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PANJIT INTERNATIONAL INC.

PARENT COMPANY ONLY 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.
Tel: 886-7-621-3121

The reader is advised that parent company only 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 language financial statements shall prevail.

Independent Auditor’s Report

To: PANJIT INTERNATIONAL INC.

Opinion

We have audited the accompanying parent company only balance sheets of PANJIT INTERNATIONAL INC. (the “Company”) as of 31 December 2025 and 2024, and the related parent company only statements of comprehensive income, changes in equity, and cash flows for the years ended 31 December 2025 and 2024, and notes to the parent company only financial statements, including the summary of material accounting policies (together “the parent company only 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 parent company only financial statements referred to above present fairly, in all material respects, the parent company only financial position of the Company as of 31 December 2025 and 2024, and their parent company only 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.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of 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 Parent Company Only Financial Statements section of our report. We are independent of the Company 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 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only 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 operating revenues of the Company amounted to NT$9,623,086 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; testing general journal entry, performing cutoff procedures, 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 parent company only financial statements.

Evaluation of Inventories

As of December 31, 2025, the Company's net inventories amounted to NT$1,279,261 thousand, constituting 5% of 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 parent company only 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 parent company only 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 7% and 7% of 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 13% and 17% of 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 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 Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of the parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the ability to continue as a going concern of the Company, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company 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.

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or errors, 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 parent company only financial statements.

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

Identify and assess the risks of material misstatement of the parent company only 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.
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. 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 parent company only 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 to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only 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 to express an opinion on the parent company only 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.

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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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2025 the parent company only 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.

Fang-Wen Lee

Fuh, Wen-Fun

Ernst & Young Taiwan
March 10, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the parent company only 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 parent company only financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent company only 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 the Republic of China, and their applications in practice.

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English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
PANJIT INTERNATIONAL INC.
Parent Company Only Balance Sheets
December 31, 2025, and 2024
(Expressed in Thousand of New Taiwan Dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current asset
Cash and cash equivalents	6(1)	$892,643	4	$740,838	3
Financial assets at fair value through profit or loss - current	6(2)	-	-	98,355	-
Notes receivable, net	6(4),(15)	48,989	-	41,691	-
Accounts receivable, net	6(5),(15)	2,168,453	9	1,888,215	8
Accounts receivable due from related parties, net	6(5),(15),7	641,298	2	545,701	2
Other receivable, net		46,126	-	44,087	-
Other receivables due from related parties	7	35,645	-	67,638	-
Inventories, net	6(6)	1,279,261	5	1,321,711	5
Other current assets	8	173,291	1	183,229	1
Total current assets		5,285,706	21	4,931,465	19
Non-current assets
Financial assets at fair value through other comprehensive income - non-current	6(3)	91,169	-	126,049	1
Investments accounted for using the equity method	6(7),7	14,583,943	58	14,384,743	58
Property, plant, and equipment	6(8),7	4,587,048	18	4,872,387	19
Right-of-use assets	6(16)	5,954	-	5,493	-
Intangible assets	6(9)	30,355	-	46,101	-
Deferred tax asset	6(20)	206,744	1	183,057	1
Prepayments for business facilities		26,973	-	39,052	-
Other non-current assets, others		408,188	2	379,144	2
Total non-current assets		19,940,374	79	20,036,026	81
Total assets		$25,226,080	100	$24,967,491	100

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Liabilities
Current borrowings	6(10)	$2,210,005	9	$2,547,521	10
Current financial liabilities at fair value through profit or loss		3,770	-	3,411	-
Contract liabilities-current	6(14)	103	-	755	-
Accounts payable		561,878	2	460,784	2
Accounts payable to related parties	7	752,491	3	705,796	3
Other payables		894,653	4	727,175	3
Other payables to related parties	7	325,366	1	469,038	2
Current tax liabilities		228,508	1	184,985	1
Current lease liabilities	6(16)	2,766	-	3,017	-
Long-term borrowings, current portion	6(11)	750,544	3	767,870	3
Other current liabilities, others		137,366	1	40,586	-
Total current liabilities		5,867,450	24	5,910,938	24
Non-current Liabilities
Long-term borrowings	6(11)	4,524,819	18	4,768,474	19
Deferred tax liabilities	6(20)	81,003	-	100,618	1
Non-current lease liabilities	6(16)	3,210	-	2,495	-
Net defined benefit liability, non-current	6(12)	52,038	-	49,470	-
Other non-current liabilities, others		25,002	-	12,382	-
Total non-current liabilities		4,686,072	18	4,933,439	20
Total liabilities		10,553,522	42	10,844,377	44
Equity
Capital
Common stock	6(13)	3,821,149	15	3,821,149	15
Capital surplus	6(13)	6,136,024	24	6,072,159	24
Retained earnings	6(13)
Legal reserve		902,653	4	812,657	3
Special reserve		717,237	3	717,237	3
Unappropriated retained earnings		3,501,429	14	2,938,084	12
Total retained earnings		5,121,319	21	4,467,978	18
Other components of equity		(405,934)	(2)	(238,172)	(1)
Total equity		14,672,558	58	14,123,114	56
Total liabilities and equity		$25,226,080	100	$24,967,491	100

(The accompanying notes are an integral part of the parent company only financial statements.)

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English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the years ended 31 December, 2025 and 2024

(Expressed in Thousand of New Taiwan Dollars, Except for Earnings per Share)

Items	Notes	2025		2024
		Amount	%	Amount	%
Operating revenues	6(14),7	$9,623,086	100	$8,654,540	100
Operating costs	6(17),7	(7,476,162)	(78)	(6,771,715)	(78)
Gross profit		2,146,924	22	1,882,825	22
Unrealized profit (loss) from sales		(32,931)	-	(28,234)	(1)
Realized profit (loss) on from sales		28,234	-	41,671	-
Gross profit-net		2,142,227	22	1,896,262	21
Operating expense	6(15),(17),7
Selling expenses		(555,280)	(6)	(530,483)	(6)
Administrative expenses		(674,279)	(7)	(590,200)	(7)
Research and development expenses		(515,828)	(5)	(576,685)	(7)
Expected credit impairment (losses) gains		(221)	-	(912)	-
Total Operating Expense		(1,745,608)	(18)	(1,698,280)	(20)
Operating profit		396,619	4	197,982	1
Non-operating income and expenses	6(18),7
Interest income		16,188	-	23,355	-
Other income		61,678	1	42,216	-
Other gains or losses		(7,766)	-	50,761	1
Financial costs		(173,616)	(2)	(179,565)	(2)
Share of profit or loss of subsidiaries and associates under equity method	6(7)	1,020,754	11	823,125	10
Subtotal		917,238	10	759,892	9
Pretax income from continuing operations		1,313,857	14	957,874	10
Income tax expenses	6(20)	(122,226)	(1)	(39,351)	-
Profit from continuing operations		1,191,631	13	918,523	10
Net income		1,191,631	13	918,523	10
Other comprehensive income (loss)	6(19)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation		(2,680)	-	(16,542)	-
Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income		(27,019)	-	(43,371)	(1)
Income tax related to items that will not be reclassified		1,918	-	(1,090)	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations		(164,700)	(2)	493,467	6
Income tax related to items that may be reclassified		25,090	-	(82,954)	(1)
Total other comprehensive income (loss), net of tax		(167,391)	(2)	349,510	4
Total comprehensive income		$1,024,240	11	$1,268,033	14
Earnings per share (NT$)	6(21)
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 parent company only financial statements.)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

For the years ended 31 December, 2025 and 2024

(Expressed in Thousand of New Taiwan Dollars)

| Items | Capital
Common stock | Capital surplus | Retained earnings | | | Other Components of Equity | | | Total Equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | 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 | |
| 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 |
| Appropriation and distribution of 2023 retained earnings | | | | | | | | | |
| Legal reserve | - | - | 83,321 | - | (83,321) | - | - | - | - |
| Cash dividend | - | - | - | - | (458,538) | - | - | - | (458,538) |
| Changes in equity of associates accounted for using equity method | - | 69,139 | - | - | - | - | - | - | 69,139 |
| Other changes in capital surplus | - | 5 | - | - | - | - | - | - | 5 |
| Net income in 2024 | - | - | - | - | 918,523 | - | - | - | 918,523 |
| Other comprehensive income (loss) in 2024 | - | - | - | - | (18,999) | 410,513 | (42,004) | - | 349,510 |
| Total comprehensive income (loss) | - | - | - | - | 899,524 | 410,513 | (42,004) | - | 1,268,033 |
| Difference between consideration given/received and carrying amount of interests in subsidiaries acquired through of disposed | - | (22,777) | - | - | - | - | - | - | (22,777) |
| Increase (decrease) through changes in ownership interests in subsidiaries | - | 18,654 | - | - | - | - | - | - | 18,654 |
| 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 |
| 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 |
| Appropriation and distribution of 2024 retained earnings | | | | | | | | | |
| Legal reserve | - | - | 89,996 | - | (89,996) | - | - | - | - |
| Cash dividend | - | - | - | - | (534,961) | - | - | - | (534,961) |
| Changes in equity of associates accounted for using equity method | - | 74,381 | - | - | - | - | - | (3,700) | 70,681 |
| Net income in 2025 | - | - | - | - | 1,191,631 | - | - | - | 1,191,631 |
| Other comprehensive income (loss) in 2025 | - | - | - | - | (3,329) | (139,610) | (24,452) | - | (167,391) |
| Total comprehensive income (loss) | - | - | - | - | 1,188,302 | (139,610) | (24,452) | - | 1,024,240 |
| Difference between consideration given/received and carrying amount of interests in subsidiaries acquired through of disposed | - | 29 | - | - | - | - | - | - | 29 |
| Increase (decrease) through changes in ownership interests in subsidiaries | - | (10,545) | - | - | - | - | - | - | (10,545) |
| 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 |

(The accompanying notes are an integral part of the parent company only financial statements.)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC.

PARENT COMPANY ONLY 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 flow from operating activities | | |
| Profit from continuing operations before tax | $1,313,857 | $957,874 |
| Adjustment items: | | |
| Revenue and expenses: | | |
| Depreciation | 497,604 | 518,347 |
| Amortization | 23,790 | 30,301 |
| Expected credit impairment losses | 221 | 912 |
| Net losses of financial assets or liabilities at fair value through profit or loss | 270 | 1,396 |
| Interest expense | 173,616 | 179,565 |
| Interest revenue | (16,188) | (23,355) |
| Dividend revenue | (6,522) | (2,858) |
| Share of (profit) of subsidiaries and associates accounted for using equity method | (1,020,754) | (823,125) |
| (Gain) loss on disposal of property, plant and equipment | (1,779) | 119 |
| Unrealized profit from sales | 32,931 | 28,234 |
| Realized (profit) on from sales | (28,234) | (41,671) |
| Others | (155,065) | 49,003 |
| Subtotal | (500,110) | (83,132) |
| Changes in operating assets and liabilities: | | |
| Changes in operating assets | | |
| Decrease in financial assets at fair value through profit or loss, mandatorily measured at fair value | 98,444 | 18,009 |
| (Increase) in notes receivable | (7,298) | (18,342) |
| (Increase) in accounts receivable | (280,459) | (194,539) |
| (Increase) in accounts receivable due from related parties | (95,597) | (103,694) |
| (Increase) decrease in other receivable | (2,039) | 62,981 |
| Decrease in other receivable due from related parties | 31,993 | 87,481 |
| Decrease in inventories | 234,863 | 299,838 |
| Adjustments for decrease (increase) in other current assets | 9,938 | (28,575) |
| Changes in operating liabilities | | |
| (Decrease) increase in contract liabilities | (652) | 180 |
| Increase (decrease) in accounts payable | 101,094 | (93,621) |
| Increase in accounts payable to related parties | 46,695 | 157,106 |
| Increase in other payable | 7,201 | 394,357 |
| Increase (decrease) in other current liabilities | 96,780 | (1,750) |
| (Decrease) in net defined benefit liability | (379) | (30,759) |
| Total changes in operating assets and liabilities | 240,584 | 548,672 |
| Cash inflow generated from operations | 1,054,331 | 1,423,414 |
| Interest received | 16,188 | 23,355 |
| Income tax (paid) | (96,461) | (50,629) |
| Net cash flows from operating activities | 974,058 | 1,396,140 |

(Continued)
(The accompanying notes are an integral part of the parent company only financial statements.)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC.

