Stock code: 3051

Optimax Technology Corporation and its Subsidiaries

Consolidated financial Statements for the years
Ended December 31, 2025 and 2024 with
Independent Auditors’ Report

Address: No. 37, Lane 659, Pingdong Rd, Pingzhen District, Taoyuan
City 32465, Taiwan(R.O.C)

Tel: (03) 460-6677

This English version of the financial report is a translation from the original Chinese version. It is unaudited by certified public accountants.

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

Optimax Technology Corporation Annual Report

Description	Pages
1. Cover	1
2. Table of Contents	2
3. Statement on consolidated financial statements of related enterprises	3
4. CPA's audit report	4~9
5. Consolidated Balance Sheet	10~11
6. Consolidated Comprehensive Profit and Loss Statement	12~13
7. Consolidated Statement of Changes in Equity	14
8. Consolidated Cash Flow Statement	15~16
9. Notes to the Consolidated Financial Report	17~85
(1) Company history	17
(2) Date and procedures for approving financial reports	17
(3) Application of newly released and revised standards and interpretations	17~19
(4) Summary explanation of significant accounting policies	17~31
(5) Main sources of uncertainty in major accounting judgments, estimates and assumptions	31~32
(6) Description of important accounting items	32~69
(7) Related party transactions	69~73
(8) Pledged assets	73~74
(9) Significant contingent liabilities and unrecognized contractual commitments	74
(10) Major disaster losses	74
(11) Significant post-period events	74
(12) Others	74
(13) Matters disclosed in the notes	74
1. Information related to major transaction matters	74
2. Information related to reinvestment business	75
3. Mainland investment information	75
(14) Department information	75~77

Statement on consolidated financial statements of related companies

The Company shall be included in the preparation of consolidated financial reports of related companies and the companies and entities thereof in accordance with the "Standards for the Preparation of Related Business Combined Business Reports and Related Business Combined Financial Statements and Related Reports" for the fiscal year of the R.O.C (from January 1, 2019 to December 31, 2024). The companies that should be included in the preparation of consolidated financial reports of parent and subsidiary companies under IFRS No. 10 are all the same, and the relevant information that should be disclosed in the consolidated financial report of related companies has been disclosed in the consolidated financial report of parent and subsidiary companies mentioned above. No separate consolidated financial report of related companies will be prepared.

hereby declare

Company Name: Optimax Technology Corporation

Person in charge: CHAO, JIH-YUN

March 12, 2026

Independent Auditor's Report

NO.18231140CA

Optimax Technology Corporation Public Certificate:

Opinion

The consolidated balance sheets of Optimax Technology Corporation and its subsidiaries as of December 31, 2024 and 2024, as well as the consolidated comprehensive income statement, consolidated statement of changes in equity, consolidated cash flow statement, and notes to the consolidated financial report (including a summary of significant accounting policies) from January 1 to December 31, 2024 and 2024, have been reviewed by our accountants.

In the opinion of this accountant, based on the audit results of this accountant and the audit reports of other accountants (please refer to the other matters paragraph), the consolidated financial report of above is in all material respects in accordance with the financial reporting standards of securities issuers and the International Financial Reporting Standards approved and issued by the Financial Supervisory Commission. The preparation of international accounting standards, interpretations and interpretation announcements is sufficient to adequately express the consolidated financial position of Optimax Technology Corporation and its subsidiaries as of December 31, 2024 and 2024, as well as the consolidated financial performance and consolidated cash flow from January 1 to December 31, 2024 and 2024.

Basis for Opinion

This accountant performs the audit work in accordance with the rules and auditing standards for auditing financial statements entrusted by accountants. The CPA's responsibilities under these standards are further described in the CPA's Responsibilities for Review of Consolidated Financial Reports section. The personnel of the accounting firm affiliated to the accounting firm who are subject to independence regulations have maintained detachment from Optimax Technology Corporation and its subsidiaries in accordance with the professional ethics of accountants, and have performed other responsibilities under the regulations. Based on the audit results of the accountant and the audit reports of other accountants, the accountant believes that sufficient and appropriate audit evidence has been obtained as the basis for expressing the audit opinion.

Key Auditor Matters

The key audit matters refer to the most important matters in the audit of the consolidated financial report of Optimax Technology Corporation and its subsidiaries for the year 2024 based on the professional judgment of this accountant. These matters have been addressed in the process of reviewing the consolidated financial report as a whole and forming an audit opinion. The accountant does not express an independent opinion on these matters.

The key review matters of the consolidated financial report of Optimax Technology corporation. and its subsidiaries in 2024 are as follows:

Inventory evaluation

Please refer to Note 4(6) of the consolidated financial report for the accounting policies of inventories; please refer to Note 5 of the consolidated financial report for the uncertainty of accounting estimates and assumptions for inventory evaluation; please refer to Note 6(6) of the consolidated financial report for descriptions of inventory accounting items.

The main business items of Optimax Technology corporation and its subsidiaries are the manufacturing and sales of polarizers. Since inventory is easily affected by the market demand of the products used and the yield rate of the production process, resulting in inventory depreciation or sluggish losses, inventory evaluation is listed as one of the key inspection items.

The accountant performs the following main audit procedures:

Review the inventory age report and analyze the changes in inventory age in each period.
Evaluate the rationality of accounting policies, such as policies on inventory depreciation or sluggish provision.
Evaluate whether the inventory evaluation is in accordance with the company's established accounting policies.
Obtain the inventory net realizable value statement at the end of the financial reporting period, check the commodity selling price or purchase price and other data sources used for the net realizable value, and recalculate the accrued inventory allowance for depreciation losses to confirm that the implementation of such accounting estimates is consistent with its policies.
Understand the inventory management process, review its annual inventory plan and participate in annual inventory, and check inventory details to evaluate the effectiveness of management in distinguishing and controlling obsolete inventory.

Impairment assessment of property, plant and equipment

Please refer to Note 4 (11) of the consolidated financial report for the accounting policy for impairment of non-financial assets; please refer to Note 5 of the consolidated financial report for the uncertainty of accounting estimates and assumptions for the assessment of impairment of non-financial assets; for descriptions of accounting items of real estate, plant and equipment, please refer to Note 6 (8) of the consolidated financial report.

Optimax Technology Corporation and its subsidiaries are highly capitalized industries and are facing interference from many factors such as the economic environment and industry competition. Because assessing the impairment of real estate, plant and equipment requires processes such as forecasting and discounting future cash flows to estimate the recoverable amount, and this process is inherently highly uncertain, the assessment of impairment of real estate, plant and equipment is listed as one of the key audit items.

The accountant performs the following main audit procedures:

Understand the relevant policies and procedures for impairment assessment, and evaluate the rationality of management's identification of possible impairments to cash-generating units.
Regarding the recoverable amount of the independent valuation report issued by a third party appointed by Optimax Technology corporation. and its subsidiaries, review the rationality of the relevant assumptions and evaluate the qualifications and independence of the valuer.

Other matters

The financial reports of related enterprises recognized using the equity method were not reviewed by this accountant but were reviewed by other accountants. Therefore, the opinions expressed by our accountants on the consolidated financial report above are based on the audit reports of other accountants regarding the amounts listed in the financial reports of the aforementioned related enterprises recognized using the equity method. As of December 31, 2024, the balance of the above-mentioned investments using the equity method that had not been reviewed by the accountant was NT$36,000,000, accounting for 1% of the total assets; the share of comprehensive profits and losses of associated enterprises recognized using the equity method in 2024 was NT$71,663,000, accounting for (21)% of the total comprehensive profits and losses.

Optimax Technology Corporation has prepared individual financial reports for the 2024 and 2024 years of the R.O.C, and the audit report with unqualified

opinions and other matters paragraphs issued by our accountants has been recorded for reference.

Responsibilities of Management and Governance entities for Consolidated Financial reporting

The responsibility of management is to prepare consolidated financial reports that represent fair statements in accordance with the financial reporting standards for securities issuers and the International Financial Reporting Standards, International Accounting Standards, Interpretations and Interpretations that have been approved and issued by the Financial Supervisory Commission and are effective, and to maintain necessary internal controls related to the preparation of consolidated financial reports to ensure that the consolidated financial reports do not contain material misrepresentations resulting from fraud or error.

When preparing consolidated financial reports, the management's responsibilities also include assessing the ability of Optimax Technology corporation and its subsidiaries to continue operating, the disclosure of relevant matters, and the adoption of the going concern accounting basis, unless the management intends to liquidate Optimax Technology corporation and its subsidiaries or cease operations, or there is no practical alternative to liquidation or suspension of operations.

The governance units (including the audit committee) of Optimax Technology corporation and its subsidiaries are responsible for supervising the financial reporting process.

Accountants' responsibilities for reviewing consolidated financial reports

The purpose of the CPA's audit of the consolidated financial report is to obtain reasonable confidence as to whether there are any material misrepresentations resulting from fraud or error in the consolidated financial report as a whole, and to issue an audit report. Reasonable certainty means a high degree of confidence, but there is no guarantee that the review work performed in accordance with auditing standards will be able to detect material misrepresentations in the consolidated financial report. Misrepresentation may result from fraud or error. Misrepresentations of individual amounts or aggregate amounts are considered material if they can reasonably be expected to affect the economic decisions of users of consolidated financial statements.

Our accountants use professional judgment and professional skepticism when conducting audits in accordance with auditing standards. The accountant also performs the following tasks:

Identify and assess the risk of material misrepresentation of the consolidated financial report due to fraud or error; design and implement appropriate countermeasures for the assessed risks; and obtain sufficient and appropriate audit evidence as the basis for the audit opinion. Because fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls, the risk of not detecting a material misrepresentation resulting from fraud is higher than that resulting from error.
Obtain the necessary understanding of the internal controls related to the audit in order to design appropriate audit procedures under the circumstances, but the purpose is not to express opinions on the effectiveness of the internal controls of Optimax Technology Corporation and its subsidiaries.
Evaluate the appropriateness of the accounting policies adopted by the management and the reasonableness of the accounting estimates and related disclosures made.
Based on the audit evidence obtained, make a conclusion on the appropriateness of the management's adoption of the going concern accounting basis and whether there are significant uncertainties in events or circumstances that may cast significant doubt on the ability of Optimax Technology corporation and its subsidiaries to continue operating. If the accountant believes that there are significant uncertainties in such events or circumstances, the auditor must remind users of the consolidated financial reports in the audit report to pay attention to the relevant disclosures in the consolidated financial reports, or revise the audit opinions when such disclosures are inappropriate. The CPA's conclusion is based on the audit evidence obtained as of the date of the audit report. However, future events or circumstances may cause Optimax Technology corporation and its subsidiaries to no longer have the ability to continue operating.
Evaluate the overall presentation, structure and content of the consolidated financial report (including relevant notes), and whether the consolidated financial report appropriately expresses relevant transactions and events.
Obtain sufficient and appropriate verification evidence for the financial information of the entities within the group to express an opinion on the consolidated financial report. The accountant is responsible for the guidance, supervision and execution of group audit cases, and is responsible for forming group audit opinions.

The matters that the accountant communicates with the governance unit include the planned scope and time of the audit, as well as significant audit findings (including significant deficiencies in internal control identified during the audit process).

The accountant also provides the governance unit with a statement that the personnel of the accounting firm that are subject to independence regulations have complied with the independence-related statements in the professional ethics for accountants, and communicates with the governance unit all relationships and other matters that may be considered to affect the CPA's independence (including relevant protective measures).

Based on the matters communicated with the governance unit, the accountant decided on the key audit matters for the review of the consolidated financial report of Optimax Technology corporation and its subsidiaries in 2024. The accountant will describe these matters in the audit report, unless the public disclosure of specific matters is prohibited by law, or in extremely rare circumstances, the accountant decides not to communicate specific matters in the audit report because the negative impact of such communication can reasonably be expected to outweigh the public interest that is enhanced.

BAKER TILLY CLOCK & CO

CPA SAM H. L. WU

CPA LAI CHIA-YU

Approval No: The Financial Supervisory Certified 6 No. 09600000880

The Financial Supervisory Certificate Revies No. 1050043092

March 12, 115th year of the R.O.C

Optimax Technology Corporation and its Subsidiaries
Consolidated Balance Sheet
December 31, 2025 and December 31, 2024

Unit: Thousands of NTD

assets		Note	December 31, 2025		December 31, 113
code	Accounting project		Amount	%	Amount	%
	Current assets
1100	Cash and cash equivalents	6(1)	$ 159,062	4	$ 148,275	3
1136	Financial assets measured at amortized cost – current	6(3), 8	66,029	2	116,959	3
1170	Accounts receivable	6(4, 20), 7	596,749	15	715,379	17
1200	Other receivables	6 (5), 7	12,349	—	26,242	1
130x	Inventory	6(6)	496,776	13	603,022	14
1410	Advance payment		8,534	—	7,157	—
1476	Other financial assets - current	8	21,445	1	3,521	—
1470	Other current assets	6 (4)	1,133	—	1,312	—
11xx	Total current assets		1,362,077	35	1,621,867	38
	Non-current assets
1517	Financial assets measured at fair value through other comprehensive profit or loss – non-current	6 (2)	170,713	4	—	—
1550	Investments using the equity method	6(7)	4,589	—	36,000	1
1600	Property, plant and equipment	6(8), 8	1,402,276	36	1,495,759	35
1755	Right-of-use assets	6(9)	8,689	—	11,286	—
1760	Investment real estate	6(11), 8	864,303	22	827,225	19
1840	Deferred tax assets	6y(24)	92,475	2	116,121	3
1975	Net defined benefit assets - non-current	6(17)	15,020	1	13,340	1
1900	Other non-current assets	6(2), 8	7,890	—	128,321	3
15xx	Total non-current assets		2,565,955	65	2,628,052	62
1xxx	Total assets		$ 3,928,032	100	$ 4,249,919	100

(continued on next page)

Optimax Technology Corporation and its Subsidiaries
Consolidated Balance Sheet
December 31, 2025 and December 31, 2024

Unit: Thousands of NTD

Liabilities and Owner's Equity		Note	December 31, 2025		December 31, 2024
code	Accounting project		Amount	%	Amount	%
	Current liabilities
2100	Bank short term loans	6(12)	$ 271,991	7	$ 302,166	7
2170	Accounts payable	6(13), 7	41,504	1	33,652	1
2200	Other payables	6(14)	147,158	4	166,689	4
2230	Current income tax liability	6(24)	36,705	1	870	—
2250	Liability Provision – Current	6(15)	17,346	—	16,565	—
2280	Lease liability – current	6(9)	4,475	—	3,851	—
2322	Long term loans due within one year	6(16)	728,600	19	21,600	1
2365	Reimbursement Liabilities – current	6(20)	1,457	—	3,767	—
2300	Other current liabilities	6(20)	8,104	—	15,849	—
21xx	Total current liabilities		1,257,340	32	565,009	13
	Non-current liabilities
2540	Bank long term loan	6(16)	101,400	3	980,000	23
2570	Deferred income tax liability	6(24)	4,805	—	8,394	—
2580	Lease liability – non-current	6(9)	5,629	—	8,750	—
2600	Other non-current liabilities		79,527	2	98,852	3
25xx	Total non-current liabilities		191,361	5	1,095,996	26
2xxx	Total liabilities		1,448,701	37	1,661,005	39
	Rights and interests
3110	Common stock capital	6(18)	1,670,000	43	1,690,000	40
	Retained earnings
3310	Statutory surplus reserve		131,249	3	101,883	2
3320	Special surplus reserve		2,376	—	29,948	1
3350	Undistributed earnings		688,669	17	811,058	19
3400	Other rights and interests		28,636	1	(2,376)	—
3500	Treasury stocks		(41,599)	(1)	(41,599)	(1)
31xx	Total equity attributable to owners of the parent company		2,479,331	63	2,588,914	61
3xxx	Total equity		2,479,331	63	2,588,914	61
	Total liabilities and equity		$ 3,928,032	100	$ 4,249,919	100

(Please refer to the accompanying notes to the consolidated financial statements)

Chairman: CHAO, JIH-YUN Manager: CHAO, WEI-SON Accounting Supervisor: CHEN, TSUNG TSE

Optimax Technology Corporation and its Subsidiaries
Consolidated Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024

