MERRY — Audit Report / Information 2024

Dec 18, 2024

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED 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 Merry Electronics Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Merry Electronics Co., Ltd. and its subsidiaries (the “Group”) as at December 31, 2024 and 2023, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and 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 Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other auditors, we believe that the

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audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2024 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated 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 Group’s 2024 consolidated financial statements are stated as follows:

Cut-off on sales revenue from distribution warehouse

Description

Refer to Note 4(31) for accounting policy on revenue recognition.

The Group recognizes revenue upon delivery or pick-up of goods (the transfer of control of ownership) by customers at warehouses. Warehouse sales revenue constitutes 30% of total operating revenue for the year ended December 31, 2024. The Group’s revenue recognition is based on inventory movement records of warehouses based on the reports provided by warehouse custodians or bill of lading reports recorded on network platform. As the warehouses are located in various locations and there are numerous custodians, the frequency and contents of statements provided by custodians vary, the process of revenue recognition contains numerous manual procedures, which would potentially result in inaccurate timing of revenue recognition and the discrepancy between physical inventory quantities in the warehouses and quantities per accounting records. Thus, we determine the cut-off on sales revenue from distribution warehouses a key audit matter.

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How our audit addressed the matter

We performed the following audit procedures in relation to the above key audit matter:

• A. Understood, evaluated and verified the Group’s procedures for warehouse sales revenue and internal control, including:

• (a) Interviewing the staff of the sales revenue process from distribution warehouse, and confirming the consistency by comparing interview results with the process of warehouse sales revenue recognition obtained.

• (b) Verifying the internal control of warehouse distribution (checked the terms of transaction / timing of ownership transfer and dates of supporting documents and verifying transactions recognized in the appropriate period by reconciling the quantities of supporting documents with invoices) to confirm the accuracy of the timing of revenue recognition.

• B. Performed cut-off procedures on sales revenue from distribution warehouses recognized during a specific period before and after the period-end, including verifying delivery schedule of distribution warehouses and ensuring the movements of inventories correctly contained in the statements.

• C. Performed physical inventory count observation or confirmed the inventory quantities with warehouse custodian and agreed the results to accounting records.

Valuation of inventories

Description

Refer to Note 4(13) for accounting policies on inventory valuation, Note 5(1) for significant accounting estimates and assumptions related to inventory valuation, and Note 6(6) for details of allowance for inventory valuation losses. As of December 31, 2024, the balances of inventories and allowance for inventory valuation losses were NT$5,072,549 thousand and NT$213,564 thousand, respectively.

The Group has a high risk of incurring inventory valuation loss or obsolescence due to fluctuations in market demand and rapidly evolving technology. Further, the measurement of net realizable value of inventories involves judgment resulting in a high degree of

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estimation uncertainty. Thus, we determine the allowance for inventory valuation loss a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in relation to the above key audit matter:

• A. Understood and assessed the reasonableness of the subsequent inventory valuation and the provision for loss on obsolete and slow-moving inventory.

• B. Assessed the annual plan of the physical inventory count and attended the annual inventory count; evaluated the effectiveness of the procedures used to identify and control obsolete inventories.

• C. Obtained inventory aging report and verified dates of movements with supporting documents and ensured the accuracy of inventory aging classification and its consistency with the policies.

• D. Obtained the net realizable value of each kind of inventory and checked whether the applied calculation logic was in agreement with all inventories, tested the supporting documents related to the estimation basis for net realizable value of inventories including verifying the supporting documents of sales and purchase prices, as well as recalculating and assessing the reasonableness of allowance for inventory valuation losses.

Other matter - audits of other independent auditors

We did not audit the financial statements of certain investments accounted for under the equity method that are included in the consolidated financial statements and disclosures in Note 13. Those financial statements were audited by other independent auditors, and our opinion expressed herein is based solely on reports of the other independent auditors. The balance of these investments accounted for under equity method amounted to NT$559,364 thousand and NT$480,811 thousand, constituting 1.43% and 1.47% of total assets as of December 31, 2024 and 2023, respectively, and the comprehensive income or loss of associates accounted for using equity method was NT$94,598 thousand and (NT$5,001) thousand, constituting 3.27% and (0. 40%) of total comprehensive income

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for the years then ended.

Other matter - parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Merry Electronics Co., Ltd. as at and for the years ended December 31, 2024 and 2023.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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Auditor’s responsibilities for the audit of the consolidated financial statements

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

• A. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

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

• D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty

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exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• E. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We 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 consolidated 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.

Liu, Mei Lan[Hsu, Chien-Yeh ]

For and on behalf of PricewaterhouseCoopers, Taiwan February 26, 2025

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The accompanying consolidated 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 consolidated 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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MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(4)(5) 7(2) 6(2) 7(2) 6(6) 6(2) 6(3) 6(7) 6(8) 6(9) 6(10) 6(27)	December 31, 2024 AMOUNT % $ 8,586,894 22 656,476 2 105,910 - 169,820 1 11,234,447 29 475,022 1 75,718 - 307,185 1 4,858,985 12 435,201 1 26,905,658 69 43,075 - 232,210 1 469,589 1 5,914,755 15 4,365,774 11 189,394 1 778,132 2 154,583 - 66,751 - 12,214,263 31 $ 39,119,921 100	December 31, 2023	December 31, 2023
		AMOUNT $ 8,586,894 656,476 105,910 169,820 11,234,447 475,022 75,718 307,185 4,858,985 435,201 26,905,658 43,075 232,210 469,589 5,914,755 4,365,774 189,394 778,132 154,583 66,751 12,214,263 $ 39,119,921	AMOUNT $ 5,526,722 556,580 105,206 513,218 9,224,475 155,813 169,190 173,586 3,821,320 470,436 20,716,546 45,828 369,523 422,748 5,602,510 4,021,917 247,172 911,221 188,976 84,752 11,894,647 $ 32,611,193	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Current financial assets at fair value through other comprehensive income 1136 Current financial assets at amortised cost 1170 Accounts receivable, net 1180 Accounts receivable due from related parties, net 1200 Other receivables 1210 Other receivables - related parties 130X Inventories 1470 Other current assets 11XX Current Assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets				17 2 - 2 28 - 1 1 12 1
				64
				- 1 1 17 12 1 3 1 -
				36
				100

(Continued)

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MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES CONSOLIDATED 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(12) $ 366,659 1 $ 1,133,099 4 6(2) - - 1,726 - 6(22) 318,054 1 301,635 1 7,087,414 18 5,516,301 17 7(2) 3,335,965 8 3,023,117 9 6(2)(13) 1,606,089 4 1,385,934 4 7(2) 112,380 - 65,895 - 323,977 1 466,311 1 6(14)(15) 282,505 1 3,428,440 11 667,888 2 529,581 2 14,100,931 36 15,852,039 49 6(22) 462,049 1 590,487 2 6(14) 2,856,278 7 - - 6(15) 242,897 1 1,003,177 3 6(27) 2,153,548 6 1,540,737 5 6(16) 23,888 - 36,054 - 86,963 - 106,376 - 5,825,623 15 3,276,831 10 19,926,554 51 19,128,870 59 6(18) 2,534,914 6 2,193,163 7 6(19) 8,422,431 21 4,872,974 14 6(20) 2,549,941 7 2,412,390 8 973,012 3 768,186 3 4,306,799 11 3,583,885 11 6(21) ( 768,252) ( 2) ( 1,209,351) ( 4 ) 18,018,845 46 12,621,247 39 4(3) 1,174,522 3 861,076 2 19,193,367 49 13,482,323 41 9 11 $ 39,119,921 100 $ 32,611,193 100

Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Current contract liabilities 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2320 Current portion of long-term borrowings 2399 Other current liabilities, others 21XX Current Liabilities Non-current liabilities 2527 Non-current contract liabilities 2530 Corporate bonds payable 2540 Long-term borrowings 2570 Deferred income tax liabilities 2640 Accrued pension liabilities 2690 Other non-current liabilities, others 25XX Non-current liabilities 2XXX Total Liabilities Equity attributable to owners of parent Share capital 3110 Share capital - common stock Capital reserve 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

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

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MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES CONSOLIDATED 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(22) and 7(2) $ 43,855,354 100 $ 36,690,383 100 6(6) and 7(2) ( 38,006,671) ( 87) ( 31,948,416) ( 87) 5,848,683 13 4,741,967 13 6(25)(26) ( 494,968) ( 1) ( 456,917) ( 1) ( 1,320,189) ( 3) ( 1,186,242) ( 3) ( 2,142,960) ( 5) ( 1,964,625) ( 6) 12(2) ( 28,594) - 3,740 - ( 3,986,711) ( 9) ( 3,604,044) ( 10) 1,861,972 4 1,137,923 3 239,466 1 136,805 - 6(23) 234,874 - 467,008 1 6(24) 294,901 1 ( 40,545) - ( 97,595) - ( 100,497) - 6(7) 616,994 1 284,801 1 1,288,640 3 747,572 2 3,150,612 7 1,885,495 5 6(27) ( 710,455) ( 1) ( 467,598) ( 1) $ 2,440,157 6 $ 1,417,897 4

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit impairment (loss) gain 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit(loss) of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES CONSOLIDATED 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(16) $ 6,637 - ($ 6,348) - 6(3)(21) ( 6,346) - 8,152 - 6(7)(21) ( 2,597) - ( 22) - 6(27) ( 5,565) - 485 - ( 7,871) - 2,267 - 6(21) 382,651 1 ( 118,368) ( 1) 6(3)(21) - - 2,687 - 6(7)(21) 191,851 - ( 94,837) - 6(27) ( 111,935) - 38,261 - 462,567 1 ( 172,257) ( 1) $ 454,696 1 ($ 169,990) ( 1) $ 2,894,853 7 $ 1,247,907 3 $ 2,143,258 5 $ 1,320,318 4 296,899 1 97,579 - $ 2,440,157 6 $ 1,417,897 4 $ 2,581,407 6 $ 1,170,680 3 313,446 1 77,227 - $ 2,894,853 7 $ 1,247,907 3 6(28) $ 9.26 $ 6.16 6(28) $ 8.37 $ 5.49

Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Other comprehensive income, before tax, actuarial gains (losses) on defined benefit plans 8316 Unrealized gains(losses) from investments in equity instruments measured at fair value through other comprehensive income, net 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8367 Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income, net 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Income tax relating to the components of other comprehensive income 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Total other comprehensive income (loss) for the year 8500 Total comprehensive income for the year Profit, attributable to: 8610 Owners of parent 8620 Non-controlling interest Total Profit Comprehensive income, attributable to: 8710 Owners of the parent 8720 Non-controlling interest Total Comprehensive Income Basic earnings per share 9750 Total basic earnings per share Diluted earnings per share 9850 Total diluted earnings per share

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

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MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Year 2023 Balance at January 1, 2023 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriation and distribution of 2022 retained earnings Legal reserve Special reserve Cash dividends Convertible bonds converted into common shares Share-based payments Equity instruments at fair value through other comprehensive income reclassified to investments accounted for using equity method Recognition of change in equity of associates in proportion to the Group's ownership Balance at December 31, 2023 Year 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income for the year Total comprehensive income Appropriation and distribution of 2023 retained earnings Legal reserve Special reserve Cash dividends Issuance of common stock Proceeds from issuance of convertible bonds Convertible bonds converted into common shares Share-based payments Equity instruments at fair value through other comprehensive income reclassified to investments accounted for using equity method Recognition of change in equity of associates in proportion to the Group’s ownership Disposal of investments accounted for using equity Changes in ownership of subsidiaries Balance at December 31, 2024	Notes						Equitya	Equitya	ttributable to owners	of theparent	of theparent						Non-controlling interest		Total equity
			Share capital - common stock	a	Capital surplus, dditionalpaid-in capital				Retained earnings				Financial statements translation differences of foreign operations		Total
							Legal reserve		Special reserve	Unappropriated retained earnings
	6(20) 6(17) 6(20) 6(14) 6(14) 6(17) 6(7) 6(7) 6(7)		$ 2,177,827 - - - - - - 10 15,326 - - $ 2,193,163 $ 2,193,163 - - - - - - 50,000 - 285,593 6,158 - - - - $ 2,534,914		$ 4,720,866 - - - - - - 90 125,063 - 26,955 $ 4,872,974 $ 4,872,974 - - - - - - 445,241 280,733 2,707,409 104,701 - 13,679 ( 1,872 ) ( 434 ) $ 8,422,431		$ 2,265,932 - - - 146,458 - - - - - - $ 2,412,390 $ 2,412,390 - - - 137,551 - - - - - - - - - - $ 2,549,941		$ 748,930 - - - - 19,256 - - - - - $ 768,186 $ 768,186 - - - - 204,826 - - - - - - - - - $ 973,012		$ 3,355,328 1,320,318 ( 5,066 ) 1,315,252 ( 146,458 ) ( 19,256 ) ( 981,235 ) - - 60,254 - $ 3,583,885 $ 3,583,885 2,143,258 5,418 2,148,676 ( 137,551 ) ( 204,826 ) ( 1,030,914 ) - - - - ( 52,471 ) - - - $ 4,306,799		($ 996,446 ) - ( 144,572 ) ( 144,572 ) - - - - ( 8,079 ) ( 60,254 ) - ($ 1,209,351 ) ($ 1,209,351 ) - 432,731 432,731 - - - - - - ( 68,977 ) 52,471 2,816 22,058 - ($ 768,252 )		$ 12,272,437 1,320,318 ( 149,638 ) 1,170,680 - - ( 981,235 ) 100 132,310 - 26,955 $ 12,621,247 $ 12,621,247 2,143,258 438,149 2,581,407 - - ( 1,030,914 ) 495,241 280,733 2,993,002 41,882 - 16,495 20,186 ( 434 ) $ 18,018,845		$ 783,849 97,579 ( 20,352 ) 77,227 - - - - - - - $ 861,076 $ 861,076 296,899 16,547 313,446 - - - - - - - - - - - $ 1,174,522		$ 13,056,286 1,417,897 ( 169,990 ) 1,247,907 - - ( 981,235 ) 100 132,310 - 26,955 $ 13,482,323 $ 13,482,323 2,440,157 454,696 2,894,853 - - ( 1,030,914 ) 495,241 280,733 2,993,002 41,882 - 16,495 20,186 ( 434 ) $ 19,193,367

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

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MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES CONSOLIDATED 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) Depreciation expense-property, plant and equipment Depreciation expense - right-of-use assets Amortization Expected credit impairment (gain) loss Impairment loss - non-financial assets Finance costs Interest expense - lease liability Gain on financial assets or liabilities at fair value through profit or loss Share of profit of associates and joint ventures accounted for using equity method Compensation cost of share-based payment Loss on disposal of property, plant and equipment Loss (gain) on disposal of investments Interest income Dividend income Deferred income of government's compensation Unrealized exchange (gain) loss Changes in operating assets and liabilities Changes in operating assets Increase in financial assets/liabilities mandatorily measured at fair value through profit or loss Accounts receivable (including related parties) Other receivables (including related parties) Inventories Other current assets Changes in operating liabilities Accounts payable Accounts payable - related parties Other payables Other payables - related parties Contract liabilities Other current liabilities Net defined benefit liability - non-current Cash inflow generated from operations Interest received Dividend income Interest paid Income taxes paid Net cash flows from operating activities

YearendedDecember 31 Notes 2024 2023 $ 3,150,612 $ 1,885,495 6(8)(25) 600,039 560,412 6(9)(25) 122,494 120,710 6(10)(25) 93,824 142,490 12(2) 28,594 ( 3,740 ) 6(11)(24) 64,973 65,510 91,483 93,232 6(9) 6,112 7,265 ( 6,225 ) ( 13,435 ) 6(7) ( 616,994 ) ( 284,801 ) 6(17) 62,123 132,310 6(24) 12,446 ( 19,291 ) 6(24) 15,469 ( 16,500 ) ( 239,466 ) ( 136,805 ) 6(23) ( 4,004 ) ( 11,763 ) ( 155 ) ( 699 ) ( 258,826 ) 173,473 3,837 ( 8,878 ) ( 1,706,513 ) ( 811,983 ) ( 27,756 ) 1,254 ( 930,605 ) 1,059,389 62,423 ( 183,162 ) 1,263,351 589,619 154,937 ( 1,163,003 ) 203,705 270,015 46,471 ( 16,512 ) ( 112,462 ) ( 128,317 ) 153,286 181,838 ( 5,529 ) ( 5,407 ) 2,227,644 2,478,716 226,033 131,529 4,004 11,763 ( 92,730 ) ( 98,892 ) ( 336,037 ) ( 299,776 ) 2,028,914 2,223,340

(Continued)

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MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES

CONSOLIDATED 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 mandatorily measured at fair value through profit or loss Increase in financial assets mandatorily measured at fair value through profit or loss Proceeds from disposal of financial assets at fair value through other comprehensive income Increase in financial assets at amortised cost - current Decrease in financial assets at amortised cost - current Increase in financial assets at amortised cost - non - current Decrease in financial assets at amortised cost - non - current Acquisition of investments accounted for using equity method Earnings repatriated by investments accounted for using equity method Proceeds from liquidated amount of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in other non-current financial assets Decrease in guarantee deposits paid Net cash flows from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Increase in short-term borrowings Repayment of principal portion of lease liabilities Increase in long-term borrowings Decrease in long-term borrowings Proceeds from issuing corporate bonds Redemption of corporate bonds Increase (decrease) in other non-current liabilities Cash dividends paid Proceeds from issuance of shares Net cash flows from (used in) financing activities Effect of change in foreign currency exchange Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2024 2023 $ 423,502 $ - ( 518,485 ) ( 172,480 ) - 161,125 ( 4,431 ) ( 362,886 ) 373,663 30,450 ( 362,564 ) ( 318,630 ) 330,476 - 6(7) ( 26,200 ) ( 409,928 ) 6(7) 238,169 213,003 6(7) 439,576 - 6(29) ( 803,835 ) ( 530,445 ) 15,094 41,775 ( 20,644 ) ( 12,630 ) 12,972 2,880 2,930 4,412 100,223 ( 1,353,354 ) 6(30) ( 1,132,210 ) ( 2,125,772 ) 6(30) 353,762 1,139,459 ( 126,845 ) ( 134,976 ) 6(30) - 539,459 6(30) ( 931,774 ) ( 440,516 ) 6(30) 3,114,036 - 6(30) ( 4,000 ) - 6(30) 18,075 ( 13,583 ) 6(30) ( 1,030,914 ) ( 981,235 ) 6(18) 475,000 - 735,130 ( 2,017,164 ) 195,905 ( 249,368 ) 3,060,172 ( 1,396,546 ) 5,526,722 6,923,268 $ 8,586,894 $ 5,526,722

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

~16~

MERRY ELECTRONICS CO., LTD AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

1. HISTORY AND ORGANISATION

Merry Electronics Co., Ltd. (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.) on December 24, 1975. The Company is primarily engaged in manufacturing, processing, repairing, sales of electric appliance and audiovisual electric products, telecommunication equipment and apparatus, computers and computing peripheral equipment, restrained telecom radio frequency equipment, medical appliances, as well as electronic parts and components; planning, design as well as output of service items’ equipment; production as well as marketing management consultant of service items’ relevant business. The Company’ shares were listed on the Taipei Exchange since August 1998 and transferred to the Taiwan Stock Exchange starting September 2000 with approval. The Company merged with its subsidiaries, Huges Hi-Tech Inc. and Biotest Medical Corporation, on September 1, 2005 and October 29, 2021, respectively. The Company was the surviving company while Huges Hi-Tech Inc. and Biotest Medical Corporation were the dissolved companies.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported 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:

Standards (“IFRS®”) Accounting Standards that came into effect as Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC 2024 are as follows:	endorsed by the Financial and became effective from
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.

