LITE-ON TECHNOLOGY CORPORATION and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

LITE-ON TECHNOLOGY CORPORATION

TOM SOONG
Chairman

February 25, 2026

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders
LITE-ON TECHNOLOGY CORPORATION

Opinion

We have audited the accompanying consolidated financial statements of LITE-ON TECHNOLOGY CORPORATION (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter identified in the audit of the Group’s consolidated financial statements for the year ended December 31, 2025 is as follows:

Occurrence of Revenue from Specific Products

The Group’s growth in operating revenue is primarily driven by high-end cloud server power supplies and related products. Revenue in the industry in which the Group operates is susceptible to global economic conditions, end-market demand, and supply chain fluctuations. As fluctuations in such revenue have a significant impact on the Group’s financial statements for the year, there is a risk that revenue recognized may not fully comply with the recognition criteria under IFRS.

Refer to Note 4 to the consolidated financial statements for a summary of material accounting policy information. Refer to Note 24 to the consolidated financial statements for the information related to revenue recognition.

Our audit procedures performed in response to the above matter included the following:

We understood and tested the design and operating effectiveness of internal controls relevant to the revenue recognition for specific product sales.
We selected samples from the transaction details of specific products and inspected supporting documents, such as orders, delivery notes, and cash collection records, to confirm the occurrence of revenue recognition.

Other Matter

We have also audited the parent company-only financial statements of LITE-ON TECHNOLOGY CORPORATION as of, and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS, IAS, IFRIC and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provided those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicated to them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We described these matters in our auditors’ report unless law or regulation precludes public disclosure of the matter, or, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Shiuh-Ran Cheng and Chien-Wei Chen.

February 25, 2026

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 80,974,352	39	$ 100,683,607	49
Financial assets at fair value through profit or loss (Note 7)	1,008,694	1	932,733	1
Contract assets (Note 24)	138,925	-	191,962	-
Notes receivable, net (Note 11)	307,708	-	116,682	-
Trade receivables, net (Note 11)	42,004,486	20	37,060,192	18
Trade receivables from related parties (Note 33)	5,591	-	5,418	-
Other receivables (Note 11)	913,798	1	788,979	1
Other receivables from related parties (Note 33)	45,735	-	26,430	-
Inventories, net (Note 12)	34,262,301	17	26,817,093	13
Other current assets (Note 19)	4,359,364	2	2,493,519	1
Total current assets	164,020,954	80	169,116,615	83
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)	1,012,599	1	1,130,079	1
Financial assets at fair value through other comprehensive income (Note 8)	1,035,795	1	998,693	-
Financial assets at amortized cost (Note 9)	418,854	-	375,743	-
Investments accounted for using the equity method (Note 14)	4,108,434	2	4,465,232	2
Property, plant and equipment, net (Notes 15 and 33)	24,752,406	12	18,775,950	9
Right-of-use assets, net (Note 16)	1,756,906	1	1,758,610	1
Investment properties, net (Note 17)	1,172,748	1	1,224,991	1
Intangible assets, net (Note 18)	3,059,813	1	3,156,476	1
Deferred tax assets (Note 26)	2,245,726	1	1,627,516	1
Refundable deposits	895,244	-	1,158,198	1
Net defined benefit assets (Note 22)	435,042	-	366,093	-
Other non-current assets (Note 19)	772,862	-	528,573	-
Total non-current assets	41,666,429	20	35,566,154	17
TOTAL	$ 205,687,383	100	$ 204,682,769	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 20)	$ 20,029,354	10	$ 30,187,483	15
Financial liabilities at fair value through profit or loss (Note 7)	430,380	-	7,011	-
Contract liabilities (Note 24)	440,197	-	309,428	-
Notes payable	85	-	42	-
Trade payables	53,605,854	26	43,124,896	21
Trade payables to related parties (Note 33)	1,805	-	712	-
Other payables	21,532,280	11	19,647,011	10
Current tax liabilities	8,214,048	4	7,243,158	4
Provisions (Note 21)	637,371	-	936,777	-
Lease liabilities (Note 16)	440,134	-	467,953	-
Advance received (Note 33)	4,265,724	2	5,944,774	3
Total current liabilities	109,597,232	53	107,869,245	53
NON-CURRENT LIABILITIES
Long-term borrowings (Note 20)	3,000,000	2	3,000,000	2
Deferred tax liabilities (Note 26)	2,107,581	1	2,073,619	1
Lease liabilities (Note 16)	860,114	-	707,264	-
Guarantee deposits	143,663	-	121,917	-
Total non-current liabilities	6,111,358	3	5,902,800	3
Total liabilities	115,708,590	56	113,772,045	56
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Share capital
Ordinary shares	23,167,758	11	23,472,500	11
Capital surplus	21,560,557	11	22,716,565	11
Retained earnings
Legal reserve	20,921,984	10	19,606,085	10
Special reserve	7,440,154	4	22,685	-
Unappropriated earnings	21,470,798	10	26,670,784	13
Total retained earnings	49,832,936	24	46,299,554	23
Other equity	(2,012,223)	(1)	1,011,497	-
Treasury shares	(2,726,963)	(1)	(2,726,963)	(1)
Total equity attributable to owners of the Company	89,822,065	44	90,773,153	44
NON-CONTROLLING INTERESTS	156,728	-	137,571	-
Total equity	89,978,793	44	90,910,724	44
TOTAL	$ 205,687,383	100	$ 204,682,769	100

The accompanying notes are an integral part of the consolidated financial statements.

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE, NET (Notes 24 and 33)	$ 166,084,859	100	$ 137,133,894	100
OPERATING COST (Notes 12, 25 and 33)	(128,045,601)	(77)	(107,504,163)	(78)
GROSS PROFIT	38,039,258	23	29,629,731	22
OPERATING EXPENSES (Notes 16, 25 and 33)
Selling and marketing expenses	(7,628,845)	(5)	(5,184,032)	(4)
General and administrative expenses	(4,965,171)	(3)	(3,990,419)	(3)
Research and development expenses	(8,721,048)	(5)	(7,476,433)	(5)
Expected credit gain (loss) reversal (Notes 11 and 24)	13,608	-	(44,914)	-
Total operating expenses	(21,301,456)	(13)	(16,695,798)	(12)
OPERATING INCOME	16,737,802	10	12,933,933	10
NON-OPERATING INCOME AND EXPENSES
Other income (Note 33)	1,348,535	1	865,747	1
Other gains and losses (Notes 15, 18 and 25)	466,850	-	367,122	-
Finance costs (Note 25)	(1,429,804)	(1)	(1,516,464)	(1)
Interest income	2,503,718	2	2,969,687	2
Share of profit of associates accounted for using the equity method	86,066	-	14,610	-
Total non-operating income and expenses	2,975,365	2	2,700,702	2
PROFIT BEFORE INCOME TAX	19,713,167	12	15,634,635	12
INCOME TAX EXPENSE (Note 26)	(4,601,373)	(3)	(3,674,139)	(3)
NET PROFIT FOR THE YEAR	15,111,794	9	11,960,496	9
OTHER COMPREHENSIVE (LOSS) INCOME (Notes 23 and 26)
Items not reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	61,815	-	193,073	-
Unrealized (loss) gain on investments in equity instruments at fair value through other comprehensive income	(379,869)	-	437,389	-
Loss on hedging instruments subject to basis adjustment	-	-	(124,592)	-
				(Continued)

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
Share of other comprehensive income of associates accounted for using the equity method	$ 17,575	-	$ 118	-
Income tax relating to items that will not be reclassified subsequently to profit or loss	(12,030)	-	(38,639)	-
	(312,509)	-	467,349	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations	(3,475,551)	(2)	5,173,360	4
Share of other comprehensive (loss) income of associates accounted for using the equity method	(27,249)	-	56,504	-
Income tax benefit relating to items that may be reclassified subsequently to profit or loss	691,117	-	(1,029,275)	(1)
	(2,811,683)	(2)	4,200,589	3
Other comprehensive (loss) income for the year, net of income tax	(3,124,192)	(2)	4,667,938	3
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 11,987,602	7	$ 16,628,434	12
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 15,115,934	9	$ 11,941,951	9
Non-controlling interests	(4,140)	-	18,545	-
	$ 15,111,794	9	$ 11,960,496	9
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
Owners of the Company	$ 11,997,519	7	$ 16,581,267	12
Non-controlling interests	(9,917)	-	47,167	-
	$ 11,987,602	7	$ 16,628,434	12
EARNINGS PER SHARE (NEW TAIWAN DOLLARS; Note 27)
Basic	$6.64		$5.21
Diluted	$6.59		$5.15

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

COMMUNEATEURS STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2026

On Thousands of New Taiwan Dollars

	Equity Attributable to Owners of the Company
	Issue of Share Capital (Note 23)		Capital Surplus (Note 23)	Retained Earnings (Note 23)				Exchange Difference on Translating Foreign Operations	Unrealized Gain (Loss) on Financial Assets Designated to Past Value Through Other Comprehensive Income	Unearned Employees' Compensation	Gain (Loss) on Hedging Instruments	Total	Treasury Shares (Note 23)	Total	Non-controlling Interests (Note 23)	Total Equity
	Shares (In Thousands)	Amount		Legal Reserve	Special Reserve	Unappropriated Earnings	Total
BALANCE AT JANUARY 1, 2024	2,353,130	$ 23,531,300	$ 22,734,000	$ 18,258,308	$ 2,988,326	$ 23,957,087	$ 44,673,713	$ (3,025,824)	$ (296,476)	$ (510,034)	$ -	$ (3,831,534)	$ (2,726,963)	$ 84,380,596	$ 606,816	$ 85,867,412
Appropriation of earnings
Legal reserve	-	-	-	1,347,705	-	(1,347,705)	-	-	-	-	-	-	-	-	-	-
Cash dividends	-	-	-	-	-	(10,397,325)	(10,397,325)	-	-	-	-	-	-	(10,397,325)	-	(10,397,325)
Special reserve	-	-	-	-	(2,085,641)	2,885,641	-	-	-	-	-	-	-	-	-	-
Changes in capital surplus from investments in associates accounted for using the equity method	-	-	(148)	-	-	-	-	-	-	-	-	-	-	(148)	-	(148)
Changes in capital surplus from cash dividends of the Company paid to subsidiaries	-	-	24,933	-	-	-	-	-	-	-	-	-	-	24,933	-	24,933
Disposal of subsidiaries	-	-	-	-	-	-	-	18,539	-	-	-	18,539	-	10,539	(270,711)	(268,172)
Actual acquisition of interests of subsidiaries	-	-	158,319	-	-	-	-	(114,828)	-	-	-	(114,828)	-	44,291	(311,291)	(267,808)
Changes in percentage of ownership interests in subsidiaries	-	-	106,202	-	-	(106,202)	(106,202)	-	-	-	-	-	-	-	-	-
Share-based payment transaction	(5,080)	(50,800)	(306,809)	-	-	23,677	23,677	-	-	346,412	-	346,412	-	4,400	-	4,400
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	-	-	-	-	-	(14,410)	(14,410)
Disposal of investments in equity instruments designated as at fair value through other comprehensive income	-	-	-	-	-	7,309	7,309	-	(7,309)	-	-	(7,309)	-	-	-	-
Basic adjustment to gain (loss) on hedging instruments	-	-	-	-	-	-	-	-	-	-	124,592	124,592	-	124,592	-	124,592
Net profit for the year ended December 31, 2024	-	-	-	-	-	11,941,951	11,941,951	-	-	-	-	-	-	11,941,951	18,545	11,968,496
Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	356,491	356,491	4,171,804	436,413	-	(124,592)	4,402,825	-	4,639,316	28,622	4,667,938
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	12,090,442	12,090,442	4,171,804	436,413	-	(124,592)	4,402,825	-	16,581,267	47,167	16,628,434
BALANCE AT DECEMBER 31, 2024	2,347,250	23,472,500	22,716,565	19,606,005	22,685	26,670,784	46,299,554	1,042,491	132,628	(163,622)	-	1,811,497	(2,726,963)	90,773,153	137,571	98,918,724
Appropriation of earnings
Legal reserve	-	-	-	1,315,899	-	(1,315,899)	-	-	-	-	-	-	-	-	-	-
Special reserve	-	-	-	-	7,417,469	(7,417,469)	-	-	-	-	-	-	-	-	-	-
Cash dividends	-	-	-	-	-	(10,321,676)	(10,321,676)	-	-	-	-	-	-	(10,321,676)	-	(10,321,676)
Changes in capital surplus from investments in associates accounted for using the equity method	-	-	(148,848)	-	-	(848)	(848)	-	448	-	-	448	-	(148,848)	-	(148,848)
Purchase of treasury shares	-	-	-	-	-	-	-	-	-	-	-	-	(2,295,585)	(2,295,585)	-	(2,295,585)
Cancellation of treasury shares	(24,219)	(242,190)	(858,890)	-	-	(1,194,585)	(1,194,585)	-	-	-	-	-	2,295,585	-	-	-
Changes in capital surplus from cash dividends of the Company paid to subsidiaries	-	-	24,938	-	-	-	-	-	-	-	-	-	-	24,938	-	24,938
Changes in percentage of ownership interests in subsidiaries	-	-	171,828	-	-	(171,828)	(171,828)	-	-	-	-	-	-	-	-	-
Share-based payment transaction	(6,255)	(62,552)	(352,236)	-	-	55,638	55,638	-	-	145,714	-	145,714	-	(215,436)	-	(215,436)
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	-	-	-	-	-	29,874	29,874
Net profit for the year ended December 31, 2025	-	-	-	-	-	15,115,934	15,115,934	-	-	-	-	-	-	15,115,934	(4,140)	15,111,794
Other comprehensive (loss) income for the year ended December 31, 2025	-	-	-	-	-	51,467	51,467	(2,905,906)	(363,976)	-	-	(3,169,802)	-	(3,118,415)	(5,777)	(3,124,192)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	15,167,481	15,167,481	(2,905,906)	(363,976)	-	-	(3,169,802)	-	11,997,519	(9,917)	11,907,602
BALANCE AT DECEMBER 31, 2025	2,316,776	$ 23,167,750	$ 21,568,557	$ 20,921,904	$ 7,440,154	$ 21,470,790	$ 49,832,936	$ (1,763,415)	$ (230,908)	$ (17,988)	$ -	$ (2,812,223)	$ (2,726,963)	$ 89,822,065	$ 156,728	$ 89,978,793

The accompanying notes are an integral part of the consolidated financial statements.

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 19,713,167	$ 15,634,635
Adjustments for:
Depreciation expenses	3,474,750	3,841,643
Amortization expenses	193,625	204,871
Expected credit loss recognized (reversed)	(13,608)	44,914
Net loss (gain) on fair value changes of financial assets and liabilities as at fair value through profit or loss	955,792	(2,807,511)
Finance costs	1,429,804	1,516,464
Interest income	(2,503,718)	(2,969,687)
Dividend income	(27,434)	(4,913)
Compensation cost of share-based payments	(269,073)	(19,277)
Share of profit of associates accounted for using the equity method	(86,066)	(14,610)
Net gain on disposal of property, plant and equipment	(29,445)	(84,661)
Loss on disposal of intangible assets	57	-
Net loss on disposal of investments accounted for using the equity method	1,715	-
Impairment loss recognized on non-financial assets	229,663	252,121
Unrealized net (gain) loss on foreign currency exchange	(17,023)	933,301
(Reversal) recognition of provisions	(197,586)	95,037
(Gain) loss on lease modification	(6,284)	14,878
Net loss on disposal of subsidiaries	566,104	9,434
Gain from bargain purchase	-	(662)
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through profit or loss	(75,060)	2,013,780
Contract assets	51,622	10,017
Notes receivable	(192,227)	409,059
Trade receivables	(5,364,953)	(4,722,279)
Trade receivables from related parties	(173)	(5,418)
Other receivables	(253,664)	359,061
Other receivables from related parties	(19,305)	(26,430)
Inventories	(8,257,180)	336,496
Other current assets	(2,083,853)	(44,240)
Notes payable	43	12
Trade payables	11,131,705	299,147
Trade payables to related parties	1,093	221
Other payables	(52,675)	(1,727,352)
Other payables to related parties	-	(281)
Contract liabilities	130,771	239,621
Provisions	(99,515)	(136,034)
Advance received	(1,661,788)	670,201
Net defined benefit assets	(9,826)	(8,609)
Cash generated from operations	16,659,455	14,312,949
Interest received	2,619,210	3,064,536
Dividends received	27,434	4,913
		(Continued)

10 -

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
Interest paid	$ (1,515,546)	$ (1,471,736)
Income tax paid	(3,257,706)	(3,499,541)
Net cash generated from operating activities	14,532,847	12,411,121
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of financial assets at fair value through other comprehensive income	(417,175)	-
Proceeds from disposal of financial assets at fair value through other comprehensive income	-	1,452,980
Purchases of financial assets at amortized cost	(43,111)	(197)
Proceeds from disposal of financial assets at amortized cost	-	135,476
Purchases of financial assets at fair value through profit or loss	(291,134)	(38,747,355)
Proceeds from disposal of financial assets at fair value through profit or loss	134,207	39,080,058
Purchases of financial assets for hedging	-	(2,537,364)
Proceeds from disposal of financial assets for hedging	-	2,412,772
Acquisition of associates	-	(2,413,563)
Increase in prepayments for investments	-	(286,064)
Proceeds from disposal of subsidiaries	-	454,734
Acquisition of property, plant and equipment	(6,854,314)	(3,548,191)
Proceeds from disposal of property, plant and equipment	59,564	265,380
Increase in refundable deposits	-	(205,414)
Decrease in refundable deposits	267,636	-
Acquisition of intangible assets	(93,494)	(430,478)
Proceeds from disposal of intangible assets	-	745
Increase in other non-current assets	(277,782)	(517,128)
Dividend from associates	120,843	40,412
Net cash used in investing activities	(7,394,760)	(4,843,197)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	-	7,583,938
Repayments of short-term borrowings	(10,116,020)	-
Proceeds from guarantee deposits received	20,335	-
Repayments of guarantee deposits received	-	(16,988)
Repayments of the principal portion of lease liabilities	(493,621)	(568,147)
Cash dividends paid	(10,296,738)	(10,372,392)
Payments for buy-back of treasury shares	(2,295,585)	-
Changes in non-controlling interests	29,074	(12,915)
Dividends returned from the unvested RSAs	53,638	23,677
Net cash used in financing activities	(23,098,917)	(3,362,827)

(Continued)

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	$ (3,748,425)	$ 3,736,477
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(19,709,255)	7,941,574
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	100,683,607	92,742,033
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 80,974,352	$ 100,683,607

The accompanying notes are an integral part of the consolidated financial statements. (Concluded)

12 -

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

LITE-ON TECHNOLOGY CORPORATION (the "Company") was established in March 1989. The main businesses include: Research and development design, manufacturing and sales of key modules and system solutions for opto-electronics, cloud computing power management systems, automotive electronics and EV chargers, energy management, LED packaging for lighting applications, AIoT and networking applications, information technology and consumer electronics.

The Company merged with Lite-On Electronics, Inc., Silitek Corp. and GVC Corp., with the Company as the surviving entity. The merger took effect on November 4, 2002, and the Company thus assumed all rights and obligations of the three merged companies on that date.

The Company merged with its subsidiary, Lite-On Enclosure Inc., with the Company as the surviving entity. The merger took effect on April 1, 2004, and the Company thus assumed all rights and obligations of its former subsidiary on that date.

The Company separately merged with Li Shin International Enterprise Corp., Lite-On Clean Energy Technology Corp., Lite-On Automotive Corp., Leotek Electronics Corp., Lite-On IT Corporation and LarView Technologies Corp., with the Company as the surviving entity. The mergers separately and respectively took effect on March 22, 2014, April 15, 2014, June 1, 2014, June 29, 2014, June 30, 2014 and September 1, 2014, with the Company as the surviving entity of all the mergers, and the Company thus assumed all rights and obligations of the six merged companies on those respective dates.

The Company merged with its subsidiary, Lite-On Capital Corporation, with the Company as the surviving entity. The merger took effect on December 1, 2023, and the Company thus assumed all rights and obligations of its former subsidiary on that date.

The consolidated financial statements of the Company and its subsidiaries, hereinafter forth collectively referred to as the Group, are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the board of directors on February 25, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Amendments to IAS 21 "Lack of Exchangeability"

The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Group's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

As of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group's financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit assets which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

15 -

c. Classification of current and non-current assets and liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the reporting period; and
Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period; and
Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company. Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate.

See Note 13 and Table 6 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

16 -

e. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.

When a business combination is achieved in stages, the Group's previously held equity interest in an acquiree is remeasured to fair value at the acquisition date, and the resulting gain or loss is recognized in profit or loss or other comprehensive income. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized on the same basis as would be required had those interests been directly disposed of by the Group.

f. Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise except for exchange differences on:

Transactions entered into in order to hedge certain foreign currency risks.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting consolidated financial statements, the financial statements of the Company's foreign operations that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e., a disposal of the Company's entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

17 -

In a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to the non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Fair value adjustments recognized on identifiable assets and liabilities of acquired foreign operation are treated as assets and liabilities of the foreign operation and translated at the rates of exchange prevailing at the end of each reporting period. Exchange differences are recognized in other comprehensive income.

g. Inventories

Inventories consist of raw materials, work in progress, finished goods, merchandise and inventory in transit and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

h. Investments in associates

An associate is an entity over which the Group has significant influence and which is not a subsidiary.

The Group uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group's share of the equity of associates attributable to the Group.

