M3 Technology Inc. and Subsidiaries
Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders
M3 Technology Inc.

Introduction

We have reviewed the accompanying consolidated balance sheets of M3 Technology Inc. and its subsidiaries (collectively, the "Group") as of September 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as 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 International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Conclusion

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

The engagement partners on the reviews resulting in this independent auditors’ review report are Chih-Feng Yu and Pi-Yu Chuang.

Deloitte & Touche
Taipei, Taiwan
Republic of China

October 30, 2025

Notice to Readers

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

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

M3 TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)

ASSETS	September 30, 2025		December 31, 2024		September 30, 2024
	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 234,452	13	$ 340,932	20	$ 447,840	26
Financial assets at amortized cost - current (Notes 7 and 26)	1,042,859	59	848,037	48	741,091	44
Notes receivable (Notes 8 and 17)	5,140	1	6,391	-	3,162	-
Trade receivables (Notes 8,17 and 25)	147,193	9	158,082	9	150,566	9
Other receivables	685	-	1,835	-	1,270	-
Inventories (Note 9)	110,070	6	139,749	8	143,943	9
Prepayments	3,833	-	5,178	-	3,431	-
Other current assets (Note 19)	18,330	1	64,522	4	9,312	1
Total current assets	1,562,562	89	1,564,726	89	1,500,615	89
NON-CURRENT ASSETS
Property, plant and equipment (Note 11)	166,580	9	161,743	9	159,333	9
Right-of-use assets (Note 12)	3,135	-	2,086	-	2,912	-
Intangible assets (Note 13)	12,451	1	9,157	1	11,220	1
Deferred tax assets (Notes 4 and 19)	19,498	1	12,763	1	12,549	1
Prepayments for equipment	-	-	1,764	-	1,454	-
Refundable deposits	804	-	1,177	-	1,179	-
Total non-current assets	202,468	11	188,690	11	188,647	11
TOTAL	$ 1,765,030	100	$ 1,753,416	100	$ 1,689,262	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Contract liabilities - current (Note 17)	$ 424	-	$ 7	-	$ 2,090	-
Notes payable	17	-	3	-	2	-
Trade payables	46,722	3	46,562	3	53,279	3
Other payables (Note 14)	98,823	6	114,015	6	100,109	6
Current tax liabilities (Notes 4 and 19)	21,153	1	10,796	1	822	-
Provisions - current	9,500	-	9,649	-	9,804	1
Lease liabilities - current (Note 12)	1,505	-	2,117	-	2,780	-
Other current liabilities	1,602	-	9,989	1	1,975	-
Total current liabilities	179,746	10	193,138	11	170,861	10
NON-CURRENT LIABILITIES
Deferred tax liabilities (Notes 4 and 19)	-	-	4,747	-	1,358	-
Lease liabilities - non-current (Note 12)	1,677	-	27	-	55	-
Total non-current liabilities	1,677	-	4,774	-	1,413	-
Total liabilities	181,423	10	197,912	11	172,274	10
EQUITY (Notes 16 and 21)
Share capital
Ordinary shares	431,381	25	428,321	24	428,281	26
Share capital awaiting retirement	(416)	-	-	-	(450)	-
Total share capital	430,965	25	428,321	24	427,831	26
Capital surplus	588,749	33	591,465	34	591,146	35
Retained earnings
Legal reserve	96,510	5	84,354	5	84,354	5
Unappropriated earnings	504,631	29	504,805	29	474,607	28
Total retained earnings	601,141	34	589,159	34	558,961	33
Other equity
Exchange differences on translation of the financial statements of foreign operations	534	-	877	-	546	-
Unearned compensation	(9,357)	-	(25,893)	(1)	(33,071)	(2)
Total other equity	(8,823)	-	(25,016)	(1)	(32,525)	(2)
Treasury shares	(28,425)	(2)	(28,425)	(2)	(28,425)	(2)
Total equity	1,583,607	90	1,555,504	89	1,516,988	90
TOTAL	$ 1,765,030	100	$ 1,753,416	100	$ 1,689,262	100

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

M3 TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended September 30				For the Nine Months Ended September 30
	2025		2024		2025		2024
	Amount	%	Amount	%	Amount	%	Amount	%
OPERATING REVENUE (Notes 17 and 25)
Sales revenue	$ 239,905	101	$ 221,583	100	$ 735,378	101	$ 686,890	100
Sales returns	( 519)	-	( 548)	-	( 1,187)	-	( 1,136)	-
Sales discounts	( 2,251)	( 1)	-	-	( 4,690)	( 1)	-	-
Total operating revenue, net	237,135	100	221,035	100	729,501	100	685,754	100
OPERATING COSTS (Notes 9 and 18)	125,582	53	117,410	53	377,194	52	363,058	53
GROSS PROFIT	111,553	47	103,625	47	352,307	48	322,696	47
OPERATING EXPENSES (Note 18)
Selling and marketing expenses	13,445	6	13,652	6	39,898	5	40,659	6
General and administrative expenses	16,728	7	15,161	7	52,313	7	51,035	7
Research and development expenses	32,185	13	37,532	17	101,766	14	130,969	19
Total operating expenses	62,358	26	66,345	30	193,977	26	222,663	32
PROFIT FROM OPERATIONS	49,195	21	37,280	17	158,330	22	100,033	15
NON-OPERATING INCOME AND EXPENSES
Interest income	6,237	3	5,925	3	20,430	3	18,040	3
Other income	-	-	73	-	433	-	89	-
Other gains and losses	506	-	253	-	124	-	1,142	-
Financial costs	( 54)	-	( 20)	-	( 195)	-	( 97)	-
Foreign exchange gains, net (Note 18)	16,708	7	-	-	-	-	9,168	1
Foreign exchange losses, net (Note 18)	-	-	( 10,677)	( 5)	( 50,194)	( 7)	-	-
Total non-operating income and expenses	23,397	10	( 4,446)	( 2)	( 29,402)	( 4)	28,342	4
PROFIT BEFORE INCOME TAX	72,592	31	32,834	15	128,928	18	128,375	19
INCOME TAX EXPENSE (Notes 4 and 19)	( 13,343)	( 6)	( 9,755)	( 5)	( 31,979)	( 5)	( 36,884)	( 6)
NET PROFIT FOR THE PERIOD	59,249	25	23,079	10	96,949	13	91,491	13
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations	( 2,273)	( 1)	( 329)	-	( 343)	-	82	-
Other comprehensive income for the period	( 2,273)	( 1)	( 329)	-	( 343)	-	82	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$ 56,976	24	$ 22,750	10	$ 96,606	13	$ 91,573	13
EARNINGS PER SHARE (Note 20)
Basic	$ 1.40		$ 0.55		$ 2.29		$ 2.22
Diluted	$ 1.37		$ 0.54		$ 2.24		$ 2.14

