Stock No.:6830

MSSCORPS CO., Ltd.

Individual 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.	Auditor's Annual Review Report	3~7	-
IV.	Individual Balance Sheet	8	-
V.	Individual Statement of Comprehensive Income	9~10	-
VI.	Individual Statement of Changes in Equity	11	-
VII.	Individual Cash Flow Statement	12~13	-
VIII.	Notes to the Individual Financial Statements
	1. Company History	14	1
	2. Date and procedures for approval of the financial report	14	2
	3. Applicability of newly issued and revised standards and interpretations	14~17	3
	4. Summary of Significant Accounting Policies	17~28	4
	5. Major Sources of Uncertainty in Significant Accounting Judgments, Estimates, and Assumptions	29	5
	6. Description of Significant Accounting Items	29~67	6~29
	7. Related party transaction	67~69	29
	8. Pledged Assets	69	30
	9. Significant Contingent Liabilities and Unrecognized Contractual Commitments	70	31
	10. Major disaster losses	-	-
	11. Material subsequent events	-	-
	12. Others	71~72	32
	13. Disclosure of notes
	a. Information related to material transaction matters	72; 74	33
	b. Information related to invested companies	72; 75	33
	c. Mainland investment information	72~73; 76~78	33
IX.	Schedule of Important Accounting Items	79~91	-

Auditor's Annual Review Report

To MSSCORPS CO., Ltd.'s shareholders:

Audit opinion

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

In our opinion, the aforementioned individual financial statements have been prepared, in all material respects, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and adequately present the financial status of MSSCORPS CO., Ltd. as of December 31, 2025 and 2024, as well as the individual financial performance and individual cash flow 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 responsibilities under these standards will be further explained in the section on the responsibility of the auditor for the audit of the individual financial statements. The personnel of the firm to which the CPA belongs, subject to independence regulations, have maintained an impartial independence with MSSCORPS CO., Ltd. in accordance with the Code of Ethics for Professional Accountants and have 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 which, in our professional judgement, were of most significance in the audit of the individual financial statements of MSSCORPS CO., Ltd. for the year 2025. These matters have been addressed in the context of the audit of the individual financial statements as a whole and in forming the audit opinion, and the auditor does not provide a separate opinion on these matters.

Key audit matters are stated as follows for the individual financial statements of MSSCORPS CO., Ltd. for the year 2025:

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

The operating revenue of MSSCORPS CO., Ltd. for the year 2025 was NT$1,656,292 thousand, an increase of approximately 3% compared to the operating revenue for the year 2024. Among the key customers, those with a sales amount whose revenue growth rate was higher than the overall revenue growth rate or who had a longer turnover period (excluding subsidiaries), their total operating revenue accounted for about 20% of the consolidated operating revenue. The impact on the individual financial statements is significant. Therefore, our accountant considers the main risk to be the authenticity of the operating revenue arising from key customers with significant annual sales amounts whose revenue growth rate was higher than the overall revenue growth rate or who had a longer turnover period, and it has been included as a key audit matter for the individual financial statements for the year. For an explanation of the revenue recognition policies, please refer to Notes to the Individual Financial Statements, Four.

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.

The responsibilities of the management and those charged with governance for the individual financial statements.

The management is responsible for preparing individual financial statements that are properly presented in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for maintaining the necessary internal control related to the preparation of the individual financial statements to ensure that they are free from material misstatement, whether due to fraud or error.

In preparing the individual financial statements, the management's responsibilities also include assessing MSSCORPS CO., Ltd.'s ability to continue as a going concern, the disclosure of related matters, and the adoption of the going concern accounting basis, unless the management intends to liquidate MSSCORPS CO., Ltd. or cease operations, or has no realistic alternative but to do so.

The governance unit of MSSCORPS CO., Ltd. (including the Audit Committee) is responsible for overseeing the financial reporting process.

The responsibilities under these standards will be further explained in the section on the responsibility of the auditor for the audit of the individual financial statements.

The purpose of the auditor's examination of the individual financial statements is to obtain reasonable assurance about whether the individual financial statements as a whole are free from material misstatements, 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 cannot guarantee that all material misstatements within the individual financial statements will be detected. Misstatements may result from fraud or error. If individual amounts or aggregates of misstatements could reasonably be expected to influence the economic decisions of users of the individual financial statements, they are considered to be 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 individual 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 Internal control of MSSCORPS CO., Ltd.
Evaluate the appropriateness of the accounting policies used by The management and the reasonableness of their accounting estimates and related disclosures.
5 -

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 MSSCORPS CO., Ltd.'s ability to continue as a going concern. If the auditor believes that there is significant uncertainty regarding such events or conditions, they must draw the attention of the users of the individual financial statements to the related disclosures in the audit report, or modify the audit opinion if such disclosures are deemed 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 MSSCORPS CO., Ltd. to cease to have the ability to continue as a going concern.
Evaluate the overall presentation, structure, and content of the individual financial statements (including the related notes), and whether the individual financial statements appropriately reflect the related transactions and events.
Obtain sufficient and appropriate audit evidence on the financial information of the components within MSSCORPS CO., Ltd. to express an opinion on the individual financial statements. The accountant is responsible for directing, supervising, and executing the audit engagement, and for forming the Audit Opinion for MSSCORPS CO., Ltd.

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 governance unit, our accountant determined the key audit matters in the audit of the individual financial statements of MSSCORPS CO., Ltd. 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.
Individual Balance Sheet
December 31, 2025 and 2024
Unit: NTS Thousand

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Assets
1100	Cash and Cash Equivalents (Notes 4 and 6)	$ 454,268	7	$ 328,345	6
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)	513,051	8	525,000	9
1180	Accounts Receivable - Relationship with the endorser/guarantor (Note 4, 20, and 29)	5,571	-	6,514	-
1200	Other Receivables (Notes 4 and 9)	679	-	-	-
1210	Other Receivables - Relationship with the endorser/guarantor (Note 4, 26, and 29)	48,509	1	-	-
1220	Current income tax assets (Note 4)	26,975	1	24,934	-
1410	Prepayments (Note 14)	88,973	2	94,084	2
11XX	Total Current Assets	1,140,272	19	981,850	17
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)	-	-	-	-
1550	Investments Accounted for Using the Equity Method (Note 4 and 10)	1,924,035	31	1,656,857	28
1600	Property, Plant And Equipment (Note 4, 11, 29, and 30)	2,524,144	41	2,725,770	47
1755	Right-of-use assets (Notes 4 and 12)	159,883	3	195,985	3
1780	Other Intangible Assets (Notes 4 and 13)	3,731	-	8,420	-
1840	Deferred Income Tax Assets (Notes 4 and 22)	80,336	1	49,329	1
1900	Other Non-current Assets (Notes 4 and 14)	268,181	4	223,681	4
15XX	Total Non-current Assets	4,991,287	81	4,881,596	83
1XXX	Total Assets	$ 6,131,559	100	$ 5,863,446	100
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 (Note 4, 7, 16, and 26)	-	-	700	-
2130	Contract Liabilities - Current (Notes 4 and 20)	10,819	-	12,756	-
2150	Notes Payable	20	-	-	-
2170	Accounts Payable	42,760	1	26,902	-
2200	Other Payables (Notes 17 and 26)	348,182	6	265,145	5
2230	Current income tax liabilities (Note 4)	-	-	5,050	-
2280	Lease Liabilities - Current (Notes 4 and 12)	38,477	-	50,711	1
2313	Deferred Revenue - Current (Notes4, 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)	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)	10,551	-	10,235	-
21XX	Total Current Liabilities	1,513,414	24	576,186	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
2580	Lease Liabilities - Non-current (Notes 4 and 12)	126,532	2	149,961	2
2570	Deferred Income Tax Liabilities (Notes 4 and T22)	116,155	2	92,540	2
2630	Deferred Revenue - Non-current (Notes 4, 17, and 25)	6,154	-	8,919	-
25XX	Total Non-current Liabilities	1,577,499	26	2,138,848	36
2XXX	Total Liabilities	3,090,913	50	2,715,034	46
Equity (Note 4 and 19)
Share Capital
3110	Common stock	517,819	9	517,812	9
3140	Share Capital Received in Advance	-	-	7	-
3100	Total Share Capital	517,819	9	517,819	9
3200	Capital Surplus	2,033,709	33	2,033,709	35
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	50	3,148,412	54
Total Liabilities and Equity		$ 6,131,559	100	$ 5,863,446	100

