies of the Consolidated Company, information on exchange gains and losses on monetary items is presented on a consolidated basis. Foreign currency exchange gains and losses (including realized and unrealized) amounted to a gain of $910,021 thousand and $20,150 thousand in fiscal 2024 and 2023, respectively.

(2) Sensitivity analysis

The Consolidated Company's exchange rate risk arises mainly from cash and cash equivalents denominated in foreign currencies, financial assets at FVTPL, accounts receivable and other receivables, short-term loans, accounts payable and other payables, which generate foreign currency exchange gains or losses upon translation. As of December 31, 2024 and 2023, when NTD depreciates or appreciates by 1% against the foreign currencies held by the Consolidated Company, with all other factors held

~68~

Notes to the Consolidated Financial Statements (Continued)

constant, net income after tax would increase or decrease by $171,795 thousand and $92,191 thousand for year 2024 and 2023, respectively. The same basis was used for the analysis of both periods.

Market risk—changes in interest rates

The interest rate risk of the Consolidated Company mainly comes from the bank deposit and loan of floating rate, so the interest rate change will cause the effective interest rate of bank deposit and loan to change accordingly, and the future cash flow will fluctuate.

The following sensitivity analysis is based on the risk of interest rate shocks reported by financial instruments on the date of coverage. For floating rate liabilities, the analysis is based on the assumption that the reported amount of daily outstanding liabilities is current throughout the year. The rate of change used by the Consolidated Company in reporting interest rates to the main management is 1% up or down, which represents the management’s assessment of the reasonable range of possible interest rate changes.

The Consolidated Company’ financial assets with variable interest rates as of December 31, 2024 and 2023 were NT$7,238,819 thousand and NT$4,086,086 thousand, respectively, and its financial liabilities were NT$35,000 thousand and NT$0 thousand, respectively. If interest rates had increased or decreased by 1%, the Consolidated Company’ net income after tax would have increased or decreased by NT$57,631 thousand and NT$32,689 thousand for year 2024 and 2023, respectively, with all other variables held constant.

Market risk—fair value
(1) Fair value and carrying amount

The management of the Consolidated Company believes that non-derivative short-term financial instruments should be estimated at their fair value based on their book value on the balance sheet, and that their book value should be a reasonable basis for the estimated fair value because of the near expiry date of such commodities. This method is applied to cash and equivalent cash, notes receivable and payable, accounts receivable and payable, other receivables and payables, deposit margin and borrowings.

In addition to the above financial instruments, the fair value and book value information of the remaining financial instruments, investment properties and corporate bonds payable of the Consolidated Company on the financial reporting date are as follows:

llows:
easured at fair value: Financial assets: Financial assets	Dec. 31, 2024 Book value Fairvalue $ 420,875 420,875	Dec. 31, 2023 Book value Fairvalue 87,700 87,700
	Book value $ 420,875	Book value 87,700

Measured at fair value:

~69~

Notes to the Consolidated Financial Statements (Continued)

measured at FVTPL
Financial assets
measured at FVTOCI		186,472	186,472	79,979	79,979
Not measured at fair value
Non-financial assets:
Investment property	$	525,789	633,832	344,997	410,733
Financial liabilities
Bonds payable		288,665	288,090	934,155	934,870

(2) The evaluation techniques used to determine fair value are as follows
A. When financial assets are quoted publicly in an active market, this market price is the fair value. When market prices are not available, estimates are made by reference to quoted counterparties or using valuation techniques. The estimates and assumptions used are consistent with the information used by market participants as estimates and assumptions in pricing financial instruments.
B. The fair value of investment properties is based on the evaluations of independent evaluators with recognized professional qualifications and recent experience in the area and type of investment properties evaluated.
(3) Fair value hierarchy
The following table analyzes the fair value hierarchy of financial instruments, investment properties and corporate bonds payable by valuation. Each fair value hierarchy is defined as follows:
A. Level 1: Publicly quoted prices (unadjusted) in an active market for identical assets or liabilities.
B. Level 2: Input parameters for an asset or liability are observable either directly (i.e., prices) or indirectly (i.e., derived from prices), except for publicly quoted prices included in Level 1.
C. Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable parameters).

(unobservable parameters).
December 31, 2024 Measured at fair value: Financial assets measured at FVTPL Financial assets measured at FVTOCI Not measured at fair value:	Level 1 $ 190,567 78,787	Level 2 - -	Level 3 230,308 107,685	Total 420,875 186,472
	$ 269,354	-	337,993	607,347

~70~

Notes to the Consolidated Financial Statements (Continued)

$ -	-	633,832	633,832
$ -	-	288,090	288,090
$ 53,290 78,835	7,307 -	27,103 1,144	87,700 79,979
$ 132,125	7,307	28,247	167,679
$ -	-	410,733	410,733
$ -	-	934,870	934,870

(4) Transfer between the Level 1 and the Level 2

The Consolidated Company does not have any transfers between 2024 and 2023.

(5) Statement of changes in financial assets (liabilities) classified as Level 3 at fair value

Unit: NT$1,000

				2024				Closing balance 230,308 107,685
$	Opening balance 27,103 1,144	Total profit	or loss Recognized in other comprehensi ve income - (3,415)	Incr	eas	e Transferred to level 3 - -	Decrease Sales, disposal or settlement (2,258) (2,544)
		Recognized in profit or loss (17,898) -		Issuance or purchase 223,361 112,500
$	28,247	(17,898)	(3,415)	335,861		-	(4,802)	337,993

~71~

Notes to the Consolidated Financial Statements (Continued)

			2023					Closing balance 27,103 1,144
$	Opening balance 163 4,595 4,758	Total profit or loss Recognized in profit or loss Recognized in other comprehensi ve income 1,179 - - 3,982 1,179 3,982	Incr	ea	s	e ransferred to level 3 - -	Decrease Sales, disposal or settlement (439) (7,433)
			Issuance or purchase 26,200 -		T

$			26,200			-	(7,872)	28,247

The above included gains and losses are reported in “other gains and losses” and “unrealized valuation gains (losses) on financial assets at FVTOCI”, which relate to assets still held as of December 31, 2024 and 2023 as follows:

Total gain or loss Recognized in profit (losses) (reported in “other gains and losses”) Recognized in other comprehensive income (reported in “unrealized valuation gains (losses) o financial assets at FVTOCI”)	2024 $ (17,890) n (4,830)	2023 1,025 (154)

(6) Quantitative information on fair value measurements of significant unobservable inputs (Level 3)

The Company’s fair value measurements classified as Level 3 mainly include financial assets measured at fair value through profit or loss—derivative financial instruments, private equity fund investments, overseas bonds, and financial assets measured at fair value through other comprehensive income—equity investments. For Level 3 financial assets measured at fair value through profit or loss—overseas bonds—the Company refers to counterparty quotations due to the absence of active market prices. However, since it is not practicable to reliably determine the relationship between significant unobservable inputs and fair value, quantitative information is not disclosed. The quantitative information for significant unobservable inputs used in the fair value measurements of other Level 3 instruments is summarized as follows:

Relationship between significant Valuation Significant unobservable unobservable inputs Item techniques inputs and fair value Financial assets Binary tree ‧Volatility as of December ‧The higher the measured at FVTPL method for pricing 31, 2024, and December volatility, the higher the fair value - Embedded convertible bond 31, 2023, were 43.22% derivatives - right of and 36.41%~41.78%, redemption respectively

Financial assets Net asset value ‧Net asset value measured at FVTPL approach - investment in private equity fund

‧Higher net asset value leads to higher fair value

~72~

Notes to the Consolidated Financial Statements (Continued)

Item Financial assets measured at FVTOCI - investment in equity instruments with no active market Financial assets measured at FVTOCI - investment in equity instruments with no active market	Valuation techniques Comparable Company Analysis Net asset value approach	Significant unobservable inputs ‧Price-to-NAV (Net Asset Value) ratio as of December 31, 2024, and December 31, 2023, were 2.30 and 1.63, respectively ‧Lack of market liquidity discount as of December 31, 2024, and December 31, 2023, were 15.60% and 15.70%, respectively ‧Net asset value	Relationship between significant unobservable inputs and fair value
			‧The higher the multiplier, the higher the fair value ‧The higher the discount for lack of marketability, the lower the fair value ‧The fair value is positively correlated

(7) Valuation process for fair value classified in Level 3

The Consolidated Company uses unobservable inputs for its fair value measurements and classifies its fair value in Level 3. The source of the input value for this level is the price provided by reference to counterparty quotations or market comparable companies’ net market value multipliers, etc., and the relevant quotations and valuation information are appropriately maintained. The results are subsequently reviewed to ensure consistency with the valuation sources and the reasonableness of the valuation results.

