LOTES — Audit Report / Information 2024

Nov 13, 2024

Stock Code: 3533

Lotes Co., Ltd.

Parent Company Only Financial Statement and Independent Auditor’s Report

2024 & 2023

Notice to Readers

For the convenience of readers, the Parent Company Only Financial Statement and Independent Auditor’s 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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Table of Contents

Item I. Cover Page II. Table of Contents III. Independent Auditor’s Report IV. Balance Sheet V. Statement of Comprehensive Income VI. Statement of Change in Equity VII. Statement of Cash Flows VIII. Notes to the Parent Company Only 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 IX. Tables of Significant Accounting Items

Page

1 2 3 7 8 9 10 12 12 12~14 14~31 31~32 32~65 66~70 70 70 71 71 71 72~77 78~79 80~81 82 82 83~97

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Independent Auditor’s Report

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

Audit opinion

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

In our opinions, the compilation of the above parent company only financial statements present fairly, in all material respects, of the financial status of December 31, 2024 and 2023 in Lotes and the 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.

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 parent company only 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 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’s parent company only financial statements of fiscal year 2024 based on the professional judgment of our accountants. The matters have been responded on the whole audited parent company only 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 parent company only financial statements for the accounting policy in terms of income recognition. Please refer to Note VI (14) to the parent

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company only financial statements for the refund liability. Please refer to Note VI (22) to the parent company only financial statements for details about income. Description of the key audit matters:

The operating income is the most critical factor when determining the operational performance of Lotes Co., Ltd. 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 Co., Ltd.

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 (7) for the accounting policy of inventory evaluation. Please refer to Note V in the parent company only financial statements for the accounting estimates and assumed uncertainties of the inventory evaluation. Please refer to Note VI (4) in the parent company only 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 Co., Ltd. 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.

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Responsibility from management level and governing unit towards the parent company only financial statements

Management level’s responsibility is to prepare the parent company only financial statements present fairly according to Regulations Governing the Preparation of Financial Reports by Securities Issuers and to maintain necessary internal control related to the preparation of the parent company only financial statements in order to ensure there is no major untrue expression on the financial statements due to fraud or error.

When preparing the parent company only financial statements, the responsibility of management level also includes evaluating Lotes’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 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 is responsible for supervising the process of financial reports.

Responsibility of accountants’ audit on the parent company only financial statements

The purpose of the parent company only financial statements audited by our accountants is to obtain reasonable assurance on whether the significant untrue expression exists on the whole parent company only 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 parent company only 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: 1. Identifying and evaluating the risk of major untrue expression on the parent company only 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.

1. 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.

2. Evaluating the adequacy of the accounting policies used by the management level and the rationality of the accounting evaluation and relevant disclosure concluded.

3. 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

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on events or situations with major concerns affecting Lotes’s capability in continuous operation are made. If we believe major uncertainty existed on the event or situation, we must remind the users of parent company only 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 not capable in continuous operation.

1. Evaluating the overall expression, structure and content of the parent company only financial statements (including relevant notes) as well as whether the parent company only financial statements present fairly, in all material respects, relevant transaction and events.

2. Obtaining sufficient and appropriated audit evidence of the financial information from the investee companies accounted for using equity method as well as express opinions towards the parent company only financial statements. We are in charge of the directing, supervision and execution on the audit cases as well as concluding audit opinions towards the parent company only financial statements of Lotes.

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’s parent company only 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.

Balance Sheet

December 31, 2024 and 2023

Unit: NT$ 1,000

Assets Current assets: 1100 Cash and cash equivalents (Note VI (1) and (25)) 1110 Financial assets measured at FVTPL - current (Note VI (2), (12) and (25)) 1150 Net notes receivable (Note VI (3) and (25)) 1170 Net accounts receivable (Note VI (3) and (25)) 1181 Accounts receivable - related parties (Note VI (3), (25) and VII) 1200 Other receivables (Note VI (3) and (25)) 1210 Other accounts receivable - related parties (Note VI (3), (25) and VII) 1220 Income tax assets for the current period (Note VI (18)) 130X Net inventory (Note VI (4)) 1410 Advance payment 1470 Other current assets Non-current assets: 1510 Financial assets measured at FVTPL - non-current (Note VI (2), (12) and (25)) 1517 Financial assets measured at FVTOCI - non-current (Note VI (2) and (25)) 1550 Investments accounted for using the equity method (Note VI (5) and XIII) 1600 Property, plant and equipment(Note VI (6) and VIII) 1755 Right-of-use assets(Note VI (7)) 1760 Net investment property(Note VI (8), (25) and VIII) 1780 Intangible assets(Note VI (9)) 1840 Deferred tax assets(Note VI (18)) 1900 Other non-current assets Total of assets	Dec. 31, 2024 Amount % $ 11,074,514 23 - - 1,615 - 7,755,548 16 806,006 2 86,060 - - - - - 1,069,881 2 8,709 - - -	Dec. 31, 2023 Amount % 7,936,834 22 7,307 - 1,383 - 5,839,889 17 35,703 - 54,891 - 3 - 135 - 600,365 2 7,215 - 15 - 14,483,740 41 26,916 - 1,144 - 20,181,601 57 293,768 1 59 - 221,387 1 38,347 - 164,025 - 13,275 - 20,940,522 59 35,424,262 100 Liabilities and equity Current liabilities: 2100 Short-term loans (Note VI (11), (25), (28), VIII and IX) 2130 Contract liabilities - current (Note VI (22)) 2150 Notes payable (Note VI (10) and (25)) 2170 Accounts payable (Note VI (10) and (25)) 2180 Accounts payable - related parties (Note VI (10), (25) and VII) 2200 Other payables (Note VI (25)) 2220 Other payables - related parties (Note VI (25) and VII) 2230 Income tax liabilities for the period (Note VI (18)) 2280 Lease liabilities - current (Note VI (13), (25), (28) and VII) 2365 Refund liabilities - current (Note VI (14)) 2300 Other current liabilities Non-current liabilities: 2530 Bonds payable (Note VI (12), (25) and (28)) 2550 Provisions - non-current (Note VI (15) and (17)) 2570 Deferred income tax liabilities (Note VI (18)) 2600 Other non-current liabilities Total of liabilities Equity attributable to owners of parent: Share capital: 3110 Capital – common stock (Note VI (19)) 3130 Certificates of bond-to-stock conversion (Note VI (19)) 3200 Capital reserves (Note VI (19)) 3300 Retained earnings (Note VI (19)) 3400 Other equity (Note VI (19)) Total of equity Total of liabilities and equity	Dec. 31, 2024 Amount % $ 3,730,000 8 1,810 - 6,761 - 1,777 - 6,204,159 13 423,908 1 7,426 - 913,640 2 - - 548,478 1 20,929 -	Dec. 31, 2023 Amount % 1,580,000 4 3,605 - 5,191 - 2,000 - 3,742,662 11 386,979 1 4,356 - 593,337 2 59 - 420,182 1 18,060 -
			11,858,888 25	6,756,431 19
	20,802,333 43		- - 38,516 - 64,833 - 193 -	850,247 3 43,534 - 948 - 43 -
	230,008 1 103,716 - 26,077,007 54 289,259 1 - - 216,733 1 16,225 - 136,523 - 60,643 -
			103,542 -	894,772 3
			11,962,430 25	7,651,203 22
			1,125,347 2 - - 9,830,950 21 24,935,301 52 78,419 -	1,113,298 3 1,423 - 8,896,393 25 18,552,928 52 (790,983) (2)
	27,130,114 57
			35,970,017 75	27,773,059 78
			$ 47,932,447 100	35,424,262 100
	$ 47,932,447 100

(Please read the Notes to the Parent Company Only Financial Statements)

Manager: HO, TE-YU

Chairperson: CHU, TE-HSIANG

Accounting Manager: LIU, HSIN-HSIA

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Lotes Co., Ltd.

Statement of Comprehensive Income

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

4000 Operating revenue (Note VI (14), (22) and XIV) 5000 Operating cost (Note VI (4) and XII) Gross profit Operating expense (Note VI (13), (16), (17). (24), (25), VII and XII): 6100 Promotion expense 6200 Administration expense 6300 R&D expense 6450 Expected credit impairment profit/loss Total operating expense Net operating profit Non-operating revenue/expense (Note VI (5), (16) and (23)): 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Financial costs 7055 Expected credit impairment gain 7070 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Total non-operating revenue/expense Net profit before tax from continuing operations 7950 Less: Income tax expense (Note VI (18)) Net profit for the period 8300 Other comprehensive income: 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Remeasurement of defined benefit plans 8316 Unrealized gains (losses) from investments in equity instruments measured at FVTOCI 8330 Share of other comprehensive income of subsidiaries, associates, and joint ventures accounted for using the equity method - items that may not be reclassified to profit or loss 8349 Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Total components of other comprehensive income that will not be reclassified to profit or loss 8360 Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translation 8380 Share of other comprehensive income of subsidiaries, associates, and joint ventures accounted for using the equity method – items that may be reclassified to profit or loss 8399 Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss Total components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income for the period (net) Total other comprehensive income for the period Basic earnings per share (Unit: NT$) (Note VI (21)) Diluted earnings per share (Unit: NT$) (Note VI (21))	2024	% 100 68	2023	% 100 73
	Amount $ 19,418,200 13,261,717		Amount 15,473,450 11,253,709
	6,156,483	32	4,219,741	27
	353,102 458,889 69,533 679	2 2 - -	306,238 450,781 59,862 (1,625)	2 3 - -
	882,203	4	815,256	5
	5,274,280	28	3,404,485	22
	453,430 160,101 650,974 (43,992) 1,644 4,237,150	2 1 3 - - 22	264,179 175,636 (71,334) (33,786) - 2,795,627	2 1 - - - 18
	5,459,307	28	3,130,322	21
	10,733,587 1,456,635	56 8	6,534,807 941,775	43 6
	9,276,952	48	5,593,032	37
	4,579 (2,884) (246) 916	- - - -	(2,292) 3,982 (38) (458)	- - - -
	533	-	2,110	-
	868,882 3 -	4 - -	(449,712) - -	(3) - -
	868,885	4	(449,712)	(3)
	869,418	4	(447,602)	(3)
	$ 10,146,370	52	5,145,430	34
	$	82.77		50.65
	$	82.33		50.19

(Please read the Notes to the Parent Company Only Financial Statements) Chairperson: CHU, TE-HSIANG Manager: HO, TE-YU Accounting Manager: LIU, HSIN-HSIA

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Lotes Co., Ltd.

Statement of Change in Equity

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

Balance on January 1, 2023 Net profit for the period Other comprehensive income for the period Total other comprehensive income for the period Appropriation and distribution of retained earnings: Legal reserve appropriated Reversal on special reserve Cash dividends of common stock Other changes in capital reserves: Issuance of stock options for convertible bonds Changes in equity of subsidiaries, associates and joint ventures accounted for using equity method Compensation expense for employee stock options Cash capital increase Conversion of convertible bonds Changes in ownership of subsidiaries Balance on December 31, 2023 Net profit for the period Other comprehensive income for the period Total other comprehensive income for the period Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of common stock Other changes in capital reserves: Changes in equity of subsidiaries, associates and joint ventures accounted for using equity method Conversion of convertible bonds Changes in ownership of subsidiaries Balance on December 31, 2024	**Share capital **	**Share capital **	Capital reserves		Retained earnings			Other equity items		Total equity 22,811,572 5,593,032 (447,602) 5,145,430 - - (2,803,575) 114,556 24,049 52,309 2,305,973 128,907 (6,162) 27,773,059 9,276,952 869,418 10,146,370 - - (2,898,275) 90,994 854,189 3,680 35,970,017
							Exchange difference between foreign operating office’s statement	Unrealized gain or loss 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	Undistributed 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	- - -
	-	-	-	-	-	5,591,198	(449,712)	3,944	-
	- - - - - - 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)
	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) - -
	-	-	-	-	-	9,280,648	868,885	(3,163)	-
	- - - - 12,049 -	- - - - (1,423) -	- - - 90,994 843,563 -	559,120 - - - - -	- 451,954 - - - -	(559,120) (451,954) (2,898,275) - - -	- - - - - -	- - - - - -	- - - - - 3,680
	$ 1,125,347	-	9,830,950	3,103,455	790,984	21,040,862	99,878	(18,977)	(2,482)

(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.

