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ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REVIEW REPORT

MARCH 31, 2026 AND 2025

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

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INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Orient Semiconductor Electronics, Limited.

Introduction

We have reviewed the accompanying consolidated balance sheets of Orient Semiconductor Electronics, Limited and subsidiaries (the "Group") as at March 31, 2026 and 2025, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for qualified conclusion

As explained in Note 4(3) B, the financial statements of certain insignificant consolidated subsidiaries, and information disclosed in Note 13 were not reviewed by independent auditors. Total assets of these subsidiaries amounted to NT$468,047 thousand and NT$380,366 thousand, constituting 2% and 2% of the consolidated total assets as at March 31, 2026 and 2025, respectively, total liabilities amounted to NT$136,247 thousand and NT$66,517 thousand, constituting 1% and 1% of the consolidated total liabilities as at March 31, 2026 and 2025, respectively, and the total comprehensive income (loss) amounted to NT$9,130 thousand and NT$10,168 thousand, constituting 1% and 5% of the consolidated total comprehensive (loss) income for the three-month periods then ended, respectively.

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Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and information disclosed in Note 13 been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2026 and 2025, and of its consolidated financial performance and its consolidated cash flows for the three-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission.

Wang, Kuo-Hua
Chiang, Tsai-Yen
For and on behalf of PricewaterhouseCoopers, Taiwan
April 28, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

(Expressed in thousands of New Taiwan dollars)

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2026, DECEMBER 31, 2025 AND MARCH 31, 2025

	Assets	Notes	March 31, 2026		December 31, 2025		March 31, 2025
			AMOUNT	%	AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 3,066,961	14	$ 2,718,816	13	$ 3,963,243	21
1140	Current contract assets	6(23)	375,609	2	459,006	2	371,228	2
1170	Accounts receivable, net	6(4)	4,588,567	20	4,650,711	23	3,871,391	20
1180	Accounts receivable due from related parties, net	6(4) and 7	819	-	-	-	422	-
1200	Other receivables		109,309	-	100,172	1	73,904	1
1210	Other receivables due from related parties	7	45,126	-	46,243	-	-	-
1220	Current tax assets		673	-	145	-	3,992	-
130X	Inventories	6(5)	2,871,392	13	2,588,913	13	1,771,258	9
1410	Prepayments	6(6)	389,096	2	92,113	-	101,240	1
1479	Other current assets, others		26,030	-	25,662	-	23,053	-
11XX	Current Assets		11,473,582	51	10,681,781	52	10,179,731	54
Non-current assets
1510	Financial assets at fair value through profit or loss - non-current	6(2)	8,750	-	-	-	-	-
1517	Non-current financial assets at fair value through other comprehensive income	6(3)	2,337,416	10	1,833,683	9	1,755,000	9
1600	Property, plant and equipment	6(8) and 8	8,432,023	37	7,807,304	38	6,474,363	34
1755	Right-of-use assets	6(9)	114,153	1	115,887	-	86,972	1
1780	Intangible assets	6(11)	46,621	-	39,284	-	56,142	-
1840	Deferred tax assets		142,712	1	201,001	1	375,651	2
1915	Prepayments for business facilities		13,856	-	7,619	-	55,360	-
1920	Guarantee deposits paid	8	4,849	-	5,067	-	5,103	-
1990	Other non-current assets, others		20,954	-	22,604	-	26,964	-
15XX	Non-current assets		11,121,334	49	10,032,449	48	8,835,555	46
1XXX	Total assets		$ 22,594,916	100	$ 20,714,230	100	$ 19,015,286	100

(Continued)

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2026, DECEMBER 31, 2025 AND MARCH 31, 2025

(Expressed in thousands of New Taiwan dollars)

	Liabilities and Equity	Notes	March 31, 2026		December 31, 2025		March 31, 2025
			AMOUNT	%	AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(12) and 8	$ 224,000	1	$ 320,704	2	$ -	-
2130	Current contract liabilities	6(23)	145,667	1	60,115	-	73,357	-
2170	Accounts payable		5,058,350	22	5,277,313	25	4,345,119	23
2180	Accounts payable to related parties	7	1,269	-	2,853	-	2,493	-
2200	Other payables	6(13)	2,304,036	10	1,578,581	8	1,805,604	10
2230	Current tax liabilities		24,243	-	24,243	-	37,244	-
2250	Current provisions	6(19)	51,638	-	50,670	-	62,912	-
2280	Current lease liabilities		22,164	-	20,541	-	11,598	-
2320	Long-term liabilities, current portion	6(16) and 8	184,002	1	456,432	2	418,997	2
2365	Current refund liabilities		22,546	-	26,260	-	21,997	-
2399	Other current liabilities, others	6(14) and 7	422,611	2	121,313	1	104,927	1
21XX	Current Liabilities		8,460,526	37	7,939,025	38	6,884,248	36
Non-current liabilities
2530	Bonds payable	6(15)	2,351,534	10	-	-	-	-
2540	Non-current portion of non-current borrowings	6(16) and 8	228,203	1	1,498,454	7	928,705	5
2580	Non-current lease liabilities		98,752	1	101,570	1	80,096	1
2640	Net defined benefit liability, non-current		7,356	-	5,146	-	25,015	-
2645	Guarantee deposits received		3,511	-	15,837	-	19,343	-
25XX	Non-current liabilities		2,689,356	12	1,621,007	8	1,053,159	6
2XXX	Total Liabilities		11,149,882	49	9,560,032	46	7,937,407	42
Equity attributable to owners of parent
	Share capital	6(18)(20)
3110	Share capital - common stock		6,589,763	29	6,590,043	32	5,602,283	29
3120	Preference share		-	-	-	-	1,801,800	10
	Capital surplus	6(21)
3200	Capital surplus		578,083	3	375,146	2	477,003	2
	Retained earnings	6(22)
3310	Legal reserve		655,247	3	655,247	3	528,205	3
3320	Special reserve		61,344	-	61,344	-	192,793	1
3350	Unappropriated retained earnings		3,464,712	15	3,904,661	19	2,660,192	14
	Other equity interest
3400	Other equity interest		95,885	1	( 432,243) ( 2 )	( 184,397) ( 1 )
31XX	Equity attributable to owners of the parent		11,445,034	51	11,154,198	54	11,077,879	58
3XXX	Total equity		11,445,034	51	11,154,198	54	11,077,879	58
	Significant contingent liabilities and unrecognised contract commitments	9
	Significant events after the balance sheet date	11
3X2X	Total liabilities and equity		$ 22,594,916	100	$ 20,714,230	100	$ 19,015,286	100

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

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

	Items	Notes	Three months ended March 31
			2026		2025
			AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(23) and 7	$ 4,860,476	100	$ 4,077,476	100
5000	Operating costs	6(5)(11)(28)(29) and 7	( 4,238,773)	( 87)	( 3,538,919)	( 87)
5900	Net operating margin		621,703	13	538,557	13
	Operating expenses	6(11)(28)(29)
6100	Selling and administrative expenses		( 238,824)	( 5)	( 236,509)	( 6)
6300	Research and development expenses		( 110,718)	( 2)	( 105,191)	( 2)
6450	Impairment gain and reversal of impairment loss determined in accordance with IFRS 9	12(2)
6000	Total operating expenses		( 349,101)	( 7)	( 341,795)	( 8)
6900	Operating profit		272,602	6	196,762	5
	Non-operating income and expenses
7100	Interest income	6(24)	6,050	-	7,519	-
7010	Other income	6(25) and 7	19,055	-	9,888	-
7020	Other gains and losses	6(26)	5,035	-	21,309	1
7050	Finance costs	6(27)	( 11,096)	-	( 4,121)	-
7000	Total non-operating revenue and expenses		19,044	-	34,595	1
7900	Profit before income tax		291,646	6	231,357	6
7950	Income tax expense	6(30)	( 57,016)	( 1)	( 44,078)	( 1)
8200	Profit for the period		$ 234,630	5	$ 187,279	5
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8316	Unrealised gains from investments in equity instruments measured at fair value through other comprehensive income	6(3)
8310	Components of other comprehensive income that will not be reclassified to profit or loss		$ 503,733	10	$ 16,200	-
	Components of other comprehensive income that will be reclassified to profit or loss		503,733	10	16,200	-
8361	Financial statements translation differences of foreign operations		6,710	-	3,786	-
8399	Income tax related to components of other comprehensive income that will be reclassified to profit or loss	6(30)	( 1,342)	-	( 757)	-
8360	Components of other comprehensive income that will be reclassified to profit or loss		5,368	-	3,029	-
8300	Total other comprehensive income for the period		$ 509,101	10	$ 19,229	-
8500	Total comprehensive income for the period		$ 743,731	15	$ 206,508	5
8610	Profit, attributable to:
8610	Owners of parent		$ 234,630	5	$ 187,279	5
8710	Comprehensive income attributable to:
8710	Owners of parent		$ 743,731	15	$ 206,508	5
	Basic earnings per share	6(31)
9750	Basic		$	0.33	$	0.27
9850	Diluted		$	0.33	$	0.25

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

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(Expressed in thousands of New Taiwan dollars)

	Equity attributable to owners of the parent
	Share capital			Retained earnings			Other equity interest			Unearned compensation
	Notes	Ordinary share	Preference share	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
Three months ended March 31, 2025
Balance at January 1, 2025		$ 5,603,083	$ 1,801,800	$ 476,203	$ 528,205	$ 192,793	$ 3,213,321	$ 10,989	($ 72,333)	($ 184,008)	$ 11,570,053
Profit for the period		-	-	-	-	-	187,279	-	-	-	187,279
Other comprehensive income		-	-	-	-	-	-	3,029	16,200	-	19,229
Total comprehensive income		-	-	-	-	-	187,279	3,029	16,200	-	206,508
Appropriation and distribution of 2024 retained earnings:
Cash dividend	6(22)	-	-	-	-	-	( 740,408 )	-	-	-	( 740,408 )
Share-based payments transactions	6(18)(20)	( 800 )	-	800	-	-	-	-	-	41,726	41,726
Balance at March 31, 2025		$ 5,602,283	$ 1,801,800	$ 477,003	$ 528,205	$ 192,793	$ 2,660,192	$ 14,018	($ 56,133)	($ 142,282)	$ 11,077,879
Three months ended March 31, 2026
Balance at January 1, 2025		$ 6,590,043	$ -	$ 375,146	$ 655,247	$ 61,344	$ 3,904,661	$ 1,590	($ 367,840)	($ 65,993)	$ 11,154,198
Profit for the period		-	-	-	-	-	234,630	-	-	-	234,630
Other comprehensive income		-	-	-	-	-	-	5,368	503,733	-	509,101
Total comprehensive income		-	-	-	-	-	234,630	5,368	503,733	-	743,731
Appropriation and distribution of 2025 retained earnings:
Cash dividend	6(22)	-	-	-	-	-	( 674,579 )	-	-	-	( 674,579 )
Due to recognition of equity component of convertible bonds issued	6(15)(21)	-	-	204,301	-	-	-	-	-	-	204,301
Share-based payments transactions	6(18)(20)	( 280 )	-	( 1,364 )	-	-	-	-	-	19,027	17,383
Balance at March 31, 2026		$ 6,589,763	$ -	$ 578,083	$ 655,247	$ 61,344	$ 3,464,712	$ 6,958	$ 135,893	($ 46,966)	$ 11,445,034