Unit: Thousands of NTD

code	Description	Note	2025		2024
			Amount	%	Amount	%
4000	Operating income	6(20), 7	$ 1,875,460	100	$ 1,887,383	100
5000	Operating costs	6(6, 25), 7	(1,268,354)	(68)	(1,193,695)	(63)
5900	Operating profit		607,106	32	693,688	37
6000	Operating expenses	6(25),7
6100	Promotional expenses		(145,948)	(8)	(146,019)	(8)
6200	Overhead		(159,923)	(9)	(148,570)	(8)
6300	Research and development expenses		(46,082)	(2)	(42,308)	(2)
6450	Expected credit impairment benefit (loss)	6(4), 7	10,081	1	(4,089)	—
	Total operating expenses		(341,872)	(18)	(340,986)	(18)
6900	Operating Income		265,234	14	352,702	19
7000	Non-operating income and expenses
7100	Interest income	7	2,575	—	3,883	—
7010	Other income	6(10, 21)	62,012	4	71,911	5
7020	Other profits and losses	6(22)	(49,924)	(3)	44,458	2
7050	Financial cost	6(23)	(29,343)	(2)	(30,554)	(2)
7055	Expected credit impairment benefit	6(5), 7	9,493	1	513	—
7060	Share of profits and losses of associated enterprises recognized using the equity method	6(7)	(34,699)	(2)	(68,843)	(4)
	Total non-operating income and expenses		(39,886)	(2)	21,368	1
7900	Net profit before tax		225,348	12	374,070	20
7950	Income tax expense	6(24)	(57,420)	(3)	(36,800)	(2)
8200	Net Income		167,928	9	337,270	18
8300	Other comprehensive gains and losses
8310	Items not reclassified to profit or loss
8311	Remeasurement numbers for defined benefit plans	6(17)	1,530	—	5,002	—
8316	At fair value through other comprehensive profit or loss
	Unrealized evaluation of measured equity instrument investments	6 (18)	33,288	2	—	—
	Price profit and loss
	How to recognize subsidiaries using the equity method
8336	Other comprehensive gains and losses are measured at fair value	6 (18)	(5,537)	—	—	—
	Unrealized gains and losses on equity instruments
8360	Items that may be subsequently reclassified to profit or loss
	Conversion of financial
8361	Statements of foreign operating institutions exchange difference	6 (18)	3,484	—	1,349	—
8399	Relates to items that may be	6(18, 24)	(223)	—	—	—

	reclassified to profit or loss income tax
	Other comprehensive gains and losses for the period (net after tax)		32,542	2	6,351
8500	Total comprehensive Income		$ 200,470	11	$ 343,621
8600	Net profit is attributed to:
8610	Parent company owner		$ 167,928	9	$ 337,270
8700	Total comprehensive profit and loss is attributable to:
8710	Parent company owner		$ 200,470	11	$ 343,621
	Earnings per share:
9750	Basic	6(19)	$ 1.01		$ 2.01
9850	Diluted		$ 1.01		$ 2.01

(Please refer to the accompanying notes to the consolidated financial statements)

Chairman: CHAO, JIH-YUN Manager: CHAO, WEI-SON Accounting Supervisor: CHEN, TSUNG-TSE

Optimax Technology Corporation and its Subsidiaries

Consolidated statement of Changes in Equity

For the Years Ended December 31, 2025 and 2024

Unit: Thousands of NTD

Description	Equity attributable to the owners of the parent company							Total equity
	Common stock	Retained earnings			Other adjustments		Treasury stocks
		Statutory Surplus reserve	Special Surplus reserve	Undistributed earnings	Foreign operating organizations Financial statement conversion exchange difference	Unrealized gains(losses) from financial assets measured at fair value through other comprehensive gains(losses)
Balance as of January 1, 2023	$ 1,700,000	$ 81,278	$ 35,651	$ 700,304	$ (3,719)	$ (26,229)	$ (41,599)	$ 2,445,686
Earnings allocation and distribution:
Set aside statutory surplus reserve	—	20,605	—	(20,605)	—	—	—	—
Special surplus reserve reversal	—	—	(5,703)	5,703	—	—	—	—
Common stock cash dividends	—	—	—	(168,000)	—	—	—	(168,000)
Net profit for this period	—	—	—	337,270	—	—	—	337,270
Other comprehensive gains and losses for the period	—	—	—	5,002	1,349	—	—	6,351
Total comprehensive profit and loss for the period	—	—	—	342,272	1,349	—	—	343,621
Disposal of equity instruments measured at fair value through other comprehensive profit or loss	—	—	—	(26,223)	—	26,223	—	—
Treasury stock buyback	—	—	—	—	—	—	(32,393)	(32,393)
Cancellation of treasury shares	(10,000)	—	—	(22,393)	—	—	32,393	—
Balance as of December 31, 2024	$ 1,690,000	$ 101,883	$ 29,948	$ 811,058	$ (2,370)	$ (6)	$ (41,599)	$ 2,588,914
Balance as of January 1, 2024	$ 1,690,000	$ 101,883	$ 29,948	$ 811,058	$ (2,370)	$ (6)	$ (41,599)	$ 2,588,914
Earnings allocation & distribution:
Set aside statutory surplus reserve	—	29,366	—	(29,366)	—	—	—	—
Special surplus reserve reversal	—	—	(27,572)	27,572	—	—	—	—
Common stock cash dividends	—	—	—	(250,500)	—	—	—	(250,500)
Net profit for this period	—	—	—	167,928	—	—	—	167,928
Other comprehensive gains and losses for the period	—	—	—	1,530	3,261	27,751	—	32,542
Total comprehensive profit and loss for the period	—	—	—	169,458	3,261	27,751	—	200,470
Treasury stock buyback	—	—	—	—	—	—	(59,553)	(59,553)
Cancellation of treasury shares	(20,000)	—	—	(39,553)	—	—	59,553	—
Balance as of December 31, 2024	$ 1,670,000	$ 131,249	$ 2,376	$ 688,669	$ 891	$ 27,745	$ (41,599)	$ 2,479,331

(Please refer to the accompanying notes to the consolidated financial statements)

Chairman: CHAO, JIH-YUN

Manager: CHAO, WEI-SON

Accounting Supervisor: CHEN, TSUNG-TSE

Optimax Technology Corporation and its Subsidiaries
Consolidated Statements of Cash Flows
For the Year Ended December 31, 2025 and 2024
Unit: Thousands of NTD

Description	2025	2024
Cash flow from operating activities:
Net profit before Income tax	$ 225,348	$ 374,070
Adjustment items:
Income and expense items
Depreciation expense	76,895	76,535
Amortization expense	647	49
Expected credit impairment (profit) losses	(19,574)	3,576
interest expense	29,343	30,554
Dividend income	(504)	—
Interest income	(2,575)	(3,883)
Share of profits and losses of associated enterprises recognized using the equity method	34,699	68,843
Disposal of losses to real property, plant and equipment	19,503	12,053
Disposal of losses on investment real estate	32	20
Non-financial asset impairment reversal benefits	(6,777)	(4,332)
Unrealized foreign currency exchange losses (gains)	9,262	(47,033)
Deferred revenue transferred to revenue	(2,620)	(2,693)
Changes in assets/liabilities related to operating activities
Accounts receivable	122,071	(133,777)
Other receivables	14,559	3,113
Inventory	106,246	83,932
Advance payment	(1,373)	4,583
Other current assets	179	110
Net defined benefit assets	(150)	(1,910)
Accounts payable	7,256	(1,230)
Other payables	(17,625)	11,260
Other current liabilities	(9,274)	2,350
Cash inflow from operations	585,568	476,190
Interest charged	2,771	3,760
Interest paid	(29,556)	(30,947)
Income tax paid	(1,751)	(13,023)
Net cash inflow from operating activities	557,032	435,980

(continued on next page)

Optimax Technology Corporation and its Subsidiaries
Consolidated Statements of Cash Flows
For the Year Ended December 31, 2025 and 2024
Unit: Thousands of NTD

Description	2025	2024
Cash flows from investing activities:
Acquisitions are measured at fair value through other comprehensive profit or loss amount of financial assets	$ (26,459)	$ —
Acquiring financial assets measured at amortized cost	—	(89,997)
Disposal of financial assets measured at amortized cost	51,320	—
Increase in prepaid investment	—	(120,000)
Acquisition of property, plant and equipment	(22,359)	(14,066)
Disposal of property, plant and equipment	1,201	714
Acquire investment real estate	—	(50,546)
Dividends received	504	—
Other financial assets (increase) decrease	(17,924)	79,411
Increase in other non-current assets	(1,148)	(1,322)
Net cash outflow from investing activities	(14,865)	(195,806)
Cash flow from financing activities:
Bank short-term loans (decrease) increase	(30,815)	107,229
Bank long-term loans	—	270,000
Repay long-term loans	(171,600)	(478,400)
Deposit margin increase	740	61,676
Margin deposit reduced	(17,704)	—
Pay cash dividends	(250,500)	(168,000)
Lease principal repayment	(4,165)	(3,651)
Treasury stock buyback cost	(59,553)	(32,393)
Net cash outflow from financing activities	(533,597)	(243,539)
The impact of exchange rate changes on cash & cash equivalents	2,217	1,032
Increase (decrease) in cash & cash equivalents during the period	10,787	(2,333)
Opening cash and cash equivalent balances	148,275	150,608
Closing cash and equivalent cash balances	$ 159,062	$ 148,275

(Please refer to the accompanying notes to the consolidated financial statements)

Chairman: CHAO, JIH-YUN Manager: CHAO, WEI-SON Accounting Supervisor: CHEN, TSUNG-TSE

Optimax Technology Corporation and its Subsidiaries

Notes to Consolidated Financial Report

The 2025 and 113th years of the R.O.C

(Amounts are in NT$1,000 unless otherwise noted)

1. Company history

Optimax Technology Corporation (hereinafter referred to as the company) was established in March 1987. The main business items of the company and its subsidiaries (hereinafter referred to as the consolidated company) are the manufacturing and sales of polarizing plates.

The company was approved for listing in August 1991, and its shares have been listed and traded on the Taiwan Stock Exchange since October 1991.

These consolidated financial reports are expressed in New Taiwan Dollars, the Company's functional currency.

2. Date and procedures for approving financial reports

This consolidated financial report was approved by the board of directors on March 12, 2025.

3. Application of newly released and revised standards and interpretations

(1) The impact of adopting the newly released and revised IFRS accounting standards approved and effective by the Financial Supervisory Commission (hereinafter referred to as the "Financial Supervisory Commission")

The following table summarizes the newly released, revised and revised standards and interpretations of the IFRS accounting standards that were approved and issued by the Financial Supervisory Commission and became effective in 2024:

Newly released/amended/revised standards and explanations	International Accounting Standards Board Effective date will be announced
Amendment to IAS 21 “Lack of Convertibility”	January 1, 2025 year of the R.O.C

The application of the above standards and interpretations to the merged company will have no significant impact on the financial position and financial performance of the merged company.

(2) The impact of not yet adopting the newly released and revised IFRS accounting standards approved by the Financial Supervisory Commission

The following table summarizes the newly released, revised and revised standards and interpretations of the IFRS accounting standards approved by the Financial Supervisory Commission and applicable in 2025:

Newly released/amended/revised standards and explanations	International Accounting Standards Board Effective date will be announced
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"	January 1, 115th year of the R.O.C
Amendments to IFRS 9 and IFRS 7 "Contracts involving nature-dependent electricity"	January 1, 115th year of the R.O.C
IFRS 17 "Insurance Contracts"	January 1, 112 Years of the R.O.C
Amendments to IFRS 17 "Contracts of Insurance"	January 1, 112 Years of the R.O.C
Amendments to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 – Comparative Information"	January 1, 112 Years of the R.O.C
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 115th year of the R.O.C

The merged company has assessed that the above standards and interpretations have no significant impact on the financial position and financial performance of the merged company.

(3) The impact of IFRS accounting standards that have been issued by the International Accounting Standards Board but have not yet been approved by the Financial Supervisory Commission

The following table summarizes the newly issued, revised and revised standards and interpretations that have been issued by the International Accounting Standards Board but have not yet been incorporated into the IFRS accounting standards approved by the Financial Supervisory Commission:

Newly released/amended/revised standards and explanations	International Accounting Standards Board Effective date will be announced
Amendments to IFRS 10 and IAS 28 "Asset sales or contributions between investors and their affiliates or joint ventures"	International accounting standards Board decision
IFRS 18 "Presentations and Disclosures in Financial Statements"	January 1, 116th year of the R.O.C (Note)
IFRS 19 "Subsidiaries not publicly accountable: Disclosure"	January 1, 116th year of the R.O.C
Amendments to IAS 21 "Conversion to Currency Expression of High Inflation"	January 1, 116th year of the R.O.C
Note: The Financial Supervisory Commission announced in a press release on September 25, 2020 that publicly listed companies will apply International Financial Reporting Standards No. 18 (hereinafter referred to as IFRS 18) starting from 2017. If an enterprise needs to apply IFRS 18 in advance, it may choose to apply IFRS 18 in advance after the Financial Supervisory Commission approves IFRS 18.

Except for the explanation below, the merged company has assessed that the above standards and interpretations have no significant impact on the financial position and financial performance of the merged company.

IFRS 18 "Presentation and Disclosures in Financial Statements" replaces International Accounting Standard 1 and updates the structure of the consolidated income statement, adds disclosures on management

performance measurement, and strengthens the principles of aggregation and segmentation applied in the main financial statements and notes.

4. Summary of significant accounting policies

(1) Comply with the statement

This consolidated financial report has been prepared in accordance with the financial reporting standards for securities issuers and the International Financial Reporting Standards, International Accounting Standards, Interpretations and Interpretations (hereinafter referred to as IFRSs) approved and issued by the Financial Supervisory Commission.

(2) Basis for compilation

Except for financial instruments measured at fair value and net defined benefit assets recognized as the present value of defined benefit obligations less the fair value of plan assets, this consolidated financial report is prepared on the historical cost basis.

The preparation of financial reports in compliance with IFRSs requires the use of some important accounting estimates. The management also needs to use its judgment in the application of the consolidated company's accounting policies. For items involving high judgment or complexity, or items involving significant assumptions and estimates in the consolidated financial report, please refer to Note 5.

(3) Basis of merger

Principles for the preparation of consolidated financial reports:

This consolidated financial report includes the financial reports of the Company and entities (subsidiaries) controlled by the Company.

The consolidated comprehensive income statement has included the operating profits and losses of the acquired or disposed subsidiaries for the current period from the acquisition date or to the disposal date.

The subsidiaries' financial reports have been adjusted to bring their accounting policies into line with those of the combined company.

In preparing consolidated financial reports, transactions, account balances, income and expenses between entities have been eliminated in full.

When the change in the merging company's ownership interest in the subsidiary does not result in a loss of control, it is treated as an equity transaction. The carrying amounts of the consolidated companies and non-controlling interests have been adjusted to reflect changes in their relative interests in subsidiaries. The difference between the adjustment amount of non-controlling interests and the fair value of the consideration paid or received is directly recognized as equity and attributed to the owners of the Company.

When the merged company loses control of a subsidiary, the profit or loss on disposal is the difference between: (1) the fair value of the consideration received and the remaining investment in the former subsidiary based on the total fair value on the date of loss of control, and (2) the total book amount of the assets (including goodwill), liabilities and non-controlling interests of the former subsidiary based on the date of

loss of control. The combined company's accounting treatment for all amounts related to the subsidiary recognized in other comprehensive profits and losses is the same as the basis that the combined company must follow if it directly disposes related assets or liabilities.

Subsidiaries included in the consolidated financial report:

The detailed information of the Company's subsidiaries as at the end of the reporting period is as follows:

investment company Name	Subsidiary name	Main business	Place of establishment and operation
Optimax	Art Optronics Corp. (Art Optronics Corp)	Trading industry	Taiwan
Optimax	OPTIMAX
OPTOELECTRONIC
(MAURITIUS) CORP. (OOMC)	Investment industry	Mauritius
OOMC	Optimax Technology (Suzhou)
CO., LTD. (OPTIMAX SUZHOU)	Polarizing plate
Manufacturing and sales	Suzhou, China
The name of Subsidiaries	Percentage of ownership interest held by the Company
---	---	---
	December 31, 2025	December 31, 2024
Art Optronics Corp	100%	100%
OOMC	100%	100%
Optimax Suzhou	100%	100%

Subsidiaries not included in the consolidated financial report: None.
Adjustments and treatments for different accounting periods of subsidiaries: None.
Significant restrictions: None.
Subsidiaries with significant non-controlling interests in the merged company: None.

(4) Criteria for distinguishing current and non-current assets and liabilities

Assets that meet one of the following conditions are classified as current assets; assets that are not current assets are classified as non-current assets:

(1) Those who expect to realize the asset during the normal operating cycle, or intend to sell or consume it.
(2) Those held mainly for trading purposes.
(3) Expected to be realized within twelve months after the balance sheet date.
(4) Cash or cash equivalents, except those that are restricted from being exchanged or used to settle liabilities at least twelve months after the balance sheet date.

Liabilities that meet one of the following conditions are classified as current liabilities; liabilities that are not current liabilities are non-current liabilities:

(1) Those expected to be repaid during the normal operating cycle.

(2) Those held mainly for trading purposes.
(3) Those that are expected to be due and repaid within twelve months after the balance sheet date (even if a long-term refinancing or rescheduled payment agreement has been completed between the balance sheet date and the date of issuance of financial reports, it is also a current liability).
(4) Liabilities for which there is no substantial right on the balance sheet date to defer the repayment period to at least twelve months after the balance sheet date.

(5) Foreign currency

When each entity prepares financial reports, any transaction in a currency other than the individual's functional currency (foreign currency) shall be converted into functional currency records based on 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 delivery or conversion of monetary items are recognized in profit or loss in the current period.

Foreign currency non-monetary items measured at fair value are converted at the exchange rate on the day when the fair value is determined, and the resulting exchange differences are listed in current profits and losses. However, if changes in fair value are recognized in other comprehensive gains and losses, the resulting exchange differences are listed in other comprehensive gains and losses.

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

When preparing consolidated financial reports, the assets and liabilities of foreign operating entities (including subsidiaries operating in countries or using currencies different from the Company's) are translated into New Taiwan dollars at the exchange rate on each balance sheet date. Income and expense items are converted at the current average exchange rate, and the resulting exchange differences are listed in other comprehensive gains and losses.