~17~

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but

not yet adopted by the Group

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

not yet adopted by the Group New standards, interpretations and amendments endorsed by FSC 2025 are as follows:	and will become effective from
	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 Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRS 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 IFRS Accounting Standards as endorsed by the FSC are as follows:

Accounting Standards as endorsed by the FSC are as follows:
	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification	January 1, 2026
and measurement of financial instruments’
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-	January 1, 2026
dependent electricity’
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17,‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17,‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Annual Improvements to IFRS Accounting Standards—Volume 11	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.

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces

a defined structure of the statement of profit or loss, disclosure requirements related to managementdefined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes. The quantitative impact will be disclosed when the assessment is complete.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated 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 consolidated financial statements of the Group 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 consolidated 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 and liabilities at fair value through other comprehensive income measured at fair value.

• (c) 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 judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group 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. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

~19~

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions 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 Group loses control of a subsidiary, the Group 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 the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• B. Subsidiaries included in the consolidated financial statements:

Name of Name of Main business investor subsidiary activities MEHO MERRY ELECTRONICS (HK) CO., LTD. ("MEST") Sales of the same products as the Company. MEHO MERRY ELECTRONICS (THAILAND) CO., LTD. ("METC") The same main business as the Company. MEHO MERRY ELECTRONICS (U.S.A.) CO., LTD. ("MECA") Providing technology and marketing after-sales services. MEHO DANNY DYNAMICS LIMITED ("DDBV") Equity investments. MEHO MERRY ELECTRONICS (SINGAPORE) PTE. LTD. ("MESG") The same main business as the Company.	December31,2024 December31,2023 100.00% 100.00% 99.99% 99.99% 99.90% 99.90% 100.00% 100.00% 100.00% 100.00% Ownership(%)	December31,2024 December31,2023 100.00% 100.00% 99.99% 99.99% 99.90% 99.90% 100.00% 100.00% 100.00% 100.00% Ownership(%)
	100.00% 99.99% 99.90% 100.00% 100.00%	100.00% 99.99% 99.90% 100.00% 100.00%

~20~

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

Name of Name of Main business Ownership(%)
investor subsidiary activities December 31, 2024 December 31, 2023
----- End of picture text -----

investor	subsidiary	activities D	ecember31,2024	December31,2023
MEHO	MERRY	Equity investments.	100.00%	100.00%
	HEALTHCARE
	CO., LTD.
	("MHKY")
MEHO	ASIAN ELITE	Manufacturing and	100.00%	100.00%
	INTERNATIONAL	sales of speaker and
	LTD.	amplifier.
	("MSCS")
MEHO	Indigo Enterprise Inc.	Equity investments.	100.00%	100.00%
	("INSA")
MEHO	MERRY &	Manufacturing of	51.00%	51.00%
	LUXSHARE	sales of speaker,
	(VIETNAM) CO.,	microphone and
	LTD. (MEVN)	headphone products.
MEHO	MUtek Electronics	Manufacturing and	51.00%	51.00%
	Co., Ltd. (MUTT)	application service
		of electrical
		appliances and
		audiovisual
		electronic products.
MEHO	Merry Capital Inc.	Equity investments.	100.00%	100.00%
	(MCTT)
MEST	MERRY	The same main	100.00%	100.00%
	ELECTRONICS	business as the
	(SHENZHEN) CO.,	Company.
	LTD. ("MECL")
DDBV	MERRYTECH (HK)	Equity investments.	100.00%	100.00%
	CO.LIMITED
	("MTHK")
INSA	Merry Electronics	Develop-to-order	100.00%	100.00%
	North America Inc.	and appearance
	(MENA)	design of speaker
		and amplifier.
MENA	Seas Fabrikker	Manufacturing and	100.00%	100.00%
	("SENM")	sales of speaker
		monomer.
MHKY	FULICARE	Equity investments.	96.01%	96.01%
	CO., LTD.
	("FUSA")

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==> picture [466 x 33] intentionally omitted <==

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

Name of Name of Main business Ownership(%)
investor subsidiary activities December 31, 2024 December 31, 2023
----- End of picture text -----

investor	subsidiary	activities D	ecember31,2024	December31,2023
FUSA	Fulicare Medical	Sales of medical	100.00%	100.00%
	Instruments (Suzhou)	device.
	Co.,Ltd ("FUSZ")
FUSA	Fulicare Medical	Manufacturing of	100.00%	100.00%
	Instruments (Xiamen)	medical device.
	Co.,Ltd
	("FUXM")
FUSA	Xiamen Etimbre	Exclusive stores for	100.00%	100.00%
	Hearing Technology	selling hearing
	Co. LTD	related products
	("ETCX")
FUSZ	Austar Hearing	Research and	99.50%	99.50%
and	Science And	development,
FUSA	Technology（Xiamen)	manufacturing as
	Co. , Ltd	well as sales of
	("ASCX")	hearing aid, hearing
		device and acoustics
		equipment.
MESG	Merry Electronics	Research and	100.00%	100.00%
	Sdn Bhd	development of
	("MEMP")	microphone, receiver
		and speaker.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group:

• As of December 31, 2024 and 2023, the non-controlling interest amounted to $1,174,522 thousand and $861,076 thousand, respectively. The information of non-controlling interest and respective subsidiaries is as follows:

Name of subsidiary	Principal place of business Vietnam	Amount Ownership (%) Amount Ownership (%) $ 1,109,526 49% $ 808,567 49% December31,2023 December31,2024 Non-controllinginterest	Amount Ownership (%) Amount Ownership (%) $ 1,109,526 49% $ 808,567 49% December31,2023 December31,2024 Non-controllinginterest	Amount Ownership (%) Amount Ownership (%) $ 1,109,526 49% $ 808,567 49% December31,2023 December31,2024 Non-controllinginterest
		Amount Ownership (%) $ 1,109,526 49% December31,2024
		Amount $ 1,109,526	Amount $ 808,567
MEVN				49%

~22~

Summarised financial information of the subsidiaries:

Balance sheets

Balance sheets
			MEVN
		December	31, 2024		December	31,2023
Current assets		$	3,910,754		$	1,755,805
Non-current assets			1,013,238			984,139
Current liabilities	(		2,587,704)	(		961,104)
Non-current liabilities	(		23,148)	(		108,603)
Total net assets		$	2,313,140		$	1,670,237

Statements of comprehensive income

Statements of comprehensive income Non-current assets Current liabilities Non-current liabilities Total net assets	( (	$	1,013,238 2,587,704) ( 23,148) ( 2,313,140 $	1,013,238 2,587,704) ( 23,148) ( 2,313,140 $	1,013,238 2,587,704) ( 23,148) ( 2,313,140 $	984,139 961,104) 108,603) 1,670,237
			MEVN
			Years ended	December 31,
			2024			2023
Revenue		$	6,362,284		$	2,814,771
Profit before income tax			693,629			229,982
Income tax expense	(		83,394)	(		418)
Profit for the period from continuing operations			610,235			229,564
Profit for the period			610,235			229,564
Total comprehensive income for the period		$	610,235		$	229,564
Comprehensive income attributable to
non-controlling interest		$	299,015		$	112,486
Statements of cash flows
			MEVN
			Years ended	December31,
			2024			2023
Net cash provided by operating activities		$	116,599		$	197,144
Net cash used in investing activities	(		102,644)	(		29,497)
Net cash provided by financing activities	(		100,135)	(		101,387)
Effect of exchange rates on cash and cash
equivalents			10,806	(		1,235)
(Decrease) increase in cash and cash equivalents	(		75,374)			65,025
Cash and cash equivalents, beginning of period			142,185			77,160
Cash and cash equivalents, end of period		$	66,811		$	142,185

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency.

~23~

• 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 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 other foreign exchange gains and losses based on the nature of those transactions 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 group 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 rates of that period; and

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

• (b) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

• (c) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

~24~

(5) 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 settled 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 to defer the repayment for at least twelve months beyond the reporting period.

• (6) Cash equivalents

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

(7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.

~25~

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

• The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (9) Financial assets at amortized cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows. (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

• D. The Group’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.

• (10) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group 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.

• (11) Impairment of financial assets

• For financial assets at amortized cost at each reporting date, the Group 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 Group recognizes the impairment provision for lifetime ECLs.

• (12) Derecognition of financial assets

• The Group 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 Group has transferred substantially all risks and rewards of ownership of the financial asset.

~26~

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

• (13) 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 costs of completion and the estimated costs necessary to make the sale.

• (14) Joint operation and investment accounted for using equity method joint ventures Investment of joint arrangements are classified as joint operations or joint ventures based on its contractual rights and obligations.

• A. Joint operation

For the interest in a joint operation, the Group recognizes direct interest in (and other shares of) the joint operation’s assets, liabilities, revenue and expense which are included in the financial statements.

• B. Investment accounted for using equity method – joint ventures

  • The Group accounts for its interest in a joint venture using equity method. Unrealized profits and losses arising from the transactions between the Group and its joint venture are eliminated to the extent of the Group’s interest in the joint venture. However, when the transaction provides evidence of a reduction in the net realizable value of current assets or an impairment loss, all such losses shall be recognized immediately. When the Group’s share of losses in a joint venture equals or exceeds its interest in the joint venture together with any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.

• (15) 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 Group 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.

• 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.

~27~

• 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, structures and equipment 5 ~ 60 years Machinery and equipment 2 ~ 12 years Transportation equipment 5 ~ 12 years Office equipment 3 ~ 10 years Others 1 ~ 10 years

• (16) 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 Group. 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 fixed payments, less any lease incentives receivable. The Group 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; and

  • (c) Any initial direct costs incurred by the lessee.

  • 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 recognized as an adjustment to the right-of-use asset.

• 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.

~28~

(17) Intangible assets

• A. Computer software

  • Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 1 to 10 years.

• B. Goodwill

  • Goodwill arises in a business combination accounted for by applying the acquisition method.

• C. Intangible assets, mainly patent rights, trademark rights and business rights, are amortized on a straight-line basis over their estimated useful lives of 3 ~ 10 years.

• (18) Impairment of non-financial assets

• A. The Group 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. Except for goodwill, 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.

• B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

• C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

• (19) Borrowings

• Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

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(20) 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.

• (21) Financial liabilities at fair value through profit or loss

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term or financial liabilities at fair value through profit or loss. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss at initial recognition:

  • (a) Hybrid (combined) contracts; or

  • (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or

  • (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management policy.

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

• (22) Convertible bonds payable

• A. Convertible bonds issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Group’s common shares by exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Group classifies the bonds payable upon issuance as a financial asset, a financial liability or an equity instrument in accordance with the contract terms. They are accounted for as follows:

  • (a) The embedded call options and put options are recognized initially at net fair value as ‘financial assets or financial liabilities at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognized as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.

  • (b) The host contracts of bonds are initially recognized at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortized in profit or loss as an adjustment to ‘ finance costs ’ over the period of circulation using the effective interest method.

  • (c) The embedded conversion options which meet the definition of an equity instrument are initially recognized in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable as stated above. Conversion options are not subsequently remeasured.

  • (d) Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.

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• (e) When bondholders exercise conversion options, the liability component of the bonds (including bonds payable and ‘financial assets or financial liabilities at fair value through profit or loss’) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total book value of the abovementioned liability component and ‘capital surplus—share options’.

(23) Derecognition of financial liabilities

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

• (24) Non-hedging and embedded derivatives

• Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognized in profit or loss.

• (25) Provisions

Provisions (including warranties) are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

• (26) 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 plans

For 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 plans

• 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 with the Group 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

~31~

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 Group uses interest rates of government bonds (at the balance sheet date) instead.

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

• C. 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 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. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (27) Employee share based payment

• A. 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 non-vesting 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.

• B. Restricted stocks:

  • (a) Restricted stocks issued to employees 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.

  • (b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognizes the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

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  - (c) For restricted stocks where employees have to pay to acquire those stocks, if employees resign during the vesting period, they must return the stocks to the Group and the Group must refund their payments on the stocks, the Group recognizes the payments from the employees who are expected to resign during the vesting period as liabilities at the grant date, and recognizes the payments from the employees who are expected to be eventually vested with the stocks in ’capital surplus – others’.

• (28) 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 and associates, except where the timing of the reversal of the temporary difference is controlled by the Group 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.

• E. 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.

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(29) 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.

(30) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved 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.

(31) Revenue recognition

Sales of goods

• A. The Group manufactures and sells radio apparatus, communication devices, consumer electronics as well as electronic parts and components. Sales are recognized when control of the products has transferred, being when the products are delivered to the wholesaler, the wholesaler has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’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 wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• B. The furniture is often sold with volume discounts based on aggregate sales over a 12-month period. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated sales discounts. Accumulated experience is used to estimate and provide for the sales discounts and allowances, 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. A refund liability is recognized for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The sales usually are made with a credit term of 30~120 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• C. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

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(32) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any 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 the Group recognizes expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognized as non-current liabilities and are amortized to profit or loss over the estimated useful lives of the related assets using the straight-line method.

(33) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’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; and the related information is addressed below:

(1) Critical accounting estimates and assumptions

• A. Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date and writes down the cost of inventories to the net realizable value. Such evaluation of inventories might have material changes.

As of December 31, 2024, the carrying amount of inventories was $4,858,985 thousand.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December31,2024 1,221 $ 6,986,072 1,599,601 8,586,894 $	December31,2023
		2,694 $ 5,248,233 275,795
		5,526,722 $

• A. The Group 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.

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• B. As of December 31, 2024 and 2023, time deposits maturing in excess of three months were all classified as current financial assets at amortized cost.

• (2) Financial assets at fair value through profit or loss

==> picture [488 x 319] intentionally omitted <==

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

Items December 31, 2024 December 31, 2023
Current items:
Financial assets mandatorily measured
at fair value through profit or loss
- Funds $ 611,639 $ 232,000
- Forward exchange contract 7,603 13,166
- Call options of convertible bonds 600 -
- Stocks 20,965 20,480
- Bonds - 280,000
Valuation adjustment 15,669 10,934
$ 656,476 $ 556,580
Non-current items:
- Funds $ 46,220 $ 47,652
Valuation adjustment ( 3,145) ( 1,824)
$ 43,075 $ 45,828
Items December 31, 2024 December 31, 2023
Current items:
Financial liabilities held for trading
- Forward exchange contract $ - $ 1,726
----- End of picture text -----

• A. Amounts recognized in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

loss are listed below:
Net (losses) gains on financial assets (liabilities) at fair value through profit or loss	Years endedDecember31,
	2024 24,269 $	2023
		29,907 $

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• B. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

==> picture [470 x 183] intentionally omitted <==

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

December 31, 2024
Contract amount
Derivative instruments (Notional principal) Contract period Contract price
Forward foreign exchange 2024/03/14~
contract to buy USD 6,000 thousand 2025/12/30 NTD 30.253~31.712
December 31, 2023
Contract amount
Derivative instruments (Notional principal) Contract period Contract price
Forward foreign exchange 2023/12/27~
contract to sell USD 15,000 thousand 2024/01/30 NTD 30.555~30.846
Forward foreign exchange 2023/01/30~
contract to buy USD 25,000 thousand 2024/05/10 NTD 29.036~30.600
----- End of picture text -----

The Group entered into forward foreign exchange contracts to hedge exchange rate risk of import and export proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

• C. The amounts that have been transacted and yet to be paid on December 31, 2024 and 2023 are $0 thousand and $140,019 thousand respectively. (shown as other payables).

• D. The amounts that have been transacted and yet received on December 31, 2024 and 2023 are

• $0 thousand and $140,459 thousand respectively. (shown as other receivables).

• E. The Group has no financial assets at fair value through profit or loss pledged to others as collateral.

• F. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

	Items		December	31,2024		December	31,2023
Current items:
Equity instruments
Stocks			$	106,080		$	106,080
Valuation adjustment
-through other comprehensive income		(		170)	(		874)
Total			$	105,910		$	105,206
Non-current items:
Equity instruments
Unlisted stocks			$	729,266		$	916,650
Valuation adjustment
-through other comprehensive income		(		497,056)	(		547,127)
Total			$	232,210		$	369,523

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• A. The Group has elected to classify equity and debt investments that are considered to be strategic investments or steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $338,120 thousand and $474,729 thousand as on December 31, 2024 and 2023, respectively.

• B. On November 7, 2023, as the Company increased its investments in DONPON PRECISION INC., resulting to changes in the shareholding ratio, the Company obtained influence over DONPON PRECISION INC. and changed its operating mode in DONPON PRECISION INC. Accordingly, the Company reclassified the investment increase from financial assets at fair value through other comprehensive income to investments accounted for using equity method. Please refer to Note 6(7) for details.

• C. On May 30, 2024, the Company acquired 1 seat in the Board of Directors of SYNERGY SCIENTECH CORP. Therefore, the Company reclassified the investments from financial assets at fair value through other comprehensive income to investments accounted for using equity method. Please refer to Note 6(7) for details.

• D. 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:

assets at fair value through other comprehensive	income	are listed below:
		Years ended	December31,
		2024		2023
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income	($	6,346)	$	8,152
Cumulative (losses) gains reclassified to
retained earnings due to derecognition	($	52,471)	$	60,254
Dividend income recognised in profit or loss	$	4,004	$	7,775
Debt instruments at fair value through other
comprehensive income
Fair value change recognised in profit or loss	$	-	($	8,925)
Fair value change recognised in other
comprehensive income	$	-	$	2,687
Cumulative other comprehensive
income reclassified to profit or loss
Interest income recognised in profit or loss	$	-	$	4,754

• E. 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 Group were $338,120 thousand and $474,729 thousand, respectively.

• F. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

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

• H. The counterparties of the Company’s investments in debt instruments have good credit quality; those debt securities are all rated as investment grade.

(4) Accounts receivable

Accounts receivable
		December31,2024			December 31, 2023
Accounts receivable		$	11,279,105		$	9,241,314
Less: Allowance for uncollectible accounts	(		44,658)	(		16,839)
		$	11,234,447		$	9,224,475
A. The aging analysis of accounts receivable is	as follows:
		December31,2024			December	31,2023
Not past due	$		11,190,671	$		9,169,410
Up to 30 days			45,293			58,076
31 to 90 days			3,134			2,535
91 to 180 days			3,263			52
Over 180 days			36,744			11,241
	$		11,279,105	$		9,241,314

The above aging analysis was based on past due date.

• B. As of December 31, 2024 and 2023, and January 1, 2023, the balances of receivables (including notes receivable) from contracts with customers amounted to $11,234,447 thousand, $9,224,475 thousand and $8,709,698 thousand, respectively.

• C. The Group took out a credit insurance on the accounts receivable. The insurance company audits the amount and pays 90% of the amount when the default occurred. As of December 31, 2024 and 2023, the insured accounts receivable amounted to $7,107,257 thousand and $7,614,787 thousand, respectively.

• D. The Group does not hold any collateral as security.

• E. The Group entered into a factoring agreement which has no right of recourse with ING BANK N.V., TAIPEI BRANCH on August 19, 2024 and July 19, 2022. As of December 31, 2024 and 2023, there were no accounts receivable that were outstanding and expected to be transferred (reclassified as financial assets at fair value through other comprehensive income). Please refer to Note 6(5) for information on transfer of financial assets.

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

• (5) Transfer of financial assets

• A. Transferred financial assets that are entirely derecognized

  • None for December 31, 2024 and 2023.