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 Items of adjustment: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit impairment gain Interest expense Interest income Dividend income Share of the profit from subsidiaries, associates and joint ventures accounted for using equity method Net loss (gain) on financial assets measured at FVTPL Impairment loss on non-financial assets Inventory (reversal gain)/write-down and obsolescence loss Loss (profit) from the disposal and scaping of property, plant and equipment Compensation expense for employee stock options Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Changes in operating assets: (Increase) decrease in notes receivable (Increase) decrease in accounts receivable Increase in other receivables (Increase) decrease in inventory Increase in advance payment Decrease (increase) in other current assets Total net change in the assets related to operating activities Net change in the liabilities related to operating activities: Decrease in contract liabilities Increase (decrease) in notes payable Increase in accounts payable Increase (decrease) in other payables Decrease in provision for liabilities Increase in other current liabilities Increase in refund liabilities Increase in other non-current liabilities Total net change in the liabilities related to operating activities Total net change in the assets and liabilities related to operating activities Total of the adjustment items Cash inflow generated from operating activities Interest received Dividends received Interest paid Income taxes paid Cash flows used in operating activities	2024 $ 10,733,587 12,054 22,139 (965) 43,992 (453,430) - (4,237,150) 21,837 - (42,088) (17) -	2023 6,534,807 11,966 22,062 (1,625) 33,786 (264,179) (441) (2,795,627) (2,736) 24,860 40,413 (29) 52,309
	(4,633,628)	(2,879,241)
	(232) (2,686,641) (7,935) (427,428) (1,494) 15	11 1,000,963 (25,644) 355,049 (2,023) (15)
	(3,123,715)	1,328,341
	(1,795) 1,570 2,461,274 38,160 (439) 2,869 128,296 150	(25,716) (3,199) 1,507,363 (42,780) (168) 7,052 36,138 -
	2,630,085	1,478,690
	(493,630)	2,807,031
	(5,127,258)	(72,210)
	5,606,329 431,843 129,080 (36,014) (1,045,726)	6,462,597 273,525 441 (21,435) (1,202,000)
	5,085,512	5,513,128

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Lotes Co., Ltd.

Statement of Cash Flows

From January 1 to December 31, 2024 and 2023

Unit: NT$ 1,000

Cash flows 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 investment accounted for using equity method Acquisition of property, plant and equipment Disposal of property, plant and equipment Acquisition of intangible assets Decrease in other non-current assets Net cash outflow from investment activities Cash flows in financing activities: Increase in short-term loans Issuance of corporate bonds Repayment of long-term loans Repayment of lease principal Issuance of cash dividends Cash capital increase Cash flows from (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Increase in cash and cash equivalents Beginning balance of cash and cash equivalents Ending balance of cash and cash equivalents	2024 $ 2,544 (108,000) (223,001) 8,035 (824,023) (2,832) 17 (17) (47,368)	2023 7,433 - (25,000) 10,949 (898,915) (4,471) 29 (514) 386
	(1,194,645)	(910,103)
	2,150,000 - - (59) (2,898,275) -	(250,000) 1,079,878 (126,175) (59) (2,803,575) 2,305,973
	(748,334)	206,042
	(4,853) 3,137,680 7,936,834	- 4,809,067 3,127,767
	$ 11,074,514	7,936,834

(Please read the Notes to the Parent Company Only Financial Statements) Chairperson: CHU, TE-HSIANG Manager: HO, TE-YU

Accounting Manager: LIU, HSIN-HSIA

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Lotes Co., Ltd. Notes to the Parent Company Only 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 Law and was approved for registration with its registered office at No.15, Wuxun Street, Anle District, Keelung City. The Company (hereinafter referred to as the “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 Parent Company Only 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 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 parent company only 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 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 parent company only financial statements:

‧Amendments to IAS 21 “Lack of Exchangeability”

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Notes to the Parent Company Only 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 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	Effective Date Issued by IASB
		January 1, 2027

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Notes to the Parent Company Only Financial Statements (Continued)

further disaggregated in the notes.

The 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 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 Parent Company Only Financial Statement.

(1) Compliance statement

The Parent Company Only Financial Statement was compiled in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers.

(2) Compiling Basis

1. Measurement foundation

Except the major items in the following balance sheet, the Parent Company Only 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 Company takes the currency of major economic environment where its operation is located as its functional currency. The Parent Company Only Financial Statement is presented in the functional currency of the Company, NTD. All of the

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Notes to the Parent Company Only Financial Statements (Continued)

financial information expressed herein in NTD is of one thousand per unit.

• (3) 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 are within the effective range of the hedge; or

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

2. 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. 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.

• (4) Standards for classifying current and non-current assets and liabilities

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Notes to the Parent Company Only Financial Statements (Continued)

The 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:

1. It is expected to be realized in the entity’s normal operating cycle or is intended to be sold or consumed;

2. It is held primarily for the purpose of trading;

3. It is expected to be realized within 12 months after the reporting period; or

4. 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 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:

1. It is expected to be settled in the entity’s normal operating cycle;

2. It is held primarily for the purpose of trading;

3. It is due to be settled within 12 months after the reporting period; or

4. The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

5. (5) 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.

• (6) 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 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 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

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Notes to the Parent Company Only Financial Statements (Continued)

value through other comprehensive income, or financial assets measured at fair value through gains and losses.

The 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 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 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.

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Notes to the Parent Company Only Financial Statements (Continued)

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, such as those held for trading or managed on a fair value basis to evaluate performance, are measured at fair value through profit or loss, including derivative financial assets. The 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 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 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 company continues to recognize the asset.

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Notes to the Parent Company Only Financial Statements (Continued)

• (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 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:

• 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 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

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Notes to the Parent Company Only Financial Statements (Continued)

information, as well as analysis based on the 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 the longest contract period during which the 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 company can collect under the contract and the cash flows that the company expects to collect. The expected credit loss is discounted at the effective interest rate of the financial asset.

On each reporting date, the 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 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

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Notes to the Parent Company Only Financial Statements (Continued)

amount of the assets).

When the 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 company shall analyze the date and amount of the write-off on the basis of whether it is reasonable to expect recovery. The 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 Company terminates the contractual rights from the cash flow of such assets or has transferred the financial assets and almost all risks and returns of the asset ownership have been transferred to other enterprises, the financial assets shall be derecognized.

Transactions in which the 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.

1. Financial liabilities and equity instruments

2. (1) Classification of liabilities or equity

Debt and equity instruments issued by the 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 Company after deducting all of its liabilities. Equity instruments issued by the 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.

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Notes to the Parent Company Only Financial Statements (Continued)

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 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 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 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 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

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Notes to the Parent Company Only Financial Statements (Continued)

measured at fair value, and the resulting gain or loss is recognized directly in profit or loss. (7) 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.

(8) Investments in Associates

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

The 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 parent company only financial reports include the 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 Company’s accounting policies. When an associate undergoes an equity transaction affecting comprehensive income and other comprehensive income that does not affect the Company’s ownership percentage, the Company recognizes any changes in equity proportionately as capital reserves.

Unrealized gains and losses arising from transactions between the 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 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.

When an associate issues new shares and the Company does not subscribe proportionately, causing a change in its ownership percentage and thus changing the net equity value of the investment, such changes are adjusted against capital reserves for equity method investments. If this adjustment reduces the capital reserves and the remaining balance of capital reserves from equity method investments is insufficient, the difference is charged against retained earnings. However, if the Company’s ownership interest in the

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Notes to the Parent Company Only Financial Statements (Continued)

associate decreases without subscribing proportionately, previously recognized amounts related to the associate in other comprehensive income are reclassified proportionally, based on the same basis as if the associate had directly disposed of related assets or liabilities.

(9) Investing subsidiary

In preparing parent company only financial statements, the Company applies the equity method to investees over which it has control. Under the equity method, the share of current profit or loss and other comprehensive income of the parent company only financial report is the same as the share of current profit or loss and other comprehensive income attributable to the owners of the parent in the financial statements prepared on a consolidated basis, and the interest of the owners of the parent company only financial report is the same as the interest attributable to the owners of the parent in the financial statements prepared on a consolidated basis.

Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are treated as equity transactions with owners.

• (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

• Recognition and measurement

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

2. Subsequent costs

Subsequent expenses are capitalized only when it is probable that future economic

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Notes to the Parent Company Only Financial Statements (Continued)

benefits will flow into the Company.

3. 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 3-10 years

• (3) Other equipment 2-15 years

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

4. 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 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 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 earlier at the end of the lease term. In addition, the 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 Company will be used. Generally speaking, the consolidated company adopts its incremental borrowing rate as

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Notes to the Parent Company Only Financial Statements (Continued)

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 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.

In relation to short-term leases and leases of low-value assets, the 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 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

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Notes to the Parent Company Only Financial Statements (Continued)

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 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

Computer software acquired by the 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

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 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 Company assesses whether there is any indication that the carrying amount of non-financial assets (other than inventories, deferred income tax assets) may be impaired. If any indication exists, the recoverable amount of the asset is estimated. Goodwill is tested for impairment on an annual basis.

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

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Notes to the Parent Company Only Financial Statements (Continued)

the carrying amount of each other asset in the unit in proportion to its carrying amount.

Impairment losses recognized on goodwill 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 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.

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.

(16) Income recognition

Revenue from customer contracts

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

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

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Notes to the Parent Company Only Financial Statements (Continued)

The time between the transfer of goods or services from all customer contracts to the customer and the time between the customer’s payment for the goods or services is expected to be no more than one year, so the 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 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 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 income and accumulated in retained earnings. The 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 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 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

~29~

Notes to the Parent Company Only Financial Statements (Continued)

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 Company has determined that the top-up tax payable under the Pillar Two global minimum tax framework falls within the scope of IAS 12 “Income Taxes.” The Company has applied the temporary mandatory exception to deferred tax accounting related to top-up tax. 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:

1. 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.

2. Those generated due to investment subsidiary company and joint equities and likely to not to be returned in the foreseeable future.

3. Original recognition of business reputation

Deferred income tax assets are recognized for unused tax losses and unused income tax

~30~

Notes to the Parent Company Only Financial Statements (Continued)

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

1. Having the legal execution right to make the current income tax assets and the current tax liabilities offset with each other: and

2. 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;

3. (1) Same subject of tax payment; or

4. (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.

5. (20) Earnings per share

The 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 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 Company include convertible corporate bonds and stock options for employees.

• (21) Segmental information

The Company has disclosed segment information in the Consolidated Financial Statements and therefore parent company only financial statements do not disclose segment information.

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

When preparing the parent company only financial statements, management must make judgments 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.

~31~

Notes to the Parent Company Only Financial Statements (Continued)

Management continuously reviews estimates and underlying assumptions, which are consistent with the 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 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

Petty cash Checks and demand deposits Time deposits Cash and cash equivalents listed on the Statement	Dec. 31, 2024 $ 82 2,102,711 8,971,721 $ 11,074,514		Dec. 31, 2023 155 461,239 7,475,440 7,936,834

Disclosures of interest rate risks and sensitivity analysis on financial assets and liabilities of the Company are seen in Note VI (25).

• (2) Financial assets

• Financial assets measured at FVTPL

bilities of the Company are seen in Note VI (25). ancial assets . Financial assets measured at FVTPL
Financial assets mandatorily measured at FVTPL: Current: Non-derivative financial assets Over-the-counter company stocks Subtotal Non-current Non-hedging derivatives Embedded derivatives—right of redemption Non-derivative financial assets Private equity funds Overseas bonds Subtotal	Dec. 31, 2024 $ -	Dec. 31, 2023 7,307
	-	7,307
	- 59,964 170,044	2,205 24,711 -
	230,008	26,916

~32~

Notes to the Parent Company Only Financial Statements (Continued)

Total $ 230,008 34,223

Please refer to Note VI (12) for the disclosure of embedded derivatives of the convertible bonds issued by the Company.

Please refer to Note VI (25) for the amount recognized in profit or loss based on fair value remeasurement.

1. Financial assets measured at FVTOCI

Equity instruments measured at fair value through other comprehensive income: Non-current: Domestic unlisted (or OTC) stocks—SteadyBeat Technology Corporation Domestic unlisted (or OTC) stocks—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 - 15 15,876 87,825	Dec. 31, 2023 1,129 15 - -
	$ 103,716	1,144

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

The Company did not receive any dividend income from the above equity instruments measured at fair value through other comprehensive income for the years ended 2024 and 2023.