(8) Sensitivity analysis of fair value to reasonably possible alternative assumptions for Level 3 fair value measurements

The Company’s fair value measurements of financial instruments are reasonable, but the use of different valuation models or valuation parameters may result in different valuation results. For financial instruments classified in Level 3, if the valuation parameters are changed, the impact on the profit or loss or other comprehensive income for the period is as follows:

December 31, 2024 Financial assets measured at FVTPL Embedded derivatives - right of redemption Financial assets measured at FVTOCI	Input value	Upward or downward changes	Fair value changes reflected in profit or loss for the period	Fair value changes reflected in profit or loss for the period	Fair value changes reflected in other comprehensive income	Fair value changes reflected in other comprehensive income
			Favorable changes	Unfavorab le changes	Favorable changes	Unfavorab le changes
	Volatility Stock price	5% 10%	$ 120 300	(150) (60)	- -	- -

~73~

Notes to the Consolidated Financial Statements (Continued)

Investments in equity instruments Net market 1% - - 54 (48) with no active market value multiplier Lack of 1% - - 62 (56) marketability discount December 31, 2023 Financial assets measured at FVTPL Embedded derivatives - right of Volatility 5% 385 (1,013) - - redemption Stock price 10% 1,664 (1,055) - - Financial assets measured at FVTOCI

~74~

Notes to the Consolidated Financial Statements (Continued)

Investments in equity instruments Net market 7% - - 1 (2) with no active market value multiplier Lack of 7% - - 1 (2) marketability discount

Favorable and unfavorable changes in fair value represent fluctuations in fair value, which are calculated using valuation techniques based on various degrees of unobservable input parameters. If the fair value of a financial instrument is affected by more than one input, the above table reflects only the effect of changes in a single input and does not take into account the correlation and variability among the inputs.

(28) Financial risk management

The Consolidated Company is exposed to the following risks from the engagement of financial instruments:
(1) Credit risk
(2) Liquidity risk
(3) Market risk

This note presents the Consolidated Company’s risk information for each of these risks and the Consolidated Company’s objectives, policies and procedures for measuring and managing risk. For further quantitative disclosures, please refer to the respective notes to the consolidated financial statements.

2. Risk management structure

The Chairman has the sole responsibility for establishing and overseeing the Consolidated Company’s risk management structure and reports regularly to the Board on its operations.

The Consolidated Company’s risk management policy is designed to identify and analyze the risks faced by the Consolidated Company, to set appropriate risk limits and controls, and to monitor compliance with the risks and risk limits. The Consolidated Company develops a disciplined and constructive control environment through training, management guidelines and operating procedures to enable all employees to understand their roles and responsibilities.

The Audit Committee of the Consolidated Company oversees how management monitors compliance with the Consolidated Company’s risk management policies and procedures and reviews the appropriateness of the Consolidated Company’s risk management framework in relation to the risks it is exposed to. Internal auditors assist the Consolidated Company’s Audit Committee in its oversight role. These personnel conduct regular and exceptional reviews of risk management controls and procedures and report the results of these reviews to the Audit Committee.

3. Credit risk

Credit risk is the risk of financial loss arising from the failure of the Consolidated

~75~

Notes to the Consolidated Financial Statements (Continued)

Company’s customers or counterparties to fulfill their contractual obligations, mainly from the Consolidated Company’s accounts receivable from customers and investments in securities.

(1) Accounts receivable and other receivables

The Consolidated Company’s credit risk exposures are primarily depended on each customer’s individual circumstances. However, management also considers statistical information about the Consolidated Company’s customer base, including the risk of default in the customer’s industry and country, as these factors may affect credit risk. Approximately 78% and 73% of the Consolidated Company’s revenue for 2024 and 2023, respectively, were derived from sales to customers in Mainland China, which resulted in a significant concentration of regional credit risk.

The Consolidated Company has established a credit policy whereby the Consolidated Company is required to analyze the credit rating of each new customer individually before granting standard payment and delivery terms. Credit sales limits are established on an individual customer basis and are reviewed periodically; customers who do not meet the Group’s benchmark credit rating may only transact business with the Consolidated Company on a pre-collection basis.

In monitoring customers’ credit risk, customers are grouped according to their credit characteristics, including whether they are individuals or legal entities, age of accounts, maturity dates and pre-existing financial difficulties. The Consolidated Company maintains a Provisions account to reflect estimates of losses on accounts receivable and other receivables.

(2) Use of funds

The Consolidated Company’s investments in equity securities are placed through a centralized trading market and therefore have no significant credit transaction risk.

The credit risk of bank deposits, fixed income investments and other financial instruments is measured and reported to the Chairman of the Board of Directors by the Consolidated Company’s finance department. Since the Consolidated Company’s counterparties are creditworthy banks and financial institutions with investment grade or above, there are no significant performance concerns and therefore no significant credit risk.

4. Liquidity risk

Liquidity risk is the risk that the Consolidated Company will not be able to deliver cash or other financial assets to settle its financial liabilities and will not be able to meet its related obligations. The Consolidated Company’s approach to manage liquidity risk is to ensure that the Consolidated Company has sufficient liquidity to meet its liabilities as they fall due under normal and stressful circumstances and that there is no risk of unacceptable

~76~

Notes to the Consolidated Financial Statements (Continued)

loss or damage to the Consolidated Company’s reputation. In addition, the Consolidated Company has entered into unused borrowing lines totaling $3,985,039 thousands and $3,403,056 thousand, respectively as of December 31, 2024 and 2023 to cover unanticipated payments.

5. Market risk

Market risk is the risk that changes in market prices, such as changes in exchange rates, interest rates, and prices of equity instruments, will affect the Consolidated Company’s revenue or the value of financial instruments held by the Consolidated Company. The objective of market risk management is to manage the exposure to market risk to an acceptable level and to optimize investment returns.

The Consolidated Company engages in derivative transactions in order to manage market risk. All transactions are executed in accordance with the guidelines of the Board of Directors.

(1) Exchange rate risk

The Consolidated Company uses derivative transactions to hedge exchange rate risk due to its exposure to exchange rate risk arising from sales and purchase transactions that are not denominated in each Group Enterprise’s functional currency. Gains or losses on foreign currency assets and liabilities arising from changes in exchange rates are largely offset against natural hedges. Derivative transactions can help the Consolidated Company reduce, but still not completely eliminate, the impact of changes in foreign currency exchange rates.

The Consolidated Company periodically reviews individual foreign currency assets and liabilities for exposures and hedges against such exposures.

(2) Interest rate risk

The Consolidated Company’s interest rate risk arises primarily from variable rate bank deposits and short-term loans, and changes in interest rates will cause future cash flows to fluctuate as the effective interest rates on bank deposits and short-term loans change.

(3) Equity instrument price risk

If the price of equity securities changes at the reporting date (the same basis is used for both periods of analysis and other changes are assumed to be constant), the effect on the consolidated profit and loss items would be as follows:


Other comprehensiv e income after tax $ 1,865		Other comprehensi ve income after tax 800


$ (1,865)	(1,063)		(800)

~77~

Notes to the Consolidated Financial Statements (Continued)

(29) Capital management

It is the Board’s policy to maintain a sound capital base to maintain the confidence of investors, creditors and the market and to support the development of future operations. Capital consists of the Consolidated Company’s share capital, capital surplus and retained earnings. The Board of Directors controls the rate of return on capital and also controls the level of dividends on ordinary shares.

In order to maintain or adjust its capital structure, the Consolidated Company may adjust dividends paid to shareholders, reduce capital to refund shareholders, issue new shares or sell assets to settle liabilities.