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

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(Expressed in thousands of New Taiwan dollars)

	Notes	Three months ended March 31
		2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 291,646	$ 231,357
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	6(8)(9)(28)	278,343	224,027
Amortization expense	6(11)(28)	11,357	14,180
(Gain) loss on expected credit impairment	12(2)	( 441 )	95
Net losses on financial assets at fair value through profit or loss	6(2)(26)
Interest expense	6(27)	1,000	-
Interest income	6(24)	( 11,096	4,121
Share-based payments	6(18)(29)	6,050 )	( 7,519 )
Gain on disposal of property, plant and equipment	6(26)	17,383	41,726
Scrapping inventory and loss on decline in market value	6(5)	408 )	( 43 )
Loss on (gain from reversal of) decline in market value	6(5)	890	-
Changes in operating assets and liabilities
Changes in operating assets
Contract assets		83,397	( 80,604 )
Accounts receivable		63,651	324,063
Accounts receivable due from related parties		( 819 )	( 181 )
Other receivables		( 9,275 )	( 7,231 )
Other receivables due from related parties		1,117	-
Inventories		( 313,926 )	( 190,000 )
Prepayments		( 296,631 )	( 10,489 )
Other current assets, others		( 322 )	4,801
Other non-current assets, others		1,700	1,601
Changes in operating liabilities
Contract liabilities		85,552	( 1,152 )
Accounts payable		( 219,916 )	( 308,774 )
Accounts payable to related parties		( 1,584 )	1,209
Other payable		( 72,809 )	( 72,137 )
Current provisions		968	( 1,642 )
Other current liabilities		297,449	10,503
Net defined benefit liability		2,210	( 5,699 )
Cash inflow generated from operations		257,882	164,013
Interest received		6,169	8,051
Income tax paid		( 528 )	( 798 )
Net cash flows from operating activities		263,523	171,266

(Continued)

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(Expressed in thousands of New Taiwan dollars)

	Notes	Three months ended March 31
		2026	2025
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	6(32)
(including prepayment for equipment)		($ 780,533 )	($ 589,950 )
Proceeds from disposal of property, plant and equipment		2,633	43
Decrease in refundable deposits		306	2,559
Acquisition of intangible assets	6(11)	( 18,700 )	( 17,409 )
Net cash flows used in investing activities		( 796,294 )	( 604,757 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	6(33)	224,000	-
Decrease in short-term borrowings	6(33)	( 320,704 )	-
Proceeds from issuing bonds (net of cost of issuance)	6(33)	2,544,388	-
Proceeds from long-term borrowings	6(33)	129,600	43,200
Repayments of long-term borrowings	6(33)	( 1,672,281 )	( 77,406 )
Guarantee deposits received	6(33)	( 12,328 )	( 9,045 )
Payments of lease liabilities	6(33)	( 5,318 )	( 3,253 )
Interest paid		( 10,793 )	( 4,165 )
Net cash flows from (used in) financing activities		876,564	( 50,669 )
Effect of exchange rate changes on cash and cash equivalents		4,352	2,059
Net increase (decrease) in cash and cash equivalents		348,145	( 482,101 )
Cash and cash equivalents at beginning of period		2,718,816	4,445,344
Cash and cash equivalents at end of period		$ 3,066,961	$ 3,963,243

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

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ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. History and Organisation

(1) Orient Semiconductor Electronics Limited (the “Company”) was incorporated in Kaohsiung City in June 1971 under the provisions of the Company Act of the Republic of China (R.O.C.). The address of the Company’s registered office is at No. 9, Central 3rd Street, Nanzih District, Kaohsiung City. The Company and its subsidiaries (collectively referred herein as the “Group”), were primarily engaged in various types of integrated circuits, semiconductor components, computer motherboards, various types of electronic inventory, manufacturing, combination, processing and export of computer and communication circuit boards.

(2) The Company was listed on the Taiwan Stock Exchange starting from April 1994.

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

These financial statements were authorised for issuance by the Board of Directors on April 28, 2026.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Specific provisions of Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

Except for the related impacts of the following standards and interpretations are yet to be assessed, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment:

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

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

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

None.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

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

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

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

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Summary of Material Accounting Policies

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2025, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.

B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2025.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

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

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

(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

The basis for preparation of consolidated financial statements are consistent with those of the year ended December 31, 2025.

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B. Subsidiaries included in the consolidated financial statements:

Investor	Name of subsidiary	Main business activities	Ownership(%)			Description
			March 31, 2026	December 31, 2025	March 31, 2025
Orient Semiconductor Electronics Limited	Coreplus (HK) Limited (“COREPLUS”)	Accepted orders, purchased materials and outsourcing processing of components combination business.	100%	100%	100%	Note
Orient Semiconductor Electronics Limited	Hua-Cheng Investment Co. (“Hua-Cheng”)	Reinvestments in various business.	100%	100%	100%	-
Corplus (HK) Limited	Value–Plus Technology (Suzhou) Co. (Value–Plus (Suzhou))	Adhesive processing, plug-in welding processing and related test, combination processing, technique maintenance and after-sale service of the surface of base plate of electronic components	100%	100%	100%	Note

Note: The financial statements of the entity as of and for the three months ended March 31, 2026 and 2025 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.

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

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

E. Significant restrictions: None.

F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Convertible bonds payable

Convertible corporate bonds issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Company's common shares by exchanging a fixed amount of cash for a fixed number of common shares) and call options. The Group classifies the bonds payable and derivative features embedded in convertible corporate bonds on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.

A. The embedded call options are recognised initially at net fair value as 'financial assets at fair value through profit or loss'. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognised as 'gain or loss on valuation of financial assets at fair value through profit or loss'.

B. The host contracts of bonds are initially recognised at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortised in profit or loss as an adjustment to 'finance costs' over the period of circulation using the effective interest method.

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

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

E. When bondholders exercise conversion options, the liability component of the bonds (including ‘bonds payable’ and ‘financial assets at fair value through profit or loss’) shall be remeasured on the conversion date. The book value of common shares issued due to the conversion shall be based on the adjusted book value of the abovementioned liability component plus the book value of capital surplus - share options.

(5) Employee benefits

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

(6) Income taxes

The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

There have been no significant changes as of March 31, 2026. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2025.

Details of Significant Accounts

(1) Cash and cash equivalents

	March 31, 2026	December 31, 2025	March 31, 2025
Cash:
Cash on hand and petty cash	$ 117	$ 129	$ 150
Checking accounts and demand deposits	1,851,955	1,707,076	2,210,657
Cash equivalents:
Time deposits	1,114,972	712,000	1,202,950
Commercial paper (II)	99,917	299,611	549,486
	$ 3,066,961	$ 2,718,816	$ 3,963,243

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

B. Aforementioned time deposits and commercial paper (II) had maturities not exceeding three months and were not pledged as collateral, and were classified as cash equivalents according to its nature.

~14~

(2) Financial assets at fair value through profit or loss – non - current

Items	March 31, 2026
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Embedded call options of convertible bonds	$ 8,750

There were no such transactions on December 31, 2025 and March 31, 2025.

A. Information on amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss is provided in Note 6(26).
B. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

Items	March 31, 2026	December 31, 2025	March 31, 2025
Non-current items:
Unlisted stocks	$ 125,820	$ 118,503	$ -
Listed stocks	2,211,596	1,715,180	1,755,000
	$ 2,337,416	$ 1,833,683	$ 1,755,000

A. The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income.
B. For the three months ended March 31, 2026 and 2025, the Group has financial assets at fair value through other comprehensive income recognized in comprehensive income (loss) due to changes of fair value in the amounts of $503,733 and $16,200, respectively.
C. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(4) Accounts receivable (including related parties)

	March 31, 2026	December 31, 2025	March 31, 2025
Accounts receivable	$ 4,591,731	$ 4,654,316	$ 3,875,364
Less: Loss allowance	( 3,164)	( 3,605)	( 3,973)
	$ 4,588,567	$ 4,650,711	$ 3,871,391
Accounts receivable due from related parties	$ 819	$ -	$ 423
Less: Loss allowance	-	-	( 1)
	$ 819	$ -	$ 422

A. For details of the aging analysis of notes and accounts receivable which were based on the dates past due and information relating to credit risk, please refer to Note 12(2).

B. As of March 31, 2026, December 31, 2025 and March 31, 2025, accounts and notes receivable were all from contracts with customers. As of January 1, 2025, the balance of receivables from contracts with customers amounted to $4,198,999.

C. The Group has no notes and accounts receivable pledged to others as collateral.

D. As at March 31, 2026, December 31, 2025 and March 31, 2025, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable were $4,589,386, $4,650,711 and $3,871,813, respectively.

(5) Inventories

	March 31, 2026	December 31, 2025	March 31, 2025
Raw materials	$ 2,272,191	$ 2,078,461	$ 1,237,815
Supplies	143,572	142,233	121,902
Work in progress	802,432	593,605	755,640
Finished goods	39,113	127,584	44,791
	3,257,308	2,941,883	2,160,148
Less: Allowance for valuation loss	( 385,916)	( 352,970)	( 388,890)
	$ 2,871,392	$ 2,588,913	$ 1,771,258

A. The cost of inventories recognised as expense for the period:

	Three months ended March 31
	2026	2025
Cost of goods sold	$ 4,219,564	$ 3,553,823
Loss on (gain from reversal of) decline in market value	32,304	( 8,199)
Loss on scrapping inventory	890	-
Others	( 13,985)	( 6,705)
	$ 4,238,773	$ 3,538,919

For the three months ended March 31, 2025, the Group reversed a previous inventory write-down and accounted for as reduction of cost of goods sold because the inventories which were previously provided with allowance for inventory valuation losses were subsequently scrapped or sold and certain inventories were disposed.

B. As of March 31, 2026, December 31, 2025 and March 31, 2025, the fire insurance amounts of inventories were $21,992,273, $21,987,553 and $17,583,244, respectively.

(6) Prepayments

	March 31, 2026	December 31, 2025	March 31, 2025
Prepayments for goods	$ 295,682	$ 10,557	$ 12,251
Others	93,414	81,556	88,989
	$ 389,096	$ 92,113	$ 101,240

(7) Investments accounted for using equity method

	March 31, 2026		December 31, 2025		March 31, 2025
	Amount	Shareholding ratio	Amount	Shareholding ratio	Amount	Shareholding ratio
Associates:
SCS HIGHTECH INC.	$ -	18.17%	$ -	18.17%	$ -	18.17%

A. The carrying amount of the Group’s investment in SCS HIGHTECH, INC. has been recognised as nil, and there is no further legal or constructive obligation to accrue additional losses. The company has been approved to nullify the registration in 2004 and is still pending liquidation.