If the merged company disposes of all the interests in a foreign operating entity, or disposes of part of the interests in a subsidiary of a foreign operating entity but loses control, all accumulated exchange differences related to the foreign operating entity will be reclassified to profit or loss.

If the partial disposal of a subsidiary of a foreign operating institution does not result in a loss of control, the accumulated exchange difference will be re-attributed to the non-controlling interests of the subsidiary in proportion and will not be recognized as profit or loss.

(6) Inventory

Inventories are measured at the lower of cost and net realizable value. Inventories are calculated based on the weighted average method. Net realizable value refers to the balance of the estimated selling price minus the estimated costs required to complete the project and the estimated costs required to complete the sale.

(7) Investments using the equity method – related enterprises

Affiliated enterprises refer to enterprises that have significant influence on the merged company but are not subsidiaries or joint ventures.

The merged company adopts the equity method for investment in related enterprises.

Under the equity method, investment in affiliated enterprises is initially recognized at cost, and the carrying amount after acquisition increases or decreases with the combined company's share of affiliated enterprise profits and losses and other comprehensive profits and losses and profit distribution. In addition, changes in the combined company's interests in related enterprises are recognized based on the shareholding ratio.

When an affiliated enterprise issues new shares, if the merged company fails to subscribe according to the shareholding ratio, resulting in a change in the shareholding ratio and an increase or decrease in the net equity value of the investment, the increase or decrease is adjusted to the capital reserve - the change in the net equity value of the associated enterprise is recognized using the equity method and the investment is recognized using the equity method. However, if the ownership interest in an affiliated enterprise is reduced due to failure to subscribe or acquire according to the shareholding ratio, the amount recognized in other comprehensive profits and losses related to the affiliated enterprise will be reclassified according to the reduction ratio. The accounting treatment basis is the same as the basis that the affiliated enterprise must follow if it directly disposes the relevant assets or liabilities. If the adjustment in the preceding paragraph should be debited to capital reserve, and if the capital reserve balance generated by the investment using the equity method is insufficient, the difference shall be debited to retained earnings.

When the combined company's share of losses to an associated enterprise is equal to or exceeds its equity in the associated enterprise (including the carrying amount of the investment in the associated enterprise under the equity method and other long-term interests that are essentially part of the combined company's net investment in the associated enterprise), the recognition of further losses will cease. The combined company recognizes additional losses and liabilities only to the extent that it has incurred legal obligations, constructive obligations or has made payments on behalf of related enterprises.

When assessing impairment, the combined company treats the entire carrying amount of the investment (including goodwill) as a single asset, compares the recoverable amount with the carrying amount, and performs impairment testing. The recognized impairment loss is not allocated to any assets that form part of the carrying amount of the investment, including

goodwill. Any reversal of impairment losses is recognized to the extent that the recoverable amount of the investment subsequently increases.

The merged company ceases to use the equity method from the date when its investment ceases to be an associated enterprise, and its retained interests in the original associated enterprise are measured at fair value. The difference between the fair value and the disposal price and the book amount of the investment on the date when it ceases to use the equity method is included in the current year's profit and loss. In addition, the accounting treatment basis for all amounts recognized in other comprehensive profits and losses related to the related enterprise is the same as the basis that the related enterprise must follow if it directly disposes the relevant assets or liabilities.

Profit and loss arising from counter-current, downstream and side-stream transactions between the merged company and its affiliated enterprises shall be recognized in the consolidated financial report only to the extent that they are not related to the merged company's interest in the affiliated enterprise.

(8) Real estate, plant and equipment

Property, plant and equipment are recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Real estate, plant and equipment under construction are recognized at cost less accumulated impairment losses. Costs include professional service fees and borrowing costs eligible for capitalization.

The samples produced to test whether the assets can operate normally before reaching the expected use status are measured at the lower of cost and net realizable value, and the sales price and cost are recognized in profit and loss.

When these assets are completed and reach their intended use, they are classified into the appropriate categories of property, plant and equipment and depreciation begins.

Except for self-owned land, which is not depreciated, other real estate, plants and equipment are depreciated separately on a straight-line basis within their useful lives. The combined company will review the estimated useful life, residual value and depreciation method at least at the end of each year, and defer the impact of changes in applicable accounting estimates.

When property, plant and equipment are declassified, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss.

(9) Investment real estate

Investment real estate is real estate held to earn rentals or capital appreciation, or both (including right-of-use assets that meet the definition of

investment real estate). Investment real estate also includes land held for which future use has not yet been determined.

Self-owned investment real estate is initially measured at cost (including transaction costs), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Investment real estate acquired under lease is initially measured at cost (including the original measured amount of the lease liability and the lease payments paid before the start of the lease), and is subsequently measured at cost less accumulated depreciation and accumulated impairment losses, and the remeasured amount of the lease liability is adjusted.

All investment properties are depreciated on a straight-line basis.

Investment real estate is classified as real estate, plant and equipment based on the carrying amount on the date when it is transferred to self-use.

Real estate, plant and equipment are classified as investment real estate based on their carrying amounts at the end of their own use.

When investment real estate is delisted, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss.

(10) Intangible assets

Obtained separately

Intangible assets with limited useful lives acquired separately are initially measured at cost and subsequently at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The combined company will review the estimated useful lives, residual values and amortization methods at least at the end of each year, and defer the impact of changes in applicable accounting estimates.

Remove columns

When an intangible asset is delisted, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss.

(11) Impairment of non-financial assets

The combined company assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets, investment properties and intangible assets may have been impaired. If any indication of impairment exists, estimate the asset's recoverable amount. If the recoverable amount of an individual asset cannot be estimated, the Merger Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs of disposal and value in use. If the recoverable amount of an individual asset or cash-generating unit is lower 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 the revised recoverable

amount, provided that the increased carrying amount does not exceed the carrying amount (less amortization or depreciation) that would have been determined if the asset or cash-generating unit had not recognized an impairment loss in previous years. The reversal of impairment losses is recognized in profit or loss.

(12) Financial instruments

Financial assets and financial liabilities are recognized in the consolidated balance sheet when the combined company becomes a party to the contractual terms of the instrument.

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

1. Financial assets

Conventional transactions of financial assets are subject to accounting recognition and delisting on the transaction date.

(1) Measurement types

The types of financial assets held by the combined company include financial assets measured at amortized cost, financial assets measured at fair value through profit or loss, and equity instrument investments measured at fair value through other comprehensive profit or loss.

A. Financial assets measured at amortized cost

If the investment financial assets of the combined company meet both of the following conditions, they will be classified as financial assets measured at amortized cost:

(a) It is held under a business model whose purpose is to hold financial assets to collect contractual cash flows; and
(b) The terms of the contract generate cash flows on a specific date, which cash flows are solely for the payment of principal and interest on the outstanding principal amount.

After original recognition, financial assets measured at amortized cost (including cash and cash equivalents, accounts receivable, other receivables and other financial assets measured at amortized cost) are measured at amortized cost based on the total carrying amount determined by the effective interest method less any impairment losses. Any foreign currency exchange gains and losses are recognized in profit and loss.

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

(a) For credit-impaired financial assets purchased or originated, interest income is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.
(b) For financial assets that are not purchased or originated with credit impairment, but subsequently become credit impaired,

interest income shall be calculated based on the effective interest rate multiplied by the amortized cost of the financial asset starting from the next reporting period after the credit impairment.

Cash equivalents include time deposits that are highly liquid within 3 months from the date of acquisition, can be converted into fixed amounts of cash at any time, and have little risk of value changes, and are used to meet short-term cash commitments.

B. Financial assets measured at fair value through profit or loss

Financial assets measured at fair value through profit or loss are mandated to be measured at fair value through profit or loss. Financial assets that are mandated to be measured at fair value through profit or loss include investments in equity instruments that are not designated as measured at fair value through other comprehensive profit or loss, and investments in debt instruments that do not qualify for classification as measured at amortized cost or at fair value through other comprehensive profit or loss.

Financial assets measured at fair value through profit or loss are measured at fair value, and their dividends, interest and gains or losses arising from remeasurement are recognized in profit or loss.

C. Equity instrument investments measured at fair value through other comprehensive gains and losses

At the time of original recognition, the combined company may make an irrevocable election to designate investments in equity instruments that are not held for trading and are not recognized by the business merger acquirer as contingent consideration to be measured at fair value through other comprehensive gains and losses.

Equity instrument investments measured at fair value through other comprehensive profit or loss are measured at fair value, and subsequent changes in fair value are reported in other comprehensive profit or loss and accumulated in other equity. When an investment is disposed of, accumulated profits and losses are transferred directly to retained earnings and are not reclassified as profit or loss.

Dividends from investments in equity instruments measured at fair value through other comprehensive profit or loss are recognized in profit or loss when the combined company's right to receive payment is established, unless the dividend clearly represents the recovery of part of the cost of the investment.

(2) Impairment of financial assets

A. The consolidated company assesses impairment losses on financial assets (including accounts receivable) and lease receivables measured at amortized cost based on expected credit losses on each balance sheet date.

B. Accounts receivable and lease receivables are recognized as allowance losses based on expected credit losses during the duration. For other financial assets, it is first assessed whether the credit risk has increased significantly since the original recognition.

If there has not been a significant increase, an allowance loss will be recognized based on the 12-month expected credit losses. If it has increased significantly, an allowance loss will be recognized based on the expected credit losses during the duration.

C. Expected credit loss is the weighted average credit loss with the risk of default as the weight. The 12-month expected credit losses represent the expected credit losses caused by possible default events of the financial instrument within 12 months after the reporting date, and the duration expected credit losses represent the expected credit losses caused by all possible default events of the financial instrument during the expected duration.

Impairment losses on all financial assets are reduced through the allowance account to reduce their carrying amounts.

(3) Delisting of financial assets

The consolidated company will delist financial assets only when the contractual rights to the cash flows from the financial asset have expired, or when the financial asset has been transferred and substantially all the risks and rewards of ownership of the asset have been transferred to another entity.

When a financial asset measured at amortized cost is eliminated in its entirety, the difference between its carrying amount and the consideration received is recognized in profit or loss. When equity instrument investments measured at fair value are eliminated as a whole through other comprehensive profit or loss, accumulated profits and losses are transferred directly to retained earnings and are not reclassified as profit or loss.

Financial liabilities and equity instruments

(1) Classification of liabilities or equity

Debt and equity instruments issued by the combined 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.

An equity instrument is any contract that represents the remaining equity of a combined company after its assets are deducted from all of its liabilities. Equity instruments issued by the combined company are recognized at the amount obtained after deducting direct issuance costs.

The equity instruments of the merged company that are then recaptured are recognized and deducted under equity. The purchase, sale, issuance or cancellation of the consolidated company's own equity instruments is not recognized in profit or loss.

(2) Financial liabilities

If financial liabilities are not held for trading and are not designated as measured at fair value through profit or loss (including accounts payable), they are measured at fair value plus directly attributable transaction costs when initially recognized; subsequent evaluation is measured at amortized cost using the effective interest method.

(3) Exclusion of financial liabilities

When excluding financial liabilities, the difference between their carrying amount and the consideration paid (including any non-cash

assets transferred or liabilities assumed) is recognized as profit or loss.

(13) Liability provisions

When the combined company has current obligations (statutory or constructive obligations) due to past events, and it is very likely that the obligation will be repaid, and the amount of the obligation can be reliably estimated, a liability provision is recognized. The amount recognized as liability provision takes into account the risks and uncertainties of the obligation and is the best estimate of the expenditure required to settle the obligation on the balance sheet date. Liability provisions are measured as the estimated discounted cash flows to settle the obligation.

(14) Revenue recognition

After the combined company identifies performance obligations in customer contracts, it allocates the transaction price to each performance obligation and recognizes revenue when each performance obligation is satisfied. merchandise sales revenue

Revenue from product sales comes from the manufacturing and sales of polarizing plates. Revenue from sales is recognized when control of the product is transferred to the customer, that is, when the product is delivered to the customer and the combined company has no outstanding performance obligations that may affect the customer's acceptance of the product. Because when the goods arrive at the location designated by the customer, the customer has the right to set the price and use of the goods and bears the main responsibility for resale, and bears the risk of obsolescence of the goods. The consolidated company recognizes revenue and accounts receivable at that point in time. Advances received before the goods arrive are recognized as contract liabilities.
Revenue from merchandise sales is measured based on the fair value of the consideration received or receivable, excluding estimated customer returns, discounts and other similar allowances. The combined company estimates possible sales returns and discounts based on historical experience and other known reasons, and accordingly recognizes refund liabilities and related rights to products to be returned.

(15) Leasing

The merged company assesses whether the contract is (or contains) a lease on the date of establishment of the contract.

The merged company is the lessor

When the terms of the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee, it is classified as a finance lease. All other leases are classified as operating leases.

When the merged company subleases right-of-use assets, the right-of-use assets (rather than the underlying assets) are used to determine the classification of the sublease. However, if the main lease is a short-term lease for which the recognition exemption applies to the combined company, the sublease is classified as an operating lease.

Under an operating lease, the lease payments after deducting lease incentives are recognized as income on a straight-line basis during the

relevant lease period. Lease negotiations with lessees are treated as new leases from the effective date of the lease modification.

The merged company is the lessee

Except for leases of low-value underlying assets that are subject to the recognition exemption and lease payments for short-term leases, which are recognized as expenses on a straight-line basis during the lease period, all other leases recognize right-of-use assets and lease liabilities on the inception date of the lease.

The right-of-use asset is initially measured at cost (including the original measurement amount of the lease liability, the lease payments paid before the lease commencement date minus the lease incentives received, the original direct costs and the estimated cost of restoring the underlying asset). It is subsequently measured at cost minus accumulated depreciation and accumulated impairment losses, and the remeasurement amount of the lease liability is adjusted.

Except for those that meet the definition of investment real estate, right-of-use assets are expressed separately in the consolidated balance sheet. For the recognition and measurement of right-of-use assets that meet the definition of investment real estate, please refer to Note 4 (9) Accounting Policy for Investment Real Estate.

Right-of-use assets are depreciated on a straight-line basis from the date of lease inception to the earlier of the expiry of the useful life or the expiration of the lease period.

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

Subsequently, the lease liability is measured on an amortized cost basis using the effective interest method, and the interest expense is amortized over the lease period. If future lease payments change due to changes in the lease period or in the index or rate used to determine lease payments, the consolidated company will remeasure the lease liability and adjust the right-of-use assets accordingly. However, if the book value of the right-of-use assets has been reduced to zero, the remaining remeasured amount will be recognized in profit or loss. For lease modifications that are not treated as separate leases, the remeasurement of lease liabilities due to reduction in the scope of the lease is to reduce the right-of-use assets, and the profit or loss from partial or full termination of the lease is recognized; the remeasurement of lease liabilities due to other modifications is to adjust the right-of-use assets. Lease liabilities are presented separately on the consolidated balance sheets.

(16) Employee benefits

Short-term employee benefits

Short-term employee benefits are measured as the undiscounted amount expected to be paid and recognized as an expense when the related services are provided.

Pension

(1) Determine the withdrawal plan

For determined withdrawal plans, the amount of pension funds that should be withdrawn is recognized as pension expenses for the current period on an accrual basis. Prepaid provisions are recognized as assets to the extent that they can be refunded in cash or reduce future payments.

(2) Defined benefit plan

The net obligation under the defined benefit plan is calculated by discounting the future benefit amount earned by the employee during the current period or past service, and subtracting the fair value of the plan assets from the present value of the defined benefit obligation at the balance sheet date. The net defined benefit obligation is calculated annually by the actuary using the estimated unit benefit method, and the discount rate is determined with reference to the market yield of high-quality corporate bonds on the balance sheet date that is consistent with the currency and period of the defined benefit plan; in countries where there is no deep market for high-quality corporate bonds, the market yield of government bonds (on the balance sheet date) is used. Remeasurements arising from defined benefit plans are recognized in other comprehensive profits and losses in the current period and included in retained earnings. Expenses related to upfront service costs are immediately recognized as profit or loss.

Termination benefits

Termination benefits are benefits provided to employees when their employment is terminated before the normal retirement date or when the employee decides to accept the company's welfare offer in exchange for the termination of employment. The combined company recognizes expenses when it is no longer possible to revoke the offer of severance benefits or when it recognizes related restructuring costs, whichever is earlier. Benefits that are not expected to be fully settled within 12 months after the balance sheet date should be discounted.

(17) Income tax

Income tax expense is the sum of current income tax and deferred income tax.

Current income tax

The merged company determines the income (loss) for the current period in accordance with the laws and regulations of each income tax reporting jurisdiction, and calculates the income tax payable (recoverable) accordingly.

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

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

Deferred income tax

Deferred income tax is calculated based on temporary differences arising from the carrying amounts of assets and liabilities and the tax basis for calculating taxable income. Deferred tax liabilities are generally recognized for all taxable temporary differences, while deferred tax assets are recognized to the extent that it is probable that taxable

income will be available against which the temporary differences or losses can be utilised.

Taxable temporary differences related to investment subsidiaries are recognized as deferred income tax liabilities, except where the consolidated 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 sufficient taxable income will be available to realize the temporary differences and that they are expected to reverse in the foreseeable future.

The carrying amount of deferred income tax assets is re-examined at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to recover all or part of the asset. Those that were not originally recognized as deferred income tax assets will be re-examined at each balance sheet date, and if it is likely that taxable income will be generated in the future for them to recover all or part of the assets, the book amount will be increased.

