MBI — Audit Report / Information 2024

Nov 13, 2024

MAXIGEN BIOTECH INC.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2024 AND 2023

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Maxigen Biotech Inc.

Opinion

We have audited the accompanying parent company only balance sheets of Maxigen Biotech Inc., Ltd. (the “Company”) as at December 31, 2024 and 2023, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of Maxigen Biotech Inc., Ltd as at December 31, 2024 and 2023, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by 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 Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants 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

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and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2024 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2024 parent company only financial statements are stated as follows:

Existence and occurrence of top ten customers

Description

The Company and its subsidiaries (listed as investments accounted for under equity method) are primarily engaged in the production and sales of biomedical materials and care products. Other than Taiwan, the Company’s and its subsidiaries’ (listed as investments accounted for under equity method) customers are spread in America, Europe, Mainland China and South East Asia, and since the transaction terms for each customer were not the same, the audit procedures require more manpower. Additionally, the revenue from the Company’s and its subsidiaries’ (listed as investments accounted for under equity method) top 10 customers represented a significant proportion of the operating revenue in the parent company only financial statements. Thus, we considered the existence and occurrence of top 10 sales customers as a key audit matter.

Please refer to Note 4(25) for accounting policies on revenue recognition and Note 6(17) for details of sales revenue and Note 6(6) for details of investments accounted for under equity method.

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How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• A. Understood and tested the internal control of sales revenue recognition of top 10 customers, and tested the effectiveness of internal control in relation to the sales revenue.

• B. Sampled and verified the sales orders and delivery documents of top 10 customers, and confirmed that the sales revenue transaction actually occurred.

• C. Sampled and verified the sales returns and discounts of top 10 customers, and confirmed the existence of sales revenue recognition.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’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 Company or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ responsibilities for the audit of the parent company only financial

statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 parent company only 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:

1. Identify and assess the risks of material misstatement of the parent company only 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.

2. 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 Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

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1. 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 Company’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 parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

2. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

3. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the parent company audit. We remain solely responsible for our audit opinion.

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

We also 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.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s 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.

Chih, Ping-Chiun

[Lai, Chung-Hsi ]

For and on behalf of PricewaterhouseCoopers, Taiwan February 26 , 2024

------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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MAXIGEN BIOTECH INC.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(3) and 8 6(4) 6(4) 7 7 6(5) 6(7) 6(2) 6(8) 6(9) 6(23) 6(7)	December 31, 2024 AMOUNT % $ 632,036 38 1,500 - 15,138 1 87,635 5 84,742 5 - - 41 - 65,549 4 9,445 1 114 - 896,200 54 311,312 19 430,363 26 129 - 2,546 - 7,805 1 752,155 46 $ 1,648,355 100	December 31, 2023	December 31, 2023
		AMOUNT $ 632,036 1,500 15,138 87,635 84,742 - 41 65,549 9,445 114 896,200 311,312 430,363 129 2,546 7,805 752,155 $ 1,648,355	AMOUNT $ 408,909 1,500 14,851 59,826 87,285 8,715 22,540 65,718 5,780 77 675,201 432,800 424,178 486 5,833 10,126 873,423 $ 1,548,624	%
Current assets 1100 Cash and cash equivalents 1136 Current financial assets at amortised cost 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable due from related parties, net 1200 Other receivables 1210 Other receivables due from related parties 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1600 Property, plant and equipment 1780 Intangible assets 1840 Deferred tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Current tax assets				26 - 1 4 6 1 2 4 - -
				44
				28 27 - - 1
				56
				100

(Continued)

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MAXIGEN BIOTECH INC.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2024 December 31, 2023 Notes AMOUNT % AMOUNT % 6(17) $ 22,931 1 $ 1,336 - - - 50 - 30,036 2 16,584 1 7 16,323 1 1,420 - 6(10) 92,546 6 81,200 5 7 2,169 - 42 - 6(23) 25,519 2 24,465 2 819 - 527 - 190,343 12 125,624 8 6(23) 932 - 491 - 6(6) 81,953 5 61,406 4 82,885 5 61,897 4 273,228 17 187,521 12 6(13) 891,631 54 889,341 57 5,130 - 957 - 6(14) 326,932 19 296,096 19 6(15) 57,908 4 41,973 3 69,748 4 3,037 - 216,464 13 199,447 13 6(16) ( 192,686) ( 11) ( 69,748) ( 4 ) 1,375,127 83 1,361,103 88 $ 1,648,355 100 $ 1,548,624 100

Current liabilities 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable to related parties 2200 Other payables 2220 Other payables to related parties 2230 Current tax liabilities 2300 Other current liabilities 21XX Current liabilities Non-current liabilities 2570 Deferred tax liabilities 2600 Other non-current liabilities 25XX Non-current liabilities 2XXX Liabilities Equity Share capital 3110 Ordinary share 3140 Advance receipts for share capital Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3XXX Equity 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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MAXIGEN BIOTECH INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

Items

Year ended December 31 2024 2023 Notes AMOUNT % AMOUNT % 6(17) and 7 $ 651,729 100 $ 612,554 100 6(5)(13)(22)(23) and 7 ( 183,608) ( 28) ( 206,835) ( 34) 468,121 72 405,719 66 6(6) ( 10,232) ( 2) ( 24,568) ( 4) 6(6) 24,568 4 13,818 2 482,457 74 394,969 64 6(13)(22)(23) ( 64,956) ( 10) ( 69,029) ( 11) ( 78,255) ( 12) ( 72,541) ( 12) ( 111,972) ( 17) ( 68,595) ( 11) 12(2) ( 14,472) ( 2) ( 199) - ( 269,655) ( 41) ( 210,364) ( 34) 212,802 33 184,605 30 6(18) 9,987 1 12,209 2 6(19) 18,488 3 13,515 2 6(20) 17,159 3 17,501 3 6(6) ( 32,891) ( 5) ( 34,735) ( 6) 12,743 2 8,490 1 225,545 35 193,095 31 6(23) ( 35,378) ( 6) ( 27,267) ( 4) $ 190,167 29 $ 165,828 27 6(11)(16) $ 378 - $ 28 - 6(2)(16) ( 121,488) ( 19) ( 67,284) ( 11) 6(6)(16) ( 1,450) - 573 - ($ 122,560) ( 19) ($ 66,683) ( 11) $ 67,607 10 $ 99,145 16 6(24) $ 2.13 $ 1.86 6(24) $ 2.12 $ 1.85

4000 Sales revenue 5000 Operating costs 5900 Net operating margin 5910 Unrealized profit from sales 5920 Realized profit on from sales 5950 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit impairment losses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7070 Share of loss of associates and joint ventures accounted for using equity method, net 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealised losses from investments in equity instruments measured at fair value through other comprehensive income Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Other comprehensive loss for the year 8500 Total comprehensive income for the year Earnings per share (In dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

The accompanying notes are an integral part of these parent company only financial statements.

