Stock No.:6830

MSSCORPS CO., Ltd. And its subsidiaries

Consolidated Financial Statements and Auditor's Annual Review Report

Year 2025 and 2024

Address: 1F, No.27, Puding Rd., Hsinchu City

TEL: (03)6663298

Notice to Readers

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

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

§TABLE OF CONTENTS§

Item		Page number	Financial report note number
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Declaration of Consolidated Financial Statements of Affiliates.	3	-
IV.	Auditor's Annual Review Report	4~8	-
V.	Consolidated Balance Sheet	9	-
VI.	Consolidated Statement of Comprehensive Income	10~11	-
VII.	Consolidated Statement of Changes in Equity	12	-
VIII.	Consolidated Cash Flow Statement	13~14	-
IX.	Notes to the Consolidated Financial Statements
	1. Company History	15	1
	2. Date and procedures for approval of the financial report	15	2
	3. Applicability of newly issued and revised standards and interpretations	15~18	3
	4. Summary of Significant Accounting Policies	18~29	4
	5. Major Sources of Uncertainty in Significant Accounting Judgments, Estimates, and Assumptions	29	5
	6. Description of Significant Accounting Items	29~67	6-28
	7. Related party transaction	68	29
	8. Pledged Assets	68	30
	9. Significant Contingent Liabilities and Unrecognized Contractual Commitments	68~69	31
	10. Major disaster losses	-	-
	11. Material subsequent events	-	-
	12. Others	69~70	32
	13. Disclosure of notes
	a. Information related to material transaction matters	70 ; 75~76	33
	b. Information related to invested companies	70 ; 77	33
	c. Mainland investment information	71~72 ; 78~80	33
	14. Department Information	73~74	34

Declaration of Consolidated Financial Statements of Affiliates.

For the year 2025 (from January 1, 2025, to December 31, 2025), The Company, in accordance with the "Guidelines for Preparation of Business Reports, Consolidated Financial Statements, and Relationship Reports of Affiliated Enterprises," will include the same companies in the preparation of the consolidated financial statements of affiliated enterprises as those included in the preparation of the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standard No. 10. Furthermore, the relevant information that should be disclosed in the consolidated financial statements of affiliated enterprises has already been disclosed in the aforementioned consolidated financial statements of the parent and subsidiary companies, and therefore, the consolidated financial statements of affiliated enterprises will not be prepared separately.

Hereby declare

Company Name: MSSCORPS CO., Ltd.

Person in Charge: Chi-Lun Liu

March 10, 2026

Auditor's Annual Review Report

MSSCORPS CO., Ltd. Public Report:

Audit opinion

The Consolidated Balance Sheet of MSSCORPS CO., Ltd. and its subsidiaries (MSSCORPS Group) as of December 31, 2025 and 2024, as well as the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity, Consolidated Cash Flow Statement for the periods from January 1 to December 31, 2025 and 2024, and the Notes to the Consolidated Financial Statements (including a summary of significant accounting policies) have been audited by us.

In our opinion, the aforementioned consolidated financial statements have been prepared, in all material respects, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, interpretations, and interpretative announcements recognized and made effective by the Financial Supervisory Commission. They adequately present the consolidated financial status of the MSSCORPS Group as of December 31, 2025 and 2024, and the consolidated financial performance and consolidated cash flow for the periods from January 1 to December 31, 2025 and 2024.

Basis for Audit Opinion

The auditor conducted the audit in accordance with the CPA's financial statement audit and attestation regulations and auditing standards. The auditor's responsibilities under these standards are further explained in the section on the auditor's responsibilities for the audit of the consolidated financial statements. The personnel of the firm to which the accountant belongs, subject to independence regulations, have maintained an objective independence with the Panquan Group in accordance with the Code of Ethics for Accountants and fulfilled other responsibilities under these regulations. The auditor believes that sufficient and appropriate audit evidence has been obtained to provide a basis for the audit opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the consolidated financial statements of the MSSCORPS Group for the year 2025. These matters were addressed in the audit of the consolidated financial statements as a whole and in forming the audit opinion, and the auditor does not provide a separate opinion on these matters.

The key audit matters in the consolidated financial statements of the MSSCORPS Group for the year 2025 are outlined as follows:

The authenticity of the occurrence of operating revenue from specific customers.

The consolidated operating revenue of the MSSCORPS Group for the year 2025 was NT$2,178,647 thousand, with a consolidated revenue growth rate of approximately 11%. Among the major customers with significant sales amounts, those with a revenue growth rate higher than the Group's growth rate or longer turnover days accounted for approximately 33% of the consolidated operating revenue, which has a significant impact on the consolidated financial statements. Therefore, we consider the main risk to be the authenticity of the operating revenue arising from major customers whose annual sales amount is significant and whose revenue growth rate is higher than the Group's growth rate or have longer turnover days, and have included it as a key audit matter in the consolidated financial statements for this year. Please refer to Note Four of the Notes to the Consolidated Financial Statements for an explanation of the revenue recognition policy.

The audit procedures performed by the accountant included:

The auditor understands the internal control systems and operational procedures related to the sales cycle, and designs audit procedures related to internal control in response to the recognition of operating revenue, in order to confirm and evaluate the effectiveness of the design and execution of relevant internal control operations during sales transactions.
Obtain the 2025 list of the aforementioned clients, and assess whether their relevant background, transaction amount, and credit limits are reasonable in relation to the size of their company.
The auditor selected samples from the revenue details of the aforementioned customers, reviewed documents such as the customer's basic information form, service order, customer acceptance confirmation letter, sales invoice, and receipt vouchers, and conducted a trend analysis of accounts receivable and operating revenue changes to ensure the authenticity of the occurrence of operating revenue.
5 -

Other matters

MSSCORPS CO., Ltd. has prepared the individual financial statements for Year 2025 and 2024, and an unqualified audit report has been issued by us for reference.

The responsibility of The management and the governing bodies for the consolidated financial statements

The responsibility of The management is to prepare consolidated financial statements that fairly present in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, interpretations, and interpretative announcements recognized and made effective by the Financial Supervisory Commission, and to maintain necessary Internal control related to the preparation of the consolidated financial statements to ensure that they are free from material misstatements, whether due to fraud or error.

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

The governing bodies of the MSSCORPS Group (including the Audit Committee) are responsible for overseeing the financial reporting process.

The auditor's responsibilities for the audit of the consolidated financial statements

The purpose of the auditor's audit of the consolidated financial statements is 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 audit report. Reasonable assurance is a high level of assurance, but an audit conducted in accordance with auditing standards does not guarantee that a material misstatement in the consolidated financial statements will be detected. Misstatements may result from fraud or error. If individual amounts or aggregated totals of misstatements could reasonably be expected to influence the economic decisions of users of the consolidated financial statements, they are considered material.

The auditor exercised professional judgment and maintained professional skepticism while conducting the audit in accordance with auditing standards. The accountant also performed the following tasks:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error; design and implement appropriate responses to the assessed risks; and obtain sufficient and appropriate audit evidence to provide a basis for the audit opinion. Due to the possible involvement of collusion, forgery, intentional

omissions, misstatements, or overriding of Internal control, the risk of not detecting a material misstatement resulting from fraud is higher than that resulting from error.

Obtain an understanding of internal control relevant to the audit in order to design appropriate audit procedures under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the MSSCORPS Group's internal control.
Evaluate the appropriateness of the accounting policies used by The management and the reasonableness of their accounting estimates and related disclosures.
Based on the audit evidence obtained, conclude on the appropriateness of The management's use of the going concern accounting basis and whether a material uncertainty exists related to events or conditions that may cast significant doubt on the MSSCORPS Group's ability to continue as a going concern. If the auditor believes that such events or conditions exist with significant uncertainty, the auditor must draw the attention of the users of the consolidated financial statements to the related disclosures in the audit report or modify the audit opinion if such disclosures are inappropriate. The conclusion of the auditor is based on the audit evidence obtained up to the date of the audit report. However, future events or conditions may cause the MSSCORPS Group to no longer have the ability to continue as a going concern.
Assess the overall presentation, structure, and description of the consolidated financial statements (including the related notes), and whether the consolidated financial statements fairly represent the relevant transactions and events.
Obtain sufficient and 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. The auditor is responsible for directing, supervising, and executing the group audit engagement and for forming the group audit opinion.

The matters communicated by the auditor to the governance unit include the planned audit scope and time, as well as significant audit findings (including significant deficiencies in internal control identified during the audit process).

The auditor also provides to the governance unit a statement that the personnel of the firm to which the auditor belongs have complied with the independence requirements of the Code of Ethics for Accountants, and communicates with the governance unit all relationships and other matters that could be perceived to affect the auditor's independence (including related safeguards).

From the matters communicated with the governing bodies, we determined the key audit matters for the audit of the consolidated financial statements of the MSSCORPS Group for the year 2025. The auditor describes these matters in the audit report unless law prohibits public disclosure of specific issues, or in extremely rare circumstances, the auditor decides not to communicate

specific matters in the audit report when the reasonably expected negative consequences of such communication outweigh the public interest benefits.

Deloitte Taiwan
CPA Chung-Cheng Chen
CPA Li-Wei Liu

Financial Supervisory Commission
Approval Number
Jin-Guan-Zheng-Shen-Zi No. 1040024195

Financial Supervisory Commission
Approval Number
Jin-Guan-Zheng-Shen-Zi No. 1110348898

March 30, 2026

MSSCORPS CO., Ltd. and its subsidiaries

Consolidated Balance Sheet

December 31, 2025 and 2024

Unit: NT$ Thousand

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
	Current Assets
1100	Cash and Cash Equivalents (Notes 4 and 6)	$ 819,255	13	$ 1,181,200	20
1110	Financial Assets at Fair Value Through Profit or Loss - Current (Notes 4, 7, and 16)	900	-	-	-
1150	Notes Receivable (Notes 4, 9, and 20)	1,346	-	2,973	-
1170	Accounts Receivable (Notes 4, 9, and 20)	712,348	11	676,973	11
1200	Other Receivables (Notes 4 and 9)	697	-	13	-
1220	Current income tax assets (Note 4)	45,080	1	29,387	1
1410	Prepayments (Note 14)	168,288	3	124,069	2
11XX	Total Current Assets	1,747,914	28	2,014,615	34
	Non-current Assets
1510	Financial Assets at Fair Value Through Profit or Loss - Non-Current (Notes 4 and 7)	30,977	1	21,554	-
1517	Financial Assets at Fair Value Through Other Comprehensive Income - Non-Current (Notes 4 and 8)	-	-	-	-
1600	Property, Plant and Equipment (Notes 4, 11, and 30)	3,891,854	62	3,336,764	56
1755	Right-of-use assets (Notes 4 and 12)	187,168	3	228,092	4
1780	Other Intangible Assets (Notes 4 and 13)	8,011	-	13,450	-
1840	Deferred Income Tax Assets (Notes 4 and 22)	83,696	1	51,839	1
1900	Other Non-current Assets (Notes 4 and 14)	295,073	5	261,047	5
15XX	Total Non-current Assets	4,496,779	72	3,912,746	66
1XXX	Total Assets	$ 6,244,693	100	$ 5,927,361	100
Code	Liabilities and Equity
	Current liabilities
2100	Short-term borrowings (Notes 4 and 15)	$ 205,000	3	$ -	-
2120	Financial Liabilities at Fair Value Through Profit or Loss - Current (Notes 4, 7, and 16)	-	-	700	-
2130	Contract Liabilities - Current (Notes 4 and 20)	20,495	-	16,386	-
2150	Notes Payable	20	-	-	-
2170	Accounts Payable	43,056	1	26,968	-
2200	Other Payables (Notes 17 and 26)	399,069	6	288,018	5
2230	Current income tax liabilities (Note 4)	8,872	-	5,050	-
2280	Lease Liabilities - Current (Notes 4 and 12)	51,094	1	63,810	1
2313	Deferred Revenue - Current (Notes 4, 17, and 25)	3,177	-	4,044	-
2321	Corporate bonds maturing within one year or operating cycle or with executory put option (Notes 4, 16, and 26)0	479,859	8	-	-
2322	Long-term borrowings maturing within one year or operating cycle (Notes 4, 15, 25, and 30)	289,463	5	148,268	3
2365	Refund Liabilities - Current (Notes 4, 17, and 20)	85,106	1	52,375	1
2399	Other Current Liabilities (Note 17)	12,629	-	10,504	-
21XX	Total Current Liabilities	1,597,840	25	616,123	10
	Non-Current Liabilities
2530	Corporate Bonds Payable (Notes 4, 16, and 26)	-	-	467,898	8
2540	Long-term borrowings (Notes 4, 15,25, and 30)	1,328,658	22	1,419,530	24
2570	Deferred Income Tax Liabilities (Notes 4 and 22)	134,547	2	102,263	2
2580	Lease Liabilities - Non-current (Notes 4 and 12)	136,848	2	164,216	3
2630	Deferred Revenue - Non-current (Notes 4, 17, and 25)	6,154	-	8,919	-
25XX	Total Non-current Liabilities	1,606,207	26	2,162,826	37
2XXX	Total Liabilities	3,204,047	51	2,778,949	47
	Equity attributable to owners of The Company (Notes 4 and 19)
	Share Capital			-
3110	Common stock	517,819	8	517,812	9
3140	Share Capital Received in Advance	-	-	7	-
3100	Total Share Capital	517,819	8	517,819	9
3200	Capital Surplus	2,033,709	33	2,033,709	34
	Retained earnings
3310	Legal reserve allocation	171,884	3	165,388	3
3320	Special reserve allocation	-	-	16,972	-
3350	Undistributed earnings	324,177	5	402,157	7
3300	Total Retained Earnings	496,061	8	584,517	10
3400	Other Equity Interests	(6,943)	-	12,367	-
3XXX	Total Equity	3,040,646	49	3,148,412	53
	Total Liabilities and Equity	$ 6,244,693	100	$ 5,927,361	100

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

MSSCORPS CO., Ltd. and its subsidiaries
Consolidated Statement of Comprehensive Income
From January 1 to December 31, 2025 and 2024
Unit: NT$ Thousand, however, earnings (loss) per share are in NT$.

