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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT ACCOUNTANTS

FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024

Address: No.24, Gangshan N. Rd., Gangshan Dist., Kaohsiung City, Taiwan, R.O.C.
Telephone: 886-7-621-3121

The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese financial statements shall prevail.

REPRESENTATION LETTER

The entities that are required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as those included in the consolidated financial statements of PANJIT International Inc. and its subsidiaries prepared in conformity with the International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates is included in the consolidated financial statements of PANJIT International Inc. and its subsidiaries. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

PANJIT International Inc.

FANG, MING-CHING

Chairman

March 10, 2026

Independent Auditor’s Report

To: PANJIT International Inc.

Opinion

We have audited the accompanying consolidated balance sheets of PANJIT INTERNATIONAL INC. (the “Company”) and its subsidiaries as of 31 December 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the years ended 31 December 2025 and 2024, and notes to the consolidated financial statements, including the summary of material accounting policies (together “the consolidated financial statements”).

In our opinion, based on our audits and the reports of other independent accountants (please refer to the Other Matter – Making Reference to the Audits of Other Independent Accountants section of our report), the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of 31 December 2025 and 2024, and their consolidated financial performance and cash flows for the years ended 31 December 2025 and 2024, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its subsidiaries in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Revenue Recognition

The consolidated operating revenues of the Company and its subsidiaries amounted to NT$13,093,916 thousand for the year ended 31 December 2025. The main source of revenue is manufacturing and selling Power Discrete. As the operation spanned globally and the product combination and pricing methods were diverse, judgment of the performance obligation and when it is satisfied was required. Therefore, we considered this a key audit matter.

Our audit procedures included (but are not limited to) assessing the appropriateness of the accounting policy of revenue recognition; testing the design and operating effectiveness of internal controls around revenue recognition by management, including identifying completeness of performance obligation of client contracts and the accounting treatment of the timing of revenue recognition; performing analytical procedures on gross margin by products and departments; selecting samples to perform test of details and reviewing significant terms and conditions of contracts; performing cutoff procedures, testing general journal entry, reviewing sales transaction certificates before and after the balance sheet date to verify that revenue has been recorded in the correct accounting period. Accordingly, evaluating the appropriateness of significant sales returns and rebates. In addition, we also considered the appropriateness of the disclosures of sales. Please refer to Notes 4 and 6 to the Company’s consolidated financial statements.

Evaluation of Inventories

As of 31 December 2025, the Company and its subsidiaries’ net inventories amounted to NT$2,549,382 thousand, constituting 9% of consolidated total assets which was then identified as material to financial statement. The status of inventory was difficult to manage due to various types of stocks stored across various locations including outsourced warehouses. Such inventories are stated at the lower of cost and net realizable value. Evaluation involves management’s significant accounting estimation and judgement, and the carrying amount of inventories is material to consolidated financial statements. Therefore we considered this a key audit matter.

Our audit procedures included (but are not limited to) assessing the appropriateness of the accounting policy of inventories evaluation; testing the design and operating effectiveness of internal controls around inventories by management, including assessing the transfer of inventory cost, selecting major warehouse to observe physical stock taking to verify inventory quantity and status; and assessing the management's estimates of net realizable value by inventories evaluation, and selecting samples to verify related certificates to test the correctness of inventories aging interval; review whether obsolescence loss allowance was sufficient according to policy and assess the appropriateness of the provision policy. We also assessed the adequacy of disclosures of inventories. Please refer to Notes 4, 5 and 6 to the Company’s consolidated financial statements.

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Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain investment accounted for under the equity method, which reflected the associates and joint ventures under equity method in the amount of NT$1,764,889 thousand and NT$1,721,772 thousand, constituting 6% and 6% of consolidated total assets as of 31 December 2025 and 2024, respectively. The related shares of profits from the associates and joint ventures under the equity method of NT$168,504 thousand and NT$164,914 thousand, constituting 10% and 13% of consolidated pretax income, and the related shares of other comprehensive income from the associates and joint ventures under the equity method of (NT$10,566) thousand and NT$29,392 thousand, constituting 6% and 8% of consolidated other comprehensive income for the year ended 31 December 2025 and 2024, respectively. Those financial statements were audited by other independent accountants, whose reports there on have been furnished to us, and our audit results are based solely on the reports of the other independent accountants.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the ability to continue as a going concern of the Company and its subsidiaries, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company and its subsidiaries or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the financial reporting process of the Company and its subsidiaries.

Auditor’s Responsibilities for the Audit of Consolidated Financial Statements

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

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

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2025 consolidated financial statements and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Others

We have audited and expressed an unqualified opinion including an Other Matter Paragraph on the parent company only financial statements of the Company as of and for the years ended 31 December 2025 and 2024.

Fang-Wen Lee

Fuh, Wen-Fun

Ernst & Young, Taiwan

March 10, 2026

Notice to Readers

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

Accordingly, the accompanying consolidated financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of Republic of China, and their applications in practice.

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English Translation of Consolidated Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

31 December, 2025 and 2024

(Expressed in Thousand of New Taiwan Dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
Cash and cash equivalents	6(1)	$2,128,944	7	$2,361,159	8
Financial assets at fair value through profit or loss - current	6(2)	6,283,399	21	4,552,436	16
Notes receivable, net	6(5),(21)	242,686	1	336,224	1
Accounts receivable, net	6(6),(21)	3,863,682	13	3,467,331	12
Accounts receivable due from related parties, net	6(6),(21)/7	20,525	-	28,546	-
Other receivables		109,842	-	103,967	-
Other receivables due from related parties	7	7,784	-	3,974	-
Inventories, net	6(7)	2,549,382	9	2,738,608	9
Prepayments	7	426,143	2	496,248	2
Other current assets	8	130,140	-	125,040	1
Total current assets		15,762,527	53	14,213,533	49
Non-current assets
Financial assets at fair value through profit or loss-non-current	6(2)	475,249	2	839,679	3
Financial assets at fair value through other comprehensive income-non-current	6(3)	497,052	2	479,208	2
Financial assets measured at amortized cost-non-current	6(4)	14,831	-	27,499	-
Investments accounted for using the equity method	6(8)	2,218,551	8	2,197,752	8
Property, plant and equipment	6(9)/7	6,856,339	23	7,322,424	25
Right-of-use assets	6(22)/7	1,102,997	4	1,143,754	4
Intangible assets	6(10),(11)	1,631,298	5	1,640,812	6
Deferred tax assets	6(26)	304,097	1	329,472	1
Prepayments for business facilities		87,189	-	91,982	-
Refundable deposits	8	343,063	1	277,745	1
Other non-current assets, others	8	226,099	1	178,804	1
Total non-current assets		13,756,765	47	14,529,131	51
Total assets		$29,519,292	100	$28,742,664	100

Liabilities and equity	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Liabilities
Current borrowings	6(12)	$2,903,194	10	$2,996,916	10
Current financial liabilities at fair value through profit or loss	6(14)	3,770	-	3,411	-
Contract liabilities-current	6(20)	3,537	-	6,058	-
Notes payable	6(13)	377,165	1	387,991	2
Accounts payable		1,242,175	4	1,163,913	4
Accounts payable to related parties	7	30,191	-	37,131	-
Other payables		1,738,396	6	1,407,627	5
Other payables to related parties	7	38,739	-	38,458	-
Current tax liabilities		317,473	1	219,210	1
Current lease liabilities	6(22)/7	53,638	-	57,660	-
Long-term borrowings, current portion	6(16),(17)/8	750,544	3	767,870	3
Other current liabilities, others		60,126	-	119,545	-
Total current liabilities		7,518,948	25	7,205,790	25
Non-current Liabilities
Non-current financial liabilities at fair value through profit or loss	6(14)	6,513	-	13,763	-
Bonds payable	6(16)	452,806	2	441,245	2
Long-term borrowings	6(17)/8	4,839,119	16	4,951,959	17
Deferred tax liabilities	6(26)	107,487	-	123,179	1
Non-current lease liabilities	6(22)/7	213,091	1	249,683	1
Long-term deferred revenue	6(15)	57,461	-	51,459	-
Net defined benefit liability, non-current	6(18)	63,141	-	61,035	-
Other non-current liabilities, others		133,388	1	124,707	-
Total non-current liabilities		5,873,006	20	6,017,030	21
Total liabilities		13,391,954	45	13,222,820	46
Equity attributable to owners of parent
Capital stock
Common stock	6(19)	3,821,149	13	3,821,149	13
Capital surplus	6(19)	6,136,024	21	6,072,159	21
Retained earnings	6(19)
Legal reserve		902,653	3	812,657	3
Special reserve		717,237	2	717,237	3
Unappropriated retained earnings		3,501,429	12	2,938,084	10
Total retained earnings		5,121,319	17	4,467,978	16
Other components of equity		(405,934)	(1)	(238,172)	(1)
Total equity attributable to owners of parent		14,672,558	50	14,123,114	49
Non-controlling interests	6(19)	1,454,780	5	1,396,730	5
Total equity		16,127,338	55	15,519,844	54
Total liabilities and equity		$29,519,292	100	$28,742,664	100

(The accompanying notes are an integral part of the consolidated financial statements.)

English Translation of Consolidated Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the years ended 31 December, 2025 and 2024
(Expressed in Thousand of New Taiwan Dollars, Expect for Earnings per share)

Items	Notes	2025		2024
		Amount	%	Amount	%
Operating revenues	6(20)/7	$13,093,916	100	$12,536,212	100
Operating costs	6(7).(22),(23)/7	(9,000,956)	(69)	(8,939,137)	(72)
Gross profit		4,092,960	31	3,597,075	28
Operating expense	6(21).(22).(23)/7
Selling expense		(770,529)	(6)	(746,032)	(6)
Administrative expenses		(1,222,042)	(9)	(1,059,108)	(8)
Research and development expenses		(975,127)	(7)	(972,115)	(8)
Expected credit impairment gains (losses)	6(21)	(13,978)	-	(6,899)	-
Total operating expense		(2,981,676)	(22)	(2,784,154)	(22)
Operating income		1,111,284	9	812,921	6
Non-operating income and expenses	6(22).(24)/7
Interest income		254,988	2	188,529	2
Other income	7	121,192	1	74,270	1
Other gains or losses	7	239,770	2	241,681	2
Finance costs		(224,288)	(2)	(226,781)	(2)
Share of profit or loss of associates under equity method	6(8)	175,706	1	176,985	1
Total non-operating income and expenses		567,368	4	454,684	4
Pretax income from continuing operations		1,678,652	13	1,267,605	10
Income tax expenses	6(26)	(288,236)	(2)	(190,201)	(2)
Profit from continuing operations		1,390,416	11	1,077,404	8
Net income		1,390,416	11	1,077,404	8
Other comprehensive income (loss)	6(25)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation		(2,585)	-	(18,077)	-
Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income		(26,138)	-	(44,948)	-
Income tax related to items that will not be reclassified	6(25).(26)	910	-	891	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations		(179,014)	(1)	517,532	4
Income tax related to items that may be reclassified	6(25).(26)	28,348	-	(90,318)	(1)
Other comprehensive income of the current period (net after tax)		(178,479)	(1)	365,080	3
Total comprehensive income		$1,211,937	10	$1,442,484	11
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent		$1,191,631	9	$918,523	7
Profit (loss), attributable to non-controlling interests		198,785	2	158,881	1
		$1,390,416	11	$1,077,404	8
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent		$1,024,240	8	$1,268,033	10
Comprehensive income, attributable to non-controlling interests		187,697	2	174,451	1
		$1,211,937	10	$1,442,484	11
Earnings per share (NTD)	6(27)
Basic earnings per share		$3.12		$2.40
Diluted earnings per share		$3.11		$2.39

(The accompanying notes are an integral part of the consolidated financial statements.)

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English Translation of Consolidated Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the years ended 31 December, 2025 and 2024

(Expressed in Thousand of New Taiwan Dollars)

Items	Equity Attributable to Parent Company									Non-Controlling interests	Total Equity
	Capital		Retained Earnings			Other Components of Equity
	Common stock	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Retained Earnings	Exchange Differences Arising on Translation of Foreign Operations	Unrealized Gains or Losses on Financial Assets Measured at Fair Value through Other Comprehensive Income	Others	Total
Balance as of 1 January, 2024	$3,821,149	$6,007,138	$729,336	$717,237	$2,579,987	($465,184)	($140,652)	($413)	$13,248,598	$1,385,941	$14,634,539
Appropriation and distribution of 2023 retained earnings
Legal reserve	-	-	83,321	-	(83,321)	-	-	-	-	-	-
Cash dividend	-	-	-	-	(458,538)	-	-	-	(458,538)	-	(458,538)
Changes in equity of associates accounted for using equity method	-	69,139	-	-	-	-	-	-	69,139	-	69,139
Other changes in capital surplus	-	5	-	-	-	-	-	-	5	-	5
Net income in 2024	-	-	-	-	918,523	-	-	-	918,523	158,881	1,077,404
Other comprehensive income (loss) in 2024	-	-	-	-	(18,999)	410,513	(42,004)	-	349,510	15,570	365,080
Total comprehensive income (loss)	-	-	-	-	899,524	410,513	(42,004)	-	1,268,033	174,451	1,442,484
Difference between consideration given/received and carrying amount of interests in subsidiaries acquired through of disposed	-	(22,777)	-	-	-	-	-	-	(22,777)	(16,679)	(39,456)
Increase (decrease) through changes in ownership interests in subsidiaries	-	18,654	-	-	-	-	-	-	18,654	33,391	52,045
Increase (decrease) in non-controlling interests	-	-	-	-	-	-	-	-	-	(180,374)	(180,374)
Disposal of equity instrument investments measured at fair value through other comprehensive income	-	-	-	-	432	-	(432)	-	-	-	-
Balance as of 31 December, 2024	$3,821,149	$6,072,159	$812,657	$717,237	$2,938,084	($54,671)	($183,088)	($413)	$14,123,114	$1,396,730	$15,519,844
Balance as of 1 January, 2025	$3,821,149	$6,072,159	$812,657	$717,237	$2,938,084	($54,671)	($183,088)	($413)	$14,123,114	$1,396,730	$15,519,844
Appropriation and distribution of 2024 retained earnings
Legal reserve	-	-	89,996	-	(89,996)	-	-	-	-	-	-
Cash dividend	-	-	-	-	(534,961)	-	-	-	(534,961)	-	(534,961)
Changes in equity of associates accounted for using equity method	-	74,381	-	-	-	-	-	(3,700)	70,681	2	70,683
Net income in 2025	-	-	-	-	1,191,631	-	-	-	1,191,631	198,785	1,390,416
Other comprehensive income (loss) in 2025	-	-	-	-	(3,329)	(139,610)	(24,452)	-	(167,391)	(11,088)	(178,479)
Total comprehensive income (loss)	-	-	-	-	1,188,302	(139,610)	(24,452)	-	1,024,240	187,697	1,211,937
Difference between consideration given/received and carrying amount of interests in subsidiaries acquired through of disposed	-	29	-	-	-	-	-	-	29	(155)	(126)
Increase (decrease) through changes in ownership interests in subsidiaries	-	(10,545)	-	-	-	-	-	-	(10,545)	10,545	-
Increase (decrease) in non-controlling interests	-	-	-	-	-	-	-	-	-	(140,039)	(140,039)
Balance as of 31 December, 2025	$3,821,149	$6,136,024	$902,653	$717,237	$3,501,429	($194,281)	($207,540)	($4,113)	$14,672,558	$1,454,780	$16,127,338

(The accompanying notes are an integral part of the consolidated financial statements.)

English Translation of Consolidated Financial Statements Originally Issued in Chinese
PANIT INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended 31 December, 2025 and 2024
(Expressed in Thousand of New Taiwan Dollars)

| Items | 2025
Amount | 2024
Amount |
| --- | --- | --- |
| Cash flows from operating activities: | | |
| Net income before tax | $1,678,652 | $1,267,605 |
| Adjustments to reconcile net income (loss) before tax to net cash provided by operating activities: | | |
| Revenue and expenses | | |
| Depreciation | 978,776 | 1,009,661 |
| Amortization | 32,095 | 30,075 |
| Expected credit losses | 13,978 | 6,899 |
| Net (gain) of financial assets and liabilities at fair value through profit or loss | (264,302) | (214,513) |
| Interest expense | 224,288 | 226,781 |
| Interest revenue | (254,988) | (188,529) |
| Dividend income | (7,621) | (10,611) |
| Share of (profit) of associates accounted for using equity method | (175,706) | (176,985) |
| (Gain) loss on disposal of property, plant and equipment | (2,673) | 4,660 |
| Loss on disposal of investments | 13 | - |
| Impairment loss on non-financial assets | - | 45,362 |
| Reversal of impairment gain on non-financial assets | (3,489) | - |
| Others - (reversal gain) loss on inventory valuation | (205,626) | 10,962 |
| Others-other | 36,985 | 11,370 |
| Subtotal | 371,730 | 755,132 |
| Changes in operating assets and liabilities: | | |
| Changes in operating assets: | | |
| (Increase) in financial assets at fair value through profit or loss, mandatorily measured at fair value | (1,274,081) | (754,886) |
| Decrease in notes receivable | 93,538 | 254,100 |
| (Increase) in accounts receivable | (362,837) | (129,820) |
| Decrease in accounts receivable due from related parties | 8,021 | 11,043 |
| (Increase) decrease in other receivable | (5,872) | 45,564 |
| (Increase) in other receivables due from related parties | (3,810) | (1,214) |
| Decrease in inventories | 394,824 | 249,316 |
| Decrease in prepayments | 60,354 | 46,840 |
| (Increase) decrease in other current assets | (5,100) | 33,215 |
| Changes in operating liabilities: | | |
| (Decrease) in contract liabilities | (2,521) | (3,686) |
| (Decrease) in notes payable | (10,826) | (248,749) |
| (Decrease) in accounts payable | 103,712 | (186,908) |
| (Decrease) in accounts payable to related parties | (6,940) | (17,146) |
| Increase in other payable | 260,635 | 70,530 |
| Increase in other payable to related parties | 281 | 1,268 |
| (Decrease) increase in other current liabilities | (16,767) | 2,215 |
| (Decrease) in net defined benefit liability | (2,124) | (25,627) |
| Total changes in operating assets and liabilities | (769,513) | (653,945) |
| Cash inflow generated from operations | 1,280,869 | 1,368,792 |
| Interest received | 280,490 | 199,731 |
| Income tax (paid) | (142,031) | (262,717) |
| Net cash flows from operating activities | 1,419,328 | 1,305,806 |
| Cash flows from investing activities: | | |
| Acquisition of financial assets at fair value through other comprehensive income | (40,000) | (31,472) |
| Proceeds from disposal of financial assets at fair value through other comprehensive income | - | 3,815 |
| Proceeds from disposal of financial assets at amortised cost | 14,266 | - |
| Acquisition of financial assets at fair value through profit or loss | (347,046) | (996,068) |
| Proceeds from disposal of financial assets at fair value through profit or loss | 302,724 | 194,583 |
| Acquisition of investments accounted for using equity method | - | (19,092) |
| Increase in prepayments for investments | (50,000) | - |
| Acquisition of property, plant, and equipment | (303,730) | (340,487) |
| Proceeds from disposal of property, plant and equipments | 12,465 | 34,410 |
| Increase in refundable deposits | (65,318) | - |
| Decrease in refundable deposits | - | 190,963 |
| Acquisition of intangible assets | (20,367) | (15,028) |
| Increase in other financial assets | (3,618) | - |
| Decrease in other financial assets | - | 70,000 |
| Increase in other non-current assets | - | (100,886) |
| Decrease in other non-current assets | 6,323 | - |
| Increase in prepayments for business facilities | (107,675) | (163,479) |
| Dividends received | 208,322 | 153,418 |
| Net cash flows (used in) by investing activities | (393,654) | (1,019,323) |
| Cash flows from (used in) financing activities: | | |
| Increase in short-term loans | - | 295,480 |
| Decrease in short-term loans | (91,320) | - |
| Proceeds from issuing bonds | - | 491,391 |
| Repayments of long-term debt | (139,021) | (1,138,159) |
| Increase in financial liabilities designated at fair value through profit or loss | - | 8,549 |
| Payments of lease liabilities | (72,528) | (73,364) |
| Increase in other non-current liabilities | 8,680 | 21,532 |
| Cash dividends paid | (534,961) | (458,538) |
| Acquisition of ownership interests in subsidiaries | (126) | (33,282) |
| Interest paid | (199,640) | (208,525) |
| Change in non-controlling interests | (133,304) | (167,065) |
| Other financing activities | - | 5 |
| Net cash flows (used in) by financing activities | (1,162,220) | (1,261,976) |
| Effect of exchange rate changes on cash and cash equivalents | (95,669) | 259,775 |
| Net (decrease) increase in cash and cash equivalents | (232,215) | (715,718) |
| Cash and cash equivalents at beginning of period | 2,361,159 | 2,076,877 |
| Cash and cash equivalents at end of period | $2,128,944 | $2,361,159 |

(The accompanying notes are an integral part of the consolidated financial statements.)

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English Translation of Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

History and organization

PANJIT INTERNATIONAL INC. (the Company) was incorporated on 20 May 1986, under the Company Act of the Republic of China on Taiwan. The Company’s registered address is No. 24, Gangshan N. Rd., Gangshan Dist., Kaohsiung City. The principal activities of the Company are to manufacture, process, assemble and to import and export semiconductors. The Company also assembles, trades and transfers technological advancements of machinery parts. The Company also trades resins and paints for semiconductors.

The Company’s shares commenced trading on Taipei Exchange Market (GreTai Securities Market) on 22 December 1999, and then trading on Taiwan Stock Exchange Corporation on 17 September 2001.

Date and procedures of authorization of financial statements for issue

The consolidated financial statements of the Company and its subsidiaries (“the Group”) for the years ended 31 December 2025 and 2024 were authorized for issue by the Board of Directors on 10 March 2026.

Newly issued or revised standards and interpretations

(1) Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after 1 January 2025. The adoption of these new standards and amendments had no material impact on the Group.