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MAXIGEN BIOTECH INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2023 Balance at January 1, 2023 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Appropriations of 2022 earnings Legal reserve Reversal of special reserve Stock dividends Cash dividends Share-based payments Exercise of employee stock purchase plans Balance at December 31, 2023 For the year ended December 31, 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Appropriations of 2023 earnings Legal reserve Reversal of special reserve Cash dividends Share-based payments Exercise of employee stock purchase plans Balance at December 31, 2024	Notes		Share capital	Share capital	Share capital	Capital surplus, additional paid- in capital	Capital surplus, additional paid- in capital			Retained earnings	Retained earnings		Other equity interest	Other equity interest		Total equity
			Share capital - common stock		Advance receipts for share capital				Legal reserve		Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised losses from financial assets measured at fair value through other comprehensive income
	6(16) 6(15) 6(15) 6(12)(22) 6(16) 6(15) 6(12)(22)		$ 846,991 - - - - - 42,350 - - - $ 889,341 $ 889,341 - - - - - - - 2,290 $ 891,631		$ - - - - - - - - - 957 $ 957 $ 957 - - - - - - - 4,173 $ 5,130		$ 281,902 - - - - - - - 14,194 - $ 296,096 $ 296,096 - - - - - - 8,613 22,223 $ 326,932		$ 28,322 - - - 13,651 - - - - - $ 41,973 $ 41,973 - - - 15,935 - - - - $ 57,908		$ 2,961 - - - - 76 - - - - $ 3,037 $ 3,037 - - - - 66,711 - - - $ 69,748	$ 138,518 165,828 28 165,856 ( 13,651 ) ( 76 ) ( 42,350 ) ( 42,350 ) ( 6,500 ) - $ 199,447 $ 199,447 190,167 378 190,545 ( 15,935 ) ( 66,711 ) ( 88,957 ) ( 1,925 ) - $ 216,464	($ 3,037 ) - 573 573 - - - - - - ($ 2,464 ) ($ 2,464 ) - ( 1,450 ) ( 1,450 ) - - - - - ($ 3,914 )	$ - - ( 67,284 ) ( 67,284 ) - - - - - - ($ 67,284 ) ($ 67,284 ) - ( 121,488 ) ( 121,488 ) - - - - - ($ 188,772 )	$ 1,295,657 165,828 ( 66,683 ) 99,145 - - - ( 42,350 ) 7,694 957 $ 1,361,103 $ 1,361,103 190,167 ( 122,560 ) 67,607 - - ( 88,957 ) 6,688 28,686 $ 1,375,127

The accompanying notes are an integral part of these parent company only financial statements.

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MAXIGEN BIOTECH INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Impairment loss determined in accordance with IFRS 9 Gain on disposal of property, plant and equipment Gain on disposal of investment property Share of profit of subsidiaries accounted for under equity method Depreciation Amortisation Interest income Dividend income Compensation cost arising from employee stock options Unrealized profit from sales Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Accounts receivable due from related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Accounts payable to related parties Other payables Other payables to related parties Other current liabilities Cash inflow generated from operations Interest received Dividends received Income tax paid Net cash flows from operating activities

Year ended December 31 Notes 2024 2023 $ 225,545 $ 193,095 6(4) and 12(2) 14,472 199 6(20) 4 155 6(20) - ( 13,770 ) 6(6) 32,891 34,735 6(7)(8)(21) 26,667 26,941 6(21) 357 675 6(18) ( 9,987 ) ( 12,209 ) ( 17,717 ) ( 12,712 ) 6(12) 6,688 7,694 6(6) ( 14,336 ) 10,750 ( 287 ) 14,148 ( 42,281 ) ( 12,860 ) 2,543 ( 22,022 ) 8,715 16 ( 506 ) 1,165 169 ( 2,061 ) ( 3,665 ) 6,162 ( 37 ) 812 21,595 ( 2,354 ) ( 50 ) 50 13,452 1,743 7 14,903 ( 20,206 ) 10,261 7,113 7 2,127 ( 1,537 ) 292 464 291,815 206,186 9,987 12,209 17,717 12,712 ( 30,596 ) ( 32,659 ) 288,923 198,448

(Continued)

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MAXIGEN BIOTECH INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Decrease in financial assets at amortised cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Proceeds from disposal of investment property Decrease (increase) in refundable deposits Decrease (increase) in prepayments for purchase of equipment Decrease in other non-current assets Decrease in other receivables - related parties Increase in other receivables - related parties Acquisition of non-current financial assets at fair value through other comprehensive income Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in other non-current liabilities Cash dividends paid Employee stock options Net cash flows used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2024 2023 $ - $ 8,816 6(25) ( 31,771 ) ( 19,044 ) - 900 - 22,590 ( 178 ) 33 2,935 ( 3,396 ) ( 58 ) ( 61 ) 23,005 - - ( 22,500 ) - ( 500,084 ) ( 6,067 ) ( 512,746 ) 542 - ( 88,957 ) ( 42,350 ) 28,686 957 ( 59,729 ) ( 41,393 ) 223,127 ( 355,691 ) 6(1) 408,909 764,600 6(1) $ 632,036 $ 408,909

The accompanying notes are an integral part of these parent company only financial statements.

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MAXIGEN BIOTECH INC.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

Maxigen Biotech Inc. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company is primarily engaged in collagen purification, research and development, production and sales of implantable medical device, and production, manufacturing, wholesale and retail of cosmetics. TCI CO., LTD. held 25.26% equity shares in the Company.

1. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These parent company only financial statements were authorised for issuance by the Board of Directors on February 26, 2025.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2024 are as follows:

2024 are as follows:
New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non- current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRSs Accounting Standards as endorsed by the FSC but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC and will become effective from 2025 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IAS 21, ‘Lack of exchangeability’ January 1, 2025

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRSs Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs Accounting Standards as endorsed by the FSC are as follows:

New Standards,Interpretations and Amendments

Effective date by International Accounting Standards Board

Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’ Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature- dependent electricity’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’ IFRS 18, ‘Presentation and disclosure in financial statements’ IFRS 19, ‘Subsidiaries without public accountability: disclosures’ Annual Improvements to IFRS Accounting Standards—Volume 11

January 1, 2026 January 1, 2026 To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027 January 1, 2026

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

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(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets at fair value through other comprehensive income.

• (c) Liabilities on cash-settled share-based payment arrangements measured at fair value.

• (d) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their

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translation differences are recognized in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

  - (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

  • (a) The operating results and financial position of all the company entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

    • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

    • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rate of that period; and

    • iii. All resulting exchange differences are recognized in other comprehensive income.

  • (b) Where the foreign entity reports in the currency of a hyperinflationary economy, the financial statements of the foreign entity should be restated for the changes in the general purchasing power of the functional currency before translated into the presentation currency at the balance sheet date. The financial statements of the foreign entity are restated based on the relevant price indexes at the balance sheet date, and then translated into the Group’s presentation currency using the closing exchange rates on that date.

• (4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

  • (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

  • (c) Assets that are expected to be realized within twelve months from the balance sheet date;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be settle within the normal operating cycle;

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be settled within twelve months from the balance sheet date;

  • (d) Liabilities that does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

• (5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known

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amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Financial assets at amortized cost

The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(7) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(8) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income, financial assets at amortized cost and accounts receivable that contain a significant financing component, at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognizes the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

• A. The contractual rights to receive the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Company has not retained control of the financial asset.