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

M3 TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Ordinary Shares (Notes 16 and 21)				Capital Surplus (Notes 16 and 21)	Retained Earnings (Note 16)			Other Equity (Notes 16 and 21)			Treasury Shares (Notes 16 and 21)	Total Equity
	Number of Shares (In Thousands)	Amount	Share capital awaiting retirement	Total		Legal Reserve	Unappropriated Earnings	Total	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Unearned Compensation	Total
BALANCE AT JANUARY 1, 2024	42,542	$ 425,421	($ 540)	$ 424,881	$ 565,381	$ 62,506	$ 530,661	$ 593,167	$ 464	($ 65,945)	($ 65,481)	($ 134,835)	$ 1,383,113
Appropriation of the 2023 earnings
Legal reserve	-	-	-	-	-	21,848	( 21,848)	-	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	-	-	( 125,697)	( 125,697)	-	-	-	-	( 125,697)
Employee compensation cost for employee share options	-	-	-	-	37	-	-	-	-	-	-	-	37
Employee compensation cost for restricted employee shares	-	-	-	-	-	-	-	-	-	31,008	31,008	-	31,008
Net profit for the nine months ended September 30, 2024	-	-	-	-	-	-	91,491	91,491	-	-	-	-	91,491
Other comprehensive income for the nine months ended September 30, 2024	-	-	-	-	-	-	-	-	82	-	82	-	82
Total comprehensive income for the nine months ended September 30, 2024	-	-	-	-	-	-	91,491	91,491	82	-	82	-	91,573
Gain on development	-	-	-	-	370	-	-	-	-	-	-	-	370
Issuance of ordinary shares under employee share options	313	3,130	-	3,130	1,772	-	-	-	-	-	-	-	4,902
Issuance of employee restricted shares and recognition of compensation cost	32	320	-	320	3,664	-	-	-	-	( 3,984)	( 3,984)	-	-
Cancellation of employee restricted shares	( 59)	( 590)	90	( 500)	( 5,350)	-	-	-	-	5,850	5,850	-	-
Treasury shares transferred to employees for share-based payment	-	-	-	-	25,272	-	-	-	-	-	-	106,410	131,682
BALANCE AT SEPTEMBER 30, 2024	42,828	$ 428,281	($ 450)	$ 427,831	$ 591,146	$ 84,354	$ 474,607	$ 558,961	$ 546	($ 33,071)	($ 32,525)	($ 28,425)	$ 1,516,988
BALANCE AT JANUARY 1, 2025	42,832	$ 428,321	$ -	$ 428,321	$ 591,465	$ 84,354	$ 504,805	$ 589,159	$ 877	($ 25,893)	($ 25,016)	($ 28,425)	$ 1,555,504
Appropriation of the 2024 earnings
Legal reserve	-	-	-	-	-	12,156	( 12,156)	-	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	-	-	( 85,126)	( 85,126)	-	-	-	-	( 85,126)
Employee compensation cost for restricted employee shares	-	-	-	-	-	-	-	-	-	11,671	11,671	-	11,671
Cash dividend redemption for share-based payment	-	-	-	-	-	-	159	159	-	-	-	-	159
Net profit for the nine months ended September 30, 2025	-	-	-	-	-	-	96,949	96,949	-	-	-	-	96,949
Other comprehensive income for the nine months ended September 30, 2025	-	-	-	-	-	-	-	-	( 343)	-	( 343)	-	( 343)
Total comprehensive income for the nine months ended September 30, 2025	-	-	-	-	-	-	96,949	96,949	( 343)	-	( 343)	-	96,606
Cancellation of employee restricted shares	-	-	( 416)	( 416)	( 4,449)	-	-	-	-	4,865	4,865	-	-
Issuance of ordinary shares under employee share options	306	3,060	-	3,060	1,733	-	-	-	-	-	-	-	4,793
BALANCE AT SEPTEMBER 30, 2025	43,138	$ 431,381	($ 416)	$ 430,965	$ 588,749	$ 96,510	$ 504,631	$ 601,141	$ 534	($ 9,357)	($ 8,823)	($ 28,425)	$ 1,583,607

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

M3 TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)

| | For the Nine months Ended
September 30 | |
| --- | --- | --- |
| | 2025 | 2024 |
| CASH FLOWS FROM OPERATING ACTIVITIES | | |
| Income before income tax | $ 128,928 | $ 128,375 |
| Adjustments for | | |
| Depreciation expense | 31,494 | 26,039 |
| Amortization expense | 4,964 | 8,389 |
| Financial costs | 195 | 97 |
| Interest income | ( 20,430 ) | ( 18,040 ) |
| Compensation cost of treasury shares | - | 25,582 |
| Compensation cost of employee share options | - | 37 |
| Compensation cost of restricted employee share | 11,671 | 31,008 |
| Loss on disposal of property, plant and equipment | - | 8 |
| Gain on lease modifications | ( 2 ) | ( 38 ) |
| Loss on disposal of other assets | 9 | - |
| (Reversal) write-down of inventories | ( 1,536 ) | 9,909 |
| Unrealized loss (gain) on foreign currency exchange | 35,655 | ( 8,547 ) |
| Reversal of provisions | ( 149 ) | ( 1,192 ) |
| Changes in operating assets and liabilities | | |
| Notes receivable | 1,251 | ( 2,167 ) |
| Trade receivables | 10,305 | 16,364 |
| Other receivables | 525 | ( 480 ) |
| Inventories | 31,215 | 27,136 |
| Prepayments | 1,386 | 529 |
| Other current assets | ( 125 ) | ( 9,312 ) |
| Contract liabilities | 417 | 1,438 |
| Notes payable | 14 | ( 3 ) |
| Trade payables | 431 | ( 3,500 ) |
| Other payables | ( 10,622 ) | ( 17,636 ) |
| Other current liabilities | ( 8,387 ) | 850 |
| Net cash generated from operations | 217,209 | 214,846 |
| Interest received | 20,742 | 17,833 |
| Interest paid | ( 195 ) | ( 97 ) |
| Income tax returned (paid) | 13,172 | ( 55,408 ) |
| Net cash generated from operating activities | 250,928 | 177,174 |
| CASH FLOWS FROM INVESTING ACTIVITIES | | |
| Purchase of financial assets at amortized cost | ( 1,466,280 ) | ( 1,264,773 ) |
| Proceeds from disposal of financial assets at amortized cost | 1,235,940 | 1,357,115 |
| Payments for property, plant and equipment | ( 39,362 ) | ( 24,335 ) |
| Increase in refundable deposits | - | ( 650 ) |
| Decrease in refundable deposits | 668 | - |
| Payments for intangible assets | ( 4,656 ) | ( 4,505 ) |
| Increase in prepayments for equipment | - | ( 1,454 ) |

(Continued)

M3 TECHNOLOGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)

| | For the Nine months Ended
September 30 | |
| --- | --- | --- |
| | 2025 | 2024 |
| Net cash (used in) generated from investing activities | ($ 273,690) | $ 61,398 |
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Repayment of the principal portion of lease liabilities | ( 3,317) | ( 2,744) |
| Cash dividend paid | ( 85,126) | ( 125,697) |
| Exercise of employee share options | 4,793 | 4,902 |
| Treasury shares sold to employees | - | 106,100 |
| Cash dividend redemption for share-based payment | 159 | - |
| Imposition of disgorgement | - | 370 |
| Net cash used in financing activities | ( 83,491) | ( 17,069) |
| EFFECTS OF EXCHANGE RATE CHANGES ON THE
BALANCE OF CASH HELD IN FOREIGN CURRENCIES | ( 227) | ( 55) |
| NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS | ( 106,480) | 221,448 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF
PERIOD | 340,932 | 226,392 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD | $ 234,452 | $ 447,840 |

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

M3 TECHNOLOGY INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

GENERAL INFORMATION

M3 Technology Inc. (hereinafter referred to as the “Company”) was incorporated in September 2010, upon approval of the Ministry of Economic Affairs. The Company mainly engages in the design, development and sale of power management ICs and provides related application services.

Upon approval of Taipei Exchange (TPEx) in November 2020, the Company started trading on Emerging Stock Board of The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since May 12, 2022.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the board of directors on October 30, 2025.

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 is continuously assessing the possible impact of the application of the amendments on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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

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”

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The 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.

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

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these

10 -

interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

See Note 10 and Tables 3 and Tables 4 for detailed information on subsidiaries (including percentages of ownership and main businesses).

d. Other material accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.

Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Refer to the consolidated financial statements for the year ended December 31, 2024 for the material accounting judgments and key sources of estimation uncertainty.