B. As of March 31, 2026, December 31, 2025 and March 31, 2025, the Group had no significant associate.

(8) Property, plant and equipment

	March 31, 2026	December 31, 2025	March 31, 2025
Property, plant and equipment
- Owner-occupied	$ 8,432,023	$ 7,807,304	$ 6,473,833
- Operating leases	-	-	530
	$ 8,432,023	$ 7,807,304	$ 6,474,363

A. Property, plant and equipment for self-use

	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment under installation	Total
Cost and revaluation increment:
January 1, 2026	$ 7,656,321	$ 17,409,177	$ 1,725	$ 58,006	$ 396,008	$ 1,941,545	$ 27,462,782
Additions	-	-	-	-	335	898,524	898,859
Disposals	-	( 23,195)	-	-	( 1,573)	-	( 24,768)
Transfers	12,707	271,535	-	-	8,510	( 292,752)	-
Impact of changes in foreign exchange rate	-	2,774	59	91	595	12	3,531
March 31, 2026	$ 7,669,028	$ 17,660,291	$ 1,784	$ 58,097	$ 403,875	$ 2,547,329	$ 28,340,404
Depreciation and impairment:
January 1, 2026	$ 5,310,259	$ 13,976,668	$ 1,026	$ 56,884	$ 310,641	$ -	$ 19,655,478
Depreciation expense	44,846	219,930	62	77	7,630	-	272,545
Disposals	-	( 20,970)	-	-	( 1,573)	-	( 22,543)
Impact of changes in foreign exchange rate	-	2,244	36	86	535	-	2,901
March 31, 2026	$ 5,355,105	$ 14,177,872	$ 1,124	$ 57,047	$ 317,233	$ -	$ 19,908,381

	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment under installation	Total
Cost and revaluation increment:
January 1, 2025	$7,379,527	$15,739,674	$1,760	$57,527	$399,726	$2,030,226	$25,608,440
Additions	-	171	-	51	22	238,543	238,787
Disposals	(3,525)	(506)	-	-	(20)	-	(4,051)
Transfers	9,310	785,325	-	-	1,040	(795,675)	-
Impact of changes in foreign exchange rate	-	1,079	23	34	232	10	1,378
March 31, 2025	$7,385,312	$16,525,743	$1,783	$57,612	$401,000	$1,473,104	$25,844,554
Depreciation and impairment:
January 1, 2025	$5,174,775	$13,586,627	$798	$56,591	$334,251	$-	$19,153,042
Depreciation expense	42,013	172,707	63	56	5,839	-	220,678
Disposals	(3,525)	(506)	-	-	(20)	-	(4,051)
Impact of changes in foreign exchange rate	(127)	551	10	151	467	-	1,052
March 31, 2025	$5,213,136	$13,759,379	$871	$56,798	$340,537	$-	$19,370,721
Carrying amount, net:
March 31, 2026	$2,313,923	$3,482,419	$660	$1,050	$86,642	$2,547,329	$8,432,023
December 31, 2025	$2,346,062	$3,432,509	$699	$1,122	$85,367	$1,941,545	$7,807,304
March 31, 2025	$2,172,176	$2,766,364	$912	$814	$60,463	$1,473,104	$6,473,833

B. Property, plant and equipment for operating lease

	Buildings and structures
	2026	2025
Cost:
January 1 and March 31	$ -	$ 10,721
Depreciation:
At January 1	$ -	$ 10,157
Additions	-	34
At March 31	$ -	$ 10,191
Carrying amount, net:
At March 31	$ -	$ 530

C. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation are as follows:

	Three months ended March 31
	2026	2025
Amount capitalised	$ 3,100	$ 1,577
Range of the interest rates for capitalisation	1.895%	1.9%

D. The significant components of buildings and equipment include main plants and each improvement construction, which are depreciated over 3~51 and 3~21 years, respectively.
E. As of March 31, 2026, December 31, 2025 and March 31, 2025, the insured amount of fire insurance of property, plant and equipment were $11,812,154, $11,808,566 and $10,937,955, respectively.
F. Refer to Note 8 for further information on property, plant and equipment pledged to others as collateral.

(9) Leasing arrangements—lessee

A. The Group leased various assets, including property (land, building and structures), machinery and equipment and transportation equipment. The lease period of each contract was between 3 to 51 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be subleased, sublet, subtenant to others, transfer the lease right to others and pledged as collaterals.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
	Carrying amount	Carrying amount	Carrying amount
Land	$ 73,348	$ 72,463	$ 79,397
Buildings and structures	29,331	30,909	-
Machinery and equipment	1,663	1,740	1,970
Transportation equipment	9,811	10,775	5,605
	$ 114,153	$ 115,887	$ 86,972

	Three months ended March 31
	2026	2025
	Depreciation expense	Depreciation expense
Land	$ 2,151	$ 2,311
Buildings and structures	2,606	-
Machinery and equipment	77	77
Transportation equipment	964	927
	$ 5,798	$ 3,315

C. For the three months ended March 31, 2026 and 2025, the additions to right-of-use assets were $3,035 and $0, respectively.

D. Information on profit or loss in relation to lease contracts is as follows:

	Three months ended March 31
Items affecting profit or loss	2026	2025
Interest expense on lease liabilities	$ 784	$ 407
Expense on short-term lease contracts	2,931	2,273
Expense on leases of low-value assets	969	1,259
(excluding expense on leases of low-value assets of short-term lease)

E. For the three months ended March 31, 2026 and 2025, the total amounts of the Group's cash outflow from leasing were $10,002 and $7,192, respectively.

(10) Leasing arrangements - lessor

A. The Group leases various assets including plant and office. Rental contracts are typically made for periods of 2 and 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. To secure the use of the leased assets, the leased assets may not be subleased, transferred or provided to others in other ways.

B. Gain arising from operating lease agreements are as follows:

	Three months ended March 31
	2026	2025
Related revenue from fixed lease payments	$ 1,277	$ 2,407

C. The maturity analysis of the lease payments under the operating leases is as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Within 1 year	$ 429	$ 804	$ 3,718
Later than one year but not later than two years	729	729	703
Later than two years but not later than three years	722	729	703
Later than three years but not later than four years	703	703	703
Later than four years but not later than five years	703	703	703
Later than five years	644	820	1,347
	$ 3,930	$ 4,488	$ 7,877

D. For disclosures of property, plant and equipment leased under operating lease and within the scope of IAS 16, please refer to Note 6(8).

(11) Intangible assets

	Computer software
	2026	2025
Cost
At January 1	$ 640,233	$ 593,891
Additions – acquired separately	18,700	17,409
Reclassifications	( 6)	1,356
Net exchange differences	-	1
At March 31	$ 658,927	$ 612,657
Accumulated amortisation
At January 1	$ 600,949	$ 542,335
Amortisation charge	11,357	14,180
Net exchange differences	-	-
At March 31	$ 612,306	$ 556,515
Book value	$ 46,621	$ 56,142

A. Details of amortisation on intangible assets are as follows:

	Three months ended March 31
	2026	2025
Operating costs	$ 3,833	$ 5,160
Selling and administrative expenses	$ 4,980	$ 6,426
Research and development expenses	$ 2,544	$ 2,594

B. There was no intangible asset held by the Group that was pledged to others.

(12) Short-term borrowings

Type of borrowings	March 31, 2026	December 31, 2025	March 31, 2025
Secured borrowings	$ 224,000	$ 219,800	$ -
Unsecured borrowings	-	100,904	-
	$ 224,000	$ 320,704	$ -
Interest rate range	4.5%	4.53%–4.55%	-

A. Interest expense recognised in profit or loss amounted to $3,843 and $26 for the three months ended March 31, 2026 and 2025, respectively.
B. Information about the assets that were pledged for short-term borrowings as collateral is provided in Note 8.

(13) Other payables

	March 31, 2026	December 31, 2025	March 31, 2025
Salary and bonus payable	449,131	$ 546,680	$ 412,430
Pension payable	36,299	37,584	33,201
Employees’ compensation and directors’ remuneration payable	241,210	214,072	211,070
Payables on equipment and construction	644,144	519,581	189,083
Insurance premiums payable	83,908	84,852	71,660
Utilities expense payable	67,390	75,610	56,795
Employment Stability Fund payable	23,019	22,635	16,440
Dividends payable	674,579	-	740,408
Other payables	84,356	77,567	74,517
	$ 2,304,036	$ 1,578,581	$ 1,805,604

(14) Other current liabilities—others

	March 31, 2026	December 31, 2025	March 31, 2025
Performance guarantee	$ 295,716	$ -	$ -
Others	126,895	121,313	104,927
	$ 422,611	$ 121,313	$ 104,927

(15) Bonds payable

	March 31, 2026
Unsecured convertible bonds	$ 2,500,000
Less: Discount on bonds payable	(148,466)
	2,351,534
Less: Current portion	-
	$ 2,351,534

There were no such transactions on December 31, 2025 and March 31, 2025.

The terms of the first domestic unsecured convertible bonds issued by the Company are as follows:

A. The Company issued the first domestic unsecured convertible bonds with the approval of the competent authority. The total issuance amount is NT$2,500,000, with a coupon rate of 0%. The bonds were issued at 102% of the face value for a three-year term, covering the circulation period from March 18, 2026, to March 18, 2029. Upon maturity, the Company will redeem the convertible bonds in cash at the par value in a single payment. The payment will be made within 10 business days (inclusive) after the maturity date. The convertible bonds were listed and commenced trading on the Taipei Exchange on March 18, 2026.

B. The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after 3 months (June 19, 2026) of the bonds issue to the maturity date (March 18, 2029), except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

C. The conversion price of the bonds is set up based on the pricing model in the terms of the bonds. The conversion price is $51.3 (in dollars) per share at issuance, and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price will be recalculated based on the pricing model in the terms of the bonds on each effective date regulated by the terms. If the recalculated conversion price is lower than the conversion price before the recalculation, the conversion price will be adjusted; however, it will not be adjusted if it is higher.

D. The Company may repurchase bondholders' bonds in cash at the bonds' face value in accordance with the terms of bonds issuance and conversion after the following events occur: (i) the closing price of the Company's common shares is above the then conversion price of the bonds by 30% (or equal) for 30 consecutive business days during the period from the date after three months of the bonds issue (June 19, 2026) to 40 days before the maturity date (February 6, 2029), or (ii) the outstanding balance of the convertible bonds falls below 10% of the original total principal amount issued, the Company may, within the following thirty business days or at any time respectively, redeem the convertible bonds from the bondholders in cash at the par value.

E. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Traded Over the Counter), matured and converted will be retired and cannot be resold or reissued. The conversion rights attached to the bonds are also extinguished.

F. Regarding the issuance of the first domestic unsecured convertible bonds, the equity conversion options amounting to $204,301 were separated from the liability component and were recognised in 'capital surplus—share options' in accordance with IAS 32. The call options embedded in bonds payable were separated from their host contracts and were recognised in 'financial assets at fair value through profit or loss' in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts. The effective interest rate of the bonds payable after such separation was 2.0666%.

~24~

(16) Long-term borrowings

Type of Borrowings	Borrowing period and repayment term	Interest rate range	Collateral	March 31, 2026
Long-term bank borrowings
Unsecured borrowings	Borrowing period is from August 2021 to September 2030; interest is payable monthly; principal is repayable as scheduled or at maturity	1.475%–1.895% (Note 2)	None	$ 412,205
Less: Current portion				( 184,002)
				$ 228,203
Type of Borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2025
Long-term bank borrowings
Unsecured borrowings	Borrowing period is from August 2021 to September 2030; interest is payable monthly; principal is repayable as scheduled or at maturity (Note 1)	1.475%–1.97% (Note 2)	None	$ 1,954,886
Less: Current portion				( 456,432)
				$ 1,498,454
Type of Borrowings	Borrowing period and repayment term	Interest rate range	Collateral	March 31, 2025
Long-term bank borrowings
Unsecured borrowings	Borrowing period is from August 2021 to September 2030; interest is payable monthly; principal is repayable at maturity. (Note 1)	1.475%–1.9% (Note 2)	None	$ 1,347,702
Less: Current portion				( 418,997)
				$ 928,705

Note 1: Certain unsecured long-term bank borrowings of the Group were repaid in advance in March 2026.

