Stock Code:4545

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Report For the Years Ended December 31, 2025 and 2024

Address: No.2, Guorui Rd., Guanyin Dist., Taoyuan City, Taiwan (R.O.C.)

Telephone: (03)438-9966

The independent auditors' report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and consolidated financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4
5. Consolidated Balance Sheets	5
6. Consolidated Statements of Comprehensive Income	6
7. Consolidated Statements of Changes in Equity	7
8. Consolidated Statements of Cash Flows	8
9. Notes to the Consolidated Financial Statements
(1) Company history	9
(2) Approval date and procedures of the consolidated financial statements	9
(3) New standards, amendments and interpretations adopted	9~11
(4) Summary of material accounting policies	11~25
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	25~26
(6) Explanation of significant accounts	26~48
(7) Related-party transactions	48~50
(8) Pledged assets	50
(9) Significant contingent liabilities and unrecognized Commitments	51
(10) Losses Due to Major Disasters	51
(11) Subsequent Events	51
(12) Other	51
(13) Other disclosures
(a) Information on significant transactions	52~53
(b) Information on investees	54
(c) Information on investment in mainland China	54
(14) Segment information	55~56

Representation Letter

The entities that are required to be included in the consolidated financial statements of Min Aik Precision Industrial Co., Ltd. as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements." endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, Min Aik Precision Industrial Co., Ltd. and Subsidiaries do not prepare a separate set of consolidated financial statements.

Company name: Min Aik Precision Industrial Co., Ltd.
Chairman:
Date: March 5, 2026

KPMG

李侃建業聯合會計師事務所

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Min Aik Precision Industrial Co., Ltd.:

Opinion

We have audited the consolidated financial statements of Min Aik Precision Industrial Co., Ltd. and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2025 and 2024, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the year ended December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), interpretation as well as related guidance endorsed 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 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 of 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 of the current period. 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 matters that, in our professional judgement, should be communicated are as follow:

Revenue recognition

Please refer to Note 4(n) “Revenue recognized” of the notes to the consolidated financial statements for the accounting policies on revenue recognition.

Description of key audit matter:

The Group’s automatic equipment would first need to be assembled, tested, and installed by clients; thereafter, revenue then is recognized. Therefore, the revenue recognition is considered to be one of our key audit matters.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG
4-1

How the matter was addressed in our audit:

Our principal audit procedures on revenue recognition included the understanding of internal control system over automatic equipment revenue; inspecting the contracts entered into with the customers; sending confirmation requests to debtors selected from the sales customers. We also assessed the adequacy of the Group’s disclosures of its revenue recognition policy and other related disclosures.

Inventory Valuation

Please refer to Note 4(h) “Inventories” and Note 5 “Significant accounting estimates and assumptions for uncertainty in the evaluation of inventories” in the consolidated financial statements for details of the inventory evaluation policy.

Description of key audit matter:

The Group’s inventory are measured at lower of cost and net realized value. The Group’s products may be obsolescent or do not meet the market requirement due to new product release or market change. Besides, the automatic products are customized based on specific client's need. Thus, the cost of inventory may exceed its net realizable value. Moreover, the sales ability of products may affect the inventory valuation, which also need to be taken into serious consideration. Therefore, the inventory valuation is considered to be the key audit matters.

How the matter was addressed in our audit:

Our principal audit procedures included understanding the Group’s policies of inventory valuation to assess the appropriateness of its inventory valuation; testing, on a sampling basis, testing the Group’s inventory aging report to verify its correctness; understanding and testing, on a sampling basis, the selling price that the management used, or reviewing the subsequent sales of the inventories to assess the appropriateness of the net realizable value.

Other Matter

Min Aik Precision Industrial Co., Ltd. has additionally prepared its parent company only financial statements 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 Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation as well as related guidance endorsed 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.

KPMG
4-2

Auditor’s 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 auditor’s 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 auditor’s 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 appropriate audit evidence regarding the financial information of the 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 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 provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

KPMG

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, 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 audit resulting in this independent auditors' report are Tsai, Meng-Chuan and Cheng, An-Chih.

KPMG

Taipei, Taiwan (Republic of China)

March 5, 2026

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the 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 accepted and applied in the Republic of China.

The independent auditors' audit report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' audit report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2025		December 31, 2024		Liabilities and Equity	December 31, 2025		December 31, 2024
	Amount	%	Amount	%		Amount	%	Amount	%
Current assets:					Current liabilities:
1100 Cash and cash equivalents (note 6(a))	$ 648,799	21	926,431	29	2100 Short-term borrowings (note 6(g))	$ 370,000	12	220,000	7
1170 Notes and accounts receivable, net (notes 6(b) and (n))	424,110	13	368,590	11	2170 Accounts payable (include related parties) (note 7)	242,395	8	251,470	8
1181 Accounts receivable from related parties (notes 6(b), (n) and 7)	195,273	6	158,400	5	2201 Salary and wages payable	120,042	4	172,681	5
1310 Inventories (note 6(c))	436,729	14	490,345	15	2230 Current income tax liabilities	12,443	-	21,203	1
1479 Other current assets (notes 7 and 8)	49,614	2	64,245	2	2280 Current lease liabilities (note 6(i))	15,285	-	14,151	-
	1,754,525	56	2,008,011	62	2300 Other current liabilities (notes 6(n) and 7)	172,944	6	195,870	6
Non-current assets:					2322 Long-term borrowings, current portion (notes 6(h) and 8)	162,000	5	64,000	2
1551 Investments accounted for using equity method (note 6(d))	4,511	-	-	-	Non-Current liabilities:
1600 Property, plant and equipment (notes 6(e), 8 and 9)	1,216,619	39	1,092,262	33	2541 Long-term borrowings (notes 6(h) and 8)	-	-	162,000	5
1755 Right-of-use assets (note 6(f))	82,228	3	94,088	3	2570 Deferred tax liabilities (note 6(k))	62,189	2	69,350	2
1995 Other non-current assets (notes 6(j) and (k))	65,176	2	60,717	2	2580 Non-current lease liabilities (note 6(i))	64,938	2	76,652	2
	1,368,534	44	1,247,067	38		127,127	4	308,002	9
					Total liabilities	1,222,236	39	1,247,377	38
					Equity attributable to owners of parent (note 6(l)):
					3110 Ordinary share	770,000	25	770,000	24
					3200 Capital surplus	642,785	21	642,785	20
					3310 Legal reserve	287,491	9	268,811	8
					3320 Special reserve	10,841	-	45,565	1
					3350 Unappropriated retained earnings	198,086	6	291,381	9
					3410 Exchange differences on translation of foreign financial statements	(8,380)	-	(10,841)	-
					Total equity	1,900,823	61	2,007,701	62
Total assets	$ 3,123,059	100	3,255,078	100	Total liabilities and equity	$ 3,123,059	100	3,255,078	100