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• B. Transferred financial assets that are not entirely derecognized

• i. On August 19, 2024 and July 19, 2022, the Group entered into a factoring agreement with ING BANK N.V., TAIPEI BRANCH to sell its accounts receivable. In accordance with the agreement, the Group transferred first 90% of accounts receivable and has obligated to provide partial guarantees for the default risk of the transferred accounts receivable. Therefore, the Group has not derecognized the accounts receivable in their entirety and may not pledge these accounts receivable to a third party.

• ii. As of December 31, 2024 and 2023, the related information of the transferred accounts receivable sold that the Group continuously recognized to the extent of continuing involvement were as follows:

were as follows:
	December	31, 2024	December 31, 2023
Total carrying amount of the original assets	$	657,263	$	-
before transferring
Carrying amount of the assets continuously		65,726		-
recognized

(6) Inventories

Raw materials Work in progress Finished goods Raw materials Work in progress Finished goods		December 31, 2024
	Cost 2,018,432 $ 753,299 2,300,818 5,072,549 $	Allowance for valuation loss 117,885) ($ 10,151) ( 85,528) ( 213,564) ($ December31,2023	Bookvalue
			1,900,547 $ 743,148 2,215,290
			4,858,985 $
	Cost 1,732,946 $ 470,522 1,861,814 4,065,282 $		Bookvalue
			1,604,173 $ 459,925 1,757,222
			3,821,320 $

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The cost of inventories recognized as expense for the year :

			Years ended	December31,	December31,	December31,
			2024			2023
Cost of goods sold		$	37,957,731		$	31,993,842
Loss on scrapping inventory			79,219			34,165
Gain on slow-moving inventories and decline
in market value	(		30,398)	(		79,921)
Loss on physical inventory			119			330
		$	38,006,671		$	31,948,416

The Group reversed a previous inventory write-down because inventories with decline in market value were partially sold by the Group during the years ended December 31, 2024 and 2023.

(7) Investments accounted for using equity method

Investments accounted for using equity method
			Years ended	December31,
			2024		2023
At January 1		$	5,602,510	$	5,028,458
Increase in investments accounted for using
equity method			26,200		409,928
Disposal of investments accounted for using
equity method	(		430,463)		-
Share of profit or loss of investments accounted
for using the equity method			616,994		284,801
Earnings distribution of investments	(		238,193)	(	213,003)
Changes in capital surplus			13,679		26,955
Changes in other equity items			189,146	(	94,837)
Changes in retained earnings			108	(	22)
Reclassification of credit balance of investments
accounted for using equity method/ reversal of
non- current liabilities	(		1,095)	(	14)
Transferred from financial assets at fair value through
other comprehensive income			135,869		160,244
At December 31		$	5,914,755	$	5,602,510

• A. On July 28, 2022, the investment of CDIB-Mac Limited Partnership was resolved by the Board of Directors. The Group increased its capital in CDIB-Mac Limited Partnership in the amounts of $26,200 thousand, $43,667 thousand and $63,316 thousand on December 23, 2024, May 25, 2023 and September 7, 2023, respectively.

• B. On January 31, 2023, the Group’s subsidiary, MERRY ELECTRONICS (SHENZHEN) CO., LTD.

• (“MECL”), invested in DONG GUAN GET PINK ELECTRONICS CO., LTD. in the amount of RMB 3,858 thousand (approximately NTD 16,925 thousand), with 33% ownership, as resolved by the Board of Directors. The registration for the investment was completed.

~41~

• C. On November 7, 2023, the Board of Directors resolved to increase its investments in the private placement common shares of DONPON PRECISION INC. amounting to $286,020 thousand, and the Company accumulatively acquired 16.22% equity interests in the company, and further had significant influence over the company. The Company had reclassified the investment which was initially recognised in financial assets at fair value through other comprehensive income amounting to $160,244 thousand, including realised valuation gains in the amount of $60,254 thousand. Please refer to Note 6(3) for details.

• D. The Group’s investee company, Guangdong Luxshare & Merry Electronics Co., Ltd., established the liquidation committee on April 20, 2022. The liquidation period was from May 1, 2022 to May 29, 2024. The date of dissolution was the end of the liquidation period. Based on the liquidation result, the Group wrote-off the equity value of $430,463 thousand, capital surplus of $1,872 thousand and other equity of ($22,058) thousand and recognised losses on disposals of investments of $12,653 thousand. The disposal proceeds amounted to RMB 98,581 thousand (approximately NTD 439,576 thousand) and the liquidation was completed.

• E. On December 25, 2024, the shareholders of the Group’s investee company, Merry Electronics (Huizhou) Co., Ltd., during their meeting resolved to distribute earnings in the amount of RMB 49,000 thousand (approximately NTD 218,540 thousand).

• F. For the year ended December 31, 2024, the Group received cash dividends of $19,653 thousand from investments accounted for using equity method, $24 thousand of which was the withholding tax distributed by the Group’s investee company, CDIB-Mac Limited Partnership, on May 6, 2024, which is considered as the earnings appropriation and can be deducted from the tax payable in the income tax returns.

• G. On May 30, 2024, the Company acquired 1 seat in the Board of Directors of SYNERGY SCIENTECH CORP. and further had significant influence over the company. The Group had reclassified the investment which was initially shown as (financial assets at fair value through other comprehensive income) amounting to $135,869 thousand, including realised valuation losses in the amount of $52,471 thousand. Please refer to Note 6(3) for details.

• H. The Group’s investee company, Merry Electronics (Huizhou) Co., Ltd., merged with the Group’s investee company, Merry Electronics (Shanghai) Co., Ltd. The merge was resolved by the respective Board of Directors and the surviving company was Merry Electronics (Huizhou) Co., Ltd. The effective date was set on August 6, 2024, and the registration for the merger was completed.

~42~

I. Details are as follows ：

Details are as follows：
Associates with significant influence Merry Electronics(Suzhou) Co., Ltd. (MECE) Associates with insignificant influence Merry Electronics (Huizhou)Co., Ltd. (MECH) Guangdong Luxshare & Merry Electronics Co.,Ltd. (MEDG) DONPON PRECISION INC CDIB-Mac Limited Partnership (MAC FUND) Leohab Enterprise Co., Ltd. (LEOHAB) DONG GUAN GET PINK ELECTRONICS CO., LTD(DONG GUAN GET PINK) SYNergy ScienTech Corp. Merry Electronics (Shanghai)Co., Ltd. (MECS) Subtotal Add: Credit balance of investments accounted for using the equity method transferred to non-current liabilities	December31,2024 3,665,410 $ 1,377,693 - 482,410 159,861 76,954 16,278 136,149 - 5,914,755 - 5,914,755 $	December31,2023
		3,279,717 $ 1,286,560 422,596 441,257 116,837 39,554 15,989 - 1,095) ( 5,601,415 1,095 5,602,510 $

J. Share of profit (loss) of associates accounted for using the equity method ：

				Years ended	December 31,	December 31,	December 31,
	Investee			2024			2023
MECE			$	251,048		$	64,066
MECH				269,558			210,554
MEDG				2,682			23,081
DONPON				39,291	(		4,172)
MAC FUND				16,847	(		8,729)
LEOHAB				36,985			715
DONG GUAN GET PINK		(		268)	(		714)
SYNergy ScienTech Corp.				851			-
			$	616,994		$	284,801

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K. Associates

(a) The basic information of the associates that is material to the Group is as follows:

Shareholding ratio Company Principal place December December Nature of Methods of name of business 31, 2024 31, 2023 relationship measurement MECE Mainland China 49.00% 49.00% Holding more Equity method than 20% of voting right of stockholders

• (b) The summarised financial information of the associates that are material to the Group is as follows:

Balance sheet

follows: Balance sheet
		MERRY ELECTRONICS(SUZHOU)CO.,LTD
			December31,2024		December 31, 2023
Current assets		$	7,811,276		5,878,001 $
Non-current assets			3,151,317		4,160,057
Current liabilities	(		3,356,318)	(	3,164,937)
Non-current liabilities	(		61,559)	(	61,207)
Total net assets		$	7,544,716		6,811,914 $
Share in associate's net assets		$	3,696,911		3,337,838 $
Realized (unrealized) loss
from upstream and
sidestream transactions Carrying amount of the associate	(	$	31,501) 3,665,410	(	58,121) 3,279,717 $

Statement of comprehensive income

Statement of comprehensive income
Revenue Profit for the period from continuing operations Total comprehensive income	MERRY ELECTRONICS(SUZHOU)CO.,LTD
	Years ended December31,
	2024 10,616,315 $ 458,013 $ 458,013 $	2023
		9,599,575 $
		18,679 $
		18,679 $

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• (c) The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarized below:

Share of profit of associates and joint ventures accounted for using the equity method Other comprehensive income (loss), net of tax Total comprehensive income	2024 2023 365,946 $ 220,735 $ 82,540 28,414) ( 448,486 $ 192,321 $ Years endedDecember31,

(Remainder of page intentionally left blank)

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(8) Property, plant and equipment

						Year ended	Year ended	Year ended	December31,	2024	2024
														Effect of foreign
														currency
Cost		Openingbalance				Additions			Reductions		Transfers		exchange differences			Endingbalance
Land		$	792,956		$	206,942		$	-	$	-		$	11,711		$	1,011,609
Land improvements			604			-			-		-			41			645
Buildings and structures			2,027,767			12,753	(		829)		1,529			53,979			2,095,199
Machinery			3,240,291			308,428	(		86,954)		30,219			112,034			3,604,018
Transportation equipment			16,896			1,756			-		-			517			19,169
Office equipment			335,656			20,564	(		7,024)		39			8,936			358,171
Others			358,070			41,726	(		6,717)		6,156			9,443			408,678
Unfinished construction			3,246			249,257			-	(	17,875)			10,582			245,210
			6,775,486		$	841,426	($		101,524)	$	20,068		$	207,243			7,742,699
Accumulated depreciation
Land improvements	($		590)	($		4)		$	-	$	-	($		40)	($		634)
Buildings and structures	(		644,251)	(		84,130)			571		-	(		24,760)	(		752,570)
Machinery	(		1,684,403)	(		421,248)			60,092		-	(		59,803)	(		2,105,362)
Transportation equipment	(		13,501)	(		1,728)			-		-	(		378)	(		15,607)
Office equipment	(		224,257)	(		34,182)			6,873		-	(		7,138)	(		258,704)
Others	(		186,567)	(		58,747)			6,448		-	(		5,182)	(		244,048)
	(		2,753,569)	($		600,039)		$	73,984	$	-	($		97,301)	(		3,376,925)
		$	4,021,917													$	4,365,774

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Year ended December 31, 2023

Cost Opening balance Additions Land 792,675 $ - $ Land improvements 599 - Buildings and structures 1,774,209 153,183 Machinery 3,166,963 180,810 Transportation equipment 22,133 72 Office equipment 302,683 29,366 Others 286,053 45,442 Unfinished construction 124,368 76,720 6,469,683 485,593 $ Accumulated depreciation Land improvements 581) ($ 4) ($ Buildings and structures 584,319) ( 72,039) ( Machinery 1,377,578) ( 400,492) ( Transportation equipment 16,450) ( 1,897) ( Office equipment 202,973) ( 35,555) ( Others 139,879) ( 50,425) ( 2,321,780) ( 560,412) ($ 4,147,903 $	Reductions Transfers - $ - $ - - 1,556) ( 129,898 76,510) ( 24,799 5,054) ( - 16,034) ( 22,152 7,802) ( 40,651 3,175) ( 194,657) ( 110,131) ($ 22,843 $ - $ - $ 1,556 1,977 62,483 4,051 4,652 - 12,236 - 6,720 6,028) ( 87,647 $ - $	Effect of foreign currency exchange differences Ending balance 281 $ 792,956 $ 5 604 27,967) ( 2,027,767 55,771) ( 3,240,291 255) ( 16,896 2,511) ( 335,656 6,274) ( 358,070 10) ( 3,246 92,502) ($ 6,775,486 5) ($ 590) ($ 8,574 644,251) ( 27,133 1,684,403) ( 194 13,501) ( 2,035 224,257) ( 3,045 186,567) ( 40,976 $ 2,753,569) ( 4,021,917 $

A. The Group had no borrowing costs capitalized as part of property, plant and equipment.

B. Information about the property, plant and equipment that were pledged by the Group to others as collateral is provided in Note 8.

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－ (9) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings, machinery and equipment as well as business vehicles. Rental contracts are typically made for periods of 1 to 45 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The Group’s short-term leases comprise the office, dormitory and apparatus and equipment. Lowvalue assets comprise office equipment.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Machinery and equipment Transportation equipment Office equipment Land Buildings Machinery and equipment Transportation equipment Office equipment Other equipment	December31,2024 December31,2023 Carrying amount Carrying amount 77,389 $ 79,399 $ 110,592 165,043 322 1,026 1,091 1,577 - 127 189,394 $ 247,172 $ 2024 2023 Depreciation charge Depreciation charge 4,120 $ 4,842 $ 116,759 113,534 676 1,251 808 905 131 145 - 33 122,494 $ 120,710 $ Years endedDecember31	December31,2023
		Carrying amount 79,399 $ 165,043 1,026 1,577 127 247,172 $
		Depreciation charge
		4,842 $ 113,534 1,251 905 145 33
		120,710 $

• D. For the years ended December 31, 2024 and 2023, the additions to right-of-use assets were $65,186 thousand and $93,901 thousand, respectively.

• E. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	Years endedDecember31	Years endedDecember31
	2024 6,112 $ 10,115 251 16,478 $	2023
		7,265 $ 34,950 260
		42,475 $

For the years ended December 31, 2024 and 2023, the Group’s total cash outflow for leases were $143,323 thousand and $177,451 thousand, respectively.

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(10) Intangible assets

Year ended December 31, 2024

Cost Openingbalance Additions Goodwill 931,678 $ - $ Computer software 629,757 19,973 Customer relationship 326,550 - Technical skills 115,748 - Trademarks 61,481 - Others 49,203 5,301 Sub-total 2,114,417 25,274 $ Accumulated amortization Computer software 553,211) ($ 46,916) ($ Customer relationship 238,025) ( 35,410) ( Technical skills 115,748) ( - Trademarks 29,921) ( 5,518) ( Others 39,015) ( 5,980) ( Sub-total 975,920) ( 93,824) ($ Accumulated Impairment loss Goodwill 227,276) ($ 64,973) ($ Total 911,221 $	Reductions
	- $ 3,907) ( - - - - 3,907) ($ 3,907 $ - - - - 3,907 $ - $

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Year ended December 31, 2023

Cost Openingbalance Additions Goodwill 931,678 $ - $ Computer software 622,674 11,681 Customer relationship 326,550 - Technical skills 115,748 - Trademarks 61,481 - Others 44,263 4,877 Sub-total 2,102,394 16,558 $ Accumulated amortization Computer software 478,230) ($ 79,258) ($ Customer relationship 197,567) ( 40,458) ( Technical skills 104,174) ( 11,574) ( Trademarks 24,403) ( 5,518) ( Others 33,311) ( 5,682) ( Sub-total 837,685) ( 142,490) ($ Accumulated Impairment loss Goodwill 161,766) ($ 65,510) ($ Total 1,102,943 $	Reductions	Endingbalance - $ 931,678 $ 452) ( 629,757 - 326,550 - 115,748 - 61,481 63 49,203 389) ($ 2,114,417 131 $ 553,211) ($ - 238,025) ( - 115,748) ( - 29,921) ( 22) ( 39,015) ( 109 $ 975,920) ( - $ 227,276) ($ 911,221 $ Effect of foreign currency exchange differences
	- $ 4,146) ( - - - - 4,146) ($ 4,146 $ - - - - 4,146 $ - $

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

Details of amortization in intangible assets are as follows:	Details of amortization in intangible assets are as follows:	Details of amortization in intangible assets are as follows:
Goodwill allocated to the Group’s cash-generating units is as follows: 2024 2023 Operating costs 5,114 $ 15,481 $ Selling expenses 13,672 11,640 Administrative expenses 46,008 72,501 Research and development expenses 29,030 42,868 93,824 $ 142,490 $ Years endedDecember31, Cost Accumulatedimpairment Bookvalue Goodwill: Asian Elite And Indigo 581,644 $ 292,249) ($ 289,395 $ Austar Hearing (Xiamen) 210,299 - 210,299 Huges Hi-Tech 139,735 - 139,735 931,678 $ 292,249) ($ 639,429 $ Cost Accumulated impairment Bookvalue Goodwill: Asian Elite And Indigo 581,644 $ 227,276) ($ 354,368 $ Austar Hearing (Xiamen) 210,299 - 210,299 Huges Hi-Tech 139,735 - 139,735 931,678 $ 227,276) ($ 704,402 $ December31,2024 December 31, 2023
		639,429 $
	Cost Accumulated impairment 581,644 $ 227,276) ($ 210,299 - 139,735 - 931,678 $ 227,276) ($	Bookvalue
		354,368 $ 210,299 139,735
		704,402 $

B. Goodwill allocated to the Group’s cash-generating units is as follows:

For the years ended December 31, 2024 and 2023, the recoverable amount which was calculated based on use in value was less than carrying amount, the Group recognised impairment loss of goodwill amounting to $64,973 thousand and $65,510 thousand, respectively, and the balance of goodwill after recognising impairment loss amounted to $639,429 thousand and $704,402 thousand, respectively. In addition, value in use adopts pre-tax cash flow projections based on financial budgets approved by the management covering a five-year period. The key assumptions used for value-in-use calculations are as follows:

December 31,2024	Huges Hi-Tech	Asian Elite And Indigo	Austar Hearing (Xiamen)
Discount rate Growth rate December 31,2023	9.44% 10% Huges Hi-Tech	14.17% 4%~24.97% Asian Elite And Indigo	13.47% 3%~18.35% Austar Hearing (Xiamen)
Discount rate Growth rate	6.58% 10%	14% 2%~10.07%	16.17% 3%~21.38%

C. The Group has no intangible assets pledged as collateral.

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(11) Impairment of non-financial assets

• A. The Group recognized impairment loss for the years ended December 31, 2024 and 2023. Details of such loss are as follows :

==> picture [484 x 271] intentionally omitted <==

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

Years ended December 31,
2024 2023
Recognized through Recognized through
profit or loss profit or loss
Accumulated impairment-Goodwill $ 64,973 $ 65,510
B. Please refer to Note 6 (10) for the impairment to intangible assets.
Short-term borrowings -term borrowings term borrowings
Type of borrowings December 31, 2024 Interest rate range Collateral
Bank borrowings
Credit loan $ 277,099 2.00%~3.65% None
Secured borrowings 89,560 2.70%~3.40% Patents (Note)
$ 366,659
Type of borrowings December 31, 2023 Interest rate range Collateral
Bank borrowings
Credit loan $ 1,089,829 1.66%~3.80% None
Secured borrowings 43,270 3.70% Patents (Note)
$ 1,133,099
----- End of picture text -----

(12) Short-term borrowings -term borrowings term borrowings

• A. Interest expense recognized in profit or loss amounted to $21,270 thousand and $22,411 thousand for the years ended December 31, 2024 and 2023, respectively.

• B. The Group provided endorsements and guarantees for the credit loans as of December 31, 2024 and 2023.

Note: The patents has been fully amortized into profit and loss.