The Consolidated Company controls its capital on a debt-to-capital ratio basis. The ratio is calculated by dividing net debt by total capital. Net debt is total liabilities less cash and cash equivalents as shown on the balance sheet. Total capital represents all components of equity (i.e., equity, capital surplus, retained earnings and other equity) plus net debt. The debt-to-capital ratio at the reporting date is as follows:

Total liabilities Less: Cash and cash equivalents Net liabilities Total equity Debt-to-capital ratio	Dec. 31, 2024 $ 12,251,177 (18,658,882)	Dec. 31, 2024 $ 12,251,177 (18,658,882)		Dec. 31, 2023 8,571,397 (13,132,491) (4,561,094) 29,381,002 (18.38)%
	$ (6,407,705)
	$ 37,959,872
		(20.31)%

(30) Investment and fund-raising activities for non-cash transactions

The information on non-cash investment and financing activities of the consolidated company for the 2024 and 2023 fiscal years is as follows:

For details on the conversion of convertible corporate bonds into common shares, please refer to Note VI (14).
For details on obtaining right-of-use assets through leasing, please refer to Note VI (9) and (15).

The adjustments of liabilities arising from financing activities of the consolidated company in 2024 and 2023 are as follows:

Short-term loans Bonds payable Lease liabilities Total liabilities from financing activities	Jan. 1, 2024 Cash flow $ 1,580,000 2,185,000 934,155 283,159 616,537 (174,957)	Non-cash changes Other Changes in exchange rate Changes in fair value Dec. 31, 2024 - - - 3,765,000 (928,649) - - 288,665 88,565 20,355 - 550,500 (840,084) 20,355 - 4,604,165
	$ 3,130,692 2,293,202

Non-cash changes Changes in Changes in Jan. 1, 2023 Cash flow Other exchange fair value Dec. 31,

~78~

Notes to the Consolidated Financial Statements (Continued)

Short-term loans Bonds payable Long-term loans (including long-term loans – current portion) Lease liabilities Total liabilities from financing activities	$ 1,906,775 (317,432) (10,000) 132,449 1,079,877 (278,171) 165,630 (165,630) - 370,661 (284,009) 540,337	rate 657 - - - - - (10,452) -	2023 1,580,000 934,155 - 616,537
	$ 2,575,515 312,806 252,166	(9,795) -	3,130,692

VII. Related Party Transactions

(1) Parent company and ultimate controller: The Company is the ultimate controller of the Consolidated Company and the Consolidated Company’s subsidiaries.
(2) Names and relationships of related parties

The related parties that had transactions with the Company during the period covered by these consolidated financial statements are as follows:

Name of related parties Relationship with the Company

LeRain Technology Co., Ltd. An associate of the Consolidated Company I-SEE VISION TECHNOLOGY INC. An associate of the Consolidated Company AionChip Technologies CO., LTD. An associate of the Consolidated Company Key management personnel Including the directors, managers and their families and spouses

Note: Transactions with related parties are disclosed only for the period with associates.

(3) Material transactions with the related parties
Amounts payable to related parties

The details of the Consolidated Company’s payables to related parties are as follows:

Related Party Dec. 31, 2024 Dec. 31, 2023 Accounting Item Category Accounts payable Associates $ 268 49

2. Purchases

The amount of purchases from related parties by the Consolidated Company is as follows:

Associate	2024 $ 2,099	2023 91

The purchase prices from related parties are not significantly different from those from general suppliers. The payment terms are three months, which are not significantly different from those of general suppliers.

3. Non-operating income

Associate

2024 2023 $ 147 56

~79~

Notes to the Consolidated Financial Statements (Continued)

Mainly consists of rental income from parking spaces and office premises, gains on disposal of equipment, and other items.

4. Operating expenses

Associate	2024 $ 111	2023 -

Primarily consists of design service fees and material costs.

5. Lease liabilities and right-of-use assets

The Consolidated Company leases a warehouse from key management personnel and signed a one-year lease agreement based on the rental rates of nearby areas, with a total contract value of NT$60 thousand. Interest expenses recognized for 2024 and 2023 were NT$1 thousand each, with lease liabilities as of December 31, 2024, and 2023 amounting to NT$0 thousand and NT$59 thousand, respectively.

(4) Major management personnel transactions

Related compensation includes:

Short-term employee benefits Post-employment benefits Share-based payment	2024 $ 107,797 1,393 1,648	2023 128,611 1,313 8,766
	$ 110,838	138,690

For details on share-based payments, please refer to note 6 (22).

VIII. Pledged Assets

The carrying value of the assets pledged as collateral by the Consolidated Company was as follows:

Name of asset Property, plant and equipment	Dec. 31, 2024 $ 199,391		Dec. 31, 2023 204,260

IX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

(1) Significant unrecognised contract commitments:

As of December 31, 2024, the Consolidated Company’s significant unrecognized contractual commitments were as follows:

	Unit: NT$1,000 in foreign currency	Unit: NT$1,000 in foreign currency
	Dec. 31, 2024
Contract amounts for major plant construction and property purchase
RMB	$	59,335
VND		138,485,538
NTD		415,864
Private equity fund contractual commitments

~80~

Notes to the Consolidated Financial Statements (Continued)

NTD 10,000

(2) The issuance of guarantee notes for bank loans, financing lines and derivative financial commodity transactions:

Guaranteed notes	Dec. 31, 2024 $ 3,657,696		Dec. 31, 2023 2,887,704

(3) Contingent liabilities:

On March 19, 2024, the Company received a civil complaint from the Intellectual Property and Commercial Court filed by Taiwan Ansys Technologies Co., seeking compensation of NT$26,250 thousand for alleged copyright infringement. The Company appointed legal counsel to handle the litigation, and the case was not expected to have a material impact on the Company’s financial position or business operations. As of December 31, 2024, the Company had received court notification that the plaintiff, Taiwan Ansys Technologies Co., had withdrawn the civil lawsuit.

X. Significant Disaster Loss: None.

XI. Significant Post-Period Events: None.

~81~

Notes to the Consolidated Financial Statements (Continued)

XII. Others

(1) Employee benefits, depreciation, depletion, and amortization functions are summarized below:

Function Nature	2024	2024	2024	2023	2023	2023
	Operation cost	Operation expense	Total	Operation cost	Operation expense	Total
Employee benefit expense Salary expenses Labor insurance and health insurance expenses Pension expenses Compensation of directors Other employee benefit expenses Depreciation expense Amortization expense	4,610,786 639,213 3,022 - 206,731 1,526,724 3,184	2,391,533 211,463 15,902 8,353 163,105 688,122 60,958	7,002,319 850,676 18,924 8,353 369,836 2,214,846 64,142	3,878,365 590,300 4,922 - 192,162 1,714,558 2,302	1,934,546 186,402 15,467 6,695 112,828 619,075 55,653	5,812,911 776,702 20,389 6,695 304,990 2,333,633 57,955

(2) Seasonality of operations:

The Company’s operations are subject to seasonal fluctuations due to the downstream computer industry.

XIII. Disclosing Information

(1) Major transaction details

In accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, the Company should disclose the following information about major transactions for year 2024:

1. Capital lending to others:

Unit: NT$1,000

No.	Lender	Borrower	Item	Relate d party	Max amount for the period	Closing balance	Actual amount	Interest rate	Nature of the lending (Note 1)	Transact ion amount	Purpose for lending	Allowance for bad debt	Collateral	Collateral	Lending limit for single party (Note 2)	Overall lending limit (Note 2)
													Name	Value
0 1 1	The Company Lintes Technology Co., Ltd. Lintes Technology Co., Ltd.	Lotes Guangzhou Co., Ltd. Genie Precision Machine Co., Ltd. LINTES TECHNO LOGY (THAILA ND) CO.,LTD	Other receivabl es - related parties Other receivabl es Other receivabl es	Yes Yes Yes	16,020 60,000 65,570	- 60,000 65,570	- 10,000 -	- 1.88% -	2 2 2	- - -	Working capital Working capital and loan repayment Working capital	- - -	None None None	- - -	7,194,003 361,285 361,285	14,388,007 1,445,138 1,445,138

Note 1: The following are the descriptions of the funds lending.