PARENT COMPANY ONLY 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 investing activities: | | |
| Acquisition of financial assets at fair value through other comprehensive income | - | (31,473) |
| Proceeds from disposal of financial assets at fair value through other comprehensive income | - | 3,817 |
| Acquisition of investments accounted for using equity method | (189,234) | (108,472) |
| Acquisition of property, plant, and equipment | (164,864) | (208,312) |
| Proceeds from disposal of property, plant and equipment | 5,340 | 30,810 |
| Increase in refundable deposits | (32,611) | - |
| Decrease in refundable deposits | - | 194,962 |
| Acquisition of intangible assets | (8,052) | (5,938) |
| Increase in other non-current assets | - | (100,886) |
| Decrease in other non-current assets | 3,567 | - |
| Increase in prepayments for business facilities | (50,959) | (64,814) |
| Dividends received | 916,507 | 255,843 |
| Net cash flows from (used in) investing activities | 479,694 | (34,463) |
| Cash flows from financing activities: | | |
| Increase in short-term loans | - | 213,085 |
| Decrease in short-term loans | (337,516) | - |
| Repayments of long-term debt | (262,048) | (882,887) |
| Payments of lease liabilities | (3,265) | (3,485) |
| Increase in other non-current liabilities | - | (3,387) |
| Decrease in other non-current liabilities | 12,620 | - |
| Cash dividends paid | (534,961) | (458,538) |
| Interest paid | (176,777) | (177,965) |
| Net cash flows (used in) financing activities | (1,301,947) | (1,313,177) |
| Net (decrease) in cash and cash equivalents | 151,805 | 48,500 |
| Cash and cash equivalents at beginning of period | 740,838 | 692,338 |
| Cash and cash equivalents at end of period | $892,643 | $740,838 |

(The accompanying notes are an integral part of the parent company only financial statements.)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

PANJIT INTERNATIONAL INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024

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

Company History

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 stock was officially listed for trading on the OTC market on December 22, 1999, and then listed on the Taiwan Stock Exchange on September 17, 2001.

Date and procedures of authorization of financial statements for issue

The parent company only financial statements of the Company for the years ended December 31, 2025 and 2024 were approved 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 Company 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 Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are endorsed by FSC, and not yet adopted by the Company 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" (IFRS 9) and IFRS 7 "Financial Instruments: Disclosures" (IFRS 7) - 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.
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 Company’s assessment.

(3) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are endorsed by FSC, and not yet adopted by the Company 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. Furthermore, if Taiwanese companies have a need to apply the policy ahead of schedule, they may choose to do so after approval from the Financial Supervisory Commission.

(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 restate the amounts in the prior period financial statements.

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.

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The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the company's financial statements were authorized for issue, and the local effective dates are to be determined by FSC. As the Company 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 Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

4. Summary of material accounting policies

(1) Statement of compliance

The parent company only financial statements of the Company for the years ended 31 December 2025 and 2024 have been prepared in accordance with "Regulations Governing the Preparation of Financial Reports by Securities Issuers".

(2) Basis of Preparation

The Company has prepared these parent company only financial statements in accordance with the "Regulations Governing the Preparation of Financial Statements by Securities Issuers." As stipulated in Article 21 of "Preparation Standards of Financial Statements for Securities Issuers, the current gain or loss and other comprehensive income in the Parent Company Only Financial Statements shall be the same as the allocation of other comprehensive income attributable to the parent company owners in the combined Financial Statements, and the owners' equity in the Parent Company Only Financial Statements shall be the same as the equity attributable to the parent company's owners in the combined Financial Statements. Therefore, investments in subsidiaries are expressed in Parent Company Only Financial Statements as "investments by equity method", and necessary evaluation adjustments are made.

The parent company only financial statements are prepared on the basis of historical cost, except for financial instruments measured by fair value. The unit for all amounts expressed in the parent company only financial statements are in thousands of NTD unless otherwise stated.

(3) Foreign currency transaction

The Company's parent company only financial statements present the NT dollars as the functional currency. Foreign currency transaction is translated into functional currency according to the exchange rate of the transaction date. At the end of each reporting period, monetary items in foreign currencies are converted at the closing exchange rate of that day; Foreign currency items measured at fair value are translated according to the exchange rate on the date of fair value, and foreign currency non-currency items measured through historical cost will be translated according to the exchange rate on the original date of transaction.

Except for the following, the exchange difference arising from the delivery or conversion of monetary items is recognized as gain or loss in the current period:

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(a) For the foreign currency borrowing in order to obtain the assets that meet the requirements, if the conversion difference incurred is regarded as an adjustment to the interest cost, it is a part of the borrowing cost and capitalized as the cost of the asset.

(b) Foreign currency items applicable to IFRS 9, “Financial Instruments” shall be handled in accordance with the accounting policies of financial instruments.

(c) For monetary items that form part of the reporting entity’s net investment in foreign operating institutions, the resulting exchange difference was originally recognized as other comprehensive income, and when the net investment is disposed of, it is reclassified from equity to gain or loss.

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.

(4) Translation of financial statements in foreign currency

Each foreign operation of the Company determines its own functional currency, and uses that functional currency to measure its financial statements. When preparing parent company only financial statements, the assets and liabilities of foreign operation are converted into New Taiwan dollars at the closing exchange rate on the balance sheet date, and income and expenditure items are converted at the current average exchange rate. The conversion difference arising from the conversion is recognized as other comprehensive income, and the cumulative conversion difference that has been previously recognized in other comprehensive income and accumulated in the individual components under equity when the foreign operation is disposed of, when the disposition gain or loss are recognized, shall be reclassified from equity to gain or loss. When involving the partial disposal of the loss of control of a subsidiary that includes a foreign operation, and after a partial disposal of the equity of an associate or joint agreement including the foreign operation, if the retained equity is a financial asset that includes the foreign operation, it is also deemed to be disposal.

When disposing of a subsidiary that includes a foreign operation without losing control, the cumulative conversion difference recognized in other comprehensive income is adjusted by “investment by equity method” on a pro rata basis, and not recognized as gain or loss; Under influence or joint control, when part of the disposition includes an associate or joint agreement of a foreign operation, the accumulated exchange difference will be reclassified to gain or loss on a pro rata basis.

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.

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(5) Classification Standard for Distinguishing Current and Non-current Assets and Liabilities

An asset is classified as current when:

(a) The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(b) The Company holds the asset primarily for the purpose of trading;
(c) The Company expects to realize the asset within twelve months after the reporting period; or
(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 Company expects to settle the liability in its normal operating cycle;
(b) The Company holds the liability primarily for the purpose of trading;
(c) The liability is due to be settled within twelve months after the reporting period; or
(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.

(6) 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.

(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company became 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.

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A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company 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:

(a). the Company’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 receivables, accounts receivables, 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 Company 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 Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

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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.

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 Company 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 Company 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 Company 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.

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Financial assets measured 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.

B. Impairments of financial assets

The Company 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 Company 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 Company 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 Company 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 Company measures the loss allowance at an amount equal to lifetime expected credit losses.

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At each reporting date, the Company 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:

(a) The rights to receive cash flows from the asset have expired;
(b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred;
(c) The Company 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 Company 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 Company evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Company 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.

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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.

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 measured 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:

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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.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans 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.

(8) Derivative instruments.

The Company 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.

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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.

(9) 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 Company.

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 Company 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.

(10) 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 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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(11) 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 parent company only 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 Company 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.

(12) Investments accounted for using the equity method

The Company’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 Company has significant influence. A joint venture refers to the Company that has rights to the net assets of the joint agreement (with joint control).

Under the equity method, investment in an associate or joint venture is recognized in the balance sheet, which is the amount recognized by the Company based on cost plus the amount of the change in the net assets of the associate or joint venture after acquisition in shareholding ratio. After the carrying amount of the associate or joint venture investment and other related long-term equity is reduced to zero using the equity method, additional losses and liabilities are recognized within the scope of legal obligations, constructive obligations, or payments made on behalf of the associate. Unrealized gains and losses arising from transactions between the Company and associates or joint ventures shall be eliminated according to the proportion of its equity in the associates or joint ventures.

When changes in the net assets of an associate or joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Company’s percentage of ownership interests in the associate, the Company 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 of the associate or joint venture on a pro-rata basis.

When the associate issues new stock, and the Company’s interest in an associate or joint venture is reduced or increased as the Company 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 or joint venture is recognized in Additional Paid in Capital and Investment in associate or joint venture. 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 or loss on a pro-rata basis when the Company disposes the associate or joint venture.

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

The Company 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 Company 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 Company 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.

When it loses significant influence on the associate or joint control of the joint venture, the Company measures and recognizes the retained investment portion at fair value. In the event of loss of significant influence or joint control, the difference between the carrying amount of the investment associate or joint venture and the fair value of the retained investment plus the proceeds from the disposal is recognized as gain or loss. In addition, when 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 Company continues to apply the equity method without re-evaluating the retained equity.

(13) 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 Company 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.

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

~27~

Assets	Useful life
Buildings	4~51 years
Machinery and equipment	1~15 years
Transportation equipment	5 years
Utilities equipment	6~15 years
Office equipment	1~6 years
Other equipment	1~25 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.

(14) Lease

The Company 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 Company 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 Company 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 Company 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 Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

The Company as a lessee

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

~28~

At the commencement date, the Company 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 Company 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 Company 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 Company 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 Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company 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 Company applies IAS 36 "Impairment of Assets" to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

~29~

Except for those leases that the Company accounted for as short-term leases or leases of low-value assets, the Company 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 Company 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.

The Company as a lessor

At inception of a contract, the Company 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 Company 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 Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straight-line 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.

(15) 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.

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.

~30~

Gains or losses arising from derecognition of an intangible asset are recognized in gain or loss.

Accounting policies of the Company’s intangible assets are summarized as follows:

	Computer software	Other intangible assets
Useful life	Finite (1~5 years)	Finite (5~10 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
Internally generated or acquired	Acquired	Acquired

(16) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. 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.

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 Company 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.

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

(17) Provisions

Provisions are recognized when the Company 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 Company 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.

The liability to pay a levy is recognized progressively if the obligating event occurs over a period of time.

~31~

(18) Treasury shares

The Company and its subsidiaries own the shares of the Company (treasury stocks) are recognized at repurchase cost and deducted from equity. Any difference between the carrying amount and the consideration is recognized in equity.

(19) Revenue recognition

The Company’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 Company manufactures and sells products, and recognizes revenue when the promised product is delivered to the customer and the customer obtains its control (that is, the customer’s ability to control the use of the product and obtain almost all the remaining benefits of the product.) The main product is Power Discrete and the revenue is recognized based on the consideration stated in the contract.

The credit period of the Group’s sale of goods is from 60 to 120 days. For most of the contracts, when the Company 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 Company 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 Company 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 Company 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 Company 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 Company 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 Company didn’t adjust the transaction price for the time value of money.

(20) 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.

(21) Government grants

~32~

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 Company 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.

(22) Post-employment benefits

All regular employees of the Company 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. Therefore fund assets are not included in the Company's parent company only financial statements.

For the defined contribution plan, the Company 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.

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 Company 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.

(23) 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.

~33~

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders' meeting.

Deferred income 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:

a. When 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 that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences;

b. In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when 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:

a. 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 that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences;

b. In respect of deductible temporary differences associated with investments in subsidiaries, associates and 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 Company 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.

~34~

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.

5. Significant accounting judgments, estimates and assumptions

The preparation of the Company’s parent company only 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 Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the parent company only financial statements:

Certain properties of the Company 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 income method (such as discounted cash flow model) or market method. Assuming changes will affect the fair value of the reported financial instruments. Please refer to Note 12 for more details.

~35~

(b) Impairment of non-financial assets

An impairment occurs when the carrying amount of an asset or cash-generating unit is greater than its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to dispose or value in use. The fair value minus the cost of disposal is calculated based on the price of a binding sales agreement or the market price of the asset under a normal transaction, after deducting the increase cost directly attributable to the disposal of the asset. The value in use calculation is based on a discounted cash flow model. The cash flow estimation is based on the budget for the next five years, and does not include the Company's uncommitted reorganization or future major investments needed to strengthen the asset performance of the tested cash-generating unit. The recoverable amount is easily affected by the discount rate used in the discounted cash flow model, as well as the expected future cash inflow and growth rate used for extrapolation purposes. Please refer to Note 6 for more details.

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 returns or allowance

The Company estimates sales returns and allowance based on historical experience and other known factors at the time of sale, which reduces the operating revenue. In assessing the aforementioned sales returns and allowance, revenue is recognized to the extent it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Please refer to Note 6 for more 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 Company 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 Company's domicile.

~36~

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) Receivables — estimation of impairment loss

The Company 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.

(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.

Contents of significant accounts

(1) Cash and cash equivalents

	31 Dec. 2025	31 Dec. 2024
Cash on hand	$210	$210
Checking, demand deposits and time deposits (Note)	892,433	740,628
Total	$892,643	$740,838

(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 measured at fair value through profit or loss — current

	31 Dec. 2025	31 Dec. 2024
Mandatory measured at fair value through profit or loss:
Notes and bills	$—	$98,355

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	$36,060	$76,133
Unlisted companies stocks	55,109	49,916
Total	$91,169	$126,049

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

(4) Notes receivables

	31 Dec. 2025	31 Dec. 2024
Notes receivable arising from operating activities	$48,989	$41,691
(Less): loss allowance	(-)	(-)
Total	$48,989	$41,691

Notes receivables of the Company were not pledged.