Total assets

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

	2025		2024
		Amount	%	Amount	%
4111	Operating revenue (notes 6(n) and 7)	$ 2,408,225	101	2,413,415	101
4170	Less: Sales returns	20,565	1	17,290	1
	Net operating revenue	2,387,660	100	2,396,125	100
5111	Operating costs (notes 6(c), (i), (j), (o), 7 and 12)	2,022,751	85	1,852,875	77
	Gross profit from operations	364,909	15	543,250	23
	Operating expenses (notes 6(b), (i), (j), (o), 7 and 12):
6100	Selling expenses	85,644	4	85,617	4
6200	Administrative expenses	166,299	7	203,478	8
6300	Research and development expenses	59,526	2	52,639	2
6450	Impairment loss determined in accordance with IFRS 9	18,562	1	20,212	1
	Total operating expenses	330,031	14	361,946	15
	Net operating income	34,878	1	181,304	8
	Non-operating income and expenses (notes 6(d), (e), (g), (h), (i), (p) and 7):
7100	Interest income	9,745	1	14,817	1
7010	Other income	15,745	1	32,442	1
7020	Other gains and losses, net	(26,037)	(1)	31,729	1
7050	Finance costs	(15,164)	(1)	(14,903)	(1)
7060	Share of profit of associates and joint ventures accounted for using equity method	4,221	-	-	-
	Total non-operating income and expenses	(11,490)	-	64,085	2
7900	Profit before income tax	23,388	1	245,389	10
7950	Less: Income tax expenses (note 6(k))	10,283	-	62,614	2
	Net profit	13,105	1	182,775	8
8300	Other comprehensive income (loss):
8310	Item that may not be reclassified subsequently to profit or loss
8311	Gains on remeasurements of defined benefit plans (note 6(j))	4,606	-	4,019	-
8360	Item that may be reclassified subsequently to profit or loss
8361	Exchange differences on translation of foreign financial statements	2,461	-	34,724	1
8300	Other comprehensive income, net of income tax	7,067	-	38,743	1
	Total comprehensive income	$ 20,172	1	221,518	9
	Net profit, attributable to:
	Owners of parent	$ 13,105	1	182,775	8
	Total comprehensive income attributable to:
	Owners of parent	$ 20,172	1	221,518	9
9750	Basic earnings per share (NT dollars) (note 6(m))	$	0.17		2.37
9850	Diluted earnings per share (NT dollars) (note 6(m))	$	0.17		2.36

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2024
Profit
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Reversal of special reserve
Cash dividends on ordinary share
Balance at December 31, 2024
Profit
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Reversal of special reserve
Cash dividends on ordinary share
Balance at December 31, 2025

Equity attributable to owners of parent

Share capital	Retained earnings				Other equity
Ordinary shares	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Total equity attributable to owners of parent	Total equity
$ 770,000	642,785	261,178	49,681	185,104	(45,565)	1,863,183	1,863,183
-	-	-	-	182,775	-	182,775	182,775
-	-	-	-	4,019	34,724	38,743	38,743
-	-	-	-	186,794	34,724	221,518	221,518
-	-	7,633	-	(7,633)	-	-	-
-	-	-	(4,116)	4,116	-	-	-
-	-	-	-	(77,000)	-	(77,000)	(77,000)
770,000	642,785	268,811	45,565	291,381	(10,841)	2,007,701	2,007,701
-	-	-	-	13,105	-	13,105	13,105
-	-	-	-	4,606	2,461	7,067	7,067
-	-	-	-	17,711	2,461	20,172	20,172
-	-	18,680	-	(18,680)	-	-	-
-	-	-	(34,724)	34,724	-	-	-
-	-	-	-	(127,050)	-	(127,050)	(127,050)
$ 770,000	642,785	287,491	10,841	198,086	(8,380)	1,900,823	1,900,823

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from (used in) operating activities:
Profit before income tax	$ 23,388	245,389
Adjustments:
Adjustments to reconcile (profit) loss:
Depreciation and amortization expense	102,000	99,831
Impairment loss determined in accordance with IFRS 9	18,562	20,212
Interest expense	15,164	14,903
Interest income	(9,745)	(14,817)
Share of profit of associates and joint ventures accounted for using equity method	(4,221)	-
Gain from disposal of property, plant and equipment	(2,631)	(990)
Others	127	80
Total adjustments to reconcile profit	119,256	119,219
Changes in operating assets and liabilities:
Changes in operating assets:
Accounts receivable (including related parties)	(110,955)	(153,659)
Inventories	73,653	(62,269)
Other current assets	(4,223)	(25,084)
Other operating assets	(882)	(878)
Total changes in operating assets	(42,407)	(241,890)
Changes in operating liabilities:
Accounts payable (including related parties)	(9,075)	51,580
Other current liabilities	(86,529)	94,470
Total changes in operating liabilities	(95,604)	146,050
Total changes in operating assets and liabilities	(138,011)	(95,840)
Total adjustments	(18,755)	23,379
Cash inflow generated from operations	4,633	268,768
Interest received	9,745	14,864
Interest paid	(15,429)	(15,170)
Income taxes paid	(27,314)	(85,846)
Net cash flows (used in) from operating activities	(28,365)	182,616
Cash flows from (used in) investing activities:
Acquisition of property, plant and equipment	(194,829)	(29,846)
Proceeds from disposal of property, plant and equipment	4,494	1,082
Decrease (increase) in refundable deposits	376	(881)
Increase in other non-current assets	(3,881)	(3,603)
Net cash flows used in investing activities	(193,840)	(33,248)
Cash flows from (used in) financing activities:
Increase (decrease) in short-term borrowing	150,000	(10,000)
Repayments of long-term borrowing	(64,000)	(64,000)
Payment of lease liabilities	(13,458)	(13,371)
Cash dividends paid	(127,050)	(77,000)
Net cash flows used in financing activities	(54,508)	(164,371)
Effect of exchange rate changes on cash and cash equivalents	(919)	27,984
Net (decrease) increase in cash and cash equivalents	(277,632)	12,981
Cash and cash equivalents at beginning of period	926,431	913,450
Cash and cash equivalents at end of period	$ 648,799	926,431

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Min Aik Precision Industrial Co., Ltd. (the “Company”). was incorporated on January 18, 2001, as a company limited by shares and registered under the Ministry of Economic Affairs, ROC. The Company’s shares were listed on the Taiwan Stock Exchange (TWSE) on January 6, 2016. The address of its registered office is No. 2, Guorui Rd., Guanyin Dist., Taoyuan City. The Group mainly engages in the processing and manufacturing of electroplating of aluminum and copper products, precision stamping components and electroless nickel plating.

The Company’s subsidiaries mainly engage in the design, manufacture, sale, and after-sales service of medical injection, molding and automatic machines.

The consolidated financial statements comprise The Group and subsidiaries (together referred to as the “Group” and individually as “Group entities”) and the right to the Group’s associates.

(2) Approval date and procedures of the consolidated financial statements:

These consolidated financial statements were authorized for issuance by the Board of Directors on March 5, 2026.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

Amendments to IAS21 “Lack of Exchangeability”

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements:

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.

• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027

note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies:

The material accounting policies presented in the consolidated financial statements are summarized as below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the IFRSs, IASs, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the FSC.

(b) Basis of preparation

(i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) The defined benefit assets are measured at fair value of the plan assets less the present value of the defined benefit obligation.

(ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(c) Basis of consolidation

(i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and its subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances.

Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

(ii) List of subsidiaries in the consolidated financial statements

Name of investor	Name of subsidiary	Main Activities and Location	Percentage of Ownership (%)
			December 31, 2025	December 31, 2024
The Company	Esteem King	Holding Company	100 %	100 %
Esteem King	MAPP	Design, Manufacture and Sale of tooling and medical injection molding	100 %	100 %
MAPP	AMOULD PLASTIC TECHNOLOGIES (SUZHOU) CO., LTD (AMO)	Design, Manufacture and Sale of automatic machines	100 %	100 %

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(d) Foreign currencies

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

(e) Classification of current and non-current assets and liabilities

The Group classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Group classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period

(f) Cash and cash equivalents

Cash comprise cash on hand and demand deposits. Cash equivalents is short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

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

On initial recognition, a financial asset is classified as measured at: amortized cost and FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivable, guarantee deposit paid and other financial assets) and contract assets.

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date; and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

Lifetime ECL are the ECL that result from all possible default events over the expected life of a financial instrument.

12-month ECL are the portion of ECL that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk.

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECL are discounted at the effective interest rate of the financial asset.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than 120 days past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
it is probable that the borrower will enter bankruptcy or other financial reorganization; or
the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

3) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

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

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

4) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

5) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted average method and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(i) Investment in associates

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

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interest in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

(j) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1) Buildings: 30~56 years
2) Building facilities: 3~5 years
3) Machinery and equipment: 1~20 years
4) Office and other equipment : 1~20 years
5) Leasehold improvement : 2~10 years

Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.

(k) Lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contracts conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Lease payments included in the measurement of the lease liability comprise the following:

Fixed payments, including in-substance fixed payments;
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
Amounts expected to be payable under a residual value guarantee; and
Payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

There is a change in future lease payments arising from the change in an index or rate; or
There is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or
There is change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset; or
There is a change of its assessment on whether it will exercise a purchase, extension or termination option; or
There is any lease modification

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Group applies IFRS15 to allocate the consideration in the contract.

(l) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, deferred tax assets and the assets arising on employee benefits) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount for an individual asset or a cash generating unit is the higher of its fair value less costs to sell and its value in use. If, and only if, the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. That reduction is an impairment loss. An impairment loss shall be recognized immediately in profit or loss.

An assessment is made at the end of each reporting period as to whether there is any indication that an impairment loss recognized in prior periods may no longer exist or may have decreased. If any such indication exists, the recoverable amount of that asset is estimated. An impairment loss recognized in prior periods for an asset is reversed if, and only if, there has been an improvement in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. In this case, the carrying amount of the asset is increased to its recoverable amount by reversing an impairment loss.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(m) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pretax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

(i) Warranties

A provision for warranties is recognized when the underlying products or services are sold, based on historical warranty data and a weighting of all possible outcomes against their associated probabilities.

(ii) Site restoration

In accordance with the leases agreement, the Group’s has the obligation to restore the leased facilities and the office. The provision is measured by the discounted present value of restoration cost at the termination of agreement, and related expense are recognized during contract period.

(n) Revenue recognized

(i) Revenue from contracts with customers policy

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

The Group manufactures and sells electronic, plastic components and automated machines. The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

The Group offers standard warranty with the automatic machines for months to one year to its clients. Therefore, the Group’s obligation to provide a refund for faulty automatic machines under the standard warranty terms is recognized as a provision of warranty.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(o) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes shall be recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to the temporary differences between the carrying amounts of assets and liabilities at the reporting date and their respective tax bases. Deferred taxes shall not be recognized for the following exceptions:

(i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction affects neither accounting nor taxable profits (losses), and does not give rise to equal taxable and deductible temporary differences;

(ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits increases.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

1) the same taxable entity; or

2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(q) Earnings per Share

The Group discloses the basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potential dilutive ordinary shares (e.g. employee bonuses not yet resolved by the shareholders.).

(r) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(s) Government grants

The Group recognizes an unconditional government in profit or loss as other income when the grant becomes receivable. Grants that compensate the Group for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

For government grants related to depreciated assets, the Group recognized as the deduction of the assets if there is reasonable assurance that the grants will be received and the Group will comply with the conditions associated with the grant; and through the decrease in depreciation expenses, the grants are then recognized in profit or loss during the useful lives of the depreciated assets.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparing these consolidated financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Group’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognised prospectively in the period of the change and future periods.

Transactions accounted for in accordance with the adopted accounting policies do not involve significant judgments.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment with the following year is as follows:

(a) Valuation of inventories

Inventories are stated at the lower of cost or net realizable value. The Group estimates the amount of inventory due to normal waste, obsolescence, or lack of marketability at the end of reporting period, and then writes down the cost of inventories to the net realizable value. The valuation of inventories is mainly based on the estimation of future demand within a specific period. Therefore, significant changes may occur due to the rapid evolution of the industry.

The Group’s accounting policies include measuring financial and nonfinancial assets and liabilities at fair value through profit or loss. The Group’s financial division conducts independent verification on fair value by using data sources that are independent, reliable, and representative of exercise prices. This financial division also periodically adjusts valuation models, conducts back testing, renews input data for valuation models, and makes all other necessary fair value adjustments to assure the rationality of fair value.

The Group strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the assets or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to Note 6(q) for assumptions used in measuring fair value.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash, petty cash, check and demand deposits	$ 345,504	529,348
Time deposits	303,295	397,083
Cash and cash equivalents	$ 648,799	926,431

Please refer to note 6(q) for the exchange rate risk, interest rate risk, and sensitivity analysis of the financial assets and liabilities of the Group.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Notes and accounts receivable (include related parties)

	December 31, 2025	December 31, 2024
Notes receivable from operating activities	$ 17,607	25,227
Accounts receivable	452,602	371,090
Accounts receivable-related parties	195,273	158,400
Less: Loss allowance	(46,099)	(27,727)
	$ 619,383	526,990

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision for notes and accounts receivables was determined as follows:

	December 31, 2025
Notes and Accounts Receivable -non-related parties	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 356,083	1%	3,794
Past due(days):
1 to 60	36,272	1%	363
61 to 120	33,298	5%	1,665
121 to 180	877	20%	175
181 to 360	7,155	50%	3,578
over 360	36,524	100%	36,524
	$ 470,209		46,099
	December 31, 2025
Accounts Receivable -related parties	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 192,397	0%	-
Past due(days):
1 to 60	2,876	0%	-
Total	$ 195,273		-

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
Notes and Accounts Receivable -non-related parties	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 304,585	1%	2,821
Past due(days):
1 to 60	49,384	1%	494
61 to 120	17,059	5%	853
121 to 180	1,837	20%	367
181 to 360	520	50%	260
over 360	22,932	100%	22,932
	$ 396,317		27,727
	December 31, 2024
Accounts Receivable -related parties	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 158,400	0%	-

The movement in the allowance for notes and accounts receivable was as follows:

	2025	2024
Balance on January 1, 2025 and 2024	$ 27,727	7,176
Impairment losses recognized	18,562	20,212
Foreign exchange (losses) gains	(190)	339
Balance on December 31, 2025 and 2024	$ 46,099	27,727

As of December 31, 2025 and 2024, the Group did not provide any notes and accounts receivable as collateral for its loans.

Please refer to note 6(q) for other credit risk.