~82~

Notes to the Consolidated Financial Statements (Continued)

(1) Those who have business dealings.
(2) When there is a need for short-term financing.
Note 2: (1) The amount of the Company’s financing to a single party shall not exceed 20% of the Company’s net worth.
- The total amount of funds lent by the Company to others shall not exceed 40% of the Company’s net worth.
(2) Lintes Technology Co., Ltd. must not lend more than 10% of its net value to a single entity. Lintes Technology Co., Ltd.'s total amount of funds lent to others must not exceed 50% of its net value.
- a. For those with business transactions, the total amount of funds lent must not exceed 10% of the company's net value.
- b. For those needing short-term funding, the total amount of funds lent must not exceed 40% of the company's net value.

2. Endorsement:

Unit: NT$1,000/1,000 in foreign currency

No.	Endorseme nt provider	Endorsee	Endorsee	Ceiling on amount of endorsement for an enterprise (Note 2)	Balance of the ceiling endorsement fee in the period	Ending balance of the endorsement fee	Amount actually used	Amount of endorsemen t backed by assets	Percentage of the accumulated amount of endorsement in the net value of current financial statement(%)	Ceiling on amount of endorsement (Note 2)	Endorsement made by parent company to subsidiary	Endorsement made by subsidiary to parent company	Endorseme nt made to any party in Mainland China
		Company Name	Relatio nship (Note 1)
0 0 1 2	The Company `〞` Lotes Guangzhou Co., Ltd. Lintes Technology Co., Ltd.	Lotes Guangzhou Co., Ltd. LOTES VIET NAM COMPANY LIMITED REKA Technology Co., Ltd. Genie Precision Machine Co., Ltd.	2 2 1 2	7,194,003 7,194,003 2,670,160 1,806,423	164,175 (USD5,000) 163,925 (USD5,000) 98,505 (USD3,000) 130,000	163,925 (USD5,000) 163,925 (USD5,000) 98,355 (USD3,000) 130,000	- - - 35,000	- - - -	0.46% 0.46% 0.74% 3.60%	17,985,009 17,985,009 6,675,401 3,612,845	Y `〞` N Y	N `〞` `〞` `〞`	Y N `〞` `〞`

Note 1: There are seven types of relationship between the Endorser and Endorsee, which can be marked:

(1) Companies with business dealings.
(2) Companies in which the company directly and indirectly holds more than 50% of the voting rights.
(3) Companies that hold more than 50% of the voting rights in the company, both directly and indirectly.
(4) The Company owns, directly and indirectly, more than 90 percent of the voting shares.
(5) Company that is mutually insured under a contract between its peers or co-manufacturers based on the need to perform the work.
(6) Company in which all of the contributory shareholders have given their endorsement in proportion to their shareholding in the joint venture.
(7) Intercompany performance guarantees and guarantees for pre-sale contracts in accordance with the Consumer Protection Act.
Note 2: (1) The amount of the Company’s guarantee for a single corporate endorsement shall not exceed
20% of the net worth of the Company.

~83~

Notes to the Consolidated Financial Statements (Continued)

The aggregate amount of the Company’s guarantees under external endorsement shall not exceed 50% of the net worth of the Company.

(2) The amount of Lotes Guanghou Co., Ltd’s guarantee for a single corporate endorsement is limited to not more than 20% of the net worth of the company.

The aggregate amount of Lotes Guanghou Co., Ltd’s external endorsement guarantees is limited to

an amount not exceeding 50% of the Company’s net worth.

(3) The amount of Lintes Technology Co., Ltd.’s guarantee for a single corporate endorsement is limited to not more than 50% of the net worth of the company.

The aggregate amount of Lintes Technology Co., Ltd.’s external endorsement guarantees is

limited to an amount not exceeding 100% of the Company’s net worth.

Securities held at the end of fiscal period (excluding the equity of controlled by subsidiaries, affiliated companies, or joint company):

Unit: NT$ 1,000

Holding company	Category and name of security	Relationship with the issuer of the security	Accounting item	End of theperiod	End of theperiod	End of theperiod		Maximum shareholding or capitalization inthe period	Remark
				Shares	Book value	Shareholdi ng ratio	Fair value
Lotes Co., Ltd. `〞` `〞` `〞` `〞`	NEXUS CVC Partners Fund LP - private equity fund AyeVest Investment Company Limited A661 Government Bond of the Kingdom of Saudi Arabia V A715 UnitedHealth Group Incorporated Corporate Bond IX Verizon Communications Inc. Corporate Bond 11	None `〞` `〞` `〞` `〞`	Financial assets measured at FVTPL – non-current `〞` `〞` `〞` `〞`	- - 3,100,000 2,000,000 1,000,000	50,092 9,872 84,711 56,049 29,284	- - - - -	50,092 9,872 84,711 56,049 29,284	- - - - -

~84~

Notes to the Consolidated Financial Statements (Continued)

Holding company	Category and name of security	Relationship with the issuer of the security	Accounting item		End of the	period	period	Maximum shareholding or capitalization in the period	Remark
				Shares	Book value	Shareholding ratio	Fair value
Lotes Co., Ltd. `〞` `〞` Jiayou Investment Co., Ltd. `〞` `〞` `〞` `〞` Lintes Technology Co., Ltd. `〞` `〞` `〞` `〞` `〞`	G-sau Co., Ltd. Phoenix Six Innovation Technology Venture Capital Corp. UPBEAT TECHNOLOGY Co., Ltd. Grand-Tek Technology Co., Ltd. LIAN HONG ART CO., LTD. OTO PHOTONICS, INC. LUCEMITEK CO., LTD. AICP Technology Corporation Yuanta U.S. Treasury 20+ Year Bond ETF Yuanta US 20+ Year BBB Corporate Bond ETF Capital BofA Merrill Lynch 10+ Year US Banking Index ETF Chailease Holding Company Limited Class A Preferred Shares Hotai Finance Co., Ltd. Class A Preferred Shares UPBEAT TECHNOLOGY Co., Ltd.	None `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Financial assets measured at FVTOCI - non-current `〞` `〞` Financial assets measured at FVTPL - current `〞` `〞` `〞` Financial assets measured at FVTOCI - current Financial assets measured at FVTPL - current `〞` Financial assets measured at FVTPL - current Financial assets measured at FVTOCI - non-current `〞` `〞`	300,000 9,000,000 900,000 392,815 1,088,719 1,368,800 1,169,977 400,000 1,965,000 1,665,000 820,000 512,000 300,000 225,000	15 87,825 15,876 17,716 28,633 - - - 56,297 58,991 28,930 50,227 28,560 3,969	8.36 % 4.57 % 1.58 % 1.31 % 2.87 % 3.77 % 17.33 % 5.33 % - - - 0.34 % 0.60 % 0.39 %	15 87,825 15,876 17,716 28,633 - - - 56,297 58,991 28,930 50,227 28,560 3,969	10.38% 4.57% 1.88% 1.31% 2.87% 4.10% 17.33% 5.33% - - - 0.34% 0.60% 0.47%	Note Note

Note: All of them were recognized in losses.

The cumulative purchase or sale of the same securities amounted to at least NT$300

million or 20% of the paid-in capital:

Unit: NT$1,000/1,000 in foreign currency

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relations hip	Beginning Balance(Note 1)	Beginning Balance(Note 1)	Acquisition(Note 1)	Acquisition(Note 1)	Disposal(Note 1)	Disposal(Note 1)	Disposal(Note 1)	Disposal(Note 1)	Ending Balance(Note 1)	Ending Balance(Note 1)
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying Value	Gain/Los s on Disposal	Shares	Amount
Lotes Co., Ltd. L N C M Lintes Technology Co., Ltd. L T Y ( C	OTES VIET AM OMPANYLI ITED INTES ECHNOLOG THAILAND) O.,LTD	Investments accounted for using the equity method Investments accounted for using the equity method	LOTES VIET NAM COMPANYLI MITED LINTES TECHNOLOG Y (THAILAND) CO.,LTD	Note2 Note2	74,629,000 38,600,000	2,446,71 (USD74,629) 371,75 (THB322,000 USD1,888)	17,100,000 15,500,000	560,6 (USD17,100 147,2 (THB77,50 USD2,218	2 ) - 9 0 ) -	- -	- -	- -	91,729,000 54,100,000	3,007,335 (USD91,729) 519,054 (THB399,500 USD4,106)

Note 1: Translated into New Taiwan Dollars using the exchange rate on the balance sheet date of the current period.