Note 2: Some of the Group’s loans were granted in accordance with the ‘Guidelines of Project Loans for Returning Overseas Taiwanese Businesses’ of National Development Fund, Executive Yuan. The interest rate of the loans for the first 5 years is the floating interest rate on a 2-year time deposit offered by the Directorate General of the Postal Remittances and Savings Bank less 0.245% of annual interest. In the event of failure to meet the requirements of the aforementioned Guidelines of Project Loans during the loan period, the interest rate will be changed to the floating interest rate on a 2-year time deposit offered by the Directorate General of the Postal Remittances and Savings Bank plus 0.255% of annual interest.

A. For the three months ended March 31, 2026 and 2025, the amounts of interest expense recognised in profit or loss were $7,872 and $5,263, respectively.

B. Under the credit contract with certain banks, the Group is required to review financial ratios or values such as current ratio, net tangible assets, interest coverage ratio, and debt ratio in the latest consolidated financial statements at certain times during the credit period. As of the reporting date, the Group did not violate any of the related financial conditions.

C. Information about the assets that were pledged for long-term borrowings as collateral is provided in Note 8.

(17) Pensions

A.(a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. For the Company's domestic employees who are covered by the Labor Pension Act, the Company and its domestic subsidiaries contribute monthly an amount equal to 10% before May 2025 and 6.58% thereafter of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

(b) For the three months ended March 31, 2026 and 2025, the Company recognised pension costs in the amounts of $3,104 and $2,216, respectively.

B.(a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(b) The Company's mainland China subsidiary, Value-Plus Technology (Suzhou) Co. (Value-Plus (Suzhou)), has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. Other than the monthly contributions, the Company has no further obligations. Other foreign subsidiaries contributed to related pension management plans according to local regulations.

(c) The pension costs under the defined contribution pension plan of the Company for the three months ended March 31, 2026 and 2025 were $37,308 and $34,303, respectively.

(18) Share-based payment

A. For the three months ended March 31, 2026 and 2025, the Group's share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity Granted	Contract period	Vesting conditions
Restricted stocks to employees	2024.5.15	5,000 thousand shares	3 years	Note

Note: The service time limit and performance conditions were as follows:

(a) After employees obtain employee restricted shares, starting from the effective date of capital increase, if employees are on-the-job when the vested period has expired, and did not violate service contract of the Company, working rules and be penalized, the employees can receive employee restricted shares proportionally based on the following length of services and performance conditions.

i. Service for one year after distribution and score over “A” rating in the last performance evaluation before the maturity of period, 30% of the distributed shares;
ii. Service for two years after distribution and score over “A” rating in the last performance evaluation before the maturity of period, 30% of the distributed shares;
iii. Service for three years after distribution and score over “A” rating in the last performance evaluation before the maturity of period, 40% of the distributed shares.

Restrictions on the rights and vesting conditions of restricted shares for employees were as follows:

(a) The restricted shares which the employees will obtain shall be directly kept in the designated trust institution when the restricted shares were granted to the employees, which the employee cannot request to return the restricted shares for any reasons or ways before reaching the vesting conditions.
(b) Before accomplishing the vesting conditions when the restricted shares were granted to the employees, except for inheritance, the employee cannot sell, pledge, transfer, gift, set or dispose the restricted shares in other ways.
(c) Before the employee accomplishes the vesting conditions when the restricted shares were granted to the employees, the attendance, proposal, speaking, right of voting, election, and other matters associated with shareholders’ meeting are similar with the ordinary shares that has been issued and are executed based on the trust custody contracts.
(d) Before the employee accomplishes the vesting conditions, other rights including but not limited to dividends, bonus, the distribution rights of legal reserve and capital surplus, and share options of cash capital, etc., are the same as the Company’s issued ordinary shares. The related procedures are executed based on the trust custody contracts.
(e) From the book closure date of issuance of bonus shares, cash dividends, issuance of common stock for cash and shareholders' meeting are regulated by Article 165-3 of the Company Law, or other facts that has occurred to the date of rights allocation. The unrestricted shares of the employees that have achieved the vesting conditions during the aforementioned period still have no rights to obtain dividends or allotment. The time and procedures of rescinding restrictions on the vested shares are executed based on the trust custody contracts or related regulations.

~27~

B. Details of the share-based payment arrangements are as follows: (unit: thousand share)

	2026	2025
At January 1	3,192	4,920
Called back in the period (Note)	(28)	-
At March 31	3,164	4,920

Note: For the restricted shares which were called back by the Group for the three months ended March 31, 2026, 28 thousand shares have not yet completed the registration of cancellation as of March 31, 2026 respectively.

C. On May 15, 2024, the fair value of share-based payments transaction which was given by the Group was $59.1 per share.

D. For the three months ended March 31, 2026 and 2025, the Group recognised expenses due to share-based payment transactions in the amounts of $17,383 and $41,726, respectively.

(19) Current provisions

	2026			2025
	Warranty	Carbon fees	Total	Warranty
At January 1	$ 46,142	$ 4,528	$ 50,670	$ 64,554
Provisions during the period	16,382	1,132	17,514	10,630
Used during the period	( 6,614)	-	( 6,614)	( 9,333)
Unused amounts reversed	( 9,932)	-	( 9,932)	( 2,939)
At March 31	$ 45,978	$ 5,660	$ 51,638	$ 62,912

A. The Group gives warranties on the products sold. Provision for warranty is estimated based on historical warranty data of the products.

B. As of March 31, 2026 and December 31, 2025, the Company has applied for self-determined reduction plan which had been approved by the regulatory authorities. The Company assesses that certain plants are highly probable to reach the designated target for the year ended December 31, 2026 and 2025. Therefore, provision for carbon fees is recognised based on the preferential rate, and other plants are recognised based on the standard rate of the charging rates of carbon fees.

(20) Share capital

A. On March 31, 2026, the Company's authorised capital was $20,000,000, consisting of 2,000,000 thousand shares (including the number of option certificates which can be purchased), and will be issued in several times. The shares which were not issued can be issued in common shares and preference shares in several times based on the Company's business requirement, 90,000 thousand shares will be retained for option certificates. As of March 31, 2026, the Company's paid-in capital was $6,589,763, consisting of 658,976 thousand common shares with a par value of NT$10 (in dollars) per share. All proceeds from shares issued have been collected.

(a) Movements in the number of the Company's ordinary shares outstanding are as follows: (thousand shares)

	2026	2025
Shares outstanding at January 1	655,784	555,308
Restricted shares not yet vested at the beginning of the period	3,192	4,920
Restricted shares called back but not yet cancelled at the beginning of the period	28	80
Shares issued at January 1	659,004	560,308
Cancellation of employee restricted shares (Note 1)	(28)	(80)
Shares issued at March 31	658,976	560,228
Restricted shares not vested issued to employees	(3,164)	(4,920)
Restricted shares called back but not yet cancelled at the end of the period (Note 2)	(28)	-
Shares outstanding at March 31	655,784	555,308

(b) Movements in the number of the Company's preference shares outstanding are as follows: (thousand shares)

	2026	2025
Shares outstanding at January 1 and March 31 (Note 3)	$ -	$ 180,180

Note 1: For the year ended December 31, 2025, the Company redeemed the issued restricted shares of 28 thousand shares with a par value of $10 (in dollars). On February 25, 2026, the Board of Directors approved the effective date for the retirement of shares due to the capital reduction, and the registration procedures has been completed.

For the year ended December 31, 2024, the Company redeemed the issued restricted shares of 80 thousand shares with a par value of $10 (in dollars). On February 26, 2025, the Board of Directors approved the effective date for the retirement of shares due to the capital reduction, and the registration procedures has been completed.

Note 2: For the three months ended March 31, 2026, the Company redeemed the issued restricted shares of 28 thousand shares with a par value of $10 (in dollars) per share. As of March 31, 2026, the registration for the remaining 28 thousand shares has not yet been completed, and the Board of Directors approved the effective date for the retirement of shares due to the capital reduction on April 28, 2026. The relevant registration procedures are in progress.

Note 3: On October 29, 2025, the Board of Directors resolved that the Company repurchase 81,180 thousand class C preferred shares at a repurchase price of $11.10 (in dollars) per share, amounting to NT$901,098 thousand, and decreased capital by cancelling 81,180 thousand shares amounting to NT$901,098 thousand in accordance with the laws. The record date for the capital reduction was set on November 13, 2025, and the registration was completed.

Note 4: During December 2025, the Company’s shareholders of Class C preferred shares applied to transfer 99,000 thousand privately placed Class C preferred shares into 99,000 thousand privately placed ordinary shares. The Company delivered the shares on December 29, 2025. On February 25, 2026, the Board of Directors resolved to set the effective date of capital reduction for Class C preferred shares on February 25, 2026, and the effective date of issuance for new ordinary shares was February 25, 2026. The registration was completed. Refer to Note 6(20) B. (e) for details of rights and obligations after Class C preferred shares were transferred into ordinary shares. Additionally, on February 25, 2026, the Board of Directors also resolved that 99,000 thousand privately placed ordinary shares were offered publicly and were applied for listing on the stock exchange. The relevant procedures are in progress.

B. On December 3, 2020, the Company’s shareholders in the extraordinary meeting approved to issue 180,180 thousand class C preferred shares in private placement with a par value of $10 and issued at $11.1 per share. The paid-in capital was $1,801,800 thousand. The effective date of capital increase was set on December 21, 2020 in accordance with the Securities and Exchange Act Article 43-6.

According to the Company’s Articles of Incorporation, the rights and obligations of preferred share were as follows:

(a) The distribution of earnings was based on the Company’s Articles of Incorporation, current year or current quarter and accumulated undistributable dividend shall be appropriated to class B preferred shares in the first priority, then, appropriated to class C preferred shares in the second priority.

(b) The annual dividend rate of class C preferred shares was 2% which was calculated at the issuance price per share and paid in cash, the ex-dividend date of preferred dividend was authorised to be determined by the Board of Directors. The issuance number in issuance year or quarter and recovered year or quarter were calculated at the actual issuance number of days.

(c) If the expected dividend distribution amount of common share exceeds the dividend amount of class C preferred shares in the current year or quarter, the shareholders of class C preferred shares can participate in the distribution until the dividend amount of class C preferred shares are the same as common share per share.

(d) The Company has discretion in dividend distribution of Class C preferred shares. If the Company has no or has insufficient current year’s earnings for distribution or has other necessary considerations, the Company can resolve not to distribute dividend to class C preferred shares and it will not default, and the shareholders of class C preferred shares cannot object. Class C preferred shares are non-cumulative, and the amount of dividends which were not distributed or insufficient will not be made up in the profitable year or quarter thereafter.

