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MOBILETRON ELECTRONICS CO., LTD.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2025 AND 2024

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.

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES
DECEMBER 31, 2025 AND 2024 CONSOLIDATED FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS’ REPORT
TABLE OF CONTENTS

Contents	Page
1. Cover Page	1
2. Table of Contents	2 ~ 3
3. Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4. Independent Auditors’ Report	5 ~ 12
5. Consolidated Balance Sheets	13 ~ 14
6. Consolidated Statements of Comprehensive Income	15
7. Consolidated Statements of Changes in Equity	16
8. Consolidated Statements of Cash Flows	17 ~ 18
9. Notes to the Consolidated Financial Statements	19 ~ 110
(1) History and Organization	19
(2) The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation	19
(3) Application of New Standards, Amendments and Interpretations	19 ~ 21
(4) Summary of Material Accounting Policies	21 ~ 37
(5) Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty	37

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Contents

Contents	Page
(6) Details of Significant Accounts	38 ~ 86
(7) Related Party Transactions	86 ~ 88
(8) Pledged Assets	88
(9) Significant Contingent Liabilities and Unrecognised Contract Commitments	89 ~ 90
(10) Significant Disaster Loss	90
(11) Significant Events after the Balance Sheet Date	90
(12) Others	90 ~ 106
(13) Supplementary Disclosures	106 ~ 107
(14) Segment Information	107 ~ 110

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Mobiletron Electronics Co., Ltd.
Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2025, pursuant to “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the entity that is required to be included in the consolidated financial statements of affiliates, is the same as the entity required to be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standards 10. Also, if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare separate consolidated financial statements of affiliates.

Hereby declare.

Company name: Mobiletron Electronics Co., Ltd.

Legal Representative: Kim Y.C. Tsai

March 10, 2026

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INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Shareholders of Mobiletron Electronics Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Mobiletron Electronics Co., Ltd. and subsidiaries (the "Group") as at December 31, 2025 and 2024, 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 (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, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and 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 Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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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 2025 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 2025 consolidated financial statements are stated as follows:

Valuation of inventory

Description

Refer to Note 4(14) to the consolidated financial statements for the accounting policies related to inventory valuation, Note 5(2) for the critical accounting estimates and assumptions related to inventory valuation, and Note 6(5) for the description of inventory items. The Group’s total inventory and allowance for inventory valuation loss as at December 31, 2025 were NT$1,853,726 thousand and NT$352,922 thousand, respectively.

The main business activities of the Group are the manufacturing and sales of automotive electronic components, power tools and various electric buses. Due to the rapid changes in technology, there is a high risk of loss on inventory valuation or obsolescence. Inventory is measured at the lower of cost and net realizable value. For inventories that have exceeded a certain inventory age and those individually identified as obsolete, a provision is made for allowance for inventory valuation loss based on the net realizable value of inventory items.

As the Group has diversified products and various types of inventories, the net realizable value used in evaluating outdated and obsolete inventory items and their valuation often involves subjective judgment and has a high degree of estimation uncertainty and the balances of inventory and allowance for inventory valuation loss are significant to the financial statements, we considered the valuation of inventory as one of the key audit

matters for this year’s audit.

How our audit addressed the matter

We performed the following audit procedures with respect to the above key audit matter:

Obtained an understanding and evaluated the operating procedures and internal controls for the assessment of and the provision for allowance for inventory valuation losses and performed tests on such controls.
Reviewed the annual inventory plan and participated in the annual stocktaking to evaluate the effectiveness of management in distinguishing and controlling obsolete inventory.
Obtained the inventory aging report and checked the related supporting documents on the date of the inventory change to confirm whether the inventory age range is correctly classified and consistent with its policy.
Obtained the report on the net realizable value of each inventory, confirmed whether the calculation logic is consistently adopted, tested the basis for the estimation of the net realizable value of inventory, including checking the sales price, purchase price and other supporting documents, and recalculated and evaluated the rationality of the inventory valuation.

Appropriateness of revenue recognition for electric buses

Description

Refer to Note 4(30) to the consolidated financial statements for the accounting policies related to revenue recognition, Note 5(2) for the uncertainty in accounting estimates and assumptions for revenue recognition, and Note 6(25) for the details of sales revenue. The main business activity of the subsidiary - RAC Electric Vehicles Inc. (hereinafter referred to as "RAC") is the manufacturing and sales of various electric buses. Under the sales contract, part of the payment must be made after the government subsidy is paid to the buying customer regarding the sales of electric buses. As the receipt of these payments

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depends on the receipt of relevant government grants by customers, these sales payments are considered variable consideration referred to in paragraphs 50 to 54 of IFRS 15, "Revenue from Contracts with Customers". RAC includes in the transaction price the part of the variable consideration to the extent that a significant reversal is highly improbable. Therefore, when the control of electric buses has been transferred to the customer, RAC recognizes as sales revenue the amount of the variable consideration to the extent that a significant reversal is highly improbable. As the revenue recognition from the sale of electric buses by RAC, its determination as to whether a significant reversal of the variable consideration is highly improbable involves management's judgment and a high degree of estimation uncertainty, thus, we considered the recognition of sales revenue of electric buses of RAC as one of the key audit matters for this year's audit.

How our audit addressed the matter

We performed the following audit procedures with respect to the above key audit matter:

Obtained the new sales contracts this year, and confirmed whether the sales price and payment conditions have been properly authorized and approved.
Obtained an understanding and evaluated the appropriateness of the delivery procedures and obtained the delivery inspection and acceptance form.
Obtained the sales transactions that have not yet been collected as the customer has not yet received the subsidy from the government on the financial report end date, reviewed the items that have met the requirements of subsidy letter, evaluated the reasonableness of RAC's assessment in determining whether the customer can meet the subsidy requirements, ensured the correctness of contract assets.

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Other matter - Reference to the audits of other auditors

We did not audit the financial statements of certain subsidiaries and investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries and associates, is based solely on the reports of the other auditors. Total assets of these subsidiaries and the balances of these investments accounted for under the equity method amounted to NT$337,062 thousand and NT$370,660 thousand, constituting 3.66% and 4.30% of the consolidated total assets as at December 31, 2025 and 2024, respectively, and operating revenue amounted to NT$225,129 thousand and NT$254,893 thousand, constituting 5.62% and 7.62% of the consolidated total operating revenue for the years then ended, respectively. The comprehensive losses recognized from the aforementioned associates and joint ventures accounted for under the equity method amounted to NT$1,564 thousand and NT$349 thousand, constituting (1.48)% and 0.26% of the consolidated total comprehensive income for the years then ended.

Other matter - Parent Company Only Financial Statements

We have audited and expressed an unmodified opinion with other matter paragraph on the parent company only financial statements of Mobiletron Electronics Co., Ltd. as at and for the years ended December 31, 2025 and 2024.

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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.

Auditors' responsibilities for the audit of the consolidated financial statements

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

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

also:

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

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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.

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

Liu, Mei Lan
Lai, Chih-Wei

For and on behalf of PricewaterhouseCoopers, Taiwan

March 10, 2026

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.

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(Expressed in thousands of New Taiwan dollars)

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 622,829	7	$ 990,966	11
1110	Financial assets at fair value through profit or loss - current	6(2)	665,222	7	389,553	5
1136	Current financial assets at amortised cost	6(3) and 8	118,213	1	401,997	5
1140	Current contract assets	6(25)	1,285,040	14	996,998	12
1150	Notes receivable, net	6(4)	366,681	4	146,434	2
1170	Accounts receivable, net	6(4)	892,323	10	524,204	6
1200	Other receivables		18,270	-	13,787	-
1220	Current tax assets		28,930	1	23,595	-
130X	Inventories	6(5)	1,500,804	16	1,372,980	16
1470	Other current assets		178,471	2	103,112	1
11XX	Current Assets		5,676,783	62	4,963,626	58
Non-current assets
1510	Non-current financial assets at fair value through profit or loss	6(2)	176,507	2	189,888	2
1517	Non-current financial assets at fair value through other comprehensive income	6(6)	121,600	1	113,875	1
1535	Non-current financial assets at amortised cost	6(3) and 8	37,747	-	19,519	-
1560	Non-current contract assets	6(25)	57,933	1	121,964	1
1550	Investments accounted for under equity method	6(7)	90,277	1	91,026	1
1600	Property, plant and equipment	6(8) and 8	2,193,385	24	2,256,815	26
1755	Right-of-use assets	6(9) and 8	358,101	4	388,651	5
1780	Intangible assets	6(10)(11)	247,781	3	264,406	3
1840	Deferred income tax assets	6(31)	189,246	2	163,423	2
1900	Other non-current assets	6(4) and 8	50,326	-	51,287	1
15XX	Non-current assets		3,522,903	38	3,660,854	42
1XXX	Total assets		$ 9,199,686	100	$ 8,624,480	100

(Continued)

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(12)	$ 1,167,446	13	$ 1,396,649	16
2110	Short-term notes and bills payable	6(13)	239,756	3	159,821	2
2130	Current contract liabilities	6(25)	214,405	2	66,298	1
2150	Notes payable		89,665	1	57,632	1
2170	Accounts payable		768,014	8	452,319	5
2200	Other payables	6(14)	201,672	2	168,329	2
2230	Current income tax liabilities		1,004	-	940	-
2250	Current provisions	6(15)	36,835	-	18,265	-
2280	Current lease liabilities	7	50,193	1	45,976	1
2320	Long-term liabilities, current portion	6(16)(17)	1,022,755	11	1,766,027	20
2399	Other current liabilities, others	6(18)	18,019	-	19,328	-
21XX	Current Liabilities		3,809,764	41	4,151,584	48
Non-current liabilities
2530	Bonds payable	6(16)	-	-	-	-
2540	Long-term borrowings	6(17)	1,945,467	21	1,137,247	13
2550	Non-current provisions	6(15)	59,521	1	45,687	1
2570	Deferred income tax liabilities	6(31)	203,154	2	181,975	2
2580	Non-current lease liabilities	7	324,673	4	357,769	4
2630	Long-term deferred revenue	6(18)	35,726	-	42,985	-
2670	Other non-current liabilities, others	6(19)	46,857	1	49,017	1
25XX	Non-current liabilities		2,615,398	29	1,814,680	21
2XXX	Total Liabilities		6,425,162	70	5,966,264	69
Equity attributable to owners of parent
	Share capital	6(21)
3110	Share capital - common stock		985,475	11	985,475	12
	Capital surplus	6(22)
3200	Capital surplus		364,174	4	362,874	4
	Retained earnings	6(23)
3310	Legal reserve		372,126	4	372,126	4
3320	Special reserve		215,152	2	270,229	3
3350	Unappropriated retained earnings		576,787	6	462,923	5
	Other equity interest	6(24)
3400	Other equity interest		( 221,349)	( 2)	( 215,152)	( 2)
31XX	Equity attributable to owners of the parent		2,292,365	25	2,238,475	26
36XX	Non-controlling interest	6(33)	482,159	5	419,741	5
3XXX	Total equity		2,774,524	30	2,658,216	31
	Significant Contingent Liabilities and Unrecognised Contract Commitments	9
	Significant Events after the Balance Sheet Date	11
3X2X	Total liabilities and equity		$ 9,199,686	100	$ 8,624,480	100

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

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except for earnings (losses) per share amounts)

Items	Notes	Year ended December 31		2024
		AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(25)	$ 4,003,764	100	$ 3,345,244	100
5000	Operating costs	6(5)(30)	( 2,807,053)	( 70)	( 2,505,261)	( 75)
5900	Net operating margin		1,196,711	30	839,983	25
	Operating expenses	6(30)
6100	Selling expenses		( 474,657)	( 12)	( 476,993)	( 14)
6200	General and administrative expenses		( 351,502)	( 9)	( 345,473)	( 10)
6300	Research and development expenses		( 221,868)	( 5)	( 217,658)	( 7)
6000	Total operating expenses		( 1,048,027)	( 26)	( 1,040,124)	( 31)
6900	Operating profit (loss)		148,684	4	( 200,141)	( 6)
	Non-operating income and expenses
7100	Interest income	6(26)	62,219	1	61,433	2
7010	Other income	6(27)	36,244	1	39,603	1
7020	Other gains and losses	6(28)	( 8,319)	-	10,722	-
7050	Finance costs	6(29) and 7	( 114,234)	( 3)	( 103,248)	( 3)
7060	Share of profit/(loss) of associates and joint ventures accounted for under equity method	6(7)	( 1,564)	-	( 349)	-
7000	Total non-operating income and expenses		( 25,654)	( 1)	8,161	-
7900	Profit (loss) before income tax		123,030	3	( 191,980)	( 6)
7950	Income tax expense	6(31)	( 12,214)	-	( 12,276)	-
8200	Profit (loss) for the year		$ 110,816	3	($ 204,256)	( 6)
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Gains (losses) on remeasurements of defined benefit plans	6(19)	$ 1,487	-	$ 3,955	-
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	6(6)(24)	7,680	-	1,626	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(24)(31)	1,062	-	( 690)	-
8310	Total other comprehensive income that will not be reclassified to profit or loss, net of tax		10,229	-	4,891	-
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations	6(24)	( 19,053)	-	80,882	2
8399	Income tax relating to the components of other comprehensive income	6(24)(31)	3,809	-	( 16,176)	-
8360	Total other comprehensive (loss) income that will be reclassified to profit or loss, net of tax		( 15,244)	-	64,706	2
8300	Total other comprehensive (loss) income for the year		($ 5,015)	-	$ 69,597	2
8500	Total comprehensive income (loss) for the year		$ 105,801	3	($ 134,659)	( 4)
	Profit (loss), attributable to:
8610	Owners of the parent		$ 57,597	2	($ 109,586)	( 3)
8620	Non-controlling interest		53,219	1	( 94,670)	( 3)
			$ 110,816	3	($ 204,256)	( 6)
	Comprehensive income (loss) attributable to:
8710	Owners of the parent		$ 52,590	2	($ 39,991)	( 1)
8720	Non-controlling interest		53,211	1	( 94,668)	( 3)
			$ 105,801	3	($ 134,659)	( 4)
	Basic earnings (losses) per share	6(32)
9750	Total basic earnings (losses) per share		$ 0.58	($	1.11)
9850	Total diluted earnings (losses) per share		$ 0.58	($	1.11)

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

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Equity attributable to owners of the parent
		Retained earnings				Other equity interest		Total	Non-controlling interest	Total equity
		Share capital - common stock	Capital surplus, additional paid-in capital	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
2024
Balance at January 1, 2024		$ 985,475	$ 389,570	$ 372,126	$ 272,771	$ 719,634	($ 100,782)	($ 169,447)	$2,469,347	$ 261,540
Loss for the year		-	-	-	-	(109,586)	-	-	(109,586)	(94,670)
Other comprehensive income for the year	6(24)	-	-	-	-	3,164	64,704	1,727	69,595	2
Total comprehensive income (loss)		-	-	-	-	(106,422)	64,704	1,727	(39,991)	(94,668)
Appropriation and distribution of 2023 earnings	6(23)
Special reserve		-	-	-	(2,542)	2,542	-	-	-	-
Changes in associates accounted for under the equity method	6(7)(22)	-	(455)	-	-	-	-	-	(455)	-
Changes in ownership of subsidiaries	6(22)(23)	-	(26,241)	-	-	(164,185)	-	-	(190,426)	252,869
Disposal of investments in equity instruments designated at fair value through other comprehensive income	6(6)(24)
Balance at December 31, 2024		$ 985,475	$ 362,874	$ 372,126	$ 270,229	$ 462,923	($ 36,078)	($ 179,074)	$2,238,475	$ 419,741
2025
Balance at January 1, 2025		$ 985,475	$ 362,874	$ 372,126	$ 270,229	$ 462,923	($ 36,078)	($ 179,074)	$2,238,475	$ 419,741
Profit for the year		-	-	-	-	57,597	-	-	57,597	53,219
Other comprehensive income (loss) for the year	6(24)	-	-	-	-	1,190	(15,236)	9,039	(5,007)	(8)
Total comprehensive income (loss)		-	-	-	-	58,787	(15,236)	9,039	52,590	53,211
Appropriation and distribution of 2024 earnings	6(23)
Special reserve		-	-	-	(55,077)	55,077	-	-	-	-
Changes in associates accounted for under the equity method	6(7)(22)	-	445	-	-	-	-	-	445	-
Changes in ownership of subsidiaries	6(22)(33)	-	855	-	-	-	-	-	855	9,207
Balance at December 31, 2025		$ 985,475	$ 364,174	$ 372,126	$ 215,152	$ 576,787	($ 51,314)	($ 170,035)	$2,292,365	$ 482,159

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

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MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before tax		$ 123,030	($ 191,980)
Adjustments
Adjustments to reconcile profit (loss)
Loss on valuation of financial assets	6(2)(28)	2,390	3,301
Expected credit losses	12(2)	( 601 )	( 2,454 )
Depreciation expense	6(8)(30)	138,491	143,922
Depreciation expense—right-of-use assets	6(9)(30)	48,315	46,378
Amortization	6(10)(30)	27,587	36,504
Loss on the disposal of property, plant and equipment	6(28)	370	30
Gain on disposal of investment	6(28)	( 49 )	-
Share of loss of associates and joint ventures accounted for using the equity method	6(7)	1,564	349
Compensation costs relating to share-based payment	6(20)	9,692	( 236 )
Government grants income	6(18)	( 7,969 )	( 7,562 )
Interest income	6(26)	( 62,219 )	( 61,433 )
Property, plant and equipment transferred to expenses		-	2
Dividend income	6(27)	( 3,655 )	( 1,555 )
(Gain) loss on lease modifications	6(9)(28)	( 84 )	33
Interest expense	6(29)	105,740	94,618
Interest expense—lease liabilities	6(9)(29)	8,494	8,630
Impairment loss	6(10)(11)(28)	-	24,107
Unrealized exchange gain		( 638 )	-
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		30,686	808
Contract assets		( 224,011 )	( 213,319 )
Notes receivable		( 220,247 )	( 121,977 )
Accounts receivable		( 368,733 )	55,608
Other receivables		( 1,160 )	( 1,687 )
Inventories		( 127,824 )	314,493
Other current assets		( 75,461 )	36,737
Other non-current assets		7,894	7,387
Changes in operating liabilities
Contract liabilities		148,107	30,311
Notes payable		32,033	56,897
Accounts payable		315,695	88,655
Other payables		37,283	( 15,824 )
Provisions for liabilities		32,404	2,628
Other current liabilities		( 1,295 )	8,743
Other non-current liabilities, others		( 673 )	( 3,518 )
Cash (outflow) inflow generated from operations		( 24,844 )	338,596
Interest received		58,896	60,527
Dividends received		3,655	1,555
Income taxes refunded		2,336	6,171
Interest paid		( 113,596 )	( 91,508 )
Income taxes paid		( 14,899 )	( 55,759 )
Net cash flows (used in) from operating activities		( 88,452 )	259,582

(Continued)

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through profit or loss	12(2)	($ 314,490)	($ 163,925)
Decrease (increase) in financial assets at amortised cost		265,556	( 43,579 )
Acquisition of investments accounted for using equity method	6(7)	-	( 35,976 )
Net cash used in disposal of subsidiaries	6(34)	( 106 )	-
Acquisition of property, plant and equipment	6(34)	( 59,489 )	( 86,619 )
Proceeds from disposal of property, plant and equipment		15	4,782
Increase in intangible assets	6(34)	( 10,951 )	( 11,800 )
Increase in refundable deposits		( 55,502 )	( 8,947 )
Decrease in refundable deposits		31,641	8,984
Net cash flows used in investing activities		( 143,326 )	( 337,080 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	6(35)	1,784,478	2,027,434
Repayments of short-term borrowings	6(35)	( 1,993,938 )	( 1,394,866 )
Increase in short-term notes and bills payable	6(35)	977,694	678,403
Decrease in short-term notes and bills payable	6(35)	( 900,000 )	( 600,000 )
Bonds payable redemption amount	6(35)	( 1,000,000 )	-
Repayment of the principal portion of lease liabilities	6(35)	( 45,113 )	( 43,204 )
Increase in long-term borrowings	6(35)	2,621,320	318,651
Repayments of long-term borrowings	6(35)	( 1,559,326 )	( 919,014 )
Net cash flows (used in) from financing activities		( 114,885 )	67,404
Effect on foreign currency exchange		( 21,474 )	140,029
Net (decrease) increase in cash and cash equivalents		( 368,137 )	129,935
Cash and cash equivalents at beginning of year		990,966	861,031
Cash and cash equivalents at end of year		$ 622,829	$ 990,966

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

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MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. History and Organization

Mobiletron Electronics Co., Ltd. (hereinafter referred to as the “Company”) was established on July 19, 1982. The main business activities of the Company and its subsidiaries (hereinafter collectively referred to as the “Group”) are the production, manufacturing and trading of electronic control components of electric buses and electric vehicles (vehicle control system (VCU), power distribution unit (PDU) and electronic control unit (ECU)), battery boxes of electric vehicles (CTP batteries, battery management system (BMS) and battery thermal management system (BTMS)), power wire harness, charge point, fleet management system, automotive engine transmission control system (electronic igniter, voltage regulator and rectifier), TPMS and industrial and automotive precision digital tools. The Company’s shares have been approved for trading on the Taiwan Stock Exchange since April 6, 2001.