Note 2: The subsidiary's issued securities were acquired through cash capital increase.

~85~

Notes to the Consolidated Financial Statements (Continued)

Acquisition of real property amounting to NT$300 million or 20% or more of the paid-in capital:

Unit: NT$ 1,000

==> picture [454 x 110] intentionally omitted <==

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

The company Name of asset Date of Amount of Payment Counterparty of Relation If the counterparty is a related party, the information of its Reference for Purpose of Other
which acquired the occurrence transaction condition transaction previous transfer shall be provided pricing the agreed
property (Note 2) (Note 2) Owner Relationship Date of Amount acquisition matters
with the issuer transfer and the
condition of
use
Lotes Co., Ltd. No. 368, Section 2024.12.09 452,680 45,268 KWANG MING None - - - - Based on Required for None
1, Yucheng SILK MILL nearby market business
Section, Nangang CO., LTD. prices and expansion and
District, Taipei expert capacity
City valuation planning
reports
Lintes Technology No. 1336, 2024.11.15 580,000 Note 1 ITEST HIGH None - - - - With reference For business "
Co., Ltd. Zhonggong TECH CORP. to market development
Section, and prices and and
Building No. 73, expert production
Zhongli District, valuation capacity
Taoyuan City reports planning
----- End of picture text -----

Note 1: As of December 31, 2024, the subsidiary had paid a cumulative amount of NT$580,000 thousand pursuant to the real estate purchase agreement, which is recognized as construction in progress (property pending transfer).

Disposal of real property amounting to NT$300 million or 20% or more of paid-in capital: None.
The amount of sales to or from related parties is at least $100 million or 20% of the paid-in capital:

Unit: NT$ 1,000

The company which purchases (sells) products	Name of transaction counterparty	Relationship	Transaction status	Transaction status	Transaction status	Transaction status	Situation and reason for the conditions of transaction to be different from the ordinary ones	Situation and reason for the conditions of transaction to be different from the ordinary ones	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Remark
			Purchases (sales)	Amount	Percentage in total goods purchased (sold)	Credit period	Unit price	Credit period	Balance	Percentage in the notes and accounts receivable (payable)
Xincheng Development Co., Ltd. `〞` REKA Technology Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Lotes Guangzhou Co., Ltd. `〞`	The Company Lotes Suzhou Co., Ltd. The Company Lotes Guangzhou Co., Ltd. `〞` Lotes Hengnan Co., Ltd. `〞` Lotes Zhongshan Co., Ltd. Guangzhou Leside Technology Co., Ltd. `〞` ZhongShan HuiXing Electronics Co., Ltd. LOTES VIET NAM COMPANY LIMITED Lotes Hengnan Co., Ltd. Zhongshan Dezhi Metal Surface Treatment Co., Ltd.	Subsidiary The surrogate parent company are the same company Subsidiary The surrogate parent company are the same company `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Net sales Net purchases Net sales Net purchases Net sales Net purchases Net sales Net purchases Net sales Net purchases Net sales Net purchases Net purchases Net purchases	1,431,309 1,513,700 10,988,671 6,897,904 930,724 1,206,159 216,744 7,179,745 1,573,110 196,621 267,622 196,876 310,076 440,919	93.21 % 98.57 % 68.01 % 43.54 % 5.76 % 7.61 % 1.34 % 45.32 % 9.74 % 1.24 % 1.66 % 1.24 % 6.16 % 8.76 %	EOM 90 days `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` EOM 120 days EOM 90 days `〞` `〞`	- - - - - - - - - - - - - -	No significant difference `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	258,256 (294,738) 4,967,844 (2,975,375) 472,247 (180,628) 57,191 (2,144,810) 197,198 (72,829) 204,500 (142,560) (150,800) (50,685)	86.43% (98.18)% 62.86% (40.95)% 5.98% (2.49)% 0.72% (29.52)% 2.50% (1.00)% 2.59% (1.96)% (9.96)% (3.35)%

~86~

Notes to the Consolidated Financial Statements (Continued)

`〞` `〞` `〞` `〞` Lintes Technology (Suzhou) Co., Ltd. Lotes Hengnan Co., Ltd. `〞` `〞` Guangzhou Leside Technology Co., Ltd. `〞` `〞` `〞` LOTES VIET NAM COMPANY LIMITED Lotes Zhongshan Co., Ltd. `〞` `〞` `〞` Lotes Suzhou Co., Ltd. `〞`	Lotes Zhongshan Co., Ltd. `〞` The Company Guangzhou Leside Technology Co., Ltd. Lintes Technology Co., Ltd. Zongka Technology (Shenzhen) Co., Ltd. Lotes Zhongshan Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. Lotes Zhongshan Co., Ltd. Zongka Technology (Shenzhen) Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. The Company `〞` `〞` ZhongShan HuiXing Electronics Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. Zhongshan Dezhi Metal Surface Treatment Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. ZhongShan HuiXing Electronics Co., Ltd.	`〞` `〞` Subsidiary The surrogate parent company are the same company `〞` The surrogate parent company are the same company `〞` `〞` `〞` `〞` `〞` Subsidiary `〞` `〞` The surrogate parent company are the same company `〞` `〞` `〞` `〞`	Net sales Net purchases Net sales Net sales Net sales Net sales Net sales Net sales Net purchases Net sales Net sales Net purchases Net sales Net sales Net sales Net sales Net purchases Net sales Net sales	129,288 855,954 215,673 105,070 1,327,189 280,919 434,127 257,705 735,615 1,142,059 1,318,747 797,530 569,206 431,785 224,881 102,098 140,966 112,131 114,917	1.57 % 17.00 % 2.61 % 1.27 % 94.71 % 14.79 % 22.86 % 13.57 % 22.77 % 33.70 % 38.92 % 24.68 % 73.78 % 4.46 % 2.32 % 1.05 % 2.16 % 5.75 % 5.90 %	`〞` `〞` `〞` `〞` `〞` EOM 90 days `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` EOM 120 days EOM 90 days `〞` `〞` EOM 120 days	- - - - - - - - - - - - - - - - - - -	`〞` `〞` `〞` `〞` `〞` No significant difference `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	48,741 (341,416) 214,655 42,512 759,358 124,547 101,532 108,984 (338,180) 399,564 527,482 (794,780) 286,624 429,806 180,716 41,470 (13,975) 46,015 87,245	1.20% (22.55)% 5.28% 1.05% 99.54% 17.18% 14.00% 15.03% (24.28)% 26.23% 34.63% (57.05)% 66.21% 11.83% 4.97% 1.14% (0.75)% 9.18% 17.41%

~87~

Notes to the Consolidated Financial Statements (Continued)

Amounts due from related parties amounting to at least NT$100 million or 20% of paid-in capital:

