Stock Code:6226

PARA LIGHT ELECTRONICS CO., LTD.

Parent Company Only Financial Statements

With Independent Auditors’ Report

For the Years Ended December 31, 2025 and 2024

Address: 11F, No. 8, Jiankang Rd., Zhonghe Dist. New Taipei City, 23586 Taiwan

Telephone: (02)2225-3733

The independent auditors’ report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent company only financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Balance Sheets	4
5. Statements of Comprehensive Income	5
6. Statements of Changes in Equity	6
7. Statements of Cash Flows	7
8. Notes to the Financial Statements
(1) Company history	8
(2) Approval date and procedures of the financial statements	8
(3) New standards, amendments and interpretations adopted	8~10
(4) Summary of material accounting policies	10~24
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	24~25
(6) Explanation of significant accounts	25~51
(7) Related-party transactions	51~54
(8) Pledged assets	54
(9) Significant Commitments and contingencies	54
(10) Losses Due to Major Disasters	54
(11) Subsequent Events	54
(12) Other	55
(13) Other disclosures
(a) Information on significant transactions	56~58
(b) Information on investees	58
(c) Information on investment in mainland China	59
(14) Segment information	59
9. List of major account titles	60~78

KPMG

多侯速素符合量计科学合作

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of PARA LIGHT ELECTRONICS CO., LTD.:

Opinion

We have audited the financial statements of PARA LIGHT ELECTRONICS CO., LTD. (“the Company”), which comprise the balance sheet as of December 31, 2025 and 2024, the statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with 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 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 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, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

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

1. Revenue recognition

Please refer to note 4(n) “Revenue recognition” and note 6(m) “Revenue from contracts with customers” to the financial statements for accounting policies on revenue recognition and description of revenues, respectively.

Description of key audit matter:

The Company mainly engages in the sale of various LEDs and LED displays as well as property development. Revenue is one of the key indicators for investors and management to measure financial or business performance; therefore, the accuracy of both the amounts and timing of revenue recognition has significant influence on financial statements.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG

How the matter was addressed in our audit:

Our key audit procedures included: (i) testing the relevant control over the sales and collection cycle to determine the reliability of revenue records. (ii) checking and adjusting the data of sales system and general ledger entries, and evaluating whether the conditions of sale are consistent with the recognition of accounting policies. (iii) Performing trend analysis on the top ten sales customers to assess whether there are any material abnormality. (iv) using system tools to sample sales transactions before and after the year end to evaluate the accuracy of the period and amount of revenue recognition.

Valuation of investment accounted for using the equity method

Please refer to Note 4(h) for the related accounting policy of valuation of investment, Note 4(i) "Investment in subsidiaries" for details on accounting policy about investments accounted for using the equity method; and Note 6(e) "Investments Accounted for Using the Equity Method" for details on the related explanation.

Description of key audit matter:

The Company held the entire interest of Para Light Investments Limited at the amount of $978,131 thousand.

Due to the significance of the investment amount, the valuation of the investment accounted for using the equity method is one of our key audit matters.

How the matter was addressed in our audit:

Our key audit procedures included: (i) understanding the accounting procedures for the investment accounted using the equity method, obtaining the details of the relevant calculation of the investment, including the investment loss and other equity investment items, for the current period using the equity method, analyzing the accuracy of the detailed statements, and assessing the profit or loss arising from the investment in the investee that has been recognized according to the appropriate shareholding ratio. (ii) checked the confirmations of the related parties, assessed the consistency and reasonableness of the Company's accounting records to ensure that the unrealized gain or loss has been properly written off, as well as evaluated the investment showed any signs of impairment. In addition, (iii) we also assessed whether the related information was properly disclosed in the notes to the parent-company-only financial statements.

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

Management is responsible for the preparation and fair presentation of the financial statements in accordance with 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 financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, 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 the Audit Committee) are responsible for overseeing the Company's financial reporting process.

KPMG

Auditors' Responsibilities for the Audit of the Financial Statements

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

As part of an audit in accordance with the 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 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 Company’s internal control.
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 Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the 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 auditors’ 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on these financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

KPMG

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ 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.

The engagement partners on the audit resulting in this independent auditors’ report are Mei, Yuan-Chen and Kuo, Yang-Lun.

KPMG

Taipei, Taiwan (Republic of China)
March 5, 2026

Notes to Readers

The accompanying parent company only financial statements are intended only to present the statement of financial position, financial performance and its cash flows in accordance with the 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.

The auditors’ report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and parent company only financial statements, the Chinese version shall prevail.

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

PARA LIGHT ELECTRONICS CO., LTD.

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets		December 31, 2025		December 31, 2024
Current assets:		Amount	%	Amount	%
1100	Cash and cash equivalents(note 6(a))	$ 90,598	5	97,729	5
1110	Current financial assets at fair value through profit or loss(note 6(b))	11,963	1	-	-
1120	Current financial assets at fair value through other comprehensive income(note 6(b))	14,736	1	-	-
1150	Notes receivable, net(notes 6(c) and (m))	1,740	-	1,641	-
1170	Accounts receivable, net(notes 6(c) and (m))	44,841	2	39,967	2
1181	Accounts receivable-related parties, net(note 7)	10,191	-	12,907	1
130X	Inventories(note 6(d))	51,586	3	35,083	2
1476	Other current financial assets(notes 6(a) and 8)	110,937	6	22,137	1
1479	Other current assets	3,803	-	3,759	-
		340,395	18	213,223	11
Non-current assets:
1550	Investments accounted for using equity method(note 6(e))	1,343,480	71	1,312,624	70
1600	Property, plant and equipment(notes 6(f) and 8)	153,685	8	157,092	8
1760	Investment property, net(notes 6(g) and 8)	42,888	2	43,289	2
1840	Deferred tax assets(note 6(k))	12,364	1	11,820	1
1980	Other non-current financial assets(notes 6(a), 7 and 8)	4,223	-	135,055	8
1990	Other non-current assets, others	6,210	-	-	-
		1,562,850	82	1,659,880	89
Total assets		$ 1,903,245	100	1,873,103	100
Liabilities and Equity		December 31, 2025		December 31, 2024
---	---	---	---	---	---
Current liabilities:		Amount	%	Amount	%
2100	Short-term borrowings(note 6(h))	$ 87,030	4	73,369	4
2170	Accounts payable	20,723	1	21,468	1
2180	Accounts payable-related parties(note 7)	189,389	10	132,056	7
2321	Bonds payable, current portion(note 6(i))	300,000	16	-	-
2322	Long-term borrowings, current portion(note 6(h))	34,078	2	32,901	2
2399	Other current liabilities	22,789	1	22,405	1
		654,009	34	282,199	15
Non-Current liabilities:
2530	Bonds payable(note 6(i))	-	-	300,000	16
2540	Long-term borrowings(note 6(h))	118,736	6	152,178	8
2640	Net defined benefit liability, non-current(note 6(j))	998	-	7,862	-
2570	Deferred tax liabilities(note 6(k))	4,900	-	5,203	-
2645	Guarantee deposits received	812	-	625	-
		125,446	6	465,868	24
		779,455	40	748,067	39
Total liabilities
Equity(note 6(l)):
3110	Ordinary shares	1,155,348	61	1,166,198	62
3200	Capital surplus	31,753	2	28,839	2
3300	Retained earnings	(28,140)	(1)	2,708	-
3400	Other equity interest	(35,171)	(2)	(64,773)	(3)
3500	Treasury shares	-	-	(7,936)	-
		1,123,790	60	1,125,036	61
		$ 1,903,245	100	1,873,103	100

Total assets

See accompanying notes to parent company only financial statements.

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

PARA LIGHT ELECTRONICS CO., LTD.

Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue(notes 6(m) and 7)	$ 281,077	100	263,335	100
5000	Operating cost(notes 6(d) and 7)	192,725	69	192,160	73
	Gross profit from operations	88,352	31	71,175	27
5910	Less: Unrealized profit (loss) from sales	763	-	(1,364)	(1)
		87,589	31	72,539	28
	Operating expenses(notes 6(c), (f), (g), (j) and (n)):
6100	Selling expenses	30,419	11	35,490	13
6200	Administrative expenses	62,233	22	57,123	22
6300	Research and development expenses	931	-	1,033	-
6450	Expected credit loss (reversal gain)	68	-	(861)	-
		93,651	33	92,785	35
	Operating loss	(6,062)	(2)	(20,246)	(7)
	Non-operating income and expenses:(notes 6(e), (i), (o) and 7)
7010	Other income	7,479	3	6,901	3
7020	Other gains and losses	138	-	4,266	2
7050	Finance costs	(10,503)	(4)	(11,048)	(4)
7060	Share of profit (loss) of associates and joint ventures accounted for using equity method	(25,961)	(9)	(32,358)	(12)
7100	Interest income	2,361	1	4,044	2
		(26,486)	(9)	(28,195)	(9)
7900	Loss before tax	(32,548)	(11)	(48,441)	(16)
7950	Less: Income tax expenses(income)(note (k))	(847)	-	2,698	1
	Loss	(31,701)	(11)	(51,139)	(17)
8300	Other comprehensive income(notes 6(j) and (l)):
8310	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Gains on remeasurements of defined benefit plans	174	-	1,601	1
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	5,316	2	(5,199)	(2)
8330	Share of other comprehensive income of subsidiaries, associates accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	6,505	2	8,119	3
		11,995	4	4,521	2
8360	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements	18,302	7	63,492	24
8300	Other comprehensive income (after tax)	30,297	11	68,013	26
	Total Comprehensive income (loss)	$ (1,404)	-	16,874	9
	Basic earnings per share (NT dollars)(note 6(p))	$ (0.27)			(0.44)
	Diluted earnings per share (NT dollars)(note 6(p))	$ (0.27)			(0.44)

See accompanying notes to parent company only financial statements.

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

PARA LIGHT ELECTRONICS CO., LTD.

Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2024
Loss
Other comprehensive income
Total comprehensive income
Changes in ownership interests in subsidiaries
Disposal of investments in equity instruments designated at fair value through other comprehensive income
Balance at December 31, 2024
Loss
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Reversal of special reserve
Retirement of treasury share
Changes in ownership interests in subsidiaries
Disposal of investments in equity instruments designated at fair value through other comprehensive income
Balance at December 31, 2025

Ordinary shares	Capital surplus	Retained earnings				Total other equity interest
		Legal reserve	Special reserve	Unappropriated retained earnings	Total retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Total other equity interest	Treasury shares
$ 1,166,198	29,066	1,740	133,302	(74,579)	60,463	(113,978)	(24,575)	(138,553)	(7,936)
-	-	-	-	(51,139)	(51,139)	-	-	-	-
-	-	-	-	1,601	1,601	63,492	2,920	66,412	-
-	-	-	-	(49,538)	(49,538)	63,492	2,920	66,412	-
-	(227)	-	-	(849)	(849)	-	-	-	-
-	-	-	-	(7,368)	(7,368)	-	7,368	7,368	-
1,166,198	28,839	1,740	133,302	(132,334)	2,708	(50,486)	(14,287)	(64,773)	(7,936)
-	-	-	-	(31,701)	(31,701)	-	-	-	-
-	-	-	-	174	174	18,302	11,821	30,123	-
-	-	-	-	(31,527)	(31,527)	18,302	11,821	30,123	-
-	-	-	-	(68,529)	68,529	-	-	-	-
-	-	-	-	-	-	-	-	-	-
(10,850)	2,914	-	-	-	-	-	-	7,936	-
-	-	-	-	158	158	-	-	-	158
-	-	-	-	521	521	-	(521)	(521)	-
$ 1,155,348	31,753	1,740	64,773	(94,653)	(28,140)	(32,184)	(2,987)	(35,171)	-

See accompanying notes to parent company only financial statements.