(13) Other payables

Other payables
		December	31,2024		December	31,2023
Payroll and bonus payable		$	575,601		$	498,293
Employee compensation payable			306,792			191,454
Payables on equipment			127,331			71,416
Directors’ remuneration payable			59,771			36,982
Others			536,594			587,789
		$	1,606,089		$	1,385,934
Bonds payable
		December	31,2024		December	31,2023
Bonds payable		$	3,000,000		$	2,999,900
Less: Discount on bonds payable	(		143,722)	(		17,639)
Sub-total			2,856,278			2,982,261
Less: Current portion			-	(		2,982,261)
Total		$	2,856,278		$	-

(14) Bonds payable

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• A. The details of the third domestic unsecured convertible bonds issued by the Company on August 11, 2021 are as follows:

• (a) The terms of the third domestic unsecured convertible bonds issued by the Company are as follows:

  • i. The Company issued $3,015,000 thousand, 0% third domestic unsecured convertible bonds, as approved by the regulatory authority. The bonds mature three years from the issue date August 11, 2021 to August 11, 2024 and will be redeemed in cash at face value at the maturity date. The bonds were listed on the Taipei Exchange on August 11, 2021.

  • ii. The bondholders have the right to ask for conversion of the bonds into common shares of the Company at any time during the period from the date after three months of the bonds issued to the maturity date by notifying the Taiwan Depository & Clearing Corporation through the dealer to the Company, except for (i) the stop transfer period as specified in the terms of the bonds or the laws/regulations; (ii) the book closure date of the issuance of bonus shares, and of cash dividends, the period between the date that is 15 business days before the book closure date of a capital increase to the ex-right date; (iii) the period between the record date of a capital reduction and the prior day before the commencement of stock trading after stocks are repurchased; (iv) the period between the start date of stopping conversion due to implementing changes of face value of stocks and the prior day before the trading date that new shares start to be exchanged to stocks, can not ask conversions. Other than the aforementioned period, the bonds can be converted into common shares at any time after applying request to Taiwan Depository & Clearing Corporation through securities firms. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

  • iii. The conversion price of the bonds is set up based on the pricing model specified in the terms of the bonds, and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price was $104.9 (in dollars) per share.

  • iv. The Company may repurchase all the bonds outstanding in cash at the bonds’ face value at any time after the following events occur: (i) the closing price of the Company common shares is above the then conversion price by 30% for 30 consecutive trading days during the period from the date after three months of the bonds issue to 40 days before the maturity date, or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount, the Company has the right to redeem the convertible bonds in accordance with the Article 18 of the terms of issuance and conversion during the period from the date after three months of the bonds issue to 40 days before the maturity date.

  • v. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are retired and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

• (b) The bonds totaling $2,996,000 thousand (face value) had been converted into 28,559 shares of common stock. The face value of the remaining unconverted bonds had been due for settlement on August 11, 2024. The forfeited ‘capital surplus - share options’ of $129 thousand was all transferred to ‘capital surplus-others’.

• B. The details of the fourth domestic unsecured convertible bonds issued by the Company on July 10, 2024 are as follows:

• (a) The terms of the fourth domestic unsecured convertible bonds issued by the Company are as follows:

  • i. The Company issued $2,500,000 thousand, 0% fourth domestic unsecured convertible bonds, as approved by the regulatory authority. The bonds mature three years from the issue date July 10, 2024 to July 10, 2027 and will be redeemed in cash at face value at the maturity date. The bonds were listed on the Taipei Exchange on July 10, 2024.

~53~

  - ii. The bondholders have the right to ask for conversion of the bonds into common shares of the Company at any time during the period from the date after three months of the bonds issued to the maturity date by notifying the Taiwan Depository & Clearing Corporation through the dealer to the Company, except for (i) the stop transfer period as specified in the terms of the bonds or the laws/regulations; (ii) the book closure date of the issuance of bonus shares, and of cash dividends, the period between the date that is 15 business days before the book closure date of a capital increase to the ex-right date; (iii) the period between the record date of a capital reduction and the prior day before the commencement of stock trading after stocks are repurchased; (iv) the period between the start date of stopping conversion due to implementing changes of face value of stocks and the prior day before the trading date that new shares start to be exchanged to stocks, can not ask conversions. Other than the aforementioned period, the bonds can be converted into common shares at any time after applying request to Taiwan Depository & Clearing Corporation through securities firms. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

  - iii. The conversion price of the bonds is set up based on the pricing model specified in the terms of the bonds, and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. As of December 31, 2024, the conversion price was $137.5 (in dollars) per share.

  - iv. The Company may repurchase all the bonds outstanding in cash at the bonds’ face value at any time after the following events occur: (i) the closing price of the Company common shares is above the then conversion price by 30% for 30 consecutive trading days during the period from the date after three months of the bonds issue to 40 days before the maturity date, or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount, the Company has the right to redeem the convertible bonds in accordance with the Article 18 of the terms of issuance and conversion during the period from the date after three months of the bonds issue to 40 days before the maturity date.

  - v. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are retired and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

• (b) As of December 31, 2024, the bonds had not yet been converted into common stock.

• C. The details of the fifth domestic unsecured convertible bonds issued by the Company on July 22, 2024 are as follows:

• (a) The terms of the fifth domestic unsecured convertible bonds issued by the Company are as follows:

  • i. The Company issued $500,000 thousand, 0% fifth domestic unsecured convertible bonds, as approved by the regulatory authority. The bonds mature three years from the issue date July 22, 2024 to July 22, 2027 and will be redeemed in cash at face value at the maturity date. The bonds were listed on the Taipei Exchange on July 22, 2024.

  • ii. The bondholders have the right to ask for conversion of the bonds into common shares of the Company at any time during the period from the date after three months of the bonds issued to the maturity date by notifying the Taiwan Depository & Clearing Corporation through the dealer to the Company, except for (i) the stop transfer period as specified in the terms of the bonds or the laws/regulations; (ii) the book closure date of the issuance of bonus shares, and of cash dividends, the period between the date that is 15 business days before the book closure date of a capital increase to the ex-right date; (iii) the period between the record date of a capital reduction and the prior day before the commencement of stock trading after stocks are repurchased; (iv) the period between the start date of

~54~

stopping conversion due to implementing changes of face value of stocks and the prior day before the trading date that new shares start to be exchanged to stocks, can not ask conversions. Other than the aforementioned period, the bonds can be converted into common shares at any time after applying request to Taiwan Depository & Clearing Corporation through securities firms. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

  - iii. The conversion price of the bonds is set up based on the pricing model specified in the terms of the bonds, and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. As of December 31, 2024, the conversion price was $133.5 (in dollars) per share.

  - iv. The Company may repurchase all the bonds outstanding in cash at the bonds’ face value at any time after the following events occur: (i) the closing price of the Company common shares is above the then conversion price by 30% for 30 consecutive trading days during the period from the date after three months of the bonds issue to 40 days before the maturity date, or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount, the Company has the right to redeem the convertible bonds in accordance with the Article 18 of the terms of issuance and conversion during the period from the date after three months of the bonds issue to 40 days before the maturity date.

  - v. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are retired and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

• (b) As of December 31, 2024, the bonds had not yet been converted into common stock.

• D. Regarding the issuance of convertible bonds, the equity conversion options amounting to $280,733 thousand were separated from the liability component and were recognized in ‘capital surplus - share options’ in accordance with IAS 32. The call options embedded in bonds payable were separated from their host contracts and were recognized in ‘financial assets at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts.

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• (15) Long term borrowings

Type of borrowings	Borrowing period and repayment term Interest rate range Collateral Borrowing period is from 2020/2/20 to 2025/2/20; interest is repayable monthly, principal is repayable starting from 2022. (Notes 1 and 2) 0.93%~1.29% None Borrowing period is from 2020/2/20 to 2027/2/19; interest is repayable monthly, principal is repayable starting from 2022. 1.23%~5.30% None Borrowing period is from 2023/9/27 to 2033/9/27; interest is repayable monthly, principal is repayable starting from 2023. 3.30% Plant	December 31, 2024
Long-term bank borrowings Credit loan Credit loan Secured borrowings Less: Expiring within one year or one operating cycle		20,556 $ 450,288 54,558 525,402 282,505) ( 242,897 $

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Type of borrowings	Borrowing period and repayment term Interest rate range Collateral Borrowing period is from 2020/2/20 to 2025/2/20; interest is repayable monthly, principal is repayable starting from 2022. (Notes 1 and 2) 0.80%~1.16% None Borrowing period is from 2020/2/20 to 2027/2/19; interest is repayable monthly, principal is repayable starting from 2022. 1.10%~5.60% None Borrowing period is from 2022/9/27 to 2026/6/27; interest is repayable monthly, principal is repayable starting from 2023. 2.00%~3.75% None Borrowing period is from 2023/9/27 to 2033/9/27; interest is repayable monthly, principal is repayable starting from 2023. 3.65% plant		December 31, 2023
Long-term bank borrowings Credit loan Credit loan Credit loan Secured borrowings Less: Expiring within one year or one operating cycle		143,889 $ 1,165,921 56,121 83,425 1,449,356 446,179) ( 1,003,177 $

Interest expense recognized in profit or loss amounted to $25,606 thousand and $30,353 thousand for the years ended December 31, 2024 and 2023, respectively.

• Note 1: In November 2019, the Company entered into a long-term loan contract with Taipei Fubon Bank. As of December 31, 2024, all available borrowing facilities was used. Aforementioned contract conditions:

• During the credit period, the following financial ratios shall be maintained and the audited/reviewed consolidated financial statements shall be checked semi-annually:

• (a) Current ratio shall not be lower than 100%;

• (b) Debt ratio (total liabilities/total equity)shall not be higher than 200%;

• (c) Interest coverage ratio shall not be lower than 10.

• (d) Net tangible assets shall not be less than 8 billion.

• Note 2: In February 2020, the Company entered into a long-term loan contract with JIHSUN BANK. As of December 31, 2024, all available borrowing facilities was used.

• Aforementioned contract conditions:

• During the credit period, the following financial ratios shall be maintained and the

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audited/reviewed consolidated financial statements shall be checked semi-annually:

     - (a) Current ratio shall not be lower than 100%;

     - (b) Debt ratio (total liabilities/tangible assets) shall not be higher than 250%;

     - (c) Tangible assets shall be maintained at least $8 billion.

• (16) Pensions

• A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the 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 and its domestic subsidiaries contribute monthly an amount equal to 5.1% 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 and its domestic subsidiaries 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 and its domestic subsidiaries will make contributions for the deficit by next March.

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

		December	31,2024		December	31,2023
Present value of defined benefit obligations		$	77,886		$	86,576
Fair value of plan assets	(		53,998)	(		50,522)
Net defined benefit liability		$	23,888		$	36,054

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

Year ended December 31, 2024 Balance at January 1 Current service cost Interest (income) expense Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension Balance at December 31 Year ended December 31, 2023 Balance at January 1 Current service cost Interest (income) expense Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension Balance at December 31		Present value of defined benefit obligations	Fair value of plan assets 50,522) ($ - 583) ( 51,105) ( 3,255) ( - - 3,255) ( 6,256) ( 6,618 53,998) ($ Fair value of plan assets	Net defined benefit liability 36,054 $ 307 420 36,781 3,255) ( 3,120) ( 262) ( 6,637) ( 6,256) ( - 23,888 $ Net defined benefit liability
	86,576 $ 307 1,003 87,886 - 3,120) ( 262) ( 3,382) ( - 6,618) ( 77,886 $ Present value of defined benefit obligations
	80,364 $ 230 992 81,586 - 773 5,902 6,675 - 1,685) ( 86,576 $		42,745) ($ - 518) ( 43,263) ( 327) ( - - 327) ( 8,617) ( 1,685 50,522) ($	37,619 $ 230 474 38,323 327) ( 773 5,902 6,348 8,617) ( - 36,054 $

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regarding to the utilization

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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 are less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are 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 Utilization Report announced by the government.

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

Discount rate Future salary increases	2024 2023 1.65% 1.20% 3.00% 3.00% Years ended December 31,	2024 2023 1.65% 1.20% 3.00% 3.00% Years ended December 31,
		1.20%
		3.00%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

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

December 31, 2024 Effect on present value of defined benefit obligation December 31, 2023 Effect on present value of defined benefit obligation	Discount rate	Discount rate	Discount rate		Future salary increases
	Increase 0.25%		Decrease 0.25%		Increase 0.25% Decrease 0.25% 1,682 $ 1,633) ($ 1,942 $ 1,884) ($
	1,651) ($ 1,913) ($		1,709 $ 1,983 $

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) The Company expects to pay contribution for pension plan amounting to $2,133 thousand in 2025.

• (g) As of December 31, 2024, the weighted average duration of the retirement plan is 8 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 1-2 year(s) 2-5 years Over 5 years	15,241 $ 2,045 12,909 59,866
	90,061 $

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• 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 subsidiaries and second-tier subsidiaries in mainland China have set up a defined contribution plan. Monthly contribution to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

• (c) The subsidiary, METC, in Thailand is required to pay pension of up to 10 months of employee salaries to the employees upon their retirement. The pension liability is estimated annually based on the employees’ total salaries and expected service years in accordance with the regulations of the Thailand government.

• (d) The subsidiary, MEVN, in Vietnam is subject to related local regulation, which is required to contribute a statutory percentage of the employees’ monthly salaries and wages to the employees’ pension funds, and to pay it to the competent authority. Other than the monthly contributions, the Group has no further obligations.

• (e) The subsidiary, MEST, in Hong Kong is subject to related local regulation, which is required to enroll in mandatory provident fund schemes for employees and contribute a statutory percentage of the employees’ monthly salaries and wages to the employees’ pension funds, and to pay it to the competent authority. Other than the monthly contributions, the Group has no further obligations.

• (f) The subsidiary, MESG, in Singapore is subject to related local regulation, which is required to contribute a statutory percentage of the employees’ monthly salaries and wages to the employees’ pension funds, and to pay it to the competent authority. Other than the monthly contributions, the Group has no further obligations.

• (g) The subsidiary, MEMP, in Malaysia is subject to related local regulation, which is required to contribute a statutory percentage of the employees’ monthly salaries and wages to the employees’ pension funds, and to pay it to the competent authority. Other than the monthly contributions, the Group has no further obligations.

• (h) The pension costs under defined contribution pension plans of the Group for the years ended December 31, 2024 and 2023 were $204,291 thousand and $151,784 thousand, respectively.

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(17) Share-based payment

A. For the years ended December 31, 2024 and 2023, the fair value of the Company’s stocks granted on the grant date in accordance with the Company’s share-based payment agreement is measured using the closing price. Related information is as follows:

Type of arrangement Grant date The first restricted stocks to employees in 2020 2021.05.31 The second restricted stocks to employees in 2020 2021.07.30 The first restricted stocks to employees in 2021 2022.07.29 The first restricted stocks to employees in 2022 2023.07.28 The second restricted stocks to employees in 2022 2024.07.26 The first restricted stocks to employees in 2023 2024.07.26 Cash capital increase reserved for employee preemption in 2024 2024.08.28	Quantity granted	Contract period	Stock price	Exercise price Fair value per unit 0 107.5 0 111.0 0 80.7 0 91.9 0 124.0 0 124.0 95.0 39.0	Vesting condition
	416 units 1,504 units 1,800 units 1,645 units 355 units 1,594 units 750 units	3 years 3 years 3 years 3 years 3 years 5 years Vested immediately	107.5 111.0 80.7 91.9 124.0 124.0 134.0		Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 -

Note 1: Depending on the employee’s tenure in the Company (1 to 3 years), the employees can vest stocks at the ratio of 30%, 30% and 40% in three years based on the number of stocks written on the notification. The conditions for vesting restricted stocks are as follows:

(a) For the employees who are currently working in the Company, whose services have reached 1 year and achieved the performance of the most recent year’s consolidated financial statements and the target personal performance, the ceiling of vested share ratio is 30%.

(b) For the employees who are currently working in the Company, whose services have reached 2 years and achieved the performance of the most recent year’s consolidated financial statements and the target personal performance, the ceiling of accumulated vested share ratio is 60%.

• (c) For the employees who are currently working in the Company, whose services have reached 3 years and achieved the performance of the most recent year’s consolidated financial statements and the target personal performance, the ceiling of accumulated vested share ratio is 100%.

• (d) The Company will repurchase and retire the stocks that do not meet the conditions of vesting for the employees who resign during the vesting period or do not meet the condition of vesting by the issuance price.

Note 2: The expired date of the vesting period is 5 years after the grant date. The Group will calculate the number of vesting stocks by reviewing the personal and company’s performance and the vesting stocks for the employees will be vested cumulatively at once. The aforementioned restricted stocks issued by the Company cannot be transferred during the vesting period and the commissioned trust custodians execute the shareholders’ rights on behalf of the employees.

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

		2024	2024			2023	2023
				Weighted-				Weighted-
			average exercise				average exercise
		No. of share		price		No. of share		price
		(in thousands)		(in dollars)		(in thousands)		(in dollars)
At January 1		4,071	$	-		3,348	$	-
Restricted stocks granted		1,949		-		1,645		-
Restricted shares retired	(	560)		-	(	809)		-
stocks retired	(	1,333)		-	(	113)		-
At December 31		4,127		-		4,071		-
Expenses incurred on share-based payment transactions are shown below:
				Years ended December 31,
				2024				2023
Equity-settled				$		62,123 $		132,310

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

(18) Share capital

• A. As of December 31, 2024, the Company’s authorized capital was $4,000,000 thousand, consisting of 400,000 thousand shares of ordinary stock (including 5,000 thousand shares reserved for employee stock options), and the paid-in capital was $2,534,938 thousand with a par value of $10 (in dollars) per share.

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

thousands):
		Years ended	December 31,
		2024		2023
At January 1		219,316		217,783
Cash capital increase		5,000		-
Employee restricted shares retired	(	1,333)	(	113)
Employee restricted shares granted		1,949		1,645
Conversion of convertible bonds		28,559		1
At December 31		253,491		219,316

(a) On April 25, 2024, the Company’s Board of Directors resolved to increase its capital by issuing 5,000 thousand common shares and the subscription price was $95 (in dollars) per share. All proceeds from shares had been actually collected amounting to $475,000 thousand. The effective date was set on September 24, 2024 and the registration for the abovementioned capital increase was completed.

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• (b) The retirement of the employees’ restricted stocks which had been resolved by the Company’s Board of Directors was as follows:

Number of restricted stocks

==> picture [395 x 31] intentionally omitted <==

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

Date of the Board of to employees retired Date of Capital
Directors' Resolution (in thousands) Reduction
----- End of picture text -----

Date of the Board of Directors' Resolution	to employees retired (in thousands)	Date of Capital Reduction
February 26, 2025	2	March 3, 2025
October 24, 2024	1,122	October 24, 2024
July 25, 2024	182	July 25, 2024
April 25, 2024	27	April 25, 2024
February 22, 2024	28	February 26, 2024
October 26, 2023	44	November 6, 2023
July 27, 2023	8	July 27, 2023
April 27, 2023	33	May 3, 2023

The registration for the abovementioned retirement of the employees’ restricted stocks was completed, excluding the capital reduction which was resolved on February 26, 2025.

• (c) The Company issued the third unsecured convertible bonds on August 11, 2021. As of December 31, 2024, the face value of the convertible bonds of $2,996,000 thousand had been converted into common shares amounting to 28,559 thousand shares. Please refer to Note 6(14) for details. 11,317 shares, 16,154 thousand shares and 1,089 thousand shares of which had been set effective on October 25, 2024, July 26, 2024, April 26, 2024 as resolved by the Board of Directors during their meeting on October 24, 2024, July 25, 2024 and April 25, 2024, respectively. The registration for the abovementioned issuance of the new shares was completed.