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Group's ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Group's share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group's net investment in the associate), the Group discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

18 -

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment's fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest.

When the Group transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group's consolidated financial statements only to the extent of interests in the associate that are not related to the Group.

i. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

k. Goodwill

Goodwill arising from the acquisition of a business is measured at cost as established at the date of acquisition of the business less accumulated impairment loss.

19 -

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that are expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.

If goodwill has been allocated to a cash-generating unit and the Group disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

Intangible assets

1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

2) Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

3) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

m. Impairment of property, plant and equipment, right-of-use assets, investment properties, intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

20 -

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

n. Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 32.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

21 -

ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable and trade receivables (including related party) at amortized cost, and other receivables (including related party), are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

22 -

b) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables (including related party), other receivables (including related party)) and contract assets.

The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables and contract assets. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Group considers the following situations as indication that a financial asset is in default (without taking into account any collateral held by the Group):

i. Internal or external information shows that the debtor is unlikely to pay its creditors.

ii. Financial asset is more than 90 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

23 -

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

3) Financial liabilities

a) Subsequent measurement

Except financial liabilities classified at FVTPL, all financial liabilities are measured at amortized cost using the effective interest method.

Financial liabilities held for trading are stated at fair value, and any remeasurement gains or losses on such financial liabilities are recognized in other gains or losses.

Fair value is determined in the manner described in Note 32.

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

4) Derivative financial instruments

The Group enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including forward exchange contracts and FX swaps.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

o. Hedge accounting

The Group designates certain hedging instruments, which include non-derivatives in respect of foreign currency risk, as cash flow hedges.

Cash flow hedges

The effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gains or losses relating to the ineffective portion are recognized immediately in profit or loss.

The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as reclassification adjustments in the line items relating to the hedged item in the same period in which the hedged item affects profit or loss. If a hedge of a forecasted transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the non-financial asset or non-financial liability.

24 -

The Group discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. The cumulative gain or loss on the hedging instrument that was previously recognized in other comprehensive income (from the period in which the hedge was effective) remains separately in equity until the forecasted transaction occurs. When a forecasted transaction is no longer expected to occur, the gains or losses accumulated in equity are recognized immediately in profit or loss.

p. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

1) Onerous contracts

Onerous contracts are those in which the Group’s unavoidable costs of meeting the contractual obligations exceed the economic benefits expected to be received from the contract. The present obligations arising under onerous contracts are recognized and measured as provisions. In assessing whether a contract is onerous, the cost of fulfilling a contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that are related directly to fulfilling contracts.

2) Warranties

Provisions for the expected cost of warranty obligations under the Group's sales contracts are recognized on the date of sale of the relevant products at the best estimate by the management of the Company of the expenditures required to settle the Group’s obligations.

q. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

1) Sales of goods

Revenue from the sale of goods comes from sales of goods. Sales of goods are recognized as revenue when the goods are shipped or the goods are delivered to the customer’s specified location because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. Any amounts previously recognized as contract assets are reclassified to trade receivables when the remaining obligations are performed.

The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

2) Revenue from the rendering of services

Revenue from the rendering of services is recognized when services are rendered.

25 -

r. Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

1) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms. Lease modification that resulted from a negotiation with a lessee is accounted for as a new lease from the effective date of modification.

When a lease includes both land and building elements, the Group assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated to the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of the contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably to the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee's incremental borrowing rate will be used.

26 -

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Group accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the consolidated balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

s. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

t. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

27 -

3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Group can no longer withdraw the offer of the termination benefit and when the Group recognizes any related restructuring costs.

u. Share-based payment arrangements

Restricted shares for employees

The fair value at the grant date of the restricted shares for employees is expensed on a straight-line basis over the vesting period, based on the Group’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in other equity - unearned employee benefits. The expense is recognized in full at the grant date if the grants are vested immediately.

When restricted shares for employees are issued, other equity - unearned employee benefits is recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees.

At the end of each reporting period, the Group revises its estimate of the number of restricted shares for employees that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - restricted shares for employees.

v. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, research and development expenditures, and personnel training expenditures to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

28 -

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Group has applied the exception from the recognition and disclosure of deferred tax assets and liabilities relating to Pillar Two income taxes. Accordingly, the Group neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Group’s management, the accounting policies, estimates, and assumptions adopted by the Group have not been subject to material accounting judgements, estimates and assumptions uncertainty.

CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 318	$ 419
Checking accounts	993,333	1,082,559
Demand deposits	18,591,917	21,163,928
Time deposits	61,388,784	78,436,701
	$ 80,974,352	$ 100,683,607

The market interest rate intervals of cash and cash equivalents at the end of the reporting period are as follows:

	December 31
	2025	2024
Demand deposits	0%-3.88%	0%-4.60%
Time deposits	0.65%-14.90%	1.15%-12.15%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)

	December 31
	2025	2024
Financial assets at FVTPL - current
Financial assets mandatorily classified as at FVTPL
Forward exchange contracts	$ 872,673	$ 853,867
FX swaps	99,189	78,866
Foreign warrants	36,832	-
	$ 1,008,694	$ 932,733
Financial assets at FVTPL - non-current
Financial assets mandatorily classified as at FVTPL
Mutual funds	$ 646,720	$ 829,991
Domestic listed shares and emerging market shares	11,182	13,703
Foreign warrants	64,457	-
Foreign convertible preferred stocks	290,240	286,385
	$ 1,012,599	$ 1,130,079
Financial liabilities at FVTPL - current
Financial liabilities held for trading
Forward exchange contracts	$ 430,380	$ 7,011

At the end of the reporting period, outstanding forward exchange contracts and FX swaps not under hedge accounting were as follows:

	Currency	Maturity Date	Notional Amount (In Thousands)
December 31, 2025
The Company
Forward exchange contracts (buy USD)	USD/NTD	2026.1.20-2026.9.15	USD700,000/NTD20,889,845
Forward exchange contracts (sell USD)	USD/NTD	2026.1.20-2026.9.23	USD905,000/NTD28,112,025
FX swaps (sell USD)	USD/CNY	2026.8.27-2026.9.10	USD193,000/CNY1,349,257
Lite-On Overseas Trading Co., Ltd.
Forward exchange contracts (sell EUR)	EUR/USD	2026.1.16	EUR9,000/USD10,580
Forward exchange contracts (sell USD)	USD/MXN	2026.1.16	USD22,000/MXN396,066
			(Continued)

	Currency	Maturity Date	Notional Amount (In Thousands)
December 31, 2024
The Company
Forward exchange contracts (buy USD)	USD/NTD	2025.1.9-2025.6.12	USD686,000/NTD21,446,850
FX swaps (buy USD)	USD/NTD	2025.1.21-2025.5.28	USD80,000/NTD2,515,810
Lite-On Overseas Trading Co., Ltd.
Forward exchange contracts (sell USD)	USD/MXN	2025.1.13	USD15,000/MXN303,180
			(Concluded)

The Group entered into derivative contracts to manage exposures due to fluctuations of foreign exchange rates. The derivative contracts entered into by the Group did not meet the criteria for hedge accounting. Thus, the derivative contracts are classified as financial assets or financial liabilities at FVTPL. The financial risk management objectives of the Group were to minimize risks due to changes in fair value or cash flows.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)

Investments in Equity Instruments at FVTOCI

	December 31
	2025	2024
Non-current
Domestic investments
Listed shares and emerging market shares	$ 56,836	$ 54,487
Listed Taiwan Innovation Board shares	665,222	846,947
Unlisted shares	94,454	92,766
	816,512	994,200
Foreign investments
Listed shares	215,180	-
Unlisted shares	4,103	4,493
	219,283	4,493
	$ 1,035,795	$ 998,693

The above domestic and foreign investments in equity instruments are held for medium to long-term strategic purposes and are expected to generate return in the long run. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as it believes that recognizing the short-term fluctuations of fair value in profit or loss would not be consistent with the Group's investment strategy.

9. FINANCIAL ASSETS AT AMORTIZED COSTS

	December 31
	2025	2024
Non-current
Pledged deposits	$ 418,854	$ 375,743

a. Refer to Note 10 for information related to credit risk management and impairment evaluation of financial assets at amortized cost.
b. Refer to Note 34 for information related to investments in financial assets at amortized cost pledged as security.

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

Investments in debt instruments were classified as at amortized cost.

	December 31
	2025	2024
At amortized cost
Gross carrying amount	$ 418,854	$ 375,743
Less: Allowance for impairment loss	-	-
Amortization costs	$ 418,854	$ 375,743

In order to minimize credit risk, the Group has tasked its credit management committee with the development and maintenance of a credit risk grading framework for categorizing exposures according to the degree of risk of default. The credit rating information may be obtained from independent rating agencies, where available, and if not available, the credit management committee uses other publicly available financial information to rate the debtors.

11. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES, NET

	December 31
	2025	2024
Notes receivable
Notes receivable - operating	$ 307,708	$ 116,682
Trade receivables
At amortized cost
Gross carrying amount	$ 42,207,827	$ 37,276,977
Allowance for impairment loss	(203,341)	(216,785)
	$ 42,004,486	$ 37,060,192

a. Notes receivable

The aging of notes receivable was as follows:

	December 31
	2025	2024
Not past due	$ 307,708	$ 116,682

The above aging schedule was based on the number of days past the due date.

b. Trade receivables

The average credit period of sales of goods was approximately 90 days, and no interest was charged on trade receivables. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue receivables. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group estimates expected credit losses according to the prescribed approach, which permits the recognition of lifetime expected losses for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix, which takes into consideration the historical credit loss experience with the respective debtor, the current financial position of the debtor, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlooks. The Group uses different provision matrixes based on customer segments by default risks and determines the expected credit loss by reference to the expected credit loss rate of each customer segment.

The Group writes off a trade receivable when there is information indicating that the debtor is experiencing severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables which are due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Group’s provision matrix:

December 31, 2025

	Not Past Due	Past Due Within 60 Days	Past Due 61 to 210 Days	Past Due 211 to 240 Days	Past Due Over 241 Days	Total
Expected credit loss rate	0%-0.3%	0.1%-5%	40%-70%	50%-100%	100%
Gross carrying amount	$ 41,712,805	$ 329,296	$ 58,960	$ 742	$ 106,024	$ 42,207,827
Loss allowance	(68,131)	(866)	(27,912)	(408)	(106,024)	(203,341)
Amortized cost	$ 41,644,674	$ 328,430	$ 31,048	$ 334	$ -	$ 42,004,486

December 31, 2024

	Not Past Due	Past Due Within 60 Days	Past Due 61 to 210 Days	Past Due 211 to 240 Days	Past Due Over 241 Days	Total
Expected credit loss rate	0%-0.3%	0.1%-5%	40%-70%	50%-100%	100%
Gross carrying amount	$ 36,650,263	$ 460,676	$ 18,915	$ -	$ 147,123	$ 37,276,977
Loss allowance	(59,858)	(729)	(9,075)	-	(147,123)	(216,785)
Amortized cost	$ 36,590,405	$ 459,947	$ 9,840	$ -	$ -	$ 37,060,192

The movements of the loss allowance of trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance at January 1	$ 216,785	$ 172,613
Expected credit loss (reversal) recognized	(13,765)	46,281
Amounts written off	(129)	(1,530)
Transfers to loss allowance of collections	1,590	(4,737)
Effect of disposal of subsidiary	-	(474)
Foreign exchange translation	(1,140)	4,632
Balance at December 31	$ 203,341	$ 216,785

c. Other receivables

The Group’s other receivables mainly include interests, VAT and tax refund receivables, and others.

In order to minimize credit risk, the management of the Group has assigned a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that appropriate action is taken to recover overdue other receivables. In addition, the Group reviews the recoverable amount of each individual other receivable on the balance sheet date to ensure that adequate allowance is made for possible irrecoverable amounts.

INVENTORIES, NET

	December 31
	2025	2024
Finished goods and merchandise	$ 20,276,737	$ 15,920,974
Raw materials	10,779,302	8,182,825
Work in progress	3,122,996	2,619,100
Inventory in transit	83,266	94,194
	$ 34,262,301	$ 26,817,093

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 were $128,045,601 thousand and $107,504,163 thousand, respectively.

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 included an increase in the cost of goods sold amounting to $222,086 thousand, due to a decrease in the inventory’s net realizable value.

The costs of inventories recognized as cost of goods sold for the years ended December 31, 2024 included a reduction in cost of goods sold amounting to $168,247 thousand, due to the recovery of the net realizable value of inventories.

13. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Investor	Investor	Main Business	% of Ownership	Remark
December 31
2025	2024
The Company	LITE-ON ELECTRONICS H.K. LIMITED	Sales of LED optical products	100.00	100.00
Lite-On Electronics (Thailand) Co., Ltd.	Manufacture and sales of LED optical products	100.00	100.00	-
Lite-On Japan Ltd.	Sales of LED optical products and power supplies	100.00	100.00	-
Lite-On International Holding Co., Ltd.	Investment activities	100.00	100.00	-
LTC GROUP LTD.	Investment activities	100.00	100.00	-
LITE-ON TECHNOLOGY USA, INC.	Investment activities	100.00	100.00	-
LITE-ON ELECTRONICS (EUROPE) LIMITED	Manufacture and sales of power supplies	100.00	100.00	-
Lite-On Technology (Europe) B.V.	Market research and after-sales services	100.00	100.00	-
Lite-On Overseas Trading Co., Ltd.	Investment activities	100.00	100.00	-
LITE-ON SINGAPORE PTE. LTD.	Manufacture and supply of computer peripheral products	100.00	100.00	-
LITE-ON VIETNAM CO., LTD.	Manufacture and sales of electronics contracts and information and communication products	100.00	100.00	-
EAGLE ROCK INVESTMENT LTD.	Investment activities	100.00	100.00	-
LITE-ON MOBILE PTE. LTD.	Manufacture and sales of mobile phone modules and design of assembly lines	100.00	100.00	-
HIGH YIELD GROUP CO., LTD.	Holding company	100.00	100.00	-
Philips & Lite-On Digital Solutions Corporation	Sales of optical disc drives	100.00	100.00	-
LET (HK) LIMITED	Sales of optical disc drives	100.00	100.00	-
Lite-On Automotive International (Cayman) Co., Ltd.	Investment activities	100.00	100.00	-
LITE-ON AUTOMOTIVE ELECTRONICS MEXICO, S.A. DE C.V.	Production, manufacture, sales, import and export of photovoltaic devices, key electronic components, telecommunications equipment, information technology equipment, semiconductor applications, general lighting, automotive electronics, renewable energy products and systems and maintenance within the automotive industry	99.00	99.00	-
LITE-ON POWER ELECTRONIC INDIA PRIVATE LIMITED	Manufacture and sales of phone chargers and power supplies	99.00	99.00	-
LITE-ON MOBILE INDÚSTRIA E COMÉRCIO DE PLÁSTICOS LTDA.	Manufacture and sales of mobile phone modules and design of assembly lines	2.96	2.96	-
CEDARS DIGITAL PTE. LTD.	Software development and application, IT consulting services	100.00	100.00	-
Lite-On Green Technologies, Inc.	Manufacture and wholesale of electronic components and energy technology services	100.00	100.00	-
Lite-On Green Energy (HK) Limited	Investment activities	100.00	100.00	-
LITE-ON GREEN ENERGY (SINGAPORE) PTE. LTD.	Investment activities	100.00	100.00	-
LEOTEK ELECTRONICS USA LLC	Sales of LED products	100.00	100.00	-
LITE-ON TECHNOLOGY VIETNAM COMPANY LIMITED	Manufacture and sales of electronics contracts and information and communication products	100.00	100.00	-
LITE-ON RACK CORPORATION	Manufacture of server cabinets	80.00	-	5)
Lite-On Green Technologies, Inc.	Lite-On Green Technologies B.V.	Solar energy engineering	100.00	100.00
LITE-ON GREEN ENERGY (SINGAPORE) PTE. LTD.	Lite-On Green Energy B.V.	Investment activities	100.00	100.00
LITE-ON ELECTRONICS H.K. LIMITED	LITE-ON ELECTRONICS (TIANJIN) CO., LTD.	ODM services	100.00	100.00
LITE-ON NETWORK COMMUNICATION (DONGGUAN) LIMITED	Manufacture and sales of IT products	100.00	100.00	-
CHINA BRIDGE (CHINA) CO., LTD.	Investment activities and acting as a sales agent	100.00	100.00	-
LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.	Manufacture of electronic components	100.00	100.00	-
SILITEK ELEC. (DONGGUAN) CO., LTD.	Manufacture and sales of keyboards	100.00	100.00	-
LITE-ON COMPUTER TECHNOLOGY (DONGGUAN) CO., LTD.	Manufacture and sales of display devices	100.00	100.00	-
CHINA BRIDGE (CHINA) CO., LTD.	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	Development, manufacture and sales of new-type electronic components and LEDs and provision of technology consulting services, maintenance equipment and after-sales services	12.59	12.59
WUXI CHINA BRIDGE EXPRESS TRADING CO., LTD.	Express and sales of power supplies, printers, display devices and scanners	100.00	100.00	-
LITE-ON ELECTRONICS COMPANY LIMITED	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	Manufacture and sales of printers and scanners	93.78	93.78
LITE-ON TECHNOLOGY (GUANGZHOU) LIMITED	Manufacture and sales of computer cases	100.00	100.00	1)
LITE-ON TECHNOLOGY (JIANGSU) CO., LTD.	Investment activities and acting as a sales agent	100.00	100.00	-
LITE-ON TECHNOLOGY (GZ) INVESTMENT COMPANY LIMITED	Investment activities	100.00	100.00	-
LITE-ON POWER TECHNOLOGY (DONGGUAN) CO., LTD.	Development, manufacture and sales of electronic components, power supplies and provision of technology consulting services	100.00	100.00	-
LITE-ON TECHNOLOGY (GZ) INVESTMENT COMPANY LIMITED	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	Manufacture and sales of printers and scanners	6.22	6.22

(Continued)

Investor	Investor	Main Business	% of Ownership		Remark
			December 31	2025
LITE-ON TECHNOLOGY (JIANGSU) CO., LTD.	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Development, manufacture, sales and installation of power supplies and transformers and provision of technology consulting services, maintenance equipment and after-sales services	100.00	100.00	-
	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	Development, manufacture and sales of new-type electronic components and LEDs and provision of technology consulting services, maintenance equipment and after-sales services	87.41	87.41
	LITE-ON MEDICAL DEVICE (CHANGZHOU) LTD.	Manufacture and sales of medical equipment	100.00	100.00	-
	CHANGZHOU LEOTEK NEW ENERGY TRADE LIMITED	Wholesale, import, export and installation of street lights, signal lights, scenery lights and new-type electronic components	100.00	100.00
	LITE-ON AUTOMOTIVE ELECTRONICS (CHANGZHOU) CO., LTD.	Manufacture, sales and processing of electronic products	100.00	100.00
	LITE-ON GREEN TECHNOLOGIES (NANJING) CORPORATION	Solar energy engineering	-	100.00	2)
FORDGOOD ELECTRONIC LIMITED	LITEON LI SHIN TECHNOLOGY (GANZHOU) LTD.	Manufacture and sales of electronic components	100.00	100.00	-
LITE-ON TECHNOLOGY USA, INC.	LITE-ON, INC.	Sales data processing of optoelectronic products and power supplies	100.00	100.00	-
	LITE-ON TRADING USA, INC.	Sales of optical products	100.00	100.00	-
	POWER INNOVATIONS INTERNATIONAL, INC.	Development, design and manufacture of power controls and energy management	100.00	100.00
	MESH LIGHT FUND L.L.P.	Investment activities	99.00	-	7)
Lite-On International Holding Co., Ltd.	LITE-ON CHINA HOLDING CO. LTD.	Investment activities	100.00	100.00	-
LITE-ON SINGAPORE PTE. LTD.	LITE-ON TECHNOLOGY (XIANNING) CO., LTD.	Manufacture and sales of electronic components	100.00	100.00	-
	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Manufacture and sales of energy saving equipment	100.00	100.00	-
	LITE-ON AUTOMOTIVE ELECTRONICS MEXICO, S.A. DE C.V.	Production, manufacture, sales, import and export of photovoltaic devices, key electronic components, telecommunications equipment, information technology equipment, semiconductor applications, general lighting, automotive electronics, renewable energy products and systems and maintenance within the automotive industry	1.00	1.00
	LITE-ON POWER ELECTRONIC INDIA PRIVATE LIMITED	Manufacture and sales of phone chargers and power supplies	1.00	1.00
LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	LITE-ON INTELLIGENT TECHNOLOGY (YENCHENG) CORP.	Wholesale, import, export and installation of street lights, signal lights, scenery lights and new-type electronic components	100.00	100.00
	LITE-ON NEW VENTURES TECHNOLOGY (BEIJING) CO., LTD.	Research and development of products and provision of related technical services; sales of power electronic components, semiconductor lighting devices, automotive parts and components, mechanical parts and components, computer software and hardware and auxiliary equipment, industrial automation control system devices	100.00	100.00
LTC GROUP LTD.	TITANIC CAPITAL SERVICES LTD.	Investment activities	100.00	100.00
Lite-On Technology (Europe) B.V.	Lite-On (Finland) Oy	Manufacture and sales of mobile phone modules and design of assembly lines	-	100.00	6)
	Lite-On Technology GmbH	Business development and after-sales service	100.00	100.00	-
LITE-ON CHINA HOLDING CO. LTD.	LITE-ON ELECTRONICS COMPANY LIMITED	Investment activities	100.00	100.00	-
	YET FOUNDATE LIMITED	Manufacture of plastic and computer peripheral products	100.00	100.00
	FORDGOOD ELECTRONIC LIMITED	Import and export and real estate	100.00	100.00	-
G&W TECHNOLOGY (BVI) LIMITED	G&W TECHNOLOGY LIMITED	Real estate management	50.00	50.00	-
	G&W TECHNOLOGY LIMITED	Leasing	100.00	100.00	-
EAGLE ROCK INVESTMENT LTD.	HUIZHOU LI SHIN ELECTRONIC CO., LTD.	Manufacture of computer peripheral products	100.00	100.00	-
HIGH YIELD GROUP CO., LTD.	LITE-ON IT INTERNATIONAL (HK) LIMITED	Investment activities	100.00	100.00	-
LITE-ON IT INTERNATIONAL (HK) LIMITED	LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD.	Manufacture of automotive components	100.00	100.00	-
	LITEON-IT OPTO TECH (BH) CO., LTD.	Manufacture and sales of optical disc drives	100.00	100.00	-
Philips & Lite-On Digital Solutions Corporation	PLDS Germany GmbH	Development and sales of modules of automotive recorders	100.00	100.00	-
	Philips & Lite-On Digital Solutions USA, Inc.	Sales of optical disc drives	100.00	100.00	-
	Philips & Lite-On Digital Solutions (Shanghai) Co., Ltd.	Sales of optical disc drives	100.00	100.00	-
Lite-On Automotive International (Cayman) Co., Ltd.	LITE-ON AUTOMOTIVE HOLDINGS (HONG KONG) CO., LIMITED	Investment activities	100.00	100.00	-
LITE-ON AUTOMOTIVE HOLDINGS (HONG KONG) CO., LIMITED	Lite-On (Guangzhou) Automotive Electronics Limited	Manufacture, sales and processing of electronic products	100.00	100.00	-
Lite-On Japan Ltd.	Lite-On Japan (H.K.) Limited	Import and export of electronic components	100.00	100.00	-
	LITE-ON JAPAN (Thailand) CO., LTD.	Import and export of electronic components	100.00	100.00	-
Lite-On Japan (H.K.) Limited	NL (SHANGHAI) CO., LTD.	Import and export of electronic components	100.00	100.00	-
LITE-ON MOBILE PTE. LTD.	BEIJING LITE-ON MOBILE ELECTRONIC AND TELECOMMUNICATION COMPONENTS CO., LTD.	Manufacture and sales of mobile phone modules and design of assembly lines	-	100.00	3)
	LITE-ON MOBILE INDUSTRIA E COMÉRCIO DE PLÁSTICOS LTDA.	Manufacture and sales of mobile phone modules and design of assembly lines	97.04	97.04	-