Code		2025		2024
		Amount	%	Amount	%
4600	Operating revenue
	Service Revenue (Notes 4 and 20)	$ 2,178,647	100	$ 1,966,669	100
5600	Operating costs.
	Service Costs (Notes 21 and 24)	(1,662,386)	(77)	(1,442,407)	(73)
5900	Gross profit before unrealized gross profit on sales to subsidiaries	516,261	23	524,262	27
	Operating Expenses (Notes 9,21, and 24)
6100	Selling expenses	(82,435)	(4)	(57,053)	(3)
6200	Administrative expenses	(291,666)	(13)	(247,676)	(13)
6300	Research and development expenses	(86,273)	(4)	(81,742)	(4)
6450	Expected credit loss	-	-	(3,163)	-
6000	Total Operating Expenses	(460,374)	(21)	(389,634)	(20)
6900	Net operating profits	55,887	2	134,628	7
	Non-operating income and expenses (Notes 4, 16, 21, and 25)
7100	Interest income	8,869	-	10,747	1
7010	Other income	7,197	-	8,393	-
7020	Other gains and losses	(10,731)	-	(3,248)	-
7050	Finance cost	(49,703)	(2)	(38,030)	(2)
7000	Total Non-operating income and expenses	(44,368)	(2)	(22,138)	(1)

(Continued)

Code		2025		2024
		Amount	%	Amount	%
7900	Net profits before tax from continuing operations	$ 11,519	-	$ 112,490	6
7950	Income tax expenses (Notes 4 and 22)	(48,193)	(2)	(47,527)	(3)
8200	Net profit (loss) for the year	(36,674)	(2)	64,963	3
	Other Comprehensive Income (Notes 4, 19, and 22) Items that may be reclassified to profit or loss subsequently:
8361	Exchange differences resulting from the translation of financial statements of overseas operating entities.	(24,137)	(1)	36,674	2
8399	Income tax related to items that may be reclassified	4,827	-	(7,335)	-
8360		(19,310)	(1)	29,339	2
8300	Other comprehensive income for the year (net after tax)	(19,310)	(1)	29,339	2
8500	Total comprehensive income for the year	$ (55,984)	(3)	$ 94,302	5
	Earnings (Loss) Per Share (Note 23) From continuing operations
9710	Basic	$ (0.71)		$ 1.34
9810	dilution	$ (0.71)		$ 1.34

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

Chairman: Chi-Lun Liu

Managerial officers: Chi-Lun Liu

Accounting Supervisor: Yu-Han Huang

MSSCORPS CO., Ltd. and its subsidiaries

Consolidated Statement of Changes in Equity

From January 1 to December 31, 2025 and 2024

Unit: NT$ Thousand

Equity attributable to owners of The Company (Notes Four and Nineteen)

Code		Share Capital		Capital Surplus	Retained earnings			Other Equity Interests Item		Total Equity
		Common stock share capital	Share Capital Received in Advance		Legal reserve allocation	Special reserve allocation	Undistributed earnings	Exchange differences resulting from the translation of financial statements of overseas operating entities.	Unrealized valuation gains and losses on financial assets at fair value through other comprehensive income
A1	Balance as of January 1, 2024	$ 467,812	$ -	$ 1,385,494	$ 139,260	$ 5,671	$ 585,138	$ (12,722)	$ (4,250)	$ 2,566,403
	Appropriation and Distribution of 2023 Earnings (Note 19)
B1	Legal reserve allocation	-	-	-	26,128	-	(26,128)	-	-	-
B3	Special reserve allocation	-	-	-	-	11,301	(11,301)	-	-	-
B5	Shareholder cash dividend	-	-	-	-	-	(210,515)	-	-	(210,515)
	Changes in Other Capital Surplus:
C5	The changes in the equity component of issued convertible bonds (Notes16 and 19)	-	-	81,707	-	-	-	-	-	81,707
N1	Recognition of Compensation Costs for Employee Stock Options (Notes 19 and 24)	-	-	17,421	-	-	-	-	-	17,421
E1	Capital Increase in Cash (Note 19)	50,000	-	549,000	-	-	-	-	-	599,000
I1	Convertible bond conversion into common stock (Notes 16 and 19)	-	7	87	-	-	-	-	-	94
D1	Net profit for the year 2024	-	-	-	-	-	64,963	-	-	64,963
D3	Other comprehensive income after tax for the year 2024	-	-	-	-	-	-	29,339	-	29,339
D5	Total comprehensive income for the year 2024	-	-	-	-	-	64,963	29,339	-	94,302
Z1	Balance as of December 31, 2024	517,812	7	2,033,709	165,388	16,972	402,157	16,617	(4,250)	3,148,412
	Appropriation and Distribution of 2024 Earnings (Note 19)
B1	Legal reserve allocation	-	-	-	6,496	-	(6,496)	-	-	-
B3	Special reserve allocation	-	-	-	-	(16,972)	16,972	-	-	-
B5	Shareholder cash dividend	-	-	-	-	-	(51,782)	-	-	(51,782)
I1	Convertible bond conversion into common stock (Notes 16 and 19)	7	(7)	-	-	-	-	-	-	-
D1	Net loss for the year 2025	-	-	-	-	-	(36,674)	-	-	(36,674)
D3	Other comprehensive income after tax for the year 2025	-	-	-	-	-	-	(19,310)	-	(19,310)
D5	Total comprehensive income for the year 2025	-	-	-	-	-	(36,674)	(19,310)	-	(55,984)
Z1	Balance as of December 31, 2025	$ 517,819	$ -	$ 2,033,709	$ 171,884	$ -	$ 324,177	$ (2,693)	$ (4,250)	$ 3,040,646

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

MSSCORPS CO., Ltd. and its subsidiaries
Consolidated Cash Flow Statement
From January 1 to December 31, 2025 and 2024

| Code | Cash flow from operating activities | 2025 | Unit: NT$ Thousand
2024 |
| --- | --- | --- | --- |
| A10000 | Pre-tax net profit for the year | $ 11,519 | $ 112,490 |
| A20010 | Expense and Loss Item: | | |
| A20100 | Depreciation expenses | 777,052 | 685,593 |
| A20200 | Amortization expenses | 5,871 | 5,360 |
| A20300 | Expected credit loss | - | 3,163 |
| A20400 | Net Gains on Financial Assets/Liabilities at Fair Value Through Profit or Loss | (3,523) | (2,087) |
| A20900 | Finance cost | 49,703 | 38,030 |
| A21200 | Interest income | (8,869) | (10,747) |
| A21900 | Recognition of Compensation Costs for Employee Stock Options | - | 17,421 |
| A22500 | Gain on disposal of property, plant and equipment | (50) | - |
| A24100 | Foreign exchange net loss (gain) | 4,788 | (5,528) |
| A29900 | Government subsidy income | (3,954) | (3,967) |
| A30000 | Net Changes in Operating Assets and Liabilities | | |
| A31130 | Notes Receivable | 1,627 | (2,544) |
| A31150 | Accounts Receivable (Notes 4,9, and 12) | (33,520) | 15,291 |
| A31180 | Other Receivables (Notes 4 and 9) | (683) | 7,710 |
| A31230 | Prepayments (Note 14) | (56,473) | (18,238) |
| A32125 | Contract Liabilities | 3,880 | (15,761) |
| A32130 | Notes Payable | 20 | - |
| A32150 | Accounts Payable | 16,080 | (6,475) |
| A32180 | Other Payables (Notes 17 and 26) | 22,459 | (16,391) |
| A32230 | Refund Liabilities | 32,731 | 12,596 |
| A32230 | Other Current Liabilities (Note 17) | 2,206 | 1,319 |
| A33000 | Cash generated from operations | 820,864 | 817,235 |
| A33100 | Interest received | 8,869 | 11,076 |
| A33300 | Interest paid | (31,971) | (28,219) |
| A33500 | Income tax paid | (54,927) | (105,213) |
| AAAA | Net cash inflow from operating activities | 742,835 | 694,879 |

(Continued)

13 -

(Continued)

Code		2025	2024
	Cash flow from investing activities
B00060	Repayment of Financial Assets Measured at Amortized Cost Upon Maturity	$ -	$ 13,236
B00100	Acquisition of Financial Assets at Fair Value Through Profit or Loss	(7,500)	(21,400)
B02700	Acquisition of Property, Plant and Equipment	(1,036,484)	(1,486,946)
B02800	Proceeds from disposal of property, plant and equipment	3,083	-
B03700	Increase in security deposits	(1,946)	(20,834)
B03800	Decrease in security deposits	966	250
B04500	Acquisition of Intangible Assets	(443)	(10,905)
B07100	Increase in prepaid equipment payments	(145,144)	(141,309)
BBBB	Net cash outflow from investing activities	(1,187,468)	(1,667,908)
	Cash flow from financing activities
C00100	Increase in short-term borrowings	205,000	450,000
C00200	Decrease in short-term borrowings	-	(450,000)
C01200	Issuance of convertible bonds	-	551,380
C01600	Obtain long-term borrowings	290,000	971,000
C01700	Repayment of long-term borrowings	(245,126)	(331,767)
C04020	Repayment of lease liabilities principal	(67,275)	(54,491)
C04500	Dividend payment	(51,782)	(210,515)
C04600	Capital increase in cash	-	600,000
C09900	Pay share issuance costs.	-	(1,000)
C09900	Pay debt issuance costs.	-	(4,381)
CCCC	Net cash inflow from financing activities	130,817	1,520,226
DDDD	The effect of changes in exchange rates on cash and cash equivalents.	(48,129)	11,893
EEEE	Net increase (decrease) in cash and cash equivalents.	(361,945)	559,090
E00100	Cash and cash equivalents balance at the beginning of the year.	1,181,200	622,110
E00200	Cash and cash equivalents balance at the end of the year.	$ 819,255	$ 1,181,200

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

MSSCORPS CO., Ltd. and its subsidiaries
Notes to the Consolidated Financial Statements
From January 1 to December 31, 2025 and 2024
(Unless otherwise noted, amounts are in NT$ Thousand)

Company History

MSSCORPS CO., Ltd. (hereinafter referred to as the Company) was approved by the Ministry of Economic Affairs and established in Hsinchu City on July 27, 2005. Its business includes electronic material analysis and testing, electronic component manufacturing, wholesale and retail of electronic materials, international trade, and product design.

The Company's stock was listed on the Taiwan Stock Exchange starting August 31, 2022.

The Company's ownership is dispersed, thus there is no ultimate parent company.

These consolidated financial statements are presented in the functional currency of the Company, New Taiwan Dollar (NTD).

Date and procedures for approval of the financial report

This consolidated financial report was approved by the Board of Directors on March 10, 2026.

Applicability of newly issued and revised standards and interpretations

a. Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations (IFRIC), and Interpretative Announcements (SIC) recognized and made effective by the Financial Supervisory Commission (hereinafter referred to as the "FSC") (hereinafter referred to as the "IFRS Accounting Standards")

The amendments to IAS 21 "Lack of Exchangeability"

The application of the amendments to IAS 21 "Lack of Exchangeability" will not result in significant changes to the accounting policies of the Company and entities controlled by the Company (hereinafter referred to as the "Consolidated Company").

15 -

b. IFRS Accounting Standards recognized by the FSC applicable in 2026.

Newly issued/amended/revised standards and interpretations	Effective date issued by the IASB
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"	January 1, 2026
Amendments to IFRS 9 and IFRS 7 "Involving Contracts That Rely on Natural Power"	January 1, 2026
"Annual Improvements to IFRS Accounting Standards - Volume 11"	January 1, 2026
IFRS 17 "Insurance Contracts" (including amendments from 2020 and 2021)	January 1, 2023

As of the date of approval for the issuance of this consolidated financial report, the consolidated company has assessed that the amendments to the aforementioned standards and interpretations will not have a significant impact on the consolidated financial status and consolidated financial performance.

c. IFRS Accounting Standards issued by the IASB but not yet recognized and made effective by the FSC

Newly issued/amended/revised standards and interpretations	Effective date issued by the IASB (Note 1)
The amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture"	Indeterminate
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027 (Note 2)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (including amendments from 2025)	January 1, 2027
The amendments to IAS 21 "Translation to a Hyperinflationary Presentation Currency"	January 1, 2027

Note 1: Unless otherwise noted, the aforementioned newly issued/amended/revised standards or interpretations are effective for annual reporting periods beginning after the respective dates.

Note 2: The Financial Supervisory Commission announced on September 25, 2025, that domestic companies are required to apply IFRS 18 starting January 1, 2028. They may also choose to adopt it earlier after IFRS 18 is recognized by the FSC.

IFRS 18 "Presentation and Disclosure in Financial Statements" and related amendments

IFRS 18 will replace IAS 1 "Presentation of Financial Statements." The main changes in this standard include:

The merged Company should assess whether it has specific main business activities involving investment in certain types of Assets and providing financing to customers. Based on this assessment, it should categorize the income and expense Items in the income statement into operating, investing, financing, income tax, and discontinued operations categories.
The income statement should report operating profit and loss, profit before financing and tax, as well as subtotals and Total of profit and loss.
Provide guidance to strengthen aggregation and disaggregation rules: The merged Company must identify Assets, liabilities, equity, income, expenses, and Cash Flow arising from individual transactions or Other matters and classify and aggregate them based on common characteristics so that each line Item reported in the primary financial statements has at least One similar characteristic. Items with dissimilar characteristics should be disaggregated in the primary financial statements and notes. The merged company labels those items as "Others" only when no more informative label can be found.
Enhance disclosure of performance measures defined by The management: When the merged Company engages in public communication outside of financial statements and communicates The management's perspective on a certain aspect of the Company's overall Financial Performance to users of the financial statements, it should disclose in a single note to the financial statements information related to performance measures defined by The management. This includes a description of the measure, how it is calculated, its reconciliation with subtotals or totals specified by IFRS accounting standards, and the income tax and Non-Controlling Interest effects of the related reconciling Items.

In addition, the following amendments were made to IAS 7 "Cash Flow Statements":

When a consolidated company prepares the Cash flow from operating activities using the indirect method, operating profit and loss should be used as the starting point for adjustments.
Interest received and dividends received by the consolidated company should be classified as investing activities, while interest paid and dividend payment should be classified as financing activities. If the merged company, after assessment, has identified specific main business activities, it must consider the categories of dividend income, Interest income, and interest expenses reported in the income statement to determine the classification of receiving dividends, receiving interest, and paying interest in the Cash Flow statement. However,
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each of these Cash Flows can only be classified into One single activity in the Cash Flow statement.

Except for the aforementioned impacts, as of the date of approval for the issuance of this consolidated financial report, the consolidated company continues to evaluate the other impacts of amendments to various standards and interpretations on the consolidated financial status and consolidated financial performance. The relevant impacts will be disclosed upon completion of the evaluation.

4. Summary of Significant Accounting Policies

a. Follow the declaration

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS Accounting Standards recognized and made effective by the Financial Supervisory Commission.

b. Basis of Preparation

Except for financial instruments measured at fair value, these consolidated financial statements are prepared on a historical cost basis.

Fair value measurement is categorized into Levels 1 to 3 based on the observability and significance of the inputs used:

1) Level 1 inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be obtained on the measurement date.

2) Level 2 inputs: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

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

c. The standard for distinguishing Assets and liabilities as Current and Non-current.

Current Assets include:

1) Assets held primarily for trading purposes;

2) Assets expected to be realized within 12 months after the balance sheet date; and

3) Cash and cash equivalents (excluding those restricted for exchange or settlement of liabilities beyond 12 months after the balance sheet date).

Current liabilities include:

1) Liabilities held primarily for trading purposes;

2) Liabilities due for settlement within 12 months after the balance sheet date, and

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3) Liabilities for which there is no substantive right to defer settlement to at least 12 months after the balance sheet date.

Assets or liabilities not classified as the aforementioned Current Assets or Current liabilities are categorized as Non-current Assets or Non-current liabilities. If the terms of a liability allow for settlement by transferring equity instruments of the consolidated company at the option of the counterparty, and if the consolidated company classifies the option as an equity instrument, then such terms do not affect the classification of the liability as current or non-current.

d. Basis of Consolidation

These consolidated financial statements include the financial statements of the Company and the entities controlled by the Company (subsidiaries). The Consolidated Statement of Comprehensive Income includes the operating gains and losses of acquired or disposed subsidiaries from the acquisition date or up to the disposal date within the period. The financial statements of the subsidiaries have been adjusted to align their accounting policies with those of the consolidated company. During the preparation of the consolidated financial statements, all inter-entity transactions, account balances, income, and expenses have been fully eliminated.

Changes in ownership interests in a subsidiary that do not result in a loss of control of the consolidated company are accounted for as equity transactions.

For details of subsidiaries, ownership, and business items, refer to Note Ten, Schedule Three, and Schedule Four.

e. Foreign currency

When each entity prepares financial statements and engages in transactions in a currency other than its functional currency (foreign currency), they are translated into the functional currency at the exchange rate on the transaction date.

Foreign currency monetary items are translated at the closing exchange rate on each balance sheet date. Exchange differences arising from the settlement of monetary items or translation of monetary items are recognized in profit or loss in the period in which they arise.

Foreign currency non-monetary items measured at historical cost are translated using the exchange rate on the transaction date and are not re-translated.

When preparing consolidated financial statements, the assets and liabilities of foreign operations (subsidiaries operating in a country or using a currency different from that of the Company) are translated into New Taiwan Dollar (NTD) at the exchange rate on each balance sheet date. Revenue and expense items are translated at the average exchange rate for the period, and the resulting exchange differences are included in other comprehensive income.

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f. Property, Plant And Equipment

Property, Plant and Equipment are initially recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Property, Plant and Equipment under construction are recognized at cost less accumulated impairment losses. The cost includes professional service fees and borrowing costs that meet the capitalization criteria. Such assets are categorized into the appropriate categories of Property, Plant and Equipment and begin to be depreciated when they are completed and reach their intended usable state.

Except for owned land which is not depreciated, all other Property, Plant and Equipment are depreciated on a straight-line basis over their useful lives, with depreciation recognized separately for each significant part. The merged company reviews the estimated useful life, residual value, and depreciation method at least at the end of each year, and extends the impact of the changes in accounting estimates.

When Property, Plant and Equipment are derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

g. Intangible Assets

1) Individually acquired

Individually acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The merged company reviews the estimated useful life, residual value, and amortization method at least at the end of each year, and extends the impact of the changes in accounting estimates.

2) Derecognized

When Intangible Assets are derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss for the period.

h. Impairment of Property, Plant and Equipment, Right-of-Use Assets, and Intangible Assets.

The merged company assesses at each balance sheet date whether there is any indication that Property, Plant and Equipment, Right-of-Use Assets, and Intangible Assets may have been impaired. If any indication of impairment exists, then the recoverable amount of the asset is estimated. If the recoverable amount of an individual asset cannot be estimated, the merged company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Common assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis.