Deferred income tax assets and liabilities are measured based on the tax rate expected in the current period when liabilities are settled or assets are realized. This tax rate is based on tax rates and tax laws that have been enacted or substantively enacted on the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences of the manner in which the combined company expects to recover or settle the carrying amounts of its assets and liabilities at the balance sheet date.

Current and deferred income taxes

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

Main sources of uncertainty in major accounting judgments, estimates and assumptions

When the consolidated company adopts the accounting policies described in Note 4, management must make relevant judgments, estimates and assumptions based on historical experience and other relevant factors if information on the carrying amount of assets and liabilities is not easily obtained from other sources. Estimates and related assumptions are based on historical experience and other factors considered relevant. Actual results may differ from estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. If the estimate revision affects only the current period, it is recognized in the current period when the accounting estimate is revised. If the revision of accounting estimates affects both the current and future periods, it is recognized in the current period and future periods of the estimate revision.

The main sources of uncertainty in the combined company's significant accounting judgments, estimates and assumptions are as follows:

(1) Evaluation of inventory

Because inventories must be measured at the lower of cost and net realizable value, the combined company must use judgment and estimates to determine the net realizable value of inventories at the end of the financial reporting period.

Due to rapid changes in the industry, the combined company assesses the amount of inventory due to normal wear and tear, obsolescence or no marketable value at the end of the financial reporting period, and writes down the inventory cost to the net realizable value. This inventory evaluation is mainly based on estimates of product demand within a specific future period, so significant changes may occur.

(2) Financial asset impairment assessment

The estimated impairment on accounts receivable is based on the combined company's assumptions about default rates and expected loss rates. Merger considers historical experience, current market conditions and forward-looking information to formulate assumptions and select inputs for impairment assessments. Please refer to Note 6 (4) for the important assumptions and input values used. If actual future cash flows are less than expected, significant impairment losses may occur.

(3) Impairment assessment of non-financial assets

During the asset impairment assessment process, the merged company needs to rely on subjective judgment and based on asset usage patterns and industry characteristics to determine the independent cash flows of a specific asset group, asset durability, and possible future income and losses. Any changes in estimates due to changes in economic conditions or company strategies may cause significant impairments in the future or reverse recognized impairment losses.

(4) Realizability of deferred income tax assets

Deferred income tax assets are recognized when it is probable that sufficient taxable income will be available in the future to deduct temporary differences. Evaluating the realizability of deferred income tax assets must involve management's significant accounting judgments and estimates, including assumptions such as expected future sales revenue growth and profit margins, tax-free periods, available income tax credits and tax planning. Any changes in the global economic environment, industrial environment and changes in laws and regulations may cause significant adjustments to deferred income tax assets.

Description of important accounting items

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 5,879	$ 933
Bank demand deposits and check deposits	153,183	130,947
Equivalent to cash (investment with original maturity date within 3 months)
Bank time deposit	—	16,395
Total	$ 159,062	$ 148,275

(2) Financial assets measured at fair value through other comprehensive gains and losses

Equity Instrument Investment

	December 31, 2025	December 31, 2024
Illiquid
Domestic unlisted (counter) joint stock limited company	$ 150,000	$ —
Overseas listed (counter) limited companies	20,713	—
Total	$ 170,713	$ —

On December 19, 2024, the company approved the investment in Jubilee International Biomedical Co., Ltd. (hereinafter referred to as Jubilee Company) by resolution of the board of directors. The base date for the capital increase of Jubilee Company is January 2, 2024. The company has paid an investment amount of 120,000 NT dollars in December 113, participated in the subscription of 15,000 thousand shares, and holds shares. The ratio is 20.841%; Jubilee Company completed a cash capital increase in April 2024. The company gave up the subscription, causing the shareholding ratio to drop from the original 20.841% to 19.834%. The Company has assessed that it does not have significant influence over it, so it transfers financial assets measured at fair value through other comprehensive profit or loss.
The merged company invests in domestic unlisted OTC companies and foreign listed OTC companies for the purpose of medium- and long-term holdings, and expects to make profits through long-term investment. The management believes that including the fluctuations in the fair value of these investments in profit and loss is inconsistent with the aforementioned investment plan, and therefore chooses to designate the investments as measured at fair value through other comprehensive profit and loss.

(3) Financial assets measured at amortized cost

	December 31, 2025	December 31, 2024
Flow
Domestic investment
Time deposits with original maturity exceeding 3 months	$ 3,500	$ 3,500
Restricted time deposits	—	16,395
Foreign investment
Time deposits with original Maturity exceeding 3 months	62,529	97,064
Total	$ 66,029	$ 116,959
Interest rate range	0.85% ~ 1.69%	1.00% ~ 4.55%

Financial assets measured at amortized cost - For information on current guarantees, please refer to Note 8.

(4) Notes receivable and accounts receivable

	December 31,2025	December 31,2024
Notes receivable
(Show other current assets)
Occurs due to business	$ 3,724	$ 3,718
Less: Allowance for losses	(3,413)	(3,413)
	$ 311	$ 305
Accounts receivable
Measured at amortized cost
Total carrying amount	$ 657,933	$ 786,644
Less: Allowance for losses	(61,184)	(71,265)
	$ 596,749	$ 715,379

In principle, the credit period of the merged company to customers is 30 to 120 days after the invoice date. In order to mitigate credit risks, the management of the merged company has assigned a dedicated team to be responsible for the determination of credit limits, credit approval and other monitoring procedures to ensure that appropriate actions are taken to collect overdue accounts receivable. In addition, the merged company will review the recoverable amount of accounts receivable one by one on the balance sheet date to ensure that appropriate impairment losses have been made for uncollectible accounts receivable.
The combined company recognizes allowance losses for accounts receivable based on expected credit losses during the duration. The expected credit losses during the duration are based on the past default record of the customer, the current financial situation, the industrial economic situation, and the overall economic and industry outlook. Divide individual customers into different risk groups and recognize loss allowances based on the expected loss rates of each group.
If there is evidence that the counterparty is facing serious financial difficulties and the merging company cannot reasonably expect the recoverable amount, the merging company will directly write off the relevant accounts receivable, but will continue to pursue recovery activities, because the amount recovered will be recognized in profit and loss.
The allowance losses for accounts receivable of the consolidated company (including related parties) are as follows:

	December 31, 2025
	Not overdue	Overdue 1~30 days	Overdue 31~60 days	Overdue 61~120 days	Overdue More than 121 days	Total
Expected credit loss rate	0.11%~0.18%	0.13%~0.20%	0.15%~0.22%	0.18%~0.27%	0.23%~100%
Total carrying amount	$ 443,354	$ 76,776	$ 17,671	$ 15,979	$104,153 (Note)	$ 657,933
Allowance for losses (expected credit losses during the duration)	(514)	(100)	(26)	(30)	(60,514)	(61,184)

amortized cost

$ 442,840

$ 76,676

$ 17,645

$ 15,949

$ 43,639

$ 596,749

December 31, 2024

	Not overdue	Overdue 1~30 days	Overdue 31~60 days	Overdue 61~120 days	Overdue More than 121 days	Total
expected credit loss rate	0.18%~0.32%	0.20%~0.36%	0.22%~0.41%	0.25%~0.49%	0.30%~100%
Total carrying amount	$ 532,443	$ 97,876	$ 23,931	$ 11,077	$121,317 (Note)	$ 786,644
Allowance for losses (expected credit losses during the duration)	(1,675)	(351)	(99)	(52)	(69,088)	(71,265)
amortized cost	$ 530,768	$ 97,525	$ 23,832	$ 11,025	$ 52,229	$ 715,379

Note: The overall collection status of the consolidated company's accounts receivable is good, but some accounts are overdue due to factors of specific customers. In order to ensure payment, the customer has provided deposits of 42,819 thousand NT dollars and 60,281 thousand NT dollars respectively as guarantee on December 31, 2024 and 2024.

Information on changes in allowance losses for notes receivable and accounts receivable (including related parties) is as follows:

	2025
	Notes receivable	Accounts receivable
Opening balance	$ 3,413	$ 71,265
Reversal of impairment losses in the current period	—	(10,081)
Ending balance	$ 3,413	$ 61,184
	2024
---	---	---
	Notes receivable	Accounts receivable
Opening balance	$ 3,413	$ 69,402
Provision for impairment losses in this period	—	4,089
Number of write-offs in the current period	—	(2,226)
Ending balance	$ 3,413	$ 71,265

(5) Other receivables

	December 31, 2025	December 31, 2024
Operating lease receivables	$ 4,723	$ 15,539
Business tax refundable	7,386	10,274
Other receivables - other	240	429
Other receivables - related	13,803	23,587

parties
small plan	26,152	49,829
Less: Allowance for losses	(13,803)	(23,587)
Total	$ 12,349	$ 26,242

Information on changes in allowance losses for other receivables (including related parties) is as follows:

	2025	2024
Opening balance	$ 23,587	$ 18,067
Reclassification in this issue	—	5,821
Reversal of impairment	(9,493)	(513)
losses in the current period
Exchange rate impact number	(291)	212
Ending balance	$ 13,803	$ 23,587

(6) Inventory

	December 31, 2025	December 31, 2024
Finished products	$ 134,270	$ 148,640
Work in progress	173,944	211,722
Raw materials	183,547	241,211
Inventory in transit	5,015	1,449
Total	$ 496,776	$ 603,022

Inventory-related expenses and losses recognized in the current period are as follows:

	2025	2024
Cost of inventory sold	$ 1,270,601	$ 1,232,853
Inventory recovery benefits	(34,757)	(77,263)
Unallocated manufacturing overhead	47,698	58,661
Income from selling scraps	(15,186)	(20,784)
other	(2)	228
Total	$ 1,268,354	$ 1,193,695

The rebound in the net realizable value of the combined company's inventories in 2024 and 2024 was mainly due to the sale of inventories that had been accrued for appraisal losses in previous years.

(7) Investments using the equity method

Investment related enterprises

	December 31, 2025	December 31, 2024
Individually insignificant associated enterprises
Domestic unlisted (counter) companies
Intelligent Information Security Technology Co., Ltd.	$ 4,589	$ 36,000

The combined company's ownership interests and voting rights percentages in related enterprises on the balance sheet date are as follows:

Company Name	December 31, 2025	December 31, 2024
Intelligent Information Security Technology Co., Ltd.	24.54%	24.54%

For the business nature, main place of business and country of company registration of the above-mentioned affiliated enterprises, please refer to Appendix 4 "Name of the invested company, location...and other relevant information".

Individually insignificant associated enterprises:

	2025	2024
Share of the merged company
Net profit for the period	$ (34,699)	$ (68,843)
Other comprehensive gains and losses	—	—
Total comprehensive profit and loss	$ (34,699)	$ (68,843)

Optimax Technology (Suzhou) Co., Ltd., a subsidiary of the company, passed the resolution of the board of directors on November 7, 2023. In response to changes in the mainland market and to save costs, it plans to sell 13% of the equity of Shenzhen Lihuasheng Technology Co., Ltd. to Shenzhen Hexinchen Investment Development Co., Ltd. was changed on December 9, 2023, and its shareholding ratio in Shenzhen Lihuasheng Technology Co., Ltd. has been reduced from 32% to 19%. It no longer has significant influence, so it is transferred to financial assets measured at fair value through profit and loss.

(8) Real estate, plant and equipment

Items	2025
	Opening balance	add	Punishment	Reclassify	Exchange rate impact number	Ending balance
Cost
Land	$364,697	$ —	$ —	$(43,123)	$ —	$321,574
Houses and buildings	2,377,524	386	(70,324)	(39,284)	—	2,268,302
Machinery and equipment	2,894,527	18,837	(96,669)	11,987	289	2,828,971
Transportation equipment	102,094	—	(901)	—	4	101,197
Office equipment	96,882	1,257	(59,371)	—	50	38,818
Other equipment	33,025	854	(8,656)	—	5	25,228
Unfinished	11,987	8,739	—	(11,987)	—	8,739

2024

Item	Opening balance	Add	Punishment	Reclassify	Exchange rate impact number	Ending balance
Cost
Land	$364,697	$ —	$ —	$ —	$ —	$364,697
Houses and buildings	2,493,034	1,228	(65,107)	(51,631)	—	2,377,524
Machinery and equipment	3,144,207	14,334	(275,721)	9,280	2,427	2,894,527
Transportation equipment	102,801	—	(742)	—	35	102,094
Office equipment	109,642	836	(14,015)	—	419	96,882
Other equipment	39,135	314	(6,471)	—	47	33,025
Unfinished project	21,267	—	—	(9,280)	—	11,987
Small plan	6,274,783	16,712	(362,056)	(51,631)	2,928	5,880,736
Accumulated depreciation
Houses and buildings	1,463,145	36,329	(62,548)	(23,136)	—	1,413,790
Machinery and	3,004,401	7,897	(266,382)	—	2,271	2,748,187
projected	Small plan	Accumulated depreciation	Houses and buildings	Machinery and equipment	Transportation equipment	Office equipment
---	---	---	---	---	---	---
	5,880,736	30,073	(235,921)	(82,407)	348	5,592,829
Accumulated depreciation
Houses and buildings	1,413,790	33,845	(68,514)	(17,206)	—	1,361,915
Machinery and equipment	2,748,187	9,194	(81,175)	—	283	2,676,489
Transportation equipment	97,959	331	(883)	—	7	97,414
Office equipment	88,034	311	(55,934)	—	45	32,456
Other equipment	25,767	502	(8,466)	—	5	17,808
Small plan	4,373,737	44,183	(214,972)	(17,206)	340	4,186,082
Cumulative impairment
Houses and buildings	17	—	—	—	—	17
Machinery and equipment	7,347	—	(4,080)	—	8	3,275
Transportation equipment	1,157	—	—	—	—	1,157
Office equipment	2,691	—	(2,686)	—	—	5
Other equipment	28	—	(11)	—	—	17
Small plan	11,240	—	(6,777)	—	8	4,471
Net amount	$1,495,759	$(14,110)	$(14,172)	$(65,201)	$ —	$1,402,276

equipment
Transportation equipment
98,326 352 (729) – 10 97,959
Office equipment
100,656 281 (13,278) – 375 88,034
Other equipment
31,584 493 (6,352) – 42 25,767
Small plan
Cumulative impairment
4,698,112 45,352 (349,289) (23,136) 2,698 4,373,737
Houses and buildings
17 – – – – – 17
Machinery and equipment
11,589 – (4,316) – 74 7,347
Transportation equipment
1,157 – – – – – 1,157
Office equipment
2,707 – (16) – – 2,691
Other equipment
28 – – – – 28
Small plan
15,498 – (4,332) – 74 11,240
Net amount
$1,561,173 $(28,640) $(8,435) $(28,495) $ 156 $1,495,759

The real estate, plants and equipment of the merged company are depreciated based on the following useful life:

Houses and Construction
Factory main building 9 to 50 years
House accessories 2 to 18 years
Machinery and equipment 1 to 24 years
Rest of equipment 2 to 17 years

For information on guarantees provided for real estate, plant and equipment, please refer to Note 8.

(9) Lease Agreement – Lessee

Right-of-use assets
(1) Information on the book value of right-of-use assets and recognized depreciation expenses is as follows:

	December 31, 2025	December 31, 2024
Carrying amount of right-of-use asset
Land	$ 5,140	$ 7,709
Transportation equipment	2,549	2,310
office equipment	1,000	1,267
Total	$ 8,689	$ 11,286

	2025	2024
Depreciation expense for right-of-use assets
Land	$ 2,569	$ 2,570
Transportation equipment	1,429	1,293
Office equipment	267	266
Total	$ 4,265	$ 4,129

The merged company obtained a land use right contract located in the Suzhou High-tech Zone of the People's R.O.C and sub-leased it in the form of operating lease. The relevant right-of-use asset statement is listed as investment real estate. Please refer to Note 6 (11). The above amounts related to right-of-use assets do not include right-of-use assets that meet the definition of investment real estate.

(2) The increase in right-of-use assets of the merged company in 2025 and 2024 was RMB 1,668,000 and RMB 2,067,000 respectively.
(3) Except for the additions and depreciation expenses listed above, there were no major sublease or impairment of the right-of-use assets of the merged company in 2024 and 2024.

Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liability
Current	$ 4,475	$ 3,851
Non-current	$ 5,629	$ 8,750

The discount rate range for lease liabilities is as follows:

	December 31, 2025	December 31, 2024
Land	2.5580%	2.5580%
Transportation equipment	2.5580%~2.7200%	1.8513%~2.5580%
Office equipment	2.5580%	2.5580%

Important leasing activities and terms

The assets leased by the merged company include land, official vehicles and photocopier equipment. The lease contract period is usually between 3 and 6 years. Lease contracts are negotiated individually and contain various terms and conditions. No other restrictions are imposed except that the leased assets cannot be used as loan security.

The merged company signed a land use rights contract located in the Suzhou High-tech Zone of the People's R.O.C in 1999. The lease term is 50 years and has been paid in full when the lease is signed. Within the land use period, it enjoys land use rights, income rights, and disposal rights such as transfer and leasing.

Other leasing information

	2025	2024
Short term rental fees	$ 25	$ 108
Low value asset leasing expenses	$ 22	$ 26
Total cash outflow from leases	$ 4,506	$ 4,109

The combined company has elected to apply the recognition exemption to transportation equipment that qualifies as short-term leases and certain office equipment leases that qualify as low-value asset leases, and does not recognize related right-of-use assets and lease liabilities for these leases.