6. CASH AND CASH EQUIVALENTS

	September 30, 2025	December 31, 2024	September 30, 2024
Cash on hand	$ 112	$ 164	$ 119
Checking accounts and demand deposits	234,340	275,198	384,421
Cash equivalents
Time deposits	-	65,570	63,300
	$ 234,452	$ 340,932	$ 447,840

Interest rate ranges for demand deposits and time deposits on the balance sheet date were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Demand deposits	0.001%-0.675%	0.005%-0.80%	0.005%-1.15%
Time deposits	-	4.60%	4.70%

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7. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

	September 30, 2025	December 31, 2024	September 30, 2024
Time deposits with original maturities of more than 3 months	$ 1,038,228	$ 843,242	$ 736,375
Restricted time deposit	4,631	4,795	4,716
	$ 1,042,859	$ 848,037	$ 741,091

The ranges of interest rates for time deposits were approximately 1.52%-4.39%, 1.42%-5.30% and 1.42%-5.30% per annum as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively.

Please refer to Note 26 for information relating to investments in financial assets at amortized cost pledged as security.

8. NOTES RECEIVABLE AND TRADE RECEIVABLES

	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable
At amortized cost
Gross carrying amount	$ 5,140	$ 6,391	$ 3,162
Trade receivables
At amortized cost
Gross carrying amount	$ 147,193	$ 158,082	$ 150,566

The average credit period of sales of goods was 30-60 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 debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that an adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk is significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the customer, the customer's current financial position, economic conditions of the industry in which the customer operates and industry outlook. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.

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

September 30, 2025

	Not Past Due	1-90 Days Past Due	91-180 Days Past Due	181-365 Days Past Due	More than 365 Days Past Due	Total
Gross carrying amount	$147,193	$ -	$ -	$ -	$ -	$147,193
Allowance for impairment loss (lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$147,193	$ -	$ -	$ -	$ -	$147,193

December 31, 2024

	Not Past Due	1-90 Days Past Due	91-180 Days Past Due	181-365 Days Past Due	More than 365 Days Past Due	Total
Gross carrying amount	$156,350	$ 1,732	$ -	$ -	$ -	$158,082
Allowance for impairment loss (lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$156,350	$ 1,732	$ -	$ -	$ -	$158,082

September 30, 2024

	Not Past Due	1-90 Days Past Due	91-180 Days Past Due	181-365 Days Past Due	More than 365 Days Past Due	Total
Gross carrying amount	$150,566	$ -	$ -	$ -	$ -	$150,566
Allowance for impairment loss (lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$150,566	$ -	$ -	$ -	$ -	$150,566

The Group did not recognize allowance for impairment loss because the Group estimated that the recoverable amount was equal to the original account amount.

9. INVENTORIES

	September 30, 2025	December 31, 2024	September 30, 2024
Raw materials	$ 12,186	$ 24,790	$ 30,711
Work in progress	46,093	45,791	49,317
Finished goods	51,791	69,168	63,915
	$ 110,070	$ 139,749	$ 143,943

The nature of the cost of goods sold is as follows:

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Cost of inventories sold	$ 126,202	$ 111,655	$ 378,730	$ 353,149
Inventory write-downs (reversed)	( 620 )	5,755	( 1,536 )	9,909
	$ 125,582	$ 117,410	$ 377,194	$ 363,058

10. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements

Investor	Investee	Nature of Activities	Proportion of Ownership (%)
			September 30, 2025	December 31, 2024	September 30, 2024
The Company	M3 Technology (Dallas), Inc. (“M3 Dallas”)	Product research, design and development	100%	100%	100%
The Company	Blink Electronic Co., Ltd. (“Blink”)	Holding company	100%	100%	100%
Blink	Xi An M3 Semiconductor Corporation (“Xi An M3”)	Product research, design and development	100%	100%	100%
Blink	Shenzhen M3 Technology Inc. (“Shenzhen M3”)	Product sale	100%	100%	100%

M3 Dallas was established in November 2016 in the United States. As of September 30, 2025, the Company has not injected capital into M3 Dallas.

Shenzhen M3 was established in September 2024 in China. As of September 30, 2025, the Company has injected capital of US$300 thousand into Shenzhen M3.

11. PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Machinery and Equipment	Office Equipment	Leasehold Improvement	Test Equipment	Other Equipment	Total
Cost
Balance at January 1, 2024	$ 96,231	$ 22,077	$ 31,791	$ 9,319	$ 5,132	$ 144,708	$ 1,383	$ 310,641
Additions	-	323	2,021	2,628	138	17,987	746	23,843
Disposals	-	-	( 529)	( 94)	-	( 32)	( 4)	( 659)
Reclassification	-	619	-	-	-	-	-	619
Effect of foreign currency exchange differences	-	-	274	112	85	-	1	472
Balance at September 30, 2024	$ 96,231	$ 23,019	$ 33,557	$ 11,965	$ 5,355	$ 162,663	$ 2,126	$ 334,916
Accumulated depreciation
Balance at January 1, 2024	$ -	$ 339	$ 21,207	$ 2,975	$ 3,661	$ 123,234	$ 1,383	$ 152,799
Depreciation expense	-	846	3,443	2,035	669	15,897	186	23,076
Disposals	-	-	( 529)	( 94)	-	( 24)	( 4)	( 651)
Effect of foreign currency exchange differences	-	-	212	94	52	-	1	359
Balance at September 30, 2024	$ -	$ 1,185	$ 24,333	$ 5,010	$ 4,382	$ 139,107	$ 1,566	$ 175,583
Carrying amount at September 30, 2024	$ 96,231	$ 21,834	$ 9,224	$ 6,955	$ 973	$ 23,556	$ 560	$ 159,333
Cost
Balance at January 1, 2025	$ 96,231	$ 23,020	$ 34,645	$ 11,562	$ 6,474	$ 170,738	$ 2,174	$ 344,844
Additions	-	-	8,307	1,343	135	21,580	-	31,365
Reclassification	-	-	1,764	-	-	-	-	1,764
Effect of foreign currency exchange differences	-	-	( 281)	( 101)	( 121)	-	( 1)	( 504)
Balance at September 30, 2025	$ 96,231	$ 23,020	$ 44,435	$ 12,804	$ 6,488	$ 192,318	$ 2,173	$ 377,469
Accumulated depreciation
Balance at January 1, 2025	$ -	$ 1,471	$ 24,973	$ 5,342	$ 4,652	$ 144,999	$ 1,664	$ 183,101
Depreciation expense	-	857	4,046	2,338	764	19,883	298	28,186
Effect of foreign currency exchange differences	-	-	( 228)	( 87)	( 82)	-	( 1)	( 398)
Balance at September 30, 2025	$ -	$ 2,328	$ 28,791	$ 7,593	$ 5,334	$ 164,882	$ 1,961	$ 210,889

(Continued)

15 -

	Land	Buildings	Machinery and Equipment	Office Equipment	Leasehold Improvement	Test Equipment	Other Equipment	Total
Carrying amount at December 31, 2024 and January 1, 2025	$ 96,231	$ 21,549	$ 9,672	$ 6,220	$ 1,822	$ 25,739	$ 510	$ 161,743
Carrying amount at September 30, 2025	$ 96,231	$ 20,692	$ 15,644	$ 5,211	$ 1,154	$ 27,436	$ 212	$ 166,580

(Concluded)

No impairment loss was recognized for the nine months ended September 30, 2025 and 2024 after assessment performed.