	December 31, 2025	December 31, 2024
Raw materials and consumables	$ 91,000	81,496
Work in progress	65,496	80,031
Finished goods	280,233	328,818
	$ 436,729	490,345

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The details of the cost of sales was as follows:

	2025	2024
Inventory that has been sold	$ 2,016,774	1,836,103
Abnormal amounts of production costs of inventories	51,610	51,713
Product warranty costs	45,785	49,792
Write-down of inventories and loss on inventories write-off	28,878	14,829
Loss on inventory count	3,833	4,671
Revenue from sale of scraps	(124,129)	(104,233)
	$ 2,022,751	1,852,875

As of December 31, 2025 and 2024, the Group did not provide any inventories as collateral for its loans.

(d) Investments accounted for using equity method

The Group’s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

Name of Affiliates	Nature of Relationship with the Group	Main operating location/ Registered Country of the Company	Proportion of shareholding and voting rights
			December 31, 2025	December 31, 2024
MATC Technology(M) Sdn. Bhd.	Production of hardware components	Malaysia	20.00 %	20.00 %

The following consolidated financial information of significant affiliates has been adjusted according to individually prepared IFRS financial statements of these affiliates:

	December 31, 2025	December 31, 2024
Carrying amount of individually insignificant associates’ equity	$ 4,511	-
	2025	2024
Attributable to the Group:
Gain from continuing operations	$ 4,221	-
Other comprehensive income (loss)	290	-
Comprehensive income	$ 4,511	-

As of December 31, 2024, the accumulated unrecognized investment loss amounted to $4,263 thousand. There were no such circumstances in 2025.

As of December 31, 2025 and 2024, the Group did not provide any investments accounted for using the equity method as collateral for its loans.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(e) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group, were as follows:

	Land	Buildings and construction	Machinery and equipment	Office and other facilities	Construction in progress and testing equipment	Total
Cost or deemed cost:
Balance on January 1, 2025	$ 596,362	401,636	960,617	596,255	5,632	2,560,502
Additions	-	6,536	73,902	47,973	77,646	206,057
Disposal	-	-	(31,288)	(11,654)	-	(42,942)
Transfer	-	-	4,908	434	(5,372)	(30)
Effect of movements in exchange rate	-	2,918	3,916	3,583	(1,246)	9,171
Balance on December 31, 2025	$ 596,362	411,090	1,012,055	636,591	76,660	2,732,758
Balance on January 1, 2024	$ 596,362	393,978	960,809	582,438	2,457	2,536,044
Additions	-	-	14,134	16,269	5,351	35,754
Disposal	-	-	(26,023)	(11,885)	-	(37,908)
Transfer	-	-	2,105	-	(2,185)	(80)
Effect of movements in exchange rates	-	7,658	9,592	9,433	9	26,692
Balance on December 31, 2024	$ 596,362	401,636	960,617	596,255	5,632	2,560,502
Depreciation and impairments loss:
Balance on January 1, 2025	$ -	112,896	827,110	528,234	-	1,468,240
Depreciation	-	8,925	46,187	27,271	-	82,383
Disposal	-	-	(29,676)	(11,064)	-	(40,740)
Impairment gain	-	-	-	(339)	-	(339)
Effect of movements in exchange rates	-	1,229	3,241	2,125	-	6,595
Balance on December 31, 2025	$ -	123,050	846,862	546,227	-	1,516,139
Balance on January 1, 2024	$ -	101,537	795,264	506,221	-	1,403,022
Depreciation	-	8,619	49,260	25,014	-	82,893
Disposal	-	-	(26,022)	(11,794)	-	(37,816)
Effect of movements in exchange rates	-	2,740	8,608	8,793	-	20,141
Balance on December 31, 2024	$ -	112,896	827,110	528,234	-	1,468,240
Carrying amounts:
Balance on December 31, 2025	$ 596,362	288,040	165,193	90,364	76,660	1,216,619
Balance on December 31, 2024	$ 596,362	288,740	133,507	68,021	5,632	1,092,262
Balance on January 1, 2024	$ 596,362	292,441	165,545	76,217	2,457	1,133,022

As of December 31, 2025 and 2024, for the Group pledged property, plant and equipment as collateral for long-term borrowings, please refer to Note 8.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(f) Right-of-use assets

The Group leases many assets including land, buildings and structures, and office and other facilities. Information about leases for which the Group as a lessee is presented below:

	Land	Buildings and structures	Office and other facilities	Total
Cost:
Balance at January 1, 2025	$ 73,923	63,474	1,688	139,085
Additions	-	-	3,075	3,075
Disposal	-	-	(1,160)	(1,160)
Exchange on movements exchange rates	981	(91)	23	913
Balance at December 31, 2025	$ 74,904	63,383	3,626	141,913
Balance at January 1, 2024	$ 71,350	61,067	1,826	134,243
Disposal	-	-	(197)	(197)
Exchange on movements exchange rates	2,573	2,407	59	5,039
Balance at December 31, 2024	$ 73,923	63,474	1,688	139,085
Accumulated depreciation and impairment losses:
Balance at January 1, 2025	$ 12,348	31,199	1,450	44,997
Depreciation for the year	2,177	12,450	528	15,155
Disposal	-	-	(1,063)	(1,063)
Exchange on movements exchange rates	219	397	(20)	596
Balance at December 31, 2025	$ 14,744	44,046	895	59,685
Balance at January 1, 2024	$ 9,793	17,595	1,311	28,699
Depreciation	2,194	12,807	293	15,294
Disposal	-	-	(197)	(197)
Exchange on movements exchange rates	361	797	43	1,201
Balance at December 31, 2024	$ 12,348	31,199	1,450	44,997
Carrying amount:
Balance at December 31, 2025	$ 60,160	19,337	2,731	82,228
Balance at December 31, 2024	$ 61,575	32,275	238	94,088
Balance at January 1, 2024	$ 61,557	43,472	515	105,544

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(g) Short-term borrowings

The details were as follows:

	December 31, 2025	December 31, 2024
Unsecured bank loans	$ 370,000	220,000
Unused short-term credit lines	$ 480,000	630,000
Range of interest rates	1.94%~2.06%	1.92%~2.06%

(h) Long-term borrowings

The details were as follows:

	December 31, 2025	December 31, 2024
Unsecured bank loans	$ 100,000	100,000
Secured bank loans	62,000	126,000
Less: current portion	(162,000)	(64,000)
Total	$ -	162,000
Range of interest rates	2.01%~2.30%	2.01%~2.29%

For the collateral for long-term borrowings, please refer to note 8.

(i) Lease liabilities

The details were as follows:

	December 31, 2025	December 31, 2024
Current	$ 15,285	14,151
Non-current	$ 64,938	76,652

For the maturity analysis, please refer to note 6(q).

The amounts recognized in profit or loss were as follows:

	2025	2024
Interest expenses on lease liabilities	$ 4,789	5,554
Expenses relating to short-term leases	$ 5,994	6,049

The amounts recognized in the statement of cash flows for the Group was as follows:

	2025	2024
Total cash outflow for leases	$ 24,241	24,974

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Real estate and buildings leases

The Group leases land and buildings for its offices and factories. The leases of offices typically run for a period of 5 years, and about 50 years for land. Some leases contain extension options exercisable up to the same period as original contracts before the end of the contract period.

(ii) Other leases

The Group leases office facilities with lease terms of 5 years. Some lease contracts stipulate that upon the expiration of the lease period, which can extend to the same period as original contracts.

The Group also leases staff dormitories, warehouses, and machine equipment with contract terms within one year. These leases are short-term items. The Group has elected not to recognize right-of-use assets and lease liabilities for these leases.

