Stock Code: 2247

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024 and Independent Auditors' Review Report

Address: 6F, No. 100, Xing-ai Rd, Neihu District, Taipei City 11494

Tel: +886-2-37666689

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§Table of Contents§

ITEM		PAGE	FINANCIAL REPORTS NO.
I.	Cover Page	1	-
II.	Table of Contents	2	-
III.	Independent Auditors' Review Report	3	-
IV.	Consolidated Balance Sheets	4	-
V.	Consolidated Statements of Comprehensive Income	5	-
VI.	Consolidated Statements of Changes in Equity	6	-
VII.	Consolidated Statements of Cash Flows	7 – 8	-
VIII.	Notes to the Consolidated Financial Statements
	1. Company History	9	1
	2. Approval Date and Procedures of the Financial Statements	9	2
	3. New Standards, Amendments, and Interpretations Adopted	9 – 12	3
	4. Summary of Significant Accounting Policies	13 – 15	4
	5. Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty	16	5
	6. Details of Significant Accounts	16 – 37	6 – 25
	7. Related Party Transactions	37 – 42	26
	8. Pledged Assets	42	27
	9. Significant Contingent Liabilities and Unrecognized Contractual Commitments	43	28
	10. Significant Disaster Losses	-	-
	11. Significant Events after the Balance Sheet Date	-	-
	12. Others	-	-
	Supplementary Disclosures	43 – 44 ; 47 – 50
	(1)Information on Significant Transactions	43	29
	(2)Information on Investees	43	29
	(3)Information on Investments in Mainland China	43 – 44	29
	(4)Information on Major Shareholders	-	-
	Segment Information	45 – 46	30

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Independent Auditors' Review Report

To the Board of Directors and Shareholders of Pan German Universal Motors Ltd.:

Foreword

We have reviewed the Consolidated Balance Sheets of Pan German Universal Motors Ltd. and its subsidiaries (hereinafter referred to as “the Group”) as of June 30, 2025 and 2024, the Consolidated Statements of Comprehensive Income for the three-month and six-month periods ended June 30, 2025 and 2024, Consolidated Statements of Changes in Equity and Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2025 and 2024, as well as the Notes to the Consolidated Financial Statements (including a summary of significant accounting policies). The management of the Group is responsible for the preparation and fair presentation of these Consolidated Financial Statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standards (IAS) No. 34 “Interim Financial Reporting”, as endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China. Our responsibility is to express a conclusion on the Consolidated Financial Statements based on our review.

Scope

We conducted our review in accordance with the International Standard on Review Engagements No. 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. The procedures performed during the review of the Consolidated Financial Statements include inquiries (primarily of persons responsible for financial and accounting matters), analytical procedures, and other review procedures. A review is substantially narrower in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Consolidated Financial Statements were not prepared, in all material respects, in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standards 34, “Interim Financial Reporting” as endorsed and made effective by the Financial Supervisory Commission. Accordingly, we believe that the consolidated financial statements fairly present, in all material aspect, the consolidated financial position of the Group as of June 30, 2025 and 2024, and the consolidated financial performance for the three-month periods ended June 30, 2025 and 2024, as well as the consolidated financial performance and consolidated cash flows for the six-month periods ended June 30, 2025 and 2024.

Deloitte & Touche Taiwan
CPA: Shih, Chin-Chuang
CPA: Liu, Shu-Ling
August 11, 2025

Notice to Readers

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

For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and consolidated financial statements shall prevail.

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Balance Sheets

June 30, 2025 and December 31, 2024 and June 30, 2024

(In Thousands of NTD)