(Continued)

37 -

Investor	Investor	Main Business	% of Ownership		Remark
			December 31
LEOTEK ELECTRONICS USA LLC	LEOTEK CORPORATION	Wholesale, import, export and installation of street lights, signal lights, scenery lights and new-type electronic components	100.00	100.00	-
LEOTEK INTELLIGENCE MEXICO, S. DE R.L. DE C.V.	LEOTEK INTELLIGENCE MEXICO, S. DE R.L. DE C.V.	Sales of various lighting products and electronics systems	99.00	-	4)
LEOTEK INTELLIGENCE MEXICO, S. DE R.L. DE C.V.	LEOTEK INTELLIGENCE MEXICO, S. DE R.L. DE C.V.	Sales of various lighting products and electronics systems	1.00	-	4)

(Concluded)

Remark:

1) Merged with LITE-ON ELECTRONICS (GUANGZHOU) LIMITED in 2013 and was under the procedures of statutory merger.

2) Merged and dissolved with LITE-ON TECHNOLOGY (JIANGSU) CO., LTD. in November 2024 and its registration was cancelled in March 2025.

3) Liquidated in January 2025.

4) Established in January 2025 and the capital was injected in October 2025.

5) Established in May 2025.

6) Liquidated in April 2025.

7) The capital was injected in November 2025.

b. Subsidiaries excluded from consolidated financial statements: None.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

Investment	December 31
	2025	2024
Associates that are not individually material	$ 4,108,434	$ 4,465,232

As of December 31, 2025 and 2024, no investments in associates are individually material to the Company. Please refer to the consolidated statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material.

Fair values (Level 1) of investments in associates with available published price quotations are summarized as follows:

Name of Associate	December 31
	2025	2024
Silitech Technology Corporation	$ 364,690	$ 400,984
Cosel Co., Ltd.	$ 1,793,130	$ 1,838,571

15. PROPERTY, PLANT AND EQUIPMENT, NET

	Freehold Land	Buildings	Machinery Equipment	Tooling Equipment	Transportation Equipment	Office Equipment	Other Equipment	Total
Cost
January 1, 2025	$ 2,886,476	$ 19,784,930	$ 27,848,830	$ 1,159,051	$ 31,718	$ 2,211,536	$ 9,133,979	$ 63,056,520
Additions	-	758,424	1,859,006	72,351	4,989	156,882	6,047,096	8,898,748
Disposals	(407)	(190,895)	(2,403,184)	(148,288)	(4,414)	(399,843)	(362,374)	(3,509,405)
Reclassifications	-	2,329,086	398,590	35,513	12,030	4,434	(2,855,294)	(75,641)
Effects of foreign currency exchange differences	151	(21,812)	(27,035)	2,781	(134)	(18,564)	(5,476)	(70,089)
December 31, 2025	$ 2,886,220	$ 22,659,733	$ 27,676,207	$ 1,121,408	$ 44,189	$ 1,954,445	$ 11,957,931	$ 68,300,133
Accumulated depreciation
January 1, 2025	$ -	$ 12,189,149	$ 24,773,841	$ 1,071,155	$ 27,863	$ 2,051,167	$ 3,306,047	$ 43,419,222
Additions	-	658,528	1,714,128	82,889	6,550	105,871	284,082	2,852,048
Disposals	-	(137,278)	(2,408,926)	(143,271)	(4,414)	(397,992)	(348,948)	(3,440,829)
Reclassifications	-	(22,948)	1,175	-	-	-	(1,175)	(22,948)
Effects of foreign currency exchange differences	-	2,505	(31,180)	2,213	113	(15,724)	22,037	(20,036)
December 31, 2025	$ -	$ 12,689,956	$ 24,049,038	$ 1,012,986	$ 30,112	$ 1,743,322	$ 3,262,043	$ 42,787,457
Accumulated impairment
January 1, 2025	$ -	$ 440,854	$ 343,617	$ 5,905	$ 108	$ 2,879	$ 67,985	$ 861,348
Additions(Reversal)	-	-	(5,289)	-	-	-	437	(4,852)
Disposals	-	(18,917)	(14,337)	(5,017)	-	(2)	(184)	(38,457)
Reclassifications	-	(53,344)	(3,281)	-	-	-	-	(56,625)
Effects of foreign currency exchange differences	-	(1,853)	(1,782)	90	-	-	2,401	(1,144)
December 31, 2025	$ -	$ 366,740	$ 318,928	$ 978	$ 108	$ 2,877	$ 70,639	$ 760,270
December 31, 2025, net	$ 2,886,220	$ 9,603,037	$ 3,308,241	$ 107,444	$ 13,969	$ 208,246	$ 8,625,249	$ 24,752,406
Cost
January 1, 2024	$ 2,814,000	$ 20,105,629	$ 27,215,049	$ 1,406,181	$ 35,877	$ 2,133,762	$ 6,689,122	$ 60,399,620
Additions	70,754	48,236	890,577	62,379	2,031	90,498	2,861,174	4,025,649
Disposals	(12)	(796,448)	(1,437,778)	(264,978)	(6,780)	(72,132)	(219,316)	(2,797,444)
Disposal of subsidiary	-	(42,146)	(129,059)	(72,072)	-	(8,558)	(73,290)	(325,125)
Reclassifications	-	(37,706)	259,162	1,503	-	8,877	(278,800)	(46,964)
Effects of foreign currency exchange differences	1,734	507,365	1,050,879	26,038	590	59,089	155,089	1,800,784
December 31, 2024	$ 2,886,476	$ 19,784,930	$ 27,848,830	$ 1,159,051	$ 31,718	$ 2,211,536	$ 9,133,979	$ 63,056,520
Accumulated depreciation
January 1, 2024	$ -	$ 11,716,695	$ 23,363,131	$ 1,308,105	$ 30,067	$ 1,932,524	$ 3,157,232	$ 41,507,754
Additions	-	773,264	1,985,283	73,554	3,437	142,087	277,125	3,254,750
Disposals	-	(615,663)	(1,421,738)	(264,849)	(6,418)	(71,279)	(201,550)	(2,581,497)
Disposal of subsidiary	-	(41,362)	(108,840)	(69,776)	-	(3,342)	(1,857)	(225,177)
Reclassifications	-	6,174	13,194	-	-	(37)	(1,854)	17,477
Effects of foreign currency exchange differences	-	350,041	942,811	24,121	777	51,214	76,951	1,445,915
December 31, 2024	$ -	$ 12,189,149	$ 24,773,841	$ 1,071,155	$ 27,863	$ 2,051,167	$ 3,306,047	$ 43,419,222
Accumulated impairment
January 1, 2024	$ -	$ 185,179	$ 224,647	$ 5,046	$ 106	$ 2,575	$ 81,846	$ 499,399
Additions	-	279,598	130,406	781	-	494	8,990	420,269
Disposals	-	(1,182)	(15,668)	(129)	-	(275)	(17,974)	(35,228)
Disposal of subsidiary	-	-	(4,093)	-	-	-	-	(4,093)
Reclassifications	-	(28,705)	-	-	-	-	-	(28,705)
Effects of foreign currency exchange differences	-	5,964	8,325	207	2	85	(4,877)	9,706
December 31, 2024	$ -	$ 440,854	$ 343,617	$ 5,905	$ 108	$ 2,879	$ 67,985	$ 861,348
December 31, 2024, net	$ 2,886,476	$ 7,154,927	$ 2,731,372	$ 81,991	$ 3,747	$ 157,490	$ 5,759,947	$ 18,775,950

The Group recognized a reversals of impairment losses of $4,852 thousand for the year ended December 31, 2025, due to an increase in the estimated future cash inflows generated by some of the property, plant and equipment. Accordingly, recoverable amounts were reassessed and determined to exceed their carrying amounts indicating that no impairment existed. In addition, for the year ended December 31, 2024, due to a decline in the estimated future cash inflows generated by some of property, plant and equipment, the Group performed an assessment of the recoverable amount and determined that the recoverable amount was lower than the carrying amount. Consequently, the Group recognized impairment loss of $420,269 thousand. The impairment losses were recognized in other gains and losses of the consolidated statements of comprehensive income.

The Group determined the recoverable amount of property, plant and equipment on the basis of fair value less costs of disposal. The fair values used in determining the recoverable amounts were categorized as Level 3 measurements and were measured using the market value method. The key assumption included the estimated disposal values.

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings	3-55 years
Machinery equipment	2-10 years
Tooling equipment	2-5 years
Transportation equipment	3-5 years
Office equipment	2-19 years
Other equipment	2-30 years

16. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amount
Land (including right to use land)	$ 719,095	$ 726,731
Buildings	976,795	988,987
Machinery	43,477	25,847
Transportation equipment	13,350	15,054
Other equipment	4,189	1,991
	$ 1,756,906	$ 1,758,610
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 651,452	$ 526,820
Depreciation charge for right-of-use assets
Land (including right to use land)	$ 31,574	$ 31,619
Buildings	520,730	485,350
Machinery	29,201	28,447
Transportation equipment	9,425	9,093
Other equipment	2,589	2,576
	$ 593,519	$ 557,085

Except for the aforementioned addition and recognized depreciation, the Group did not have impairment of right-of-use assets for the years ended December 31, 2025 and 2024.

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 440,134	$ 467,953
Non-current	$ 860,114	$ 707,264
Range of discount rate for lease liabilities was as follows:
	For the Year Ended December 31
	2025	2024
Land (including right to use land)	1.00-4.30%	1.00-4.30%
Buildings	1.00-8.25%	1.00-8.25%
Machinery	1.67-3.12%	1.67-3.30%
Transportation equipment	1.10-4.91%	1.00-4.91%
Other equipment	1.66-7.75%	1.66-3.80%
c. Other lease information
	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 140,792	$ 108,138
Expenses relating to low-value asset leases	$ 10,834	$ 13,151
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ 88,489	$ 83,082
Total cash outflow for leases	$ 778,520	$ 810,687
17. INVESTMENT PROPERTIES, NET
		Completed Investment Properties
Cost
Balance at January 1, 2025		$ 1,515,384
Transfers from property, plant and equipment		51,787
Effects of foreign currency exchange differences		6,250
Balance at December 31, 2025		$ 1,573,421
		(Continued)

41 -

	Completed Investment Properties
Accumulated depreciation
Balance at January 1, 2025	$ 290,393
Depreciation expenses	29,183
Transfers from property, plant and equipment	76,292
Effects of foreign currency exchange differences	4,805
Balance at December 31, 2025	$ 400,673
Carrying amounts at December 31, 2025	$ 1,172,748
Cost
Balance at January 1, 2024	$ 1,422,095
Transfers from property, plant and equipment	39,147
Effects of foreign currency exchange differences	54,142
Balance at December 31, 2024	$ 1,515,384
Accumulated depreciation
Balance at January 1, 2024	$ 240,517
Depreciation expenses	29,808
Transfers from property, plant and equipment	11,228
Effects of foreign currency exchange differences	8,840
Balance at December 31, 2024	$ 290,393
Carrying amounts at December 31, 2024	$ 1,224,991
	(Concluded)

Except for depreciation expenses recognized the Group had neither significant disposal nor impairment of properties in 2025 and 2024.

Investment properties are depreciated using the straight-line method over their estimated useful lives as follows:

Buildings 3-55 years
Office equipment 5 years

Investment properties were not valued by any independent valuer, the Group's management used the valuation model that market participants would use in determining the fair value, and the fair value was measured using Level 3 inputs. The valuation was arrived at by reference to market evidence of transaction prices for similar properties. The fair values as appraised were as follows:

	December 31
	2025	2024
Fair value	$ 1,549,849	$ 1,541,286

The Group has freehold interest in all of its investment properties.

Rental income from investment property and direct operating expenses arising from the investment property are shown below:

	For the Year Ended December 31
	2025	2024
Rental income from investment property	$ 54,477	$ 58,622
Direct operating expenses arising from the investment property that generated rental income during the year	$ 40,874	$ 41,619

18. INTANGIBLE ASSETS, NET

	Goodwill	Patents	Patents Use Rights	Client Relationships	Software	Other Intangible Assets	Total
Cost
January 1, 2025	$ 15,063,051	$ 120,997	$ 2,695,878	$ 292,533	$ 1,956,878	$ 1,316,971	$ 21,446,308
Additions	-	-	-	-	93,172	322	93,494
Disposals	-	-	(2,695,878)	-	(543,713)	(789,028)	(4,028,619)
Reclassification	-	-	-	-	23,854	-	23,854
Effect of foreign currency exchange differences	(947)	(1,185)	-	(5,387)	470	(5,394)	(12,443)
December 31, 2025	$ 15,062,104	$ 119,812	$ -	$ 287,146	$ 1,530,661	$ 522,871	$ 17,522,594
Accumulated amortization
January 1, 2025	$ 77,234	$ 87,017	$ 2,695,878	$ 169,227	$ 1,693,966	$ 1,206,556	$ 5,929,878
Additions	-	9,611	-	12,397	156,429	15,188	193,625
Disposals	-	-	(2,695,878)	-	(543,656)	(789,028)	(4,028,562)
Effect of foreign currency exchange differences	-	(58)	-	(187)	274	(2,326)	(2,297)
December 31, 2025	$ 77,234	$ 96,570	$ -	$ 181,437	$ 1,307,013	$ 430,390	$ 2,092,644
Accumulated impairment
January 1, 2025	$ 12,349,376	$ -	$ -	$ -	$ 10,578	$ -	$ 12,359,954
Additions	-	-	-	-	-	9,717	9,717
Effect of foreign currency exchange differences	-	-	-	-	-	466	466
December 31, 2025	$ 12,349,376	$ -	$ -	$ -	$ 10,578	$ 10,183	$ 12,370,137
December 31, 2025, net	$ 2,635,494	$ 23,242	$ -	$ 105,709	$ 213,070	$ 82,298	$ 3,059,813
Cost
January 1, 2024	$ 15,040,431	$ 93,583	$ 2,696,378	$ 163,819	$ 1,756,849	$ 1,233,564	$ 20,984,624
Additions	22,413	27,067	-	127,534	241,100	12,364	430,478
Disposals	-	-	-	-	(42,198)	(28,910)	(71,108)
Disposal of subsidiary	-	-	(500)	-	(18,861)	-	(19,361)
Reclassification	-	-	-	-	13,045	95,233	108,278
Effect of foreign currency exchange differences	207	347	-	1,180	6,943	4,720	13,397
December 31, 2024	$ 15,063,051	$ 120,997	$ 2,695,878	$ 292,533	$ 1,956,878	$ 1,316,971	$ 21,446,308
Accumulated amortization
January 1, 2024	$ 77,234	$ 74,145	$ 2,695,953	$ 163,819	$ 1,552,402	$ 1,223,714	$ 5,787,267
Additions	-	12,837	42	5,359	175,125	11,508	204,871
Disposals	-	-	-	-	(42,198)	(28,165)	(70,363)
Disposal of subsidiary	-	-	(117)	-	(2,086)	-	(2,203)
Reclassification	-	-	-	-	5,227	(5,227)	-
Effect of foreign currency exchange differences	-	35	-	49	5,496	4,726	10,306
December 31, 2024	$ 77,234	$ 87,017	$ 2,695,878	$ 169,227	$ 1,693,966	$ 1,206,556	$ 5,929,878

(Continued)

	Goodwill	Patents	Patents Use Rights	Client Relationships	Software	Other Intangible Assets	Total
Accumulated impairment
January 1, 2024	$ 12,349,376	$ -	$ -	$ -	$ 10,456	$ -	$ 12,359,832
Additions	-	-	-	-	99	-	99
Effect of foreign currency exchange differences	-	-	-	-	23	-	23
December 31, 2024	$ 12,349,376	$ -	$ -	$ -	$ 10,578	$ -	$ 12,359,954
December 31, 2024, net	$ 2,636,441	$ 33,980	$ -	$ 123,306	$ 252,334	$ 110,415	$ 3,156,476

a. Due to the decline in the estimated future cash inflows generated by some of intangible assets, the Group carried out a review of the recoverable amount and determined that the recoverable amount was lower than the carrying amount. Consequently, the Group recognized impairment losses of $9,717 thousand and $99 thousand for the year ended December 31, 2025 and 2024, respectively. The impairment losses were recognized in other gains and losses of the consolidated statements of comprehensive income.

b. The above items of other intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Patents	3-9 years
Patents use rights	5 years
Client relationships	4-9 years
Software	2-10 years
Other intangible assets	3-10 years

c. The amounts of cash-generating unit used in amortizing the Group's goodwill are listed as follows:

	December 31
	2025	2024
Opto-electronics	$ 736,679	$ 737,626
Information technology and consumer electronics	1,738,567	1,738,567
Cloud and AIoT	160,248	160,248
	$ 2,635,494	$ 2,636,441

1) Goodwill is allocated to the Group's recoverable amount of cash-generating units based on value in use calculations. These calculations used pre-tax cash flow projections based on financial budgets approved by the management of the Group covering a 5-year period. Other key assumptions included budgeted revenue and gross margin. Such assumptions were based on the past performance of the cash-generating unit and management's expectations of market development.

2) The Group determined gross margin based on past performance, expected profits under normal operations and management's expectations of market development. The growth rate used was consistent with the forecasts included in industry reports. The discount rates used were 12.97% and 12.92% as of December 31, 2025 and 2024, respectively and reflected specific risks relating to the relevant cash-generating units.

44 -

19. OTHER ASSETS

	December 31
	2025	2024
Prepayments	$ 4,451,817	$ 2,487,715
Offsets against business tax payable	504,431	391,273
Others	175,978	143,104
	$ 5,132,226	$ 3,022,092
Current	$ 4,359,364	$ 2,493,519
Non-current	772,862	528,573
	$ 5,132,226	$ 3,022,092

20. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 20,029,354	$ 30,187,483
Market interest rates for short-term borrowings were as follows:
	December 31
	2025	2024
Line of credit borrowings	1.76%-5.12%	1.80%-5.75%

b. Long-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 3,000,000	$ 3,000,000
Market interest rates for long-term borrowings were as follows:
	December 31
	2025	2024
Line of credit borrowings	1.74%	1.74%

45 -

21. PROVISIONS

		December 31
		2025	2024
Current
Warranties		$ 637,371	$ 870,777
Onerous contracts		-	66,000
Balance at December 31		$ 637,371	$ 936,777
	Warranties	Onerous Contracts	Total
Balance at January 1, 2025	$ 870,777	$ 66,000	$ 936,777
Reversal of provisions	(174,516)	(23,070)	(197,586)
Usage	(56,585)	(42,930)	(99,515)
Effects of foreign currency exchange differences	(2,305)	-	(2,305)
Balance at December 31, 2025	$ 637,371	$ -	$ 637,371
Balance at January 1, 2024	$ 1,011,515	$ -	$ 1,011,515
Recognition of provisions	29,037	66,000	95,037
Usage	(136,034)	-	(136,034)
Disposal of subsidiary	(40,410)	-	(40,410)
Effects of foreign currency exchange differences	6,669	-	6,669
Balance at December 31, 2024	$ 870,777	$ 66,000	$ 936,777

The provision for warranty claims represents the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Group’s obligations for warranties under contracts for the sale of goods. The estimate had been made on the basis of historical warranty trends and may vary as a result of the entry of new materials, altered manufacturing processes or other events affecting product quality.