(j) Employee benefit

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

	December 31, 2025	December 31, 2024
Present value of the defined benefit obligations	$ (28,078)	(29,014)
Fair value of plan assets	66,401	61,848
Net defined benefit assets	$ 38,323	32,834

The Group makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Group’s Bank of Taiwan labor pension reserve account balance amounted to $66,401 thousand as of December 31, 2025. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Group were as follows:

	2025	2024
Defined benefit obligations at January 1	$ 29,014	28,225
Current service costs and interest costs	615	367
Remeasurements loss (gain):
—Return on plan assets excluding interest income	(552)	407
—Financial assumptions	216	517
Benefits paid	(1,215)	(502)
Defined benefit obligations at December 31	$ 28,078	29,014

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

	2025	2024
Fair value of plan assets at January 1	$ 61,848	56,162
Interest income	994	733
Remeasurements loss (gain):
—Return on plan assets excluding interest income	4,270	4,943
Contributions paid by the employer	504	512
Benefits paid	(1,215)	(502)
Fair value of plan assets at December 31	$ 66,401	61,848

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

	2025	2024
Current service costs	$ 151	-
Net interest of net liabilities for defined benefit obligations	(530)	(366)
	$ (379)	(366)
Operating expense	$ (379)	(366)

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

5) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

	2025.12.31	2024.12.31
Discount rate	1.300 %	1.600 %
Future salary increase rate	3.500 %	3.500 %

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $504 thousands.

The weighted average lifetime of the defined benefits plans is 8 years.

6) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

Original actuarial assumptions	Influences of defined benefit assets
	Increased 0.5%	Decreased 0.5%
December 31, 2025
Discount rate 1.300%	$ 360	(379)
Future salary increasing rate 3.500%	(360)	345
December 31, 2024
Discount rate 1.600%	472	(494)
Future salary increasing rate 3.500%	(471)	455

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

(ii) Defined contribution plans

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $38,742 thousands and $39,963 thousands for the years ended December 31, 2025 and 2024, respectively.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(k) Income taxes

(i) The components of income tax in the years 2025 and 2024 were as follows:

	2025	2024
Current tax	$ 17,372	37,688
Deferred tax	(7,089)	24,926
Income tax expense	$ 10,283	62,614

(ii) The amount of income tax recognized directly in equity or other comprehensive income for 2025 and 2024 were both 0.

(iii) Reconciliation of income tax and profit before tax for 2025 and 2024 is as follows:

	2025	2024
Profit excluding income tax	$ 23,388	245,389
Income tax using the domestic tax rate	11,082	61,187
Change in provision in prior periods	(27)	4,181
Others	(772)	(2,754)
	$ 10,283	62,614

(iv) Deferred tax assets and liabilities

1) Unrecognized deferred tax liabilities

The Company’s foreign subsidiaries have retained earnings, because of the demand of capital expenditures and working capital. The Group expects that some of these retained earnings will not be returned back to the Company in the foreseeable future under the consideration of Group’s integral development and investment plan. Hence, the temporary differences are not recognized under deferred tax liabilities. As of December 31, 2025 and 2024, the unrecognized deferred tax liabilities each amounted to $26,090 thousand for both periods.

2) Unrecognized deferred tax assets

	December 31, 2025	December 31, 2024
Tax effect of deductible temporary differences	$ 85,951	101,982
The carry forward of unused tax losses	82,004	80,593
	$ 167,955	182,575

The Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of five to ten years for local tax reporting purposes. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As of December 31, 2025, the information of the Group’s tax losses are as follows:

Company name	Year o loss	Unused tax loss	Expiry date
AMO	2019 (Approved)	$ 57,776	2029
AMO	2021 (Approved)	5,307	2031
AMO	2023 (Approved)	5,745	2033
AMO	2024 (Approved)	7,299	2034
AMO	2025 (Accured)	5,877	2035
		$ 82,004

3) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2025 and 2024 were as follows:

	Unrealized exchange gain	Income from equity investments under the equity method	Fiscal and tax difference from Depreciation	Total
Deferred Tax Liabilities:
Balance at January 1, 2025	$ 1,537	45,951	21,862	69,350
Recognized in profit or loss	650	(7,954)	143	(7,161)
Balance at December 31, 2025	$ 2,187	37,997	22,005	62,189
Balance at January 1, 2024	$ -	22,778	20,029	42,807
Recognized in profit or loss	1,537	23,173	1,833	26,543
Balance at December 31, 2024	$ 1,537	45,951	21,862	69,350
	Unrealized exchange loss	Allowance to reduce inventory	Others	Total
Deferred Tax Assets:
Balance at January 1, 2025	$ -	(11,716)	(3,999)	(15,715)
Recognized in profit or loss	-	354	(282)	72
Balance at December 31, 2025	$ -	(11,362)	(4,281)	(15,643)
Balance at January 1, 2024	$ (1,630)	(8,623)	(3,845)	(14,098)
Recognized in profit or loss	1,630	(3,093)	(154)	(1,617)
Balance at December 31, 2024	$ -	(11,716)	(3,999)	(15,715)

(v) Examination and Approval

The Company’s tax returns for the years through 2023 were examined and approved by the Taipei National Tax Administration.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(l) Capital and other equity

As of December 31, 2025 and 2024, the total value of authorized ordinary shares both were amounted to $1,000,000 thousand with par value of $10 per share. As of that date, ordinary shares both were issued amounted to $770,000 thousand.

(i) Capital surplus

The balances of capital surplus were as follows:

	December 31, 2025	December 31, 2024
Issued share premium	$ 592,499	592,499
Adjustment of re-segmentation	42,439	42,439
Employee share options	7,847	7,847
	$ 642,785	642,785

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(ii) Retained earnings

The Company’s Articles of Incorporation requires that after-tax earnings shall first be offset against any deficit, and 10% of the balance shall be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the total authorized capital. Aside from the aforesaid, the Company may, under its Articles of Incorporation or as required by the government, appropriate or reverse for special reserve. The remaining balance of the earnings, if any, may be appropriated according to a resolution of a shareholder’s meeting.

In consideration of the shareholder’s long-term benefit and stable operation, the Company adopts a stable dividends policy. Therefore, cash dividends should not be less than 30% of aggregate dividends

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Special reserve

In accordance with Ruling No. 1010012865 issued by the FSC on April 6, 2012, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders' equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders' equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions.

3) Earnings distribution

Earnings distribution for 2024 and 2023 were decided via the general meeting of shareholders held on May 29, 2025 and May 30, 2024. The relevant dividend distributions to shareholders were as follows.

	2024		2023
	Amount per share	Total amount	Amount per share	Total amount
Dividends distributed to ordinary shareholders:
Cash	$ 1.65	127,050	1.00	77,000

Earnings distributions for 2024 and 2023 that decided by the general meeting of shareholders were not different from the resolution of board meeting. Related information would be available at the Market Observation Post System website.