Due to asset allocation considerations and portfolio adjustments to diversify risks, the Company disposed of its investments in SteadyBeat Technology Corporation, designated as measured at fair value through other comprehensive income, on December 18, 2024, February 20, 2023, and December 29, 2023. The fair values at the time of disposal were NT$2,544 thousand, NT$4,889 thousand, and NT$2,544 thousand, respectively, with cumulative gains or losses on disposal all amounting to NT$0.

For information on market risks, refer to note 6(25).

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

(3) Notes receivable, accounts receivable and other receivables

Notes receivable Accounts receivable	Dec. 31, 2024 $ 1,615 8,563,169	Dec. 31, 2023 1,383 5,877,903

~33~

Notes to the Parent Company Only Financial Statements (Continued)

Other receivables Allowance for losses	86,306 (1,861)	57,445 (4,862) 5,931,869
	$ 8,649,229

For changes in the allowance for doubtful accounts and notes receivable of the Company as of December 31, 2024, and December 31, 2023, please refer to note 6(25)1.(3) for a description of impairment losses.

(4) Inventory

for a description of impairment losses. nventory
Merchandises Finished goods Work in process Raw materials	Dec. 31, 2024 $ 1,069,240 641 - -	Dec. 31, 2023 598,399 1,946 3 17 600,365
	$ 1,069,881

The Company’s inventory as of December 31, 2024 and 2023 including allowance for inventory losses are NT$71,111 thousand dollars and NT$125,716 thousand dollars respectively.

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

respectively. The Company recognized inventory-related expenses	(gain) as follows:
Cost of goods sold Inventory (reversal gain)/write-down and obsolescence loss Total	2024 $ 13,303,805 (42,088)	2023 11,213,296 40,413 11,253,709
	$ 13,261,717

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

(5) Investment accounted for using the equity method

As of the reporting date, the Company’s investments accounted for using the equity method are as follows:

method are as follows:
Subsidiaries Associates	Dec. 31, 2024 $ 25,937,304 139,703	Dec. 31, 2023 20,103,401 78,200 20,181,601
	$ 26,077,007

1. Subsidiaries

Please refer to the consolidated financial statements for year 2024.

2. Associates

On April 25, 2024, the Company acquired a 23.50% equity interest in AionChip Technologies CO., LTD. for NT$78,400 thousand in cash, thereby obtaining significant influence over the investee.

~34~

Notes to the Parent Company Only Financial Statements (Continued)

On July 24, 2023, the consolidated entity acquired a 21.01% equity interest in I-SEE VISION TECHNOLOGY INC. for NT$94,000 thousand in cash, thereby obtaining significant influence over the investee.

The Company uses the equity method for associates that individually are not significant. The aggregated financial information for these associates, which is included in the parent company only financial reports, is as follows:

Total book value of the Company’s interest in individually insignificant associates at the end of the period: Share attributable to the Company: Loss for the period from continuing operations Other comprehensive income Total comprehensive income (i.e., loss for the period from continuing operations)	Dec. 31, 2024 $ 139,703		Dec. 31, 2023 78,200 2023 (17,695) -
	2024
	$ (27,356) 36
	$ (27,320)		(17,695)

3. Guarantee

As of December 31, 2024 and 2023, the Company’s investments accounted for using the equity method did not provide security for the pledge.

(6) Property, plant and equipment

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

Cost or deemed cost: Balance on January 1, 2024 Addition Disposal Balance on December 31, 2024	Land $ 249,650 - -	Buildings 55,866 286 -		Machinery equipment 10,167 - (1,166)		Other 58,249 2,546 (2,325)		Total 373,932 2,832 (3,491) 373,273
	$ 249,650	56,152		9,001		58,470

~35~

Notes to the Parent Company Only Financial Statements (Continued)

Balance on January 1, 2023 Addition Disposal Balance on December 31, 2023 Losses on depreciation and impairment: Balance on January 1, 2024 Depreciation in the year Disposal Balance on December 31, 2024 Balance on January 1, 2023 Depreciation in the year Disposal Balance on December 31, 2023 Book value: December 31, 2024 December 31, 2023	Land $ 249,650 - -	Buildings 55,866 - -		Machinery equipment 10,691 923 (1,447)		Other 55,346 3,548 (645)		Total 371,553 4,471 (2,092) 373,932 80,164 7,341 (3,491) 84,014 75,003 7,253 (2,092) 80,164 289,259 293,768
	$ 249,650	55,866		10,167		58,249
	$ - - -	24,742 1,399 -		9,240 196 (1,166)		46,182 5,746 (2,325)
	$ -	26,141		8,270		49,603
	$ - - -	23,358 1,384 -		10,513 174 (1,447)		41,132 5,695 (645)
	$ -	24,742		9,240		46,182
	$ 249,650	30,011		731		8,867
	$ 249,650	31,124		927		12,067

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.

(7) Right-of-use assets

The changes in the cost and accumulated depreciation of right-of-use assets recognized by the Company for leased buildings and structures are as follows:

Cost of right-of-use assets: Balance on January 1, 2024 Derecognition upon maturity Balance on December 31, 2024 Balance on January 1, 2023 Addition Balance on December 31, 2023 Depreciation of right-of-use assets: Balance on January 1, 2024 Depreciation for the period Derecognition upon maturity Balance on December 31, 2024	Buildings $ 118 (118)
	$ -
	$ - 118
	$ 118
	$ 59 59 (118)
	$ -

~36~

Notes to the Parent Company Only Financial Statements (Continued)

Balance on January 1, 2023 Depreciation for the period Balance on December 31, 2023 Book value: December 31, 2024 December 31, 2023	Buildings $ - 59 $ 59 $ - $ 59

(8) Investment property

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

Cost or deemed cost: Balance on January 1, 2024 Balance on December 31, 2024 Balance on January 1, 2023 Balance on December 31, 2023 Losses on depreciation and impairment: Balance on January 1, 2024 Depreciation for the period Balance on December 31, 2024 Balance on January 1, 2023 Depreciation for the period Balance on December 31, 2023 Book value: December 31, 2024 December 31, 2023 Fair value: December 31, 2024 December 31, 2023	Land $ 129,386	Buildings 102,244
	$ 129,386	102,244
	$ 129,386	102,244
	$ 129,386	102,244
	$ - -	10,243 4,654
	$ -	14,897
	$ - -	5,589 4,654
	$ -	10,243
	$ 129,386	87,347
	$ 129,386	92,001

As of December 31, 2024, and 2023, for details of investment properties serving as collateral for borrowings and financing, please refer to note VIII.

~37~

Notes to the Parent Company Only Financial Statements (Continued)

(9) Intangible assets

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

Cost: Balance on January 1, 2024 Separate acquisition Balance on December 31, 2024 Balance on January 1, 2023 Separate acquisition Balance on December 31, 2023 Losses on amortization and impairment: Balance on January 1, 2024 Amortization for the period Balance on December 31, 2024 Balance on January 1, 2023 Amortization for the period Balance on December 31, 2023 Book value: December 31, 2024 December 31, 2023	$	Computer software 111,598 17	Computer software 111,598 17		Other 600 -		Total 112,198 17 112,215 111,684 514 112,198 73,851 22,139 95,990 51,789 22,062 73,851 16,225 38,347
	$		111,615		600
	$		111,084 514		600 -
	$		111,598		600
	$		73,851 22,139		- -
	$		95,990		-
	$		51,789 22,062		- -
	$		73,851		-
	$		15,625		600
	$		37,747		600

(10) Accounts payable and notes payable

Notes payable Accounts payable Accounts payable – related parties Total	Dec. 31, 2024	Dec. 31, 2023
	$ 6,761	5,191
	1,777	2,000
	6,204,159	3,742,662
		3,749,853
	$ 6,212,697

(11) Short-term loans

Details, terms, and conditions of the Company’s short-term borrowings are as follows:

Bank loans - credit loans Remaining credit Bank loans - credit loans Remaining credit		Dec. 31, 2024		Amount
	Currency NTD	Interest rate range	Maturity 2025
		1.88%~1.98%		$ 3,730,000
				$ 2,589,625
		Dec. 31, 2023		Amount
	Currency NTD	Interest rate range	Maturity 2024
		1.80%~1.90%		$ 1,580,000
				$ 2,167,625

~38~

Notes to the Parent Company Only Financial Statements (Continued)

For information on the Company’s exposure to interest rate risk, please refer to Note 6(25). For information on assets pledged as collateral for bank borrowings, please refer to Note 8. For the issuance of guarantee notes related to bank loans and financing facilities, please refer to Note 9.

(12) Bonds payable

The details of the Company’s second domestic unsecured convertible bonds issuance are as follows:

Total amount of convertible bonds issued Cumulative amount converted Unamortized balance of discount on bonds payable Balance of bonds payable at the end of the period Embedded derivatives—right of redemption (reported as financial assets measured at FVTPL) Equity component - conversion rights (reported as capital reserves - stock options) Embedded derivative – redemption right (loss) gain (presented under other gains and losses) Interest expense	Dec. 31, 2024 $ 1,000,000 (1,000,000) -	Dec. 31, 2023 1,000,000 (118,100) (31,653) 850,247 2,205 114,556 2023 1,300 12,928
	$ -
	$ -
	$ -
	2024 $ (8)
	$ 6,139

(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 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

~39~

Notes to the Parent Company Only Financial Statements (Continued)

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 carrying amounts at the time of conversion were NT$856,386 thousand and NT$113,861 thousand. The net increase in capital surplus due to bond conversion amounted to NT$843,563 thousand and NT$112,143 thousand, respectively. The capital stock increases resulting from the conversions were NT$10,626 thousand and NT$1,423 thousand, respectively. For details on changes in capital stock, please refer to Note 6(19).

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

(13) Lease liabilities

The carrying amounts of the Company’s lease liabilities are as follows:

Current

Dec. 31, 2024 $ -	Dec. 31, 2023 59

Please refer to Note VI (25) for the maturity analysis. The amounts recognized in the profit and loss are as follows:

2024 Interest expense for lease liabilities $ 1 The amounts recognized in the Statement of Cash Flows are as follows: 2024 Total cash outflow for leases $ 60 (14) Refund liabilities - current Dec. 31, 2024 Refund liabilities - current $ 548,478	2023 1
	2023 60
	Dec. 31, 2023 420,182

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

(15) Provision for liabilities

Provision for liabilities - non-current Employee benefits	Dec. 31, 2024 $ 38,516	Dec. 31, 2023 43,534

Employee benefits are estimated under the Company’s defined benefit plan, please refer to Note VI (17) for details.

(16) Operating leasing

The 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

~40~

Notes to the Parent Company Only Financial Statements (Continued)

not been transferred. Please refer to Note VI (8) for details of the investment real estate.

Due date analysis of lease benefits to report the total amount of undiscounted lease benefits received in the future is shown in the following table:

Less than 1 year 1 to 2 years 2 to 3 years Total undiscounted lease payments	Dec. 31, 2024 $ 3,742 2,039 75	Dec. 31, 2023 1,660 256 89
	$ 5,856	2,005

Rental income generated from investment properties was NT$3,527,000 dollars and NT$2,868,000 dollars for 2024 and 2023 respectively. The direct operating expenses (including maintenance) incurred by the investment properties that generated rental income during the period were NT$4,719,000 dollars and NT$4,823,000 dollars respectively.

(17) Employee benefits

1. Defined benefit plans

The reconciliation between the present value of defined benefit obligations and the fair value of plan assets of the Company is as follows:

Present value of defined benefit obligations 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 defined benefit plan of the Company is contributed to special account of contribution for retirement of Bank of Taiwan. The retirement payment of each employee applicable to Labor Standards Law is calculated in accordance with the base obtained based on the length of service and the average salaries within six months before retirement.

(1) Composition of plan assets

The retirement fund contributed by the Consolidated under the Labor Standards Law shall be controlled by the Labor Funds Operation Bureau of the Ministry of Labor (hereinafter referred to as the Labor Funds Bureau), and under the provisions of Measures on the Management and Application of Labor Retirement Funds, the annual minimum return settled and distributed from the funds operation shall not be lower than the incomes calculated in accordance with the 2-year time certificate of deposit rate of the local banks.