(2) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not adopted by the Group as at the end of the reporting period are listed below:

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 17 "Insurance Contracts"	January 1, 2023
b	Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Amendments to the Classification and Measurement of Financial Instruments	January 1, 2026
c	Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026
d	Contracts Referencing Nature-dependent Electricity—Amendments to IFRS 9 “Financial Instruments” and IFRS7 “Financial Instruments: Disclosures”	January 1, 2026

(a) IFRS 17 "Insurance Contracts"

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation, and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin.

In addition to the general model, we also offer a specific method for contracts with direct participation characteristics (variable fee approach); and a simplified method for short-term contracts (premium allocation approach).

IFRS 17 was issued in May 2017, and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after January 1, 2023 (from the original effective date of January 1, 2021), provide additional transition reliefs, simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard - IFRS 4 Insurance Contracts - from annual reporting periods beginning on or after January 1, 2023.

(b) Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Amendments to the Classification and Measurement of Financial Instruments

The amendments include:

i. Clarify that a financial liability is derecognized on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.
ii. Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.
iii. Clarify the treatment of non-recourse assets and contractually linked instruments.
iv. Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income.

i. Amendments to IFRS 1
ii. Amendments to IFRS 7
iii. Amendments to IFRS 7 of Implementation guidance
iv. Amendments to IFRS 9
v. Amendments to IFRS 10
vi. Amendments to IAS 7

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(d) Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 “Financial Instruments” (IFRS 9) and IFRS 7 “Financial Instruments: Disclosures” (IFRS 7)

The amendments include:

i. Clarify the application of the "own-use" requirements.
ii. Permit hedge accounting if these contracts are used as hedging instruments.
iii. Add new disclosure requirements to enable investors to understand the effect of these contracts on a company's financial performance and cash flows.

The above amendments standards apply the for annual reporting periods beginning on or after January 1, 2026 and have no significant impact on the Group's assessment.

Standards or interpretations issued, revised or amended, by International Accounting Standards Board ("IASB") which are endorsed by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or joint ventures	To be determined by IASB
b	IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note)
c	IFRS 19 “Disclosure Initiative - Subsidiaries without Public Accountability: Disclosures”	January 1, 2027
d	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	January 1, 2027

Note: The FSC issued a press release on September 25, 2025, announcing the plan for public companies to adopt IFRS 18 starting from the fiscal year 2028.

(a) Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” - Sale or investment of assets between investors and their associates or joint ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

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IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

(b) IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 replaces IAS 1 “Presentation of Financial Statements”. The main changes in the new standard are as below:

i. Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

ii. Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

iii. Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

This standard and its amendments permits subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

(d) Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)

The amendments include:

i. To clarify, when reporting the financial results and financial position of an entity using a functional currency other than the currency under the hyperinflationary economy, such results and financial position shall be translated using the closing exchange rate on the date of the most recent financial statements.

ii. In the circumstances described above, when the presentation currency no longer reflects a hyperinflationary economy, the reporting entity should not recalculation the amounts in the prior period financial statements.

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iii. When both the functional currency and the presentation currency are in a hyperinflationary economy, the reporting entity shall apply the relevant accounting treatment in accordance with paragraph 34 of International Accounting Standard 29.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Group’s financial statements were authorized for issue, and the local effective dates are to be determined by FSC. As the Group is still currently determining the potential impact of the standards and interpretations listed under (b), it is not practicable to estimate their impact on the Group at this point in time. The remaining new or amended standards and interpretations have no material impact on the Group.

Summary of material accounting policies

(1) Statement of compliance

The consolidated financial statements of the Group for the years ended 31 December 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”), IFRSs, IASs, IFRIC and SIC, which are endorsed by FSC.

(2) Basis of Preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured by fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars (“$”) unless otherwise stated.

(3) Basis of consolidation

Preparation principle of consolidated financial statements

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

(a) power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
(b) exposure, or rights, to variable returns from its involvement with the investee, and
(c) the ability to use its power over the investee to affect its returns

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

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(a) the contractual arrangement with the other vote holders of the investee
(b) rights arising from other contractual arrangements
(c) the Group’s voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Subsidiaries are fully consolidated from the acquisition date, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

The total comprehensive income of subsidiaries is attributable to the owners of the parent and to the noncontrolling interests even if this results in the non-controlling interests having a deficit balance.

If the Group loses control of a subsidiary, it:

(a) derecognizes the assets (including goodwill) and liabilities of the subsidiary;
(b) derecognizes the carrying amount of any non-controlling interest;
(c) recognizes the fair value of the consideration received;
(d) recognizes the fair value of any investment retained;
(e) recognizes any surplus or deficit in profit or loss; and
(f) reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss.

The consolidated entities are listed as follows:

Investing	Subsidiary	Main Businesses	Percentage of ownership (%)
			31 Dec. 2025	31 Dec.2024
The Company	PAN-JIT ASIA INTERNATIONAL INC.	Investment holding	100.00%	100.00%
The Company	Pynmax Technology Co., Ltd.	Manufacture of electronic component and international trade business	94.65% (Note 6)	94.64%
The Company	AIDE ENERGY EUROPE COÖPERATIE U.A.	Investment holding	100.00%	100.00%

			Percentage of ownership(%)
Investing	Subsidiary	Main Businesses	31 Dec. 2025	31 Dec.2024
The Company	Champion Microelectronic Corp. ("CMC")	Research and development, design and manufacture and technology consultation of power IC, field effect transistors and fast recovery diodes, international trade	30.84% (Note 2)	30.68%
The Company	PANJIT JAPAN Inc.	Sales of electronic products	55.00%	55.00%
The Company	PAN-JIT INTERNATIONAL (H.K.) LTD.	Sales of electronic products	100.00%	100.00%
The Company	PAN JIT KOREA CO., LTD.	Sales of electronic products	60.00%	60.00%
The Company	PANJIT Investment Co., Ltd.	Investment holding	100.00%	100.00%
The Company	PAN-JIT JAPAN INVESTMENT HOLDING CORPORATION	Investment holding	100.00% (Note 4)	—
PAN-JIT ASIA INTERNATIONAL INC.	PAN JIT EUROPE GMBH	Sales of electronic products	100.00%	100.00%
PAN-JIT ASIA INTERNATIONAL INC.	PAN JIT AMERICAS, INC.	Sales of electronic products	95.86%	95.86%
PAN-JIT ASIA INTERNATIONAL INC.	PAN JIT Electronics (Wuxi) Co., Ltd.	Manufacture, and process of rectifier	100.00% (Note 1)	100.00% (Note 1)
PAN-JIT ASIA INTERNATIONAL INC.	CONTINENTAL LIMITED	Investment holding	100.00%	100.00%
PAN-JIT ASIA INTERNATIONAL INC.	AIDE ENERGY (CAYMAN) HOLDING CO., LTD.	Investment holding and sale of photovoltaic products	94.43%	94.43%
PAN-JIT ASIA INTERNATIONAL INC.	SHENZHEN WEIQUAN ELECTRONICS CO., LTD	New types of electronics components and semiconductor controlled rectifier sales	100.00%	100.00%
Pynmax Technology Co., Ltd.	JOYSTAR INTERNATIONAL CO., LTD.	Investment holding	100.00%	100.00%
CONTINENTAL LIMITED	SUZHOU GRANDE ELECTRONICS CO., LTD.	Chip diodes, transistors and other new electronic semiconductor components and related products, sales of products and provide technical and after-sales service	100.00%	100.00%

Investing	Subsidiary	Main Businesses	Percentage of ownership (%)
			31 Dec. 2025	31 Dec.2024
PAN JIT Electronics (Wuxi) Co., Ltd.	PANJIT Electronics (Beijing) Co., Ltd.	New types of electronic components, Semiconductor controlled rectifier sales	100.00%	100.00%
PAN JIT Electronics (Wuxi) Co., Ltd.	PANJIT ELECTRONICS (SHANDONG) CO., LTD.	Manufacture semiconductor wafer for automobile, protection of discrete devices, integrated circuit chip packaged product	70.28%	70.28%
PAN JIT Electronics (Wuxi) Co., Ltd.	PANJIT ELECTRONIC (QUFU) CO., LTD.	New types of electronic components, Semiconductor controlled rectifier sales	— (Note 5)	100.00%
PAN JIT Electronics (Wuxi) Co., Ltd.	PANJIT SEMICONDUCTOR (XUZHOU) CO., LTD.	New types of electronic components, Semiconductor controlled rectifier sales	100.00%	100.00%
AIDE ENERGY (CAYMAN) HOLDING CO., LTD.	JIANGSU AIDE SOLAR ENERGY TECHNOLOGY CO., LTD.	Solar photovoltaic product development, manufacturing, sales, self-agency of goods and technology import and export business	100.00%	100.00%
AIDE ENEREGY EUROPE COÖPERATIE U.A.	AIDE ENERGY EUROPE B.V.	Investment holding and sales	100.00%	100.00%
AIDE ENERGY EUROPE B.V.	EC SOLAR C1 SRL	Solar power generation and sales of electricity	100.00%	100.00%
Champion Microelectronic Corp.	Wisdom Bright Inc.	Investment holding	100.00%	100.00%
Champion Microelectronic Corp.	Wisdom Mega Corp.	Investment holding	100.00%	100.00%
Champion Microelectronic Corp.	PANJIT JAPAN Inc.	Sales of electronic products	10.00%	10.00%
Champion Microelectronic Corp.	Golden Champion Digital Power Corporation	Manufacture of electronic components and product design	100.00%	100.00%
Wisdom Bright Inc.	Wisdom Toprich Technology Limited	Investment holding	100.00%	100.00%
Wisdom Toprich Technology Limited	Great Power Microelectronics Corp.	Electronic products development, product import, export and wholesale business	100.00%	100.00%
PANJIT Investment Co., Ltd.	PANSTAR SEMICONDUCTOR CO., LTD.	Manufacture of electronic components and international trade business	33.33%	33.33%

Investing	Subsidiary	Main Businesses	Percentage of ownership (%)
			31 Dec. 2025	31 Dec.2024
PANJIT Investment Co., Ltd.	MetaWeIIs Co., Ltd.	Manufacture of electronic components and international trade business	81.43% (Note 3)	68.00%

(Note 1): PAN-JIT ASIA INTERNATIONAL INC. owned $100.00\%$ of the shares with other subsidiaries, which are consolidated into the Company's financial statements.

(Note 2): On 25 February, 2025, Champion Microelectronic Corp.'s Board of Directors approved the cancellation of treasury shares and the record date on 27 February, 2025. The change of paid-in capital registration of 163 thousand treasury shares was on 3 March, 2025. The Company acquired the share of CMC. which increased the percentage of ownership interests from $30.68\%$ to $30.74\%$ . The board of directors of Champion Microelectronic Corp. resolved to repurchase treasury stock. On 11 April 2025, the Company acquired the share of CMC. which increased the percentage of ownership interests from $30.74\%$ to $30.84\%$ .

(Note 3): MetaWeIIs Co., Ltd. increased its capital in February, April and November 2025, and PANJIT Investment Co., Ltd.'s shareholding ratio was increased from $68.00\%$ to $81.43\%$ .

(Note 4): The Company established PAN-JIT Japan Investment Holding Corporation in January 2025 and completed the registration procedures in April 2025.

(Note 5): PANJIT ELECTRONIC (QUFU) CO., LTD. has completed its dissolution and liquidation in April 2025.

(Note 6): The Company acquired the shares of Pynmax Technology Co., Ltd. which increased the percentage of ownership interests from $94.64\%$ to $94.65\%$ .

(4) Foreign currency transaction

The Group's consolidated financial statements are presented in NT$, which is also the parent company's functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

(a) Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

(b) Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

(c) Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(5) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following partial disposals are accounted for as disposals:

(a) When the partial disposal involves the loss of control of a subsidiary that includes a foreign operation; and

(b) When the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

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Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(6) Current and non-current distinction

An asset is classified as current when:

(a) The Group expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(b) The Group holds the asset primarily for the purpose of trading;
(c) The Group expects to realize the asset within twelve months after the reporting period;
(d) The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current. A liability is classified as current when:

(a) The Group expects to settle the liability in its normal operating cycle;
(b) The Group holds the liability primarily for the purpose of trading;
(c) The liability is due to be settled within twelve months after the reporting period;
(d) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

(7) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits, short-term, highly liquid time deposits or investments that are readily converted to known amounts of cash and which are subject to an insignificant risk of changes in value.

(8) Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liabilities.

A. Financial instruments: recognition and measurement

The Group accounts for regular way purchase or sales of financial assets on the trade date. The Group classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

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(a). the Group’s business model for managing the financial assets and
(b). the contractual cash flow characteristics of the financial asset.

Financial asset measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as notes receivable, accounts receivable, financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

(a). the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
(b). the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a). Purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
(b). Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial assets measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

(a). the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
(b). the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

(a) A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

(b) When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

(c) Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(i) Purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(ii) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Group made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represent a recovery of part of the cost of investment. Financial assets measured at fair value through profit or loss.

Financial assets at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

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B. Impairments of financial assets

The Group recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Group measures expected credit losses of a financial instrument in a way that reflects:

(a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
(b) the time value of money; and
(c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follows:

(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Group measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.
(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.
(c) For accounts receivables or contract assets arising from transactions within the scope of IFRS 15, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.
(d) For lease receivables arising from transactions within the scope of IFRS 16, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Group needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

C. Derecognition of financial assets

A financial asset is derecognized when:

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i. The rights to receive cash flows from the asset have expired;
ii. The Group has transferred the asset and substantially all the risks and rewards of the asset have been transferred;
iii. The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

D. Financial liabilities and equity

Classification between liabilities or equity

The Group classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Compound instruments

The Group evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Group assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortized cost before the instrument is converted or settled. For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortized cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments.

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Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortized cost at the date of conversion is transferred to equity.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

A financial liability is classified as held for trading if:

i. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
ii. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
iii. it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

i. it eliminates or significantly reduces a measurement or recognition inconsistency; or
ii. a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

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Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include payables and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

E. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(9) Derivative instruments.

The Group uses derivative instruments to hedge its foreign currency risks and interest rate risks. A derivative is classified in the balance sheet as financial assets or liabilities at fair value through profit or loss (held for trading) except for derivatives that are designated effective hedging instruments which are classified as derivative financial assets or liabilities for hedging.

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The changes in fair value of derivatives are taken directly to profit or loss, except for the effective portion of hedges, which is recognized in either profit or loss or equity according to types of hedges used.

When the host contracts are either non-financial assets or liabilities, derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value though profit or loss. These embedded derivatives are separated from the host contract and accounted for as a derivative.

(10) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(11) Inventories

Inventories are valued at lower of cost and net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

Raw materials – Purchase cost on weighted average cost basis

Finished goods and work in progress – Cost of direct materials, labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing cost.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Rendering of services is accounted in accordance with IFRS 15 and not within the scope of inventories.

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(12) Non-current assets held for sale and discontinued operations

Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered through a sale transaction that is highly probable within one year from the date of classification and the asset or disposal group is available for immediate sale in its present condition. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

In the consolidated statement of comprehensive income of the reporting period, and of the comparable period of the previous year, income and expenses from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of profit after taxes, even when the Group retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss (after taxes) is reported separately in the statement of comprehensive income.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

(13) Investments accounted for using the equity method

The Group’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Group has significant influence.

Under the equity method, the investment in the associate is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Group’s share of net assets of the associate. After the interest in the associate is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the Group’s related interest in the associate.

When changes in the net assets of an associate occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Group’s percentage of ownership interests in the associate, the Group recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate on a pro-rata basis.

When the associate issues new stock, and the Group’s interest in an associate is reduced or increased as the Group fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognized in Additional Paid in Capital and Investment in associate. When the interest in the associate is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit on a pro-rata basis when the Group disposes the associate.

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The financial statements of the associate are prepared for the same reporting period as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the 'share of profit or loss of an associate' in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Group estimates:

(a) Its share of the present value of the estimated future cash flows expected to be generated by the associate, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or
(b) The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(14) Property, Plant, and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Group recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

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Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Assets	Useful life
Buildings	1~41 years
Machinery and equipment	1~15 years
Utilities equipment	1~10 years
Transportation equipment	1~5 years
Office equipment	1~10 years
Lease improvements	1~10 years
Other equipment	1~20 years

After initial recognition, items of property, plant, and equipment or any important component are derecognized and recognized as gain or loss if they are disposed of or are not expected to have an inflow of economic benefits due to use or disposal in the future.

The assets' residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate. These changes are treated as accounting estimates.

(15) Lease

The Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Group assesses whether, throughout the period of use, has both of the following:

(a) the right to obtain substantially all of the economic benefits from use of the identified asset; and
(b) the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Group accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Group for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Group estimates the stand-alone price, maximising the use of observable information.

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Group as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Group recognizes right-of-use asset and lease liability for all leases which the Group is the lessee of those lease contracts.

At the commencement date, the Group measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

(a) fixed payments (including in-substance fixed payments), less any lease incentives receivable;
(b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(c) amounts expected to be payable by the lessee under residual value guarantees;
(d) the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
(e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Group measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Group measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

(a) the amount of the initial measurement of the lease liability;
(b) any lease payments made at or before the commencement date, less any lease incentives received;
(c) any initial direct costs incurred by the lessee; and
(d) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Group measures the right-of-use applying a cost model.

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If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the Group depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Group applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Group accounted for as short-term leases or leases of low-value assets, the Group presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

For short-term leases or leases of low-value assets, the Group elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Group as a lessor

At inception of a contract, the Group classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Group recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Group allocates the consideration in the contract applying IFRS 15.

The Group recognizes lease payments from operating leases as rental income on either a straightline basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(16) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

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The useful life of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are recognized in profit or loss when the asset is derecognized.

A summary of the policies applied to the Group's intangible assets is as follows:

	Computer software	Technical skills	Other intangible assets	Patents
Useful life	Finite (1~10 years)	Finite (10 years)	Finite (1~10 years)	Finite (14 years)
Amortization method used	Amortized on a straight-line basis over the estimated useful life	Amortized on a straight-line basis over the estimated useful life	Amortized on a straight-line basis over the estimated useful life	Amortized on a straight-line basis over the estimated useful life
Internally generated or acquired	Acquired	Acquired	Acquired	Acquired

(17) Impairment of non-financial assets

The Group assesses at each reporting period whether there is an indication that an asset in the scope of IAS 36 "Impairment of Assets" may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group completes impairment testing for the CGU to which the individual assets belong. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount of an individual asset or a CGU is the higher of its fair value and its value in use.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or cash-generating unit's recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro-rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(18) Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probably that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provision for warranties

A provision is recognized for expected warranty claims on products sold, based on past experience, management's judgment and other known factors.

(19) Treasury shares

Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. Any difference between the carrying amount and the consideration is recognized in equity.

(20) Revenue recognition

The Group's revenue arising from contracts with customers are primarily related to sale of goods. The accounting policies are explained as follows:

Sales of goods

The Group manufactures and sells goods. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers. The main product of the Group is Power Discrete and revenue is recognized based on the consideration stated in the contract.

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The Group provides its customer with a warranty with the purchase of the products. The warranty provides assurance that the product will operate as expected by the customers. And the warranty is accounted in accordance with IAS 37.

The credit period of the Group’s sale of goods is from 30 to 150 days. For most of the contracts, when the Group transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as trade receivables. The Group usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. For some of the contracts, the Group has transferred the goods to customers but does not have a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. Besides, in accordance with IFRS 9, the Group measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses. However, for some contracts, part of the consideration was received from customers upon signing the contract, and the Group has the obligation to transfers the goods subsequently; accordingly, these amounts are recognized as contract liabilities.

The period between the transfers of contract liabilities to revenue is usually within one year, no significant financing component has arisen.

In contracts between the Group and its customers, the period during which the promised goods are delivered to the customer and the customer paid was not more than one year. Therefore, the Group didn’t adjust the transaction price for the time value of money.

(21) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(22) Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset. When the grant relates to an expense item, it is recognized as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Where the Group receives non-monetary grants, the asset and the grant are recorded gross at nominal amounts and released to the statement of comprehensive income over the expected useful life and pattern of consumption of the benefit of the underlying asset by equal annual installments. Where loans or similar assistance are provided by governments or related institutions with an interest rate below the current applicable market rate, the effect of this favorable interest is regarded as additional government grant.

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(23) Post-employment benefits

All regular employees of the Company and its domestic subsidiaries are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company and its domestic subsidiaries. Therefore, fund assets are not included in the Group’s consolidated financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Company and its domestic subsidiaries will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due. Overseas subsidiaries and branches make contribution to the plan based on the requirements of local regulations.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

(a) the date of the plan amendment or curtailment, and
(b) the date that the Group recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(24) Income tax

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

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The income tax for undistributed earnings of the Company and its domestic subsidiaries is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the shareholders' meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

i. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss
ii. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

i. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
ii. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

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According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12 “Income Taxes”), deferred tax assets and liabilities related to Pillar Two income tax will not be recognized nor disclosed.

(25) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The consideration transferred, the identifiable assets acquired, and liabilities assumed are measured at acquisition date fair value. For each business combination, the acquire measures any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are accounted for as expenses in the periods in which the costs are incurred and are classified under administrative expenses.

When the Group acquires a business, it assesses the assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognized at the acquisition-date fair value. Subsequent changes to the fair value of the contingent consideration, which is deemed to be an asset or liability, will be recognized in accordance with IFRS 9 Financial Instruments either in profit or loss or as a change to other comprehensive income. However, if the contingent consideration is classified as equity, it should not be remeasured until it is finally settled within equity.

Goodwill is initially measured as the amount of the excess of the aggregate of the consideration transferred and the non-controlling interest over the net fair value of the identifiable assets acquired and the liabilities assumed. If this aggregate is lower than the fair value of the net assets acquired, the difference is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each unit or group of units to which the goodwill is so allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purpose and is not larger than an operating segment before aggregation.

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation. Goodwill disposed of in this circumstance is measured based on the relative recoverable amounts of the operation disposed of and the portion of the cash-generating unit retained.

~40~

Significant accounting judgments, estimates and assumptions

The preparation of the Group’s consolidated financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgment

In the process of applying the Group’s accounting policies, the management has made the following judgments, which have the most significant effect on the recognition of amounts in the consolidated financial statements:

Certain properties of the Group comprise a portion that is held to earn rentals or for capital appreciation and another portion that is owner-occupied.