(m) Earnings per share

(i) Basic earnings per share

The details on the calculation of basic earnings per share as of December 31, 2025 and 2024 was based on the profit attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, as follows:

	2025	2024
Basic earnings per share
Profit attributable to ordinary shareholders of the Company	$ 13,105	182,775
Weighted-average number of ordinary shares (thousand shares)	77,000	77,000
Basic earnings per share (dollar)	$ 0.17	2.37

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Diluted earnings per share

The details on the calculation of diluted earnings per share as of December 31, 2025 and 2024 was based on the profit attributable to ordinary shareholders of the Company, and the weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, as follows:

	2025	2024
Diluted earnings per share:
Profit attributable to ordinary shareholders of the Company	$ 13,105	182,775
Weighted-average number of ordinary shares (diluted) (thousand shares)	77,104	77,433
Diluted earnings per share (dollar)	$ 0.17	2.36
	2025	2024
Weighted-average number of ordinary shares (basic) (thousand shares)	77,000	77,000
Effect of dilutive potential ordinary shares:
Effect of employee share bonus	104	433
Weighted average number of ordinary shares (diluted) (thousand and shares)	77,104	77,433

(n) Revenue from contracts with customers

(i) Details of revenue

	2025	2024
Primary geographical markets
Malaysia	$ 934,545	816,120
Singapore	546,709	595,170
Taiwan	260,937	201,804
China	238,749	330,140
Thailand	220,078	226,790
Ireland	73,773	176,426
Others	112,869	49,675
	$ 2,387,660	2,396,125

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	2025	2024
Major products
Hard disk drive stamping components	$ 886,464	746,989
Electronic stamping components	628,604	685,367
Plastic injection	523,033	598,274
Automatic machines	172,685	247,599
Others	176,874	117,896
	$ 2,387,660	2,396,125

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and accounts receivable	$ 665,482	554,717	400,719
Less: allowance for impairment	(46,099)	(27,727)	(7,176)
Total	$ 619,383	526,990	393,543
Contract liabilities	$ 16,497	29,895	11,971

For details on accounts receivable and allowance for impairment, please refer to note 6(b).

The major change in the balance of contract liabilities is the advance consideration received from customers for the contracts, in which revenue is recognized when products are delivered to customers. The amount of revenue recognized for the years ended December 31, 2025 and 2024, which was included in the contract liability balance at the beginning of the period, was $29,895 thousand and $11,358 thousand, respectively.

(o) Employee compensation and directors' remuneration

On May 29, 2025, the Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Articles, if the Company has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Company. The remainder, if any, 3%~9% shall be allocated as employee remuneration (including a minimum of 20% to those base-level employees) and a maximum of 3% as remunerations for directors. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, may include employees of the subsidiaries who meet certain specific requirements.

Prior to the amendment, the Articles of Incorporation stipulated that, if the Company has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Company. The remainder, if any, 3%~9% should be allocated as employee remuneration and no more than 3% as remunerations for directors and supervisors. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, could include employees of the subsidiaries who met certain specific requirements.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024, the Company estimated its employee remuneration amounting to $1,312 thousand and $17,770 thousand, respectively, and directors' remuneration amounting to $562 thousand and $7,616 thousand, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees and directors of each period, multiplied by the percentage of remuneration to employees and directors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2025. If any differences between the actual and estimated amount occur after the reporting date, they shall be accounted for as changes in accounting estimates and recognized in profit or loss in the following year.

The amounts mentioned above were identical to those of the actual distributions for 2025 and 2024. The related information can be accessed from the Market Observation Post System website.

(p) Non-operating income and expenses

(i) Other income

The details of other income were as follows:

	2025	2024
Rent income	$ 4,441	4,665
Other income	11,304	27,777
	$ 15,745	32,442

(ii) Other gains and losses

The details of other gains and losses were as follows:

	2025	2024
Net foreign exchange gain (loss)	$ (28,439)	30,819
Net gain on disposal of property, plant and equipment	2,631	990
Others	(229)	(80)
	$ (26,037)	31,729

(q) Financial instruments

(i) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, which arises from the Group’s accounts receivable.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Credit risk exposure

As at reporting date, the carrying amount of financial assets represents the maximum amount exposed to credit risk. For the year end in 2025 and 2024, the maximum amount was $1,283,386 thousand and $1,466,842 thousand, respectively. Implicit credit risk of the Group is inherent in its cash and accounts receivable. The cash is deposited in different financial institutions. The Company manages the credit risk exposure with each of these financial institutions and believes that cash do not have a significant credit risk concentration.

2) Concentration of credit risk

The concentration of credit risk is mainly affected by creditors' rating and the client's industry. As of December 31, 2025 and 2024, 67% and 69%, respectively, of the Group's accounts receivable were concentrated on top five sales clients.

(ii) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Group's management supervises the banking facilities and ensures compliance with the terms of loan agreements.

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

	Carrying amount	Contractual cash flows	Within 1 year	1-2 years	2-5 years	Over 5 years
December 31, 2025
Non derivative financial liabilities
Bank loans	$ 532,000	534,302	534,302	-	-	-
Accounts payable (including related parties)	242,395	242,395	242,395	-	-	-
Lease liabilities	80,223	136,864	19,455	5,140	14,856	97,413
Other financial liabilities	261,119	261,119	261,119	-	-	-
	$ 1,115,737	1,174,680	1,057,271	5,140	14,856	97,413
December 31, 2024
Non derivative financial liabilities
Bank loans	$ 446,000	452,168	289,020	163,148	-	-
Accounts payable (including related parties)	251,470	251,470	251,470	-	-	-
Lease liabilities	90,803	151,350	18,985	18,714	13,135	100,516
Other financial liabilities	327,135	327,135	327,135	-	-	-
	$ 1,115,408	1,182,123	886,610	181,862	13,135	100,516

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Exposure to foreign currency risk

The Group’s significant exposure to foreign currency risk was as follows:

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD
Financial assets
Monetary items
USD	$ 20,944	31.43	658,274	15,214	32.79	498,796
Financial liabilities
Monetary items
USD	1,233	31.43	38,763	939	32.79	30,782

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade receivables, bank loans and trade payables that are denominated in foreign currency. A weakening or strengthening of 1% of the NTD against the Foreign currency as of 31 December, 2025 and 2024 would have decreased or increased the net profit before tax by $6,195 thousand and $4,680 thousand, respectively. The analysis is performed on the same basis for 2024.

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For years 2025 and 2024, foreign exchange gain (loss) (including realized and unrealized portions) amounted to $(28,439) thousand and $30,819 thousand, respectively.

4) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group's financial liabilities.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases a quarter-point when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by a quarter-point, the Group’s net income before tax would have increased or decreased by $460 thousands and $760 thousands for the year ended 2025 and 2024 with all other variable factors remaining constant. This is mainly due to the Group’s financial liabilities in variable-rate loans and deposits.

The Group’s fixed-interest-rate financial assets and liabilities are measured at amortized cost. The changes in market rate do not affect the Group’s profit or loss on the reporting date. Therefore, the Group does not disclose the sensitivity analysis of the changes in fair value.