The Company follows the requirement of IFRS 9 to assess the impairment. Please refer to Note 6.(15) for more details on loss allowance and Note 12 for details on credit risk management.

(5) Accounts receivables and Accounts receivables due from related parties

	31 Dec. 2025	31 Dec. 2024
Accounts receivable	$2,188,965	$1,908,506
(Less): loss allowance	(20,512)	(20,291)
Subtotals	2,168,453	1,888,215
Accounts receivable due from related parties	641,298	545,701
Total	$2,809,751	$2,433,916

Accounts receivables of the Company were not pledged.

Accounts receivables of the Company are generally on 30 to 150 day terms. The total carrying amount as of 31 December 2025 and 31 December 2024 were NT$2,830,263 thousand and NT$2,454,207 thousand respectively. Please refer to Note 6.(15) 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.

(6) Inventories

	31 Dec. 2025	31 Dec. 2024
Raw materials	$459,666	$562,844
Work in process	78,122	74,482
Finished goods	741,473	684,385
Total	$1,279,261	$1,321,711

The Company recognized inventory costs of NT$7,476,162 thousand as expenses for the year ended 31 December 2025, including the reversal of write-down of inventories of NT$192,413 thousand. The reversal was primarily the decrease in the required allowance for inventory valuation impairment, resulting from factors including price recoveries, sales, or usage of certain inventory for which allowance for inventory impairment had been provided at the beginning of the year.

The Company’s cost of inventories recognized in expenses amounted to NT$6,771,715 thousand for the year ended 31 December 2024, in operating costs, of which NT$34,646 thousand were related to the valuation loss of inventories.

(7) Investments accounted for using the equity method

Details of the Company’s investment by equity method is as follows:

Investees	31 Dec. 2025		31 Dec. 2024
	Carrying amount	Percentage of ownership (%)	Carrying amount	Percentage of ownership (%)
Investee subsidiaries:
PAN-JIT ASIA INTERNATIONAL INC.	$8,056,811	100.00%	$8,034,808	100.00%
Pynmax Technology Co., Ltd.	1,380,980	94.65%	1,417,558	94.64%
Champion Microelectronic Corp. (Note 1)	1,942,795	30.84%	1,913,846	30.68%
AIDE ENERGY EUROPE
COÖPERATIE U.A.	980,562	100.00%	867,728	100.00%
PAN-JIT INTERNATIONAL (H.K.)
LTD.	56,113	100.00%	130,092	100.00%
PANJIT JAPAN Inc.	(3,800)	55.00%	485	55.00%
PAN-JIT JAPAN INVESTMENT
HOLDING CORPORATION(Note 2)	1,919	100%	—	—
PANJIT KOREA CO., LTD.	38,154	60.00%	33,033	60.00%
PANJIT Investment Co., Ltd.	141,196	100.00%	23,796	100.00%
Investment in associates:
Alltop Technology Co., Ltd.	1,764,889	17.36%	1,721,772	17.80%
MILDEX OPTICAL INC.	224,324	20.61%	241,625	21.01%
Total	$14,583,943		$14,384,743

(Note 1): 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 2): The Company established PAN-JIT Japan Investment Holding Corporation in January 2025 and completed the registration procedures in April 2025.

(a) Investee subsidiaries are expressed in parent company only financial statements as "investments by equity method", and necessary evaluation adjustments are made.

(b) Information on material related enterprises to the Company:

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 Company's targeted business areas. The Company 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.

Fair value of the investment in the associate when there is a quoted market price for the investment: ALLTOP TECHNOLOGY CO., LTD. is a 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 Company's interest in the associate:

	31 Dec. 2025
Assets	$7,270,064
Liabilities	(3,059,449)
Equity	4,210,615
Proportion of the Company's ownership	17.36%
Subtotal	730,963
Goodwill	1,029,817
Patents	4,109
Carrying amount of the investment	$1,764,889

The summarized financial information was as follows:

	31 Dec. 2025	31 Dec. 2024
Operating revenue	$3,928,253	$3,211,246
Profit of continuing operations	$1,105,692	$1,020,753
Other comprehensive income (post-tax)	($41,965)	$156,653
Total comprehensive income	$1,063,727	$1,177,406

The Company's investments in MILDEX OPTICAL INC. are not individually material. The aggregate carrying amount of the Company's interests in MILDEX OPTICAL INC. is NT$224,324 thousand and NT$241,625 thousand as at 31 December 2025 and 2024, respectively. The aggregate financial information of the Company's investments in associates is as follows:

	31 Dec. 2025	31 Dec. 2024
Profit of continuing operations	$2,671	$6,543
Other comprehensive income (post-tax)	(14,671)	15,227
Total comprehensive income	($12,000)	$21,770

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$392,685 thousand as of 31 December 2025.

The subsidiaries and associates had no contingent liabilities or capital commitments, and no pledges.

The share of profit or loss of subsidiaries and associates accounted for using equity method for the years ended 31 December 2025 and 2024 is as follows:

Investees	For the years end 31 December
	2025	2024
PAN-JIT ASIA INTERNATIONAL INC.	$627,747	$409,744
Pynmax Technology Co., Ltd.	130,753	132,660
MILDEX OPTICAL INC.	2,671	6,543
Alltop Technology Co., Ltd.	168,504	164,914
Champion Microelectronic Corp.	83,399	59,305
PAN-JIT INTERNATIONAL (H.K.) LTD.	12,306	13,888
PANJIT JAPAN Inc.	(4,369)	(9,129)
PAN-JIT JAPAN INVESTMENT HOLDING CORPORATION	(94)	—
PANSTAR SEMICONDUCTOR CO., LTD	—	(1,248)
AIDE ENERGY EUROPE COÖPERATIE U.A.	40,678	55,606
PANJIT Investment Co., Ltd.	(59,992)	(19,821)
MetaWeIIs Co., Ltd.	—	(39)
PANJIT KOREA CO., LTD.	19,151	10,702
Total	$1,020,754	$823,125

(8) Property, plant, and equipment

	31 Dec. 2025	31 Dec. 2024
Owner occupied property, plant and equipment	$4,560,667	$4,845,431
Property, plant and equipment leased out under operating leases	26,381	26,956
Total	$4,587,048	$4,872,387

i. Owner occupied property, plant and equipment

	Land	Buildings	Machinery and equipment	Utilities equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment awaiting examination	Total
Cost:
As at 1 Jan. 2025	$652,223	$1,250,687	$7,329,486	$39,768	$2,309	$67,293	$726,017	$69,706	$10,137,489
Additions	—	11,187	52,727	—	—	5,008	46,044	69,732	184,698
Disposals	—	—	(335,118)	—	—	—	(4,334)	—	(339,452)
Transfers	—	18,028	109,046	—	—	—	11,148	(76,451)	61,771
Loss on transfer	—	—	—	—	—	—	—	—	—
As at 31 Dec. 2025	$652,223	$1,279,902	$7,156,141	$39,768	$2,309	$72,301	$778,875	$62,987	$10,044,506
Depreciation and impairment:
As at 1 Jan. 2025	$—	($241,450)	($4,474,809)	($29,775)	($1,486)	($46,396)	($498,142)	$—	($5,292,058)
Depreciation	—	(41,799)	(380,560)	(1,560)	(443)	(6,858)	(62,600)	—	(493,820)
Disposals	—	—	334,430	—	—	—	1,461	—	335,891
Transfers	—	—	—	—	—	—	—	—	—
Loss on transfer	—	(3,315)	(29,730)	—	—	(40)	(767)	—	(33,852)
As at 31 Dec. 2025	$—	($286,564)	($4,550,669)	($31,335)	($1,929)	($53,294)	($560,048)	$—	($5,483,839)

	Land	Buildings	Machinery and equipment	Utilities equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment awaiting examination	Total
Cost:
As at 1 Jan. 2024	$652,223	$757,084	$5,754,831	$38,256	$2,309	$65,845	$615,393	$2,262,801	$10,148,742
Additions	—	1,212	79,322	1,512	—	2,316	40,897	45,776	171,035
Disposals	—	—	(188,281)	—	—	(3,437)	(437)	—	(192,155)
Transfers	—	492,391	1,684,487	—	—	2,569	72,899	(2,238,863)	13,483
Loss on transfer	—	—	(873)	—	—	—	(2,735)	(8)	(3,616)
As at 31 Dec. 2024	$652,223	$1,250,687	$7,329,486	$39,768	$2,309	$67,293	$726,017	$69,706	$10,137,489
Depreciation and impairment:
As at 1 Jan. 2024	$—	($198,552)	($4,215,865)	($28,320)	($1,024)	($43,662)	($444,725)	$—	($4,932,148)
Depreciation	—	(42,744)	(411,681)	(1,289)	(462)	(6,171)	(52,589)	—	(514,936)
Disposals	—	—	157,351	—	—	3,437	438	—	161,226
Transfers	—	1,771	—	—	—	—	—	—	1,771
Loss on transfer	—	(1,925)	(4,614)	(166)	—	—	(1,266)	—	(7,971)
As at 31 Dec. 2024	$—	($241,450)	($4,474,809)	($29,775)	($1,486)	($46,396)	($498,142)	$—	($5,292,058)
Net Carrying Value:
As at 31 Dec. 2025	$652,223	$993,338	$2,605,472	$8,433	$380	$19,007	$218,827	$62,987	$4,560,667
As at 31 Dec. 2024	$652,223	$1,009,237	$2,854,677	$9,993	$823	$20,897	$227,875	$69,706	$4,845,431

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

	Buildings
Cost:
As at 1 Jan. 2025	$28,727
Transfers	—
As at 31 Dec. 2025	$28,727
Depreciation and impairment:
As at 1 Jan. 2025	($1,771)
Depreciation	(575)
Transfers	—
As at 31 Dec. 2025	($2,346)
Cost:
As at 1 Jan. 2024	$—
Transfers	28,727
As at 31 Dec. 2024	$28,727
Depreciation and impairment:
As at 1 Jan. 2024	$—
Depreciation	(1,771)
Transfers	—
As at 31 Dec. 2024	($1,771)
Net carrying amount:
As at 31 Dec. 2025	$26,381
As at 31 Dec. 2024	$26,956

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

~44~

(9) Intangible assets

	Computer software	Other intangible assets	Total
Cost:
As at 1 Jan 2024	$48,583	$106,856	$155,439
Additions - separate acquisition	5,938	—	5,938
Disposals	(11,356)	(3,000)	(14,356)
Transfers	(61)	—	(61)
As at 31 Dec. 2024	43,104	103,856	146,960
Additions - separate acquisition	8,052	—	8,052
Disposals	(4,770)	(47,837)	(52,607)
As at 31 Dec. 2025	$46,386	$56,019	$102,405
Amortization:
As at 1 Jan 2024	$23,601	$61,374	$84,975
Amortization	9,859	20,442	30,301
Disposals	(11,356)	(3,000)	(14,356)
Transfers	(61)	—	(61)
As at 31 Dec. 2024	22,043	78,816	100,859
Amortization	9,587	14,203	23,790
Disposals	(4,770)	(47,837)	(52,607)
Loss on transfer	8	—	8
As at 31 Dec. 2025	$26,868	$45,182	$72,050
Net Carrying Amount as at:
31 Dec. 2025	$19,518	$10,837	$30,355
31 Dec. 2024	$21,061	$25,040	$46,101

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

	For the years ended 31 December
	2025	2024
Operating cost	$752	$1,866
Operating expenses	$23,038	$28,435

(10) Current borrowings

Details of the current borrowings are as follows:

Nature of borrowing	31 Dec. 2025	31 Dec. 2024
Unsecured bank loans	$2,210,005	$2,547,521
Interest rate range	1.75%~4.60%	1.75%~5.08%

The Company's unused current borrowings of credits amount to NT$6,690,584 thousand and NT$9,169,991 thousand, as at 31 December 2025 and 2024, respectively.

(11) Long-term borrowings

Details of the long-term borrowings are as follows:

Nature of borrowing	31 Dec. 2025	31 Dec. 2024
Syndicated Loans (A) (Note)	$3,000,000	$2,550,000
Project loans (B)	131,771	286,542
Project loans (C)	392,485	756,250
Project loans (D)	243,208	546,875
Project loans (E)	18,333	38,333
Unsecured bank loans	1,496,386	1,365,559
Subtotal	5,282,183	5,543,559
(Less): Unamortized cost of syndicated loan	(5,333)	—
(Less): Deferred government grants	(1,487)	(7,215)
(Less): Due within one year	(750,544)	(767,870)
Total	$4,524,819	$4,768,474
Interest rate range	1.53%~4.45%	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:

(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 NT$4,000,000 thousand, which can be used cyclically in accordance with this contract.

ii. Category 2: Commercial paper of NT$2,400,000 thousand, which can be used cyclically in accordance with this contract.