The provision for onerous contracts comes from non-cancellable purchase contracts, and the provision amounts are measured using the difference of the unavoidable costs of meeting the contractual obligations less the economic benefits expected to be received from the contracts.

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation, CEDARS DIGITAL PTE. LTD., TAIWAN BRANCH and LEOTEK CORPORATION adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages starting from July 1, 2005. Some holding companies have either very few or no staff; thus, these companies have no pension plans, do not contribute to pension funds and recognize pension expense. Except for holding companies, the remaining subsidiaries all contribute to pension funds and recognize pension expense in accordance with local regulations.

b. Defined benefit plans

The Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation and LEOTEK CORPORATION adopted the defined benefit plan under the Labor Standards Act, under which pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Group contributes amounts equal to 2% to 6% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Group has no right to influence the investment policy and strategy. PLDS Germany GmbH and Lite-On Technology GmbH, the company's subsidiary, in accordance with local laws and regulations, calculates the pension payable for employees who participate in the pension plan according to their length of service and resignation or retirement wages when requirements was met.

The amounts included in the balance sheets in respect of the Group's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 615,146	$ 635,931
Fair value of plan assets	(1,050,188)	(1,002,024)
Net defined benefit assets	$ (435,042)	$ (366,093)

Movements in net defined benefit liabilities (assets) were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities (Assets)
Balance at January 1, 2024	$ 788,971	$ (952,464)	$ (163,493)
Service cost	5,499	-	5,499
Net interest expense (income)	9,795	(10,907)	(1,112)
Recognized in loss (profit)	15,294	(10,907)	4,387
Remeasurement
Return on plan assets	-	(85,343)	(85,343)
Actuarial gain - changes in financial assumptions	(7,317)	-	(7,317)
Actuarial gain - experience adjustments	(100,413)	-	(100,413)
Recognized in other comprehensive loss (income)	(107,730)	(85,343)	(193,073)
Contributions from the employer	-	(12,996)	(12,996)
Benefits paid	(50,986)	49,139	(1,847)
Effects of business combination and disposal	(9,827)	10,078	251
Effect of foreign currency exchange differences	209	469	678
Balance at December 31, 2024	$ 635,931	$ (1,002,024)	$ (366,093)
			(Continued)

47 -

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities (Assets)
Balance at January 1, 2025	$ 635,931	$ (1,002,024)	$ (366,093)
Service cost	6,493	-	6,493
Net interest expense (income)	9,931	(14,700)	(4,769)
Recognized in loss (profit)	16,424	(14,700)	1,724
Remeasurement
Return on plan assets	-	(71,222)	(71,222)
Actuarial gain - changes in financial assumptions	4,005	-	4,005
Actuarial gain - experience adjustments	5,402	-	5,402
Recognized in other comprehensive loss (income)	9,407	(71,222)	(61,815)
Contributions from the employer	-	(11,550)	(11,550)
Benefits paid	(49,893)	49,764	(129)
Effect of foreign currency exchange differences	3,277	(456)	2,821
Balance at December 31, 2025	$ 615,146	$ (1,050,188)	$ (435,042)

(Concluded)

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rate(s)	1.3%-3.7%	1.5%-3.4%
Expected rate(s) of salary increase	2%-3%	2%-3%

If possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
Discount rate(s)
0.25% increase	$ (9,536)	$ (10,905)
0.25% decrease	$ 9,829	$ 11,282
Expected rate(s) of salary increase
0.25% increase	$ 7,808	$ 9,241
0.25% decrease	$ (7,657)	$ (9,016)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
The expected contributions to the plan for the next year	$ 9,490	$ 11,168
The average duration of the defined benefit obligation	1-17 years	1.2-19 years

23. EQUITY

a. Share capital

Ordinary shares

	December 31
	2025	2024
Number of shares authorized (in thousands)	3,500,000	3,500,000
Amount of shares authorized	$ 35,000,000	$ 35,000,000
Number of shares issued and fully paid (in thousands)	2,316,776	2,347,250
Amount of shares issued	$ 23,167,758	$ 23,472,500

Fully paid ordinary shares, which have a par value of $10, carry the rights to vote and to dividends.

Of the total number of shares aforementioned, one hundred million shares are reserved to be issued as share warrants, preferred shares with share options or corporate bonds with share options ready for exercise of options.

For the years ended December 31, 2025 and 2024, the Company withdrew employee restricted shares which were not vested. Refer to Note 28 for information on RSAs.

b. Capital surplus

	December 31
	2025	2024
From business combinations	$ 9,846,401	$ 9,949,325
Conversion of bonds	7,336,373	7,413,059
Issuance of ordinary shares	3,591,363	3,628,904
Treasury share transactions	11,067	625,442
Changes in ownership interests in subsidiaries and equity of associates	404,381	374,201
The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	232,139	234,565
Employee restricted shares	138,833	491,069
	$ 21,560,557	$ 22,716,565

The premium from shares issued in excess of par (including share premium from issuance of ordinary shares, conversion of bonds, business combinations, treasury share transactions and difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition) may be used to offset a deficit. In addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to capital (limited to a certain percentage of the Company’s paid-in capital).

The capital surplus arising from change in ownership interests of subsidiaries, changes in equities of associates and joint ventures accounted for by the equity method may only be used to offset a deficit. And the capital surplus arising from issuing the restricted stocks may not be used for any purpose.

c. Retained earnings and dividend policy

Under the dividends policy as set forth in the Articles, the Company may distribute the surplus earnings or off-set losses at the close of each quarter in accordance with the Company Act. While distributing surplus earning, the Company shall estimate and reserve the taxes and duty to be paid, the losses to be covered, the legal reserve to be set aside, and the special surplus reserve to be raised or revolved. Where such legal reserve amounts reach to the total paid-in capital, this provision shall not apply. If the Company distribute surplus earning in the form of cash, it shall be approved by a meeting of the board of directors; if such surplus earning is distribute in the form of new shares to be issued, it shall be approved by shareholders according to the regulations.

If there is net profit after tax upon the final settlement of account of each fiscal year, the Company shall first offset any previous accumulated losses (including unappropriated earnings adjustment if any) and set aside a legal reserve at 10% of the net profits, unless the accumulated legal reserve is equal to the total capital of the Company; then set aside special reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. The remaining net profit, plus the beginning unappropriated earnings (including adjustment of unappropriated earnings if any), shall be distributed into dividends to shareholders according to the distribution plan proposed by the board of directors and submitted to the shareholders’ meeting for approval. Where the Company distributes preceding surplus earning, legal reserve and capital reserve in the form of cash, such distribution is authorized by a special resolution of the board of directors; and in addition to a report of such distribution shall be submitted to the shareholders’ meeting; if such distribution is in the form of new shares to be issued, it shall be approved by shareholders meetings according to the regulations. For the policies on distribution of compensation of employees and remuneration of directors before and after amendment, refer to Note 25(e) on compensation of employees and remuneration of directors.

49 -

In consideration of business development plan, investing environment, demand for funds, global competitiveness and the shareholders' interest, the Dividend Policy of the Company is the distribution to shareholders with the appropriation of the amount which shall be no less than 70% of the balance amount after income tax, contribution of legal reserve and contribution or reversal of special earnings reserve as required by laws, under the circumstance that there is no cumulated loss in prior years. The distribution may be executed in cash dividend and/or share dividend, and the cash dividend shall be no less than 90% of the total distributed dividends. The dividend distribution ratio in the preceding paragraph could be adjusted taking into consideration finance, business and operations, etc.

After the Company considers financial, business, and operational factors, if there are no retained earnings to be appropriated or if the earnings to be appropriated are significantly lower than the prior year's actual appropriation of the earnings, then part of or all of the Company's reserve can be appropriated according to the law or the competent authority.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

Additional special reserve should be appropriated for an amount equal to the net debit balance of other equity items. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.

The Company appropriated earnings to a special reserve for the difference between the market price and carrying amount of the Company's shares held by subsidiaries proportional to its holding of those subsidiaries. The special reserve appropriated may be reversed to the extent that the market price reverses.

The appropriations of the earnings in 2024 and 2023, which were resolved by the Company's board of directors, were as follows:

	Fourth Quarter of 2024	Second Quarter of 2024
Board of directors in its meeting	February 26, 2025	July 31, 2024
Legal reserve	$ 648,949	$ 553,368
Special reserve	$ (22,685)	$ (3,298,814)
Cash dividends	$ 5,768,125	$ 4,614,500
Cash dividends per share (NT$)	$ 2.5	$ 2.0
	Fourth Quarter of 2023	Second Quarter of 2023
Board of directors in its meeting	February 26, 2024	July 28, 2023
Legal reserve	$ 794,416	$ 662,121
Special reserve	$ 413,174	$ 288,124
Cash dividends	$ 5,782,825	$ 4,656,704
Cash dividends per share (NT$)	$ 2.5	$ 2.0

The above-mentioned cash dividends had been resolved by the Company's board of directors; the other proposed appropriations had been resolved by the shareholders in their meetings on May 20, 2025 and May 27, 2024.

The appropriations of the earnings in 2025, which were resolved by the Company's board of directors, were as follows:

	Fourth Quarter of 2025	Second Quarter of 2025
Board of directors in its meeting	February 25, 2026	July 30, 2025
Legal reserve	$ 718,556	$ 666,950
Special reserve	$ (5,445,838)	$ 7,440,154
Cash dividends	$ 6,830,327	$ 4,553,552
Cash dividends per share (NT$)	$ 3.0	$ 2.0

The above-mentioned cash dividends had been resolved by the Company's board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting on May 20, 2026.

d. Other equity items

Movements in other equity items were as follows:

	For the Year Ended December 31, 2025
	Foreign Currency Translation Reserve	Unrealized Gain (Loss) from Financial Assets at FVTOCI	Unearned Employees' Compensation	Total
Balance at January 1	$ 1,042,491	$ 132,628	$ (163,622)	$ 1,011,497
Exchange differences on translating foreign operations	(4,035,878)	-	-	(4,035,878)
Unrealized gain on equity instruments designated as at FVTOCI	-	(379,869)	-	(379,869)
Share of associates accounted for using the equity method	(28,964)	15,893	-	(13,071)
Disposal of foreign operations	566,104	-	-	566,104
Disposal of interests in associates accounted for using the equity method	1,715	448	-	2,163
Adjustment of unvested RSAs	-	-	406,981	406,981
Recognition of share-based payment expense	-	-	(269,073)	(269,073)
Adjustment of employee turnover rates	-	-	7,806	7,806
Income tax expense	691,117	-	-	691,117
Balance at December 31	$ (1,763,415)	$ (230,900)	$ (17,908)	$ (2,012,223)
	For the Year Ended December 31, 2024
---	---	---	---	---
	Foreign Currency Translation Reserve	Unrealized Gain (Loss) from Financial Assets at FVTOCI	Gain (Loss) on Hedging Instruments	Unearned Employees' Compensation
Balance at January 1	$ (3,025,024)	$ (296,476)	$ -	$ (510,034)
Exchange differences on translating foreign operations	5,143,775	-	-	-
Unrealized gain on equity instruments designated as at FVTOCI	-	437,389	-	-
Share of associates accounted for using the equity method	56,504	(976)	-	-

52 -

	For the Year Ended December 31, 2024
	Foreign Currency Translation Reserve	Unrealized Gain (Loss) from Financial Assets at FVTOCI	Gain (Loss) on Hedging Instruments	Unearned Employees’ Compensation	Total
Acquisition of interests in subsidiaries	$ (114,028)	$ -	$ -	$ -	$ (114,028)
Disposal of subsidiaries	10,539	-	-	-	10,539
Cumulative gain of equity instruments transferred to retained earnings due to disposal	-	(7,309)	-	-	(7,309)
Loss on fair value changes of cash flow hedges	-	-	(124,592)	-	(124,592)
Transferred to initial carrying amount of hedged items	-	-	124,592	-	124,592
Adjustment of unvested RSAs	-	-	-	351,943	351,943
Recognition of share-based payment expense	-	-	-	(19,277)	(19,277)
Adjustment of employee turnover rates	-	-	-	13,746	13,746
Income tax effect	(1,029,275)	-	-	-	(1,029,275)
Balance at December 31	$ 1,042,491	$ 132,628	$ -	$ (163,622)	$ 1,011,497

e. Non-controlling interests

	For the Year Ended December 31
	2025	2024
Balance at January 1	$ 137,571	$ 686,816
Attributable to non-controlling interests:
Net profit (loss) for the year	(4,140)	18,545
Exchange differences on translation foreign entities	(5,777)	29,585
Remeasurement on defined benefit plans	-	(1,379)
Income tax relating to other comprehensive income	-	416
Disposal of subsidiaries	-	(270,711)
Actual acquisition of partial interests of subsidiaries	-	(311,291)
Acquisition of non-controlling interests in subsidiaries	29,074	-
Changes in non-controlling interests	-	(14,410)
Balance at December 31	$ 156,728	$ 137,571

f. Treasury shares

Unit: In Thousands of Shares
Purpose of Buyback	Number of Shares at January 1	Increase During the Year	Decrease During the Year	Number of Shares at December 31
For the year ended December 31, 2025
Shares held by subsidiaries	7,004	-	-	7,004
Shares transferred to employees	40,000	-	-	40,000
Shares cancelled	-	24,219	(24,219)	-
	47,004	24,219	24,219	47,004
For the year ended December 31, 2024
Shares held by subsidiaries	7,004	-	-	7,004
Shares transferred to employees	40,000	-	-	40,000
	47,004	-	-	47,004

The Company’s shares held by its subsidiaries at the end of the reporting periods were as follows:

Name of Subsidiary	Number of Shares Held (In Thousands)	Carrying Amount	Market Price
December 31, 2025
TITANIC CAPITAL SERVICES LTD.	7,004	$ 297,469	$1,145,190
December 31, 2024
TITANIC CAPITAL SERVICES LTD.	7,004	$ 297,469	$ 696,920

On April 9, 2025, in order to maintain the Company’s credit and shareholders’ equity, the Company’s board of directors resolved to buy back and cancel the shares. The Company planned to buy back 130,000 thousand shares listed on the Taiwan Stock Exchange from April 10, 2025 to June 9, 2025, with the buyback price ranging from $53.83 to $154.79 per share. When the Company’s stock price is below the set floor price, the Company will continue its exercise plan. As of December 31, 2025, a total of 24,219 thousand treasury shares had been repurchased and cancelled.

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as the rights to dividends and to vote. The subsidiaries holding treasury shares, however, retain shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.

24. REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from the sale of goods	$ 165,609,896	$ 137,031,327
Rental income
Rental income from property	474,963	102,567
	$ 166,084,859	$ 137,133,894

a. Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Trade receivables (Note 11)	$ 42,004,486	$ 37,060,192	$ 31,586,425
Contract assets - current Sales of goods	$ 138,925	$ 191,962	$ 196,129
Contract liabilities - current Sales of goods	$ 440,197	$ 309,428	$ 69,807

The Group measures the loss allowance for contract assets at an amount equal to lifetime ECLs. The expected credit loss during the lifetime ECLs is calculated by taking into account the past default experience of the customer, the customer's current financial position, possible recoverable amounts, and the forward-looking factors.

	December 31
	2025	2024
Gross carrying amount	$ 151,297	$ 204,506
Allowance for impairment loss (lifetime ECLs)	(12,372)	(12,544)
	$ 138,925	$ 191,962

The movements of the loss allowance of contract assets were as follows:

	For the Year Ended December 31
	2025	2024
Balance at January 1	$ 12,544	$ 13,409
Recognition (reverse) of loss allowance	157	(1,367)
Amounts written off	(330)	-
Foreign exchanges gain and losses	1	502
Balance at December 31	$ 12,372	$ 12,544

Revenue in the years of 2025 and 2024 that were recognized from the contract liability balance at the beginning of year were $43,097 thousand and $69,807 thousand, respectively.

b. Disaggregation of revenue

Refer to Note 40 for segment revenue information.

25. NET PROFIT

	For the Year Ended December 31
	2025	2024
a. Other gains and losses
Net gain (loss) on foreign currency exchange	$ 2,046,798	$ (1,258,683)
Net gain (loss) on financial assets at fair value through profit or loss - forward exchange contracts and FX swaps	(430,990)	2,538,260
Net gain (loss) on financial assets at fair value through profit or loss - others	(524,802)	269,251
Net gain (loss) on disposal of property, plant and equipment	29,445	84,661
Net loss on disposal of intangible assets	(57)	-
Impairment loss	(7,577)	(420,368)
Net loss on disposal of subsidiaries	(566,104)	(9,434)
Gain from bargain purchase	-	662
Other losses	(79,863)	(837,227)
	$ 466,850	$ 367,122
b. Finance costs
Interest on borrowings	$ 1,385,020	$ 1,478,295
Interest on lease liabilities	44,784	38,169
	$ 1,429,804	$ 1,516,464
c. Depreciation and amortization
Property, plant and equipment	$ 2,852,048	$ 3,254,750
Right-of-use assets	593,519	557,085
Intangible assets	193,625	204,871
Investment properties	29,183	29,808
	$ 3,668,375	$ 4,046,514
An analysis of depreciation by function
Recognized in operating costs	$ 2,122,843	$ 2,366,995
Recognized in operating expenses	1,323,387	1,445,172
Recognized in non-operating expenses	28,520	29,476
	$ 3,474,750	$ 3,841,643
An analysis of amortization by function
Recognized in operating costs	$ 16,705	$ 18,124
Recognized in operating expenses	176,920	186,747
	$ 193,625	$ 204,871
		(Continued)

For the Year Ended December 31
2025 2024

d. Employee benefit expenses

Post-employment benefits
Defined contribution plans	$ 524,859	$ 627,714
Defined benefit plans (Note 22)	1,724	4,387
	526,583	632,101
Share-based payment - equity-settled	(269,073)	(19,277)
Termination benefits	152,010	501,906
Other employee benefits	22,592,216	19,015,680
	$ 23,001,736	$ 20,130,410
Employee benefits expense summarized by function
Recognized in operating costs	$ 13,406,449	$ 11,271,258
Recognized in operating expenses	9,595,287	8,859,152
	$ 23,001,736	$ 20,130,410
		(Concluded)

e. Compensation of employees and remuneration of directors

In compliance with the Articles, the Company accrues compensation of employees and remuneration of directors at rates of no less than 1% and no higher than 1.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of no less than 0.4% of net profit before income tax, compensation of employees, and remuneration of directors as compensation distributions for non-executive employees. The compensation of employees (including non-executive employees) and remuneration of directors for 2025 and 2024, which were approved by the Company's board of directors on February 25, 2026 and February 26, 2025, respectively, are as follows:

For the Year Ended December 31
2025 2024

	2025		2024
	Cash	Shares	Cash	Shares
Compensation of employees	$ 2,047,106	$ -	$ 1,625,300	$ -
Remuneration of directors	220,284	-	165,993	-

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate and will be adjusted in the next year.

There was no difference between the approved amounts of the compensation of employees and the remuneration of directors and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on the compensation of employees and remuneration of directors resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

56 -

57 -

26. INCOME TAX

a. Income tax recognized in profit or loss

Major components of tax expense were as follows:

	For the Year Ended December 31
	2025	2024
Current income tax expense
In respect of the current year	$ 4,452,233	$ 3,786,611
Adjustments for prior year	58,053	(293,456)
	4,510,286	3,493,155
Deferred income tax expense
The recognition and reversal of temporary differences	91,087	180,984
Income tax expense recognized in profit or loss	$ 4,601,373	$ 3,674,139

A reconciliation of accounting profit and income tax expense recognized in profit or loss is as follows:

	For the Year Ended December 31
	2025	2024
Income before Income tax	$ 19,713,167	$ 15,634,635
Income tax expense calculated at the statutory rate	$ 4,601,053	$ 3,674,139
Deductible (nondeductible) items in determining taxable income	(148,820)	112,472
The recognition and reversal of temporary differences	91,087	180,984
Adjustments for prior year	58,053	(293,456)
Income tax expense recognized in profit or loss	$ 4,601,373	$ 3,674,139

b. Income tax expense (benefit) recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
Income tax recognized in other comprehensive income
Translation of foreign operations	$ (693,759)	$ 1,041,158
Remeasurement on defined benefit plans	12,030	38,639
Share of other comprehensive (loss) income of associates accounted for using the equity method	2,642	(11,883)
	$ (679,087)	$ 1,067,914

c. Deferred income tax

The movements of deferred tax assets were as follows:

	Opening Balance	Recognized in Profit (Loss)	Recognized in Other Comprehensive Income (Loss)	Exchange Differences	Closing Balance
For the year ended December 31, 2025
Temporary differences
Investment accounted for using the equity method	$ 86,146	$ 60,311	$ 465,140	$ 14	$ 611,611
Impairment loss on assets	562,381	-	-	-	562,381
Operating loss carryforward	156,510	(61,414)	-	281	95,377
Accrued warranty expense	136,566	(45,202)	-	(419)	90,945
Unrealized loss on inventories	298,013	69,400	-	(5,976)	361,437
Unrealized loss and expense	18,412	4,472	-	804	23,688
Defined benefit obligations	15,505	-	(7,835)	-	7,670
Others	353,983	138,774	-	(140)	492,617
	$ 1,627,516	$ 166,341	$ 457,305	$ (5,436)	$ 2,245,726
For the year ended December 31, 2024
Temporary differences
Investment accounted for using the equity method	$ 902,816	$ (13,374)	$ (803,301)	$ 5	$ 86,146
Impairment loss on assets	562,381	-	-	-	562,381
Operating loss carryforward	164,102	(7,440)	-	(152)	156,510
Accrued warranty expense	158,844	(23,355)	-	1,077	136,566
Unrealized loss on inventories	379,751	(90,504)	-	8,766	298,013
Unrealized loss and expense	4,465	13,799	-	148	18,412
Defined benefit obligations	54,955	(811)	(38,639)	-	15,505
Others	397,593	(60,843)	-	17,233	353,983
	$ 2,624,907	$ (182,528)	$ (841,940)	$ 27,077	$ 1,627,516

The movements of deferred tax liabilities were as follows:

	Opening Balance	Recognized in Loss (Profit)	Recognized in Other Comprehensive Loss (Income)	Exchange Differences	Closing Balance
For the year ended December 31, 2025
Temporary differences
Investment accounted for using the equity method	$ 694,408	$ 663,528	$ (225,977)	$ -	$ 1,131,959
Unrealized amortization of goodwill	511,656	-	-	-	511,656
Land value increment tax	270,843	-	-	-	270,843
Unrealized net exchange gains	195,515	(179,583)	-	5,087	21,019
Defined benefit obligations	2,238	30	4,195	-	6,463
Others	398,959	(226,547)	-	(6,771)	165,641
	$ 2,073,619	$ 257,428	$ (221,782)	$ (1,684)	$ 2,107,581
For the year ended December 31, 2024
Temporary differences
Investment accounted for using the equity method	$ 476,695	$ (8,261)	$ 225,974	$ -	$ 694,408
Unrealized amortization of goodwill	511,656	-	-	-	511,656
Land value increment tax	270,843	-	-	-	270,843
Unrealized net exchange gains	353,995	(167,835)	-	9,355	195,515
Others	215,219	174,552	-	11,426	401,197
	$ 1,828,408	$ (1,544)	$ 225,974	$ 20,781	$ 2,073,619

58 -

d. Income tax assessments

The tax returns of the Company through 2022 have been assessed by the tax authorities.