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(e) Starting from the next day of five years after issuance, the shareholders of class C preferred shares can transfer the preferred share to common share at a transfer ratio of 1:1. After the transfer of preferred share to common share, the rights and obligations (excluding the transfer restriction by regulation and not listed) were the same as other outstanding common share of the Company. For class C preferred shares which have been transferred into common shares before the ex-right (ex-dividend) date in the current year or quarter can participate in the common share distribution of earnings or reserves in the current year or quarter and cannot participate in the dividend distribution of preferred shares in the current year or quarter. For class C preferred shares which have been transferred into common shares after the ex-right (ex-dividend) date in the current year or quarter can participate in the dividend distribution of preferred share in the current year or quarter and cannot participate in the dividend distribution of earnings or capital reserves in the current year or quarter. Preferred dividends will not be repeatedly appropriated if it is distributed in the same year or quarter with common stock dividends.

(f) The shareholders of class C preferred shares have no voting right in the common shareholders' meeting and cannot be elected as directors (including independent directors). However, the shareholders of class C preferred shares have voting right in preferred shareholders' meeting and matters of preferred shareholders' right.

(g) When it comes to appropriating residual assets of Company, class C preferred shares have priority over common shares and next to class B preferred shares. However, the amount was limited to the issuance price plus total amount of unpaid dividend.

(h) Class C preferred shares have no expiry date, and the shareholders of class C preferred shares have no right to require the Company to call back class C preferred shares or transfer the class C preferred share into common share in advance. However, the Company can call back in cash at actual issuance price, mandatorily transfer by issuing new shares or call back all or some class C preferred shares in other ways permitted by regulations on the next day after three years. The rights and obligations of class C preferred shares which have not been called will continue until the Company calls back. In the current year of calling back the class C preferred shares, if the Company's shareholders resolve to appropriate dividends, the amount of dividends which have to be distributed as of the date of call back will be calculated according to the actual days of issuance in the current year.

(i) The preemptive rights for stockholders of class C preferred shares are the same as of common shares when the Company increases its capital by issuing shares.

(j) Class C preferred shares were not listed and traded in the issuance period, however, if all or some were transferred into common shares, the Board of Directors was authorised to apply for public offering and listing to the authorisation according to the current situation and related regulations.

~31~

(k) Refer to Note 6(20) A. (b) for details of Class C preferred shares which were called back and transferred, and public offering of ordinary shares which were transferred from Class C preferred shares.

(21) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

	March 31, 2026	December 31, 2025	March 31, 2025
Premium on issuance of common shares	$ 212,999	$ 212,999	$ 17,417
Stock options of convertible bonds	204,301	-	-
Employee restricted shares	139,135	140,499	239,740
Premium on issuance of preferred shares	-	-	198,198
Difference between consideration and carrying amount of subsidiaries acquired or disposed	16,940	16,940	16,940
Changes in ownership interests in subsidiaries	4,708	4,708	4,708
	$ 578,083	$ 375,146	$ 477,003

(22) Retained earnings

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve. For setting aside or reversal for special reserve in accordance with related laws or Competent Authority's regulations, if any, the Board of Directors should propose the distribution of the remaining earnings along with prior accumulated undistributed earnings for the approval of the shareholders. The shareholders resolved for earnings to be appropriated in the form of cash, and was resolved by the Board of Directors and reported to shareholders in accordance with Article 228-1 and paragraph 5 of Article 240 of the Company Act.

B. The industry environment of the Company is constantly changing and the enterprise is in the growth stage of its life cycle. Considering the Company's future capital requirement and long-term financial plan and satisfying shareholders' demand for cash inflow, the expected appropriation amount in the current year shall not be lower than 10% of accumulated distributable amount. However, if the accumulated distributable earnings is lower than 1% of paid-in capital, the earnings cannot be appropriated, and the cash dividend shall not be lower than 10% of total dividend.

~32~

C. According to the Company Act, the distribution to legal reserve shall continue until the total amount equals to total capital. Legal reserve is used to offset accumulated deficit. If the Company has no deficits, 25% of the part of legal reserve exceeding the paid-in capital can be used to issue new stocks or cash to shareholders in proportion to their share ownership.

D. Following the adoption of TIFRS, the FSC on April 6, 2012 issued Order No. Financial-Supervisory- Securities-Corporate-1010012865, which sets out the following provisions for compliance: On a public company's first-time adoption of the TIFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders' equity that a company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside an equal amount of special reserve. Following a company's adoption of the TIFRS for the preparation of its financial reports, when distributing distributable earnings, it shall set aside to special reserve, from the profit/loss of the current period and the undistributed earnings from the previous period, an amount equal to other net deductions from shareholders' equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements in the preceding point, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders' equity. For any subsequent reversal of other net deductions from shareholders' equity, the amount reversed may be distributed.

E. On February 26, 2025, the Board of Directors resolved the earnings appropriation for the year ended December 31, 2024 with a common share dividend of 1 per share and the total amount was $560,228; and with Class C preferred stock dividend of 1 per share. The total dividends amounted to $180,180. On May 29, 2025, the earnings appropriation for the year ended December 31, 2024 were reported to shareholders.

F. On February 25, 2026, the Board of Directors resolved the earnings appropriation for the year ended December 31, 2025 with a common share dividend of 1 per share and the total amount was $658,976; and the year of calling back of Class C preferred shares was calculated at the actual issuance number of days, and the Class C preferred stock dividend amounted to $15,603.

(23) Operating revenue

	Three months ended March 31
	2026	2025
Revenue from contracts with customers
IC packaging and testing service revenue	$ 2,718,531	$ 2,321,939
Electronics manufacturing service revenue	2,093,374	1,718,761
Other operating revenue	48,571	36,776
	$ 4,860,476	$ 4,077,476

A. Disaggregation of revenue from contracts with customers

Three months ended March 31, 2026	Semiconductor Group	EMS Group	Total
IC packaging and testing service revenue	$ 2,718,531	$ -	$ 2,718,531
Manufacture of electronic products	-	2,093,374	2,093,374
Others	6,238	42,333	48,571
	$ 2,724,769	$ 2,135,707	$ 4,860,476
Timing of revenue recognition:
Over time	$ 2,718,531	$ -	$ 2,718,531
At a point in time	6,238	2,135,707	2,141,945
	$ 2,724,769	$ 2,135,707	$ 4,860,476
Three months ended March 31, 2025	Semiconductor Group	EMS Group	Total
IC packaging and testing service revenue	$ 2,321,939	$ -	$ 2,321,939
Manufacture of electronic products	-	1,718,761	1,718,761
Others	10,686	26,090	36,776
	$ 2,332,625	$ 1,744,851	$ 4,077,476
Timing of revenue recognition:
Over time	$ 2,321,939	$ -	$ 2,321,939
At a point in time	10,686	1,744,851	1,755,537
	$ 2,332,625	$ 1,744,851	$ 4,077,476

B. Contract assets and liabilities

(a) The Group has recognised the following revenue-related contract assets and liabilities:

	March 31, 2026	December 31, 2025	March 31, 2025
Current contract assets
IC packaging and testing service	$ 375,609	$ 459,006	$ 371,228
Current contract liabilities
IC packaging and testing service	$ 136,168	$ 50,809	$ 61,169
Manufacture of electronic products	9,499	9,306	12,188
	$ 145,667	$ 60,115	$ 73,357

Note: As of January 1, 2025, the Group recognised current contract liabilities in the amount of $74,509.

(b) Information relating to credit risk of contract assets is provided in Note 12(2).

(c) For the three months ended March 31, 2026 and 2025, revenue recognised that was included in the contract liability balance at the beginning of the period amounted to $1,387 and $1,793, respectively.

(24) Interest income

	Three months ended March 31
	2026	2025
Interest income from bank deposits	$ 6,050	$ 7,519
(25) Other income
	Three months ended March 31
	2026	2025
Service revenue	$ 5,044	$ 3,807
Rental revenue	1,277	2,409
Other income	12,734	3,672
	$ 19,055	$ 9,888

(26) Other gains and losses

	Three months ended March 31
	2026	2025
Gains on disposals of property, plant and equipment	$ 408	$ 43
Net currency exchange gains	5,771	21,266
Net losses on financial assets at fair value through profit or loss	(1,000)	-
Others	(144)	-
	$ 5,035	$ 21,309

(27) Finance costs

	Three months ended March 31
	2026	2025
Interest expense on borrowings from financial institutions	$ 11,715	$ 5,289
Interest expense on lease liability	784	407
Interest expenses on corporate bonds	1,697	-
Others	-	2
	14,196	5,698
Less: Capitalisation of qualifying assets	(3,100)	(1,577)
	$ 11,096	$ 4,121

(28) Expenses by nature

	Three months ended March 31
	2026	2025
Employee benefit expense	$ 1,269,575	$ 1,161,517
Depreciation charges on property, plant and equipment	272,545	220,712
Depreciation expense on right-of-use assets	5,798	3,315
Amortisation charges on intangible assets	11,357	14,180

(29) Employee benefit expense

	Three months ended March 31
	2026	2025
Salary expenses	$ 993,771	$ 901,007
Labour and health insurance fees	110,638	95,971
Pension costs	40,412	36,519
Directors’ remuneration	4,290	3,620
Compensation cost of employee restricted shares	17,383	41,726
Other personnel expenses	103,081	82,674
	$ 1,269,575	$ 1,161,517

Under the Company's Articles of Incorporation, the current year's pre-tax profit, net of employees' compensation and directors' remuneration, shall be first used to offset accumulated deficits, then appropriate 10%~15% for employees' compensation with no less than 35% thereof distributed to junior-level employees and no more than 1% for remuneration to directors.

A company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by at least two-thirds of the total number of directors, has the determination of distribution ratios of employees' compensation and directors' remuneration and the abovementioned employees' compensation distributed in the form of shares or in cash; and in addition thereto a report of such distribution shall be submitted to the shareholders during their meeting. The profit distributable as employees' compensation distributed can be in the form of shares or in cash. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements, entitled to receive aforementioned stock or cash may be specified in the Articles of Incorporation.

For the three months ended March 31, 2026 and 2025, the employees' compensation and directors' remuneration were estimated and accrued based on certain proportion of distributable profit of current year amounting to $32,800 and $26,100; as well as $3,270 and $2,600, respectively.

Employees' compensation of $186,500 and directors' remuneration of $18,640 of 2025 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2025 financial statements. Information about employees' compensation and directors' remuneration of the Company as resolved by the Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(30) Income tax

A. Income tax expense

(a) Components of income tax expense:

	Three months ended March 31
	2026	2025
Deferred tax:
Origination and reversal of temporary differences	$ 57,016	$ 44,078
Total deferred tax	$ 57,016	$ 44,078
Income tax expense	$ 57,016	$ 44,078

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

	Three months ended March 31
	2026	2025
Currency translation differences	$ 1,342	$ 757

B. The Company’s income tax returns through 2024 have been assessed and approved by the Tax Authority.

(31) Earnings per share

	Three months ended March 31, 2026
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to the parent	$ 234,630
Less: Dividends on class C preferred shares	( 15,603)
Profit attributable to ordinary shareholders of the parent (Note 1)	$ 219,027	655,784	$ 0.33
Diluted earnings per share
Profit attributable to the parent	$ 234,630	655,784
Less: Dividends on class C preferred shares	( 15,603)
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	2,736
Employee restricted stock	-	2,384
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 219,027	660,904	$ 0.33

~38~

	Three months ended March 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to the parent	$ 187,279
Less: Dividends on class C preferred shares	( 40,000)
Profit attributable to ordinary shareholders of the parent (Note 1)	$ 147,279	555,308	$ 0.27
Diluted earnings per share
Profit attributable to the parent	$ 187,279	555,308
Less: Dividends on class C preferred shares	( 40,000)	-
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	3,635
Convertible preferred stock	40,000	180,180
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 187,279	739,123	$ 0.25

Note 1: The Company issued two classes of equity instruments, including ordinary shares, class C preferred shares. Since class C preferred shares are non-cumulative and participating equity instruments before conversion (refer to Note 6(20)B. (c) for the related terms of issuance), the Company assumed that ordinary shares and participating equity instruments would share in earnings until all of the profit or loss for the period had been distributed when calculating the profit or loss attributable to ordinary shareholders of the parent.