If these portions could be sold separately, the Company accounts for the portions separately as investment properties and property, plant and equipment. If the portions could not be sold separately, the property is classified as investment property in its entirety only if the portion that is owner-occupied is under 5% of the total property.

(2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

(a) Fair value of financial instruments

When the fair value of financial assets and financial liabilities recognized on the balance sheet cannot be obtained from the active market, the fair value will be determined using evaluation techniques, including the income approach (for example the discounted cash flow model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

(b) Impairment of non-financial assets

An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date less incremental costs that would be directly attributable to the disposal of the asset or cash generating unit. The value in use calculation is based on a discounted cash flow model. The cash flows projections are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. The key assumptions used to determine the recoverable amount for the different cash generating units, including a sensitivity analysis, are further explained in Note 6.

~41~

The cost of post-employment benefit and the present value of the pension obligation under defined benefit pension plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate and future salary increases.

(d) Revenue recognition - sales return and discounts

The Group estimates sales returns and discounts based on historical experience and other known reasons, and uses them as a deduction of operating income when the products are sold. The aforementioned estimates of sales returns and discounts are the cumulative revenue recognized in the major turnaround. The amount is highly probable that it will not occur on the basis of the previous withdrawal. Please refer to Note 6 for details.

(e) Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Group of company's domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

(f) Accounts receivables - estimation of impairment loss

The Group estimates the impairment loss of accounts receivables at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that expects to receive (evaluate forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Where the actual future cash flows are lower than expected, a material impairment loss may arise. Please refer to Note 6 for more details.

~42~

(g) Inventories

Estimates of net realizable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices may decline. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Notes 6 for more details.

Description of major accounting subjects

(1) Cash and cash equivalents

	31 Dec. 2025	31 Dec. 2024
Cash on hand	$726	$1,114
Checking, demand deposits and time deposits (Note)	2,128,218	2,360,045
Total	$2,128,944	$2,361,159

(Note): Fixed term deposits are due within 3 months of the contract period and can be converted into fixed cash at any time with minimal risk of value changes.

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

	31 Dec. 2025	31 Dec. 2024
Mandatory measured at fair value through profit or loss:
Funds	$3,211,559	$3,105,892
Stocks	105,652	684
Notes and bills	2,756,411	1,432,705
Convertible bonds	128,461	138,947
Structured Products	555,744	712,741
Derivatives not designated as hedging instruments
Options	821	1,146
Total	$6,758,648	$5,392,115
	31 Dec. 2025	31 Dec. 2024
Current	$6,283,399	$4,552,436
Non-current	475,249	839,679
Total	$6,758,648	$5,392,115

Financial assets at fair value through profit or loss were not pledged.

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

	31 Dec. 2025	31 Dec. 2024
Equity instrument investments measured at fair value through other comprehensive income- non-current:
Listed companies stocks	$74,590	$114,434
Unlisted companies stocks	422,462	364,774
Total	$497,052	$479,208

Financial assets at fair value through other comprehensive income were not pledged.

The Group's dividend income related to equity instrument investments measured at fair value through other comprehensive income for the years ended 31 December 2025 and 2024 are as follow:

	For the years ended 31 December
	2025	2024
Dividend recognized during the period	$7,134	$10,257

In consideration of the Group's investment strategy, the Group disposed, and derecognized partial equity instrument investments measured at fair value through other comprehensive income. Details on derecognition of such investments for the years ended 31 December 2025 and 2024 are as follow:

	For the years ended 31 December
	2025	2024
The fair value of the investments at the date of derecognition	$—	$3,815
The cumulative gain on disposal reclassified from other equity to retained earnings	$—	$432

(4) Financial assets measured at amortized cost - non-current

	31 Dec. 2025	31 Dec. 2024
Financial products	$14,831	$27,499

Financial assets measured at amortized cost were not pledged.

(5) Notes receivables

	31 Dec. 2025	31 Dec. 2024
Notes receivable arising from operating activities	$242,686	$336,224
(Less): loss allowance	—	—
Total	$242,686	$336,224

Notes receivables were not pledged.

The Group follows the requirement of IFRS 9 to assess the impairment. Please refer to Note 6.(21) for more details on loss allowance and Note 12 for details on credit risk management.

(6) Accounts receivable and accounts receivable due from related parties

	31 Dec. 2025	31 Dec. 2024
Accounts receivable	$5,429,826	$5,082,444
(Less): loss allowance	(1,566,144)	(1,615,113)
Subtotal	3,863,682	3,467,331
Accounts receivable due from related parties	20,525	28,546
Total	$3,884,207	$3,495,877

Accounts receivables were not pledged.

Accounts receivables are generally on 30 to 150 day terms. The total carrying amount as of 31 December 2025 and 31 December 2024 were NT$5,450,351 thousand and NT$5,110,990 thousand, respectively. Please refer to Note 6.(21) for more details on loss allowance of accounts receivables for the years ended 31 December 2025 and 2024. Please refer to Note 12 for more details on credit risk management.

(7) Inventories

	31 Dec. 2025	31 Dec. 2024
Raw materials	$897,689	$1,088,226
Work in process	303,670	348,835
Finished goods	1,348,023	1,301,547
Total	$2,549,382	$2,738,608

The cost of inventories recognized in expenses amounted to NT$9,000,956 thousand for the years ended 31 December 2025, including the reversal of write-down of inventories of NT$205,626 thousand. The reversal was primarily due to sale, return to suppliers, and R&D use.

The cost of inventories recognized in expenses amounted to NT$8,939,137 thousand for the years ended 31 December 2024, including the valuation loss of inventories of NT$10,962 thousand for the years ended 31 December 2024.

No inventories were pledged.

(8) Investments accounted for using the equity method

Investees	As at
	31 Dec. 2025		31 Dec. 2024
	Carrying amount	Percentage of ownership (%)	Carrying amount	Percentage of ownership (%)
Investment in associates:
Alltop Technology Co., Ltd.	$1,764,889	17.36%	$1,721,772	17.80%
Zibo Micro Commercial Components Corp.	141,067	18.86%	139,246	18.86%
MILDEX OPTICAL INC.	312,595	28.72%	336,734	29.28%
	$2,218,551		$2,197,752

Information on the material associate of the Group:

Company Name: Alltop Technology Co., Ltd.

Nature of the relationship with the associate: ALLTOP TECHNOLOGY CO., LTD. is in the business of research and development, manufacturing and sale of connectors, primarily for servers, automotive and industrial application. Alltop's future development strategy aligns with the Group's targeted business areas. The Group invests in the company with an aim to integrate the resources of both companies, and expand business areas including servers, laptops, automotive, industrial and networking equipment. This is to create synergies between the two firms and to provide customers with more full-range products and services.

~45~

Fair value of the investment in the associate when there is a quoted market price for the investment: Alltop Technology Co., Ltd. is listed entity on the Taipei Exchange (TPEx). The fair value of the investment in Alltop Technology Co., Ltd. accounted for using the equity method amounted to NT$2,779,894 thousand as of 31 December 2025.

Reconciliation of the associate's summarized financial information presented to the carrying amount of the Group's interest in the associate:

	31 Dec. 2025
Assets	$7,270,064
Liabilities	(3,059,449)
Equities	4,210,615
Proportion of the Group’s ownership	17.36%
Subtotal	730,963
Goodwill	1,029,817
Patents	4,109
Carrying amount of the investment	$1,764,889
	For the years ended 31 December
---	---
	2025
Operating revenue	$3,928,253
Profit from continuing operations	$1,105,692
Other comprehensive income (post-tax)	($41,896)
Total comprehensive income	$1,063,796

The Group's investments in ZIBO MICRO COMMERCIAL COMPONENT CORP. are not individually material. The aggregate carrying amount of the Group's interests in ZIBO MICRO COMMERCIAL COMPONENT CORP. is NT$141,067 thousand and NT$139,246 thousand as at ended 31 December 2025 and 2024. The aggregate financial information of the Group's investments in associates is as follows:

	For the years ended 31 December
	2025	2024
Profit from continuing operations	$3,480	$2,952
Other comprehensive income (post-tax)	—	—
Total comprehensive income	$3,480	$2,952

The Group's investments in MILDEX OPTICAL INC. are not individually material. The aggregate carrying amount of the Group's interests in MILDEX OPTICAL INC. is NT$312,595 thousand and NT$336,734 thousand as at 31 December 2025 and 2024, respectively. The aggregate financial information of the Group's investments in associates is as follows:

	For the years ended 31 December
	2025	2024
Profit from continuing operations	$3,722	$9,119
Other comprehensive income (post-tax)	($16,690)	21,221
Total comprehensive income	($12,968)	$30,340

Fair value of the investment in the associate when there is a quoted market price for the investment: MILDEX OPTICAL INC. is listed entity on the Taipei Exchange (TPEx). The fair value of the investment in MILDEX OPTICAL INC. accounted for using the equity method amounted to NT$547,307 thousand as of 31 December 2025.

The associates had no contingent liabilities or capital commitments, and no pledges as at 31 December 2025 and 2024.

(9) Property, Plant, and Equipment

	31 Dec. 2025	31 Dec. 2024
Owner occupied property, plant and equipment	$6,766,174	$7,231,040
Property, plant and equipment leased out under operating leases	90,165	91,384
Total	$6,856,339	$7,322,424

~47~

I. Owner occupied property, plant and equipment

	Land	Buildings	Machinery and equipment	Transportation equipment	Utilities equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress and equipment awaiting examination	Total
Cost:
As at 1 Jan. 2025	$581,292	$2,313,093	$11,939,049	$20,071	$177,631	$154,657	$71,794	$1,822,094	$74,530	$17,154,211
Additions	—	32,411	120,555	2,092	—	17,629	1,847	80,695	67,706	322,935
Disposals	—	(35,198)	(364,710)	(1,311)	(155)	(1,716)	—	(14,750)	—	(417,840)
Transfers	—	18,285	158,022	—	—	(2)	—	12,676	(76,451)	112,530
Exchange differences	(102)	3,374	13,026	95	—	41	5,261	2,637	(430)	23,902
As at 31 Dec. 2025	$581,190	$2,331,965	$11,865,942	$20,947	$177,476	$170,609	$78,902	$1,903,352	$65,355	$17,195,738
Depreciation and impairment:
As at 1 Jan. 2025	$—	($882,785)	($7,355,930)	($16,258)	($161,430)	($121,461)	($49,697)	($1,335,610)	$—	($9,923,171)
Depreciation	—	(79,172)	(631,666)	(1,665)	(3,915)	(15,146)	(4,304)	(120,544)	—	(856,412)
Disposals	—	34,990	358,433	1,236	155	1,740	—	11,494	—	408,048
Impairment losses (reversal)	—	—	10,562	—	—	—	—	(7,073)	—	3,489
Transfers	—	(3,315)	(35,489)	—	—	(41)	—	(1,140)	—	(39,985)
Exchange differences	—	(2,238)	(12,720)	(59)	—	(254)	(3,703)	(2,559)	—	(21,533)
As at 31 Dec. 2025	$—	($932,520)	($7,666,810)	($16,746)	($165,190)	($135,162)	($57,704)	($1,455,432)	$—	($10,429,564)
Net carrying amount:
As at 31 Dec. 2025	$581,190	$1,399,445	$4,199,132	$4,201	$12,286	$35,447	$21,198	$447,920	$65,355	$6,766,174

~48~

	Land	Buildings	Machinery and equipment	Transportation equipment	Utilities equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress and equipment awaiting examination	Total
Cost:
As at 1 Jan. 2024	$581,622	$1,725,147	$10,189,298	$19,086	$187,316	$152,785	$70,363	$1,682,474	$2,291,065	$16,899,156
Additions	—	35,862	129,942	941	1,913	9,119	911	65,841	51,665	296,194
Disposals	—	—	(240,058)	(384)	(11,598)	(11,866)	—	(43,656)	—	(307,562)
Transfers	—	525,151	1,751,595	—	—	2,633	—	99,417	(2,269,101)	109,695
Exchange differences	(330)	26,933	108,272	428	—	1,986	520	18,018	901	156,728
As at 31 Dec. 2024	$581,292	$2,313,093	$11,939,049	$20,071	$177,631	$154,657	$71,794	$1,822,094	$74,530	$17,154,211
Depreciation and impairment:
As at 1 Jan. 2024	$—	($786,589)	($6,777,701)	($14,674)	($168,867)	($115,088)	($46,139)	($1,254,019)	$—	($9,163,077)
Depreciation	—	(79,415)	(675,827)	(1,632)	(3,995)	(14,222)	(3,281)	(111,263)	—	(889,635)
Disposals	—	—	201,136	384	11,598	9,459	—	45,915	—	268,492
Impairment losses (reversal)	—	—	(45,362)	—	—	—	—	—	—	(45,362)
Transfers	—	(154)	(6,153)	—	(166)	—	—	(1,580)	—	(8,053)
Exchange differences	—	(16,627)	(52,023)	(336)	—	(1,610)	(277)	(14,663)	—	(85,536)
As at 31 Dec. 2024	$—	($882,785)	($7,355,930)	($16,258)	($161,430)	($121,461)	($49,697)	($1,335,610)	$—	($9,923,171)
Net carrying amount:
As at 31 Dec. 2024	$581,292	$1,430,308	$4,583,119	$3,813	$16,201	$33,196	$22,097	$486,484	$74,530	$7,231,040

II. Property, plant and equipment leased out under operating leases

	Land	Buildings	Total
Cost:
As at 1 Jan. 2025	$50,515	$51,280	$101,795
Transfers	—	—	—
As at 31 Dec. 2025	$50,515	$51,280	$101,795
Depreciation and impairment:
As at 1 Jan. 2025	$—	($10,411)	($10,411)
Depreciation	—	(1,219)	(1,219)
Transfers	—	—	—
As at 31 Dec. 2025	$—	($11,630)	($11,630)
Cost:
As at 1 Jan. 2024	$50,515	$22,553	$73,068
Transfers	—	28,727	28,727
As at 31 Dec. 2024	$50,515	$51,280	$101,795
Depreciation and impairment:
As at 1 Jan. 2024	$—	($7,995)	($7,995)
Depreciation	—	(644)	(644)
Transfers	—	(1,772)	(1,772)
As at 31 Dec. 2024	$—	($10,411)	($10,411)
Net carrying amount:
As at 31 Dec. 2025	$50,515	$39,650	$90,165
As at 31 Dec. 2024	$50,515	$40,869	$91,384

Capitalized borrowing costs of construction in progress for the years ended 31 December 2025 and 2024 are both $0.

There are no property, plant and equipment under pledge.

~50~

(10) Intangible assets

	Computer software	Technical skills	Other intangible assets	Goodwill	Patents	Total
Cost:
As at 1 Jan. 2025	$137,635	$452	$183,082	$1,987,107	$61,927	$2,370,203
Additions – acquired separately	12,259	2,473	5,635	—	—	20,367
Disposals	(5,542)	—	(36,922)	—	—	(42,464)
Transfers	861	—	36,922	—	—	37,783
Exchange differences	(177)	172	10,120	(23,104)	—	(12,989)
As at 31 Dec. 2025	$145,036	$3,097	$198,837	$1,964,003	$61,927	$2,372,900
As at 1 Jan. 2024	$135,704	$437	$182,863	$1,950,260	$61,927	$2,331,191
Additions – acquired separately	13,709	—	1,319	—	—	15,028
Disposals	(12,609)	—	(3,000)	—	—	(15,609)
Transfers	(61)	—	—	—	—	(61)
Exchange differences	892	15	1,900	36,847	—	39,654
As at 31 Dec. 2024	$137,635	$452	$183,082	$1,987,107	$61,927	$2,370,203
Amortization and impairment:
As at 1 Jan. 2025	($106,847)	($410)	($120,534)	($489,405)	($12,195)	($729,391)
Amortization	(13,834)	(147)	(14,459)	—	(3,655)	(32,095)
Disposals	5,542	—	36,922	—	—	42,464
Transfers	(8)	—	(36,922)	—	—	(36,930)
Exchange differences	184	(6)	(6,055)	20,227	—	14,350
As at 31 Dec. 2025	($114,963)	($563)	($141,048)	($469,178)	($15,850)	($741,602)
As at 1 Jan. 2024	($104,619)	($250)	($109,399)	($458,355)	($9,099)	($681,722)
Amortization	(14,004)	(150)	(12,825)	—	(3,096)	(30,075)
Disposals	12,609	—	3,000	—	—	15,609
Transfers	61	—	—	—	—	61
Exchange differences	(894)	(10)	(1,310)	(31,050)	—	(33,264)
As at 31 Dec. 2024	($106,847)	($410)	($120,534)	($489,405)	($12,195)	($729,391)
Net Carrying Value:
As at 31 Dec. 2025	$30,073	$2,534	$57,789	$1,494,825	$46,077	$1,631,298
As at 31 Dec. 2024	$30,788	$42	$62,548	$1,497,702	$49,732	$1,640,812

~51~

Amortization expense of intangible assets under the statement of comprehensive income:

	For the years ended 31 December
	2025	2024
Operating cost	$4,308	$6,458
Operating expenses	$27,787	$23,617

(11) Impairment test on goodwill

Goodwill acquired through business combinations have been allocated to two cash-generating units, which are also reportable and operating segments, for impairment testing as follows:

(a) Power Discrete;
(b) Power IC and Components.

Carrying amount of goodwill allocated to each of the cash-generating units:

	31 Dec. 2025	31 Dec. 2024
Power Discrete	$109,345	$112,222
Power IC and components	1,385,480	1,385,480
Goodwill	$1,494,825	$1,497,702

Power Discrete

The impairment testing of goodwill was conducted for the cash-generating unit of Power Discrete on 31 December 2025. This recoverable amount is $2,359,611 thousand, which has been determined based on a value in use calculation using cash flow projections from five-year financial budgets approved by management. The projected cash flows have been updated to reflect the change in demand for products. The pre-tax discount rate applied to cash flow projections was between 11.74% and 13.38%, and the growth rate was the same as the long-term average growth rate for the industry. Based on the result of this analysis, management did not identify an impairment of goodwill which was allocated to this cash-generating unit.

Power IC and Components

The impairment testing of goodwill was conducted for the cash-generating unit of Power IC and components on 31 December 2025. This recoverable amount is $2,790,859 thousand, which has been determined based on a value in use calculation using cash flow projections from five-year financial budgets approved by management. The projected cash flows have been updated to reflect the change in demand for products. The pre-tax discount rate applied to cash flow projections was 12.35%, and the growth rate was the same as the long-term average growth rate for the industry. Based on the result of this analysis, management did not identify an impairment of goodwill which was allocated to this cash-generating unit.

Key assumptions used in value-in-use calculations

Gross margins – Gross margins are based on operating results and further average values achieved in the years preceding the start of the budget period.

Discount rates – Discount rates reflect the current market assessment of the risks specific to each cash generating unit (including the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted). The discount rate was estimated based on the weighted average cost of capital (WACC) for the Group, taking into account the particular situations of the Group and its operating segments. The WACC includes both the cost of liabilities and cost of equities. The cost of equities is derived from the expected returns of the Group’s investors on capital, where the cost of liabilities is measured by the interest bearing loans that the Group has obligation to settle. Specific risk relating to the operating segments is accounted for by considering the individual beta factor which is evaluated annually and based on publicly available market information.

Growth rate estimation – based on published industry research data.

Sensitivity to changes in assumptions

With regard to the assessment of value-in-use of the diodes, management believes that no reasonably possible change in any of the above key assumptions would cause the carrying value of the unit to materially exceed its recoverable amount.

(12) Current borrowings

Details of the current borrowings are as follows:

	31 Dec. 2025	31 Dec. 2024
Unsecured bank loans	$2,903,194	$2,996,916
Rate range	0.90%~4.63%	1.34%~5.08%
Due date	2026.01.02~2026.11.25	2025.01.03~2026.12.10

The Group’s unused short-term lines of credits amount to NT$10,078,679 thousand and NT$12,464,645 thousand, as at 31 December 2025 and 2024, respectively.

(13) Notes payable - current

	31 Dec. 2025	31 Dec. 2024
Notes payable arising from operating—activities	$377,165	$387,991

(14) Financial liabilities at fair value through profit or loss

	31 Dec. 2025	31 Dec.2024
Held for trading:
Derivatives not designated as hedging Instruments
Forward exchange agreement and cross currency swap contracts	$3,770	$3,411
Measured at fair value through profit or loss:
Embedded derivative financial instruments
Corporate bond conversion	6,513	13,763
Total	$10,283	$17,174
Current	$3,770	$3,411
Non-current	6,513	13,763
Total	$10,283	$17,174

(15) Long-term deferred revenue

	For the years ended 31 December
	2025	2024
Beginning balance	$51,459	$61,566
Addition	—	—
Recognized to the statement of comprehensive income	5,935	(11,694)
Reclassification	—	—
Exchange differences	67	1,587
Ending balance	$57,461	$51,459
	31 Dec. 2025	31 Dec. 2024
Non-current deferred revenue - related to assets	$57,461	$51,459

Government grants have been received for the purchase of certain items of property, plant and equipment and land use right. There are no unfulfilled conditions or contingencies attached to these grants recognized to the statement of comprehensive income.