As of the reporting date, the balance of the Company in the special account of contribution for retirement of Bank of Taiwan amounts to NT$ 36,142,000 dollars. The data of the application of the labor retirement funds include funds yield and funds asset

~41~

Notes to the Parent Company Only Financial Statements (Continued)

allocation, with details to be seen in the information released on the website of the Labor Funds Bureau.

• (2) Changes in the present values of defined benefit obligations

Changes in the present values of defined obligations of the Company in 2024 and in 2023 are as follows:

Defined benefit obligation on January 1 Service cost and interest in the year Remeasurement of net defined benefit liabilities (assets) Benefit paid by the plan Defined benefit obligation on December 31	2024 $ 79,676 1,241 (1,252) -	2023 78,993 1,485 2,583 (3,385)
	$ 79,665	79,676

• (3) Changes in fair value of plan assets

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

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

• (4) Expenses recognized in profit or loss

The expenses of the Company recognized in profit or loss in 2024 and in 2023 are as follows:

Service cost for the period Net interest of net defined benefit liabilities 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 the net defined benefit liabilities (assets) recognized in other comprehensive income

~42~

Notes to the Parent Company Only Financial Statements (Continued)

Remeasurement of the accumulated net defined benefit liabilities (assets) of the Company recognized in other comprehensive income in 2024 and 2023 are as follows:

Accumulated balance on January 1 Amount recognized in the year Accumulated balance on December 31	2024 $ (1,354) 4,579	2023 938 (2,292)
	$ 3,225	(1,354)

(6) Actuarial assumptions

The material actuarial assumptions used by the Company to determine the present

value if defined benefit obligations at the end of the reporting period are as follows:

Discount rate Increase in future salary	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 effects of changes in the main actuarial assumptions adopted on December 31,

2024 and 2023 on the present value of defined benefit obligations are as follows:

December 31, 2024 Discount rate Increase in future salary December 31, 2023 Discount rate Increase in future salary	Effects on defined benefit obligations Increased by 0.25% Decreased by 0.25% $ (1,692) 1,748 1,738 (1,691) (1,835) 1,899 1,879 (1,825)
	Increased by 0.25% $ (1,692) 1,738 (1,835) 1,879

The above sensitivity analysis refers to the analysis on the influence of single assumption change based on the situation that other assumptions keep unchanged. In practice, many changes to the assumptions may be linked. The calculation method of sensitivity analysis shall be consistent with that of net defined benefit liabilities of the balance sheet.

The method and assumption applied in current sensitivity analysis is consistent with those adopted in early stage.

2. Defined contribution plan

As to the defined contribution plan, the Company shall contribute the retirement

~43~

Notes to the Parent Company Only Financial Statements (Continued)

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 Company will not assume the legal or constructive obligations of paying extra amount.

The pension expense under the defined contribution retirement funds of the Company in the year of 2024 and 2023 are NT$7,783,000 and NT$7,671,000 respectively, which have been contributed to the Bureau of Labor Insurance.

1. Details of employee benefit liabilities:

Liabilities for paid leave

Dec. 31, 2024	Dec. 31, 2023 3,975
$ 4,342

• (18) Income tax

1. The details of the income tax expenses of the Company are as follows:

2024 2023 Income tax expense for the period Income tax generated in the current period $ 1,267,285 856,202 Surtax on undistributed retained earnings 84,092 158,529 Adjustment of the income tax in the previous year 14,787 (14,446) 1,366,164 1,000,285 Deferred income tax expense Occurrence and reversal of temporary difference 90,981 (58,510) Changes in deductible temporary differences not recognized (510) - 90,471 (58,510) Income tax expense $ 1,456,635 941,775 The income tax expenses of the Company recognized in other comprehensive income are as follows: 2024 2023 Components of other comprehensive income that will not be reclassified to profit or loss: Remeasurement of defined benefit plan $ 916 (458)	2024 $ 1,267,285 84,092 14,787	2023 856,202 158,529 (14,446)
	1,366,164	1,000,285
	90,981 (510)	(58,510) -
	90,471	(58,510)
	$ 1,456,635	941,775

The reconciliation of the relationship between the income tax expense and the net profit before tax of the Company in 2024 and in 2023 is as follows:

Net profit before tax Income tax calculated based on the tax rate of the place where the Company located	2024 $ 10,733,587	2023 6,534,807
	2,146,717	1,306,961

~44~

Notes to the Parent Company Only Financial Statements (Continued)

Adjustments in accordance with local tax laws Adjustment of current income tax for the prior period Surtax on undistributed retained earnings Total 2. Deferred tax assets and liabilities (1) Recognized deferred tax assets Losses from inventory price drop and obsolescence Unappropriated pension expenses Losses from the price drop of fixed assets and idle assets Refund liabilities and accounts payable Expected credit losses on other receivables Unrealized loss on financial assets Unrealized foreign exchange losses Remeasurement of defined benefit plan Deferred tax assets (2) Recognized deferred income tax liabilities Unrealized gains on financial assets Unrealized foreign exchange gain Deferred income tax liabilities	(788,451) 14,277 84,092	(509,269) (14,446) 158,529
	$ 1,456,635	941,775
	Dec. 31, 2024 $ 14,222 115 44 109,697 49 4,426 - 7,970	Dec. 31, 2023 25,143 203 44 84,037 - - 45,712 8,886
	$ 136,523	164,025
	Dec. 31, 2024 $ - 64,833	Dec. 31, 2023 948 -
	$ 64,833	948

3. Income tax approval

The approval on the filing of final income tax return of the Company has lasted till the year 2022 as required by the taxing authority.

4. Global Minimum Tax

The 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).

The Company’s subsidiaries operating in Germany, Vietnam, and Hong Kong are subject to the global minimum tax regime applicable in those jurisdictions. Please refer to the 2024 consolidated financial statements for details of the related impact.

(19) Capital and other equity

As of December 31, 2024 and 2023, the total authorized share capital of the Company was $1,550,000,000 dollars with a par value of $10 per share, and the actual amount issued was $1,125,347,000 and $1,113,298,000 dollars, separately.

~45~

Notes to the Parent Company Only Financial Statements (Continued)

In 2024, due to the exercise of conversion rights by holders of convertible bonds, the Company issued 1,063 thousand new shares. The issuance was approved by the Board of Directors on August 9, 2024, and the base date for the issuance of common shares was set as August 9, 2024. 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 is pending legal registration and thus is recorded under bond conversion entitlement certificates at NT$1,423 thousand. Legal registration was completed in April 2023.

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:

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

In accordance with the Company Act, capital surplus is required to cover losses first before new shares or cash can be issued in proportion to the shareholders’ original shares. Realized capital surplus referred to in the preceding paragraph includes 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 surplus 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

~46~

Notes to the Parent Company Only Financial Statements (Continued)

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) Profit 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, respectively. The dividends distributed 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:

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

Information on the distribution of earnings as proposed by the Board of Directors

~47~

Notes to the Parent Company Only Financial Statements (Continued)

and resolved by the Shareholders’ Meeting is available on the “Market Observation Post System (MOPS)”

1. Other equity

System (MOPS)” Other equity
Balance on Jan. 1, 2024 Exchange differences arising from the translation of the net assets of foreign operations Unrealized (losses) gains from financial assets measured at FVTOCI Changes in ownership interests in subsidiaries Balance on Dec. 31, 2024	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

~48~

Notes to the Parent Company Only Financial Statements (Continued)

Balance on Jan. 1, 2023 Exchange differences arising from the translation of the net assets of foreign operations Unrealized (losses) gains from financial assets measured at FVTOCI Changes in ownership interests in subsidiaries Balance on Dec. 31, 2023	Exchange differences on translation of foreign operations $ (319,295) (449,712) - -	Unrealized gain (loss) on financial assets measured at FVTOCI (19,758) - 3,944 -		2024 Unearned compensation		2023 Total (339,053) (449,712) 3,944 (6,162)
	$ (769,007)	(15,814)		(6,162)		(790,983)

(20) Share-based payment

The Company has the following share-based benefit transactions:

Date of grant Number of grants Granted to Vesting conditions Fair value at the grant date	Cash capital increase reserved **for employee subscription **
	The Company
	2023.03.08 350 thousand shares Current employees of the Company and subsidiaries Immediate vesting $161

1. Cash capital increase reserved for employee subscription

The Company recognized a share-based employee compensation cost of NT$52,309

thousand from cash capital increase for employee stock options in 2023.

(21) Earnings per share

The calculation of basic earnings per share and diluted earnings per share of the 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:	2024 $ 9,276,952	2023 5,593,032 110,416 50.65
	112,082
	$ 82.77

~49~

Notes to the Parent Company Only Financial Statements (Continued)

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 compensation Convertible bond Weighted average common shares outstanding (adjusted for the effect of dilutive potential common stock) Diluted earnings per share (22) Revenue from contracts with customers

2024 2023 $ 9,276,952 5,593,032 4,917 9,302 $ 9,281,869 5,602,334 112,082 110,416 146 244 516 964 112,744 111,624 $ 82.33 50.19

1. Segmentation of main regional markets and main product revenue: 2024 Major regional markets Taiwan $ 2,890,792 Mainland China 13,037,793 Other countries 3,489,615 $ 19,418,200 Main products/line of service: Sever $ 6,706,542 DT 6,096,483 NB 2,940,573 Strategic Projects 2,362,859 Automotive 372,093 Others 939,650 $ 19,418,200 2. Balance of contract Dec. 31, 2024 Dec. 31, 2023 Contract liabilities $ 1,810 3,605	1. Segmentation of main regional markets and main product revenue: 2024 Major regional markets Taiwan $ 2,890,792 Mainland China 13,037,793 Other countries 3,489,615 $ 19,418,200 Main products/line of service: Sever $ 6,706,542 DT 6,096,483 NB 2,940,573 Strategic Projects 2,362,859 Automotive 372,093 Others 939,650 $ 19,418,200 2. Balance of contract Dec. 31, 2024 Dec. 31, 2023 Contract liabilities $ 1,810 3,605	1. Segmentation of main regional markets and main product revenue: 2024 Major regional markets Taiwan $ 2,890,792 Mainland China 13,037,793 Other countries 3,489,615 $ 19,418,200 Main products/line of service: Sever $ 6,706,542 DT 6,096,483 NB 2,940,573 Strategic Projects 2,362,859 Automotive 372,093 Others 939,650 $ 19,418,200 2. Balance of contract Dec. 31, 2024 Dec. 31, 2023 Contract liabilities $ 1,810 3,605	2023 2,088,934 11,001,186 2,383,330
		$ 19,418,200	15,473,450
		$ 6,706,542 6,096,483 2,940,573 2,362,859 372,093 939,650	4,567,884 5,673,620 2,704,619 2,215,796 276,686 34,845
		$ 19,418,200	15,473,450
		Dec. 31, 2023 3,605	Jan. 1, 2023 54,427
	$ 1,810

The beginning balances of contract liabilities as of January 1, 2024 and 2023 were recognized as income of NT$1,795,000 dollars and NT$27,732,000 dollars respectively.

(23) Non-operating revenue/expense

~50~

Notes to the Parent Company Only Financial Statements (Continued)

1. Interest income The details of interest income of the Company are Bank deposit Others 2. Other income The details of other income of the Company are as Income from dividend Income from molding Income from compensation Income from samples Income from rentals Royalty income Income from subsidies Others	2024 as follows: 2024 $ 453,294 136	2023 2023 264,179 - 264,179 2023 441 150,533 1,078 10,055 2,868 1,593 1,135 7,933 175,636
	$ 453,430
	follows: 2024 $ - 128,890 5,737 9,304 3,683 1,572 1,704 9,211
	$ 160,101

~51~

Notes to the Parent Company Only Financial Statements (Continued)

3. Other gains and losses

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

Foreign exchange gain (loss) Net (loss) profit from financial assets measured at FVTPL: Derivatives: Embedded derivatives Non-derivative products: Stock Private equity funds Overseas bonds Profit from the disposal of property, plant and equipment Impairment losses on investments accounted for using the equity method Others Total	2024	2023 (26,440) 1,300 1,725 (289) - 29 (24,860) (22,799)
	$ 673,163 (8) 728 253 (22,810) 17 - (369)
	$ 650,974	(71,334)

4. Financial costs

The details of the financial cost of the Company are as follows:

Bank loans Lease liabilities Conversion of corporate bonds Others	2024	2023 20,857 1 12,928 -
	$ 37,850 1 6,139 2
	$ 43,992	33,786

(24) Compensation to employees and directors

In accordance with the Company’s Articles of Incorporation, no less than 2% of the Company’s annual profits shall be appropriated to the Compensation of Employees and no more than 3% 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 accrued employee compensation of NT$220,000 thousand and NT$202,700 thousand, respectively, and director compensation of NT$4,480 thousand in both years. The estimated amounts were based on the Company’s pre-tax net

~52~

Notes to the Parent Company Only Financial Statements (Continued)

income before deducting employee and director compensation, multiplied by the ratios specified in the Company’s Articles of Incorporation. These amounts were recognized as operating costs or operating expenses and were fully distributed in cash. If the actual amounts distributed in the following year differ from the estimates, the difference will be accounted for as a change in accounting estimate and recognized in the following year’s profit or loss. If the Board of Directors resolves to distribute employee compensation in the form of shares, the number of shares to be distributed will be calculated based on the closing price of the Company’s common shares on the day prior to the Board resolution.