Unit: NT$ 1,000

Related party with accounts receivable by the Company	Name of transaction counterparty	Relationship	Balance of receivables from the related party	Turnover ratio	Past due receivables from the related party	Past due receivables from the related party	Amounts due from related parties recovered after the period	Allowance for losses
					Amount	Handling
Lotes Guangzhou Co., Ltd. `〞` `〞` Lotes Zhongshan Co., Ltd. `〞` `〞` `〞` `〞` Lotes Hengnan Co., Ltd. `〞` `〞` `〞` `〞` Guangzhou Leside Technology Co., Ltd. `〞` Lintes Technology (Suzhou) Co., Ltd. LOTES VIET NAM COMPANY LIMITED `〞` The Company Xincheng Development Co., Ltd. REKA Technology Co., Ltd. `〞` `〞` `〞` `〞` `〞` Lotes Suzhou Co., Ltd. Good Hope Investments Limited	REKA Technology Co., Ltd. Lotes Zhongshan Co., Ltd. The Company REKA Technology Co., Ltd. Lotes Guangzhou Co., Ltd. Guangzhou Leside Technology Co., Ltd. ZhongShan HuiXing Electronics Co., Ltd. The Company REKA Technology Co., Ltd. Lotes Zhongshan Co., Ltd. Lotes Guangzhou Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. Zongka Technology (Shenzhen) Co., Ltd. `〞` Shenzhen DeYi Automation Equipment Co., Ltd. Lintes Technology Co., Ltd. The Company REKA Technology Co., Ltd. Guangzhou Leside Technology Co., Ltd. The Company `〞` Lotes Guangzhou Co., Ltd. Lotes Zhongshan Co., Ltd. LOTES VIET NAM COMPANY LIMITED Guangzhou Leside Technology Co., Ltd. ZhongShan HuiXing Electronics Co., Ltd. Xincheng Development Co., Ltd. REKA Technology Co., Ltd.	The surrogate parent company are the same parent company `〞` Subsidiary The surrogate parent company are the same parent company `〞` `〞` `〞` Subsidiary The surrogate parent company are the same parent company `〞` `〞` `〞` `〞` `〞` `〞` `〞` Subsidiary The surrogate parent company are the same parent company Ultimate Parent Company Subsidiary `〞` The surrogate parent company are the same parent company `〞` `〞` `〞` `〞` `〞` `〞`	2,975,375 503,311 214,655 2,144,810 341,416 338,180 180,716 429,806 180,628 101,532 150,800 108,984 124,547 399,564 527,482 759,358 286,624 142,560 794,780 258,256 4,967,844 472,247 713,239 218,357 197,198 204,500 294,738 1,013,746	2.65 - 2.01 3.83 2.64 2.56 1.38 2.01 7.02 4.22 2.59 3.26 3.01 3.34 2.81 2.07 3.81 2.36 2.01 6.09 2.60 2.50 - - 3.37 1.47 5.70 -	- - - - - - - - - - - - - - - 312,033 - - - - - - - - - - - -	Ongoing collection	1,417,481 - 128,417 1,285,995 176,433 172,039 39,419 237,571 68,541 41,284 65,146 - 55,261 247,470 253,286 191,751 - - - 256,867 2,391,254 192,101 223,895 - 191,298 49,115 294,738 -	- - - - - - - - - - - - - - - - - - - - - - - - - - - -

Engagement in derivative transactions: None.

~88~

Notes to the Consolidated Financial Statements (Continued)

Business relationships and material transactions between parent and subsidiaries: Business relationships and significant intercompany transactions in 2024.

Unit: NT$ 1,000

				Unit: NT$1,000	Unit: NT$1,000	Unit: NT$1,000	Unit: NT$1,000
No.	Name	Transaction with	Relationship	Transaction in 2024
				Subject	Amount	Term	Operating revenue Accounting for total assets
0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 5 5 5 5 5 5 5 5 6 6 6 6 7 7 7 7	The Company `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Lotes Guangzhou Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Lotes Suzhou Co., Ltd. `〞` `〞` `〞` REKA Technology Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Lintes Technology (Suzhou) Co., Ltd. `〞` Lotes Zhongshan Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` Guangzhou Leside Technology Co., Ltd. `〞` `〞` Guangzhou Leside Technology Co., Ltd. Lotes Hengnan Co., Ltd. `〞` `〞` `〞`	Xincheng Development Co., Ltd. `〞` REKA Technology Co., Ltd. `〞` Lotes Guangzhou Co., Ltd. `〞` LOTES VIET NAM COMPANY LIMITED `〞` Guangzhou Leside Technology Co., Ltd. `〞` Lotes Zhongshan Co., Ltd. `〞` Lotes Hengnan Co., Ltd. `〞` Lotes Zhongshan Co., Ltd. `〞` `〞` `〞` Zhongshan Dezhi Metal Surface Treatment Co., Ltd. REKA Technology Co., Ltd. `〞` `〞` `〞` Guangzhou Leside Technology Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. ZhongShan HuiXing Electronics Co., Ltd. Xincheng Development Co., Ltd. `〞` Good Hope Investments Limited LOTES VIET NAM COMPANY LIMITED `〞` `〞` `〞` Lotes Hengnan Co., Ltd. `〞` `〞` ZhongShan HuiXing Electronics Co., Ltd. `〞` Lotes Zhongshan Co., Ltd. `〞` `〞` `〞` Guangzhou Leside Technology Co., Ltd. `〞` `〞` Lintes Technology Co., Ltd. `〞` Lotes Hengnan Co., Ltd. `〞` Zhongshan Dezhi Metal Surface Treatment Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. Guangzhou Leside Technology Co., Ltd. `〞` ZhongShan HuiXing Electronics Co., Ltd. `〞` Zongka Technology (Shenzhen) Co., Ltd. `〞` Shenzhen DeYi Automation Equipment Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. `〞` `〞` Zongka Technology (Shenzhen) Co., Ltd. `〞`	1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Accounts payable Net purchases Accounts payable Net purchases Accounts payable Net purchases Accounts payable Net purchases Accounts receivable Sales revenue Accounts payable Net purchases Accounts payable Net purchases Sales revenue Other receivables Accounts payable Net purchases Net purchases Accounts receivable Sales revenue Accounts payable Net purchases Sales revenue Sales revenue Sales revenue Accounts receivable Sales revenue Other payables Other receivables Sales of fixed asset Accounts payable Net purchases Sales revenue Accounts payable Net purchases Accounts receivable Sales revenue Other receivables Sales of fixed asset Accounts payable Net purchases Accounts receivable Sales revenue Net purchases Accounts receivable Sales revenue Accounts payable Net purchases Net purchases Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue	258,256 1,431,309 4,967,844 10,988,671 214,655 215,673 286,624 569,206 794,780 797,530 429,806 431,785 150,800 310,076 129,288 503,311 341,416 855,954 440,919 2,975,375 6,897,904 472,247 930,724 105,070 112,131 114,917 294,738 1,513,700 1,013,746 218,357 195,041 142,560 196,876 216,744 180,628 1,206,159 204,500 267,622 713,239 1,271,437 2,144,810 7,179,745 197,198 1,573,110 196,621 759,358 1,327,189 101,532 434,127 140,966 102,098 338,180 735,615 180,716 224,881 399,564 1,142,059 527,482 1,318,747 108,984 257,705 124,547 280,919	Same as general transactions `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Same as general transactions `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Same as general transactions `〞` `〞` `〞` `〞`	0.51% 4.76% 9.89% 36.52% 0.43% 0.72% 0.57% 1.89% 1.58% 2.65% 0.86% 1.44% 0.30% 1.03% 0.43% 1.00% 0.68% 2.84% 1.47% 5.93% 22.93% 0.94% 3.09% 0.35% 0.37% 0.38% 0.59% 5.03% 2.02% 0.43% 0.39% 0.28% 0.65% 0.72% 0.36% 4.01% 0.41% 0.89% 1.42% 2.53% 4.27% 23.86% 0.39% 5.23% 0.65% 1.50% 4.41% 0.20% 1.44% 0.47% 0.34% 0.67% 2.44% 0.36% 0.75% 0.80% 3.80% 1.05% 4.38% 0.22% 0.86% 0.25% 0.93%

Note 1: The number should be filled in as follows:

0 refer to parent company
Subsidiaries are numbered by company, starting with the Arabic numeral 1.
Note 2: The type of relationship with the counterparty is indicated below:
Parent company to subsidiaries
Subsidiaries to parent company
Subsidiaries to subsidiaries

~89~

Notes to the Consolidated Financial Statements (Continued)

(2) Information on Reinvestment Business:

Information on the Company’s investees in 2024 was as follows (excluding investees in China):