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

These consolidated financial statements were authorised for issuance by the Board of Directors on March 10, 2026.

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 2025 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting 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.

(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 the FSC and will become effective from 2026 are as follows:

~20~

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
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 – comparative information’	January 1, 2023
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. The quantitative impact will be disclosed when the assessment is complete.

Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’

Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

(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:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027(Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

Note : The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

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. The quantitative impact will be disclosed when the assessment is complete.

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 management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

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.

(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:

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

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

(3) 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.

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(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 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 unrealised 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 non-controlling interests having a deficit balance.

(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 recognised 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 recognised in profit or loss. All amounts previously recognised 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 recognised 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.

~22~

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership(%)		Description
			December 31, 2025	December 31, 2024
The Company	REGITAR U.S.A. INC. (REGITAR)	Buy and sell products related to the Company's products	100	100	-
The Company	MOBILETRON U.K. LTD. (M.U.K.)	Buy and sell products related to the Company's products	100	100	-
The Company	STONEWALL VENTURES INC. (STONEWALL)	Holding company for overseas reinvestment	100	100	-
The Company	Durofix Co., Ltd. (“Durofix”)	Buy and sell products related to the Company's products	100	100	Note 5
The Company	RAC Electric Vehicles Inc. (“RAC”)	Manufacture of motor vehicles and parts	60.48	60.95	Note 1
The Company	Moving EV Service Company Ltd. (“Moving EV”)	Industry innovation and incubation services	50.00	-	Note 4
STONEWALL	MOBILETRON LIMITED (Mobiletron Hong Kong)	Holding company for overseas reinvestment	100	100	-
MOBILETRON U.K. LTD.	DUROFIX, INC. (DUS)	Buy and sell products related to the Company's products	100	100	-
MOBILETRON LIMITED	Mobiletron Electronics (Ningbo) Co., Ltd. (“Mobiletron Ningbo”)	The main businesses are the same as that of the Company	100	100	Note 6
Mobiletron Electronics (Ningbo) Co., Ltd.	Yuyao Mobiletron Electronics Commerce and Trade Co., Ltd. (“Mobiletron Commerce and Trade”)	The main businesses are the same as that of the Company	100	100	-
Mobiletron Electronics (Ningbo) Co., Ltd.	Yuyao Che Lian Wang Commerce and Trade Co., Ltd. (“Che Lian Wang”)	The main businesses are the same as that of the Company	100	100	-
RAC Electric Vehicles Inc. (“RAC”)	Moving EV Service Company Ltd. (“Moving EV”)	Industry innovation and incubation services	50	-	Note 4
RAC	MaxWin International Industrial Limited	Holding company for overseas reinvestment	-	100	Note 2, Note 3
MaxWin International Industrial Limited	Dongguan Can Ding Software Development Technology Co., Ltd.	Provide RAC technical support	-	100	Note 2

~24~

Note 1: In September 2025, RAC issued the restricted shares and retired the unvested shares resulting from resignation of the employees. Consequently, the Company’s shareholding in RAC decreased from 60.95% on December 31, 2024 to 60.48% on December 31, 2025. On March 6, 2024, the Company participated in the capital increase of RAC and acquired ordinary shares amounting to NT$666,603 thousand. As the Company did not acquire shares proportionately, the shareholding ratio was increased from 54.80% to 61.07%. The transaction resulted in a decrease in the Company’s interest by NT$198,659 thousand. In July 2024, RAC issued 402,026 new shares to merge with the additional 25.51% of the issued shares of MaxWin Technology. Consequently, the Company’s shareholding in RAC decreased from 61.07% to 60.86%. The transaction resulted in an increase in the Company’s interest by NT$1,770 thousand.

Note 2: On June 30, 2025, RAC issued Maxwin International Industrial Limited 100% ownership. As a result, the Group recognized the gains or losses arising from the disposal of subsidiaries and associates, as well as the corresponding share of profits or losses from the annual consolidated financial statements of Maxwin International Industrial Limited, amounting to a gain of NT$49 thousand. The details are separately presented under "Other Gains and Losses" in the consolidated statement of comprehensive income.

Note 3: RAC merged with MaxWin Technology as approved by the Board of Directors on April 25, 2024, which was resolved by the shareholders on June 7, 2024. The effective date of merger was set on July 11, 2024. On September 12, 2024, MaxWin Technology was formally dissolved, and MaxWin International Industrial Limited is now directly held by RAC.

Note 4: The Company and RAC jointly prepared for establishment of Moving EV Service Company Ltd, which was approved to establish on September 2, 2025.

Note 5: On January 21, 2025, the Board of Directors of Durofix resolved to decrease capital amounting to NT$49,000 thousand. The registration had been completed on February 19, 2025.

Note 6: On February 1, 2024, the Board of Directors of Mobiletron Ningbo resolved to decrease capital amounting to US$3.82 million (approximately NT$121,743 thousand). The registration had been completed on March 20, 2024.

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, 2025 and 2024, the non-controlling interest amounted to NT$482,159

thousand and NT$419,741 thousand, respectively. The information of non-controlling interest and respective subsidiaries is as follows:

Name of subsidiary	Principal place of business	Non-controlling interest
		December 31, 2025		December 31, 2024
		Amount	Ownership (%)	Amount	Ownership (%)
RAC	Taiwan	$ 482,159	39.52%	$ 419,741	39.05%

Summarised financial information of the subsidiaries:

Balance sheets

	RAC Electric Vehicles Inc.
	December 31, 2025	December 31, 2024
Current assets	$ 2,897,137	$ 1,821,705
Non-current assets	665,322	751,304
Current liabilities	( 2,028,180)	( 1,078,596)
Non-current liabilities	( 310,379)	( 430,788)
Total net assets	$ 1,223,900	$ 1,063,625

Statements of comprehensive income

	RAC Electric Vehicles Inc.
	2025	2024
Revenue	$ 2,095,970	$ 1,287,215
Loss before income tax	155,988	( 203,162)
Income tax benefit (expense)	4,434	( 211)
Loss for the period	160,422	( 203,373)
Other comprehensive income, net of tax	529	8
Total comprehensive income (loss)	$ 160,951	($ 203,365)
Total comprehensive loss attributable to non-controlling interest	$ -	($ 94,668)

Statements of cash flows

	RAC Electric Vehicles Inc.
	2025	2024
Net cash used in operating activities	($ 242,130)	($ 7,569)
Net cash used in investing activities	( 12,488)	( 124,425)
Net cash provided by financing activities	277,215	60,171
Effect of exchange rate changes	( 15)	8
Increase (decrease) in cash and cash equivalents	22,582	( 71,815)
Cash and cash equivalents, beginning of period	56,161	127,976
Cash and cash equivalents, end of period	$ 78,743	$ 56,161

(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 such entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency.

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised 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 re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised 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 recognised 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 recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

(d) All foreign exchange gains and losses are presented in the income statement within “other profits and losses”.

B. Translation of foreign operations

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:

(a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

(b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

(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 realised, or are intended to be sold or consumed within the normal operating cycle;

(b) Assets held mainly for trading purposes;

~26~

(c) Assets that are expected to be realised within twelve months after the reporting period;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

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 due to be settled within twelve months after the reporting period;
(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(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 amortised cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.
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 recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises 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 recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

(a) The objective of the Group's business model is achieved both by collecting contractual cash flows and selling financial assets; and
(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 fair value through other comprehensive income are recognised and derecognised using trade date accounting.

~27~

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 recognised 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 recognised 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 amortised 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 amortized cost are recognized and derecognized using trade date accounting.

C. 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 contract assets and accounts and notes receivable, at each reporting date, the Group recognizes the impairment provision at 12 months expected credit losses if there has been no significant increase in credit risk since initial recognition, after taking into consideration all reasonable and verifiable information that includes forecasts; or measures the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition. On the other hand, for contract assets and accounts and notes receivable that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(13) Leasing arrangements (lessor) – operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

~28~

(14) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average cost 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). However, loan costs are excluded. 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.

(15) Investments accounted for using equity method / associates

A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

~29~

F. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

G. At the balance sheet date, the Group performs an impairment test for an investment in an associate when there is an indication that the investment may be impaired. The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

(16) Property, plant and equipment

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

B. Subsequent costs are included in the asset's carrying amount or recognised 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 derecognised. 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.

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:

Type	Useful life in years
Buildings and structures	3 to 50 years
Machinery and equipment	2 to 15 years
Mold equipment	2 to 8 years
Transportation equipment	5 to 10 years
Other facilities	2 to 20 years

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

A. Leases are recognised 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 recognised 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. The lease payments are fixed payments, less any rental incentives that may be received.

It is subsequent measured at amortized cost by the interest method, and the interest expense is set aside during the lease period. The lease liabilities will be reassessed and the right-of-use assets will be adjusted accordingly when there is a change in the lease term or lease payment not caused by contractual modification.

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

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

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(18) Intangible assets

A. Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 to 11 years.

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

(19) 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 disposal costs or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior periods no longer exist or diminish, the impairment loss shall be reversed. However, the increased carrying amount due to reversal shall not exceed the carrying amount of the asset, less depreciation or amortization, if the impairment loss had not been recognized.

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B. The recoverable amount of goodwill is evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised 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.

(20) Borrowings

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

(21) 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.

(22) Convertible corporate bonds payable

Convertible corporate 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) and call options. The Company classifies the bonds payable upon issuance as a financial asset or an equity instrument in accordance with the contract terms. They are accounted for as follows:

A. Embedded call options: at the time of original recognition, the net amount of fair value is stated as the “financial assets or liabilities at fair value through profit or loss”; subsequently on the balance sheet date, it is evaluated at the then current fair value, and the difference is recognized as “profit or loss on financial assets at fair value through profit or loss”.

B. Master contract for corporate bonds: Any difference between the initial recognition and the redemption value is accounted for as the 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.

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C. Embedded conversion options (which meet the definition of an equity instrument): 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, and are not subsequently remeasured.

D. Any transaction costs directly attributable to the issuance are allocated to each liability and equity component in proportion to the initial carrying amount of each abovementioned item.

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 carrying amount of the abovementioned liability component and “capital surplus - share options”.

(23) Derecognition of financial liabilities

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

(24) 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.

(25) 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 recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognized 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 calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

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

iii. Past service costs are recognized immediately in profit or loss.

C. Termination benefits

Termination benefits are benefits provided when the employment of an employee is terminated before the normal retirement date or when the employee decides to accept the company's offer of benefits in exchange for termination of employment. The Group recognizes expenses when the offer of termination benefits can no longer be withdrawn or when the related restructuring costs are recognized, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

D. Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognised 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 accounting 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.

(26) Employee share-based payment

Restricted stocks:

A. Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and 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 recognises 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 dividend declaration.

(27) 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 Group operates and generates taxable income. Management periodically evaluates implementations 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 shareholders resolve to distribute the earnings.

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

F. A deferred tax asset shall be recognized for the carry-forward of unused tax credits due to the provisions of the relevant income tax laws and regulations to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(28) Share capital

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

(29) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders, and cash dividends are recognized as liabilities.

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(30) Revenue recognition

A. Sales of goods

(a) The Group manufactures and sells electronic components such as automotive engine transmission control system (electronic igniter, voltage regulator and rectifier), vehicle safety system (TPMS, rear view mirror back up camera, night vision system, and around view monitor), automotive digital tools, power tools, rechargeable flashlights, and other parts and accessories, as well as manufactures and sells electric buses and related parts. Sales revenue is recognized when control of the products has transferred, being when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, the customer has full discretion over the channel (or the use of the products) and price to sell the products, and the Group has no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been accepted in accordance with the sales contract, or there is objective evidence that all criteria for acceptance have been satisfied. In addition, the electric bus sales revenue is recognized to the extent that a significant reversal is highly improbable. Revenue recognition is revisited at each balance sheet date.

(b) Sales revenue is recognized in the amount equal to its contractual price less estimated sales discounts and allowance. The sales discount given to customers is usually estimated based on historical experience. The payment terms of sales transactions are mainly 30 to 90 days after monthly settlement. Since the time interval between the transfer of the promised merchandise to the customer and the payment by the customer is less than one year, the Group has not adjusted the transaction price to reflect the time value of money.

(c) The customer pays at the time specified in the payment schedule. If the payables of customer exceed the products sold by the Group, a contract liability is recognized.

B. Warranty services

The Group provides electric vehicle warranty consulting services, and warranty revenue is recognized as revenue during the financial reporting period in which the services are provided to customers.

C. Project and service revenue:

Project and labor income is mainly generated from the provision of construction contracts and technical support services, and the revenue of construction contracts is recognised using the percentage of completion method. The method used to determine the degree of completion is to measure the percentage of the cost invested in each individual contract to the estimated total cost. When the outcome of the contract cannot be reasonably estimated, revenue is recognized only to the extent that the expenses incurred are expected to be recoverable. If there is any change in the project contract price or the estimated total project cost, it shall be treated as a change in accounting estimate. Revenue from providing services is recognised in the accounting period in which the services are rendered.

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(31) Government grants

Government grants are recognized at fair value when there is reasonable assurance that the enterprise will comply with the conditions attached to the government grant and the grant will be received. If the nature of the government grants are to compensate the expenses incurred by the Group, the government grant shall be recognized as the current profit or loss on a systematic basis during the period in which the relevant expenses are incurred. 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.

(32) 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, has been identified as the Board of Directors that makes strategic decisions.

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 judgements in applying the Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

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 based on judgments 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 an evaluation of inventories might has significant changes.

As of December 31, 2025, the carrying amount of inventories of the Group was NT$1,500,804 thousand.

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6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 590	$ 722
Checking accounts and demand deposits	521,944	319,540
Foreign currency deposit	100,295	189,462
Time deposits	-	481,242
	$ 622,829	$ 990,966

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.

B. The Group lists time deposits with an original maturity over three months that are not kept for the purpose of meeting short-term commitments and restricted bank deposits under “financial assets at amortized cost”, please refer to Note 6(3) for details.

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

Item	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Money fund	$ -	$ 28,689
Equity fund	5,000	5,000
Listed stocks	10,804	10,804
Convertible bonds	637,850	309,225
	653,654	353,718
Plus: Valuation adjustments	13,268	17,771
Effect of exchange rate changes	( 1,700)	18,064
Total	$ 665,222	$ 389,553
Non-current items:
Financial assets mandatorily measured at fair value through profit or loss
Convertible bonds	$ 149,790	$ 163,925
Unlisted stocks	31,354	31,354
	181,144	195,279
Plus: Valuation adjustments	( 4,637)	( 5,391)
Total	$ 176,507	$ 189,888

A. For the years ended December 31, 2025 and 2024, the Group recognized a net loss of NT$1,752 thousand (including gain on disposal of NT$1,997 thousand, foreign unrealised exchange gain of NT$638 thousand and loss on valuation of NT$4,387 thousand) and a net loss of NT$3,301 thousand (including gain on disposal of NT$25 thousand and loss on valuation of NT$3,326 thousand), respectively, of financial assets at fair value through profit or loss (including derivative financial products).

B. The Group has no financial assets at fair value through profit or loss pledged to others.

C. 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 amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with maturity over three months	$ 47,402	$ 79,057
Restricted bank deposits	70,811	322,940
Total	$ 118,213	$ 401,997
Non-current items:
Restricted bank deposits	$ 37,747	$ 19,519

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

	2025	2024
Interest income	$ 4,482	$ 9,156

B. As at December 31, 2025 and 2024, 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 amortised cost held by the Group was NT$155,960 thousand and NT$421,516 thousand, respectively.

C. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.

D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(4) Notes and accounts receivable

A. Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 366,681	$ 146,434
Accounts receivable	$ 906,063	$ 538,648
Less: Allowance for uncollectible accounts	( 13,740)	( 14,444)
	$ 892,323	$ 524,204

B. Long-term accounts receivable (shown as other non-current assets)

	December 31, 2025	December 31, 2024
Long-term accounts receivable	$ -	$ 6,963
Less: Unrealized interest income
- long-term accounts receivable	-	( 203)
	$ -	$ 6,760

C. The aging analysis of accounts receivable and notes receivable is as follows:

	December 31, 2025		December 31, 2024
	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
Not past due	$ 585,896	$ 366,681	$ 461,601	$ 146,434
Within 30 days	99,099	-	50,498	-
31 to 90 days	86,965	-	20,864	-
91 to 180 days	71,569	-	1,025	-
181 to 365 days	37,054	-	528	-
Over 366 days	25,480	-	10,892	-
	$ 906,063	$ 366,681	$ 545,408	$ 146,434

The above ageing analysis was based on past due date.

D. As of December 31, 2025, December 31, 2024 and January 1, 2024, the balances of receivables (including notes receivable) in contracts between the Group and customers were NT$1,259,004 thousand, NT$677,398 thousand and NT$617,223 thousand, respectively.

E. As at December 31, 2025 and 2024, 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 Group's notes and accounts receivable was the carrying amount of each type of accounts receivable and notes receivable.

F. Accounts receivable amounted to NT$1,342,973 thousand, NT$1,118,962 thousand and NT$905,643 thousand as at December 31, 2025, December 31, 2024 and January 1, 2024, respectively. Due to the nature of the variable consideration in the contract conditions, the recovery of the relevant accounts is determined according to the time when the agreed conditions are fulfilled, so they are recognized as "contract assets". Refer to Note 6(25) for details.

G. The Group entered into a syndicated loan agreement with 16 syndicated creditor banks including Hua Nan commercial bank. The borrowings funds were paid by sale payments, please refer to Note 6(17) A. (d) for details.

H. Some of the above accounts receivable involved in litigation due to performance disputes. Details are provided in Note 9(1).

I. Information concerning credit risks is provided in Note 12(2).

(5) Inventories

	December 31, 2025
	Costs	Allowance for inventory valuation loss	Carrying amount
Raw materials	$ 832,649	($ 138,526)	$ 694,123
Work in progress	194,637	( 10,234)	184,403
Finished goods	657,384	( 160,275)	497,109
Commodities	169,056	( 43,887)	125,169
Total	$ 1,853,726	($ 352,922)	$ 1,500,804
	December 31, 2024
	Costs	Allowance for inventory valuation loss	Carrying amount
Raw materials	$ 795,416	($ 163,050)	$ 632,366
Work in progress	112,355	( 27,029)	85,326
Finished goods	712,180	( 167,071)	545,109
Commodities	157,390	( 47,211)	110,179
Total	$ 1,777,341	($ 404,361)	$ 1,372,980

Inventory costs recognized as an expense for the year are as follows:

	2025	2024
Cost of inventories sold	$ 2,714,227	$ 2,359,489
Unallocated fixed manufacturing overhead	70,943	99,722
Retirement losses	54,259	35,481
(Gain on reversal of) inventory valuation losses	( 49,090)	12,007
Others	16,714	( 1,438)
	$ 2,807,053	$ 2,505,261

For the year ended December 31, 2025, the Group reversed from a previous inventory write-down because of discards and sales of certain inventories which were previously provided with allowance.

(6) Financial assets at fair value through other comprehensive income-non-current

Items	December 31, 2025	December 31, 2024
Equity instruments
Emerging market stocks	$ 22,583	$ 22,583
Private company stocks	133,413	133,413
Valuation adjustments	( 34,396)	( 42,121)
Total	$ 121,600	$ 113,875

A. The Group has elected to classify equity 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 NT$121,600 thousand and NT$113,875 thousand as at December 31, 2025 and 2024, respectively.

B. Megago Tech Co., Ltd. increased capital and completed the registration on June 19, 2024, respectively. As the Group did not participate in the capital increase, the Group's shareholding in the entity decreased from 14.87% to 14.81%.

C. NExT-e Solutions INC. (hereinafter referred to as "NExT-e") issued new shares in October 2025 and November 2025. In addition, the shareholders of NExT-e during their special meeting resolved to increase the conversion ratio of Class F shares to 1:2. The Group did not participate in the abovementioned activities, thus, the Group's shareholding in NExT-e decreased from 6.91% to 5.15%.

D. On June 19, 2024, NExT-e increased its capital. As the Group did not participate in the capital increase, the Group's shareholding in the entity decreased from 7.32% to 6.91%.