(10) Lease Agreement – Lessor

The assets leased by the merged company include land, buildings, machinery and equipment, etc. The lease contract period ranges from 1 to 7 years. The lease contract is negotiated individually and contains various terms and conditions. In order to preserve the use of the leased assets, the lessee is usually required not to sublease, sublease or pledge all or part of the leased subject matter and other restrictions and stipulations.
The benefits recognized by the combined company based on the operating lease contract are as follows:

	2025	2024
Rental income	$ 81,806	$ 88,029

The maturity date analysis of the total lease payments receivable of the combined company under operating leases is as follows:

	December 31, 2025	December 31, 2024
First year	$ 90,318	$ 89,898
Second year	24,020	85,225
Third year	17,190	20,863
Fourth year	12,833	14,040
Fifth year	—	10,470
Total	$ 144,361	$ 220,496

(11) Investment real estate

Items	2025
	Opening balance	add	Punishment	Reclassify	Exchange rate impact number	Ending balance
Cost
Land	$ 159,910	$ —	$ —	$ 43,123	$ —	$ 203,033
Houses and buildings	1,230,188	—	(2,310)	39,284	1,704	1,268,866
Right-of-use assets	19,676	—	—	—	80	19,756
Small plan	1,409,774	—	(2,310)	82,407	1,784	1,491,655

Accumulated depreciation
Houses and buildings	579,361	27,937	(2,278)	17,206	1,396	623,622
Right-of-use assets	3,162	510	—	—	32	3,704
Small plan	582,523	28,447	(2,278)	17,206	1,428	627,326
Cumulative impairment
Houses and buildings	26	—	—	—	—	26
Net amount	$ 827,225	$ (28,447)	$ (32)	$ 65,201	$ 356	$ 864,303
Items	2024
---	---	---	---	---	---	---
	Opening balance	add	Punishment	Reclassify	Exchange rate impact number	Ending balance
Cost
Land	$ 133,248	$ 26,662	$ —	$ —	$ —	$ 159,910
Houses and buildings	1,141,027	23,884	(650)	51,631	14,296	1,230,188
Right-of-use assets	19,013	—	—	—	663	19,676
Small plan	1,293,288	50,546	(650)	51,631	14,959	1,409,774
Accumulated depreciation
Houses and buildings	522,724	26,530	(630)	23,136	7,601	579,361
Right-of-use assets	2,546	524	—	—	92	3,162
Small plan	525,270	27,054	(630)	23,136	7,693	582,523
Cumulative impairment
Houses and buildings	26	—	—	—	—	26
Net amount	$ 767,992	$ 23,492	$ (20)	$ 28,495	$ 7,266	$ 827,225

The investment real estate of the merged company is depreciated based on the following useful life:

Houses and Construction

Factory main building 9 to 50 years

House accessories 14 to 16 years

Right-of-use assets 37 years

The fair value of the investment real estate held by the consolidated company is evaluated by independent evaluation experts on each balance sheet date using Level 3 input values. The evaluation is carried out with reference to comparison methods, income methods, cost methods and fixed rate methods (declining balance method) similar to real estate market transaction prices. The unobservable input values used include discount rates and depreciation rates.

The fair value of the investment real estate of the combined company as of December 31, 2024 and 2024 is as follows:

	December 31, 2025	December 31, 2024
Fair value	$ 1,438,136	$ 1,301,157

Rental income and direct operating expenses from the investment real estate of the combined company:

	2025	2024
Rental income from investment real estate	$ 79,967	$ 86,227
Direct operating expenses incurred by investment properties that generate rental income in the current period	$ 32,694	$ 30,947

The merged company acquired 18,248 thousand NT dollars of land in the 111th year of the R.O.C. Since the land was classified as agricultural and animal husbandry land, it could not be transferred in the name of the company. It was registered in the name of the chairman of the company, and a name-borrowing registration deed was signed to clearly define the rights and obligations of both parties.
For information on guarantees provided for investment real estate, please refer to Note 8.

(12) Short-term Loans

	December 31, 2025	December 31,2024
Bank guaranteed loan	$ 271,991	$ 302,166
Interest rate range	1.75% ~ 2.725%	1.600% ~ 2.725%

For information on assets providing security for short-term borrowings, please refer to Note 8.

(13) Accounts payable

	December 31, 2025	December 31, 2024
Accounts payable	$ 41,504	$ 33,652

The average credit period for accounts payable is 30 to 180 days. The merged company has a financial risk management policy to ensure that all accounts payable are repaid within the pre-agreed credit period.

Please refer to Note 6 (28) for disclosures on accounts payable and other payables that the consolidated company is exposed to exchange rate and liquidity risks.

(14) Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses payable	$ 64,132	$ 68,621
Remuneration payable to Employees and directors	7,200	7,703
Insurance premium payable	6,713	6,258
Pension payable	2,560	2,421
Interest payable	1,650	1,863
Equipment payment payable	1,573	3,067
Commission payable	17,051	28,964
Other	46,279	47,792
Total	$ 147,158	$ 166,689

Others under other payables mainly consist of payables such as house tax, rent, labor fees, water, electricity and gas fees, freight, import and export fees and repair fees.

(15) Liability reserves - current

	December 31, 2025	December 31, 2024
Provision for employee benefit liabilities	$ 17,346	$ 16,565

Employee benefit liability reserve is an estimate of employees' vested vacation rights, which is reversed when employees actually take vacations or receive cash payments.
The above provisions are not discounted because they are short-term or have little impact on discounting.

(16) Long-term loans

	December 31, 2025	December 31, 2024
Bank medium and long-term mortgage loans	$ 830,000	$ 1,001,600
Less: Part due within one year	(728,600)	(21,600)
long term loans	$ 101,400	$ 980,000
Interest rate range	2.675 % ~ 2.72%	2.675 % ~ 2.72%

Due to the overall operation and capital planning, the merged company signed a five-year loan contract with the Cooperative Bank on August 22, 2024. The

total amount is 270,000 NT dollars, with one installment every three months, and the loan will be repaid in 20 installments, including The loan principal of 5,400,000 NT dollars will be repaid each period from the 1st to the 10th period, and the loan principal of 10,800,000 NT dollars will be repaid each period from the 11th to the 19th period. The remaining outstanding loan balances are due to be paid off in one go. The due date is August 22, 2018. The combined company's borrowing balances as of December 31, 2024 and 2024 were 123,000 thousand NT dollars and 194,600 thousand NT dollars respectively.

Due to the overall operation and capital planning, the merged company signed a three-year loan contract with Sunshine Bank on September 27, 2012, with a total amount of 1,360,000 NT dollars, and one installment every three months. The loan will be repaid in 12 installments. Among them, the loan principal of 30,000 NT dollars will be repaid in each period from the 1st to the 11th period, and the remaining outstanding loan balance will be paid off at one time when it is due. The borrower can repay it in advance and incorporate it into the repayment amount of subsequent periods. The due date is October 6, 2025. The combined company's borrowing balances as of December 31, 2024 and 2024 were 707,000 thousand NT dollars and 807,000 thousand NT dollars respectively.
Please refer to Note 8 for the situation of assets providing security for long-term borrowings.

(17) Pension

Determine the withdrawal plan

Since July 1, 1994, the company and its domestic subsidiaries have established a defined contribution retirement method in accordance with the "Labor Pension Ordinance", which is applicable to employees of domestic nationality. The company and its domestic subsidiaries choose to apply the labor pension system stipulated in the "Labor Pension Ordinance" for employees, and pay 6% of the salary to the employee's personal account of the Labor Insurance Bureau every month. The payment of employee pension is based on the employee's personal pension account and the amount of accumulated income in the form of monthly pension or one-time pension. According to the pension insurance system stipulated by the government of the People's R.O.C, Litex Suzhou allocates pension insurance funds at a certain rate of the total salary of local employees every month. Each employee's pension is allocated monthly by the local government and has no further obligations. The combined company recognized pension expenses related to the defined provision plan in 2024 and 2024 as RMB 15,417,000 and RMB 14,630,000 respectively.

Defined benefit plan

In accordance with the provisions of the "Labor Standards Act", the company has a defined-benefit retirement policy, which is applicable to the service years of all regular employees before the implementation of the "Labor Pension Ordinance" on July 1, 1994, as well as the

subsequent service years of employees who choose to continue to be subject to the Labor Standards Law after the implementation of the "Labor Pension Ordinance". For employees who meet the retirement conditions, pension payment will be calculated based on the service years and the average salary in the 6 months before retirement. 2 base points will be given for each full year of service for less than 15 years (inclusive), and 1 base will be given for each full year of service for more than 15 years, but the cumulative maximum is limited to 45 bases. The company allocates 2% of the total salary to the retirement fund on a monthly basis and deposits it in a special account in the Bank of Taiwan in the name of the Labor Retirement Reserve Supervisory Committee. In addition, before the end of each year, the company estimates the balance of the special labor pension reserve account mentioned in the preceding paragraph. If the balance is insufficient to pay the pension amount calculated as mentioned above to the employees who are expected to meet the retirement conditions in the next year, the company will allocate the difference in one lump sum before the end of March of the next year. This special account is entrusted to the Labor Fund Utilization Bureau of the Ministry of Labor for management. The company has no right to influence the investment management strategy.

The amounts of defined benefit plans recognized in the consolidated balance sheet are as follows:

	December 31, 2025	December 31, 2024
Determining the present value of benefit obligations	$ (71,008)	$ (67,567)
Fair value of project assets	86,028	80,907
Net defined benefit assets	$ 15,020	$ 13,340

Changes in net defined benefit assets are as follows:

	Determining the present value of benefit obligations	Fair value of project assets	Net defined benefit assets
Balance as of January 1, 2024	$ (67,567)	$ 80,907	$ 13,340
Service cost
Current service cost	(50)	—	(50)
Interest (fee) income	(1,014)	1,214	200
Recognized in profit or loss	(1,064)	1,214	150
Remeasurement number
Return on plan assets (excluding amounts included in interest income or expenses)	—	5,668	5,668
Number of impacts of changes in demographic assumptions	—	—	—
Impact of changes in financial assumptions	(888)	—	(888)

Experience adjustment	(3,250)	—	(3,250)
Recognized in other comprehensive profit or loss	(4,138)	5,668	1,530
Contribute to retirement funds	—	—	—
Pay pension	1,761	(1,761)	—
Balance as of December 31, 2024	$ (71,008)	$ 86,028	$ 15,020
	Determining the present value of benefit obligations	Fair value of project assets	Net defined benefit assets
---	---	---	---
Balance as of January 1, 2024	$ (65,959)	$ 72,387	$ 6,428
Service cost
Current service cost	(48)	—	(48)
Interest (fee) income	(825)	940	115
Recognized in profit or loss	(873)	940	67
remeasurement number
Return on plan assets (excluding amounts included in interest income or expenses)	—	6,247	6,247
Number of impacts of changes in demographic assumptions	—	—	—
Impact of changes in financial assumptions	42	—	42
Experience adjustment	(1,287)	—	(1,287)
Recognized in other comprehensive profit or loss	(1,245)	6,247	5,002
Contribute to retirement funds	—	1,843	1,843
Pay pension	510	(510)	—
Balance as of December 31, 2024	$ (67,567)	$ 80,907	$ 13,340

The merged company is exposed to the following risks due to the pension system of the Labor Standards Act:

(1) Investment risk: The Labor Fund Utilization Bureau of the Ministry of Labor invests labor retirement funds in domestic (foreign) equity securities, debt securities, bank deposits and other subjects through its own use and entrusted operation. However, according to the provisions of the "Labor Standards Act", the overall return on assets shall not be lower than the local bank's 2-year time deposit interest rate; if it is lower than the interest rate, the national treasury will make up the amount.

(2) Interest rate risk: The decline in interest rates on government bonds will increase the present value of defined benefit obligations, but the debt investment returns on planned assets will also increase accordingly.

The two have a partially offsetting effect on the net defined benefit liabilities.

(3) Salary risk: The calculation to determine the present value of benefit obligations is based on the future salary of plan members. Therefore, an increase in plan member salaries will increase the present value of defined benefit obligations.

The main assumptions of the actuarial evaluation are set out below:

	December 31, 2025	December 31, 2024
Discount rate	1.375%	1.500%
Expected salary increase rate	2.25%	2.25%

Changes in the main actuarial assumptions adopted on December 31, 2024 and 2024 will increase (decrease) the present value of defined benefit obligations by the following amounts:

December 31, 2025	Actuarial assumptions increase by 0.25%	Actuarial assumptions 0.25% reduction
Discount rate	$ (1,761)	$ 1,827
Future salary increase rate	$ 1,778	$ (1,723)
December 31, 2024	Actuarial assumptions increase by 0.25%	Actuarial assumptions 0.25% reduction
Discount rate	$ (1,739)	$ 1,806
Future salary increase rate	$ 1,758	$ (1,702)

THE ABOVE SENSITIVITY ANALYSIS IS BASED ON ANALYZING THE IMPACT OF CHANGES IN A SINGLE ASSUMPTION WHILE HOLDING OTHER ASSUMPTIONS UNCHANGED. IN PRACTICE, CHANGES IN MANY ASSUMPTIONS MAY BE LINKED. THE SENSITIVITY ANALYSIS IS CONSISTENT WITH THE APPROACH USED TO CALCULATE THE NET PENSION LIABILITY ON THE BALANCE SHEET. THE METHODS AND ASSUMPTIONS USED IN PREPARING THE SENSITIVITY ANALYSIS FOR THIS PERIOD ARE THE SAME AS THOSE FOR THE PREVIOUS PERIOD.

THE AMOUNT OF PROVISION FOR DEFINED BENEFIT PLANS AND THE WEIGHTED AVERAGE DURATION OF THE RETIREMENT PLAN IN THE YEAR FOLLOWING THE REPORTING DATE OF DECEMBER 31, 2024 AND 2024 ARE AS FOLLOWS:

	December 31, 2025	December 31, 2024
Amount expected to be withdrawn within 1 year	$ –	$ –
Determine the average Maturity period of benefit obligations	10.1 years	10.5 years

(18) Rights and interests

Common stock capital

	December 31, 2025	December 31, 2024
Rated share capital	$ 10,000,000	$ 10,000,000
Issued share capital	$ 1,670,000	$ 1,690,000

On May 8, 2024, the company decided to reduce capital and cancel 2,000 thousand treasury shares with a cancellation amount of RMB59,553,000. May 8, 2024 was used as the base date for capital reduction, and the relevant legal registration procedures have been completed.

On December 19, 2024, the company decided to reduce its capital by canceling 1,000,000 treasury shares with a cancellation amount of RMB 32,393,000. December 19, 2024 was used as the base date for capital reduction, and the relevant legal registration procedures have been completed.

As of December 31, 2025 and 113 of the R.O.C, the company's rated number of shares was 1,000,000 thousand shares, with a par value of 10 NT dollars per share, and the issued shares were 167,000 thousand shares and 169,000 thousand shares respectively.

Retained earnings and dividend policy

(1) According to the provisions of the company's articles of association, if there is a surplus in the annual final accounts, taxes should be paid first to make up for the accumulated losses, and 10% should be allocated as a statutory surplus reserve. However, when the statutory surplus reserve has reached the amount of paid-in capital, it may no longer be allocated, and the remainder shall be allocated later. When necessary, the special surplus reserve may be appropriated or reversed by resolution of the shareholders' meeting or in accordance with legal provisions; if there is still a balance and undistributed surplus accumulated from previous years, the board of directors shall prepare a surplus distribution proposal and submit it to the shareholders' meeting to resolve the distribution of dividends to shareholders.

(2) The company's earnings distribution shall be based on the company's current and future development plans, consideration of the investment environment, capital needs, domestic and foreign competition, and

taking into account factors such as shareholders' interests. At least 30% of the current year's earnings shall be allocated to shareholders as dividends, but the accumulated distributable earnings are lower than the paid-in share capital. 30%, it may not be distributed; the board of directors shall, based on the operating results and capital planning situation, formulate the method and amount of surplus distribution, and submit it to the shareholders' meeting for resolution. When distributing dividends to shareholders, they may be distributed in the form of cash or stocks, of which the cash dividend shall not be less than 10% of the total shareholder dividends to be distributed in the current year.

(3) The statutory surplus reserve shall not be used except to make up for the company's losses and issue new shares or cash to shareholders in proportion to their original shares. However, if new shares or cash are issued, the amount of the reserve shall be limited to the amount exceeding 25% of the paid-in capital.

(4) When the company distributes surplus, according to legal provisions, it must set aside special surplus reserves based on the debit balance of other equity items on the balance sheet date of the current year before it can be distributed. When the debit balance of other equity items is subsequently reversed, the reversal amount may be included in the surplus available for distribution.

(5) The company passed the resolution of the board of directors on March 12, 2026, and proposed the profit distribution plan for 2025. The distribution is as follows:

	Amount	Dividend per share
Statutory surplus reserve	$ 12,990	$ —
Special surplus reserve	$ (2,376)	—
Cash dividend	$ 82,500	0.5

The profit distribution proposal for the year 2025 is yet to be resolved at the shareholders' regular meeting held on June 24, 2026. For relevant information on the above-mentioned earnings distribution, please inquire from the Taiwan Stock Exchange's "Public Information Observatory" and other channels.