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The recoverable amount is the higher of its fair value less costs of disposal and its value in use. When the recoverable amount of an individual asset or cash-generating unit is less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to its revised recoverable amount. However, the increased carrying amount should not exceed the carrying amount that would have been determined had no impairment loss been recognized in prior years, less amortization or depreciation. The reversal of an impairment loss is recognized in profit or loss.

i. Financial instruments

Financial assets and financial liabilities are recognized on the Consolidated Balance Sheet when the merged company becomes a party to the contractual terms of the instrument.

When financial assets and financial liabilities are initially recognized, if they are not financial assets or financial liabilities at fair value through profit or loss, they are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of the financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

The regular way purchase or sale of Financial assets is accounted for using trade date accounting and derecognized.

a) Types of measurement

The types of Financial Assets held by the consolidated company are Financial Assets at Fair Value Through Profit or Loss, Financial Assets Measured at Amortized Cost, and Equity Instrument Investments at Fair Value Through Other Comprehensive Income.

i. Financial Assets at Fair Value Through Profit or Loss

Financial Assets at Fair Value Through Profit or Loss are mandatorily classified as Financial Assets at Fair Value Through Profit or Loss. Financial Assets at Fair Value Through Profit or Loss include equity instrument investments not designated as at fair value through other comprehensive income, and debt instrument investments that do not qualify for classification as either measured at amortized cost or at fair value through other comprehensive income.

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Financial Assets at Fair Value Through Profit or Loss are measured at fair value, with dividends and interest recognized in Other Income and Interest Income, respectively, and any gains or losses from remeasurement recognized in Other Gains and Losses. Please refer to Note 28 for the determination of fair value.

ii. Financial Assets Measured at Amortized Cost

If the consolidated company's investment in financial assets meets the following two criteria simultaneously, it is classified as Financial Assets Measured at Amortized Cost:

i) The assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms give rise to cash flows on specific dates, which are solely payments of principal and interest on the outstanding principal amount.

Financial Assets Measured at Amortized Cost (including cash and cash equivalents, Notes Receivable, Accounts Receivable (Notes Four, Nine, and Twenty), Other Receivables (Notes Four and Nine), and refundable deposits) are measured at amortized cost after initial recognition, at the total carrying amount determined using the effective interest method less any impairment losses. Any foreign currency exchange gains or losses are recognized in profit or loss.

Except in the following two cases, interest income is calculated by multiplying the effective interest rate by the total carrying amount of the financial assets:

i) For purchased or originated credit-impaired financial assets, interest income is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial assets.
ii) For financial assets that were not purchased or originated as credit-impaired but subsequently become credit-impaired, interest income should be calculated by multiplying the effective interest rate by the amortized cost of the financial assets starting from the next reporting period after the credit impairment.

Credit-impaired financial assets refer to situations where the issuer or debtor has encountered significant financial difficulties, defaulted, is highly likely to file for bankruptcy or undergo other financial reorganizations, or where the active market for the financial assets has disappeared due to financial distress.

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iii. Equity Instrument Investments at Fair Value Through Other Comprehensive Income

At initial recognition, the consolidated company may make an irrevocable election to designate an equity instrument investment, that is neither held for trading nor recognized as contingent consideration in a business combination, to be measured at fair value through other comprehensive income.

Equity Instrument Investments at Fair Value Through Other Comprehensive Income are measured at fair value, with subsequent changes in fair value reported in other comprehensive income and accumulated in other equity interests. Upon the disposal of the investment, the accumulated gain or loss is directly transferred to retained earnings and is not reclassified to profit or loss.

b) Impairment of Financial Assets

On each balance sheet date, the consolidated company assesses the impairment losses of Financial Assets Measured at Amortized Cost (including Notes Receivable, Accounts Receivable (Notes Four, Nine, and Twenty), Other Receivables (Notes Four and Nine), and refundable deposits) based on expected credit losses.

Accounts Receivable are recognized as loss allowances based on the lifetime expected credit loss. Other financial assets are first assessed to determine whether there has been a significant increase in credit risk since initial recognition. If there has not been a significant increase, a loss allowance is recognized based on 12-month expected credit losses. If there has been a significant increase, a loss allowance is recognized based on lifetime expected credit losses.

Expected credit loss is a probability-weighted credit loss based on the risk of default. 12-month expected credit losses represent the expected credit losses from possible default events on Financial instruments within 12 months after the reporting date, while lifetime expected credit losses represent the expected credit losses from all possible default events over the expected life of the Financial instruments.

For the purpose of internal credit risk management, regardless of any collateral held, the merged company determines that the following situations indicate that a financial asset has defaulted:

i. There is internal or external information indicating that the debtor is unlikely to repay the debt.

ii. Overdue for more than 180 days, unless there is reasonable and verifiable information indicating that a later default criterion is more appropriate.

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The impairment loss of all financial assets is directly or indirectly reduced from their carrying amount through an allowance account.

c) Derecognition of Financial Assets

The merged company derecognizes financial assets only when the contractual rights to the cash flows from the financial assets expire, or when the financial assets have been transferred and almost all the risks and rewards of ownership of the assets have been transferred to other entities.

When Financial Assets Measured at Amortized Cost are entirely derecognized, the difference between their carrying amount and the consideration received is recognized in profit or loss. Upon the derecognizing of Equity Instrument Investments at Fair Value Through Other Comprehensive Income, the accumulated gain or loss is directly transferred to retained earnings and is not reclassified to profit or loss.

2) Equity instrument

Debt and equity instruments issued by the merged company are classified as financial liabilities or equity based on the substance of the contractual agreement and the definitions of financial liabilities and equity instruments.

Equity instruments issued by the merged company are recognized at the proceeds received, net of direct issuance costs.

3) Financial liabilities

a) Subsequent measurement

Except for financial liabilities at fair value through profit or loss, all financial liabilities are measured at amortized cost using the effective interest method.

Financial liabilities at fair value through profit or loss are held for trading and measured at fair value, with the related gains or losses recognized in Other Gains and Losses.

Please refer to Note 28 for the determination of fair value.

b) Derecognition of Financial Liabilities

When Financial Liabilities are derecognized, the difference between their carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

4) Convertible bonds

Compound financial instruments (convertible bonds) issued by the merged company are classified at initial recognition into financial liabilities and equity, based on the substance of the contractual agreement and the definitions of financial liabilities and equity instruments.

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At initial recognition, the fair value of the liability component is estimated using the then market interest rate of a similar non-convertible instrument and is measured at amortized cost using the effective interest method until conversion or maturity. The liability component embedded in non-equity derivative instruments is measured at fair value.

The conversion right classified as equity is equal to the residual amount of the overall fair value of the compound instrument after deducting the fair value of the liability component determined separately. It is recognized as equity after deducting the impact of income tax and is not subsequently remeasured. When the conversion right is exercised, the related liability component and the amount recognized in equity will be transferred to Share Capital and Capital Surplus - Premium on Issuance. If the conversion rights of the convertible bonds remain unexercised at the maturity date, the amount recognized in equity will be transferred to Capital Surplus - Premium on Issuance.

The transaction costs related to the issuance of convertible bonds are allocated to the liability component (included in the carrying amount of liabilities) and the equity component (included in equity) based on the proportion of the total proceeds.

5) Derivative instrument

The derivative instrument entered into by the merged company involves the redemption and put option of convertible bonds.

Derivative instruments are initially recognized at fair value when the derivative contract is signed, and subsequently remeasured at fair value on the balance sheet date, with any gains or losses from subsequent measurement recognized directly in profit or loss. However, for derivative instruments designated as effective hedging instruments, the timing of recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative instrument is positive, it is classified as a financial asset; when the fair value is negative, it is classified as a financial liability.

If a derivative instrument is embedded in a host contract that falls under the scope of IFRS 9 "Financial Instruments," the classification of the financial asset is determined based on the entire contract. If a derivative instrument is embedded in a host contract not within the scope of IFRS 9 (such as a host contract that is a financial liability), and if the embedded derivative instrument meets the definition of a derivative instrument where its risks and characteristics are not closely related to those of the host contract, and the hybrid contract is not measured at fair value through profit or loss, the derivative instrument is treated as a separate derivative instrument.

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j. Revenue recognition

After a merged company identifies the performance obligations in a customer contract, it allocates the transaction price to each performance obligation and recognizes revenue when each performance obligation is satisfied.

For contracts where the period between the transfer of goods or services and the receipt of consideration is within one year, the significant financing component is not adjusted in the transaction price.

Service Revenue

Service Revenue (Notes Four and Twenty) is derived from providing customers with customized electronic material testing and analysis services. The merged company recognizes revenue and Accounts Receivable (Notes Four, Nine, and Twenty) when the promised goods or services are transferred to the customer and the performance obligation criteria are met. The merged company recognizes refund liabilities based on historical experience and consideration of different contract criteria to estimate possible commercial discounts. Payments received before meeting the aforementioned revenue recognition criteria are recognized as Contract Liabilities.

k. Leasing

On the contract inception date, the consolidated company assesses whether the contract is (or contains) a Lease.

The consolidated company as lessee.

Except for lease payments on leases of low-value underlying assets and short-term leases that qualify for recognition exemptions and are recognized as expenses on a straight-line basis over the lease term, other leases are recognized as right-of-use assets and lease liabilities on the lease inception date.

Right-of-use assets are initially measured at cost (the original measurement amount of the lease liability) and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, adjusted for the remeasurement of the lease liability. Right-of-use assets are presented separately on the Consolidated Balance Sheet.

Right-of-use assets are depreciated on a straight-line basis from the lease inception date to the earlier of the end of their useful life or the end of the lease term.

Lease liabilities are initially measured at the present value of the lease payments. If the implicit interest rate in the lease is readily determinable, the lease payments are discounted using that interest rate. If the interest rate is not readily determinable, the lessee's incremental borrowing rate is used.

Subsequently, lease liabilities are measured on an amortized cost basis using the effective interest method, and interest expenses are allocated over the lease term. If there are changes in the lease term, the consolidated company remeasures the lease liability and correspondingly adjusts the right-of-use assets. However, if the carrying

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amount of the right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented separately on the Consolidated Balance Sheet.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as part of the cost of that asset until all necessary activities to prepare the asset for its intended use or sale are substantially complete.

Except for the above, all borrowing costs are recognized in profit or loss in the period in which they are incurred.

m. Government subsidy

A government subsidy is recognized only when it can be reasonably assured that the merged company will comply with the conditions attached to the government subsidy and that the subsidy will be received.

Government subsidies related to income are recognized as Other income on a systematic basis during the periods in which the merged company recognizes as expenses the related costs for which the subsidies are intended to compensate.

The difference between the loan amount received and the fair value of the loan calculated based on the prevailing market interest rate, for government loans obtained by the merged company at below-market interest rates, is recognized as a government subsidy.

n. Employee benefits

1) Short-term employee benefits

The liabilities related to short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for employee services.

2) Post-employment benefits

Pension contributions for defined contribution retirement plans are recognized as expenses during the period in which the employee provides service.

o. Share-based payment agreement

Employee stock options granted to employees

Employee stock options are recognized as an expense on a straight-line basis over the vesting period based on the fair value of the equity instrument on the grant date and the best estimate of the expected number of options to vest, with a corresponding adjustment to Capital Surplus - Employee Stock Options. If it vests immediately on the grant date, the entire amount is recognized as an expense on the grant date.

The consolidated company revises the estimated number of employee stock options expected to vest on each balance sheet date. If the originally estimated number is revised, the impact is recognized in profit or loss to reflect the revised estimated

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value in the cumulative expense, and a corresponding adjustment is made to Capital Surplus - Employee Stock Options.

p. Income tax

Income tax expenses are the sum of current income tax and deferred income tax.

1) Current income tax

The merged company determines the current income (loss) according to the regulations established in each tax jurisdiction for income tax filing purposes, based on which the payable (recoverable) income tax is calculated.

The additional income tax on undistributed earnings calculated in accordance with the R.O.C. Income Tax Act is recognized in the year of the shareholders' meeting resolution.

Adjustments for income tax payable from previous years are included in the current income tax.

2) Deferred income tax

Deferred income tax is calculated based on the temporary differences arising from the carrying amounts of the assets and liabilities in the accounts and their tax bases for calculating taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are recognized to the extent that it is probable that taxable income will be available against which the deductible temporary differences can be utilized.

Deferred income tax liabilities are recognized for all taxable temporary differences related to investments in subsidiaries, except when the merged company can control the timing of the reversal of the temporary differences, and it is probable that the temporary differences will not reverse in the foreseeable future. Deductible temporary differences related to such investments are recognized as deferred income tax assets only to the extent that it is probable that there will be sufficient taxable income to realize the temporary differences, and to the extent that they are expected to reverse in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and is reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the assets to be recovered. Deferred income tax assets that were not previously recognized are also reviewed at each balance sheet date. The carrying amount is increased if it is probable that future taxable income will be available to recover all or part of the assets.

Deferred income tax assets and liabilities are measured at the tax rates expected to apply in the period in which the liability is settled or the asset is realized,

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based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequences expected to arise from the manner in which the consolidated company recovers or settles the carrying amounts of its assets and liabilities as of the balance sheet date.

3) Current and deferred income tax

Current and deferred income tax are recognized in profit or loss, but current and deferred income tax related to items recognized in other comprehensive income or directly in equity are recognized in other comprehensive income or directly in equity, respectively.

Major Sources of Uncertainty in Significant Accounting Judgments, Estimates, and Assumptions

When adopting accounting policies, for those where relevant information is not easily obtainable from other sources, The management of the merged company must make related judgments, estimates, and assumptions based on historical experience and other relevant factors. The actual results may differ from the estimates.

The accounting policies, estimates, and basic assumptions adopted by the merged company, after being evaluated by The management of the merged company, present none of the major sources of uncertainty in significant accounting judgments, estimates, and assumptions.

Cash and cash equivalents.

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 949	$ 1,029
Bank checks and demand deposits	818,306	1,180,171
	$ 819,255	$ 1,181,200

The range of interest rates for bank deposits as of the balance sheet date is as follows:

	December 31, 2025	December 31, 2024
Bank deposits	0.02%~2.562%	0.002%~3.36%

Financial Instruments at Fair Value Through Profit or Loss

	December 31, 2025	December 31, 2024
Financial Assets - Current
Derivative instrument (not designated as hedging)
- Convertible bonds redemption
and put option (Note Sixteen)	$ 900	$ -
Financial Assets - Non-Current
mandatorily classified as Financial Assets at
Fair Value Through Profit or Loss
Limited Partnership	$ 30,977	$ 21,554
Financial liabilities - Current
Held for trading
Derivative instrument (not designated as hedging)
- Convertible bonds redemption
and put option (Note 16)	$ -	$ 700

Financial Assets at Fair Value Through Other Comprehensive Income

Equity instrument investment

	December 31, 2025	December 31, 2024
Non-current
Domestic investment
Unlisted stocks
Common stock of Shengmao Technology Co., Ltd.	$ -	$ -

The merged company invests in the common stock of Shengmao Technology Co., Ltd. for medium to long-term strategic purposes and expects to profit through long-term investment. The management of the consolidated company believes that including the short-term fair value fluctuations of the investment in profit or loss is not consistent with the aforementioned long-term investment plan. Therefore, they have chosen to designate the investment as Equity Instrument Investments at Fair Value Through Other Comprehensive Income.

The merged company adopted the market approach to evaluate the fair value of the common stock of Shengmao Technology Co., Ltd. on December 31, 2025 and 2024, taking

into account the financial statements and operating conditions of the company and similar companies.

9. Notes Receivable, Accounts Receivable, and Other Receivables

	December 31, 2025	December 31, 2024
Notes Receivable
Measured at Amortized Cost
Total carrying amount	$ 1,346	$ 2,973
Less: Allowance for Losses	-	-
	$ 1,346	$ 2,973
Accounts Receivable (Notes Four, Nine, and Twenty)
Measured at Amortized Cost
Total carrying amount	$ 727,639	$ 692,227
Less: Allowance for Losses	(15,291)	(15,254)
	$ 712,348	$ 676,973
Other Receivables (Notes Four and Nine)
Others	$ 697	$ 13

a. Notes Receivable

In determining the collectibility of Notes Receivable, the consolidated company considers any changes in the credit quality of the Notes Receivable from the date of original credit to the balance sheet date. The consolidated company continuously monitors and references the counterparty's past default records and analyzes their current Financial Status to assess whether there has been a significant increase in credit risk of Notes Receivable since initial recognition and to measure the expected credit losses. As of December 31, 2025 and 2024, the consolidated company assessed that no expected credit losses needed to be recognized for Notes Receivable.