(10) Inventories

• Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

(11) Investments accounted for using equity method / subsidiary

• A. Subsidiaries are all entities (including structured entity) controlled by the Company. The

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Company controls an entity when the Company is exposed, 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.

• B. Unrealized gains on transactions between the Company and its subsidiaries are eliminated to the extent of the Company’s interest in the subsidiaries. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company should continue to recognize losses in proportion to its ownership.

• D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transaction with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

• E. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss, on the same basis as would be required if all the related assets or liabilities were disposed of. That is, other comprehensive income in relation to the subsidiary should be reclassified to profit or loss.

• F. According to “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, profit and other comprehensive income in the separate financial statements should be the same as profit and other comprehensive income attributable to shareholders of the parent in the consolidated financial statements, and the equity in the separate financial statements should be the same as the equity attributable to shareholders of the parent in the consolidated financial statements.

(12) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives.

• Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures Machinery and equipment Transportation equipment Office equipment Leasehold assets

15 ~ 50 years 3 ~ 8 years 3 ~ 6 years 3 ~ 6 years 5 ~ 10 years

(13) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable;

• (b) Variable lease payments that depend on an index or a rate.

• The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability;

• (b) Any lease payments made at or before the commencement date .

  • The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

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• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and

• recognize the difference between remeasured lease liability in profit or loss.

• (14) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 15 ~ 50 years.

• (15) Intangible assets

• A. Trademarks, patents and business rights

  • Separately acquired trademarks, patents and business rights are stated at historical cost. Trademarks, patents and business rights acquired in a business combination are recognized at fair value at the acquisition date. Trademarks, patents and business rights have a finite useful life and are amortized on a straight-line basis over their estimated useful lives of 15 to 20 years.

• B. Computer software

  • Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 3 to 5 years.

• C. Technology authorization and certification fee

Technology authorization and certification fee is stated at cost and amortized on a straight-line basis over its estimated useful life of 3 to 7 years.

• (16) Impairment of non-financial assets

• The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

(17) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(18) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(19) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when

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there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

• (20) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plan

For the defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plan

  • i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

  • ii.Remeasurements arising on the defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Termination benefits

• Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognizes expense as it can no longer withdraw an offer of termination benefits or it recognizes relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

• D. Employees’ compensation and directors’ and supervisors’ remuneration

• Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive

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obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

- (21) Employee share based payment

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and nonvesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest.

• (22) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

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• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(23) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• (24) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(25) Revenue recognition

• A. The Company manufactures and sells consumer products related to biomedical materials. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer who 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, or the Company has objective evidence that all criteria for acceptance have been satisfied.

• B. The products are often sold with price break based on aggregate sales. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated price break. Accumulated experience is used to estimate and provide for the price break, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date.

(26) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Company will comply with conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which

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the Company recognizes expenses for the related costs for which the grants are intended to compensate.

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these separate financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

None.

6. Details of Significant Accounts

(1) Cash and cash equivalents

Cash on hand and revolving funds Checking accounts and demand deposits Time deposits Total	December31,2024 December 31, 2023 296 $ 309 $ 179,753 124,657 451,987 283,943 632,036 $ 408,909 $

• A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. As of December 31, 2024 and 2023, the Company had restricted time deposits due to customs for negotiation in the amounts of $1,500 and $1,500 which were classified as ‘financial assets at amortized cost’, please refer to Note 8.

(2) Financial assets at fair value through other comprehensive income

Items		December	31,2024		December	31,2023
Non-current items:
Equity instruments
Listed stocks		$	500,084		$	500,084
Valuation adjustment	(		188,772)	(		67,284)
		$	311,312		$	432,800

• A. The Company has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $311,312 and $432,800 as at December 31, 2024 and 2023 respectively.

• B. Amounts recognized in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

~25~

Year ended December 31 2024 2023 Equity instruments at fair value through other comprehensive income Fair value change recognised in other ($ 121,488) ($ 67,284) comprehensive income Year ended December 31 2024 2023 Dividend income recognised in profit or loss Held at end of period $ 17,717 $ 12,712

• C. As of December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company amounted to $311,312 and $432,800, respectively.

• D. The Company’s financial assets at fair value through other comprehensive income were not pledged to others as collateral.

• E. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

(3) Financial assets at amortized cost

Items December 31, 2024 December 31, 2023 Current items: Time deposits $ 1,500 $ 1,500

• A. Amounts recognized in profit or loss in relation to financial assets at amortized cost are listed below:

below:
Interest income	Year ended December31
	2024 25 $	2023
		236 $

• B. The Company’s financial assets at amortized cost comprise of the time deposits in banks with good credit rating.

• C. As at December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Company was $1,500 and $1,500, respectively.

• D. Details of the Company’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.

• E. Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2).

~26~

(4) Notes and accounts receivable

Notes and accounts receivable
		December	31,2024		December	31,2023
Notes receivable		$	15,138		$	14,851
Accounts receivable		$	110,046		$	67,766
Less: Loss allowance	(		22,411)	(		7,939)
		$	87,635		$	59,826

• A. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

Not past due Up to 30 days 31 to 90 days 91 to180 days Over 180 days	December 31, 2024 December 31, 2023 98,919 $ 72,708 $ 492 1,625 2,090 344 1,272 - - - 102,773 $ 74,677 $

The above ageing analysis was based on past due date.

• B. As of December 31, 2024 and 2023, accounts receivable and notes receivable were all from contracts with customers. And as of January 1, 2023, the balance of receivables from contracts with customers amounted to $76,164.

• C. The Company has no notes and accounts receivable pledged to others as collateral.

• D. As of December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s notes and accounts receivable was $15,138 and $14,851; $87,635 and $59,826, respectively.

• E. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

(5) Inventories

12(2). nventories
Raw materials Work in progress Finished goods		December31,2024
	Allowance for valuation loss 20,357 $ 1,750) ($ 26,542 744) ( 21,526 382) ( 68,425 $ 2,876) ($ Cost		Carrying amount
			18,607 $ 25,798 21,144
			65,549 $

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				December31,2023
				Allowance for
		Cost		valuation loss		Carrying amount
Raw materials	$	23,081	($	4,727)	$	18,354
Work in progress		23,084	(	7)		23,077
Finished goods		24,654	(	367)		24,287
	$	70,819	($	5,101)	$	65,718

The cost of inventories recognized as expense for the years ended December 31, 2024 and 2023, was $183,608 and $206,835, respectively, including the amounts of $3,624 and $167 that the Company wrote down from cost to net realizable value accounted for as cost of goods sold for the years ended December 31, 2024 and 2023, respectively.