(iv) Fair value of financial instruments

The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, disclosure of fair value information is not required:

	December 31, 2025
	Book Value	Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	$ 648,799
Notes and accounts receivable	424,110
Accounts receivable – related party	195,273
Other financial assets	15,204
Subtotal	$ 1,283,386
Financial liabilities measured at amortized cost
Long term and short term borrowings	$ 532,000
Accounts payable (including related parties)	242,395
Lease liabilities	80,223
Other financial liabilities	261,119
Subtotal	$ 1,115,737

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Book Value	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	$ 926,431
Notes and accounts receivable	368,590
Accounts receivable – related party	158,400
Other financial assets	13,421
Subtotal	$ 1,466,842
Financial liabilities measured at amortized cost
Long term and short term borrowings	$ 446,000
Accounts payable (including related parties)	251,470
Lease liabilities	90,803
Other financial liabilities	327,135
Subtotal	$ 1,115,408

1) Valuation techniques for financial instruments measured at fair value

The fair value of financial instruments traded in an active market is based on the quoted market price. The quotation announced by the stock exchange center or exchange center, might be regarded as the fair value of the listed equity securities which is traded in an active market.

If quoted price of a financial instrument can be obtained in time and often from exchanges, brokers, underwriters, industrial union, pricing institute, or authorities and such price can reflect those actual trading and frequently happen in the market, then the financial instrument is considered to have quoted price in active market. If a financial instrument does not accord with the definition aforementioned, then it is considered to be without quoted price in active market. In general, market with low trading volume or high bid-ask spreads is an indication of non-active market.

The Group’s valuation techniques and assumptions used for financial instruments measured at fair value are as follows:

Measurements of fair value of financial instruments with an active market, such as corporate stock, beneficiary certificate etc., its fair value depends on the market quotation.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Measurements of fair value of financial instruments without an active market are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

2) There was no transfer between each fair value levels in 2025 and 2024.

(r) Financial risk management

(i) Structure of risk management

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(ii) The Group have exposures to the following risks from its financial instruments:

1) Credit risk
2) Liquidity risk
3) Market risk

The following likewise discusses the Group’s objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to note 6(q).

(s) Capital management

The Group’s capital management policy is to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital asset purchases and debt service requirements associated with its existing operations over the next 12 months, wherein it also take the debt ratio into consideration to maintain investors, creditors and market confidence, as well as to sustain the future development of the business. The Group’s capital management strategy was consistent with that of the prior year, in which the debt ratios of 39% and 38% were taken into account as of December 31, 2025 and 2024, respectively.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(t) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2025 and 2024, were as follows:

(i) Obtain right-of assets by lease, please refer to notes 6(f).

(ii) Reconciliation of liabilities arising from financing activities were as follows:

	January 1, 2025	Cash flows	Foreign exchange movement and otherst	December 31, 2025
Short-term borrowings	$ 220,000	150,000	-	370,000
Long-term borrowings	226,000	(64,000)	-	162,000
Lease liabilities	90,803	(13,458)	2,878	80,223
Total liabilities from financing activities	$ 536,803	72,542	2,878	612,223
	January 1, 2024	Cash flows	Foreign exchange movement and others	December 31, 2024
Short-term borrowings	$ 230,000	(10,000)	-	220,000
Long-term borrowings	290,000	(64,000)	-	226,000
Lease liabilities	100,524	(13,371)	3,650	90,803
Total liabilities from financing activities	$ 620,524	(87,371)	3,650	536,803

(7) Related-party transactions

(a) Names and relationship with related parties

Name of related party	Relationship with the Group
Min Aik Technology Co., Ltd (MAT)	The entity with significant influence over the Group
Min Aik Technology (M) Sdn. Bhd. (MAM)	Other related party (MAT's subsidiary)
MATC Technology (M) Sdn. Bhd. (MATC)	//
Min Aik Technology (SuZhou) Co., Ltd. (MAY)	//
Key management personnel	The Group’s major management personnel

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Significant transactions with related parties

(i) Sales

The amounts of significant sales and uncollected receivables by the Group to related parties were as follows:

	Sales		Receivables from related parties
	2025	2024	December 31, 2025	December 31, 2024
The entity with significant influence over the Group:
MAT	$ 241,408	181,946	87,566	71,757
Other related parties:
MAM	280,234	235,248	104,831	86,643
Others	2,735	-	2,876	-
	$ 524,377	417,194	195,273	158,400

The payment terms of the Group's sales to related parties is O/A 90~120 days and which term may be changed depend on the Group's operation. The payment terms to non-related parties was normally about two to four months. The selling price to related parties is referred to the market price and negotiated by both parties.

(ii) Purchases

The amounts of significant purchase and payables by the Group from related parties were as follows:

	Purchases		Payables to related parties
	2025	2024	December 31, 2025	December 31, 2024
Other related parties:
MAY	$ 27,641	34,673	7,655	7,250

1) The payment term of purchases from related parties was O/A 30 days, and which term may be changed depend on the Group's operation. The purchase price from related parties is referred to the market price and negotiated by both parties

2) As of December 31, 2025 and 2024, the prepayment for material to other related parties were USD$56 thousand and USD$52 thousand, respectively.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Accepting service and other accounts payable to related parties

	Transaction amount		Other accounts payable – related parties
	2025	2024	December 31, 2025	December 31, 2024
The entity with significant influence over the Group	$ 6,528	6,179	1,227	1,130
Other related parties	2,365	1,072	-	-
	$ 8,893	7,251	1,227	1,130

(iv) Rendering of services and other accounts receivable from related parties

	Transaction amount		Other accounts receivable – related parties
	2025	2024	December 31, 2025	December 31, 2024
The entity with significant influence over the Group	$ -	325	-	350
Other related parties	1,223	1,304	223	189
	$ 1,223	1,629	223	539

Key management personnel compensation were as follows:

	2025	2024
Short-term employee benefits	$ 19,417	37,519
Post-employment benefits	243	243
	$ 19,660	37,762

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	December 31, 2025	December 31, 2024
Land and buildings	Long-term borrowings	$ 661,542	663,717
Restricted cash in banks	Guarantee for post release duty payment	1,000	1,000
		$ 662,542	664,717

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(9) Significant contingent liabilities and unrecognized Commitments:

(a) The Group’s unrecognized contractual commitments are as follows:

	December 31, 2025	December 31, 2024
Purchase commitment	$ 72,555	75,019
Acquisition of property, plant and equipment	$ 71,710	37,034

(b) The guarantee notes issued by the Group for obtaining the bank loan amount and the guarantees provided to the bank for the financing demand are as follows:

	December 31, 2025	December 31, 2024
Issued guarantee notes	$ 1,210,000	1,215,000
Endorsements and guarantees	$ 31,430	32,785

(10) Losses Due to Major Disasters: None.
(11) Subsequent Events: None.
(12) Other:

A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

By item	For the year ended December 31
	2025			2024
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits
Salary	481,119	142,539	623,658	496,316	174,689	671,005
Labor and health insurance	41,984	11,644	53,628	36,692	11,013	47,705
Pension	25,500	12,863	38,363	25,352	14,245	39,597
Others	40,691	12,723	53,414	41,131	13,858	54,989
Depreciation	81,266	16,272	97,538	82,326	15,861	98,187
Amortization	4,462	-	4,462	1,644	-	1,644

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year ended December 31, 2025:

(i) Loans to other parties: None
(ii) Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise (Note 2)	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements (Note 2)	Parent company endorsements/guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/guarantees to third parties on behalf of parent company	Endorsements/guarantees to third parties on behalf of subsidiary
		Name	Relationship with the Company
0	The Company	Esteem King	(2)	1,900,823	33,205	31,430	-	-	1.65 %	1,900,823	Yes	No	No

Note 1: Relationship with guarantor:

Ordinary business relationship.
The Company directly or indirectly owned more than 50% of the subsidiary shares.
The counter-party directly or indirectly owned more than 50% of the Company’s shares.
The Company directly or indirectly owned 90% or more than 90% of subsidiaries’ shares.
Fulfillment of contractual obligations by providing mutual endorsements and guarantees for peer or joint builders in order to undertake a construction project.
An entity that is guaranteed and endorsed by all capital contributing shareholders in proportion to their shareholding percentages.
The companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 2: The amount of the guarantee provided by the Company to any individual entity shall not exceed 10% of the Company’s net worth. The subsidiaries whose voting shares are 100% owned, directly or indirectly, by the Company shall not exceed the Company’s net worth.