The aging analysis of Notes Receivable is as follows:

	December 31, 2025	December 31, 2024
Not overdue	$ 1,346	$ 2,973

The above is an aging analysis based on overdue days.

b. Accounts Receivable

The Average credit period for service sales by the merged company is 180 days from prepayment to the end of the month, and the collection policy does not include interest on overdue Accounts Receivable. In determining the collectibility of Accounts Receivable, the consolidated company considers any changes in the credit quality of the Accounts Receivable from the date of original credit to the balance sheet date. Historical experience indicates that most accounts receivable have a good recovery rate.

To mitigate credit risk, the management of the consolidated company assigns a dedicated team responsible for determining credit limits, credit approval, and other monitoring procedures to ensure that appropriate actions have been taken for the recovery of overdue Accounts Receivable. In addition, the consolidated company individually reviews the recoverable amount of Accounts Receivable on the balance sheet date to ensure that appropriate impairment losses have been recognized for uncollectible Accounts Receivable. Based on this, the management of the merged company believes that the credit risk of The Company has significantly decreased.

The consolidated company recognizes a loss allowance for Accounts Receivable based on the lifetime expected credit loss. The lifetime expected credit loss is calculated using a provision matrix, taking into account historical experience, current market conditions, and forward-looking information. Among them, the customers Jiangsu Era Core Semiconductor Co., Ltd. and Shanxi Huajing Hengji New Materials Co., Ltd. have shown signs of default. Therefore, the consolidated company has adjusted these customers to use a different provision matrix from other customer groups and set the expected credit loss rate for these customers at 100%. Except for the aforementioned customers, the consolidated company's historical experience with credit losses shows no significant difference in loss patterns among different customer groups. Therefore, the provision matrix does not further distinguish customer groups and only sets the expected credit loss rate based on the number of days the Accounts Receivable are overdue.

If there is evidence indicating that the counterparty is experiencing severe financial difficulties and the consolidated company cannot reasonably expect to recover the amount, the consolidated company directly writes off the related Accounts Receivable and loss allowances. However, collection efforts will still continue, and any amount recovered from these efforts is recognized in profit or loss.

The consolidated company measures the loss allowance for Accounts Receivable according to the provision matrix as follows:

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December 31, 2025

	The counterparty shows no signs of default.							The counterparty has shown signs of default.	Total
	Not overdue	Overdue 1-30 days	Overdue 31-60 days	Overdue 61-90 days	Overdue 91-120 days	Overdue 121-180 days	Overdue for more than 181 days
Expected credit loss rate	0.28% - 0.37%	0.94% - 3.26%	5.81% - 7.37%	8.72% - 12.15%	12.67% - 22.92%	22.84% - 67.55%	100%	100%
Total carrying amount	$ 651,135	$ 34,985	$ 23,133	$ 10,848	$ 763	$ 1,480	$ 865	$ 4,430	$ 727,639
Allowance for Losses (Lifetime Expected Credit Loss)	(3,186)	(1,054)	(2,505)	(2,439)	(181)	(631)	(865)	(4,430)	(15,291)
Amortized cost	$ 647,949	$ 33,931	$ 20,628	$ 8,409	$ 582	$ 849	$ -	$ -	$ 712,248

December 31, 2024

	The counterparty shows no signs of default.							The counterparty has shown signs of default.	Total
	Not overdue	Overdue 1-30 days	Overdue 31-60 days	Overdue 61-90 days	Overdue 91-120 days	Overdue 121-180 days	Overdue for more than 181 days
Expected credit loss rate	0.05% - 0.42%	0.87% - 3.26%	4.92% - 5.32%	8.17% - 14.41%	11.73% - 25.52%	25.27% - 69.04%	100%	100%
Total carrying amount	$ 633,588	$ 27,881	$ 12,734	$ 5,053	$ 1,614	$ 2,223	$ 4,720	$ 4,414	$ 692,227
Allowance for Losses (Lifetime Expected Credit Loss)	(1,969)	(663)	(907)	(1,241)	(352)	(988)	(4,720)	(4,414)	(15,254)
Amortized cost	$ 631,619	$ 27,218	$ 11,827	$ 3,812	$ 1,262	$ 1,235	$ -	$ -	$ 676,973

The changes in the allowance for losses on Accounts Receivable (Notes Four, Nine, and Twenty) are as follows:

	2025	2024
Balance at the beginning of the year.	$ 15,254	$ 11,831
Add: Impairment loss recognized for the year	-	3,163
Foreign currency translation differences	37	260
Balance at the end of the year.	$ 15,291	$ 15,254

c. Other Receivables (Notes Four and Nine)

The policy adopted by the consolidated company is to conduct transactions only with parties that have good credit and, when necessary, to obtain sufficient collateral to mitigate the risk of financial loss arising from defaults. The consolidated company continuously monitors and references the counterparty's past default records and analyzes their current Financial Status to assess whether there has been a significant increase in credit risk of Other Receivables (Notes Four and Nine) since initial recognition and to measure the expected credit losses. As of December 31, 2025 and 2024, the consolidated company assessed that no expected credit losses needed to be recognized for Other Receivables.

10. Subsidiary

Subsidiaries included in the consolidated financial statements.

The entities included in the preparation of this consolidated financial report are as follows:

Name of investee company	Name of Subsidiary	Nature of business activities	Percentage of Ownership		Description:
			December 31, 2025	December 31, 2024
The Company	TRISTATE INTERNATIONAL CO., LTD.	Investment Holding	100%	100%	Note 1 and 3
	MSS Japan Company	Electronic material testing and analysis services	100%	100%	Note 1 and 4
	MSS USA CORP.	Electronic material testing and analysis services	100%	100%	Note 1 and 5
TRISTATE INTERNATIONAL CO., LTD.	GOOD ACTION INT'L CORP.	Investment Holding	100%	100%	Note 1 and 6
GOOD ACTION INT'L CORP.	Nanjing MSS Electronic Technology Limited	Electronic material testing and analysis services	100%	100%	Note 2

Note 1: The main operational risk is exchange rate risk.
Note 2: The main operational risks are political risks due to changes in policies and cross-strait relations, and exchange rate risk.
Note 3: TRISTATE INTERNATIONAL CO., LTD. passed a resolution by the Board of Directors on March 6, 2025, to reduce capital, and the funds of NT$14,693 thousand (USD 446 thousand) were remitted back to The Company on March 21, 2025.
Note 4: The Company participated in the capital increases in cash of MSS Japan Company, amounting to NT$170,640 thousand (JPY 800,000 thousand) in December 2024 and NT$134,680 thousand (JPY 650,000 thousand) in September 2025.
Note 5: The Company established the subsidiary MSS USA Corp. on May 6, 2024, and participated in the capital increases in cash of MSS USA Corp., amounting to NT$258,504 thousand (USD 8,000 thousand) in June 2024, NT$385,320 thousand (USD 12,000 thousand) in October 2024, NT$60,140 thousand (USD 2,000 thousand) in May 2025, and NT$92,340 thousand (USD 3,000 thousand) in October 2025.
Note 6: GOOD ACTION INT'L CORP. passed a resolution by the Board of Directors on March 6, 2025, to reduce capital, and the funds of NT$14,693 thousand (USD 446 thousand) were remitted back to TRISTATE INTERNATIONAL CO., LTD. on March 21, 2025.

11. Property, Plant And Equipment

For personal use.

	Land	Buildings	Machinery and Equipment	Office Equipment	Lease improvement	Transportation Equipment	Other Equipment	Property and equipment under construction and pending inspection	Total
Gen
Balance as of January 1, 2025	$ 98,426	$ 237,779	$ 4,593,101	$ 18,302	$ 163,505	$ 2,150	$ 39,144	$ 65,299	$ 5,217,706
Added	-	74,603	767,813	18,120	51,822	3,500	6,506	202,406	1,124,770
Reclassification (Note)	(1,957)	8,751	111,873	-	-	-	8,674	(2,949)	124,392
Disposal	-	-	(376,997)	(1,463)	(12,847)	-	(7,803)	-	(399,110)
Net exchange differences	(4,513)	(4,953)	38,031	144	374	-	40	(7,827)	21,296
Balance as of December 31, 2023	$ 91,956	$ 316,180	$ 5,133,821	$ 35,103	$ 202,854	$ 5,650	$ 46,561	$ 256,929	$ 6,089,054
Accumulated depreciation
Balance as of January 1, 2025	$ -	$ 14,521	$ 1,778,532	$ 8,796	$ 64,195	$ 209	$ 14,689	$ -	$ 1,880,942
Depreciation expenses	-	12,485	654,075	4,609	27,169	407	10,216	-	708,961
Disposal	-	-	(373,964)	(1,463)	(12,847)	-	(7,803)	-	(396,077)
Net exchange differences	-	397	2,803	47	119	-	8	-	3,374
Balance as of December 31, 2023	$ -	$ 27,403	$ 2,061,446	$ 11,989	$ 78,636	$ 616	$ 17,110	$ -	$ 2,197,200
Net amount as of December 31, 2025	$ 91,956	$ 288,777	$ 3,072,375	$ 23,114	$ 124,218	$ 5,034	$ 29,451	$ 256,929	$ 3,891,854
Gen
Balance as of January 1, 2024	$ -	$ 86,473	$ 3,263,465	$ 15,273	$ 106,140	$ -	$ 21,880	$ -	$ 3,493,231
Added	96,405	145,292	1,149,820	6,091	46,534	2,150	17,098	-	1,463,390
Reclassification (Note)	-	-	229,990	1,582	30,154	-	1,918	65,299	328,943
Disposal	-	-	(67,931)	(4,839)	(19,874)	-	(1,763)	-	(94,407)
Net exchange differences	2,021	6,014	17,757	195	551	-	11	-	26,549
Balance as of December 31, 2024	$ 98,426	$ 237,779	$ 4,593,101	$ 18,302	$ 163,505	$ 2,150	$ 39,144	$ 65,299	$ 5,217,706
Accumulated depreciation
Balance as of January 1, 2024	$ -	$ 6,725	$ 1,255,598	$ 9,882	$ 57,960	$ -	$ 9,021	$ -	$ 1,339,186
Depreciation expenses	-	7,518	387,153	3,616	25,691	209	7,426	-	631,613
Disposal	-	-	(67,931)	(4,839)	(19,874)	-	(1,763)	-	(94,407)
Net exchange differences	-	278	3,712	137	418	-	5	-	4,550
Balance as of December 31, 2024	$ -	$ 14,521	$ 1,778,532	$ 8,796	$ 64,195	$ 209	$ 14,689	$ -	$ 1,880,942
Net amount as of December 31, 2024	$ 98,426	$ 223,258	$ 2,814,569	$ 9,506	$ 99,310	$ 1,941	$ 24,455	$ 65,299	$ 3,336,764

Note: Transferred from Other Non-current Assets - Prepaid Equipment Payments.

No impairment loss was recognized or reversed in Year 2025 and 2024.

Depreciation expenses are calculated on a straight-line basis over the following useful lives:

Buildings
Main factory building	20 years
Building improvements	5 years
Machinery and Equipment	3 to 10 years
Office Equipment	2 to 5 years
Lease improvement	3 to 10 years
Transportation Equipment	5 years
Other Equipment	3 to 5 years

Please refer to Note 30 for the amount of Property, Plant and Equipment designated as collateral for borrowings.

36 -

12. Leasing agreement

a. Right-of-use assets

	December 31, 2025	December 31, 2024
Carrying amount of right-of-use assets
Land (Note)	$ 3,520	$ 3,600
Buildings	179,318	218,223
Office Equipment	-	35
Transportation Equipment	4,330	6,234
	$ 187,168	$ 228,092
	2025	2024
Addition of Right-of-use assets	$ 27,574	$ 93,856
Depreciation expenses of right-of-use assets
Land	$ 91	$ 93
Buildings	64,881	51,049
Office Equipment	35	92
Transportation Equipment	3,084	2,746
	$ 68,091	$ 53,980

Note: The consolidated company has obtained the state-owned Land use certificate for the Land use rights in Mainland China.

No impairment loss was recognized or reversed in Year 2025 and 2024.

b. Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Changes	$ 51,094	$ 63,810
Non-current	136,848	164,216
	$ 187,942	$ 228,026

The range of discount rates for lease liabilities is as follows:

	December 31, 2025	December 31, 2024
Buildings	1.22%~4.75%	1.22%~4.75%
Office Equipment	-	1.66%
Transportation Equipment	1.91%~2.02%	1.56%~2.01%

c. Important leasing activities and clauses

The consolidated company leases buildings for business premises with lease terms of 1 to 10 years, also leases office equipment for business use with a lease term of 5 years, and leases transportation equipment for goods transportation with a lease term of 3 years. At the end of the lease term, the consolidated company has no preferential purchase rights for the leased buildings, office equipment, and transportation equipment.

d. Other Leasing Information

	2025	2024
Short-term leasing expenses	$ 8,740	$ 4,818
Leasing expenses for low-value assets	$ 1,420	$ 1,189
Total cash outflow from leasing	$ (81,568)	$ (64,128)

The consolidated company has opted for the recognition exemption applicable to short-term leases of buildings and transportation equipment and leases of office equipment qualifying as low-value assets, and does not recognize related right-of-use assets and lease liabilities for such leases.

All leasing commitments commencing after the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Leasing commitments	$ 218,796	$ 232,270

38 -

13. Other Intangible Assets

	Computer software
Cost
Balance as of January 1, 2025	$ 20,591
Individually acquired	443
Disposal	(3,469)
Net exchange differences	35
Balance as of December 31, 2025	$ 17,600
Accumulated amortization
Balance as of January 1, 2025	$ 7,141
Amortization expenses	5,871
Disposal	(3,469)
Net exchange differences	46
Balance as of December 31, 2025	$ 9,589
Net amount as of December 31, 2025	$ 8,011
Cost
Balance as of January 1, 2024	$ 18,718
Individually acquired	10,905
Disposal	(9,083)
Net exchange differences	51
Balance as of December 31, 2024	$ 20,591
Accumulated amortization
Balance as of January 1, 2024	$ 10,849
Amortization expenses	5,360
Disposal	(9,083)
Net exchange differences	15
Balance as of December 31, 2024	$ 7,141
Net amount as of December 31, 2024	$ 13,450

Amortization expenses are calculated on a straight-line basis over the following useful lives:

Computer software

3 to 5 years

39 -

14. Other Assets

	December 31, 2025	December 31, 2024
Changes
Prepaid salary	$ 54,453	$ 69,702
Tax credits to be retained	34,742	11,751
Prepaid lease payments	15,439	3,205
Prepaid Others	63,654	39,411
	$ 168,288	$ 124,069
Non-current
Prepaid equipment payments	$ 165,465	$ 143,913
Prepaid salary	95,815	83,917
Security Deposits (Note)	33,793	33,217
	$ 295,073	$ 261,047

Note: The consolidated company considers the debtor's historical experience, current market conditions, and forward-looking information to measure the 12-month expected credit loss or lifetime expected credit loss for refundable deposits. As of December 31, 2025 and 2024, the consolidated company assessed that no expected credit losses needed to be recognized for refundable deposits.