(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.

~46~

(B) 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 time 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 time 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.

(C) 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.

(D) 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

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.

(E) 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%.	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 1.725%.	Three-year grace period. After the grace period expires, the principal shall be paid back in monthly equal installments.

(12) Post-employment benefits

Defined contribution plan

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

Expenses under the defined contribution plan for the years ended 31 December 2025 and 2024 were NT$42,509 thousand and NT$43,814 thousand, respectively.

Defined benefit plan

The Company adopts 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 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 over-exposure 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$1,843 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 both 10 years.

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

	For the years ended 31 December
	2025	2024
Current period service costs	$350	$656
Net interest on the net defined benefit liabilities(assets)	814	721
Total	$1,164	$1,377

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

	31 Dec. 2025	31 Dec. 2024	1 Jan. 2025
Defined benefit obligation	$159,487	$158,869	$138,483
Plan assets at fair value	(107,449)	(109,399)	(77,412)
Other non-current liabilities – Defined benefit liabilities recognized	$52,038	$49,470	$61,071

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	$138,483	($77,412)	$61,071
Current period service costs	656	—	656
Net interest expense (income)	1,634	(913)	721
Past service cost and gains and losses arising from settlements	—	—	—
Subtotals	140,773	(78,325)	62,448
Remeasurements of the defined benefit liability (asset):
Actuarial gains and losses arising from changes in demographic assumptions	1,442	—	1,442
Actuarial gains and losses arising from changes in financial assumptions	13,805	—	13,805
Experience adjustments	3,806	—	3,806
Remeasurements of the defined benefit asset	—	(6,767)	(6,767)
Subtotals	19,053	(6,767)	12,286
Benefit paid	(957)	957	—
Contributions by employer	—	(25,264)	(25,264)
As at 31 Dec. 2024	$158,869	($109,399)	$49,470
Current period service costs	350	—	350
Net interest expense (income)	2,619	(1,805)	814
Past service cost and gains and losses arising from settlements	—	—	—
Subtotals	161,838	(111,204)	50,634
Remeasurements of the defined liabilities/asset:
Actuarial gains and losses arising from changes in demographic assumptions	1	—	1
Actuarial gains and losses arising from changes in financial assumptions	3,873	—	3,873
Experience adjustments	6,483	—	6,483
Remeasurements of the defined benefit asset	—	(7,111)	(7,111)
Subtotals	10,357	(7,111)	3,246
Benefit paid	(12,708)	12,708	—
Contributions by employer	—	(1,842)	(1,842)
As at 31 Dec. 2025	$159,487	($107,449)	$52,038

The following main assumptions are used to determine the Company's defined benefit plan:

	31 Dec. 2025	31 Dec. 2024
Discount rate	1.41%	1.65%
Expected rate of salary increases	3.00%	3.00%

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%	$—	$7,901	$—	$7,634
Discount rate decrease by 0.5%	$8,575	$—	$8,273	$—
Future salary increase by 0.5%	$8,394	$—	$8,119	$—
Future salary decrease by 0.5%	$—	$7,821	$—	$7,574

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.

(13) Equities

A. Common stock

As at 31 December 2025 and 2024, the Company's authorized capital were NT$6,000,000 thousand, and issued capital were NT$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 31 Dec. 2025, there were The Company no outstanding shares.

B. Capital surplus

Items	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
Employee stock option	24,527	24,527
Restricted stocks for employees	694	694
Share of changes in net assets of associates accounted and joint ventures for using the equity method	256,301	181,920
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. Retained earnings and dividend policies

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.

~52~

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.

The special reserve upon first adoption amounted to NT$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 NT$200,400 thousand.

~53~

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

	Appropriation of earnings		Dividend per share (NT$)
	2025	2024	2025	2024
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.(17) for details on employees' compensation and remuneration to directors.

(14) Operating revenue

Revenue from contracts with customers

	For the years end 31 December
	2025	2024
Sales of goods	$9,623,086	$8,654,540

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

A. Disaggregation of revenue

The Company is a single operating segment. Sales of goods amounted to NT$9,623,086 thousand and NT$8,654,540 thousand for the years ended 31 December 2025 and 2024, respectively, which were recognized as revenue at a certain point in time.

B. Contract balance

Contract liabilities – current

	31 Dec. 2025	31 Dec. 2024
Sales of goods	$103	$755

The changes in the balance of contract liabilities of the Company during the years ended 31 December 2025 and 2024 were due to the fact that some of the performance obligations have been satisfied to be reclassified to increase in revenue and some of the receipts in advance are returned due to unfulfilling performance obligations.

(15) Expected credit impairment (losses)

	For the years ended 31 December
	2025	2024
Operating expenses - expected credit impairment losses
Accounts receivable	($221)	($912)

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

The Company measures the loss allowance of its receivables (including note receivables and accounts receivables) at an amount equal to lifetime expected credit losses. The assessment of the Company’s loss allowance as at 31 December 2025 and 2024 are as follows:

The Company’s 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 1) | 91-180 days | 181-270 days | 271-360 days | Over 361 days | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Gross carrying amount | $2,055,728 | $173,660 | $4,144 | $6 | $4,416 | $2,237,954 |
| Loss rate | 0.33% | 5% | 20% | 50% | 100% | |
| Lifetime expected credit losses | (6,581) | (8,683) | (829) | (3) | (4,416) | (20,512) |
| Carrying amount | $2,049,147 | $164,977 | $3,315 | $3 | $— | $2,217,442 |

As at 31 Dec. 2024

| | 1-90 days
(Note 1) | 91-180 days | 181-270 days | 271-360 days | Over 361 days | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Gross carrying amount | $1,777,955 | $162,974 | $3,489 | $320 | $5,459 | $1,950,197 |
| Loss rate | 0.33% | 5% | 20% | 50% | 100% | |
| Lifetime expected credit losses | (5,825) | (8,149) | (698) | (160) | (5,459) | (20,291) |
| Carrying amount | $1,772,130 | $154,825 | $2,791 | $160 | $— | $1,929,906 |

(Note 1): Notes receivable included. All notes receivable of the Company are not overdue.

(Note 2): Accounts receivable due from related parties not included. The Company’s accounts receivable due from related parties are not overdue.

The movement in the provision of impairment of accounts receivables during the years ended 31 Dec. 2025 and 2024 are as follows:

	Accounts receivable
As at 1 Jan. 2025	$20,291
Additional/(reversal) for the current period	221
Write off	—
As at 31 Dec. 2025	$20,512
As at 1 Jan. 2024	$19,379
Additional/(reversal) for the current period	912
Write off	—
As at 31 Dec. 2024	$20,291

(16) Lease

The Company as a lessee

The Company leases various properties, including real estate such as land and buildings, and transportation equipment. The lease terms range from 2 to 5 years.

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

A. The amounts recognized in the balance sheet are:

(a) Right-of-use assets

The carrying amount of right-of-use assets

	31 Dec. 2025	31 Dec. 2024
Land	$1,858	$1,858
Buildings	3,818	2,723
Transportation equipment	278	912
Total	$5,954	$5,493

The Company added NT$5,263 thousand and NT$5,523 thousand to the right-of-use assets from January 1 to December 31, 2025 and 2024, respectively.

(b) Lease liabilities

	31 Dec. 2025	31 Dec. 2024
Current	$2,766	$3,017
Non-current	3,210	2,495
Total	$5,976	$5,512

Please refer to Note 6.(18)(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. Amount recognized in statement of comprehensive income

Depreciation charge for right-of-use assets

	For the years ended 31 December
	2025	2024
Land	$796	$780
Buildings	1,490	1,421
Transportation equipment	923	1,155
Other assets	—	55
Total	$3,209	$3,411

C. Income and costs relating to leasing activities

	For the years ended 31 December
	2025	2024
The expenses relating to short-term leases	$2,512	$3,122
The expenses relating to leases of low-value assets
(Not including the expenses relating to short-term leases of low-value assets)	$311	$99
The expenses relating to variable lease payments not included in the measurement of lease liabilities	$12	$16

D. Cash outflow relating to leasing activities

During the years ended 31 December 2025 and 2024, the Company's total cash outflows for leases amounting to NT$6,100 thousand and NT$6,722 thousand, respectively.

E. Other information related to leasing activities

Extension and termination options

Some of the Company's property rental agreement contain extension and termination options. In determining the lease terms, the non-cancellable period for which the Company has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company 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 Company. After the commencement date, the Company 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 Company 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.

~57~

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

| Function
Nature | For the year ended 31 Dec. 2025 | | | For the year ended 31 Dec. 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating costs | Operating expenses | Total amount | Operating costs | Operating expenses | Total amount |
| Employee benefit expense | | | | | | |
| Salaries | $550,830 | $705,825 | $1,256,655 | $521,054 | $607,585 | $1,128,639 |
| Labor and health insurance | $75,630 | $43,182 | $118,812 | $69,516 | $43,711 | $113,227 |
| Pension | $23,758 | $19,915 | $43,673 | $24,498 | $20,693 | $45,191 |
| Compensation of the directors | $— | $24,538 | $24,538 | $— | $18,500 | $18,500 |
| Other employee benefits expenses | $60,198 | $24,161 | $84,359 | $59,008 | $22,748 | $81,756 |
| Depreciation | $332,196 | $165,408 | $497,604 | $368,585 | $149,762 | $518,347 |
| Amortization | $752 | $23,038 | $23,790 | $1,866 | $28,435 | $30,301 |

Note: The number of employees in this year and the previous year was 1,474 and 1,477 respectively, of which the number of directors who were not concurrently employees were both 7.

Companies whose stocks have been listed on the stock exchange should also disclose the following information:

A. The average employee benefit expense in the current year was NT$1,025 thousand. The average employee benefit expense in the previous year was NT$931 thousand.
The average employee salary expense in the current year was NT$857 thousand. The average employee salary expense in the previous year was NT$768 thousand.
B. Change in average employee salary cost adjustment increased by 12%.
C. The Company has set up an audit committee to replace the supervisor, so the Company's supervisors remuneration for the years ended 31 December 2025 and 2024 were both NT$0.
D. The Company's salary and compensation policy:

(a) Directors:

The Company's directors remuneration is in accordance with the Article of Association, Article 16: "The remuneration of all directors, regardless of profit or loss, may be agreed upon by the authorized board meeting according to the usual standards of the industry" and Article 19: "If the Company makes profits during the year, no more than 2% should be proposed for directors remuneration. The proposal shall be drafted and reviewed by the Re-numeration Committee in consideration of the participation in the Company's operations, contribution value and overall company operating performance, and submitted to the Board of Directors for discussion.

~58~

(b) Managerial officers and employees:

The salary and compensation of the Company’s managerial officers and employees refer to the common level of the industry's payment level and consider the time invested by the individual, the responsibilities, degrees of achieving personal goals, performance in other positions, the Company's salary and compensation to the same position in recent years, and the Company’s overall operating conditions, etc. Also, the company’s Articles of Association, Article 19: "If the Company makes a profit during the year, no less than 6% shall be allocated for employee compensation" shall be followed. The managerial officers’ compensation must be reviewed by the remuneration committee and submitted to the Board of Directors for discussion; the employees compensation shall be submitted to the responsible supervisor for approval in accordance with the Company’s hierarchical authorization rules.

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

~59~

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.