Code	Assets	June 30, 2025		December 31, 2024		June 30, 2024
		Amount	%	Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Notes 6 and 25)	$ 4,123,733	17	$ 2,922,555	13	$ 5,589,477	24
1136	Financial assets at amortized cost – current (Notes 8, 25, and 27)	5,400	-	5,400	-	5,400	-
1150	Notes receivable, net (Notes 9, 25, and 26)	6,279	-	7,523	-	3,480	-
1170	Accounts receivable, net (Notes 9, 25, and 26)	449,417	2	489,563	2	443,755	2
1200	Other receivables (Notes 25 and 26)	619,074	3	701,909	3	586,210	3
130X	Inventories (Note 10)	5,473,322	23	6,810,431	30	4,386,626	19
1421	Prepayments to suppliers (Note 26)	2,491,738	11	2,174,622	9	3,342,208	14
1470	Prepaid expenses and other current assets (Note 26)	88,202	-	106,444	-	90,437	-
11XX	Total current assets	13,257,165	56	13,218,447	57	14,447,593	62
Non-current assets
1517	Financial assets at fair value through other comprehensive income (Notes 7 and 25)	29,674	-	29,674	-	29,674	-
1535	Financial assets at amortized cost – non-current (Notes 8, 25 and 27)	92,165	-	92,165	1	88,943	-
1600	Property, plant and equipment (Notes 12 and 26)	6,991,924	30	5,527,989	24	5,475,181	24
1755	Right-of-use assets (Notes 13 and 26)	2,983,259	13	2,831,640	12	2,933,696	13
1821	Intangible assets	2,175	-	1,992	-	3,095	-
1840	Deferred tax assets	31,606	-	28,596	-	30,311	-
1915	Prepayments for business facilities (Note 26)	6,878	-	1,222,957	5	6,454	-
1920	Guarantee deposits paid (Note 25)	106,136	1	105,062	1	99,901	1
1984	Other non-current financial assets (Note 25)	1,380	-	1,380	-	1,380	-
1995	Long-term prepaid expenses	24,592	-	25,358	-	25,543	-
15XX	Total non-current assets	10,269,789	44	9,866,813	43	8,694,178	38
1XXX	Total assets	$ 23,526,954	100	$ 23,085,260	100	$ 23,141,771	100
Code	Liabilities and Equity
Current liabilities
2100	Short-term borrowings (Notes 14 and 25)	$ -	-	$ 700,000	3	$ -	-
2130	Contract liabilities – current (Notes 20 and 26)	2,183,222	9	3,684,511	16	4,173,418	18
2150	Notes payable (Notes 16 and 25)	6,774	-	4,532	-	6,202	-
2170	Accounts payable (Notes 16 and 25)	129,072	1	88,719	-	95,491	-
2180	Accounts payable – related parties (Notes 16, 25, and 26)	306,089	1	497,288	2	367,653	2
2200	Other payables (Notes 17, 25, and 26)	2,315,000	10	1,194,186	5	2,389,591	10
2230	Income tax payable	231,233	1	257,387	1	242,630	1
2280	Lease liabilities – current (Notes 13 and 26)	429,340	2	354,898	2	376,209	2
2399	Other current liabilities	264,798	1	144,938	1	168,360	1
21XX	Total current liabilities	5,865,528	25	6,926,459	30	7,819,554	34
Non-current liabilities
2530	Bonds payable (Notes 4, 15, and 25)	1,943,189	8	-	-	-	-
2550	Other non-current liabilities	61,660	1	61,660	-	61,660	-
2580	Lease liabilities – non-current (Notes 13 and 26)	2,854,687	12	2,774,369	12	2,887,157	13
2640	Net defined benefit liabilities – non-current (Note 4)	26,713	-	28,277	-	45,274	-
25XX	Total non-current liabilities	4,886,249	21	2,864,306	12	2,994,091	13
2XXX	Total liabilities	10,751,777	46	9,790,765	42	10,813,645	47
Equity attributable to owners of the parent Company (Notes 4 and 19)
3110	Ordinary share	807,087	3	807,087	4	807,087	4
3200	Capital surplus	4,354,675	19	4,269,075	19	4,269,075	18
Retained earnings
3310	Legal reserve	1,436,359	6	1,243,213	5	1,243,213	5
3350	Unappropriated retained earnings	6,149,557	26	6,947,621	30	5,985,079	26
3300	Total retained earnings	7,585,916	32	8,190,834	35	7,228,292	31
3400	Other equity interest	27,499	-	27,499	-	23,672	-
3XXX	Total equity	12,775,177	54	13,294,495	58	12,328,126	53
Total liabilities and equity		$ 23,526,954	100	$ 23,085,260	100	$ 23,141,771	100

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

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income

For the Three Months and Six Months Ended June 30, 2025 and 2024

(In Thousands of NTD, Except for Earnings Per Share in NTD)