15. Borrowings

a. Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured borrowings
Bank borrowings	$ 205,000	$ -

The interest rate for the bank revolving borrowings on December 31, 2025 was 1.95% to 1.98%.

b. Long-term borrowings

	December 31, 2025	December 31, 2024
Secured borrowings (Note 30)
Bank borrowings	$ 151,424	$ 303,683
Unsecured borrowings
Bank borrowings	1,470,133	1,273,000
Less: Government subsidy discount (Note 25)	(3,436)	(8,885)
Less: Classified as current portion due within one year	(289,463)	(148,268)
Long-term borrowings	$ 1,328,658	$ 1,419,530

The borrowings of the consolidated company include:

Financing institutions	Collateral or guarantee	Financing period and methods of repayment and interest payment:	December 31, 2025		December 31, 2024
			Amount	Interest rate %	Amount	Interest rate %
Hua Nan Commercial Bank Hsinchu Science Park Branch (Note)	Machinery and Equipment	May 29, 2020 to May 15, 2027, with a three-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	$ 37,184	2.06	$ 91,036	2.06
Hua Nan Commercial Bank Hsinchu Science Park Branch (Note)	None	September 8, 2023 to August 15, 2030, with a three-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	490,000	2.11	327,000	2.11
Chang Hwa Bank Hsinchu Branch (Note)	Machinery and Equipment	September 29, 2020 to September 15, 2027, with a three-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	45,606	1.98	100,667	1.98
Chang Hwa Bank Hsinchu Branch (Note)	None	September 8, 2023 to August 15, 2030, with a one-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	82,133	2.03	75,000	2.03
Mega International Commercial Bank Hsinchu Science Park Branch (Note)	Machinery and Equipment	November 20, 2020 to November 20, 2027, with a three-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	68,634	2.06	111,980	2.06
Mega International Commercial Bank Hsinchu Science Park Branch (Note)	None	March 8, 2024 to February 15, 2031, with a three-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	65,000	2.14	44,000	2.14
E. Sun Bank Hsinchu Branch (Note)	None	August 16, 2023 to August 15, 2030, with a two-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	193,200	2.03	213,000	1.90
Bank of Taiwan Hsinchu Science Park Branch (Note)	None	June 30, 2023 to June 15, 2030, with a three-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	483,000	1.95	446,000	1.95
Cathay United Bank Guangian Branch (Note)	None	September 12, 2023 to August 15, 2030, with a two-year grace period, disbursements can be made in batches within the period, and after the expiration, the principal is to be repaid in equal monthly installments, with interest calculated monthly.	156,800	1.95	168,000	1.95
			1,621,557		1,576,683
			(3,436)		(8,885)
Less: Government subsidy discount
Less: Long-term borrowings maturing within one year			(289,463)		(148,268)
			$ 1,328,658		$ 1,419,530

Note: investment to which the equity method is applied. The consolidated company obtained a government preferential interest rate loan from the National

Development Fund Management Committee of the R.O.C. under the "Accelerated Enterprise Investment Program for Rooting in Taiwan." For related details, please refer to Note Twenty-Five.

The aforementioned bank borrowings are secured by the consolidated company's own Machinery and Equipment. Please refer to Note Thirty.

16. Corporate Bonds Payable

	December 31, 2025	December 31, 2024
The first domestic unsecured convertible bonds.	$ 479,859	$ 467,898
Less: Classified as current portion due within one year	(479,859)	-
	$ -	$ 467,898

The first domestic unsecured convertible bonds.

The Company, approved by the Board of Directors on May 3, 2024, issued on August 15, 2024, at the Taipei Exchange in the R.O.C., 5,000 units of NTD-denominated unsecured Convertible bonds with a coupon interest rate of 0% and issued at 110.28% of the par value, totaling a principal amount of NT$500,000 thousand. The issuance period is 3 years. The main issuance terms are as follows:

a. Issuance period: August 15, 2024, to August 15, 2027.

b. Maturity repayment:

Except when bondholders apply to convert to the Company's common stock, exercise the put option, or when the Company redeems the bonds early or repurchases and cancels them, the Company shall repay the convertible bonds held by bondholders in cash at par value upon maturity.

c. Methods for Conversion:

1) From the day after the three-month mark following the issuance of the convertible bonds (November 16, 2024) until the maturity date (August 15, 2026), bondholders may request to convert these convertible bonds into the Company's common stock at any time, except during the following periods: (1) the statutory transfer suspension period of common stocks; (2) from 15 business days before the transfer suspension date for the Company's stock dividend allotment, cash dividend distribution, or cash capital increase subscription until the record date of rights distribution; (3) from the capital reduction record date until the day before the trading of stocks issued in exchange for the capital reduction begins; (4) from the start date of the suspension of conversion (subscription) due to stock par value change until the day before the trading of new stocks issued in exchange begins.

2) The conversion price of the convertible bonds at issuance was set at NT$150 per share. Starting from July 15, 2025, the conversion price was adjusted from NT$149 to NT$147.8 per share.

d. Put option of the bondholder:

The convertible bonds set the date two years after issuance (August 15, 2026) as the base date for bondholders to request an early redemption of the convertible bonds. Bondholders may request the Company to redeem the convertible bonds at par value within thirty days prior to the base date.

e. Important redemption terms:

1) From the day following the three-month mark after the issuance of these convertible bonds (November 16, 2024) until forty days before the maturity date (July 6, 2026), if the closing price of the Company's common stock exceeds the then current conversion price by 30 percent or more for thirty consecutive business days, the Company may redeem all outstanding convertible bonds in cash at their par value.

2) From the day following the three-month mark after the issuance of these convertible bonds (November 16, 2024) until forty days before the maturity date (July 6, 2026), if the outstanding balance of these convertible bonds is less than 10% of the original total issuance, the Company may redeem all outstanding convertible bonds in cash at their par value at any time.

f. This convertible bond includes liability and equity components, with the equity component expressed under equity as Capital Surplus - Stock Options. The effective interest rate of the liability component at initial recognition was 2.5269%. The par value of the convertible bonds exercised for conversion in the 2024 Year was NT$100 thousand, with NT$7 thousand transferred to share capital. Due to the exercise of convertible bond conversion rights, the originally recognized Capital Surplus - Subscription Rights decreased by NT$16 thousand, the Discount on Corporate Bonds Payable decreased by NT$6 thousand, and the net amount converted exceeded the par value of the common stock, resulting in a transfer to Capital Surplus - Premium on Stock Issuance of NT$103 thousand.

42 -

43 -

Issue price (net of transaction Cost NT$4,381 thousand) $ 546,999
equity component (81,707)
Financial liabilities at fair value through profit or loss (2,633)
Deferred Income Tax Assets 876
Liability component on the issuance date 463,535
Interest calculated using an effective interest rate of 2.5269% 4,457
Corporate Bonds Payable converted into common stock. (94)
Liability component on the issuance date December 31, 2024 467,898
Interest calculated using an effective interest rate of 2.5269% 11,961
Liability component on the issuance date December 31, 2025 $ 479,859

17. Other Liabilities

	December 31, 2025	December 31, 2024
Changes
Other Payables (Notes Seventeen and Twenty-six)
Payable Equipment (Note Twenty-Six)	$ 189,886	$ 101,600
Accrued Salaries and Bonuses	136,470	121,782
Accrued Insurance Fees	18,987	17,237
Taxes payable on operating income	17,253	6,420
Accrued Pensions	15,512	13,790
Accrual for Employees' remunerations	-	10,797
Accrual for Directors' Remuneration	-	4,050
Taxes Payable	172	1,416
Others	20,789	10,926
	$ 399,069	$ 288,018
Deferred Revenue
Government subsidy (Note Twenty-Five)	$ 3,177	$ 4,044
Other Liabilities
Refund Liabilities (Note Twenty)	$ 85,106	$ 52,375
Others
Temporary Receipts	258	130
Collection Receivables	12,371	10,374
	$ 12,629	$ 10,504
Non-current
Deferred Revenue
Government subsidy (Note Twenty-Five)	$ 6,154	$ 8,919

44 -

18. Post-employment benefits plan

Defined contribution plan

The pension system applicable to The Company under the "Labor Pension Act" is a government-managed defined contribution retirement plan, whereby 6% of the employee's monthly salary is contributed to the individual account at the Bureau of Labor Insurance.

Employees of the subsidiaries of the consolidated company in the regions of Japan, the United States, and Mainland China are members of the retirement benefit plans operated by the local government. The subsidiary must allocate a specific proportion of the salary cost to the retirement benefit plan to fund the plan. The obligation of the consolidated company for this government-operated retirement benefit plan is only to contribute a specific amount.

19. Equity

a. Share Capital

Common stock

	December 31, 2025	December 31, 2024
Authorized Number of Shares (thousand shares)	80,000	80,000
Authorized capital	$ 800,000	$ 800,000
Number of shares issued and fully paid up (thousand shares)	51,782	51,781
Issued Share Capital	$ 517,819	$ 517,812
Share Capital Received in Advance	$ -	$ 7

The issued common stock has a par value of NT$10 per share, with each share entitling the holder to one voting right and the right to receive dividends.

The Company, on May 3, 2024, resolved through the Board of Directors to conduct a cash capital increase, issuing 5,000 thousand new shares at a premium of NT$120 per share, and set August 30, 2024, as the capital increase record date. After the increase, the paid-in capital was NT$517,812 thousand. This change has been approved and registered with the Ministry of Economic Affairs under Jing-Shou-Zhong-Zi No. 11330179260 on October 7, 2024.

The holder of the convertible bonds issued by the Company exercised the conversion right on November 21, 2024, resulting in an increase of NT$7 thousand in the Company's Share Capital (recorded as Share Capital Received in Advance). The Board of Directors resolved to set the capital increase base date as March 6, 2025. This change has been approved by the Ministry of Economic Affairs with

Jing-Shou-Zhong-Zi No. 11430037550 on March 26, 2025, and has been registered accordingly.

b. Capital Surplus

	December 31, 2025	December 31, 2024
To be used to cover losses, distribute cash, or allocate to Share Capital (1)
Premium on Stock Issuance	$ 1,952,018	$ 1,952,018
Shall not be used for any purpose
Subscription Warrants	81,691	81,691
	$ 2,033,709	$ 2,033,709

1) Such capital surplus may be used to cover losses or, when the company has no losses, to distribute cash or allocate to Share Capital, with the allocation to Share Capital restricted to a certain percentage of the paid-in capital each year.

c. Retained earnings and dividend policy

According to the profit distribution policy stipulated in the Company's Articles of Incorporation, if the Company's annual final accounts reveal a surplus, it should first compensate for accumulated losses and allocate $10\%$ as a legal reserve allocation, unless the legal reserve has already reached the Company's paid-in capital. The remaining amount will then be allocated as a special reserve allocation, ensuring any deficiencies in the net increase in the fair value of investment properties accumulated in previous periods and the net amount of other equity deductions accumulated in previous periods are covered before profit distribution. This special reserve should first be allocated from the previous period's undistributed earnings to an equivalent amount; if insufficient, it will be supplemented by the current period's net profit after tax and other items added to the current period's undistributed earnings. If there is still a surplus, it will be combined with accumulated undistributed earnings, and the Board of Directors will draft a profit distribution proposal to be resolved by the shareholders' meeting for the distribution of shareholder dividends and bonuses. The principle of the Company's dividend policy is robust and balance, while taking account of profit, financial structure, and the future development of the Company. When distributing dividends, the major considerations are the current industry conditions and the operation planning and cash flows based on the future expansions. Every year, no less than $5\%$ of the distributable earnings are provided to distribute the dividend bonus, in cash or in shares, and no less than $10\%$ of dividends shall be paid in cash. Provided, when the accumulated earnings available for distribution is less than $5\%$ of the paid-in capital, the distribution is not required. However, the board of directors may adjust such ratio within the extent prescribed above based on the overall operation and funds, and submit the proposal to the shareholders' meeting for resolution. The policy for the distribution of remuneration to employees and

directors as stipulated in The Company's Articles of Incorporation can be found in Note 21(g) on employee remuneration and director remuneration.

The legal reserve allocation may be used to cover losses. When the company has no losses, the portion of the legal reserve allocation that exceeds 25% of the total paid-in capital may be allocated to Share Capital or distributed in cash.

The Company allocates special reserve in accordance with Jin-Guan-Zheng-Fa-Zi No. 1090150022 and the "Q&A on the Application of Special Reserve Allocation after the Adoption of the International Financial Reporting Standards (IFRS Accounting Standards)."

The Company held general shareholders' meetings on June 10, 2025, and June 26, 2024, where resolutions were passed for the 2024 and 2023 earning distribution proposals, respectively, as follows:

	2024	2023
Legal reserve allocation	$ 6,496	$ 26,128
Special reserve allocation	$ (16,972)	$ 11,301
Cash dividend	$ 51,782	$ 210,515
Cash dividend per share (NT$)	$ 1	$ 4.50

On March 10, 2026, the Board of Directors of the Company proposed the 2025 earning distribution proposal as follows:

	2025
Special reserve allocation	$ 6,943
Cash dividend	$ 51,782
Cash dividend per share (NT$)	$ 1

The 2025 earning distribution proposal is pending a resolution at the general shareholders' meeting scheduled for June 11, 2026.

d. Special reserve allocation

	2025	2024
Balance at the beginning of the year.	$ 16,972	$ 5,671
Deduction for Other Equity Interests Item	-	11,301
Reversal of Deduction for Other Equity Interests Item	(16,972)	-
Balance at the end of the year.	$ -	$ 16,972

e. Other Equity Interests Item

1) Exchange differences resulting from the translation of financial statements of overseas operating entities.

	2025	2024
Balance at the beginning of the year	$ 16,617	$ (12,722)
Generated for the Year.
Translation differences of overseas operating entities.	(24,137)	36,674
Related income tax	4,827	(7,335)
Other comprehensive income for the year (net after tax)	(19,310)	29,339
Balance at the end of the year.	$ (2,693)	$ 16,617

2) Unrealized valuation gains and losses of Financial Assets at Fair Value Through Other Comprehensive Income

	2025	2024
Balance at the beginning of the year	$ (4,250)	$ (4,250)
Balance at the end of the year	$ (4,250)	$ (4,250)

Revenue

	2025	2024
Customer contract revenue
Testing and analysis services	$ 2,178,647	$ 1,966,669

a. Description of the customer contract

The customer contracts signed by the merged company primarily involve providing customized electronic material testing and analysis services for the semiconductor industry and fulfilling the performance obligation of issuing testing and analysis result reports. Customers pay the contract consideration based on the agreed credit period and transaction criteria after receiving the report and verifying the completion of each testing item. Since the interval between the transfer of the testing and analysis result report and the customer's payment does not exceed one year, the significant financing component of the contract consideration is not adjusted.

Considering the discount criteria of different customer contracts and the accumulated experience from past transactions with customers, the merged company estimates the discount amount using the most likely amount, adjusts the revenue amount accordingly, and recognizes refund liabilities.

47 -

b. Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Notes Receivable (Note 9)	$ 1,346	$ 2,973	$ 429
Accounts Receivable (Note 9)	712,348	676,973	687,525
	$ 713,694	$ 679,946	$ 687,954
Contract Liabilities
Testing and analysis services	$ 20,495	$ 16,386	$ 32,031

The changes in Contract Liabilities primarily arise from the difference between the timing of satisfying performance obligations and the timing of customer payments.

c. Breakdown of Customer Contract Revenue

	2025	2024
Main regional Market
Asia	$ 2,099,545	$ 1,922,239
America	62,852	40,258
Others	16,250	4,172
	$ 2,178,647	$ 1,966,669

Net profits from continuing operations

a. Interest income

	2025	2024
Bank deposits	$ 8,869	$ 10,747

b. Other income

	2025	2024
Government subsidy income (Note 25)	$ 4,217	$ 4,858
Others	2,980	3,535
	$ 7,197	$ 8,393

c. Other gains and losses

	2025	2024
Net foreign exchange loss	$ (15,458)	$ (7,296)
Gain on disposal of assets	-	2,163
Gain on disposal of property, plant and equipment	50	-
Gains on Financial Assets and Financial Liabilities
Financial Assets at Fair Value
Through Profit or Loss are mandatorily classified as
Financial Assets at Fair Value
Through Profit or Loss.	2,823	154
Financial liabilities held for trading	700	1,933
Others	1,154	(202)
	$ (10,731)	$ (3,248)

d. Finance cost

	2025	2024
Interest on bank borrowings (Note 25)	$ 33,609	$ 29,943
Interest on convertible bonds (Note 16)	11,961	4,457
Interest on lease liabilities	4,133	3,630
	$ 49,703	$ 38,030

e. Depreciation and amortization

	2025	2024
Depreciation expenses summarized by function
Operating costs.	$ 721,930	$ 642,092
Operating Expenses	55,122	43,501
	$ 777,052	$ 685,593
Amortization expenses summarized by function
Operating costs.	$ 4,183	$ 3,498
Operating Expenses
Selling expenses	13	-
Administrative expenses	1,675	1,841
Research and development expenses	-	21
	$ 5,871	$ 5,360

f. Employee benefits expenses

50 -

	2025	2024
Share-based payments (Note 24)	$ -	$ 17,421
Post-employment benefits	40,970	32,549
Other employee benefits	940,223	817,909
Total employee benefits expenses	$ 981,193	$ 867,879
Summarized by function
Operating costs.	$ 702,276	$ 621,044
Operating Expenses	278,917	246,835
	$ 981,193	$ 867,879

g. Employees' remunerations and directors' and supervisors' remuneration

According to the stipulations in the Company's Articles of Incorporation, the Company shall allocate no less than 10% and no more than 5% from the pre-tax profit, before distributing to employees and directors, as remuneration to employees and directors, respectively. According to the amendments to the Securities Exchange Act in August 2024, the Company has resolved and passed the amendment of the Articles of Incorporation in the 2025 general shareholders' meeting, stipulating that no less than 50% of the allocated employee remuneration for the Year shall be for grassroots employees. The Company had a pre-tax net loss for 2025, so no estimation of employees' remuneration (including grassroots employees' remuneration) and directors' remuneration was made. The 2024 Employees' remunerations and directors' and supervisors' remuneration were resolved by the Board of Directors on March 6, 2025, as follows:

Estimated Percentage

	2024
Employees' remunerations	10%
Directors' Remuneration	3.75%

Amount

	2024
Employees' remunerations	$ 10,797
Directors' Remuneration	$ 4,050

If there are still changes in the amount after the approval and release date of the annual consolidated financial report, they will be treated according to accounting estimate adjustments and recorded in the subsequent year.