(16) Bonds payable

	31 Dec. 2025	31 Dec. 2024
Domestic unsecured convertible bonds payable	$452,806	$441,245
Less: Current portion due within one year	—	—
Net	$452,806	$441,245

Domestic unsecured convertible bonds payable

	31 Dec. 2025	31 Dec. 2024
Debt elements:
Face value of domestic convertible bonds payable	$500,000	$500,000
Discounts on domestic convertible corporate bonds payable	(47,194)	(58,755)
Subtotals	452,806	441,245
Less: Current portion due within one year	—	—
Net	$452,806	$441,245
Embedded derivative financial instruments	$6,513	$13,763
Equity elements	$52,044	$52,044

The subsidiary Champion Microelectronic Corp. issued domestic unsecured convertible corporate bonds with a coupon rate of 0% on November 1, 2024. The convertible corporate bonds were analyzed in accordance with the terms of the contract. The components include: main debt, embedded derivative financial instruments (the issuer's redeemable option and the holder's option to request the issuer to redeem) and equity elements (the holder's option to request conversion into the issuer's common stock). The main issuance terms are as follows:

Total issuance amount: NT$500,000 thousand

Period: November 1, 2024 to November 1, 2029

Redemption and put option clauses:

i. From the day after three months of issuance to forty days before the expiration of the issuance period, the subsidiary Champion Microelectronic Corp. shall be notified to redeem all or part of the bonds in advance at the face value of the bonds (hereinafter referred to as the "early redemption price") when the closing price of the company's common shares on the Taiwan Stock Exchange reaches an average of 130% of the conversion price for thirty consecutive business days.

ii. When the outstanding amount of the converted corporate bonds is less than 10% of the original issuance amount, the subsidiary Champion Microelectronic Corp. may redeem the converted corporate bonds in full at the early redemption price.

iii. Bond holders may request the subsidiary Champion Microelectronic to redeem all or part of the converted corporate bonds held at 101.51% and 102.02% of the face value of the bonds on November 1, 2027 and November 1, 2028, respectively.

Terms of Exchange:

i. Conversion target: common shares of the subsidiary Champion Microelectronic Corp.

ii. Conversion period: The bondholders may request to convert the bonds into the common shares of Champion Microelectronic Corp. in lieu of its cash repayment from February 02, 2025 to November 01, 2029.

iii. Conversion price and adjustment: The conversion price was set at NT$75 per share at the time of issuance, and will be adjusted in accordance with the formula set forth in the terms of the issuance in the event that the conversion price is adjusted in accordance with the terms of the issuance for the shares of common stock of Champion Microelectronic Corp. The conversion price on December 31, 2025 was NT$72.2 per share.

iv. Redemption on maturity: The convertible bonds will be redeemed at face value if they are outstanding at maturity.

As of December 31, 2025, the converted corporate bonds have not been converted.

(17) Long-term borrowings

Details of the long-term borrowings are as follows:

Lenders	31 Dec. 2025	31 Dec. 2024
Syndicated Loans (A)(Note)	$3,000,000	$2,550,000
Syndicated Loans (B)	314,300	34,140
Project loans (C)	131,771	286,542
Project loans (D)	392,485	756,250
Project loans (E)	243,208	546,875
Project loans (F)	18,333	38,333
Unsecured bank loans	1,496,386	1,515,560
Subtotal	5,596,483	5,727,700
(Less): Due within one year	(750,544)	(767,870)
(Less): Unamortized cost of syndicated loan	(5,333)	(656)
(Less): Deferred government grants	(1,487)	(7,215)
Total	$4,839,119	$4,951,959
Rate range	1.53%~4.91%	1.53%~5.14%

(Note): The loans (A) represent a syndicated loan entered into in 2021 with Land Bank of Taiwan and ten other banking institutions, for which a new agreement was executed in July 2025.

(A) On 3 July 2025, the Company entered into a syndicated loan contract with 10 financial institutions including Land Bank of Taiwan and the amount of the loan facility was NT$4,000,000 thousand for a period of five years starting from the first day the facility is drawn. The facility must be drawn within three months from the execution date of the contract, otherwise the maturity of the said three-month period shall be deemed the first drawdown day. The extract of terms of the contract as following:

~56~

a. The total amount of the syndicated loan is NT$4,000,000 thousand.

b. Terms of the syndicated loan agreement:
i. Category 1: Medium-term loan up to $4,000,000 thousand, which can be used cyclically in accordance with this contract.
ii. Category 2: Commercial paper of $2,400,000 thousand, which can be used cyclically in accordance with this contract.

c. The total amount of category 1 and category 2 shall not exceed the total amount of the syndicated loan.

d. Terms of financial ratios: Within the contract period, the Company is required to calculate annually the financial ratios and agree with assigned threshold based on the figures from audited consolidated financial report.
i. Current ratio (current assets / current liabilities): higher than 100%.
ii. Debt ratio (liability / equity): lower than 200%.
iii. Interest coverage ratio [ ( net profit before tax + interest expense + depreciation + amortization ) / interest expense ]: higher than 2.5 times.
iv. Equity: higher than NT$10,000,000 thousand or equivalent in USD (inclusive) or above.

(B) On 16 June 2022, the subsidiary, PAN-JIT ASIA INTERNATIONAL INC., entered into a syndicated loan contract with 11 financial institutions including First Commercial Bank and the amount of the loan facility was US$80,000 thousand for a period of five years starting from the first day the facility is drawn. The facility must be drawn within three months from the execution date of the contract, otherwise the maturity of the said three-month period shall be deemed the first drawdown day. The extract of terms of the contract are as followings:

a. Terms of the syndicated loan agreement:
The line of credit of the medium-term loan is US $80,000 thousand, which can be used as a revolving loan within the credit period.

b. Terms of financial ratios: Within the contract period, the Company should annually calculate the financial ratios and agree with the assigned figures based on the data from audited consolidated financial report.
i. Current ratio (current assets / current liabilities): higher than 100%.
ii. Debt ratio (liability / equity): lower than 200%.
iii. Interest coverage ratio [ ( net profit before tax + interest expense + depreciation + amortization ) / interest expense ]: higher than 2.5 times.
iv. Equity: higher than NT$5,300,000 thousand.

Certain other non-current assets are pledged as first priority security for the secured syndicated loans, please refer to Notes 8 for more details.

~57~

(C) On 9 September 2019, the Company entered into a credit agreement with Taishin International Bank in the amount of NT$600,000 thousand for the investment program for Welcome Overseas Taiwanese Businesses to return to invest in Taiwan.

The related terms are as following:

Credit line	Credit period	Interest rate	Repayment method
$400,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.525%.	Three-year grace period. After the grace period expires, the principal shall be paid back in monthly equal installments.
$200,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.525%.	Three-year grace period. After the grace period expires, the principal shall be paid back in monthly equal installments.

(D) On 25 October 2019, the Company entered into a credit agreement with Chang HWA Bank in the amount of NT$900,000 thousand for the investment program for Welcome Overseas Taiwanese Businesses to return to invest in Taiwan.

The related terms are as following:

Credit line	Credit period	Interest rate	Repayment method
$600,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.525%.	Three-year grace period. After the grace period expires, the principal shall be paid back in monthly equal installments.
$300,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.525%.	Three-year grace period. After the grace period expires, the principal shall be paid back in monthly equal installments.

(E) On 1 November 2019, the Company entered into a credit agreement with First Commercial Bank in the amount of NT$1,500,000 thousand for the investment program for Welcome Overseas Taiwanese Businesses to return to invest in Taiwan.

The related terms are as following:

Credit Line	Credit period	Interest rate	Repayment method
$1,000,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.725%.	Three-year grace period. After the grace period expires, the principal shall be paid back in monthly equal installments.
$500,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.525%.	Three-year grace period. After the grace period expires, the principal shall be paid back in monthly equal installments.

(F) On 21 November 2021, the Company entered into a credit agreement with Land Bank of Taiwan in the amount of NT$1,000,000 thousand for the investment program for Welcome Overseas Taiwanese Businesses to return to invest in Taiwan.

The related terms are as following:

Credit Line	Credit period	Interest rate	Repayment method
$700,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.725%.	Sole interests will be paid per month in the first two years. The principal shall be paid back in monthly equal installments, from the third year, and interest calculated based on the amount of principal monthly.
$300,000	Seven years from the date of first drawdown	In accordance with the two-year term deposit interest rate of Chunghwa Post Co., Ltd. plus/minus, and the actual interest rate shall not be lower than 1.725%.	Sole interests will be paid per month in the first two years. The principal shall be paid back in monthly equal installments, from the third year, and interest calculated based on the amount of principal monthly.

(18) Post-employment benefits

Defined contribution plan

The Company and its domestic subsidiaries adopt a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company and its domestic subsidiaries will make monthly contributions of no less than 6% of the employees' monthly wages to the employees' individual pension accounts. The Company and its domestic subsidiaries have made monthly contributions of 6% of each individual employee's salaries or wages to employees' pension accounts.

Subsidiaries located in the People's Republic of China will contribute a certain percentage of employees' salaries or wages as national pension insurance to the employees' individual pension accounts in accordance with local regulations.

Pension benefits for employees of overseas subsidiaries and branches are provided in accordance with the local regulations.

Expenses under the defined contribution plan for the years ended 31 December 2025 and 2024 were NT$57,884 thousand and NT$57,000 thousand, respectively.

Defined benefit plan

The Company and its domestic subsidiaries adopt a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company and its domestic subsidiaries contribute an amount equivalent to 2% of the employees' total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandate, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without overexposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Group expects to contribute NT$2,054 thousand to its defined benefit plan during the 12 months beginning after 31 December 2025.

The average duration of the defined benefits plan obligation as at 31 December 2025 and 2024, are 10 to 14 and 10 to 15 years, respectively.

The defined benefit plan costs recognized in profit or loss as follows:

	For the years ended December 31
	2025	2024
Current period service costs	$350	$657
Net interest on the net defined benefit liabilities(assets)	1,008	793
Total	$1,358	$1,450

Changes in the defined benefit obligation and fair value of plan assets are as follows:

	31 Dec. 2025	31 Dec. 2024	1 Jan. 2024
Defined benefit obligation	$196,175	$193,660	$166,978
Plan assets at fair value	(133,034)	(132,625)	(100,399)
Other non-current liabilities –Defined benefit liabilities recognized	$63,141	$61,035	$66,579

Reconciliation of liability (asset) of the defined benefit plan is as follows:

	Defined benefit obligation	Plan assets at fair value	Net defined benefit liabilities (assets)
As at 1 Jan. 2024	$166,978	($100,399)	$66,579
Current period service costs	657	—	657
Net interest expense (income)	2,008	(1,215)	793
Past service cost and gains and losses arising from settlements	—	—	—
Subtotal	169,643	(101,614)	68,029
Remeasurements of the defined liabilities/asset:
Actuarial gains and losses arising from changes in demographic assumptions	1,733	—	1,733
Actuarial gains and losses arising from changes in financial assumptions	20,840	—	20,840
Experience adjustments	4,824	—	4,824
Remeasurements of the defined benefit asset	—	(8,764)	(8,764)
Subtotal	27,397	(8,764)	18,633
Benefit paid	(3,380)	3,380	—
Contributions by employer	—	(25,627)	(25,627)
Exchange differences	—	—	—
As at 31 Dec. 2024	$193,660	($132,625)	$61,035
Current period service costs	350	—	350
Net interest expense (income)	3,203	(2,195)	1,008
Past service cost and gains and losses arising from settlements	—	—	—
Subtotal	197,213	(134,820)	62,393
Remeasurements of the defined liabilities/asset:
Actuarial gains and losses arising from changes in demographic assumptions	2	—	2
Actuarial gains and losses arising from changes in financial assumptions	5,009	—	5,009
Experience adjustments	6,659	—	6,659
Remeasurements of the defined benefit asset	—	(8,797)	(8,797)
Subtotal	11,670	(8,797)	2,873
Benefit paid	(12,708)	12,708	—
Contributions by employer	—	(2,125)	(2,125)
Exchange differences	—	—	—
As at 31 Dec. 2025	$196,175	($133,034)	$63,141

~61~

The following principal assumptions used in determining the Company's and its domestic subsidiaries' defined benefit plan were as below:

	31 Dec. 2025	31 Dec. 2024
Discount rate	1.41%~1.45%	1.65%~1.68%
Expected rate of salary increases	3.00%~5.00%	3.00%~5.00%

The sensitive analysis of each major actuarial assumption:

	Effect on the defined benefit obligation
	2025		2024
	Increase defined benefit obligation	Decrease defined benefit obligation	Increase defined benefit obligation	Decrease defined benefit obligation
Discount rate increase by 0.5%	$—	$10,318	$—	$10,066
Discount rate decrease by 0.5%	$11,196	$—	$10,920	$—
Future salary increase by 0.5%	$10,911	$—	$10,666	$—
Future salary decrease by 0.5%	$—	$10,170	$—	$9,943

The sensitivity analyses above are based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analyses compared to the previous period.

(19) Equities

A. Common stock

As at 31 December 2025 and 2024, the Company's authorized capital were $6,000,000 thousand, and issued capital were $3,821,149 thousand, each at a par value of NT$10. Each share has one voting right and a right to receive dividends.

On 25 October 2021, the Company issued 50,000 thousand units of Global Depository Shares ("GDS") on the Luxembourg Stock Exchange, each representing a unit of ordinary shares of the Company. And totals in new issuance of 50,000 thousand common stock shares, each unit of GDS was priced at USD3.02, equivalent to NT$84.5. Totals shares amounted to USD151,000 thousand. The rights and obligations of the new shares issued are the same as the original shares. As of December 31, 2025, there were no outstanding shares.

B. Capital surplus

Items	As at
	31 Dec. 2025	31 Dec. 2024
Additional paid-in capital	$4,603,539	$4,603,539
Premium on convertible bonds	1,082,212	1,082,212
Difference between consideration given/received and carrying amount of interests in subsidiaries acquired through of disposed	73,031	73,002
Increase through changes in ownership interests in subsidiaries	8,564	19,109
Share of changes in net assets of associates accounted and joint ventures for using the equity method	256,301	181,920
Employee stock option	24,527	24,527
Restricted stocks for employees	694	694
Others	87,156	87,156
Total	$6,136,024	$6,072,159

According to the Company Act, the capital reserve shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Earnings distribution and dividend policy

According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

a. Payment of all taxes and dues
b. Offset prior years' operation losses
c. Set aside 10% of the remaining amount after deducting items (a) and (b) as legal reserve
d. Set aside or reverse special reserve in accordance with law and regulations
e. The distribution of the remaining, in addition to the unappropriated earnings at the beginning of the period, the Company shall distribute it according to the distribution plan proposed by the Board of Directors and submitted to the shareholders' meeting for approval.

According to the provision of Article 240-5 of the Company Act, the Company should authorize the distributable dividends and bonuses in whole or in part are paid in cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution is submitted to the shareholders' meeting.

On June 13, 2024, the shareholders' meeting resolved to amend the Company's Articles of Incorporation to specify the dividend policy. The revised dividend policy is as follows:

The policy of dividend distribution approved by the Board should reflect factors such as the operating planning, investment plan, capital budgets, the changes of inner and outer environment. The Company in capital-intensive industries are currently in the stage of expansion. Considering the Company's need for future capital and the long-term financial planning; as well as the shareholders' need for cash inflow, the principle of earning distribution:

If there is any surplus in the annual, no less than 10% of the distributable earnings should be set aside for distribution to the shareholders as dividends and bonuses; provided that, if the cumulative retained earnings available for distribution is less than 10% of the paid-in capital, it may not be distributed. The dividend to shareholders should be paid in the form of cash as priority, or in the form of share dividend. Additionally, at least 10% of the dividends must be paid in the form of cash.

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total authorized capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

According to the provision of Article 241 of the Company Act, the Company shall distribute the whole or a part of the statutory surplus reserve and capital surplus to shareholders in new shares or cash according to their shareholding percentage. When cash is distributed, a resolution adopted by a majority of the shareholders present who represent two-thirds or more of the total number of its outstanding shares of the company shall be required and reported to the shareholders meeting. When new shares are issued, it shall be submitted to the shareholders' meeting for approval before distribution.

When the Company distributing distributable earnings, it shall set aside to special reserve, 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 for the adoption of IFRS, 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 from the special reserve.

The FSC on 31 March 2021 issued Order No. Financial-Supervisory-Securities-Corporate-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders' equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent use, disposal or reclassification of related assets, the Company can reverse the special reserve by the proportion of the special reserve first appropriated and distribute it.

~64~

The special reserve upon first adoption amounted to $200,400 thousand as of 1 January 2025 and 2024. Because of unused, disposal or reclassification of related assets, there was no reversal from special reserve to unappropriated earnings during the years ended of 31 December 2025 and 2024. As of 31 December 2025 and 2024, the special reverse upon first adoption amounted to $200,400 thousand.

Details of the 2025 and 2024 earnings distribution and dividends per share as resolved by shareholders' and meeting on 10 March 2026 and 20 June 2025, respectively, are as follows:

	Appropriation of earnings		Dividend per share (NT$)
	2024	2023	2024	2023
Legal reserve	$118,830	$89,996	$ —	$ —
Common stock -cash dividend (Note)	$687,807	$534,961	$1.80	$1.40

(Note): The Company resolved at the board of directors' meeting held on 10 March 2026 and 7 March 2025 to distribute the dividends of 2025 and 2024 in form of cash.

Please refer to Note 6.(23) for details on employees' compensation and remuneration to directors.

D. Non-controlling interests

	For the years ended December 31
	2025	2024
Beginning balance	$1,396,730	$1,385,941
Profit (loss) attributable to non-controlling interests	198,785	158,881
Other comprehensive income, attributable to non-controlling interests, net of tax:
Exchange differences resulting from translating the financial statements of a foreign operation	(11,056)	16,700
Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income	(52)	(865)
Remeasurements of the defined benefit Plan	20	(265)
Difference between consideration given/received and carrying amount of interests in subsidiaries acquired through of disposed	(155)	16,603
Adjustments arising from changes in ownerships in subsidiaries	10,545	33,391
Changes in non-controlling interests	(11,409)	—
Acquisition of issued shares of subsidiaries	—	(33,282)
Failure to subscribe for new shares issued by a subsidiary in proportion to its shareholding in the subsidiary's capital increase.	19,600	18,000
Cash dividends from subsidiaries	(148,230)	(198,374)
Changes in associates and joint ventures accounted for using the equity method	2	—
Ending balance	$1,454,780	$1,396,730

(20) Operating revenue

Revenue from contracts with customers

	For the years ended 31 December
	2025	2024
Sales of goods	$13,088,412	$12,530,969
Other operating revenue	5,504	5,243
Total	$13,093,916	$12,536,212

Analysis of revenue from contracts with customers during the years ended 31 December 2025 and 2024 are as follows:

(a) Disaggregation of revenue

For the year ended 31 December 2025:

	Power Discrete	Power IC and components	Solar	Total
Sales of goods	$11,839,813	$1,054,373	$199,730	$13,093,916

For the year ended 31 December 2024:

	Power Discrete	Power IC and components	Solar	Total
Sales of goods	$11,507,005	$815,999	$213,208	$12,536,212

Sales of goods amounted to NT$13,088,412 thousand and NT$12,530,969 thousand for the years ended 31 December 2025 and 2024, respectively, which were recognized as revenue at a certain point in time.

(b) Contract balances

Contract liabilities – current

	For the years ended 31 December
	2025	2024
Sales of goods	$3,537	$6,058

The changes in the balance annual contract liabilities of the Group in 2025 and 2024 were due to the fact that some of the performance obligations have been satisfied to be reclassified to increase in revenue or increase in advance receipts.

(21) Expected credit impairment gains (losses)

	For the years ended 31 December
	2025	2024
Operating expenses - expected credit impairment (losses)
Accounts receivable	($13,978)	($6,899)
Non-operating income and expenses - Expected credit impairment (losses)
Other receivables	—	—
Total	($13,978)	($6,899)

Please refer to Note 12 for more details on credit risk management.

The Group measures the loss allowance of its receivables (including notes receivables, accounts receivables and accounts receivable due from related parties) at an amount equal to lifetime expected credit losses. The assessment of the Group's loss allowance as at 31 December 2025 and 2024 are as follows:

The Group considers the grouping of accounts receivables by counter parties' credit rating, by geographical region and by industry sector, and its loss allowance is measure by using a provision matrix, details as follows:

As at 31 Dec. 2025

| | 1-90 days
(Note) | 91-180 days | 181-270 days | 271-360 days | Over 361 days | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Gross carrying amount | $3,688,783 | $412,929 | $70,216 | $5,443 | $1,515,666 | $5,693,037 |
| Loss rate | — | 8.16% | 20.00% | 50.01% | 100.00% | |
| Lifetime expected credit losses | — | (33,713) | (14,043) | (2,722) | (1,515,666) | (1,566,144) |
| Total | $3,688,783 | $379,216 | $56,173 | $2,721 | $— | $4,126,893 |

As at 31 Dec. 2024

| | 1-90 days
(Note) | 91-180 days | 181-270 days | 271-360 days | Over 361 days | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Gross carrying amount | $3,489,214 | $357,979 | $23,973 | $4,442 | $1,571,606 | $5,447,214 |
| Loss rate | — | 10.19% | 20.00% | 50.00% | 100.00% | |
| Lifetime expected credit losses | — | (36,491) | (4,795) | (2,221) | (1,571,606) | (1,615,113) |
| Subtotal | $3,489,214 | $321,488 | $19,178 | $2,221 | $— | $3,832,101 |

(Note): The Group's note receivables are not overdue.

Changes to the Group's allowance loss for accounts receivable and other receivables for the years ended 31 December 2025 and 2024 are as follows:

	Accounts receivable	Other receivables
As at 1 Jan. 2025	$1,615,113	$27,096
Additional/(reversal) for the current period	13,978	—
Write off	(491)	—
Effect of changes in exchange rate	(62,456)	109
As at 31 Dec. 2025	$1,566,144	$27,205
As at 1 Jan. 2024	$1,509,601	$26,182
Additional/(reversal) for the current period	6,899	—
Effect of changes in exchange rate	98,613	914
As at 31 Dec. 2024	$1,615,113	$27,096

(22) Lease

A. Group as a lessee

The Group leases various properties, including real estate such as land and buildings, transportation equipment and other equipment. The lease terms range from 2 to 50 years.

The Group’s leases effect on the financial position, financial performance and cash flows are as follow:

A. Amount recognized in the balance sheet

(a) Right-of-use assets

Carrying amount of right-of-use assets

	31 Dec. 2025	31 Dec. 2024
Land	$76,411	$78,237
Buildings	146,687	180,227
Transportation equipment	1,813	912
Other equipment	878,086	884,378
Total	$1,102,997	$1,143,754

(b) Lease liabilities

	31 Dec. 2025	31 Dec. 2024
Current	$53,638	$57,660
Non-current	213,091	249,683
Total	$266,729	$307,343

Please refer to Note 6.(24)(d) for the interest on lease liabilities recognized during the years ended 31 December 2025 and 2024 and refer to Note 12.(5) Liquidity Risk Management for the maturity analysis for lease liabilities as of 31 December 2025 and 2024.