E. Amounts recognized in comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive income	$ 7,680	$ 1,626
Cumulative gains reclassified to retained earnings due to derecognition	$ -	$ 11,354
Dividend income recognised in profit or loss still held at end of the year	$ -	$ 208
Derecognised during the year	-	1,180
	$ -	$ 1,388

(7) Investments accounted for using equity method

A. The carrying amounts of the Group's interests in all individually immaterial associates are summarized below:

	December 31, 2025	December 31, 2024
Blade Hydrogen Green Technology Co., Ltd.	$ 83,928	$ 84,206
H2 Energy Co., Ltd.	6,349	6,820
	$ 90,277	$ 91,026

(a) For the year ended December 31, 2025, the Group recognized an increase in capital surplus amounting to NT$495 thousand due to the changes in net asset of the associate, Blade Hydrogen Green Technology Co., Ltd. In addition, Blade Hydrogen Green Technology Co., Ltd. completed the capital increase on August 1, 2024 and September 30, 2024. The Group subscribed a total number of 5,995 thousand shares, totalling NT$29,976 thousand. Consequently, the Group's shareholding in the entity increased from 15.30% to 15.57%. As the subsidiary did not participate in the capital increase, the subsidiary's shareholding in the entity decreased from 19.13% to 12.48%. The Group's total shareholding in the entity

decreased from 34.43% to 28.05%. Due to not recognizing according to the shareholding ratio, the Group's capital surplus increased by NT$5,125 thousand.

(b) H2 Energy completed the capital increase on December 22, 2025. The Group did not participate in the capital increase. Consequently, the Group's shareholding in the entity decreased from 25% to 23.44%. Due to not recognizing according to the shareholding ratio, the Group's capital surplus increased by NT$175 thousand.

(c) H2 Energy completed the capital increase on April 17, 2024 and October 11, 2024. The Group subscribed a total number of 600 thousand shares, totalling NT$6,000 thousand. Consequently, the Group's shareholding in the entity decreased from 30% to 25%. Due to not recognizing according to the shareholding ratio, the Group recognized capital surplus amounting to NT$69 thousand.

B. The Group's share of the operating results in all individually immaterial associates are summarized below:

	2025	2024
Net profit (loss) for the year
Blade Hydrogen Green Technology Co., Ltd.	($ 918)	$ 218
H2 Energy Co., Ltd.	( 646)	( 567)
	($ 1,564)	($ 349)

The share of profit or loss of associates is recognized based on the investees' financial statements which were audited by independent auditors for the same period.

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(8) Property, plant and equipment

Original cost	2025
	Beginning balance	Increase	Decrease	Disposal of Subsidiary	Transfer	Net exchange difference	Ending balance
Land	$ 318,399	$ -	$ -	$ -	$ -	$ 860	$ 319,259
Buildings and structures	1,993,388	19,224	-	-	8,980	3,858	2,025,450
Machinery and equipment	806,278	15,820	( 10,651)	-	2,847	( 373)	813,921
Mold equipment	360,037	13,186	( 304)	-	310	693	373,922
Transportation equipment	68,846	1,861	( 285)	-	-	583	71,005
Other facilities	355,021	17,569	( 2,916)	( 189)	643	( 170)	369,958
Construction in progress and equipment pending acceptance	12,780	5,677	-	-	( 12,780)	( 2,096)	3,581
Total	$ 3,914,749	$ 73,337	($ 14,156)	($ 189)	$ -	$ 3,355	$ 3,977,096
Accumulated depreciation	Beginning balance	Increase	Decrease	Disposal of Subsidiary	Transfer	Net exchange difference	Ending balance
Buildings and structures	($ 493,503)	($ 48,525)	$ -	$ -	$ -	($ 1,307)	($ 543,335)
Machinery and equipment	( 572,654)	( 41,405)	10,369	-	-	370	( 603,320)
Mold equipment	( 314,252)	( 12,703)	304	-	-	( 606)	( 327,257)
Transportation equipment	( 45,322)	( 8,194)	269	-	-	181	( 53,066)
Other facilities	( 232,203)	( 27,664)	2,829	154	-	151	( 256,733)
Total	($ 1,657,934)	($ 138,491)	$ 13,771	$ 154	$ -	($ 1,211)	($ 1,783,711)
Book value	$ 2,256,815						$ 2,193,385

	2024
Original cost	Beginning balance	Increase	Decrease	Transfer	Net exchange difference	Ending balance
Land	$316,861	$-	$-	$-	$1,538	$318,399
Buildings and structures	1,981,333	4,046	(174)	313	7,870	1,993,388
Machinery and equipment	791,168	20,657	(14,631)	3,100	5,984	806,278
Mold equipment	349,223	11,444	(3,051)	225	2,196	360,037
Transportation equipment	67,181	1,080	(401)	-	986	68,846
Other facilities	310,655	16,425	(4,831)	25,703	7,069	355,021
Construction in progress and equipment pending acceptance	13,668	28,368	-	(29,343)	87	12,780
Total	$3,830,089	$82,020	($23,088)	($2)	$25,730	$3,914,749
Accumulated depreciation	Beginning balance	Increase	Decrease	Transfer	Net exchange difference	Ending balance
Buildings and structures	($436,242)	($50,679)	$92	$-	($6,674)	($493,503)
Machinery and equipment	(531,982)	(46,391)	10,799	-	(5,080)	(572,654)
Mold equipment	(301,739)	(13,073)	2,258	-	(1,698)	(314,252)
Transportation equipment	(36,070)	(8,882)	397	-	(767)	(45,322)
Other facilities	(206,346)	(24,897)	4,730	-	(5,690)	(232,203)
Total	($1,512,379)	($143,922)	$18,276	$-	($19,909)	($1,657,934)
Book value	$2,317,710					$2,256,815

A. Significant components of the Group's buildings include the buildings and plumbing, electrical, fire protection, and air conditioning, which are depreciated on a 50-year and 20-year basis, respectively.
B. There was no borrowing cost capitalised as part of property, plant and equipment.
C. The property, plant and equipment were all for its own use.
D. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

(9) Leasing arrangements—lessee

A. The Group leases various assets including land, buildings, company cars, multifunction printers, and the lease contract period is usually between 1 and 50 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 (except for Mainland China), but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise buildings, parking spaces and office equipments.
C. Information about the land use right that was pledged to others as collaterals is provided in Note 8.
D. The information on the carrying amount of the right-of-use assets and the recognized depreciation expense is as follows:

	December 31, 2025	December 31, 2024
	Carrying amount	Carrying amount
Land	$ 134,362	$ 136,530
Buildings	221,583	250,142
Transportation equipment	2,156	1,979
	$ 358,101	$ 388,651
	2025	2024
	Depreciation	Depreciation
Land	$ 8,462	$ 7,180
Buildings	38,988	37,930
Transportation equipment	865	1,268
	$ 48,315	$ 46,378

E. The increases in the Group's right-of-use assets in 2025 and 2024 were NT$26,063 thousand and NT$40,025 thousand, respectively.

F. Information on the profit and loss items related to the lease contract is as follows:

	Year ended December 31, 2025	Year ended December 31, 2024
Items affecting current profit and loss
Interest expense on lease liabilities	$ 8,494	$ 8,630
Expense on short-term lease contracts	$ 7,539	$ 9,443
(Gain) loss on lease modifications	($ 84)	$ 33

G. The Group's total cash outflows on leases in 2025 and 2024 were NT$61,146 thousand and NT$61,277 thousand, respectively.
H. As the Group adjusted the rents for the year ended December 31, 2025, the Group's right-of-use assets and lease liabilities increased by NT$411 thousand and NT$327 thousand, respectively, and a gain on lease modification of NT$84 thousand was recognized.
I. As the Group adjusted the rents for the year ended December 31, 2024, the Group's right-of-use assets and lease liabilities increased by NT$2,421 thousand and NT$2,454 thousand, respectively, and a loss on lease modification of NT$33 thousand was recognized.

(10) Intangible assets

Original cost	2025
	Beginning balance	Increase	Decrease	Transfers	Net exchange difference	Ending balance
Patents	$ 197,565	$ 8,098	($ 1,921)	$ -	$ -	$ 203,742
Computer software	46,391	2,853	( 1,797)	-	( 376)	47,071
Goodwill	227,374	-	-	-	-	227,374
Other intangible assets	238	-	-	-	-	238
Total	$ 471,568	$ 10,951	($ 3,718)	$ -	($ 376)	$ 478,425
Accumulated depreciation	Beginning balance	Increase	Decrease	Transfers	Net exchange difference	Ending balance
Patents	($ 156,258)	($ 20,909)	$ 1,921	$ -	$ -	($ 175,246)
Computer software	( 26,602)	( 6,665)	1,797	-	388	( 31,082)
Other intangible assets	( 195)	( 13)	-	-	-	( 208)
Total	($ 183,055)	($ 27,587)	$ 3,718	$ -	$ 388	($ 206,536)
Accumulated impairment	Beginning balance	Increase	Decrease	Transfers	Net exchange difference	Ending balance
Goodwill	($ 24,107)	$ -	$ -	$ -	$ -	($ 24,107)
Book value	$ 264,406					$ 247,782

~48~

Original cost	2024
	Beginning balance	Increase	Decrease	Transfers	Net exchange difference	Ending balance
Patents	$ 205,538	$ 321	($ 8,294)	$ -	$ -	$ 197,565
Computer software	37,339	14,804	( 6,390)	-	638	46,391
Goodwill	227,374	-	-	-	-	227,374
Other intangible assets	88	-	-	150	-	238
Total	$ 470,339	$ 15,125	($ 14,684)	$ 150	$ 638	$ 471,568
Accumulated depreciation	Beginning balance	Increase	Decrease	Transfers	Net exchange difference	Ending balance
Patents	($ 135,188)	($ 29,364)	$ 8,294	$ -	$ -	($ 156,258)
Computer software	( 25,269)	( 7,115)	6,390	-	( 608)	( 26,602)
Other intangible assets	( 78)	( 25)	-	( 92)	-	( 195)
Total	($ 160,535)	($ 36,504)	$ 14,684	($ 92)	($ 608)	($ 183,055)
Accumulated impairment	Beginning balance	Increase	Decrease	Transfers	Net exchange difference	Ending balance
Goodwill	$ -	($ 24,107)	$ -	$ -	$ -	($ 24,107)
Book value	$ 309,804					$ 264,406

A. The details of amortization of intangible assets are as follows:

	2025	2024
Operating costs	$ 13,454	$ 21,525
Amortization expenses	214	723
Administrative expenses	5,541	4,879
Research and development expenses	8,378	9,377
	$ 27,587	$ 36,504

B. The goodwill generated by the Group due to the acquisition of RAC was NT$197,091 thousand. For the years ended December 31, 2025 and 2024, the recoverable amount calculated by the Group based on the value in use exceeded the carrying amount, so the goodwill was not impaired. The value in use is calculated based on the cash flow estimates, which are based on the five-year financial budgets approved by management. The discount rate on main assumptions used in calculating value in use was 16.62% and 9.8%, respectively, and the revenue growth rate ranged from 40% to 50% and 47% to 22%, respectively.

C. The goodwill generated by RAC due to the acquisition of MaxWin Group was NT$30,283 thousand. For the year ended December 31, 2025, as the recoverable amount calculated using the value-in-use exceeded the carrying amount, so the goodwill was not impaired. For the year ended December 31, 2024, as the recoverable amount calculated using the value-in-use was less than their carrying amount, an impairment loss of NT$24,107 thousand was recognized for the goodwill. The goodwill, net of impairment loss, amounted to NT$6,176 thousand. The value in use is calculated based on the cash flow estimates, which are based on the five-year financial budgets approved by management. The discount rate on main assumptions used in calculating value in use was 16.62% and 14.21%, respectively, and the revenue growth rate ranged from 40% to 50% and 5% to 40%, respectively.

D. Impairment information about the intangible assets is provided in Note 6(11).

E. The Group has no intangible assets pledged to others.

(11) Impairment of non-financial assets

A. Details of the impairment loss recognized by the Group are as follows:

| | 2025
Recognised in profit or loss | 2024
Recognised in profit or loss |
| --- | --- | --- |
| Impairment loss—goodwill | $ - | $ 24,107 |

B. Impairment information about the intangible assets is provided in Note 6(10).

(12) Short-term borrowings

Type of loans	December 31, 2025	Interest rate range	Collateral
Bank credit loans	$ 1,024,446	1.965%~5.15%	None
Bank secured loans		1.965%~2.3%	Restricted deposit, land, buildings and structures
	143,000
	$ 1,167,446
Type of loans	December 31, 2024	Interest rate range	Collateral
Bank credit loans	$ 1,169,724	1.910%~5.725%	None
Bank secured loans		1.965%~7.077%	Restricted deposit, land, buildings and structures
	226,925
	$ 1,396,649

(13) Short-term notes and bills payable

Type of loans	December 31, 2025	Interest rate range	Guarantee institution
Commercial papers payable	$ 240,000	2.108%-2.578%	International Bills Finance Corporation, China Bills Finance Corporation
Less: Discount on commercial papers payable	( 244)
	$ 239,756
Type of loans	December 31, 2024	Interest rate range	Guarantee institution
Commercial papers payable	$ 160,000	2.01%~2.518%	International Bills Finance Corporation, China Bills Finance Corporation
Less: Discount on commercial papers payable	( 179)
	$ 159,821

(14) Other payables

	December 31, 2025	December 31, 2024
Wages and salaries payable	$ 63,358	$ 57,942
Bonuses payable	55,499	44,217
Labor and health insurance payable	10,203	7,319
Payable on employees’ compensation and directors’ remuneration	5,144	-
Business taxes payable	4,938	5,450
Payables for equipment	4,215	7,295
Others	58,315	46,106
Total	$ 201,672	$ 168,329

(15) Provisions

	December 31, 2025	December 31, 2024
Current provisions	$ 36,835	$ 18,265
Non-current provisions	59,521	45,687
Total	$ 96,356	$ 63,952

	2025
	Beginning balance	Additional liability provisions	Liability provisions used	Liability provision reversed	Ending balance
Electric bus warranty	$61,607	$81,878	($48,904)	$-	$94,581
Litigation loss	-	5,176	(5,176)	-	-
Software of station sign warranty	614	112	(279)	(447)	-
Other provisions	1,731	592	(548)	-	1,775
Total	$63,952	$87,758	($54,907)	($447)	$96,356
	2024
	Beginning balance	Additional liability provisions	Liability provisions used	Liability provision reversed	Ending balance
Electric bus warranty	$57,514	$114,386	($110,293)	$-	$61,607
Software of station sign warranty	1,828	3,865	(1,131)	(3,948)	614
Other provisions	1,982	-	(251)	-	1,731
Total	$61,324	$118,251	($111,675)	($3,948)	$63,952

D. Thunder Sky Winston Battery Limited (hereinafter referred to as “Thunder Sky Winston”) requested the Group to pay US$700 thousand for the goods. On June 16, 2023, the Taoyuan District Court rendered a judgment that the Group should pay US$700 thousand to Thunder Sky Winston, and pay statutory interests which were calculated at the rate of 5% per annum for the period from January 11, 2020 up to the settlement date to Thunder Sky Winston. Thunder Sky Winston disagreed with the abovementioned judgement and filed an appeal. On August 20, 2024, the High Court rendered a judgment to upheld certain verdict of the first instance and deny Thunder Sky Winston’s request of statutory delayed interests from April 25, 2022 to January 11, 2020.

The Group and Thunder Sky Winston both disagreed with the abovementioned judgement and filed an appeal on October 1, 2024. On July 28, 2025, the Supreme Court denied the appeal and the case was affirmed. The Group should pay US$700 thousand to Thunder Sky Winston, and pay statutory interests which were calculated at the rate of 5% per annum for the period from January 11, 2020 up to the settlement date to Thunder Sky Winston, totalling NT$27,370 thousand. On August 31, 2025, the Group had settled and wrote down the accounts payable and provisions.

E. On June 30, 2021, the Group entered into a “purchase contract for twenty electric low-floor buses” with Metropolitan Transport Corporation (collectively referred herein as “Metropolitan Transport”). Metropolitan Transport’s bus of route 262 caught fire in Taipei on June 16, 2025. After the incident, vehicles of the same model on the route were suspended for a comprehensive safety inspection as required by the competent authorities. The Group collaborated with the customer to repair the vehicles comprehensively and the route was approved for resumption of service by the competent authorities on July 9, 2025. The fire investigation report of the incident had been completed. As the original vehicle was destroyed by the fire, the Group provided compensation measures after negotiating with the bus carrier, resulting in a decrease by NT$11,583 thousand in gross profit for the year ended December 31, 2025.

(16) Bonds payable

	December 31, 2025	December 31, 2024
Bonds payable	$ -	$ 1,000,000
Less: Discount on bonds payable	-	( 616)
Less: Bonds payable, current portion	-	( 999,384)
	$ -	$ -

A. Domestic convertible bonds issued by the Company Conditions for 2nd issuance of domestic unsecured convertible bonds by the Company are as follows:

(a) The total issuance amount is NT$1,055,139 thousand, with a par value of NT$100 thousand each, and a coupon rate of 0%. The issuance period is 3 years, and the circulation period is from January 26, 2022 to January 26, 2025. The conversion price of these convertible bonds

is set at NT$73.1 per share at the time of issuance, and will be repaid in cash at the bond par value at maturity.

(b) From the day following the expiration of three months after the issuance date of these bonds to ten days before the maturity date, except for the lock-up period in accordance with regulations or laws, the holders of these convertible bonds may request the Company to convert them into the Company’s ordinary shares. The rights and obligations of ordinary shares converted are the same as the ones previously issued.

(c) From the day following the expiration of three months from the date of issuance (April 27, 2022) of these convertible bonds to forty days before the expiration of the issuance period (December 17, 2024), if the closing price of the Company’s ordinary shares exceeds the current conversion price by 30% (inclusive) or more for 30 consecutive business days, the Company’s outstanding convertible bonds will be redeemed in cash at the bond par value.

(d) According to the provisions of the issuance and conversion regulations, all the convertible corporate bonds that the Company has withdrawn (including repurchased from the places of business of securities firms), repaid or converted will be canceled and cannot be resold or issued, and the conversion rights attached to them will also be extinguished.

B. Regarding the issuance of convertible bonds, the equity conversion options amounting to NT$83,378 thousand were separated from the liability component and were recognised in ‘capital surplus—share options’ in accordance with IAS 32. The redemption right embedded in bonds payable were separated from their host contracts and were recognised in ‘financial assets or liabilities 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. The effective interest rates of the bonds payable after such separation is 1.0958%.

C. The 2nd domestic unsecured convertible bonds issued by the Company had matured on January 26, 2025. In addition, the Company repurchased its convertible bonds amounting to NT$1,000,000 thousand from the Taipei Exchange on February 7, 2025.

~53~

(17) Long-term borrowings

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2025
Credit loans	From November 29, 2019 to November 15, 2029; the interest is paid monthly, and the principal shall be repaid monthly after 36 months from the first drawdown.	1.325%~1.825%	None	$ 654,325
Credit loans	From January 5, 2021 to February 15, 2028; the principal is payable monthly from October 2021.	0.875%~3.398%	Note	720,963
Credit loans	From September 27, 2019 to August 15, 2028; the interest is paid monthly, and the principal shall be repaid monthly after 36 months from the first drawdown.	0.720%	None	270,613
Credit loans	From May 2, 2025 to May 2, 2030; the interest is paid monthly, and the principal is repayable every 6 months, starting from 36 months after the date of first drawing.	2.977%	None	250,000
Secured loans	From December 25, 2025 to June 25, 2027; the interest is paid monthly, and the principal will be repaid in a lump sum at maturity.	2.25%	Land use right and buildings	1,350
Secured loans	From November 17, 2017 to November 17, 2039; payable in equal monthly amortization.	2.478%~2.884%	Office building and reserve account	134,335
Secured loans	From May 2, 2025 to May 2, 2030; the interest is paid monthly, and the principal is repayable every 6 months, starting from 36 months after the date of first drawing.	2.977%	Land and buildings	950,000
				2,981,586
Less: Long-term loans maturing within one year				(1,022,755)
Less: Discounts on government grants				(13,364)
				$ 1,945,467

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2024
Credit loans	From November 29, 2019 to November 15, 2029; the interest is paid monthly, and the principal shall be repaid monthly after 36 months from the first drawdown.	1.325%	None	$ 819,892
Credit loans	From September 4, 2020 to February 15, 2028; the principal is payable monthly from October 2021.	0.875%~3.238%	Note	510,623
Credit loans	From September 27, 2019 to August 15, 2028; the interest is paid monthly, and the principal shall be repaid monthly after 36 months from the first drawdown.	0.720%	None	375,876
Secured loans	From May 23, 2024 to November 16, 2025; the interest is paid monthly, and the principal will be repaid in a lump sum at maturity.	2.80%	Land use right and buildings	111,502
Secured loans	From November 17, 2017 to November 17, 2039; payable in equal monthly amortization.	2.478%	Office building	40,615
Credit loans	From September 27, 2024 to August 29, 2027; the interest is paid monthly, and the principal will be repaid in a lump sum at maturity.	2.160%	None	37,000
Secured loans	From June 2, 2023 to June 2, 2025; the interest is paid monthly, and the principal will be repaid in a lump sum at maturity.	5.50%	Restricted deposits	32,785
				1,928,293
Less: Long-term loans maturing within one year				( 766,643)
Less: Discounts on government grants				( 24,403)
				$ 1,137,247

Note: Certain abovementioned credit facilities were guaranteed by the Small & Medium Enterprise Credit Guarantee Fund of Taiwan.