The actual distribution amount of the employees' remunerations and directors' remuneration for the years 2024 and 2023 is consistent with the recognized amounts in the 2024 and 2023 consolidated financial statements.

For information regarding the Employees' remunerations and directors' and supervisors' remuneration as resolved by the Company's Board of Directors, please refer to the "Market Observation Post System" of the Taiwan Stock Exchange.

h. Foreign exchange (loss) gain

	2025	2024
Total foreign exchange gain	$ 19,726	$ 12,637
Total foreign exchange (loss)	(35,184)	(19,933)
Net loss	$ (15,458)	$ (7,296)

Income tax from continuing operations

a. Income tax recognized in profit or loss.

The main components of income tax expenses are as follows:

	2025	2024
Current income tax
Generated for the Year.	$ 34,992	$ 28,399
Non-deductible foreign source income	1,000	9,294
Adjustments from previous years	7,250	4,304
	43,242	41,997
Deferred income tax
Generated for the Year.	4,951	13,277
Change in tax rate	-	(7,747)
Income tax expenses recognized in profit or loss.	$ 48,193	$ 47,527

The reconciliation of accounting income and income tax expenses is as follows:

	2025	2024
Net profits before tax from continuing operations	$ 11,519	$ 112,490
Income tax expenses calculated at the statutory tax rate on profit before tax	$ 33,499	$ 44,467
Expenses and losses not deductible for tax purposes.	12,520	3,884
Investment tax credits utilized for the year	(6,076)	(6,383)
Unrecognized loss carryforwards/deductible temporary differences.	-	(832)
The temporary differences recognized for this year that were generated in previous years.	-	540
Non-deductible foreign source income	1,000	9,294
Adjustments for current income tax expenses from previous years in the year.	7,250	4,304
Change in tax rate	-	(7,747)
Income tax expenses recognized in profit or loss.	$ 48,193	$ 47,527

The applicable tax rate in the Taiwan region is 20%; the applicable tax rate for subsidiaries in the China region is 25%. Among them, Nanjing Panqun Electronic Technology Co., Ltd., according to the Enterprise Income Tax Law and its Implementation Regulations of the People's Republic of China, obtained approval from the State Administration of Taxation of China on December 16, 2024, as a high-tech enterprise, enjoying a preferential tax rate of 15%. The taxes generated in other jurisdictions are calculated according to the applicable tax rates of the respective jurisdictions.

b. Income tax recognized in other comprehensive income.

	2025	2024
Deferred income tax
Generated for the Year.
-Translation differences of overseas operating entities.	$ (4,827)	$ 7,335

c. Deferred Income Tax Assets and Liabilities

The changes in Deferred Income Tax Assets and Liabilities are as follows:

2025

	Balance at the beginning of the year.	Recognized in profit or loss.	Income tax recognized in other comprehensive income.	Exchange differences	Balance at the end of the year.
Deferred Income Tax Assets
Temporary difference
Refund Liabilities	$ 10,475	$ 6,546	$ -	$ -	$ 17,021
Amortization expenses	2,567	691	-	-	3,258
Financial Assets at Fair Value Through Other
Comprehensive Income	750	-	-	-	750
Unrealized exchange loss	-	96	-	3	99
Allowance for Losses - Accounts Receivable (Notes Four, Nine, and Twenty)
Unrealized profits with the Subsidiary	1,548	-	-	5	1,553
Convertible bonds	34,772	23,389	-	-	58,161
Lease liabilities	765	(292)	-	-	473
Exchange differences of overseas operating entities.	962	715	-	31	1,708
	$ 51,839	$ 31,145	$ 673	$ 39	$ 83,696
Deferred income tax liabilities
Temporary difference
Unrealized Service Revenue (Notes Four and Twenty)	$ 7,913	$ 7,884	$ -	$ 318	$ 16,115
Unrealized exchange loss	822	385	-	(7)	1,200
Share of profit or loss of a Subsidiary using the equity method
Right-of-use assets	87,797	27,158	-	-	114,955
Exchange differences of overseas operating entities.	1,577	669	-	31	2,277
	4,154	-	(4,154)	-	-
	$ 102,263	$ 36,096	$ (4,154)	$ 342	$ 134,547

53 -

2024

	Balance at the beginning of year.	Issuance of convertible bonds	Change in tax rate	Recognized in profit or loss.	Income tax recognized in other comprehensive income.	Exchange differences	Balance at the end of year.
Deferred Income Tax Assets
Temporary difference
Refund Liabilities	$ 7,956	$ -	$ -	$ 2,519	$ -	$ -	$ 10,475
Amortization expenses	2,079	-	-	488	-	-	2,567
Financial Assets at Fair Value Through Other Comprehensive Income	750	-	-	-	-	-	750
Unrealized exchange loss	977	-	-	(977)	-	-	-
Allowance for Losses - Accounts Receivable (Notes Four, Nine, and Twenty)	1,724	-	(710)	474	-	60	1,548
Unrealized profits with the Subsidiary	26,582	-	-	8,190	-	-	34,772
Convertible bonds	-	876	-	(111)	-	-	765
Lease liabilities	-	-	-	957	-	5	962
Exchange differences of overseas operating entities.	3,181	-	-	-	(3,181)	-	-
	$ 43,249	$ 876	$ (710)	$ 11,540	$ (3,181)	$ 65	$ 51,839
Deferred income tax liabilities
Temporary difference
Unrealized Service Revenue (Notes Four and Twenty)	$ 19,907	$ -	$ (8,198)	$ (4,426)	$ -	$ 630	$ 7,913
Unrealized exchange loss	628	-	(259)	433	-	20	822
Share of profit or loss of a Subsidiary using the equity method	60,556	-	-	27,241	-	-	87,797
Right-of-use assets	-	-	-	1,569	-	8	1,577
Exchange differences of overseas operating entities.	-	-	-	-	4,154	-	4,154
	$ 81,091	$ -	$ (8,457)	$ 24,817	$ 4,154	$ 658	$ 102,263

d. Income tax assessment status

The Company's business income tax filing has been assessed by the tax collection authorities up to the Year 2023. The consolidated company had no pending tax litigation as of December 31, 2025.

Earnings (Loss) Per Share

	2025	2024
Basic earnings (loss) per share
From continuing operations	$ (0.71)	$ 1.34
Diluted Earnings (Loss) Per Share
From continuing operations	$ (0.71)	$ 1.34

The (loss) earnings and weighted-average number of common stock used to calculate earnings (loss) per share are as follows:

Net profit (loss) for the year

	2025	2024
Net profit (loss) for the year	$ (36,674)	$ 64,963
Net profit (loss) used to calculate basic earnings (loss) per share.	$ (36,674)	$ 64,963
Effect of potential common stock with dilutive impact:
Convertible bonds	- (Note)	- (Note)
Net profit (loss) used to calculate diluted earnings (loss) per share.	$ (36,674)	$ 64,963

Number of Shares

Unit: thousand shares

	2025	2024
Weighted-average number of common stock used to calculate basic earnings (loss) per share.	51,782	48,475
Effect of potential common stock with dilutive impact:
Convertible bonds	- (Note)	- (Note)
Employees' remunerations	-	107
Weighted-average number of common stock used to calculate diluted earnings (loss) per share.	51,782	48,582

If the consolidated company can choose to distribute employees' remunerations in the form of stock or cash, it is assumed that the employees' remunerations will be distributed in stock when calculating diluted earnings per share. The potential common stock is included in the weighted-average number of shares outstanding for the calculation of diluted earnings per share when it has a dilutive effect. When calculating diluted earnings per share before determining the number of shares for employees' remunerations in the next year, the dilutive effect of such potential common stock is also considered.

Note: Due to having an anti-dilutive effect, it is not included in the calculation of diluted earnings per share.

56 -

24. Share-based payment agreement

Capital increase in cash with reserved employee stock options.

On May 3, 2024, the Company had its Board of Directors approve a cash capital increase plan to issue new shares, and pursuant to Article 267 of the Company Act, reserved 15%, which amounts to 750 thousand shares, for employee subscription. The aforementioned employee stock options were fully vested on the grant date.

The grant date of the aforementioned capital increase in cash with reserved employee stock options was August 1, 2024. The Company calculated the fair value of the subscription warrants using the Black-Scholes option pricing model, with the following input values:

Stock price on the grant date	$ 142
Exercise price	$ 120
Expected volatility	46.47%
Lifetime	0.0952 year
Expected dividend yield	-
Risk-free interest rate	1.2399%
Fair value of granted Subscription Warrants (NTD/share)	$ 23.228

The remuneration cost recognized in the 2024 Year was NT$17,421 thousand.

25. Government subsidy

As of December 31, 2025, the consolidated company obtained a government preferential interest rate loan of NT$2,297,582 thousand from the National Development Fund Management Committee of the R.O.C. under the "Accelerated Enterprise Investment Program for Rooting in Taiwan" for the purchase of machinery and equipment. The borrowings are to be repaid in installments over 5 to 7 years from the initial drawdown date, including a grace period of 1 to 3 years. The fair value of the borrowings estimated using the market interest rate of 1.95% to 2.14% at the time of borrowing was NT$2,274,417 thousand. The difference between the loan amount received and the fair value of the loan, amounting to NT$23,165 thousand, represents the preferential interest rate as a government subsidy and is recognized as deferred revenue. The Deferred Revenue will be transferred to Other income over the useful life of the Machinery and Equipment after their acceptance is completed. The Company recognized other income of NT$3,954 thousand and NT$3,967 thousand in the years 2025 and 2024, respectively, and recognized interest expenses on the borrowings of NT$5,771 thousand and NT$5,354 thousand, respectively.

If the consolidated company fails to meet the project loan criteria during the loan period, resulting in the National Development Fund Management Committee suspending or terminating the disbursement of entrusted handling fees, the consolidated company will instead pay based on the originally agreed interest rate plus the annual interest rate.

Cash Flow information

a. Non-cash transaction

Except as disclosed in other notes, the consolidated company engaged in the following non-cash transaction investment and financing activities in the year 2025 and 2024:

1) The consolidated company had outstanding payments for the acquisition of property, plant and equipment amounting to NT$189,886 thousand and NT$101,600 thousand as of December 31, 2025 and 2024, respectively, recorded under Other Payables.

2) The Company issued convertible bonds on August 15, 2024, and separately recognized a related liability component (recorded as Financial liabilities - Current at fair value through profit or loss) of 2,633 thousand dollars, an equity component (recorded as Capital Surplus - Stock Warrants) of 81,707 thousand dollars, and Deferred Income Tax Assets of 876 thousand dollars.

b. Liability changes from financing activities

2025

	Non-cash changes
	January 1, 2025	Cash Flow	Add leasing	Finance cost	Fair Value Adjustment - Deferred Revenue	Changes in exchange rates.	Others	December 31, 2025
Short-term borrowings	$ -	$ 205,000	$ -	$ -	$ -	$ -	$ -	$ 205,000
Long-term borrowings	1,567,798	44,874	-	5,771	(322)	-	-	1,618,121
Lease liabilities	228,026	(67,275)	27,574	4,133	-	(383)	(4,133)	187,942
Corporate Bonds Payable	467,898	-	-	11,961	-	-	-	479,859
	$ 2,263,722	$ 182,599	$ 27,574	$ 21,865	$ (322)	$ (383)	$ (4,133)	$ 2,490,922

2024

	Non-cash changes
	January 1, 2024	Cash Flow	Add leasing	Corporate Bonds Payable liability and equity component	The impact of income tax	Finance cost	Fair Value Adjustment - Deferred Revenue	Changes in exchange rates.	Others (Note)	December 31, 2024
Short-term borrowings	$ -	$ -	$ -	$ -	$ -	$ 2,510	$ -	$ -	$ (2,510)	$ -
Long-term borrowings	930,163	639,233	-	-	-	5,354	(6,952)	-	-	1,567,798
Lease liabilities	188,746	(54,491)	93,856	-	-	3,630	-	(85)	(3,630)	228,026
Corporate Bonds Payable	-	551,380	-	(84,434)	876	4,457	-	-	(4,381)	467,898
	$ 1,116,909	$ 1,136,122	$ 93,856	$ (84,434)	$ 876	$ 15,951	$ (6,952)	$ (85)	$ (10,521)	$ 2,263,722

Note: It includes the issuance Cost of convertible bonds related to NT$4,381 thousand.

58 -

27. Capital risk management

The consolidated company conducts capital management to ensure that under the going concern assumption, the balance of debt and equity is optimized to maximize shareholder returns.

The capital structure of the merged company consists of the company's net debt (i.e., borrowings and corporate bonds payable less cash and cash equivalents) and equity (i.e., share capital, capital surplus, retained earnings, and other equity interests item).

The consolidated company is not required to comply with Other external capital regulations.

The primary management of the merged company reviews the group's capital structure annually, including an assessment of the costs and associated risks of various types of capital. Based on the recommendations of the primary management, the merged company will balance its overall capital structure through dividend payment, issuing new shares, and issuing new debt or retiring old debt.

28. Financial instruments

a. Information on Fair Value - Financial Instruments Not Measured at Fair Value

December 31, 2025

	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial liabilities
Financial liabilities measured at amortized cost
- Corporate Bonds Payable	$ 479,859	$ -	$ -	$ 482,903	$ 482,903

December 31, 2024

	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial liabilities
Financial liabilities measured at amortized cost
- Corporate Bonds Payable	$ 467,898	$ -	$ -	$ 469,856	$ 469,856

The fair value measurement of the liability component of the aforementioned Level 3 convertible bonds assumes redemption at maturity, and the risk discount rate is assessed using the borrowing interest rate of companies within the same industry chain.

b. Information on Fair Value - Financial Instruments Measured at Fair Value on a Recurring Basis

1) Fair value position

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial Assets at Fair Value Through Profit or Loss
Limited Partnership	$ -	$ -	$ 30,977	$ 30,977
Derivative instrument
- Convertible bonds redemption and put option
	-	-	900	900
	$ -	$ -	$ 31,877	$ 31,877
Financial Assets at Fair Value Through Other Comprehensive Income
Equity instrument investment
- Domestic unlisted stocks	$ -	$ -	$ -	$ -

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial Assets at Fair Value Through Profit or Loss
- Limited Partnership	$ -	$ -	$ 21,554	$ 21,554
Financial Assets at Fair Value Through Other Comprehensive Income
Equity instrument investment
- Domestic unlisted stocks	$ -	$ -	$ -	$ -
Financial liabilities at fair value through profit or loss
Derivative instrument
- Convertible bonds redemption and put option	$ -	$ -	$ 700	$ 700

There were no transfers between Level 1 and Level 2 fair value measurements in 2025 Year and 2024 Year.