B. Amounts recognized in the statement of profit or loss

Depreciation charge for right-of-use assets

	For the years ended 31 December
	2025	2024
Land	$3,269	$3,270
Buildings	41,744	41,440
Transportation equipment	1,598	1,156
Other equipment	74,534	73,516
Total	$121,145	$119,382

C. Income and costs relating to leasing activities

	For the years ended 31 December
	2025	2024
The expenses relating to short-term leases	$14,978	$15,155
The expenses relating to leases of low-value assets
(Not including the expenses relating to short-term leases of low-value assets)	$513	$356
The expenses relating to variable lease payments not included in the measurement of lease liabilities	$41	$16
Income from subleasing right-of- use assets	$2,475	$2,183

D. Cash outflow relating to leasing activities

During the years ended 31 December 2025 and 2024, the Group's total cash outflows for leases amounting to NT$88,060 thousand and NT$88,891 thousand, respectively.

E. Other information related to leasing activities

Extension and termination options

Some of the Group's property rental agreement contain extension and termination options. In determining the lease terms, the non-cancellable period for which the Group has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option. These options are used to maximize operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Group. After the commencement date, the Group reassesses the lease term upon the occurrence of a significant event or a significant change in circumstances that is within the control of the lessee and affects whether the Group is reasonably certain to exercise an option not previously included in its determination of the lease term, or not to exercise an option previously included in its determination of the lease term.

(23) Summary statement of employee benefits, depreciation and amortization expenses by function:

| Function
Nature | For the year ended 31 December 2025 | | | For the year ended 31 December 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating costs | Operating expenses | Total | Operating costs | Operating expenses | Total |
| Employee benefit expense | | | | | | |
| Salaries | $1,049,395 | $1,461,600 | $2,510,995 | $1,040,181 | $1,246,271 | $2,286,452 |
| Labor and health insurance | $162,239 | $110,671 | $272,910 | $148,914 | $102,657 | $251,571 |
| Pension | $29,124 | $30,118 | $59,242 | $29,678 | $28,772 | $58,450 |
| Other employee benefit expenses | $79,444 | $48,235 | $127,679 | $80,404 | $50,585 | $130,989 |
| Depreciation | $674,379 | $304,397 | $978,776 | $732,098 | $277,563 | $1,009,661 |
| Amortization | $4,308 | $27,787 | $32,095 | $6,458 | $23,617 | $30,075 |

The Company's shareholders' meeting approved an amendment to its Articles of Incorporation in employee remuneration ratio of non-executive employees on June 20, 2025.

According to the Company's Articles of Incorporation, no less than 6% of profit of the current year is distributable as employees' compensation and no higher than 2% of profit of the current year is distributable as remuneration to directors. However, the Company's accumulated losses shall have been covered.

No less than 35% of the aforementioned profit as employees' compensation should be allocated to non-executive employees.

The aforementioned employees' compensation will be distributed in shares or in cash. The employees of controlling or affiliate companies that meet certain conditions which are set by the Board of Directors are entitled to the abovementioned remuneration.

According to Article 235-1 of the Company Act, the Company may, by a resolution adopted by a majority vote at a meeting of board of directors attended by two-thirds of the total number of directors, have the profit distributable as employees' compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders' meeting. Information on the Board of Directors' resolution regarding the employees' compensation and remuneration to directors can be obtained from the "Market Observation Post System" on the website of the TWSE.

Based on the profit of the year ended 31 Dec. 2025, the Company estimated the amounts of the employees' compensation and remuneration to directors for the year ended 31 December 2025 to be 6.50% and 1.67% of profit of current year, respectively, recognized the amount of $92,995 thousand and $23,838 thousand. Employees' compensation and remuneration to directors for the year ended 31 Dec. 2024 amount of $67,680 thousand and $18,000 thousand, respectively, recognized as employee benefits expense. If the Board of Directors resolves to distribute employee compensation through stock, the number of stocks distributed is calculated based on total employee compensation divided by the closing price of the day before the Board of Directors meeting. If the estimated amounts differ from the actual distribution resolved by the Board of Directors, the Company will recognize the change as an adjustment in the profit of loss in the subsequent period.

A resolution was passed at the board meeting on 10 March 2026 and 7 March 2025 to distribute dividend in cash in the amount of NT$92,995 thousand and NT$23,838 thousand and NT$67,680 thousand and NT$18,000 thousand for the year ended 2025 and 2024 as employees' compensation and remuneration to directors, respectively. No material differences existed between the estimated amount and the actual distribution of the employee compensation and remuneration to directors for the years ended 2025 and 2024.

(24) Non-operating income and expenses

(a) Interest revenue

	For the years ended 31 December
	2025	2024
Financial assets measured at amortized cost	$254,988	$188,529

(b) Other income

	For the years ended 31 December
	2025	2024
Rental income	$6,834	$5,942
Dividend income	7,621	10,611
Others	106,737	57,717
Total	$121,192	$74,270

	For the years ended 31 December
	2025	2024
Gains (losses) on disposal of property, plant and equipment	$2,673	($4,660)
(Losses) on disposal of investments	(13)	—
Gains on lease modification	10	—
Foreign exchange (losses) gains, net	(26,028)	78,941
Gains on reversal impairment loss	3,489	(45,362)
Gains on financial assets / financial liabilities at fair value through profit or loss (Note)	264,302	214,513
Others	(4,663)	(1,751)
Total	$239,770	$241,681

(Note): Balances were arising from financial assets and financial liabilities mandatory measured at fair value through profit or loss.

(d) Financial costs

	For the years ended 31 December
	2025	2024
Interest expenses
Interest on borrowings from bank	($197,391)	($206,176)
Interest on bonds payable	(11,561)	(1,898)
Interest on lease liabilities	(15,336)	(18,707)
Total	($224,288)	($226,781)

(25) Other comprehensive income components

	For the year ended 31 December 2025
	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax income (expense)	Carrying amount after tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	($2,585)	$—	($2,585)	($724)	($3,309)
Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income	(26,138)	—	(26,138)	1,634	(24,504)
To be reclassified to profit or loss in subsequent periods:
Exchange differences resulting from translating the financial statements of a foreign operation	(179,014)	—	(179,014)	28,348	(150,666)
Total	($207,737)	$—	($207,737)	$29,258	($178,479)

~72~

For the year ended 31 December 2024

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax income (expense)	Carrying amount after tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	($18,077)	$ —	($18,077)	($1,188)	($19,265)
Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income	(44,948)	—	(44,948)	2,079	(42,869)
To be reclassified to profit or loss in subsequent periods:
Exchange differences resulting from translating the financial statements of a foreign operation	517,532	—	517,532	(90,318)	427,214
Total	$454,507	$ —	$454,507	($89,427)	$365,080

(26) Income tax

The major components of income tax expense (income) are as follows:

(a) Income tax expense (income) recognized in profit or loss

	For the year ended 31 December
	2025	2024
Current income tax expense:
Current income tax expense	$279,608	$192,740
Adjustments in respect of current income tax of prior periods	(28,562)	(1,875)
Deferred tax expenses:
Deferred tax expense relating to origination and reversal of temporary differences	38,989	1,046
Others	(1,799)	(1,710)
Total income tax expense	$288,236	$190,201

(b) Income tax relating to components of other comprehensive income

	For the year ended 31 December
	2025	2024
Deferred tax expense (income):
Remeasurements of defined benefit plans	$724	$1,188
Unrealized gains or losses from financial assets measured at fair value through other comprehensive income	(1,634)	(2,079)
Exchange differences resulting from translating the financial statements of a foreign operation	(28,348)	90,318
Income tax expense (income) relating to components of other comprehensive income	($29,258)	$89,427

(c) Reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

	For the year ended 31 December
	2025	2024
Accounting profit before tax from continuing operations	$1,678,652	$1,267,605
Tax at the domestic rates applicable to profits in the country concerned	$441,460	$328,405
Tax effect of revenues exempt from taxation	22,739	(75,380)
Tax effect of expenses not deductible for tax purposes	10,666	1,048
Tax effect of deferred tax assets/liabilities	(148,938)	(96,847)
Income tax on undistributed surplus	—	86
Minimum tax amount to be levied	—	2
Adjustments in respect of current income tax of prior periods	(28,562)	(1,875)
Income tax effects resulting from other adjustments under tax laws	(9,129)	34,762
Total income tax expense recognized in profit or loss	$288,236	$190,201

(d) Deferred tax assets (liabilities) relate to the following:

For the year ended 31 December 2025:

	Beginning balance	Recognized in gain or loss	Recognized in other comprehensive income	Exchange differences	Ending balance
Temporary difference
Allowance for bad debts	$1,648	($204)	$—	$7	$1,451
Allowance for price decline in inventories	159,324	(39,501)	—	43	119,866
Unrealized exchange gains (losses)	(21,344)	9,221	—	—	(12,123)
Share of profit (loss) of subsidiaries accounted for using the equity method	63,606	37,655	—	—	101,261
Changes in ownership interests of subsidiaries for using equity method	(71,015)	—	—	—	(71,015)
Exchange differences resulting from translating the financial statements of a foreign operation	(20,187)	—	28,348	(18)	8,143
Depreciation difference for tax purpose	(2,351)	581	—	(9)	(1,779)
Net defined benefit liabilities	12,207	1,145	(724)	—	12,628
Impairment losses	61,415	(51,631)	—	27	9,811
Financial assets at fair value through other comprehensive income valuation	2,992	—	1,634	(14)	4,612
Others	19,998	3,745	—	12	23,755
Deferred tax (expense) income		($38,989)	$29,258	$48
Net deferred tax assets (liabilities)	$206,293				$196,610
Below is the information contained in the balance sheet:
Deferred tax assets	$329,472				$304,097
Deferred tax liabilities	($123,179)				($107,487)

For the year ended 31 December 2024:

	Beginning balance	Recognized in gain or loss	Recognized in other comprehensive income	Exchange differences	Ending balance
Temporary difference
Allowance for bad debts	$1,481	$115	$—	$52	$1,648
Allowance for price decline in inventories	152,244	6,704	—	376	159,324
Unrealized exchange gains (losses)	5,381	(26,725)	—	—	(21,344)
Share of profit (loss) of subsidiaries accounted for using the equity method	44,837	18,769	—	—	63,606
Changes in ownership interests of subsidiaries for using equity method	(71,015)	—	—	—	(71,015)
Exchange differences resulting from translating the financial statements of a foreign operation	73,728	(3,614)	(90,301)	—	(20,187)
Depreciation difference for tax purpose	(2,768)	511	—	(94)	(2,351)
Net defined benefit liabilities	13,316	79	(1,188)	—	12,207
Impairment losses	57,821	3,479	—	115	61,415
Financial assets at fair value through other comprehensive income valuation	1,061	—	2,079	(148)	2,992
Others	20,371	(364)	(17)	8	19,998
Deferred tax (expense) income		($1,046)	($89,427)	$309
Net deferred tax assets (liabilities)	$296,457				$206,293
Below is the information contained in the balance sheet:
Deferred tax assets	$379,346				$329,472
Deferred tax liabilities	($82,889)				($123,179)

(e) The following table contains information of the unused tax losses of the Group:

① Aide Energy (Cayman) Holding Co., Ltd. Taiwan Branch

Year	Losses of the period	Unused balance as at 31 December		Expiration Year
		2025	2024
2014	30,253	$ —	$30,253	2024
2015	25,606	25,606	25,606	2025
2016	680	680	680	2026
2017	4,705	4,705	4,705	2027
2022	1,037	1,037	1,037	2032
		$32,028	$62,281

② JIANGSU AIDE SOLAR ENERGY TECHNOLOGY CO., LTD.

Year	Losses of the period (RMB$)	Unused balance as at 31 December		Expiration Year
		2025	2024
2019	165,678	$ —	$741,905	2024
2020	797	3,584	3,570	2025
2021	12,827	57,672	57,441	2026
2022	3,039	13,665	13,610	2027
2023	8,092	36,380	36,235	2028
2024	7,918	35,598	—	2029
		$146,899	$852,761

③ PANJIT SEMICONDUCTOR (XUZHOU) CO., LTD.

Year	Losses of the period (RMB$)	Unused balance as at 31 December		Expiration Year
		2025	2024
2021	4,252	$19,119	$19,042	2026
2022	30,445	136,882	136,334	2027
2023	34,729	156,142	155,517	2028
2024	17,525	78,792	78,474	2029
		$390,935	$389,367

(f) Unrecognized deferred tax assets

As of 31 December 2025 and 2024, deferred tax assets that have not been recognized amounted to $337,491 thousand and $346,155 thousand, respectively.

(g) The assessment of income tax returns

As of 31 December 2025, the assessment of the income tax returns of the Company and its subsidiaries is as follows:

~76~

	The assessment of income tax returns
The Company	Assessed and approved up to 2023
Pynmax Technology Co., Ltd.	Assessed and approved up to 2023
Aide Energy (Cayman) Holding Co., Ltd. Taiwan Branch	Assessed and approved up to 2023
Champion Microelectronic Corp.	Assessed and approved up to 2023
PANSTAR SEMICONDUCTOR CO., LTD	Assessed and approved up to 2023
Golden Champion Digital Power Corporation	(Note 1)
MetaWeIls Co., Ltd.	(Note 2)
PANJIT Investment Co., Ltd.	(Note 3)

(Note 1): Golden Champion Digital Power Corporation has completed its income tax return for 2024, but has not yet been approved as of December 31, 2025.
(Note 2): MetaWeIls Co., Ltd. has completed its income tax return for 2024, but has not yet been approved as of December 31, 2025.
(Note 3): PANJIT Investment Co., Ltd. has completed its income tax return for 2024, but has not yet been approved as of December 31, 2025.

(27) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

	For the years ended 31 December
	2025	2024
(A) Basic earnings per share
Profit attributable to ordinary equity holders of the Company (in thousand NT$)	$1,191,631	$918,523
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	382,115	382,115
Basic earnings per share (NT$)	$3.12	$2.40
	For the years ended 31 December
	2025	2024
(B) Diluted earnings per share
Profit attributable to ordinary equity holders of the Company after dilution (in thousand)	$1,191,631	$918,523
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	382,115	382,115
Effect of dilution:
Employee compensation – stock (in thousands)	1,394	1,585
Weighted average number of ordinary shares outstanding after dilution (in thousand)	383,509	383,700
Diluted earnings per share (NT$)	$3.11	$2.39

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of the financial statements authorized for issue.

Related party transactions

The following is a summary of transactions between the Group and related parties during the reporting periods:

Name and Relationship of Related Parties

Name of related parties	Relationship with the Group
Zibo Micro Commercial Component Corp.	Associated Enterprises
MILDEX OPTICAL INC.	Associated Enterprises
Mildex OPTOELECTRONICS(XUZHOU) Co., Ltd.	Associated Enterprises
MILDEX OPTICAL USA, INC.	Associated Enterprises
Mr. FANG, MING-CHING etc. of 16 individuals	The management level above Deputy general manager of the Group

(1) Sales

	For the years ended 31 December
	2025	2024
Zibo Micro Commercial Component Corp.	$96,021	$113,454
Others	81	54
Total	$96,102	$113,508

The sales price to the related parties was determined through mutual agreement in reference to market conditions. The collection periods to related parties were month-end 90 days, and non-related parties were month-end 30~150 days. The outstanding payment at the end of the year were not pledged, interest-free and subject to pay in cash.

(2) Purchase

	For the years ended 31 December
	2025	2024
Zibo Micro Commercial Component Corp.	$170,325	$208,131
Others	1,210	21
Total	$171,535	$208,152

The purchase price from the related parties was determined through mutual agreement in reference to market conditions. The payment periods to related parties were the same with other company and were 30~90 days.

~77~

(3) Accounts receivable due from related parties

	31 Dec. 2025	31 Dec. 2024
Zibo Micro Commercial Component Corp.	$20,518	$28,529
Others	7	17
Total	$20,525	$28,546

(4) Other receivable due from related parties (not loans)

	31 Dec. 2025	31 Dec. 2024
MILDEX OPTICAL USA, INC.	$3,259	$3,527
Zibo Micro Commercial Components Corp.	4,140	62
MILDEX OPTICAL INC.	385	385
Total	$7,784	$3,974

(5) Prepayments - related parties

	31 Dec. 2025	31 Dec. 2024
Zibo Micro Commercial Component Corp.	$2	$—

(6) Accounts payable to related parties

	31 Dec. 2025	31 Dec. 2024
Zibo Micro Commercial Component Corp.	$28,995	$37,131
Others	1,196	—
Total	$30,191	$37,131

(7) Other payables to related parties (non-loans)

	31 Dec. 2025	31 Dec. 2024
Mildex OPTOELECTRONICS(XUZHOU) Co., Ltd.	$38,612	$38,458
Others	127	—
Total	$38,739	$38,458

(8) Lease

A. Group as a lessee

(a) Right-of-use assets

Carrying amount of right-of-use assets

	31 Dec. 2025	31 Dec. 2024
Mildex OPTOELECTRONICS(XUZHOU) Co., Ltd.	$130,803	$152,937

(b) Lease liabilities

	31 Dec. 2025	31 Dec. 2024
Mildex OPTOELECTRONICS(XUZHOU) Co., Ltd.	$142,616	$163,350

(9) Rental income

	For the years ended 31 December
	2025	2024
MILDEX OPTICAL USA, INC.	$2,475	$2,183
MILDEX OPTICAL INC.	1,271	635
Total	$3,746	$2,818

The rental prices leased by the Group to related parties are negotiated by both parties with reference to market conditions.

(10) Asset transactions:

For the year ended 31 December 2025: None.

For the year ended 31 December 2024:

Name of related parties	Acquisition Item	Purchase price
MILDEX OPTICAL INC.	Stock of PANJIT JAPAN Inc.	$1,034

(11) Disposal of Property, Plant, and Equipment

For the year ended 31 December 2025:

Name of related parties	Assets	Disposal price	Carrying Amount	Gain (loss) on disposal
Zibo Micro Commercial Component Corp.	Machinery and equipment	$2,877	$2,655	$222
Zibo Micro Commercial Components Corp.	Other equipment	870	329	541
Total		$3,747	$2,984	$763

For the year ended 31 December 2024: None.

(12) Key management personnel compensation

	For the years ended 31 December
	2025	2024
Short-term employee benefits	$143,280	$124,951
Post-employment benefits	632	624
Total	$143,912	$125,575

As at 31 December 2024, certain key management personnel were joint guarantors for the Group's borrowings from financial institutions.

Pledged assets

The following assets of the Group have been provided as collateral:

Items	Carrying amount		Secured liabilities details
	31 Dec. 2025	31 Dec. 2024
Other current assets	$76,886	$68,660	Financial products trade and performance guarantee
Other non-current assets	4,831	1,222	Long-term borrowings, performance guarantee
Refundable deposits	2,677	427	Performance guarantee
Total	$84,394	$70,309

Significant contingent liabilities and unrecognized contractual commitments

As at 31 December 2025 and 2024, the Group provided a guaranteed deposit for customs in the amount of NT$12,853 thousand and NT$12,843 thousand.

Significant Disaster Losses

None.

Significant subsequent events

(1) On February 3, 2026, the Company received documents served by the Ciaotou District Court. The enclosed documents state that this case involves a lawsuit filed by the law firm "Baker & McKenzie" of Illinois, U.S.A., in the Dallas County District Court in Texas, seeking payment from the Company for service fees, late payment interest, attorneys' fees, and litigation costs. As of the date of this financial reporting date, we have retained legal counsel to protect the Company's interests and have instructed such counsel to file a civil lawsuit against the other party asserting that the debt does not exist. The Company has made appropriate provisions for the aforementioned legal service fees; therefore, this matter has no material impact on the Company's financial and operational affairs.

(2) The Board of Directors of the Company resolved on March 10, 2026, within the limit of no more than 55,000 thousand shares, it will be proposed for the shareholders' meeting to authorize the Board of Directors to issue the common shares by private placement of the resolution of the Company's 2026 Shareholders' Meeting. The subscription price for common shares of this private placement shall be no less than 80% of the reference price. The primary purpose of this private placement of common shares through a cash capital increase is to consolidate the Company's position within the semiconductor industry supply chain. Subscribers will be limited to strategic investors who are neither insiders nor related parties of the Company. It is anticipated that this will facilitate joint development or business expansion, thereby strengthening the Company's competitiveness and enhancing operational efficiency and long-term growth.

~80~

~81~

12. Others

(1) Classification of financial instruments

Financial assets

	31 Dec. 2025	31 Dec. 2024
Financial assets at fair value through profit or loss:
Mandatory measured at fair value through profit or loss	$6,758,648	$5,392,115
Financial assets at fair value through other comprehensive income	497,052	479,208
Financial assets measured at amortized cost	6,812,933	6,675,785
Total	$14,068,633	$12,547,108

Financial liabilities

	31 Dec. 2025	31 Dec. 2024
Financial liabilities measured at amortized cost:
Current borrowings	$2,903,194	$2,996,916
Accounts and other payables	3,474,092	3,076,404
Bonds payable (including current portion)	452,806	441,245
Long-term borrowings (including current portion)	5,589,663	5,719,829
Lease liabilities	266,729	307,343
Deposits Received	80,383	75,111
Subtotal	12,766,867	12,616,848
Financial liabilities at fair value through profit or loss:
Held for trading	10,283	17,174
Total	$12,777,150	$12,634,022

(2) Financial risk management objectives and policies

The Group’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Group identifies, measures and manages the aforementioned risks based on the Group’s policy and risk appetite.

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

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there is usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense are denominated in a different currency from the Group’s functional currency) and the Group’s net investments in foreign subsidiaries.

The Group has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Group also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Hedge accounting is not applied as they did not qualify for hedge accounting criteria. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Group.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Group’s profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Group’s foreign currency risk is mainly related to the volatility in the exchange rates for USD, EUR, and JPY.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s debt instrument investments at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates and interest rate swaps contracts.