Note 2: For the three months ended March 31, 2026, the convertible bonds had an anti-dilutive effect, for the three months ended March 31, 2025, the employee restricted shares were excluded from the calculation of diluted earnings per share since such shares were anti-dilutive.

(32) Supplemental cash flow information

A. Investing activities with partial cash payments:

	Three months ended March 31
	2026	2025
Purchase of property, plant and equipment	$ 898,859	$ 238,787
Increase in prepayments for business facilities	6,237	5,993
Add: Opening balance of payable on equipment and construction	519,581	534,253
Less: Ending balance of payable on equipment and construction	( 644,144)	( 189,083)
Cash paid during the period	$ 780,533	$ 589,950

Note : Payable on equipment and construction was shown as ‘other payables’.

B. Investing and financing activities with no cash flow effects:

	Three months ended March 31
	2026	2025
Increase in right-of-use assets	$ 3,035	$ -
Less: Increase in lease liabilities	( 3,035)	-
	$ -	$ -
Prepayments for business facilities transferred to property, plant and equipment	$ 322,895	$ 92,946
Prepayments for business facilities transferred to intangible assets	$ -	$ 1,362
Intangible assets transferred to other current assets	$ 6	$ 6
Long-term borrowings, current portion	$ 184,002	$ 418,997
Cash dividends declared but yet to be paid	$ 674,579	$ 740,408
Write-off of capital surplus due to retirement of share capital	$ 280	$ 800

(33) Changes in liabilities from financing activities

	January 1, 2026	Cash flows	Changes in foreign exchange rate	Others	March 31, 2026
Short-term borrowings	$ 320,704	($ 96,704)	$ -	$ -	$ 224,000
Long-term borrowings	1,954,886	( 1,542,681)	-	-	412,205
Lease liabilities	122,111	( 5,318)	1,088	3,035	120,916
Bonds payable	-	2,544,388		( 192,854)	2,351,534
Guarantee deposits received	15,837	( 12,328)	2	-	3,511
Dividends payable	-	-	-	674,579	674,579
	January 1, 2025	Cash flows	Changes in foreign exchange rate	Others	March 31, 2025
Long-term borrowings	$ 1,381,908	($ 34,206)	$ -	$ -	$ 1,347,702
Lease liabilities	94,947	( 3,253)	-	-	91,694
Guarantee deposits received	28,387	( 9,045)	1	-	19,343
Dividends payable	-	-	-	740,408	740,408

Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Group
Chipbond Technology Corporation (Chipbond)	Entities with significant influence to the Group
Heng Yuan Investment Co., Ltd.	Other related party
CHIPBOND TECHNOLOGY MALAYSIA SDN. BHD. (CBMY)	Other related party

(2) Significant related party transactions

A. Sales

	Three months ended March 31
	2026	2025
Entities with significant influence to the Group	$ 615	$ 170
Other related party	213	-
	$ 828	$ 170

The sales price to the above related parties was determined through mutual agreement based on the market rates. The collection term is available to third parties.

B. Purchases

	Three months ended March 31
	2026	2025
Entities with significant influence to the Group	$ 705	$ 2,216

The purchase price to the above related parties was determined through mutual agreement based on the market rates. The payment term is available to third parties.

C. Receivables from related parties

	March 31, 2026	December 31, 2025	March 31, 2025
Accounts receivable:
Entities with significant influence to the Group	$ 650	$ -	$ 423
Other related party	169	-	-
	819	-	423
Less: Loss allowance	-	-	( 1)
	$ 819	$ -	$ 422
Other receivables:
Other related party	$ 45,126	$ 41,710	$ -
Entities with significant influence to the Group	-	4,533	-
	$ 45,126	$ 46,243	$ -

Receivables from related parties mainly arose from sales transactions and property transactions. The terms for receivables from sales are 30~60 days after monthly billings. The receivables are unsecured in nature and bear no interest.

D. Payables to related parties

	March 31, 2026	December 31, 2025	March 31, 2025
Accounts payable:
Entities with significant influence to the Group	$ 1,269	$ 2,853	$ 2,493

Payables to related parties pertain to purchase of materials. The payment terms are 60 days after monthly billings. The payables bear no interest.

E. Others

	Three months ended March 31
	2026	2025
Manufacturing expenses:
Entities with significant influence to the Group	$ 190	$ -

F. Property transactions

Disposal of property, plant and equipment:

	Three months ended March 31, 2026		Three months ended March 31, 2025
	Disposal proceeds	Gain (loss) on disposal	Disposal proceeds	Gain (loss) on disposal
Other related party	$ 2,577	$ 378	$ -	$ -

G. Lease transactions—lessor

	Three months ended March 31
	2026	2025
Rental income:
Entities with significant influence to the Group	$ 1,079	$ 1,116

Leasing transactions are made under mutual agreement, and the collection term is available to third parties. As of March 31, 2026, December 31, 2025 and March 31, 2025, advance rent receipts amounted to $3,288, $4,317 and $3,348, respectively, and were shown as 'other current liabilities, others'.

G. Leasing arrangements—lessee

	Three months ended March 31
	2026	2025
Rental income:
Entities with significant influence to the Group	$ 906	$ 540

Leasing transactions are made under mutual agreement, and the collection term is available to third parties.

H. Others

Details of the Company's class B preferred shares and class C preferred shares held by the entities with significant influence to the Group are provided in Note 6(20).

(3) Key management compensation

	Three months ended March 31
	2026	2025
Short-term employee benefits	$ 9,977	$ 9,098
Post-employment benefits	135	135
Share-based payment	7,113	13,960
	$ 17,225	$ 23,193

Pledged Assets

Pledged asset	Book value			Purpose
	March 31, 2026	December 31, 2025	March 31, 2025
Property, plant and equipment
- Buildings and structures	$ 641,437	$ 647,977	$ 690,105	Credit line for shortg-term and long-term borrowings
Guarantee deposits paid	500	780	780	Customs guarantee or others
	$ 641,937	$ 648,757	$ 690,885

Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

None.

(2) Commitments

A. As of March 31, 2026, December 31, 2025 and March 31, 2025, the Company issued promissory notes of $8,776,680, $8,755,086 and $8,806,208, respectively, as guarantees for bank loans.

B. As of March 31, 2026, December 31, 2025 and March 31, 2025, the Company issued promissory notes of $1,215, $1,215 and $1,201, respectively, as guarantees for payments of raw materials and machineries purchased.

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

	March 31, 2026	December 31, 2025	March 31, 2025
Property, plant and equipment	$ 2,161,622	$ 1,628,447	$ 2,433,185

D. Details of the commitments on financial terms under credit contracts with certain banks are provided in Note 6(16) B.

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

On April 28, 2026, the Board of Directors approved the effective date for the retirement of shares due to the capital reduction. Refer to Note 6(20) for details.

~43~

12. Others

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

During the three months ended March 31, 2026, the Group’s strategy, which was unchanged from 2025, was to balance overall capital structure. As of March 31, 2026, December 31, 2025 and March 31, 2025, the Group’s gearing ratio is as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Total liabilities	$ 11,149,882	$ 9,560,032	$ 7,937,407
Total assets	$ 22,594,916	$ 20,714,230	$ 19,015,286
Gearing ratio	49%	46%	42%

(2) Financial instruments

A. Financial instruments by category

	March 31, 2026	December 31, 2025	March 31, 2025
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 8,750	$ -	$ -
Financial assets measured at fair value through other comprehensive income
Designation of equity instrument	$ 2,337,416	$ 1,833,683	$ 1,755,000
Financial assets at amortised cost
Cash and cash equivalents (excluding cash on hand)	$ 3,066,844	$ 2,718,687	$ 3,963,093
Accounts receivable (including related parties)	4,589,386	4,650,711	3,871,813
Other receivables	154,435	146,415	73,904
Guarantee deposits paid	4,849	5,067	5,103
	$ 7,815,514	$ 7,520,880	$ 7,913,913
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings	$ 224,000	$ 320,704	$ -
Accounts payable (including related parties)	5,059,619	5,280,166	4,347,612
Other payables	2,304,036	1,578,581	1,805,604
Bond payables	2,351,534	-	-
Long-term borrowings (including current portion)	412,205	1,954,886	1,347,702
Guarantee deposits received	3,511	15,837	19,343
	$ 10,354,905	$ 9,150,174	$ 7,520,261
Lease liability (including current and non-current)	$ 120,916	$ 122,111	$ 91,694

B. Financial risk management policies

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

(b) The Group has established appropriate policies, procedures and internal controls in accordance with the relevant regulations to manage the aforementioned financial risks. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on the relevant regulations and internal control procedures. The Group complies with its financial risk management policies at all times.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange rate risk arises from future commercial transactions, recognised assets and liabilities and net investment in foreign operations.

ii. The Group’s management hedges foreign exchange risk through natural hedges or derivative financial instruments (including forward foreign exchange contracts) to prevent decreases in value of assets denominated in foreign currencies and fluctuations in future cash flows. The use of these derivative financial instruments assists in decreasing the effect of foreign currency fluctuations but cannot eliminate the impact entirely. The Group’s purpose to hold certain investments in foreign operations is for strategic investments; thus, the Group does not hedge those investments.

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

~44~

March 31, 2026

	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 144,378	32.00	$ 4,620,096	1%	$ 46,201	$ -
JPY:NTD	564,784	0.2004	113,183	1%	1,132	-
Non-monetary items
USD:NTD	10,369	32.00	331,800	1%	-	3,318
Financial liabilities
Monetary items
USD:NTD	140,137	32.00	4,484,384	1%	44,844	-
JPY:NTD	700,396	0.2004	140,359	1%	1,404	-
			December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 137,202	31.40	$ 4,308,143	1%	$ 43,081	$ -
JPY:NTD	513,882	0.2006	103,085	1%	1,031	-
Non-monetary items
USD:NTD	10,062	31.40	315,960	1%	-	3,160
Financial liabilities
Monetary items
USD:NTD	138,960	31.40	4,363,344	1%	43,633	-
JPY:NTD	308,538	0.2006	61,893	1%	619	-

March 31, 2025

	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 117,905	33.18	$ 3,912,088	1%	$ 39,121	$ -
JPY:NTD	1,368,208	0.2226	304,563	1%	3,046	-
Non-monetary items
USD:NTD	9,459	33.18	313,845	1%	-	3,138
Financial liabilities
Monetary items
USD:NTD	103,318	33.18	3,428,091	1%	34,281	-
JPY:NTD	238,478	0.2226	53,085	1%	531	-

iv. The total exchange (loss) gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the three months ended March 31, 2026 and 2025 amounted to $5,771 and $21,266, respectively.