(6) Investments accounted for using equity method

December 31, 2024 and 2023, respectively. Investments accounted for using equity method
		2024		2023
At January 1	$	-	$	8,511
Beginning of credit balance of investments	(	61,387)	(	16,272)
accounted for using equity method transferred
to other non-current liabilities
Disposal of investments accounted for using		-	(	8,714)
equity method
Share of profit or loss of investments accounted	(	32,891)	(	34,735)
for using equity method
Unrealized profit from sales	(	10,232)	(	24,568)
Realized profit from sales		24,568		13,818
Changes in other equity items	(	1,450)		573
Ending of credit balance of investments
accounted for using equity method transferred
to other non-current liabilities		81,392		61,387
At December 31	$	-	$	-
	December31,2024		December31,2023
HORAY INC.(Note 1)	$	-	$	-
Maxigen Biotech (Shanghai) Co., Ltd.	(	81,392)		(61,387)
	(	81,392)	(	61,387)
Add: Credit balance of investments accounted
for under equity method (shown as ‘2600
other non-current liabilities’)		81,392		61,387
	$	-	$	-

Information about the Company’s subsidiaries is provided in Note 4(3) of the 2024 consolidated financial statements.

Note 1: The company underwent dissolution and liquidation procedures on September 30, 2023, and

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the liquidation process was completed on July 18, 2024.

(7) Other current assets and other non-current assets

Other current assets and other non-current assets
Other current assets Prepaid expenses Prepayments to suppliers Prepaid insurance premiums Total Other non-current assets Prepayment for equipment Net defined benefit asset Guarantee deposits paid	December31,2024 9,110 $ 25 310 9,445 $ December31,2024 2,935 $ 4,516 354 7,805 $	December31,2023 5,365 $ 138 277 5,780 $
		December31,2023
		5,870 $ 4,081 175
		10,126 $

(8) Property, plant and equipment

Property, plant and	equipment
At January 1, 2024 Cost Accumulated depreciation 2024 At January 1 Additions Disposals Transfers Depreciation charge At December 31 At December 31, 2024 Cost Accumulated depreciation	133,225 $ 307,743 $ - 77,231) ( 133,225 $ 230,512 $ 133,225 $ 230,512 $ - 2,740 - - - - - 11,384) ( 133,225 $ 221,868 $ 133,225 $ 310,483 $ - 88,615) ( 133,225 $ 221,868 $ Land Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Leasehold improvements	17,670 $ 638,064 $ - 213,886) ( 17,670 $ 424,178 $ 17,670 $ 424,178 $ 8,193 32,856 - 4) ( 5,782) ( - - 26,667) ( 20,081 $ 430,363 $ 20,081 $ 658,458 $ - 228,095) ( 20,081 $ 430,363 $ Unfinished Construction Total
		125,921 $ 93,026) ( ( 32,895 $ 32,895 $ 17,257 - 5,782 10,647) ( ( 45,287 $ 143,598 $ 98,311) ( ( 45,287 $	1,531 $ 767) 764 $ 764 $ - - - 255) 509 $ 1,531 $ 1,022) 509 $	33,063 $ 26,185) ( 6,878 $ 6,878 $ 4,666 4) ( - 3,441) ( 8,099 $ 36,106 $ 28,007) ( 8,099 $	18,911 $ 16,677) ( 2,234 $ 2,234 $ - - - 940) ( 1,294 $ 13,434 $ 12,140) ( 1,294 $

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==> picture [508 x 190] intentionally omitted <==

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

Buildings and Machinery Transportation Office Leasehold Unfinished
Land structures and equipment equipment equipment improvements Construction Total
At January 1, 2023
Cost $ 133,225 $ 303,113 $ 118,652 $ 1,531 $ 29,700 $ 18,911 $ 21,601 $ 626,733
Accumulated depreciation - ( 66,286) ( 86,864) ( 512) ( 22,753) ( 15,696) - ( 192,111)
$ 133,225 $ 236,827 $ 31,788 $ 1,019 $ 6,947 $ 3,215 $ 21,601 $ 434,622
2023
At January 1 $ 133,225 $ 236,827 $ 31,788 $ 1,019 $ 6,947 $ 3,215 $ 21,601 $ 434,622
Additions - 4,630 3,741 - 3,459 - 5,714 17,544
- - - - - -
Disposals ( 1,055) ( 1,055)
Transfers - - 9,645 - - - ( 9,645) -
Depreciation charge - ( 10,945) ( 11,224) ( 255) ( 3,528) ( 981) - ( 26,933)
At December 31 $ 133,225 $ 230,512 $ 32,895 $ 764 $ 6,878 $ 2,234 $ 17,670 $ 424,178
At December 31, 2023
Cost $ 133,225 $ 307,743 $ 125,921 $ 1,531 $ 33,063 $ 18,911 $ 17,670 $ 638,064
Accumulated depreciation - ( 77,231) ( 93,026) ( 767) ( 26,185) ( 16,677) - ( 213,886)
$ 133,225 $ 230,512 $ 32,895 $ 764 $ 6,878 $ 2,234 $ 17,670 $ 424,178
----- End of picture text -----

The Company has no property, plant and equipment pledged to others as collateral. (9) Intangible assets

ntangible assets
									Technology
		Trademarks			Business			authorisation and				Computer
		and	patents			rights			certification fee			software			Total
At January 1, 2024
Cost		$	1,200		$	4,800		$	8,743		$	2,455		$	17,198
Accumulated
amortisation
and impairment	(		1,160)	(		4,800)	(		8,487)	(		2,265)	(		16,712)
		$	40		$	-		$	256		$	190		$	486
2024
At January 1		$	40		$	-		$	256		$	190		$	486
Amortisation charge	(		40)			-	(		138)	(		179)	(		357)
At December 31		$	-		$	-		$	118		$	11		$	129
At December 31, 2023
Cost		$	1,200		$	4,800		$	8,743		$	2,455		$	17,198
Accumulated
amortisation
and impairment	(		1,200)	(		4,800)	(		8,625)	(		2,444)	(		17,069)
		$	-		$	-		$	118		$	11		$	129

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==> picture [485 x 305] intentionally omitted <==

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

Technology
Trademarks Business authorisation and Computer
and patents rights certification fee software Total
At January 1, 2023
Cost $ 1,200 $ 4,800 $ 8,743 $ 2,455 $ 17,198
Accumulated
amortisation
and impairment ( 1,040) ( 4,800) ( 8,305) ( 1,892) ( 16,037)
$ 160 $ - $ 438 $ 563 $ 1,161
2023
At January 1 $ 160 $ - $ 438 $ 563 $ 1,161
Amortisation charge ( 120) - ( 182) ( 373) ( 675)
At December 31 $ 40 $ - $ 256 $ 190 $ 486
At December 31, 2023
Cost $ 1,200 $ 4,800 $ 8,743 $ 2,455 $ 17,198
Accumulated
amortisation
and impairment ( 1,160) ( 4,800) ( 8,487) ( 2,265) ( 16,712)
$ 40 $ - $ 256 $ 190 $ 486
----- End of picture text -----