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

Buildings	10 to 34 years
Machinery and equipment	3 to 5 years
Office equipment	3 to 5 years
Leasehold improvement	3 to 5 years
Test equipment	2 years
Other equipment	2 years

12. LEASE ARRANGEMENTS

a. Right-of-use assets

	September 30, 2025	December 31, 2024	September 30, 2024
Carrying amount
Buildings	$ 3,135	$ 2,086	$ 2,912
	For the Three Months Ended September 30		For the Nine Months Ended September 30
---	---	---	---
	2025	2024	2025
Additions to right-of-use assets			$ 4,521
Depreciation charge for right-of-use assets
Buildings	$ 1,016	$ 923	$ 3,308

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the nine months ended September 30, 2025 and 2024.

b. Lease liabilities

	September 30, 2025	December 31, 2024	September 30, 2024
Carrying amount
Current	$ 1,505	$ 2,117	$ 2,780
Non-current	$ 1,677	$ 27	$ 55
Discount rate for lease liabilities was as follows:
	September 30, 2025	December 31, 2024	September 30, 2024
Buildings	2.39%-2.40%	2.17%-2.40%	2.17%-2.40%

c. Other lease information

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Expenses relating to short-term leases	$ 986	$ 300	$ 2,400	$ 793
Total cash outflow for leases			$ 5,814	$ 3,634

The Group's leases of certain buildings qualify as short-term leases and leases of certain office equipment qualify as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

INTANGIBLE ASSETS

	Computer Software	Specific Technology	Patents	Total
Cost
Balance at January 1, 2024	$ 31,669	$ 1,000	$ 8,374	$ 41,043
Additions	9,697	-	690	10,387
Effect of foreign currency exchange differences	-	-	2	2
Balance at September 30, 2024	$ 41,366	$ 1,000	$ 9,066	$ 51,432
Accumulated amortization
Balance at January 1, 2024	$ 24,880	$ 1,000	$ 5,942	$ 31,822
Amortization expense	7,378	-	1,011	8,389
Effect of foreign currency exchange differences	-	-	1	1
Balance at September 30, 2024	$ 32,258	$ 1,000	$ 6,954	$ 40,212
				(Continued)

17 -

	Computer Software	Specific Technology	Patents	Total
Carrying amount at September 30, 2024	$ 9,108	$ -	$ 2,112	$ 11,220
Cost
Balance at January 1, 2025	$ 41,464	$ 1,000	$ 9,168	$ 51,632
Additions	7,974	-	285	8,259
Effect of foreign currency exchange differences	-	-	( 3 )	( 3 )
Balance at September 30, 2025	$ 49,438	$ 1,000	$ 9,450	$ 59,888
Accumulated amortization
Balance at January 1, 2025	$ 34,232	$ 1,000	$ 7,243	$ 42,475
Amortization expense	4,194	-	770	4,964
Effect of foreign currency exchange differences	-	-	( 2 )	( 2 )
Balance at September 30, 2025	$ 38,426	$ 1,000	$ 8,011	$ 47,437
Carrying amount at December 31, 2024 and January 1, 2025	$ 7,232	$ -	$ 1,925	$ 9,157
Carrying amount at September 30, 2025	$ 11,012	$ -	$ 1,439	$ 12,451

(Concluded)

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

Computer software 3 years
Patents 5 years
Specific technology 2 years

An analysis of Amortization by function:

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
General and administrative expenses	$ 316	$ 75	$ 661	$ 246
Research and development expenses	1,817	2,768	4,303	8,143
	$ 2,133	$ 2,843	$ 4,964	$ 8,389

18 -

14. OTHER LIABILITIES

	September 30, 2025	December 31, 2024	September 30, 2024
Current
Other payables
Payables for compensation of employees	$ 48,299	$ 58,015	$ 55,180
Payables for salaries	24,573	23,777	12,063
Payables for purchases of equipment	13,898	18,467	15,431
Payables for professional expenses	2,197	3,642	2,924
Payables for remuneration of directors	1,315	1,853	1,380
Payables for labor and national health insurances	1,018	1,031	2,235
Payables for pension	799	742	2,873
Payables for business tax	31	-	23
Others	6,693	6,488	8,000
	$ 98,823	$ 114,015	$ 100,109

15. RETIREMENT BENEFIT PLANS

Defined Contribution Plans

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages. The employees of Group's subsidiaries in China are members of a state-managed retirement benefit plans operated by the government of China. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

16. EQUITY

a. Share capital

Ordinary shares

	September 30, 2025	December 31, 2024	September 30, 2024
Number of shares authorized (in thousands)	60,000	60,000	60,000
Shares authorized	$ 600,000	$ 600,000	$ 600,000
Number of shares issued and fully paid (in thousands)	43,138	42,832	42,828
Shares issued	$ 431,381	$ 428,321	$ 428,281

Fully paid ordinary shares, which have a par value of NT$10, carry one vote per share and a right to dividends.

For the nine months ended September 30, 2025 and 2024, the Company issued 306 thousand and 313 thousand new shares respectively due to the employee share options exercised. As of the balance sheet date, the registration of the issuance of new shares for the three months ended September 30, 2025 has

not been completed.

The Company’s board of directors resolved to issue 682 thousand employee restricted shares within the quota approved by the FSC on September 14, 2023. The Company recalled and canceled 42 thousand and 50 thousand employee restricted shares in 2025 and 2024 due to employee resignations before the vesting date. As of the balance sheet date, the registration of 42 thousand shares for the three months ended September 30, 2025 has not been processed, the share capital awaiting retirement was $416 thousand.

The Company’s board of directors resolved to issue 32 thousand employee restricted shares within the quota approved by the FSC on July 30, 2024.

Please refer to Note 21 for information relating to employee share options and employee restricted shares.

b. Capital surplus

	September 30, 2025	December 31, 2024	September 30, 2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1)
Issuance of ordinary shares	$ 509,313	$ 508,067	$ 487,039
Exercised employee share options	14,070	11,826	11,439
Issuance of ordinary shares for cash capital increase reserved for employee share options	260	260	260
Treasury share transactions	24,692	24,692	24,692
May only be used to offset a deficit
Gain on disgorgement	380	380	370
May not be used for any purpose
Employee restricted shares	38,787	44,482	65,510
Employee share options	1,247	1,758	1,836
	$ 588,749	$ 591,465	$ 591,146

1) Such capital surplus 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 share capital (limited to a certain percentage of the Company’s capital surplus and to once a year).

c. Retained earnings and dividend policy

Under the Company’s Articles of Incorporation (the “Articles”), the proposal for profit distribution or offsetting of losses may be made at the end of each quarter, where the Company made a profit in a quarter, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, until the accumulated legal reserve equals the Company’s paid-in capital, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, until the accumulated legal reserve equals the Company’s paid-in capital. Setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan. The board of directors is authorized to adopt a special resolution (more than

two-thirds of the directors of the board are present, and more than half of the directors present agree) to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders' meeting, distribution of earnings by the issuance of shares should be approved by the shareholders in their meetings. For the policies on the distribution of compensation of employees and remuneration of directors, refer to compensation of employees and remuneration of directors in Note 18-c.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. 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.

The appropriations of earnings for 2024 and 2023 were as follows:

	For the Year Ended December 31
	2024	2023
Legal reserve	$ 12,156	$ 21,848
Cash dividends	$ 85,126	$ 125,697
Cash dividends per share (NT$)	$ 2.00	$ 3.05

The above appropriations for cash dividends were resolved by the Company's board of directors on February 26, 2025 and February 29, 2024, the other proposed appropriations had been resolved by the shareholders in their meetings on May 22, 2025 and May 24, 2024, respectively.

The dividends per share in 2023 were adjusted to NT$2.96944509 due to the employee share options exercised.

The dividends per share in 2024 were adjusted to NT$1.98790252 due to the employee share options exercised and the treasury shares transferred to employees.

d. Treasury shares

Purpose of Buy-back	Shares Transferred to Employees (In Thousands)
Number of shares on January 1 and September 30, 2025	269
Number of shares on January 1, 2024	1,276
Decrease during the period	(1,007)
Number of shares on September 30, 2024	269

For the purpose of transferring shares to employees, the Company's board of directors approved a share buyback program on October 11, 2022, the Company bought back 1,276 thousand shares by $134,835 thousand between October 12, 2022 to December 9, 2022.