Equity Price Risk

The Group’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group’s listed and unlisted equity securities are classified under financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income, while conversion rights of the Euro-convertible bonds issued are classified as financial liabilities at fair value through profit or loss as it does not satisfy the definition of an equity component. 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 Group’s Board of Directors reviews and approves all equity investment decisions.

~82~

The sensitivity analysis of the changes in the risk of exposure:

For the year ended 31 December 2025

Risk	Change	Sensitivity to gain or loss (thousand)		Equity attribute (thousand)
Foreign currency	NTD/USD exchange rate +/- 1%	+/-	$24,412	$—
	NTD/EUR exchange rate +/- 1%	+/-	$1,495	$—
	NTD/JPY exchange rate +/- 1%	+/-	$516	$—
Interest Rate	NTD market interest rate +/- 100 basis points	—/+	$63,715	$—
Equity Price	Equity price +/- 10%	+/-	$10,565	$49,705

For the year ended 31 December 2024

Risk	Change	Sensitivity to gain or loss (thousand)		Equity attribute (thousand)
Foreign currency	NTD/USD exchange rate +/- 1%	+/-	$17,457	$—
	NTD/EUR exchange rate +/- 1%	+/-	$1,260	$—
	NTD/JPY exchange rate +/- 1%	+/-	$982	$—
Interest Rate	NTD market interest rate +/- 100 basis points	—/+	$63,646	$—
Equity Price	Equity price +/- 10%	+/-	$68	$47,921

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Group is exposed to credit risk from operating activities (primarily for accounts receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments.

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

As of 31 December 2025 and 2024, receivables from top ten customers represent 16% and 15% of the total receivables of the Group, respectively. The credit concentration risk of other receivables is insignificant.

Credit risk of credit-linked deposits arises if the issuing banks breached the contracts or the debt issuer could not pay off the debts; the maximum exposure is the carrying value of those financial instruments. Therefore, the Company minimized the risk by only transacting with counter-party who is reputable, transparent and in good financial standing.

~83~

Credit risk from balances with banks, fixed income securities and other financial instruments is managed by the Group's treasury in accordance with the Group's policy. The Group only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating and with no significant default risk. Consequently, there is no significant credit risk for these counter parties.

(5) Liquidity risk management

The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments, bank borrowings, and finance leases. The table below summarizes the maturity profile of the Group's financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as at the end of the reporting period.

Non-derivative financial liabilities

	< 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
As at 31 Dec. 2025
Loans	$8,494,786	$34,150	$—	$—	$8,528,936
Accounts and other payables	$3,425,058	$—	$—	$49,034	$3,474,092
Bonds payable	$—	$—	$507,538	$—	$507,538
Lease liabilities	$62,401	$102,285	$100,365	$29,507	$294,558
Guarantee deposits received	$80,383	$—	$—	$—	$80,383
As at 31 Dec. 2024
Loans	$3,835,472	$4,091,463	$852,915	$—	$8,779,850
Accounts and other payables	$3,033,565	$—	$—	$42,839	$3,076,404
Bonds payable	$—	$—	$507,538	$—	$507,538
Lease liabilities	$68,101	$104,296	$93,733	$78,606	$344,736
Guarantee deposits received	$74,596	$515	$—	$—	$75,111
Derivative financial liabilities
	< 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
As at 31 Dec. 2025
Forward currency contracts - inflows	$280,985	$—	$—	$—	$280,985
Forward currency contracts - outflows	($284,756)	$—	$—	$—	($284,756)
As at 31 Dec. 2024
Forward currency contracts - inflows	$120,663	$—	$—	$—	$120,663
Forward currency contracts - outflows	($122,288)	$—	$—	$—	($122,288)
Exchange rate swap contract-inflows	$179,187	$—	$—	$—	$179,187
Exchange rate swap contract-outflows	($180,973)	$—	$—	$—	($180,973)

The table above contains the undiscounted cash flows of derivative financial liabilities.

(6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the year ended 31 December 2025:

	Financial
	Current borrowings	liabilities at fair value through profit or loss	Bonds payable	Long-term borrowings	Lease liabilities	Total liabilities from financing activities
As at 1 Jan. 2025	$2,996,916	$13,763	$441,245	$5,719,829	$307,343	$9,479,096
Cash flows	(91,320)	—	—	(139,021)	(72,528)	(302,869)
Non-cash changes	—	(7,250)	11,561	1,712	25,400	31,423
Foreign exchange movement	(2,402)	—	—	7,143	6,514	11,255
As at 31 Dec. 2025	$2,903,194	$6,513	$452,806	$5,589,663	$266,729	$9,218,905

Reconciliation of liabilities for the year ended 31 December 2024:

	Financial
	Current borrowings	liabilities at fair value through profit or loss	Bonds payable	Long-term borrowings	Lease liabilities	Total liabilities from financing activities
As at 1 Jan. 2024	$2,689,193	$—	$—	$6,849,653	$332,515	$9,871,361
Cash flows	295,480	8,549	491,391	(1,138,159)	(73,364)	(416,103)
Non-cash changes	—	5,214	(50,146)	3,011	40,016	(1,905)
Foreign exchange movement	12,243	—	—	5,324	8,176	25,743
As at 31 Dec. 2024	$2,996,916	$13,763	$441,245	$5,719,829	$307,343	$9,479,096

(7) Fair value of financial instruments

A. The methods and assumptions applied in determining the fair value of financial instruments:

The fair value of the financial assets and liabilities is determined at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(a) The carrying amounts of cash and cash equivalents, financial assets measured at amortized cost, receivables, payables and other current liabilities approximate their fair value due to their short maturities.

(b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities, beneficiary certificates, bonds and futures, etc.) at the reporting date.

(c) Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).

(d) Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the Taipei Exchange, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)

(e) The fair value of derivatives which are not options and without market quotations, is determined based on the counterparty prices or discounted cash flow analysis using interest rate yield curve for the contract period. Fair value of option-based derivative financial instruments is obtained using on the counterparty prices or appropriate option pricing model (for example, Black-Scholes model) or other valuation method (for example, Monte Carlo Simulation).

B. Fair value of financial instruments measured at amortized cost

The fair values of the Group's financial instruments measured at amortized cost, except for the carrying amounts of cash and cash equivalents, receivables, payables and other current liabilities, which are a reasonable approximation of their fair values, are presented below:

	Carrying amount
	31 Dec. 2025	31 Dec. 2024
Financial liabilities:
Bonds payable	$452,806	$441,245
	Fair value
	31 Dec. 2025	31 Dec. 2024
Financial liabilities:
Bonds payable	$458,550	$442,800

C. Information about the fair value level of financial instruments

Please refer to Note 12.(9) for fair value measurement hierarchy for financial instruments of the Group.

(8) Derivative instruments

The related information for the Group's derivative financial instruments not qualified for hedge accounting and not yet settled as of 31 December 2025 and 2024 is as follows:

Forward currency contracts

The Group entered into forward currency contracts to manage its exposure to financial risk, but these contracts are not designated as hedging instruments.

Exchange rate swap contract

The Group entered into exchange rate swap contract to manage its exposure to financial risk, but these contracts are not designated as hedging instruments.

Option

Options are held for trading purposes but are not designated as hedging instruments.

The paragraphs below list the information related to forward currency contracts, exchange rate swap contract and option:

	Items	Contract amount (thousand)	Maturity date
As at 31 Dec. 2025: The Company	Forward currency contract	Sell USD 9,060	2026.01.05~2026.03.09
Pynmax Technology Co., Ltd.(Subsidiary)	Option	Purchase NT$1,142	2027.10.15
As at 31 Dec. 2024: The Company	Forward currency contract	Sell USD 3,730	2025.01.03~2025.01.21
The Company	Exchange rate swap contract	Sell USD 5,520	2025.01.07~2025.01.10
Pynmax Technology Co., Ltd.(Subsidiary)	Option	Purchase NT$1,142	2027.10.15

The counterparties of aforementioned derivatives are well-known banks at domestic and abroad, with good credit, so the credit risk is low.

With regard to the forward currency contracts and exchange rate swap contract, as they have been entered into to hedge the foreign currency risk of net assets or net liabilities, and there will be corresponding cash inflow or outflows upon maturity and the Group has sufficient operating funds, the cash flow risk is insignificant.

(9) Fair value level

(a) Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

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.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by reassessing categorization at the end of each reporting period.

(b) Fair value measurement hierarchy of the Group's assets and liabilities

The Group does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Group's assets and liabilities measured at fair value on a recurring basis is as follows:

As at 31 Dec. 2025:

	Level 1	Level 2	Level 3	Total
Financial assets
Assets measured at fair value:
Financial assets at fair value through profit or loss
Funds	$—	$3,211,559	$—	$3,211,559
Note and bills	$—	$2,756,411	$—	$2,756,411
Stocks	$12,606	$—	$93,046	$105,652
Convertible bonds	$—	$128,461	$—	$128,461
Option	$—	$821	$—	$821
Structured Product	$—	$—	$555,744	$555,744
Measured at fair value through other comprehensive income:
Equity instrument measured at fair value through other comprehensive income	$74,590	$—	$422,462	$497,052
Financial liabilities
Liabilities measured at fair value:
Financial assets at fair value through profit or loss
Forward currency contracts	$—	$3,770	$—	$3,770
Embedded derivative instruments	$—	$—	$6,513	$6,513
As at 31 Dec. 2024:
	Level 1	Level 2	Level 3	Total
Assets measured at fair value:
Financial assets at fair value through profit or loss
Funds	$—	$3,105,892	$—	$3,105,892
Note and bills	$—	$1,432,705	$—	$1,432,705
Stocks	$—	$—	$684	$684
Convertible bonds	$—	$138,947	$—	$138,947
Option	$—	$1,146	$—	$1,146
Structured Product	$—	$—	$712,741	$712,741
Measured at fair value through other comprehensive income:
Equity instrument measured at fair value through other comprehensive income	$114,434	$—	$364,774	$479,208
Financial liabilities
Liabilities measured at fair value:
Financial assets at fair value through profit or loss
Forward currency contracts	$—	$1,625	$—	$1,625
Exchange rate swap contract	$—	$1,786	$—	$1,786
Embedded derivative instruments	$—	$—	$13,763	$13,763

Transfer between Level 1 and Level 2 during the period

During the years ended 31 December 2025 and 2024, there was no transfer between fair value hierarchy level 1 and level 2 in the assets and liabilities measured at fair value on a recurring basis.

Changes in recurring fair value at level 3

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

Financial assets

	Financial assets measured at fair value through profit or loss		Measured at fair value through other comprehensive income
	Stocks	Structured deposits	Stocks
As of January 1, 2025	$684	$712,741	$364,774
Total recognized gains (losses) of the current period
Recognized in gain or loss	(1,890)	(997)	—
(presented in “Other gain or loss”)
Recognized in other comprehensive income	—	—	6,085
(presented in “Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income”)
Acquisition for the period	98,643	225,000	90,000
Disposal in current period	—	(381,000)	—
Transfer out (in) of Level 3	—	—	40,289
Exchange differences	(4,391)	—	(78,686)
As of December 31, 2025	$93,046	$555,744	$422,462
	Financial assets measured at fair value through profit or loss		Measured at fair value through other comprehensive income
---	---	---	---
	Stocks	Structured deposits	Stocks
As of January 1, 2024	$684	$—	$337,837
Total recognized gains (losses) of the current period
Recognized in gain or loss	—	2,741	(369)
(presented in “Other gain or loss”)
Acquisition for the period	—	1,101,500	31,473
Disposal in current period	—	(391,500)	—
Exchange differences	—	—	(4,167)
As of December 31, 2024	$684	$712,741	$364,774

Financial liabilities

	Financial liabilities measured at fair value through profit or loss
	Embedded derivative instruments
As of January 1, 2025	$13,763
Total recognized gains (losses) of the current period
Recognized in gain or loss	(7,250)
(presented in “Other gain or loss”)
Acquisition for the period	—
Disposal in current period	—
Exchange differences	—
As of December 31, 2025	$6,513
	Financial liabilities at fair value through profit or loss
	Embedded derivative instruments
As of January 1,2024	$—
Total recognized gains (losses) of the current period
Recognized in gain or loss	5,214
(presented in “Other gain or loss”)
Acquisition for the period	8,549
Disposal in current period	—
Exchange differences	—
As of December 31, 2024	$13,763

Significant unobservable input value information for Level 3 of the fair value hierarchy

For the Group's assets measured in Level 3 at fair value hierarchy for recurring fair value measurement, its significant unobservable inputs used in measuring the fair value are presented in the table below:

As at 31 Dec. 2025:

	Evaluation techniques	Significant unobservable input value	Quantitative Information	Interrelationship between inputs and fair value	Sensitivity analysis of Interrelationship between inputs and fair value
Financial assets
Assets measured at fair value:
Financial assets at fair value through profit or loss
Stock	Net asset value method	Not applicable	—	Not applicable	Not applicable
Structured Products	Net asset value method	Not applicable	—	Not applicable	Not applicable
Measured at fair value through other comprehensive income
Stock	Market approach/ Asset approach	Lack of liquidity discount	3.36%~ 32.28%	The higher the illiquidity, the lower the fair value estimate.	The Group's equity will decrease/increase by NT$4,573 thousand if the percentage of illiquidity increases (decreases) by 1%.
Financial liabilities
Liabilities measured at fair value:
Financial liabilities at fair value through profit or loss
Embedded derivative instruments	Binary Tree Convertible Bond Evaluation Model	Volatility	48.56%	The higher the volatility, fair value estimate the higher the number	When the volatility increases by 5%, the Company's profit and loss will increase by NT$30 thousand
As at 31 Dec. 2024:
	Evaluation techniques	Significant unobservable input value	Quantitative Information	Interrelationship between inputs and fair value	Sensitivity analysis of Interrelationship between inputs and fair value
Financial assets
Assets measured at fair value:
Financial assets at fair value through profit or loss
Stock	Net asset value method	Not applicable	—	Not applicable	Not applicable
Measured at fair value through other comprehensive income
Stock	Market approach	Lack of liquidity discount	3.43%~ 32.28%	The higher the illiquidity, the lower the fair value estimate.	The Group's equity will decrease/increase by NT$3,836 thousand if the percentage of illiquidity increases (decreases) by 1%.

Financial liabilities

Liabilities measured at fair value:
Financial liabilities at fair value through profit or loss

Embedded derivative instruments	Binary Tree Convertible Bond Evaluation Model	Volatility	37.19%	The higher the volatility, fair value estimate the higher the number	When the volatility increases (decreases) by 1%, the company's profit and loss will decrease/increase by NT$20 thousand

(10) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

	31 December 2025
	Foreign currency (thousand)	Foreign exchange rate	NTD (thousand)
Financial assets
Monetary items:
USD	$96,927	31.4300	$3,046,401
EUR	$4,077	36.9000	$150,425
JPY	$258,557	0.2008	$51,918
Financial liabilities
Monetary items:
USD	$19,256	31.4300	$605,211
EUR	$23	36.9000	$860
JPY	$1,275	0.2008	$256
	31 December 2024
	Foreign currency (thousand)	Foreign exchange rate	NTD (thousand)
Financial assets
Monetary items:
USD	$80,578	32.7850	$2,641,748
EUR	$4,693	34.1400	$160,228
JPY	$472,308	0.2099	$99,138
Financial liabilities
Monetary items:
USD	$27,328	32.7850	$895,959
EUR	$1,002	34.1400	$34,194
JPY	$4,409	0.2099	$925

The above information is disclosed on the basis of the foreign currency carrying amount (which has been converted to functional currency.)

The Group’s foreign currency transaction and functional currency are various, and hence is not able to disclose the information of exchange gains and losses by each significant assets and liabilities denominated in foreign currencies. The exchange (losses) gains of monetary financial assets and liabilities was (NT$26,028) thousand and NT$78,941 thousand for the years ended 31 December 2025 and 2024, respectively.

(11) Capital management

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

(12) FORCE MOS TECHNOLOGY CO., LTD. filed a patent infringement lawsuit against our client in the Eastern District of Texas Federal Court in the United States. The court judge issued a first-instance judgment on June 10, 2025. The content of this judgment is not significantly different with the verdict of the United States Eastern District Court for the Eastern District of Texas on February 13, 2025. The Company has also disclosed the relevant matters in the “Other Matters” section of its first-quarter report for 2025.

The company is not a party to the lawsuit, and the company and the supplier have agreed in the supplier contract and related provisions on warranty of title that the supplier shall bear ultimate liability for infringement, which has protected the Company's rights and interests. This legal event has no significant impact on the Company's financial operations.

The Company will also cooperate with our customers in filing appeals in accordance with legal procedures and require that our suppliers continue to provide legitimate and reasonable evidence and explanations to assist our customers in proving that their products do not involve infringement during the appeal process, thereby protecting the Company's reputation and rights.

(13) The Company sign a Memorandum of Understanding with Torex Semiconductor Ltd. (hereinafter referred to as Torex) on February 7, 2025. According to the Memorandum of Understanding, Torex will transfer some or all of its 100% owned subsidiary-TOREX VIETNAM SEMICONDUCTOR CO., LTD. to the Company. The investment agreement was duly approved by the Board of Directors of the Company on November 17, 2025, authorizing the Chairman to execute the agreement, and was duly signed on the same date. The relevant company registration procedures are currently underway.

~93~

~94~

13. Other disclosures

A. Information about significant transactions:

(a) Financing provided to others: Please refer to Attachment 1.
(b) Endorsement/Guarantee for others: Please refer to Attachment 2.
(c) Significant securities held at the end of the period (excluding subsidiaries, associates, and joint ventures): Please refer to Attachment 3.
(d) Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock: Please refer to Attachment 4.
(e) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock: Please refer to Attachment 5.
(f) Business relationships and must transactions and amount between parent company and subsidiaries: Please refer to Attachment 8.

B. Information of investees:

If the issuer directly or indirectly exercises significant influence or control over, or has a joint venture interest in, an investee company not in the Mainland Area, it shall disclose information on the investee company, showing the name, location, principal business activities, original investment amount, shareholding at the end of the period, profit or loss for the period, and recognized investment gain or loss: Please refer to Attachment 6.

C. Information on Investment in Mainland China

(a) Information on investment in Mainland China: Please refer to Attachment 7.
(b) Directly or indirectly significant transactions through third regions with the investees in Mainland China, including price, payment terms, unrealized gain or loss:

i. The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: Please refer to Attachment 4.
ii. The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: Please refer to Attachment 4~5.
iii. The amount of property transactions and the amount of the resultant gains or losses: None.
iv. The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None.
v. The highest balance, the end of period balance, the rate range, and total current period interest with respect to financing of funds: Please refer to Attachment 1.
vi. Other transactions that have a material effect on the profit or loss for the period or on the financial position: none.

14. Segment Information

A. For management purposes, the Group is consisted of business units on the basis of product characteristics and services, and has three reportable operating segments as follows:

(1) Power Discrete: Manufacture and sale the wafers, power components and control module.
(2) Power IC and components: research and development, design and manufacture and technology consultation of power IC, field effect transistors and fast recovery diodes.
(3) Solar: Sales of electricity.

No operating segments have been aggregated to form the above reportable operating segments.

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 on the same basis with those in the consolidated financial statements. However financial cost, financial income and income taxes are managed on a group basis and are not allocated to operating segments.

Transfer prices between operating segment are on an arm's length basis in a manner similar to transactions with third parties

	For the year ended 31 December 2025
	Power Discrete	Power IC and components	Solar	Adjustment	Total
Revenue
External customers	$11,839,813	$1,054,373	$199,730	$—	$13,093,916
Inter-segment	10,918	4,518	—	(15,436)	—
Total revenue	$11,850,731	$1,058,891	$199,730	($15,436)	$13,093,916
Segment profit	$892,601	$203,249	$15,434	$567,368	$1,678,652

(a) Inter-segment revenues were eliminated on consolidation.
(b) The profit for each operating segment did not include non-operating income and expenses in the amount of NT$567,368 thousand and income tax expense in the amount of NT $288,236 thousand. Segment profit included inter-segment sales of NT$0 thousand and non-operating income and expenses of NT$567,368 thousand.

	For the year ended 31 December 2024
	Power Discrete	Power IC and components	Solar	Adjustment	Total
Revenue
External customers	$11,507,005	$815,999	$213,208	$—	$12,536,212
Inter-segment	14,317	28	—	(14,345)	—
Total revenue	$11,521,322	$816,027	$213,208	($14,345)	$12,536,212
Segment profit	$600,756	$156,119	$56,046	$454,684	$1,267,605

(a) Inter-segment revenues were eliminated on consolidation.
(b) The profit for each operating segment did not include non-operating income and expenses in the amount of NT$454,684 thousand and income tax expense in the amount of $190,201 thousand. Segment profit included inter-segment sales of NT$0 thousand and non-operating income and expenses of NT$454,684 thousand.

The following table lists the information related to the assets and liabilities of the Group's operating segments as of December 31, 2025, and 2024:

Assets by Operating Segments

	Power Discrete	Power IC and components	Solar	Adjustment	Total
31 Dec. 2025
Assets	$15,059,901	$756,362	$1,037,899	$12,665,130	$29,519,292
31 Dec. 2024
Assets	$15,453,129	$777,323	$1,004,186	$11,508,026	$28,742,664

Liabilities by Operating Segments

	Power Discrete	Power IC and components	Solar	Adjustment	Total
31 Dec. 2025
Liabilities	$10,212,846	$551,057	$98,020	$2,530,031	$13,391,954
31 Dec. 2024
Liabilities	$10,417,511	$512,791	$124,066	$2,168,452	$13,222,820

B. Geographic area information

(a) Revenue from external customers: (Summarized by country)

Country	For the years ended 31 December
	2025	2024
Taiwan	$1,787,219	$1,421,457
China (including Hong Kong)	7,172,615	7,489,802
Korea	915,566	919,971
U.S.A.	224,309	177,981
Japan	106,661	77,956
Germany	446,970	384,272
Italy	222,836	236,187
Others	2,217,740	1,828,586
Total	$13,093,916	$12,536,212

(b) Non-current assets:

Area	31 Dec. 2025	31 Dec. 2024
Taiwan	$8,213,982	$8,920,209
China	2,414,226	2,543,655
Others	2,824,460	2,735,795
Total	$13,452,668	$14,199,659

B. Important Customer Information

Individual customer accounting for at least 10% of net sales for the years ended 31 December 2025 and 2024: None.