27. EARNINGS PER SHARE

Unit: NT$ Per Share

	For the Year Ended December 31
	2025	2024
Basic earnings per share	$ 6.64	$ 5.21
Diluted earnings per share	$ 6.59	$ 5.15

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Net profit attributable to owners of the Company	$ 15,115,934	$ 11,941,951

Weighted Average Number of Ordinary Shares Outstanding

Unit: In Thousands of Shares

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares outstanding used in computation of basic earnings per share	2,275,495	2,291,746
Effect of potentially dilutive ordinary shares:
Compensation of employees	14,819	19,131
Employee restricted shares	2,176	7,007
Weighted average number of ordinary shares outstanding in computation of dilutive earnings per share	2,292,490	2,317,884

The Company may settle the bonuses or remuneration paid to employees in cash or shares; therefore, the Company presumes that the entire amount of the bonus or remuneration will be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

60 -

28. SHARE-BASED PAYMENT ARRANGEMENTS

Employee restricted stock awards (RSAs)

The issuance of RSAs for 2022 (2022 RSAs) of no more than 18,700 thousand common shares has been approved by the Company’s shareholders in their meeting held on May 20, 2022. The grants will be made free of charge. The Company’s board of directors approved the issuance of RSAs of 12,216 thousand and 6,484 thousand shares on September 20, 2022 and April 27, 2023, respectively, and the Company’s board of directors authorized the Chairman to determine that November 15, 2022 and May 19, 2023 to be the record date of the issuance of new shares, respectively.

a. Vesting conditions of the aforementioned arrangement are as follows:

1) If an employee, after having been granted a restricted stock award, who remains on the job on the vesting date, is determined by the Company as having not violated the employment contract, employee handbook, non-competition and non-disclosure agreement of the Company or any other agreement with the Company, and has fulfilled the individual performance goals and the Company’s operational goals set by the Company, proportions of the vesting shares to be granted for such employee on the vesting date each year is as follows:

a) First anniversary of the grant: 30%.
b) Second anniversary of the grant: 30%.
c) Third anniversary of the grant: 40%.

2) Employee’s year-end performance rating shall be PL3 rating (Note: PL3 represents “Meets Expectations”) and above.

3) The Company’s operational goals are either one of the follows:

a) The consolidated gross margin of the year (e.g., Year 1) prior to the end of the vesting period shall be equal to or higher than the consolidated gross margin of the previous year (e.g., Year 0), and the amount of consolidated operating profit (in Year 1) must increase by minimum 10% compared with that in the previous year (Year 0).
b) The consolidated gross margin and operating margin for the year prior to the end of the vesting period are equal to or higher than 20% and 10%, respectively.

b. Restrictions applicable prior to vesting:

1) Recipient shall have no right to sell, transfer (other than by laws of inheritance), pledge, mortgage, hypothecate, gift or otherwise dispose of the Shares prior to such Shares being fully vested.

2) Unvested Shares shall have the same rights to attend the Company’s shareholders’ meeting, submit proposals, or speak and vote at the meeting as those attached to other issued shares of the Company’s common stock. However, the exercise of such rights shall be performed in accordance with the trust agreement.

3) Unvested Shares shall have the same rights to receive cash, stock dividends and distributions from capital reserve, as well as the same share subscription rights as those attached to other issued shares of the Company’s common stock. However, with respect to unvested Shares, the Recipients shall have no right to withdraw the cash and stock dividends received on such Shares; such dividends shall be kept in trust in accordance with the trust agreement.

c. Failure to meet vesting conditions:

1) If either (i) the Recipient has ceased their employment as of the Vesting Date, (ii) the Recipient has violated any provisions of the employment contract, work rules, non-competition, non-disclosure and/or any other agreement entered into with the Company/Affiliate, (iii) the individual and/or company-level performance requirements have not been met; or (iv) the Recipient has, in violation of subparagraph 1, paragraph 8, Article 5 of “The Issuance Rules of 2022 Employee Restricted Stock Awards Plan”, demanded modification, revocation, termination, suspension or cancelation of the authorization granted to the Company as related to the trust/custody account, the Company shall have the power to repurchase for no consideration and cancel any Shares that have not vested pursuant to this Article.

2) The Company shall also repurchase for no consideration and cancel any unvested Shares in the event of voluntary or involuntary termination of the Recipient’s employment.

Details of granted RSAs are as follows:

| | Number of Stocks (In Thousands)
For the Year Ended December 31 | | |
| --- | --- | --- | --- |
| | Approval Date
September 20, 2022 | Approval Date
April 27, 2023 | Total |
| Balance at January 1, 2025 | 4,160 | 4,329 | 8,489 |
| Withdrawal (expired amount) | (4,160) | (2,095) | (6,255) |
| Balance at December 31, 2025 | - | 2,234 | 2,234 |
| Balance at January 1, 2024 | 7,930 | 6,484 | 14,414 |
| Withdrawal (expired amount) | (3,725) | (2,155) | (5,880) |
| Remove notation of restriction | (45) | - | (45) |
| Balance at December 31, 2024 | 4,160 | 4,329 | 8,489 |
| Weighted-average fair value of RSAs granted (in dollars) | $ 67.73 | $ 72.80 | |

The Company withdrew 6,255 thousand shares of RSAs during 2025. A total of 12,994 thousand shares of RSAs had been withdrawn as of December 31, 2025.

The RSAs are measured at fair value on the grant date using market value method. The fair value is based on the market value per share on the grant date, minus the discounted value of dividends received derived from average dividend yield over the past three years.

Refer to Note 25 for the employee compensation costs of the RSAs recognized by the Company.

EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In December 2024, the Group acquired of its interest in Philips & Lite-On Digital Solutions Corporation, and increased its continuing interest from 49% to 100%.

The above transactions were accounted for as equity transactions, since the Group did not cease to have control over these subsidiaries.

	Philips & Lite-On Digital Solutions Corporation
Consideration paid	$ (267,000)
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to non-controlling interests	311,291
Reattribution of other equity to non-controlling interests
Exchange differences on translating the financial statements of foreign operations	114,028
Differences recognized from equity transactions	$ 158,319
Line items adjusted for equity transactions
Capital surplus - difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	$ 158,319

30. DISPOSAL OF SUBSIDIARIES

Since May 2024, the Group has no longer had the ability to control the financial and operational policies of its subsidiaries SKYLA CORPORATION and SKYLA (SHANGHAI) LTD. ("Skyla and its subsidiary"). After evaluation, the Group determined that it had lost control over Skyla and its subsidiary.

a. Analysis of assets and liabilities on the date control was lost

	Skyla and Its Subsidiary
Current assets
Cash and cash equivalents	$ 405,824
Inventory	82,909
Other current assets	76,777
Non-current assets
Property, plant and equipment	95,855
Other non-current assets	45,072
Current liabilities
Other payables	(101,177)
Other current liabilities	(60,353)
Non-current liabilities
Other non-current liabilities	(59,107)
Net assets disposed of	$ 485,800

b. Loss on disposal of subsidiary

	Skyla and Its Subsidiary
Consideration received	$ 214,158
Net assets disposed of	(485,800)
Non-controlling interests	270,711
Reclassification of other comprehensive income in respect of subsidiaries	138
Loss on disposals	$ (793)

c. Net cash outflow on disposals of subsidiaries

	Skyla and Its Subsidiary
Cash and cash equivalent balances disposed of	$ 405,824

31. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

The Group’s capital management system aims to ensure that the necessary financial resources and operating plan are sufficient to meet the next 12 months’ requirements for working capital, capital expenditures, research and development expenses, debt repayment, dividend payments and other needs.

32. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

For certain financial instruments that are not measured at fair value but measured at amortized cost - including cash and cash equivalents, notes receivable, trade receivables including related parties, other receivables including related parties, refundable deposits, financial assets at amortized costs, short-term borrowings, notes payable, trade payables including related parties, other payables including related parties, long-term borrowings and guarantee deposits, the Group’s management considers the carrying amounts of these financial instruments recognized in the consolidated financial statements as approximating their fair values.

b. Fair value of financial instruments that are measured at fair value on a recurring basis

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative instruments	$ -	$ 971,862	$ -	$ 971,862
Mutual funds	-	646,720	-	646,720
Domestic listed shares and emerging market shares	11,182	-	-	11,182
Foreign warrant	-	-	101,289	101,289
Foreign convertible preferred stocks	-	-	290,240	290,240
	$ 11,182	$ 1,618,582	$ 391,529	$ 2,021,293
Financial assets at FVTOCI
Investments in equity instruments
Foreign listed shares	$ 215,180	$ -	$ -	$ 215,180
Foreign unlisted shares	-	-	4,103	4,103
Domestic listed shares	56,836	-	-	56,836
Domestic innovation board listed shares	665,222	-	-	665,222
Domestic unlisted shares	-	-	94,454	94,454
	$ 937,238	$ -	$ 98,557	$ 1,035,795
Financial liabilities at FVTPL
Derivative instruments	$ -	$ 430,380	$ -	$ 430,380
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative instruments	$ -	$ 932,733	$ -	$ 932,733
Mutual funds	-	829,991	-	829,991
Domestic listed shares and emerging market shares	13,703	-	-	13,703
Foreign convertible preferred stocks	-	-	286,385	286,385
	$ 13,703	$ 1,762,724	$ 286,385	$ 2,062,812

(Continued)

65 -

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
Foreign unlisted shares	$ -	$ -	$ 4,493	$ 4,493
Domestic listed shares	54,487	-	-	54,487
Domestic innovation board listed shares	846,947	-	-	846,947
Domestic unlisted shares	-	-	92,766	92,766
	$ 901,434	$ -	$ 97,259	$ 998,693
Financial liabilities at FVTPL
Derivative instruments	$ -	$ 7,011	$ -	$ 7,011
				(Concluded)

There were no transfers between Levels 1 and 2 for the year ended December 31, 2025.

There was a transfer between Levels 1 and 2 for the year ended December 31, 2024, due to the reclassification of a domestic share listed on the Innovation Board from inactive to active. Therefore, the related amount was transferred from Level 2 to Level 1.

2) Reconciliation of Level 3 fair value measurements of financial instruments

The financial assets measured at Level 3 fair value were financial assets at FVTPL and equity investments classified as financial assets at FVTOCI. Reconciliations for the years ended December 31, 2025 and 2024 were as follows:

	For the Year Ended December 31
	2025	2024
Balance, beginning of period	$ 383,644	$ 1,595,970
Total gains or losses
Recognized in loss	(104,775)	(3,567)
Recognized in other comprehensive income	1,298	69,241
Additions	289,448	-
Disposals	(79,529)	(1,278,000)
Balance, end of period	$ 490,086	$ 383,644

3) Valuation techniques and inputs applied for the purpose of Level 2 fair value measurement

Financial Instruments	Valuation Techniques and Inputs
Derivative instruments - forward exchange contracts	Estimation of future cash flows using observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
Derivative instruments - currency swaps	Estimation of fair value of a currency swap is based on its principal and interest rate on mutual agreement and the suitable discount rate that reflects the credit risk of various counterparties at the end of the reporting period.
Mutual funds	Obtain the financial information of underlying assets, evaluate its market value, analyze the amount to be adjusted, and consider minority interest and liquidity reduction.

4) Valuation techniques and inputs applied for the purpose of Level 3 fair value measurement

a) Derivative instruments - the fair values of warrants are determined using option pricing models where the significant unobservable input is historical volatility. An increase in the historical volatility used in isolation would result in an increase in the fair value.

b) Level 3 fair value is measured by using asset-based approach, market approach and income approach. The asset-based approach assesses the fair value by calculating the value of net assets. The comparable company method of market approach is based on the profitability at the reporting period to select the market multiplier of comparable companies. The income approach is based on the discounted cash flow method used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees.

The valuation method is chosen by the Group after deliberate assessment. Therefore, the fair value measurement is deemed to be reasonable. However, the adoption of different valuation models or fair value may lead to different valuation results.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Mandatorily classified as at FVTPL	$ 2,021,293	$ 2,062,812
Financial assets at amortized cost (1)	125,565,768	140,215,249
Investment in equity instruments at FVTOCI	1,035,795	998,693
Financial liabilities
FVTPL
Held for trading	430,380	7,011
Amortized cost
Short-term borrowings	20,029,354	30,187,483
Payables (2)	75,283,687	62,894,578
Long-term borrowings	3,000,000	3,000,000

1) The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, trade receivables, trade receivables from related parties, other receivables, other receivables from related parties and refundable deposits.

2) The balances included financial liabilities measured at amortized cost, which comprise notes payable, trade payables, trade payables to related parties, other payables, other payables to related parties and guarantee deposits.

d. Financial risk management objectives and policies

The Group’s major financial instruments include equity investments, trade receivables, trade payables, borrowings and lease liabilities. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (comprising foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group sought to minimize the effects of these risks by using financial derivatives to hedge risk exposures. The use of financial derivatives was governed by the Group’s policies approved by the board of directors, which provided written guidelines on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk, including forward exchange contracts and FX swaps to hedge the exchange rate risk arising from exports.

There were no changes to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Group had foreign currency sales and purchases, and foreign equity investments, which exposed the Group to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing foreign currency deposits, forward exchange contracts and FX swaps. It is within the Group’s policy to negotiate the terms of the foreign deposits hedge derivatives to match the terms of the hedged item to maximize hedge effectiveness.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 38.

The Group required all its entities to use foreign deposits, forward exchange contracts and FX swaps to eliminate currency exposure. It is within the Group’s policy to negotiate the terms of the hedge derivatives to match the terms of the hedged item to maximize hedge effectiveness.

Sensitivity analysis

The Group was mainly exposed to the U.S. dollar.

67 -

The following table details the Group's sensitivity to a 5% increase and decrease in New Taiwan dollars (i.e., the functional currency) against the U.S. dollar. The sensitivity analysis included only outstanding foreign currency denominated monetary items. A number below indicates an impact on pre-tax profit due to a 5% strengthening of the U.S. dollar against the New Taiwan dollar.

	USD Impact
	For the Year Ended December 31
	2025	2024
Profit(loss)	$ 881,717	$ (911,740)

Hedge accounting

The Group's hedging strategy is to buy foreign currency deposits to avoid exchange rate exposure of its foreign significant equity investments. Those transactions are designated as cash flow hedges.

For the year ended December 31, 2024

| Comprehensive Income | Hedging Losses
Recognized in
OCI | Amount of
Hedge
Ineffectiveness
Recognized in
Profit or Loss | Line Item in
Which Hedge
Ineffectiveness
Is Included | Amount Reclassified to P/L and
the Adjusted Line Item | |
| --- | --- | --- | --- | --- | --- |
| | | | | Due to Hedged
Item Affecting
P/L | Due to Hedged
Future Cash
Flows No
Longer
Expected to
Occur (iv) |
| Cash flow hedge | $(124,592) | $ - | $ - | $ - | $ - |

For the year ended December 31, 2024, the amount of investments transferred from hedge instruments upon settlement accounted for using the equity method was increased by $124,592 thousand.

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate portfolio of fixed and floating rate borrowings.

The carrying amounts of the Group's financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets (i)	$ 61,582,638	$ 78,587,444
Financial liabilities (ii)	21,329,602	29,362,700
Cash flow interest rate risk
Financial assets (iii)	18,816,917	21,388,928
Financial liabilities (iv)	3,000,000	5,000,000

i. The balances included time deposits and financial assets at amortized cost with fixed interest rates.

ii. The balances included financial liabilities exposed to fair value risk from interest rate fluctuation.

iii. The balances included demand deposits and financial assets at amortized cost with floating interest rates.

iv. The balance included financial liabilities exposed to cash flow risk from interest rate fluctuation.

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming that amount of the liability outstanding at the end of the reporting period was outstanding for the whole reporting period.

If interest rates had been 25 basis points higher and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2025 and 2024 would have increased by $39,542 thousand and $40,972 thousand, respectively.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities. Equity investments are held for strategic rather than trading purposes. The Group does not actively trade these investments.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 10% higher, the profit before income tax for the years ended December 31, 2025 and 2024 would have increased by $1,118 thousand and $1,370 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL. The pre-tax other comprehensive income for the years ended December 31, 2025 and 2024 would have increased by $93,724 thousand and $90,143 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group is exposed to credit risk from trade receivables, deposits, and other financial instruments. Credit risk on business-related exposures is managed separately from that on financial-related exposures.

a) Business related credit risk

To maintain the quality of receivables, the Group has established operating procedures to manage credit risk.

For individual customers, risk factors considered include the customer’s financial position, credit rating agency rating, the Group’s internal credit rating, and transaction history as well as current economic conditions that may affect the customer’s ability to pay. The Group also has the right to use some credit protection enhancement tools, such as requiring advance payments, to reduce the credit risks involving certain customers.

69 -

b) Financial related credit risk

Bank deposits and other financial instruments are credit risk sources required by the Group’s Department of Finance Department to be measured and monitored. However, since the Group’s counterparties are all reputable financial institutions and government agencies, there is no significant financial credit risk.

3) Liquidity risk

The objective of liquidity risk management is to maintain sufficient cash and cash equivalents for operating needs, in order to ensure that the Group has sufficient financial flexibility.

The table below summarizes the maturity profile of the Group’s non-derivative financial liabilities based on contractual undiscounted payments:

December 31, 2025

	Weighted Average Effective Interest Rate (%)	On Demand or Less than 1 Year	1-3 Years	Over 3 Years to 5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing liabilities	-	$ 75,140,024	$ 143,663	$ -	$ -
Lease liabilities	1.00%-8.25%	485,874	569,976	181,489	113,420
Floating interest rate liabilities	1.74%	52,050	3,035,223	-	-
Fixed interest rate liabilities	1.76%-5.12%	20,112,506	-	-	-
		$ 95,790,454	$ 3,748,862	$ 181,489	$ 113,420

December 31, 2024

	Weighted Average Effective Interest Rate (%)	On Demand or Less than 1 Year	1-3 Years	Over 3 Years to 5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing liabilities	-	$ 62,772,661	$ 121,917	$ -	$ -
Lease liabilities	1.00-8.25	526,383	523,322	158,444	104,022
Floating interest rate liabilities	1.74-1.90	2,068,187	3,087,273	-	-
Fixed interest rate liabilities	1.80-5.75	28,273,994	-	-	-
		$ 93,641,225	$ 3,732,512	$ 158,444	$ 104,022

The table below summarizes the maturity profile of the Group’s derivative financial instruments based on contractual undiscounted payments:

December 31, 2025

	On Demand or Less than 1 Year	1-3 Years	Over 3 Years to 5 Years	5+ Years
Forward exchange contracts
Inflows	$ 51,111,684	$ -	$ -	$ -
Outflows	(50,296,490)	-	-	-
	815,194	-	-	-
FX swaps
Inflows	6,063,131	-	-	-
Outflows	(6,053,445)	-	-	-
	9,686	-	-	-
	$ 824,880	$ -	$ -	$ -

December 31, 2024

	On Demand or Less than 1 Year	1-3 Years	Over 3 Years to 5 Years	5+ Years
Forward exchange contracts
Inflows	$ 22,940,813	$ -	$ -	$ -
Outflows	(21,937,875)	-	-	-
	1,002,938	-	-	-
FX swaps
Inflows	2,584,540	-	-	-
Outflows	(2,515,810)	-	-	-
	68,730	-	-	-
	$ 1,071,668	$ -	$ -	$ -

33. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries, which were related parties of the Company, had been eliminated on consolidation and are not disclosed in this note. Besides as disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Related parties and relationships

Related Parties	Relationships with the Group
Silitech Technology Corporation	Associate
DragonJet Corporation	Associate
SKYLA CORPORATION	Associate
SKYLA (SHANGHAI) LTD.	Associate
Lite-On Cultural Foundation	Related party in substance
Cosel Co., Ltd.	Associate
Wuxi Cosel Electronics Co., Ltd.	Associate
COSEL USA INC.	Associate

b. Sales of goods

	For the Year Ended December 31
Related Parties	2025	2024
Associate	$ 22,942	$ 9,396
Related party in substance	401	401
	$ 23,343	$ 9,797

The sales terms between the Group and its related parties were not significantly different as those between the Group and non-related parties.