• (d) On April 28, 2022 and April 27, 2023, the Board of Directors of the Company resolved to issue employee restricted shares. The issuance was approved by the Competent Authority on September 21, 2022 and October 4 ,2023, respectively. The Company issued 1,949 thousand common shares with the effective date set on July 26, 2024. The subscription price is $0 per share. The registration for the issuance of employee restricted shares was completed. The employee restricted shares issued are subject to certain transfer restrictions before their vesting conditions are qualified. Other than these restrictions, the rights and obligations of these shares issued are the same as other issued ordinary shares.

• (e) On April 28, 2022, the Board of Directors of the Company resolved to issue employee restricted shares. The issuance was approved by the Competent Authority on September 21, 2022. The effective date set on July 28, 2023. The subscription price is $0 per share. The Company issued 1,645 thousand common shares. The registration was completed. The employee restricted shares issued are subject to certain transfer restrictions before their vesting conditions are qualified. Other than these restrictions, the rights and obligations of these shares issued are the same as other issued ordinary shares.

• (19) 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. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

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At January 1 Cash capital increase Issuance of convertible bond Convertible bonds converted into common shares Redeemed of convertible bonds at maturity Restricted stocks issued Restricted stocks vested Restricted stocks retired Recognition of change in equity of associates in proportion to the Company’s ownership Changes in ownership interests in subsidiaries Disposal of investments accounted for using equity method At December 31 At January 1 Convertible bonds converted into common shares Restricted stocks issued Restricted stocks vested Restricted stocks retired Recognition of change in equity of associates in proportion to the Company’s ownership At December 31		Share premium	Share option 96,854 $ - 280,733 96,725) ( 129) ( - - - - - - 280,733 $	Share option 96,854 $ - 280,733 96,725) ( 129) ( - - - - - - 280,733 $	Employee restricted stocks 2024	Employee restricted stocks 2024	Others Total 290,083 $ 4,872,974 $ - 445,241 - 280,733 - 2,707,409 129 - - 222,186 - - - 117,485) ( 13,679 13,679 434) ( 434) ( 1,872) ( 1,872) ( 301,585 $ 8,422,431 $ Others Total 263,128 $ 4,720,866 $ - 90 - 134,725 - - - 9,662) ( 26,955 26,955 290,083 $ 4,872,974 $
		4,147,542 $ 445,241 - 2,804,134 - - 52,909 - - - - 7,449,826 $			338,495 $ - - - - 222,186 52,909) ( 117,485) ( - - - 390,287 $ 2023
		Share premium		Share option		Employee restricted stocks
		4,070,017 $ 93 - 77,432 - - 4,147,542 $	96,857 $ 3) ( - - - - 96,854 $		290,864 $ - 134,725 77,432) ( 9,662) ( - 338,495 $

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(20) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, after deduction of mandatory income tax, shall first be used to offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. After the provision or reversal of special reserve, the appropriation of the remaining earnings along with the unappropriated earnings of prior year shall be proposed by the Board of Directors and approved by the shareholders. The Board of Directors may, based on financial, business and operating perspectives, propose a distribution of earnings within an amount at least 30% of the new distributable earnings and not more than 80% of the accumulated distributable earnings for the current period. The dividends shall be preferably distributed in the form of cash, and can be appropriated in the shares. The ratio of cash dividends shall account for at least 30% of the total dividends distributed. All or partial of dividend and bonus that are distributed in the form of cash will be resolved and reported to the shareholders if more than 2/3 of the directors attend the Board of Directors’ meeting and more than 1/2 of the directors present at the meeting have agreed.

• B. The Company’s dividend policy is summarized 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.

• 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. In Accordance with Ruling No.1010051600 issued by Securities and Futures Bureau of the FSC on November 21, 2012, “unearned employee compensation” under employee restricted stock is not an unrealized item, and therefore is not required to set aside the special reserve. As of December 31, 2024, the special reserve set aside based on the above regulation amounted to $703,868 thousand.

• (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 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. As of December 31, 2024, the balance of capital surplus as aforementioned was $269,144 thousand.

• (c) As of December 31, 2024 and 2023, the balance of special reserve was $973,012 thousand and $768,186 thousand, respectively.

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E. The Company distributed earnings for the years ended December 31, 2023 and 2022 as resolved at the shareholders’ meeting on May 29, 2024 and June 14, 2023, respectively, are as follows: Years ended December 31,

		2023	2023	Dividends		2022	2022	Dividends
		Amount		per share		Amount		per share
Legal reserve	$	137,551			$	146,458
Special reserve		204,826				19,256
Cash dividends		1,030,914	$	4.7		981,235	$	4.5
	$	1,373,291			$	1,146,949

The abovementioned distribution of earnings for the years ended December 31, 2023 and 2022 was in agreement with those amounts proposed by the Board of Directors on February 22, 2024 and February 23, 2023, respectively.

• F. The Company distributed earnings for the year ended December 31, 2024 as resolved by the Board of Directors on February 26, 2025 as follows:

Year ended December 31, 2024

Amount Legal reserve 209,620 $ Special reserve 510,076) ( Cash dividends 1,850,505 1,550,049 $	Dividends pershare
	7.3 $

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(21) Other equity items

2024

				2024
At January 1 Issuance of restricted shares to employees Amortisation of employee restricted stocks Employee restricted shares retired Revaluation - gross Revaluation - tax Revaluation transferred to retained earnings – gross Revaluation – associates Currency translation differences: - Group - Tax on Group - Associates - Tax on associates - Adjustment on disposal of associates transferred to profit or loss At December 31	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income		Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	Cost of unearned employee compensation Total 236,339) ($ 1,209,351) ($ 241,676) ( 241,676) ( 41,882 41,882 130,817 130,817 - 6,346) ( - 4,238) ( - 52,471 - 2,705) ( - 366,104 - 73,332) ( - 191,851 - 38,603) ( - 24,874 305,316) ($ 768,252) ($
	413,159) ($ - - - - - - - 366,104 73,332) ( 191,851 38,603) ( 24,874 57,735 $		- $ - - - - - - - - - - - - - $	559,853) ($ - - - 6,346) ( 4,238) ( 52,471 2,705) ( - - - - - 520,671) ($

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(22)Operating revenue Exchange differences on translation of foreign financial statements Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income At January 1 258,567) ($ 2,687) ($ 506,932) ($ Issuance of restricted shares to employees - - - Amortisation of employee restricted stocks - - - Employee restricted shares retired - - - Revaluation - gross - 2,687 8,152 Revaluation - tax - - 784) ( Revaluation transferred to retained earnings – gross - - 60,254) ( Revaluation – associates - - 35) ( Currency translation differences: - Group 98,016) ( - - - Tax on Group 19,648 - - - Associates 94,837) ( - - - Tax on associates 18,613 - - At December 31 413,159) ($ - $ 559,853) ($ 2023 2024 Revenue from contracts with customers 43,855,354 $ Years ended				2023	2023
	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income		Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income		Cost of unearned employee compensation Total 228,260) ($ 996,446) ($ 151,176) ( 151,176) ( 132,310 132,310 10,787 10,787 - 10,839 - 784) ( - 60,254) ( - 35) ( - 98,016) ( - 19,648 - 94,837) ( - 18,613 236,339) ($ 1,209,351) ($ 2023 36,690,383 $ December31,
				506,932) ($ - - - 8,152 784) ( 60,254) ( 35) ( - - - - 559,853) ($ Years ended
					2024
			$		43,855,354

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A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines and geographical regions:

Year ended December 31, 2024

						Electronic devices	Electronic devices	Electronic devices	Electronic devices	Electronic devices
			Taiwan			Shenzhen		Singapore				Vietnam			Others			Total
Total segment
revenue		$	33,063,291		$	12,367,450		$	8,055,590		6,362,284 $			$	7,553,674		$	67,402,289
Revenue from
internal segment
transactions	(		14,488)	(		12,018,253)	(		2,695)	(	5,092,687)		(		6,418,812)	(		23,546,935)
Revenue from
external customer
contracts			33,048,803			349,197			8,052,895		1,269,597				1,134,862			43,855,354
Main region
Europe			14,150,488			99,801			3,989,979			-			194,900			18,435,168
US			17,734,481			-			4,036,704			-			518,353			22,289,538
Mainland China			147,898			248,064			21,485			-			392,396			809,843
Taiwan			506,367			1,332			-			-			528			508,227
Others			509,569			-			4,727		1,269,597				28,685			1,812,578
		$	33,048,803		$	349,197		$	8,052,895		1,269,597 $			$	1,134,862		$	43,855,354
						Year ended	December 31,			2023
						Electronic devices
			Taiwan			Shenzhen		Singapore				Vietnam			Others			Total
Total segment
revenue		$	26,701,755		$	10,064,276		$	8,364,498		2,814,771 $			$	6,183,465		$	54,128,765
Revenue from
internal segment
transactions	(		38,069)	(		9,740,409)			-	(	2,498,732)		(		5,161,172)	(		17,438,382)
Revenue from
external customer
contracts			26,663,686			323,867			8,364,498			316,039			1,022,293			36,690,383
Main region
Europe			11,241,138			90,143			5,822,461			-			195,965			17,349,707
US			14,452,774			-			2,534,316			-			327,439			17,314,529
Mainland China			131,134			233,724			-			-			433,181			798,039
Taiwan			575,871			-			-			-			-			575,871
Others			262,769			-			7,721			316,039			65,708			652,237
		$	26,663,686		$	323,867		$	8,364,498		$	316,039		$	1,022,293		$	36,690,383

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• B. Contract liabilities ：

• (a) The Group has recognized the following revenue-related contract liabilities:

December 31, 2024 December 31, 2023 January 1, 2023 Contract liabilities $ 780,103 $ 892,122 $ 1,020,897

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

period：
Other income Revenue recognized that was included in the contract liability balance at the beginning of the period Compensation income (Note 1) Government grants (Note 2) Sample income Dividend income Rent income Other income	2024 2023 225,341 $ 375,730 $ Years ended December31, 2024 2023 4,217 $ 157,006 $ 81,410 96,430 73,463 82,625 4,004 11,763 30,463 27,661 41,317 91,523 234,874 $ 467,008 $ Years endedDecember31,
		157,006 $ 96,430 82,625 11,763 27,661 91,523
		467,008 $

• (23) Other income

Notes 1: The Group had compensation agreement with Luxshare Limited. Notes 2: Please refer to Note 6(31) for details of the Group’s government grants. (24) Other gains and losses

Other gains and losses
			Years ended	December31,
			2024	2023
Foreign exchange gain (loss)		$	372,901	($	25,335)
Net gains on financial assets/liabilities
at fair value through loss or profit			24,269		29,907
Impairment loss on goodwill	(		64,973)	(	65,510)
(Losses) gains on disposals of property, plant and
equipment	(		12,446)		19,291
(Losses) gains on disposals of investments	(		15,469)		16,500
Other losses	(		9,381)	(	15,398)
		$	294,901	($	40,545)

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(25) Expenses by nature

Employee benefit expense Employee benefit expense Depreciation charge - property, plant and equipment Depreciation charge - right-of-use assets Amortization charge Wages and salaries Share-based payments Labor and health insurance fees Pension costs Directors’ remuneration Other personnel expenses Total	2024 2023 4,157,239 $ 3,527,116 $ 600,039 560,412 122,494 120,710 93,824 142,490 4,973,596 $ 4,350,728 $ Years endedDecember31, 2024 2023 3,533,589 $ 2,949,565 $ 62,123 132,310 73,276 73,783 205,018 152,488 60,941 37,942 222,292 181,028 4,157,239 $ 3,527,116 $ Years endedDecember31,

(26) Employee benefit expense

• A. To encourage employees and management team, 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’ remuneration. The ratio shall not be lower than 5 to 10% for employees’ compensation and shall not be higher than 2% for directors’ remuneration. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees' compensation distributed in the form shares or in cash; and in addition thereto a report of such distribution shall be submitted to the shareholders at the shareholders' meeting. Employees’ compensation can be distributed in cash or shares and shall be distributed to the employees of subsidiaries of the Company who meet certain specific requirements.

• B. The details of employees’ compensation and directors’ and supervisors’ remuneration of the Company are as follows:

Company are as follows:
Employees’ compensation Directors’ and supervisors’ remuneration	Years ended December 31,
	2024 298,856 $ 59,771 358,627 $	2023
		184,910 $ 36,982
		221,892 $

The abovementioned amounts were recognized in wages and salaries and were accrued at 10% and 10% for employees’ compensation and 2% and 2% for directors’ remuneration for the years ended December 31, 2024 and 2023, respectively, based on the distributable profit of the year. Employees’ compensation and directors’ and supervisors’ remuneration of 2023 as resolved at the Board of Directors’ meeting were in agreement with those amounts recognized in the profit

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or loss of 2023.

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.

(27) Income tax

• A. Income tax expense

• (a) Components of income tax expense:

e tax ome tax expense Components of income tax expense:
			Years ended	December31,
			2024			2023
Current tax:
Current tax on profits for the year		$	448,897		$	459,772
Tax on undistributed surplus earnings			-			10,810
Prior year income tax overestimation	(		12,328)	(		19,284)
Total current tax			436,569			451,298
Deferred tax:
Origination and reversal of temporary
differences			273,886			16,300
Income tax expense		$	710,455		$	467,598

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

Exchange differences changes on translation of foreign financial statements - the Group Exchange differences changes on translation of foreign financial statements - associates Changes in fair value of financial assets at fair value through other comprehensive income Remeasurement of defined benefit obligations	2024 2023 73,332 $ 19,648) ($ 38,603 18,613) ( 4,238 784 1,327 1,269) ( 117,500 $ 38,746) ($ Years ended December 31,

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B. Reconciliation between income tax expense and accounting profit

			Years ended	December31,	December31,	December31,
			2024			2023
Current tax:
Tax calculated based on profit		$	928,100		$	584,879
before tax and statutory tax rate
Expenses disallowed by tax regulation			931			4,434
Tax exempt income by tax regulation	(		193,042)	(		76,835)
Temporary differences not recognised
as deferred tax assets			79,599			13,098
Effect from investment tax credits	(		48,546)	(		45,548)
Effect from Alternative Minimum Tax			83,139			-
Income tax of controlled foreign corporation			-			4,243
Tax on undistributed surplus earnings			-			10,810
Prior year income tax overestimation	(		12,328)	(		19,284)
Others	(		127,398)	(		8,199)
Income tax expense		$	710,455		$	467,598

(Remainder of page intentionally left blank)

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• C. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

Deferred tax assets: - Temporary differences: Unrealized exchange loss Income tax expense Remeasurement of defined benefit obligations Allowance for bad debts Accumulated unused compensated absences Allowance for inventory valuation losses and loss for obsolete and slow- moving inventories Amortisation of discounts on corporate bonds Cumulative translation adjustment of long-term equity investments Investment tax credits Others Total - Deferred tax liabilities Unrealized exchange gain Gain on overseas long-term investment Cumulative translation adjustment of long-term equity investments Adjustment of land value increment tax Unrealized gain on valuation of financial instruments Others Total			2024	2024
		January 1, 2024	Recognized in profit or loss	Recognized in other comprehensive income		December 31, 2024
	14,528 $ 11,163 16,431 4,108 8,534 24,256 31,142 27,447 51,367 188,976 $ 2,305) ($ 1,501,202) ( - 800) ( 17,224) ( 19,206) ( 1,540,737) ($		14,528) ($ 2,317) ( - 577) ( 547 2,570 7,863 - 823 5,619) ($ 10,453) ($ 524,671) ( - - 610) ( 11,649 524,085) ($	- $ - 1,327) ( - - - - 27,447) ( - 28,774) ($ - $ - 84,488) ( - 4,238) ( - 88,726) ($	- $ 8,846 15,104 3,531 9,081 26,826 39,005 - 52,190 154,583 $ 12,758) ($ 2,025,873) ( 84,488) ( 800) ( 22,072) ( 7,557) ( 2,153,548) ($

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2023

Deferred tax assets: - Temporary differences: Unrealized exchange loss Income tax expense Remeasurement of defined benefit obligations Allowance for bad debts Accumulated unused compensated absences Allowance for inventory valuation losses and loss for obsolete and slow- moving inventories Unrealized gain on valuation of financial instruments Amortisation of discounts on corporate bonds Cumulative translation adjustment of long-term equity investments Investment tax credits Others Total - Deferred tax liabilities Unrealized exchange gain Gain on overseas long-term investment Cumulative translation adjustment of long-term equity investments Adjustment of land value increment tax Unrealized gain on valuation of financial instruments Others Total		January 1, 2023	Recognized in profit or loss		Recognized in other comprehensive income		December 31, 2023
	614 $ 9,849 15,162 7,036 7,979 43,168 172 25,725 - 50,310 160,015 $ 2,800) ($ 1,476,469) ( 10,814) ( 800) ( 14,798) ( 28,541) ( 1,534,222) ($		13,914 $ 1,314 - 2,928) ( 555 18,912) ( 172) ( 5,417 - 1,057 245 $ 495 $ 24,733) ( - - 1,642) ( 9,335 16,545) ($	- $ - 1,269 - - - - - 27,447 - 28,716 $ - $ - 10,814 - 784) ( - 10,030 $		14,528 $ 11,163 16,431 4,108 8,534 24,256 - 31,142 27,447 51,367 188,976 $ 2,305) ($ 1,501,202) ( - 800) ( 17,224) ( 19,206) ( 1,540,737) ($

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• D. Expiration dates of unused tax losses and amounts of unrecognized deferred tax assets are as follows:

Expiration dates of follows:	unused tax losses	and amounts of unrecognized deferred tax assets are as	and amounts of unrecognized deferred tax assets are as	and amounts of unrecognized deferred tax assets are as	and amounts of unrecognized deferred tax assets are as
Year incurred 2009 2015 2016 2018 2019 2020 2021 2022 2023 2024	Amount filed/ assessed	Unused amount Unrecognized deferred tax assets Expiry year 14,188 $ 14,188 $ 2029 2,627 2,627 2035 1,172 1,172 2036 60,867 60,867 2028~unlimited 42,231 42,231 2029~unlimited 133,289 133,289 2030~unlimited 177,484 177,484 2031~unlimited 534,412 532,979 2032~unlimited 382,708 379,991 2033~unlimited 32,072 32,072 2034~unlimited 1,381,050 $ 1,376,900 $ December 31,2024 December 31, 2023
	14,188 $ 2,627 1,172 60,867 42,231 133,289 177,484 534,412 382,708 32,072
Year incurred	Amount filed/ assessed 14,188 $ 2,627 1,172 60,867 42,231 133,289 177,484 534,412 382,708		Unused amount		Unrecognized deferred tax assets Expiry year 14,188 $ 2029 2,627 2035 1,172 2036 60,867 2028~unlimited 42,231 2029~unlimited 133,289 2030~unlimited 177,484 2031~unlimited 532,979 2032~unlimited 379,991 2033~unlimited 1,344,828 $
2009 2015 2016 2018 2019 2020 2021 2022 2023			14,188 $ 2,627 1,172 60,867 42,231 133,289 177,484 534,412 382,708 1,348,978 $

• E. The amounts of deductible temporary difference that are not recognized as deferred tax assets are as follows:

Deductible temporary differences

December 31, 2024 December 31, 2023 $ 1,329,939 $ 1,123,881

• F. The Group has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

• G. The current tax expense related to Pillar Two income taxes that the Group recognised for the year ended December 31, 2024 was $83,139 thousand.