The amount of employee compensation resolved by the Board of Directors for 2024 was consistent with the amount estimated in the 2024 financial statements. The amount of director compensation resolved by the Board differed from the estimated amount by NT$1,020 thousand, which was accounted for as a change in estimate and recognized in the 2025 profit or loss. The actual distribution of employee and director compensation for 2023 was consistent with the amounts estimated in the 2023 parent company only financial statements. Relevant information can be found on the Market Observation Post System (MOPS).

• (25) Information on financial instruments and fair value

• 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 $19,893,705,000 dollars and $13,868,548,000 dollars as of December 31, 2024 and 2023 respectively.

(2) Concentration of credit risk

In order to reduce the credit risk of accounts receivable, the 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 Company both had 7 different customers with accounts receivable balances exceeding 5% of total accounts receivable for a single customer respectively. The 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 Company applies the simplified approach to measure expected credit losses for all notes and accounts receivable, which is to estimate lifetime expected credit losses. For this purpose, notes and accounts receivable are grouped based on shared credit risk characteristics representing the customers’ ability to pay all amounts due under the contractual terms. Forward-looking information is also considered, including macroeconomic and industry-related data. The expected credit losses on the Company’s

~53~

Notes to the Parent Company Only Financial Statements (Continued)

notes and accounts receivable are analyzed as follows:

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		Dec. 31, 2024		Expected credit loss in the duration of provision 151 1,015 60 - 14 375
	Book value of notes and accounts receivable $ 8,474,293 89,250 846 - 20 375	Weighted average expected credit loss rate
		0.00% 1.14% 7.06% 30.00% 67.32% 100.00%
	$ 8,564,784			1,615

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		Dec. 31, 2023		Expected credit loss in the duration of provision 77 267 196 - - 1,771
	Book value of notes and accounts receivable $ 5,838,231 36,121 3,163 - - 1,771	Weighted average expected credit loss rate
		0.00% 0.74% 15.10% 26.37% 73.66% 100.00%
	$ 5,879,286			2,311

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

llows:
Beginning balance Recognized impairment losses (reversal gains) Write-offs for the period Ending balance	2024
	$ 1,615 2,311

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.

December 31, 2024 Non-derivative financial liabilities: Short-term loans Notes payable	Book value $ 3,730,000 6,761	Cash flow from the contract 3,770,438 6,761	Within 6 months 958,161 6,761	6 12 months 2,812,277 -	1-2years - -	2-5years - -	More than 5 years - -

~54~

Notes to the Parent Company Only Financial Statements (Continued)

Accounts payable Accounts payable—related parties Other payables Other payables—related parties December 31, 2023 Non-derivative financial liabilities: Short-term loans Bonds payable Notes payable Accounts payable Accounts payable—related parties Other payables Other payables—related parties Lease liabilities	1,777 6,204,159 423,908 7,426	1,777 6,204,159 423,908 7,426	1,777 6,204,159 423,908 7,426	- - - -	- - - -	- - - -	- - - -
	$ 10,374,031	10,414,469	7,602,192	2,812,277	-	-	-
	$ 1,580,000 850,247 5,191 2,000 3,742,662 386,979 4,356 59	1,594,090 881,900 5,191 2,000 3,742,662 386,979 4,356 60	591,019 - 5,191 2,000 3,742,662 386,979 4,356 30	1,003,071 - - - - - - 30	- - - - - - - -	- 881,900 - - - - - -	- - - - - - - -
	$ 6,571,494	6,617,238	4,732,237	1,003,101	-	881,900	-

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

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

1. Market risk—exchange rate risk

2. (1) Exposure to exchange rate risk

The Company's financial assets and liabilities exposed to significant foreign exchange risks are as follows:

	Financial assets Currency USD RMB HKD JPY EUR INR VND Long-term equity investment accounted for using the equity method USD EUR VND Financial liabilities Currency USD RMB EUR VND THB		Dec. 31, 2024	Dec. 31, 2024	NTD 17,319,330 1,627,858 93 2 209,581 2 2 21,240,973 5,046 2,819,292 5,829,445 645,187 9,380 36 118
		$ $	Foreign currency 528,270 363,523 22 10 6,139 4 1,300 647,887 148 2,168,686,160 177,808 144,079 275 27,598 123	Exchang e rate 32.7850 4.4780 4.2220 0.2099 34.1400 0.4791 0.0013 32.7850 34.1400 0.0013 32.7850 4.4780 34.1400 0.0013 0.9623

~55~

Notes to the Parent Company Only Financial Statements (Continued)

	Financial assets Currency USD RMB HKD JPY EUR INR VND Long-term equity investment accounted for using the equity method USD EUR VND Financial liabilities Currency USD RMB JPY VND		Dec. 31, 2023	Dec. 31, 2023	NTD 13,103,946 602,703 87 32 104,133 2 2 16,627,615 4,744 1,894,288 3,965,580 393 16,924 84
		$ $	Foreign currency 426,769 139,289 22 149 3,065 4 1,630 541,528 140 1,578,573,492 129,151 91 498 70,314	Exchang e rate 30.7050 4.3270 3.9290 0.2172 33.9800 0.4791 0.0012 30.7050 33.9800 0.0012 30.7050 4.3270 33.9800 0.0012

~56~

Notes to the Parent Company Only Financial Statements (Continued)

Because the Company has a wide range of functional currencies, it has adopted a consolidated approach to disclose exchange gain or loss on monetary items, with foreign currency exchange profit and loss (realized and unrealized) of profit of $673,163,000 dollars and loss of $26,440,000 dollars for the years ended 2024 and 2023 respectively.

(2) Sensitivity analysis

The Company’s exchange rate risk primarily comes from foreign currency-denominated cash and cash equivalents, financial assets measured at FVTPL, accounts receivable and other receivables, loans, accounts payable and other payables, resulting into gains and losses of conversion of foreign currency when exchanging. As of December 31, 2024 and 2023, if NTD had depreciated or appreciated by 1% relative to foreign currencies held by the Company and all other factors remained constant, net income would have increased or decreased by $101,382,000 dollars and $78,623,000 dollars respectively for 2024 and 2023. The same basis is used for both phases of analysis.

4. Market risk—changes in interest rates

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

The following Sensitivity analysis was determined based on the interest rate risk of the financial instruments on the reporting date. For floating-rate liabilities, the analysis is based on the assumption that the amount of the liability outstanding at the reporting date is outstanding for the entire year. The rate of change used in the Company’s internal reporting of interest rates to key management is a 1% increase or decrease in interest rates, which also represents management’s assessment of the range of reasonably possible changes in interest rates.

The Company’s financial assets with variable interest rates as of December 31, 2024 and 2023 were $2,100,833,000 dollars and $460,334,000 dollars respectively, and financial liabilities were both $0. If interest rates had increased or decreased by 1%, the Company’s net income after tax would have increased or decreased by $16,807,000 dollars and decreased or increased by $3,683,000 dollars for 2024 and 2023, respectively, with all other variables held constant.

5. Market risk - fair value

(1) Fair value and carrying amount

The Company’s management believes that the fair value of non-derivative short-term financial instruments shall be estimated using their book value on the balance sheet because of the near maturity of such instruments and their book value should be a reasonable basis for estimating fair value. This method is applied to cash and cash

~57~

Notes to the Parent Company Only Financial Statements (Continued)

equivalents, notes receivable and notes payable, accounts receivable and accounts payable, other receivables and other payables, deposit margin and loans.

In addition to the aforementioned financial instruments, the fair value and book value of the remaining financial instruments, investment property, and payable corporate bonds of the Company as of the reporting date are as follows:

Dec. 31, 2024 Book value Fairvalue Measured at fair value: Financial assets: Financial assets measured at FVTPL $ 230,008 230,008 Financial assets measured at FVTOCI 103,716 103,716 Not measured at fair value: Non-financial assets: Investment property $ 216,733 227,330 Financial liabilities Corporate bonds payable - -	Dec. 31, 2023 Book value Fairvalue 34,223 34,223 1,144 1,144 221,387 236,930 850,247 851,210
	Book value 34,223 1,144 221,387 850,247

• (2) The evaluation techniques used to determine fair value are as follows

• A. If there is an active market for a financial asset, the fair value is based on the market price. If market prices are not available, quoted prices from counterparties or estimates using valuation techniques are used. The estimates and assumptions used are consistent with those used by market participants in pricing financial instruments.

• B. The fair value of investment properties is based on 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 levels of financial instruments,

• investment properties, and payable corporate bonds by valuation method. Each fair value level is defined as follows:

• A. Level 1: Publicly quoted prices (unadjusted) in an active market for identical assets or liabilities.

• B. Level 2: Besides the public quotations included in Level 1, the input parameters for assets or liabilities are directly (i.e., price) or indirectly (i.e., derived from price) observable.

• C. Level 3: Input parameters for an asset or liability are not based on observable market

~58~

Notes to the Parent Company Only Financial Statements (Continued)

information (non-observable parameters).

December 31, 2024 Measured at fair value: Financial assets measured at FVTPL Financial assets measured at FVTOCI Not measured at fair value: Investment property December 31, 2023 Measured at fair value: Financial assets measured at FVTPL Financial assets measured at FVTOCI Not measured at fair value: Investment property Bonds payable	Level 1 $ - -		Level 2 - -		Level 3 230,008 103,716		Total 230,008 103,716
	$ -		-		333,724		333,724
	$ -		-		227,330		227,330
	$ - -		7,307 -		26,916 1,144		34,223 1,144
	$ -		7,307		28,060		35,367
	$ -		-		236,930		236,930
	$ -		-		851,210		851,210

(4) Transfers between Level 1 and Level 2

There were no transfers between Level 1 and Level 2 in the fiscal years 2024 and 2023.

(5) Table of changes in financial assets classified as Level 3 at FVTPL

Unit: NT$ 1,000

Name								2024						Closing balance 230,008 103,716
	$	Opening balance 26,916 1,144		Total profit		or loss Recognized in other comprehensi ve income - (2,884)		Increase in	th	e period Transfers into Level 3 - -		Decrease in the period Sale, disposal or settlement (2,197) (2,544)
				Recognized in profit or loss (17,712) -				Issuance or purchase 223,001 108,000
Financial assets measured at FVTPL Financial assets measured at FVTOCI Name
	$	28,060		(17,712)		(2,884)		331,001		-		(4,741)		333,724
								2023						Closing balance 26,916 1,144
	$	Opening balance - 4,595		Total profit		or loss		Increase in	th	e period Transfers into Level 3 - -		Decrease in the period Sale, disposal or settlement (295) (7,433)
				Recognized in profit or loss 1,011 -		Recognized in other comprehensi ve income - 3,982		Issuance or purchase 26,200 -
Financial assets measured at FVTPL Financial assets measured at FVTOCI
	$	4,595		1,011		3,982		26,200		-		(7,728)		28,060

~59~

Notes to the Parent Company Only Financial Statements (Continued)

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) on financial assets at FVTOCI”) Total	2024 $ (17,704) (4,299)	2023 857 (154) 703
	$ (22,003)

• (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:

Item Financial assets measured at FVTPL - Embedded derivatives - right of redemption Financial assets measured at FVTPL - investment in private equity fund Financial assets measured at FVTOCI - investment in equity instruments with no active market	Valuation techniques Binary tree method for pricing convertible bond Net asset value approach Comparable Company Analysis	Significant unobservable inputs ‧Volatility as of December 31, 2023, was 36.41% ‧Net asset value ‧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	Relationship between significant unobservable inputs and fair value
			‧The higher the volatility, the higher the fair value ‧Higher net asset value leads to higher fair value ‧The higher the multiplier, the higher the fair value ‧The higher the discount for lack of marketability, the lower the fair value

~60~

Notes to the Parent Company Only Financial Statements (Continued)

discount as of December 31, 2024, and December 31, 2023, were 15.60% and 15.70%, respectively

Financial assets Net asset value measured at approach FVTOCI - investment in equity instruments with no active market

‧Net asset value

‧The fair value is positively correlated

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

The 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:

e period is as follows:
December 31, 2024 Financial assets measured at FVTOCI Investments in equity instruments with no active market December 31, 2023 Financial assets measured at FVTPL Embedded derivatives - right of redemption Financial assets measured at FVTOCI Investments in equity instruments with no active market	Input value	Upward or downward changes	Fair value changes reflected in profit or loss for the period		Fair value changes reflected in other comprehensive income Favorable changes Unfavorab le changes 54 (48) 62 (56) - - - - 1 (2) 1 (2)
			Favorable changes	Unfavorab le changes	Favorable changes
	Net market value multiplier Lack of marketability discount Volatility Stock price Net market value multiplier Lack of marketability discount	1% 1% 5% 10% 7% 7%	$ - - 265 1,587 - -	- - (970) (970) - -	54 62 - - 1 1

~61~

Notes to the Parent Company Only Financial Statements (Continued)

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.