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

PARA LIGHT ELECTRONICS CO., LTD.

Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from (used in) operating activities:
Loss before tax	$ (32,548)	(48,441)
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense	3,834	3,975
Expected credit loss (reversal gain)	68	(861)
Net profit on financial assets or liabilities at fair value through profit or loss	(705)	-
Interest expense	10,503	11,048
Interest income	(2,361)	(4,044)
Dividend income	(776)	(490)
Share of loss of subsidiaries and associates accounted for using equity method	25,961	32,358
Unrealized loss (profit) from sales	763	(1,364)
Total adjustments to reconcile profit (loss)	37,287	40,622
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in notes receivable	(99)	490
Increase in accounts receivable	(4,942)	(1,430)
Decrease (increase) in accounts receivable due from related parties	2,716	(122)
Increase in inventories	(16,503)	(5,025)
Decrease in prepaid expenses	226	511
Increase in prepayments	(500)	-
(Increase) decrease in other financial assets	17,556	(10,792)
(Increase) decrease in other current assets	184	(1,209)
Total changes in operating assets	(1,362)	(17,577)
Changes in operating liabilities:
Increase (decrease) in notes payable	-	(3,183)
Increase (decrease) in accounts payable	(745)	8,106
Increase in accounts payable to related parties	57,333	11,169
Increase in other payable	642	3,579
Decrease in other current liabilities	(240)	(242)
Decrease in net defined benefit liability	(6,690)	(1,504)
Total changes in operating liabilities	50,300	17,925
Total changes in operating assets and liabilities	48,938	348
Total adjustments	86,225	40,970
Cash inflow (outflow) generated from operations	53,677	(7,471)
Interest received	2,361	4,044
Dividends received	776	490
Interest paid	(10,521)	(11,060)
Income taxes (paid) received	46	(845)
Net cash flows from (used in) operating activities	46,339	(14,842)
Cash flows from (used in) investing activities:
Acquisition of financial assets at fair value through other comprehensive income	(104,243)	(183,395)
Proceeds from disposal of financial assets at fair value through other comprehensive income	92,692	194,013
Acquisition of financial assets at fair value through profit or loss	(41,945)	-
Proceeds from disposal of financial assets at fair value through profit or loss	30,687	-
Acquisition of investments accounted for using equity method	(30,484)	(43,091)
Acquisition of property, plant and equipment	(26)	(264)
(Increase) decrease in guarantee deposits paid	911	(3,745)
Decrease in other financial assets	23,565	11,792
Decrease in prepayments for business facilities	(6,210)	-
Net cash flows from used in investing activities	(35,053)	(24,690)
Cash flows from (used in) financing activities:
Increase in short-term borrowings	87,030	73,369
Decrease in short-term borrowings	(73,369)	(110,985)
Proceeds from long-term borrowings	-	120,000
Repayment of long-term borrowings	(32,265)	(88,120)
Increase (decrease) in guarantee deposits received	187	(200)
Net cash flow used in financing activities	(18,417)	(5,936)
Net decrease in cash and cash equivalents	(7,131)	(45,468)
Cash and cash equivalents at beginning of period	97,729	143,197
Cash and cash equivalents at end of period	$ 90,598	97,729

See accompanying notes to parent company only financial statements.

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

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

PARA LIGHT ELECTRONICS CO., LTD. (the "Company") was incorporated on September 23, 1987 as a company limited by shares under the Company Act of the Republic of China ("R.O.C."). The Company's common shares were listed on the Taipei Exchange on January 14, 2003. On November 10, 2008, the Company became listed on the Taiwan Stock Exchange as approved by it on September 17, 2008.

The Company mainly engage in the manufacture, processing and sale of various LEDs and LED displays.

(2) Approval date and procedures of the financial statements:

These financial statements were authorized for issue by the Board of Directors on March 5, 2026.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2025:

Amendments to IAS21 "Lack of Exchangeability"
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its financial statements:

IFRS 17 "Insurance Contracts" and amendments to IFRS 17 "Insurance Contracts"
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

The following new and amended standards, which may be relevant to the Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.

• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027
note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

The Company is evaluating the impact on its financial position and financial performance upon the initial adoption of the aforementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies:

The significant accounting policies presented in the financial statements are summarized below. The following accounting policies were applied consistently throughout the periods presented in the financial statements.

(a) Statement of compliance

These financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”).

(b) Basis of preparation

(i) Basis of measurement

Except for the following significant accounts, the financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) Fair value through other comprehensive income is measured at fair value;
3) The net defined benefit liabilities are recognized at present value less the fair value of the plan assets.

(ii) Functional and presentation currency

The functional currency of each entity is determined based on the primary economic environment in which the entity operates. The Company financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Company at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Nonmonetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

1) an investment in equity securities designated as at fair value through other comprehensive income;
2) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
3) qualifying cash flow hedges to the extent that the hedges are effective.

(ii) Foreign operations

The assets and liabilities of foreign operations are translated into the Company's functional currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the Company's functional currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

(d) Classification of current and non-current assets and liabilities

The Company classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Company classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(iii) It is due to be settled within twelve months after the reporting period; or
(iv) It 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.

(e) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes are reclassified as cash equivalents.

(f) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost, fair value through other comprehensive income (FVOCI)—equity investment, or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

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

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Dividend income is recognized in profit or loss on the date on which the Company’s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and accounts receivables, other receivable, guarantee deposit paid and other financial assets), debt investments measured at FVOCI and contract assets.

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date; and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for accounts receivable and contract assets are always measured at an amount equal to lifetime ECL.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company’s historical experience and informed credit assessment as well as forward-looking information.

Due to the counter parties and the performing parties of the Company’s time deposits are financial institutions with investment grade and above, these time deposits are considered to have low credit risk.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 120 days past due.

The Company considers a financial asset to be in default when the financial asset is more than one year past due or the borrower is unlikely to pay its credit obligations to the Company in full.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than 365 days past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
it is probable that the borrower will enter bankruptcy or other financial reorganization; or
the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(h) Investment in associates

Associates are those entities in which the Company has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition, less any accumulated impairment losses.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

The financial statements include the Company’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated Company’s interests in the associate.

When the Company’s share of losses in an associate equals or exceeds its interests, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

(i) Investment in subsidiaries

In preparing the Company’s separate financial statements, investments in subsidiaries controlled by the Company are accounted for using the equity method. Under the equity method, the profit or loss and other comprehensive income attributable to the owners of the Company in the consolidated financial statements, as well as the equity balances, are consistent with those presented in the separate financial statements.

Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

(j) Investment property

Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(k) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1) Buildings and structures (including facilities): 5~50 years
2) Machinery and equipment: 2 years
3) Transportation and miscellaneous equipment: 2~8 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(l) Leases

(i) Identifying a lease

At inception of a contract, the Company assesses whether a 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.

(ii) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method 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. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

Lease payments included in the measurement of the lease liability comprise the following:

fixed payment, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
amounts expected to be payable under a residual value guarantee; and
payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

there is a change in future lease payments arising from the change in an index or rate; or
there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or
there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
there is a change of its assessment on whether it will exercise an extension or termination option; or
there are any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of miscellaneous equipment that have a lease term of 12 months or less and leases of low-value assets, including transportation equipment and others. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(iii) As a lessor

When the Company acts as a lessor, it determines at least commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

If an arrangement contains lease and non-lease components, the Company applies IFRS15 to allocate the consideration in the contract.

(m) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. An impairment loss shall be recognized immediately in profit or loss.

(n) Revenue from contracts with customers

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’s main types of revenue are explained below.

1) Sale of goods

The Company recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

2) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.

(ii) Contract costs

1) Incremental costs of obtaining a contract

The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

2) Costs to fulfil a contract

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (for example, IAS 2 Inventories, IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets), the Company recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify;
the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and
the costs are expected to be recovered.

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Company cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations), the Company recognizes these costs as expenses when incurred.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(o) Transaction of buying back the finished products with raw materials sold

After the Company sells raw materials to its affiliated companies in mainland China for processing and production, the finished products are bought back by the Company directly or through triangular trade, and then sold to its customers. When preparing parent-company-only financial report for this transaction, after considering its economic essence, the Company adopts the method of subcontracting processing, and writes off the operating income and costs in the same amount according to the write-back ratio; and the raw materials that have not been produced and sold back by the affiliated company in mainland China at the end of the period shall be handled by the applicant. The receivables are transferred to the Company's inventory, and the insufficient parts of the receivables are recognized as accounts payable, and they are written off against the inventory purchased by the Company's affiliated companies in mainland China at the end of the period, which is the Company's mark-up.

(p) Government grants

The Company recognizes an unconditional government grant related to a biological asset in profit or loss as other income when the grant becomes receivable. Grants that compensate the Company for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

(q) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability (asset), which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(r) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or refundable is the best estimate measured using the tax rate enacted or substantively enacted on the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

(i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

(ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

1) the same taxable entity; or

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

(s) Earnings per share

The Company discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(t) Operating segments

The Company has disclosed information about operating segments in its consolidated financial statements. Hence no segmental information was disclosed in the separate financial statement.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparing these financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

The information that has the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

Determination of significant influence over an associate

The Company holds less than 20% of the voting or potential voting rights of EBN Technology Corp. (EBN Technology) Nevertheless, the Company has concluded that it has significant influence over the entity because it occupies one-third of the seats on the board of directors of EBN Technology and the chairman of the Company also serves as the chairman of that entity.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows:

(a) The loss allowance of accounts receivable

The Company has estimated the loss allowance of accounts receivable that is based on the risk of a default occurring and the rate of expected credit loss. The Company has considered historical experience, current economic conditions and forward-looking information at the reporting date to determine the assumptions to be used in calculating the impairments and the selected inputs. The relevant assumptions and input values, please refer to note 6(c).

(b) Valuation of inventories

Inventories are stated at the lower of cost or net realizable value, the Company estimates the net realizable value of inventory for normal waste, obsolescence and unmarketable items at the end of reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is determined mainly based on the assumptions of future demand within a specific time horizon. For the estimation of the valuation of inventory, please refer to note 6(d).