• H. The Group’s exposure to Pillar Two income taxes arising from the Pillar Two legislation is as follows:

The Group is within the scope of the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD). Since Pillar Two legislation was enacted in Hong Kong and Thailand, the jurisdiction in which the Group’s subsidiaries are incorporated,

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and will come into effect from January 1, 2025, the Group has no related current tax exposure as of December 31, 2024.

Under the Pillar Two legislation, the Group is liable to pay a top-up tax for the difference between its GloBE effective tax rate per jurisdiction and the 15% minimum rate. The Group’s subsidiaries, MEST, MTHK and METC, are incorporated in Hong Kong, Hong Kong and Thailand, respectively. The average effective tax rate is lower than 15%, and the Group is exposed to Pillar Two income taxes under the Group’s assessment. And, the Group is in the process of assessing its exposure to the Pillar Two legislation for when it comes into effect. For Hong Kong and Thailand jurisdiction, the average effective tax rate calculated based on accounting profit is 0%, 0% and 7.83%, respectively, the income tax expense is $0, $0 and $20,927 thousand, respectively, and accounting profit is $278,561 thousand, $224,429 thousand and $267,412, respectively, constituting 9%, 7% and 8% of the Group’s accounting profit, for the year ended December 31, 2024. However, due to the complexities in applying the legislation and calculating GloBE income as well as the impact of specific adjustments envisaged in the Pillar Two legislation which give rise to different effective tax rates compared to those calculated in accordance with IAS 12, the quantitative impact of the enacted or substantively enacted legislation is not yet reasonably estimable. The Group is currently engaged with tax specialists to assist it with applying the legislation.

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

• J. The corporate income tax returns for Merry Healthcare Co., Ltd. Taiwan Branch (CAYMAN) through 2023 have been assessed and approved by the tax authority.

• K. The corporate income tax returns for Fulicare Co., Ltd. Taiwan Branch (SAMOA) through 2023 have been assessed and approved by the tax authority.

• L. MUtek Electronics Co., Ltd’s income tax returns through 2022 have been assessed and approved by the Tax Authority.

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(28) Earnings per share

Earnings per share
Basic earningsper share Profit attributable to ordinary shareholders of the parent Diluted earnings pershare Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Convertible bonds Employee restricted shares Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount aftertax Weighted average number of ordinary shares outstanding (share in thousands) Earnings per share(in dollars) 2,143,258 $ 231,541 9.26 $ 2,143,258 $ 231,541 - 3,009 33,319 23,966 - 1,498 2,176,577 $ 260,014 8.37 $ YearendedDecember31,2024
		9.26 $ 8.37 $

(Remainder of page intentionally left blank)

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(29)Supplemental cash flow information A. Investing activities with partial cash flow effects B. Financing activities with no cash flow effects Amount aftertax Weighted average number of ordinary shares outstanding (share in thousands) Earnings per share(in dollars) Basic earnings pershare Profit attributable to ordinary shareholders of the parent 1,320,318 $ 214,371 6.16 $ Diluted earningsper share Profit attributable to ordinary shareholders of the parent 1,320,318 $ 214,371 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 1,967 Convertible bonds 22,818 27,125 Employee restricted shares - 1,364 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 1,343,136 $ 244,827 5.49 $ YearendedDecember31,2023 2024 2023 Purchase of property, plant and equipment 861,494 $ 508,436 $ Add: Beginning balance of payable on equipment 71,416 105,829 Ending balance of prepayments for equipment 827 2,571 Less: Beginning balance of prepayments for equipment 2,571) ( 14,975) ( Ending balance of payable on equipment 127,331) ( 71,416) ( Cash paid during the year 803,835 $ 530,445 $ Years endedDecember31 2024 2023 Convertible bonds being converted to common stocks 2,993,002 $ - $ Years endedDecember31	(29)Supplemental cash flow information A. Investing activities with partial cash flow effects B. Financing activities with no cash flow effects Amount aftertax Weighted average number of ordinary shares outstanding (share in thousands) Earnings per share(in dollars) Basic earnings pershare Profit attributable to ordinary shareholders of the parent 1,320,318 $ 214,371 6.16 $ Diluted earningsper share Profit attributable to ordinary shareholders of the parent 1,320,318 $ 214,371 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 1,967 Convertible bonds 22,818 27,125 Employee restricted shares - 1,364 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 1,343,136 $ 244,827 5.49 $ YearendedDecember31,2023 2024 2023 Purchase of property, plant and equipment 861,494 $ 508,436 $ Add: Beginning balance of payable on equipment 71,416 105,829 Ending balance of prepayments for equipment 827 2,571 Less: Beginning balance of prepayments for equipment 2,571) ( 14,975) ( Ending balance of payable on equipment 127,331) ( 71,416) ( Cash paid during the year 803,835 $ 530,445 $ Years endedDecember31 2024 2023 Convertible bonds being converted to common stocks 2,993,002 $ - $ Years endedDecember31	(29)Supplemental cash flow information A. Investing activities with partial cash flow effects B. Financing activities with no cash flow effects Amount aftertax Weighted average number of ordinary shares outstanding (share in thousands) Earnings per share(in dollars) Basic earnings pershare Profit attributable to ordinary shareholders of the parent 1,320,318 $ 214,371 6.16 $ Diluted earningsper share Profit attributable to ordinary shareholders of the parent 1,320,318 $ 214,371 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 1,967 Convertible bonds 22,818 27,125 Employee restricted shares - 1,364 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 1,343,136 $ 244,827 5.49 $ YearendedDecember31,2023 2024 2023 Purchase of property, plant and equipment 861,494 $ 508,436 $ Add: Beginning balance of payable on equipment 71,416 105,829 Ending balance of prepayments for equipment 827 2,571 Less: Beginning balance of prepayments for equipment 2,571) ( 14,975) ( Ending balance of payable on equipment 127,331) ( 71,416) ( Cash paid during the year 803,835 $ 530,445 $ Years endedDecember31 2024 2023 Convertible bonds being converted to common stocks 2,993,002 $ - $ Years endedDecember31
		2023
		- $

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(30) Changes in liabilities from financing activities

)Government grants At January 1, 2024 Changes in cash flow from financing activities Additions Redemption of corporate bond Impact of changes in foreign exchange rate Amortisation of discounts on corporate bonds Changes in capital surplus Changes in other non-cash items At December 31, 2024 At January 1, 2023 Changes in cash flow from financing activities Additions Impact of changes in foreign exchange rate Amortisation of discounts on corporate bonds Changes in other non-cash items At December 31, 2023 MECL MEHO ASCX Others	Short-term borrowings	Lease liability	Convertible bond 2,982,261 $ 3,114,036 - 4,000) ( - 40,752 280,733) ( 2,996,038) ( 2,856,278 $ Convertible bond	Convertible bond 2,982,261 $ 3,114,036 - 4,000) ( - 40,752 280,733) ( 2,996,038) ( 2,856,278 $ Convertible bond	Long-term borrowings (including those matured within one year)	Dividends payable	Dividends payable	Other non- current liabilities	Liabilities from financing activities-gross
	1,133,099 $ 778,448) ( - - 12,008 - - - 366,659 $ Short-term borrowings	173,020 $ 126,845) ( 65,186 - 1,884 - - 2,893 116,138 $ Lease liability			1,449,356 $ 931,774) ( - - 7,820 - - - 525,402 $ Long-term borrowings (including those matured within one year)	- $ 1,030,914) ( 1,030,914 - - - - - - $ Dividends payable		11,963 $ 18,075 - - 363 - - 1,250) ( 29,151 $ Other non- current liabilities	5,749,699 $ 264,130 1,096,100 4,000) ( 22,075 40,752 280,733) ( 2,994,395) ( 3,893,628 $ Liabilities from financing activities-gross
	2,146,851 $ 986,313) ( - 27,439) ( - - 1,133,099 $	208,436 $ 134,976) ( 93,901 4,004 - 1,655 173,020 $	2,953,838 $ - - - 28,523 100) ( 2,982,261 $ $ $		1,356,447 $ 98,943 - 6,034) ( - - 1,449,356 $ Years	- $ 26,413 $ 981,235) ( 13,583) ( 981,235 - - 154) ( - - - 713) ( - $ 11,963 $ ended December 31			6,691,985 $ 2,017,164) ( 1,075,136 29,623) ( 28,523 842 5,749,699 $ 73,080 8,135 9,431 5,784 96,430
					2024		2023
				$			$
				$			$

(31) Government grants

This refers to the subsidies granted by local governments, such as the Industry and Information Technology Bureau of Shenzhen Municipality, the Longhua District Industry and Information Technology Bureau, the Culture, Radio, Television, Tourism and Sports Bureau of Shenzhen Municipality and Commerce Bureau of Shenzhen Municipality. Other subsidies are lower than 5% of total government grants, therefore, they are not disclosed individually.

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Name

MERRY ELECTRONICS(SUZHOU)CO.,LTD (MECE) MERRY ELECTRONICS (HUIZHOU)CO.,LTD. (MECH) DONPON PRECISION INC. Donyun plastic Manufactory Co., Ltd. SYNergy ScienTech Corp. Merry Fuling Co., Ltd. Taiwab Branch (MHNCTW) Luxshare Co., Ltd. Luxshare Precision Limited Luxshare Precision Industry Co., Ltd Luxshare Electronic Technology (Kunshan) Co., Ltd. Dongguan Luxshare Precision Industry Co., Ltd. Luxshare Precision Industry (Chuzhou), Ltd. LUXSHARE PRECISION SINGAPORE PTE. LT Luxshare Precision (Ngee Ann) Company Limited. Taiwan Reading Culture Foundation

Relationship Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company (Note 1) Other related party Other related party (Note 2) Other related party (Note 2) Other related party (Note 2) Other related party (Note 2) Other related party (Note 2) Other related party (Note 2) Other related party (Note 2) Other related party (Note 2) Other related party (Note 3)

Note 1 : The Company acquired a directorship seat of SYNergy ScienTech Corp on May 30, 2024. Note 2 : A corporate director of the Group’s subsidiary, MEVN, and the entity both belong to Luxshare Group.

Note3: The chairman of the Company and of the foundation is the same person.

(2) Significant related party transactions

A. Operating revenue

(2)Significant related party transactions A.Operating revenue
Sales of goods: Luxshare Precision Singapore PTE.LT Luxshare Precision Limited Other related party Affiliated company Total	2024 2023 1,093,244 $ 36,401 $ 175,585 279,638 34,894 3,055 13,177 9,622 1,316,900 $ 328,716 $ Years endedDecember31,
	2024 1,093,244 $ 175,585 34,894 13,177 1,316,900 $

The prices of goods sold to related parties are based on the different product’s profitability and adjusted annually as there is no comparable transaction for the goods sold to the third parties, and the prices of purchases on behalf of related parties are based on the cost plus mark-ups of 2 to 3%. The credit terms to related parties are 60 to 120 days end of month and 30 to 120 days end of month to the third parties.

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B. Purchases

Purchases
		Years ended	December31,
		2024		2023
Purchases of goods
MECE	$	10,225,885	$	9,439,736
MECH		4,785,774		4,479,454
Affiliated company		1,349,117		121,965
Other related party		612,433		100,759
Total	$	16,973,209	$	14,141,914

Associates and other related parties are the Group’s manufacturers of products, and the price is made individually based on the profitability of different products. The price will be adjusted once a year. Because the Group does not purchase similar products from non-related parties, no similar transaction can be comparable. The credit terms to associates and other related parties is 60 days to 120 days after monthly billings; and the credit terms to non-related parties is 30 days to 120 days after monthly billings.

C. Receivables from related parties

days after monthly billings. Receivables from related parties
Accounts receivable LUXSHARE PRECISION SINGAPORE PTE.LT Other related party Affiliated company Total Other receivables MECH Affiliated company Total	December31,2024 440,299 $ 32,101 2,622 475,022 $ 305,794 $ 1,391 307,185 $	December31,2023
		35,396 $ 119,250 1,167
		155,813 $
		173,392 $ 194
		173,586 $

Other receivables mainly were the purchases of raw materials and dividends receivable on behalf of MECH and MECE.

D. Payables to related parties

of MECH and MECE. Payables to related parties
Accounts payable MECE MECH Affiliated company Other related party Total Other payables Affiliated company Other related party Total	December31,2024 1,951,430 $ 616,296 557,845 210,394 3,335,965 $ 98,054 $ 14,326 112,380 $	December31,2023
		2,000,045 $ 551,324 420,685 51,063
		3,023,117 $
		65,660 $ 235
		65,895 $

Other payables were mainly mold developing expense that MECE paid on behalf of the parent company.

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E. Equipment payables

Equipment payables
		Years ended	December31,
		2024		2023
MECH	$	3,172	$	-
Property transactions
a) Acquisition of property, plant and equipment:
		Years ended	December 31,
		2024		2023
MECH	$	2,913	$	7,847
Other related party		387		441
Total	$	3,300	$	8,288

• F. Property transactions

• (a) Acquisition of property, plant and equipment:

• (b) Disposal of property, plant and equipment: Year ended December 31, 2023: None.

b) Disposal of property, plant and equipment: Year ended December 31, 2023: None. MECH Other related party Total	2,913 $ 7,847 $ 387 441 3,300 $ 8,288 $
Other income MECH Luxshare CO., Ltd	Disposal proceeds Gain (loss) on disposal 102 $ 9 $ 2024 Years ended December 31, Years ended December 31,
	2024 2023 - $ 157,006 $

• G. Other income

Other revenue is the billing to Luxshare CO., Ltd. For the compensation, it was fully collected. (3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Share-based payments	Years endedDecember31,
	2024 149,898 $ 204 17,746 167,848 $	2023
		98,379 $ 199 31,997
		130,575 $

8. PLEDGED ASSETS

PLEDGED ASSETS
Pledged asset Property, plant and equipment	December 31, 2024 December31,2023 138,972 $ 141,272 $ Bookvalue	Purpose
	December 31, 2024 138,972 $
		Long-term borrowings

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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

Capital expenditures contracted for at the balance sheet date but not yet incurred is as follows:

	December	31,2024	December	31,2023
Property, plant and equipment	$	456,503	$	20,752
Intangible assets		1,370		3,056
	$	457,873	$	23,808

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Refer to Note 6(20)F. for details of the appropriation of 2024 retained earnings.

12. OTHERS

(1) Capital management

The Company’s capital management is to ensure it has sufficient financial resource and operating plans to meet operational capital for future needs, capital expenditure, research and development expense, obligation repayment and dividend distribution within the next year.

The Company monitors capital by reassessing debt ratios periodically. The debt ratios as at December 31, 2024 and 2023 were as follows:

December 31, 2024 and 2023 were as follows:
Financial instruments A. Financial instruments by category Total debt Total assets Debt ratio Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument	December31,2024 December31,2023 19,926,554 $ 19,128,870 $ 39,119,921 32,611,193 51% 59% December31,2024 December31,2023 699,551 $ 602,408 $ 338,120 $ 474,729 $
A.
		602,408 $
		474,729 $

(2) Financial instruments

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==> picture [468 x 29] intentionally omitted <==

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

December 31, 2024 December 31, 2023
Financial assets
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Financial assets	December31,2024	December31,2023
Financial assets at amortised cost/Loans and receivables Cash and cash equivalents Financial assets at amortised cost Accounts receivable (including due from related parties) Other receivables (including due from related parties) Guarantee deposits paid Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities held for trading Short-term borrowings Accounts payable (including payable to related parties) Other accounts payable (including payable to related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including those maturing within one year) Gurantee deposits received	8,586,894 $ 639,409 11,709,469 382,903 52,989 21,371,664 $ - $ 366,659 10,423,379 1,718,469 116,138 2,856,278 525,402 10,214 16,016,539 $	5,526,722 $ 935,966 9,380,288 342,776 54,496
		16,240,248 $
		1,726 $ 1,133,099 8,539,418 1,451,829 173,020 2,982,261 1,449,356 7,643
		15,738,352 $

B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. 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) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, RMB and HKD. Foreign exchange risk arises from

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future commercial transactions and recognized assets and liabilities.

• ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD expenditures. Forward foreign exchange contracts are adopted to minimize the volatility of the exchange rate affecting cost of forecast inventory purchases.

• iii. The Group hedges foreign exchange rate by using forward exchange contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

• iv. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: USD, RMB, HKD, THB, CAD and MYR). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

• (Remainder of page intentionally left blank)

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(Foreign currency: functional currency) Financial assets Monetary items Cash in banks USD : NTD RMB : NTD USD : HKD USD : RMB USD : THB Receivables USD : HKD USD : NTD USD：RMB USD：THB RMB : NTD Non-monetary items Investments Accounted for Using Equity Method USD：NTD HKD：NTD RMB：NTD Financial liabilities Non-monetary items Bank loan RMB：NTD Payables RMB：NTD USD：NTD USD：RMB	December31,2024	December31,2024		December31,2023	December31,2023
		Bookvalue			Bookvalue
	Foreign currency amount(In thousands) 83,092 $ 120,375 2,212 25,231 2,099 175 $ 300,448 98,332 45,321 44,100 111,801 $ 326,313 3,635 54,064 $ 237,938 $ 287,092 46,072	Exchange rate 32.79 4.48 7.77 7.32 34.07 7.77 32.79 7.32 34.07 4.48 32.79 4.22 4.48 4.48 4.48 32.79 7.32	(NTD)	Foreign currency amount(In thousands) 43,711 $ 93,720 939 8,831 13,868 2,247 $ 310,381 106,964 29,547 - 106,814 $ 327,174 101,360 61,620 $ 255,054 $ 245,114 43,357	Exchange rate 30.71 4.33 7.81 7.10 34.05 7.81 30.71 7.10 34.05 - 30.71 3.93 4.43 4.33 4.33 30.71 7.10	(NTD)
			2,724,171 $ 539,039 72,520 827,198 68,816 5,737 $ 9,850,187 3,223,815 1,485,849 197,480 3,665,410 $ 1,377,693 16,278 242,097 $ 1,065,486 $ 9,412,311 1,510,471			1,342,146 $ 405,526 28,832 271,156 425,817 68,994 $ 9,530,242 3,284,330 907,241 - 3,279,717 $ 1,285,465 438,585 266,630 $ 1,103,619 $ 7,526,225 1,331,277

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(Foreign currency: functional currency) Financial assets Monetary items Cash in banks USD : NTD RMB : NTD USD : HKD USD : RMB USD : THB Receivables USD : HKD USD：NTD USD：RMB USD：THB RMB : NTD Non-monetary items Investments Accounted for Using Equity Method USD：NTD HKD：NTD RMB：NTD Financial liabilities Non-monetary items Bank loan RMB：NTD Payables RMB：NTD USD：NTD USD：RMB		December31,2024			December31,2023	December31,2023
		Sensitivityanalysis			Sensitivityanalysis
	Degree of variation	Effects on profit or loss	Effect on other comprehensive income	Degree of variation	Effects on profit or loss	Effect on other comprehensive income
	3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%	81,725 $ 16,171 2,176 24,816 2,064 172 $ 295,506 96,714 44,575 5,924 - $ - - 7,263 $ 31,965 $ 282,369 45,314	- $ - - - - - $ - - - - 109,962 $ 41,331 488 - $ - $ - -	3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%	40,264 $ 12,166 865 8,135 12,775 2,070 $ 285,907 98,530 27,217 - - $ - - 7,999 $ 33,109 $ 225,787 39,938	- $ - - - - - $ - - - - 98,392 $ 38,564 13,158 - $ - $ - -

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Total exchange gain (loss), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2024 and 2023, amounted to a gain of $372,901 thousand and a loss of $25,335 thousand, respectively.