(6) The company's shareholders' regular meetings on June 24, 2025 and June 20, 2024 passed the profit distribution plan for 2024 and 2023. The distribution is as follows:

	2024	2023
Statutory surplus reserve	$ 29,366	$ 20,605
Special surplus reserve	$ (27,572)	$ (5,703)
Cash dividend	$ 250,500	$ 168,000
Cash dividend per share	$ 1.518181	$ 1

For relevant information on the above-mentioned earnings distribution, please inquire from the Taiwan Stock Exchange's "Public Information Observatory" and other channels.

3. Other equity items

| | Foreign operating organizations
Financial statement conversion
exchange difference | Through other comprehensive
Profit and loss
Unrealized valuation (gain)
and loss on financial assets
measured at fair value | Total |
| --- | --- | --- | --- |
| Balance as of January 1, 2024 | $ (2,370) | $ (6) | $ (2,376) |
| Produced in the current period | | | |
| Differences in conversion of
Financial statements of
foreign operating institutions | 3,484 | — | 3,484 |
| Rating adjustment | — | 27,751 | 27,751 |
| Income tax impact number | (223) | — | (223) |
| Balance as of December 31, 2024 | $ 891 | $ 27,745 | $ 28,636 |
| | Foreign operating organizations
Financial statement conversion
exchange difference | Through other comprehensive
Profit and loss
Unrealized valuation (gain)
and loss on financial assets
measured at fair value | Total |
| Balance as of January 1, 2024 | $ (3,719) | $ (26,229) | $ (29,948) |
| Produced in the current period | | | |
| Differences in conversion of
financial statements of
foreign operating institutions | 1,349 | — | 1,349 |
| Accumulated gains and losses from disposal of equity instruments | — | 26,223 | 26,223 |
| Transfer to retained earnings | | | |
| Balance as of December 31, 2024 | $ (2,370) | $ (6) | $ (2,376) |

4. Treasury stocks

(1) Reasons for share withdrawal and changes in quantity:

(Unit: Thousand shares)

Reason for withdrawal	2025
	Number of shares at the beginning of	Received in this period	Cancel this period	Number of shares at the end of the

	the period		period
Transfer shares to employees	2,000	—	—	2,000
Maintain company credit and shareholders’ rights and interests	—	2,000	(2,000)	—
	2,000	2,000	(2,000)	2,000
Reason for withdrawal	2024
---	---	---	---	---
	Number of shares at the beginning of the period	Received in this period	Cancel this period	Number of shares at the end of the period
Transfer shares to employees	2,000	—	—	2,000
Maintain company credit and shareholders’ rights and interests	—	1,000	(1,000)	—
	2,000	1,000	(1,000)	2,000

(2) The Securities and Exchange Law stipulates that the company's proportion of the number of outstanding shares to be repurchased shall not exceed $10\%$ of the company's total issued shares, and the total amount of shares purchased shall not exceed the retained earnings plus the premium for issued shares and the amount of capital reserves that have been realized.
(3) The treasury stocks held by the company cannot be pledged in accordance with the provisions of the Securities and Exchange Act, nor can they enjoy shareholder rights before being transferred.
(4) According to the provisions of the Securities and Exchange Act, shares purchased back for transfer of shares to employees must be transferred within five years from the date of purchase. If the shares are not transferred within five years, the company shall be deemed to have unissued shares, and the shares shall be canceled by change registration. For shares purchased back in order to protect the company's credit and shareholders' rights and interests, the shares should be changed to be registered and canceled within six months from the date of purchase.
(4) In order to protect the company's credit and shareholders' rights and interests, the company repurchased 1,000 treasury shares by resolution of the board of directors on March 13, 2024. The scheduled repurchase period is from March 17, 2024 to March 28, 2024. The repurchase price ranges from 21.67 NT dollars to 45.95 NT dollars per share. The

company completed the execution on March 28, 2024, and bought back 1,000 shares for a total amount of 32,169 NT dollars.

In order to protect the company's credit and shareholders' rights and interests, the company repurchased 1,000 treasury shares by resolution of the board of directors on April 11, 2024. The scheduled repurchase period is from April 14, 2024 to May 13, 2024. The repurchase price ranges from 16.87 NT dollars to 45.11 NT dollars per share. The company completed the execution on April 21, 2024, and bought back 1,000 shares for a total amount of 27,384 thousand NT dollars.

The above-mentioned repurchased treasury shares were approved by the board of directors to reduce capital and cancel 2,000 thousand treasury shares on May 8, 2024. The base date for capital reduction was May 8, 2024.

In order to protect the company's credit and shareholders' rights and interests, the company repurchased 1,000 treasury shares through a resolution of the board of directors on October 17, 2024. The scheduled repurchase period is from October 18, 2024 to November 17, 2024. The repurchase price ranges from 21.46 NT dollars to 45.23 NT dollars per share. The company completed the execution on November 4, 2024, and bought back 1,000 shares for a total amount of 32,393 thousand NT dollars. The repurchased treasury shares were approved by the board of directors to reduce capital and cancel 1,000,000 treasury shares on December 19, 2024. The base date for capital reduction was December 19, 2024.

(19) Earnings per share

	2025	2024
Basic earnings per share	$ 1.01	$ 2.01
Diluted earnings per share	$ 1.01	$ 2.01

The company's basic and diluted earnings per share are as follows:

2. Basic earnings per share

The calculation of basic earnings per share and weighted average number of common shares is as follows:

	2025	2024
Net profit attributable to owners of the parent company (thousand NT dollars)	$ 167,928	$ 337,270
Weighted average number of common shares to calculate basic earnings per share (thousand shares)	165,537	167,841
Basic earnings per share	$ 1.01	$ 2.01

3. Diluted earnings per share

The earnings and weighted average number of common shares used to calculate diluted earnings per share are as follows:

	2025	2024
Net profit attributable to owners of the parent company	$ 167,928	$ 337,270
Weighted average number of common shares to calculate basic earnings per share (thousand shares)	165,537	167,841
Employee dividend expense (thousand shares)	147	209
Calculation of diluted earnings per share weighted average number of common shares (thousand shares)	165,684	168,050
Diluted earnings per share	$ 1.01	$ 2.01

If the company has the option to pay employee compensation in stocks or cash, then when calculating diluted earnings per share, the weighted average number of outstanding shares when the potential ordinary shares have a dilutive effect should be included in the calculation of diluted earnings per share. When calculating diluted earnings per share before deciding on the number of shares to distribute employee compensation in the following year, the dilutive effect of these potential ordinary shares will also continue to be considered.

(20) Operating income

	2025	2024
Customer contract revenue
merchandise sales revenue	$ 1,875,460	$ 1,887,383

Please refer to Note 4 (14) for the description of the consolidated company's income.
Please refer to Note 14 for the breakdown of revenue.
Contract balance

	December 31, 2025	December 31, 2024	January 31, 2024
Accounts receivable (Note 6(4))	$ 596,749	$ 715,379	$ 548,234
Contract liabilities – current (Show other current liabilities)
Product sales	$ 1,101	$ 2,791	$ 3,374

The amounts recognized as operating income from the opening contract liabilities in 2024 and 2024 were 2,108 thousand NT dollars and 2,762 thousand NT dollars respectively.

4. Refund liabilities

Based on historical experience and other known reasons, the combined company estimated that refund liabilities for possible sales returns and discounts in 2024 and 2024 were 9,019 thousand NT dollars and 15,868 thousand NT dollars respectively. As of December 31, 2024 and 2024, the balances of refund liabilities were 1,457 thousand NT dollars and 3,767 thousand NT dollars respectively.

(21) Other income

	2025	2024
Rental income	$ 81,806	$ 88,029
Less: depreciation	(28,469)	(27,003)
Other	8,675	10,885
Total	$ 62,012	$ 71,911

(22) Other benefits and losses

	2025	2024
Disposal of losses to real property, plant and equipment	$ (19,503)	$ (12,053)
Disposal of losses on investment real estate	(32)	(20)
Foreign Currency Exchange (Loss) Benefits	(29,841)	54,875
Impairment Reversal Benefit - Property, Plant and Equipment	6,777	4,332
Depreciation expense	(575)	(599)
What expenditures	(6,750)	(2,077)

Total
$ (49,924) $ 44,458

(23) Financial costs

	2025	2024
Interest expense
Bank borrowing	$ 28,932	$ 30,150
Lease liability	294	324
Other	117	80
Total	$ 29,343	$ 30,554

(24) Income tax

The income tax expense recognized in profit and loss of the combined company in 2025 and 2024 is adjusted as follows:

	2025	2024
Income tax on net profit before tax calculated at statutory tax rate	$ 49,456	$ 73,091
The income tax impact of excluding items according to tax laws	9,268	(12,716)
Income tax impact of loss deduction	(24,056)	(60,375)
The impact of temporary differences in the current period	20,782	35,642
Undistributed Earnings Levy	3,188	1,158
Previous year income tax adjustments	(1,218)	—
Income tax expense	$ 57,420	$ 36,800

The main components of income tax expenses recognized in profit and loss are as follows:

	2025	2024
Current income tax
Produced in this period	$ 38,804	$ 1,158
Previous period income tax adjustment	(1,218)	—

deferred income tax
Occurrence and reversal of temporary differences
Income tax expense
recognized in profit or loss

19,834
35,642
$ 57,420
$ 36,800

The merged company had no income tax directly recognized in equity in 2024 and 2024.
The details of the income tax recognized in other comprehensive profits and losses of the combined company in 2024 and 2024 are as follows:

2025
2024

Deferred income tax
Replacement of financial statements of foreign operating institutions exchange difference

$ 223
$ —

Income tax liabilities for the current period

	December 31, 2025	December 31, 2024
Current income tax liability	$ 36,705	$ 870

Deferred income tax assets and liabilities

(1) The analysis of deferred income tax assets is as follows:

2025

	Opening balance	Recognized in profit or loss	Recognized in Other comprehensive gains and losses	Ending balance
Temporary difference
Unrealized inventory depreciation losses	$ 18,805	$ (6,951)	$ -	$ 11,854
Exceeded limit of allowance for doubtful debts	15,662	(1,855)	-	13,807
Unrealized asset impairment on non-financial assets	4,570	(1,355)	-	3,215
Investments using the equity method	66,207	(7,577)	-	58,630
sales in transit	170	424	-	594
Unrealized employee paid leave	3,313	156	-	3,469
Unallocated manufacturing overhead	862	(243)	-	619
Unrealized sales discount	739	(452)	-	287
Loss deduction	5,793	(5,793)	-	-
Total	$ 116,121	$ (23,646)	$ -	$ 92,475

2024

	Opening balance	Recognized in profit or loss	recognized in Other comprehensive gains and losses	Ending balance
Temporary difference unrealized exchange loss	$ 4,689	$ (4,689)	$ —	$ —
Unrealized inventory depreciation losses	34,258	(15,453)	—	18,805
Exceeded limit of allowance for doubtful debts	15,729	(67)	—	15,662
Unrealized asset impairment on non-financial assets	5,437	(867)	—	4,570
Investments using the equity method	78,743	(12,536)	—	66,207
sales in transit	—	170	—	170
Unrealized employee paid leave	3,162	151	—	3,313
Unallocated manufacturing overhead	2,204	(1,342)	—	862
Unrealized sales discount	514	225	—	739
Loss deduction	—	5,793	—	5,793
Total	$ 144,736	$ (28,615)	$ —	$ 116,121

(2) Analysis of deferred income tax liabilities is as follows:

	2025
	Opening balance	Recognized in profit or loss	Recognized in Other comprehensive gains and losses	Ending balance
Temporary difference
Unrealized exchange benefits	$ 6,672	$ (3,842)	$ —	$ 2,830
Pension withdrawal amount exceeds withdrawal amount	1,722	30	—	1,752
Exchange balance of foreign operating institutions	—	—	223	223
Total	$ 8,394	$ (3,812)	$ 223	$ 4,805

2024

	Opening balance	Recognized in profit or loss	Recognized in Other comprehensive gains and losses	Ending balance
Temporary difference
Unrealized exchange benefits	$ —	$ 6,672	$ —	$ 6,672
sales in transit	27	(27)	—	—
Pension withdrawal amount exceeds withdrawal amount	1,340	382	—	1,722
Total	$ 1,367	$ 7,027	$ —	$ 8,394

Items not recognized as deferred income tax assets

	December 31, 2025	December 31, 2024
Loss deduction amount	$ —	$ 94,384
Amount of temporary difference	$ 325,412	$ 301,470

The deduction for the losses of the consolidated company has been fully deducted this year.

The profit-making enterprise income tax assessment situation of the Company and its domestic subsidiaries is as follows:

Company Name	Approval year
Our company	2023
Art Optronics Corp.	2023

(25) Additional information on the nature of fees

The functional categories of employee benefits, depreciation and amortization expenses incurred in the current period are summarized as follows:

Function Nature	2025
	Belongs to business Coster	Belongs to business fee payer	Belongs to non-business fee payer	Total
Employee benefits expenses
Salary expenses	$ 268,124	$ 133,725	$ —	$ 401,849
Labor health	29,911	12,631	—	42,542
Insurance expenses	10,386	4,881	—	15,267
Pension expenses	23,787	5,244	—	29,031
Other employee
Benefits expenses	39,008	8,843	29,044	76,895
depreciation expense	27	620	—	647

expense

Function Nature	2024
	Belongs to business Coster	Belongs to business fee payer	Belongs to non-business fee payer	Total
Employee benefits expenses
Salary expenses	$ 252,137	$ 125,048	$ -	$ 377,185
Labor health insurance expenses	27,670	11,726	-	39,396
Pension expenses	10,779	3,784	-	14,563
Other employee benefits expenses	21,713	4,313	-	26,026
depreciation expense	39,072	9,861	27,602	76,535
Amortization expense	-	49	-	49

2. Employee welfare expenses

(1) The company's pre-tax profits before deducting employee compensation and director's compensation for the current year are allocated to employee compensation at 1% to 10%, which can be distributed in stocks or cash as decided by the board of directors, and the recipients may include employees of subsidiary companies who meet certain conditions. In addition, no more than 1% is allocated to directors' compensation. The distribution of employee remuneration and directors' remuneration shall be made by the board of directors with the approval of more than two-thirds of the directors present and approved by more than half of the directors present, and shall be reported to the shareholders' meeting.

(2) The Company's estimated employee remuneration and director's remuneration in 2024 and 2024 were resolved by the board of directors on March 12, 2025 and March 13, 2024, respectively, as follows:

Estimated listing ratio

	2025	2024
Employee compensation	1%	1%
Directors' remuneration	0.5%	0.5%
Amount
	2025	2024
Employee compensation	$ 2,268	$ 3,798
Directors' remuneration	$ 1,134	$ 1,899

If there is still a change in the amount after the company's annual consolidated financial report is released, it will be treated as a

change in accounting estimates and will be adjusted and accounted for in the next year.

(3) There is no difference between the amount of employee remuneration and director remuneration decided to allot in 2024 and 2012 and the amount recognized in the financial reports of 2024 and 2012.

(4) Information related to employee remuneration and director remuneration resolved by the company's board of directors can be found at the "Public Information Observation Station" of the Taiwan Stock Exchange.

(26) Cash flow information

Investment activities that affect both cash and non-cash items

(1) Non-current assets to be sold

	2025	2024
Punishment in the current period	$ —	$ —
Add: equipment receivable at the beginning of the period	9,288	8,885
Less: Equipment receivables at the end of the period	(2,894)	(9,288)
Less: other receivables and others	(6,294)	—
Settlement of accounts payable
Exchange rate impact number	(100)	403
Receive cash in this period	$ —	$ —

(2) Real estate, plant and equipment

	2025	2024
Added in current period	$ 30,073	$ 16,712
Add: Equipment payment payable at the beginning of the period	3,067	1,093

Less: Equipment payment payable at the end of the period (1,573) (3,067)

Less: Number of prepaid equipment transfers (929) (672)

Less: other receivables and others (8,279)

Payables offset

Pay cash this period $ 22,359 $ 14,066

	2025	2024
Punishment in the current period	$ 1,201	$ 714
Add: equipment receivable at the beginning of the period	5,830	5,600
Less: Equipment receivables at the end of the period	(5,679)	(5,830)
Exchange rate impact number	(151)	230
Receive cash in this period	$ 1,201	$ 714

Changes in liabilities from financing activities

	short term borrowing	long term borrowing	deposit deposit	Lease liability	Total liabilities from financing activities
January 1, 2025 year of the R.O.C	$ 302,166	$1,001,600	$ 75,481	$ 12,601	$1,391,848
Changes in financing cash flows	(30,815)	(171,600)	(16,964)	(4,165)	(223,544)
Changes in lease liabilities	—	—	—	1,668	1,668
Impact of exchange rate changes	640	—	264	—	904
December 31, 2025 year of the R.O.C	$ 271,991	$ 830,000	$ 58,781	$ 10,104	$1,170,876
Short term loans	Long term loans	Deposit	Lease liability	Total liabilities from financing activities
---	---	---	---	---

(27) Capital Management

Based on the current operating industry characteristics and future company development, and taking into account changes in the external environment and other factors, the merged company plans the working capital requirements (including research and development expenses and debt repayment, etc.) required by the merged company in the future period to ensure the sustainable operation of the merged company, give back to shareholders while taking into account the interests of other stakeholders, and maintain the best capital structure to enhance shareholder value. Overall, the combined company adopts prudent risk management strategies.