Lease contracts with related parties were based on market prices and made under mutual agreements and normal terms. The market prices and contract terms between the Group and its related parties did not have material difference as those between the Group and non-related parties.

c. Purchases of goods

Related Party Category	For the Year Ended December 31
	2025	2024
Associate	$ 3,496	$ 1,041

The purchase terms between the Group and its related parties did not have material difference as those between the Group and non-related parties.

d. Receivables from related parties

	December 31
Related Party Category	2025	2024
Trade receivables
Associate	$ 5,591	$ 5,418
Other receivables
Associate	$ 45,735	$ 26,430

The outstanding trade receivables from related parties are unsecured. No allowance for doubtful accounts was recognized for trade receivables from related parties for the years ended December 31, 2025 and 2024.

e. Payables to related parties

	December 31
Related Party Category	2025	2024
Trade payables
Associate	$ 1,805	$ 712

The outstanding trade payables to related parties are unsecured.

f. Operating expenses

Related Party Category	For the Year Ended December 31
	2025	2024
Related party in substance	$ 10,000	$ 10,000

The Group recognized and paid associated donation expenses of $10,000 thousand for both years ended December 31, 2025 and 2024, to help Lite-On Cultural Foundation, a related party in substance, facilitate communal, cultural and educational projects.

g. Other income

Related Party Category	For the Year Ended December 31
	2025	2024
Associates	$ 788	$ 23,238
Related party in substance	-	44
	$ 788	$ 23,282

h. Advance received

	Purchase Price
	For the Year Ended December 31
Related Party Category	2025	2024
Associates	$ 16,482	$ 7,154

i. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 401,006	$ 343,230
Post-employment benefits	1,522	1,226
Share-based payment	(91,764)	(16,205)
	$ 310,764	$ 328,251

The remuneration of directors and key executives was determined by the remuneration committee, based on the performance of individuals and market trends. The share-based payments include the reversal of compensation for the reclaimed number of issued shares.

74 -

34. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

	December 31
	2025	2024
Pledged time deposits (classified as financial assets at amortized cost)	$ 418,854	$ 375,743

The above assets include the guarantee deposits provided by the Company for participating in government, general bidding projects and purchase of offshore wind power, as well as deposits provided by the subsidiaries and pledged to the customs authorities as collateral for customs duties related to advance shipment clearance.

35. SIGNIFICANT UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments of the Group as of the balance sheet dates were as follows:

a. For operational and production needs, the Group entered into a contract with VILAI VIET CONSTRUCTION JOINT STOCK COMPANY for the Phase I construction of the Quang Ninh plant in Vietnam in the first quarter of 2025 under a land lease and build-to-suit arrangement. The total contract amount shall not exceed VND2,436,000,000 thousand, approximately equivalent to NT$3,166,800 thousand.

b. In the first quarter of 2024, the Group signed an electrical and mechanical contract with Marketech International Corp. for the Phase II plant of Kaohsiung Manufacturing Center to build on the rented land. The total contract amount did not exceed $1,590,750 thousand.

36. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

On January 21, 2026, the Company's Board of Directors resolved to launch a public tender offer for the common shares of U-MEDIA Communications, Inc. for strategic investment purposes. The tender offer proposes to acquire up to 37,694 thousand shares at a cash consideration of NT$54 per share. The tender offer period is from January 23 to March 12, 2026.

37. OTHER ITEMS

In order to enrich working capital and repay bank loans, the Company's board of directors resolved to issue the first and second domestic unsecured convertible corporate bonds on October 29, 2025. The face value per bond is $100 thousand, with a maximum total issuance amount of $12,000,000 thousand. The issuance price will not be less than 101% and 100% of face value, respectively. The issuance period is 5 years, with a 0% coupon rate. The issuance was declared effective by the Financial Supervisory Commission Order No. 1140367332 and No. 11403673321 dated December 23, 2025. As of the date of approval of this consolidated financial report, the unsecured convertible corporate bonds have not been yet issued.

38. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the entities in the Group and the exchange rates between the foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

December 31, 2025

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 2,005,519	31.3650 (USD:NTD)	$ 62,903,106
USD	808,903	6.9798 (USD:CNY)	25,371,235
USD	32,060	31.4600 (USD:THB)	1,005,552
			$ 89,279,893
Financial liabilities
Monetary items
USD	1,443,289	31.3650 (USD:NTD)	$ 45,268,765
USD	468,738	6.9798 (USD:CNY)	14,701,962
			$ 59,970,727
December 31, 2024
	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 1,010,187	7.2876 (USD:CNY)	$ 33,068,484
USD	913,546	32.7350 (USD:NTD)	29,904,915
USD	31,150	33.8800 (USD:THB)	1,019,696
			$ 63,993,095
Financial liabilities
Monetary items
USD	1,470,589	32.7350 (USD:NTD)	$ 48,139,724
USD	530,794	7.2876 (USD:CNY)	17,375,541
			$ 65,515,265

For the years ended December 31, 2025 and 2024, net foreign exchange (losses) gains were $2,046,798 thousand and $(1,258,683) thousand, respectively. It is impractical to disclose net foreign exchange gains or losses by each significant foreign currency due to the variety of the foreign currency transactions of the entities in the Group. For the years ended December 31, 2025 and 2024, net gain (losses) on financial instruments at fair value through profit or loss - forward exchange contracts and FX swaps were $(430,990) thousand and $2,538,260 thousand, respectively.

39. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions:

1) Financing provided to others: See Table 1 below.
2) Endorsements/guarantees provided: See Table 2 below.
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures): See Table 3 below.
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 4 below.
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 5 below.
6) Others: Intercompany relationships and significant intercompany transactions: See Table 8 below.

b. Information on investees: See Table 6 below.

c. Information on investments in mainland China:

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: See Table 7 below.
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: See Tables 4, 5 and 8 below.

40. SEGMENT INFORMATION

a. General information

The Group identified the reportable segments based on the information provided to the chief operating decision maker, and the segments by the types of products included Opto-electronics, Information Technology & Consumer Electronics, and Cloud & AIoT. The types of products are described as follows:

1) Opto-electronics: Optoelectronic semiconductors, roadway intellimation system and automotive electronics.
2) Information Technology & Consumer Electronics: Products used in NB, tablets, DT, gaming and consumer electronics.

3) Cloud and AIoT: Products used in datacenter, server, networking, AIoT, smart devices and video intelligence solutions.

b. Measurement of segment information

The Group uses the income before income tax from operations as the measurement for segment profit and the basis of performance assessment. There was no material difference between the accounting policies of the operating segment and the accounting policies described in Note 4.

c. Segment information

The segment information provided to the chief operating decision maker for the reportable segments is as follows:

	For the Year Ended December 31, 2025
	Opto-electronics	Information Technology and Consumer Electronics	Cloud and AIoT	Elimination	Total
Sales from external customers	$ 27,948,501	$ 63,032,595	$ 75,103,763	$ -	$ 166,084,859
Sales among segments	341,939	1,860,838	28,413	(2,231,190)	-
Operating profit	2,333,312	5,821,647	10,588,066	-	18,743,025
	For the Year Ended December 31, 2024
	Opto-electronics	Information Technology and Consumer Electronics	Cloud and AIoT	Elimination	Total
Sales from external customers	$ 27,892,612	$ 58,535,675	$ 50,705,607	$ -	$ 137,133,894
Sales among segments	296,970	1,386,403	8,338	(1,691,711)	-
Operating profit	1,692,219	6,364,350	5,028,623	-	13,085,192

d. Geographic information

	Revenue from External Customers		Non-current Assets
	For the Year Ended December 31		December 31
	2025	2024	2025	2024
Asia	$ 87,424,655	$ 84,525,091	$ 30,510,560	$ 24,556,083
America	60,624,543	37,808,860	998,740	873,266
Europe	17,637,428	14,571,941	5,435	15,251
Others	398,233	228,002	-	-
	$ 166,084,859	$ 137,133,894	$ 31,514,735	$ 25,444,600

The geographic information is presented by billing regions. Noncurrent assets include property, plant and equipment, right-of-use assets, investment properties, intangible assets and others.

e. Information on major customers

Single customers contributing 10% or more to the Group’s revenue were as follows:

For the Year Ended December 31
	2025		2024
	Sales Revenue	Portion (%)	Sales Revenue	Portion (%)
Customer A	$ 18,783,299	11.31	$ 16,485,123	12.02

f. Reconciliation information for segment profit (loss)

1) The revenue from external parties reported to the chief operating decision maker is used the same accounting policies in consistent with in the statement of comprehensive income.

2) The reconciliation of reportable segments profit (loss) and income before income tax is provided as follows:

	For the Year Ended December 31
	2025	2024
Reportable segments’ profit	$ 18,743,025	$ 13,085,192
Unclassified loss	(2,005,223)	(151,259)
Non-operating income and expenses	2,975,365	2,700,702
Profit before income tax	$ 19,713,167	$ 15,634,635

3) Segment profit represents the profit before tax earned by each segment without unclassified headquarter administration costs, new business research and development-related costs, other income, other gains and losses, finance costs, share of profit or loss of associates accounted for using the equity method, interest income and income tax expense. This was the measure reported to the chief operating decision-maker for the purpose of resource allocation and assessment of segment performance.

78 -

TABLE 1

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

No.	Financing Company	Counterparty	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Interest Rate	Nature for Financing (Note 1)	Transaction Amount	Reasons for Financing	Allowance for Bad Debt	Collateral		Financing Limits for Each Borrowing Company (Note 2)	Financing Company's Total Financing Amount Limits (Note 3)
													Item	Value
1	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	CHANGZHOU LEOTEK NEW ENERGY TRADE LIMITED	Receivables from related parties	Yes	$ 105,368	$ -	$ -	1.90%	b	$ -	Operating capital	$ -	None	$ -	$ 5,589,998	$ 5,589,998
2	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON INTELLIGENT TECHNOLOGY (YENCHENG) CORP.	Receivables from related parties	Yes	33,294	17,975	17,975	1.90%-2.35%	b	-	Operating capital	-	None	-	2,608,898	2,608,898
2	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON TECHNOLOGY (JIANGSU) CO., LTD.	Receivables from related parties	Yes	17,409	-	-	2.25%	b	-	Operating capital	-	None	-	2,608,898	2,608,898
3	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	LITE-ON NEW VENTURES TECHNOLOGY (BEIJING) CO., LTD.	Receivables from related parties	Yes	269,621	269,621	269,621	1.90%	b	-	Operating capital	-	None	-	8,510,104	8,510,104
3	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	LITE-ON TECHNOLOGY CORPORATION	Receivables from related parties	Yes	3,235,450	3,235,450	3,235,450	2.25%	b	-	Operating capital	-	None	-	8,510,104	8,510,104
4	LITE-ON TECHNOLOGY (JIANGSU) CO., LTD.	LITE-ON TECHNOLOGY CORPORATION	Receivables from related parties	Yes	3,010,766	3,010,766	3,010,766	2.25%	b	-	Operating capital	-	None	-	12,168,596	12,168,596

Note 1: Reasons for financing are as follows:
a. Business relationship.
b. The need for short-term financing.

Note 2: Financing limit for each borrower and aggregate financing limits are calculated based on the financing company's policy.

Note 3: The net worth is based on the latest audited financial statements.

Note 4: All intercompany financing transactions have been eliminated upon consolidation.

TABLE 2

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

No.	Endorsement/ Guarantee Provider	Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2)	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity Per Latest Financial Statements (%)	Maximum Endorsement/ Guarantee Amount Allowable (Note 2)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 1)
0	LITE-ON TECHNOLOGY CORPORATION	Lite-On Green Energy B.V.	b	$ 8,982,207	$ 345,989	$ 345,989	$ 345,989	$ -	0.39	$ 35,928,826	Y	N	N
1	Lite-On Singapore Pte. Ltd.	LITE-ON TECHNOLOGY CORPORATION	c	3,642,470	8,640,500	-	-	-	-	3,642,470	N	Y	N

Note 1: Relationship between endorser/guarantor and endorsee/guarantee are as follows:
a. Business relationship.
b. A subsidiary in which the Company holds directly and indirectly over 50% of an equity interest.
c. An investee in which the Company and its subsidiaries hold directly and indirectly over 50% of an equity interest.

Note 2:
a. No. 0 is determined in accordance with the process of financing others and the process of making endorsements/guarantee were established by the Company, and the aggregate amounts to the entities or ceilings on the amounts for any single entity shall not exceed 40% and 10% of the net worth of the Company, respectively.
b. No. 1 is determined in accordance with the Company's procedures for calculating both the endorsement/guarantee limit applicable to a single entity and the aggregate amount of endorsements/guarantees.
b. The net worth is based on the latest audited financial statements.

TABLE 3

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Holding Company Name	Marketable Securities Type and Name	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares/Units (In Thousands)	Carrying Value	Percentage of Ownership (%)	Fair Value
LITE-ON TECHNOLOGY CORPORATION	Ordinary shares
PlayNitride Inc.	Member of the board of directors	Financial assets at FVTOCI	4,946	$ 665,222	4.20	$ 665,222
TITANIC CAPITAL SERVICES LTD.	Ordinary shares
LITE-ON TECHNOLOGY CORPORATION	The parent company	Financial assets at FVTOCI	7,004	1,145,190	0.30	1,145,190

81 -

TABLE 4

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NTS100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Transaction Details				Abnormal Transaction		Notes/Trade (Payable) or Receivable
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
LITE-ON TECHNOLOGY CORPORATION	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Fourth-tier subsidiary	Sale	$ (648,007)	(0.58)	About 90 days	Cost-plus pricing	No significant difference	$ 220,044	0.64
	LITE-ON VIETNAM CO., LTD.	Subsidiary	Sale	(479,456)	(0.43)	About 90 days	Cost-plus pricing	No significant difference	212,683	0.62
	LITE-ON SINGAPORE PTE. LTD.	Subsidiary	Sale	(3,234,070)	(2.91)	About 90 days	Cost-plus pricing	No significant difference	1,245,790	3.63
	Lite-On Japan Ltd.	Sub-subsidiary	Sale	(233,548)	(0.21)	About 90 days	Cost-plus pricing	No significant difference	66,216	0.19
	LITE-ON, INC.	Sub-subsidiary	Sale	(9,952,152)	(8.96)	About 90 days	Cost-plus pricing	No significant difference	4,559,778	13.30
	LITE-ON TRADING USA, INC.	Sub-subsidiary	Sale	(11,664,005)	(10.50)	About 90 days	Cost-plus pricing	No significant difference	5,388,043	15.71
	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Fourth-tier subsidiary	Purchase	541,392	0.83	About 90 days	Cost-plus pricing	No significant difference	(125,410)	(0.61)
	Lite-On Electronics (Thailand) Co., Ltd.	Subsidiary	Purchase	393,210	0.60	About 90 days	Cost-plus pricing	No significant difference	(402,061)	(1.95)
	LITE-ON VIETNAM CO., LTD.	Subsidiary	Purchase	19,483,920	29.74	About 90 days	Cost-plus pricing	No significant difference	(4,353,339)	(21.09)
	LITE-ON SINGAPORE PTE. LTD.	Subsidiary	Purchase	19,455,904	29.70	About 90 days	Cost-plus pricing	No significant difference	(7,096,707)	(34.38)
	Lite-On Overseas Trading Co., Ltd.	Subsidiary	Purchase	25,336,034	38.67	About 90 days	Cost-plus pricing	No significant difference	(8,663,200)	(41.97)
LEOTEK CORPORATION	LEOTEK ELECTRONICS USA LLC	Affiliate	Sale	(706,379)	(77.20)	About 90 days	Cost-plus pricing	No significant difference	233,641	79.28
LITE-ON ELECTRONICS (TIANJIN) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(1,329,756)	(99.99)	About 90 days	Cost-plus pricing	No significant difference	293,520	100.00
LITE-ON NETWORK COMMUNICATION (DONGGUAN) LIMITED	LITE-ON NETWORK COMMUNICATION (DONGGUAN) LIMITED	Affiliate	Sale	(189,272)	(60.61)	About 90 days	Cost-plus pricing	No significant difference	58,005	69.67
	LITE-ON VIETNAM CO., LTD.	Affiliate	Sale	(114,991)	(36.82)	About 90 days	Cost-plus pricing	No significant difference	23,033	27.67
LITE-ON NEW VENTURES TECHNOLOGY (BEDING) CO., LTD.	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Affiliate	Sale	(632,455)	(100.00)	About 90 days	Cost-plus pricing	No significant difference	269,371	100.00
LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(5,754,401)	(99.97)	About 90 days	Cost-plus pricing	No significant difference	1,395,258	100.00
LITEON LI SHIN TECHNOLOGY (GANZHOU) LTD.	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(996,397)	(100.00)	About 90 days	Cost-plus pricing	No significant difference	200,661	100.00
LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(15,238,895)	(65.82)	About 90 days	Cost-plus pricing	No significant difference	4,109,922	69.37
	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(7,348,848)	(31.74)	About 90 days	Cost-plus pricing	No significant difference	1,686,894	28.47
LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	Affiliate	Sale	(361,154)	(9.27)	About 90 days	Cost-plus pricing	No significant difference	111,055	8.62
	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Affiliate	Sale	(161,916)	(4.16)	About 90 days	Cost-plus pricing	No significant difference	63,118	4.90
LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(7,018,246)	(99.39)	About 90 days	Cost-plus pricing	No significant difference	1,284,786	98.83
SILITEK ELEC. (DONGGUAN) CO., LTD.	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Affiliate	Sale	(299,096)	(4.21)	About 90 days	Cost-plus pricing	No significant difference	148,578	6.08
	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(6,698,324)	(94.26)	About 90 days	Cost-plus pricing	No significant difference	2,250,542	92.08
LITE-ON POWER TECHNOLOGY (DONGGUAN) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(1,992,640)	(99.99)	About 90 days	Cost-plus pricing	No significant difference	772,561	100.00
LITE-ON ELECTRONICS H.K. LIMITED	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(133,654)	(7.30)	About 90 days	Cost-plus pricing	No significant difference	47,345	13.23
HUJZHOU LI SHIN ELECTRONIC CO., LTD.	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(2,086,713)	(90.93)	About 90 days	Cost-plus pricing	No significant difference	356,591	87.39
LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Affiliate	Sale	(307,367)	(3.10)	About 90 days	Cost-plus pricing	No significant difference	117,340	3.54
	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(9,380,904)	(94.61)	About 90 days	Cost-plus pricing	No significant difference	3,164,208	95.58
LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD.	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Affiliate	Sale	(988,895)	(23.31)	About 90 days	Cost-plus pricing	No significant difference	346,741	22.11
	Lite-On Overseas Trading Co., Ltd.	Affiliate	Sale	(3,140,892)	(74.03)	About 90 days	Cost-plus pricing	No significant difference	1,220,291	77.83
Lite-On Electronics (Thailand) Co., Ltd.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(3,373,122)	(77.69)	About 90 days	Cost-plus pricing	No significant difference	532,764	54.35
	LITE-ON JAPAN (Thailand) CO., LTD.	Affiliate	Sale	(127,308)	(2.93)	About 90 days	Cost-plus pricing	No significant difference	34,604	3.53
LITE-ON VIETNAM CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(578,739)	(2.77)	About 90 days	Cost-plus pricing	No significant difference	320,600	6.35

(Continued)

Company Name	Related Party	Nature of Relationship	Transaction Details				Abnormal Transaction		Notes/Trade (Payable) or Receivable
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
LITE-ON SINGAPORE PTE. LTD.	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Subsidiary	Sale	$ (1,695,814)	(2.35)	About 90 days	Cost-plus pricing	No significant difference	$ 550,470	2.49
	LITE-ON ELECTRONICS H.K. LIMITED	Affiliate	Sale	(1,657,124)	(2.29)	About 90 days	Cost-plus pricing	No significant difference	508,654	2.31
	LITE-ON VIETNAM CO., LTD.	Affiliate	Sale	(168,562)	(0.23)	About 90 days	Cost-plus pricing	No significant difference	22,646	0.10
	Lite-On Japan Ltd.	Affiliate	Sale	(310,356)	(0.43)	About 90 days	Cost-plus pricing	No significant difference	100,079	0.45
	LITE-ON, INC.	Affiliate	Sale	(3,700,202)	(5.12)	About 90 days	Cost-plus pricing	No significant difference	1,134,046	5.14
	LITE-ON TRADING USA, INC.	Affiliate	Sale	(8,682,169)	(12.01)	About 90 days	Cost-plus pricing	No significant difference	3,027,416	13.72
	LITE-ON MOBILE INDÚSTRIA E COMÉRCIO DE PLÁSTICOS LTDA.	Affiliate	Sale	(377,489)	(0.52)	About 90 days	Cost-plus pricing	No significant difference	72,693	0.33
LITE-ON AUTOMOTIVE ELECTRONICS MEXICO, S.A. DE C.V.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(700,844)	(100.00)	About 90 days	Cost-plus pricing	No significant difference	86,225	100.00
Lite-On Overseas Trading Co., Ltd.	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Affiliate	Sale	(11,540,148)	(13.98)	About 90 days	Cost-plus pricing	No significant difference	2,157,151	8.64
	LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.	Affiliate	Sale	(5,130,324)	(6.22)	About 90 days	Cost-plus pricing	No significant difference	858,235	3.44
	SILITEK ELEC. (DONGGUAN) CO., LTD.	Affiliate	Sale	(4,564,024)	(5.53)	About 90 days	Cost-plus pricing	No significant difference	927,044	3.71
	HUIZHOU LI SHIN ELECTRONIC CO., LTD.	Affiliate	Sale	(303,334)	(0.37)	About 90 days	Cost-plus pricing	No significant difference	42,117	0.17
	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	Affiliate	Sale	(5,191,041)	(6.29)	About 90 days	Cost-plus pricing	No significant difference	599,690	2.40
	LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD.	Affiliate	Sale	(2,362,644)	(2.86)	About 90 days	Cost-plus pricing	No significant difference	769,759	3.08
	LITE-ON VIETNAM CO., LTD.	Affiliate	Sale	(16,886,145)	(20.46)	About 90 days	Cost-plus pricing	No significant difference	7,275,659	29.15
	LITE-ON SINGAPORE PTE. LTD.	Affiliate	Sale	(11,682,552)	(14.16)	About 90 days	Cost-plus pricing	No significant difference	3,797,886	15.21

Note: All intercompany sales and purchases have been eliminated upon consolidation.