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Petty cash	$ 150	65
Checking account deposits	655	1,227
Demand deposits	169,791	183,782
Time deposits	33,525	27,089
Less: restricted bank deposits (presented within current financial assets) (note 8)	(109,363)	(3,007)
Restricted bank deposits (presented within non-current financial assets) (note 8)	(4,160)	(111,427)
	$ 90,598	97,729

Please refer to note 6(q) for the exchange rate risk, interest rate risk, and sensitivity analysis of the financial assets and liabilities of the Company.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(b) Financial assets

(i) Details are set out as follows:

	December 31, 2025	December 31, 2024
Current:
Financial assets at fair value through profit or loss:
Domestic Beneficiary Certificates	$ 11,963	-
Financial assets at fair value through other comprehensive income:
Shares in domestic listed entities	$ 14,736	-

(ii) Equity investments at fair value through other comprehensive income

The Company designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Company intends to hold for the long-term strategic purposes.

In 2025 and 2024, the Company disposed of its current financial assets measured at FVOCI. The fair values at the time of disposal amounted to $92,692 thousand and $194,013 thousand respectively at the time of disposal. The cumulative losses on disposal were $(1,610) thousand and $(6,494) thousand, respectively, and were reclassified from other equity to retained earnings.

In addition, the Company’s investments accounted for using the equity method resulted in cumulative gains (losses) on disposal of $2,131 thousand and $(874) thousand for 2025 and 2024 respectively, which were reclassified from other equity to retained earnings.

(iii) For credit risk (including the impairment of debt investments) and market risk, please refer to note 6(q).

	December 31, 2025	December 31, 2024
Notes receivable from operating activities	$ 1,740	1,641
Accounts receivables	49,663	44,721
Less: Allowance for impairment	(4,822)	(4,754)
	$ 46,581	41,608

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information.

In respect of the Company’s notes and accounts receivable, the ECLs calculated based on the dates of journal entries were as follows:

	December 31, 2025
	Carrying amount of accounts receivable	Weighted-average loss weigh	Loss allowance provision
1 to 120 days	$ 43,579	0.11%	48
121 to 180 days	2,717	3%	88
181 to 360 days	468	10%	47
360 days	4,639	100%	4,639
	$ 51,403		4,822
	December 31, 2024
	Carrying amount of accounts receivable	Weighted-average loss weigh	Loss allowance provision
1 to 120 days	$ 39,638	0.09%	36
121 to 180 days	1,867	3%	57
181 to 360 days	218	10%	22
360 days	4,639	100%	4,639
	$ 46,362		4,754

The loss allowance provisions for notes receivable and accounts receivable were determined as follows:

	2025	2024
Balance at January 1	$ 4,754	5,615
Impairment losses (gains on reversal)	68	(861)
Balance at December 31	$ 4,822	4,754

The Company has neither discounted nor pledged any notes and accounts receivable.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(d) Inventories

(i) Inventories

	December 31, 2025	December 31, 2024
Finished goods	$ 33,517	23,276
Raw materials and supplies	18,069	11,807
	$ 51,586	35,083

In 2025 and 2024, the inventory costs recognized in cost of sales and expenses amounted to $193,595 thousand and $192,070 thousand, respectively.

In 2025 and 2024, the write-down (reversal of write-down) of inventories amounted to $(870) thousand and $90 thousand, respectively.

As of December 31, 2025 and 2024, the Company did not provide any inventories as collateral for its loans.

(e) Investments accounted for using equity method

(i) A summary of the Company’s financial information for investments accounted for using the equity method at the reporting date is as follows:

	December 31, 2025	December 31, 2024
Subsidiaries	$ 1,324,328	1,285,937
Associate	19,152	26,687
	$ 1,343,480	1,312,624

(ii) Subsidiaries

The Company's shares of loss in subsidiaries accounted for using the equity method amounted to $18,426 thousand and $31,418 thousand for the years ended December 31, 2025 and 2024, respectively. In 2025 and 2024, the Company increased the capital of its wholly owned subsidiary, Myanmar Para Light LED & Lighting Accessory Company Limited (“Para Myanmar”), by $25,708 thousand (US $827 thousand) and $8,091 thousand (US $250 thousand), respectively. After the capital increases, the Company’s total investment in Para Myanmar amounted to $268,357 thousand (US $9,050 thousand) and $242,649 thousand (US $8,223 thousand) as of December 31, 2025 and 2024, respectively, and the Company continued to hold a 100% ownership interest.

In 2025, the Company increased the capital of its wholly owned subsidiary, Para Light India Private Limited (“Para India”), by $4,776 thousand (INR 12,500 thousand). After the capital increase, the Company’s total investment in Para India amounted to $15,597 thousand (INR 39,900 thousand) as of December 31, 2025, and the Company continued to hold a 100% ownership interest.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

In 2024, the Company increased the capital of its wholly owned subsidiary, RUI JI Investment Co., Ltd. (RUI JI Investment), by $35,000 thousand. After the capital increase, the Company’s total investment in RUI JI Investment amounted to $60,000 thousand as of December 31, 2024, and the Company continued to hold a 100% ownership interest.

(iii) Associate

The Company’s share of associates’ profits (losses) was as follows:

	2025	2024
Share of loss of associate accounted for using equity method	$ (7,535)	(940)

The financial information of the Company’s associates, which was not adjusted in proportion to the Company’s ownership, is summarized as follows:

	December 31, 2025	December 31, 2024
Total assets	$ 120,272	304,527
Total liabilities	$ 16,295	159,643
	2025	2024
Revenues	$ 94,332	122,408
Net loss (for the period)	$ (40,907)	(5,102)

(f) Property, plant and equipment

The cost and depreciation of the property, plant and equipment of the Company for the years ended December 31, 2025 and 2024, were as follows:

	Land	Buildings and structures	Machinery equipment	Transportation and miscellaneous equipment	Total
Costs:
Balance at January 1, 2025	$ 83,520	102,659	491	29,864	216,534
Additions	-	-	-	26	26
Balance at December 31, 2025	$ 83,520	102,659	491	29,890	216,560
Balance at January 1, 2024	$ 83,520	102,659	491	30,092	216,762
Additions	-	-	-	264	264
Disposal	-	-	-	(492)	(492)
Balance at December 31, 2024	$ 83,520	102,659	491	29,864	216,534

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

	Land	Buildings and structures	Machinery equipment	Transportation and miscellaneous equipment	Total
Accumulated Depreciation:
Balance at January 1, 2025	$ -	29,824	250	29,368	59,442
Depreciation for the year	-	3,138	164	131	3,433
Balance at December 31, 2025	$ -	32,962	414	29,499	62,875
Balance at December 31, 2024	$ -	26,687	86	29,586	56,359
Depreciation for the year	-	3,137	164	274	3,575
Disposal	-	-	-	(492)	(492)
Balance at December 31, 2024	$ -	29,824	250	29,368	59,442
Carrying amount:
Balance at December 31, 2025	$ 83,520	69,697	77	391	153,685
Balance at December 31, 2024	$ 83,520	72,835	241	496	157,092
Balance at January 1, 2024	$ 83,520	75,972	405	506	160,403

As a portion of land, buildings and structures was no longer in use, the Company decided to have them leased out to other parties and transferred from property, plant and equipment to investment property. Please refer to note 6(j).

As of December 31, 2025 and 2024, the property, plant and equipment of the Company had been pledged as collateral for long-term borrowings; please refer to note 8.

(g) Investment property

Investment properties include the Company’s owned assets, office buildings leased to third parties under operating leases, and right-of-use assets recognized for leased rights. The non-cancellable initial lease term of the investment properties is three years, and certain lease contracts grant the lessee an option to extend the lease upon expiry.

The rental income from the leased investment properties is fixed. However, some lease contracts require the lessee to reimburse the insurance premium, the amount of which is determined separately each year.

	Land	Buildings and structures	Total
Cost:
Balance at January 1, 2025	$ 32,875	21,312	54,187
Balance at December 31, 2025	$ 32,875	21,312	54,187
Balance at January 1, 2024	$ 32,875	21,312	54,187
Balance at December 31, 2024	$ 32,875	21,312	54,187

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

	Land	Buildings and structures	Total
Accumulated Depreciation:
Balance at January 1, 2025	$ -	10,898	10,898
Depreciation for the year	-	401	401
Balance at December 31, 2025	$ -	11,299	11,299
Balance at January 1, 2024	$ -	10,498	10,498
Depreciation for the year	-	400	400
Balance at December 31, 2024	$ -	10,898	10,898
Carrying amount:
Balance at December 31, 2025	$ 32,875	10,013	42,888
Balance at December 31, 2024	$ 32,875	10,414	43,289
Balance at January 1, 2024	$ 32,875	10,814	43,689

The fair value of the Company's investment property, determined with reference to the recent transaction prices of similar property in the vicinity, are set out as follows:

	December 31, 2025	December 31, 2024
Fair value of investment property	$ 107,439	107,439

As of December 31, 2025 and 2024, the Company's investment property had been pledged as collateral for long-term borrowings. Please refer to Note 8.

(h) Short-term borrowings

(i) Short-term borrowings

	December 31, 2025	December 31, 2024
Loans of credit	$ 46,000	46,440
Letters of credit	12,694	14,422
Loans secured by collateral	28,336	12,507
	$ 87,030	73,369
Unused short-term credit lines	$ 55,174	108,783
Range of interest rates(%)	2.328%~2.875%	2.220%~2.480%

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(ii) Long-term borrowings

Loan Bank	Range of interest rates	Maturity Date	December 31, 2025	December 31, 2024
Mega International Commercial Bank	2.395%	124.06.29	$ 26,994	29,836
Mega International Commercial Bank	2.5457%	115.10.28	30,000	30,000
Taiwan Cooperative Bank	2.625%	117.10.19	32,464	43,504
Taishin Bank	0.500%–2.220%	116.09.30	24,168	30,000
Taishin Bank	2.740%–2.750%	125.06.28	37,864	41,596
Taishin Bank	1.780%	114.06.28	-	2,125
Chang Hwa Bank	2.625%	115.05.18	1,324	8,018
			152,814	185,079
Less: current portion			(34,078)	(32,901)
Total			$ 118,736	152,178
Unused long-term credit lines			$ -	-

(iii) The Company has provided bank deposits, certificates of deposit, land, and buildings to secure the aforementioned loans, please refer to note 8.