(18) Non-operating income and expenses

A. Interest revenue

	For the year ended 31 December
	2025	2024
Financial assets measured at amortized cost	$16,188	$23,355

B. Other income

	For the year ended 31 December
	2025	2024
Rental income	$9,575	$8,956
Dividend income	6,522	2,858
Other income	45,581	30,402
Total	$61,678	$42,216

C. Other gain or loss

	For the year ended 31 December
	2025	2024
Gains on disposal of property, plant, and equipment	$1,779	$119
Foreign exchange gains (loss), net	(9,239)	57,437
Gains (losses) on financial assets / financial liabilities at fair value through profit or loss (Note)	(270)	(6,659)
Others	(36)	(136)
Total	($7,766)	$50,761

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

D. Financial costs

	For the year ended 31 December
	2025	2024
Interest on borrowings from bank	($173,548)	($179,516)
Interest on lease liabilities	(68)	(49)
Total	($173,616)	($179,565)

(19) Components of other comprehensive income (loss)

	For the year ended 31 December 2025
	Arising during the period	Arising Reclassification adjustments during the period	Other comprehensive income	Income tax income (expenses)	Carrying amount after tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	($2,680)	$—	($2,680)	($649)	($3,329)
Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income	(27,019)	—	(27,019)	2,567	(24,452)
To be reclassified to profit or loss in subsequent periods:
Exchange differences resulting from translating the financial statements of a foreign operation	(164,700)	—	(164,700)	25,090	(139,610)
Total	($194,399)	$—	($194,399)	$27,008	($167,391)
	For the year ended 31 December 2024
	Arising during the period	Arising Reclassification adjustments during the period	Other comprehensive income	Income tax income (expenses)	Carrying amount after tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	($16,542)	$—	($16,542)	($2,457)	($18,999)
Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income	(43,371)	—	(43,371)	1,367	(42,004)
To be reclassified to profit or loss in subsequent periods:
Exchange differences resulting from translating the financial statements of a foreign operation	493,467	—	493,467	(82,954)	410,513
Total	$433,554	$—	$433,554	($84,044)	$349,510

(20) Income tax

A. Income tax expense (income) recognized in profit or loss

	For the years ended 31 December
	2025	2024
Current income tax expense:
Current income tax expense	$138,540	$43,728
Adjustments in respect of current income tax of prior periods	(20)	(5,000)
Deferred income tax (gain):
Deferred income tax (gain) related to the original creation and reversal of temporary differences	(16,294)	623
Income tax expense	$122,226	$39,351

B. Income tax relating to components of other comprehensive income

	For the years ended 31 December
	2025	2024
Deferred income tax expense (income):
Exchange differences resulting from translating the financial statements of a foreign operation	($25,090)	$82,954
Remeasurements of defined benefit plans	649	2,457
Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income	(2,567)	(1,367)
Income tax related to other comprehensive income components	($27,008)	$84,044

C. Reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

	For the years ended 31 December
	2025	2024
Accounting profit before tax from continuing operations	$1,313,857	$957,874
Income tax calculated at statutory tax rate	$262,771	$191,575
Tax effect of revenues exempt from taxation	43,836	(69,098)
Tax effect of deferred tax assets/liabilities	(186,000)	(78,126)
Income tax on undistributed surplus	7,000	—
Adjustments in respect of current income tax of prior periods	(20)	(5,000)
Others	(5,361)	—
Total income tax expense recognized in profit or loss	$122,226	$39,351

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	Ending balance
Temporary difference
Allowance for inventory valuation losses	$126,039	($38,483)	$—	$87,556
Unrealized exchange gains (losses)	(17,977)	7,988	—	(9,989)
Share of profit (loss) of subsidiaries accounted for using the equity method	20,223	45,649	—	65,872
Changes in ownership interests of subsidiaries for using equity method	(71,014)	—	—	(71,014)
Exchange differences resulting from translating the financial statements of a foreign operation	(11,228)	—	25,090	13,862
Net defined benefit liabilities non-current	9,894	1,163	(649)	10,408
Others	26,502	(23)	2,567	29,046
Deferred tax (expenses)		$16,294	$27,008
Net deferred tax assets (liabilities)	$82,439			$125,741
Below is the information contained in the balance sheet:
Deferred tax assets	$183,057			$206,744
Deferred tax liabilities	($100,618)			($81,003)

~63~

For the year ended 31 December 2024

	Beginning balance	Recognized in gain or loss	Recognized in other comprehensive income	Ending balance
Temporary difference
Allowance for inventory valuation losses	$118,413	$7,626	$—	$126,039
Unrealized exchange gains (losses)	2,423	(20,400)	—	(17,977)
Share of profit (loss) of subsidiaries accounted for using the equity method	7,891	12,332	—	20,223
Changes in ownership interests of subsidiaries for using equity method	(71,014)	—	—	(71,014)
Exchange differences resulting from translating the financial statements of a foreign operation	71,726	—	(82,954)	(11,228)
Depreciation difference for tax purpose	(81)	81	—	—
Net defined benefit liabilities non-current	12,214	137	(2,457)	9,894
Others	25,534	(399)	1,367	26,502
Deferred tax (expenses)		($623)	($84,044)
Net deferred tax assets (liabilities)	$167,106			$82,439
Below is the information contained in the balance sheet:
Deferred tax assets	$239,581			$183,057
Deferred tax liabilities	($72,475)			($100,618)

E. Unrecognized deferred tax assets

As of 31 December 2025, and 2024, the Company's unrecognized deferred income tax assets were both NT$118,500 thousand.

F. Situations of income tax declaration and verification

As of December 31, 2025, the Company's income tax declaration was approved to FY 2023.

(21) 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
Net Income (NT$ thousands)	$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
Net profit of the current period after adjusting the dilution effect (thousand)	$1,191,631	$918,523
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	382,115	382,115
Effect of dilution:
Employee compensation—stock (in thousands)	1,394	1,537
Weighted average number of ordinary shares outstanding after dilution (in thousand)	383,509	383,652
Diluted earnings per share (NT$)	$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 Company and related parties during the reporting periods:

Name and Relationship of Related Parties

Name of related parties	Relationship with the Company
PAN-JIT ASIA INTERNATIONAL INC.	The Company's subsidiary
PAN JIT AMERICAS, INC.	The Company's subsidiary
PAN-JIT INTERNATIONAL (H.K.) LTD.	The Company's subsidiary
PAN JIT KOREA CO., LTD.	The Company's subsidiary
PAN JIT EUROPE GMBH	The Company's subsidiary
EC SOLAR C1 SRL	The Company's subsidiary
PANJIT JAPAN Inc.	The Company's subsidiary
PAN-JIT JAPAN INVESTMENT HOLDING CORPORATION	The Company's subsidiary
CONTINENTAL LIMITED	The Company's subsidiary
JOYSTAR INTERNATIONAL CO., LTD.	The Company's subsidiary
Grande Electronics (Suzhou) Co., Ltd.	The Company's subsidiary
PAN JIT Electronics (Wuxi) Co., Ltd.	The Company's subsidiary
Pynmax Technology Co., Ltd.	The Company's subsidiary
Champion Microelectronic Corp.	The Company's subsidiary
PANSTAR SEMICONDUCTOR CO., LTD	The Company's subsidiary
MetaWeIIs Co., Ltd.	The Company's subsidiary
PANJIT ELECTRONICS (SHANDONG) CO., LTD.	The Company's subsidiary
PANJIT SEMICONDUCTOR (XUZHOU) CO., LTD.	The Company's subsidiary
MILDEX OPTICAL INC.	Other related parties
Zibo Micro Commercial Component Corp.	Other related parties
Mr. FANG, MING-CHING etc. of 16 individuals	The management level above Deputy general manager of the Company

(1) Sales

	For the years ended 31 December
	2025	2024
PAN JIT Electronics (Wuxi) Co., Ltd.	$2,010,312	$1,739,454
Others	394,017	249,956
Total	$2,404,329	$1,989,410

The sales price from the Company to related parties is negotiated by both parties with reference to market conditions; the current year's circulating funds are unsecured, interest-free and must be settled in cash. No guarantee has been received for accounts receivable from related parties.

(2) Purchase

	For the years ended 31 December
	2025	2024
PAN JIT Electronics (Wuxi) Co., Ltd.	$2,124,895	$1,994,047
Pynmax Technology Co., Ltd.	544,873	429,295
Others	262,565	60,312
Total	$2,932,333	$2,483,654

The price of the Company's purchase of goods from related parties is negotiated by both parties with reference to market conditions; the Company's payment terms for purchases of goods from related parties are equivalent to those of ordinary manufacturers.

(3) Accounts receivable due from related parties

	31 Dec. 2025	31 Dec. 2024
PAN JIT Electronics (Wuxi) Co., Ltd.	$560,002	$518,765
Others	81,296	26,936
Total	$641,298	$545,701

(4) Other receivable - related parties (not loans)

	31 Dec. 2025	31 Dec. 2024
Pynmax Technology Co., Ltd.	$313	$32,258
JOYSTAR INTERNATIONAL CO., LTD.	4,330	—
Others	1,002	1,240
Total	$5,645	$33,498

(5) Other receivable (loans)

	31 Dec. 2025	31 Dec. 2024
EC SOLAR C1 SRL	$—	$34,140
PANSTAR SEMICONDUCTOR CO., LTD	30,000	—
Total	$30,000	$34,140

(6) Accounts payable to related parties

	31 Dec. 2025	31 Dec. 2024
PAN JIT Electronics (Wuxi) Co., Ltd.	$443,542	$536,269
Pynmax Technology Co., Ltd.	218,304	159,718
PANJIT SEMICONDUCTOR (XUZHOU) CO., LTD.	76,734	—
Others	13,911	9,809
Total	$752,491	$705,796

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

	31 Dec. 2025	31 Dec. 2024
PAN JIT EUROPE GMBH	$102,118	$94,715
Others	15,810	13,688
Total	$117,928	$108,403

(8) Other payables to related parties (loans)

	31 Dec. 2025	31 Dec. 2024
PAN-JIT ASIA INTERNATIONAL INC.	$207,438	$360,635

(9) Rental income

	For the years ended 31 December
	2025	2024
MILDEX OPTICAL INC.	$1,271	$635

(10) Disposal of property, plant, and equipment

For the year ended 31 December 2025: None.

For the year ended 31 December 2024:

Name of related parties	Assets	Disposal price	Carrying Value	Gain (loss) on disposal
Pynmax Technology Co., Ltd.	Machinery and equipment	$30,482	$30,482	$—

(11) 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

(12) Others

A. Operating expenses

	For the years ended 31 December
	2025	2024
a. Commission expenditure
PAN JIT KOREA CO., LTD.	$63,448	$54,061
PAN JIT EUROPE GMBH	54,047	66,489
Others	35	—
Total	$117,530	$120,550

	For the year ended 31 December
	2025	2024
b. Manage shipping warehouse costs
PAN-JIT INTERNATIONAL (H.K.)
LTD.	$15,192	$10,266
	For the year ended 31 December
	2025	2024
c. Miscellaneous expenditure, consumables, etc.
PAN JIT AMERICAS, INC.	$41,419	$42,484
PANJIT JAPAN Inc.	16,150	-
Pynmax Technology Co., Ltd.	1,143	1,143
Others	12	-
Total	$58,724	$43,627

B. Financing provided to others

For the year ended 31 December 2025:

	Maximum Balance	Ending balance	Rate range	Interest income	Interest receivable at the end of current period
EC SOLAR C1 SRL	$216,420	$73,800	3.50%	$1,808	$—
PANSTAR
SEMICONDUCTOR CO., LTD	$30,000	$30,000	5.00%	$323	$127

For the year ended 31 December 2024:

	Maximum Balance	Ending balance	Rate range	Interest income	Interest receivable at the end of current period
EC SOLAR C1 SRL	$208,740	$102,420	5.00%	$5,313	$209

C. Financing provided to others (recognized as other payables to related parties)

	As at the year ended 31 December 2025
	Maximum Balance	Ending balance	Rate range	Interest expenses	Interest receivable at the end of current period
PAN-JIT ASIA
INTERNATIONAL INC.	$630,700	$628,600	0.00%	$—	$—

As at the year ended 31 December 2024

	Maximum Balance	Ending balance	Rate range	Interest expenses	Interest receivable at the end of current period
PAN-JIT ASIA INTERNATIONAL INC.	$591,660	$590,130	0.00%	$—	$—

D. Endorsements/guarantees

Details of endorsement/guarantee provided by the Company to subsidiaries’ borrowing are as follows:

	31 Dec. 2025	31 Dec. 2024
PAN-JIT ASIA INTERNATIONAL INC.	$2,671,550	$2,622,800
CONTINENTAL LIMITED	157,150	—
PANJIT JAPAN Inc.	20,080	20,990
Total	$2,848,780	$2,643,790

(13) Key management personnel compensation of the Company

	For the years ended 31 December
	2025	2024
Short-term employee benefits	$94,340	$79,167
Post-employment benefits	632	624
Total	$94,972	$79,791

8. Pledged assets

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

	Carrying amount
Items	31 Dec. 2025	31 Dec. 2024	Secured liabilities details
Other current assets	$60,096	$54,923	Financial products trade

9. Significant contingent liabilities and unrecognized contractual commitments

As at December 31, 2025 and 2024, the Company provided a guaranteed deposit for customs both in the amount of NT$10,000 thousand.

10. Significant Disaster Losses

None.

~71~

11. 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.

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	$—	$98,355
Financial assets at fair value through other comprehensive income	91,169	126,049
Financial assets measured at amortized cost	4,148,323	3,571,416
Total	$4,239,492	$3,795,820
Financial liabilities
	31 Dec. 2025	31 Dec. 2024
Financial liabilities measured at amortized cost:
Current borrowings	$2,210,005	$2,547,521
Payables	2,534,388	2,362,794
Long-term borrowings (including current portion)	5,275,363	5,536,344
Lease liabilities	5,976	5,512
Deposits Received	8,798	5,166
Subtotal	10,034,530	10,457,337
Financial liabilities at fair value through profit or loss:
Held for trading	3,770	3,411
Total	$10,038,300	$10,460,748

(2) Financial risk management objectives and policies

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

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

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Company 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 Company.