A. Details of amortization on intangible assets are as follows:

Other payables Operating costs Selling expenses General and administrative expenses Research and development expenses Salaries and bonuses payable Employees’ dividends and directors’ remuneration payable Payable on machinery and equipment Other payables	Year ended December 31	Year ended December 31
	2024 13 $ 40 166 138 357 $ December31,2024 33,600 $ 36,970 1,730 20,246 92,546 $	2023
		32 $ 120 341 182
		675 $
		December31,2023
		29,193 $ 32,578 645 18,784
		81,200 $

(10) Other payables

(11) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the

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enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

(b) The amounts recognized in the balance sheet are as follows:

	December31,2024	December31,2024	December31,2023	December31,2023
Present value of defined benefit obligations	($	131)	($	137)
Fair value of plan assets		4,647		4,218
Net defined benefit asset	$	4,516	$	4,081

• (c) Movements in net defined benefit liabilities are as follows:

2024

	2024
Present value of defined benefit obligation At January 1 137) ($ Interest(expense) income 2) ( 139) ( Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions 2 Experience adjustments 6 8 Pension fund contribution - At December 31 131) ($	Fair value of planassets 4,218 $ 58 4,276 370 - - 370 1 4,647 $	Net defined benefitliabilities
		4,081 $ 56 4,137
		370 2 6
		378
		1
		4,516 $

~32~

2023

				2023
		Present value
		of defined		Fair value of			Net defined
	benefit obligation			planassets		benefitliabilities
At January 1	($	127)	$	4,120		$	3,993
Interest(expense) income	(	2)		61			59
	(	129)		4,181			4,052
Remeasurements:
Return on plan assets
(excluding amounts included in interest		-		36			36
income or expense)
Change in financial assumptions	(	2)		-	(		2)
Experience adjustments	(	6)		-	(		6)
	(	8)		36			28
Pension fund contribution		-		1			1
At December 31	($	137)	$	4,218		$	4,081

• (d) The Bank of Taiwan was commissioned to manage the fund of the Company’s defined benefit pension plan assets in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that Fund and therefore, the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2024 and 2023 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

• (e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Year ended December31	Year ended December31
	2024 1.500% 2.000%	2023
		1.375% 2.000%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

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Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

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

Discount rate Future salary increase
Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2024
Effect on present value of
defined benefit obligation ($ 4) $ 4 $ 4 ($ 4)
December 31, 2023
Effect on present value of
defined benefit obligation ($ 4) $ 4 $ 4 ($ 4)
----- End of picture text -----

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

  - (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2024 amount to $1.

• B. (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  • (b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2024 and 2023 were $5,248 and $4,680, respectively.

• (12) Share-based payment

• A. For the year ended December 31, 2024, the Company’s share-based payment arrangements were as follows:

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Type of arrangement	Grant date November 3, 2021 August 3, 2022	Quantity granted	Contract period	Vestingconditions
Employee share options Employee share options		2,630,000 770,000	6 years 6 years	Service for 2 years can be vested with 40% Service for 3 years can be vested with 80% Service for 4 years can be vested with 100% Service for 2 years can be vested with 40% Service for 3 years can be vested with 80% Service for 4 years can be vested with 100%

The share-based payment arrangements above are settled by equity.

B. Details of the share-based payment arrangements are as follows:

No. of options Options outstanding at January 1 2,762,000 Options granted - Options exercised 719,000) ( Options expired 171,000) ( Options outstanding at December 31 1,872,000 Options exercisable at December 31 1,129,600	Weighted-average exercise price No. of (indollars) options 49.17 $ 3,035,000 - - 39.90 23,000) ( 50.80 250,000) ( 67.91 $ 2,762,000 39.85 $ 835,000 2024 Year ended December 31	2023
		Weighted-average exercise price (in dollars)
		48.62 $ - 50.80 47.00
		49.17 $
		50.80 $

C. The weighted-average stock price of stock options at exercise dates for the years ended December 31, 2024 was $39.9.

D. The fair value of stock options granted on grant date is measured using the Black-Scholes optionpricing model. Relevant information is as follows:

Type of arrange ment Grant date Employee November 3, share options 2021 Employee August 3, share options 2022	Exercise Stock price price 50.8 50.8 41.2 41.2	Expected price volatility 43.63%~ 47.84% 45.89%~ 48.46%	Expected option life 5 5	Risk-free Expected interest Fair value dividends rate per unit - 0.41%~ 18.94~ 0.44% 19.37 - 1.00%~ 15.11~ 1.03% 16.98

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Note: Expected price volatility rate was estimated using the stock prices of the most recent period with length of this period approximate to the length of the stock options’ expected life, and the standard deviation of return on the stock during this period.

• E. Expenses incurred on share-based payment transactions are shown below:

Equity-settled-the Company Cash-settled-parent company (accounted as ‘3350 undistributed earnings’)	2024 2023 6,688 $ 7,694 $ 1,925 6,500 8,613 $ 14,194 $ Year ended December31	2024 2023 6,688 $ 7,694 $ 1,925 6,500 8,613 $ 14,194 $ Year ended December31
		14,194 $

(13) Share capital

• A. On December 31, 2023, the Company’s authorized capital was $1,000,000, and the paid-in capital was $891,631 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number of the Company’s ordinary shares outstanding are as follows:

At January 1 (in thousands of shares) Cash capital increase-private placement Stock dividends At December 31 (in thousands of shares)	2024 88,934 $ 229 - 89,163 $	2023
		84,699 $ - 4,235
		88,934 $

• B. To increase the Company’s working capital, the stockholders at their annual stockholders’ meeting on July 12, 2021 adopted a resolution to raise additional cash through private placement with the effective date set on August 6, 2021. The maximum number of shares to be issued through the private placement is 11,000 thousand shares at a subscription price of $41.03 (in dollars) per share. The amount of capital raised through the private placement was $247,350 which had been registered. Pursuant to the Securities and Exchange Act, the ordinary shares raised through the private placement are subject to certain transfer restrictions and cannot be listed on the stock exchange until three years after they have been issued and have been offered publicly. Other than these restrictions, the rights and obligations of the ordinary shares raised through the private placement are the same as other issued ordinary shares.

(14) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(15) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be

~36~

used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. Stock dividends should be appropriated at a rate of 10% per annum. The remainder, if any, to be retained or to be appropriated shall be resolved by the stockholders at the stockholders’ meeting.

• B. The Company’s dividend policy is summarised below: as the Company operates in a volatile business environment and is in the stable growth stage, the residual dividend policy is adopted taking into consideration the Company’s financial structure, operating results and future expansion plans. According to the dividend policy adopted by the Board of Directors, at least 50% of the Company’s distributable earnings as of the end of the period shall be appropriated as dividends, and cash dividends shall account for at least 50% of the total dividends distributed.

• C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

• E. On June 19, 2023, the shareholders at the shareholders’ meeting approved the distribution of dividends from the 2022 earnings in the amount of $84,700, with stock dividends of $0.5 (in dollars) per share. On May 3, 2024, the shareholders at the shareholders’ meeting approved the distribution of dividends from the 2023 earnings in the amount of $88,957, with stock and cash dividends of $1 (in dollars) per share, respectively.