(i) Bonds payable

The Company’s bonds payable were as follows:

	December 31, 2025	December 31, 2024
Secured corporate bonds	$ 300,000	300,000
Less: current portion	(300,000)	-
Carrying amounts	$ -	300,000

On June 8, 2023, the Company issued its 1st secured ordinary corporate bond under the following conditions:

Amount in issue: $300,000 thousand
Maturity: 3 years
Maturity: Fixed annual interest rate of 1.50%
Calculation method: From the date of issue, annual simple interest shall be charged according to the coupon rate.
Repayment method: Principal shall be repaid in balloon payment 3 years after the date of issue.
Security method: The corporate bonds are secured by Taiwan Cooperative Bank, Ltd. according to a guaranty agreement.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(j) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

	December 31, 2025	December 31, 2024
Present value of the defined benefit obligations	$ (11,956)	(19,478)
Fair value of plan assets	10,958	11,616
Net defined benefit liabilities	$ (998)	(7,862)

1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company’s Bank of Taiwan labor pension reserve account balance amounted to $10,958 thousand of December 31, 2025. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

2) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Company were as follows:

	2025	2024
Defined benefit obligations at January 1	$ (19,478)	(20,074)
Current service costs and interest cost	(307)	(238)
Remeasurements
—Actuarial (loss) gain arising from financial assumptions	(227)	519
—Gain (loss) arising from experience adjustments	(346)	315
Benefits paid	8,402	-
Defined benefit obligations at December 31	$ (11,956)	(19,478)

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

3) Movements of defined benefit plan assets

The movements in the fair values of the Company’s defined benefit plan assets were as follows:

	2025	2024
Fair value of plan assets at January 1	$ 11,616	9,107
Interest income	183	107
Remeasurements
—Return on plan assets excluding interest income	747	767
Contributions paid by the employer	190	1,635
Benefits paid	(1,778)	-
Fair value of plan assets at December 31	$ 10,958	11,616

4) Expenses recognized in profit or loss

The expenses recognized by the Company are detailed as follows:

	2025	2024
Net interest of net liabilities for defined benefit obligations	$ 124	131
Selling expenses	$ 19	36
Administration expenses	97	92
Research and Development expenses	8	3
	$ 124	131

5) Remeasurements of net defined benefit liabilities recognized in other comprehensive income

Remeasurements of net defined benefit liabilities included in other comprehensive income were as follows:

	2025	2024
Balance at January 1	$ 8,363	6,762
Recognized during the period	174	1,601
Balance at December 31	$ 8,537	8,363

6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

	2025.12.31	2024.12.31
Discount rate	1.35 %	1.60 %
Future salary increase rate	2.00 %	2.00 %

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date for 2025 is $180 thousand.

The weighted-average lifetime of the defined benefits plans for the years ended December 31, 2025 and 2024 is 7 and 6 years.

7) Sensitivity Analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

	Impact on the defined benefit obligations
	0.25% Increased	0.25% Decreased
December 31, 2025
Discount rate	$ (227)	233
Future salary increasing rate	231	(226)
December 31, 2024
Discount rate	(312)	322
Future salary increasing rate	320	(312)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

(ii) Defined contribution plans

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $2,212 thousand and $1,994 thousand for the years ended December 31, 2025 and 2024, respectively.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(k) Income taxes

(i) The Company's income tax expenses (income) are detailed as follows:

	2025	2024
Current tax expense
Current period	$ -	-
Deferred tax expense(income)
Origination and reversal of temporary differences	(847)	2,698
Income tax expense (income)	$ (847)	2,698

During 2025 and 2024, no income tax was included within other comprehensive income.

The reconciliation of the Company’s income tax expense to its loss before income tax is presented as follows:

	2025	2024
Losses before tax	$ (32,548)	(48,441)
Income tax using the Company’s domestic tax rate	$ (6,510)	(9,688)
Tax-exempt dividend income	(156)	98
Share of profit of associates and joint ventures accounted for using the equity method	5,192	6,471
Tax effects arising from expenses not recognizable pursuant to laws	1,200	1,200
Difference from prior-year income tax estimate and others	(3,975)	996
Change in unrecognized temporary differences	3,402	3,621
Total	$ (847)	2,698

(ii) Deferred tax assets and liabilities

1) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

	December 31, 2025	December 31, 2024
Tax effect of deductible Temporary Differences	$ 1,049	1,049
Unused tax losses	30,455	27,053
	$ 31,504	28,102

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

2) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2025 and 2024 were as follows:

Deferred Tax Assets:

	Write-downs of inventories	Unused tax losses	Others	Total
Balance at January 1, 2025	$ 2,424	5,859	3,537	11,820
Recognized in profit or loss	(173)	379	338	544
Balance at December 31, 2025	$ 2,251	6,238	3,875	12,364
Balance at January 1,2024	$ 2,406	5,859	3,868	12,133
Recognized in profit or loss	18	-	(331)	(313)
Balance at December 31, 2024	$ 2,424	5,859	3,537	11,820

Deferred Tax Liabilities:

	Others
Balance at January 1, 2025	$ (5,203)
Recognized in profit or loss	303
Balance at December 31, 2025	$ (4,900)
Balance at January 1, 2024	$ (2,819)
Recognized in profit or loss	(2,384)
Balance at December 31, 2024	$ (5,203)

(iii) The Company's income tax returns for the years up to 2023 have been examined and approved by the R.O.C. income tax authorities.

(iv) The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. As of December 31, 2025, the information of the Company's unused tax losses for which no deferred tax assets were recognized are as follows:

Year of loss	Total deductible amount	Unused tax losses	Expiry date
2016	$ 6,528 (amount approved)	6,528	2026
2018	1,311 (amount approved)	1,311	2028
2019	70,901 (amount approved)	70,901	2029
2020	45,065 (amount approved)	45,065	2030
2021	1,722 (amount approved)	1,722	2031
2022	4,798 (amount approved)	4,798	2032
2023	28,487 (amount approved)	28,487	2033
2024	18,999 (amount estimate)	18,999	2034
2025	5,653 (amount estimate)	5,653	2035
	$ 183,464	183,464

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(v) Since funds are needed for expanding the overseas operations, the earnings of the Company's overseas subsidiaries will not be remitted back in the short run. In accordance with paragraph A39 of IAS 12 “Income Taxes”, the earnings' book-tax difference shall be considered permanent.

(l) Capital and other equity

On May 12, 2025, the Company retired 1,085 thousand treasury shares with a carrying amount of $7,936 thousand. As a result, share capital decreased by $10,850 thousand and capital surplus increased by $2,914 thousand. The related amendment to the registration has been duly completed. On June 4, 2010, the Company passed a resolution in a general shareholders' meeting to increase its authorized capital to $2,000,000 thousand. As of December 31, 2025 and 2024, authorized share capital amounted to $2,000,000 thousand with a par value of $10 per share. Paid-in capital amounted were $1,155,348 thousand and $1,166,198 thousand, respectively.

(i) Capital surplus

	December 31, 2025	December 31, 2024
Share premium	$ 1,800	1,800
Treasury share transactions	7,837	4,923
Elapsed share options—convertible bonds issued	18,040	18,040
Employee share options (Expired during the year)	4,076	4,076
	$ 31,753	28,839

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(ii) Retained earnings

The Company's Articles of Incorporation provide that, for each fiscal year, any net profit after tax shall first be used to offset accumulated losses (including adjustments to unappropriated earnings). Of the remaining balance, 10% shall be allocated as legal reserve unless the accumulated legal reserve has reached the Company's paid-in capital. Thereafter, a special reserve shall be appropriated or reversed in accordance with applicable laws or regulatory requirements, after which dividends for Class A preferred shares for the current year, as well as any undistributed dividends accumulated from prior years, shall be distributed in priority. Any remaining earnings, together with the undistributed retained earnings at the beginning of the year (including adjustments to unappropriated earnings), shall be distributed based on a profit distribution proposal prepared by the Board of Directors and approved at the shareholders' meeting.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

The Company’s dividend policy, formulated with consideration of future working capital requirements (WCR), sound financial planning, the investment environment, and the interests of shareholders, stipulates that no less than 10% of distributable earnings shall be distributed to shareholders as cash or stock dividends. If the cash dividend per share is less than $0.2, the Board of Directors may resolve to distribute stock dividends instead. If the stock dividend per share is less than $0.1, the Board of Directors may resolve to distribute cash dividends instead, with such distribution becoming effective upon approval by the shareholders’ meeting.

1) Legal reserve

As stipulated by the R.O.C. Company Act, 10% of a company’s net profit after tax shall be appropriated as legal reserve until the amount of accumulated legal reserve equals that of total paid-in capital. When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

In accordance with JIN-GUAN-ZHENG-FA-Zi order no.1010012865 the Company recognized the special reserve from net income of current year and undistributed earnings of prior year for the items deducted from the equity of other shareholders’ equity of the current year. For the deducted items for the equity of other shareholders’ equity of the prior year, the special reserve should be recognized from undistributed earnings of prior year and cannot be distributed. Subsequently, while there is reversal of deducted items for the equity of other shareholders’ equity, the reversal part can be distributed. As of December 31, 2025 and 2024, the balances of special reserve were $64,773 thousand and $133,302 thousand, respectively.

3) Earnings distribution

On June 5, 2025 and June 7, 2024, the earnings appropriation for 2024 and 2023 was resolved in the general shareholders’ meetings. The amounts of dividends distributed to owners were as follows:

	2024		2023
	Amount per share	Total amount	Amount per share	Total amount
Dividends distributed to ordinary shareholders:	$ -		-

(iii) Treasury shares

As stipulated by Article 28-2 of the Securities and Exchange Act, the Company, in order to transfer shares to employees, repurchased 1,085 thousand treasury shares at a cost of $7,936 thousand during 2020. The Company subsequently retired the treasury shares on May 12, 2025.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(iv) Other equity

	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total
Balance at January 1, 2025	$ (50,486)	(14,287)	(64,773)
Exchange differences on foreign operations	18,302	-	18,302
Unrealized gains from financial assets measured at fair value through other comprehensive income	-	5,316	5,316
Share of other comprehensive income of associates accounted for using the equity method – items that will not be reclassified to profit or loss	-	6,505	6,505
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	1,610	1,610
Disposal by an equity-accounted investee of equity instruments measured at fair value through other comprehensive income	-	(2,131)	(2,131)
Balance at December 31, 2025	$ (32,184)	(2,987)	(35,171)
Balance at January 1, 2024	$ (113,978)	(24,575)	(138,553)
Exchange differences on foreign operations	63,492	-	63,492
Unrealized losses from financial assets measured at fair value through other comprehensive income	-	(5,199)	(5,199)
Share of other comprehensive income of associates accounted for using the equity method – items that will not be reclassified to profit or loss	-	8,119	8,119
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	6,494	6,494
Disposal by an equity-accounted investee of equity instruments measured at fair value through other comprehensive income	-	874	874
Balance at December 31, 2024	$ (50,486)	(14,287)	(64,773)

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(m) Revenue from contracts with customers

(i) Disaggregation of revenues

	2025	2024
Primary geographical markets:
Asia	$ 245,961	225,873
America	46,068	45,802
Europe	5,559	4,343
Others	2,868	2,941
Sales returns and allowances	(880)	(1,028)
Intercompany eliminations	(18,499)	(14,596)
	$ 281,077	263,335
Major products/services lines:
Sale of LEDs	$ 281,077	263,335

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable and Accounts receivables	$ 51,403	46,362	45,422
Less: Allowance for impairment	(4,822)	(4,754)	(5,615)
Total	$ 46,581	41,608	39,807

Please refer to note 6(c) for the disclosure of accounts receivable and the impairment thereof.