Code		April 1 to June 30, 2025		April 1 to June 30, 2024		January 1 to June 30, 2025		January 1 to June 30, 2024
		Amount	%	Amount	%	Amount	%	Amount	%
4000	Net operating revenue (Notes 20 and 26)	$14,738,261	100	$15,749,664	100	$27,888,976	100	$29,218,636	100
5000	Operating costs (Notes 10, 21, and 26)	13,102,980	89	14,008,630	89	24,804,402	89	26,022,694	89
5900	Gross profit from operations	1,635,281	11	1,741,034	11	3,084,574	11	3,195,942	11
	Operating expenses (Notes 9, 18, 21, and 26)
6100	Selling expenses	967,305	7	1,014,535	7	1,897,100	7	1,897,389	7
6200	Administrative expenses	61,208	-	67,815	-	116,352	-	129,094	-
6450	Expected credit loss (reversal gain)	419	-	42	-	(79)	-	202	-
6000	Total operating expenses	1,028,932	7	1,082,392	7	2,013,373	7	2,026,685	7
6500	Other income and net expenses (Note 21)	8,028	-	7,466	-	16,126	-	12,598	-
6900	Net profit from operations	614,377	4	666,108	4	1,087,327	4	1,181,855	4
	Non-operating income and expenses
7100	Interest revenue	3,094	-	12,813	-	4,308	-	20,391	-
7110	Rent income	1,528	-	1,012	-	2,754	-	2,024	-
7190	Other income (Note 26)	21,437	-	16,307	-	43,343	-	31,825	-
7510	Interest expense (Notes 15, 21, and 26)	(10,243)	-	(9,164)	-	(20,745)	-	(19,394)	-
7590	Miscellaneous disbursements	(132)	-	(1)	-	(132)	-	(1)	-
7000	Total non-operating income and expenses	15,684	-	20,967	-	29,528	-	34,845	-
7900	Net profit before tax	630,061	4	687,075	4	1,116,855	4	1,216,700	4
7950	Tax expense (Notes 4 and 22)	128,657	1	139,762	1	228,661	1	247,778	1
8200	Net profit	501,404	3	547,313	3	888,194	3	968,922	3
8500	Total comprehensive income	$501,404	3	$547,313	3	$888,194	3	$968,922	3
	Net profit attributable to:
8610	Owners of the Company	$501,404	3	$547,313	3	$888,194	3	$968,922	3
	Comprehensive income attributable to:
8710	Owners of the Company	$501,404	3	$547,313	3	$888,194	3	$968,922	3
	Earnings per share (Note 23)
9750	Basic	$6.21		$6.78		$11.00		$12.01
9850	Diluted	$6.20		$6.78		$10.99		$12.00

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

Pan German Universal Motors Ltd. and Subsidiaries
Consolidated Statements of Changes in Equity
For the Six Months Ended June 30, 2025 and 2024
(In Thousands of NTD)

Code		Share capital		Capital surplus	Retained earnings		Other equity interest item
		Shares (thousand shares)	Amount		Legal reserve	Unappropriated retained earnings	Remeasurement of defined benefit plans	Total equity
A1	Balance on January 1, 2024	80,709	$ 807,087	$ 4,269,075	$ 1,064,283	$ 6,647,844	$ 23,672	$ 12,811,961
	2023 earning appropriation
B1	Appropriation of legal reserve	-	-	-	178,930	( 178,930 )	-	-
B5	Cash dividends to the Company's shareholders	-	-	-	-	( 1,452,757 )	-	( 1,452,757 )
D1	Net profit from January 1 to June 30, 2024	-	-	-	-	968,922	-	968,922
Z1	Balance on June 30, 2024	80,709	$ 807,087	$ 4,269,075	$ 1,243,213	$ 5,985,079	$ 23,672	$ 12,328,126
A1	Balance on January 1, 2025	80,709	$ 807,087	$ 4,269,075	$ 1,243,213	$ 6,947,621	$ 27,499	$ 13,294,495
	2024 earning appropriation
B1	Appropriation of legal reserve	-	-	-	193,146	( 193,146 )	-	-
B5	Cash dividends to the Company's shareholders	-	-	-	-	( 1,493,112 )	-	( 1,493,112 )
C5	Recognition of the equity component of issued convertible bonds	-	-	85,600	-	-	-	85,600
D1	Net profit from January 1 to June 30, 2025	-	-	-	-	888,194	-	888,194
Z1	Balance on June 30, 2025	80,709	$ 807,087	$ 4,354,675	$ 1,436,359	$ 6,149,557	$ 27,499	$ 12,775,177