China):	China):	China):	China):
				Unit: NT$1,000
Name of the company investing	Name of investee company	Location	Main business	Initial investment amount (Note 1)		Shares held at the end of the fiscal period			Maximum shareholding or capitalization in the period	Gain/loss of investee company in the fiscal period	Gain/loss in the investment recognized in the fiscal period	Remarks
				End of this period	End of the previous year	Shares	Percentage	Book value
The Company `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Lotes Investment Ltd. Good Hope Investments Limited " Guansi Development Co., Ltd. Zhaxi Investment Co., Ltd. Jiayu Investment Co., Ltd. `〞` `〞` `〞` Good News Medical Co., Ltd. Lintes Technology Co., Ltd. `〞` `〞` `〞` `〞` `〞` Jilong Co., Ltd.	Lotes Investment Ltd. Good Hope Investments Limited Guansi Development Co., Ltd. Zhaxi Investment Co., Ltd. Jiayu Investment Co., Ltd. Lotes USA, Inc. LOTES EU GmbH Lerain Technology Co., Ltd. Lomites Co., Ltd. I-See Vision Technology Inc. AionChip Technologies CO., LTD. LOTES VIET NAM COMPANY LIMITED Loteson International Investments Limited Xincheng Development Co., Ltd. REKA Technology Co., Ltd. Jae You Co., Ltd. Wangden Investments Limited Ememe Robot Co., Ltd. Compertum Microsystems Inc. Good News Medical Co., Ltd. Lintes Technology Co., Ltd. FELICITY NEWS LIMITED Genie Precision Machine Co., Ltd. Compertum Microsystems Inc. Lerain Technology Co., Ltd. AionChip Technologies CO., LTD. Jilong Co., Ltd. LINTES TECHNOLOGY (THAILAND) CO., LTD. Rihui Co., Ltd.	Samoa `〞` `〞` Anguilla Taiwan America Germany Taiwan " " Taiwan Vietnam Hong Kong Samoa Hong Kong Hong Kong `〞` Taiwan `〞` `〞` `〞` British Virgin Islands Taiwan `〞` " `〞` Samoa Thailand Samoa	Holding and investment `〞` `〞` `〞` General investment Market development Market development Design, test and sale of chips Manufacturing and trading of mechanical equipment and electronic parts Design, research and development, and manufacturing services for contact lenses Design, test and sale of chips Manufacturing of connectors for the information industry, communications industry, and consumer electronics industry Holding and investment Sales of connectors for the information industry, communications industry, and consumer electronics industry Sales of connectors for the information industry, communications industry, and consumer electronics industry Holding and investment Holding and reinvestment Manufacturing of electrical and audio-visual electronic products Manufacturing of electronic components Manufacturing and sales of machinery and equipment, electronic components, and optical instruments Manufacturing of electronic parts and components, other electrical and electronic machinery and equipment Holding and reinvestment Manufacturing and sales of optical molds Manufacturing of electronic components Design, test and sale of chips Design, test and sale of chips Holding and reinvestment Manufacturing, processing, and trading of wires, cables, and electronic components Holding and reinvestment	854,049 13,156 656,239 16,393 865,000 81,963 3,414 47,321 124,800 94,000 95,727 3,007,335 854,049 3,279 3,321 656,249 16,393 69,600 77,852 9,552 746,361 1,082 164,833 25,938 5,471 11,764 162,286 519,054 162,286	854,049 13,156 656,239 16,393 690,000 81,963 3,414 47,321 123,800 94,000 - 2,446,711 854,049 3,279 3,321 656,249 16,393 69,600 60,866 6,360 616,859 1,082 164,833 20,279 5,471 - 162,286 371,759 162,286	26,050,000 401,281 20,016,426 500,000 94,300,000 2,500,000 100,000 4,732,059 12,480,000 4,700,000 5,264,980 91,729,000 26,050,000 100,000 101,281 20,016,756 500,000 6,960,000 6,029,960 955,200 32,071,309 33,000 14,671,000 2,009,070 547,059 647,000 4,950,000 54,100,000 4,950,000	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 15.74% 99.84% 21.01% 26.32% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 94.37% 30.48% 27.29% 48.32% 100.00% 60.00% 10.16% 1.82% 3.24% 100.00% 100.00% 100.00%	12,901,369 2,338,976 5,645,231 256,566 1,811,958 98,832 5,046 34,259 60,034 27,211 78,233 2,819,292 13,350,821 1,503 1,323,699 5,692,582 256,567 316 11,689 3,118 1,745,770 1,009 110,798 3,894 3,961 9,384 757,472 454,882 757,472	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 15.74% 99.84% 21.01% 26.32% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 94.37% 30.48% 27.29% 49.60% 100.00% 60.00% 10.16% 1.82% 3.24% 100.00% 100.00% 100.00%	2,671,039 161,787 1,146,295 47,594 150,961 4,246 285 22,858 (23,896) (94,816) (60,831) 267,491 2,671,039 54 161,733 1,146,295 47,594 9,007 (53,543) (6,242) 343,161 (64) (114,900) (53,543) 22,858 (60,831) 169,034 (59,074) 169,034	2,577,785 161,787 1,134,520 47,594 151,288 4,246 285 3,597 (23,852) (20,491) (10,462) 210,852 2,671,039 54 161,733 1,146,295 47,594 8,501 (16,413) (1,681) 167,449 (64) (69,325) (5,469) 416 (1,334) 189,424 (59,074) 189,424	Note 2 Note 2 Note 2 Note 2 Note 2 Note 2

Note 1: The original investment amount was translated into New Taiwan Dollars using the exchange rate on the balance sheet date of the current period.

Note 2: The investment income or loss recognized in the current period includes adjustments for unrealized gains or losses from intercompany transactions.

~90~

Notes to the Consolidated Financial Statements (Continued)

(3) Investment in China:

Names of investee companies in Mainland China, major business activities, and other related information:

Unit: NT$ 1,000

Name of investee company in Mainland China	Main business	Paid-in capital (Note 3)	Investme nt method (Note 1)	Accumulated investment amount remitted from Taiwan at the beginning of the fiscal period (Note 3)	Amount remitted or recovered	Amount remitted or recovered	Accumulated investment amount remitted from Taiwan at the end of the fiscal period (Note 3)	Gain/loss of investee company in the fiscalperiod	Shareholdin g ratio	Gain/loss in investment recognized in the fiscal period (Note 2)	Carrying amount of investment at the end of the fiscal period	Investment income remitted back to Taiwan by the end of the fiscalperiod	Amount remitted or recovered
					Remitted	Recovered
Lotes Guangzhou Co., Ltd. Lotes Suzhou Co., Ltd. Zongka Technology (Shenzhen) Co., Ltd. Lotes Hengnan Co., Ltd. Lintes Technology (Suzhou) Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. Lotes Zhongshan Co., Ltd. Zhongshan Dezhi Metal Surface Treatment Co., Ltd. Hengnan Deyi Property Development Co., Ltd. Zhongshan Jinmeida Metal Surface Treatment Co., Ltd. Guangzhou Dezhi Technology Co., Ltd. Zhongshan DeZhi Real Estate Development Co., Ltd. Guangzhou Leside Technology Co., Ltd. Chongqing Fuxinrui Electronic Technology Co., Ltd. ZhongShan HuiXing Electronics Co., Ltd. Ningbo Huili Electronic Technology Co., Ltd. Guangzhou Jiashimei Trading Co., Ltd.	Manufacturing of connectors for the information industry, communications industry, and consumer electronics industry Manufacturing of connectors for the information industry, communications industry, and consumer electronics industry R&D of electronics, import and export of raw materials of plastic products and plastic products Manufacturing of connectors for the information industry, communications industry, and consumer electronics industry Development and production of the measurement instruments for optical communication, optical transceivers of 10GB/s or above and relevant technical support Manufacturing of robotic arms, automation equipment and relevant components Manufacturing connectors for telecommunication industry and for consumer electronics industry, and manufacturing of robotic arms, automation equipment and relevant components Surface treatment of metal products and plastic products Development of real estate, lease of premises, landscape design and interior decorating Surface treatment of metal products and plastic products Manufacturing of computers, communication, and other electronic equipment Real estate development, house rental, landscape design, and interior decoration Research, testing and development R&D and sales of electronic components, automobile components and accessories, computers and accessories, development of molds and the import and export of goods and technologies Manufacturing of connectors for the information technology, communication industries, and consumer electronics Manufacturing of connectors for the information technology, communication industries, and consumer electronics Engaging in the manufacture and sale of audio equipment, Class II medical devices, mechanical equipment, electronic components, and optical instruments	875,360 655,347 16,393 1,305,337 162,286 111,950 3,134,600 273,158 102,994 77,380 2,239 306,743 21,047 7,165 34,481 4,478 1,082	(2) (2) (2) (3) (2) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (2)	836,018 655,347 16,393 - 162,286 - - - - - - - - - - - 1,082	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	836,018 655,347 16,393 - 162,286 - - - - - - - - - - - 1,082	2,671,039 1,146,295 47,594 446,883 175,392 33,711 1,380,018 36,387 494 (801) (53) (51) 123,293 12,029 7,444 (1,778) (64)	100.00% 100.00% 100.00% 100.00% 48.32% 100.00% 100.00% 100.00% 100.00% -% 100.00% 100.00% 100.00% 51.00% 30.06% 51.00% 100.00%	100.00% 100.00% 100.00% 100.00% 49.60% 100.00% 100.00% 100.00% 100.00% -% 100.00% 100.00% 100.00% 51.00% 30.06% 51.00% 100.00%	2,577,756B 1,134,519B 47,594B 418,183B 94,603C 33,711B 1,380,018B 36,387B (41)B (3,636)B (53)B (3,694)B 123,293B 6,135B 2,238B (907)B (64)B	12,901,308 5,645,187 256,566 2,166,139 406,144 208,563 6,874,179 347,770 102,043 130,123 2,145 294,565 321,224 12,488 2,484 182 1,009	- - - - - - - - - - - - - - - - -

Note 1: There are six types of investments:

(1) Investment in Chinese Corporation via Third Region Remittance.