(28) Financial instruments

Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Cash and cash equivalents	$ 159,062	$ 148,275
Financial assets measured at amortized cost – current	66,029	116,959
Financial assets measured at fair value through other comprehensive profit or loss – non-current	170,713	—
Notes receivable	311	305
Accounts receivable	596,749	715,379
Other receivables	12,349	26,242
Other financial assets	21,445	3,521
Deposit margin	6,720	6,975
Financial liabilities
Bank Short term Loans	271,991	302,166
Notes payable	148	179
Accounts payable	41,504	33,652
Other payables	63,058	78,379
Bank long term loans (Including part due within one year)	830,000	1,001,600

deposit deposit
58,781
75,481

2. Financial risk management purpose

The financial risk management objective of the consolidated company is to manage the exchange rate risk, interest rate risk, credit risk and liquidity risk related to operating activities. In order to reduce related financial risks, the combined company is committed to identifying, evaluating and avoiding market uncertainties to reduce the potential adverse impact of market changes on the company's financial performance. The important financial activities of the merged company are reviewed by the board of directors and in accordance with relevant regulations and internal control systems. During the execution of the financial plan, the merged company must adhere to relevant financial operating procedures regarding overall financial risk management and division of responsibilities.

3. Market risk

The combined company is primarily exposed to market risks such as changes in foreign currency exchange rates and interest rates.

(1) Foreign currency exchange rate risk

The operating activities of the consolidated company and the net investment in foreign operating institutions are mainly conducted in foreign currencies, thus generating foreign currency exchange rate risks. In order to avoid the decrease in the value of foreign currency assets and the fluctuation of future cash flows due to exchange rate changes, the merged company uses currency conversion of short-term borrowings to avoid exchange rate risks.

Since the net investment in foreign operating institutions is a strategic investment, the merged company has not hedged its risks.

A. The information on the significant foreign currency financial assets and liabilities of the merged company is as follows:

Unit: foreign currency NT dollars/NTS thousand

	December 31, 2025
	foreign currency	exchange rate	New Taiwan Dollar	sensitivity analysis
				Assumption changes	Changes in pre-tax (profit) loss	Changes in equity
Financial assets
monetary items
Japanese yen	50,160,886	0.2008	10,072	+10%	1,007	806
US dollars	24,305,774	31.43	769,930	+10%	76,393	61,114
EUR	1,300	36.9	48	+10%	5	4
RMB	3,779,032	4.496	16,991	+10%	1,699	1,359
Non-monetary items

December 31, 2025

	foreign currency	exchange rate	New Taiwan Dollar	Assumption changes	sensitivity analysis
					Changes in pre-tax (profit) loss	Changes in equity
Japanese yen	34,846,908	0.2051	7,148
RMB	10,500	4.222	44
financial liabilities
monetary items
Japanese yen	733,098,968	0.2008	147,206	+10%	(14,721)	(11,777)
US dollars	833,130	31.43	26,185	+10%	(2,619)	(2,095)
RMB	1,488	4.496	7	+10%	(1)	(1)
Non-monetary items
US dollars	48,002	31.43	1,509
RMB	6,859	4.411	30

December 31, 2024

	foreign currency	exchange rate	New Taiwan Dollar	Assumption changes	sensitivity analysis
					Changes in pre-tax (profit) loss	Changes in equity
Financial assets
Monetary items
Japanese yen	68,570,821	0.2099	14,393	+10%	1,439	1,151
US dollars	27,178,990	32.79	891,201	+10%	89,120	71,296
EUR	1,300	34.14	44	+10%	4	4
Korean won	40,000	0.0225	1	+10%	-	-
RMB	3,875,172	4.478	17,353	+10%	1,735	1,388
Non-monetary items
Japanese yen	22,734,058	0.2099	4,773
US dollars	19,837	32.47	644
Financial liabilities
Monetary items
Japanese yen	713,265,909	0.2099	149,715	+10%	(14,971)	(11,977)
US dollars	1,207,768	32.79	39,603	+10%	(3,960)	(3,168)
Non-monetary items
US dollars	192,598	32.74	6,305
RMB	111,412	4.443	495

B. Due to the significant impact of exchange rate fluctuations on the consolidated company's monetary items, the aggregate amounts of all exchange (loss) gains (including realized and unrealized)

recognized in 2024 and 2024 were (29,841) thousand NT dollars and 54,875 thousand NT dollars respectively.

(2) Interest rate risk

Interest rate risk refers to the risk of changes in the fair value of financial instruments due to changes in market interest rates. The interest rate risk of the combined company mainly comes from bank borrowings. Borrowings issued at floating interest rates expose the combined company to cash flow interest rate risks, and part of the risk is offset by cash and cash equivalents held at floating rates. Borrowings issued at fixed interest rates expose the combined company to fair value interest rate risks.

The sensitivity analysis of interest rate risk is based on changes in the fair value of fixed and floating rate borrowings at the end of the financial reporting period. If interest rates rise by ten basis points, the combined company's after-tax net profit in 2024 and 2024 will decrease by RMB 1,089,000 and RMB 1,148,000 respectively.

Credit risk management

Credit risk refers to the risk that a counterparty breaches its contractual obligations and causes financial losses to the combined company. The credit risk of the combined company mainly comes from receivables arising from operating activities. Operational-related credit risks and financial credit risks are managed separately.

(1) Operation-related credit risk

In order to maintain the quality of accounts receivable, the Merged Company has established operational-related credit risk management procedures.

The risk assessment of individual customers takes into account a number of factors that may affect the customer's ability to pay, including the customer's financial status, credit rating agency rating, consolidated company internal credit rating, historical transaction records and current economic conditions. The merged company will also use certain credit enhancement tools, such as prepayments and credit insurance, when appropriate, to reduce the credit risk of specific customers.

As of December 31, 2024 and 2024, the accounts receivable balance of the top ten customers accounted for 71% and 72% of the combined company's accounts receivable balance respectively. The credit concentration risk of the remaining accounts receivable is relatively insignificant.

(2) Financial credit risk

Credit risk on bank deposits, fixed income investments and other financial instruments is measured and monitored by the consolidated company's finance department. Since the transaction partners and

performance parties of the merged company are banks with good credit, financial institutions, corporate organizations and government agencies with investment grade or above, there are no major performance concerns, and therefore there is no significant credit risk.

Liquidity risk management

The goal of managing liquidity risk of the merged company is to ensure that the cash and equivalent cash required to maintain operations and sufficient bank financing lines ensure that the merged company has sufficient financial flexibility.

The following table summarizes and presents an analysis of the financial liabilities of the combined company according to the maturity date and undiscounted maturity amount that have been agreed upon for the repayment period:

	December 31, 2025
	Less than 1 year	2 to 3 years	4 to 5 years	More than 5 years	Total
Non-derivative financial liabilities
Notes and accounts payable	$ 41,652	$ —	$ —	$ —	$ 41,652
Other payables	63,058	—	—	—	63,058
Lease liability	4,677	5,505	216	—	10,398
Borrow money	1,017,781	85,493	22,179	—	1,125,453
deposit	48,492	7,427	2,862	—	58,781
Total	$1,175,660	$ 98,425	$ 25,257	$ —	$1,299,342
	December 31, 2024
---	---	---	---	---	---
	Less than 1 year	2 to 3 years	4 to 5 years	More than 5 years	Total
Non-derivative financial liabilities
Notes and accounts payable	$ 33,831	$ —	$ —	$ —	$ 33,831
Other payables	78,379	—	—	—	78,379
Lease liability	4,121	8,493	504	—	13,118
borrow money	326,904	908,540	126,188	—	1,361,632
deposit deposit	60,558	12,561	2,362	—	75,481
Total	$ 503,793	$ 929,594	$ 129,054	$ —	$1,562,441

Fair value of financial instruments

(1) The book amount of the financial instruments measured by the consolidated company divided by amortized cost (including cash and cash equivalents, financial assets measured at amortized cost, notes receivable, accounts receivable, other receivables, other financial assets, deposits, short-term loans, notes payable, accounts payable, other payables, long-term loans and deposits, etc.) is a reasonable approximation of fair value.

(2) The various levels of evaluation techniques used to measure the fair value of financial and non-financial instruments are defined as follows:

Level 1: Publicly quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

Level 3: Inputs for assets or liabilities that are not based on observable market data.

(3) Financial instruments measured at fair value as of December 31, 2024 and 2024 are classified by the consolidated company based on the nature, characteristics and risks of assets and liabilities and fair value levels. The relevant information is as follows:

Recurring fair value	December 31, 2025
	first level	Second level	third level	Total
Financial assets measured at fair value through other comprehensive profit or loss	$ 20,713	$ —	$ 150,000	$ 170,713
Recurring fair value	December 31, 2024
---	---	---	---	---
	first level	Second level	third level	Total
Financial assets measured at fair value through other comprehensive profit or loss	$ —	$ —	$ —	$ —

(4) Evaluation techniques and assumptions used to measure fair value

The fair value of financial assets is determined in the following manner:

The fair value of financial assets measured at fair value through other comprehensive gains and losses held by the consolidated company is estimated using the market comparable company method. The main assumption is that the fair value is based on the multiplier derived from the net profit or net equity value of the investee and the market quotation of comparable listed (counter) companies. The

estimate adjusts for the discount effect of the equity security's lack of market liquidity.

(5) There was no transfer of the fair value hierarchy of financial assets in 2024 and 2024.

(6) The detailed list of changes to the third level is as follows:

	2025
	Opening balance	Reclassification in this issue	recognized among others Comprehensive profit and loss	Punishment in this period	Exchange rate changes influence	Ending balance
Financial assets measured at fair value through other comprehensive profit or loss	$ —	$ 116,712	$ 33,288	$ —	$ —	$ 150,000
	2024
---	---	---	---	---	---	---
	Opening balance	Purchase this issue	recognized among others Comprehensive profit and loss	Punishment in this period	Exchange rate changes influence	Ending balance
Financial assets measured at fair value through other comprehensive profit or loss	$ —	$ —	$ —	$ —	$ —	$ —

(7) Quantitative information on fair value measurement of significant unobservable inputs (Level 3) The consolidated company's fair value measurement is classified as Level 3, which mainly includes financial assets measured at fair value through other comprehensive gains and losses - equity securities investments.

The list of quantitative information with significant unobservable input values is as follows:

Items	Evaluation technology	Not serious Observe input values	Significant unobservable Input values and fairness value relationship
Financial assets measured at fair value through other comprehensive profit or loss – Investments in equity instruments with no active market	Comparable to the Over-the-Counter Listed Company Law	Weighted average price-to-book multiplier taking into account liquidity haircuts	The higher the multiplier, the higher the fair value; the higher the liquidity discount, the lower the fair value.

Related party transactions

The transaction amounts and balances between the Company and its subsidiaries (which are related parties of the Company) have been eliminated when preparing the consolidated financial report and have not been disclosed in this note.

(1) Name of related person and their relationship

Relation person name	Relationship with our company
Shenzhen Lihuasheng Technology Co., Ltd. (Lihuasheng Technology)	Other related persons (note)
Lihuasheng (Hong Kong) Optoelectronics Technology Co., Ltd. (Lihuasheng Hong Kong)	Other related persons (note)
Shenzhen Lihuasheng Optoelectronics Technology Co., Ltd. (Lihuasheng Optoelectronics)	Other related persons (note)
Smart International Biomedical Technology Co., Ltd. (Jubilee)	Other related persons (Note 1)

Note : The company's subsidiary, Lite Optoelectronics Technology (Suzhou) Co., Ltd., sold 13% of the equity of Shenzhen Lihuasheng Technology Co., Ltd. in November 2024, and the change was completed on December 9, 2024, with the shareholding ratio reduced to 19%.

Note 1: The company is one of its board members.

(2) Major transactions with related parties

Sales revenue

Name of related person	2025	2024
Li Huasheng Hong Kong	$ —	$ 7,584
Lihuasheng Technology	15,274	11,249
	$ 15,274	$ 18,833

As for the price of transactions between the merged company and related parties, there are no other transactions under the same circumstances in 2025 and 2024 for comparison. The credit period for related parties is 90 to 120 days per month, and for general customers is approximately 30 to 120 days per month.

Net purchase amount

Name of related person	2025	2024
Wisdom must be established	$ 500	$ —

Manufacturing cost-processing fee

Name of related person	2025	2024
Li Huasheng Hong Kong	$ —	$ 495

Operating cost deduction - sales scrap income

Name of related person	2025	2024
Li Huasheng Hong Kong	$ —	$ 420

Operating expenses

Name of related person	2025	2024
Li Huasheng Hong Kong	$ 862	$ 98
Lihuasheng Technology	14,315	5,123
Wisdom must be established	158	—
	$ 15,335	$ 5,221

Accounts receivable

Name of related person	December 31, 2025	December 31, 2024
Li Huasheng Hong Kong	$ 60,403	$ 65,968
Less: Allowance for losses	(60,403)	(65,968)
	$ —	$ —

Information on changes in allowance for losses is as follows:

	2025	2024
Opening balance	$ 65,968	$ 64,333
Provision for impairment losses in the current period (reversal)	(5,565)	1,635
Ending balance	$ 60,403	$ 65,968

Other receivables (excluding capital loans)

Name of related person	December 31, 2025	December 31, 2024
Li Huasheng Hong Kong	$ 11,019	$ 11,496
Lihuasheng Optoelectronics	—	6,270
Small plan	11,019	17,766
Less: Allowance for losses	(11,019)	(17,766)
	$ —	$ —

Information on changes in allowance for losses is as follows:

	2025	2024
Opening balance	$ 17,766	$ 18,067
Reversal of impairment losses in the current period	(6,543)	(513)
Exchange rate impact number	(204)	212
Ending balance	$ 11,019	$ 17,766

8. Lending money to related parties

Other receivables

Name of related person	December 31, 2025	December 31, 2024
Lihuasheng Technology	$ 2,784	$ 5,821
Less: Allowance for losses	(2,784)	(5,821)
	$ —	$ —

Information on changes in allowance for losses is as follows:

	2025	2024
Opening balance	$ 5,821	$ 8,364
Reversal of impairment losses in the current period	(2,950)	(2,820)
Exchange rate impact number	(87)	277

Ending balance
$ 2,784
$ 5,821

Interest income

Name of related person
2025
2024

Lihuasheng Technology
$ 122
$ —

The combined company's capital loan and Lihuasheng Technology are unsecured loans with a borrowing interest rate of 1%.

Acquisition of real estate, plant and equipment

	2025
Relation person name	Get price
Lihuasheng Technology	$ 2,709
Lihuasheng Optoelectronics	5,570
Total	$ 8,279

(3) Rewards and remuneration for key management levels

Remuneration information for directors and other key management members is as follows:

	2025	2024
Salary and other short-term benefits	$ 20,493	$ 17,659
severance benefits	125	108
Total	$ 20,618	$ 17,767

Pledged assets

Items	content	Book value
		December 31, 2025	December 31, 2024
Financial assets measured at amortized cost – current	Time deposits, provided to financial institutions as collateral for short-term borrowings	$ —	$ 16,395
Other financial assets – current	Demand deposits, provided to financial institutions as collateral for short-term borrowings	21,445	3,521
Property, plant and equipment	Provided to financial institutions as collateral for long-term and short-term borrowings	1,198,081	1,295,083

Investment real estate	Provided to financial institutions as collateral for long-term and short-term borrowings	650,458	550,753
Deposit Margin – Non-Current	Customs bureau’s security deposit and rental security deposit, etc.	6,720	6,975
Total		$ 1,876,704	$ 1,872,727

9. Significant contingent liabilities and unrecognized contractual commitments

In addition to those mentioned in other notes, the major commitments and contingencies of the combined company on the balance sheet date are as follows:

(1) The balance of the issued and unused letters of credit for imported raw materials of the merged company is listed as follows:

Currency	December 31, 2025	Unit: thousand NT dollars December 31, 2024
Japanese yen	$ 164,056	$ 156,071
US dollars	$ 81	$ 109
New Taiwan Dollar	$ 6,205	$ 1,706

(2) The amount of deposit guarantee notes issued by the merged company to apply for a loan line from the bank is listed as follows:

December 31, 2025	December 31, 2024
$ 1,126,450	$ 1,172,367

10. Major disaster losses: None.

11. Significant post-period events

The company passed the resolution of the board of directors on January 8, 2025. In order to improve the efficiency of capital utilization, the company plans to participate in the third round of cash capital increase of Jubilee International Biomedical Co., Ltd. based on its shareholding ratio, with a planned investment amount of 44,333 thousand NT dollars. The company paid an investment of RMB 44,333,000 in January 2025.

12. Others: None.

13. Matters disclosed in the notes

When preparing the consolidated financial report, all significant transactions between the parent company and its subsidiaries and their balances have been eliminated.

(1) Information related to major transaction matters:

Loans of funds to others: Appendix 1.
Endorsement guarantee for others: None.
Significant marketable securities held at the end of the period (excluding investment subsidiaries, affiliated enterprises and joint venture interests): Appendix 2.
The amount of goods purchased and sold with related parties reaches NT$100 million or more than 20% of the paid-in capital: None.
Amounts receivable from related parties amount to NT$100 million or more than 20% of the paid-in capital: None.
Business relationships and major transactions and amounts between the parent company and its subsidiaries and between each subsidiary company: Appendix 3.