Price risk

• i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income and available-for-sale financial assets. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 3% with all other variables held constant, post-tax profit for the years ended December 31, 2024 and 2023 would have increased/decreased by $1,292 thousand and $1,375 thousand, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $10,144 thousand and $14,242 thousand, respectively.

Cash flow and fair value Interest rate risk

• i. The Group’s borrowings and investment in debt instruments are measured at amortized cost, fair value through profit or loss and fair value through other comprehensive income. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

• ii. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit (loss), net of tax for the years ended December 31, 2024 and 2023 would have increased/decreased by $1,784 thousand and $5,165 thousand, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

• iii. If the debt instruments interest rate had increased/decreased by 0.25% with all other variables held constant, profit (loss), net of tax for the years ended December 31, 2024 and 2023 would have increased/decreased by $1,297 thousand and $787 thousand, respectively. The main factor is that changes in interest expense result in floating-rate debt instruments.

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(b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group 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. In accordance with the internal and explicit credit policy, each operating entities within the Group shall conduct management and credit risk analysis for each new customer before setting the terms and conditions for payment and delivery. The internal risk control system assesses the credit quality of the customer by taking into account its financial position, past experience and other factors. The limits of individual risks are set by the Board of Directors according to internal or external ratings, and the use of credit limits is regularly monitored. The main credit risk comes from cash and cash equivalents and deposits with banks and financial institutions. It also comes from customers' credit risks and includes outstanding receivables. For banks and financial institutions, only good credit rating agencies will be accepted as trading counterparts.

• iii. For banks and financial institutions, the Group transacts with a variety of banks and financial institutions, mainly domestic and overseas well-known financial institutions, to avoid concentration in any single counterparty and to minimize credit risk. The Group can only enter into the financial services and loan agreement provided by banks and financial institutions after being approved by the Board of Directors or authorized management according to the Company’s delegation of authorization policy. To prevent legal risks, all the Group signs with banks and financial institutions after all documents are examined by counsel or legal advisor profession. The Group periodically checks the credit rating, conditions and quality of service as well as transactions. According to the Group’s operating condition, the credit limits and utilization of credit limits are monitored on a regular basis and maintained within a reasonable range to ensure it meets the needs of the operation.

• iv. The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.

• v. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

• (i) 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.

• (ii) For investments in bonds that are traded over the counter, if any external credit rating agency rates these bonds as investment grade, the credit risk of these financial assets is low.

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• vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• vii. The Group classifies customers’ accounts receivable, contract assets in accordance with credit rating of customer. The Group applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis.

• viii. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

• ix. The Group used the forecastability of adjust historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2024 and 2023, the provision matrix is as follows:

December 31, 2024 Not past due Up to 30 days 31~90 days 91~180 days Over 180 days December 31, 2023 Not past due Up to 30 days 31~90 days 91~180 days Over 180 days	Expectedlossrate 0.02% 2.01% 34.94% 100.00% 100.00% Expected loss rate 0.03% 3.32% 30.57% 100.00% 100.00%	Totalbookvalue 11,190,671 $ 45,293 3,134 3,263 36,744 11,279,105 $ Total bookvalue 9,169,410 $ 58,076 2,535 52 11,241 9,241,314 $	Loss allowance
			2,647 $ 909 1,095 3,263 36,744
			44,658 $
			Loss allowance
			2,843 $ 1,928 775 52 11,241
			16,839 $

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

			2024			2023
	Accountsreceivable			Accounts receivable
At January 1		$	16,839		$	21,447
Reversal of impairment loss			-	(		3,740)
Provision for impairment			28,594			-
Effect of foreign exchange	(		775)	(		868)
At December 31		$	44,658		$	16,839

• xi. For investments in debt instruments at amortized cost and at fair value through other comprehensive income, the credit rating levels are presented below:

Financial assets measured at amortized cost Group 1 Group 2	December 31, 2024 Lifetime 12 months 589,409 $ 50,000 639,409 $	December31,2023
		Lifetime
		12 months
		935,966 $ -
		935,966 $

Group 1: Time deposits designated as investment grade.

Group 2: Debt instruments designated as investment grade

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

• ii Group treasury invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

• iii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

• iv. The Group has $16,200,084 thousand and $15,214,533 thousand in undrawn borrowing facilities as of December 31, 2024 and 2023, respectively.

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December 31,2024 Non-derivative financial liabilities Short-term borrowings Accounts payable Accounts payable -related parties Other payables (including related parties) Lease liabilities Bonds payable Long-term borrowings December 31,2023	Less than 3 months	Between 3 months and 1 year 351,284 $ 1,325,779 132,454 317,576 33,654 - 203,558 Between 3 months and 1 year	Between 1 and 2years	Between 2 and 5years - $ - - - 37,236 3,000,000 18,494 Between 2 and 5years	Over 5 years	Total 370,438 $ 7,087,414 3,335,965 1,718,469 128,324 3,000,000 553,166 Total
	19,154 $ 5,761,635 3,203,511 1,400,893 23,407 - 91,283 Less than 3 months 806,999 $ 4,420,705 2,514,213 1,345,409 22,026 - 109,542 1,726		- $ - - - 26,956 - 177,578 Between 1 and 2years		- $ - - - 7,071 - 62,253 Over 5 years
Non-derivative financial liabilities Short-term borrowings Accounts payable Accounts payable -related parties Other payables (including related parties) Lease liabilities Bonds payable Long-term borrowings Derivative financial liabilities Forward exchange contracts		335,431 $ 1,095,596 508,904 106,420 59,943 2,999,900 371,473 -	- $ - - - 50,440 - 405,080 -	- $ - - - 40,457 - 546,398 -	- $ - - - 13,462 - 98,287 -	1,142,430 $ 5,516,301 3,023,117 1,451,829 186,328 2,999,900 1,530,780 1,726

(3) Fair value information

• 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. The fair value of the Group’s investment in listed stocks, and derivative instruments with quoted market prices is included in Level 1.

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• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in certain derivative instruments and equity instruments is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in certain derivative instruments, equity investment without active market and is included in Level 3.

• B. Financial instruments not measured at fair value

• (1) Except for those listed in the table below, financial instruments not measured at fair value include the carrying amounts of cash and cash equivalents, accounts receivable, other receivables, long-term and short-term bank borrowings, accounts payable and other payables are approximate to their fair values.

to their fair values.
Financial liabilities: Bonds payable Financial liabilities: Bonds payable	Bookvalue 2,856,278 $ Bookvalue 2,982,261 $	Level 1 - $ December December	Level 2 2,760,265 $ 31,2024 Fairvalue 31,2023 Fair value	Level3
				- $
		Level 1 - $	Level 2 2,972,536 $	Level3
				- $

• (2) Bonds payable: They are measured at present value, which is calculated based on the cash flow expected to be paid and discounted using a market rate prevailing at balance sheet date.

• C. 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 as at December 31, 2024 and 2023 is as follows:

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==> picture [460 x 446] intentionally omitted <==

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

December 31, 2024 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
-Equity securities $ $ $ 43,075 $ 43,075
- -
-Forward exchange contracts 7,603 7,603
-Fund 631,374 - - 631,374
-Call options of convertible bonds - - 600 600
-Stock 16,899 - - 16,899
Financial assets at fair value
through other comprehensive income
-Equity securities 105,910 - 232,210 338,120
Total $ 754,183 $ 7,603 $ 275,885 $ 1,037,671
December 31, 2023 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
-Equity securities $ $ $ 45,828 $ 45,828
-Bonds investments - - 280,000 280,000
- -
-Forward exchange contracts 13,166 13,166
-Fund 245,574 - - 245,574
-Stock 17,840 - - 17,840
Financial assets at fair value
through other comprehensive income
-Equity securities 105,206 - 369,523 474,729
Total $ 368,620 $ 13,166 $ 695,351 $ 1,077,137
----- End of picture text -----

• D. 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:

Listed shares Open-end fund Closing price at Net asset value at Market quoted price evaluation date evaluation date

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods.

• iii. Forward exchange contracts are usually valued based on the current forward exchange rate.

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• vi. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

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

• F. The following chart is the movement of Level 3 for the years ended December 31, 2024 and 2023:

			Years ended	December 31,	December 31,	December 31,
			2024			2023
At January 1		$	695,351		$	704,167
Added in the year			-			20,000
Sold in the year	(		280,000)			-
Transferred to investments accounted for
using the equity method	(		124,604)			-
Losses recognised in profit or loss	(		2,152)	(		1,456)
Losses recognised in
other comprehensive income	(		12,710)	(		27,360)
At December 31		$	275,885		$	695,351

• G. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

value measurement:
Fair value at December 31, 2024 Nonderivative equity instrument: Equity securities 158,009 $ Private equity funds in venture capital 43,075 Private placement shares (listed companies) 74,201	Valuation technique Market comparable companies Net asset value Market price method	Significant unobservable input Price to book ration multiple N/A Discount for lack of marketability	Range (weighted average) 1 N/A 34.10%	Relationship of inputs to fair value
				The higher the multiplier, the higher the fair value N/A The higher the discount for marketability, the lower the fair value

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==> picture [507 x 41] intentionally omitted <==

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

Fair value at Significant Range
December 31, unobservable (weighted Relationship of
2024 Valuation technique input average) inputs to fair value
----- End of picture text -----

	Fair value at December 31, 2024	Valuation technique	Significant unobservable input Range (weighted average)	Relationship of inputs to fair value
Call options of convertible bonds Nonderivative equity instrument: Equity securities Private equity funds in venture capital Private placement shares (listed companies) Nonderivative debt instrument: Convertible bonds	600 Fair value at December 31, 2023 136,887 $ 45,828 232,636 280,000 $	Binary tree convertible bond valuation model Valuation technique Market comparable companies Net asset value Market price method Discounted cash flow method	Risk-free interest rate 1.4456%~ 1.4472% Stock price 108.0 Volatility 32.85% Significant unobservable input Range (weighted average) Price to book ration multiple 1 N/A N/A Discount for lack of marketability 15.57%~41.45% Discount rate -	The higher the risk-free interest rate, the lower the fair value The higher the stock price, the higher the fair value The higher the stock price volatility, the higher the fair value Relationship of inputs to fair value
				The higher the multiplier, the higher the fair value N/A The higher the discount for marketability, the lower the fair value The higher the discount rate, the lower the fair value

H. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

have changed:
Financial assets Equity securities	Input Change Price to book ratio multiple ±10%		Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 15,801 $ 15,801) ($ December 31, 2024 Recognised in profit or loss Recognised in other comprehensive income
			Recognised in profit or loss
			Favourable change	Unfavourable change			Favourable change	Unfavourable change
			- $		- $		15,801 $	15,801) ($

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December 31, 2023

	Decembe	Decembe	r31,2023
Input Financial assets Equity securities Price to book ratio multiple	Change Favourable change Unfavourable change ±10% - $ - $ Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change Unfavourable change 13,689 $ 13,689) ($
		- $

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• 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: Please refer to table 4.

• 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: Please refer to table 5.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6.

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).

• J. Significant inter-company transactions during the reporting periods: Purchases or sales of goods from or to related parties reaching $100 million or more: Please refer to table 7.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 8.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 9.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 10.

(4) Major shareholders information

Major shareholders information: None.

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14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the chief operating decision-maker that are used to make strategic decisions. Business organization is divided into Taiwan, Shenzhen, Singapore, Vietnam and other segments based on the operating regions. The Company’s revenue is mainly from manufacturing and sales of microphones, receivers, speakers and other electronic components.

(2) Measurement of segment information

The Group evaluates the performance of the operating segments based on post-tax profit or loss.

• (3) Information about segment profit or loss, assets and liabilities

• A. The segment information provided to the chief operating decision-maker for the reportable segments for the year ended December 31, 2024 is as follows:

			Taiwan			Shenzhen			Singapore			Vietnam			Total
Revenue
Revenue from external customers		$	33,048,803		$	349,197		$	8,052,895		$	1,269,597		$	42,720,492
Inter-segment revenue			14,488			12,018,253			2,695			5,092,687			17,128,123
Revenue total		$	33,063,291		$	12,367,450		$	8,055,590		$	6,362,284		$	59,848,615
Segment profit before tax		$	2,629,932		$	397,472		$	771,781		$	693,629		$	4,492,814
Segment profit contains：
Interest revenue		$	129,009		$	56,335		$	54,449		$	1,743		$	241,536
Interest expense	(		65,745)	(		8,291)	(		395)	(		9,417)	(		83,848)
Depreciation & amortization	(		72,510)	(		372,514)	(		6,547)	(		170,228)	(		621,799)
Income tax (expense) benefit	(		486,674)			14,112	(		131,132)	(		83,394)	(		687,088)
Recognized investment profit
which is adopting equity method			2,079,348	(		268)			383			-			2,079,463

Note: The Group does not use segment information relating to assets and liabilities to evaluate

segment performance. As a result, such assets and liabilities to be disclosed amounted to $0.

• B. The segment information provided to the chief operating decision-maker for the reportable segments for the year ended December 31, 2023 is as follows:

			Taiwan			Shenzhen			Singapore			Vietnam			Total
Revenue
Revenue from external customers		$	26,663,686		$	323,867		$	8,364,498		$	316,039		$	35,668,090
Inter-segment revenue			38,069			9,740,409			-			2,498,732			12,277,210
Revenue total		$	26,701,755		$	10,064,276		$	8,364,498		$	2,814,771		$	47,945,300
Segment profit before tax		$	1,627,212		$	205,676		$	853,467		$	229,982		$	2,916,337
Segment profit contains：
Interest revenue		$	74,498		$	33,513		$	21,931		$	2,201		$	132,143
Interest expense	(		60,738)	(		13,399)	(		582)	(		13,347)	(		88,066)
Depreciation & amortization	(		98,501)	(		458,920)	(		6,876)	(		161,635)	(		725,932)
Income tax (expense) benefit	(		306,894)	(		30,987)	(		132,093)	(		418)	(		470,392)
Recognized investment profit
which is adopting equity method			1,389,335	(		714)	(		7,630)			-			1,380,991

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• Note: The Group does not use segment information relating to assets and liabilities to evaluate segment performance. As a result, such assets and liabilities to be disclosed amounted to $0.

• C. The Group’s reportable operating segments are classified based on the operating regions.

• D. The accounting policies of the operating segments are in agreement with the significant accounting policies summarized in Note 4. The Group’s segment profit (loss) is measured with the current profit (loss) before tax, which is used as a basis for the Group in assessing the performance of the operating segments.

(4) Reconciliation for segment income (loss)

• Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

• A. A reconciliation of revenue after adjustment and total segment revenue from continuing operations is provided as follows:

operations is provided as follows:
			Years ended	December 31,
			2024		2023
Adjusted revenue from reportable segments		$	59,848,615		47,945,300 $
Adjusted revenue from other operating segments			7,553,674		6,183,465
Total operating segments			67,402,289		54,128,765
Elimination of inter-segment revenue	(		23,546,935)	(	17,438,382)
Total consolidated operating revenue		$	43,855,354		36,690,383 $

• B. A reconciliation of adjusted current income before tax and the income before tax from continuing operations is provided as follows:

operations is provided as follows:
			Years ended	December31,
			2024		2023
Adjusted income from reportable		$	4,492,814	$	2,916,337
segments after income tax
Adjusted income (loss) from other operating
segments after income tax			228,452		34,684
Total operating segments			4,721,266		2,951,021
Elimination of inter-segment income	(		1,570,654)	(	1,065,526)
Income from continuing operations
after income tax		$	3,150,612	$	1,885,495

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(5) Information on products and services

Revenues from external customers are mainly manufacturing, processing, repairing and sales of radio apparatus, communication devices, consumer electronics, automatic control system, electronic security systems and fire protection system as well as electronic components; planning, design as well as output of service items’ equipment; production as well as marketing management consultant of service items’ relevant business. Details of revenue are as follows:

Finished goods sales revenue Technical service revenue	2024 2023 43,845,585 $ 36,680,126 $ 9,769 10,257 43,855,354 $ 36,690,383 $ Years ended December 31,

(6) Geographical information

Geographical information for the years ended December 31, 2024 and 2023 is as follows:

US Netherlands Switzerland Denmark China Taiwan Others	Revenue Non-current assets 22,289,538 $ 872 $ 9,052,579 - 5,266,176 - 1,502,557 - 809,843 1,213,860 508,227 1,562,521 4,426,434 2,622,798 43,855,354 $ 5,400,051 $ YearendedDecember31,2024	Revenue Non-current assets 17,314,529 $ 707 $ 8,706,365 - 3,704,526 - 2,816,056 - 798,039 1,503,483 575,871 1,563,840 2,774,997 2,197,032 36,690,383 $ 5,265,062 $ Year ended December 31, 2023
	Revenue 22,289,538 $ 9,052,579 5,266,176 1,502,557 809,843 508,227 4,426,434 43,855,354 $

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2024 and 2023 is as follows:

A B C	Revenue % Segment 16,761,414 $ 38 Taiwan A 10,418,837 24 Taiwan B 5,207,624 12 Taiwan C 32,387,875 $ Year ended December 31, 2024	Revenue % Segment 16,761,414 $ 38 Taiwan A 10,418,837 24 Taiwan B 5,207,624 12 Taiwan C 32,387,875 $ Year ended December 31, 2024	Year ended December	Year ended December	31,2023
	Revenue 16,761,414 $ 10,418,837 5,207,624 32,387,875 $	% 38 24 12	Revenue 13,300,819 $ 10,343,958 3,707,467 27,352,244 $	% 36 28 10	Segment
					Taiwan Taiwan Taiwan

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Table 1

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Loans to others

Year ended December 31, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Interest rate Nature of loan (Note 3) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts Maximum outstanding balance for the year ended December 31,2024 Balance at December 31, 2024 Actual amount drawn down No. Creditor Borrower General ledger account Is a related party	Collateral	Limit on loans granted to a single party (Note 2)	Ceiling on total loans granted (Note 1)	Note
	Item Value
0 MEHO FUXM Other receivables Y 60,000 $ - $ - $ - 2 - $ Purchasing plant - $ 1 MESG MENA Other receivables Y 131,140 - - - 2 - Business operation - 1 MESG MENA Other receivables Y 65,570 65,570 65,570 4.31 2 - Business operation - 1 MESG MENA Other receivables Y 131,140 131,140 77,045 4.35~ 4.83 2 - Business operation - 1 MESG SENM Other receivables Y 49,178 49,178 16,393 3.52 2 - Business operation - 1 MESG SENM Other receivables Y 32,785 32,785 16,393 4.64 2 - Business operation - 2 MECL ASCX Other receivables Y 35,824 - - - 2 - Business operation - 2 MECL ASCX Other receivables Y 35,824 35,824 11,195 3.35 2 - Business operation - 2 MECL FUXM Other receivables Y 58,214 58,214 58,214 3.45 2 - Business operation -	- - $ - - - - - - - - - - - - - - - -	7,207,538 $ 2,651,893 2,651,893 2,651,893 2,651,893 2,651,893 1,556,776 1,556,776 1,556,776	18,018,845 $ 2,651,893 2,651,893 2,651,893 2,651,893 2,651,893 3,891,941 3,891,941 3,891,941

Note 1: (1) The ceiling on MESG total loans to others is MESG’s net assets; for short-term financing, the limit to a single party is 40% of MESG’s net assets.

• (2) The ceiling on MECL total loans to others is MESG’s net assets; for short-term financing, the limit to a single party is 40% of MECL’s net assets.

• (3) For short-term financing between the Company’s wholly-owned subsidiaries, limit on loans is not restricted. Limit on total loans granted to a single party is the net value of MESG.