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

MSSCORPS CO., Ltd.
Individual 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 (Note 4, 20, and 29)	$ 1,656,292	100	$ 1,614,016	100
5600	Operating costs.
	Service Costs (Note 21, 24, and 29)	(1,493,367)	(90)	(1,347,942)	(83)
5900	Gross profit before unrealized gross profit on sales to subsidiaries	162,925	10	266,074	17
	Operating Expenses (Notes 9, 21, and 24)
6100	Selling expenses	(46,608)	(3)	(41,897)	(3)
6200	Administrative expenses	(213,202)	(13)	(198,705)	(12)
6300	Research and development expenses	(62,891)	(4)	(60,525)	(4)
6450	Expected credit loss	-	-	-	-
6000	Total Operating Expenses	(322,701)	(20)	(301,127)	(19)
6900	Net operating loss	(159,776)	(10)	(35,053)	(2)
	Non-operating income and expenses (Note 4, 16, 21, 25, and 29)
7100	Interest income	2,945	-	4,272	-
7010	Other income	6,654	1	7,315	1
7020	Other gains and losses	31,956	2	17,881	1

(Continued)

Code		2025		2024
		Amount	%	Amount	%
7050	Finance cost	($ 48,898)	(3)	($ 37,494)	(2)
7070	Share of profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method.	135,791	8	136,205	8
7000	Total Non-operating income and expenses	128,448	8	128,179	8
7900	Net profits (or loss) before tax from continuing operations	(31,328)	(2)	93,126	6
7950	Income tax expenses (Notes 4 and 22)	(5,346)	-	(28,163)	(2)
8200	Net profit (loss) for the year	(36,674)	(2)	64,963	4
	Other Comprehensive Income (Notes 4, 19, and 22)
8360	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)	-
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	6
	Earnings (Loss) Per Share (Note 23)
	From continuing operations
9710	Basic	($ 0.71)		$ 1.34
9810	dilution	($ 0.71)		$ 1.34

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

MSSCORPS CO., Ltd.

Individual Statement of Changes in Equity

From January 1 to December 31, 2025 and 2024

Unit: NTS Thousand

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 of 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)
C5	Changes in Other Capital Surplus: The changes in the equity component of issued convertible bonds (Notes 16 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 accompanying notes are an integral part of these individual financial statements.

MSSCORPS CO., Ltd.
Individual Cash Flow Statement
From January 1 to December 31, 2025 and 2024
Unit: NT$ Thousand

Code	Cash flow from operating activities	2025	2024
A10000	Net profit (or loss) before tax for the year	($ 31,328)	$ 93,126
A20010	Expense and Loss Item:
A20100	Depreciation expenses	709,687	631,811
A20200	Amortization expenses	4,689	4,784
A20400	Net gain on financial assets/liabilities at fair value through profit or loss	(3,523)	(2,087)
A20900	Finance cost	48,898	37,494
A21200	Interest income	(2,945)	(4,272)
A21900	Recognition of Compensation Costs for Employee Stock Options	-	17,421
A22400	Share of profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method.	(135,791)	(136,205)
A22500	Gain on disposal of property, plant and equipment	(22,251)	(15,199)
A24100	Foreign exchange net loss (gain)	3,815	(4,947)
A29900	Government subsidy income	(3,954)	(3,967)
A29900	Unrealized gain on the sale of assets	21,012	-
A29900	Realized gain on the sale of assets	(1,244)	(1,244)
A30000	Net Changes in Operating Assets and Liabilities
A31130	Notes Receivable	1,627	(2,544)
A31150	Accounts Receivable (Notes 4, 9, and 20)	11,827	(3,147)
A31160	Accounts Receivable - Related Party	835	(6,496)
A31180	Other Receivables (Notes 4 and 9)	(679)	1,421
A31230	Prepayments (Note 14)	(6,787)	(16,837)
A32125	Contract Liabilities	(1,937)	(16,024)
A32130	Notes Payable	20	-
A32150	Accounts Payable	15,858	(6,353)
A32160	Accounts Payable - Relationship with the endorser/guarantor	-	(55,021)
A32180	Other Payables (Notes 17 and 26)	8,892	(22,572)
A32230	Refund Liabilities	32,731	12,596
A32230	Other Current Liabilities (Note 17)	316	1,048
A33000	Cash generated from operations	649,768	502,786
A33100	Interest received	2,945	4,272

(Continued on the next page)

12 -

(Continued on the next page)

Code		2025	2024
A33300	Interest paid	($ 31,166)	($ 27,683)
A33500	Income tax paid	(15,002)	(44,626)
AAAA	Net cash inflow from operating activities	606,545	434,749
	Cash flow from investing activities
B00100	Acquisition of Financial Assets at Fair Value Through Profit or Loss	(7,500)	(21,400)
B02700	Acquisition of Property, Plant and Equipment	(412,852)	(1,221,648)
B02800	Proceeds from disposal of property, plant and equipment	203,780	114,636
B03700	Increase in security deposits	(1,054)	(9,970)
B03800	Decrease in security deposits	169	53
B04300	Increase in Other Receivables - Relationship with the endorser/guarantor (Note 4 and 9)	(394)	-
B04400	Decrease in Other Receivables - Relationship with the endorser/guarantor	-	12
B04500	Acquisition of Intangible Assets	-	(5,619)
B07100	Increase in prepaid equipment payments	(131,681)	(116,339)
BBBB	Net cash outflow from investing activities	(349,532)	(1,260,275)
	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	(53,130)	(44,284)
C04500	Dividend payment	(51,782)	(210,515)
C04600	Capital increase in cash	-	600,000
C05400	Acquisition of subsidiary equity	(287,160)	(814,464)
C05500	Refund of capital reduction from the subsidiary	14,693	-
C09900	Pay the cost of issuing new shares.	-	(1,000)
C09900	Pay debt issuance costs.	-	(4,381)
CCCC	Net cash inflow (outflow) from financing activities	(127,505)	715,969
DDDD	The effect of changes in exchange rates on cash and cash equivalents.	(3,585)	3,406
EEEE	Net increase (decrease) in cash and cash equivalents	125,923	(106,151)
E00100	Cash and cash equivalents balance at the beginning of the year.	328,345	434,496
E00200	Cash and cash equivalents balance at the end of the year.	$ 454,268	$ 328,345

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

MSSCORPS CO., Ltd.
Notes to the Individual 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.

This individual financial report is presented in the Company's functional currency, the New Taiwan Dollar (NTD).

Date and procedures for approval of the financial report

The individual 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 amendment to IAS 21 "Lack of Exchangeability" will not cause significant changes to the Company's accounting policies.

14 -

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

Up to the approval date of the issuance of this individual financial report, the Company has assessed that the amendments to the aforementioned standards and interpretations will not have a significant impact on the individual financial status and individual 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 Company should evaluate whether it has specific principal operating activities related to investing in certain types of assets and providing financing to customers. Based on this evaluation, it should categorize the income and expense items of the income statement into operating, investing, financing, income tax, and discontinued operations.
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 enhance aggregation and disaggregation rules: The Company must identify the assets, liabilities, equity, income, expenses, and cash flows resulting from individual transactions or other matters, and classify and aggregate them based on common characteristics. This ensures 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 Company labels those Items as "Others" only when a more informative designation cannot be identified.
Increase the disclosure of performance measures defined by the management: When the Company engages in external communication outside of financial statements and communicates the management's viewpoint on certain aspects of the Company's overall financial performance to users of the financial statements, it should disclose information related to the performance measures defined by the management in a single note in the financial statements. This includes a description of the measure, how it is calculated, its reconciliation with subtotals or totals specified by IFRS accounting standards, and the impact of related reconciling items on income tax and Non-Controlling Interest.

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

When preparing the cash flow from operating activities using the indirect method, The Company should use operating profit or loss as the starting point for adjustments.
Interest received and dividends received by The Company should be classified as investing activities, while interest paid and dividends paid should be classified as financing activities. If the Company evaluates that there are specific principal operating activities, it must consider the nature of dividend income, interest income, and interest expenses reported in the income statement. Based on this, it should determine the classification of dividends received, interest received, and interest paid in the cash flow statement.
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However, each of these cash flows can only be classified under one activity in the cash flow statement.

Apart from the aforementioned impacts, up to the approval date of the issuance of this individual financial report, the Company is still continuously assessing the other impacts of the amendments to various standards and interpretations on the individual financial status and individual financial performance, and the related effects will be disclosed when the assessment is completed.

4. Summary of Significant Accounting Policies

a. Follow the declaration

This individual financial report has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of Preparation

Except for financial instruments measured at fair value, this individual financial report is 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.

When preparing the individual financial report, the Company accounts for investments in subsidiaries, associates, or joint ventures using the equity method. To ensure that the profit and loss, other comprehensive income, and equity for the year in this individual financial report are consistent with those attributable to the owners of the Company in the consolidated financial report, several accounting treatment differences between the individual basis and the consolidated basis are adjusted in the items of "Investments accounted for using the equity method," "Share of profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method," "Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method," and related equity items.