(2) Establishment of a company to reinvest in a continental company through a third regional investment.

(3) Reinvest in Chinese companies by re-investing in existing companies in third regions.

(4) Direct Investment

(5) Others.

~91~

Notes to the Consolidated Financial Statements (Continued)

(6) N/A.

Note 2: (1) The investment gain or loss recognized in the current period has been reconciled with the unrealized gain or loss from intercompany transactions.
(2) Basis of recognition of investment income and loss is divided into the following four categories, which should be noted:
A. Financial statements audited by an international accounting firm with a cooperative relationship with the CPA firms in Taiwan
B. Financial statements audited by the parent company’s certified accountant in Taiwan
C. Financial statements audited by the subsidiary's certified accountant in Taiwan
D. Other

Note 3: The paid-in capital and cumulative outbound investment amount were translated into New Taiwan Dollars using the exchange rate on the balance sheet date of the current period.

Investment ceiling in Mainland China:

Company name	Accumulated amount remitted from Taiwan at the end of the fiscal period for investment in Mainland China (Note 1)	Investment amount approved by Investment Commission, MoEA (Note 1)	Investment ceiling in Mainland China according to the regulations made by Investment Commission, MoEA
Lotes Co.,Ltd.	$1,507,758thousand	$1,662,566thousand	$21,582,010 thousand
Lintes Technology Co.,Ltd.	$162,286thousand	$162,286thousand	$2,167,707thousand
Good News Medical Co., Ltd.	$1,082 thousand	$1,082 thousand	$6,855 thousand

Note 1: The conversions to NTD were made at the exchange rates prevailing on the balance sheet date.

Significant transactions with the investee companies in China:

Please refer to the “Information on Significant Transactions” and “Business Relationships and Significant Transactions between Subsidiaries and Parents” for details of significant direct or indirect transactions between the Company and its investees in Mainland China in fiscal 2024, which have been eliminated in the preparation of the consolidated financial statements.

~92~

Notes to the Consolidated Financial Statements (Continued)

(4) Information on Major Shareholders:

ation on Major Shareholders:
Shares Name of Major Shareholder	Shares held	Shareholding %
Chin-LingInvestment Co.,Ltd.	10,956,237	9.73%
JiamingInvestment Co.,Ltd.	9,797,037	8.70%
Labor Pension Fund (New Scheme) – 2022 First Mandate Investment Account Managed by Hua Nan Securities Co.,Ltd.	5,875,650	5.22%

Note:

(1) The information on major shareholders in this table is based on the last business day of each quarter and is calculated based on the total number of common shares and preferred shares held by shareholders who have completed the delivery of unregistered shares (including treasury shares) of the Company of at least 5%. The number of shares recorded in the Company’s financial statements and the actual number of shares delivered without physical registration may differ depending on the basis of computation.
(2) The above information is revealed by the trustee’s opening of a trust account with individual subaccounts of the principal if the shareholder has delivered his or her shares to the trust. As for any shareholder holding more than 10% of the shares of the Company in accordance with the Securities and Exchange Act, the shareholdings include its own shares plus the shares it has delivered to the trust and has the right to decide on the use of the trust property, etc. Please refer to the Market Observation Post System for information on insider shareholdings.

XIV. Segmental Information

(1) General information

The Company’s main business is the trading of various hardware and tool parts, the manufacturing, processing and trading of various terminals and their finished connectors, the import and export trade of the preceding items, and the agency of the preceding items related to domestic and foreign manufacturers’ products in the tender quotation and distribution business.

(2) Information on reportable segment profit or loss, assets, liabilities and their measurement basis and reconciliation

The Consolidated Company’s major decisions are based on the performance appraisal and resource allocation by the production regions. After analysis, the two regions meet the conditions of consolidation into a single operating segment, therefore the Consolidated Company as a whole is a single operating segment, and the information of segment profit or loss, segment assets and segment liabilities are consistent with the financial statements.

~93~

Notes to the Consolidated Financial Statements (Continued)

(3) Product and labor provision information

The Consolidated Company’s revenue information from external customers is as follows:

Product and labor	2024 $ 10,295,267 8,303,271 3,663,470 2,991,195 2,101,848 1,924,771 809,170	2023 6,495,604 7,139,280 3,273,846 3,224,559 2,298,452 1,325,145 726,577 24,483,463
Server DT NB Strategic Projects LINTES(High Speed Cable) Automotive Other Total
	$ 30,088,992

(4) Geographical information

The geographical information of the consolidated company is as follows, categorized based on the geographic location of the customers.

Area Revenue from external customers: Taiwan Mainland China Other Total Non-current assets: Taiwan Mainland China Other Total	2024 $ 3,439,238 23,371,580 3,278,174	2023 2,902,628 17,890,444 3,690,391 24,483,463 1,295,998 7,945,559 2,035,392 11,276,949
	$ 30,088,992
	$ 1,853,811 8,716,700 3,002,833
	$ 13,573,344

~94~

AI assistant

LOTES — Audit Report / Information 2024

52339_rns_2024-11-13_ceb53678-b673-46d8-851a-23895f1fe747.pdf

Lotes Co., Ltd. and Subsidiaries

Consolidated Financial Statements and Accountant’s Audit Report

2024 & 2023

Notice to Readers

Table of Contents

Declaration

Independent Auditor’s Report

Audit opinion

Key audit matters

Other Matters

Responsibility from management level and governing unit towards the consolidated financial statements

Responsibility of accountants’ audit on the consolidated financial statements

KPMG Taiwan

Lotes Co., Ltd. And Subsidiaries

Consolidated Balance Sheet

December 31, 2024 and 2023

Unit: NT$ 1,000

Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Comprehensive Income

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Changes in Equity

From January 1 to December 31, 2024 and 2023

Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Cash Flows

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

Lotes Co., Ltd. and Subsidiaries

Consolidated Statement of Cash Flows (Continued)

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

Lotes Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements

2024 & 2023

(All amounts are in NT$ thousands unless otherwise stated)

I. Company History

II. Date and Procedures of Approval of Financial Statement

III. Application of New and Revised Standards and Interpretations

IV. Summary of Major Accounting Policies

(4) Foreign currency

1. Foreign currency trading

1. Financial assets

(4) Financial liabilities

3. Derivative financial instruments

(8) Inventory

(9) Investments in Associates

(10) Investment property

(11) Property, plant and equipment

1. Recognition and measurement

(12) Leasing

1. The lessee

2. The lessor

(13) Intangible assets

1. Recognition and measurement

2. Subsequent expenditure

3. Amortization

(14) Non-financial asset impairment

1. Defined contribution plan

2. Defined benefit plan

3. Short-term employee benefits

(20) Business combination

(21) Earnings per share

(22) Segmental Information

V. Primary Sources of Major Accounting Judgment, Estimate and Assumption Uncertainties

VI. Descriptions for Important Accounting Items

Notes to the Consolidated Financial Statements (Continued)

(5) Investments accounted for using the equity method

1. Associates

2. Guarantees

(6) Changes in ownership interests in subsidiaries

1. Acquisition of subsidiaries

(1) Net cash outflow from acquisition of subsidiaries

(2) Identifiable assets acquired and liabilities assumed

2. Acquisition of additional equity interests in subsidiaries

(7) Subsidiaries with significant non-controlling interests

1. Comprehensive financial information of Lintes Technology Co., Ltd.:

Co., Ltd.

LOTES Audit Report / Information 2024