(16) Other equity items

Other equity items
			2024					2023
			Unrealized gains	Foreign currency				Unrealized gains	Foreign currency
		(losses) onvaluation			translation		(losses) onvaluation			translation
At January 1	($		67,284)	$	2,464		$	-	$	3,037
Currency translation
differences	(		121,488)		1,450	(		67,284)	(	573)
At December 31	($		188,772)	$	3,914	($		67,284)	$	2,464

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(17) Operating revenue

		Year ended	December	31
		2024		2023
Sales of goods	$	642,071	$	607,146
Other operating revenue		9,658		5,408
Revenue from contracts with customers	$	651,729	$	612,554

A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of goods at a point in time in the following major product lines:

roduct lines:
		Year ended December 31,
		2024		2023
	From	external customers From external customers
Biomedical products	$	651,729	$	592,140
Consumer products		-		20,414
Total	$	651,729	$	612,554

B. Contract assets and liabilities

As of December 31, 2024, December 31, 2023 and January 1, 2023 the Company did not recognize contract assets in relation to revenue from customers’ contract. In addition, the Company recognized contract liabilities as follows:

Contract liabilities – advance receipts	December31,2024 22,931 $	December31,2023 1,336 $	January1,2023 3,690 $

• (a) Significant changes in contract assets and liabilities: None.

(b) Revenue recognised that was included in the contract liability balance at the beginning of the period:

period:
Revenue recognised that was included in the contract liability balance at the beginning of the year Advance receipts	2024 1,159 $	2023
		4,057 $

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(18) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income Imputed interest income on deposits	YearendedDecember31
	2024 9,534 $ 25 428 - 9,987 $	2023 11,972 $ 236 - 1 12,209 $

(19) Other income

Other income
		Year ended	December	31
		2024		2023
Dividend income	$	17,717	$	12,712
Rental income		-		26
Grant income		642		634
Other income, others		129		143
	$	18,488	$	13,515

(20) Other gains and losses

Other gains and losses
			YearendedDecember31
			2024		2023
Gains on disposal of investment property		$	-		$	13,770
Losses on disposal of property, plant and
equipment	(		4)	(		155)
Foreign exchange gains			17,143			3,894
Losses on disposals of investments			20			-
Miscellaneous disbursements			-	(		8)
		$	17,159		$	17,501

(21) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation charges on property, plant and equipment Depreciation expenses on investment property Amortisation charges on intangible assets	2024 2023 165,832 $ 155,683 $ 26,667 26,933 - 8 357 675 YearendedDecember31
		2023
		155,683 $ 26,933 8 675

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(22) Employee benefit expense

Employee benefit expense
Wages and salaries Employee stock options (Note) Labour and health insurance fees Pension costs Other personnel expenses	YearendedDecember31
	2024 137,019 $ 6,688 10,692 5,192 6,241 165,832 $	2023
		128,099 $ 7,694 9,895 4,621 5,374
		155,683 $

Note: It was equity-settled.

• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 5% for employees’ compensation and shall not be higher than 5% for directors’ and supervisors’ remuneration.

• B. For the years ended December 31, 2024 and 2023, employees’ compensation was accrued at $21,130 and $21,455, respectively; while directors’ remuneration was accrued at $5,300 and $5,400, respectively. The aforementioned amounts were recognized in salary expenses.

• The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 5% and not higher than 5% of distributable profit for the year ended December 31, 2024, respectively.

• Employees’ compensation and directors’ and supervisors’ remuneration of 2023 as resolved by the Board of Directors were $21,455 and $5,400, respectively, and were in agreement with those amounts recognized in the 2023 financial statements.

• B. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~40~

(23) Income tax

A. Income tax expense

Components of income tax expense:

ome tax Income tax expense Components of income tax expense:
		YearendedDecember31
		2024		2023
Current tax:
Current tax on profits for the year	$	48,043	$	43,908
Prior year income tax overestimation	(	16,393)	(	13,916)
Tax on undistributed surplus earnings		-		2,105
Effects by investment tax credits		-	(	2,105)
Total current tax		31,650		29,992
Deferred tax:
Origination and reversal of temporary differences		3,728	(	2,725)
Total deferred tax Income tax expense	$	3,728 35,378	( $	2,725) 27,267

B. Reconciliation between income tax expense and accounting profit

			Year ended December 31	Year ended December 31	Year ended December 31	Year ended December 31
			2024			2023
Tax calculated based on profit before
tax and statutory tax rate		$	45,109		$	38,619
Expenses disallowed by tax regulation			6,662			2,564
Prior year unrecognised deferred tax assets			-			-
Prior year income tax overestimation	(		16,393)	(		13,916)
Tax on undistributed surplus earnings			-			2,105
Effects from investment tax credits			-	(		2,105)
Income tax expense		$	35,378		$	27,267

~41~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences were as follows:

						2024
						Recognised in
			AtJanuary1			profit or loss			At December31
－Deferred tax assets:
Temporary differences:
Allowance for valuation
loss on inventories		$	204	($		88)		$	116
Unused vacation time
bonus tax			244			26			270
Unrealised exchange loss			471.00			(357)			114
Unrealised gross profit			4,914	(		2,868)			2,046
		$	5,833	($		3,287)		$	2,546
-Deferred tax liabilities:
Pension tax differences	(		491)			-	(		491)
Unrealised exchange gain			-	(		441)	(		441)
	($		491)	($		441)	($		932)
Total		$	5,342	($		3,728)		$	1,614
						2023
						Recognised in
			AtJanuary1			profit or loss			At December31
－Deferred tax assets:
Temporary differences:
Allowance for valuation
loss on inventories		$	197		$	7		$	204
Unused vacation time bonus tax			203			41			244
Unrealised exchange loss			-			471			471
Unrealised gross profit			2,764			2,150			4,914
		$	3,164		$	2,669		$	5,833
-Deferred tax liabilities:
Pension tax differences	(		479)	(		12)	(		491)
Unrealised exchange gain	(		68)			68			-
	($		547)		$	56	($		491)
Total		$	2,617		$	2,725		$	5,342

D. The Company’s income tax returns through 2022 have been assessed and approved by the Tax Authority.

~42~

(24) Earnings per share

==> picture [468 x 435] intentionally omitted <==

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

Year ended December 31, 2024
Weighted average number of Earnings
Amount after ordinary shares outstanding per share
tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
$ 190,167 89,099 $ 2.13
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent 190,167 89,099
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation - 597
Profit attributable to ordinary shareholders
of the parent plus assumed conversion
$ 190,167 89,696 $ 2.12
of all dilutive potential ordinary shares
Year ended December 31, 2023
Weighted average number of Earnings
Amount after ordinary shares outstanding per share
tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
$ 165,828 88,934 $ 1.86
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent 165,828 88,934
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation - 519
Profit attributable to ordinary shareholders
of the parent plus assumed conversion
of all dilutive potential ordinary shares $ 165,828 89,453 $ 1.85
----- End of picture text -----

Note ： The above-mentioned weighted average circulation of shares has been retrospectively adjusted according to the stock dividend distribution ratio approved at the 2023 shareholders' meeting.