The Company's board of directors resolved to transfer 971 thousand shares to employees on May 2, 2024. The grant date was May 9, 2024, and the stock subscription date was May 13, 2024. The actual number of shares transferred was 897 thousand, and the transfer price was $94,795 thousand.

The Company's board of directors resolved to transfer 272 thousand shares to employees on September 11, 2024. The grant date was September 12, 2024, and the stock subscription date was September 11, 2024. The actual number of shares transferred was 110 thousand, and the transfer price was $11,625

20 -

thousand.

Please refer to Note 21 for information relating to treasury shares.

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares before transferring.

17. REVENUE

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Revenue from contracts with customers
Revenue from the sale of goods	$ 237,135	$ 221,035	$ 729,501	$ 685,754
Contract balances
	September 30, 2025	December 31, 2024	September 30, 2024	January 1, 2024
Notes and trade receivables (Note 8)	$ 152,333	$ 164,473	$ 153,728	$ 164,665
Contract liabilities
Sale of goods	$ 424	$ 7	$ 2,090	$ 652

The changes in the balance of contract liabilities primarily result from the timing difference between the Group's satisfaction of performance obligations and the respective customer's payment.

18. NET PROFIT

a. Depreciation and amortization

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Property, plant and equipment	$ 9,779	$ 8,157	$ 28,186	$ 23,076
Right-of-use assets	1,016	923	3,308	2,963
Intangible assets	2,133	2,843	4,964	8,389
	$ 12,928	$ 11,923	$ 36,458	$ 34,428
An analysis of depreciation by function
Operating costs	$ 1,242	$ 1,647	$ 3,005	$ 4,786
Operating expenses	9,553	7,433	28,489	21,253
	$ 10,795	$ 9,080	$ 31,494	$ 26,039
An analysis of amortization by function
Operating expenses	$ 2,133	$ 2,843	$ 4,964	$ 8,389

Refer to Note 13 for information relating to the line items in which any amortization of intangible assets is included.

b. Employee benefits expense

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Post-employment benefits (Note 15)
Defined contribution plan	$ 2,304	$ 2,019	$ 6,793	$ 5,605
Share-based payments
Equity-settled	1,147	8,884	11,671	56,627
Salary and bonus expense	44,406	41,054	130,483	123,354
Total employee benefits expense	$ 47,857	$ 51,957	$ 148,947	$ 185,586
An analysis of employee benefits expense by function
Operating costs	$ 6,582	$ 7,508	$ 19,398	$ 23,420
Operating expenses	41,275	44,449	129,549	162,166
	$ 47,857	$ 51,957	$ 148,947	$ 185,586

c. Compensation of employees and remuneration of directors

The shareholders held their regular meeting on May 22, 2025 and resolved the amendments to the Company's Articles of Incorporation (the "Articles"). According to the Articles, the Company accrues compensation of employees and remuneration of directors at the rates of no less than 1% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. When the Company has accumulated losses, the losses should be offset first. 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 1% of net profit before income tax, compensation of employees, and remuneration of directors. Furthermore, no less than 1% of the total compensation of employees shall be distributed to non-executive employees.

According to the Articles before the amendments, the Company accrues compensation of employees and remuneration of directors at the rates of no less than 6% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. When the Company has accumulated losses, the losses should be offset first.

The accrued compensation of employees (including non-executive employees) and the remuneration of directors for the three months and six months ended September 30, 2025, and the accrued (reversed) compensation of employees and the remuneration of directors for the three months and six months ended September 30, 2024, respectively are as follows:

Accrual rate

	For the Nine Months Ended September 30
	2025	2024
Compensation of employees	1%	6%
Remuneration of directors	1%	1%

Amount

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Compensation of employees	$ 723	$ 2,118	$ 1,315	$ 8,282
Remuneration of directors	723	353	1,315	1,380

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The appropriations of employees' compensation and remuneration of directors for 2024 and 2023 that were resolved by the board of directors on February 26, 2025, and February 29, 2024, respectively, are as shown below:

Amount

	For the Year Ended December 31
	2024	2023
Compensation of employees	$ 11,117	$ 17,563
Remuneration of directors	1,853	2,927

There is no difference between the actual amounts of compensation of employees and remuneration of directors paid 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.

d. Gains or losses on foreign currency exchange

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Foreign exchange gains	$ 19,306	$ 6,616	$ 33,111	$ 31,069
Foreign exchange losses	( 2,598)	( 17,293)	( 83,305)	( 21,901)
Net Gains (losses)	$ 16,708	($ 10,677)	($ 50,194)	$ 9,168

24 -

19. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Current tax
In respect of the current year	$ 8,721	$ 13,078	$ 45,791	$ 30,138
Income tax on unappropriated earnings	-	( 28 )	-	1,617
Adjustments for prior year	( 7 )	-	( 2,330 )	4,481
	8,714	13,050	43,461	36,236
Deferred tax
In respect of the current year	4,629	( 3,295 )	( 11,482 )	648
Income tax expense recognized in profit or loss	$ 13,343	$ 9,755	$ 31,979	$ 36,884

b. Income tax assessments

The income tax returns of the Company through 2023 have been assessed by the tax authorities. In 2024, according to the Income Tax Act, the Company fulfilled its withholding obligations for the contracted research expenses paid to subsidiaries and applied for tax refunds at the applicable preferential tax rates as stipulated by relevant directives of the Income Tax Act. The temporary payments (classified as other current assets) was $64,522 thousand.

As of September 30, 2025, the withholding tax rate for the contracted research expenses paid to subsidiaries has been approved by the tax authorities. The Company has received a tax refund of $48,858 thousand, and recognized income tax benefit $2,541 thousand. The remaining $18,205 thousand has been completed with the tax refund review process on October 7, 2025.

20. EARNINGS PER SHARE

Unit: NT$ Per Share

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Basic earnings per share	$ 1.40	$ 0.55	$ 2.29	$ 2.22
Diluted earnings per share	$ 1.37	$ 0.54	$ 2.24	$ 2.14

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 Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Earnings used in the computation of basic and diluted earnings per share	$ 59,249	$ 23,079	$ 96,949	$ 91,491

The number of ordinary shares

	Unit: In thousands of shares
	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	42,420	41,709	42,337	41,174
Effect of potentially dilutive ordinary shares
Employee share options	565	962	642	1,061
Employee restricted shares	256	339	267	389
Compensation of employees	15	69	34	88
Weighted average number of ordinary shares used in the computation of diluted earnings per share	43,256	43,079	43,280	42,712

The Group may settle the compensation of employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are 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.

21. SHARE-BASED PAYMENT ARRANGEMENTS

a. Employee share option plan

In order to retain and reward employees and improve employees' morale. The Company's board of directors resolved to issue 1,000 units of the first type of option and 2,000 units of the second type of option according to the different nature of rewards and remunerations on February 20, 2020. Each option entitles the holder with the right to subscribe for one thousand ordinary shares of the Company. Employees of the Company or its subsidiaries who meet certain conditions would be included. The options granted are valid for 6 and 10 years, respectively, and exercisable at certain percentages after the second anniversary from the grant date. The options were granted at an exercise price of $10 and $18, respectively. For any subsequent changes in the Company's capital, the exercise price is adjusted according to subscription rules. The Company has granted 2,798 units of first type and second type of option in March 2020.

Information relating to issued employee share options was as follows:

Employee Share Options	For the Nine Months Ended September 30
	2025		2024
	Units of Options (Each Equal to Thousand Shares)	Weighted-average Exercise Price Per Share (NT$)	Units of Options (Each Equal to Thousand Shares)	Weighted-average Exercise Price Per Share (NT$)
Balance, beginning of period	928	$ 13.96	1,290	$ 14.68
Options forfeited	(3)	16.30	-	-
Options exercised	(306)	15.66	(313)	15.66
Balance, end of period	619	12.89	977	14.08
Options exercisable, end of period	619	12.89	977	14.08

The weighted-average share prices on the exercise date of the share options for the nine months ended September 30, 2025 and 2024 were $105.19 and $150.96.