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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
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 may allow settlement by transferring the Company's equity instruments at the option of the counterparty, and if the Company classifies such options as equity instruments, then those terms do not affect the classification of the liability as current or non-current.

d. Foreign currency

When the Company prepares the individual financial report, transactions in currencies other than the Company's functional currency (foreign currency) 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.

In preparing the individual financial report, the assets and liabilities of overseas operating entities (subsidiaries located in countries or using currencies different from the Company) are translated into New Taiwan Dollars 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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e. Investment in subsidiaries

The Company accounts for its investment in subsidiaries using the equity method.

A subsidiary is an entity controlled by the Company.

Under the equity method, the original investment is recognized at cost, and the carrying amount after the acquisition date is adjusted for the share of profit or loss and other comprehensive income of subsidiaries attributable to the Company, as well as profit distribution. In addition, the changes in other equity interests of subsidiaries attributable to the Company are recognized based on the shareholding percentage.

When the Company assesses impairment, it considers the cash-generating units as a whole in the individual financial report and compares their recoverable amount with the carrying amount. If the recoverable amount of the asset increases subsequently, the reversal of the impairment loss will be recognized as a gain. However, the carrying amount of the asset after the reversal of the impairment loss must not exceed the carrying amount of the asset, net of amortization, that would have been determined had no impairment loss been recognized.

Unrealized gains and losses from downstream transactions between the Company and its subsidiaries are eliminated in the individual financial report. Gains and losses resulting from upstream transactions are recognized in the individual financial report only to the extent that they are not related to the Company's equity in the subsidiaries.

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.

Depreciation of property, plant, and equipment is provided on a straight-line basis over their useful lives, with each significant part depreciated separately. The Company reviews the estimated useful lives, residual values, and depreciation methods at least at each year-end, and accounts for the effects of any changes in accounting estimates on a prospective basis.

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.

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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 Company reviews the estimated useful lives, residual values, and amortization methods at least at each year-end, and accounts for the effects of any changes in accounting estimates on a prospective basis.

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 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 be impaired. If any indication of impairment exists, then the recoverable amount of the asset is estimated. If the recoverable amount of the individual asset cannot be estimated, the 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.

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 Individual Balance Sheet when the Company becomes a party to the contractual provisions of the instruments.

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

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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 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.

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

The Company's investment in financial assets is classified as financial assets measured at amortized cost if it simultaneously meets the following two criteria:

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 (Note Four, Nine, and Twenty) (including related parties), Other

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Receivables (Note Four and Nine) (including related parties), and guarantee deposits paid) are measured at amortized cost, using the effective interest method, less any impairment losses after initial recognition. 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.

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

Upon initial recognition, the Company can make an irrevocable election to designate equity instrument investments, which are not held for trading and not contingent consideration recognized from business combinations, 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

The Company assesses impairment losses on financial assets measured at amortized cost (including Notes Receivable, Accounts Receivable (including related parties), Other Receivables (including related parties),

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and guarantee deposits paid) based on expected credit losses at each balance sheet date.

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, the Company determines that the following situations indicate a default on financial assets, without considering the collateral held:

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

ii. Past due more than 180 days, unless there is reasonable and verifiable information indicating that a deferred default criterion is more appropriate.

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 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 of the risks and rewards of ownership of the assets have been transferred to another entity.

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.

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2) Equity instrument

The debt and equity instruments issued by the 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 Company are recognized at the consideration 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

The compound financial instruments (convertible bonds) issued by the Company are, based on the substance of the contractual agreement and the definitions of financial liabilities and equity instruments, initially recognized by classifying their components separately as financial liabilities and equity.

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.

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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 instruments entered into by The Company are related to 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.

j. Revenue recognition

After identifying the performance obligations in customer contracts, the Company 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 is derived from providing customers with customized electronic material testing and analysis services. The Company recognizes revenue and Accounts Receivable when the promised goods or services are transferred to the customer and the performance obligation criteria are met. Based on historical experience and considering different contractual criteria, the Company estimates the potential occurrence of trade discounts to recognize Refund Liabilities. Payments received before meeting the aforementioned revenue recognition criteria are recognized as Contract Liabilities.

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k. Leasing

The Company assesses whether a contract is (or contains) a lease on the inception date of the contract.

The Company is the 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 Individual 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 Company remeasures the lease liabilities and makes corresponding adjustments to the right-of-use assets. However, if the carrying amount of the right-of-use asset has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented separately on the Individual Balance Sheet.

l. 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 Company will comply with the conditions attached to the government subsidy and that the subsidy will be received.

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Government subsidies related to income are recognized as Other income on a systematic basis over the periods in which the related costs, intended to be compensated by the subsidies, are recognized as expenses by the Company.

Government loans obtained by the Company at below-market interest rates are recognized as a Government subsidy, with the difference between the amount of the loan received and the fair value of the loan calculated at the prevailing market interest rate.

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 Company revises the estimated quantity of expected vested employee stock options at each balance sheet date. If the originally estimated number is revised, the impact is recognized in profit or loss to reflect the revised estimated 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 Company determines the current income (loss) in accordance with the regulations established by the tax authority of the income tax filing jurisdiction, which is used to calculate the payable (recoverable) income tax.

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.

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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, whereas deferred income tax assets are recognized when it is probable that taxable profit will be available against which the deductible temporary differences can be utilized.

Taxable temporary differences related to investment in subsidiaries are all recognized as deferred income tax liabilities, except when the 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, 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 that would follow from the manner in which the Company expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

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.

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

In adopting accounting policies, when relevant information cannot be easily obtained from other sources, the management 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 Company, after evaluation by the management, have no major sources of accounting judgment, estimates, and uncertainties in assumptions.

6. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 416	$ 516
Demand deposits in banks	453,852	327,829
	$ 454,268	$ 328,345

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	0.03%~0.705%	0.002%~0.90%

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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 16)	$ 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 Company invests in the common stock of Shengmao Technology Co., Ltd. for the purpose of mid- to long-term strategic objectives and expects to profit through long-term investment. The management of the Company believes that including the short-term fair value fluctuations of the investment in profit or loss is inconsistent with the aforementioned long-term investment plan, and therefore chooses to designate the investment as equity instrument investments at fair value through other comprehensive income.

The Company adopted the market approach to assess the fair value of SMotech Co., Ltd. as of December 31, 2025 and 2024, considering the financial statements and operating conditions of the company and its peers.

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
Measured at Amortized Cost
Total carrying amount	$ 517,987	$ 529,936
Less: Allowance for Losses	(4,936)	(4,936)
	$ 513,051	$ 525,000
Other Receivables
Others	$ 679	$ -

a. Notes Receivable

In determining the recoverability of Notes Receivable, the Company considers any changes in the credit quality of Notes Receivable from the date the credit was originally granted to the balance sheet date. The 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 since initial recognition of Notes Receivable and to measure expected credit losses. As of December 31, 2025 and 2024, The 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 Company has an average credit period of 180 days from advance receipt to month-end for service sales, and its collection policy does not include interest on overdue Accounts Receivable. In determining the recoverability of Accounts Receivable, the Company considers any changes in the credit quality of Accounts Receivable from the date the credit was originally granted 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 Company assigns a dedicated team responsible for determining credit limits, credit approvals, and other monitoring procedures to ensure that appropriate actions have been taken for the recovery of overdue Accounts Receivable. In addition, the Company individually reviews the recoverable amounts of Accounts Receivable at the balance sheet date to ensure that appropriate impairment losses have been recognized for any irrecoverable Accounts Receivable. Accordingly, the management of the Company believes that the Company's credit risk has significantly decreased.

Accounts Receivable are recognized for loss allowance based on the expected credit loss over the lifetime. The lifetime expected credit loss is calculated using a provision matrix, taking into account historical experience, current market conditions, and forward-looking information. Since the Company's historical experience of credit losses shows that the loss patterns among different customer groups do not exhibit significant differences, the provision matrix does not further distinguish customer groups, but sets the expected credit loss rate based solely on the number of days past due for Accounts Receivable.

If there is evidence indicating that the counterparty is facing severe financial difficulties and The Company cannot reasonably expect to recover the Amount, The Company directly writes off the related Accounts Receivable and loss allowance, yet will continue collection activities. Any Amount recovered through collection is recognized in profit or loss.