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

Interest Rate

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 Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt instrument investments at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

~72~

Sensitivity analysis of interest rate risk mainly focuses on interest rate risk insurance items at the end of the financial reporting period, including floating rate investments, floating rate borrowings and interest rate swap contracts.

Equity Price Risk

The Company holds domestic listed and unlisted equity securities, the fair value of which will be affected by the uncertainty of the future value of these investment targets. The listed and unlisted equity securities held by the Company belong to the category measured at fair value through other comprehensive income. The Company manages the price risk of equity securities by diversifying investment and setting limits for single and overall equity securities investment. The equity securities investment portfolio information needs to be regularly provided to the Company's senior management. The Board of Directors must review and approve all equity securities investment decisions.

The sensitivity analysis of the related risk changes is as follows:

For the years ended 31 December 2025

Risk	Change	Sensitivity to gain or loss (thousand)		Equity attribute (thousand)
Foreign currency	NTD/USD exchange rate +/- 1%	-/+	$21,407	$80,568
	NTD/EUR exchange rate +/- 1%	-/+	$1,344	$9,806
	NTD/HKD exchange rate +/- 1%	-/+	$ -	$561
Interest Rate	NTD market interest rate +/- 100 basis points	-/+	$65,998	$ -
Equity Price	Equity Price +/- 10%	+/-	$ -	$9,117
For the years ended 31 December 2024
Risk	Change	Sensitivity to gain or loss (thousand)		Equity attribute (thousand)
Foreign currency	NTD/USD exchange rate +/- 1%	-/+	$13,683	$80,348
	NTD/EUR exchange rate +/- 1%	-/+	$1,309	$8,677
	NTD/HKD exchange rate +/- 1%	+/-	$1	$1,301
	NTD/KRW exchange rate +/- 1%	-/+	$ -	$330
Interest Rate	NTD market interest rate +/- 100 basis points	-/+	$73,505	$ -
Equity Price	Equity Price +/- 10%	+/-	$9,836	$12,605

(4) Credit risk management

Credit risk is the risk that a counter party will not meet its obligations under a contract, leading to a financial loss. The Company 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.

~73~

Credit risk is managed by each business unit subject to the Company'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 the Company internal rating criteria etc. Certain counter parties credit risk will also be managed by taking credit enhancing procedures, such the Company for prepayment or insurance.

As of 31 December 2025 and 2024, receivables from top ten customers represent 32% and 39% of the total receivables of the Company, respectively. The credit concentration risk of other receivables is insignificant.

Credit risk from balances with banks, fixed income securities and other financial instruments is managed by the Company's treasury in accordance with the Company's policy. The Company only transacts with counter parties 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 Company maintains financial flexibility through contracts such as cash and cash equivalents, high-liquidity securities and bank loans. The following table summarizes the maturity of the payments contained in the remaining contracts for non-derivative financial liabilities during the agreed repayment period of the Company. It is compiled based on the earliest possible repayment date and based on its undiscounted cash flows. The amounts listed are also including agreed interest. For interest cash flows paid at floating interest rates, the undiscounted amount of interest is derived from the yield curve 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	$7,482,695	$34,150	$—	$—	$7,516,845
Accounts and other Payables	$2,534,388	$—	$—	$—	$2,534,388
Lease liabilities	$2,827	$1,981	$874	$437	$6,119
Deposits Received	$8,798	$—	$—	$—	$8,798
As at 31 Dec. 2024
Loans	$3,348,654	$3,941,463	$852,915	$—	$8,143,032
Accounts and other Payables	$2,362,794	$—	$—	$—	$2,362,794
Lease liabilities	$3,070	$2,515	$—	$—	$5,585
Deposits Received	$5,166	$—	$—	$—	$5,166

Derivative financial liabilities

	< 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
As at 31 Dec. 2024
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	$119,638	$—	$—	$—	$119,638
Forward currency contracts - outflows	($121,263)	$—	$—	$—	($121,263)
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:

	Current borrowings	Long-term borrowings	Lease liabilities	Total liabilities from financing activities
As at 1 Jan.2025	$2,547,521	$5,536,344	$5,512	$8,089,377
Cash flows	(337,516)	(262,048)	(3,265)	(602,829)
Non-cash changes	—	1,067	3,729	4,796
As at 31 Dec. 2025	$2,210,005	$5,275,363	$5,976	$7,491,344

Reconciliation of liabilities for the year ended 31 December 2024:

	Current borrowings	Long-term borrowings	Lease liabilities	Total liabilities from financing activities
As at 1 Jan.2024	$2,334,436	$6,417,761	$3,425	$8,755,622
Cash flows	213,085	(882,887)	(3,485)	(673,287)
Non-cash changes	—	1,470	5,572	7,042
As at 31 Dec.2024	$2,547,521	$5,536,344	5,512	$8,089,377

(7) Fair value of financial instruments

A. Valuation techniques and assumptions used to measure fair value

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 methods and assumptions used by the Company to measure or disclose the fair value of financial assets and financial liabilities are as follows:

a. The carrying amounts of cash and cash equivalents, receivables, other current assets, payables and other current liabilities are a reasonable approximation of the fair value, which is mainly due to the short maturity period of such instruments.

b. The fair value of financial assets and financial liabilities that are traded in an active market with standard terms and conditions is determined by reference to market quotes (including listed stocks, beneficiary certificates, bonds and futures, etc.).

c. The fair value of equity instruments without active market transactions (for example, private equity stocks of listed companies, public company shares without active markets, and unpublished company shares) is estimated by the market method, and is estimated for the fair value with the price and other relevant information (such as lack of liquidity discount factors, similar company stock price-to-earning ratio, similar company stock price-to-net worth ratio and other input values) of the same or comparable company equity instruments generated by market transactions.

d. The 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 counter party 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 carrying amount of the Company's financial assets and financial liabilities measured at amortized cost is a reasonable approximation of the fair value.

~76~

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 Company.

(8) Derivative instruments

The related information for the Company’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 Company 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 Company entered into exchange rate swap contract to manage its exposure to financial risk, but these contracts are not designated as hedging instruments.

The Company entered into the following forward exchange contracts and exchange rate swap contracts:

As at 31 Dec. 2025:	Items	Contract amount (thousand)	Due date
	Forward currency contracts	Sell USD 9,060	2026.01.05~2026.03.04
As at 31 Dec. 2024	Items	Contract amount (thousand)	Due date
	Forward currency contracts	Sell USD 3,730	2025.01.03~2025.01.21
	Exchange rate swap contract	Sell USD 5,520	2025.01.07~2025.01.10

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

For forward exchange and currency swaps contract transactions, it is mainly to avoid the risk of exchange rate and interest rate changes on net assets or net liabilities. There will be relative cash inflows or outflows at maturity, and working capital is sufficient to support, so there will be no significant cash flow risk.

(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 recognized in Parent Company Only Financial Statements on a repetitive basis, their classification is reassessed at the end of each reporting period to determine whether there will be a transfer between the levels of the fair value hierarchy.

B. Fair value measurement hierarchy of the Company's assets and liabilities

The Company does not have non-repetitive assets measured at fair value. The fair value level information of repetitive assets and liabilities is listed below:

As at 31 Dec. 2025:

	Level 1	Level 2	Level 3	Total
Assets measured at fair value:
Financial assets at fair value through other comprehensive income
Stock	$36,060	$—	$55,109	$91,169
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
Notes and bills	$—	$98,355	$—	$98,355
Financial assets at fair value through other comprehensive income
Stock	$76,133	$—	$49,916	$126,049

Transfer between Level 1 and Level 2 during the period

During the years ended 31 December 2025 and 2024, there was no transfer between the Level 1 and Level 2 of the fair value hierarchy of assets and liabilities measured by the Company's repetitive fair value.

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:

Measured at fair value through other comprehensive income

	Stock
Beginning balances as of 1 January 2025	$49,916
Total recognized gains (losses) of the current period
Recognized in other comprehensive income
(presented in “Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income”)	5,193
Acquisition for the period	—
Ending balances as of 31 December 2025	$55,109

Measured at fair value through other comprehensive income

	Stock
Beginning balances as of 1 January 2024	$19,647
Total recognized gains (losses) of the current period
Recognized in other comprehensive income
(presented in “Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income”)	(1,203)
Acquisition for the period	31,472
Ending balances as of 31 December 2024	$49,916

Information on Level 3 of the recurring fair value asset hierarchy

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

As at 31 December 2025:

	Evaluation techniques	Significant unobservable input value	Quantitative Information	Interrelationship between inputs and fair value	Sensitivity analysis of Interrelationship between inputs and fair value
Measured at fair value through other comprehensive income
Stock	Market approach	Lack of liquidity discount	3.36%~ 32.28%	The higher the illiquidity, the lower the fair value estimate.	The Company's equity will decrease/increase by NT$1,095 thousand if the percentage of illiquidity increases (decreases) by 1%.

As at 31 December 2024:

	Evaluation techniques	Significant unobservable input value	Quantitative Information	Interrelationship between inputs and fair value	Sensitivity analysis of Interrelationship between inputs and fair value
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 Company's equity will decrease/increase by NT$995 thousand if the percentage of illiquidity increases (decreases) by 1%.

(10) Significant assets and liabilities denominated in foreign currencies

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

	31, Dec. 2025			31, Dec. 2024
	Foreign currency (thousand)	Exchange rate	NTD (thousand)	Foreign currency (thousand)	Exchange rate	NTD (thousand)
Financial assets
Monetary items:
USD	$83,069	31.4300	$2,610,861	$65,770	32.7850	$2,156,284
EUR	$3,651	36.9000	$134,738	$3,840	34.1400	$131,080
JPY	$48	0.2008	$10	$13,364	0.2099	$2,868
HKD	$39	4.0380	$159	$25	4.2220	$105
Non Monetary items:
USD	$256,341	31.4300	$8,056,811	$245,076	32.7850	$8,119,763
EUR	$26,573	36.9000	$980,562	$25,417	34.1400	$867,728
HKD	$13,896	4.0380	$56,113	$30,813	4.2220	$130,092
KRW	$1,734,260	0.0220	$38,154	$1,470,737	0.0225	$33,033
Financial liabilities
Monetary items:
USD	$14,959	31.4300	$470,158	$24,037	32.7850	$788,046
EUR	$8	36.9000	$313	$6	34.1400	$188
JPY	$969	0.2008	$195	$2,868	0.2099	$602
HKD	$55	4.0380	$221	$—	—	$—

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

The Company’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$9,239) thousand and NT$57,437 thousand for the years ended 31 December 2025 and 2024, respectively.

(11) Capital management

The primary objective of the Company’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 Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company 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.

Other disclosures

(1) 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.

(2) 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.

(3) 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.

~82~

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Parent Company Only Financial Statements of PANJIT International Inc. (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-JIT 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-JIT 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-JIT 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 NT$852,130 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 Parent Company Only Financial Statements of PANJIT International Inc. (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.

~84~

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Parent Company Only Financial Statements of PANJIT International Inc. (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 Parent Company Only Financial Statements of PANJIT International Inc. (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 Parent Company Only Financial Statements of PANJIT International Inc. (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.

~87~

English Translation of Financial Statements Originally Issued in Chinese

Notes to the Parent Company Only Financial Statements of PANJIT International Inc. (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			Book Dividends	Cash dividends
PANJIT INTERNATIONAL INC.	PAN-JIT ASIA INTERNATIONAL INC.	Yotra 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, Luke 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 3)	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)
	MereWells 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	Yotra 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 Parent Company Only Financial Statements of PANJIT International Inc. (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 investor 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 Parent Company Only Financial Statements of PANJIT International Inc. (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
PANJIT 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)	-
	PANJIT 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)	-
	PANJIT 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)	-
	PANJIT 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)	-
	PANJIT 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 Parent Company Only Financial Statements of PANJIT International Inc. (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 Issued 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.

-92-

Tables of Material Accounting Items

Items	Pages
Cash and cash equivalents	93
Net notes receivable	94
Net accounts receivable	94
Net accounts receivable due from related parties	95
Other receivables	95
Other receivables due from related parties	95
Inventories	96
Other current assets	96
Financial assets at fair value through other comprehensive income - non-current	97
Investments accounted for using the equity method	98
Property, plant, and equipment (Notes 6(8))	41~44
Right-of-use assets	99
Intangible assets (Note 6(9))	45
Deferred income tax assets (Note 6(20))	62~64
Other non-current assets	100
Current borrowings	101
Contractual liabilities - current	102
Accounts payable	102
Accounts payable to related parties	102
Other payables	103
Other current liabilities - other	103
Other non-current liabilities - others	103
Lease liabilities	104
Long-term borrowings	105
Deferred income tax liabilities (Note 6(20))	62~64
Operating revenue	106
Operating cost	107
Operating expense	108
Summary statement of employee benefits, depreciation, depletion and amortization expenses incurred during the current period (Note 6(17))	58

~93~

PANJIT INTERNATIONAL INC.