Information on outstanding options was as follows:

Issue Date	September 30, 2025		December 31, 2024		September 30, 2024
	Exercise Price Per Share (NT$)	Weighted Average Remaining Contractual Life (Years)	Exercise Price Per Share (NT$)	Weighted Average Remaining Contractual Life (Years)	Exercise Price Per Share (NT$)	Weighted Average Remaining Contractual Life (Years)
March 19, 2020 (Type First)	$10	0.42	$10	1.17	$10	1.42
March 19, 2020 (Type Second)	$15.9	4.42	$16.3	5.17	$16.3	5.42

Compensation cost recognized were $37 thousand for the nine months ended September 30, 2024 (For the Three Months Ended September 30, 2025 and 2024, and for the Nine Months Ended September 30, 2025: None).

b. Employee restricted share

In the shareholders' meeting on May 26, 2022, the shareholders approved a restricted share plan for issuing no more than 800 thousand shares to employees without charge. The plan has been approved by the FSC on August 8, 2022. The shares may be issued at once or in installments within two years from the effective date depending on actual needs. The Company's board of directors resolved to issue 682 thousand employee restricted shares on September 14, 2023. The capital increase base date was November 1, 2023. The Company's board of directors resolved to issue 32 thousand employee restricted shares on July 30, 2024. The capital increase base date was July 31, 2024.

The restrictions on the rights of the employees who acquire the restricted shares but have not met the vesting conditions are as follows:

1) The employees cannot sell, pledge, transfer, donate or, in any other way, dispose of these shares.
2) The attendance, proposal, speech, voting rights of shareholders' meeting and other relevant shareholder equity matters of the Company shall be exercised by the commissioned trust/custody

institution.

3) When the Company executes cash capital reduction, capital reduction to offset the accumulated deficit, which is not required by law, the restricted employee shares shall also be nullified in proportion to the capital reduction.

If an employee fails to meet the vesting conditions, the Company will recall and cancel the employee's restricted shares.

Information of the employee restricted shares were as follow:

	For the Nine Months Ended September 30
	2025	2024
	Number of Shares(In Thousands of Shares)	Number of Shares(In Thousands of Shares)
Employee restricted shares
Balance, beginning of period	413	628
Shares issued	-	32
Shares cancelled	( 42 )	( 50 )
Shares vested	( 10 )	-
Balance, end of period	361	610

Information of the employee restricted shares granted by the Company as follows:

Grant Date	Fair Value Per Share - Grant Date (NT$)	Shares Granted (In Thousands of Shares)	Vesting Period
November 1, 2023	$117	682	1 year-3 years
July 31, 2024	$124.5	32	1 year-3 years

The vesting conditions of employee restricted shares are that after an employee is granted employee restricted shares, and remains employed after one, two, and three years from the base date of the capital increase and their performance meets the requirements of the parent Company. The maximum percentage of shares that may vest each year shall be 34%, 33%, and 33% respectively.

Compensation cost recognized were $1,147 thousand, $8,653 thousand, $11,671 thousand, and $31,008 thousand for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024, respectively.

c. Treasury shares

The Company's board of directors resolved to transfer 971 thousand and 272 thousand treasury shares to employees in May and September, 2024, and the actual number of shares the employees exercised was 897 thousand and 110 thousand.

Compensation cost recognized were $231 thousand and $25,582 thousand for the nine months ended September 30, 2025 and 2024.

The treasury shares transferred to employees in May, 2024 were priced using Black-Scholes pricing model, and the inputs to the model were as follows:

	May, 2024	May, 2024
	Options without transfer restrictions	Options with transfer restrictions
Grant date stock price per share	NT$141	NT$141
Grant date adjust stock price per share	NT$141	NT$125.5464
Exercise price per share	NT$105.68	NT$105.68
Expected volatility	32.38%	32.38%
Life	9 days	9 days
Expected dividend yield	0%	0%
Risk-free interest rate	0.825%	0.825%
Grant date fair value of options	NT$35.34	NT$19.89
Grant date weighted average fair value of options	NT$27.615	NT$27.615

The treasury shares transferred to employees in September, 2024 were priced using Black-Scholes pricing model, and the inputs to the model were as follows:

	September, 2024	September, 2024
	Options without transfer restrictions	Options with transfer restrictions
Grant date stock price per share	NT$103.5	NT$103.5
Grant date adjust stock price per share	NT$103.5	NT$92.16
Exercise price per share	NT$105.68	NT$105.68
Expected volatility	61.03%	61.03%
Life	13 days	13 days
Expected dividend yield	0%	0%
Risk-free interest rate	1.41%	1.41%
Grant date fair value of options	NT$3.63	NT$0.57
Grant date weighted average fair value of options	NT$2.1	NT$2.1

22. CASH FLOW INFORMATION

a. Non-cash transactions

The Group paid for the acquisition of property, plant and equipment and intangible assets for the nine months ended September 30, 2025 and 2024 are as follows:

	For the Nine Months Ended September 30
	2025	2024
Additions of property, plant and equipment	$ 31,365	$ 23,843
Additions of intangible assets	8,259	10,387
Changes in other payable	4,394	( 5,390 )
Cash paid	$ 44,018	$ 28,840

b. Changes in liabilities arising from financing activities

For the nine months ended September 30, 2025

	Non-cash Changes
	January 1, 2025	Cash Flows	New Leases	Amortization of Interest Expense	Disposal	Change in Exchange Rate
Lease liabilities	$ 2,144	($ 3,414)	$ 4,521	$ 97	($ 131)	($ 35)

For the nine months ended September 30, 2024

	Non-cash Changes
	January 1, 2024	Cash Flows	New Leases	Amortization of Interest Expense	Disposal	Change in Exchange Rate
Lease liabilities	$ 7,725	($ 2,841)	$ -	$ 97	($ 2,234)	$ 88

23. CAPITAL RISK 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 stakeholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of equity (comprising issued share capital, capital surplus, unappropriated earnings and other equity) and loans.

The Group is not subject to any externally imposed capital requirements.

Management regularly reviews the Group’s capital structure and considers the costs and risks of different capital structures. In general, the Group has a prudent risk management strategy.

24. FINANCIAL INSTRUMENTS

a. Categories of financial instruments

	September 30, 2025	December 31, 2024	September 30, 2024
Financial assets
Financial assets at amortized cost (1)	$ 1,431,133	$ 1,356,339	$ 1,345,108
Financial liabilities
Financial liabilities at amortized cost (2)	69,527	75,162	79,636

1) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, time deposits financial assets at amortized cost, notes receivable, trade receivables, other receivables (excluding tax receivable) and refundable deposits.

2) The balances include financial liabilities measured at amortized cost, which comprise notes payable, trade payables and other payables.

b. Financial risk management objectives and policies

The Group’s major financial instruments include time deposits financial assets at amortized cost, notes receivable, trade receivables, other receivables, refundable deposits, notes payable, trade payables, other payables, and lease liabilities. The Group’s financial risk management objectives are to manage the market risk, credit risk and liquidity risk with respect to the Group’s operations. To lower the financial risks, the Group seeks to identify, evaluate, and avoid market uncertainty, to minimize the potential unfavorable impact on the Group due to market volatility.

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).

There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

The Group have foreign currency denominated sales and purchases, which expose the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the period are set out in Note 27.

Sensitivity analysis

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

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts its translation at the end of the period for a 1% change in foreign currency rates. A positive number below indicates a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.