(Concluded)

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

TABLE 5

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Ending Balance of Notes Receivable from Related Parties	Ending Balance of Trade Receivables from Related Parties	Ending Balance of Other Receivables from Related Parties	Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Bad Debts
							Amount	Action Taken
LITE-ON TECHNOLOGY CORPORATION	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Fourth-tier subsidiary	$ -	$ 220,044	$ -	2.71	$ -	-	$ 58,889	$ -
	LITE-ON ELECTRONICS H.K. LIMITED	Subsidiary	-	-	181,356	-	-	-	-	-
	LITE-ON VIETNAM CO., LTD.	Subsidiary	-	212,683	-	4.01	-	-	54,655	-
	LITE-ON SINGAPORE PTE. LTD.	Subsidiary	-	1,245,790	23,855,370	3.20	-	-	23,954,242	-
	LITE-ON, INC.	Sub-subsidiary	-	4,559,778	3,728	4.12	326,094	Enhance collection efforts	230,563	-
	LITE-ON TRADING USA, INC.	Sub-subsidiary	-	5,388,043	5,717	2.85	383,807	Subsequently collected	864,200	-
	Lite-On Overseas Trading Co., LTD.	Subsidiary	-	665,607	440,340	-	-	-	650,948	-
LEOTEK CORPORATION	LEOTEK ELECTRONICS USA LLC	Affiliate	-	233,641	2,556	2.74	-	-	64,232	-
CEDARS DIGITAL PTE. LTD. TAIWAN BRANCH	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	122,885	-	1.88	-	-	-	-
LITE-ON ELECTRONICS (TIANJIN) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	-	293,520	-	3.96	-	-	203,345	-
LITE-ON NEW VENTURES TECHNOLOGY (BEIJING) CO., LTD.	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Affiliate	-	269,371	-	3.15	-	-	58,998	-
LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	-	1,395,258	7,421	3.95	-	-	472,179	-
LITEON LI SHIN TECHNOLOGY (GANZHOU) LTD.	Lite-On Overseas Trading Co., Ltd.	Affiliate	-	200,661	-	6.98	-	-	91,811	-
LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	125,410	-	5.06	-	-	24,376	-
	LITE-ON SINGAPORE PTE. LTD.	Affiliate	-	4,109,922	-	3.49	-	-	1,373,316	-
	Lite-On Overseas Trading Co., LTD.	Affiliate	-	1,686,894	-	3.55	-	-	594,661	-
LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	Affiliate	-	111,055	5	3.54	-	-	28,744	-
LITE-ON TECHNOLOGY (JIANGSU) CO., LTD.	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	-	3,032,405	-	-	-	224,684	-
LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.	Lite-On Overseas Trading Co., LTD.	Affiliate	-	1,284,786	-	3.81	-	-	589,941	-
SILITEK ELEC. (DONGGUAN) CO., LTD.	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Affiliate	-	148,578	-	2.37	-	-	40,413	-
	Lite-On Overseas Trading Co., LTD.	Affiliate	-	2,250,542	-	2.51	-	-	350,446	-
LITE-ON POWER TECHNOLOGY (DONGGUAN) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	Affiliate	-	772,561	581	2.83	-	-	341,882	-
HUIZHOU LI SHIN ELECTRONIC CO., LTD.	Lite-On Overseas Trading Co., LTD.	Affiliate	-	356,591	-	5.89	-	-	185,805	-
LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	-	3,261,457	-	-	-	-	-
	LITE-ON NEW VENTURES TECHNOLOGY (BEIJING) CO., LTD.	Affiliate	-	-	273,406	-	-	-	-	-
	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Affiliate	-	117,340	668	2.43	-	-	33,460	-
	Lite-On Overseas Trading Co., Ltd.	Affiliate	-	3,164,208	-	2.95	-	-	1,149,785	-
LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD.	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Affiliate	-	346,741	2,342	1.83	-	-	97,562	-
	Lite-On Overseas Trading Co., LTD.	Affiliate	-	1,220,291	635	2.70	-	-	286,556	-
Lite-On Electronics (Thailand) Co., LTD.	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	402,061	641	1.96	-	-	402,702	-
	LITE-ON SINGAPORE PTE. LTD.	Affiliate	-	532,764	9,427	6.18	-	-	255,691	-
LITE-ON VIETNAM CO., LTD.	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	4,353,339	-	4.90	-	-	2,209,694	-
	LITE-ON SINGAPORE PTE. LTD.	Affiliate	-	320,600	-	3.36	-	-	53,398	-
LITE-ON SINGAPORE PTE. LTD.	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	7,096,707	13,568	2.79	-	-	1,678,455	-
	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Subsidiary	-	550,470	-	2.79	-	-	300,803	-
	LITE-ON ELECTRONICS H.K. LIMITED	Affiliate	-	508,654	77	2.66	-	-	30,962	-
	Lite-On Japan Ltd.	Affiliate	-	100,079	105	3.26	-	-	23,685	-
	LITE-ON, INC.	Affiliate	-	1,134,046	129	5.25	554,949	Subsequently collected	590,451	-
	LITE-ON TRADING USA, INC.	Affiliate	-	3,027,416	7,450	2.71	335,926	Subsequently collected	366,197	-

(Continued)

Company Name	Related Party	Nature of Relationship	Ending Balance of Notes Receivable from Related Parties	Ending Balance of Trade Receivables from Related Parties	Ending Balance of Other Receivables from Related Parties	Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Bad Debts
							Amount	Action Taken
LITE-ON TRADING USA, INC.	LITE-ON, INC.	Affiliate	$ -	$ 1,000	$ 766,705	-	$ -	-	$ 357,568	$ -
G&W TECHNOLOGY LIMITED	G&W TECHNOLOGY LIMITED	Subsidiary	-	-	108,205	-	-	-	-	-
Lite-On Overseas Trading Co., LTD.	LITE-ON TECHNOLOGY CORPORATION	The parent company	-	8,663,200	-	2.75	-	-	2,443,144	-
	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Affiliate	-	2,157,151	-	4.14	-	-	1,086,774	-
	LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.	Affiliate	-	858,235	-	5.12	-	-	468,759	-
	SILITEK ELEC. (DONGGUAN) CO., LTD.	Affiliate	-	927,044	323	3.50	-	-	391,565	-
	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	Affiliate	-	599,690	-	4.11	-	-	379,102	-
	LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD.	Affiliate	-	769,759	857	2.69	-	-	499,001	-
	LITE-ON VIETNAM CO., LTD.	Affiliate	-	7,275,659	-	3.05	-	-	1,598,689	-
	LITE-ON SINGAPORE PTE. LTD.	Affiliate	-	3,797,886	635	2.80	-	-	1,076,064	-

Note: All intercompany transactions have been eliminated upon consolidation.

(Concluded)

TABLE 6

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars or Thousands of Foreign Currencies)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investor	Share of Profit/ Loss of Investor	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership (%)	Carrying Amount
LITE-ON TECHNOLOGY CORPORATION	Silttech Technology Corporation	New Taipei City, Taiwan	Manufacture and sales of modules and plastic/tubber products	$ 168,405	$ 168,405	11,707,548	11.71	$ 406,549	$ 120,093	$ 16,931	Associate (Note 1)
	DragonJet Corporation	New Taipei City, Taiwan	Manufacture and sales of computer peripherals, printers, digital cameras, modules and plastic products	1,069,080	1,069,080	21,968,856	29.62	454,025	80,040	24,846	Associate
	LITE-ON ELECTRONICS H.K. LIMITED	Hong Kong	Sales of LED optical products	466,953	7,339,481	5,367	100.00	12,450,941	(403,896)	(369,579)	Subsidiary
	Lite-On Electronics (Thailand) Co., Ltd.	Thailand	Manufacture and sales of LED optical products	724,047	724,047	7,049,844	100.00	2,865,807	131,326	143,529	Subsidiary
	Lite-On Japan Ltd.	Japan	Sales of LED optical products and power supplies	679,856	679,856	12,451,058	100.00	986,799	10,048	10,048	Subsidiary
	Lite-On International Holding Co., Ltd.	British Virgin Islands	Investment activities	5,919,375	5,919,375	188,725,483	100.00	23,990,785	1,244,859	1,838,709	Subsidiary
	LTE GROUP LTD.	British Virgin Islands	Investment activities	(US$ 188,725)	(US$ 188,725)	-	-	-	-	-	Subsidiary
	LITE-ON TECHNOLOGY USA, INC.	USA	Investment activities	34,437	34,437	15,855	100.00	439,568	61,211	36,274	Subsidiary
			Investment activities	2,765,505	2,451,855	470,239	100.00	2,749,591	95,701	132,559	Subsidiary
	LITE-ON ELECTRONICS (EUROPE) LIMITED	United Kingdom	Manufacture and sales of power supplies	44,559	44,559	300,000	100.00	104,918	5,405	5,405	Subsidiary
	Lite-On Technology (Europe) B.V.	Netherlands	Market research and after-sales services	4,260,135	4,260,135	612,771	100.00	501,118	(764,528)	(764,528)	Subsidiary
	Lite-On Overseas Trading Co., Ltd.	British Virgin Islands	Investment activities	168,947	168,947	5,142,962	100.00	1,661,149	453,325	453,325	Subsidiary
	LITE-ON SINGAPORE PTE. LTD.	Singapore	Manufacture and supply of computer peripheral products	2,000,705	2,000,705	51,776,500	100.00	1,961,833	4,772,626	3,312,214	Subsidiary
	LITE-ON VIETNAM CO., LTD.	Vietnam	Manufacture and sales of electronics contracts and information and communication products	3,842,213	2,791,485	-	100.00	3,941,245	62,252	62,252	Subsidiary
	EAGLE ROCK INVESTMENT LTD.	British Virgin Islands	Investment activities	341	341	10,000	100.00	1,570,825	54,963	54,963	Subsidiary
	LITE-ON MOBILE PTE. LTD.	Singapore	Manufacture and sales of mobile phone modules and design of assembly lines	15,062,063	16,822,685	69,751,538	100.00	1,231,534	327,565	327,565	Subsidiary
	LET (HK) LIMITED	Hong Kong	Sales of optical disc drives	251,322	251,322	62,059,600	100.00	38,799	(3,077)	(3,077)	Subsidiary
	HIGH YIELD GROUP CO., LTD.	British Virgin Islands	Holding company	179,506	179,506	238,000	100.00	3,618,257	306,294	300,676	Subsidiary
	Philips & Lite-On Digital Solutions Corporation	Taipei City, Taiwan	Sales of optical disc drives	534,113	534,113	35,000,000	100.00	502,265	(85,316)	(85,316)	Subsidiary
	LITE-ON AUTOMOTIVE ELECTRONICS MEXICO, S.A. DE C.V.	Mexico	Production, manufacture, sales, import and export of photovoltaic devices, key electronic components, telecommunications equipment, semiconductor applications, general lighting, automotive electronics, renewable energy products and systems and maintenance of automotive industry	279,462	279,462	294,825	99.00	719,453	78,250	77,468	Subsidiary
	Lite-On Automotive International (Cayman) Co., Ltd.	Cayman	Investment activities	2,978,488	2,978,488	6,303,465	100.00	1,019,065	(111,443)	(107,657)	Subsidiary
	LITE-ON POWER ELECTRONIC INDIA PRIVATE LIMITED	India	Manufacture and sales of phone chargers and power supplies	(US$ 94,962)	(US$ 94,962)	-	-	-	-	-	Subsidiary
	SKYLA CORPORATION	Taipei City, Taiwan	Manufacture and sales of mobile phone modules and design of assembly lines	330,529	330,529	102,374,058	99.00	407,611	13,500	13,365	Subsidiary
	LITE-ON MOBILE INDUSTRIA E COMÉRCIO DE PLASTICOS LTDA.	Brazil	Manufacture and sales of mobile phone modules and design of assembly lines	148,700	148,700	14,870,000	42.05	228,471	30,411	12,996	Associate
	Lite-On Green Technologies, Inc.	Taipei City, Taiwan	Manufacture and wholesale of electronic components and energy technology services	22,641	22,641	3,240,001	2.96	31,383	178,735	5,291	Subsidiary
	Lite-On Green Energy (HK) Limited	Hong Kong	Investment activities	1,040,000	1,040,000	67,000,000	100.00	257,241	3,680	3,680	Subsidiary
	LITE-ON GREEN ENERGY (SINGAPORE) PTE. LTD.	Singapore	Investment activities	97,232	97,232	3,100,000	100.00	5,868	(74)	(74)	Subsidiary
	CEDARS DIGITAL PTE. LTD.	Singapore	Software development and application, IT consulting services	227,434	227,434	3,457,760	100.00	111,624	(5,294)	(5,294)	Subsidiary
	Lintek Electronics USA LLC	USA	Sales of LED products	313,650	313,650	13,057,800	100.00	156,980	(100,759)	(100,759)	Subsidiary
	LITE-ON TECHNOLOGY VIETNAM COMPANY LIMITED	Vietnam	Manufacture and sales of electronics contracts and information and communication products	(US$ 10,000)	(US$ 10,000)	-	-	-	-	-	Subsidiary
	Coxel Co., Ltd.	Japan	Development manufacture and sales of power supplies	2,400,255	2,400,255	8,221,000	19.99	2,209,393	(84,176)	(30,021)	Associate
	LITE-ON RACK CORPORATION	New Taipei City, Taiwan	Manufacture of server cabinets	(JPY 11,983,900)	(JPY 11,983,900)	-	11,600,000	80.00	113,969	(2,539)	(2,031)

(Continued)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investor	Share of Profit/ Loss of Investor	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership (%)	Carrying Amount
LEOTEK CORPORATION	LEOTEK INTELLIGENCE MEXICO, S. DE R.L. DE C.V.	Mexico	Sales of various lighting products and electronics systems	$ 314	$ -	-	1.00	$ 311	$ (1,347)	$ -	Subsidiary (Note 3)
				(US$ 10)
Lite-On Green Technologies, Inc.	Lite-On Green Technologies B.V.	Netherlands	Solar energy engineering	424,059	424,059	6,818,200	100.00	65,533	(39)	-	Subsidiary
				(EUR 11,520)	(EUR 11,520)
LITE-ON GREEN ENERGY (SINGAPORE) PTE. LTD.	Lite-On Green Energy B.V.	Netherlands	Investment activities	92,025	92,025	9,139,785	100.00	22,861	567	-	Subsidiary
				(EUR 2,500)	(EUR 2,500)
Lite-On Green Technologies B.V.	Kompakt Solar GmbH	Germany	Solar energy engineering	14,761	14,761	51,000	51.00	-	-	-	Associate
				(EUR 401)	(EUR 401)
CHINA BRIDGE (CHINA) CO., LTD.	WUXI CHINA BRIDGE EXPRESS TRADING CO., LTD.	Jiangsu, China	Assembly and sales of power supplies, printers, display devices and scanners	162,870	162,870	-	100.00	253,544	4,040	-	Subsidiary
	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	Jiangsu, China	Development, manufacture and sales of new-type electronic components and LEDs and provision of technology consulting services, maintenance equipment and after-sales services	382,031	382,031	-	12.59	328,460	188,299	-	Subsidiary
				(CNY 85,015)	(CNY 85,015)
LITE-ON TECHNOLOGY (JIANGSU) CO., LTD.	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	Jiangsu, China	Development, manufacture, sales and installation of power supplies and transformers and provision of technology consulting services, maintenance equipment and after-sales services	2,368,783	2,368,783	-	100.00	5,589,998	482,432	-	Subsidiary
	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	Jiangsu, China	Development, manufacture and sales of new-type electronic components and LEDs and provision of technology consulting services, maintenance equipment and after-sales services	2,264,722	2,264,722	-	87.41	2,280,438	188,299	-	Subsidiary
	LITE-ON MEDICAL DEVICE (CHANGZHOU) LTD.	Jiangsu, China	Manufacture and sales of medical equipment	137,687	137,687	-	100.00	87,750	963	-	Subsidiary
	LITE-ON AUTOMOTIVE ELECTRONICS (CHANGZHOU) CO., LTD.	Jiangsu, China	Manufacture, sales and processing of electronic products	1,005,445	1,005,445	-	100.00	1,016,470	5,271	-	Subsidiary
Lite-On Automotive International (Coyman) Co., Ltd.	LITE-ON AUTOMOTIVE HOLDINGS (HONG KONG) CO., LIMITED	Hong Kong	Investment activities	169,303	169,303	56,650,702	100.00	295,894	(143,716)	-	Subsidiary
				(HK$ 42,009)	(HK$ 42,009)
HIGH YIELD GROUP CO., LTD.	LITE-ON IT INTERNATIONAL (HK) LIMITED	Hong Kong	Investment activities	3,211,776	3,211,776	102,400,000	100.00	3,458,851	300,049	-	Subsidiary
				(US$ 102,400)	(US$ 102,400)
Philips & Lite-On Digital Solutions Corporation	Philips & Lite-On Digital Solutions USA, Inc.	USA	Sales of optical disc drives	33	33	1,000	100.00	4,738	(21,723)	-	Subsidiary
	PLDS Germany GmbH	Germany	Development and sales of modules of automotive recorders	1,326,996	1,326,996	3,000,000	100.00	298,529	12,359	-	Subsidiary
LITE-ON TECHNOLOGY USA, INC.	LITE-ON, INC.	USA	Sales data processing business of optoelectronic products and power supplies	922,131	752,760	3,000,000	100.00	1,544,857	360,763	-	Subsidiary
	LITE-ON TRADING USA, INC.	USA	Sales of optical products	987,998	987,998	315,000	100.00	1,077,675	21,764	-	Subsidiary
	MESH LIGHT FUND I. L.P.	USA	Investment activities	7,481	-	-	99.00	4,015	(3,498)	-	Subsidiary (Note 6)
	POWER INNOVATIONS INTERNATIONAL, INC.	USA	Development, design and manufacture of power controls and energy management	1,435,141	1,121,491	12,916,109	100.00	279,244	(294,654)	-	Subsidiary
				(US$ 45,756)	(US$ 35,756)
Leotek Electronics USA LLC	LEOTEK CORPORATION	Taipei City, Taiwan	Wholesale, import, export and installation of street lights, signal lights, scenery lights and new-type electronic components	681,078	681,078	64,518,303	100.00	547,984	(163,585)	-	Subsidiary
	LEOTEK INTELLIGENCE MEXICO, S. DE R.L. DE C.V.	Mexico	Sales of various lighting products and electronics systems	31,051	-	-	99.00	30,780	(1,347)	-	Subsidiary (Note 3)
				(US$ 990)
Lite-On International Holding Co., Ltd.	LITE-ON CHINA HOLDING CO. LTD.	British Virgin Islands	Investment activities	13,403,567	13,403,567	427,341,532	100.00	23,920,622	1,243,894	-	Subsidiary
				(US$ 427,342)	(US$ 427,342)
LITE-ON SINGAPORE PTE. LTD.	LiteStar JV Holding (BVt) Co., Ltd.	British Virgin Islands	Investment activities	846,855	846,855	2,323	17.59	673,913	289,126	-	Associate
	LITE-ON AUTOMOTIVE ELECTRONICS MEXICO, S.A. DE C.V.	Mexico	Production, manufacture, sales, import and export of photovoltaic devices, key electronic components, telecommunications equipment, information technology equipment, semiconductor applications, general lighting, automotive electronics, renewable energy products and systems and maintenance of automotive industry	2,823	2,823	2,978	1.00	7,267	78,250	-	Subsidiary
				(US$ 90)	(US$ 90)
	LITE-ON POWER ELECTRONIC INDIA PRIVATE LIMITED	India	Manufacture and sales of phone chargers and power supplies	3,541	3,541	1,034,082	1.00	4,116	13,500	-	Subsidiary

(Continued)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investor	Share of Profit/ Loss of Investor	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership (%)	Carrying Amount
LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	LITE-ON INTELLIGENT TECHNOLOGY (YENCHENG) CORP.	Jiangsu, China	Wholesale, import, export and installation of street lights, signal lights, scenery lights and new-type electronic components	$ 87,300	$ 87,300	-	100.00	$ 35,564	$ 14,600	$ -	Subsidiary
	LITE-ON NEW VENTURES TECHNOLOGY (BEIJING) CO., LTD.	Beijing, China	Research and development of products and provision of related technical services; sales of power electronic components, semiconductor lighting devices, automotive parts and components, mechanical parts and components, computer software and hardware and auxiliary equipment, industrial automation control system devices	(CNY 19,427)	(CNY 19,427)	-	100.00	126,433	25,606	-	Subsidiary
LTC GROUP LTD.	TITANIC CAPITAL SERVICES LTD.	British Virgin Islands	Investment activities	1,014,620	1,014,620	8,655,240	100.00	1,406,044	41,247	-	Subsidiary
Lite-On Technology (Europe) B.V.	Lite-On (Finland) Oy	Finland	Manufacture and sales of mobile phone modules and design of assembly lines	-	2,388,644	-	-	-	2,065	-	Subsidiary (Note 5)
	Lite-On Technology GmbH	Germany	Business development and after-sales service	36,810	36,810	25,000	100.00	37,549	6,474	-	Subsidiary
LITE-ON CHINA HOLDING CO. LTD.	LITE-ON ELECTRONICS COMPANY LIMITED	Hong Kong	Investment activities	11,785,706	11,785,706	3,083,467,107	100.00	22,592,864	1,215,164	-	Subsidiary
	YET FOUNDATE LIMITED	Hong Kong	Manufacture of plastic and computer peripheral products	(US$ 375,760)	(US$ 375,760)	-	-	-	-	-	Subsidiary
	FORDGOOD ELECTRONIC LIMITED	Hong Kong	Import and export and real estate business	329,029	329,029	68,429,663	100.00	651,293	(7,357)	-	Subsidiary
	G&W TECHNOLOGY (BVI) LIMITED	British Virgin Islands	Real estate management	(CNY 73,220)	(CNY 73,220)	100,150,100	100.00	426,928	(4,535)	-	Subsidiary
G&W TECHNOLOGY (BVI) LIMITED	G&W TECHNOLOGY LIMITED	Hong Kong	Leasing business	397,260	397,260	3,900,000	50.00	120,658	(7,195)	-	Subsidiary
Lite-On Japan Ltd.	Lite-On Japan (H.K.) Limited	Hong Kong	Manufacture, sales, import and export of electronic components	14,021	14,021	50,000	100.00	389,990	12,169	-	Subsidiary
	LITE-ON JAPAN (Thailand) CO., LTD.	Thailand	Manufacture, sales, import and export of electronic components	(JPY 70,000)	(JPY 70,000)	199,998	100.00	218,940	12,750	-	Subsidiary
LITE-ON MOBILE PTE. LTD.	LITE-ON MOBILE INDUSTRIA E COMÉRCIO DE PLÁSTICOS LTDA.	Brazil	Manufacture and sales of mobile phone modules and design of assembly lines	2,805,893	2,805,893	106,091,231	97.04	1,028,773	178,735	-	Subsidiary

Note 1: Information on net income or loss of investee has not been approved by its board of directors, so it is shown as an estimated amount. Refer to financial statements published on the Market Observation Post System for the final amount of net income or loss.