2) Adjustment of Financial Instruments Measured at Level 3 Fair Value

2025

Financial assets	Financial Assets at Fair Value Through Profit or Loss
	Equity instrument	Derivative instrument
Balance at the beginning of the year.	$ 21,554	$ -
Purchase	7,500	-
Recognized in profit or loss (Other gains and losses)	1,923	900
Balance at the end of the year.	$ 30,977	$ 900
Changes in unrealized profits or losses for the current year related to the assets held at year-end and recognized in profit or loss.	$ 1,923	$ 900
Financial liabilities at fair value through profit or loss		Derivative instrument
Balance at the beginning of the year.		$ 700
Recognized in profit or loss (Other gains and losses)		(700)
Balance at the end of the year.		$ -
Changes in unrealized profits or losses for the current year related to the liabilities held at year-end and recognized in profit or loss.		$ 700

2024

Financial assets	Financial Assets at Fair Value Through Profit or Loss Value measurement
Balance at the beginning of the year.	$ -
Purchase	21,400
Recognized in profit or loss (Other gains and losses)	154
Balance at the end of the year.	$ 21,554
Changes in unrealized profits or losses for the current year related to the assets held at year-end and recognized in profit or loss.	$ 154

61 -

Financial liabilities at fair value through profit or loss	Derivative instrument
Balance at the beginning of the year.	$ -
Add leasing	2,633
Recognized in profit or loss (Other gains and losses)	(1,933)
Balance at the end of the year.	$ 700
Changes in unrealized profits or losses for the current year related to the liabilities held at year-end and recognized in profit or loss.	$ 1,933

3) Valuation techniques and inputs for Level 3 fair value measurement

Categories of Financial instruments	Valuation techniques and inputs
Limited Partnership	The asset approach is used to evaluate the fair value, with reference to the net value of the recent financial statements released by the investment target and its operating conditions for estimation.
- Domestic unlisted stocks	The market approach is used, with reference to the financial statements and operating conditions of the company and similar companies for estimation.
- Convertible bonds redemption and put option	Binary tree convertible bond valuation model: Simultaneously considers factors such as the bond's lifetime, the stock price of the convertible bond's underlying stock and its volatility, conversion price, risk-free interest rate, risk discount rate, and liquidity risk of the convertible bond.

c. Categories of Financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial Assets at Fair Value Through Profit or Loss
mandatorily classified as Financial Assets at Fair Value Through Profit or Loss	$ 31,877	$ 21,554
Financial Assets Measured at Amortized Cost (Note 1)	1,567,439	1,894,376
Financial liabilities
Financial Assets at Fair Value Through Profit or Loss
Held for trading	-	700
Measured at Amortized Cost (Note 2)	2,556,731	2,175,190

Note 1: The balance includes Financial Assets Measured at Amortized Cost, such as cash and cash equivalents, Notes Receivable, Accounts Receivable Other Receivables, and refundable deposits.

Note 2: The balance includes short-term borrowings, Notes Payable, Accounts Payable, Other Payables (excluding Accrued Salaries and Bonuses, Accrued Insurance Fees, Taxes payable on operating income, Accrued Pension Liabilities, Accrual for Employees' Remunerations, Accrual for Directors' Remuneration, and Taxes Payable), Corporate Bonds Payable, and long-term borrowings, which are Financial Liabilities Measured at Amortized Cost.

d. Financial risk management objectives and policies

The main financial instruments of the merged company include cash and cash equivalents, limited partnership, equity instrument investment, receivables, bank borrowings, payables, lease liabilities, and corporate bonds payable. Financial risks related to operations among the above financial instruments include market risk (comprising exchange rate risk, interest rate risk, and other price risks), credit risk, and liquidity risk.

1) Market risk

The main financial risks undertaken by the consolidated company's operational activities are foreign currency exchange rate change risk (see below (a)), interest rate change risk (see below (b)), and other price risk (see below (c)).

a) Exchange rate risk.

The consolidated company engages in transactions denominated in foreign currency, thus exposing the company to exchange rate change risk.

On the balance sheet date, the carrying amounts of monetary assets and monetary liabilities denominated in non-functional currencies for the consolidated company are referenced in Note 32.

Sensitivity analysis

The consolidated company is primarily affected by fluctuations in the US dollar and Japanese yen exchange rates.

The table below provides a detailed sensitivity analysis when the exchange rate of each consolidated entity's functional currency increases or decreases by 1% against each relevant foreign currency. A 1% rate is the sensitivity ratio used by the consolidated company when reporting exchange rate risk to the main management, representing the management's assessment of the reasonably possible range of changes in foreign currency exchange rates. The sensitivity analysis only includes outstanding foreign currency monetary items, and their year-end translation is adjusted for a 1% change in exchange rates. The positive numbers in the table indicate the amount by which pre-tax net profit or equity would increase if the New Taiwan Dollar depreciates by 1% against each relevant currency; conversely, if the New Taiwan Dollar appreciates by 1% against each relevant foreign currency, the impact on pre-tax net profit or equity would be the same amount, but as a negative number.

	The effect of the US dollar
	2025	2024
Profit or loss	$ (477)	$ 790
	The effect of the Japanese yen
	2025	2024
Profit or loss	$ 445	$ 20

Mainly derived from US dollar-denominated cash and cash equivalents, receivables, and payables outstanding on the consolidated company's balance sheet date; as well as Japanese yen-denominated cash and cash equivalents and receivables.

The sensitivity of the consolidated company to the US dollar exchange rate decreased this year, mainly due to an increase in US dollar-denominated payables; the sensitivity to the Japanese yen exchange rate increased, primarily due to an increase in Japanese yen-denominated bank deposits.

63 -

b) Interest rate risk

The interest rate risk arises from the consolidated company's bank deposits, bank borrowings, corporate bonds payable, and lease liabilities, which include both fixed and floating interest rates.

The carrying amounts of Financial Assets and Financial Liabilities exposed to interest rate risk for the consolidated company as of the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Interest rate risk with fair value
- Financial liabilities	$ 667,801	$ 695,924
Interest rate risk with cash flow
- Financial assets	$ 803,294	$ 1,180,171
- Financial liabilities	$ 1,823,121	$ 1,567,798

Sensitivity analysis

The following sensitivity analysis is determined based on the interest rate risk of non-derivative instruments as of the balance sheet date. For floating interest rate liabilities, the analysis assumes that the outstanding liability amount as of the balance sheet date remains outstanding throughout the reporting period. The rate of change used internally by the consolidated company to report interest rates to the main management is an increase or decrease of 1%, which also represents the management's assessment of the reasonably possible range of changes in interest rates.

If the interest rate increases/decreases by 1%, with all other variables remaining constant, the consolidated company's pre-tax net profit for the years 2025 and 2024 would decrease/increase by NT$10,198 thousand and NT$3,876 thousand, respectively, primarily due to the interest rate risk exposure from bank deposits and bank borrowings with floating interest rates.

The sensitivity of the consolidated company to interest rates increased this year, mainly due to an increase in bank borrowings this year.

c) Other price risk

The consolidated company incurs equity price risk due to holding securities investments (- Domestic unlisted stocks) and Limited Partnership. This equity investment is not held for trading but is instead a strategic investment. The consolidated company is not actively trading the investment.

Sensitivity analysis

The following sensitivity analysis is based on the equity securities and Limited Partnership price risk as of the balance sheet date.

The fair value of the equity securities investments (- Domestic unlisted stocks) held by the consolidated company as of December 31, 2025 and 2024 was both NT$0 thousand. The consolidated company evaluated the reasonably possible changes in relevant risk variables on that day and determined that they would not affect the consolidated pre-tax other comprehensive income for the years 2025 and 2024.

If the price of the Limited Partnership increases/decreases by 1%, the pre-tax profit or loss for the years 2025 and 2024 will increase/decrease by NT$310 thousand and NT$216 thousand, respectively, due to changes in the fair value of Financial Assets at Fair Value Through Profit or Loss.

2) Credit risk

Credit risk refers to the risk of financial loss to the consolidated company resulting from a counterparty's default on contractual obligations. As of the balance sheet date, the maximum exposure to credit risk that could result in financial loss to the consolidated company from a counterparty's failure to fulfill its obligations mainly arises from the carrying amount of Financial Assets recognized on the Consolidated Balance Sheet.

The policy adopted by the consolidated company is to conduct transactions only with parties that have good credit and, when necessary, to obtain sufficient collateral to mitigate the risk of financial loss arising from defaults. The consolidated company establishes a comprehensive customer credit data file through customer credit management measures and evaluates major customers using publicly available financial information and historical transaction records with each other. The consolidated company continuously monitors credit exposure and the credit ratings of counterparties, and controls credit exposure through the review and approval of counterparty credit limits by authorized personnel.

65 -

Twenty). In addition, the consolidated company individually reviews the recoverable amount of Accounts Receivable on the balance sheet date to ensure that appropriate impairment losses have been recognized for uncollectible Accounts Receivable. Based on this, the management of the merged company believes that the credit risk of the merged company has significantly decreased.

The Credit risk of the consolidated company is mainly concentrated in its major customers, Company A and Company B (the annual Revenue from other customers does not exceed 10% of the consolidated company's Total Revenue). As of December 31, 2025 and 2024, the percentage of the Total Accounts Receivable (Notes Four, Nine, and Twenty) from the aforementioned customers was 31% and 39%, respectively.

3) Liquidity risk

The consolidated company manages and maintains sufficient levels of cash and cash equivalents to support operations and mitigate the impact of Cash Flow fluctuations. The management of the consolidated company oversees the usage of bank financing limits and ensures compliance with the terms of borrowing contracts.

Bank borrowings are an important source of liquidity for the consolidated company. As of December 31, 2025 and 2024, for unused financing limits of the consolidated company, refer to the following Description of Financing Limit items (b).

a) Liquidity and Interest Rate Risk Schedule for Non-derivative Financial Liabilities

The non-derivative financial liabilities remaining contractual maturity analysis is based on the earliest date on which the consolidated company could be required to repay, and is prepared according to the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, bank borrowings for which the consolidated company could be required to make immediate repayment are categorized in the earliest period in the table below, without considering the probability of the bank exercising such rights immediately; Other non-derivative financial liabilities maturity analysis is prepared according to the agreed repayment dates.

For interest cash flows paid at a floating interest rate, the undiscounted interest amount is derived based on the yield curve as of the balance sheet date.

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December 31, 2025

	Require immediate payment or within 1 month	1 to 3 months	3 months to 1 year	1 to 5 years	5 years or more
None interest-bearing liabilities	$ 77,597	$ 176,154	$ -	$ -	$ -
Lease liabilities	5,765	9,176	39,455	105,502	38,421
Floating interest rate instruments	223,773	35,658	263,000	1,377,818	2,715
Fixed interest rate instruments	-	-	-	499,900	-
	$ 307,135	$ 220,988	$ 302,455	$ 1,983,220	$ 41,136

December 31, 2024

	Require immediate payment or within 1 month	1 to 3 months	3 months to 1 year	1 to 5 years	5 years or more
None interest-bearing liabilities	$ 34,567	$ 104,927	$ -	$ -	$ -
Lease liabilities	7,019	11,257	49,251	122,743	50,438
Floating interest rate instruments	11,913	23,590	136,813	1,306,000	185,234
Fixed interest rate instruments	-	-	-	499,900	-
	$ 53,499	$ 139,774	$ 186,064	$ 1,928,643	$ 235,672

b) Financing limit

	December 31, 2025	December 31, 2024
Secured bank borrowing limit
- Used Amount	$ 151,424	$ 303,683
- Unused Amount	-	-
	$ 151,424	$ 303,683
Unsecured bank borrowing limit
- Used Amount	$ 1,675,133	$ 1,273,000
- Unused Amount	1,624,867	2,047,000
	$ 3,300,000	$ 3,320,000

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29. Related party transaction

Transactions, account balances, income, and expenses between The Company and its subsidiaries (which are related parties of The Company) have been fully eliminated during consolidation and, therefore, are not disclosed in this note. Except as disclosed in other notes, transactions between the consolidated company and other related parties are as follows.

The remuneration of the primary management

	2025	2024
Short-term employee benefits	$ 44,840	$ 51,162
Recognition of Compensation Costs for Employee Stock Options	-	8,455
Other long-term employee benefits	2,889	3,122
Post-employment benefits	528	501
	$ 48,257	$ 63,240

The remuneration of Directors and other primary management is determined by the Remuneration Committee based on individual performance and market trends.

30. Pledged Assets

The following assets have been provided as collateral for financing borrowings:

	December 31, 2025	December 31, 2024
Machinery and Equipment - Net Amount	$ 263,149	$ 496,871

31. Significant Contingent Liabilities and Unrecognized Contractual Commitments

The Significant Commitments and Contingencies of the consolidated company as of the balance sheet date are as follows:

a. Significant commitments

1) The unused letters of credit issued are as follows:

	Unit: Thousand Foreign currency
	December 31, 2025	December 31, 2024
Acquisition of Property, Plant and Equipment
US dollar	$ 43	$ 43

2) The unrecognized contractual commitments are as follows:

Unit: NT$ Thousand, Foreign currency Thousand

	December 31, 2025	December 31, 2024
Acquisition of Property, Plant and Equipment
NT$	$ 315,820	$ 373,169
Japanese yen	$ 347,227	$ -
US dollar	$ 1,190	$ 461
Renminbi	$ -	$ 40

b. Contingencies:

Material legal matters

In January 2023, MA-tek filed a civil lawsuit against the Company for infringement of trade secrets, seeking damages of NT$1,200 thousand. The case was ruled against MA-tek by the Intellectual Property and Commercial Court on March 12, 2024, under the ruling number 2023 Min-Ying-Su-Zi No. 1. However, MA-tek appealed the ruling on April 2, 2024, and applied for an expansion of the claim to NT$3,000 thousand on July 2, 2024. Based on the current information, legal experts within the Company observe that there is a higher likelihood of the Company prevailing in the aforementioned two cases. However, the final outcome depends on future litigation procedures, and it is not expected to materially affect the Group's operation.

Information on Foreign Currency Assets and Liabilities with Significant Impact

The following information is expressed in aggregate foreign currencies other than the functional currencies of each of the consolidated entities, and the disclosed exchange rates are those for converting these foreign currencies to the functional currencies. Information on Foreign Currency Assets and Liabilities with Significant Impact is as follows:

December 31, 2025

	Foreign currency (Thousand)	Exchange rate	Carrying amount (Thousand)
Foreign currency assets
Monetary items
US dollar	$ 4,371	31.430 (USD: NT$)	$ 137,378
US dollar	277	6.9907 (USD: Renminbi)	$ 8,714
Japanese yen	221,682	0.2008 (Japanese yen: NT$)	$ 44,513
Foreign currency liabilities
Monetary items
US dollar	4,946	31.430 (USD: NT$)	$ 155,442
US dollar	1,219	6.9907 (USD: Renminbi)	$ 38,304

December 31, 2024

	Foreign currency (Thousand)	Exchange rate	Carrying amount (Thousand)
Foreign currency assets
Monetary items
US dollar	$ 3,188	32.785 (USD: NT$)	$ 104,535
US dollar	1,337	7.3213 (USD: Renminbi)	$ 43,822
Japanese yen	9,722	0.2099 (Japanese yen: NT$)	$ 2,041
Foreign currency liabilities
Monetary items
US dollar	1,973	32.785 (USD: NT$)	$ 64,690
US dollar	142	7.3213 (USD: Renminbi)	$ 4,658

The consolidated foreign currency exchange losses (realized and unrealized) for the Company in 2025 and 2024 were NT$(15,458) thousand and NT$(7,296) thousand, respectively. Due to the diverse types of foreign currency transactions and functional currencies within the group entities, it is not possible to disclose the exchange profit or loss for each significantly affected foreign currency.