A. On July 12, 2022, RAC entered into a five-year syndicated loan agreement of NT$1,500,000 thousand with 16 syndicated creditor banks including Hua Nan Commercial Bank. The funds obtained from the syndicated loan are used to pay off the existing liabilities of financial institutions and to supplement the medium-term operating working capital:

(a) During the term of the loan, RAC is required to maintain the following financial ratios and shall provide the calculation of ratios once on the consolidated financial statements audited or reviewed by independent auditors every six months.

i. Current ratio shall not be less than 100%;
ii. Gearing ratio
For the years ended December 31, 2023 and 2022: Less than 250%.
From the year ended December 31, 2024: Less than 200%.
iii. Net tangible assets shall be maintained at or above NT$1 billion from the year ended December 31, 2024.

(b) During the term of the loan, the Company (joint guarantor) is required to maintain the following financial ratios and shall provide the calculation of ratios once on the consolidated financial statements audited or reviewed by independent auditors every six months.

i. Current ratio shall not be less than 100%;
ii. Gearing ratio shall not be higher than 200%;
iii. Interest coverage ratio shall not be less than 2;
iv. Net tangible assets shall be maintained at or above NT$2.1 billion.

(c) If the Company or RAC is unable to comply with any of the abovementioned financial ratios and requirements in the most recent annual or semi-annual financial statements, they must apply for the capital increase or used other method of adjustment to meet the requirements before the next annual or semi-annual financial statements are issued (referred herein as the 'improvement period'). If the improvement can be completed during the improvement period, which is calculated based on the financial statements audited or reviewed by independent auditors, it will not be considered as a violation of the commitment.

i. The Company was unable to comply with the aforementioned interest coverage ratio in the financial statements as of and for the year ended December 31, 2024. As the Company did not adjust the ratio to meet the requirements in the Company's financial statements for the six months ended June 30, 2025, the Company paid interests based on the unpaid facility amount of each tranche at that time at an agreed applicable interest plus an additional interest rate. As the Company violated the contract terms, the bank has the right to require the Company to make early repayment of the outstanding loan amount of NT$585,600 thousand. However, the aforementioned amount is originally repayable at maturity within one year. As of March 10, 2026, the bank does not require the Company to make early repayment.

ii. Due to the Company's was unable to comply with the gearing ratio in the financial report of 2025, it is currently in the improvement period. If the improvement are completed within the improvement period (as measured based on the financial statements audited or reviewed by independent auditors), this shall not be considered as a violation of the commitment.

(d) RAC shall remit (deposit) 80% of the amount of the proceeds of the sales contract (excluding the signing bonus) of each drawdown borrowings into the accounts to repay the Tranche A facility used under the sales contract. The management bank flexibly calculated the amount (deposited) remitted for the current month on a monthly basis.

~56~

B. On March 25, 2025, the Group entered into a syndicated loan agreement of NT$1,700,000 thousand with Chang Hwa Bank. The funds obtained from the syndicated loan are used to pay off the existing liabilities of financial institutions and to supplement the medium-term operating working capital. As stipulated in the syndicated loan agreement:

(a) During the term of the loan, the Group is required to maintain the following financial ratios and shall provide the calculation of ratios once on the consolidated financial statements audited or reviewed by independent auditors every six months.

i. Current ratio shall not be less than 100%;

ii. Gearing ratio ((net financial liabilities - cash and cash equivalents) / net tangible assets): Less than 250%.

iii. Interest coverage ratio ((income before tax + interest expense + depreciation and amortisation) / interest expense): At least 150%.

iv. Net tangible assets (equity - intangible assets): Maintain at least NT$1.9 billion from the second quarter of 2025; maintain at least NT$2.1 billion from fiscal year 2026.

(b) If the Group is unable to comply with any of the abovementioned financial ratios and requirements, the Group shall propose specific improvements to the management bank immediately. The improvement period is from the balance sheet date for the current period (that is, June 30 and December 31) to the balance sheet date for the next period. If the consolidated financial statements reviewed or audited by independent auditors for the next period meet the abovementioned financial ratios and requirements, the aforesaid failure to comply with financial covenants will not be considered as an event of default. However, the interest rate of the Group's syndicated loan shall be calculated based on the original agreed interest rate plus an additional interest rate of 0.2% per annum for the period from the interest payment date of the month following the date of financial statements issued up to the interest payment date of the month following the date which the financial ratios in the financial statements are improved to meet all the abovementioned financial ratios and requirements.

(c) As reviewed and calculated on December 31, 2025, the financial ratios in the consolidated financial statements do not violate the abovementioned requirements.

C. On October 20, 2025, RAC entered into a three-year long-term loan agreement of NT$300,000 thousand with the EnTie Commercial Bank. As stipulated in the loan agreement, the Company shall provide the consolidated financial statements reviewed or audited by independent auditors every six months, and the profit before tax shall be positive. If the profit before tax is not met, the contractual interest rate will plus an additional increased annual interest rate. When the profit before tax is met, the original terms can be restored.

D. For information on the provision for pledge guarantee, refer to Note 8 for details.

~57~

~58~

(18) Government grants

	December 31, 2025	December 31, 2024
Deferred revenue - current (listed in “other current liabilities, others”)	$ 7,259	$ 7,969
Long-term deferred revenue	35,726	42,985
	$ 42,985	$ 50,954

A. As of December 31, 2025, the Company has obtained government preferential interest rate loans from E.SUN Bank and Chang Hwa Commercial Bank under the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan”, with an amount of NT$270,613 thousand and NT$654,325 thousand, respectively, for capital expenditures and operating turnover. The loans will be repaid in August 2028 and November 2029, respectively. The fair values of the borrowings were estimated at NT$289,250 thousand and NT$672,003 thousand, respectively, based on the market interest rates at the time of borrowing. The aforementioned market interest rates were 2.22% and 1.83%, respectively. The differences between the obtained amount and the fair value of the loan were $18,637 thousand and $17,678 thousand, respectively, which were regarded as government low-interest loan grants and recognized as deferred revenues (shown as “other current liabilities, others and long-term deferred revenue”). This deferred revenue was transferred to gain on government grants of NT$5,032 thousand and NT$4,651 thousand on a straight-line basis over the estimated useful life of the assets for the years ended December 31, 2025 and 2024, respectively.

B. As of December 31, 2025, RAC has obtained government preferential interest rate loans from Mega International Commercial Bank and Chang Hwa Commercial Bank with an amount of NT$27,800 thousand and NT$110,396 thousand, respectively, for capital expenditures and operating turnover. The loans will be repaid in May 2026 and February 2028, respectively. The fair values of the borrowings were estimated at NT$27,293 thousand and NT$104,233 thousand, respectively, based on the market interest rates at the time of borrowing. The aforementioned market interest rates were 1.35% and 1.6%, respectively. The differences between the obtained amount and the fair value of the loan were NT$507 thousand and NT$6,163 thousand, respectively, which were regarded as government low-interest loan grants and recognized as deferred revenues (shown as “other current liabilities-others and long-term deferred revenue”). The deferred revenues have been transferred to gain on government grants of NT$2,937 thousand and NT$2,911 thousand on a straight-line basis over time for the years ended December 31, 2025 and 2024, respectively.

C. The Group’s other grants in 2025 and 2024 were NT$6,276 thousand and NT$12,659 thousand, respectively.

(19) Pensions

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, 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 Labor Standards Act. 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 six months prior to retirement. The Company contributes monthly an amount equal to 4% of the employees' monthly salaries and wages to the pension fund deposited with Bank of Taiwan, the trustee, under the name of the Supervisory Committee of Labor Retirement Reserve. Also, the Company assesses the balance in the aforementioned labor pension reserve account by December 31 of every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by the end of next March. In addition, the Company sets aside pension reserve for the appointed managers. In 2025 and 2024, the recognized cost of pensions was NT$170 thousand and NT$147 thousand, respectively (under the net defined benefit liabilities).

Net defined benefit liabilities for appointed managers as at December 31, 2025 and 2024 were NT$32,674 thousand and NT$30,720 thousand, respectively.

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

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 109,575	$ 108,031
Fair value of plan assets	( 74,881)	( 71,178)
Net defined benefit liabilities (including appointed managers)	$ 34,694	$ 36,853

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
2025
Balance - January 1	$108,031	$71,178	$36,853
Service costs for the current period	1,247	-	1,247
Interest expenses (income)	1,680	(1,112)	568
	110,958	(72,290)	38,668
Number of remeasurement:
Return on plan assets (excluding amounts included in interest income or fees)	-	(4,953)	(4,953)
Change in demographic assumptions	(25)	-	(25)
Effect of changes in financial assumptions	1,827	-	1,827
Experience adjustments	1,664	-	1,664
	3,466	(4,953)	(1,487)
Contribution to pension fund	-	(2,487)	(2,487)
Pension paid	(4,849)	4,849	-
Program cuts	-	-	-
Balance as of December 31	$109,575	$74,881	$34,694
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
2024
Balance - January 1	$108,856	$64,493	$44,363
Service costs for the current period	1,040	-	1,040
Interest expenses (income)	1,254	(738)	516
	111,150	(65,231)	45,919
Number of remeasurement:
Return on plan assets (excluding amounts included in interest income or fees)	-	(6,201)	(6,201)
Change in demographic assumptions	2	-	2
Effect of changes in financial assumptions	(3,073)	-	(3,073)
Experience adjustments	5,317	-	5,317
	2,246	(6,201)	(3,955)
Contribution to pension fund	-	(5,111)	(5,111)
Pension paid	(5,365)	5,365	-
Program cuts	-	-	-
Balance as of December 31	$108,031	$71,178	$36,853

(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 utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being 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, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The actuarial assumptions related to the pensions are summarized below:

	2025	2024
Discount rate	1.35%	1.60%
Future salary increase rate	2.00%	2.00%

Assumptions for future mortality in 2025 and 2024 are estimated based on the Sixth Taiwan Standard Ordinary Experience Mortality Table, respectively.

The analysis of the present value of the defined benefit liabilities due to changes in the key actuarial assumptions adopted is as follows:

	Discount rate		Future salary increase rate
	Increase by 0.25%	Decrease by 0.25%	Increase by 0.25%	Decrease by 0.25%
December 31, 2025
Effect on the present value of the defined benefit liabilities	($ 1,825)	$ 1,883	$ 1,866	($ 1,818)
December 31, 2024
Effect on the present value of the defined benefit liabilities	($ 1,845)	$ 1,903	$ 1,890	($ 1,842)

The sensitivity analysis above is based on the analysis of the impact of a change in a single assumption while other assumptions remain unchanged. In practice, many changes in assumptions may be linked. Sensitivity analysis is consistent with the methodology used to

calculate the net pension liability on the balance sheet.

The methods and assumptions used in the preparation of the sensitivity analysis for this year are the same as those for the previous year.

(f) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2026 amount to NT$2,465 thousand.

(g) As of December 31, 2025, the weighted average duration of the pension plan was 6 years. The maturity analysis of pension payments is as follows:

Less than 1 year	$	6,147
1 to 2 years		4,619
2 to 5 years		52,802
Over 5 years		56,830
	$	120,398

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 pensions accrued are paid monthly or in lump sum in line with the amounts in employees' individual accounts and the amounts of accumulated gains.

(b) The pension costs recognized by the Group under the New Plan in 2025 and 2024 were NT$19,421 thousand and NT$20,347 thousand, respectively.

C. In accordance with the relevant pension regulations of the "Interim Regulation on the Collection and Payment of Social Insurance Premiums of the People's Republic of China", Mobiletron Ningbo sets aside 14%~16% of the basic pension payment base announced by the Yuyao Municipal People's Government on a monthly basis for local employees and migrant workers. The pensions of all active and retired employees are arranged by the country as a whole, and the Company has no other obligations except for the monthly contribution. The pension costs recognized by Mobiletron Ningbo under the New Plan in 2025 and 2024 were NT$11,043 thousand and NT$9,992 thousand, respectively.

D. REGITAR U.S.A INC. and DUROFIX, INC. applied for the establishment of a 401K benefit plan. The plan is that employees voluntarily contribute 1%~6% of the total salary to their retirement account, and the employer will provide 1%~3.5% of the pension cost correspondingly. The pension costs recognized by REGITAR U.S.A INC. and DUROFIX, INC. under the New Plan in 2025 and 2024 were NT$1,758 thousand and NT$1,436 thousand, respectively.

E. For the rest of the Group's subsidiaries adopting the defined contribution pension plan, the pension costs recognized in 2025 and 2024 in accordance with local laws and regulations were NT$1,766 thousand and NT$2,282 thousand, respectively.

~62~

(20) Share-based payment

A. In 2025 and 2024, the share-based payment agreements of RAC were as follows:

Type of arrangement	Grant date	Grant quantity	Contract period	Vesting conditions
First restricted stocks to employees in 2025	2025.4.24	1,000 units	4 years	Note 1
Cash capital increase reserved for employee preemption	2024.1.4	56 units	NA	Vested immediately
First restricted stocks to employees in 2021	2021.8.5	1,000 units	7 years	Note 2

Note 1: The duration of the vested rights in the first restricted employee shares of 2025 is four years. For employees who meet the eligibility conditions, the vested shares are as follows:

(a) Those who have been granted with 1-year vesting and have met the performance conditions given by the Company: 25% can be vested upon reaching the performance appraisal result;

(b) Those who have been granted with 2-year vesting and have met the performance conditions given by the Company: 25% can be vested upon reaching the performance appraisal result;

(c) Those who have been granted with 3-year vesting and have met the performance conditions given by the Company: 25% can be vested upon reaching the performance appraisal result;

(d) Those who have been granted with 4-year vesting and have met the performance conditions given by the Company: 25% can be vested upon reaching the performance appraisal result;

The abovementioned vested shares are rounded up and in units of thousand shares: The performance conditions are determined by market price.

Note 2: The duration of the vested rights in the first restricted employee shares of 2021 is seven years. For employees who meet the eligibility conditions, the vested shares are as follows:

(a) Those who have been granted with 3-year vesting and have met the performance conditions given by the Company: 20% can be vested upon reaching the performance appraisal result;

(b) Those who have been granted with 4-year vesting and have met the performance conditions given by the Company: 20% can be vested upon reaching the performance appraisal result;

(c) Those who have been granted with 5-year vesting and have met the performance conditions given by the Company: 20% can be vested upon reaching the performance appraisal result;

(d) Those who have been granted with 6-year vesting and have met the performance

~63~

conditions given by the Company: 20% can be vested upon reaching the performance appraisal result;

(e) Those who have been granted with 7-year vesting and have met the performance conditions given by the Company: 20% can be vested upon reaching the performance appraisal result;

The abovementioned vested shares are rounded up and in units of thousand shares: The performance conditions are determined by market price.

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

(a) Restricted stocks to employees :

	2025		2024
	Number of shares (thousands)	Weighted average exercise price (NT$)	Number of shares (thousands)	Weighted average exercise price (NT$)
Beginning balance	504	$ -	684	$ -
Restricted employee shares granted	1,000	-	-	-
Canceled restricted stocks to employees	(56)	-	(180)	-
Ending balance	1,448	-	504	-

(b) Cash capital increase reserved for employee preemption

There was no such transaction for the year ended December 31, 2025.

	2024
	Number of shares (thousands)	Weighted average exercise price (NT$)
Options granted	56	$ 36
Options exercised	(56)	36

C. RAC's share-based payment transaction granted on the grant date uses the closing price of RAC's stock on the grant date as a measure of fair value. The relevant information is as follows:

Type of arrangement	Grant date	Stock price (NT$)	Exercise price (NT$)	Fair value per unit (NT$)
First restricted stocks to employees in 2025	2025.4.24	$ 24.10	$ -	$ 23.99
Cash capital increase reserved for employee preemption	2024.1.4	30.09	36	-
First restricted stocks to employees in 2021	2021.8.5	35.70	-	12.38~12.97

D. The fees incurred in share-based payment transactions are as follows:

	2025	2024
Equity settlement	$ 9,692	($ 236)

(21) Share capital

On December 31, 2025, the total capital of the Company was NT$1,850,000 thousand, divided into 185,000 thousand shares (5,000 thousand shares in employee stock options), NT$10 per share, and the paid-in capital was NT$985,475 thousand, divided into 98,547 thousand shares. All share price payable for the issued shares of the Company's have been received.

The number of outstanding shares of the Company's ordinary shares at the beginning and end of the year is adjusted as follows (unit: thousand shares):

	2025	2024
The number of shares at the beginning and end of the year	98,547	98,547

(22) Capital surplus

Pursuant to the R.O.C. Company Act, capital reserve arising from paid-in capital in excess of par value on issuance of ordinary shares 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 reserve to be capitalized mentioned above should not exceed 10% of the paid in capital each year. Capital reserve should not be used to cover accumulated deficit unless the surplus reserve is insufficient.

	2025
	Share premium	Share options	Adjustments arising from changes in percentage of ownership in subsidiaries	Net change in equity of associates	Others	Total
At January 1	$ 270,461	$ 83,378	$ 7,947	$ 412	$ 676	$ 362,874
Recognition of change in equity of subsidiaries in proportion to the Group's ownership	-	-	855	-	-	855
Recognition of changes in ownership interest in associates	-	-	-	445	-	445
Convertible bonds redeemed at maturity	-	(83,378)	-	-	83,378	-
At December 31	$ 270,461	$ -	$ 8,802	$ 857	$ 84,054	$ 364,174

	2024
	Share premium	Share options	Adjustments arising from changes in percentage of ownership in subsidiaries	Net change in equity of associates	Others	Total
At January 1	$ 270,461	$ 83,378	$ 34,188	$ 867	$ 676	$ 389,570
Recognition of change in equity of subsidiaries in proportion to the Group's ownership	-	-	(26,241)	-	-	(26,241)
Recognition of changes in ownership interest in associates	-	-	-	(455)	-	(455)
At December 31	$ 270,461	$ 83,378	$ 7,947	$ 412	$ 676	$ 362,874

(23) Retained earnings

A. In accordance with the Articles of Incorporation of the Company, if there is net profit after the Company's annual accounting, it shall, in addition to being used to pay for income tax in accordance with the law, first be used to cover the losses in previous years, then 10% of the amount shall be set aside as a legal reserve and another sum may be appropriated as a special reserve in accordance with the law. The remaining amount shall be distributed, after combining with the undistributed earnings from the previous year into the accumulated distributable earnings, per the earnings distribution proposal drafted by the board of directors to be submitted to the shareholders' meeting for final resolution and distribution.

B. The Company's dividend policy is as follows: Due to the ever-changing environment in which the Company is in and the fact that the Company's life cycle is in now the stage of stable growth, in order to consider the improvement of the Company's financial structure, the status of operating surplus and the need to expand its business scale in the future, it is proposed to adopt a residual dividend policy. The earnings distribution proposal proposed by the board of directors shall be submitted to the shareholders' meeting for resolution. Dividends can be made in the form of cash dividends or stock dividends, of which the distribution of cash dividends shall be no less than 10% of the shareholder dividends.

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 new stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company's paid-in capital.

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

(b) For the special reserve amounting to NT$5,153 thousand in letter Jin-Guan-Zheng-Fa-Zi No. 1090150022 dated March 31, 2011 when IFRSs were adopted for the first time, the Group reverses it based on the original proportion of special reserve when relevant assets are subsequently used, disposed of or reclassified.

E. During the shareholders’ meetings on June 17, 2025 and June 18, 2024, the Company’s deficit compensations for 2024 and 2023 were as follows:

	2024		2023
	Amount		Amount
Special reserve	($	55,077)	($	2,542)

F. The appropriations of 2025 earnings as proposed by the Board of Directors on March 10, 2026 were as follows:

	2025
	Amount
Statutory reserve	$	5,879
Special reserve		6,197
	$	12,076

As of March 10, 2026, the aforementioned appropriations are yet to be resolved by the shareholders.