The Company measures allowance for loss on Accounts Receivable according to the provision matrix as follows:

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December 31, 2025

	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	Total
Expected credit loss rate	0.37%	0.94%	7.37%	12.15%	22.92%	39.05%~67.55%	100.00%
Total carrying amount	$ 472,067	$ 26,347	$ 14,491	$ 2,089	$ 709	$ 1,480	$ 804	$ 517,987
Allowance for Losses (Lifetime Expected Credit Loss)	(1,770)	(247)	(1,068)	(254)	(162)	(631)	(804)	(4,936)
Amortized cost	$ 470,297	$ 26,100	$ 13,423	$ 1,835	$ 547	$ 849	$ -	$ 513,051

December 31, 2024

	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	Total
Expected credit loss rate	0.05%	0.87%	5.32%	14.41%	25.52%	46.92%~69.04%	100.00%
Total carrying amount	$ 498,087	$ 23,901	$ 3,214	$ 2,865	$ 302	$ 723	$ 844	$ 529,936
Allowance for Losses (Lifetime Expected Credit Loss)	(1,397)	(533)	(439)	(1,062)	(198)	(463)	(844)	(4,936)
Amortized cost	$ 496,690	$ 23,368	$ 2,773	$ 1,803	$ 104	$ 260	$ -	$ 525,000

The changes in the allowance for losses on Accounts Receivable are as follows:

	2025	2024
Balance at the beginning of the year.	$ 4,936	$ 4,936
Add: Impairment loss recognized for the year	-	-
Balance at the end of the year.	$ 4,936	$ 4,936

c. Other Receivables

The policy adopted by the Company is to conduct transactions only with creditworthy counterparts and, when necessary, obtain adequate collateral to mitigate the risk of financial loss from defaults. The 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 since initial recognition of Other Receivables and to measure expected credit losses. As of December 31, 2025, The Company assessed that no expected credit losses needed to be recognized for Other Receivables.

10. Investments Accounted for Using the Equity Method

	December 31, 2025	December 31, 2024
Investment in subsidiaries
TRISTATE INTERNATIONAL CO., LTD. (Note)	$ 883,686	$ 795,203
MSS Japan Company	311,936	206,879
MSS USA CORP.	728,413	654,775
	$ 1,924,035	$ 1,656,857

Note: The carrying amounts as of December 31, 2025 and December 31, 2024 include unrealized gain on the disposal of property, plant and equipment of 261,286 thousand dollars and 164,111 thousand dollars, respectively. The carrying amounts as of December 31, 2025 and December 31, 2024 include unrealized gain on the disposal of assets of 29,516 thousand dollars and 9,748 thousand dollars, respectively.

Name of Subsidiary	Percentage of Ownership and Voting Rights
	December 31, 2025	December 31, 2024
TRISTATE INTERNATIONAL CO., LTD. (Note 1)	100%	100%
MSS Japan Company (Note 2)	100%	100%
MSS USA CORP. (Note 3)	100%	100%

Note 1: 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 2: 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 3: 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.

34 -

11. Property, Plant And Equipment

For personal use.

	Machinery and Equipment	Office Equipment	Lease improvement	Transportation Equipment	Other Equipment	Property and equipment under construction and pending inspection	Total
Cost
Balance as of January 1, 2025	$ 3,951,066	$ 12,396	$ 146,873	$ 2,150	$ 38,652	$ 65,299	$ 4,216,436
Added	407,328	6,640	43,347	3,500	4,883	21,299	486,997
Reclassification	100,201	-	-	-	5,048	(5,285)	99,964
Disposal	(843,158)	(1,699)	(12,847)	-	(7,928)	-	(865,632)
Balance as of December 31, 2025	$ 3,615,437	$ 17,337	$ 177,373	$ 5,650	$ 40,655	$ 81,313	$ 3,937,765
Accumulated depreciation
Balance as of January 1, 2025	$ 1,422,565	$ 4,315	$ 49,085	$ 209	$ 14,492	$ -	$ 1,490,666
Depreciation expenses	616,454	3,772	25,440	407	10,045	-	656,118
Disposal	(718,813)	(1,669)	(12,847)	-	(7,834)	-	(733,163)
Balance as of December 31, 2025	$ 1,328,206	$ 6,418	$ 61,678	$ 616	$ 16,703	$ -	$ 1,413,621
Net amount as of December 31, 2025	$ 2,287,231	$ 10,919	$ 115,695	$ 5,034	$ 23,952	$ 81,313	$ 2,524,144
Cost
Balance as of January 1, 2024	$ 2,746,446	$ 9,762	$ 90,564	$ -	$ 21,604	$ -	$ 2,868,376
Added	1,127,532	5,778	46,029	2,150	16,919	-	1,198,408
Reclassification	227,803	1,582	30,154	-	1,863	65,299	326,701
Disposal	(150,715)	(4,726)	(19,874)	-	(1,734)	-	(177,049)
Balance as of December 31, 2024	$ 3,951,066	$ 12,396	$ 146,873	$ 2,150	$ 38,652	$ 65,299	$ 4,216,436
Accumulated depreciation
Balance as of January 1, 2024	$ 1,007,615	$ 6,063	$ 46,613	$ -	$ 8,917	$ -	$ 1,069,208
Depreciation expenses	554,111	2,978	22,346	209	7,309	-	586,953
Disposal	(139,161)	(4,726)	(19,874)	-	(1,734)	-	(165,495)
Balance as of December 31, 2024	$ 1,422,565	$ 4,315	$ 49,085	$ 209	$ 14,492	$ -	$ 1,490,666
Net amount as of December 31, 2024	$ 2,528,501	$ 8,081	$ 97,788	$ 1,941	$ 24,160	$ 65,299	$ 2,725,770

Note: Transferred from Other Non-Current Assets - Prepaid equipment and prepaid construction contract 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:

Machinery and Equipment 3 to 10 years

Office Equipment 2 to 3 years

Lease improvement 3 to 10 years

Transportation Equipment 5

Other Equipment 3

Please refer to Note Thirty 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
Buildings	$ 155,552	$ 189,716
Office Equipment	-	35
Transportation Equipment	4,331	6,234
	$ 159,883	$ 195,985
	2025	2024
Addition of Right-of-use assets	$ 17,467	$ 59,649
Depreciation expenses of right-of-use assets
Buildings	$ 50,451	$ 42,020
Office Equipment	35	92
Transportation Equipment	3,083	2,746
	$ 53,569	$ 44,858

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	$ 38,477	$ 50,711
Non-current	126,532	149,961
	$ 165,009	$ 200,672

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

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

c. Important leasing activities and clauses

The Company rents buildings for business premises with lease terms ranging from 1 to 10 years, and additionally rents office equipment for business use with a lease term of 5 years, as well as transportation equipment for goods transportation with a lease term of 3 years. At the end of the lease term, The Company has no preferential purchase option for the leased buildings, office equipment, and transportation equipment.

d. Other Leasing Information

	2025	2024
Short-term leasing expenses	$ 6,811	$ 4,386
Leasing expenses for low-value assets	$ 945	$ 873
Total cash outflow from leasing	$ (64,214)	$ (52,637)

The Company elects to apply the recognition exemption for buildings, machinery and equipment, and transportation equipment leases that qualify as short-term leases, and for office equipment leases that qualify as low-value asset leases, and does not recognize the related right-of-use assets and lease liabilities for these 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	$ 15,012
Disposal	(3,469)
Balance as of December 31, 2025	$ 11,543
Accumulated amortization
Balance as of January 1, 2025	$ 6,592
Amortization expenses	4,689
Disposal	(3,469)
Balance as of December 31, 2025	$ 7,812
Net amount as of December 31, 2025	$ 3,731
Cost
Balance as of January 1, 2024	$ 17,874
Individually acquired	5,619
Disposal	(8,481)
Balance as of December 31, 2024	$ 15,012
Accumulated amortization
Balance as of January 1, 2024	$ 10,289
Amortization expenses	4,784
Disposal	(8,481)
Balance as of December 31, 2024	$ 6,592
Net amount as of December 31, 2024	$ 8,420

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
Prepaid lease payments	15,439	3,205
Prepaid Others	19,081	21,177
	$ 88,973	$ 94,084
Non-current
Prepaid equipment payments	$ 149,432	$ 117,715
Prepaid salary	95,815	83,917
Security Deposits (Note)	22,934	22,049
	$ 268,181	$ 223,681

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

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 Thirty)
Bank borrowings	$ 151,424	$ 303,683
Unsecured borrowings
Bank borrowings	1,470,133	1,273,000
Less: Government subsidy discount (Note Twenty-Five)	(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 Company's borrowings 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	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	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	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	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	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	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	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	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	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: The Company received a government preferential interest rate loan under the R.O.C. National Development Fund Management Committee's "Accelerated Enterprise Investment Program for Rooting in Taiwan." For related details, please refer to Note 25.

The above bank borrowings are secured by the Company's own machinery and equipment, please refer to Note 30.

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 17 and 26)
Payable Equipment (Note 26)	$ 175,745	$ 101,600
Accrued Salaries and Bonuses	126,615	116,666
Taxes payable on operating income	12,724	6,420
Accrual for Employees' remunerations	-	10,797
Social insurance and health insurance payable	10,582	9,276
Accrued Pensions	8,009	6,861
Accrual for Directors' Remuneration	-	4,050
Others	14,507	9,475
	$ 348,182	$ 265,145
Deferred Revenue
Government subsidy (Note 25)	$ 3,177	$ 4,044
Other Liabilities
Refund Liabilities (Note 20)	$ 85,106	$ 52,375
Others
Temporary Receipts	245	116
Collection Receivables	10,306	10,119
	$ 10,551	$ 10,235
Non-current
Deferred Revenue
Government subsidy (Note 25)	$ 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.