(26) Financial risk management

1. The 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 Company’s risk information for each of these risks and the Company’s objectives, policies and procedures for measuring and managing risk. For further quantitative disclosures, please refer to the respective notes to the parent company only financial statements.

1. Risk management structure

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

The Company’s risk management policy is designed to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor compliance with the risks and risk limits. The 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 Company oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the appropriateness of the Company’s risk management framework in relation to the risks it is exposed to. Internal auditors assist the 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 Company’s customers or counterparties to fulfill their contractual obligations, mainly from the Company’s accounts receivable from customers and investments in securities.

(1)Accounts receivable and other receivables

The Company’s credit risk exposures are primarily depended on each customer’s individual circumstances. However, management also considers statistical information about the Company’s customer base, including the risk of default in the customer’s

~62~

Notes to the Parent Company Only Financial Statements (Continued)

industry and country, as these factors may affect credit risk. Approximately 67% and 71% of the 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 Company has established a credit policy whereby the 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 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 Company maintains a Provisions account to reflect estimates of losses on accounts receivable and other receivables.

• (2) Use of funds

The 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 Company’s finance department. Since the 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.

1. Liquidity risk

Liquidity risk is the risk that the 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 Company’s approach to manage liquidity risk is to ensure that the 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 loss or damage to the Company’s reputation. In addition, the Company has entered into unused borrowing lines totaling $2,589,625,000 and $2,167,625,000, 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 Company’s revenue or the value of financial instruments held by the Company. The objective of market risk management is to manage the exposure to market risk to an acceptable level and to

~63~

Notes to the Parent Company Only Financial Statements (Continued)

optimize investment returns.

The 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 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 the Company’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 Company reduce, but still not completely eliminate, the impact of changes in foreign currency exchange rates.

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

(2) Interest rate risk

The 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:

Price of securities on reporting date Up by 1% Down by1%
	Other comprehensiv e income after tax $ 1,037						Other comprehensi ve income after tax 11
	$ (1,037)			(600)					(11)

(27) 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 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 Company may adjust dividends paid to shareholders, reduce capital to refund shareholders, issue new shares or sell assets to settle liabilities.

The 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

~64~

Notes to the Parent Company Only Financial Statements (Continued)

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 $ 11,962,430 (11,074,514)	Dec. 31, 2024 $ 11,962,430 (11,074,514)		Dec. 31, 2023 7,651,203 (7,936,834) (285,631) 27,773,059 (1.04)%
	$ 887,916
	$ 35,970,017
		2.41%

• (28) Non-cash investment and financing activities

The information on non-cash investment and financing activities of the Company in 2024 and 2023 is as follows:

1. For the conversion of corporate bonds into common shares, see Note VI (12).

2. For obtaining right-of-use assets through leasing, see Note VI (7) and (13).

The Company's adjustments to liabilities from financing activities in 2024 and 2023 are as shown in the following table:

Short-term loans Bonds payable Lease liabilities Total liabilities from financing activities Short-term loans Bonds payable Long-term loans (including long-term loans due within one year or one operating cycle) Lease liabilities Total liabilities from financing activities	Jan. 1, 2024 Cash flow $ 1,580,000 2,150,000 850,247 - 59 (60)	Non-cash changes Other Changes in exchange rate Changes in fair value Dec. 31, 2024 - - - 3,730,000 (850,247) - - - 1 - - -
	$ 2,430,306 2,149,940	(850,246) - - 3,730,000
	Jan. 1, 2023 Cash flow $ 1,830,000 (250,000) - 1,079,878 126,175 (126,175) - (60)	Non-cash changes Other Changes in exchange rate Changes in fair value Dec. 31, 2023 - - - 1,580,000 (229,631) - - 850,247 - - - - 119 - - 59
	$ 1,956,175 703,643	(229,512) - - 2,430,306

~65~

Notes to the Parent Company Only Financial Statements (Continued)

VII. Related Party Transactions

• (1) Parent company and ultimate controller: The Company is the ultimate controller of the Company and the 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 parent company only financial statements are as follows:

Name of related parties

Relationship with the Company

Lotes Investments Limited Good Hope Investments Limited Guansi Development Co., Ltd. Zhaxi Investment Co., Ltd. Jiayu Investment Co., Ltd. Lotes USA, Inc. LOTES EU GmbH Lomites Co., Ltd LOTES VIET NAM COMPANY LIMITED Loteson International Investments Limited Lotes Guangzhou Co., Ltd. Lotes Hengnan Co., Ltd. Shenzhen DeYi Automation Equipment Co., Ltd. Lotes Zhongshan Co., Ltd. Zhongshan DeZhi Real Estate Development Co., Ltd. Zhongshan Dezhi Metal Surface Treatment Co., Ltd. Zhongshan Jinmeida Metal Surface Treatment Co., Ltd. Guangzhou Leside Technology Co., Ltd. Chongqing Fuxinrui Electronic Technology Co., Ltd. Hengnan Deyi Property Development Co., Ltd. Guangzhou Dezhi Technology Co., Ltd. ZhongShan HuiXing Electronics Co., Ltd. HuiLi Electronics Technology (Ningbo) Co., Ltd. Xincheng Development Co., Ltd. REKA Technology Co., Ltd.

A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company

~66~

Notes to the Parent Company Only Financial Statements (Continued)

Jae You Co., Ltd. A subsidiary of the Company Lotes Suzhou Co., Ltd. A subsidiary of the Company Wangden Investments Limited A subsidiary of the Company Zongka Technology (Shenzhen) Co., Ltd. A subsidiary of the Company Ememe Robot Co., Ltd. A subsidiary of the Company Compertum Microsystems Inc. A subsidiary of the Company Good News Medical Co., Ltd. A subsidiary of the Company FELCITY NEWS LIMITED A subsidiary of the Company Jia Shi Mei (Guangzhou) Trading Co., Ltd. A subsidiary of the Company Lintes Technology Co., Ltd. A subsidiary of the Company Jilong Co., Ltd. A subsidiary of the Company Rihui Co., Ltd. A subsidiary of the Company Lintes Technology (Suzhou) Co., Ltd. A subsidiary of the Company Genie Precision Machine Co., Ltd. A subsidiary of the Company LINTES TECHNOLOGY (THAILAND) CO.,LTD A subsidiary of the Company Lerain Technology Co., Ltd. An associate of the Company I-See Vision Technology Inc. An associate of the Company AionChip Technologies CO., LTD. An associate of the Company Key management personnel Including the directors, supervisors, managers and their families and spouses

• (3) Material transactions with the related parties

• Operating revenue

The amounts of material sales from the Company to the related parties are as follows:

Guangzhou Leside Technology Co., Ltd. Other subsidiaries	2024 $ 797,530 36,612 834,142	2023 - 61,291 61,291 122,582
	$ 1,668,284

The terms of sale of the Company to a subsidiary of the Company are not significantly different from the normal sales price. Their collection periods are all three to four months. Receivables from related parties are not covered by collateral.

2. Purchase

The amounts of goods purchased by the Company from the related parties are as follows:

Xincheng Development Co., Ltd. REKA Technology Co., Ltd. LOTES VIET NAM COMPANY LIMITED	2024 $ 1,431,309 10,988,671 569,206	2023 1,316,107 9,413,378 -

~67~

Notes to the Parent Company Only Financial Statements (Continued)

Lotes Zhongshan Co., Ltd. Other subsidiaries Associates	431,785 - 269,556 61,377 47 69 $ 13,690,574 10,790,931

The Company’s purchase price to the above company is not significantly different from the Company’s purchase price to general suppliers. The payment terms are three months, which are not significantly different from those of general suppliers.

3. Accounts receivable from related parties

The details of the accounts receivable from related parties are as follows:

Accounting item	Type of related party		Dec. 31, 2024	Dec. 31, 2023
Accounts receivable	Guangzhou Leside Technology	$	794,780	-
	Co., Ltd.
Accounts receivable	REKA Technology Co., Ltd.		7,342	35,535
Accounts receivable	Compertum Microsystems Inc.		3,838	-
Accounts receivable	Other subsidiaries		46	168
Other receivables	Ememe Robot Co., Ltd.		-	2,272
Other receivables	Other subsidiaries		-	3
Allowance for losses Ememe Robot Co., Ltd.			-	(2,272)
		$	806,006	35,706
. Accounts payable from related parties
The details of the accounts payable from related parties are as follows:
Accounting item	Type of related party		Dec. 31, 2024	Dec. 31, 2023
Accounts payable	Xincheng Development Co., Ltd.	$	258,256	211,845
Accounts payable	REKA Technology Co., Ltd.		4,967,844	3,499,107
Accounts payable	Lotes Zhongshan Co., Ltd.		429,806	-
Accounts payable	Other subsidiaries		548,220	31,661
Accounts payable	Associates		33	49
Other payables	Other subsidiaries		7,426	4,347
Other payables	Associates		-	9
		$	6,211,585	3,747,018

4. Accounts payable from related parties

5. Endorsement

The balance and details of the endorsement and guarantee provided by the Company to the related parties are as follows:

Lotes Guangzhou Co., Ltd. LOTES VIET NAM COMPANY LIMITED	Dec. 31, 2024 $ 163,925 163,925	Dec. 31, 2023 153,525 -

~68~

Notes to the Parent Company Only Financial Statements (Continued)

6. Promotion expense Other subsidiaries Associates	$ 327,850	153,525 2023 3,682 - 3,682
	2024 $ 4,193 85
	$ 4,278

Primarily consists of design service fees and material costs.

1. Administration expense

Other subsidiaries Associates	2024 $ 78,319 22	2023 66,404 - 66,404
	$ 78,341

Primarily consists of service fees.

1. R&D expense

Other subsidiaries Associates Mainly for research and development materials. . Non-operating income Other subsidiaries Associates	2024 $ 11 4	2023 - 54 54 2023 3,239 416 3,655
	$ 15
	2024 $ 6,878 147
	$ 7,025

1. Non-operating income

Mainly includes rental income from parking spaces and office premises, interest income from loans to subsidiaries, gains on disposal of equipment, and others.

1. Lease liabilities and right-of-use assets

The Company leases warehouses from major management personnel and enters into

one-year lease contracts with a total value of $60,000,000 with reference to the neighboring warehouse rental quotes. The interest expenses of $1,000 and $1,000 were

respectively recognized in 2024 and 2023, and the balance of Lease liabilities as of December 31, 2024 and 2023 were respectively $0 and $59,000.

(4) Major management personnel transactions

Related compensation includes:

Short-term employee benefits

2024 2023 $ 53,606 79,012

~69~

Notes to the Parent Company Only Financial Statements (Continued)

Post-employment benefits Share-based payment	934 880 - 7,970
	$ 54,540 87,862

Please refer to Note 6(20) for details on share-based compensation.