Note 3: The total amount of endorsements/guarantees may not exceed the Company’s net worth.

Note 4: If highest balance of financing to other parties during the period was foreign currencies which were translated to New Taiwan Dollars by the highest exchange rate for current year. If ending balance and actual usage amount during the period were foreign currencies which were translated to New Taiwan Dollars by the exchange rate at the reporting date.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Material securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures): None
(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details				Transactions with terms different from others		Notes/Accounts receivable (payable)
			Purchase/Sale	Amount	Percentage of total purchase/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company	Min Aik Technology (M)
Sub. Bhd. (MAM)	The entity with significant influence over the Group	(Sale)	(280,234)	(18%)	Note 1	-	-	104,831	25%
The Company	Min Aik Technology Co., Ltd. (MAT)	The entity with significant influence over the Group	(Sale)	(241,408)	(16%)	Note 2	-	-	87,566	21%

Note 1: The payment term is O/A 105 days, any further adjustment on the term will have to be agreed by both parties.
Note 2: The payment term is O/A 90~120 days, any further adjustment on the term will have to be agreed by both parties.

(v) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue		Amounts received in subsequent period	Loss allowance
					Amount	Action taken
The Company	MAM	The entity with significant influence over the Group	104,831	2.93			45,611 (Note)

Note: Until February 25, 2026.

(vi) Business relationships and significant intercompany transactions (only disclose transactions with amounts exceeding NT$10,000 thousands):

(In Thousands of New Taiwan Dollars)

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	The Company	AMO	1	Equipment	11,074	Note 3	0.35%

Note 1: fill in of numbers:
1. 0 represents the parent company
2. The subsidiaries start with number 1.

Note 2: Relationship with counterparty are represented below:
1. Transactions from parent company to subsidiary
2. Transactions from subsidiary to parent company
3. Transactions between subsidiaries

Note 3: The Company purchases finished machines from the subsidiary to meet order requirements.

Note 4: The transactions were eliminated in the preparation of consolidated financial statements.

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the years 2025 (excluding information on investees in Mainland China):

(In Thousands of New Taiwan Dollars)

Name of investee	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Net income (loss) of investee	Share of profits /losses of investee	Highest Percentage of ownership	Highest Percentage of ownership	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
The Company	Esteem King	Samoa	Investment holding	451,586	451,586	15,079	100 %	864,570	42,394	42,394	15,079	100 %	Note 1
Esteem King	MATC	Malaysia	Manufacture and selling hard disk components	127,726	127,726	4,427	20 %	4,511	49,198	4,221	4,427	20 %
Esteem King	MAPP	Singapore	Manufacture and sale medical injection molding	323,449	323,449	10,714	100 %	855,009	38,406	38,406	10,714	100 %	Note 1

Note 1: The aforementioned investments have been eliminated from the consolidated financial statements.

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousands of New Taiwan Dollars)

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investee (Note 2)	Percentage of ownership	Investment income (losses)	Book value	Accumulated remittance of earnings in current period	Highest balance during the year
					Outflow	Inflow							Shares: Units (thousands)	Percentage of ownership
Arnold (Suzhou)	Design and manufacture automatic machines	213,774	Note 1	141,923	-	-	141,923	(5,940)	100%	(5,940)	282,919	69,609	-	100%

(ii) Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
141,923	210,772	1,140,494

Note 1: The Group invests subsidiaries which is via MAPP.

Note 2: Financial statements, which base on the audited and attested by R.O.C. parent Company's CPA.

Note 3: The transactions were eliminated in the preparation of consolidated financial statements.

(iii) Significant transactions with the investees in Mainland China:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in "Information on significant transactions"

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(14) Segment information:

(a) General information

For the purpose of resource allocation and performance measurement, the Group classified operating segment based on its business types, and supervised and managed the divisions’ performance by the Group’s decision-maker. The Group has three reportable segments: the Company, MAPP and AMO. The Company engages mainly in the development, design and manufacture of precise components. MAPP engages mainly in the development and manufacture of medical plastic injection and molding. AMO engages mainly in development, manufacture and selling of automatic machines. Since the divisions offer different products and use different sales strategy, the Group managed them separately.

The Group measures segment’s profit or loss based on their operating income and use them as the basis for performance evaluation. The accounting policies of operating segments are identical to Note 4 “summary of significant accounting policies”.

The Group’s operating segment information and reconciliation are as follows:

	2025
	The Company	MAPP	Amould (Suzhou)	Other segment	Reconciliation and elimination	Total
Revenue
Revenue from external customers	$ 1,534,908	585,486	267,266	-	-	2,387,660
Intersegment revenues	-	-	10,352	-	(10,352)	-
Total revenue	$ 1,534,908	585,486	277,618	-	(10,352)	2,387,660
Reportable segment profit or loss	$ 633	51,026	(16,741)	(48)	8	34,878
	2024
	The Company	MAPP	Amould (Suzhou)	Other segment	Reconciliation and elimination	Total
Revenue
Revenue from external customers	$ 1,440,104	638,927	317,094	-	-	2,396,125
Intersegment revenues	-	-	220	-	(220)	-
Total revenue	$ 1,440,104	638,927	317,314	-	(220)	2,396,125
Reportable segment profit or loss	$ 113,499	76,509	(8,622)	(89)	7	181,304

(Continued)

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Corporate information

(i) Product information: Please refer to note 6(n).
(ii) Geographic information: Please refer to note 6(n).
(iii) Major customers

For the years ended 2025 and 2024, the amounts of Sales to clients representing 10% of net operating revenue were as follows:

Customer	2025
	Amount	%
A Group	$ 618,133	26
Min Aik Technology Co., Ltd. Group	524,377	22
S Group	369,605	16
J Company	246,189	10
	$ 1,758,304	74
	2024
Customer	Amount	%
A Group	$ 588,647	25
Min Aik Technology Co., Ltd. Group	417,194	17
J Company	344,589	14
S Group	331,027	14
	$ 1,681,457	70

AI assistant

MAP — Audit Report / Information 2026

52402_rns_2026-05-21_0c57015f-5ef2-452b-ad50-d095666a0858.pdf

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Table of contents

Representation Letter

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

(ii) Functional and presentation currency

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(c) Basis of consolidation

(i) Principles of preparation of the consolidated financial statements

(ii) List of subsidiaries in the consolidated financial statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As a lessee

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As a lessor

(l) Impairment of non-financial assets

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(a) Valuation of inventories

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(f) Right-of-use assets

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

MIN AIK PRECISION INDUSTRIAL CO., LTD. AND SUBSIDIARIES

MAP Audit Report / Information 2026