(25) Supplemental cash flow information

Investing activities with partial cash payments:

shareholders' meeting. Supplemental cash flow information Investing activities with partial cash payments:
			Year ended December31
			2024			2023
Purchase of property, plant and equipment		$	32,856		$	17,544
Add: Opening balance of payable on equipment			645			2,145
Less: Ending balance of payable on equipment	(		1,730)	(		645)
Cash paid during the period		$	31,771		$	19,044

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7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

TCI CO., LTD. (incorporated in R.O.C.) is the Company’s ultimate parent company which directly held 25.26% of equity interest in the Company.

(2) Names of related parties and relationship

Names of related parties

TCI CO., LTD. HORAY INC. Maxigen Biotech (Shanghai) Co., Ltd. NuVasive Inc. Zhongjia Investment Development Co., Ltd. Dahua Venture Capital Co., Ltd. GENE & NEXT INC. (GENE & NEXT) TCI LIVING CO., LTD. (TCI LIVING) PETFOOD BIOTECHNOLOGY CO., LTD.

Relationship with the Company

Ultimate parent Subsidiary Subsidiary Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties

(3) Significant related party transactions

• A. Operating revenue

nificant related party transactions Operating revenue
Sales of goods: NuVasive Inc. Subsidiary Ultimate parent Other related parties	2024 2023 6,564 $ 83,143 $ 17,691 42,866 221 280 3,466 4,857 27,942 $ 131,146 $ YearendedDecember31
		83,143 $ 42,866 280 4,857
		131,146 $

Goods are sold based on the terms that would be available to third parties.

• B. Purchases:

Purchases:
Purchases of goods: NuVasive Inc. Ultimate parent	Year ended December31
	2024 $ 17,247 719 17,966 $	2023
		28,513 $ 20,920
		49,433 $

Goods sold to related parties are based on normal commercial terms and conditions.

C. Receivables from related parties:

~44~

	December	31,2024	December	31,2023
Accounts receivable:
Subsidiary	$	83,610	$	73,653
NuVasive Inc.		-		11,944
Ultimate Parent		-		29
Other related parties		1,132		1,659
	$	84,742	$	87,285
Other receivables:
Subsidiary	$	41	$	40

Receivables from related parties arise from sales of goods. The receivables are due 60-90 days after the date of sale. The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

• D. Payables to related parties:

Payables to related parties:
Accounts payable: NuVasive Inc. Ultimate parent Other payables: Ultimate parent Other related parties	December 31, 2024 16,145 $ 178 16,323 $ 2,100 $ 69 2,169 $	December31,2023
		- $ 1,420
		1,420 $
		- $ 42 42 $

Accounts payable to related parties are mainly arising from purchases of goods and the payables bear no interest.

• E. Loans to related parties:

• (a) Loans to related parties:

  • (i) Outstanding balance:

r no interest. ns to related parties: Loans to related parties: (i) Outstanding balance:
Subsidiaries (ii)Interest income Subsidiaries		December31,2024		December31,2023
		- $ December31,2024		22,500 $ December31,2023
		428 $		- $

~45~

(4) Key management compensation

		Year ended	December31	December31
Short-term employee benefits	$	2024 22,418	$	2023 22,246
Post-employment benefits		285		198
Share-based payments		3,717		6,678
Total	$	26,420	$	29,122

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

Pledged asset Financial assets at amortised cost - current	December 31, 2024 December 31, 2023 Purpose 1,500 $ 1,500 $ Performance guarantee account due to government grants and customs for negotiation Book value

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

None.

(2) Commitments

None.

10. Significant disaster loss

None.

11. Significant events after the balance sheet date

None.

12. Others

(1) Capital management

The Company’s objectives when managing capital are based on the Company’s operating industrial scale, considering the future growth of the industry and product development, setting up appropriate market share, and planning corresponding capital expenditures. Then, determining the required working capital based on the financial operation plan. Finally, taking into consideration the operating income and cash flows that can be generated by the product competitiveness to decide the appropriate capital structure.

~46~

(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Notes payable Accounts payable Accounts payable - related parties Other accounts payable Other accounts payables - related parties Guarantee deposits received	December31,2024 632,036 $ 1,500 15,138 87,635 84,742 - 41 354 821,446 $ December31,2024 - $ 30,036 16,323 92,546 2,169 561 141,635 $	December31,2023
		408,909 $ 1,500 14,851 59,826 87,285 8,715 22,540 175
		603,801 $
		December31,2023 50 $ 16,584 1,420 81,200 42 19
		99,315 $

B. Financial risk management policies

Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

• i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

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• ii. The Company’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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

December 31, 2024
(Foreign currency: Foreign currency Book value
functional currency) amount (In thousands) Exchange rate (NTD)
Financial assets
Monetary items
USD:NTD USD $ 3,030 32.7850 $ 99,339
RMB:NTD RMB 21,213 4.4780 94,992
EUR:NTD EUR 398 34.1400 13,588
Financial liabilities
Monetary items
USD:NTD USD $ 884 32.7850 $ 28,982
EUR:NTD EUR 154 34.1400 5,258
December 31, 2023
(Foreign currency: Foreign currency Book value
functional currency) amount (In thousands) Exchange rate (NTD)
Financial assets
Monetary items
USD:NTD USD $ 6,472 30.7050 $ 198,723
RMB:NTD RMB 22,716 4.3270 98,292
EUR:NTD EUR 349 33.9800 11,859
Financial liabilities
Monetary items
USD:NTD USD $ 306 30.7050 $ 9,396
EUR:NTD EUR 12 33.9800 408
----- End of picture text -----

iii. The total exchange gain (loss), including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2024 and 2023, amounted to $17,143 and $3,894, respectively.

iv. Analysis of foreign currency market risk arising from significant foreign exchange variation:

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Year ended December 31, 2024

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD RMB:NTD EUR:NTD Financial liabilities Monetary items USD:NTD EUR:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD RMB:NTD EUR:NTD Financial liabilities Monetary items USD:NTD EUR:NTD			Effect on profit Effect on other or loss comprehensiveincome 993 $ - $ 950 - 136 - 290 $ - $ 53 - Sensitivity analysis Year ended December 31, 2023	Effect on profit Effect on other or loss comprehensiveincome 993 $ - $ 950 - 136 - 290 $ - $ 53 - Sensitivity analysis Year ended December 31, 2023
		Degree of variation 1% 1% 1% 1% 1%
		Degree of variation		Effect on profit Effect on other or loss comprehensive income 1,987 $ - $ 983 - 119 - 94 $ - $ 4 - Sensitivity analysis
		1% 1% 1% 1% 1%

(b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost , at fair value through profit or loss and at fair value through other comprehensive income.

• ii. The Company manages their credit risk taking into consideration the entire Company’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The

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utilization of credit limits is regularly monitored.

• iii. The Company adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• iv. The Company adopts the management of credit risk, the default occurs when the contract payments are past due over certain days.

• v. The Company classifies customers’ accounts receivable in accordance with credit risk. The Company applies the modified approach using loss rate methodology to estimate expected credit loss.