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through other comprehensive income. The Group manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Group’s senior management on a regular basis. The Company's Board of Directors reviews and approves all equity investment decisions.

ii. The Group’s investments in equity securities comprise shares issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, other components of equity for the three months ended March 31, 2026 and 2025 would have increased/decreased by $23,374 and $17,550, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Group’s long-term borrowings are floating-rate debts; therefore, the effective interest rate of its long-term borrowings will vary according to changes in market interest rates. If the market interest rate had increased/decreased by 25 basis points with all other variables held constant, post-tax profit for the three months ended March 31, 2026 and 2025 would have increased/decreased by $206 and $674, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the counterparties of financial instruments on the contract obligations. The Group is exposed to credit risk from its operating activities (mainly accounts receivable and notes receivable) and from its financing activities (mainly bank deposits and various financial instruments). The maximum exposure to aforementioned credit risk was the carrying amount of financial assets recognised in the consolidated balance sheet.

ii. Customer credit risk is managed by each business unit in accordance with the Group’s policy, procedures and control relating to customer credit risk management. Credit limits are established for all customers based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Group’s internal rating criteria, etc. Certain customer’s credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment or insurance.

~47~

iii. As of March 31, 2026, December 31, 2025 and March 31, 2025, the amounts of accounts and notes receivable from top ten customers constitute was 89% in each period, respectively, of the Group’s total accounts receivable. The credit concentration risk of the remaining accounts and notes receivable is immaterial.

iv. The Group’s treasury manages the credit risks of bank deposits and other financial instruments based on the Group’s credit policy. Because the Group’s counterparties are determined based on the Group’s internal control, only banks and companies with good credit rating and with no significant default risk are accepted. Consequently, there is no significant credit risk.

v. If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. The default occurs when the contract payments are past due over 90 days.

vi. The Group classifies customers’ contract assets and notes and accounts receivable in accordance with credit rating of customer, geographic area and industry sector. The Group applies the simplified approach using a provision matrix to estimate the expected credit loss.

vii. The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On March 31, 2026, December 31, 2025 and March 31, 2025, the provision matrix classified by customers is as follows:

March 31, 2026	Overdue
IC semiconductor group	Not past due	Up to 30 days	31 to 60 days	61 to 90 days	91 to 180 days	Over 180 days	Total
Gross carrying amount (Note)	$ 2,562,749	$ 62,405	$ 149	$ -	$ -	$ 145	$ 2,625,448
Lifetime expected credit losses	( 1,349)	( 62)	-	-	-	( 145)	( 1,556)
Carrying amount	$ 2,561,400	$ 62,343	$ 149	$ -	$ -	$ -	$ 2,623,892
Loss ratio	0.05%	0.10%	0.15%	0.20%	0.30%	100%
	Overdue
Electronics manufacturing services group	Not past due	Up to 30 days	31 to 60 days	61 to 90 days	91 to 180 days	Over 180 days	Total
Gross carrying amount	$ 2,043,152	$ 299,143	$ 115	$ 301	$ -	$ -	$ 2,342,711
Lifetime expected credit losses	( 1,323)	( 284)	-	( 1)	-	-	( 1,608)
Carrying amount	$ 2,041,829	$ 298,859	$ 115	$ 300	$ -	$ -	$ 2,341,103
Loss ratio	0%-0.05%	0%-0.10%	0%-0.15%	0%-0.20%	0%-0.30%	100%
December 31, 2025	Overdue
IC semiconductor group	Not past due	Up to 30 days	31 to 60 days	61 to 90 days	91 to 180 days	Over 180 days	Total
Gross carrying amount (Note)	$ 2,430,756	$ 111,525	$ 28,265	$ 26,871	$ 32,019	$ 145	$ 2,629,581
Lifetime expected credit losses	( 1,424)	( 134)	( 52)	( 64)	( 115)	( 145)	( 1,934)
Carrying amount	$ 2,429,332	$ 111,391	$ 28,213	$ 26,807	$ 31,904	$ -	$ 2,627,647
Loss ratio	0.06%	0.12%	0.18%	0.24%	0.36%	100%
	Overdue
Electronics manufacturing services group	Not past due	Up to 30 days	31 to 60 days	61 to 90 days	91 to 180 days	Over 180 days	Total
Gross carrying amount	$ 2,353,915	$ 86,837	$ 34,768	$ 8,221	$ -	$ -	$ 2,483,741
Lifetime expected credit losses	( 1,510)	( 93)	( 48)	( 20)	-	-	( 1,671)
Carrying amount	$ 2,352,405	$ 86,744	$ 34,720	$ 8,201	$ -	$ -	$ 2,482,070
Loss ratio	0%-0.06%	0%-0.12%	0%-0.18%	0%-0.24%	0%-0.36%	100%

March 31, 2025

IC semiconductor group

Gross carrying amount (Note)

Lifetime expected credit losses

Carrying amount

Loss ratio

Electronics manufacturing

services group

Gross carrying amount

Lifetime expected credit losses

Carrying amount

Loss ratio

Overdue
Not past due	Up to 30 days	31 to 60 days	61 to 90 days	91 to 180 days	Over 180 days	Total
$ 1,963,511	$ 83,054	$ 14,337	$ 209	$ 48	$ 145	$ 2,061,304
( 1,674)	( 150)	( 39)	( 3)	-	( 145)	( 2,011)
$ 1,961,837	$ 82,904	$ 14,298	$ 206	$ 48	$ -	$ 2,059,293
0.09%	0.18%	0.27%	0.36%~3.21%	0.54%~31.41%	100%
Overdue
Not past due	Up to 30 days	31 to 60 days	61 to 90 days	91 to 180 days	Over 180 days	Total
$ 2,060,196	$ 108,923	$ 14,539	$ 413	$ 1,640	$ -	$ 2,185,711
( 1,666)	( 163)	( 124)	( 1)	( 9)	-	( 1,963)
$ 2,058,530	$ 108,760	$ 14,415	$ 412	$ 1,631	$ -	$ 2,183,748
0%~0.09%	0%~0.18%	0%~0.27%	0%~0.36%	0%~0.54%	100%

Note: Including the total amount of current contract assets and accounts receivable.

viii. Movements in relation to the Group applying the modified approach to provide loss allowance for contract assets, accounts receivable (including related parties) and other receivables are as follows:

	2026	2025
	Accounts receivable	Accounts receivable
At January 1	$ 3,605	$ 3,879
Provision for impairment	-	95
Reversal of impairment loss	( 441)	-
Net exchange differences	-	-
At March 31	$ 3,164	$ 3,974

For provisioned loss for the three months ended March 31, 2026 and 2025, there were no impairment losses arising from the contract assets and other receivables.

i. The Group's objective on liquidity risk management is to ensure the sufficiency of financial flexibility by maintaining cash and bank deposits for operations and adequate bank financing quota.
ii. As of March 31, 2026, December 31, 2025 and March 31, 2025, the Group's total unused amounts of short-term borrowings were $4,150,904,$ 4,055,079 and $4,275,783, respectively. The Group's total unused amounts of long-term borrowings were $3,835,300,$ 3,314,900 and $4,316,800, respectively.
iii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

~50~

	Less than 1 year	Between 2 and 3 years	Between 4 and 5 years	Over 5 years	Total
March 31, 2026
Non-derivative financial liabilities:
Short-term borrowings	$ 224,249	$ -	$ -	$ -	$ 224,249
Accounts payable	5,059,619	-	-	-	5,059,619
(including related parties)
Other payables	2,304,036	-	-	-	2,304,036
Bond payables	-	2,500,000	-	-	2,500,000
Long-term borrowings	189,266	62,259	177,671	-	429,196
(including current portion)
Lease liabilities	24,942	46,838	12,528	52,798	137,106
	Less than 1 year	Between 2 and 3 years	Between 4 and 5 years	Over 5 years	Total
December 31, 2025
Non-derivative financial liabilities:
Short-term borrowings	$ 321,491	$ -	$ -	$ -	$ 321,491
Accounts payable	5,280,166	-	-	-	5,280,166
(including related parties)
Other payables	1,578,581	-	-	-	1,578,581
(including related parties)
Long-term borrowings	487,971	1,168,696	263,198	109,262	2,029,127
(including current portion)
Lease liabilities	23,375	47,766	14,088	53,658	138,887
	Less than 1 year	Between 2 and 3 years	Between 4 and 5 years	Over 5 years	Total
March 31, 2025
Non-derivative financial liabilities:
Accounts payable	$ 4,347,612	$ -	$ -	$ -	$ 4,347,612
(including related parties)
Other payables	1,805,604	-	-	-	1,805,604
(including related parties)
Long-term borrowings	437,987	707,097	245,060	-	1,390,144
(including current portion)
Lease liabilities	13,106	21,137	16,293	56,240	106,776

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

B. Financial instruments not measured at fair value

(a) The carrying amounts of the Group’s financial instruments not measured at fair value, including cash and cash equivalents, accounts receivable (including related parties), other receivables (including related parties), guarantee deposits paid, short-term borrowings, accounts payable (including related parties), other payables, lease liabilities, long-term borrowings (including current portion) and guarantee deposits received, are approximate to their fair values :

March 31, 2026

	Fair value
	Carrying amount	Level 1	Level 2	Level 3
Financial liabilities
Bond payable	$ 2,351,534	$ -	$ -	$ 2,356,250

There were no such transactions on December 31, 2025 and March 31, 2026.

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

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

C. The related information of financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets at March 31, 2026, December 31, 2025 and March 31, 2026 are as follows:

(a) The related information of nature of the asset and liabilities is as follows:

March 31, 2026	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Call options of convertible bonds	$ -	$ -	$ 8,750	$ 8,750
Financial assets at fair value through other comprehensive income
Equity securities	$2,211,596	$ -	$ 125,820	$ 2,337,416
December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through other comprehensive income
Equity securities	$1,715,180	$ -	$ 118,503	$ 1,833,683

~52~

March 31, 2025

Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value through
other comprehensive income
Equity securities
$1,755,000 $ - $ - $1,755,000

(b) The methods and assumptions the Group used to measure fair value are as follows:

i. The fair value of equity instruments without active market (such as unlisted shares) was measured by applying a market approach based on the prices and other relevant information (such as the discount for lack of marketability and inputs like price to earnings ratio or price to book ratio) arising from the market transactions of the Company's same or comparable equity instruments. Additionally, for equity instruments that lack sufficient or appropriate observable market information and comparable counterparties, net asset value is used to measure the profitability of underlying investments.

ii. The fair value of derivative financial instrument options that do not have a quoted market price in an active market was measured by applying a binary tree valuation model.

iii. The effect of unobservable inputs to the valuation of financial instruments is provided in Note 12(3)VIII.

D. For the three months ended March 31, 2026 and 2025, there was no transfer between Level 1 and Level 2.

E. The following chart is the movement of Level 3 for the three months ended March 31, 2026 and 2025:

	March 31, 2026
	Derivative equity	Non-derivative equity	Total
At January 1	$ -	$ 118,503	$ 118,503
Issued in the period	9,750	-	9,750
Gains and losses recognised in profit or loss	(1,000)	-	(1,000)
Losses recognised in other comprehensive income	-	7,317	7,317
	$ 8,750	$ 125,820	$ 134,570
Movement of unrealised gain or loss in profit or loss of assets held as at March 31, 2026	($ 1,000)	$ -	($ 1,000)

Note : Recognized under ‘other gains and losses’.