VIII. Pledged Assets

The details of the book value of the assets provided as collateral by the Company are as follows:

	Asset name	Collateral subject	Dec. 31, 2024 $ 40,103 159,288 $ 199,391	Dec. 31, 2023 41,006 163,254 204,260
	Property, plant, and equipment (Note) Investment property (Note)	Bank loan Bank loan

Note: Some loan contracts have expired and are no longer renewed. The Company has obtained bank repayment certificates but has not yet cancelled the collateral registration procedures.

IX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

(1) Significant unrecognized contractual commitments:

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

commitments were as follows:
	Unit: Foreign currency 1,000
	Dec. 31, 2024
Amounts contracted for significant factory construction	$ 415,864
Private equity fund contractual commitments	$ 10,000

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

Guaranteed notes	Dec. 31, 2024 $ 3,650,765	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.

~70~

Notes to the Parent Company Only Financial Statements (Continued)

X. Significant Disaster Loss: None.

XI. Significant Post-Period Events: None.

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	21,030 1,527 542 - 2,364 271 2	376,601 16,052 8,051 5,213 15,446 11,783 22,137	397,631 17,579 8,593 5,213 17,810 12,054 22,139	30,331 1,539 591 - 2,084 238 12	395,649 14,977 8,079 4,657 13,143 11,728 22,050	425,980 16,516 8,670 4,657 15,227 11,966 22,062

Additional information on the number of employees and employee benefit costs for 2024 and 2023 is as follows:

Number of employees Number of directors who were not employees of the Company Average employee benefit expenses Average employee salary expenses Adjustment of average employee salary expenses Remuneration for supervisors	2024 162	2024 162	2023 158
	5		5
	$ 2,813		3,048
	$ 2,533		2,784
		(9.02)%	-
		-

Information on the Company’s remuneration policy (including the policy for the remuneration of directors, managers and employees) is as follows:

1. Remuneration for directors is paid in accordance with the Company’s remuneration policy for directors.

2. The bonuses and dividends for managers and employees are based on the Company’s operating conditions, personal duties and performance.

3. The salaries of the directors and supervisors are adjusted in a timely manner to meet their responsibilities.

~71~

Notes to the Parent Company Only Financial Statements (Continued)

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 significant transactions in 2024:

1. Capital lending to others:

Unit: NT$1,000

No.	Lender	Borrower	Item	Related party	Max amount for the period	Closing balance	Actual amount	Interest rate	Nature of the lending (Note 1)	Transaction 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 TECHNOLO GY (THAILAND ) CO.,LTD	Other receivable s - related parties Other receivable s Other receivable s	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:

• (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.

~72~

Notes to the Parent Company Only Financial Statements (Continued)

2. Endorsement:

Unit: NT$/Foreign currency 1,000

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	Yes 〞 No Yes	No 〞 〞 〞	Yes No 〞 〞

• 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 。

  • 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.

~73~

Notes to the Parent Company Only Financial Statements (Continued)

1. 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 the period	End of the period	End of the period		Remark
				Shares	Book value	Shareholding ratio	Fair value
Lotes Co., Ltd. 〞 〞 〞 〞 〞 〞 〞 Jiayu Investment Co., Ltd. 〞 〞 〞 〞 Lintes Technology 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 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	None 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Financial assets measured at FVTPL – non-current 〞 〞 〞 〞 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 〞	- - 3,100,000 2,000,000 1,000,000 300,000 9,000,000 900,000 392,815 1,088,719 1,368,800 1,169,977 400,000 1,965,000 1,665,000	50,092 9,872 84,711 56,049 29,284 15 87,825 15,876 17,716 28,633 - - - 56,297 58,991	- - - - - 8.36 % 4.57 % 1.58 % 1.31 % 2.87 % 3.77 % 17.33 % 5.33 % - -	50,092 9,872 84,711 56,049 29,284 15 87,825 15,876 17,716 28,633 - - - 56,297 58,991	Note Note

~74~

Notes to the Parent Company Only Financial Statements (Continued)

Holding company	Category and name of security	Relationship with the issuer of the security	Accounting item		End of the	period		Remark
				Shares	Book value	Shareholding ratio	Fair value
Lintes Technology Co., Ltd. 〞 〞 〞	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 FVTPL – current Financial assets measured at FVTOCI - non-current 〞 〞	820,000 512,000 300,000 225,000	28,930 50,227 28,560 3,969	- 0.34 % 0.60 % 0.39 %	28,930 50,227 28,560 3,969

Note: All of them were recognized in losses.

1. 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/ Foreign currency 1,000

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Natur e of Relati onshi p	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/ Loss on Dispos al	Shares	Amount
Lotes Co., Ltd. Lintes Technology Co., Ltd.	LOTES VIET NAM COMPANYLI MITED LINTES TECHNOLOG Y (THAILAND) CO.,LTD	Investments accounted for using equity method Investments accounted for using equity method	LOTES VIET NAM COMPANYLI MITED LINTES TECHNOLOG Y (THAILAND) CO.,LTD	Note 2 Note 2	74,629,000 38,600,000	2,446,711 (USD74,629) 371,759 (THB322,000 USD1,888)	17,100,000 15,500,000	560,624 (USD17,100) 147,295 (THB77,500 USD2,218)	- -	- -	- -	- -	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.

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

Unit: NT$ 1,000

The company which acquired the property	Name of asset	Date of occurrence	Amount of transaction (Note 2)	Payment condition (Note 2)	Counterparty of transaction	Relations hip	If the counterparty is a related party, the information of itsprevious transfer shall beprovided	If the counterparty is a related party, the information of itsprevious transfer shall beprovided	If the counterparty is a related party, the information of itsprevious transfer shall beprovided	If the counterparty is a related party, the information of itsprevious transfer shall beprovided	Reference for pricing c	Purpose of the acquisition and the ondition of use	Other agreed matters
							Owner	Relationship with the issuer	Date of transfer	Amount
Lotes Co., Ltd. Lintes Technology Co., Ltd.	No. 368, Section 1, Yucheng Section, Nangang District, Taipei City No. 1336, Zhonggong Section, and Building No. 73, Zhongli District, Taoyuan City	2024.12.09 2024.11.15	452,680 580,000	45,268 Note 1	KWANG MING SILK MILL CO., LTD. ITEST HIGH TECH CORP.	None None	- -	- -	- -	- -	Based on nearby market prices and expert valuation reports R b e a p With reference to market prices and expert valuation reports F d a p c p	equired for usiness xpansion nd capacity lanning or business evelopment nd roduction apacity lanning	None "

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).

1. Disposal of real property amounting to NT$300 million or 20% or more of paid-in capital: None.

~75~

Notes to the Parent Company Only Financial Statements (Continued)

1. 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. 〞 〞 〞 〞 〞 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. 〞	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. 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 〞 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 Subsidiary The surrogate parent company are the same company 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Subsidiary The surrogate parent company are the same company 〞 〞 〞 〞 〞 〞 〞 Subsidiary 〞 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 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	1,431,309 1,513,700 10,988,671 6,897,904 930,724 1,206,159 216,744 7,179,745 1,573,110 196,621 267,622 196,876 310,076 440,919 129,288 855,954 215,673 105,070 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	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 % 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 90 days EOM 120 days EOM 90 days 〞 〞 EOM 120 days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	No significant difference 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 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) 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	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)% 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%

~76~

Notes to the Parent Company Only Financial Statements (Continued)

1. 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
The Company Xincheng Development Co., Ltd. REKA Technology Co., Ltd. 〞 〞 〞 〞 〞 Lotes Suzhou Co., Ltd. Good Hope Investments Limited Lotes Guangzhou Co., Ltd. 〞 〞 Lotes Zhongshan Co., Ltd. 〞 〞 〞 〞 Lotes Hengnan Co., Ltd. Lotes Hengnan Co., Ltd. 〞 〞 〞 Guangzhou Leside Technology Co., Ltd. 〞 Lintes Technology (Suzhou) Co., Ltd. LOTES VIET NAM COMPANY LIMITED 〞	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. 〞 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.	Ultimate 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 The surrogate parent company are the same parent company 〞 〞 〞 〞 〞 〞 Subsidiary The surrogate parent company are the same parent company	794,780 258,256 4,967,844 472,247 713,239 218,357 197,198 204,500 294,738 1,013,746 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	2.01 6.09 2.60 2.50 - - 3.37 1.47 5.70 - 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	- - - - - - - - - - - - - - - - - - - - - - - - - 312,033 - -	Ongoing collection	- 256,867 2,391,254 192,101 223,895 - 191,298 49,115 294,738 - 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 - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - -

1. Engagement in derivative transactions: None.

~77~

Notes to the Parent Company Only Financial Statements (Continued)

(2) Information on reinvestment business:

The Company’s investments in 2024, excluding those in Mainland China, include the

following:

Unit: NT$ 1,000

Name of the company investing	Name of investee company	Location	Main business	Original investment amount (Note 1)	Original investment amount (Note 1)	Shares held a	t the end of	the period	Gain/loss of investee company in the fiscal period	Gain/loss in the investment recognized in the fiscal period	Remark
				End of the period	End of the previous year	Shares	Ratio	Book value
The Company 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Lotes Investment Ltd. Good Hope Investments Limited 〞 Guansi Development Co., Ltd. Zhaxi Investment 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	Samoa 〞 〞 Anguilla Taiwan America Germany Taiwan 〞 〞 〞 Vietnam Hong Kong Samoa Hong Kong 〞 〞	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	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	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	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	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%	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	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	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	Note 2 Note 2 Note 2

~78~

Notes to the Parent Company Only Financial Statements (Continued)

Jiayu Investment Co., Ltd. 〞 〞 〞 Good News Medical Co., Ltd. Lintes Technology Co., Ltd. 〞 〞 〞 〞 〞 Jilong Co., Ltd.	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.	Taiwan 〞 〞 〞 BVI Taiwan 〞 〞 〞 Samoa Thailand Samoa	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	69,600 77,852 9,552 746,361 1,082 164,833 25,938 5,471 11,764 162,286 519,054 162,286	69,600 60,866 6,360 616,859 1,082 164,833 20,279 5,471 - 162,286 371,759 162,286	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	94.37% 30.48% 27.29% 48.32% 100.00% 60.00% 10.16% 1.82% 3.24% 100.00% 100.00% 100.00%	316 11,689 3,118 1,745,770 1,009 110,798 3,894 3,961 9,384 757,472 454,882 757,472	9,007 (53,543) (6,242) 343,161 (64) (114,900) (53,543) 22,858 (60,831) 169,034 (59,074) 169,034	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 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.

~79~

Notes to the Parent Company Only Financial Statements (Continued)

(3) Investment in China:

1. 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 fiscalperiod	Investment income remitted back to Taiwan by the end of the fiscal period
					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. HuiLi Electronics Technology (Ningbo) Co., Ltd. Jia Shi Mei (Guangzhou) 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%	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.

~80~

Notes to the Parent Company Only 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. Others

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.

1. 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
LotesCo.,Ltd.	$1,507,758thousand	$1,662,566thousand	$21,582,010thousand
Lintes Technology Co.,Ltd.	$162,286 thousand	$162,286 thousand	$2,167,707 thousand
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.

3. Significant transactions with the investee companies in China:

In 2024, the Company had direct or indirect significant transactions with investee companies in mainland China (which were eliminated during the preparation of consolidated financial statements). For details, please refer to the section “Major transaction details” and the “Business relationships and material transactions between parent and subsidiaries” in the 2024 Consolidated Financial Statements.

~81~

Notes to the Parent Company Only 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

Please refer to the consolidated financial statements for 2024.

~82~

Lotes Co., Ltd.

Statement of Cash and Cash Equivalents

December 31, 2024 Unit: NT$ 1,000

Item	Summary	Amount $ 82 624,508 1,478,203 2,102,711 50 8,971,671 8,971,721 $ 11,074,514
Cash and cash equivalents: Petty cash Checks and demand deposits: Time deposit: Total	NTD Foreign currency (USD41,475,640.16, HKD20,700.31, JPY9,658.00, EUR699,836.74, RMB21,090,211.06 and THB1.67) NTD Due date: 2025.02.19 Interest rate range: 1.575% Foreign currency (USD264,787,799, RMB34,400,000 and EUR4,000,000) Due date: 2025.01.06~2025.06.06 Interest rate range: 1.80%~4.91%

~83~

Lotes Co., Ltd.