• vi. The Company used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2024 and 2023, the loss rate methodology is as follows:

At December 31,2024 Expected loss rate Total book value Loss allowance At December 31, 2023 Expected loss rate Total book value Loss allowance	Group1 0.03% 98,940 $ 21 $ 0.03% 72,730 $ 22 $	Group2 18.95% 607 $ 115 $ 7.10% 1,749 $ 124 $	Group 3 81.39% 18,066 $ 14,704 $ 33.87% 539 $ 195 $	Group4 100% 7,571 $ 7,571 $ 100% 7,598 $ 7,598 $	Total
					125,184 $ 22,411 $ 82,616 $ 7,939 $

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• vii. Movements in relation to the Company applying the modified approach to provide loss allowance for accounts receivable are as follows:

At January 1 Provision for impairment At December 31 At January 1 Provision for impairment At December 31	2024	2024
	Accountsreceivable Notesreceivable 7,939 $ - $ 14,472 - 22,411 $ - $ 2023	Notesreceivable
		- $ -
		- $
	Accountsreceivable 7,740 $ 199 7,939 $	Notesreceivable
		- $ -
		- $

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable external regulatory or legal requirements.

ii. As of December 31, 2024 and 2023, there were no undrawn financing facilities.

• iii. The table below analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

undiscounted cash flows.
December31,2024 Non-derivative financial liabilities: Notes payable Accounts payable (including related parties) Other payables(including related parties) Guarantee deposits received	Between 1year - $ 46,359 94,715 542	Between 1 and Between 2 and 2years 5 years - $ - $ - - - - - 19	Over 5 years
			- $ - - -

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December31,2023 Non-derivative financial liabilities: Notes payable Accounts payable (including related parties) Other payables (including related parties) Guarantee deposits received	Between Between 1 and Between 2 and 1year 2years 5 years 50 $ - $ - $ 18,004 - - 81,242 - - - - 19	Over 5 years - $ - - -

(3) Fair value

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability.

• B. Fair value information of investment property at amortized cost is provided in Note 6(16).

• C. The Company’s fair value information of financial assets and financial liabilities not measured at fair value is provided in Note 12(2)A.

• D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

• (a) The related information of natures of the assets and liabilities is as follows:

December 31, 2024 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities December31,2023 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities	Level 1 311,312 $ Level 1 432,800 $	Level 2 - $ Level 2 - $	Level3 - $ Level3 - $	Total
				311,312 $
				Total
				432,800 $

• (b)The methods and assumptions the Group used to measure fair value are as follows:

• i.The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

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Convertible (exchangeable) bond

Market quoted price

Closing

• E. For the years ended December 31, 2024 and 2023, there was no transfer between Level 1 and Level 2.

• F. For the years ended December 31, 2024 and 2023, there was no transfer into or out from Level 3.

13. Supplementary disclosures

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 3.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： None.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 4.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 4.

(4) Major shareholders information

Major shareholders information: Please refer to table 5.

14. Segment information

None.

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Maxigen Biotech Inc. and subsidiaries

Loans to others Year ended December 31, 2024

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Table 1
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Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during year ended 2024	Balance at 2024	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for uncollectible accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted	Footnote
													Item	Value
0	Maxigen Biotech Inc.	Maxigen Biotech (Shanghai) Co., Ltd.	Other receivables - related parties - other	Y	44,150 $	- $	- $	2.00%	2	- $	For operating capital	- $	None	- $	687,564 $	687,564 $	Note

Note : The Company held 100% voting shares directly and indirectly in foreign company, engage in loans granted, or the Company held 100% voting shares directly and indirectly in foreign company loans to the Company, limit on total loans shall not exceed 50% of the Company's net worth, and limit on loans to a single party shall not exceed 50% of the Company's net worth.

Table 1, Page 1

Maxigen Biotech Inc. and subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

Year ended December 31, 2024

			Year ended December 31, 2024
Table 2 Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2024		Fairvalue Footnote Expressed in thousands of NTD (Except as otherwise indicated)
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
Maxigen Biotech Inc.	TCI CO., LTD.	The company is the parent company of Maxigen Biotech Inc.	Financial assets at fair value through other comprehensive income - non-current	2,531	311,312 $	2.14	311,312 $	None

Table 2, Page 1

Maxigen Biotech Inc. and subsidiaries

Significant inter-company transactions during the reporting periods

Year ended December 31, 2024

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 0	Maxigen Biotech Inc. Maxigen Biotech Inc.	Maxigen Biotech (Shanghai) Co., Ltd. Maxigen Biotech (Shanghai) Co., Ltd.	1 1	Accounts receivable Sales of goods	83,610 $ 17,691	Collection period was longer than non-related parties. The price and terms on sales are available to third parties.	5.28% 2.60%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1)Parent company is ‘0’.

(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to:

(1)Parent company to subsidiary.

(2)Subsidiary to parent company.

• (3)Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Table 3, Page 1

Maxigen Biotech Inc. and subsidiaries

Information on investments in Mainland China Year ended December 31, 2024

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

Amount remitted from Taiwan Accumulated Accumulated to Mainland China/ Accumulated amount amount of Amount remitted back amount Ownership of investment remittance from to Taiwan for the year ended of remittance held by Investment income Book value of income Taiwan to December 31, 2024 from Taiwan to Net income of the (loss) recognised investments in remitted back to Mainland China Mainland China investee as of Company by the Company Mainland China Taiwan as of as of January 1, Remitted to Remitted back as of December December 31, (direct or for the year ended as of December December 31, Investee in Mainland China Main business activities Paid-in capital Investment method 2024 Mainland China to Taiwan 31, 2024 2024 indirect)(%) December 31, 2024 31, 2024 2024 Footnote Maxigen Biotech (Shanghai) Co., Trading of cosmetics and beauty care products USD 1,800 Note 1 $ 58,193 $ - $ - $ 58,193 ($ 32,891) 100 ($ 32,891) ($ 81,392) $ - Note 2 Ltd.

Note 1: Reinvestments in a company in Mainland China through parent company in Taiwan . Note 2: The amount recognised was based on the financial statements that were audited by R.O.C. parent company's CPA firm.

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2024	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Maxigen Biotech Inc.	$ 58,193	$ 59,013	825,076 $

Note 3：The numbers in this table are expressed in New Taiwan dollars, except for: assets and liabilities presents at RMB$1：NTD$4.478, USD$1：NTD$32.785. Income presents at RMB$1：NTD$4.4557. USD$1：NTD$32.1251. Note 4：The amount is the higher of limits on accumulated investment amounts or 60% of consolidated net assets was based on Investment Commission, MOEA Regulation No. 09704604680 announced on August 29, 2008.

Table 4, Page 1

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Maxigen Biotech Inc. and subsidiaries Major shareholders information December 31, 2024

Name of major shareholders	Name of shares held(unit: shares)	Shares Ownership (%)
TCI CO., LTD. FORMOSA BIOMEDICAL TECHNOLOGY CORPORATION NuVasive Inc.	22,521,762 8,702,040 4,758,600	25.26% 9.76% 5.34%

Table 5, Page 1