Impact of USD
For the Nine Months Ended September 30
	2025	2024
Profit or loss*	$ 4,062	$ 4,566

The result was mainly attributable to the exposure on outstanding U.S. dollar-denominated deposits, financial assets at amortized cost, trade receivables, other receivables, trade payables and other payables, which were not hedged at the end of the reporting period.

b) Interest rate risk

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

30 -

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:

	September 30, 2025	December 31, 2024	September 30, 2024
Fair value interest rate risk
Financial assets	$ 1,042,859	$ 913,607	$ 804,391
Financial liabilities	$ 3,182	$ 2,144	$ 2,835
Cash flow interest rate risk
Financial assets	$ 231,322	$ 261,334	$ 364,817

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each asset and liability outstanding at the end of the period was outstanding for the whole year. A fluctuation of 0.25% was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been 0.25% higher/lower and all other variables were held constant, the Group’s pre-tax profit for the nine months ended September 30, 2025 and 2024 would have increased/decreased by $434 thousand and $684 thousand, respectively.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation, comes from the carrying amounts of the respective recognized financial assets as stated in the consolidated balance sheets.

The Group’s credit risk is mainly concentrated in the Group’s biggest customer. As of September 30, 2025, December 31, 2024 and September 30, 2024, the percentage of total trade receivables from the aforementioned customer was 46%, 58% and 48%, respectively.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

31 -

September 30, 2025

	On Demand or Less Than 3 Months	3 Months to 1 Year	1 to 2 Years	2 to 3 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 126,070	$ 19,492	$ -	$ -
Lease liabilities	390	1,171	1,696	-
	$ 126,460	$ 20,663	$ 1,696	$ -
December 31, 2024
	On Demand or Less Than 3 Months	3 Months to 1 Year	1 to 2 Years	2 to 3 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 139,324	$ 21,256	$ -	$ -
Lease liabilities	703	1,433	28	-
	$ 140,027	$ 22,689	$ 28	$ -
September 30, 2024
	On Demand or Less Than 3 Months	3 Months to 1 Year	1 to 2 Years	2 to 3 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 139,029	$ 14,362	$ -	$ -
Lease liabilities	703	2,109	56	-
	$ 139,732	$ 16,471	$ 56	$ -

b) Financing facilities

The Group’s usage of bank financing facilities on the balance sheet date were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Bank financing facilities
Amount used	$ -	$ -	$ -
Amount unused	160,000	150,000	150,000
	160,000	150,000	150,000

TRANSACTIONS WITH RELATED PARTIES

Balances, transactions, income and expenses between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed as follows.

a. Related party name and their relationships

Related Party Name	Related Party Category
ITE Tech. Inc. (ITE)	The Company’s director

b. Operating revenue

Line Item	Related Party Category/Name	For the Three Months Ended September 30		For the Nine Months Ended September 30
		2025	2024	2025	2024
Sales revenue	The Company’s director	$ -	$ 28	$ 4	$ 38

There is no material difference between the transaction conditions of related parties above and ordinary transactions.

c. Trade receivables from related parties (September 30,2025: None)

Line Item	Related Party Category/Name	December 31, 2024	September 30, 2024
Trade receivables	The Company’s director	$ 16	$ 19

d. Remuneration of key management personnel

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Short-term employee benefits	$ 13,898	$ 13,012	$ 42,011	$ 34,615
Share-based payments	400	7,323	9,057	45,377
Post-employment benefits	338	337	1,521	1,371
	$ 14,636	$ 20,672	$ 52,589	$ 81,363

26. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as guarantee for executing the purchasing contract with supplier and tariff guarantee for imported raw material:

	September 30, 2025	December 31, 2024	September 30, 2024
Pledged deposits (classified as financial assets at amortized cost)	$ 4,631	$ 4,795	$ 4,716

27. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

September 30, 2025

	Foreign Currency	Exchange Rate	Functional Currency	New Taiwan Dollar
Financial assets
Monetary items
USD	$ 14,987	30.445 (USD:NTD)	$456,292	$456,292
USD	30	7.1283 (USD:RMB)	214	914
Non-monetary items
Investments accounted for using the equity method
RMB	59	30.445 (USD:NTD)	1,805	1,805
Financial liabilities
Monetary items
USD	1,589	30.445 (USD:NTD)	48,378	48,378
USD	85	7.1283 (USD:RMB)	606	2,588
Non-monetary items
Credit balance on the carrying value of investments accounted for using the equity method
USD	838	30.445 (USD:NTD)	25,504	25,504
RMB	5,971	0.1403 (RMB:USD)	838	25,504

December 31, 2024

	Foreign Currency	Exchange Rate	Functional Currency	New Taiwan Dollar
Financial assets
Monetary items
USD	$ 18,385	32.785 (USD:NTD)	$602,738	$602,738
USD	300	7.3213 (USD:RMB)	2,192	9,818
Non-monetary items
Investments accounted for using the equity method
USD	358	32.785 (USD:NTD)	11,730	11,730
Financial liabilities
Monetary items
USD	1,490	32.785 (USD:NTD)	48,843	48,843
USD	615	7.3213 (USD:RMB)	4,500	20,151

(Continued)

35 -

	Foreign Currency	Exchange Rate	Functional Currency	New Taiwan Dollar
Non-monetary items
Credit balance on the carrying value of investments accounted for using the equity method
USD	$ 453	32.785 (USD:NTD)	$ 14,867	$ 14,867
RMB	3,320	0.1366 (RMB:USD)	453	14,867
				(Concluded)
September 30, 2024
	Foreign Currency	Exchange Rate	Functional Currency	New Taiwan Dollar
Financial assets
Monetary items
USD	$ 16,243	31.65 (USD:NTD)	$514,082	$514,082
Non-monetary items
Investments accounted for using the equity method
USD	600	31.65 (USD:NTD)	18,983	18,983
RMB	1,114	0.1429 (RMB:USD)	159	5,036
Financial liabilities
Monetary items
USD	1,815	31.65 (USD:NTD)	57,439	57,439

The significant realized and unrealized foreign exchange gains (losses) were as follows:

Foreign Currency	For the Three Months Ended September 30, 2025		For the Three Months Ended September 30, 2024
	Exchange Rate (Foreign Currency: Functional Currency)	Net Foreign Exchange (Losses) Gains	Exchange Rate (Foreign Currency: Functional Currency)	Net Foreign Exchange (Losses) Gains
USD	29.9301 (USD:NTD)	$ 15,260	32.3109 (USD:NTD)	($ 10,887)
USD	7.1596 (USD:RMB)	1,448	7.1737 (USD:RMB)	210
		$ 16,708		($ 10,677)

	For the Nine Months Ended September 30, 2025		For the Nine Months Ended September 30, 2024
Foreign Currency	Exchange Rate (Foreign Currency: Functional Currency)	Net Foreign Exchange (Losses) Gains	Exchange Rate (Foreign Currency: Functional Currency)	Net Foreign Exchange (Losses) Gains
USD	31.1547 (USD:NTD)	($ 52,349)	32.0472 (USD:NTD)	$ 9,594
USD	7.2266 (USD:RMB)	2,155	7.2102 (USD:RMB)	( 426)
		($ 50,194)		$ 9,168

28. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (None)
3) Significant marketable securities held (excluding investments in subsidiaries) (None)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)
6) Others: Intercompany relationships and significant intercompany transactions (Table 2)

b. Information on investees (Table 3)

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 (Table 4)

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:

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period (None)
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period (None)
c) The amount of property transactions and the amount of the resultant gains or losses (None)
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes (None)
e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds (Table 1 and Table 2)

f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services (Table 2)

37 -

29. SEGMENT INFORMATION

Information reported to the chief operating decision maker is for the purposes of resource allocation and assessment of segment performance. Under IFRS 8 “Operating Segments”, if the operating revenue of an operating segment accounts for up to 90% of the Group’s total revenue, the Group is considered as having only one reportable segment.