(24) Other equity items

	Unrealized (losses) gains on investments in equity instruments at fair value through other comprehensive income	Foreign currency translation	Total
January 1, 2025	($ 179,074)	($ 36,078)	($ 215,152)
Valuation adjustments	7,680	-	7,680
Valuation adjustment tax amount	1,359	-	1,359
Foreign currency translation differences:
– Group	-	( 19,045)	( 19,045)
– The Group’s tax	-	3,809	3,809
December 31, 2025	($ 170,035)	($ 51,314)	($ 221,349)

	Unrealized (losses) gains on investments in equity instruments at fair value through other comprehensive income	Foreign currency translation	Total
January 1, 2024	($ 169,447)	($ 100,782)	($ 270,229)
Valuation adjustments	1,626	-	1,626
Valuation adjustment tax amount	101	-	101
Revaluation transferred to retained earnings – gross	( 11,354)	-	( 11,354)
Foreign currency translation differences:
– Group	-	80,880	80,880
– The Group’s tax	-	( 16,176)	( 16,176)
December 31, 2024	($ 179,074)	($ 36,078)	($ 215,152)

(25) Operating revenue

	2025	2024
Revenue from contracts with customers	$ 4,003,764	$ 3,345,244

A. Classification of revenue from contracts with customers

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

	2025	2024
At a point in time
Automotive electronics	$ 1,555,605	$ 1,644,493
Digital tools	358,645	414,690
Electric bus bodies	1,911,838	789,084
Batteries and chargers	-	307,311
Maintenance and others	164,149	179,119
	$ 3,990,237	$ 3,334,697
Over time
Electric bus charging stations	10,159	8,018
Others	3,368	2,529
	$ 13,527	$ 10,547
Total	$ 4,003,764	$ 3,345,244

2025
2025	Automotive electronics				Total
	Americas	Europe	Asia	Others
Revenue from contracts with external customers	$ 767,944	$ 442,153	$ 1,611,541	$ 50,640	$ 2,872,278
Revenue from internal sector transactions	( 292,084)	( 108,729)	( 915,860)	-	( 1,316,673)
Revenue from contracts	$ 475,860	$ 333,424	$ 695,681	$ 50,640	$ 1,555,605
2025
2025	Digital tools				Total
	Americas	Europe	Asia	Others
Revenue from contracts with external customers	$ 238,444	$ 56,236	$ 186,806	$ 97	$ 481,583
Revenue from internal sector transactions	( 59,324)	( 17,379)	( 46,235)	-	( 122,938)
Revenue from contracts	$ 179,120	$ 38,857	$ 140,571	$ 97	$ 358,645
2025
2025	Electric Bus				Total
	Americas	Europe	Asia	Others
Revenue from contracts with external customers	$ -	$ -	$ 2,095,970	$ -	$ 2,095,970
Revenue from internal sector transactions	-	-	( 6,456)	-	( 6,456)
Revenue from contracts	$ -	$ -	$ 2,089,514	$ -	$ 2,089,514

2024
2024	Automotive electronics				Total
	Americas	Europe	Asia	Others
Revenue from contracts with external customers	$ 634,843	$ 523,671	$ 1,455,021	$ 55,696	$ 2,669,231
Revenue from internal sector transactions	( 216,424)	( 154,653)	( 653,661)	-	( 1,024,738)
Revenue from contracts	$ 418,419	$ 369,018	$ 801,360	$ 55,696	$ 1,644,493
2024
2024	Digital tools				Total
	Americas	Europe	Asia	Others
Revenue from contracts with external customers	$ 301,091	$ 54,593	$ 196,638	$ 2,434	$ 554,756
Revenue from internal sector transactions	( 73,132)	( 10,714)	( 56,220)	-	( 140,066)
Revenue from contracts	$ 227,959	$ 43,879	$ 140,418	$ 2,434	$ 414,690
2024
2024	Electric Bus				Total
	Americas	Europe	Asia	Others
Revenue from contracts with external customers	$ -	$ -	$ 1,287,215	$ -	$ 1,287,215
Revenue from internal sector transactions	-	-	( 1,154)	-	( 1,154)
Revenue from contracts	$ -	$ -	$ 1,286,061	$ -	$ 1,286,061

(a) Among the sales of the aforementioned electric bus bodies, batteries, chargers and charging stations, those belong to the variable consideration amounting to NT$1,309,480 thousand (NT$1,374,954 thousand, including tax) and NT$713,000 thousand (NT$748,650 thousand, including tax). Under the contract, the payment methods shall comply with the subsidy regulations of “Operation Directions for Subsidy of Electric Bus from the Highway Bureau, MOTC”. As the collection of certain payments depends on the relevant subsidy received by the customers, thus, the abovementioned payments are assessed as the variable consideration specified in the paragraph 50 to paragraph 54 of IFRS 15. The aforesaid variable consideration is based on the maximum amount of the subsidy from the relevant units of the Ministry of Transportation and Communication as the standard, and the part that cannot be performed shall be deducted from the purchase price based on its responsibility attribution. Based on the Group’s assessment, there is a high probability that there will be no significant reversal of the variable consideration, but it will only be paid after the customer obtains the government subsidy.

(b) Details of government grant terms are as follows:

i. For contracts before June 11, 2024, except for the annual availability rate of the aforementioned variable consideration shall be at least 98% (in the first three years of operation), an approval letter that the value-added rate reaches 50% shall also be obtained.

ii. For contracts starting from June 11, 2024, the aforementioned variable consideration requires an annual availability rate of at least 98% (operational in the first three years). If the customers' availability rate fails to meet this requirement due to intentional or negligent acts attributable solely to the Group, thereby damaging the customers' rights and interests, the subsidy for impaired vehicles in that year shall be borne by the Group. However, if the insufficient and continuously uncorrected annual availability rate is caused by factors unrelated to the Group (such as customer labor shift scheduling), the subsidy for impaired vehicles shall not be the responsibility of the Group.

(c) For contracts before June 11, 2024, an approval letter that the value-added rate reaches 50% shall be obtained, and then the customer applied for grants from the Ministry of Transportation and Communication. Once approved, the Ministry of Transportation and Communication will appropriate the funds to the customer's account, and then the customer will pay the payment in installments to the Group which were mentioned in item (1).

~71~

B. Contract assets and contract liabilities

(a) Contract assets and contract liabilities arising from revenue of contracts with customers recognized by the Group are as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract assets:
Contract assets – current – Contracts for the sale of buses	$ 1,285,040	$ 996,998	$ 668,568
Contract assets – non-current – Contracts for the sale of buses	57,933	121,964	235,152
Contract assets – current – Project revenue	-	-	1,923
	$ 1,342,973	$ 1,118,962	$ 905,643
Contract liabilities:
Contract liabilities – Receipt in advance for sales of electric medium buses	$ 917	$ 917	$ 1,517
Contract liabilities – Receipt in advance for sales of buses	199,228	36,014	26,870
Contract liabilities – Project revenue	5,829	4,611	49
Contract liabilities – Sales of goods	8,431	24,756	7,551
	$ 214,405	$ 66,298	$ 35,987

Contract assets are on the nature of terms of sales contracts with variable consideration, and the recovery of relevant amount is determined by the time when the agreed conditions are met. Please refer to A (a) for details of the related variable consideration.

(b) Transfer to accounts receivable for the year from beginning contract assets:

	2025	2024
Beginning balance of contract assets transfer to accounts receivable during the year	$ 809,224	$ 457,339

	2025	2024
Beginning balance of contract liabilities revenue recognized during the year	$ 64,470	$ 34,110

(d) Some of the above contract assets involved in litigation due to performance disputes. Details are provided in Note 9(1).

(26) Interest income

	2025	2024
Interest income from financial assets at fair value through profit or loss	49,593	26,512
Interest income from bank deposits	8,100	24,903
Interest income from financial assets measured at amortised cost	4,482	9,156
Other interest income	44	862
	$ 62,219	$ 61,433

(27) Other income

	2025	2024
Profit from government grants	$ 14,245	$ 20,221
Dividend income	3,655	1,555
Rent income	488	545
Other income, others	17,856	17,282
	$ 36,244	$ 39,603

For relevant information on government grants income, refer to Note 6(18) for details.

(28) Other gains and losses

	2025		2024
Foreign exchange (losses) gains	($	5,445)	$	45,638
Loss on financial assets at fair value through profit or loss	(	2,390)	(	3,301)
Loss on disposals of property, plant and equipment	(	370)	(	30)
Gain (loss) on lease modifications		84	(	33)
Gain on disposals of investments		49		-
Impairment loss recognised in profit or loss		-	(	24,107)
Other gains and losses	(	247)	(	7,445)
	($	8,319)	$	10,722

(29) Finance costs

	2025	2024
Interest expense - bank borrowings	$ 95,902	$ 81,513
Interest expense - lease liabilities	8,494	8,630
Interest expense - short-term notes and bills	3,345	2,219
Interest expense - convertible bonds	616	10,886
Interest expense - others	5,877	-
	$ 114,234	$ 103,248

(30) Expenses by nature

	2025
	Operating Costs	Operating Expenses	Total
Employee benefit expenses
Salary expenses	$ 247,962	$ 442,732	$ 690,694
Compensation costs relating to share-based payment	1,403	8,289	9,692
Labour and health insurance fees	24,964	33,478	58,442
Pension costs	14,153	21,650	35,803
Remuneration paid to directors	-	7,263	7,263
Other personnel expenses	15,263	12,810	28,073
	$ 303,745	$ 526,222	$ 829,967
Depreciation	$ 86,098	$ 100,708	$ 186,806
Amortization	$ 13,454	$ 14,133	$ 27,587
	2024
	Operating Costs	Operating Expenses	Total
Employee benefit expenses
Salary expenses	$ 249,508	$ 432,757	$ 682,265
Compensation costs relating to share-based payment	-	(236)	(236)
Labour and health insurance fees	25,904	32,352	58,256
Pension costs	14,632	20,981	35,613
Remuneration paid to directors	-	6,597	6,597
Other personnel expenses	12,642	12,074	24,716
	$ 302,686	$ 504,525	$ 807,211
Depreciation	$ 87,307	$ 102,993	$ 190,300
Amortization	$ 21,525	$ 14,979	$ 36,504

A. In order to motivate employees and the management team, the Company, in accordance with the provisions of the Articles of Incorporation, deducts the profit before the distribution of employees' compensation and directors' remuneration according to the profit before tax of the current year, and after covering the losses, if there is any balance, the directors' remuneration not more than 3% and the employees' compensation not less than 3% shall be set aside, of which the amount of the aforementioned employees' compensation shall be distributed in a ratio not lower than 20% for non-managerial employees. When the employees' compensation is distributed in the form of stock or cash, the Board of Directors shall resolve by a resolution of at least two-thirds of the directors present and a majority of the directors present, and report to the shareholders' meeting. Employees' compensation may be distributed in stock or cash, including employees at affiliated companies that meet certain criteria.

B. Based on the Company's Articles of Incorporation, for the year ended December 31, 2025, the employees' compensation and directors' remuneration were estimated and accrued based on 3% and 2% of distributable profit of current year as of the end of reporting period. Employees' compensation and directors' remuneration were accrued as follows:

	2025	2024
Employees' compensation	$ 2,175	$ -
Directors' remuneration	1,450	-
	$ 3,625	$ -

The aforementioned amounts were recognised in salary expenses. The employees' compensation and directors' remuneration were not accrued as the Company generated losses for the year ended December 31, 2024.

Information about the Company's employees' compensation and directors' remuneration approved by the board of directors will be posted in the "Market Observation Post System" at the website of the TWSE.

(31) Income tax

A. Income tax expense

(a) Components of income tax expense:

	2025	2024
Current tax:
Current tax on profits for the year	$ 8,419	$ 14,699
Prior year income tax under (overestimation)	3,568	(130)
Total current tax	11,987	14,569
Deferred tax:
Origination and reversal of temporary differences	227	(2,293)
Income tax expense	$ 12,214	$ 12,276

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

	2025	2024
Currency translation differences	($ 3,809)	$ 16,176
Changes in fair value of financial assets at fair value through other comprehensive income	( 1,359)	( 101)
Remeasurement of defined benefit obligations	297	791
Impact of change in tax rate	($ 4,871)	$ 16,866

B. Reconciliation between income tax expense and accounting profit

	2025		2024
Tax calculated based on profit before tax and statutory tax rate	$	24,163	($	33,825)
Expenses disallowed by tax regulation		6,257		12,739
Tax exempt income by tax regulation	(	19,969)	(	1,196)
Effect from investment tax credits	(	6,434)	(	6,436)
Temporary differences not recognised as deferred tax assets	(	3,375)	(	1,023)
Taxable loss not recognised as deferred tax assets		13,087		49,612
Prior year income tax under (overestimation)		3,568	(	130)
Change in assessment of realisation of deferred tax assets	(	2,260)		210
Effect of different tax rates in countries in which the group operates	(	2,823)	(	7,675)
Income tax expense	$	12,214	$	12,276

C. The amounts of each deferred tax asset or liability arising from temporary differences and tax losses are as follows:

	2025
	Beginning balance	Recognised in profit or loss	Recognised in other comprehensive income	Ending balance
Deferred tax assets:
—Temporary differences:
Unrealized gross profit on sales	$ 34,868	($ 6,175)	$ -	$ 28,693
Allowance provision for loss on inventory devaluation and slow-moving inventory	19,707	( 4,367)	-	15,340
Bad debt losses	2,223	274	-	2,497
Sales revenue failing to meet the transaction terms	2,791	( 87)	-	2,704
Outstanding pension accrued	6,069	( 134)	-	5,935
Adjustment measured at fair value through other comprehensive income	8,131	-	1,359	9,490
Remeasurement of defined benefit liabilities	1,406	-	( 297)	1,109
Accumulated unused vacation bonus	2,593	273	-	2,866
Cumulative translation adjustment of long-term equity investments	9,019	-	3,809	12,828
Deferred tax related to liabilities arising from a single transaction	69,583	( 5,738)	-	63,845
Others	3,446	19,575	-	23,021
Tax losses	3,587	17,331	-	20,918
Total	$ 163,423	$ 20,952	$ 4,871	$ 189,246
Deferred tax liabilities:
—Temporary differences:
Amortization of patents	($ 6,677)	$ 6,677	$ -	$ -
Gains on long-term equity investments	( 109,706)	( 34,357)	-	( 144,063)
Fixed asset depreciation book-tax differences	( 627)	471	-	( 156)
Deferred tax related to assets arising from a single transaction	( 60,433)	5,530	-	( 54,903)
Others	( 4,532)	500	-	( 4,032)
Total	($ 181,975)	($ 21,179)	$ -	($ 203,154)
		($ 227)	$ 4,871

~78~

	2024
	Beginning balance	Recognised in profit or loss	Recognised in other comprehensive income	Ending balance
Deferred tax assets:
—Temporary differences:
Unrealized gross profit on sales	$ 43,017	($ 8,149)	$ -	$ 34,868
Allowance provision for loss on inventory devaluation and slow-moving inventory	17,154	2,553	-	19,707
Bad debt losses	2,864	( 641)	-	2,223
Sales revenue failing to meet the transaction terms	2,322	469	-	2,791
Outstanding pension accrued	6,780	( 711)	-	6,069
Adjustment measured at fair value through other comprehensive income	8,030	-	101	8,131
Remeasurement of defined benefit liabilities	2,197	-	( 791)	1,406
Accumulated unused vacation bonus	2,921	( 328)	-	2,593
Cumulative translation adjustment of long-term equity investments	25,195	-	( 16,176)	9,019
Deferred tax related to liabilities arising from a single transaction	72,739	( 3,156)	-	69,583
Others	4,452	( 1,006)	-	3,446
Tax losses	3,927	( 340)	-	3,587
Total	$ 191,598	($ 11,309)	($ 16,866)	$ 163,423
Deferred tax liabilities:
—Temporary differences:
Amortization of patents	($ 10,816)	$ 4,139	$ -	($ 6,677)
Gains on long-term equity investments	( 114,733)	5,027	-	( 109,706)
Fixed asset depreciation book-tax differences	( 1,212)	585	-	( 627)
Effect of buyer tax	( 2,103)	2,103	-	-
Deferred tax related to assets arising from a single transaction	( 64,836)	4,403	-	( 60,433)
Others	( 1,877)	( 2,655)	-	( 4,532)
Total	($ 195,577)	$ 13,602	$ -	($ 181,975)
		$ 2,293	($ 16,866)

D. The Company recognizes deferred income tax liabilities only for taxable temporary differences related to investments in certain US subsidiaries - REGITAR U.S.A INC. As of December 31, 2025 and 2024, the amounts of temporary difference unrecognised as deferred tax liabilities were NT$377,313 and NT$363,633, respectively.

E. The status of the income tax returns of the Company and subsidiaries are as follows:

The status of approval

The Company, RAC and Durofix

Through 2023 have been approved

F. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

(a) Expiration dates of domestic unused tax losses and unrecognised deferred tax assets are as follows:

The Company - Mobiletron Electronics Co., Ltd.

December 31, 2025

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2025	Expected amount filed	$ 84,958	$ -	2035

There was no such transaction for the year ended December 31, 2024.

The subsidiary - RAC Electric Vehicles Inc.

December 31, 2025

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2016	Amount assessed	$ 31,721	$ 31,721	2026
2017	Amount assessed	111,348	111,348	2027
2018	Amount assessed	116,181	116,181	2028
2019	Amount assessed	110,314	110,314	2029
2020	Amount assessed	135,968	135,968	2030
2021	Amount assessed	121,594	121,594	2031
2022	Amount assessed	226,436	226,436	2032
2023	Amount assessed	79,894	79,894	2033
2024	Amount filed	218,019	218,019	2034

December 31, 2024

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2015	Amount assessed	$ 79,458	$ 79,458	2025
2016	Amount assessed	123,925	123,925	2026
2017	Amount assessed	111,348	111,348	2027
2018	Amount assessed	116,181	116,181	2028
2019	Amount assessed	110,314	110,314	2029
2020	Amount assessed	135,968	135,968	2030
2021	Amount assessed	121,594	121,594	2031
2022	Amount assessed	226,436	226,436	2032
2023	Amount filed	80,889	80,889	2033
2024	Expected amount filed	195,257	195,257	2034

(b) Expiration dates of foreign unused tax losses and unrecognised deferred tax assets are as follows:

December 31, 2025

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2012	Amount assessed	$ 14,798	$ 14,798	2032
2013	Amount assessed	36,484	36,484	2033
2014	Amount assessed	20,227	20,227	2034
2015	Amount assessed	28,751	28,751	2035
2016	Amount assessed	23,547	23,547	2036
2017	Amount assessed	26,244	26,244	2037
2018	Amount assessed	41,557	41,557	Unlimited
2019	Amount assessed	35,317	5,267	Unlimited
2023	Amount assessed	52,900	52,900	Unlimited
2024	Amount assessed	38,705	38,705	Unlimited
2025	Expected amount filed	47,008	47,008	Unlimited

December 31, 2024

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2012	Amount assessed	$ 14,798	$ 14,798	2032
2013	Amount assessed	36,484	36,484	2033
2014	Amount assessed	20,227	20,227	2034
2015	Amount assessed	28,751	28,751	2035
2016	Amount assessed	23,547	23,547	2036
2017	Amount assessed	26,244	26,244	2037
2018	Amount assessed	41,557	41,557	Unlimited
2022	Amount assessed	35,317	20,969	Unlimited
2023	Amount assessed	52,900	52,900	Unlimited
2024	Expected amount filed	38,705	38,705	Unlimited

G. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 206,345	$ 177,590

H. Tax rate application

Name of the subsidiary / sub-subsidiary	Applicable income tax law	Applicable tax rate
MUK	UK Tax Law	The tax rate depends on the amount of income, and the applicable rate is 25%
REGITAR	State Taxes: Alabama Tax Code	Applicable tax rate is 6.50%
	Federal Taxes: U.S. Federal Tax Law	Applicable tax rate is 21%
DUS	State Taxes: California Tax Code	Applicable tax rate is 8.84%
	Federal Taxes: U.S. Federal Tax Law	Applicable tax rate is 21%
Mobiletron Ningbo	Enterprise Income Tax Law of the People's Republic of China	Applicable tax rate is 15%
Mobiletron Commerce and Trade	Enterprise Income Tax Law of the People's Republic of China	Applicable tax rate is 5%
Che Lian Wang	Enterprise Income Tax Law of the People's Republic of China	Applicable tax rate is 5%

(32) Earnings (losses) per share

	2025
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 57,597	98,547	$ 0.58
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	57,597	98,547
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	67
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 57,597	98,614	$ 0.58
	2024
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Losses per share (in dollars)
Basic and diluted loss per share
Loss attributable to ordinary shareholders of the parent	($ 109,586)	98,547	($ 1.11)

A. Assumed that employees’ compensation will be distributed entirely in the form of shares for the current period, the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of earnings per share, as the effect is dilutive.
B. The convertible corporate bonds issued in 2025 and 2024 have an anti-dilutive effect, so the diluted loss per share was not calculated.