33. Disclosure of notes

a. Information related to material transaction matters:

1) Lending funds to others. (None)
2) Guaranteeing for others. (None)
3) Major securities held at the end of the period (excluding investments in subsidiaries, associates, and joint ventures). (Exhibit 1)
4) The amount of purchases or sales with related parties reaches NT$100 million or more than 20% of the paid-in capital. (None)
5) Accounts receivable from related parties reaching NT$100 million or more than 20% of the paid-in capital. (None)
6) Others: The business relationship and major transactions, along with their amounts, between parent and subsidiary companies, as well as among the subsidiaries. (Exhibit 2)

b. Information related to invested companies (Exhibit 3)

c. Mainland investment information

1) Name of investee in Mainland China, main business items, paid-in capital, investment method, fund remittance situation, shareholding, investment profit or loss, carrying amount of investment at the end of the period, repatriated investment profit or loss, and investment limit for the Mainland China region. (Exhibit 4)

2) The following significant transactions occurred with the investee company in Mainland China, directly or indirectly through a third region, including their prices, payment criteria, and unrealized profit or loss: (Table 5)

a) The purchase amount and percentage, along with the ending balance and percentage of related payables.

b) The sales amount and percentage, along with the ending balance and percentage of related receivables.

c) The transaction amount of property and the resulting amount of profit or loss.

d) The ending balance of notes endorsed for guarantee or collateral provided and their purpose.

e) The highest balance of financing, ending balance, interest rate range, and total interest amount for the current period.

f) Other transactions that have a significant impact on the current period's profit or loss or Financial Status, such as the provision or receipt of services, etc.

d. According to the regulations of the "Guidelines for Preparation of Business Reports, Consolidated Financial Statements, and Relationship Reports of Affiliated Enterprises," the following matters should be disclosed for the overall affiliated enterprises:

1) Name of the subsidiary, the relationship with the controlling company, nature of business activities, and the percentage of shares or contribution amount held by the controlling company. (Notes 10, Exhibit 3, and Exhibit 4)

2) Changes in subsidiaries included in the consolidated financial statements of affiliates for the current period. (Note 10)

3) Names of subsidiaries not included in the consolidated financial statements of affiliates for the current period, the percentage of shares or contribution amount held, and the reasons for non-consolidation. (None)

4) When the accounting year-end date of a subsidiary differs from that of the controlling company, the method of adjustment and handling. (None)

71 -

5) The circumstances where a subsidiary's accounting policies differ from those of the controlling company; if there is any non-compliance with the local Generally Accepted Accounting Principles (GAAP), the method and description of adjustments. (None)

6) Specific risks of operations for foreign subsidiaries, such as changes in exchange rates, etc. (Note 10)

7) Circumstances in which the distribution of earnings by each affiliate is restricted by laws or contracts. (Note)

8) Method and Term of Amortization for Merged Borrowings (Loans). (None)

9) Other important matters or descriptions that may assist in the fair presentation of the consolidated financial statements of affiliates. (None)

Note: The Articles of Incorporation of the subsidiary of the consolidated company located in Mainland China stipulate that a reserve fund and an employee bonus and welfare fund are to be extracted from the profit after paying Income tax. The specific proportions are determined according to the Company Law and other relevant laws in Mainland China. Profit cannot be distributed before the losses from the previous accounting year are covered. The undistributed profit from the previous accounting year can be incorporated into the current accounting year's profit distribution.

e. According to the regulations of the "Guidelines for Preparation of Business Reports, Consolidated Financial Statements, and Relationship Reports of Affiliated Enterprises," the following matters should be disclosed separately for the controlling company and subsidiaries:

1) Transactions between the controlling company and subsidiaries, and between subsidiaries that have been eliminated. (Exhibit 2)

2) Information related to financing and endorsements/guarantees. (None)

3) Information related to derivatives transactions. (None)

4) Material contingencies. (Note 31)

5) Material subsequent events. (None)

6) The name, quantity, cost, market price (if no market price is available, disclose the net value), holding or contribution percentage, pledge status, and Highest holding or contribution during the period. (Exhibit One, Exhibit Three, and Exhibit Four)

7) Other important matters or descriptions that may assist in the fair presentation of the consolidated financial statements of affiliates. (None)

72 -

73 -

34. Department Information

a. Department Financial Information

The chief operating decision maker views the Testing and analysis services units in each region as individual operating segments. However, when preparing financial reports, the consolidated company considers the following factors and aggregates these operating segments as a single operating segment, thus no Department Information is applicable.

1) The nature and production process of the products are similar;
2) The product pricing strategy and sales model are similar.

b. Revenue from main products

The revenue from the main products of the consolidated company's continuing operations is as follows:

	2025	2024
Testing and analysis services	$ 2,178,647	$ 1,966,669

c. Regional Information

The consolidated company primarily operates in two regions - Taiwan and Mainland China.

The revenue from external customers of the consolidated company's continuing operations is classified by operating location, and information on Non-current Assets is classified by the Assets' location as follows:

	Revenue from external customers		Non-current Assets
	2025	2024	December 31, 2025	December 31, 2024
Taiwan	$ 1,637,730	$ 1,593,899	$ 3,027,683	$ 3,126,688
Mainland China	529,712	371,248	464,893	390,386
Others	11,205	1,522	855,737	289,062
	$ 2,178,647	$ 1,966,669	$ 4,348,313	$ 3,806,136

Non-current Assets do not include those classified as Financial Assets at Fair Value Through Profit or Loss - Non-Current, Financial Assets at Fair Value Through Other Comprehensive Income - Non-Current, Deferred Income Tax Assets, and Refundable Deposits.

d. Main customer information

The Revenue from a single customer that accounts for more than 10% of the consolidated company's Total Revenue is as follows:

	2025	2024
Customer A	$ 434,224	$ 437,532
Customer B	376,459	434,844
	$ 810,683	$ 872,376

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MSSCORPS CO., Ltd. and its subsidiaries
Major securities held at the end of the period.
December 31, 2025

Table One Unit: NT$ Thousand, thousand shares/thousand units

Companies Held	Type and Name of Securities	Relationship with the Issuer of the securities	Account Title	At the end of the period
				Number of Shares	Carrying amount	Shareholding	Fair value
The Company	Limited Partnership
Innolux Development II Venture Capital Limited Partnership	—	Financial Assets at Fair Value Through Profit or Loss - Non-Current	-	$ 30,977	-	$ 30,977	—

Note: The Highest number of shares of marketable securities held by MSSCORPS CO., Ltd. and its subsidiaries at the end of the period is the same as that at the end of the period, and there is None pledged.

75 -

MSSCORPS CO., Ltd. and its subsidiaries
Others: The business relationship and major transactions, along with their amounts, between parent and subsidiary companies, as well as among the subsidiaries.
2025 Year
Table Two Unit: NT$ Thousand

Number	Name of trader	Counterparty for transactions	Relationship with the transactor (Note 1)	Transaction status
				Account Title	Amount (Notes 2 and 4)	Transaction criteria	Percentage to the consolidated total revenue or total assets (%)(Note 3)
0	MSSCORPS CO., Ltd.	Nanjing MSS Electronic Technology Limited	(1)	Service Revenue	$ 15,053	Monthly settlement with 90-day payment terms	1
			(1)	Accounts Receivable - Related Party	2,080	—	-
			(1)	Sale of assets	237,971	Monthly settlement with 60-day payment terms after acceptance	4
			(1)	Other Receivables - Related Party	33,316	Sale of assets	1
		MSS Japan Company	(1)	Sale of assets	31,759	Monthly settlement with 60-day payment terms after acceptance	1
			(1)	Other Receivables - Related Party	14,799	Sale of assets	-
			(1)	Capital increase in cash	134,680	—	2
		MSS USA CORP.	(1)	Capital increase in cash	152,480	—	2
1	TRISTATE INTERNATIONAL CO., LTD.	MSSCORPS CO., Ltd.	(2)	Capital reduction in cash	14,693	—	-
2	GOOD ACTION INT'L CORP.	TRISTATE INTERNATIONAL CO., LTD.	(3)	Capital reduction in cash	14,693	—	-

The business relationship between parent and subsidiary companies:
MSSCORPS CO., Ltd., Nanjing MSS Electronic Technology Limited, MSS Japan Company, and MSS USA CORP. primarily engage in electronic material testing and analysis services; TRISTATE INTERNATIONAL CO., LTD. and GOOD ACTION INT'L CORP. are holding companies.

Note 1: There are the following three types of related persons with the transactor:
a. Parent company to subsidiary
b. Subsidiary to Parent Company
c. Subsidiary to subsidiary

Note 2: This appendix only discloses one-way transaction information, which has already been consolidated and eliminated during the preparation of these consolidated financial statements.

Note 3: The calculation of the transaction Amount as a Percentage to the consolidated total revenue or total Assets (%)(Note 3) is as follows: for Assets and liabilities items, it is calculated based on the At the end of the period balance as a percentage of the consolidated total Assets; for Profit or loss Account Title items, it is calculated based on the accumulated Amount during the period as a percentage of the consolidated total revenue.

Note 4: The figures in this table are presented in New Taiwan Dollar (NT$). For those involving foreign currency, they are translated into NT$ at the exchange rate on the balance sheet date; however, the related amounts under profit or loss are translated into NT$ at the average exchange rate for the period.

76 -

MSSCORPS CO., Ltd. and its subsidiaries

Name of investee, location, and other related information

2025 Year

Table Three Unit: NT$ Thousand, Foreign currency Thousand, thousand shares

Name of investee company	Name of investee	Location	Main business items	Original investment amount (Note 2)		Held at the end of the period			The profit or loss of the investee for the current period	Recognized investment profit and loss for the current period.	Remarks
				At the end of the period this year	At the end of last year.	Number of Shares	Percentage %	Carrying amount
The Company	TRISTATE INTERNATIONAL CO., LTD.	Mauritius	Investment Holding	$ 487,203 (USD 15,969)	$ 501,896 (USD 16,415)	15,969	100	$ 883,686	$ 208,918	$ 208,918	Note 1, 3, 4 and 6
	MSS Japan Company	Japan	Electronic material testing and analysis services	359,430 (JPY1,700,000)	224,750 (JPY1,050,000)	170	100	311,936	(17,126)	(17,126)	Note 1 and 3
	MSS USA CORP.	United States	Electronic material testing and analysis services	796,304 (USD 25,000)	643,824 (USD 20,000)	25,000	100	728,413	(56,001)	(56,001)	Note 1 and 3
TRISTATE INTERNATIONAL CO., LTD.	GOOD ACTION INT'L CORP.	Mauritius	Investment Holding	486,718 (USD 15,954)	501,411 (USD 16,400)	15,954	100	1,174,009	208,918	208,918	Note 1, 3 and 6

Note 1: The recognition of related investment profits and losses is based on the financial statements of the investee for the same period as audited by the accountant.
Note 2: It is calculated and aggregated based on the exchange rate at the time of each actual remittance.
Note 3: which has already been consolidated and eliminated during the preparation of these consolidated financial statements.
Note 4: The carrying amount held at the end of the period includes unrealized profits from intergroup transactions.
Note 5: Mainland investment information is detailed in Table Four.
Note 6: GOOD ACTION INT'L CORP. passed a resolution by the Board of Directors on March 6, 2025, to reduce capital, resulting in TRISTATE INTERNATIONAL CO., LTD.'s capital investment reduced from NT$501,411 thousand (USD 16,400 thousand) to NT$486,718 thousand (USD 15,954 thousand); TRISTATE INTERNATIONAL CO., LTD. passed a resolution by the Board of Directors on March 6, 2025, to reduce capital, resulting in The Company's capital investment reduced from NT$501,896 thousand (USD 16,415 thousand) to NT$487,203 thousand (USD 15,969 thousand).
Note 7: Except as stated in Note 6 above, the Highest contribution amount for the period is the same as that at the end of the period, and there is None pledged.

MSSCORPS CO., Ltd. and its subsidiaries
Mainland investment information
2025 Year

Table Four Unit: NTS Thousand, Foreign currency Thousand

Name of investee in Mainland China, main business items, paid-in capital, investment method, fund remittance situation, shareholding, investment profit or loss, carrying amount of investment, and repatriated investment profit or loss situation.

Name of investee in Mainland China	Main business items	Paid-in capital	Investment Method (Note 1)	The cumulative investment amount remitted from Taiwan at the beginning of the period	The amount of investment remitted or repatriated during the period		The cumulative investment amount remitted from Taiwan at the end of the period this year	The profit or loss of the investee for the current period	The direct or indirect shareholding percentage of the Company's investments.	Recognized investment profit and loss for the current period(b.2)	Book value of investment at the end of the period (b.2)	Investment income repatriated to Taiwan as of the end of the period.
					Remittance	Repatriated
Nanjing MSS Electronic Technology Limited	Electronic material testing and analysis services	RMB 105,416 (USD 15,350)	b	$ 467,372	$ -	$ -	$ 467,372	$ 209,364	100	$ 209,364	$ 1,173,990	$ -

Investment limit for the Mainland China region:

The cumulative amount of investment remitted from Taiwan to the Mainland China region at the end of the period this year.	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs	According to the regulations of the Investment Commission of the Ministry of Economic Affairs, the investment limit for the Mainland China region.
$ 467,372
(Note 3)	$ 501,411
(Note 3 and 5)	$ 1,824,388

Note 1: The investment method is divided into the following two types, and you can simply indicate the category:
a. Direct investment in the Mainland China region.
b. Reinvesting in Mainland China through a third-region investment company (GOOD ACTION INT'L CORP.).

Note 2: In the column of recognized investment profit and loss for the current period
a. If it is still in preparation and there is no investment profit or loss, it should be noted.
b. The basis for recognizing investment profit and loss is divided into the following three types and should be noted.
1) The financial statements audited and attested by an international accounting firm with a cooperative relationship with an R.O.C. accounting firm.
2) The financial statements audited and attested by the attesting CPA of the parent company in Taiwan.
3) Others.

Note 3: It is calculated and aggregated based on the exchange rate at the time of each actual remittance.

Note 4: which has already been consolidated and eliminated during the preparation of these consolidated financial statements.

Note 5: MSS (Shanghai) Electronic Technology Limited completed its liquidation on November 4, 2024, and the investment amount of NT$34,039 thousand, approved by the Investment Commission of the Ministry of Economic Affairs, is still in the process of being deregistered.

Note 6: The Highest contribution amount for reinvestment by MSSCORPS CO., Ltd. and its subsidiaries is the same as that at the end of the period, and there is None pledged.

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MSSCORPS CO., Ltd. and its subsidiaries

The following significant transactions occurred with the investee company in Mainland China, directly or indirectly through a third region, including their prices, payment criteria, unrealized profit or loss, and other related information.

2025 Year

The purchase amount and percentage, along with the ending balance and percentage of related payables: None.
The sales amount and percentage, along with the ending balance and percentage of related receivables.

Unit: NT$ Thousand

Name of investee in Mainland China	Type of transaction	Purchases and Sales		Price	Transaction criteria		Accounts Receivable (Notes Four, Nine, and Twenty) / Accounts Payable		Unrealized Profit or Loss Amount	Remarks
		Amount	Percentage		Payment criteria	Comparison with general transactions.	Amount	Percentage
Nanjing MSS Electronic Technology Limited	Service Revenue - Testing and analysis services	$ 15,053	1%	Note 2	Monthly settlement with 90-day payment terms	No significant difference	$ 2,080	0%	$ -	—

Note 1: The aforementioned transaction has already been consolidated and eliminated during the preparation of these consolidated financial statements.
Note 2: The transaction price for the Analysis of Service Revenue from Testing and analysis services with related parties is determined by referencing market conditions and mutual agreement.

The transaction amount of property and the resulting amount of profit or loss.

Unit: NT$ Thousand

Name of investee in Mainland China	Type of transaction	Disposal of property, plant and equipment		Price	Transaction criteria		Other Receivables (Payables)		Unrealized Profit or Loss Amount	Remarks
		Amount	Percentage		Payment criteria	Comparison with general transactions.	Amount	Percentage
Nanjing MSS Electronic Technology Limited	Sale of Equipment	$ 237,971	87%	According to the contract agreement	Monthly settlement with 60-day payment terms after acceptance	No significant difference	$ 33,316	68%	$ 140,388	—

Note: The aforementioned transaction has already been consolidated and eliminated during the preparation of these consolidated financial statements.

The ending balance of notes endorsed for guarantee or collateral provided and their purpose: None.
The highest balance of financing, ending balance, interest rate range, and total interest amount for the current period: None.
79 -

Other transactions that have a significant impact on the current year's profit or loss or Financial Status, such as the provision or receipt of services, etc.:

Unit: NT$ Thousand

Name of investee in Mainland China	Type of transaction	Disposal of property, plant and equipment		Price	Transaction criteria		Other Receivables (Payables)		Unrealized Profit or Loss Amount	Remarks
		Amount	Percentage		Payment criteria	Comparison with general transactions.	Amount	Percentage
Nanjing MSS Electronic Technology Limited	Procurement of Machinery and Equipment	$ 8,894	19%	According to the contract agreement	Monthly settlement with 60-day payment terms after acceptance	No significant difference	$ 14	0%	$ -	--

Note: The aforementioned transaction has already been consolidated and eliminated during the preparation of these consolidated financial statements.

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MSS — Audit Report / Information 2026

52639_rns_2026-05-25_c01c0c28-3008-493e-a161-b8002558c9d9.pdf

Consolidated Financial Statements and Auditor's Annual Review Report

Notice to Readers

Declaration of Consolidated Financial Statements of Affiliates.

Auditor's Annual Review Report

Audit opinion

Basis for Audit Opinion

Key audit matters

Other matters

The responsibility of The management and the governing bodies for the consolidated financial statements

The auditor's responsibilities for the audit of the consolidated financial statements

MSSCORPS CO., Ltd. and its subsidiaries

Consolidated Statement of Changes in Equity

4. Summary of Significant Accounting Policies

9. Notes Receivable, Accounts Receivable, and Other Receivables

a. Notes Receivable

10. Subsidiary

11. Property, Plant And Equipment

12. Leasing agreement

13. Other Intangible Assets

14. Other Assets

15. Borrowings

16. Corporate Bonds Payable

The first domestic unsecured convertible bonds.

17. Other Liabilities

18. Post-employment benefits plan

Defined contribution plan

19. Equity

Common stock

24. Share-based payment agreement

25. Government subsidy

27. Capital risk management

28. Financial instruments

Sensitivity analysis

29. Related party transaction

30. Pledged Assets

31. Significant Contingent Liabilities and Unrecognized Contractual Commitments

33. Disclosure of notes

34. Department Information

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MSS Audit Report / Information 2026