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 the proposals of 2024 and 2023 earning distribution were approved 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	$ 1,656,292	$ 1,614,016

a. Description of the customer contract

The customer contracts signed by the Company mainly involve the provision of customized electronic material testing and analysis services for the semiconductor industry, with the performance obligation of issuing testing and analysis results reports. Customers make payments according to the agreed credit period and transaction criteria after receiving the report and verifying the completion of each testing item. For contracts where the time between the transfer of testing and analysis results reports 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 cumulative experience with customer transactions in the past, the Company estimates the discount amount using the most likely amount, which is used to adjust the revenue amount and recognize 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 Nine)	513,051	525,000	519,731
Accounts Receivable - Relationship with the endorser/guarantor (Note 29)	5,571	6,514	-
	$ 519,968	$ 534,487	$ 520,160
Contract Liabilities
Testing and analysis services	$ 10,819	$ 12,756	$ 28,780

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	$ 1,580,134	$ 1,569,586
America	59,908	40,258
Others	16,250	4,172
	$ 1,656,292	$ 1,614,016

Net profits from continuing operations

a. Interest income

	2025	2024
Bank deposits	$ 2,945	$ 4,272

b. Other income

	2025	2024
Government subsidy income (Note 25)	$ 3,954	$ 3,967
Others	2,700	3,348
	$ 6,654	$ 7,315

c. Other gains and losses

	2025	2024
Net foreign exchange loss	$ (9,354)	$ (2,812)
Realized gain on purchasing on behalf of others (Note 29)	14,292	-
Gain on Disposal of Assets (Note 29)	1,244	3,407
Gain on disposal of property, plant and equipment (Note 29)	$ 22,251	$ 15,199
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
	$ 31,956	$ 17,881

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	3,328	3,094
	$ 48,898	$ 37,494

e. Depreciation and amortization

	2025	2024
Depreciation expenses summarized by function
Operating costs.	$ 680,689	$ 609,491
Operating Expenses	28,998	22,320
	$ 709,687	$ 631,811
Amortization expenses summarized by function
Operating costs.	$ 3,147	$ 3,027
Operating Expenses
Administrative expenses	1,542	1,736
Research and development expenses	-	21
	$ 4,689	$ 4,784

f. Employee benefits expenses

2025	2024

Share-based payments (Note 24)	$	-	$	17,421
Post-employment benefits		29,528		25,750
Other employee benefits		798,472		748,591
Total employee benefits expenses	$	828,000	$	791,762
Summarized by function
Operating costs.	$	620,007	$	583,944
Operating Expenses		207,993		207,818
	$	828,000	$	791,762

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 annual individual financial report approval date, they will be treated as accounting estimate changes and adjusted in the accounts in the following year.

There is no difference between the actual disbursed amounts of the 2024 and 2023 employees' remunerations and directors' remuneration and the recognized amounts in the individual financial reports for 2024 and 2023.

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	$ 17,725	$ 11,211
Total foreign exchange (loss)	(27,079)	(14,023)
Net loss	$ (9,354)	$ (2,812)

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.	$ 3,440	$ 4,958
Non-deductible foreign source
income	1,000	-
Adjustments from previous years	3,471	5,484
	7,911	10,442
Deferred income tax
Generated for the Year.	(2,565)	17,721
Income tax expenses recognized in
profit or loss.	$ 5,346	$ 28,163

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

	2025	2024
Net profits (or loss) before tax from continuing operations	$ (31,328)	$ 93,126
Income tax (benefit) expenses calculated at the statutory tax rate on profit before tax	$ (6,266)	$ 18,625
Expenses and losses not deductible for tax purposes.	9,555	7,479
Investment tax credits utilized for the year	(2,414)	(3,425)
Non-deductible foreign source income	1,000	-
Adjustments for current income tax expenses from previous years in the year.	3,471	5,484
Income tax expenses recognized in profit or loss.	$ 5,346	$ 28,163

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.	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 profits with the Subsidiary	34,772	23,389	-	58,161
Convertible bonds	765	(292)	-	473
Exchange differences of overseas operating entities.	-	-	673	673
	$ 49,329	$ 30,334	$ 673	$ 80,336
Deferred income tax liabilities
Temporary difference
Share of profit or loss of a Subsidiary using the equity method	$ 87,797	$ 27,158	$ -	$ 114,955
Unrealized exchange loss	589	611	-	1,200
Exchange differences of overseas operating entities.	4,154	-	(4,154)	-
	$ 92,540	$ 27,769	$ (4,154)	$ 116,155

2024

	Balance at the beginning of the year.	Issuance of convertible bonds	Recognized in profit or loss.	Income tax recognized in other comprehensive income.	Balance at the end of the 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)	-	-
Unrealized profits with the Subsidiary	26,582	-	8,190	-	34,772
Convertible bonds	-	876	(111)	-	765
Exchange differences of overseas operating entities.	3,181	-	-	(3,181)	-
	$ 41,525	$ 876	$ 10,109	$ (3,181)	$ 49,329
Deferred income tax liabilities
Temporary difference
Share of profit or loss of a Subsidiary using the equity method	$ 60,556	$ -	$ 27,241	$ -	$ 87,797
Unrealized exchange loss	-	-	589	-	589
Exchange differences of overseas operating entities.	-	-	-	4,154	4,154
	$ 60,556	$ -	$ 27,830	$ 4,154	$ 92,540

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. As of December 31, 2025, The Company has no pending tax litigation cases.

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 Company has the option to distribute Employees' remunerations in 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 with a dilutive effect is included in the weighted average number of shares outstanding to calculate Diluted Earnings Per Share. 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.

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	0.0952Year
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 Company has obtained a government preferential interest rate loan of NT$2,297,582 thousand under the R.O.C. National Development Fund Management Committee's "Accelerated Enterprise Investment Program for Rooting in Taiwan" for the purchase of machinery and equipment. The loan will be repaid in installments over a period of 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

55 -

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 Company does not meet the criteria of the project loan recognition during the loan period, resulting in the suspension or termination of loan handling fee disbursement by the National Development Fund Management Committee, the Company will instead pay according to the originally agreed rate plus the annual interest rate.

26. Cash Flow information

a. Non-cash transaction

Except as disclosed in other notes, the Company engaged in the following non-cash transactions for investment and financing activities in 2025 and Year 2024:

1) The Company had outstanding payables for the acquisition of property, plant, and equipment amounting to 175,745 thousand dollars and 101,600 thousand dollars as of December 31, 2025 and December 31, 2024, respectively, which were recorded under Other Payables (Note Seventeen and Twenty-Six).

2) The Company had outstanding receivables from the sale of property, plant, and equipment amounting to 48,115 thousand dollars as of December 31, 2025, which were recorded under Other Receivables - Related Parties.

3) 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	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	200,672	(53,130)	17,467	3,328	-	(3,328)	165,009
Corporate Bonds Payable	467,898	-	-	11,961	-	-	479,859
	$ 2,236,368	$ 196,744	$ 17,467	$ 21,060	$ (322)	$ (3,328)	$ 2,467,989

2024

	January 1, 2024	Cash Flow	Add leasing	Non-cash changes					Others (Note)
				Corporate Bonds Payable liability and equity component	The impact of income tax	Finance cost	Fair Value Adjustment - Deferred Revenue
Short-term borrowings	$ -	$ -	$ -	$ -	$ -	$ 2,510	$ -	($ 2,510)	$ -
Long-term borrowings	930,163	639,233	-	-	-	5,354	(6,952)		1,567,798
Lease liabilities	185,307	(44,284)	59,649	-	-	3,094	-	(3,094)	200,672
Corporate Bonds Payable	-	351,380	-	(84,434)	876	4,457	-	(4,381)	467,898
	$ 1,115,470	$ 1,146,329	$ 59,649	($ 84,434)	$ 876	$ 15,415	($ 6,952)	($ 9,985)	$ 2,236,368

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

27. Capital risk management

The Company engages in capital management to ensure that it can maximize shareholder returns by optimizing the balance of debt and equity under the premise of continued operations.

The Company's capital structure is composed 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 Company is not subject to other external capital requirements.