Note 2: Refer to Table 7 for information on investments in mainland China.

Note 3: Established in January 2025, with a capital injection in October.

Note 4: Established in May 2025.

Note 5: Liquidated in April 2025.

Note 6: Additional capital was injected in November 2025.

(Concluded)

TABLE 7

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars or in Thousands of Foreign Currencies)

Investor Company	Investor Company	Main Businesses and Products	Total Amount of Paid-in Capital (Note 2)	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Investment of Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2025	Net Income (Looses) of the Investor Company (Note 2)	Percentage of Ownership	Share of Profits/Looses (Note 2)	Carrying Amount as of December 31, 2025 (Note 2)	Accumulated Inward Remittance of Earnings as of December 31, 2025	Note
						Outflow	Inflow
LITE-ON TECHNOLOGY CORPORATION	LITE-ON COMPUTER TECHNOLOGY (DONGGUAN) CO., LTD.	Manufacture and sales of display device	$ 514,386	a	$ 892,944	$ -	$ -	$ 892,944	$ (1,653)	100.00	$ (1,653)	$ 255,057	$ -
	LITE-ON ELECTRONICS (TIANJIN) CO., LTD.	ODM services	2,179,868	a	2,085,710	-	-	2,085,710	160,970	100.00	160,970	2,406,083	335,744
	LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.	Manufacture of electronic components	1,110,321	a	1,110,321	-	-	1,110,321	(358,220)	100.00	(358,220)	2,210,576	-
	SILITEK ELEC. (DONGGUAN) CO., LTD.	Manufacture and sales of keyboards	150,552	a	150,552	-	-	150,552	(547,221)	100.00	(547,221)	2,801,383	120,499
	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	Manufacture and sales of printers and scanners	3,024,841	a	1,367,238	-	-	1,367,238	271,862	100.00	271,862	8,510,104	1,854,648	Note 3
	CHINA BRIDGE (CHINA) CO., LTD.	Investment activities, consulting services and acting as a sales agent	940,950	a	932,942	-	-	932,942	27,277	100.00	27,277	1,094,829	-
	LITE-ON NETWORK COMMUNICATION (DONGGUAN) LIMITED	Manufacture and sales of IT products	1,393,111	a	1,351,673	-	-	1,351,673	207,915	100.00	207,915	2,254,528	4,152,974
	LITEON COMMUNICATION (GUANGZHOU) COMPANY LIMITED	Manufacture and sales of mobile terminal equipment	-	a	770,324	-	-	770,324	-	-	-	-	408,420	Note 3
	LITE-ON TECHNOLOGY (GUANGZHOU) LIMITED	Manufacture and sales of computer case	1,041,318	a	1,041,318	-	-	1,041,318	-	100.00	-	-	411,807	Note 3
	COMMIT (DONGGUAN) LIMITED	Manufacture and sales of the same	-	a	33,200	-	-	33,200	-	-	-	-	-
	LITE-ON TECHNOLOGY (GUANGZHOU) LIMITED	Manufacture and sales of mobile terminal equipment	-	a	495,881	-	-	495,881	-	-	-	-	-	Note 3
	LITE-ON TECHNOLOGY (SIAWN) CO., LTD.	Manufacture and sales of mobile	-	a	33,200	-	-	33,200	-	-	-	-	-	Note 3
	LITE-ON TECHNOLOGY (SIAWN) CO., LTD.	Manufacture and sales of electronic components	2,006,377	a	18,819	-	-	18,819	-	1.87	-	-	-
	LITE-ON TECHNOLOGY (SIAWN) CO., LTD.	Manufacture and sales of electronic components	2,006,377	a	203,873	-	-	203,873	12,350	100.00	12,350	447,543	-
	LITE-ON TECHNOLOGY (SIAWN) CO., LTD.	Manufacture and sales of electronic components	2,006,377	a	203,873	-	-	203,873	12,350	100.00	12,350	447,543	-
	LITE-ON TECHNOLOGY (SIAWN) CO., LTD.	Investment activities, consulting services and acting as a sales agent	5,206,590	a	5,206,590	-	-	5,206,590	692,440	100.00	692,440	12,168,596	-	Note 9
	LITE-ON TECHNOLOGY (GZ) INVESTMENT COMPANY LIMITED	Investment activities	2,509,200	a	2,509,200	-	-	2,509,200	14,894	100.00	14,894	689,460	-
	LITE-ON POWER TECHNOLOGY (DONGGUAN) CO., LTD.	Development, manufacture and sales of electronic components, power supplies and provision of technology consulting services	500,955	a	500,955	-	-	500,955	240,505	100.00	240,505	1,456,414	-
	CHANGZHOU LEOTEK NEW ENERGY TRADE LIMITED	Wholesale, import, export and installation of street lights, signal lights, scenery lights and new-type electronic components	31,365	a	31,365	-	-	31,365	(3,626)	100.00	(3,626)	15,177	-
	LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD.	Manufacture of automotive components	1,411,425	a	1,453,287	-	-	1,453,287	198,971	100.00	198,971	2,129,328	7,592,476
LITEON-IT OPTO TECH (BH) CO., LTD.	Manufacture and sales of optical disc drives	1,725,075	a	1,725,075	-	-	1,725,075	142,668	100.00	142,668	1,325,093	482,968
Lite-On (Guangzhou) Automotive Electronics Limited	Manufacture, sales and processing of electronic products	194,463	a	184,117	-	-	184,117	24,474	100.00	24,474	294,050	1,614,246
LITE-ON AUTOMOTIVE (WUXI) CO., LTD.	Manufacture, sales and processing of electronic products	-	a	156,825	-	-	156,825	-	-	-	-	124,854	Note 5
HUIZHOU LI SHIN ELECTRONIC CO., LTD.	Manufacture of computer peripheral products	416,407	a	202,050	-	-	202,050	34,866	100.00	34,866	803,438	178,900

(Continued)

Investor Company	Investor Company	Main Businesses and Products	Total Amount of Paid-in Capital (Note 2)	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Investment of Flows
						Outflow	Inflow
LITE-ON TECHNOLOGY CORPORATION	LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.	Manufacture and sales of energy-saving equipment	$ 2,226,915
(US$ 71,000)	a	$ 2,226,915
(US$ 71,000)	$ -	$ -	$ 2,226,915
(US$ 71,000)	$ (583,390)	100.00	$ (583,390)	$ 2,470,295	$ -	Note 4
	BEIJING LITE-ON MOBILE ELECTRONIC AND TELECOMMUNICATION COMPONENTS CO., LTD.	Manufacture and sales of mobile phone modules and design of assembly lines	-	a	1,274,780
(US$ 40,643)	-	-	1,274,780
(US$ 40,643)	-
	LITE-ON GREEN TECHNOLOGIES (NANJING) CORPORATION	Solar energy engineering	-	a	23,518
(US$ 750)	-	-	23,518
(US$ 750)	-	-	-	-	-	Note 9
	Changzhou Binhu Thin Film Solar Greenhouse Co., Ltd.	Manufacture and sales of solar energy engineering	449,368
(CNY 100,000)	a	93,992
(US$ 2,997)	-	-	93,992
(US$ 2,997)	-	19.90	-	4,103	-
	Epicyclist Corporation (ChangZhou) Ltd.	Design, manufacture and sales of light-emitting diode and related display	4,924,305
(US$ 157,000)	a	846,855
(US$ 27,000)	-	-	846,855
(US$ 27,000)	307,712	19.74	60,738	810,991	-
	DONGGUAN LITE-ON COMPUTER CO., LTD.	Manufacture and sales of computer hosts and components, keyboards, scanners, printers and mouses	-	a	62,730
(US$ 2,000)	-	-	62,730
(US$ 2,000)	-	-	-	-	-	Note 6
	NL (SHANGHAI) CO., LTD.	Manufacture, sales, import and export of electronic components	9,410
(US$ 300)	a	97,168
(US$ 3,098)	-	-	97,168
(US$ 3,098)	(186)	100.00	(186)	16,128	-
Philips & Lite-On Digital Solutions Corporation	Philips & Lite-On Digital Solutions (Shanghai) Co., Ltd.	Sales of optical disc drives	31,365
(US$ 1,000)	a	31,365
(US$ 1,000)	-	-	31,365
(US$ 1,000)	2,040	100.00	2,040	50,798	288,993
Investor Company	Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
---	---	---	---
LITE-ON TECHNOLOGY CORPORATION	$ 27,817,964
(US$ 886,911)	$ 37,969,716
(US$ 1,210,576)	Note 7
Philips & Lite-On Digital Solutions Corporation	31,365
(US$ 1,000)	31,365
(US$ 1,000)	$ 301,359
(Note 8)

Note 1: The way of investment in mainland China is as follows:
a. Indirect investment in mainland China through holding companies.
b. Direct investment in mainland China through the Company.

Note 2: The amount is determined based on the financial statements audited by the certified public accountant engaged by the Taiwan parent company.

Note 3: In December 2024, LITE-ON ELECTRONICS (GUANGZHOU) LIMITED, LITE-ON (GUANGZHOU) PRECISION TOOLING LTD., LITEON COMMUNICATION (GUANGZHOU) COMPANY LIMITED, and LITEON ELECTRONICS AND WIRELESS (GUANGZHOU) LIMITED had completed the procedure of merger, with the LITE-ON ELECTRONICS (GUANGZHOU) LIMITED as the surviving entity. LITE-ON ELECTRONICS (GUANGZHOU) LIMITED merged with LITE-ON TECHNOLOGY (GUANGZHOU) LIMITED, because the merging process was still underway, the change in the amount of investment in mainland China has not yet been registered with the Ministry of Economic Affairs.

Note 4: Liquidated in January 2025.

Note 5: Liquidated in September 2023.

Note 6: Liquidated in August 2024.

Note 7: Under Order No. 11251027150 issued by the Ministry of Economic Affairs on June 26, 2023, the Company acquired a certification approved by the Industrial Development Bureau and valid from June 19, 2023 to June 18, 2026 of its status as operation headquarters. Thus, the Company has no limitation on the amount of investment in mainland China.

Note 8: Calculated based on 60% of Philips & Lite-On Digital Solutions Corporation's net worth.

Note 9: In March 2025, LITE-ON GREEN TECHNOLOGIES (NANJING) CORPORATION and LITE-ON TECHNOLOGY (JIANGSU) CO., LTD. had completed the procedure of merger, with LITE-ON TECHNOLOGY (JIANGSU) CO., LTD. as the surviving company.

(Concluded)

TABLE 8

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

No. (Note 1)	Company Name	Counterparty	Nature of Relationship (Note 2)	Intercompany Transaction
				Financial Statements Item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
0	LITE-ON TECHNOLOGY CORPORATION	LITE-ON SINGAPORE PTE. LTD.	a.	Other receivables	$ 23,855,370	No significant difference	12
		LITE-ON SINGAPORE PTE. LTD.	a.	Sales	3,234,070	Cost-plus pricing	2
		LITE-ON, INC.	a.	Sales	9,952,152	Cost-plus pricing	6
		LITE-ON, INC.	a.	Trade receivables	4,559,778	Cost-plus pricing	2
		LITE-ON TRADING USA, INC.	a.	Sales	11,664,005	Cost-plus pricing	7
		LITE-ON TRADING USA, INC.	a.	Trade receivables	5,388,043	Cost-plus pricing	3
		LITE-ON VIETNAM CO., LTD.	a.	Purchases	19,483,920	Cost-plus pricing	12
		LITE-ON VIETNAM CO., LTD.	a.	Trade payables	4,353,339	Cost-plus pricing	2
		LITE-ON SINGAPORE PTE. LTD.	a.	Purchases	19,455,904	Cost-plus pricing	12
		LITE-ON SINGAPORE PTE. LTD.	a.	Trade payables	7,096,707	Cost-plus pricing	3
		Lite-On Overseas Trading Co., Ltd.	a.	Purchases	25,336,034	Cost-plus pricing	15
		Lite-On Overseas Trading Co., Ltd.	a.	Trade payables	8,663,200	Cost-plus pricing	4
		LITE-ON TECHNOLOGY (JIANGSU) CO., LTD.	a.	Other payables	3,032,405	No significant difference	1
		LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	a.	Other payables	3,261,457	No significant difference	2
1	LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	c.	Sales	5,754,401	Cost-plus pricing	3
2	LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	c.	Sales	15,238,895	Cost-plus pricing	9
		LITE-ON SINGAPORE PTE. LTD.	c.	Trade receivables	4,109,922	Cost-plus pricing	2
		Lite-On Overseas Trading Co., Ltd.	c.	Sales	7,348,848	Cost-plus pricing	4
3	LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.	Lite-On Overseas Trading Co., Ltd.	c.	Sales	7,018,246	Cost-plus pricing	4
4	SILITEK ELEC. (DONGGUAN) CO., LTD.	Lite-On Overseas Trading Co., Ltd.	c.	Sales	6,698,324	Cost-plus pricing	4
		Lite-On Overseas Trading Co., Ltd.	c.	Trade receivables	2,250,542	Cost-plus pricing	1
5	LITE-ON POWER TECHNOLOGY (DONGGUAN) CO., LTD.	LITE-ON SINGAPORE PTE. LTD.	c.	Sales	1,992,640	Cost-plus pricing	1
6	HUIZHOU LI SHIN ELECTRONIC CO., LTD.	Lite-On Overseas Trading Co., Ltd.	c.	Sales	2,086,713	Cost-plus pricing	1
7	LITE-ON ELECTRONICS (GUANGZHOU) LIMITED	Lite-On Overseas Trading Co., Ltd.	c.	Sales	9,380,904	Cost-plus pricing	6
		Lite-On Overseas Trading Co., Ltd.	c.	Trade receivables	3,164,208	Cost-plus pricing	2

(Continued)

| No.
(Note 1) | Company Name | Counterparty | Nature of
Relationship
(Note 2) | Intercompany Transaction | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | Financial Statements Item | Amount | Terms | % of
Consolidated
Net Revenue or
Total Assets
(Note 3) |
| 8 | LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD. | Lite-On Overseas Trading Co., Ltd. | c. | Sales | $ 3,140,892 | Cost-plus pricing | 2 |
| 9 | Lite-On Electronics (Thailand) Co., Ltd. | LITE-ON SINGAPORE PTE. LTD. | c. | Sales | 3,373,122 | Cost-plus pricing | 2 |
| 10 | LITE-ON SINGAPORE PTE. LTD. | LITE-ON TECHNOLOGY (SHANGHAI) CO., LTD.
LITE-ON, INC.
LITE-ON TRADING USA, INC.
LITE-ON TRADING USA, INC. | c.
c.
c.
c. | Sales
Sales
Sales
Trade receivables | 1,695,814
3,700,202
8,682,169
3,027,416 | Cost-plus pricing
Cost-plus pricing
Cost-plus pricing
Cost-plus pricing | 1
2
5
1 |
| 11 | Lite-On Overseas Trading Co., Ltd. | LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.
LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD.
LITE-ON ELECTRONICS (DONGGUAN) CO., LTD.
SILITEK ELEC. (DONGGUAN) CO., LTD.
LITE-ON ELECTRONICS (GUANGZHOU) LIMITED
LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD.
LITE-ON VIETNAM CO., LTD.
LITE-ON VIETNAM CO., LTD.
LITE-ON SINGAPORE PTE. LTD.
LITE-ON SINGAPORE PTE. LTD. | c.
c.
c.
c.
c.
c.
c.
c.
c. | Sales
Trade receivables
Sales
Sales
Sales
Sales
Sales
Sales
Trade receivables | 11,540,148
2,157,151
5,130,324
4,564,024
5,191,041
2,362,644
16,886,145
7,275,659
11,682,552
3,797,886 | Cost-plus pricing
Cost-plus pricing
Cost-plus pricing
Cost-plus pricing
Cost-plus pricing
Cost-plus pricing
Cost-plus pricing
Cost-plus pricing
Cost-plus pricing | 7
1
3
3
3
1
10
4
7
2 |

Note 1: The Company and its subsidiaries are coded as follows:
a. The Company is coded "0".
b. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

Note 2: Nature of relationship is as follows:
a. From the parent company to its subsidiary.
b. From a subsidiary to its parent company.
c. Between subsidiaries.

Note 3: The percentage calculation is based on the consolidated total operating revenues or total assets. For balance sheet items, each item's period-end balance is shown as a percentage to consolidated total assets as of December 31, 2025. For profit or loss items, cumulative amounts are shown as a percentage to consolidated total operating revenues for the year ended December 31, 2025.

Note 4: The intercompany transactions have been eliminated upon consolidation.

Note 5: The above table only discloses each of the related-party transactions which amount to at least 1% of total revenue or total assets, while the reverse flow of transactions is not additionally disclosed.

(Concluded)

AI assistant

LTC — Audit Report / Information 2025

51997_rns_2026-03-30_3830fc35-e0ed-43e9-bae2-5cef60c0093f.pdf

LITE-ON TECHNOLOGY CORPORATION and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Revenue from Specific Products

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

s. Borrowing costs

t. Employee benefits

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)

9. FINANCIAL ASSETS AT AMORTIZED COSTS

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

11. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES, NET

13. SUBSIDIARIES

Remark:

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

15. PROPERTY, PLANT AND EQUIPMENT, NET

16. LEASE ARRANGEMENTS

18. INTANGIBLE ASSETS, NET

19. OTHER ASSETS

20. BORROWINGS

21. PROVISIONS

22. RETIREMENT BENEFIT PLANS

23. EQUITY

24. REVENUE

25. NET PROFIT

26. INCOME TAX

27. EARNINGS PER SHARE

Net Profit for the Year

Weighted Average Number of Ordinary Shares Outstanding

28. SHARE-BASED PAYMENT ARRANGEMENTS

Employee restricted stock awards (RSAs)

30. DISPOSAL OF SUBSIDIARIES

31. CAPITAL MANAGEMENT

32. FINANCIAL INSTRUMENTS

Hedge accounting

For the year ended December 31, 2024

b) Interest rate risk

Sensitivity analysis

Sensitivity analysis

33. TRANSACTIONS WITH RELATED PARTIES

34. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

35. SIGNIFICANT UNRECOGNIZED COMMITMENTS

36. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

37. OTHER ITEMS

38. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

39. SEPARATELY DISCLOSED ITEMS

40. SEGMENT INFORMATION

b. Measurement of segment information

c. Segment information

d. Geographic information

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

More from LTC

LTC Audit Report / Information 2025