(n) Employee and Director Remunerations

Based on the amendments to the Articles of Incorporation approved on June 5, 2025, if the Company has annual profits, it shall allocate 8% to 12% of the profits as employee remuneration and no more than 3% (inclusive) as director remuneration. However, if the Company has accumulated losses, the amounts shall be set aside in advance to cover such losses. Of the total amount of employee remuneration mentioned above, no less than 60% shall be allocated to entry-level employees. Employee remuneration may be distributed in the form of shares or cash, and the recipients may include employees of subsidiaries who meet certain specified criteria. The conditions for eligibility and the methods of distribution are authorized to be determined by the Board of Directors and shall be reported to the shareholders' meeting. Prior to the amendment, the Articles of Incorporation stipulate that, if the Company had annual profits, it shall allocate 8% to 12% of the profits as employee remuneration and no more than 3% (inclusive) as director remuneration. The Board of Directors shall resolve to distribute the remunerations in shares or cash, and the recipients may include affiliates' employees who meet certain conditions. However the company has accumulated losses, the compensation amount should be reserved in advance.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

For the years ended 2025 and 2024, the Company incurred accumulated deficits. Accordingly, the estimated amounts of employee remuneration were $0 thousand and $0 thousand, and the estimated amounts of director remuneration were also $0 thousand and $0 thousand, respectively. The estimates were calculated based on the Company’s profit before tax and before employee and director remuneration for each period, multiplied by the respective allocation percentages stipulated in the Company’s Articles of Incorporation. These estimated remunerations were recognized as operating expenses for 2025 and 2024. Relevant information is available on the Market Observation Post System. The amounts of employee and director remuneration resolved by the Board of Directors did not differ from the estimated amounts recognized in the Company’s financial statements for 2025 and 2024.

(o) Non-operating income and expenses

(i) Other income

	2025	2024
Rent income	$ 4,816	4,925
Dividend income	776	490
Gains on financial assets at fair value through profit	705	-
Others	1,182	1,486
	$ 7,479	6,901

(ii) Other gains and losses

	2025	2024
Foreign exchange gains	$ 43	4,266
Others	95	-
	$ 138	4,266

(iii) Finance costs

	2025	2024
Interest expenses on bank loans, and corporate bond	$ (10,503)	(11,048)

(p) Earnings per share

(i) Basic earnings per share:

1) Profit (loss) attributable to ordinary shareholders of the Company

	2025	2024
Profit (loss) attributable to ordinary shareholders of the Company	$ (31,701)	(51,139)

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

2) Weighted-average number of ordinary shares outstanding

	2025	2024
Weighted average number of ordinary shares(In thousands)	115,535	115,535

(ii) Diluted earnings per share

1) Profit (loss) attributable to ordinary shareholders of the Company (diluted)

	2025	2024
Profit (loss) attributable to ordinary shareholders of the Company (diluted)	$ (31,701)	(51,139)

2) Weighted-average number of ordinary shares outstanding (diluted)

	2025	2024
Weighted average number of ordinary shares (in thousands) (diluted)	115,535	115,535

(q) Financial instruments

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

2) Concentration of credit risk

During 2025, approximately 20 percent of the Company’s revenue (2024: 17 percent) was attributable to sales to a single customer. However, there was no significant concentration of credit risk.

3) Receivables and debt securities

For credit risk exposure of accounts receivable and notes receivable, please refer to note 6(c).

Debt investments at fair value through other comprehensive income include government bonds, listed and unlisted debt securities.

All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12-month expected credit losses. Regarding how the financial instruments are considered to have low credit risk, please refer to note 4(f).

(ii) Liquidity risk

The following table sets out the contractual maturities of financial liabilities, including the impact of estimated interest.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

	Carrying amount	Contractual cash flows	Within 6 months	6 to 12 months	1 to 2 years	2 to 5 years	Over 5 years
December 31, 2025
Nonderivative financial liabilities
Bank loans	$ 239,844	246,946	106,428	48,014	27,797	51,703	13,004
Bonds payable	300,000	302,250	302,250	-	-	-	-
Accounts payable	210,112	210,112	210,112	-	-	-	-
Guarantee deposits received	812	812	-	-	812	-	-
	$ 750,768	760,120	618,790	48,014	28,609	51,703	13,004
December 31, 2024
Nonderivative financial liabilities
Bank loans	$ 258,448	268,838	28,629	81,588	67,535	75,458	15,628
Bonds payable	300,000	306,750	-	4,500	302,250	-	-
Accounts payable	153,524	153,524	153,524	-	-	-	-
Guarantee deposits received	625	625	-	-	625	-	-
	$ 712,597	729,737	182,153	86,088	370,410	75,458	15,628

The Company does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(iii) Currency risk

1) Exposure to foreign currency risk

The Company's financial assets and liabilities that were exposed to significant currency risk were as follows:

	December 31, 2025		December 31, 2024
	Exchange rates	NTD	Exchange rates	NTD
Financial assets
Monetary items
USD	$ 31.3800	117,655	32.7350	132,661
HKD	4.0080	402	4.1920	517
EUR	36.7000	156	33.9400	73
JPY	0.1988	1	0.2079	1
		$ 118,214		133,252
Financial liabilities
Monetary items
USD	31.3800	199,515	32.7350	137,045
HKD	4.0080	1,299	4.1920	1,213
		$ 200,814		138,258

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

2) Sensitivity analysis

The Company's exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on financial assets and financial liabilities that are denominated in foreign currencies. A strengthening (weakening) of 1% of the NTD against foreign currencies as of December 31, 2025 and 2024, with all other variables held constant, would have increased or decreased the profit after tax by $661 thousand and $40 thousand, respectively.

3) Foreign exchange gain and loss on monetary items

As the Company has various functional currencies, its foreign exchange gains (losses) arising from monetary items are disclosed on an aggregate basis. During 2025 and 2024 (realized and unrealized) foreign exchange gains amounted to $43 thousand and $4,266 thousand.

(iv) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Company's financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the Company management's assessment of the reasonably possible interest rate change.

If the interest rate had increased/decreased by 1%, the Company's profit after tax would have decreased/increased by $2,398 thousand and $2,584 thousand for 2025 and 2024 respectively, with all other variable factors remaining constant. This is mainly due to the Company's borrowings at variable rates.

(v) Other price risk

For the years ended December 31, 2025 and 2024, the sensitivity analysis for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

	2025		2024
Prices of securities at the reporting date	Post-tax other comprehensive income	Post-tax profit or loss	Post-tax other comprehensive income	Post-tax profit or loss
1% increase	$ 147	120	-	-
1% decrease	$ (147)	(120)	-	-

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(vi) Fair value information

1) Categories and fair values of financial instruments

The fair value of financial assets and liabilities at fair value through profit or loss, financial instruments used for hedging, and financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Company's financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required :

	December 31, 2025
	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Domestic Beneficiary Certificates	$ 11,963	11,963	-	-	11,963
Subtotal	11,963	11,963	-	-	11,963
Financial assets at fair value through other comprehensive income
Shares in domestic listed entities	14,736	14,736	-	-	14,736
Subtotal	14,736	14,736	-	-	14,736
Financial assets measured at amortized cost
Cash and cash equivalents	90,598	-	-	-	-
Notes receivable and accounts receivable (including related parties)	56,772	-	-	-	-
Other financial assets (including current and non-current)	115,160	-	-	-	-
Subtotal	262,530	-	-	-	-
Total	$ 289,229	26,699	-	-	26,699
Financial liabilities at amortized cost
Bank loans	$ 239,844	-	-	-	-
Bonds payable	300,000	-	-	-	-
Accounts payable	210,112	-	-	-	-
Guarantee deposits received	812	-	-	-	-
Total	$ 750,768	-	-	-	-

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

	December 31, 2024
	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	$ 97,729	-	-	-	-
Accounts receivable and notes receivable (include related parties)	54,515	-	-	-	-
Other financial assets (including current and non-current)	157,192	-	-	-	-
Subtotal	309,436	-	-	-	-
Total	$ 309,436	-	-	-	-
Financial liabilities measured at amortized cost
Bank loans	$ 258,448	-	-	-	-
Bonds payable	300,000	-	-	-	-
Accounts payable	153,524	-	-	-	-
Guarantee deposits received	625	-	-	-	-
Total	$ 712,597	-	-	-	-

2) Valuation techniques for financial instruments measured at fair value

If a financial instrument has a quoted price in an active market, that quoted price shall be used as its fair value. The market prices published by major exchanges, as well as the quoted prices of actively traded central government bonds announced by the Taipei Exchange, serve as the basis for determining the fair values of listed equity instruments and debt instruments with an active market.

If the quoted price can be obtained from the securities exchanges, brokers, underwriters, industrial guilds, pricing institutions or official departments timely and frequently, and the price represents the actual and usual transaction of fair market, then the financial instrument has the quoted price in an active market. Once the conditions are not satisfied, the market is considered as inactive. Normally, a significant difference between selling and buying price, a significant increase in the difference between selling and buying price or rare transactions are indicators of inactive market.

Besides the financial instruments above which have the active market, the fair values of other financial instruments are obtained through valuation technique or counterparty quotation. The fair value obtained by valuation technique can refer to the fair value of financial instrument which has the similar substantive conditions and features, the discounted cash flow method or other valuation technique, such as operating the model with market information of the reporting date (e.g. yield curves from securities exchanges and the interest rates of commercial papers from Reuters).

3) Transfers among levels of fair value hierarchy

During 2025 and 2024, there was no transfer from one level of fair value hierarchy to another.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(r) Financial risk management

The Company is exposed to the following risks:

(i) Overview

The Company have exposures to the following risks from its financial instruments:

1) Credit risk
2) Liquidity risk
3) Market risk

The following likewise discusses the Company's objectives, policies and processes for measuring and managing the above-mentioned risks. For more disclosures about the quantitative effects of these risk exposures, please refer to the respective notes in the accompanying financial statements.

(ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board is responsible for developing and controlling the Company's risk management policies.

The Company risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company Audit Committee oversees how management monitors compliance with the Company's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(iii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investments in debt securities.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

1) Accounts receivable

The Company established a credit policy to obtain the necessary collateral to mitigate risks arising from financial loss due to default risk. The Company will transact with corporations having credit ratings equivalent to investment grade, and such ratings are provided by independent rating agencies. Where it is not possible to obtain such information, the Company will assess the ratings based on other publicly available financial information and records of transactions with its major customers. Purchase limits are established for each customer and represent the maximum open amount without requiring approval from the Finance Department. The limits were reviewed periodically. The transactions between the Company and the clients who are not satisfied the Company's credit rating can only process on the advance receiving basis.

If the Company retains the rights to the products that have already been sold, the Company also have the right to require collateral if payment has not been received. The Company does not require any collateral for trade and other receivables.