(2) Information related to reinvestment business:

The name of the invested company, the region where it is located, and other related information (excluding mainland invested companies): Appendix 4.

(3) Mainland investment information:

Name of the mainland invested company, main business items, paid-in capital, investment method, capital remittances and inflows, shareholding ratio, investment profits and losses, book value of investments at the end of the period, repatriated investment profits and losses, and investment limits in the mainland: Appendix 5.
Major transactions that occur directly or indirectly with mainland invested companies through third regions, as well as relevant information on their prices, payment terms, unrealized profits and losses, etc.: Appendix 1 to Appendix 5.

14. Department information

Information provided to key operating decision makers to allocate resources and evaluate department performance, focusing on each type of product or service delivered or provided. The merged company is engaged in the research and development, manufacturing, testing and sales of various polarizing plates. In 2024, it was identified that only a single operating department should be reported, and the overall operating profit and loss was considered. For the relevant department information in 2024, please consolidate the consolidated income statement for details.

There is no significant inconsistency between the accounting policies of the consolidated company's operating departments in 2024 and the summary of important accounting policies stated in Note 4. The reportable departments of the merged company in 2024 are as follows:

TFT Department:

Mainly responsible for the production and sales of polarizing plates for digital cameras, digital photo frames, mobile phones, LCD projectors, notebook computers, LCD monitors, color TVs (Full HD) and car navigation systems.

TN/STN Department:

Mainly responsible for the production and sales of polarizing plates for electronic watches, computers, handheld game consoles, electronic dictionaries, mobile phones, stock machines, etc.

Other departments:

Mainly responsible for the production and sales of touch screens, sunglasses, precision coatings and related optical materials.

(1) Department income and operating results

The income and operating results of the continuing operating units of the merged company are analyzed by reportable departments as follows:

	2024			Unit: Thousands of NTD
	TFT	TN/STN	other	Adjust and write-off	merge
Revenue from external customers of the enterprise	$1,401,229	$ 420,684	$ 65,470	$ -	$1,887,383
Department profit and loss	443,142	138,820	(52,896)	-	529,066

(2) Reconciliation information of departmental profits and losses

The income from external customers provided by the combined company to the chief operating decision-maker shall adopt the same accounting policy as the operating income in the consolidated income statement.
The reportable operating department profit and loss and pre-tax net profit in this period are adjusted as follows:

	2024
Segment Profit and Loss of Reportable Departments	$ 529,066
Unclassified related gains and losses	(176,364)
Non-operating income and expenses	21,368
Net profit before tax	$ 374,070

Departmental profits and losses refer to the gross profits earned by each department, minus apportioned operating expenses, excluding headquarters management costs and part of operating expenses, interest income, gains and losses from disposal of fixed assets, exchange gains and losses, depreciation of idle assets, interest expenses, other non-industry gains and losses, and income taxes, etc. This measure is

provided to the chief operating decision-maker for the purpose of allocating resources to departments and measuring their performance.

(3) Department assets and liabilities

The measured amount of assets and liabilities of the consolidated company is not a measure for operating decision-makers, so the measured amount of assets and liabilities that should be disclosed is zero.

(4) Regionally differentiated information

The regional information of the merged company in 2024 and 2024 is as follows:

	2025		2024
	income	non-current assets	income	non-current assets
Taiwan	$ 123,439	$2,079,361	$ 127,888	$2,126,390
China	1,723,237	197,077	1,728,021	209,226
South Korea	105	—	1,843	—
Japan	11,580	—	11,022	—
Other	17,099	—	18,609	—
total	$1,875,460	$2,276,438	$1,887,383	$2,335,616

Non-current assets do not include classified financial instruments, deposits, deferred income tax assets and net defined benefit assets.

(5) Important customer information

The details of the merged company's customers whose sales amounted to more than 10% of the total operating revenue in 2024 and 2024 are as follows:

	2025	2024
Company A	$ 372,858	$ 225,840
Company B	270,327	399,173
Company C	232,999	182,079
Company D	192,859	287,880
Company E	155,991	223,159
	$ 1,225,034	$ 1,318,131

Attached table 1

Loans of funds to others

Unit: Thousands of NTD

No. (Note 1)	Lending funds company	Loans and objects	Current items (Note 2)	Is it Relevant person	This issue maximum amount (Note 3)	Ending balance (Note 8)	Actual expenditure Amount	Interest rate	Nature of loan (Note 4)	Business dealings Amount (Note 5)	Reasons why short-term financing is necessary (Note 6)	Provision Amount of loss	Collateral		Limit on loans granted to a single party (Note 7/9/10)	Ceiling on total loans granted (Note 7/9/10)
													name	value
0	Optimax	Optimax Technology (Suzhou) Co., Ltd	Other receivables	YES	$ 162,606	$ 81,535	$ 81,535	—	The need for short-term financing	$ —	for operational turnover	$ —	none	none	$ 991,732	$ 991,732
1	Optimax Technology (Suzhou) Co., Ltd.	Shenzhen Lihuasheng Technology Co., Ltd.	Other receivables	YES	5,945	2,784	2,784	1%	The need for short-term financing	$ —	for operational turnover	$ 2,784	none	none	53,407	53,407

Note 1: The description of the number column is as follows:
A. Fill in 0 for the issuer.
B. The invested companies are numbered sequentially by company number starting from Arabic numeral 1.

Note 2: Items such as accounts receivable from related enterprises, accounts receivable from related parties, shareholders' transactions, advance payments, temporary payments, etc. must be filled in this field if they are in the nature of a capital loan.

Note 3: The maximum balance of funds loaned to others in the current year.

Note 4: The nature of the loan should be listed as business transactions or the need for short-term financing.

Note 5: If the nature of the fund loan is a business transaction, the business transaction amount should be filled in. The business transaction amount refers to the business transaction amount between the company lending the funds and the loan recipient from the transaction to the previous year.

Note 6: If the nature of the fund loan requires short-term financing, the reason for the necessary loan and the purpose of the loan should be specified, such as: repayment of loans, purchase of equipment, business turnover, etc.

Note 7: The company should fill in the fund loan limit for individual objects and the total fund loan limit set by the company in accordance with the operating procedures for loaning funds to others, and explain the calculation method of fund loan to individual objects and the total limit in the remarks column.

Note 8: If a publicly listed company submits fund loans to the board of directors on a case-by-case basis in accordance with Paragraph 1 of Article 14 of the Guidelines for the Handling of Fund Loans and Endorsement Guarantees for Publicly Offered Companies, even if no funds have been allocated, the amount determined by the board of directors should still be included in the announced balance to disclose the risks it bears; however, if the funds are subsequently repaid, the balance after repayment should be disclosed to reflect the risk adjustment. If a publicly listed company authorizes the chairman of the board of directors to allocate loans in installments or make recurring use within a certain amount and within a one-year period in accordance with Paragraph 2 of Article 14 of the Code of Conduct, the loan amount approved by the board of directors should still be used as the balance for announcement reporting.

Note 9: The company's working methods for loaning funds to others are as follows:

A. The amount of the company's loans to individual objects due to business transactions shall not exceed the amount of the company's business transactions with individual objects, and shall not exceed 40% of the total net value of the company's most recent financial report certified by an accountant; the total loan amount shall not exceed 40% of the total net value of the company's most recent financial report certified by an accountant. The above-mentioned business transaction amount refers to the purchase or sales amount between the two parties, whichever is higher.

B. Due to the need for short-term financing of funds, the company's loan amount to individual objects shall not exceed 40% of the total net worth of the company's most recent financial report certified by an accountant.

C. Due to the necessity of business transactions and short-term financing of the company, the total loan amount shall not exceed 40% of the total net worth of the company's most recent financial report certified by an accountant.

Note 10: The working methods of Lite Optoelectronics Technology (Suzhou) Co., Ltd.'s capital loan to others are as follows:

C. The company needs short-term financing due to business dealings or companies holding more than 20% (inclusive) of the shares. The total loan amount shall not exceed 40% of the total net worth of the company's most recent financial report certified by an accountant.

Attached table 2

Significant marketable securities held at the end of the period
(excluding investment subsidiaries, affiliated enterprises and joint venture interests)

Unit: Thousands of NTD

Investing company	Marketable securities type and name	Issuer relationship	Subjects	End of term
				Number of shares/number of units	Carrying amount (Note 3)	Shareholding ratio	Fair value
Optimax	Jubilee International Biomedical Co., Ltd.	—	Financial assets measured at fair value through other comprehensive profit or loss – non-current	15,000,000	$ 150,000	19.834%	$ 150,000
Optimax Technology (Suzhou) Co., Ltd.	BOE Precision Technology Co., Ltd.	—	—	1,000,000	20,713	0.126%	20,713

Note 1: The securities referred to in this table refer to stocks, bonds, beneficiary certificates and securities derived from the above items within the scope of IFRS No. 9 "Financial Instruments".
Note 2: If it is measured by fair value, please fill in the amount after adjustment for fair value evaluation in column B of the book amount; if it is not measured by fair value, please fill in the book balance of original acquisition cost or amortized cost minus accumulated impairments in column B of the book amount.
Note 3: The above disclosure standard amount is based on $1\%$ of consolidated total assets.

Attached table 3

Business relationships and major transactions between parent and subsidiary companies

January 1 to December 31, 2025

Unit: Thousands of NTD

Serial number (Note 1)	Trader name	Transaction objects	Relationship with traders (Note 2)	Transactions
				Subjects	Amount	Transaction conditions	Ratio of consolidated revenue and total assets (Note 3,4)
0	Optimax	Lite Optoelectronics Technology (Suzhou) Co., Ltd.	1	Other receivables	$ 81		2%
1	Optimax Technology (Suzhou) Co., Ltd.	Our company	2	Other income	25,250		1%
2	Art Optronics Corp.	Our company	2	Sales revenue	25,277	The credit period is 7 days after the arrival of the goods. Telegraphic transfer is required.	1%

Note 1: Information on business transactions between the parent company and its subsidiaries should be indicated in the number column respectively. The method of filling in the number is as follows:
1. Fill in 0 for the parent company.
2. Subsidiaries are numbered sequentially starting from Arabic numeral 1 according to company number.

Note 2: There are the following three types of relationships with traders, just indicate the type (if it is the same transaction between parent and subsidiary companies or between subsidiaries, there is no need to disclose it repeatedly. For example: a transaction between a parent company and a subsidiary company, if the parent company has disclosed it, the subsidiary part does not need to be disclosed repeatedly; a transaction between a subsidiary company and a subsidiary company, if one subsidiary has disclosed it, the other subsidiary does not need to disclose it again):

Parent company versus subsidiary company.
Subsidiary to parent company.
Subsidiary to subsidiary.

Note 3: The calculation of the ratio of the transaction amount to the consolidated total revenue or total assets. If it is an asset and liability account, it is calculated as the closing balance to the consolidated total assets; if it is a profit and loss account, it is calculated as the cumulative amount to the consolidated total revenue.

Note 4: Individual transaction amounts that do not reach 1% of consolidated total revenue or total assets will not be disclosed; other methods of disclosure are asset and income.

Attached table 4

The name of the invested company, the region where it is located, and other related information (excluding mainland invested companies)

Investment company Name	Investee company name (Note 1, 2)	Srea	Main business Project	Original investment amount		End of period held			Investee company's profit and loss for the current period (Note 2(2))	Investment (loss) recognized in the current period (Note 2(3))	Remark
				End of current period	End of last year	Number of shares	Ratio%	Carrying amount
Optimax	Art Optronics Corp.	Taiwan	trading industry	$ 2,011	$ 2,011	225,000	100%	$ 816	$ (28)	$ (28)	Subsidiaries
	OPTIMAX OPTOELECTRONIC (MAURITIUS) CORP. (OOMC)	Mauritius	investment industry	614,524 (USD 19,000 dollars)	614,524 (USD19,000 dollars)	19,000,000	100%	133,517	15,580	15,580	Subsidiaries
	Intelligent Information Security Technology Inc.	Taiwan	IC Design	120,000	120,000	24,000,000	24.54%	4,589	(32,663)	(31,411)	Associate company

Note 1: If a public issuing company has a foreign holding company and uses Consolidated statements as the main financial report in accordance with local laws and regulations, the disclosure of information about the foreign investment company may only disclose the relevant assets of the holding company.
Note 2 : For situations not described in Note 1, fill in according to the following regulations. :

(1) The columns for 'Name of Invested Company,' 'Location,' 'Main Business Activities,' 'Original Investment Amount,' and 'Shareholding at the End of the Period' should be filled out in order according to the investment situation of this (publicly offered) company and the re-investment situation of each directly or indirectly controlled invested company. In the remarks column, the relationship between each invested company and this (publicly offered) company should be noted (e.g., whether it is a subsidiary or a sub-subsidiary).
(2) The 'Current Profit or Loss of the Invested Company' column B should be filled in with the current profit or loss amounts of each invested company.
(3) In column B, 'Investment Gains and Losses Recognized This Period,' only the gains and losses of each subsidiary directly invested in by the (publicly listed) company and of each investee accounted for using the equity method need to be filled in; the rest may be left blank. When filling in the 'Gains and Losses of Subsidiaries Directly Invested

Recognized This Period,' it should be ensured that the gains and losses of each subsidiary for the period already include the investment gains and losses that should be recognized from their re-investments according to regulations.

【Attached Table 5】

Information on investments in Mainland China

Investee in Mainland China	Main Business activities	Paid-in capital (Note 5)	Investment method	Accumulated amount of remittance from Taiwan as of January 1, 2024 (Note 5)	Amount remitted from Taiwan or amount remitted back to Taiwan for the current period		Accumulated amount of remittance from Taiwan as of December 31, 2025 (Note 5)	Ownership held by Optimax (direct or indirect)	Investment Income (loss) recognized for the current period (Note 2)	Carrying amount of investments as of December 31, 2025	Investment returns have been repatriated as of the end of this period	Investment returns have been repatriated as of the end of this period
					Remitted to mainland China	Remitted back to Taiwan
Optimax Technology (Suzhou) Co., Ltd	Manufacturing and selling of polarizers	$614,524(USD 19,000,000)	(Note 1)	$614,524 (USD 19,000,000)	$ -	$ -	$614,524 (USD 19,000,000)	$ 15,580	100%	$ 15,580	$ 133,517	$ -
Accumulated remittances from Taiwan at the end of this period Amount of investment in mainland China (Note 5)	The investment amount is approved by the Investment Review Committee of the Ministry of Economic Affairs (Note 4)	Investment limits in mainland China as stipulated by the Investment Review Committee of the Ministry of Economic Affairs (Note 3)
---	---	---
$614,524 (USD 19,000)	$694,603 (USD 22,100)	$ 1,487,599

Note 1: Investment in Mainland China is made through OPTIMAX OPTOELECTRONIC (MAURITIUS) CORP.
Note 2: Based on the unaudited financial statements of the investee company for the same period.
Note 3: According to the "Regulations Governing the Review Principles for Investment or Technical Cooperation in Mainland China" issued by the Investment Commission, Ministry of Economic Affairs, the upper limit for cumulative investments in Mainland China is NT$80 million, or 60% of the company's net worth or consolidated net worth, whichever is higher.
Note 4: For amounts involving foreign currencies, the New Taiwan Dollar equivalent is converted based on the spot exchange rate and average exchange rate as of the financial reporting date.
Note 5: For amounts involving foreign currencies, the New Taiwan Dollar equivalent is converted based on the exchange rate on the actual remittance date from Taiwan.

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Optimax — Annual Report 2024

52283_rns_2026-06-08_d51d8a3e-8ce7-43c7-8017-74b75cf3b52b.pdf

Optimax Technology Corporation and its Subsidiaries

Optimax Technology Corporation Annual Report

Table of Contents

Statement on consolidated financial statements of related companies

Opinion

Basis for Opinion

Key Auditor Matters

Inventory evaluation

Impairment assessment of property, plant and equipment

Other matters

Responsibilities of Management and Governance entities for Consolidated Financial reporting

Accountants' responsibilities for reviewing consolidated financial reports

Optimax Technology Corporation and its Subsidiaries

Consolidated statement of Changes in Equity

Optimax Technology Corporation and its Subsidiaries

Notes to Consolidated Financial Report

1. Company history

2. Date and procedures for approving financial reports

3. Application of newly released and revised standards and interpretations

4. Summary of significant accounting policies

(1) Comply with the statement

(2) Basis for compilation

(3) Basis of merger

(12) Financial instruments

1. Financial assets

(1) Measurement types

A. Financial assets measured at amortized cost

3. Other equity items

4. Treasury stocks

(19) Earnings per share

2. Basic earnings per share

3. Diluted earnings per share

(20) Operating income

4. Refund liabilities

(21) Other income

(22) Other benefits and losses

2. Employee welfare expenses

Estimated listing ratio

(26) Cash flow information

2. Financial risk management purpose

3. Market risk

(1) Foreign currency exchange rate risk

8. Lending money to related parties

Other receivables

9. Significant contingent liabilities and unrecognized contractual commitments

10. Major disaster losses: None.

11. Significant post-period events

12. Others: None.

13. Matters disclosed in the notes

14. Department information

TFT Department:

Attached table 1

Loans of funds to others

Attached table 4

【Attached Table 5】

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Optimax Annual Report 2024