Statement of Notes Receivable

December 31, 2024

Unit: NT$ 1,000

Item	Summary	Amount $ 701 478 187 249 $ 1,615
Non-related parties: A company B company C company Other (Note)

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

Statement of Accounts Receivable

Item	Summary	Amount $ 806,006 $ 878,881 750,672 627,679 547,514 489,915 442,684 388,947 3,630,871 (1,615) $ 7,755,548
Accounts receivable - related parties Non-related parties: D company E company F company G company H company I company J company Other (Note) Less: allowance for losses

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

~84~

Lotes Co., Ltd.

Statement of Other Receivables

December 31, 2024

Unit: NT$ 1,000

Item	Summary Primarily receivables from mold opening income	Amount $ 23,422 62,627 257
Non-related parties: Business tax credit and tax refund Other receivables - interest Other Subtotal Less: allowance for losses
		86,306 (246)
		$ 86,060

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

Statement of Inventories

Item Merchandises Finished goods Work in process Raw materials Subtotal Less: Allowance for decline in value of inventories and doubtful losses	Amount $ 1,137,392 3,584 - 16	Market price 1,660,470 641 - - 1,661,111
	1,140,992 (71,111)
	$ 1,069,881

Note: Allowance for decline in value of inventories and allowance for doubtful accounts is based on the lower of cost or net realizable value and the ageing of inventories, respectively.

~85~

Lotes Co., Ltd.

Statement of Prepayments

December 31, 2024

Unit: NT$ 1,000

Item	Summary Mainly prepayment of annual association fee Mainly prepayment of product certification fee Mainly prepayment of insurance Primarily prepaid business tax Mainly prepayment of miscellaneous expenses, etc.	Amount $ 830 2,500 1,472 2,910 997 $ 8,709
Prepayment of membership fee Prepayment Prepayment of insurance Prepaid import business tax Other (Note) Total

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

Statement of Changes in Financial Assets Measured at FVTPL - Non-Current >From January 1 to December 31, 2024

Unit: Face value in thousands / NT$1,000

Name of financial instruments	Beginning of theperiod	Beginning of theperiod	Increa	se in theperiod	Decrea	se in theperiod	Ending	of theperiod	Provision of guarantees orpledges	Remark
	Shares	Fair value	Shares	Amount - 188,001 35,253	Shares	Amount (2,205) (17,957) -	Shares	Fair value - 170,044 59,964
Redemption rights of convertible bonds Overseas bonds Private equity funds	- - -	$ 2,205 - 24,711	- 6,100 -		- - -		- - -		None " "
		$ 26,916		223,254		(20,162)		230,008

~86~

Lotes Co., Ltd.

Statement of Changes in Financial Assets Measured at FVTOCI - Non-Current

>From January 1 to December 31, 2024

Unit: 1,000 Shares/NT$ 1,000

Name	Beginning of theperiod	Beginning of theperiod	Increase in	theperiod	Decrease in the period (Note)	Decrease in the period (Note)	Ending	of theperiod	Accumulated impairment - - - -	Provision of guarantees orpledges	Remark
	Shares	Fair value	Shares	Amount - - 90,000 18,000	Shares	Amount (1,129) - (2,175) (2,124)	Shares	Fair value - 15 87,825 15,876
SteadyBeat Technology Corporation G-sau Co., Ltd Phoenix Six Innovation Technology Venture Capital Corp. UPBEAT TECHNOLOGY Co., Ltd.	212 300 - -	$ 1,129 15 - -	- - 9,000,000 900,000		(212) - - -		- 300 9,000,000 900,000			None " " "
		$ 1,144		108,000		(5,428)		103,716	-

Note: The amount includes NT$2,544 thousand from the disposal during the period and an unrealized loss of NT$2,884 thousand on financial assets measured at fair value through other comprehensive income.

~87~

Lotes Co., Ltd.

Statement of Changes in Investment Accounted for Using the

Equity Method

From January 1 to December 31, 2024

Unit: NT$ 1,000

Name	Opening balance	Opening balance	Increase in the period (Note 1)	Increase in the period (Note 1)	Decrease in the period (Note 1)	Decrease in the period (Note 1)	Closing balance	Closing balance		Market value or net equity	Market value or net equity	Provision of guarantees or pledges	Remar k
	Shares Amount		Shares	Amount 2,951,411 303,117 1,293,618 54,881 318,568 10,332 302 3,725 - 925,004 - 78,233	Shares	Amount - - - - - - - - 23,330 - 20,455 -	Shares	Shareholdin g %	Amount 12,901,369 2,338,976 5,645,231 256,566 1,811,958 98,832 5,046 34,259 60,034 2,819,292 27,211 78,233
										Unitprice	Totalprice 12,901,369 2,338,976 5,645,231 256,566 1,811,958 98,832 5,046 34,259 60,034 2,819,292 27,211 78,233
												None 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞
Lotes Investment Limited Good Hope Investments Limited Guansi Development Co., Ltd. Zaxi Investment Co., Ltd. Jiayu Investment Co., Ltd. Lotes USA. Inc. LOTES EU Gmbh Lerain Technology Co., Ltd. Lomites Co., Ltd LOTES VIET NAM COMPANY LIMITED I-See Vision Technology Inc. AionChip Technologies CO., LTD.	26,050,000 $ 9,949,958 401,281 2,035,859 20,016,426 4,351,613 500,000 201,685 72,300,000 1,493,390 2,500,000 88,500 100,000 4,744 4,732,059 30,534 12,380,000 83,364 74,629,000 1,894,288 9,400,000 47,666 - - $ 20,181,601		- - - - 22,000,000 - - - 100,000 17,100,000 - 5,264,980		- - - - - - - - - - 4,700,000 -		26,050,000 401,281 20,016,426 500,000 94,300,000 2,500,000 100,000 4,732,059 12,480,000 91,729,000 4,700,000 5,264,980	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 15.74% 99.84% 100.00% 21.01% 26.32%		- - - - - - - - - - - -
		$ 20,181,601		5,939,191		43,785			26,077,007		26,077,007

Note 1: The amount includes an additional investment of NT$824,023 thousand during the period, receipt of cash dividends from subsidiaries totaling NT$129,080 thousand, recognition of investment income of NT$4,237,150 thousand, recognition of cumulative translation adjustment increase of NT$868,885 thousand, recognition of capital surplus increase of investees under the equity method of NT$90,994 thousand, recognition of unrealized loss on financial assets under the equity method of NT$246 thousand, and recognition of unearned employee compensation under the equity method of NT$3,680 thousand.

~88~

Lotes Co., Ltd.

Statement of Deferred Tax Assets

December 31, 2024

Unit: NT$ 1,000

Item Deferred tax assets	Summary	Amount $ 136,523

Statement of Other Non-Current Assets

Item Refundable deposits Prepayment for construction work Prepaid housing payment	Summary	Amount $ 6,027 7,248 47,368
		$ 60,643

~89~

Lotes Co., Ltd.

Statement of Short-Term Borrowings

December 31, 2024

Unit: NT$ 1,000

Type Description Credit loan E.SUN Bank Credit loan CTBC Bank Credit loan Bank SinoPac Credit loan Hua Nan Bank Credit loan Fubon Bank Credit loan Mega International Commercial Bank Dividend loan Hua Nan Bank	Closing balance Period $ - 2024.08.13~ 2025.08.13 - 2024.08.31~ 2025.08.31 580,000 2024.06.30~ 2025.06.30 350,000 2024.03.22~ 2025.03.22 - 2024.04.30~ 2025.04.30 - 2024.11.01~ 2025.10.31 2,800,000 2024.09.20~ 2025.09.20 $ 3,730,000	Interest rate 0.00% 0.00% 1.98% 1.88% 0.00% 0.00% 1.93%		Financing line Collateral or guarantee 300,000 Guaranteed notes of 300,000 thousand 800,000 Guaranteed notes of 800,000 thousand 780,000 Guaranteed notes of 780,000 thousand (Note 1) 600,000 Guaranteed notes of 600,000 thousand 819,625 Guaranteed notes of 819,625 thousand (Note 2) 220,000 Guaranteed notes of 220,000 thousand 2,800,000 None 6,319,625	Remark

Note 1: The financing amount is NT$600,000 thousand and US$6,000 thousand. Note 2: The financing amount is US$25,000 thousand.

~90~

Lotes Co., Ltd.

Statement of Notes Payable

December 31, 2024

Unit: NT$ 1,000

Item	Summary	Amount $ 1,346 1,118 877 580 562 385 1,893 $ 6,761
Non-related parties: K company L company M company N company O company P company Others (Note)

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

Statement of Accounts Payable

Item	Summary	Amount $ 4,967,844 429,806 806,509
Related parties: REKA Technology Co., Ltd. Lotes Zhongshan Co., Ltd. Other (Note) Non-related parties: Q company R company Other (Note)
		$ 6,204,159
		$ 1,190 558 29
		$ 1,777

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

~91~

Lotes Co., Ltd.

Statement of Other Payables

December 31, 2024

Unit: NT$ 1,000

Item	Summary	Amount $ 7,426
Other payables - related parties Non-related parties: Salary payable Compensation payable to employees and directors Promotion expenses payable Other Total Income tax liabilities for the period	Mainly salary and year-end bonuses payable Mainly compensation for employees and directors in 2024 Mainly promotion expenses payable
		$ 41,585 224,480 88,052 55,478
		$ 423,908
		$ 913,640

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

Statement of Refund Liabilities - Current

Item	Summary	Amount $ 548,478
Refund liabilities - current	Amount expected to be paid to customers as a result of discounts

Statement of Other Current Liabilities

Summary	Amount
Collection on behalf of others	$ 20,92

Item

Other current liabilities

20,929

~92~

Lotes Co., Ltd. Statement of Deferred Income Tax Liabilities December 31, 2024 Unit: NT$ 1,000 Item Summary Amount Deferred income tax liabilities $ 64,833 Statement of Provision for Liabilities - Non-Current Item Summary Amount Provision for liabilities - Provision for employee benefit liabilities $ 38,516 non-current Statement of Other Non-Current Liabilities Item Summary Amount Deposits received $ 193

~93~

Lotes Co., Ltd.

Statement of Operating Revenue

>From January 1 to December 31, 2024

Unit: NT$ 1,000

Item Quantity Amount Sales revenue: General 875,483KPCS $ 10,342,125 Triangular trade 1,280,665KPCS 9,344,725 Less: Return of sales (32,505) Discount on sales (236,145) Net operating revenue $ 19,418,200

~94~

Lotes Co., Ltd.

Statement of Operating Cost

>From January 1 to December 31, 2024

Unit: NT$ 1,000

Item Direct raw materials Opening inventory Add: Incoming materials for the period Less: Raw materials at the end of the period Raw material consumption Manufacturing Costs Processing Costs Transfer of finished goods and merchandise Add: Beginning balance of work in progress Total manufacturing costs Add: Opening finished goods Less: Transfer to work-in-progress Finished goods at the end of the period Other Cost of finished goods Add: Opening goods Current period imports Other Less: Ending goods Other Cost of goods sold Loss on decline in value of inventories, slump and obsolescence (reversal gain) Operating cost

Amount $ 29 190 (16) 203 2,672 365 548 3 3,791 2,834 (548) (3,584) (5) 2,488 723,215 13,704,448 23,563 (1,137,392) (12,517) 13,301,317 (42,088) $ 13,261,717

~95~

Lotes Co., Ltd.

Statement of Promotion Expense

>From January 1 to December 31, 2024

Unit: NT$ 1,000

Item	Summary	Amount $ 86,449 72,785 50,528 27,057 116,283
Import and export expenses Salary expenses Royalties Commission expenses Other (Note) Total
		$ 353,102

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

Statement of Administration Expense

Item	Summary	Amount $ 255,309 37,481 166,099
Salary expenses Labor expenses Other (Note) Total
		$ 458,889

Note: The balance of each account does not exceed 5% of the amount in this accounting item and is not shown separately.

~96~

Lotes Co., Ltd.

December 31, 2024

Please refer to the following notes for the remaining information on the schedule of significant accounting items:

(1) Statement of property, plant and equipment and changes in accumulated depreciation, Note VI (6).

(2) Statement of right-of-use assets and changes in accumulated depreciation, Note VI (7).

(3) Statement of investment property and accumulated depreciation, Note VI (8).

(4) Statement of changes in intangible assets, Note VI (9).

(5) Statement of the net amount of other revenues and gains and expenses and losses, Note VI (23)

~97~