The Company's main management reviews the company's capital structure annually, with the review description including considerations of the cost of various types of capital and the related risks. Based on the recommendations of the main management, the Company will balance its overall capital structure through dividend payment, issuing new shares, issuing new debt, or repaying 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
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

60 -

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)	1,046,358	884,881
Financial liabilities
Financial Assets at Fair Value Through Profit or Loss
Held for trading	-	700
Measured at Amortized Cost (Note 2)	2,536,012	2,173,673

Note 1: The balance includes financial assets measured at amortized cost, such as cash and cash equivalents, Notes Receivable, Accounts Receivable (including related parties), Other Receivables (including related parties), and guarantee deposits paid.

Note 2: The balance includes financial liabilities measured at amortized cost, such as short-term borrowings, Notes Payable, Accounts Payable, Other Payables (excluding Salaries and Bonuses Payable, Payable business tax, Remuneration payable to employees, Social insurance and health insurance payable, Pension Payable, and Remuneration payable to Directors), Corporate Bonds Payable, and long-term borrowings.

d. Financial risk management objectives and policies

The Company's primary financial instruments include cash and cash equivalents, limited partnership, equity instruments investments, 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 Company due to its operating activities are foreign currency exchange rate fluctuation risk (please refer to (a) below), interest rate fluctuation risk (please refer to (b) below), and other price risks (please refer to (c) below).

61 -

a) Exchange rate risk.

The Company engages in transactions denominated in foreign currency, which exposes it to exchange rate fluctuation risk.

At the balance sheet date, for the carrying amounts of monetary assets and monetary liabilities denominated in non-functional currencies, refer to Note Three Two.

Sensitivity analysis

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

The following table provides a detailed sensitivity analysis of the Company when the exchange rate of the New Taiwan Dollar (functional currency) increases and decreases by 1% against each relevant foreign currency. The 1% refers to the sensitivity ratio used by the Company to report exchange rate risk to the primary management and also represents 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	($ 181)	$ 398
	The effect of the Japanese yen
	2025	2024
Profit or loss	$ 445	$ 20

The main sources are the US dollar-denominated cash and cash equivalents, receivables, and payables outstanding on the Company's balance sheet date, as well as the Japanese yen-denominated cash and cash equivalents and receivables.

The Company's sensitivity to the US dollar exchange rate decreased this year, primarily due to an increase in payables denominated in US dollars; sensitivity to the Japanese yen exchange rate increased, primarily due to an increase in Japanese yen-denominated bank deposits.

62 -

b) Interest rate risk

The Company is exposed to interest rate risk as its bank deposits, bank borrowings, corporate bonds payable, and lease liabilities include both fixed and floating interest rates.

The carrying amounts of financial assets and financial liabilities exposed to interest rate risk held by the Company as of the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Interest rate risk with fair value
- Financial liabilities	$ 644,868	$ 668,570
Interest rate risk with cash flow
- Financial assets	$ 453,852	$ 327,829
- 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 company to report to the primary management when interest rates increase or decrease by 1% 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 Company's pre-tax net profit for 2025 and Year 2024 will decrease/increase by NT$13,693 thousand and NT$12,400 thousand, respectively. The main reason is the interest rate risk arising from the Company's bank deposits and bank borrowings that are subject to floating interest rates.

The Company's sensitivity to the interest rate increased this year, primarily due to an increase in bank borrowings this year.

63 -

c) Other price risk

The Company is exposed to equity price risk due to its holdings in securities investments (- Domestic unlisted stocks) and Limited Partnerships. These equity investments are not held for trading purposes but are considered strategic investments. The Company does not actively trade this 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 Company was NT$0 thousand as of December 31, 2025, and December 31, 2024. The Company assessed the reasonably possible changes in risk variables on that date, which would not affect the other comprehensive income before tax for 2025 and Year 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 Company resulting from a counterparty's default on contractual obligations. As of the balance sheet date, the Company's maximum exposure to credit risk, which may result in financial loss due to counterparties failing to fulfill obligations, primarily arises from the carrying amount of financial assets recognized on the Individual Balance Sheet.

The policy adopted by the Company is to conduct transactions only with creditworthy counterparts and, when necessary, obtain adequate collateral to mitigate the risk of financial loss from defaults. The Company establishes comprehensive customer credit profiles and evaluates key customers through client credit management procedures, utilizing publicly available financial information and historical transaction records. The Company continuously monitors credit exposure and counterparty credit ratings, and controls credit exposure through the credit limit ceilings of counterparties which are reviewed and approved by authorized supervisors.

64 -

recognized for any irrecoverable Accounts Receivable. Accordingly, the management of the Company believes that the Company's credit risk has significantly decreased.

The Company's credit risk is primarily concentrated in its major customers, Company A and Company B (the revenue from other customers does not exceed 10% of the Company's total revenue in any given year). As of December 31, 2025, and December 31, 2024, the accounts receivable from these customers accounted for 42% and 51% of the total, respectively.

3) Liquidity risk

The Company manages and maintains adequate levels of cash and cash equivalents to support operations and mitigate the impact of cash flow fluctuations. The management of the Company supervises 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 Company. As of December 31, 2025 and 2024, The Company's unused financing limit is explained in the following (2) financing limit description.

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

The analysis of non-derivative financial liabilities' remaining contractual maturities is prepared based on the earliest date the Company might be required to repay, using undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, bank borrowings that the Company may be required to repay immediately are listed within the earliest period in the table below, without considering the likelihood of the bank exercising this right immediately; the maturity analysis of other non-derivative financial liabilities is prepared based on 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.

65 -

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	$ 57,781	$ 175,251	$ -	$ -	$ -
Lease liabilities	4,852	6,678	29,670	94,583	38,421
Floating interest rate instruments	223,773	35,658	263,000	1,377,818	2,715
Fixed interest rate instruments	-	-	-	499,900	-
	$ 286,406	$ 217,587	$ 292,670	$ 1,972,301	$ 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	$ 33,050	$ 104,927	$ -	$ -	$ -
Lease liabilities	4,530	9,059	40,364	108,284	50,438
Floating interest rate instruments	11,913	23,590	136,813	1,306,000	185,234
Fixed interest rate instruments	-	-	-	499,900	-
	$ 49,493	$ 137,576	$ 177,177	$ 1,914,184	$ 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

c) Liquidity risk countermeasure

The Company's Current Assets are less than Current liabilities. In addition to supporting operations through managing and maintaining adequate cash levels, the Company also continuously monitors its cash position and plans appropriate financing channels.

The Company will arrange various financing and financial activities based on the needs for operating funds and disbursement plans, and it is expected that no significant liquidity risk will occur.

Related party transaction

Except as disclosed in other notes, transactions between the Company and related parties are as follows:

a. Names of related parties and their Relationship with the endorser/guarantor

Names of related parties and their Relationship with the endorser/guarantor	Relationship with the Company
Nanjing MSS Electronic Technology Limited	Subsidiary
MSS Japan Company	Subsidiary
MSS USA CORP.	Subsidiary

b. Operating revenue

Accounting Item	Categories of related parties	2025	2024
Service Revenue - Testing and analysis services	Subsidiary	$ 18,563	$ 20,117

The transaction price for testing and analysis services revenue with related parties is determined by mutual agreement, with reference to market conditions. The transaction criteria stipulate payment terms of 60 to 90 days monthly settlement. For non-related parties, prices are determined through negotiation, with payment collected in advance or settled monthly within 30 to 180 days.

c. Operating costs

Accounting Item	Categories of related parties	2025	2024
Service cost - Testing and analysis services	Subsidiary	$ 1,768	$ 2,681

The transaction price for testing and analysis services expenses with related parties is determined by mutual agreement, with reference to market conditions. The transaction criteria stipulate payment terms of 60 to 90 days monthly settlement. For

non-related parties, prices are determined through negotiation, with payment settled monthly within 30 to 60 days.

d. Receivables from the relationship with the endorser/guarantor

Accounting Item	Categories of related parties/Name	December 31, 2025	December 31, 2024
Accounts Receivable	Subsidiary	$ 5,571	$ 6,514
Other Receivables	Subsidiary
- Sale of equipment payments	Nanjing MSS Electronic Technology Limited	$ 33,316	$ -
	MSS Japan Company	14,799	-
-Collections and Payments	Subsidiary	394	-
		$ 48,509	$ -

The outstanding Receivables from the relationship with the endorser/guarantor are uncollected guarantees. No loss allowance was recognized for receivables from the relationship with the endorser/guarantor in Year 2025 and 2024.