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

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Pan German Universal Motors Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2025 and 2024
(In Thousands of NTD)

Code		January 1 to June 30, 2025	January 1 to June 30, 2024
Cash flows from operating activities
A10000	Profit before tax	$ 1,116,855	$ 1,216,700
A20010	Profit or loss items
A20100	Depreciation expense	502,156	508,652
A20200	Amortization expense	2,860	2,147
A29900	Amortization of long-term prepaid expenses	2,235	1,831
A20300	Expected credit (reversal gain) impairment loss	( 79 )	202
A20900	Interest expense	20,745	19,394
A21200	Interest revenue	( 4,308 )	( 20,391 )
A23700	Inventory write-downs and obsolescence loss	15,412	1,214
A29900	Gains on lease modification	( 418 )	-
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	1,244	31
A31150	Accounts receivable	40,225	( 38,437 )
A31180	Other receivables	82,744	( 8,582 )
A31200	Inventories	2,024,691	989,512
A31220	Long-term prepaid expenses	( 1,469 )	( 1,281 )
A31230	Prepayments to suppliers	( 317,116 )	( 2,271,792 )
A31240	Prepaid expenses and other current assets	18,242	123
A32125	Contract liabilities	( 1,501,289 )	( 95,830 )
A32130	Notes payable	2,242	( 6,927 )
A32150	Accounts payable	40,353	( 31,597 )
A32160	Accounts payable to related parties	( 191,199 )	45,291
A32180	Other payables	( 241,507 )	13,947
A32230	Other current liabilities	119,554	21,644
A32240	Net defined benefit liabilities	( 1,564 )	( 11,744 )
A33000	Cash inflow generated from operations	1,730,609	334,107
A33100	Interest received	4,399	21,271
A33300	Interest paid	( 22,643 )	( 20,586 )
A33500	Income taxes paid	( 257,825 )	( 266,312 )
AAAA	Net cash flows from operating activities	1,454,540	68,480
(Continued on next page)

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(Continued from previous page)

Code		January 1 to June 30, 2025	January 1 to June 30, 2024
	Cash flows from (used in) investing activities
B00050	Proceeds from disposal of financial assets at amortized cost	$ -	$ 500,000
B02700	Purchase of property, plant, and equipment	( 1,354,312 )	( 1,275,983 )
B03700	Decrease in guarantee deposits	( 1,074 )	( 126 )
B04500	Purchase of intangible assets	( 3,043 )	( 3,588 )
B07100	Increase in prepayments for business facilities	( 10,826 )	( 4,851 )
BBBB	Net cash flows in investing activities	( 1,369,255 )	( 784,548 )
	Cash flows from financing activities
C00200	Decrease in short-term loans	( 700,000 )	-
C01200	Issuance of convertible bonds	2,028,695	-
C03000	Increase in guarantee deposits received	306	-
C04020	Payment of the principal portion of lease liabilities	( 213,108 )	( 199,502 )
CCCC	Net cash flows in financing activities	1,115,893	( 199,502 )
EEEE	Net increase (decrease) in cash and cash equivalents for the period	1,201,178	( 915,570 )
E00100	Cash and cash equivalents at beginning of period	2,922,555	6,505,047
E00200	Cash and cash equivalents at end of period	$ 4,123,733	$ 5,589,477

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

Pan German Universal Motors Ltd. and Subsidiaries
Note to Consolidated Financial Statements
For the Six Months Ended June 30, 2025 and 2024
(In Thousands of NTD, Unless Otherwise Specified)

Company History

History and Operation of the Parent Company

Established in 1979, Pan German Universal Motors Ltd. (hereinafter referred to as “Pan German Universal” or “the Company”) mainly engages in the distribution, trading, maintenance, and repair of automobiles and their components.