2) Investments

The exposure to credit risk for the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Company's finance department. The Company only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Company does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

3) Guarantees

The Company's policy is to provide financial guarantees only to wholly owned subsidiaries. As of December 31, 2025 and 2024, the Company has not provided endorsement/guarantee for any unrelated party.

(iv) Liquidity risk

The Company manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Company's management supervises the banking facilities and ensures compliance with the terms of loan agreements.

Loans and borrowings from the bank form an important source of liquidity for the Company. As of December 31, 2025 and 2024 the Company had unused bank facilities of $55,174 thousand and $108,783 thousand, respectively.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

1) Currency risk

Please refer to note 6(q)iii(1) for details of currency risk exposure.

2) Interest rate risk

The Company adopts a policy of its exposure to changes in interest rates on borrowings is on a fixed-rate basis.

3) Other market price risk

The Company is exposed to equity price risk due to the investments in equity securities.

This is a strategic investment and is not held for trading. The Company does not actively trade in these investments as the management of the Company minimizes the risk by holding different investment portfolios. The Company assigned a specific team to supervise and assess the equity price risk so as to avoid minimize the risk from the hedging position.

(s) Capital management

The Company's objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return on shareholders, to maintain the interest of other related parties, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to the shareholders, reduce the capital for redistribution to shareholders, issue new shares, or sell assets to settle any liabilities.

The Company and other entities in the same industry use the debt-to-equity ratio to manage capital. This ratio is the total net debt divided by the total capital. The net debt from the balance sheet is derived from the total liabilities less cash and cash equivalents. The total capital and equity include share capital, capital surplus, retained earnings, and other equity plus net debt.

During 2025 and 2024 the Company adopted the same capital management strategy, which was to ensure the ability to obtain financing at reasonable costs.

The debt-to-equity ratios on December 31, 2025 and 2024 are below:

	December 31, 2025	December 31, 2024
Total liabilities	$ 779,455	748,067
Less: Cash and cash equivalents	90,598	97,729
Net liabilities	$ 688,857	650,338
Total equity	$ 1,812,647	1,775,374
Debt-to equity ratio	38 %	37 %

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(t) Investing and financing activities not affecting current cash flow

The Company did not have non-cash investing and financing activities in the years ended December 31, 2025 and 2024.

The movement of debt from financing activities is below:

	2025.1.1	Cash flow	Non-cash movement		December 31, 2025
			Foreign exchange movement	Others
Long-term borrowings	$ 185,079	(32,265)	-	-	152,814
Short-term borrowings	73,369	13,661	-	-	87,030
Bonds payable	300,000	-	-	-	300,000
Guarantee deposits received	625	187	-	-	812
Total liability from financing activities	$ 559,073	(18,417)	-	-	540,656
	2024.1.1	Cash flow	Non-cash movement		December 31, 2024
			Foreign exchange movement	Others
Long-term borrowings	$ 153,199	31,880	-	-	185,079
Short-term borrowings	110,985	(37,616)	-	-	73,369
Bonds payable	300,000	-	-	-	300,000
Guarantee deposits received	825	(200)	-	-	625
Total liability from financing activities	$ 565,009	(5,936)	-	-	559,073

(7) Related-party transactions

(a) Parent company and ultimate controlling party

The Company is the ultimate controlling party of the Consolidated Company.

(b) Names and relationship with the Company

The followings are entities that have had transactions with related party during the periods covered in the financial statements.

Name of related party	Relationship with the Company
Para Light Electronics HK Limited(PARA HK)	Subsidiary
Para Light Corp. (PARA USA)	Subsidiary
MYANMAR PARA LIGHT LED & LIGHTING ACCESSORY COMPANY LIMITED(PARA MYANMAR)	Subsidiary
RUI JI INVESTMENT CO., LTD. (RUI JI INVESTMENT)	Subsidiary
PARA LIGHT NANJING ELECONTRICS CO., LTD. (PARA LIGHT NANJING)	Subsidiary
PARA LIGHT Lian Yun Gang ELECTRONICS CO., LTD. (PARA LIGHT Lian Yun Gang ELECTRONICS)	Subsidiary

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(i) Commissioned processing

The Company sells raw materials to its affiliates in mainland China for processing and production, and some of its finished products are purchased directly by the Company through transshipment in third places or sold to the Company's customers in a triangular trade manner. The Company has applied the accounting treatment on material processing by writing off the sales income and cost in the same amount according to the proportion of resale, resulting in the amount of $18,499 thousand and $14,596 thousand to be disregarded as sales, hence, were written off in the parent-company-only financial report. Furthermore, the raw materials that have not yet been sold back by the Company amounted to $5,957 thousand and $4,245 thousand as of December 31, 2025 and 2024, respectively, resulting in the accounts receivable to be transferred to inventory after deducting the Company's markup, wherein the insufficient part of the transfer had been included as accounts payable.

The dematerialization processing fees paid by the Company's affiliates in mainland China in 2025 and 2024 did not include the Company's supply costs of $130,966 thousand and $136,466 thousand, respectively.

(ii) Operating revenue

The amounts of significant sales by the Company to related parties are as follows:

Items	Name of related party	2025	2024
Subsidiaries:
Operating revenue	PARA USA	$ 43,944	43,032
	PARA LIGHT Lian Yun Gang ELECTRONICS	37,627	31,976
	PARA HK	606	1,308
		$ 82,177	76,316

The Company's sales price for the above related parties, which is based on the general market price, with the payment term 105 to 150 days, is not significantly different from those of other customers. Moreover, the payment term for the Company's sales to PARA HK and PARA USA is 120 to 180 days after monthly statement, which is subject to adjustment according to their funding needs. Furthermore, the sales to PARA LIGHT NANJING and PARA LIGHT Lian Yun Gang ELECTRONICS are based on their working capital requirements.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(iii) Receivables from related parties

The details of the Company's receivables from related parties are as follows:

Items	Name of related party	December 31, 2025	December 31, 2024
Accounts receivable	Subsidiaries:
	PARA HK	$ 74	260
	PARA USA	10,117	12,647
		$ 10,191	12,907
Items	Name of related party	December 31, 2025	December 31, 2024
Other non-current financial assets	Subsidiaries:
	PARA LIGHT NANJING	$ -	23,564

Receivables that are overdue by more than three months beyond the normal credit period for sales are reclassified as other receivables from related parties and presented under other financial assets.

(iv) Processing overheads

	2025	2024
Subsidiaries:
PARA MYANMAR	$ 19,063	12,000

(v) Payables from related parties

The details of the accounts payable to related parties arising from the purchase and outsourcing of processing by the Company are as follows:

Items	Name of related party	December 31, 2025	December 31, 2024
Accounts payable	subsidiaries:
	PARA LIGHT Lian Yun Gang ELECTRONICS	$ 189,262	130,103
	PARA LIGHT NANJING	127	-
	PARA MYANMAR	-	1,953
		$ 189,389	132,056

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(vi) Rent revenue

Subsidiaries:
RUI JI INVESTMENT

(d) Key management personnel compensation

Key management personnel compensation comprised:

	2025	2024
Short-term employee benefits	$ 7,410	6,379
Post-employment benefits	115	169
	$ 7,525	6,548

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Object	December 31, 2025	December 31, 2024
Land (including investment property)	Bank loans and corporate bonds	$ 116,395	116,395
Building (including investment property)	Bank loans and corporate bonds	78,134	80,216
Cash, demand deposits, and certificates of deposits (included within other current and non-current financial assets)	Endorsements, Guarantees, and Bank Loans	113,523	114,434
		$ 308,052	311,045

(9) Significant Commitments and contingencies:

As of December 31, 2025 and 2024, the unused letters of credit issued by the Company to purchase raw materials amounted to $808 thousand and $1,667 thousand respectively.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(12) Other:

(a) A summary of employee benefits, depreciation, and amortization, by function, is as follows:

By item	For the year ended December 31
	2025			2024
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits
Salary	-	40,923	40,923	-	40,735	40,735
Labor and health insurance	-	3,812	3,812	-	3,635	3,635
Pension	-	2,336	2,336	-	2,125	2,125
Remuneration of directors	-	225	225	-	270	270
Others	-	3,618	3,618	-	2,399	2,399
Depreciation	-	3,834	3,834	-	3,975	3,975
Amortization	-	-	-	-	-	-

For the years ended December 31, 2025 and 2024, the total numbers of employees and employee benefits were as follows:

	2025	2024
Number of employees	41	45
Number of directors who were not employees	4	4
The average employee benefit	$ 1,327	1,193
The average salaries and wages	$ 1,106	994
The adjustment rate of average employee salaries	11.26 %	5.97 %

The Company's compensation policies (including directors, managers and employees) are as below:

(i) Directors and managers

The Company has set up a Remuneration Committee to regularly review the remuneration policies and systems of the Company's directors and managers in accordance with the "Measures for the Administration of Remuneration of Directors and Managers", and make recommendations to the Board of Directors.

(ii) Employees

Through the establishment of an objective salary system, the Company attracts outstanding talents externally, has fairness and growth internally, and pays based on objective conditions such as academic qualifications, positions and grades. At the same time, according to the annual business plan, work with employees to formulate annual performance goals, and adjust year-end bonuses and annual salary adjustments according to the results of performance appraisal.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Company:

(i) Loans to other parties:

Unit: Thousands of NTD

Number	Name of lender	Name of borrower	Account name	Refund price	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rate during the period	Purposes of fund financing for the borrower (Note1)	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits (Note2)	Maximum limit of fund financing (Note3)
													Item	Value
0	The Company	PARA LIGHT NANJING	Other Receivables	Yes	20,899	-	-	-	1	-	N/A	-	N/A	-	112,379	224,758
1	PARA LIGHT NANJING	YUN DING Real Estate Development	Other Receivables	Yes	3,654	3,588	3,588	1.2	2	-	Working Capital Requirement	3,588	N/A	-	64,916	129,832
1	PARA LIGHT NANJING	PARA LIGHT Lian Yun Gang Investment	Other Receivables	Yes	9,135	-	-	3.3	2	-	Working Capital Requirement	-	N/A	-	64,916	129,832

Note: 1. Transaction counterparty.
2. Entity with short-term financing needs

Note 2: The maximum limit of loans made by the Company and its subsidiaries to transaction counterparties shall not exceed 10% of the respective counterparty’s net worth.

Note 3: The maximum limit of loans made by the Company and its subsidiaries to other parties shall not exceed 20% of the respective counterparty’s net worth.

Note 4: The Company’s loans to PARA LIGHT NANJING, arising from overdue receivables from sales, amounted to US$640 thousand for the year, and the closing balance was US$0 thousand; related transactions have been written-off.

Note 5: PARA LIGHT NANJING has fully recognized impairment losses on its loans to YUN DING Real Estate Development.