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NT$ thousand, unless otherwise indicated)

Financing provided to others

Attachment 1

No. (Note 1)	Lender	Counter-party	Financial statement account (Note 2)	Related party	Maximum balance for the period	Ending balance (Note 6)	Actual amount provided	Interest rate	Nature of Financing (Note 3)	Amount of sales to (purchases from) counter-party (Note 4)	Reason for Financing (Note 5)	Allowance for Loss	Collateral		Limit of financing amount for individual counter-party	Limit of total financing amount	Note
													Name	Value
0	PANJIT INTERNATIONAL INC.	EC SOLAR C1 SRL	Other receivables	Yes	$216,420	$73,800	$-	3.50%	Short-term financing	-	Operating turnover	-	-	-	$5,869,023	$5,869,023	(Note 7, 13)
0	PANJIT INTERNATIONAL INC.	PANSTAR SENRCONDUCTOR CO., LTD.	Other receivables	Yes	$30,000	$30,000	$30,000	5.00%	Short-term financing	-	Operating turnover	-	-	-	5,869,023	5,869,023	(Note 7, 13)
1	PAN-IT ASIA INTERNATIONAL INC.	Jiangsu Aide Solar Technology Co., Ltd.	Other receivables	Yes	980,570	928,152	928,152	0.00%	Short-term financing	-	Operating turnover	-	-	-	4,070,170	8,954,373	(Note 8, 13)
1	PAN-IT ASIA INTERNATIONAL INC.	PANJIT INTERNATIONAL INC.	Other receivables	Yes	630,700	628,600	207,438	0.00%	Short-term financing	-	Operating turnover	-	-	-	4,070,170	8,954,373	(Note 8, 13)
1	PAN-IT ASIA INTERNATIONAL INC.	PAN JIT Electronics (Weni) Co., Ltd.	Other receivables	Yes	332,050	-	-	0.00%	Short-term financing	-	Operating turnover	-	-	-	4,070,170	8,954,373	(Note 8, 13)
2	Suzhou Grande Electronics Co. Ltd.	Jiangsu Aide Solar Technology Co., Ltd.	Other receivables	Yes	427,050	419,859	419,859	1.80%	Short-term financing	-	Operating turnover	-	-	-	1,221,339	1,221,339	(Note 9, 13)
2	Suzhou Grande Electronics Co. Ltd.	PAN JIT Electronics (Weni) Co., Ltd.	Other receivables	Yes	114,325	112,400	-	0.00%	Short-term financing	-	Operating turnover	-	-	-	1,221,339	1,221,339	(Note 9, 13)
3	PAN-JIT AMERICAS INC.	PAN-JIT ASIA INTERNATIONAL INC.	Other receivables	Yes	107,916	102,148	102,148	3.85%	Short-term financing	-	Operating turnover	-	-	-	133,314	133,314	(Note 10, 13)
4	JOYSTAR INTERNATIONAL CO., LTD	Pynnau Technology Co., Ltd.	Other receivables	Yes	94,605	94,290	-	0.00%	Short-term financing	-	Operating turnover	-	-	-	434,136	434,136	(Note 11, 13)
5	Wisdom Bright Inc.	Champion Microelectronic Corp.	Other receivables	Yes	94,605	94,290	-	0.00%	Short-term financing	-	Operating turnover	-	-	-	340,852	340,852	(Note 12, 13)
Total						$2,483,539	$1,687,597

(Note 1): The numbering rule is as follows:
1. The parent company is coded "0".
2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

(Note 2): Accounts receivable from associates, accounts receivable from related parties, shareholder transactions, advance payments, temporary payments... and other items, if they are in the nature of capital loans, must be filled in this form.

(Note 3): The nature of the fund loan should be listed as a business transaction or a short-run financing need.

(Note 4): If the nature of the fund loan is a business transaction, the business transaction amount should be filled in. The business transaction amount refers to the amount of business transactions between the Company that lent the fund and the counterparty in the most recent year.

(Note 5): If the nature of the fund loan is short-run financing, the counterparty's reasons and the purpose for the loan should be specified, such as repayment of borrowings, purchase of equipment, business turnover... etc.

(Note 6): Pursuant to Article 14 Item 1 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, if a public company submits a capital loan to the Board of Directors for resolutions one by one, although the funds have not yet been allocated, the amount of the board of directors' resolutions should be included in the balance declared to expose the risk; however, if the funds are subsequently repaid, the balance after repayment shall be disclosed to reflect the adjustment of risk. Pursuant to Article 14 Item 2 of the Regulations, if a public company, through the resolution by the board of directors, authorizes the chairman of the board to allocate loans in installments or revolve them within a certain amount and within a one-year period, the capital loan and quota approved by the board of directors should still be used as the balance declared. Although the funds will be repaid thereafter, it is still possible to allocate the loan again, so the capital loan and quota approved by the board of directors should still be used as the balance declared.

(Note 7): For companies or merchants that are in need of short-term financing, the amount of individual loans and the total amount of capital loans to others by the Company shall not exceed 40% of the Company's net worth.

(1) PANJIT International Inc.: The net worth is NT$14,672,558 thousand.

(Note 8): In accordance with the following regulations on the "Capital Loan to Others Operating Procedures" stipulated by each subsidiary of the Company, for companies or merchants that are in need of short-term financing, the amount of individual loans and the total amount of capital loans to others shall not exceed 40% of that company's net worth. If the subsidiary and the foreign companies in which the property and indirectly, held 100% of the voting shares engage in fund lending, it is not subject to the above restrictions. However, the individual loan amount and the total amount of funds loaned to others shall not exceed 50% and 110% of that company's net worth. Calculate the net worth of the following companies in accordance with the operating procedures:

(1) PAN-JIT ASIA INTERNATIONAL INC.: The net worth is USD258,999 thousand, which is converted into NT$8,140,339 thousand.

(Note 9): In accordance with the following regulations on the "Capital Loan to Others Operating Procedures" stipulated by each subsidiary of the Company, for companies or merchants that are in need of short-term financing, the amount of individual loans and the total amount of capital loans to others shall not exceed 40% of that company's net worth. If the subsidiary and the foreign companies in which the directly and indirectly, held 100% of the voting shares engage in fund lending, it is not subject to the above restrictions, but the individual loan amount and the total amount of funds loaned to others shall not exceed 150% of that company's net worth. Calculate the net worth of the following companies in accordance with the operating procedures:

(1) Suzhou Grande Electronics Co., Ltd.: The net worth is CNY181,100 thousand, which is converted into NT$814,226 thousand.

(Note 10): In accordance with the following regulations on the "Capital Loan to Others Operating Procedures" stipulated by each subsidiary of the Company, for companies or merchants that are in need of short-term financing, the amount of individual loans and the total amount of financial loans to others shall not exceed 40% of that company's net worth. If the subsidiary and the foreign companies in which the directly and indirectly, held 100% of the voting shares engage in fund lending, it is not subject to the above restrictions, but the individual loan amount and the total amount of funds loaned to others shall not exceed 50% of that company's net worth. Calculate the net worth of the following companies in accordance with the operating procedures:

(1) JOYSTAR INTERNATIONAL CO., LTD.: The net worth is USD 34,532 thousand, which is converted into NT$1,085,341 thousand.

(Note 12): In accordance with the following regulations on the "Capital Loan to Others Operating Procedures" stipulated by each subsidiary of the Company, for companies or merchants that are in need of short-term financing, the amount of individual loans and the total amount of financial loans to others shall not exceed 40% of that company's net worth. If the subsidiary and the foreign companies in which the directly and indirectly, held 100% of the voting shares engage in fund lending, it is not subject to the above restrictions, but the individual loan amount and the total amount of funds loaned to others shall not exceed 50% of that company's net worth. Calculate the net worth of the following companies in accordance with the operating procedures:

(1) In accordance with the following regulations on the "Capital Loan to Others Operating Procedures" stipulated by each subsidiary of the Company, for companies or merchants that are in need of short-term financing, the amount of individual loans and the total amount of financing loans to others shall not exceed 40% of that company's net worth.

(1) Wisdom Bright Inc.: The net worth is USD27,112 thousand, which is converted into NTS852,130 thousand.

(Note 13): It had been written off in preparing the consolidated financial report.

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NT$ thousand, unless otherwise indicated)

Endorsement/guarantee for others

Attachment 2

No. (Note 1)	Endorsor/Guarantor	Receiving party		Limit of Endorsements/guarantees for receiving party (Note 3)	Maximum balance for the period (Note 4)	Ending balance (Note 5)	Actual amount provided (Note 6)	Amount of collateral guarantee/endorsement	Percentage of accumulated guarantee amount to net assets value from the latest financial statement	Limit of total guarantee/endorsement amount (Note 3)	Guarantee provided by parent company (Note 7)	Guarantee provided by a subsidiary (Note 7)	Guarantee provided to subsidiaries in Mainland China (Note 7)	Note
		Company name	Relationship (Note 2)
0	PANJIT INTERNATIONAL INC.	PAN-JIT ASIA INTERNATIONAL INC.	2	$14,672,558	$2,680,475	$2,671,550	$2,262,960	-	18.21%	$14,672,558	Y	N	N	(Note 8)
0	PANJIT INTERNATIONAL INC.	PANJIT JAPAN INC.	2	$14,672,558	$40,640	20,080	20,080	$25,144	0.14%	14,672,558	Y	N	N	(Note 8)
0	PANJIT INTERNATIONAL INC.	CONTINENTAL LIMITED	2	$14,672,558	$157,675	157,150	-	-	1.07%	14,672,558	Y	N	N	(Note 8)
1	Pynmax Technology Co., Ltd.	JOYSTAR INTERNATIONAL CO., LTD.	2	1,588,482	199,230	188,580	188,580	-	11.87%	1,588,482	N	N	N	(Note 9)
2	Champion Microelectronic Corp.	Wisdom Bright Inc.	2	352,459	157,675	157,150	157,150	-	8.92%	352,459	N	N	N	(Note 10)
Total						$3,194,510	$2,628,770

(Note 1): The numbering rule is as follows:
1. The parent company is coded "0"
2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

(Note 2): The relationship between endorsement guarantor and the subject of endorsement or guarantee is as follows:
(1) A company with which the Company has business relationship.
(2) A subsidiary in which the Company directly or indirectly holds more than 50% of the voting shares.
(3) The investee company whose parent company and subsidiary hold more than 50% of the common stock.
(4) For the parent company that directly or indirectly holds more than 90% of its common stock equity through its subsidiaries.
(5) Mutually guaranteed companies among counterparts based on the need for undertaking projects.
(6) All capital contributing shareholders make endorsements/guarantees for their jointly invested Company in proportion to their shareholding percentages.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

(Note 3): Information to be filled out: According to the operating procedures of endorsement and guarantee for others, the Company's limit of endorsement/guarantee for individuals and the maximum amount of endorsement/guarantee. In the remarks column, explain the calculation method of the endorsement/guarantee for individuals and the total amount.

(Note 4): Highest amount of outstanding endorsement/guarantee for others in current period.

(Note 5): The amount approved by the Board of Directors should be filled. However, if according to Article 12, Paragraph 8 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, the Board of Directors has authorized the chairman, it refers to the amount decided by the chairman.

(Note 6): The actual amount spent by the endorsed company within the range of the endorsed guarantee balance.

(Note 7): Y is required only for those who are the listed parent company to endorse the subsidiary, those who are the subsidiary to endorse the listed parent company, and those who are located in the mainland area.

(Note 8): According to the Company's "Procedures for Endorsement and Guarantee", the limit of the endorsement and guarantee for a single enterprise shall not exceed 100% of the Company's net worth (i.e., NT$14,672,558 thousand); the total amount of endorsement and guarantees for enterprises outside the Group shall not exceed 100% of the Company's net worth.

(Note 9): According to the Pynmax Technology Co., Ltd.'s "Procedures for Endorsement and Guarantee", the limit of the endorsement and guarantee for a single enterprise shall not exceed 100% of the Company's net worth (ie, NT$1,588,482 thousand); The total amount of endorsement and guarantees for enterprises outside the Group shall not exceed 100% of the Company's net worth.

(Note 10): According to the Champion Microelectronic Corp.'s "Procedures for Endorsement and Guarantee", the limit of the endorsement and guarantee for a single enterprise shall not exceed 20% of the Company's net worth (ie, NT$1,762,296 thousand); The total amount of endorsement and guarantees for enterprises outside the Group shall not exceed 20% of the Company's net worth.

~98~

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NTS thousand, unless otherwise indicated)

Significant securities held at the end of the period (excluding subsidiaries, associates, and joint ventures)

Attachment 3
Unit: NTD, USD, CNY thousand

Holder	Type and name of securities (Note 1)	Relationship (Note 2)	Financial statement account	Ending Balance					Note (Note 4)
				Units/Shares (thousand shares)	Currency	Book value (Note 3)	Percentage of ownership	Fair value
PAN-JIT ASIA INTERNATIONAL INC.	Fund
	VTEAM SIEGFRIED SUPPLY CHAIN FINANCE FUND	-	Financial assets measured at fair value through profit or loss - current	-	USD	39,700	-	39,700	-
	Siegfried Global Trade Finance Fund SPC SP I	-	Financial assets measured at fair value through profit or loss - current	-	USD	9,180	-	9,180	-
	Notes
CONTINENTAL LIMITED	VTeam Supply Chain Finance Ltd.	-	Financial assets measured at fair value through profit or loss - current	-	USD	38,000	-	38,000	-
	Notes
	VTeam Supply Chain Finance Limited	-	Financial assets measured at fair value through profit or loss - current	-	USD	14,000	-	14,000	-
JOYSTAR INTERNATIONAL CO., LTD.	Fund
	Vteam Siegfried Supply Chain Finance Fund	-	Financial assets measured at fair value through profit or loss - current	-	USD	20,669	-	20,669	-
	Siegfried Global Trade Finance Fund SPC-SP I	-	Financial assets measured at fair value through profit or loss - current	-	USD	5,072	-	5,072	-
	Notes
Wisdom Mega Corp.	VTeam Supply Chain Finance Limited	-	Financial assets measured at fair value through profit or loss - current	-	USD	8,000	-	8,000	-
	Unlisted stock
	SiFotonics Technologies Co., Ltd	-	Financial assets measured at fair value through other comprehensive benefits and losses - non-current	2,040	NTD	123,130	2.31%	123,130	-
Wisdom Bright Inc.	Notes
	VTEAM SUPPLY CHAIN FINANCE LTD	-	Financial assets measured at fair value through profit or loss - current	-	USD	15,000	-	15,000	-
	Fund
	VTeam Siegfried Supply Chain Finance Fund	-	Financial assets measured at fair value through profit or loss - current	-	USD	6,188	-	6,188	-
AIDE ENERGY (CAYMAN) HOLDING CO., LTD.	Siegfried Supply Chain Finance Fund S.C.A., SICAV-SIF- Series 1	-	Financial assets measured at fair value through profit or loss - current	-	USD	3,553	-	3,553	-
	Fund
	Vteam Siegfried Supply Chain Finance Fund	-	Financial assets measured at fair value through profit or loss - current	-	USD	8,714	-	8,714	-
Jiangsu Aide Solar Technology Co., Ltd.	Notes
	VTeam Supply Chain Finance Limited	-	Financial assets measured at fair value through profit or loss - current	-	USD	12,700	-	12,700	-
	Unlisted stock
	MOTECH (Suzhou) New Energy Co., Ltd. (Note 6)	-	Financial assets measured at fair value through other comprehensive benefits and losses - non-current	-	CNY	28,810	4.61%	28,810	Has been pledged to subsidiaries

(Note 1): The securities mentioned in this attachment refer to stocks, bonds, beneficiary certificates and securities derived from the above items within the scope of IFRS 9 "Financial Instruments."
(Note 2): If the securities issuer is not a related party, this column should be left blank.
(Note 3): Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortized cost deducted by accumulated impairment for the marketable securities not measured at fair value.
(Note 4): The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the foot NOTE if the securities presented herein have such conditions.
(Note 5): This attachment lists the securities that the company deems necessary to include based on the principle of materiality.
(Note 6): It is a limited company, so the number of shares and net worth per share are not available.

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NT$ thousand, unless otherwise indicated)

Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock million or 20 percent of the capital stock

Attachment 4

Purchaser (seller)	Counter-party	Relationship	Transactions				Situation and reason for difference between transaction condition and common transaction		Notes and accounts receivable(payable)		Note
			Purchases (Sales)	Amount (Note 2)	Percentage of total purchases (sales)	Credit Term	Unit price	Credit Term	Ending Balance (Note 2)	Percentage of total receivables (payable)
PANJIT INTERNATIONAL INC.	Pan Jit Electronics (Wuxi) Co., Ltd.	Subsidiaries	(Sales)	($2,010,312)	21%	General	Not applicable	Not applicable	$560,002	20%	(Note 2)
	Pan Jit Electronics (Wuxi) Co., Ltd.	Subsidiaries	Purchase	2,124,895	39%	General	Not applicable	Not applicable	(443,542)	34%	(Note 2)
	Pynmax Technology Co., Ltd.	Subsidiaries	Purchase	544,873	10%	General	Not applicable	Not applicable	(218,304)	17%	(Note 2)
	PAN-JIT AMERICAS INC.	Subsidiaries	(Sales)	(245,536)	3%	General	Not applicable	Not applicable	14,262	0%	(Note 2)
	PANJIT Semiconductor (Xuzhou) Co., Ltd.,	Subsidiaries	Purchase	146,834	3%	General	Not applicable	Not applicable	(76,734)	6%	(Note 2)
Pynmax Technology Co., Ltd.	PANJIT INTERNATIONAL INC.	The Company	(Sales)	(544,873)	54%	General	Not applicable	Not applicable	218,304	70%	(Note 2)
	Pan Jit Electronics (Wuxi) Co., Ltd.	Subsidiaries	(Sales)	(412,520)	41%	General	Not applicable	Not applicable	87,095	28%	(Note 2)
Pan Jit Electronics (Wuxi) Co., Ltd.	PANJIT INTERNATIONAL INC.	The Company	(Sales)	(2,124,895)	34%	General	Not applicable	Not applicable	443,542	24%	(Note 2)
	PANJIT INTERNATIONAL INC.	The Company	Purchase	2,010,312	30%	General	Not applicable	Not applicable	(560,002)	36%	(Note 2)
	Pynmax Technology Co., Ltd.	Subsidiaries	Purchase	412,520	6%	General	Not applicable	Not applicable	(87,095)	6%	(Note 2)
	Pan Jit Electronics (Shandong) Co. Ltd.	Subsidiaries	Purchase	221,417	3%	General	Not applicable	Not applicable	(71,246)	5%	(Note 2)
	PANJIT Semiconductor (Xuzhou) Co., Ltd.,	Subsidiaries	(Sales)	(101,174)	2%	General	Not applicable	Not applicable	94,047	5%	(Note 2)
	PANJIT Semiconductor (Xuzhou) Co., Ltd.,	Subsidiaries	Purchase	594,167	9%	General	Not applicable	Not applicable	(6,375)	0%	(Note 2)
	Zibo Micro Commercial Components Corp.	Associates	Purchase	170,325	3%	General	Not applicable	Not applicable	(28,995)	2%
PAN JIT AMERICAS, INC.	PANJIT INTERNATIONAL INC.	The Company	Purchase	245,536	100%	General	Not applicable	Not applicable	(14,262)	88%	(Note 2)
Pan Jit Electronics (Shandong) Co. Ltd.	Pan Jit Electronics (Wuxi) Co., Ltd.	Subsidiaries	(Sales)	(221,417)	81%	General	Not applicable	Not applicable	71,246	54%	(Note 2)
PANJIT Semiconductor (Xuzhou) Co., Ltd.,	PANJIT INTERNATIONAL INC.	The Company	(Sales)	(146,834)	20%	General	Not applicable	Not applicable	76,734	88%	(Note 2)
	Pan Jit Electronics (Wuxi) Co., Ltd.	Subsidiaries	(Sales)	(594,167)	79%	General	Not applicable	Not applicable	6,375	7%	(Note 2)
	Pan Jit Electronics (Wuxi) Co., Ltd.	Subsidiaries	Purchase	101,174	28%	General	Not applicable	Not applicable	(94,047)	34%	(Note 2)
Champion Microelectronic Corp.	Great Power Microelectronics Corp.	Subsidiaries	(Sales)	(106,436)	10%	General	Not applicable	Not applicable	9,643	5%	(Note 2)
Great Power Microelectronics Corp.	Champion Microelectronic Corp.	Subsidiaries	Purchase	106,436	98%	General	Not applicable	Not applicable	(9,643)	82%	(Note 2)

(Note 1): The amount of paid-in capital refers to the amount of paid-in capital of the parent company. If the issuer's stock has no denomination or the denomination per share is not NT$10, the transaction amount of 20% of the paid-in capital shall be calculated based on the 10% of the equity attributable to the owner of the parent company on the balance sheet.
(Note 2): It had been written off in preparing the consolidated financial report.

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NT$ thousand, unless otherwise indicated)

Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock

Attachment 5

The companies that record receivables	Counter-party	Relationship	Ending balance	Turnover rate	Overdue receivables		Amount received in subsequent period	Loss allowance
					Amount	Collection status
PANJIT INTERNATIONAL INC.	Pan Jit Electronics (Wuxi) Co., Ltd.	Subsidiaries	$560,002	3.59	$25,534	Urging Payment	$330,574	(Note 2, 3)
Pynmax Technology Co., Ltd.	PANJIT INTERNATIONAL INC.	The Company	218,304	2.50	-	-	104,953	(Note 2, 3)
Pan Jit Electronics (Wuxi) Co., Ltd.	PANJIT INTERNATIONAL INC.	The Company	443,542	4.79	-	-	286,918	(Note 2, 3)

(Note 2): The consolidated financial report is prepared and the shareholding ratio is 100% and no allowance for loss is required.

(Note 3): All intercompany transactions have been eliminated in the consolidated financial statements.