(33) Transactions with non-controlling interest

A. The subsidiary’s issuance of new shares with restricted employee rights

On October 5, 2021, RAC issued new shares with restricted employee rights. As of December 31, 2025 and 2024, RAC repurchased 56 thousand shares and 180 thousand shares, respectively, and issued 1,000 thousand and 0 thousand new shares with restricted employee rights in the same period, due to the recognition of unearned employee compensation and employees’ resignation. This transaction resulted in an increase in the non-controlling interest by NT$9,062 thousand and an increase in the equity attributable to owners of the parent by NT$630 thousand on December 31, 2025. Additionally, the transaction resulted in a decrease in the non-controlling interest by NT$1,050 thousand and an increase in the equity attributable to owners of the parent by NT$814 thousand on December 31, 2024. The effect of changes in interests in RAC on the equity attributable to owners of the parent as of December 31, 2025 and 2024 is shown below:

	2025	2024
Increase (decrease) in ownership interests in subsidiaries	$ 9,692	($ 236)
(Increase) decrease in the carrying amount of non-controlling interest	( 9,062)	1,050
Capital surplus - recognition of changes in ownership interest in subsidiaries	$ 630	$ 814

B. Changes in net asset of associates accounted for using equity method

For the year ended December 31, 2025, RAC recognized the changes in net asset of Blade Hydrogen proportionally to its interest. In addition, Blade Hydrogen completed the capital increase in August 2024 and September 2024, and RAC did not participate in the capital increase proportionally to its interest, which resulted in an increase in the Group’s non-controlling interest by NT$145 thousand and NT$3,633 thousand and an increase in the equity attributable to owners of the parent by NT$225 thousand and NT$5,649 thousand for the years ended December 31, 2025 and 2024, respectively. The effect of changes in interests in RAC on the equity attributable to owners of the parent as of December 31, 2025 and 2024 is shown below:

	2025	2024
Increase in ownership interests in subsidiaries	$ 370	$ 9,282
Increase in the carrying amount of non-controlling interest	( 145)	( 3,633)
Capital surplus - recognition of changes in ownership interest in subsidiaries	$ 225	$ 5,649

C Acquisition of additional equity interest in a sub-subsidiary

In July 2024, RAC issued 402,026 new shares to merge with MaxWin Technology, with an additional 25.51% of the issued shares of MaxWin Technology. Consequently, the Group’s shareholding in RAC decreased from 61.07% to 60.86%. This transaction resulted in a decrease

in the non-controlling interest by NT$1,770 thousand and an increase in the equity attributable to owners of the parent by NT$1,770 thousand.

D. The Group did not participate in the capital increase raised by a subsidiary proportionally to its interest to the subsidiary

There was no such transaction for the year ended December 31, 2025.

On March 6, 2024, RAC issued 20,000 new shares in cash capital increase at NT$720,000 thousand in total, and the Company did not subscribe for ordinary shares in accordance with its shareholding ratio with an amount of NT$666,603 thousand, the Company's shareholding in RAC increased from 54.80% to 61.07%. The transaction resulted to an increase in the Group's non-controlling interests by NT$252,056 thousand and decrease in the equity attributable to the parent company by NT$198,659 thousand. The effect of changes in interests in RAC on the equity attributable to owners of the parent as of December 31, 2024 is shown below:

	2024
Cash	$ 53,397
Increase in the carrying amount of non-controlling interest	(252,056)
Total	($ 198,659)
Capital surplus - recognition of changes in ownership interest in subsidiaries	($ 34,474)
Retained earnings	(164,185)
Total	($ 198,659)

(34) Supplemental cash flow information

A. Investing activities with partial cash payments

	2025	2024
Purchase of property, plant and equipment	$ 73,337	$ 82,020
Add: Opening balance of payable on equipment	7,295	4,574
Less: Ending balance of payable on equipment	( 4,215)	( 7,295)
Less: Beginning balance of advance payments for equipment	( 20,633)	( 13,313)
Add: Ending balance of advance payments for equipment	3,705	20,633
Cash paid during the year	$ 59,489	$ 86,619
	2025	2024
Purchase of intangible assets	$ 10,951	$ 15,125
Less: Beginning balance of advance payments for equipment	-	( 3,325)
Cash paid during the year	$ 10,951	$ 11,800

B. RAC sold 100% of shares in the subsidiary - MaxWin International Industrial Limited on June 30, 2025 and therefore lost control over the subsidiary (please refer to Note 4(3) B.(b)). The details of the consideration received from the transaction (including cash and cash equivalent) and assets and liabilities relating to the subsidiary are as follows:

	June 30, 2025
Consideration received
Cash	$ 178
Carrying amount of the assets and liabilities of the subsidiary - MaxWin
Cash	$ 284
Accounts receivable	614
Other current assets	102
Property, plant and equipment	35
Other payables	( 882)
Other current liabilities	( 14)
Total net assets	$ 139
Net cash used in disposal of subsidiaries:
	June 30, 2025
Net consideration received	$ 178
Less: Balance of cash and cash equivalents	( 284)
	($ 106)

(35) Changes in liabilities from financing activities

	2025
	Short-term borrowings	Convertible bonds (including current	Long-term borrowings (including current portion)	Short-term notes and bills payable	Guarantee deposits received	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 1,396,649	$ 999,384	$ 1,903,890	$ 159,821	$ 12,163	$ 403,745	$ 4,875,652
Changes in cash flow from financing activities	( 209,460)	(1,000,000)	1,061,994	77,694	-	( 45,113)	( 114,885)
Amortization of corporate bond discounts	-	616	-	-	-	-	616
Changes in other non-cash items	-	-	11,039	2,241	-	26,390	39,670
Impact of changes in foreign exchange rate	( 19,743)	-	( 8,701)	-	-	( 10,156)	( 38,600)
At December 31	$ 1,167,446	$ -	$ 2,968,222	$ 239,756	$ 12,163	$ 374,866	$ 4,762,453

2024

	Short-term borrowings	Convertible bonds (including current	Long-term borrowings (including current portion)	Short-term notes and bills payable	Guarantee deposits received	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 759,917	$ 988,498	$ 2,489,520	$ 79,980	$ 12,128	$ 387,832	$ 4,717,875
Changes in cash flow from financing activities	632,568	-	(600,363)	78,403	-	(43,204)	67,404
Amortization of corporate bond discounts	-	10,886	-	-	-	-	10,886
Changes in other non-cash items	-	-	5,564	1,438	35	42,479	49,516
Impact of changes in foreign exchange rate	4,164	-	9,169	-	-	16,638	29,971
At December 31	$ 1,396,649	$ 999,384	$ 1,903,890	$ 159,821	$ 12,163	$ 403,745	$ 4,875,652

7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
Blade Hydrogen Green Technology Co., Ltd. (Blade Hydrogen)	An associate of the Group
H2 Energy Co., Ltd. (H2 Energy)	An associate of the Group
YTT, LLC	The chairperson of the company is an immediate family member of the person in charge of REGITAR, a subsidiary of the Company
Kim Y.C. Tsai	Chairman of the Group
Nancy Tsai	The chief financial officer of the Group

~86~

(2) Significant related party transactions

A. Property transactions

Acquisition of marketable securities

There was no such transaction for the year ended December 31, 2025.

	Accounts	No. of shares (in thousands)	Objects	2024 Consideration
Blade Hydrogen	Investments	5,995	Stocks	$ 29,976
	accounted for under equity method
H2 Energy	Investments	600	Stocks
	accounted for under equity method			6,000
				$ 35,976

B. Lease transactions—lessee

(a) The Group leases buildings from YTT, LLC and Nancy Tsai for the period from 2018 to 2033. The rent was determined based on mutual agreement with reference to the rental rates in the neighborhood and was payable at the end of each month.

(b) Lease liabilities

Balance—end of year:

	December 31, 2025	December 31, 2024
YTT, LLC	$ 84,817	$ 114,703
Nancy Tsai	3,559	3,985
	$ 88,376	$ 118,688

	2025	2024
YTT, LLC	$ 2,595	$ 3,333
Nancy Tsai	53	59
	$ 2,648	$ 3,392

C. Endorsements and guarantees provided to related parties

(a) Outstanding endorsement/guarantee amount at December 31, 2025

	December 31, 2025	December 31, 2024
Kim Y.C. Tsai	$ 740,000	$ 440,000

(b) Actual amount drawn down

	December 31, 2025	December 31, 2024
Kim Y.C. Tsai	$ 241,700	$ 193,778

(3) Key management compensation

	2025	2024
Short-term employee benefits	$ 54,074	$ 55,527
Post-employment benefits	1,299	1,439
Share-based payments	2,915	( 93)
Total	$ 58,288	$ 56,873

Pledged Assets

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

Pledged asset	Purpose	Book value
		December 31, 2025	December 31, 2024
Land	Guarantee for long-term and short-term borrowings	$ 283,717	$ 283,717
Buildings and Structures	Guarantee for long-term and short-term borrowings	1,438,819	284,244
Right-of-use assets, land	Long-term loan guarantee	14,471	21,031
Financial assets at amortized cost - current	Long-term and short-term loan guarantee, long-term reserve account, bid bond and issuance of guarantees	70,811	322,940
Financial assets at amortized cost - non-current	Long-term loan guarantee, guarantee deposit for gas, customs, e-commerce sales, warranty	37,747	19,519
Refundable deposits (shown as “other non-current assets”)	Rental security deposits, warranty security deposits, and customs deposit guarantee	46,096	22,235
		$ 1,891,661	$ 953,686

In addition to the guarantee for the abovementioned assets, the Group also uses a bank credit line of NT$0 and NT$11,880 as the guarantee deposit for the subsidy plan for the years ended December 31, 2025 and 2024, respectively.

~89~

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

On August 14, 2020, the Group entered into a “purchase contract for eight electric low-floor buses” with Tamshui Bus Company, Ltd. (collectively referred herein as “Tamshui Bus”). On October 23, 2022, Tamshui Bus’s buses caught fire, which affected the bus operation of Tamshui Bus and the buses delivered to Zhinan Bus Company, Ltd., in the same batch. Tamshui Bus and Zhinan Bus Company, Ltd. had obtained the 2nd stage subsidy. However, as the responsibility in relation to this matter has not yet been clarified, the related amounts were recognized as accounts receivable of NT$9,721 thousand and non-current contract assets of NT$39,885 thousand.

Due to the fire accident, Tamshui Bus claimed damage compensation against RAC and the Company. The vehicle operation’s back office discovered that the insulation resistance was abnormally released three days before the accident due to an unauthorised forced unlocking of the alarm code. Additionally, the driver violated the requirements of the manual by not reporting the accident for repairs according to standard operating procedures and failing to obtain permission from the original manufacturer’s technicians to unlock the abnormal release of the alarm. The responsibility attribution of the accident is still under investigation.

Tamshui Bus had requested damage compensation. As of March 10, 2026, the case is under the judgment of the District Court.

(2) Commitments

A. The products’ sales and development authorization contracts signed by the Company are as follows:

Company	Pricing method for payment of premium	Contract period
General Motors	Calculated at 4% of the net sales amount of a specific product.	The premium contract is valid from January 1, 2025 to December 31, 2027.

B. Capital expenditure contracted for but not yet incurred

	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 4,036	$ 4,243

C. Amount of issued but unutilized L/C

	December 31, 2025	December 31, 2024
Issued but unutilized L/C	$ 69,179	$ 13,421

D. Performance and warranty guarantee

	December 31, 2025	December 31, 2024
Guaranteed notes payable	$ 376,574	$ 254,401

It refers to the performance and warranty guarantee arising from the sales contracts of electric buses. If significant breaches of contracts have been incurred by the Group and do not improve continuously, the customers can cash out the notes.

E. Secured promissory notes issued for bank borrowings are as follows:

	December 31, 2025	December 31, 2024
Bank borrowings	$ 5,804,685	$ 4,109,428

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

On March 5, 2026, the Board of Directors of RAC resolved to increase its capital by issuing 7,165 thousand ordinary shares with a par value of NT$10 (in dollars) per share, totaling NT$71,650 thousand. In accordance with Article 267 of the Company Act, RAC reserved 10% of the issued shares in the total amount of 717 thousand shares for employee preemption. The issuance price range is tentatively set at NT$30 (in dollars) per share. However, the Chairman is authorised to determine the actual issuance price and the method of public underwriting in conjunction with the securities underwriters in accordance with the relevant laws and the current market conditions. The Chairman is further authorised to set the relevant matters after the capital increase is approved by the competent authority.

Others

(1) Capital management

For the Group's capital management, based on the industry scale of the Company's business, while taking into account the future growth of the industry and product development, the appropriate market share is set and the corresponding capital expenditure is planned accordingly; then calculating the required working capital according to the financial operating plan, and finally, considering the operating profit and cash flow generated by the competitiveness of the product, the appropriate capital structure is then determined.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss	$ 841,729	$ 59,441
Financial assets at fair value through other comprehensive income	$ 121,600	$ 113,875
Financial assets at amortised cost
Cash and cash equivalents	$ 622,829	$ 990,966
Financial assets at amortised cost	155,960	421,516
Notes receivable	366,681	146,434
Accounts receivable	892,323	524,204
Other receivables	18,270	13,787
Long-term accounts receivable	-	6,760
Guarantee deposits paid	46,096	22,235
	$ 2,102,159	$ 2,125,902

	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings	$ 1,167,446	$ 1,396,649
Short-term notes and bills payable	239,756	159,821
Notes payable	89,665	57,632
Accounts payable	768,014	452,319
Other accounts payable	201,672	168,329
Corporate bonds payable (including current portion)	-	999,384
Long-term borrowings (including current portion)	2,968,222	1,903,890
Guarantee deposits received	12,163	12,163
	$ 5,446,938	$ 5,150,187
Lease liability	$ 374,866	$ 403,745

B. Financial risk management policies

(a) The Group's daily operations are affected by a number of financial risks, including market risk (including foreign exchange risk, interest rate risk and price risk), credit risk, and liquidity risk. The Group's overall risk management policy focuses on the unpredictable item of financial markets and seeks to reduce the risk that potentially pose adverse effects on the Group financial position and financial performance.
(b) Through close cooperation with the Company's operating units, the Group's finance department is responsible for identifying, evaluating and hedging financial risks, such as exchange rate risk, interest rate risk, credit risk, use of derivative and non-derivative financial instruments, and investment of excess working capital.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Group operates internationally, so it is subject to exchange rate risks arising from transactions that involve functional currencies different from that of the Company and its subsidiaries, mainly US dollar, Euro, Pound and Renminbi. The related exchange rate risk arises from future commercial transactions and recognized assets and liabilities.
ii. The management of the Group has set up policies requiring companies in the Group to manage the exchange rate risks relative to their functional currencies. Companies shall hedge their overall exchange rate risk through the Group's finance department. Exchange rate risk arises when future commercial transactions, recognized assets or liabilities are denominated in foreign currencies that are not the entity's functional currency.
iii. The Group holds investments in certain foreign operations, and its net assets are subject to foreign currency translation risk. The exchange rate risk arising from the net assets of

the Group's foreign operations is mainly managed through borrowings denominated in relevant foreign currencies.

iv. The business of the Group involves certain non-functional currencies (the functional currency of the Company and some subsidiaries is NTD, and the functional currencies of some subsidiaries are US dollar, Pound and RMB, etc.), so it is affected by exchange rate fluctuations. Information on assets and liabilities denominated in foreign currencies which are materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 14,727	31.43	$ 462,870
EUR:NTD	2,720	36.90	100,368
JPY: NTD	58,035	0.20	11,607
RMB:NTD	25,518	4.50	114,831
USD:RMB	1,724	6.99	54,185
EUR:GBP	1,220	0.87	45,018
Non-monetary items
USD:NTD	$ 24,069	31.43	$ 756,479
RMB:NTD	159,671	4.50	718,521
JPY:NTD	395,440	0.20	79,088
Financial liabilities
Monetary items
RMB:NTD	($ 51,972)	4.50	($ 233,874)
USD:NTD	( 430)	31.43	( 13,515)
Non-monetary items
GBP:NTD	($ 2,004)	42.33	($ 84,825)

	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$21,623	32.79	$709,018
EUR:NTD	10,980	34.14	374,857
RMB:NTD	23,966	4.48	107,368
USD:RMB	2,037	7.32	66,793
EUR:GBP	1,727	0.83	58,960
Non-monetary items
USD:NTD	$22,976	32.79	$753,397
RMB:NTD	141,657	4.48	634,623
JPY:NTD	408,467	0.21	85,778
Financial liabilities
Monetary items
USD:NTD	$(1,361)	32.79	$(44,627)
RMB:NTD	(49,610)	4.48	(222,253)
USD:RMB	(1,679)	7.32	(55,054)
Non-monetary items
GBP:NTD	$(833)	41.19	$(34,292)

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

	2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	3% $	13,886 $	-
EUR:NTD	3% $	3,011 $	-
JPY: NTD	3% $	348 $
RMB:NTD	3% $	3,445 $	-
USD:RMB	3% $	1,626 $	-
EUR:GBP	3% $	1,351 $	-
Non-monetary items
USD:NTD		Not applicable
RMB:NTD		Not applicable
JPY:NTD		Not applicable
Financial liabilities
Monetary items
RMB:NTD	3% ($	405) $	-
USD:NTD	3% ($	7,016) $	-
Non-monetary items
GBP:NTD		Not applicable

	2024
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	3% $	21,271 $	-
EUR:NTD	3% $	11,246 $	-
RMB:NTD	3% $	3,221 $	-
USD:RMB	3% $	2,004 $	-
EUR:GBP	3% $	1,769 $	-
Non-monetary items
USD:NTD		Not applicable
RMB:NTD		Not applicable
JPY:NTD		Not applicable
Financial liabilities
Monetary items
USD:NTD	3% ($	1,339) $	-
RMB:NTD	3% ($	6,668) $	-
USD:RMB	3% ($	1,652) $	-
Non-monetary items
GBP:NTD		Not applicable

vi. The total foreign exchange (loss) gain, including realized and unrealized, arising from significant foreign exchange fluctuations on the monetary items recognized by the Group in 2025 and 2024, due to the wide variety of foreign currencies, amounted to NT($5,445) thousand and NT$45,638 thousand, respectively.

Price risk

The investments held by the Group are classified as financial assets at fair value through other comprehensive income or financial assets at fair value through profit or loss on the consolidated balance sheets. To manage the price risk of equity instrument investments, the Group diversifies its investment portfolio to manage this risk.

The Group primarily invests in domestic and foreign publicly traded equity instruments and open-end funds, and the price of these equity instruments will be affected by the uncertainty of the future value of the investment. If such equity instruments' price rise or fall by 5%, with all other factors held unchanged, the net profit before tax for 2025 and 2024 would have increased or decreased by NT$3,884 thousand and NT$4,719 thousand, respectively, due to the gain or loss from equity instruments at fair value through profit or loss; and there would

be an increase or a decrease of NT$6,080 thousand and NT$5,694 thousand, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s interest rate risk arises from short-term and long-term borrowings. For short-term borrowings, borrowings issued at floating rates expose the Group to cash flow interest rate risk. For long-term borrowings, borrowings issued at fixed rates expose the Group to fair value interest rate risk. For 2025 and 2024, the Group’s borrowings at floating rates were denominated in NTD, USD and RMB.

ii. If the rate of borrowing, notes and bills increases or decreases by 0.1%, while all other factors remain unchanged, the net profit after tax for 2025 and 2024 would have increased or decreased by NT$3,511 thousand and NT$2,788 thousand, respectively.

iii. If the interest rates on debt instruments had increased/decreased by 0.1% with all other variables held constant, other comprehensive income for the years ended December 31, 2025 and 2024 would have decreased/increased by NT$611 thousand and NT$388 thousand, respectively. The main factor is that changes in market interest rates would affect the fair value of fixed interest rate bond investments held by the Group classified as financial assets at fair value through other comprehensive income.