For the three months ended March 31, 2025, there were no such transactions.

F. For the three months ended March 31, 2026 and 2025, there was no transfer into or out from Level 3.

G. Treasury segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to frequently evaluate and measure fair value of financial instruments.

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

	Fair value at March 31, 2026	Valuation technique	Significant unobservable input	Range (Weighted average)
Derivative instrument:
Call options of convertible bonds	$ 8,750	Binary tree convertible valuation model	Stock price	50 dollars
			Volatility	57.72%
			Risk discount rate	2.0189%
Non-derivative equity instrument:
Unlisted shares	$ 125,820	Net assets value	Net assets value	N/A
	Fair value at December 31, 2025	Valuation technique	Significant	Range
			unobservable input	(Weighted average)
Non-derivative equity instrument:
Unlisted shares	$ 118,503	Net assets value	Net assets value	N/A
	Fair value at March 31, 2025	Valuation technique	Significant	Range
			unobservable input	(Weighted average)
Non-derivative equity instrument:
Unlisted shares	$ -	Net assets value	Net assets value	N/A

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

	March 31, 2026
	Input	Change	Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Derivative instruments	Stock price volatility	± 5%	$ 500	($ 1,250)	$ -	$ -
Equity instruments	Net assets value	± 1%	-	-	1,258	(1,258)
			$ 500	($ 1,250)	$ 1,258	($ 1,258)
			December 31, 2025
			Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instruments	Net assets value	± 1%	$ -	$ -	$ 1,185	($ 1,185)
			March 31, 2025
			Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instruments	Net assets value	± 1%	$ -	$ -	$ -	$ -

~54~

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of significant marketable securities at the end of the period: Please refer to table 2.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
F. Significant inter-company transactions during the reporting periods: Please refer to table 3.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 4.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 5.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 6.

14. Segment Information

(1) General information

For management purpose, the Group separated operating units based on business which operates individually from the main business in each region. The Group was divided into the following two reportable segments:

A. IC semiconductor group: This segment mainly provides IC packaging and testing services.
B. Electronics manufacturing services group: This segment provides professional electronics manufacturing services.

(2) Segment information

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. However, finance costs, finance income and income taxes in the consolidated financial statements are managed on a group basis and are not allocated to operating segments.

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

	Three months ended March 31, 2026
	IC semiconductor group	Electronics manufacturing services group	All other segments	Reconciliation and write-offs (Notes 1 and 2)	Total
Revenue
Revenue from external customers	$ 2,724,769	$ 2,135,707	$ -	$ -	$ 4,860,476
Inter-segment revenue	-	22,145	-	(22,145)	-
Total revenue	$ 2,724,769	$ 2,157,852	$ -	($ 22,145)	$ 4,860,476
Segment income	$ 85,379	$ 205,895	$ 372	$ -	$ 291,646
	Three months ended March 31, 2025
	IC semiconductor group	Electronics manufacturing services group	All other segments	Reconciliation and write-offs (Notes 1 and 2)	Total
Revenue
Revenue from external customers	$ 2,332,625	$ 1,744,851	$ -	$ -	$ 4,077,476
Inter-segment revenue	-	22,296	-	(22,296)	-
Total revenue	$ 2,332,625	$ 1,767,147	$ -	($ 22,296)	$ 4,077,476
Segment income	$ 158,874	$ 71,690	$ 793	$ -	$ 231,357

Note 1: Inter-segment revenue has been written-off when preparing the consolidated financial statements.
Note 2: Income or loss for each operating segment does not include income tax expense.

(3) Reconciliation for segment income (loss)

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

Orient Semiconductor Electronics, Limited and Subsidiaries

Loans to others

Three months ended March 31, 2026

Table 1

Expressed in thousands of NTD

(Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the three months ended March 31, 2026	Balance at March 31, 2026	Actual amount drawn down	Interest rate range	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party (Note)	Ceiling on total loans granted (Note)	Footnote
													Item	Value
2	COREPLUS (HK) LIMITED	Value-Plus Technology (Suzhou) Co.	Other receivables due from related parties	Y	$ 32,000 (USD 1,000)	$ 32,000 (USD 1,000)	$ 32,000 (USD 1,000)	-	Short-term financing	-	Short-term capital requirements for operating and business purposes	-	-	-	$ 663,600 (USD 20,738)	$ 663,600 (USD 20,738)	-

Note: In accordance with the Company's "Procedures for Provision of Loans", limit on loans to others is $40\%$ of the Company's net asset based on the latest audited or reviewed consolidated financial statements.

However, limit on loans to direct or indirect wholly-owned foreign subsidiaries of the Company is $200\%$ of the Company's net asset. Limit on endorsements to a single party is $30\%$ of the Company's net asset based on the latest audited or reviewed financial statements.

Orient Semiconductor Electronics, Limited and Subsidiaries

Holding of significant marketable securities at the end of the period

March 31, 2026

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 2

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of March 31, 2026				Footnote
				Number of shares	Book value	Ownership (%)	Fair value
Orient Semiconductor Electronics,Limited	STRATEDGE's stocks - common shares	None	Financial assets at fair value through other comprehensive income - non-current	5,135	$ -	-	$ -	-
Orient Semiconductor Electronics,Limited	SPINERGY's stocks - common shares	None	Financial assets at fair value through other comprehensive income - non-current	999,641	-	-	-	-
Orient Semiconductor Electronics,Limited	Golfware's stocks - common shares	None	Financial assets at fair value through other comprehensive income - non-current	4,687	-	-	-	-
Orient Semiconductor Electronics,Limited	SCREENBEAM's stocks - common shares	None	Financial assets at fair value through other comprehensive income - non-current	2,141,176	-	-	-	-
Orient Semiconductor Electronics,Limited	SCREENBEAM's stocks - preference share	None	Financial assets at fair value through other comprehensive income - non-current	2,352,941	-	-	-	-
Hua-Cheng Investment Co.	Chipbond Technology Corporation	Entity with significant influence	Financial assets at fair value through other comprehensive income - non-current	31,821,520	2,211,596	4.27%	2,211,596	-
Hua-Cheng Investment Co.	Heng Yuan Investment Co., Ltd.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	12,000,000	125,820	14.46%	125,820	-

Orient Semiconductor Electronics, Limited and Subsidiaries

Significant inter-company transactions during the reporting periods

Three months ended March 31, 2026

Table 3

Expressed in thousands of NTD

Transactions amount between the parent company and subsidiaries or between subsidiaries reaching $10 million is provided below:

(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
0	Orient Semiconductor Electronics,Limited	COREPLUS (HK) LIMITED	1	Accounts receivable	$ 32,284	-	0.14%
0	Orient Semiconductor Electronics,Limited	COREPLUS (HK) LIMITED	1	Sales revenue	22,116	Same with general transaction terms	0.46%
1	COREPLUS (HK) LIMITED	Value-Plus Technology (Suzhou) Co.	3	Other receivable	32,000	-	0.14%
2	Value-Plus Technology (Suzhou) Co.	COREPLUS (HK) LIMITED	3	Sales revenue	23,789	Same with general transaction terms	0.49%
2	Value-Plus Technology (Suzhou) Co.	COREPLUS (HK) LIMITED	3	Accounts receivable	37,330	-	0.17%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Orient Semiconductor Electronics, Limited and Subsidiaries

Information on investees

Three months ended March 31, 2026

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at March 31, 2026			Net profit (loss) of the investee for the three months ended March 31, 2026	Investment income (loss) recognised by the Company for the three months ended March 31, 2026	Footnote
				Balance as at March 31, 2026	Balance as at December 31, 2025	Number of shares	Ownership (%)	Book value
Orient Semiconductor Electronics, Limited	SCS HIGHTECH INC.	Taiwan	Manufacture of data storage and processing equipment and providing information software and data processing services	256,000	256,000	25,600,000	18.17%	-	-	-	Note 2
Orient Semiconductor Electronics, Limited	COREPLUS (HK) LIMITED	Hong Kong	Procure to order and components assembly outsourcing	240,000 (USD 7,500,000)	240,000 (USD 7,500,000)	7,500,000	100%	331,800	9,130	9,130	Notes 1 - 3
Orient Semiconductor Electronics, Limited	HUA-CHENG INVESTMENT CO.	Taiwan	Reinvestments in various business	1,999,920	1,999,920	203,494,997	100%	2,637,155	372	372	Note 3

Note 1: Initial investment amount of the reinvestee which use foreign currencies to prepare financial statements is translated to NTD at the spot rate at the period end.
Note 2: The investee was abolished on March 8, 2007.
Note 3: Inter-company transactions between companies within the Group are eliminated.

Orient Semiconductor Electronics, Limited and Subsidiaries

Information on investments in Mainland China-basic information

Three months ended March 31, 2026

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 5

Investor in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2026	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the three months ended March 31, 2026		Net income of investor for the three months ended March 31, 2026	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the three months ended March 31, 2026	Book value of investments in Mainland China as of March 31, 2026	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2026	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Value-Plus Technology (Suzhou) Co.	Adhesive processing, plug-in welding processing and related test, combination processing of the surface of base plate of electronic and sales of its products, and providing technique maintenance and after-sale service accordingly	$ 1729,433 (USD 5,388,522)	Investment and establishment in COREPLUS, and then reinvestment (2)	$ 158,328	$ -	$ -	$ 158,328	$ 525	100%	$ 525	$ 33,675	$ -
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2026	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA	Footnote
---	---	---	---	---
Orient Semiconductor Electronics,Limited	$ 158,328	$ 175,495	$ 6,867,020	Note 3

Note 1: Investment methods are classified into the following three categories;
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investor in Mainland China.
(3) Others
Note 2: Limit amount prescribed by the Jing-Shen-Zi Letter No. 09704604680 of Ministry of Economic Affairs, dated August 29, 2008, and is calculated based on $60\%$ of the Company's consolidated net assets.
Note 3: Paid-in capital was translated to NTD at the spot rate at the period end.

Orient Semiconductor Electronics, Limited and Subsidiaries

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

Three months ended March 31, 2026

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

	Sale (purchase)		Service revenue		Accounts receivable (payable)		Other receivables		Provision of endorsements/guarantees or collaterals		Financing				Other
Investee in Mainland China	Amount	%	Amount	%	Balance at March 31, 2026	%	Balance at March 31, 2026	%	Balance at March 31, 2026	%	Maximum balance during the three months ended March 31, 2026	Balance at March 31, 2026	Interest rate	Interest during the three months ended March 31, 2026
Value-Plus Technology (Suzhou) Co.	$	-	$	23,789	93%	$	37,330	95%	$	677	99%	$	-	$	32,000	$

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OSE — Interim / Quarterly Report 2026

52010_rns_2026-06-09_7104191e-1e79-4745-ade4-2bc12b68f438.pdf

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REVIEW REPORT

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of review

Basis for qualified conclusion

Qualified conclusion

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

ORIENT SEMICONDUCTOR ELECTRONICS, LIMITED AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

1. History and Organisation

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

3. Application of New Standards, Amendments and Interpretations

(21) Capital surplus

(22) Retained earnings

(32) Supplemental cash flow information

12. Others

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

(3) Fair value information

13. Supplementary Disclosures

14. Segment Information

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OSE Interim / Quarterly Report 2026