~101~

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NTS thousand, unless otherwise indicated)

Name, Location, and Information about Investor Companies (Not Including Investor Companies in Mainland China)

Attachment 6
Unit: NTD, USD, EUR thousand

Investing companies	Investor Companies (Note 1, Note 2)	Location	Main business items	Currency	Initial investment amount		Holding at the end of the period			Net income (loss) of investor company (Note 2(2))	Investment income (loss) recognized (Note 2(3))	Dividend distribution of invested companies in this period		Note
					Ending balance	Beginning balance	Number of shares (deceased)	Percentage of ownership (%)	Book value			Stock Dividends	Cash dividends
PANJIT INTERNATIONAL INC.	PAN-JIT ASIA INTERNATIONAL INC.	Vietra Corporate Services Centre Wickhami Cay R Road Town,Tomela, Vg1110 Virgin Islands, British	Investing	NTD	$7,286,295	$7,286,295	224,724	100.00%	$8,056,811	$621,589	$627,747	$-	($420,081)	Subsidiaries (Note 4, 5)
	Pynman Technology Co., Ltd.	No. 17, Yonggong 1st Rd., Yong'an Dist., Kaohsiung City	Electronic parts and components manufacturing and international trade	NTD	1,069,942	1,069,816	84,500	94.65%	1,380,980	149,943	130,753	-	(152,087)	Subsidiaries (Note 4, 5)
	MILDEX OPTICAL INC.	No. 7, Luba 3rd Rd., Luchu Dist., Kaohsiung City, Southern Science Industrial Park	Optical lens, instrument, and touch panel Display panel manufacturing	NTD	276,965	276,065	16,328	20.61%	224,324	12,871	2,671	-	(8,164)
	Aihop Technology Co., Ltd.	Floor 3, No. 102, Section 3, Zhongshan Road, Zhonghe District, New Taipei City, Taiwan	Electronic parts and components manufacturing and international trade	NTD	1,501,814	1,501,814	11,393	17.36%	1,764,889	1,105,692	168,504	-	(187,543)	(Note 4)
	Champion Microelectronic Corp.	Floor 5, No. 11, Park 2nd Road, Science Park District, Hsinchu City, Taiwan	Research and development, design and manufacture and technology consultation of power IC, field effect transistors and fast recovery diodes, international trade	NTD	1,979,953	1,979,953	24,536	30.84%	1,942,795	272,449	83,399	-	(49,072)	Subsidiaries (Note 4, 5)
	AIDE ENERGY EUROPE COOPERATIE U.A.	Corkstraat 46,3047 AC Rotterdam Nederland	Investing	NTD	732,259	732,259	- (Note 5)	100.00%	980,562	40,678	40,678	-	-	Subsidiaries (Note 5)
	PANJIT JAPAN INC.	No. 1-31-11, Kichijoji Honmachi, Masashino City, Tokyo KS 2/1/4P606	Electronics trade	NTD	12,320	12,320	5	55.00%	(3,800)	(7,943)	(4,369)	-	-	Subsidiaries (Note 5)
	PAN-JIT INTERNATIONAL (H.K.) LTD.	Unit 1-5, JAP, Wali Wai Centre, No.38-40 An Pai Wan Street, Fetan, Shatin, New Territories	Electronics trade	NTD	108,991	108,991	9,711	100.00%	56,113	12,328	12,306	-	(77,887)	Subsidiaries (Note 4, 5)
	PAN JIT KOREA CO. LTD.	Tower A dong 3601 Ho, Heung Druk IT Valey, Heung Druk 1st 13 Gi Heung-Gu, Yong In City GyungGi-Do, Korea	Electronics trade	NTD	23,097	23,097	54	60.00%	38,154	31,919	19,151	-	(13,492)	Subsidiaries (Note 5)
	PANJIT Investment Co., Ltd.	No. 17-1, Yonggong 1st Rd., Yong'an Dist., Kaohsiung City	Investment holding	NTD	230,000	43,000	23,000	100.00%	141,196	(57,532)	(59,992)	-	-	Subsidiaries (Note 4, 5)
PAN-JIT JAPAN INVESTMENT HOLDING CORPORATION	No. 1-31-11, Kichijoji Honmachi, Masashino City, Tokyo KS 2/1/4P606	Investment holding	NTD	2,108	-	1	100.00%	1,919	(94)	(94)	-	-	Subsidiaries (Note 5)
PANJIT Investment Co., Ltd.	PANSTAR SEMICONDUCTOR CO., LTD.	No. 17-1, Yonggong 1st Rd., Yong'an Dist., Kaohsiung City	Electronic parts and components manufacturing and international trade	NTD	10,372	10,372	1,000	33.33%	9,313	120	40	-	-	Sub-Subsidiaries (Note 5)
	MereWalk Co., Ltd (Formerly PANTOP Technology Co.,Ltd.)	34 F-1, No. 95, Sec. 1, Xintai 5th Rd., Xichi Dist., New Taipei City, Taiwan (R.O.C.)	Electronic parts and components manufacturing and international trade	NTD	132,461	28,461	60,500	81.43%	48,806	(79,889)	(56,619)	-	-	Sub-Subsidiaries (Note 5)
PAN-JIT ASIA INTERNATIONAL INC.	PAN JIT AMERICAS, INC.	2502 W. Huntington Drive Tempe, AZ 85202	Electronics trade	USD	16,626	16,626	2,431	95.86%	10,502	1,565	1,577	-	-	Sub-Subsidiaries (Note 4,5)
	PAN JIT EUROPE GMBH	Otto-Hahn Str. 285609 Aschheim Germany	Electronics trade	USD	770	770	- (Note 5)	100.00%	3,239	394	394	-	-	Sub-Subsidiaries (Note 5)
	CONTINENTAL LIMITED	Vietra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apta, Samoa	Investing	USD	24,726	24,726	22,360	100.00%	64,604	2,773	2,773	-	(2,989)	Sub-Subsidiaries (Note 5)
	AIDE ENERGY (CAYMAN) HOLDING CO., LTD.	The Grand Pavilion Commercial Centre, Okeander Way, 802 West Bay Road, P.O. Box 32052, Grand Cayman KY1-1208, Cayman Islands	Investment holding and sale of Photodlectric products	USD	145,868	145,868	246,249	94.43%	(19,840)	1,030	973	-	-	Sub-Subsidiaries (Note 5)

(continued in next page)

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NTS thousand, unless otherwise indicated)

Name, Location, and Information about Investor Companies (Not Including Investor Companies in Mainland China)

(continued from previous page)
Unit: NTD, USD, EUR thousand

Investing companies	Investor Companies (Note 1, Note 2)	Location	Main business items	Currency	Initial investment amount		Holding at the end of the period			Net income (loss) of investor company (Note 2(2))	Investment income (loss) recognized (Note 2(3))	Dividend distribution of invested companies in this period		Note
					Ending balance	Beginning balance	Number of shares (thousand)	Percentage of ownership (%)	Book value			Stock Dividends	Cash dividends
Pyrenax Technology Co., Ltd.	JOYSTAR INTERNATIONAL CO., LTD.	6th Floor, Ellen Skelton Building, 3076 Sri Francis Drake Highway, Road Town, Tortola, British Virgin Islands VG1110	Investing	NTD	$916,402	$665,266	29,922	100.00%	$1,032,858	$66,792	$66,792	$ -	$ -	Sub-Subsidiaries (Note 5)
	MILDEX OPTICAL INC.	No. 7, Lake 3rd Rd., Lezhu Dist., Kaohsiung City, Southern Science Industrial Park	Optical lens, instrument, and touch panel Display panel manufacturing	NTD	109,056	109,056	6,429	8.11%	88,271	12,871	1,051	-	(3,215)
Champion Microelectronic Corp.	Wisdom Bright Inc.	Seychelles	Investment holdings	NTD	759,083	351,949	23,874	100.00%	786,199	40,537	40,537	-	-	Sub-Subsidiaries (Note 5)
	Wisdom Mega Corp.	Seychelles	Investment holdings	NTD	125,250	125,250	4,000	100.00%	123,130	-	-	-	-	Sub-Subsidiaries (Note 5)
	PANJIT JAPAN INC.	No. 1-31-11, Kichijoji Honmachi, Musashino City, Tokyo KXU 4-6F606	Electronics trade	NTD	2,172	2,172	1	10.00%	(691)	(7,943)	(794)	-	-	Subsidiaries (Note 5)
	Golden Champion Digital Power Corporation	21st Floor, No. 96, Section 1, Xintai Nh Road, Xizhi District, New Taipei City	Electronic component manufacturing and Product design industry	NTD	1,000	1,000	1,000	100.00%	972	7	7	-	-	Sub-Subsidiaries (Note 5)
AIDE ENERGY EUROPE COOPERATIE U.A.	AIDE ENERGY EUROPE B.V.	Corkstraat 46,3047 AC Rotterdam Nederland	Investment holding and sales	SXR	18,620	18,620	2	100.00%	26,573	1,157	1,157	-	-	Sub-Subsidiaries (Note 5)
AIDE ENERGY EUROPE B.V.	EC SOLAR C1 SRL	Viale Andrea Doria 7 Cap 20124 MILANO (MI), Italy.	Sales of solar power plants Electricity produced	SXR	17,000	17,000	- (Note 3)	100.00%	25,065	1,291	1,112	-	-	Sub-subsidiary (Note 4, 5)
Wisdom Bright Inc.	Wisdom Toprich Technology Limited (Wisdom Toprich)	Seychelles	Investment holdings	NTD	79,505	79,505	2,504	100.00%	80,615	2,163	2,163	-	-	Sub-Subsidiaries (Note 5)

(Note 1): If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investor information.
(Note 2): If situation does not belong to Note 1, fill in the columns according to the following regulations:
(1) The columns of "Investor", "Location", "Main business activities", "Initial investment amount" and "Shares held as at March 31, 2024" should fill orderly in the Company's (public company's) information on investors and every directly or indirectly controlled investor's investment information, and note the relationship between the Company (public company) and its investor each (ex. direct subsidiary or indirect subsidiary) in the "Note" column.
(2) The "Net income (loss) of investor company" column should fill in amount of net profit (loss) of the investee for this period.
(3) The "Investment income (loss) recognized" column should fill in the Company (public company) recognized investment income (loss) of its direct subsidiary and recognized investment income (loss) of its investor accounted for under the equity method for this period. When filling in recognized investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognized by regulations.
(Note 3): It is a limited company or a merged company, so there is no number of shares.
(Note 4): The investment gain or loss recognized by the Company include the offset of unrealized gain or loss between associates and the amortization of net equity differences.
(Note 5): It had been written off in preparing the consolidated financial report.

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANIST International Inc. and Subsidiaries (continued)

(Unit: NTS thousand, unless otherwise indicated)

Information on investment in mainland China

Attachment 7

Investing companies	Investor Companies in Mainland China	Main business items	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated outflow of Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outflow of Investment from Taiwan as of 31 December, 2025	Net income (loss) of investor company	Percentage of Ownership	Investment income (loss) recognized (Note 2)	Carrying Value as of 31 December, 2025	Accumulated Inward Remittance of Earnings as of outflow 31 December, 2025
						Outflow	Inflow
PANIST INTERNATIONAL INC.	Pan Jit Electronics (Wuxi) CO.,LTD	Rectifier processing and manufacturing	$854,896	2 PAN-JIT ASIA INTERNATIONAL INC.	$502,145	$-	$-	$502,145	$291,314	100.00%	$291,314 (Note 5)	$3,186,431 (Note 5)	$477,320
	Suzhou Grande Electronics CO.,LTD.	Chip diodes, triodes and other new types of electronics Sales of semiconductor components and related products, as well as technology and after service	$368,971	2 CONTINENTAL LIMITED	344,900	-	-	344,900	6,731	100.00%	6,731 (Note 5)	869,781 (Note 5)	-
	Wuxi ENR Semiconductor Material Technology Co. Ltd. (Formerly Wuxi ENR Semiconductor Materials Technology Co. Ltd.)	Semiconductor peaking materials Manufacturing and sales	$87,300	2 ENR APPLIED PACKING MATERIAL CORPORATION	9,037	-	-	9,037	-	-	-	-	-
	Shenzhen Weiquan Electronics Co.,Ltd	New types of electronic components, Semiconductor controlled rectifier	$52,301	2 PAN-JIT ASIA INTERNATIONAL INC.	47,151	-	-	47,151	(265)	100.00%	(265) (Note 5)	14,594 (Note 5)	-
	PANIST Electronics (Beijing) CO., LTD	New types of electronic components, Semiconductor controlled rectifier sales	$4,496	3 Pan Jit Electronics (Wuxi) Co., Ltd.	-	-	-	-	(2,670)	100.00%	(2,670) (Note 5)	189 (Note 5)	-
	PANIST ELECTRONICS (SHANDONG) CO., LTD.	Semiconductor wafer manufacturing for automobile And protection of discrete devices, integrated circuit chips And production of packaging products	$344,933	3 Pan Jit Electronics (Wuxi) Co., Ltd.	-	-	-	-	62,840	70.28%	44,164 (Note 5)	309,398 (Note 5)	-
	PANIST ELECTRONICS (QUFU) CO.,LTD (Note 6)	New types of electronic components, Semiconductor controlled rectifier sales	$-	3 Pan Jit Electronics (Wuxi) Co., Ltd.	-	-	-	-	(46)	-	(46) (Note 5)	- (Note 5)	-
	PANIST Semiconductor (Xuzhou) Co., Ltd.	New types of electronic components, Semiconductor controlled rectifier sales	$1,135,870	3 Pan Jit Electronics (Wuxi) Co., Ltd.	-	-	-	-	61,604	100.00%	61,604 (Note 5)	827,774 (Note 5)	-

(continued in next page)

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NT$ thousand, unless otherwise indicated)

Information on investment in mainland China

(continued from previous page)

Investing companies	Investor Companies in Mainland China	Main business items	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated outflow of Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outflow of Investment from Taiwan as of 31 December, 2025	Net income (loss) of investor company	Percentage of Ownership	Investment income (loss) recognized (Note 2)	Carrying Value as of 31 December, 2025	Accumulated toward Remittance of Earnings as of outflow 31 December, 2025
						Outflow	Inflow
PANJIT INTERNATIONAL INC.	Zhu-Micro Commercial Components Corp.	Rectifier diode, rectifier bridge, Electronic devices	$889,369	3 Suchon Grande Electronics Co. Ltd.	$-	$-	$-	$-	$18,452	18.86%	$3,480	$141,067	$-
	Jiangsu Aide Solar Technology Co. Ltd.	Development, manufacturing and sales of solar energy products and self-acting agents of various commodities and technologies, import and export	$251,843	2 AIDE ENERGY (CAYMAN) HOLDING CO., LTD.	1,573,193	-	-	1,573,193	(16,779)	94.43%	(15,845) (Note 3)	(1,795,282) (Note 3)	-
Champion Microelectronic Corp.	Great Power Microelectronics Corp.	Technology development of electronic products and report, export and wholesale operation of related products	$86,433	2 Wisdom Toprich Technology Limited	76,885	-	-	76,885	2,163	100.00%	2,163 (Note 5)	80,615 (Note 5)	-
Cumulative investment amount remitted from Taiwan to Mainland China at the end of the period		Investment amount approved by Investment Review Committee of Ministry of Economy	Investment ceiling in Mainland China according to provisions of Investment Review Committee of Ministry of Economy
---	---	---	---
PANJIT INTERNATIONAL INC.	$2,476,426	$3,776,968	(Note 3)
Champion Microelectronic Corp.	$76,885	$76,885	(Note 4) $1,057,378

(Note 1) Investment modes can be divided into the following three types, please mark the type:
(1) Direct Mainland China investment.
(2) Reinvest in mainland China through a third-region company (please specify the investment company in the third region.)
(3) Others.

(Note 2) For the column of gain or loss on investments recognized in the current period:
(1) If it is in preparation and there is no investment gain or loss, it should be indicated.
(2) The recognition basis of investment gain or loss is divided into the following three types, which should be specified
A. The financial report verified by an international accounting firm in cooperation with the Accounting Firm within the Republic of China.
B. The financial report certified and audited by the Taiwanese parent company's CPA.
C. Others.

(Note 3) Due to the Company's establishment of the operating headquarters, in accordance with the provisions of the law, the amount of investment in mainland China is not limited.

(Note 4) Calculations of investment ceiling in Mainland China are as follows:
Champion Microelectronic Corp.: NT$1,762,296 thousand × 60% = NT$1,057,378 thousand

(Note 5) It had been written off in preparing the consolidated financial report.

(Note 6) PANJIT ELECTRONIC (QUFU) CO., LTD. has completed its dissolution and liquidation in April 2025.

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Consolidated Financial Statements of PANJIT International Inc. and Subsidiaries (continued)

(Unit: NT$ thousands, unless otherwise indicated)

Business relationships and significant transactions and amount between parent company and subsidiaries and among subsidiaries

Attachment 8

No. (Note 1)	Name of transaction party	Counter-party	Relationship (Note 2)	Transaction Status (Note 5)
				Subject	Amount (Notes 6)	Transaction condition	Percentage of total revenue or assets (Note 3)
0	PANJIT INTERNATIONAL INC.	Pan Jit Electronics (Wuxi) Co., Ltd.	1	Purchase Accounts payable
Sales Accounts receivable	$2,124,895
443,542
-
2,010,312
560,002	The transaction price is based on the average cost and marked on a certain ratio.	16%
2%
15%
2%
0	PANJIT INTERNATIONAL INC.	Pynmax Technology Co., Ltd.	1	Purchase Account payable	544,873
218,304	The transaction price is based on the average cost and marked on a certain ratio.	4%
1%
0	PANJIT INTERNATIONAL INC.	PAN JIT AMERICAS INC.	1	Sales	245,536	The transaction price is based on the average cost and marked on a certain ratio.	2%
0	PANJIT INTERNATIONAL INC.	PANJIT Semiconductor (Xuzhou) Co., Ltd.	1	Purchase	146,834	The transaction price is based on the average cost and marked on a certain ratio.	1%
1	Pynmax Technology Co., Ltd.	Pan Jit Electronics (Wuxi) Co., Ltd.	3	Sales	412,520	The transaction price is based on the average cost and marked on a certain ratio.	3%
2	Pan Jit Electronics (Wuxi) Co., Ltd.	PANJIT Semiconductor (Xuzhou) Co., Ltd.	3	Purchase
Sales	594,167
101,174	The transaction price is based on the average cost and marked on a certain ratio.	5%
1%
2	Pan Jit Electronics (Wuxi) Co., Ltd.	PanJit Electronic (Shandong) Co. Ltd.	3	Purchase	221,417	The transaction price is based on the average cost and marked on a certain ratio.	2%
3	Champion Microelectronic Corp.	Great Power Microelectronics Corp.	3	Sales	106,436	The transaction price is based on the average cost and marked on a certain ratio.	1%
4	Suzhou Grande Electronics Co. Ltd.	Jiangsu Aide Solar Technology Co., Ltd.	3	Other receivables	419,859	Based on contract of loans	1%
5	PAN JIT ASIA INTERNATIONAL INC.	Jiangsu Aide Solar Technology Co., Ltd.	3	Other receivables	928,152	Based on contract of loans	3%
5	PAN-JIT ASIA INTERNATIONAL INC.	PANJIT INTERNATIONAL INC.	2	Other receivables	207,438	Based on contract of loans	1%
6	PAN-JIT AMERICAS INC.	PAN-JIT ASIA INTERNATIONAL INC.	3	Other receivables	102,148	Based on contract of loans	0%
7	AIDE ENERGY (CAYMAN) HOLDING CO., LTD.	Jiangsu Aide Solar Technology Co., Ltd.	3	Prepay for goods	489,158	-	2%

(Note 1): The business transaction information between the parent company and the subsidiary should be indicated in the index number column respectively, and the index number should be filled in as follows:
(1) 0 for parent company.
(2) Subsidiaries are coded from "1" in the order presented in the table above.

(Note 2): The relationship with the trader includes the following three types. Simply mark the type (if it is the same transaction between parent and subsidiary companies or between subsidiaries, there is no need for repeated disclosure.
For example, if the parent company has disclosed the transaction between the parent company and the subsidiary, the subsidiary part does not need to be disclosed again;
For subsidiary-to-subsidiary transactions, if one of its subsidiaries has disclosed, the other subsidiary does not need to disclose again):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

(Note 3): For the calculation of the ratio of the transaction amount to the combined total revenue or total assets, if it is an asset-liability subject, it is calculated based on the ending balance of the consolidated total assets; if it is a profit or loss account,
it is calculated by the cumulative amount at the end of the period as a percentage of the consolidated total revenue.

(Note 4): Whether the significant transactions are presented is determined by the Company's significance principle.

(Note 5): If the transaction amount between parent and subsidiary reaches NT$100 million or more, it shall be disclosed.

(Note 6): It had been written off in preparing the consolidated financial report.

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PANJIT — Audit Report / Information 2025

52114_rns_2026-05-29_fb718aba-e712-4dba-be6b-70987c52939f.pdf

REPRESENTATION LETTER

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditor’s Responsibilities for the Audit of Consolidated Financial Statements

Others

Notice to Readers

English Translation of Financial Statements Originally Issued in Chinese

Financial asset measured at amortized cost

Financial assets measured at fair value through other comprehensive income

Financial assets at fair value through profit or loss

Classification between liabilities or equity

Equity Instruments

Compound instruments

Financial liabilities

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

E. Offsetting of financial instruments

(9) Derivative instruments.

Group as a lessor

(16) Intangible assets

Deferred tax

(7) Inventories

(8) Investments accounted for using the equity method

Sensitivity to changes in assumptions

(12) Current borrowings

(13) Notes payable - current

Defined benefit plan

(19) Equities

A. Common stock

(24) Non-operating income and expenses

(a) Interest revenue

(b) Other income

(27) Earnings per share

12. Others

(1) Classification of financial instruments

Financial assets

Financial liabilities

(2) Financial risk management objectives and policies

(3) Market risk

Foreign currency risk

Interest rate risk

Equity Price Risk

Changes in recurring fair value at level 3

Financial assets

13. Other disclosures

14. Segment Information

B. Geographic area information

B. Important Customer Information

English Translation of Financial Statements Originally Issued in Chinese

English Translation of Financial Statements Originally Issued in Chinese

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PANJIT Audit Report / Information 2025