Shares of the Pan German Universal Motors have been listed and traded on the Taiwan Stock Exchange since October 12, 2020

History and Operation of the Subsidiaries

Established in 2010, Jet-Li Motors Ltd. (hereinafter referred to as “Jet-Li”) mainly engages in the distribution, trading, maintenance, and repair of automobiles and their components.

These Consolidated Financial Statements are presented in New Taiwan Dollar (NTD), the functional currency of the Company.

Approval Date and Procedures of the Financial Statements

The Consolidated Financial Reports were approved by the Board of Directors on August 11, 2025.

New Standards, Amendments, and Interpretations Adopted

(1) Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively referred to as “IFRSs”), as endorsed and made effective by the Financial Supervisory Commission (hereinafter referred to as the “FSC”) (collectively referred to as “IFRSs”)

The application of the amended IFRSs, endorsed and made effective by the FSC, is not expected to result in significant changes to the accounting policies of the Group.

(2) IFRSs endorsed by the FSC applied in 2026.

New, Revised, or Amended Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026

(Continued on next page)

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(Continued from previous page)

New, Revised, or Amended Standards and Interpretations	Effective Date Announced by IASB
“Annual Improvements to IFRS Accounting Standards—11th Edition”	January 1, 2026
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendment to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9—Comparative Information”	January 1, 2023

Amendments to IFRS 9 and IFRS 7 “Amendments to Classification and Measurement of Financial Instruments”

Regarding Amendments to the Application Guidance on the Classification of Financial Assets

The amendments that primarily revise the classification requirements for financial assets are as follows:

A. If a contingent event contained on a financial asset can change the timing or amount of contractual cash flows, and its nature is not directly related to changes in basic loan risk and cost (such as whether the debtor achieves a specific reduction in carbon emissions), the contractual cash flows of such financial assets are still solely principal payments and interest on the outstanding principal when they meet the following two conditions:

Contractual cash flows arising from all possible scenarios (before or after the occurrence of contingent events) are solely principal payments and interest on the outstanding principal; and
No difference between contractual cash flows arising from all possible scenarios and cash flows of financial instruments with the same contract terms but no contingent features.

B. It is specified that financial assets with non-recourse features refer to the ultimate right of the entity to receive cash flows and are limited to the cash flows of specific assets, according to the contract.

C. It is clarified that contractually linked instruments prioritize payments to financial asset holders by establishing multiple tranches of securities through a waterfall payment structure, thereby creating a credit risk concentration and leading to a

disproportionate allocation of cash shortfalls from the underlying pool among different tranches of securities.

The Group should retrace the comparative periods for which the amendment is applicable and no restatement is needed, and recognize the impact of the initial application as at the date of the initial application. However, if a company can restate without the use of hindsight, it may choose to restate comparative periods.

Except for the above impacts, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of various amendments will have on the financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

(3) IFRSs issued by IASB but not yet endorsed and made effective by the FSC

New, Revised, or Amended Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture Assets”	To be determined
IFRS18 “Presentation and Disclosure of Financial Statements”	January 1, 2027
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027

Note: Unless otherwise specified, the abovementioned new, revised, or amended standards and interpretations take effect for annual reporting periods beginning on or after the stated dates.

IFRS 18 “Presentation and Disclosure of Financial Statements”

IFRS 18 will replace IAS 1 “Presentation of Financial Statements”. The main changes in the standard include:

A. The income statement must classify income and expense items into operating, investing, financing, income tax, and discontinued operations categories.

B. The income statement should present profit or loss from operations and before financing and tax, as well as subtotals and totals of profit or loss.

C. Guidance is provided to enhance aggregation and disaggregation of requirements: The Group should identify assets, liabilities, equity, revenue, expenses, and cash flows arising from individual transactions or other events, then classify and aggregate them based on common characteristics, so that each line item in the primary financial statements shares at least one similar characteristic. Items with

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dissimilar characteristics should be disaggregated in the primary financial statements and notes. The Group will only label such items as “Other” when a more informative designation cannot be identified.

D. Disclosure of management-defined performance measures is required: When the Group engages in public communication outside of the financial statements or communicates perspectives of management on specific aspects of the overall financial performance of the Group to users of the financial statements, it must disclose the management-defined performance measures in a single note. This disclosure should include a description of the measure, the way of calculation, a reconciliation with subtotals or totals specified by IFRSs, and the effects of related adjustment items on income tax and non-controlling interests.