The purchasing profit generated by The Company for Nanjing MSS Electronic Technology Limited from purchasing equipment and consumables on behalf in Year 2025 was NT$3,289 thousand; for MSS Japan Company, it was NT$3,712 thousand; and for MSS USA Corp., it was NT$7,291 thousand.

e. Disposal of property, plant and equipment

Categories of related parties/Name	Proceeds from disposal		Gain (or loss) on disposal
	2025	2024	2025	2024
Subsidiary
- Nanjing MSS Electronic Technology Limited	$ 216,959	$ 68,947	$ 119,376	$ 57,393
- MSS Japan Company	31,759	-	-	-
- Others	94	-	-	-
	$ 248,812	$ 68,947	$ 119,376	$ 57,393
Add: Realized disposal gain			22,201	15,199
Less: Unrealized disposal gain			(119,376)	(57,393)
			$ 22,201	$ 15,199

f. Sale of assets

Categories of related parties/Name	Proceeds from disposal		Gain (or loss) on disposal
	2025	2024	2025	2024
Subsidiary
- Nanjing MSS Electronic Technology Limited	$ 21,012	$ 1,907	$ 21,012	$ 1,907
Add: Realized disposal gain			1,244	1,244
Less: Unrealized disposal gain			(21,012)	-
			$ 1,244	$ 3,151

g. 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.

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

70 -

31. Significant Contingent Liabilities and Unrecognized Contractual Commitments

The significant commitments and contingent matters of the 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	$ 49,630	$ -
US dollar	$ 935	$ 461

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 foreign currencies other than the Company's functional currency, and the disclosed exchange rates refer to the rates at which these foreign currencies are translated into the functional currency. 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
JPY	221,682	0.2008 (Japanese yen: NT$)	$ 44,513
Non-monetary items
Subsidiaries accounted for using the equity method.
US dollar	60,544	31.430 (USD: NT$)	$ 1,902,901
JPY	1,553,471	0.2008 (Japanese yen: NT$)	$ 311,936
Foreign currency liabilities
Monetary items
US dollar	4,946	31.430 (USD: NT$)	$ 155,442

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
JPY	9,722	0.2099 (Japanese yen: NT$)	$ 2,041
Non-monetary items
Subsidiaries accounted for using the equity method.
US dollar	49,530	32.785 (USD: NT$)	$ 1,623,837
JPY	985,607	0.2099 (Japanese yen: NT$)	$ 206,879
Foreign currency liabilities
Monetary items
US dollar	1,973	32.785 (USD: NT$)	$ 64,690

71 -

The foreign exchange losses (realized and unrealized) of the Company in 2025 and Year 2024 were NT$(9,354) thousand and NT$(2,812) thousand, respectively. Due to the diversity of functional currencies in foreign currency transactions, it is not possible to disclose exchange gains or losses for each significant foreign currency separately.

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). (Table One)
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)

b. Information related to Invested company (Table Two)

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 Three)
2) Significant transactions that occurred between the invested company in mainland China and third regions, either directly or indirectly, including their prices, payment criteria, and unrealized profit or loss: (Appendix Four)

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.

72 -

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.

73 -

MSSCORPS CO., Ltd.
Major securities held at the end of the period (excluding investments in subsidiaries, associates, and joint ventures).
December 31, 2025

Schedule 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	—

74 -

MSSCORPS CO., Ltd.
Name of investee, location, and other related information
2025

Appendix Two Unit: NT$ Thousand, Thousand Foreign currency, Number of Shares 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 and 3
	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
	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
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

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: The carrying amount held at the end of the period includes unrealized profits from intergroup transactions.
Note 4: Please refer to Table 3 for the Mainland China Investment Information.

75 -

MSSCORPS CO., Ltd.
Mainland investment information
2025 Year

Appendix Three Unit: NT$ Thousand, Thousand Foreign currency

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 (Note 2(Two)2.)	Book value of investment at the end of the period (Note 2(Two)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)	Two	$ 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 4)	$ 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: 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.

76 -

MSSCORPS CO., Ltd.
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

Appendix Four

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	Monthly settlement with 90-day payment terms	No significant difference	$ 2,080	0%	$ -	—

Note: 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	—

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.
77 -

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%	$ -	—

79 -

§SCHEDULE OF IMPORTANT ACCOUNTING ITEMS TABLE OF CONTENTS§

Item	Number/Index
Schedule of Assets, Liabilities and Equity Items
Schedule of Cash and Cash Equivalents	Schedule One
Financial Assets at Fair Value Through Profit or Loss - Current Detailed Schedule	Note 7
Accounts Receivable Schedule	Schedule Two
Other Receivables Schedule	Schedule Five
Schedule of Prepaid Expenses	Note 14
Schedule of Changes in Investments Accounted for Using the Equity Method	Schedule Three
Detailed Schedule of Changes in Property, Plant and Equipment	Note 11
Detailed Schedule of Changes in Accumulated Depreciation of Property, Plant and Equipment	Note 11
Schedule of Changes in Right-of-use Assets	Schedule Four
Detailed Schedule of Changes in Accumulated Depreciation of Right-of-use Assets	Schedule Four
Detailed Schedule of Changes in Intangible Assets	Note 13
Schedule of Deferred Income Tax Assets	Note 22
Detailed Schedule of Other Non-Current Assets	Note 14
Schedule of Short-term Borrowings	Schedule Six
Accounts Payable Schedule	Schedule Seven
Schedule of Other Payables	Note 17
Accounts Payable Schedule	Note 16
Schedule of Long-term Borrowings	Note 15
Lease liabilities schedule	Schedule Eight
Refund Liabilities Schedule	Note 17
Schedule of Deferred Income Tax Liabilities	Note 22
Schedule of Profit or Loss Items
Operating Revenue Schedule	Note 22
Operating Costs Schedule	Schedule Nine
Operating Expenses Schedule	Schedule Ten
Finance Cost Schedule	Note 21
Summary table of employee benefits, depreciation, and amortization expenses by function for the current period	Schedule Eleven

MSSCORPS CO., Ltd.
Schedule of Cash and Cash Equivalents
December 31, 2025

Schedule One
Unit: NT$ Thousand

Item	Summary Description	Amount
Cash on hand and revolving funds.		$ 416
Bank deposits
Demand deposits		360,669
Foreign currency demand deposits
Japanese yen	131,180 thousand, Exchange rate 0.2008	26,341
USD	2,117 thousand, Exchange rate 31.43	66,773
Renminbi	7 thousand, Exchange rate 4.4960	31
Euro	1 thousand, Exchange rate 36.9	38
		93,183
		453,852
		$ 454,268

80 -

MSSCORPS CO., Ltd.
Accounts Receivable Schedule
December 31, 2025

Schedule Two

Unit: NT$ Thousand

Customer Name	Summary Description	Amount
Non-related party:
Customer A	Testing and analysis services	$ 153,692
Customer B	〃	68,294
Others (Note)	〃	296,001
Subtotal		517,987
Less: Allowance for Losses		(4,936)
		$ 513,051
Relationship with the endorser/guarantor:
Nanjing MSS Electronic Technology Limited	Testing and analysis services	$ 2,080
MSS Japan Company	〃	3,374
MSS USA CORP.	〃	117
		$ 5,571

Note: The balance of each account does not exceed five percent of the balance of this account.

81 -

MSSCORPS CO., Ltd.
Schedule of Changes in Investments Accounted for Using the Equity Method
2025 Year

Schedule Three

Unit: NT$ Thousand
Number of Shares Thousand shares

Name of investee	Balance at the beginning of the year.		Increase during the Year		Decrease during the Year		Recognized using the equity method.			Balance at the end of the year.			Market price or net equity (Note 1)
	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method.	Exchange differences resulting from the translation of financial statements of overseas operating entities.	Number of Shares	Shareholding	Amount	Unit price (NTD)	Total Price	Situation of Providing Collateral or Pledge
TRISTATE INTERNATIONAL CO., LTD.	16,415	$ 795,203	-	$ 23,445	(446)	$ (155,081)	$ 208,918	$ 11,201	15,969	100%	$ 883,686	73.55	$ 1,174,488	None
MSS Japan Company	105	206,879	65	134,680	-	-	(17,126)	(12,497)	170	100%	311,936	1834.92	311,936	None
MSS USA CORP.	20,000	654,775	5,000	152,480	-	-	(56,001)	(22,841)	25,000	100%	728,413	29.14	728,413	None
		$ 1,656,857		$ 310,605		$ (155,081)	$ 135,791	$ (24,137)			$ 1,924,035		$ 2,214,837

Note 1: The difference between the book value and the equity net value is unrealized gains from downstream transactions of 290,802 thousand dollars.
Note 2: Increase during the Year includes the capital increase for MSS Japan Company of NT$134,680 thousand (JPY 650,000 thousand), for MSS USA Corp. of NT$152,480 thousand (USD 5,000 thousand), and the realized profit of NT$23,445 thousand from the unrealized gain on downstream transactions with the subsidiary during the Year.
Note 3: Decrease during the Year includes unrealized gains from downstream transactions with the subsidiary of NT$140,388 thousand and the capital reduction by TRISTATE INTERNATIONAL CO., LTD. of NT$14,693 thousand (USD 446 thousand).