(b) Credit risk

i. The Group’s credit risk arises from customers or financial instrument counterparties failing to perform contractual obligations, resulting in potential financial loss. The risk is mainly associated with credit impairment of trade receivables, contract assets, and other financial assets measured at amortized cost. The carrying amounts of these financial assets are net of allowance for impairment, which represents the Group’s best estimate of the cash shortfall based on expected credit losses.

ii. The Group establishes credit risk management from a group perspective. According to the credit loan quality of the financial institution, the credit of the deposit will be checked, and only after the bank is assessed to have high credit quality can it be accepted as a transaction counterparty. According to the internal credit policy, operating units in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. The internal risk control assesses customers’ credit quality by taking into account their financial position, historical experience, and other factors.

iii. The Group adopts credit risk management procedures as the basis for judging whether the credit risk of financial instruments has increased significantly since the initial recognition. When the contract payment is overdue for more than 30 to 90 days according to the agreed payment terms, it is deemed that the credit risk of the financial asset has increased significantly since the initial recognition, and individual recognition

~96~

shall be adopted.

iv. 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 issuer's financial difficulties cause the active market for such financial asset to disappear;

(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.

v. Based on the accounting policy, the default occurs when the contract payments are past due over 365 days.

vi. The Group divides the receivables and contract assets from customers into groups according to the characteristics of customer ratings, and uses the simplified method to estimate the expected credit losses based on the loss rate method.

vii. 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.

viii. The loss rate for the Group’s accounts receivable and contract assets is built through historical and timely information and loss allowance of accounts receivable is assessed by the forward-looking ability. Accounts receivable and contract assets which are expected not to be recovered upon objective evidence will be assessed individually and provided for impairment loss. As of December 31, 2025 and 2024, book value of the abovementioned accounts receivable and contract assets subject to individual assessment amounted to NT$56,282 thousand and NT$49,606 thousand, respectively. Accumulated loss allowance amounted to NT$4,432 thousand and NT$3,253 thousand, respectively. The rest of accounts receivable and contract assets are assessed by the loss rate built through historical and timely information based on the forward-looking ability. On December 31, 2025 and 2024, accumulated loss allowance amounted to NT$9,308 thousand and NT$11,191 thousand, respectively, and the provision matrix is as follows:

~97~

December 31, 2025	Expected loss rate	Total book value	Loss provision past due
Not past due	0.000%~0.002%	$ 2,255,664	$ 2
Within 30 days past due	0.008%~0.001%	99,099	5
31 to 90 days past due	0.012%~0.079%	86,965	14
91 to 180 days past due	0.038%~0.444%	71,569	37
181 to 365 days past due	0.092%~100%	37,054	166
Over 366 days past due	100.00%	9,084	9,084
Total		$ 2,559,435	$ 9,308
December 31, 2024	Expected loss rate	Total book value	Loss provision past due
Not past due	0.000%~0.058%	$ 1,677,391	$ 27
Within 30 days past due	0.010%~0.356%	50,498	14
31 to 90 days past due	0.022%~3.542%	20,864	55
91 to 180 days past due	0.049%~12.005%	1,025	37
181 to 365 days past due	0.115%~90.404%	528	166
Over 366 days past due	100.00%	10,892	10,892
Total		$ 1,761,198	$ 11,191

ix. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable and contract assets are as follows:

	2025		2024
	Accounts receivable for bad debts		Accounts receivable for bad debts
At January 1	$	14,444	$	16,388
Reversal of impairment	(	601)	(	2,454)
Effect of foreign exchange	(	103)		510
At December 31	$	13,740	$	14,444

i. Cash flow forecasting is performed by each operating entity of the Group and aggregated by Group treasury. The Group's finance department monitors the forecast of the Group's liquidity requirements to ensure that it has sufficient funds to meet the operational needs. These forecasts take into account the Group's debt financing plans, compliance with debt terms, and meeting of the internal balance sheet financial ratio targets.

ii. The remaining cash held by each operating entity will be transferred back to the finance department of the Group when it exceeds the management needs of working capital. The finance department of the Group invests the remaining funds in interest-bearing demand deposits, time deposits, money market deposits and securities. The instruments chosen by it have an appropriate maturity date or sufficient liquidity to meet the above forecasts and provide sufficient capital movement.

iii. The Group has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate:
Expiring within one year	$ 400,620	$ 1,133,426
Expiring beyond one year	1,636,400	1,736,000
Fixed rate:
Expiring within one year	-	1,984
	$ 2,037,020	$ 2,871,410

iv. The following table shows the Group's non-derivative financial liabilities, which are analyzed based on the remaining period from the balance sheet date to the contract maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

December 31, 2025	Less than 6 months	Between 6 months and 1 year	Between 1 and 2 years	Over 2 years	Total
Non-derivative financial liabilities
Short-term borrowings	$ 1,121,771	$ 50,555	$ -	$ -	$ 1,172,326
Short-term notes and bills payable	240,000	-	-	-	240,000
Notes payable	89,665	-	-	-	89,665
Accounts payable	768,014	-	-	-	768,014
Other payables	201,672	-	-	-	201,672
Lease liability	29,565	29,613	59,283	323,561	442,022
Long-term borrowings (including current portion)	1,020,445	262,420	327,750	1,547,319	3,157,934
Guarantee deposits received	59	-	-	12,104	12,163
Total	$ 3,471,191	$ 342,588	$ 387,033	$ 1,882,984	$ 6,083,796

~100~

December 31, 2024	Less than 6 months	Between 6 months and 1 year	Between 1 and 2 years	Over 2 years	Total
Non-derivative financial liabilities
Short-term borrowings	$ 1,364,749	$ 43,206	$ -	$ -	$ 1,407,955
Short-term notes and bills payable	160,000	-	-	-	160,000
Notes payable	57,632	-	-	-	57,632
Accounts payable	452,319	-	-	-	452,319
Other payables	168,329	-	-	-	168,329
Lease liability	27,077	27,122	55,451	352,163	461,813
Bonds payable (including current portion)	1,000,000	-	-	-	1,000,000
Long-term borrowings (including current portion)	421,963	373,775	378,566	789,289	1,963,593
Guarantee deposits received	59	-	-	12,104	12,163
Total	$ 3,652,128	$ 444,103	$ 434,017	$ 1,153,556	$ 5,683,804

(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 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/OTC-traded stocks and emerging stocks is included in Level 1.

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 convertible corporate bonds issued by the Group is included in Level 2.

Level 3: Unobservable inputs for the asset or liability. The Group’s investment in equity instruments without active market, convertible bonds and redemption right of the issued convertible bonds are included in Level 3.

B. Financial instruments not measured at fair value

(a) Except for those listed in the table below, the carrying amounts of the Company’s financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable, other receivables, short-term loans, short-term notes and bills payable, notes and accounts payable, other payables and long-term loans) approximate to their fair values:

There was no such transaction as of December 31, 2025.

December 31, 2024

	Book value	Fair value
		Level 1	Level 2	Level 3
Financial liabilities:
Bonds payable	$ 999,384	$ -	$ 999,400	$ -

(b) The methods and assumptions of fair value estimate are as follows:

Convertible bonds payable:

Regarding the convertible bonds issued by the Group, the coupon rate approximates to the current market interest rate. Therefore, its fair value is estimated using the discounted value of its expected cash flows.

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 is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Equity fund	$ 42,638	$ -	$ -	$ 42,638
Redemption right of convertible bonds	6,104	-	-	6,104
Listed stocks	-	-	764,043	764,043
Convertible bond	-	-	28,944	28,944
Financial assets at fair value through other comprehensive income
Emerging market stocks	6,306	-	-	6,306
Unlisted stocks	-	-	115,294	115,294
	$ 55,048	$ -	$ 908,281	$ 963,329

~102~

December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Money fund	$ 30,641	$ -	$ -	$ 30,641
Equity fund	28,541	-	-	28,541
Redemption right of convertible bonds	5,557	-	-	5,557
Listed stocks	-	-	485,063	485,063
Convertible bond	-	-	29,639	29,639
Financial assets at fair value through other comprehensive income
Emerging market stocks	10,282	-	-	10,282
Unlisted stocks	-	-	103,593	103,593
	$ 75,021	$ -	$ 618,295	$ 693,316

D. The methods and assumptions the Group used to measure fair value are as follows:

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

	Listed shares	Emerging market stocks	Open-end fund
Market quoted price	Closing price	Average transaction price	Net asset value

(b) 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, including calculated by applying model using market information available at the consolidated balance sheet date.

(c) When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

(d) For financial instruments with relatively high complexity, the Group measures the fair value with the self-developed valuation models based on the valuation methods and techniques widely used in the industry. Such valuation models are usually used for derivative financial instruments, debt instruments with embedded derivatives, or securitized products. Some inputs used in such valuation models are not information normally observable in the market, so the Group must make appropriate estimates based on assumptions.

(e) The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present discounted value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward

exchange rate.

(f) 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, such as model risk or liquidity risk, etc. 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 present the fair value of financial and non-financial instruments at the consolidated balance sheet. The pricing information and inputs used during valuation are carefully assessed and adjusted based on current market conditions.

(g) The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group's credit quality.

E. For the years ended December 31, 2025 and 2024, 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, 2025 and 2024:

	2025		2024
	Financial instruments		Financial instruments
At January 1	$	618,295	$	436,950
Losses recognised in profit or loss	(	16,441)	(	7,972)
Gain or loss recognized in other comprehensive income		11,701		5,153
Acquired in the period		314,490		163,925
Effect of exchange rate changes	(	19,764)		20,239
At December 31	$	908,281	$	618,295

G. The finance department of the Group is in charge of valuation procedures for fair value measurements being categorized within Level 3, that the resource of financial information is independent, reliable and in line with other resources and representative of the exercisable price, while frequently calibrates valuation model, performs back-testing, and updates inputs and data used in the valuation model.

H. 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:

	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted shares	$ 36,143	Comparable to TWSE/TPEx listed stocks	Price to book ratio	1.09~2.54	The higher the multiplier, the higher the fair value
			Liquidity risk discount	25%~40%	The higher the discount for liquidity, the lower the fair value
	63	Comparable to TWSE/TPEx listed stocks	Price to sales ratio	0.85	The higher the multiplier, the higher the fair value
			Liquidity risk discount	50%	The higher the discount for liquidity, the lower the fair value
	28,944	Net asset value method	N/A	-	N/A
	79,088	Weighted average of price to book ratio and market price method	Net asset value per share	$2,985.07	The higher the net asset value per share, the higher the fair value
			Price to book ratio in the same industry Discount for liquidity	4.05 28.34%	The higher the price to book ratio in the same industry, the higher the fair value The higher the discount for liquidity, the lower the fair value
Hybrid instrument:
Convertible bonds	$ 764,043	Discounted cash flow method	Discount rate	11.82%~11.94%	The higher the discount rate, the lower the fair value
		Black-Scholes model	Volatility	41.25%	The higher the volatility, the higher the fair value

	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted shares	$ 17,691	Comparable to TWSE/TPEx listed stocks	Price to book ratio	1.48~2.81	The higher the multiplier, the higher the fair value
			Liquidity risk discount	25%~40%
	124	Comparable to TWSE/TPEx listed stocks	Price to sales ratio	1.20	The higher the multiplier, the higher the fair value
			Liquidity risk discount	50%
	29,639	Net asset value method	N/A	-	N/A
Redemption right of convertible bonds	85,778	Income-based method	Cost of equity ratio	13.63%~14.63%	The higher the cost of equity ratio, the lower the fair value
		Binomial tree model	Stock price volatility	29.11%	The higher the volatility, the higher the fair value
Hybrid instrument:
Convertible bonds	$ 485,063	Discounted cash flow method	Discount rate	11.37%~11.41%	The higher the discount rate, the lower the fair value
		Black-Scholes model	Volatility	32.37%	The higher the volatility, the higher the fair value

I. 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 categorised within Level 3 if the inputs used to valuation models have changed:

	Input	Change	December 31, 2025
			Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change

Financial assets
Equity instrument	Net asset value per share	±5%	$ -	$ -	$ 3,954	($ 3,954)
Equity instrument	Equity to book ratio	±5%	-	-	1,807	( 1,807)
Equity instrument	Price to sales ratio	±5%	-	-	3	( 3)
Hybrid instrument
Convertible bond	Discount rate	±5%	2,919	2,821	-	-
			$ 2,919	$ 2,821	$ 5,765	($ 5,765)
			December 31, 2024
			Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instrument	Cost of equity	±5%	$ -	$ -	$ 4,289	($ 4,289)
Equity instrument	Equity to book ratio	±5%	-	-	885	( 885)
Equity instrument	Price to sales ratio	±5%	-	-	6	( 6)
Hybrid instrument
Redemption right of convertible bonds	Stock price volatility	±5%	-	-	-	-
Convertible bond	Discount rate	±5%	2,378	( 2,570)	-	-
			$ 2,378	($ 2,570)	$ 5,180	($ 5,180)

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Refer to Table 1.
B. Provision of endorsements and guarantees to others: Refer to Table 2.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Refer to Table 3.

D. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Refer to Table 4.
E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Refer to Table 5.
F. Significant inter-company transactions during the reporting periods (only transaction information with an amount of more than 10 million NTD is disclosed): Refer to Table 6.

(2) Information on investees

Names, locations and other information of the invested companies (not including investees in Mainland China): Refer to Table 7.

(3) Information on investments in Mainland China

A. Basic information: Refer to Table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Refer to Table 9.

Segment Information

(1) General information

The management of the Group has identified the segments that shall be reported based on the reporting information used by the board of directors in operating the business and making decisions, and has divided the business organization into automotive electronics, digital tools, and electric bus segments according to operating segments. The Company's revenue is mainly from the production and sales of electronic components, power tools, electric buses and other products.

The Group's corporate composition, the basis for division of segments and the basis for measurement of segment information have not changed materially during the current period.

(2) Measurement of segment information

The Group's operating segment evaluates the performance of the segment based on the income/(loss) before tax.

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

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

2025	Automotive electronics department	Digital tools department	Electric bus department	Total
Revenue from external customers	$ 2,872,278	$ 481,583	$ 2,095,970	$ 5,449,831
Inter-segment revenue	( 1,316,673)	( 122,938)	( 6,456)	( 1,446,067)
Total segment revenue	$ 1,555,605	$ 358,645	$ 2,089,514	$ 4,003,764
Segment income (loss)	$ 131,315	($ 144,221)	$ 155,988	$ 143,082
Segment income (loss), including:
Interest income	$ 60,514	$ 758	$ 947	$ 62,219
Finance cost	( 66,840)	( 15,068)	( 32,326)	( 114,234)
Income tax (expense) benefit	( 43,503)	26,855	4,434	( 12,214)
Recognised investment loss which is adopting equity method	-	-	( 1,564)	( 1,564)
Depreciation and amortisation	132,331	30,432	51,630	214,393
2024	Automotive electronics department	Digital tools department	Electric bus department	Total
---	---	---	---	---
Revenue from external customers	$ 2,669,231	$ 554,756	$ 1,287,215	$ 4,511,202
Inter-segment revenue	( 1,024,738)	( 140,066)	( 1,154)	( 1,165,958)
Total segment revenue	$ 1,644,493	$ 414,690	$ 1,286,061	$ 3,345,244
Segment income (loss)	$ 154,585	($ 124,185)	($ 203,372)	($ 172,972)
Segment income (loss), including:
Interest income	$ 56,634	$ 3,550	$ 1,249	$ 61,433
Finance cost	( 56,524)	( 16,383)	( 30,341)	( 103,248)
Income tax (expense) benefit	( 36,676)	24,611	( 211)	( 12,276)
Recognised investment loss which is adopting equity method	-	-	( 349)	( 349)
Depreciation and amortisation	141,387	35,483	49,934	226,804

(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. The total reconciled income for the current year and the total income from continuing operations are reconciled as follows:

	2025	2024
Post-adjustment income of operating segments to be reported	$ 5,449,831	$ 4,511,202
Eliminated intersegment revenue	( 1,446,067)	( 1,165,958)
Consolidated total operating revenues	$ 4,003,764	$ 3,345,244

B. The reconciled profit and loss before tax for the current year and the profit and loss before tax from continuing operations are reconciled as follows:

	2025	2024
Pre-adjustment loss before tax of operating segments to be reported	$ 143,082	($ 172,972)
Eliminated intersegment income (loss)	( 20,052)	( 19,008)
Profit (loss) before tax from continuing operations	$ 123,030	($ 191,980)

(5) Information on products and services

Revenue from external customers mainly comes from the manufacture, trading and sales of automotive electronic igniters, voltage regulators, rectifiers, impactors, electric drills, screwdrivers and electric nailing machine, the body, battery and charger of electric buses and maintenance and technical support services for electric buses, etc. and service revenue.

	2025	2024
Sales revenue	$ 3,999,990	$ 3,163,596
Service revenue	3,774	181,648
Total	$ 4,003,764	$ 3,345,244

(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
U.S.A.	$ 654,980	$ 193,047	$ 646,378	$ 217,518
Europe	339,388	-	379,099	-
Mainland China	792,141	129,648	739,666	139,001
Others in Asia	358,157	-	385,445	-
United Kingdom	32,893	36,012	33,798	34,109
Republic of China	1,775,468	2,444,790	1,102,728	2,548,296
Others	50,737	-	58,130	-
Total	$ 4,003,764	$ 2,803,497	$ 3,345,244	$ 2,938,924

The Group's geographical revenue is calculated based on the country of sales. Non-current assets refer to property, plant and equipment, right-of-use assets, intangible assets and other non-current assets, but exclude investments on equity method, financial instruments, deferred income tax assets and refundable deposits.

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2025 and 2024 is as follows:

	2025			2024
	Revenue	Segment		Revenue	Segment
Customer A	$ 395,400	Electric Bus	Customer A	$ 134,894	Electric Bus
Customer B	300,808	Electric Bus	Customer B	-	Electric Bus
Customer C	257,896	Electric Bus	Customer C	157,402	Electric Bus
Customer D	235,734	Electric Bus	Customer D	451,200	Electric Bus

(Remainder of page intentionally left blank)

~110~

Mobiletron Electronics Co., Ltd. and its Subsidiaries

Loans to others

January 1 to December 31, 2025

Table 1

Unit: Expressed in thousands of New Taiwan Dollars

(Except as otherwise indicated)

Collateral

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party (Y/N)	Maximum outstanding balance in current period	Balance - end of period	Actual amount drawn down	Interest rate range	Interest rate range (Note 2)	Amount of transaction with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Name	Value	Limit on loans granted to a single party	Ceiling on total loans granted	Remark
0	Mobiletron Electronics Co., Ltd.	DUROFIX INC.	Other receivables - related parties	Y	$ 178,152	$ 178,152	$ 178,152	3.50%	(1)	$ 260,714	N/A	$ -	None	$ -	$ 260,714	$ 458,473	Note 3
1	Durofix Co., Ltd.	Mobiletron Electronics Co., Ltd.	Other receivables - related parties	Y	20,000	-	-	0.50%	(2)		-	Business operation	-	None	-	524	524

Note 1: The numbers filled are described as follows:

(1) For the issuer, fill in 0.
(2) The investee company is numbered sequentially starting from Arabic number 1 according to the company type.

Note 2: Nature of loan.

(1) Those with whom the Company conducts business.
(2) Where a short-term financing is necessary.

Note 3: If the funds are lent to a company or firm with a business relationship, the total amount of the loan shall not exceed 20% of the lender's net worth; and the amount of individual loans shall not exceed the amount of business transactions between the two parties in the last two years.

Note 4: Limits for those who need short-term financing: The total amount of the loan shall not exceed 40% of the lender's net worth; and the amount of individual loans shall not exceed 40% of the lender's net worth.

Table 1

Mobiletron Electronics Co., Ltd. and its Subsidiaries

Provision of endorsements and guarantees to others

January 1 to December 31, 2025

Table 2

Unit: Expressed in thousands of New Taiwan Dollars

(Except as otherwise indicated)

Party being endorsed/guaranteed

No. (Note 1)	Endorser/guarantor	Company name	Relationship (Note 2)	Limit on endorsements/ guarantees provided for a single party	Maximum outstanding endorsement/ guarantee amount in current period	Outstanding endorsement/ guarantee amount at end of period	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsements/ guarantees to net worth per latest financial statements	Ceiling on total amount of endorsements/ guarantees provided	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to a party in Mainland China	Remark
0	Mobiletron Electronics Co., Ltd.	DUROFIX, INC.	Note 1	$ 1,833,892	$ 66,410	$ 62,860	$ 15,715	$ -	2.74%	$ 2,292,365	Y	N	N	Note 3, Note 4
0	Mobiletron Electronics Co., Ltd.	RAC Electric Vehicles Inc.	Note 2	1,833,892	1,512,205	1,459,000	815,463	-	63.65%	2,292,365	Y	N	N	Note 3, Note 4
1	Mobiletron Electronics (Ningbo) Co., Ltd.	Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	Note 1	287,191	206,816	206,816	63,861	-	28.80%	351,809	Y	N	Y	Note 5
1	Mobiletron Electronics (Ningbo) Co., Ltd.	Yuyao Mobiletron Electronics Commerce And Trade Co., Ltd.	Note 1	287,191	45,730	44,960	890	-	6.26%	351,809	Y	N	Y	Note 5

Note 1: The numbers filled are described as follows:
(1). For the issuer, fill in 0
(2). The investee company is numbered sequentially starting from Arabic number 1 according to the company type.
Note 2: Relationship between the party being endorsed/guaranteed and the Company.
(1). The relationship between the party being endorsed/guaranteed and the Company is the Company's sub-subsidiary.
(2). The relationship between the party being endorsed/guaranteed and the Company is the Company's subsidiary.
Note 3: The total amount of endorsements/guarantees the Company makes for a single firm shall not exceed 80% of the Company's net worth in the current period.
Note 4: The total cumulative external endorsement / guarantee liability of the Company and its subsidiaries as a whole: shall not exceed 100% of the Company's net worth in the current period.
Note 5: Limit on the amount of endorsements/guarantees for a single firm: shall not exceed 40% of Mobiletron Electronics (Ningbo) Co., Ltd.'s net worth; the total amount of external endorsement/guarantees: shall not exceed 49% of Mobiletron Electronics (Ningbo) Co., Ltd.'s net worth.