Except for the impacts noted above, as of the date the Consolidated Financial Statements are approved and issued, the Group is still in the process of assessing the potential impact of the amendments to various standards and interpretations on its financial position and performance. The relevant impacts will be disclosed once the evaluation is complete.

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Summary of Significant Accounting Policies

(1) Compliance statement

The consolidated financial statements have been prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers. and IAS 34, "Interim financial reporting" as endorsed and made effective by the FSC. The consolidated financial statements do not include all IFRS disclosure information required for the entire annual consolidated financial statements.

(2) Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments measured at fair value and net defined benefit liabilities measured at the present value of the defined benefit obligations less the fair value of plan assets.

(3) Basis of consolidation

The consolidated financial statements incorporate the financial statements of Pan German Universal and its controlled entities (i.e., its subsidiaries). The financial statements of the subsidiaries are adjusted to align with the accounting policy of the Group. All intra-group transactions, balances, income, and expenses are fully eliminated during the preparation of the Consolidated Financial Statements. The total comprehensive income or loss of subsidiaries is attributed to the owners of the Company and non-controlling interests, even when the non-controlling interests result in a deficit balance.

Subsidiaries with changes in ownership interest but still controlled by the Group are accounted for as equity transactions. The carrying amounts of the Group and non-controlling interests are adjusted to reflect changes in their relative equity interests in the subsidiaries. Any difference between the adjustment to non-controlling interests and fair value of the consideration paid or received is directly recognized as equity and attributed to the owners of the Company.

Refer to Note 11 and Table 4 for detailed information on subsidiaries, ownership percentage, and main businesses.

(4) Other significant accounting policies

Except as otherwise described below, refer to the summary of significant accounting policies in the Consolidated Financial Statements for the year ended 2024.

A. Defined post-employment benefits

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Pension cost during the interim period is calculated by using the pension cost rate determined by the actuarial valuation at the end of the previous financial year on a year-to-date basis, and is adjusted for significant market fluctuations, material plan amendments, settlements, or other significant one-time events during the current period.

B. Income tax expense

Income tax expense comprises current income tax and deferred income tax. Income tax expense during the interim period is evaluated annually and calculated with the tax rate for the expected earnings of the year and the pre-tax income of the interim period.

C. Financial instruments

Assets and liabilities are recognized in consolidated balance sheets when the Group becomes a party to the contract terms of the instruments.

When initially recognized, if not measured at fair value through profit or loss, the financial assets and liabilities are measured at fair value with the addition of transaction costs directly attributable to the acquisition or issuance of financial assets or liabilities. Transaction costs directly attributable to the acquisition of financial assets or liabilities at fair value through profit or loss are recognized immediately in profit or loss.

(a) Equity Instruments

Debt and equity instruments issued by the Group are classified as financial liabilities or equity based on the substance of the contractual agreement and the definition of financial liability and equity instruments.

Equity instruments issued by the Group are recognized at the received proceeds less direct issuance costs.

(b) Convertible Bonds

Compound financial instruments (convertible bonds) issued by the Group are classified into their components as financial liability and equity upon initial recognition, based on the substance of the contractual agreement and the definitions of financial liabilities and equity instruments.

At initial recognition, the fair value of the liability component is estimated using the market interest rate of similar non-convertible instruments at that time and measured at amortized cost calculated by the effective interest method until conversion or maturity. The liability

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component embedded in non-equity derivative instruments is measured at fair value.

The conversion option classified as equity is the residual amount equal to the fair value of the entire compound instrument less the fair value of the separately determined liability component. The residual amount is recognized in equity after deducting the income tax impact and is not subsequently remeasured. Upon the exercise of such conversion right, the related liability component and the amount in equity will be reclassified to capital stock and capital surplus – share premium. If the conversion option of convertible bonds is not exercised by the maturity date, the amount recognized in equity will be reclassified to capital surplus – share premium.

Transaction costs relating to the issuance of convertible bonds are allocated to the liabilities (recognized in the carrying amount of liabilities) and equity components (recognized in equity) of the instrument in proportion to the allocated total price.

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Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty

Under the accounting policies of the Group, management is required to make judgments, estimates, and assumptions based on historical experience and other relevant factors for items where information is not readily available from other sources. The actual results may differ from these estimates.