• (4) For the companies having business relationship with MESG and MECL, financial limit on loans granted to a single party shall not exceed the amount of business transactions occurred between the creditor and borrower.

• (5) Limit on loans to FuliCare (Xiamen) Co., Ltd. (“FUXM”) is 40% of the Company’s net value for the needs of short-term financing.

• Note 2: (1) Having business relationship with the Company, MESG and MECL.

• (2) The needs for short-term financing.

Table 1, Page1

Table 2

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Provision of endorsements and guarantees to others

Year ended December 31, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note 1) Endorser/ guarantor	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount for the year ended December 31, 2024	Outstanding endorsement/ guarantee amount at December 31, 2024	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 4)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
	Companyname Relationship with the endorser/ guarantor (Note 2)
0 MEHO	MENA 2	14,415,076 $	85,241 $	- $	- $	- $	0.00%	18,018,845 $	Y	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1)The Company is ‘0’.

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

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following four categories; fill in the number of category each case belongs to: (1)Having business relationship.

(2)The Company holds over 50% of the voting rights directly or indirectly.

(3)This company holds over 50% of the voting rights of the Company directly or indirectly.

• (4)The Company holds over 90% of the voting rights directly or indirectly.

Note 3: The guarantees and endorsements for a single party should not exceed 80% of the Company’s net assets.

Note 4: The ceiling on total amount of endorsements/guarantees provided to others by the Company is 100% of the Company's net assets.

Table 2, Page 1

Table 3

Expressed in thousands of NTD

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2024

(Except as otherwise indicated)

Securities held by	Marketable securities(Note 1)	Relationship with the securities issuer	General ledger account		As of December 31,2024	Fair value(in thousands) Note
				Number of shares	Book value(in thousands) Ownership (%)
The Company The Company The Company The Company The Company MUTT The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company MEST MEST ASCX The Company	Fund - 76324296A KGI Taiwan Multi-Asset Income Fund A TWD Fund - UPAMC Wealthy Fund Stock - Chailease Holding Company Limited Stock - Foxtron Vehicle Technologies Fund - UPAMC JAMES BOND MONEY MARKET Fund Fund - Taishin 1699 Money Market Fund Fund - JAFCO Fund-WK Technology Stock - 2881B.TW Stock - 2882B.TW Stock - 5871A Stock - 4943.TW Stock - FUJITER Semiconductor CO.,LTD. Stock - NETVOX TECHNOLOGY CO., LTD Stock - EVER THAI AGRI-PRODUCT CO.,LTD. Stock - SUNSINO SME Development Co., Ltd. Stock - LINSATION Intelligent Technology Limited Stock - MERRY FULING CO., LTD., TAIWAN BRANCH (SAMOA) Stock - Perfect Fortune Inc. Stock - LOYAL WIRE& CABLE COMPANY LTD. Stock - Beijing Wanling Hearing Aids Bond - P13 Fubon Life Insurance 1A	- - - - - - - - - - - - - - -	Financial assets mandatorily measured at fair value through profit or loss - current Financial assets mandatorily measured at fair value through profit or loss - current Financial assets mandatorily measured at fair value through profit or loss - current Financial assets mandatorily measured at fair value through profit or loss - current Financial assets mandatorily measured at fair value through profit or loss - current Financial assets mandatorily measured at fair value through profit or loss - current Valuation adjustment Non-current financial assets mandatorily measured at fair value through profit or loss Non-current financial assets mandatorily measured at fair value through profit or loss Valuation adjustment Equity instruments measured at fair value through other comprehensive income - current Equity instruments measured at fair value through other comprehensive income - current Valuation adjustment Equity instruments measured at fair value through other comprehensive income - non-current Equity instruments measured at fair value through other comprehensive income - non-current Equity instruments measured at fair value through other comprehensive income - non-current Equity instruments measured at fair value through other comprehensive income - non-current Equity instruments measured at fair value through other comprehensive income - non-current Equity instruments measured at fair value through other comprehensive income - non-current Equity instruments measured at fair value through other comprehensive income - non-current Valuation adjustment Measured at fair value through other comprehensive income - non-current Measured at fair value through other comprehensive income - non-current Measured at fair value through other comprehensive income - non-current Valuation adjustment Financial assets at amortized cost – non-current	4,015 40,190 $ - 5,000 50,000 - 4 485 - 400 20,480 - 28,828 500,000 - 1,542 21,449 - 632,604 15,669 648,273 $ 870 26,220 $ 0.71% 2,000 20,000 1.78% 46,220 3,145) ( 43,075 $ 683 40,980 $ - 585 35,100 - 300 30,000 - 106,080 170) ( 105,910 $ 7,712 648,164 $ 6.34% 2,126 27,811 9.79% 324 2,976 1.32% 683 6,425 4.64% 169 2,123 0.36% 75 8,772 6.19% 356 10,437 19.00% 706,708 596,149) ( 110,559 $ 2,126 8,978 $ 18.33% 1,159 8,654 18.33% - 4,926 19.64% 22,558 99,093 121,651 $ - 50,000 $ -		50,670 $ 57,493 439 16,460 501,398 21,813 648,273 $ 23,185 $ 19,890 43,075 $ 41,322 $ 35,158 29,430 105,910 $ 74,201 $ 17,027 - 2,351 2,606 3,037 11,337 110,559 $ 93,757 $ 22,968 4,926 121,651 $ 50,000 $

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9.

Table 3, Page1

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES Acquisition of real estate reaching $300 million or 20% of paid-in capital or more December 31, 2024

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status ofpayment	Counterparty	Relationship with the counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate Other commitments
							Original owner Relationship between the original owner and the acquirer Date of the original transaction Amount
METC	Plant	October 29, 2024	538,000 $	230,371 $	Booncharoensap Co. Ltd.	None	- - - - $	-	For operating use -

Table 4, Page1

Table 5

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

Year ended December 31, 2024

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationshipwith the counterparty			Transaction	Transaction	Differences in transaction terms compared to thirdpartytransactions(Note 1)	Differences in transaction terms compared to thirdpartytransactions(Note 1)	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Note
			Purchases (sales)	Amount	total purchases (sales)	Credit term	Unitprice	Credit term	Balance(Note 2)	notes/accounts receivable(payable)
The Company The Company The Company The Company The Company METC MESG MESG MESG METC METC MECL MEVN MEVN MEVN	MECL MEVN MSCS MECH MECE The Company MECL METC MECH DONPON SYNergy ScienTech Corp DONPON LUXSHARE PRECISION SINGAPORE PTE.LT Luxshare Precision Limited The Company	A subsidiary of the Company A subsidiary of the Company A subsidiary of the Company Investment accounted for using the equity method Investment accounted for using the equity method Parent Company Parent Company Parent Company Associates Associates Associates Associates Associates Associates Parent Company	Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Sales Sales Purchases	11,026,896 $ 5,089,017 110,121 4,615,142 10,225,885 3,663,126 1,027,973 5,959,809 127,652 744,871 110,692 397,326 1,093,244 175,585 545,829	25% 12% 0% 11% 23% 8% 2% 14% 0% 2% 0% 1% 2% 0% 1%	60~65 days end of month after offsetting with accounts receivable 60~65 days end of month after offsetting with accounts receivable 60~65 days end of month after offsetting with accounts receivable 60~65 days end of month after offsetting with accounts receivable 60~65 days end of month after offsetting with accounts receivable 60~120 days end of month after offsetting with accounts receivable 60~65 days end of month after offsetting with accounts receivable 60~120 days end of month after offsetting with accounts receivable 60~65 days end of month after offsetting with accounts receivable 120 days end of month after offsetting with accounts receivable 120 days end of month after offsetting with accounts receivable 120 days end of month after offsetting with accounts receivable 60~120 days end of month after offsetting with accounts payable 60~120 days end of month after offsetting with accounts payable 60~65 days end of month after offsetting with accounts receivable	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1)	30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties 30~120 days end of month for the third parties	3,711,978) ($ 1,947,949) ( 45,624) ( 591,514) ( 1,951,430) ( 1,490,410) ( 177,756) ( 1,395,963) ( - 262,657) ( 70,806) ( 148,017) ( 440,299 21,375 166,021) (	36% 19% 0% 6% 19% 14% 2% 13% 0% 3% 1% 1% 4% 0% 2%	(Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3)

Note 1: For purchase transactions with related parties, the price is based on the profitability of the product and will be adjusted annually. Note 2: The balance is the net amount after offsetting accounts receivable and payable due from/ to related parties. Note 3: Inter-company transactions between companies within the Group are eliminated.

Table 5, Page1

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

December 31, 2024

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationshipwith the counterparty	Balance of accounts receivable due from relatedparty	Balance of accounts receivable due from relatedparty	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note 2)	Allowance for doubtful accounts	Note
			General ledger account	Amount		Amount	Action taken
The Company The Company MECL MECL METC MEVN MEVN The Company MEST MESG	METC MEVN The Company MESG MESG The Company LUXSHARE PRECISION SINGAPORE PTE.LT MEST MECH MENA	A subsidiary of the Company A subsidiary of the Company Parent Company A subsidiary of the Company A subsidiary of the Company Parent Company A other related party of the Group A subsidiary of the Company Investment accounted for using the equity method A subsidiary of the Company	Other Receivable Other Receivable Accounts Receivable Accounts Receivable Accounts Receivable Accounts Receivable Accounts Receivable Other Receivable Other Receivable Other Receivable	1,490,410 $ 166,021 3,711,978 177,756 1,395,963 1,947,949 440,299 218,903 201,603 142,615	- - 3.12 3.86 5.18 3.41 4.60 - - -	- $ - - - - - - - - -	- - - - - - - - - -	911,436 $ 86,816 1,603,599 124,887 985,644 1,163,577 254,147 201,603 201,603 -	- $ - - - - - - - - -	(Note 1、3) (Note 1、3) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1、3) (Note 3) (Note 1、3)

Note 1: Inter-company transactions between companies within the Group are eliminated.

Note 2: The balance was as at February 26, 2025.

Note 3: The amount comprises other receivables and thus, the turnover rate is not calculated.

Table 6, Page1

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Table 7

Significant inter-company transactions during the reporting periods

Year ended December 31, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

						Transaction
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 0 1 1 2 2 3 3 3 3	MEHO MEHO MEHO MEHO MEHO MEHO METC METC MEVN MEVN MESG MESG MESG MESG	MECL MECL MEVN MEVN MSCS MSCS MEHO MEHO MEHO MEHO MECL MECL METC METC	1 1 1 1 1 1 2 2 2 2 3 3 3 3	Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable	11,026,896 $ 3,711,978 5,089,017 1,947,949 110,121 45,624 3,663,126 1,490,410 545,829 166,021 1,027,973 177,756 5,959,809 1,395,963	The price is based on the profitability of the product 60~65 days end of month after offsetting with accounts receivable The price is based on the profitability of the product 60~65 days end of month after offsetting with accounts receivable The price is based on the profitability of the product 60~65 days end of month after offsetting with accounts receivable The price is based on the profitability of the product 60~65 days end of month after offsetting with accounts receivable The price is based on the profitability of the product 60~65 days end of month after offsetting with accounts receivable The price is based on the profitability of the product 60~120 days end of month after offsetting with accounts receivable The price is based on the profitability of the product 60~65 days end of month after offsetting with accounts receivable	25% 9% 12% 5% 0% 0% 8% 4% 1% 0% 2% 0% 14% 4%

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’.

3. Note 2: Relationship between transaction company and counter party is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries

4. or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

5. Parent company to subsidiary.

6. Subsidiary to parent company.

7. Subsidiary to subsidiary.

8. 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 7, Page1

Information on investees Year ended December 31, 2024

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Investor Table 8	Investee	Location	Main business activities	Initial investment amount	Shares held as at December 31,2024	Net profit (loss) of the investee for the year ended December 31,2024	Investment income (loss) recognised by the Company for the year ended December 31,2024 Note Expressed in thousands of NTD (Except as otherwise indicated)
				Balance as at December 31,2024 Balance as at December 31,2023	Number of shares (in thousand shares) Ownership (%) Book value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company MESG MCTT DDBV MHKY INSA MENA	MEST DDBV LEOHAB ENTERPRISE CO.,LTD. DONPON PRECISION INC. SYNergy ScienTech Corp MECA MESG METC MHKY INSA MEVN MUTT MCTT MAC FUND MEMP MAC FUND MTHK FUSA MENA SENM	HONG KONG British Virgin IS. Taichung City Taoyuan City Hsinchu City U.S.A SINGAPORE THAILAND CAYMAN SAMOA VIETNAM New Taipei City Taichung City Taipei City Malaysia Taipei City HONG KONG SAMOA CANADA NORWAY	Sales of microphone, receiver and speaker General investment business Plastic injection molding and metal stamping Various plastic products, mold manufacturing and processing and trading business Research, development, manufacture and sale of secondary lithium batteries Technique, marketing and after service Sales of microphone, receiver and speaker Microphone, components and product and sale of other electric products General investment business General investment business Manufacture of microphone and speaker Electrical appliances and audiovisual electronic products General investment business General investment business Research and development of microphone, receiver and speaker General investment business General investment business General investment business Sale and development of speaker and power amplifier Manufacture and sales of speaker monomer	733,733 $ 733,733 $ 1,479,925 1,479,925 79,689 79,689 386,010 386,010 135,869 - 28,887 28,887 92,132 92,132 484,358 484,358 857,946 857,946 1,293,008 1,293,008 366,710 366,710 30,600 30,600 8,000 8,000 149,333 123,733 15,969 15,969 3,500 2,900 1,392,956 1,392,956 795,943 795,943 92,445 92,445 23 23	19,658 100.00% 5,427,109 $ 48,005 100.00% 3,665,620 4,036 13.81% 76,954 19,723 15.31% 482,410 7,300 7.79% 136,149 999 99.90% 37,730 800 100.00% 2,651,893 5,060 99.99% 1,183,631 27,992 100.00% 301,700 302 100.00% 309,136 - 51.00% 1,154,813 3,060 51.00% 12,861 800 100.00% 10,660 - 42.67% 156,199 2,400 100.00% 9,656 - 1.00% 3,662 48,000 100.00% 3,665,410 27,160 96.01% 304,959 56,954 100.00% 80,069) ( - 100.00% 47,519	690,145 $ 224,429 213,773 251,080 9,571 125 640,649 246,485 11,814 157,496) ( 610,235 6,165) ( 2,233 38,581 383 38,581 224,429 11,906 131,276) ( 6,496	683,230 $ (Note 1) 251,049 (Note 1) 36,985 39,291 (Note 1) 851 (Note 1) 125 640,649 247,690 (Note 1) 11,814 157,496) ( 296,582 (Note 1) 3,144) ( 2,233 16,462 - (Note 2) 385 - (Note 2) - (Note 2) - (Note 2) - (Note 2)

Note 1: The investment income included unrealised gains or losses and realised gains arising from upstream transactions. Note 2: The investee is second subsidiary and investment income (loss) is not shown. Note 3: Please refer to Note 4 (3).

Table 8, Page1

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

Information on investees in Mainland China

Year ended December 31, 2024

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2024	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2024	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2024	Net income of investee for the year ended December 31,2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2024	Book value of investments in Mainland China as of December 31, 2024 (Note 4)	Accumulated amount of investment income remitted back to Taiwan as of December 31,2024 Note
					Remitted to Mainland China Remitted back to Taiwan
MEDG MSCS MECL MECE MECS MECH FUSZ ETCX ASCX	Research and development of sound equipment, earphones, mobile power supply, charging box, cable, connector, electronic components, plastic hardware, Manufacture of speaker and amplifier Microphone, receiver, speaker, security system, induction cooker and other electronic component Manufacture and sales of microphone, receiver and speaker International trade, transit trade and trading consulting; trading amongst companies in bonded area and trading agency in the area Manufacture and sales of microphone, receiver, speaker and mobile phone Manufacture of medical device Retail sales of hearing products Manufacture and sales of hearing aid, hearing device and acoustics equipment	895,600 $ 154,816 426,950 2,802,059 7,432 455,232 287,413 20,151 117,490	(Note 1) (Note 1) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)	452,564 $ 110,497 453,191 1,369,285 6,055 420,687 310,763 19,009 315,461	- $ 452,564) ($ - - - - - - - - - - - - - - - -	- $ 110,497 453,191 1,369,285 6,055 420,687 310,763 19,009 315,461	5,473 $ 10,346 411,584 458,013 1 586,519 2,309) ( 6,817) ( 38,296	49.00% 100.00% 100.00% 49.00% 49.00% 49.00% 96.01% 96.01% 95.53%	2,682 $ 10,346 411,584 251,048 - 269,558 2,216) ( 6,545) ( 36,584	- $ 148,143 3,891,941 3,665,410 - 1,377,693 242,789 38,415) ( 57,880	- $ (Note 5) - 2,282,120 (Note 3) 295,185 (Note 3) 40,321 (Note 5) 213,003 (Note 3) - (Note 3) - (Note 3) - (Note 3)

Table 9, Page1

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Information on investees in Mainland China

Year ended December 31, 2024

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2024	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2024	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2024	Net income of investee for the year ended December 31,2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2024	Book value of investments in Mainland China as of December 31, 2024 (Note 4)	Accumulated amount of investment income remitted back to Taiwan as of December 31,2024 Note
					Remitted to Mainland China Remitted back to Taiwan
FUXM DONG GUAN GET PINK	Sales of medical device Manufacture and sales of earphones and speaker	311,817 $ 70,529	(Note 2) (Note 2)	302,995 $ -	- $ - $ - -	302,995 $ -	2,863 $ 929) (	96.01% 33.00%	2,749 $ 268) (	27,334 $ 16,278	- $ (Note 3) - (Note 3)

Note 1: Reinvesting in the investee in Mainland China through the parent company.

Note 2: Through investing in an existing company in the third area, which then invested in the investee in Mainland China. Note 3: The financial statements that are audited and attested by R.O.C. parent company’s CPA. Note 4: The amount in the table is translated into New Taiwan dollars at the closing exchange rates prevailing at the balance sheet date. Note 5: Please refer to Note 6 (7).

Companyname Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2024 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
Merry Electronics Co., Ltd. 3,307,943 $ 4,178,588 $	10,811,307 $

Note 1: (2001) Tai-Cai-Zheng (1) Letter No. 006130 of Securities and Futures Commission, Ministry of Finance, R.O.C

Table 9, Page2

Table 10

MERRY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

Year ended December 31, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Counterparty	Sale(purchase)	Sale(purchase)	Propertytra	nsaction	Accounts receivabl	e(payable)	Provision of endorsements/guarantees or collaterals	Provision of endorsements/guarantees or collaterals		Financing	Financing		Others
		Amount	%	Amount	%	Balance at December 31,2024	%	Balance at December 31,2024	Purpose	Maximum balance during the year ended December 31,2024	Balance at December 31,2024	Interest rate	Interest during the year ended December 31,2024
MECL MECL MECE MECH MECH MSCS	MEHO MESG MEHO MEHO MESG MEHO	11,026,896) ($ 1,027,973) ( 10,225,885) ( 4,615,142) ( 127,652) ( 110,121) (	25% 2% 23% 11% 0% 0%	- $ - - - - -	- - - - - -	3,711,978) ($ 177,756) ( 1,951,430) ( 591,514) ( - 45,624) (	36% 2% 19% 6% 0% 0%	- $ - - - - -	- - - - - -	- $ - - - - -	- $ - - - - -	- - - - - -	- $ - - - - -	- - - - - -

Table 10, page1