Detail list for Cash and Cash equivalents

December 31, 2025

Units: NT$ thousands

Items	Summary	Amount	Remark
Petty cash		$210	The exchange rate of U.S. dollar to New Taiwan dollar is 1:31.43
Bank deposit:			The exchange rate for Euro to New Taiwan Dollar is 1:36.90
NTD deposit		565,584	The exchange rate for Japanese Yen to New Taiwan Dollar is 1:0.2008
Foreign currency deposit	USD 8,714.00	273,876	The exchange rate of Hong Kong dollar to New Taiwan dollar is 1:4.038
	EUR 1,431.00	52,804
	JPY 48.00	10
	HKD 39.00	159
Bank deposit total		(Unit: in each foreign currency)
Total		$892,643

-94-

PANJIT INTERNATIONAL INC.

2. Details of the net notes receivable

December 31, 2025

Units: NT$ thousands

Account Name	Summary	Amount
HANWEI ELECTRONICS CO., LTD.	Payment for goods	$29,904
JUNSUN ENTERPRISE CO., LTD.	Payment for goods	16,243
Others	(Notes)	2,842
Total		48,989
(Less): loss allowance		—
Net amount		$48,989

(Note): The balance of a single item does not exceed 5% of the notes receivable balance.

PANJIT INTERNATIONAL INC.

3. Schedule of Net Accounts Receivable

December 31, 2025

Units: NT$ thousands

Account Name	Summary	Amount
Others	(Notes)	2,188,965
(Less): loss allowance		(20,512)
Net amount		$2,168,453

(Note): The balance of a single item does not exceed 5% of the accounts receivable balance.

-95-

PANJIT INTERNATIONAL INC.

4. Schedule of Net Accounts Receivable due from related parties

December 31, 2025

Units: NT$ thousands

Account Name	Summary	Amount	Remark
Pan Jit Electronics (Wuxi) Co., Ltd.	Payment for goods	$560,002	Subsidiaries included in the consolidated financial statements may not make allowances for losses.
PANJIT Semiconductor (Xuzhou) Co., Ltd.	Payment for goods	$46,157
Others	(Notes)	35,139
Total		641,298
(Less): loss allowance		—
Net amount		$641,298

(Note): The balance of a single item does not exceed 5% of the trade receivable balance from related parties.

PANJIT INTERNATIONAL INC.

5. Statement of Other Receivables

December 31, 2025

Units: NT$ thousands

Items	Summary	Amount
Non-related parties
Tax refund receivables	Sales tax	$41,330
Other receivables - other		4,796
Subtotals		46,126
Related parties
PANSTAR SEMICONDUCTOR CO., LTD.	Capital loan	30,000
JOYSTAR INTERNATIONAL CO., LTD.	Miscellaneous	4,330
Others	(Notes)	1,315
Subtotals		35,645
(Less): loss allowance		—
Total		$81,771

(Note): The balance of a single item does not exceed 5% of the other receivable balance.

-96-

PANJIT INTERNATIONAL INC.

6. Statement of inventories

December 31, 2025

Units: NT$ thousands

Items	Costs	Net realizable value	Remark
Raw material	$699,385	$459,666	Raw materials refers to the balance of finished products (including commodities) after subtracting the costs and sales expenses that.
Work in process	86,825	78,122
Finished goods	930,832	741,473
Total	1,717,042
Less: Allowance for inventory valuation loss	(437,781)		The allowance for inventory depreciation is estimated based on the possibility of the of the inventory and the net slow-moving value.
Net amount	$1,279,261	$1,279,261

PANJIT INTERNATIONAL INC.

7. Statement of Other current assets

December 31, 2025

Units: NT$ thousands

Items	Summary	Amount
Prepay	Advance payment, advance expenses, inventory of supplies, etc.	$82,135
Temporary payment	Labor and health insurance, pension, etc.	30,975
Payment on behalf of others		85
Other financial assets	Pledged time deposit	60,096
Total		$173,291

PANJIT INTERNATIONAL INC.

Financial assets at fair value through other comprehensive profit or loss - non-current

January 01 to December 31, 2025

Units: NT$ thousands

Name of financial instrument	Beginning balance		Increase in the Period		Decrease in current period		Ending balance			Guarantee or Pledge status
	Number of shares (thousand shares)	Fair value	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Shareholding ratio	Fair value
Advanced Microelectronic Products,Inc.	2,888	$40,289	-	-	-	$14,758
(Note 1)
25,531
(Note 7)	2,888	2.64%	$-	None
Jih Lin Technology Co., LTd.	717	35,844	-	1,076
(Note 1)	-	860
(Note 3)	717	0.70%	36,060	None
KAISON GREEN ENERGY TECHNOLOGY CO., LTD.	237	3,345	-	-	-	604
(Note 1)	237	0.55%	2,741	None
WELLAN SYSTEM CO., LTD.	445	-	-	-	-	-	445	1.53%	-	None
TAIDEVELOP INFORMATION CORP.	334	-	-	-	-	-	334	3.71%	-	None
ENERGY MOANA TECHNOLOGY CO., LTD.	1,200	288	-	-	-	288
(Note 7)	1,200	2.96%	-	None
Neolink Capital Corp.	5,000	46,283	-	6,085
(Note 1)	-	-	5,000	7.58%	52,368	None
Total		$126,049		$7,161		$42,041			$91,169

(Note 1): Fair value valuation adjustment
(Note 2): Disposal in current period
(Note 3): Dividend distributed from capital reserve
(Note 4): Return of share capital due to capital reduction
(Note 5): Capital increase in cash.
(Note 6): Acquired in the current period.
(Note 7): Impairment loss adjustment.

PANIST INTERNATIONAL INC.

Statement of Changes in Investments Accounted for Using the Equity Method

January 01 to December 31, 2025

Units: NT$ thousands

Name	Beginning balance		Increase in the Period		Decrease in current period		Ending balance			Market Value or Net Equity		Cumulative of Budget status
	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Shareholding ratio	Amount	Unit price	Total price
PAN-IST ASIA INTERNATIONAL INC.	224,724	$8,034,808		627,747 (Note 1)		417,135 (Note 3) 188,609 (Note 2)	224,724	100.00%	$8,056,811	$36.22	$8,140,337 (Note 4)	None
Pynmax Technology Co., Ltd.	84,493	1,417,558	8	126 (Note 5) 130,753 (Note 1)		151,886 (Note 3) 15,571 (Note 2)	84,493	94.65%	1,380,980	$17.79	1,503,498 (Note 4)	None
MILDEX OPTICAL INC.	16,328	241,625		2,671 (Note 1)		11,313 (Note 3) 8,659 (Note 2)	16,328	20.61%	224,324	$24.05	392,688 (Note 4)	None
Alltop Technology Co., Ltd.	11,393	1,721,772		168,504 (Note 1)		114,809 (Note 3) 10,578 (Note 2)	11,393	17.36%	1,764,889	$244.00	2,779,894 (Note 4)	None
Champion Microelectronic Corp.	24,536	1,913,846		83,399 (Note 1)		50,006 (Note 3) 4,444 (Note 2)	24,536	30.84%	1,942,795	$70.00	1,717,520 (Note 4)	None
AIDE ENERGY EUROPE COOPERATIE U.A.	1,863	867,728		40,678 (Note 1) 72,156 (Note 2)			1,863	100.00%	980,562	$526.33	980,562 (Note 4)	None
PANIST JAPAN Inc.	5	485		84 (Note 2)		4,369 (Note 1)	5	55.00%	(3,800)	($760.00)	(3,800) (Note 4)	None
PAN-IST INTERNATIONAL (H.K.) LTD.	9,711	130,092		12,306 (Note 1)		77,841 (Note 3) 8,444 (Note 2)	9,711	100.00%	56,113	$5.82	56,498 (Note 4)	None
PANIST KOREA CO., LTD.	54	33,033		19,151 (Note 5)		539 (Note 2) 13,491 (Note 3)	54	60.00%	38,154	$706.56	38,154 (Note 4)	None
PANIST Investment Co., Ltd.	4,300	23,796	18,700	187,000 (Note 5)		59,992 (Note 1) 9,608 (Note 3)	23,000	100.00%	141,196	$6.14	141,196 (Note 4)	None
PAN-IST JAPAN INVESTMENT HOLDING CORPORATION	-	-	1	2,108 (Note 5)		94 (Note 1) 95 (Note 2)	1	100.00%	1,919	$1,919.00	1,919 (Note 4)	None
Total		$14,384,743		$1,346,683		$1,147,483			$14,583,943		$15,748,466

(Note 1): The share of profits or losses of subsidiaries accounted for using the equity method, upstream unrealized profits on sales, upstream realized profits on sales, and profits or losses arising from sidestream transactions between subsidiaries.
(Note 2): Translation differences recognized under the equity method for the translation of financial statements of foreign operations.
(Note 3): Differences arising from the acquisition or disposal of subsidiaries' equity accounted for using the equity method, downstream unrealized profits or losses, cash dividends distributed, actuarial gains or losses from defined benefit plans, unrealized gains or losses on financial assets measured at fair value through other comprehensive income, and unearned employee compensation, etc.
(Note 4): Recognized based on the shareholding ratio of the investor.
(Note 5): Acquired in the current period.
(Note 6): Sold in the current period.

~99~

PANJIT INTERNATIONAL INC.

Statement of Changes in Right-of-Use Assets

January 01 to December 31, 2025

Units: NT$ thousands

Items	Beginning balance	Current change			Ending balance
		Increase	Decrease	Reclassification
Land	$2,389	$2,389	($2,389)	$—	$2,389
Buildings	5,682	2,586	(2,841)	—	5,427
Transportation equipment	3,470	288	(3,177)	—	581
Total	$11,541	$5,263	($8,407)	$—	$8,397

PANJIT INTERNATIONAL INC.

Statement of Accumulated depreciation - Changes in Right-of-Use Assets

January 01 to December 31, 2025

Units: NT$ thousands

Items	Beginning balance	Current change			Ending balance
		Increase	Decrease	Reclassification
Land	$531	$796	($796)	$—	$531
Buildings	2,959	1,490	(2,841)	—	1,608
Transportation equipment	2,558	923	(3,177)	—	304
Total	$6,048	$3,209	($6,814)	$—	$2,443

-100-

PANJIT INTERNATIONAL INC.

12. Statement of Other non-current assets

December 31, 2025

Units: NT$ thousands

Items	Summary	Amount
Prepayment for equipments		$26,973
Other non-current assets, others
US Patent Litigation Appeal Security		$203,455
Procurement margin	inergy Technology Inc.	35,000
Procurement margin	MOSEL VITELIC Inc.	13,540
Refundable deposit	Others (Note)	3,289
Other advances	(Note)	152,904
Total		$408,188

(Note): The individual balance contained does not exceed other non-current assets - 5% of other balances.

~101~

PANJIT INTERNATIONAL INC.

13. Statement of Current Borrowings

December 31, 2025

Units: NT$ thousands

Type of loans	Explanation	Term	Interest rate range	Ending balance	Pledge or Collateral
Credit loan	Taiwan Cooperative Bank Gangshan Branch	2025.12.31–2026.01.26	1.9780%	$100,000	None
Credit loan	Chang Hwa Bank Gangshan Branch	2025.12.26–2026.01.23	1.7450%	100,000	None
Credit loan	Cathay United Bank	2025.12.26–2026.01.26	1.8800%	300,000	None
Credit loan	First Bank Luzhu Branch	2025.12.26–2026.01.26	1.8250%	150,000	None
Credit loan	Mega Bank EastKaohsiung Branch	2025.12.26–2026.03.26	1.8700%	200,000	None
Credit loan	Yuanta Bank Lingya Branch	2025.12.26–2026.03.26	1.8400%	150,000	None
Credit loan	Hua Nan Commercial Bank Wu Chia Branch	2025.10.2–2026.01.02	1.8600%	250,000	None
Credit loan	Bangkok Bank Kaohsiung Branch	2025.12.10–2026.01.12	1.8400%	450,000	None
Credit loan	The Export-Import Bank of the Republic of China Kaohsiung Branch	2025.4.2–2026.4.2	1.8400%	300,000	None
Credit loan	The Shanghai Commercial & Savings Bank	2025.11.25–2026.11.25	1.8700%	100,000	None
Export collection financing	Cathay United Bank	2025.12.31–2026.1.30	4.6000%	110,005	None
Total				$2,210,005

~102~

PANJIT INTERNATIONAL INC.

Contractual liabilities - current

December 31, 2025

Units: NT$ thousands

Account Name	Summary	Amount
Moxa	Sales payment	$51
ES FRANCE	Sales payment	33
RES TECH	Sales payment	18
Others	(Notes)	1
Total		$103

(Note): The single item balance contained does not exceed the contract liability - 5% of the current account balance.