82 -

MSSCORPS CO., Ltd.
Schedule of Changes in Right-of-use Assets
2025 Year

Schedule Four
Unit: NT$ Thousand

Item	Buildings	Office Equipment	Transportation Equipment	Total
Cost
Balance at the beginning of the year.	$ 311,153	$ 234	$ 9,430	$ 320,817
Add leasing for the period	16,287	-	1,180	17,467
Decrease during the Year	(3,384)	(234)	(1,443)	(5,061)
Balance at the end of the year.	$ 324,056	$ -	$ 9,167	$ 333,223
Accumulated depreciation
Balance at the beginning of the year.	$ 121,437	$ 199	$ 3,196	$ 124,832
Add leasing for the period	50,451	35	3,083	53,569
Decrease during the Year	(3,384)	(234)	(1,443)	(5,061)
Balance at the end of the year.	$ 168,504	$ -	$ 4,836	$ 173,340
Net amount at the end of the year	$ 155,552	$ -	$ 4,331	$ 159,883

83 -

MSSCORPS CO., Ltd.
Other Receivables Schedule
December 31, 2025

Schedule Five

Unit: Unless otherwise noted, amounts are in NT$ Thousand

Name	Summary Description	Amount
Non-related party:
Others		$ 679
Relationship with the endorser/guarantor:
Nanjing MSS Electronic Technology Limited	Sale of equipment and -Collections and Payments	$ 33,330
MSS Japan Company	“	15,179
		$ 48,509

84 -

MSSCORPS CO., Ltd.
Schedule of Short-term Borrowings
December 31, 2025
Schedule Six
Unit: NT$ Thousand

Types of borrowings and creditors	Borrowings Term	Annual interest rate (%)	Balance	Financing limit (Note)	Collateral or guarantee
Bank short-term borrowings
- Bank of Taiwan	July 29, 2025 to May 22, 2026	1.95%	$ 155,000	$ 200,000	None
- Mega International Commercial Bank	November 3, 2025 to January 30, 2026	1.98%	50,000	50,000	None
Total Short-term Borrowings			$ 205,000	$ 250,000

Note: As of December 31, 2025, The Company's unused short-term financing limit amounted to 595,000 thousand dollars.

85 -

MSSCORPS CO., Ltd.
Accounts Payable Schedule
December 31, 2025

Schedule Seven

Unit: NT$ Thousand

Name of supplier	Summary Description	Amount
Non-related party:
Supplier D	Payment	$ 13,518
Supplier A	“	8,253
Supplier H	“	2,779
Others (Note)	“	18,210
		$ 42,760

Note: The balance of each account does not exceed five percent of the balance of this account.

86 -

MSSCORPS CO., Ltd.
Lease liabilities schedule
December 31, 2025

Schedule Eight

Unit: NT$ Thousand

Item	Summary Description	Lease term	Discount rate	Balance at the end of the period
Buildings	Plant and office	February 1, 2018 to February 28, 2034	1.22%~2.02%	$ 160,628
Transportation Equipment	Official vehicle	July 5, 2023 to December 18, 2028	1.91%~2.02%	4,381
Subtotal				165,009
Less: Lease liabilities due within one year				(38,477)
				$ 126,532

87 -

MSSCORPS CO., Ltd.
Operating Costs Schedule
2025 Year

Schedule Nine
Unit: NT$ Thousand

Item	Amount
Salary Expenses (Note 1)	$ 517,751
Depreciation expenses	680,689
Consumables	86,361
Others (Note 2)	208,566
	$ 1,493,367

Note 1: Includes salary expenses and pension expenses.
Note 2: The amount of each item does not exceed five percent of the amount of this account.

88 -

MSSCORPS CO., Ltd.
Operating Expenses Schedule
2025 Year

Schedule Ten

Unit: NT$ Thousand

Name	Selling expenses	Administrative expenses	Research and development expenses
Salary Expenses (Note 1)	$ 25,428	$ 123,634	$ 37,045
Depreciation expenses	5,186	17,919	5,893
Insurance expense	2,134	17,294	2,307
Consumables	69	270	11,447
Travel expenses	2,691	4,056	20
Shipping cost	2,892	1,179	3
Utilities	2,497	2,096	951
Others (Note 2)	5,711	46,754	5,225
	$ 46,608	$ 213,202	$ 62,891

Note 1: Includes salary expenses, Directors' Remuneration, and pension expenses.
Note 2: The amount of each item does not exceed five percent of the amount of this account.

89 -

MSSCORPS CO., Ltd.
Summary table of employee benefits, depreciation, and amortization expenses by function for the current period
Year 2025 and 2024
Schedule Eleven
Unit: NT$ Thousand

	2025			2024
	Belongs to operating costs.	Belongs to operating expenses.	Total	Belongs to operating costs.	Belongs to operating expenses.	Total
Employee benefits expenses
Share-based payment	$ -	$ -	$ -	$ 13,066	$ 4,355	$ 17,421
Salary expenses	495,019	179,146	674,165	459,626	170,981	630,607
Directors' Remuneration	-	165	165	-	4,212	4,212
Social insurance and health insurance expenses	41,012	15,026	56,038	34,957	14,719	49,676
Pension expenses	22,732	6,796	29,528	19,504	6,246	25,750
Other employee benefits expenses	61,244	6,860	68,104	56,791	7,305	64,096
	$ 620,007	$ 207,993	$ 828,000	$ 583,944	$ 207,818	$ 791,762
Depreciation expenses	$ 680,689	$ 28,998	$ 709,687	$ 609,491	$ 22,320	$ 631,811
Amortization expenses	$ 3,147	$ 1,542	$ 4,689	$ 3,027	$ 1,757	$ 4,784

Note:
1. The number of employees of the Company for the current year and the previous year was 609 and 555, respectively, with the number of directors not concurrently serving as employees being 5 and 6, respectively. The calculation basis is consistent with the employee benefits expenses.
2.
(1) The average employee benefits expenses for the current year were NT$1,371 thousand ("Total employee benefits expenses for the current year - Total directors' remuneration" / "Number of employees for the current year - Number of directors not concurrently serving as employees").
The average employee benefits expenses for the previous year were NT$1,435 thousand ("Total employee benefits expenses for the previous year - Total directors' remuneration" / "Number of employees for the previous year - Number of directors not concurrently serving as employees").
(2) The average salary expenses for the current year were NT$1,116 thousand ("Total salary expenses for the current year" / "Number of employees for the current year - Number of directors not concurrently serving as employees").
The average salary expenses for the previous year were NT$1,149 thousand ("Total salary expenses for the previous year" / "Number of employees for the previous year - Number of directors not concurrently serving as employees").
(3) The average salary expenses adjustment changes: -2.87% ("Average salary expenses for the current year - Average salary expenses for the previous year" / Average salary expenses for the previous year).

(4) Supervisor's remuneration for this Year was NT$0 thousand, and for the previous year, it was NT$0 thousand.

(5) The amount and distribution method of Directors' Remuneration: The remuneration for The Company's Directors shall not exceed five percent according to the Articles of Incorporation. The remuneration for Directors executing business is determined in accordance with the "Remuneration Payment Plan for Directors and Managerial Officers," based on their level of participation in and contribution to the Company's operation, and taking into account the standards among industry peers.

(6) Managerial officers and employees' remunerations: The Company's remuneration policy for managerial officers and employees primarily includes salaries, job allowances, severance pay, various bonuses, and employees' remunerations. Salaries are determined by collectively assessing the human resources market in Taiwan, categories of similar industries, and the Company's salary and benefits policy. Employees' remuneration is in accordance with the Articles of Incorporation, which specifies no less than 10%, with no less than 50% of the amount allocated for employees' remuneration in the current year designated for the remuneration of basic-level employees. Year-end bonuses are distributed based on the Company's operational performance and the individual performance of employees.

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AI assistant

MSS — Audit Report / Information 2026

52639_rns_2026-05-25_5c0bbc06-6df6-45e5-94c9-f214f22ae208.pdf

Individual Financial Statements and Auditor's Annual Review Report

Notice to Readers

Auditor's Annual Review Report

Audit opinion

Basis for Audit Opinion

Key audit matters

MSSCORPS CO., Ltd.

Individual Statement of Changes in Equity

4. Summary of Significant Accounting Policies

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

6. Cash and cash equivalents

9. Notes Receivable, Accounts Receivable, and Other Receivables

a. Notes Receivable

10. Investments Accounted for Using the Equity Method

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

26. Cash Flow information

a. Non-cash transaction

b. Liability changes from financing activities

27. Capital risk management

28. Financial instruments

Sensitivity analysis

31. Significant Contingent Liabilities and Unrecognized Contractual Commitments

Material legal matters

33. Disclosure of notes

§SCHEDULE OF IMPORTANT ACCOUNTING ITEMS TABLE OF CONTENTS§

More from MSS

MSS Audit Report / Information 2026