(ii) Guarantees and endorsements for other parties:

Unit: Thousands of NTD

No.	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ Guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ Guarantees to third parties on behalf of parent company	Endorsements/ Guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0	The Company	PARA LIGHT Lian Yun Gang ELECTRONICS	3	224,758	79,572	62,768	-	-	5.58 %	561,895	Y	N	Y
1	PARA LIGHT NANJING	PARA LIGHT Lian Yun Gang ELECTRONICS	3	129,832	65,676	44,847	22,199	-	6.91 %	324,592	N	N	Y
2	PARA LIGHT Lian Yun Gang ELECTRONICS	PARA LIGHT NANJING	3	108,847	31,973	31,393	31,348	-	5.77 %	272,118	N	N	Y

Note 1: The entity owning more than 50% voting rights in the Company, directly or indirectly.

Note 2: The maximum limit of endorsements/guarantees provided by the Company for subsidiaries in which it holds more than 90% of the equity interests shall not exceed 20% of the Company’s net worth; and the maximum limit of endorsements/guarantees provided by subsidiaries for other subsidiaries that are directly or indirectly 100% owned by the parent company shall not exceed 20% of their respective net worth.

Note 3: The maximum limit of endorsements/guarantees provided by the Company and its subsidiaries to external parties is 50% of their respective net worth.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(iii) Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

Unit: Thousands of NTD

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company	Yuanta Taiwan High Dividend Low Volatility ETF	N/A	Current financial assets at FVTPL	60	3,033	-	3,033
The Company	Cathay MSCI Taiwan Leaders 50 Select ETF	N/A	Current financial assets at FVTPL	90	2,331	-	2,331
The Company	UPAMC Taiwan Growth Active ETF	N/A	Current financial assets at FVTPL	90	1,522	-	1,522
The Company	Fuhwa Taiwan Future 50 Active ETF	N/A	Current financial assets at FVTPL	180	1,885	-	1,885
The Company	Capital Taiwan Technology Innovation Active ETF	N/A	Current financial assets at FVTPL	180	1,877	-	1,877
The Company	Capital Taiwan Select Premium Active ETF	N/A	Current financial assets at FVTPL	90	1,315	-	1,315
The Company	Tatung Company	N/A	Current financial assets at FVOCI	15	473	-	473
The Company	TECO Electric and Machinery Co., Ltd.	N/A	Current financial assets at FVOCI	15	1,260	-	1,260
The Company	Nan Ya Plastics Corporation	N/A	Current financial assets at FVOCI	30	1,806	-	1,806
The Company	AcBel Polytech Inc.	N/A	Current financial assets at FVOCI	30	1,269	-	1,269
The Company	U-Ming Marine Transport Corporation	N/A	Current financial assets at FVOCI	15	906	-	906
The Company	TYNTEK Corporation	N/A	Current financial assets at FVOCI	60	1,032	-	1,032
The Company	Wistron Corporation	N/A	Current financial assets at FVOCI	45	6,772	-	6,772
The Company	GlobalWafers Co., Ltd.	N/A	Current financial assets at FVOCI	3	1,218	-	1,218
Rui Ji Investment	Yuanta Taiwan High Dividend Low Volatility ETF	N/A	Current financial assets at FVTPL	60	3,033	-	3,033
Rui Ji Investment	Cathay MSCI Taiwan Leaders 50 Select ETF	N/A	Current financial assets at FVTPL	60	1,554	-	1,554
Rui Ji Investment	UPAMC Taiwan Growth Active ETF	N/A	Current financial assets at FVTPL	120	2,029	-	2,029
Rui Ji Investment	Fuhwa Taiwan Future 50 Active ETF	N/A	Current financial assets at FVTPL	120	1,256	-	1,256
Rui Ji Investment	Capital Taiwan Technology Innovation Active ETF	N/A	Current financial assets at FVTPL	120	1,252	-	1,252
Rui Ji Investment	Capital Taiwan Select Premium Active ETF	N/A	Current financial assets at FVTPL	120	1,753	-	1,753
Rui Ji Investment	Tatung Company	N/A	Current financial assets at FVOCI	10	315	-	315
Rui Ji Investment	TECO Electric and Machinery Co., Ltd.	N/A	Current financial assets at FVOCI	10	840	-	840
Rui Ji Investment	Nan Ya Plastics Corporation	N/A	Current financial assets at FVOCI	20	1,204	-	1,204
Rui Ji Investment	AcBel Polytech Inc.	N/A	Current financial assets at FVOCI	20	846	-	846
Rui Ji Investment	President Chain Store Corporation	N/A	Current financial assets at FVOCI	15	3,323	-	3,323
Rui Ji Investment	U-Ming Marine Transport Corporation	N/A	Current financial assets at FVOCI	10	604	-	604
Rui Ji Investment	TYNTEK Corporation	N/A	Current financial assets at FVOCI	200	3,440	-	3,440
Rui Ji Investment	Wistron Corporation	N/A	Current financial assets at FVOCI	40	6,020	-	6,020
Rui Ji Investment	GlobalWafers Co., Ltd.	N/A	Current financial assets at FVOCI	4	1,624	-	1,624
PARA LIGHT NANJING	Jiangsu AMICC Opto-Electronics Technology CO., Ltd.	N/A	Non-current financial assets at FVOCI	3,360	58,165	8.00 %	58,165

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Unit: Thousands of NTD

Name of company	Related party	Nature of relationship	Transaction details				Transactions with terms different from others		Notes/Accounts receivable (payable)		Note
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company	PARA LIGHT Lian Yun Gang ELECTRONICS	Subsidiary	Purchases	129,865 (Note1)	21.32%	Payment based on working capital requirements	-		(189,262) (Note2)	90.08%

Note 1: Processing fees were paid with materials provided for the purchases.
Note 2: The receivables (payables) due from (to) sub-subsidiaries are presented in net amounts, taking into account accounting treatment for processing with materials provided to suppliers.

(v) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Oversize		Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
PARA LIGHT Lian Yun Gang ELECTRONICS	The Company	Subsidiary	189,262	2.76%	-		18,348	-

(b) Information on investees:

The following is the information on investees for the years ended December 31, 2025 (excluding information on investees in Mainland China):

Unit: Thousands of NTD

Name of investor	Name of investor	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Net income (losses) of investor	Share of profits/losses of investors (Note1)	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
The Company	Para Light Investments	Sunoco	Sedding company	672,775	672,775	18,000	100.00 %	978,131	3,360	3,992	subsidiary
The Company	PARA HK	Hong Kong	Selling LEDs and other electronic products	6,305	6,305	1,500	100.00 %	56,598	1,466	1,466	subsidiary
The Company	Para USA	Amurice	Selling LEDs and other electronic products	44,502	44,502	1,430	100.00 %	54,760	8,862	8,862	subsidiary
The Company	RUI II INVESTMENT	Taiwan	General investment	60,000	60,000	6,000	100.00 %	59,626	1,292	1,292	subsidiary
The Company	EBN Technology	Taiwan	Manufacturing and selling electronic components	69,110	69,110	6,170	18.42 %	19,152	(40,907)	(7,535)	Associate
The Company	PARA MYANMAR	Myanmar	Manufacturing LEDs and other electronic products	268,357	242,649	-	100.00 %	174,489	(30,101)	(30,101)	subsidiary
The Company	PARA INDIA	India	Selling LEDs and other electronic products	15,597	10,821	-	100.00 %	724	(3,937)	(3,937)	subsidiary
Para Light Investments	PARA LIGHT NANJING	Mainland China	Manufacturing and selling LEDs and other electronic products	276,014	276,014	-	100.00 %	649,164	4,238	4,238	subsidiary
Para Light Investments	PARA LIGHT Lian Yun Gang ELECTRONICS	Mainland China	Manufacturing and selling LEDs and other electronic products	326,336	326,336	-	59.94 %	326,215	(2,190)	(1,313)	subsidiary
PARA HK	PARA LIGHT Lian Yun Gang ELECTRONICS	Mainland China	Manufacturing and selling LEDs and other electronic products	30,665	30,665	-	5.83 %	31,729	(2,190)	(128)	subsidiary
PARA LIGHT NANJING	PARA LIGHT Lian Yun Gang ELECTRONICS	Mainland China	Manufacturing and selling LEDs and other electronic products	184,115	184,115	-	34.23 %	186,292	(2,190)	(749)	subsidiary
PARA LIGHT NANJING	PARA LIGHT Lian Yun Gang Investment	Mainland China	Investment in general enterprises as well as property development and investment	233,717	233,717	-	94.92 %	205,248	9,646	9,156	subsidiary
PARA LIGHT NANJING	Nanjing Hongding New Lighting Source	Mainland China	Selling LEDs and other electronic products	1,201	1,201	-	50.00 %	(1,769)	230	115	subsidiary
PARA LIGHT NANJING	YUN JIJING Real Estate Development	Mainland China	Real Estate Development	237,419	237,419	-	40.00 %	176,463	-	-	Associate
PARA LIGHT Lian Yun Gang ELECTRONICS	PARA LIGHT Lian Yun Gang Investment	Mainland China	Investment in general enterprises as well as property development and investment	65,010	65,010	-	5.08 %	10,985	9,646	490	subsidiary
PARA LIGHT Lian Yun Gang Investment	PARA LIGHT Lian Yun Gang Real Estate Development	Mainland China	Property development and investment	189,958	189,958	-	100.00 %	113,375	(3,805)	(3,805)	subsidiary
PARA LIGHT Lian Yun Gang Investment	MING JIJING Lian Yun Gang Real Estate Development	Mainland China	Property development and investment	-	185,131	-	- %	-	(1,429)	(849)	subsidiary (Note 2)

Note 1: Recognized based on the investee company's financial statements audited by a certified public accountant.
Note 2: MING DING Lian Yun Gang Real Estate Development was disposed of on June 30, 2025, and the amount represents the investment loss for the period from January to June 2025.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(i) The names of investees in Mainland China, the main businesses and products, and other information:

Unit: Thousands of NTD

Name of investor	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investor	Percentage of ownership	Investment income (losses)	Book value	Accumulated remittance of earnings in current period
					Outflow	Inflow
PARA LIGHT NANJING	Manufacture of electronic components	276,014	(b)	276,014	-	-	276,014	4,238	100.00%	4,238	649,164	-
PARA LIGHT Lian Yun Gang ELECTRONICS	Manufacture of electronic components	541,116	(b)	326,336	-	-	326,336	(2,190)	100.00%	(2,190)	544,236	-

Note 1: Investments are divided into the following 4 types:

(a) Investment in Mainland China by remitting through a 3rd region.

(b) Indirect investment in Mainland China through an entity established in a 3rd region.

(d) Direct investees in Mainland China.

Note 2: It is recognized based on the financial report of the invested company audited by the accountant; the end of period book value is calculated by the comprehensive shareholding ratio of the Company.

(ii) Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
602,350	695,765 (Note)	674,274

Note: Including capital increase $92,223 thousand (USD2,760 thousand) out of retained earnings.

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

(14) Segment information:

Please refer to the Consolidated report of 2025.