TABLE 1

M3 TECHNOLOGY INC. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

(Amounts in Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance (Note 3)	Actual Amount Borrowed (Note 3)	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note 2)	Aggregate Financing Limit (Note 2)	Note
													Item	Value
0	M3 Technology Inc.	Xi An M3 Semiconductor Corporation	Other receivables - related party	Yes	$ 66,410 (US$ 2,000 thousand)	$ 60,890 (US$ 2,000 thousand)	$ -	5.28%	Short-term financing	$ -	Operating capital	$ -	-	$ -	$ 158,360	$ 316,721

Note 1: The description of the number column is as follows:

a. The issuer is coded "0".
b. The investee companies are coded consecutively beginning from "1" in the order presented in the table above.

Note 2: According to the Company's regulation governing loaning of funds, loans are provided to companies or firms requiring short-term financing. The total amount of loans granted shall not exceed 20% of the Company's net value, and the amount of any individual loan shall not exceed 10% of the Company's net value. The aforementioned net value is based on the latest financial statements reviewed by CPA.

Note 3: Translation was based on the exchange rate at September 30, 2025.

TABLE 2

M3 TECHNOLOGY INC. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

(Amounts in Thousands of New Taiwan Dollars)

No. (Note 1)	Company Name	Counterparty	Relationship (Note 2)	Transaction Details
				Financial Statement Accounts	Amount (Note 4)	Payment Terms (Note 5)	% of Total Sales or Assets (Note 3)
0	M3 Technology Inc.	Xi An M3 Semiconductor Corporation	1	Contracted research expense	$ 38,707	There is no significant difference from those to third parties	5.31%
0	M3 Technology Inc.	Xi An M3 Semiconductor Corporation	1	Prepayments	25,766	-	1.46%
0	M3 Technology Inc.	Xi An M3 Semiconductor Corporation	1	Interest income	978	-	0.13%
0	M3 Technology Inc.	M3 Technology (Dallas), Inc.	1	Contracted research expense	6,299	There is no significant difference from those to third parties	0.86%
0	M3 Technology Inc.	Shenzhen M3 Technology Inc.	1	Operating revenue	5,324	There is no significant difference from those to third parties	0.73%
0	M3 Technology Inc.	Shenzhen M3 Technology Inc.	1	Trade receivables	2,588	-	0.15%

Note 1: The Company and subsidiaries listed on the table are coded according to the following rules:
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: The three types of relationships are as follows:
No. 1 - The parent company to the subsidiary.
No. 2 - The subsidiary to the parent company.
No. 3 - The subsidiary to the subsidiary

Note 3: For the calculation of percentage, percentage for balance sheet items is calculated by dividing the year-end balance with consolidated assets. Percentage for income items is calculated by dividing the accumulated sum with total operating income for the year.

Note 4: The transactions have been eliminated upon consolidation.

Note 5: The terms of the transaction are based on mutual agreements.

TABLE 3

M3 TECHNOLOGY INC. AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount (Note 1)		Balance as of September 30, 2025			Net (Loss) Income of the Investee (Notes 2 and 3)	Share of (Loss) Profit (Notes 2, 3 and 4)	Note
				September 30, 2025	December 31, 2024	Number of Shares	Percentage of Ownership (%)	Carrying Amount (Note 3)
M3 Technology Inc.	Blink Electronic Co., Ltd.	Samoa	Holding company	$ 53,835 (US$ 1,800 thousand)	$ 53,835 (US$ 1,800 thousand)	1,800,000	100	($ 25,504)	($ 23,987) (US$ (770) thousand)	($ 23,987) (US$ (770) thousand)	Subsidiary
	M3 Technology (Dallas), Inc.	U.S.A.	Product research, design and development	-	-	Note 5	100	1,805	( 7,055) (US$ (226) thousand)	( 7,055) (US$ (226) thousand)	Subsidiary

Note 1: Translation was based on the exchange rate at the time of investment acquisition.
Note 2: Translation was based on the average exchange rate of USD during the investment period.
Note 3: The numbers were calculated based on financial statements reviewed by the parent company's ROC-based CPA for the same period.
Note 4: The balances have been eliminated upon consolidation.
Note 5: As of September 30, 2025, no capital has been invested therein.
Note 6: Please refer to Table 4 for information on investments in mainland China.

TABLE 4

M3 TECHNOLOGY INC. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital (Note 1)	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 (Note 1)	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2025 (Note 1)	Net Income (Loss) of the Investee (Notes 2 and 4)	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Notes 2, 4 and 5)	Carrying Amount as of September 30, 2025	Accumulated Repatriation of Investment Income as of September 30, 2025
					Outward	Inward
Xi An M3 Semiconductor Corporation	Product research, design and development	$ 29,082 (US$ 990 thousand)	Set up new companies in the third region by investing, and then invest in companies in mainland China.	$ 26,484 (US$ 905 thousand)	$ -	$ -	$ 26,484 (US$ 905 thousand)	($ 10,953) (RMB(2,540) thousand)	100	($ 10,953) (RMB(2,540) thousand)	($ 25,030)	$ -
Shenzhen M3 Technology Inc.	Product sale	$ 9,817 (US$ 300 thousand)	Set up new companies in the third region by investing, and then invest in companies in mainland China.	-	9,817 (US$ 300 thousand)	-	9,817 (US$ 300 thousand)	( 9,776) (RMB(2,267) thousand)	100	( 9,776) (RMB(2,267) thousand)	( 474)	-
Accumulated Outward Remittance for Investments from Taiwan to Mainland China as of September 30, 2024 (Note 1)	Investment Amounts Authorized by the Investment Commission, MOEA (Note 1)	Limit on the Amount of Investment Stipulated by the Investment Commission, MOEA (Note 3)
---	---	---
$36,301 (US$1,205 thousand)	$36,301 (US$1,205 thousand)	$950,164

Note 1: Translation was based on the exchange rate at the time of investment acquisition.
Note 2: Translation was based on the average exchange rate during the investment period.
Note 3: The calculation was based on 60% of the Company's net value at September 30, 2025.
Note 4: The numbers were calculated based on financial statements reviewed by the parent company's ROC-based CPA for the same period.
Note 5: The balances have been eliminated upon consolidation.

AI assistant

M3TEK — Interim / Quarterly Report 2025

52635_rns_2026-03-30_66e2a747-ef60-404c-9aae-5f1d80ccda02.pdf

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Conclusion

Notice to Readers

M3 TECHNOLOGY INC. AND SUBSIDIARIES

M3 TECHNOLOGY INC. AND SUBSIDIARIES

M3 TECHNOLOGY INC. AND SUBSIDIARIES

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

8. NOTES RECEIVABLE AND TRADE RECEIVABLES

9. INVENTORIES

10. SUBSIDIARIES

11. PROPERTY, PLANT AND EQUIPMENT

12. LEASE ARRANGEMENTS

14. OTHER LIABILITIES

15. RETIREMENT BENEFIT PLANS

Defined Contribution Plans

16. EQUITY

Ordinary shares

17. REVENUE

18. NET PROFIT

19. INCOME TAXES

20. EARNINGS PER SHARE

21. SHARE-BASED PAYMENT ARRANGEMENTS

22. CASH FLOW INFORMATION

23. CAPITAL RISK MANAGEMENT

24. FINANCIAL INSTRUMENTS

Sensitivity analysis

2) Credit risk

3) Liquidity risk

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

26. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

27. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

28. SEPARATELY DISCLOSED ITEMS

29. SEGMENT INFORMATION

M3 TECHNOLOGY INC. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

M3 TECHNOLOGY INC. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

M3 TECHNOLOGY INC. AND SUBSIDIARIES

INFORMATION ON INVESTEES

M3 TECHNOLOGY INC. AND SUBSIDIARIES

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