PANJIT INTERNATIONAL INC.

Statement of Accounts Payable

December 31, 2025

Units: NT$ thousands

Account Name	Summary	Amount
Energy Technology Inc.	Purchase payment	$109,243
Lefram Technology Corporation	Purchase payment	84,174
Jih Lin Technology Co., Ltd.	Purchase payment	60,990
Advanced Microelectronic Products, Inc.	Purchase payment	54,405
E'DALE TECHNOLOGY CO., LTD.	Purchase payment	25,244
Others	(Notes)	227,822
Total		$561,878

(Note): The balance of a single item does not exceed 5% of the accounts payable balance.

PANJIT INTERNATIONAL INC.

Statement of Accounts Payable to Related Parties

December 31, 2025

Units: NT$ thousands

Account Name	Summary	Amount
Pan Jit Electronics (Wuxi) Co., Ltd.	Purchase payment	$443,542
Pynmax Technology Co., Ltd.	Purchase payment	218,304
PANJIT Semiconductor (Xuzhou) Co., Ltd.	Purchase payment	76,734
Others	(Notes)	13,911
Total		$752,491

(Note): The balance of a single item does not exceed 5% of the accounts payable balance from related parties.

~103~

PANJIT INTERNATIONAL INC.
17. Statement of Other Payables
December 31, 2025

Units: NT$ thousands

Item	Description	Amount
Non-related parties
Awards and salaries payable	The salary, year-end bonus and estimated cashed-out leaves in December	$351,683
Commissions payable		107,633
Processing fee payable		69,905
Equipment expense payable		36,584
Other expenses payable	Utility expenses, import and export expenses, insurance expenses, labor expenses, pensions, Interest and rent, etc.	630,408
Subtotal		1,196,213
Related parties
PAN-JIT ASIA INTERNATIONAL INC.	Capital loan	$207,438
PAN JIT EUROPE GMBH	Commission	102,118
Others	(Note)	15,810
Subtotal		325,366
Total		$1,521,579

(Note): The balance of a single item does not exceed 5% of the other payable balance.

PANJIT INTERNATIONAL INC.
18. Statement of Other current liabilities - others
December 31, 2025

Units: NT$ thousands

Item	Description	Amount
Unearned receipts	PAN JIT AMERICAS, INC.	$91,140
Temporary receipts	To be written-off	33,051
Collection for others	Collection for labor and health insurance, food, etc.	13,154
Deferred income	Deferred government	21
Total		$137,366

PANJIT INTERNATIONAL INC.
19. Other non-current liabilities - Others
December 31, 2025

Units: NT$ thousands

Item	Description	Amount
Deferred gain from government grants	Government low-interest loan	$16,204
Refundable deposit		8,798
Total		$25,002

~104~

PANJIT INTERNATIONAL INC.

20. Lease liabilities

December 31, 2025

Units: NT$ thousands

Items	Leasing term	Discount rate	Ending balance
Land	2024.05.20–2027.05.19	1.3400%	$1,866
Buildings	2024.12.01–2026.11.30	1.3400%	1,311
Buildings	2025.11.01–2031.12.31	1.3400%	2,519
Transportation equipment	2024.09.27–2026.09.26	1.3400%	111
Transportation equipment	2023.03.08–2025.03.07	1.3400%	169
Total			5,976
Lease liabilities due within one year			(2,766)
Lease Liabilities - non-current			$3,210

PANJIT INTERNATIONAL INC.
21. Statement of Long-term Borrowings
December 31, 2025
Units: NTS thousands

Creditor	Summary	Amount	Term	Interest	Pledge or guarantee	Remark
Far Eastern International Bank Kaohsiung Jungjeng Branch	Medium-term and long-term loans	$300,000	2025.12.17～2026.01.16	2.0900%	None	Repayment method: Due to the different ways of granting credit, there are two repayment methods. The details are as follows:
EnTie Bank Kaohsiung Branch	Medium-term and long-term loans	250,000	2025.12.08～2026.02.08	2.0870%	None
KGI Bank Kaohsiung Branch	Medium-term and long-term loans	400,000	2025.12.18～2026.03.18	2.1000%	None
Mizuho Bank, Ltd.	Medium-term and long-term loans	250,000	2025.10.02～2026.04.02	1.8600%	None	1. Credit Line A: (a) The Borrower shall, at the time of each application for the use of The principal amount of each such loan is repaid on the maturity date and the maturity date of the loan shall not exceed the maturity date of the credit period of Line A. (b) Subject to the occurrence of any default under this Agreement, the Borrower may, in accordance with Article 7(1) of this Agreement, issue an application for the use of the proceeds of the credit line A to directly repay the principal amount of each of the original loans due, provided that the maturity date shall not exceed the maturity date of the materially date of the credit period of the credit paid for the use of the amount, the managing bank and each lending bank, as well as the borrower, are not required to remit funds to or from the bank, and the receipt of the amount by the borrower is evidenced by this agreement and the related use documents.
Mizuho Bank, Ltd.	Medium-term and long-term loans	170,666	2025.11.17～2026.05.18	4.4500%	None
Mizuho Bank, Ltd.	Medium-term and long-term loans	125,720	2025.12.30～2026.01.30	4.4500%	None
Taishin International Bank, Linya Branch	Machine loans returning to Taiwan	91,667	2021.01.15～2026.12.05	1.5250%	None
First Commercial Bank Luzhu Branch	Machine loans returning to Taiwan	148,958	2021.09.29～2027.1.15	1.7250%	None
Chang Hwa Bank Gangshan Branch	Machine loans returning to Taiwan	339,131	2021.02.09～2027.01.15	1.5250%	None
Land Bank of Taiwan, Kangshan Branch	Medium-to-long-term working capital returning to Taiwan	18,333	2021.12.02～2027.11.15	1.7250%	None
Taishin International Bank, Linya Branch	Medium-to-long-term working capital returning to Taiwan	40,104	2021.03.30～2026.12.05	1.5250%	None
First Commercial Bank Luzhu Branch	Medium-to-long-term working capital returning to Taiwan	67,167	2021.03.26～2027.01.15	1.5250%	None	2. Credit Line B: The issuer shall make provision for the full payment of the face amount of each commercial paper issued on the maturity date. The issuer shall also fully repay the debts under the Credit Line B, and release the guarantee obligations of the Credit Bank of Line B on the maturity date of the credit. Prior to the expiration of the credit period, the issuer may renew the commercial paper in accordance with Article 7(4) of this Agreement and use the proceeds to repay the original commercial paper issued.
First Commercial Bank Luzhu Branch	Medium-to-long-term working capital returning to Taiwan	27,083	2021.04.28～2027.01.15	1.5250%	None
Chang Hwa Bank Gangshan Branch	Medium-to-long-term working capital returning to Taiwan	30,604	2021.03.26～2027.01.15	1.5250%	None
Chang Hwa Bank Gangshan Branch	Medium-to-long-term working capital returning to Taiwan	22,750	2021.01.29～2027.01.15	1.5250%	None
Land Bank of Taiwan, Kangshan Branch	Syndicated Loans Line A	3,000,000	2025.12.26～2026.01.05	2.1263%	None
Total		4,982,183
(Less): Maturity within one year		(750,544)
Deferred gain from government grants		(1,487)
Unamortized expenses		(5,333)
Net amount		$4,224,819

~105~

-106-

PANJIT INTERNATIONAL INC.

22. Statement of Operating Revenue

January 01 to December 31, 2025

Units: NT$ thousands

Items	QTY (thousand units)	Amount	Remark
Power Discrete	22,698	$9,412,243
Others	6,348	306,520	Raw materials, etc.
Total		9,718,763
(Less): Sales return or discount	(57)	(95,677)
Net amount		$9,623,086

(Note): The balance of the individual items contained does not exceed 5% of the operating income balance.

~107~

PANJIT INTERNATIONAL INC.
23. Statement of Operating Costs
January 01 to December 31, 2025
Units: NT$ thousands

Items	Amount
Direct raw material:
Inbound for the current period	$3,073,820
Plus: Beginning stock	951,635
Inventory (gain) loss	513
Amount of other transfers	572,343
(Less): Raw Materials at the end of the period	(699,385)
Raw materials sold	(307,774)
Transfer to other accounts	(472,402)
Consumed for the current period	3,118,750
Direct labor	472,928
Manufacturing expense	1,049,036
Manufacturing cost	4,640,714
Plus: Initial work in process	85,315
Amount of other transfers	185,178
(Less): Work in process at the ending of the period	(86,079)
Transfer to finished goods	(950,488)
Transfer to other accounts	(16,008)
Finished good cost	3,858,632
Plus: Initial finished goods	914,956
Acquired in the period	2,401,533
Work in process inbound	950,488
Amount of other transfers	163,856
(Less): Finished goods at the end of the period	(930,832)
Inventory (gain) loss	(581)
Transfer to other accounts	(10,419)
Cost of Goods Sold	7,347,633
Other operating cost	55,766
Raw materials sold	307,774
Loss on price decline in inventories	(192,413)
Others (revenue from scrap sales and inventory gain or loss)	(42,598)
Total Operating Cost	$7,476,162

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PANJIT INTERNATIONAL INC.

Statement of Operating Expenses

January 01 to December 31, 2025

Units: NT$ thousands

Items	Summary	Selling expenses	Remark
Payrolls		$186,362
Expense for import and export		92,323
Commission expenditure		126,162
Miscellaneous expenses		74,915
Others	The account of which the balance does not exceed 5% of the balance of this account	75,518
Total		$555,280
Items	Summary	Administrative expenses	Remark
---	---	---	---
Payrolls		$405,514
Miscellaneous expenses		61,203
Labor costs		104,735
Others	The account of which the balance does not exceed 5% of the balance of this account	102,827
Total		$674,279
Items	Summary	Research and development expenses	Remark
---	---	---	---
Payrolls		$133,863
Repair fees		34,062
Water, electricity and gas fees		33,730
Depreciation and depletion		138,515
Materials		73,948
Others	The account of which the balance does not exceed 5% of the balance of this account	101,710
Total		$515,828

AI assistant

PANJIT — Audit Report / Information 2025

52114_rns_2026-05-29_02c4ca9e-3a2d-4d70-865c-e8f8cba63118.pdf

PANJIT INTERNATIONAL INC.

Evaluation of Inventories

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

4. Summary of material accounting policies

(1) Statement of compliance

(2) Basis of Preparation

(3) Foreign currency transaction

Financial asset measured at amortized cost

B. Impairments of financial assets

C. Derecognition of financial assets

D. Financial liabilities and equity

Classification between liabilities or equity

Equity Instruments

Compound instruments

Financial liabilities

Financial liabilities measured at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

E. Offsetting of financial instruments

(8) Derivative instruments.

The Company as a lessor

(15) Intangible assets

Deferred income tax

5. Significant accounting judgments, estimates and assumptions

(1) Judgment

(2) Estimates and assumptions

(a) Fair value of financial instruments

(13) Equities

A. Common stock

B. Capital surplus

(14) Operating revenue

A. Disaggregation of revenue

B. Contract balance

B. Financing provided to others

C. Financing provided to others (recognized as other payables to related parties)

D. Endorsements/guarantees

8. Pledged assets

9. Significant contingent liabilities and unrecognized contractual commitments

10. Significant Disaster Losses

11. Significant subsequent events

12. Others

Equity Price Risk

(4) Credit risk management

(5) Liquidity risk management

English Translation of Financial Statements Originally Issued in Chinese

Tables of Material Accounting Items

Table of Contents

PANJIT INTERNATIONAL INC.

PANJIT INTERNATIONAL INC.

2. Details of the net notes receivable

PANJIT INTERNATIONAL INC.

3. Schedule of Net Accounts Receivable

PANJIT INTERNATIONAL INC.

4. Schedule of Net Accounts Receivable due from related parties

PANJIT INTERNATIONAL INC.

5. Statement of Other Receivables

PANJIT INTERNATIONAL INC.

6. Statement of inventories

PANJIT INTERNATIONAL INC.

7. Statement of Other current assets

PANJIT INTERNATIONAL INC.

PANIST INTERNATIONAL INC.

PANJIT INTERNATIONAL INC.

PANJIT INTERNATIONAL INC.

PANJIT INTERNATIONAL INC.

12. Statement of Other non-current assets

PANJIT INTERNATIONAL INC.

13. Statement of Current Borrowings

PANJIT INTERNATIONAL INC.

PANJIT INTERNATIONAL INC.

PANJIT INTERNATIONAL INC.

PANJIT INTERNATIONAL INC.

20. Lease liabilities

PANJIT INTERNATIONAL INC.

22. Statement of Operating Revenue

PANJIT Audit Report / Information 2025