(Continued)

PARA LIGHT ELECTRONICS CO., LTD.

Statement of cash and cash equivalents

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Description			Amount
	Foreign currency type	Foreign currency amount	Exchange rate
Petty cash				$ 150
Checking and demand deposits :
Checking account deposits				655
Demand deposits				132,737
Foreign currency deposits	USD	1,163	31.3800 $	36,495
	HKD	100	4.0080	402
	EUR	4	36.7000	156
	JPY	4	0.1988	1
Subtotal				170,596
Time deposits	USD	1,069	31.3800	33,525
Maturing within one month, with an interest rate		3.80%
Less: restricted bank deposits (presented within current financial assets)				(109,363)
Restricted bank deposits (presented within non-current financial assets)				(4,160)
				$ 90,598

PARA LIGHT ELECTRONICS CO., LTD.

Statement of financial assets measured at fair value through profit or loss - current

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Name of financial instrument	Description	Shares or Units (thousands)	Acquisition cost	Fair value		Note
				Unit Price	Total amount
Yuanta Taiwan High Dividend Low Volatility ETF	Domestic Beneficiary Certificates	60	$ 3,087	50.55	3,033	-
Cathay MSCI Taiwan Leaders 50 Select ETF	"	90	2,341	25.90	2,331	-
UPAMC Taiwan Growth Active ETF	"	90	1,442	16.91	1,522	-
Fuhwa Taiwan Future 50 Active ETF	"	180	1,819	10.47	1,885	-
Capital Taiwan Technology Innovation Active ETF	"	180	1,857	10.43	1,877	-
Capital Taiwan Select Premium Active ETF	"	90	1,245	14.61	1,315	-
Total			$ 11,791		11,963

PARA LIGHT ELECTRONICS CO., LTD.

Statement of financial assets measured at fair value through other comprehensive income - current

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Name of financial instrument	Description	Shares or Units (thousands)	Acquisition cost	Fair value		Notes
				Unit price	Total amount
Tatung Company	Shares in domestic listed entities	15	$ 508	31.55	473	-
TECO Electric and Machinery Co., Ltd.	〃	15	1,461	84.00	1,260	-
Nan Ya Plastics Corporation	〃	30	1,754	60.20	1,806	-
AcBel Polytech Inc.	〃	30	1,264	42.30	1,269	-
U-Ming Marine Transport Corporation	〃	15	942	60.40	906	-
TYNTEK Corporation	〃	60	1,335	17.20	1,032	-
Wistron Corporation	〃	45	6,384	150.50	6,772	-
GlobalWafers Co., Ltd.	〃	3	1,537	406.00	1,218	-
Total			$ 15,185		14,736

PARA LIGHT ELECTRONICS CO., LTD.

Statement of notes receivable

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Client name	Description	Amount
BAI YU ELECTRONICS CO., LTD.	Operating revenue	$ 1,119
NELONG ENTERPRISE CORPORATION LTD.	“	217
NORDIAN TECHNOLOGY CO., LTD.	“	206
Others (Note)	“	198
		$ 1,740

Note: The amount of individual client included in others does not exceed 5% of the account balance.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of Accounts receivables

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Client name	Description	Amount
MILLEN SEMICONDUCTORS INDIA Pvt. Ltd.	Operating revenue	$ 5,246
HSIN-BAO CORPORATION	〃	4,267
COMMOTECH ELECTRONICS CORPORATION	〃	4,117
DIGITALKING BLUE CO., LTD.	〃	3,742
YOUING CO., LTD.	〃	2,677
Others (Note)	〃	29,614
Subtotal	〃	49,663
Less: Allowance for impairment	〃	(4,822)
		$ 44,841

Note: The amount of individual client included in others does not exceed 5% of the account balance.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of inventories

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Amount		Notes
	Cost	Market price
Finished goods	$ 40,217	34,830	Basic of inventories net realizable value
Less: provision for obsolescence and devaluation	(6,700)	-
Subtotal	33,517	34,830
Raw materials and supplies	22,622	22,490	〃
Less: provision for obsolescence and devaluation	(4,553)	-
Subtotal	18,069	22,490
Total	$ 51,586	57,320

PARA LIGHT ELECTRONICS CO., LTD.

Statement of other current financial assets

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Restricted Bank Deposits	$ 109,363
Others (Note)	1,574
Total	$ 110,937

Note: The amount of individual item included in others does not exceed 5% of the account balance.

Statement of other current assets

Items	Amount
Prepayment	$ 2,441
Temporary Advances	667
Others (Note)	695
Total	$ 3,803

Note: The amount of individual item included in others does not exceed 5% of the account balance.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Name of investee	Beginning Balance		Addition		Decrease		Others		Ending Balance			Net assets value(note(2))	Collateral
	Shares (thousand)	Amount	Shares (thousand)	Amount	Shares (thousand)	Amount	Shares (thousand)	Amount (note(1))	Shares (thousand)	Percentage of ownership	Amount
Para Light Investments Limited	19,009	$ 959,120	-	-	-	-	-	19,011	19,009	100.00	978,131	988,601	None
Para Light Electronics HK Limited	1,500	56,188	-	-	-	-	-	410	1,500	100.00	56,598	56,598	〃
Para Light Corp.	1,430	47,805	-	-	-	-	-	6,955	1,430	100.00	54,760	54,760	〃
Rui Ji Investment Co., Ltd	6,000	56,027	-	-	-	-	-	3,599	6,000	100.00	59,626	59,626	〃
EBN TECHNOLOGY Corp	6,170	26,687	-	-	-	-	-	(7,535)	6,170	18.42	19,152	19,152	〃
MYANMAR PARA LIGHT LED & LIGHTING ACCESSORY COMPANY LIMITED	-	166,568	-	25,708	-	-	-	(17,787)	-	100.00	174,489	174,489	〃
Para Light India Private Limited	-	229	-	4,776	-	-	-	(4,281)	-	100.00	724	724	〃
Total	$ 1,312,624		30,484		-		372				1,343,480	1,353,950

Note 1 : Other changes include the share of losses of subsidiaries and associates recognized under the equity method of ($25,961) thousand, the exchange differences arising from translating the financial statements of foreign operations of $18,302 thousand, the elimination of upstream transactions of $(763) thousand, the disposal of equity instruments measured at fair value through other comprehensive income of $2,131 thousand, changes in ownership interests in subsidiaries of $158 thousand, and unrealized gains on equity instruments measured at fair value through other comprehensive income of $6,505 thousand.
Note 2 : It is calculated based on the net equity value of the investee company's financial report.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of changes in property, plant and equipment

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Please refer to note 6(f).

Statement of changes in investment property

Please refer to note 6(g).

PARA LIGHT ELECTRONICS CO., LTD.

Statement of deferred tax assets

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Please refer to note 6(k) for details.

Statement of other non-current financial assets

Item	Amount
Refundable Deposits	$ 4,223

PARA LIGHT ELECTRONICS CO., LTD.

Statement of short-term borrowings

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Type	Creditors	Maturity	Range of interest rate	Loan commitments	Ending balance	Collateral
Loans of credit	Financial Institutions	Due within one year	2.328%~2.875%	$ 66,000	46,000	None
Letters of credit	〃	〃	2.4257%	40,000	12,694	〃
Loans secured by collateral	〃	〃	2.4400%	45,000	28,336	Time deposits 、land 、buildings
					$ 87,030

PARA LIGHT ELECTRONICS CO., LTD.

Statement of accounts payable

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Vendor name	Description	Amount
Para LIGHT (Shenzhen) Electronics Co., Ltd.	Not related	$ 13,209
TYNTEK CORPORATION	〃	3,124
Ennostar Corporation	〃	1,674
Others (Note)	〃	2,716
Total		$ 20,723

Note: The amount of individual item included in others does not exceed 5% of the account balance.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of other current liabilities

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Salaries Payable	$ 4,753
Bonuses payable	3,255
Service Fees Payable	2,976
Others (Note)	11,805
Total	$ 22,789

Note: The amount of individual item included in others does not exceed 5% of the account balance.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of bonds payable

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Name of bond	Client	Issue period	Date of payment	Interest rate	Amount						Repayment methods	Notes
					Total issuance amount	Used amount	Year-end balance	Unamortized premium (discount)	Unamortized issuance cost	Carrying amount
1st secured ordinary corporate, in 2023.	Taiwan cooperative bank	2023.06.08~2026.06.08	From the date of issue, annual simple interest shall be charged according to the coupon rate	1.50 %	$ 300,000	-	300,000	-	-	300,000	Principal shall be repaid in balloon payment 3 years after the date of issue.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of long-term borrowings 1

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Please refer to note 6(h).

Statement of deferred tax liabilities

Please refer to note 6(k).

Statement of operating revenue

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Quantities(thousand)(note)	Amount
LED component	406,534	$ 294,182
LED module	26	5,394
Less: Elimination of sales revenue from material-supplied processing	-	(18,499)
Net sales revenue		$ 281,077

Note : It refers to the quantity before eliminating using the dematerialization process accounting method according to the OEM rate.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of operating costs

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Raw materials and supplies, beginning of the year	$ 17,179
Plus: Raw materials purchased	57,064
Less: Raw materials, end of the year	(22,622)
Raw materials sold	(4,938)
Raw materials used	46,683
Manufacturing costs	150,000
Cost of finished goods	196,683
Plus: Finished goods, beginning of the year	30,026
Purchases	3,326
Less: Finished goods, end of the year	(40,217)
Others	(1,161)
Manufacturing costs	188,657
Raw materials sold	4,938
Reversal of Inventory Valuation Losses and Obsolescence Gains	(870)
Cost of goods sold	$ 192,725

PARA LIGHT ELECTRONICS CO., LTD.

Statement of selling expenses

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Salaries Expense	$ 12,498
Commission Expenses	4,805
Import/export expenses	3,938
Others (Note)	9,178
Total	$ 30,419

Note: The amount of individual item included in others does not exceed 5% of the account balance.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of administrative expenses

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Amount
Salaries Expense	$ 24,377
Transportation Expenses	5,033
Professional Service Fees	3,976
Others (Note)	28,847
Total	$ 62,233

Note: The amount of individual item included in others does not exceed 5% of the account balance.

PARA LIGHT ELECTRONICS CO., LTD.

Statement of finance costs

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Please refer to note 6(o).

Non-operating income and expenses

Please refer to note 6(o).

AI assistant

Para Light — Audit Report / Information 2025

52539_rns_2026-06-01_abbbb7c8-a754-44b2-9d9b-66b065e180f6.pdf

Table of contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Revenue recognition

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

Auditors' Responsibilities for the Audit of the Financial Statements

Notes to Readers

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

(ii) Functional and presentation currency

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(6) Explanation of significant accounts:

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

(iii) Associate

(f) Property, plant and equipment

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

7) Sensitivity Analysis

(ii) Defined contribution plans

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

PARA LIGHT ELECTRONICS CO., LTD.

Notes to the Financial Statements

Para Light Audit Report / Information 2025