Mobiletron Electronics Co., Ltd. and its Subsidiaries

Holding of marketable securities (not including subsidiaries, associates and joint ventures)

December 31,2025

Table 3
Unit: Expressed in thousands of New Taiwan Dollars
(Except as otherwise indicated)

Name of the Company or invested company	Marketable securities	Relationship with the securities issuer	General ledger account	End of the Period
				Number of shares	Carrying amount	Ownership (%)	Fair value	Remark
Mobiletron Electronics Co., Ltd.	Stock Asia Pacific Microsystems, Inc.	-	Financial assets at fair value through other comprehensive income - non-current	840,685	$ 8,044	1.79%	$ 16,219
Mobiletron Electronics Co., Ltd.	Stock Clientron Corp.	-	Financial assets at fair value through other comprehensive income - non-current	816,829	22,583	1.28%	6,306
Mobiletron Electronics Co., Ltd.	Stock NExT-Solutions Inc.	-	Financial assets at fair value through other comprehensive income - non-current	13,820	97,593	5.15%	79,088
Mobiletron Electronics Co., Ltd.	Stock V2Plus Technology Inc.	-	Financial assets at fair value through other comprehensive income - non-current	5,937,500	17,765	18.15%	-
Mobiletron Electronics Co., Ltd.	Stock Megago Tech Co., Ltd.	-	Financial assets at fair value through other comprehensive income - non-current	4,547,494	6,155	14.81%	19,022
Mobiletron Electronics Co., Ltd.	Stock AMIT system service Ltd.	-	Financial assets at fair value through other comprehensive income - non-current	230,208	2,096	8.41%	902
Mobiletron Electronics (Ningbo) Co., Ltd.	Stock Changchun Trarrii Electronic Technology Co., Ltd.	-	Financial assets at fair value through other comprehensive income - non-current	1,000,000	1,760	16.67%	63
RAC Electric Vehicles Inc.	Stock Green Hydrotec Inc.	-	Financial assets at fair value through other comprehensive income - non-current	975,000	-	7.87%	-
				Valuation adjustments	155,996		$ 121,600
					34,396
					$ 121,600
Mobiletron Electronics Co., Ltd.	Stock Bei Ke Zhi Xing Venture Capital Co., Ltd.	-	Financial assets at fair value through profit or loss - non-current	2,000,000	$ 31,354	6.67%	$ 28,944
Mobiletron Electronics Co., Ltd.	Fund Yuanta Mainstream Equity Fund	-	Financial assets at fair value through profit or loss - current	489,471	5,000	-	42,638
Mobiletron Electronics Co., Ltd.	Stock Others (Note 1)	-	Financial assets at fair value through profit or loss - current	303,097	10,804	-	6,104
REGITAR U.S.A. INC.	Convertible bonds Optimal Electric Vehicles LLC.	-	Financial assets at fair value through profit or loss - current	-	473,150	-	462,191
Mobiletron Electronics Co., Ltd.	Convertible bonds Optimal Electric Vehicles LLC.	-	Financial assets at fair value through profit or loss - current	-	164,700	-	154,289
Mobiletron Electronics Co., Ltd.	Convertible bonds Optimal Electric Vehicles LLC.	-	Financial assets at fair value through profit or loss - non-current	-	149,790	-	147,563
					834,798		$ 841,729
				Valuation adjustments	8,631
				Effect of exchange rate changes	( 1,700)
					$ 841,729

Note 1: The remaining marketable securities that do not exceed 5% of the account or NT$10 million shall be presented as part of 'Others'.

Mobiletron Electronics Co., Ltd. and its Subsidiaries

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

January 1 to December 31, 2025

Table 4

Unit: Expressed in thousands of New Taiwan Dollars

(Except as otherwise indicated)

Purchaser / seller	Counterparty	Relationship	Transaction				Differences in transaction terms and reasons		Notes / accounts (receivable) payable		Remark
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes / accounts (receivable) payable
Mobiletron Electronics Co., Ltd.	Mobiletron Electronics (Ningbo) Co., Ltd.	The Company's sub-subsidiary	Purchase of outsourced processing	$ 298,241	33%	Payment shall be made within 180 days after the monthly settlement	Note 1	The payment period for general suppliers is 90 days after the monthly settlement	($ 133,857)	(48%)	-
Mobiletron Electronics Co., Ltd.	Yuyao Mobiletron Electronics Commerce And Trade Co., Ltd.	The Company's sub-subsidiary	Purchases	141,824	16%	Payment shall be made within 30 to 60 days after the import of the goods	Note 2	The payment period for general suppliers is 90 days after the monthly settlement	( 30,097)	(11%)	-
Mobiletron Electronics Co., Ltd.	REGITAR U.S.A. INC.	A subsidiary of the Company	Sales revenue	( 202,410)	(17%)	Payment shall be collected within 30 to 60 days after shipment	Note 2	The payment period for general customers is 30 to 90 days after the monthly settlement.	64,125	13%	-
Mobiletron Electronics Co., Ltd.	DUROFIX, INC.	The Company's sub-subsidiary	Sales revenue	( 147,560)	(12%)	Payment shall be collected within 180 days after shipment	Note 2	The payment period for general customers is 30 to 90 days after the monthly settlement.	109,935	23%	-
Mobiletron Electronics Co., Ltd.	RAC Electric Vehicles Inc.	A subsidiary of the Company	Sales revenue	( 222,224)	(18%)	Payment shall be collected within 120 days after the monthly settlement	Note 2	The payment period for general customers is 30 to 90 days after the monthly settlement.	126,839	27%	-
Mobiletron Electronics Co., Ltd.	MOBILETRON U.K. LTD.	A subsidiary of the Company	Sales revenue	( 126,108)	(10%)	Payment shall be collected within 180 days after shipment	Note 2	The payment period for general customers is 30 to 90 days after the monthly settlement.	68,104	14%	-
RAC Electric Vehicles Inc.	Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	Same parent company	Purchases	232,647	(14%)	Certain payment shall be made by paying 20% as deposits in advance, and the remaining 80% shall be made within 45 days after the monthly settlement; others shall be made within 45 days after the monthly settlement	Note 2	The payment period for general suppliers is 90 days after the monthly settlement	( 29,175)	(5%)	-

Note 1: The selling price is based on the company's costs plus 12%–18%.
Note 2: It is difficult to compare the selling price conditions of the relevant products with those of non-related parties.

Mobiletron Electronics Co., Ltd. and its Subsidiaries

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

December 31,2025

Unit: Expressed in thousands of New Taiwan Dollars

(Except as otherwise indicated)

Table 5

Creditor	Counterparty	Relationship	Balance of accounts receivables of related parties	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date (Note 1)	Allowance for doubtful accounts	Remark
					Amount	Action taken
Mobiletron Electronics Co., Ltd.	DUROFIX, INC.	The Company's sub-subsidiary	$ 288,087	Note 3	$ -	-	$ -	$ -	Note 2
Mobiletron Electronics Co., Ltd.	RAC Electric Vehicles Inc.	A subsidiary of the Company	126,839	0.56	-	-	57,060	-	-
Mobiletron Electronics (Ningbo) Co., Ltd.	Mobiletron Electronics Co., Ltd.	The Company's sub-subsidiary	133,857	2.00	-	-	-	-	-

Note 1: The amount as of March 10, 2026.
Note 2: On November 12, 2024, and January 21, March 11, May 6, August 12, November 11, 2025, and February 10, 2026, the Company's Board of Directors resolved to transfer the Company's accounts receivable and the transfer amount is mainly based on the amount approved by the Board of Directors.
Note 3: The amount included other receivables on the nature of loans, therefore calculation of turnover rate is not intended.

Table 5

Mobiletron Electronics Co., Ltd. and its Subsidiaries

Significant inter-company transactions during the reporting periods

January 1 to December 31, 2025

Table 6
Unit: Expressed in thousands of New Taiwan Dollars
(Except as otherwise indicated)

No. (Note 1)	Trader name	Counterparty	Relationship with the trader (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
0	Mobiletron Electronics Co., Ltd.	REGITAR U.S.A. INC.	(1)	Sales revenue	$ 202,410	Payment shall be collected within 30 to 60 days after shipment	5%
0	Mobiletron Electronics Co., Ltd.	MOBILETRON U.K. LTD.	(1)	Sales revenue	126,108	Payment shall be collected within 180 days after shipment	3%
0	Mobiletron Electronics Co., Ltd.	DUROFIX, INC.	(1)	Sales revenue	147,560	Payment shall be collected within 180 days after shipment	4%
0	Mobiletron Electronics Co., Ltd.	RAC Electric Vehicles Inc.	(1)	Sales revenue	222,224	Payment shall be collected within 120 days after the monthly settlement	6%
0	Mobiletron Electronics Co., Ltd.	Mobiletron Electronics (Ningbo) Co., Ltd.	(2)	Purchases	298,241	Payment shall be made within 180 days after the monthly settlement	7%
0	Mobiletron Electronics Co., Ltd.	Yuyao Mobiletron Electronics Commerce And Trade Co., Ltd.	(2)	Purchases	141,824	Payment shall be made within 30 to 60 days after the import of the goods	4%
0	Mobiletron Electronics Co., Ltd.	Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	(2)	Purchases	57,209	Payment shall be made within 30 days after the monthly settlement	1%
0	Mobiletron Electronics Co., Ltd.	DUROFIX, INC.	(1)	Other receivables	178,152	-	2%
0	Mobiletron Electronics Co., Ltd.	MOBILETRON U.K. LTD.	(1)	Accounts receivables	68,104	Payment shall be collected within 180 days after shipment	1%
0	Mobiletron Electronics Co., Ltd.	DUROFIX, INC.	(1)	Accounts receivables	109,935	Payment shall be collected within 180 days after shipment	1%
0	Mobiletron Electronics Co., Ltd.	REGITAR U.S.A. INC.	(1)	Accounts receivables	64,125	Payment shall be collected within 30 to 60 days after shipment	1%
0	Mobiletron Electronics Co., Ltd.	RAC Electric Vehicles Inc.	(1)	Accounts receivables	126,839	Payment shall be collected within 120 days after the monthly settlement	1%
0	Mobiletron Electronics Co., Ltd.	Mobiletron Electronics (Ningbo) Co., Ltd.	(2)	Accounts payable	133,857	Payment shall be made within 180 days after the monthly settlement	1%
0	Mobiletron Electronics Co., Ltd.	Yuyao Mobiletron Electronics Commerce And Trade Co., Ltd.	(2)	Accounts payable	30,097	Payment shall be made within 30 to 60 days after the import of the goods	0%
0	Mobiletron Electronics Co., Ltd.	RAC Electric Vehicles Inc.	(1)	Other income	39,751	-	1%
1	RAC Electric Vehicles Inc.	Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	(3)	Purchases	232,647	Certain payment shall be made by paying 20% as deposits in advance, and the remaining 80% shall be made within 45 days after the monthly settlement; others shall be made within 45 days after the monthly settlement	6%
1	RAC Electric Vehicles Inc.	Mobiletron Electronics Co., Ltd.	(2)	Lease liabilities	122,848	Paid monthly	1%
1	RAC Electric Vehicles Inc.	Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	(3)	Accounts payable	29,175	Payment shall be made within 45 days after the monthly settlement	0%

Note 1: The information on business dealings between the parent company and subsidiaries shall be numbered as below:
(1). The number 0 represents the parent company.
(2). The subsidiaries are numbered in order from number 1 according to the company type.
Note 2: Related-party transaction types:
(1). Parent company to subsidiary.
(2). Subsidiary to parent company.
(3). Subsidiary to subsidiary.
Note 3: Only transaction information with an amount of more than NT$10 million is disclosed.

Mobiletron Electronics Co., Ltd. and its Subsidiaries

Names, locations and other information of the invested companies (not including investees in Mainland China)

January 1 to December 31, 2025

Table 7
Unit: Expressed in thousands of New Taiwan Dollars
(Except as otherwise indicated)

Investor name	Investee	Location	Main business activities	Initial investment amount		Shares held as at end of period			Net profit (loss) of the investee for the current period	Investment income (loss) recognized by the Company for the current period	Remark
				End of the period	End of last year	Number of shares	Ownership (%)	Carrying amount
Mobiletron Electronics Co., Ltd.	STONEWALL VENTURES INC.	British Virgin Islands	Import and export trade and general investment business	$ 317,982	$ 317,982	16,586	100.00%	$ 718,521	$ 80,267	$ 78,736	Note 2, Note 3
Mobiletron Electronics Co., Ltd.	REGITAR U.S.A INC.	U.S.A.	Buying and selling of auto parts, digital tools, metal stamping parts, etc.	98,695	98,695	100,000	100.00%	756,479	13,680	11,752	Note 2, Note 3
Mobiletron Electronics Co., Ltd.	MOBILETRON U.K. LTD.	United Kingdom	Buying and selling of auto parts and digital tools	164,021	164,021	3,400,000	100.00%	( 84,825)	( 78,687)	( 76,216)	Note 2
Mobiletron Electronics Co., Ltd.	Durofix Co., Ltd.	Taiwan	Buying and selling of digital tools	1,000	50,000	100,000	100.00%	1,311	11	11	Note 2, Note 3
Mobiletron Electronics Co., Ltd.	RAC Electric Vehicles Inc.	Taiwan	Manufacture and sales of electric buses	1,808,607	1,808,607	73,650,922	60.48%	924,782	160,422	86,433	Note 2, Note 3
Mobiletron Electronics Co., Ltd.	Moving EV Service Company Ltd.	Taiwan	Industry innovation and incubation services	14,750	-	1,475,000	50.00%	14,735	( 30)	( 15)	Note 2, Note 3
Mobiletron Electronics Co., Ltd.	Blade Hydrogen Green Technology Co., Ltd.	Taiwan	Energy technical services	49,976	49,976	16,715,140	15.57%	49,621	( 2,872)	( 447)	-
Mobiletron Electronics Co., Ltd.	H2 Energy Co., Ltd.	Taiwan	Energy technical services	7,500	7,500	750,000	23.44%	6,349	( 2,590)	( 646)	-
STONEWALL VENTURES INC.	MOBILETRON LIMITED	Hong Kong	Import and export trade business	317,982	317,982	9,950,736	100.00%	718,521	80,267	-	Note 1, Note 2
MOBILETRON U.K. LTD.	DUROFIX, INC.	U.S.A.	Buying and selling of auto parts and digital tools	200,928	200,928	6,369,990	100.00%	( 174,437)	( 55,293)	-	Note 1, Note 2, Note 3
RAC Electric Vehicles Inc.	Blade Hydrogen Green Technology Co., Ltd.	Taiwan	Energy technical services	25,000	25,000	13,400,000	12.48%	34,307	( 2,872)	( 471)	-
RAC Electric Vehicles Inc.	MaxWin International Industrial Limited	Samoa	General investment business	-	2,307	-	-	-	( 133)	-	Note 1, Note 2, Note 4
RAC Electric Vehicles Inc.	Moving EV Service Company Ltd.	Taiwan	Industry innovation and incubation services	14,750	-	1,475,000	50.00%	14,735	( 30)	( 15)	Note 2, Note 3

Note 1: It is the Company's sub-subsidiary, and the investment income recognized by the Company is not listed.
Note 2: It has been written off in the consolidated report.
Note 3: The investment income for the current period are recognized in the financial statements audited by the CPAs.
Note 4: Based on the Group's future planning and layout, in order to focus on boosting the core competitiveness of electric vehicles, RAC disposed the equity interest of MaxWin International Industrial Limited.
The effective date of equity transfer was set on June 30, 2025.

Mobiletron Electronics Co., Ltd. and its Subsidiaries

Information on investments in Mainland China - basic information

January 1 to December 31, 2025

Table 8
Unit: Expressed in thousands of New Taiwan Dollars
(Except as otherwise indicated)

Investee company name in China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of beginning of period	Investment amount remitted from Taiwan or remitted back to Taiwan for the current period		Accumulated amount of remittance from Taiwan as of the end of period	Net profit (loss) of the investee for the current period	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the current period	Book value of investments in Mainland China as of end of period	Accumulated amount of investment income remitted back to Taiwan as of end of period	Remark
					Remitted to Mainland China	Remitted back to Taiwan
Mobiletron Electronics (Ningbo) Co., Ltd.	Production and trading of parts of electric hand tools, power distribution boards, ignition coils, flashlights, electric ignitions and parts of starting equipment.	$ 317,982	Note 1	$ 317,982	$ -	$ -	$ 317,982	$ 80,267	100%	$ 78,736	$ 718,521	$ 372,614	Note 4, Note 5
Yuyao Mobiletron Electronics Commerce And Trade Co., Ltd.	Trading of parts of electric hand tools, power distribution boards, ignition coils, flashlights, electric ignitions and parts of starting equipment.	2,283	Note 2	-	-	-	-	3,278	100%	3,278	64,021	-	Note 4, Note 5
Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	Production and trading of parts of electric hand tools, power distribution boards, ignition coils, flashlights, electric ignitions and parts of starting equipment.	4,407	Note 2	-	-	-	-	9,732	100%	9,732	19,617	-	Note 4, Note 5
Dongguan Can Ding Software Development Technology Co., Ltd.	Software-related technical support.	-	Note 3	2,307	-	( 2,307)	-	( 133)	-	( 133)	-	-	Note 5, Note 6

Note 1: Directly invest in a company in Mainland China.
Note 2: Reinvested in China through Mobiletron Electronics (Ningbo) Co., Ltd.
Note 3: Reinvest in mainland China through MaxWin International Industrial Limited.
Note 4: The investment income for the current period are recognized in the financial statements audited by the CPAs of the parent company in Taiwan.
Note 5: It has been written off in the consolidated report.
Note 6: Based on the Group's future planning and layout, in order to focus on boosting the core competitiveness of electric vehicles, RAC disposed the equity interest of MaxWin International Industrial Limited. The effective date of equity transfer was set on June 30, 2025. Dongguan Can Ding Software Development Technology Co., Ltd was the wholly-owned investee of MaxWin International Industrial Limited.

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of the end of period	Investment amount approved by the Department of Investment Review (M.O.E.A.)	Ceiling on investments in Mainland China imposed by the Investment Commission of M.O.E.A.
Mobiletron Electronics (Ningbo) Co., Ltd.	$ 317,982	$ 317,982	$ 1,664,714
Dongguan Can Ding Software Development Technology Co., Ltd.	-	2,307	734,340

Mobiletron Electronics Co., Ltd. and its Subsidiaries

Information of investment in Mainland China - significant transactions, either directly or indirectly through a third area, with investee companies in Mainland China

January 1 to December 31, 2025

Table 9

Unit: Expressed in thousands of New Taiwan Dollars

(Except as otherwise indicated)

Investee company name in China	Counterparty	(Purchases) Sales		Property transactions		Accounts receivable (payable)		Note endorsement / guarantee or		Financing				Others
		Amount	%	Amount	%	Balance	%	Balance - end of period	Purpose	Highest balance	Balance - end of period	Interest rate range	Current interest
Mobiletron Electronics (Ningbo) Co., Ltd.	Mobiletron Electronics Co., Ltd.	($ 298,241)	-33%	$ -	-	($ 133,857)	-48%	$ -	-	$ -	$ -	-	$ -	None
Yuyao Mobiletron Electronics Commerce And Trade Co., Ltd.	Mobiletron Electronics Co., Ltd.	( 141,824)	-11%	-	-	( 30,097)	-11%	-	-	-	-	-	-	None
Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	Mobiletron Electronics Co., Ltd.	( 57,209)	-6%	-	-	( 32)	0%	-	-	-	-	-	-	None
Yuyao Che Lian Wang Commerce and Trade Co., Ltd.	RAC Electric Vehicles Inc.	( 232,647)	-14%	-	-	( 29,175)	-1%	-	-	-	-	-	-	None

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51856_rns_2026-05-21_b00e7fd7-829f-4cc9-8751-f21aa2747caf.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Valuation of inventory

Description

How our audit addressed the matter

Appropriateness of revenue recognition for electric buses

Description

How our audit addressed the matter

Other matter - Reference to the audits of other auditors

Other matter - Parent Company Only Financial Statements

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

Auditors' responsibilities for the audit of the consolidated financial statements

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

MOBILETRON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. History and Organization

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

3. Application of New Standards, Amendments and Interpretations

4. Summary of Material Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(16) Property, plant and equipment

C. Termination benefits

D. Employees' compensation and directors' remuneration

(26) Employee share-based payment

(27) Income tax

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

(18) Government grants

(23) Retained earnings

(25) Operating revenue

A. Classification of revenue from contracts with customers

(31) Income tax

(34) Supplemental cash flow information

7. Related Party Transactions

(1) Names of related parties and relationship

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

(2) Commitments

B. Financial risk management policies

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

(3) Fair value information

13. Supplementary Disclosures

(1) Significant transactions information

(5) Information on products and services

(6) Geographical information

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