The accounting policies, estimates, and basic assumptions adopted by the Group have been evaluated by management, and no significant uncertainties related to accounting judgments, estimates, or assumptions are identified.

Cash and Cash Equivalents

	June 30, 2025	December 31, 2024	June 30, 2024
Cash on hand and petty cash	$ 16,419	$ 17,801	$ 8,382
Checking accounts and demand deposits	1,670,528	2,574,405	3,179,520
Cash equivalents (Investments with maturities of 3 months)
Time deposits	1,020,000	-	1,300,000
Repurchase agreements	1,416,786	330,349	1,101,575
	$ 4,123,733	$ 2,922,555	$ 5,589,477

The market rate intervals of cash equivalents were as follows:

	June 30, 2025	December 31, 2024	June 30, 2024
Time deposits	1.59%	-	1.22% – 1.47%
Repurchase agreements	1.24%	1.22%	1.22%

Financial Assets Measured at Fair Value Through Other Comprehensive Income

	June 30, 2025	December 31, 2024	June 30, 2024
Non-current
Investment in equity instruments
Unlisted ordinary shares
Yung Shin Carleasing Ltd.	$ 6,924	$ 6,924	$ 6,924
Union Capital Carleasing Ltd.	22,750	22,750	22,750
	$ 29,674	$ 29,674	$ 29,674

The Group has invested in the ordinary shares of Yung Shin Carleasing Ltd. and Union Capital Carleasing Ltd. for medium and long-term strategic purposes, with the expectation of generating profits through long-term investments. Accordingly, the management elected to measure these investments in equity instruments at fair value through other comprehensive income, as they believe recognizing the short-term fluctuations in the fair value of these investments in profit or loss would not align with the long-term strategy of the Group.

Financial Assets at Amortized Cost

	June 30, 2025	December 31, 2024	June 30, 2024
Current
Domestic investments
Restricted time deposits	$ 5,400	$ 5,400	$ 5,400
Less: Allowance for impairment loss	-	-	-
	$ 5,400	$ 5,400	$ 5,400
Non-current
Domestic investments
Restricted time deposits	$ 92,165	$ 92,165	$ 88,943
Less: Allowance for impairment loss	-	-	-
	$ 92,165	$ 92,165	$ 88,943

	June 30, 2025	December 31, 2024	June 30, 2024
Restricted time deposits	0.73% – 1.70%	0.67% – 1.70%	0.63% – 1.69%

Refer to Note 27 for information regarding financial assets measured at amortized cost pledged as collateral.

Notes and Accounts Receivable

	June 30, 2025	December 31, 2024	June 30, 2024
Notes receivable (including related parties)
Measured at amortized cost
Total carrying amount	$ 6,279	$ 7,523	$ 3,480
Accounts receivable (including related parties)
Measured at amortized cost
Total carrying amount	$ 452,270	$ 492,495	$ 446,473
Less: Allowance for impairment loss	( 2,853 )	( 2,932 )	( 2,718 )
	$ 449,417	$ 489,563	$ 443,755

The average credit period of sales of goods was O/A 60 days, with no interest charged on accounts receivable. The Group rates its major customers by historical transaction records and reviews the recoverable amount of accounts receivable on the balance sheet date to ensure that adequate allowances are reserved for unrecoverable amounts. Accordingly, the management believes the credit risk of the Group has been significantly mitigated.

The Group recognizes the loss allowance for accounts receivable based on the lifetime expected credit losses (ECLs), except for the loss allowances reserved when an obvious impairment indicator of individual customers occurs. The expected credit losses on trade receivables are estimated using a provision matrix in reference to the customer's historical default history and current financial condition. As the credit loss experience of the Group indicates no significant difference in loss patterns of different customer segments, the expected credit loss rate is decided by the provision matrix based solely on the aging of receivables without further distinction among different customer bases.

If evidence shows that a counterparty is experiencing severe financial difficulties, causing the Group to be unable to reasonably expect the recoverable amount—for instance, the counterparty is undergoing liquidation—the related accounts are written off directly by the Group. However, the recovery efforts will continue, and any amounts subsequently recovered will be recognized in profit or loss.

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The notes receivable of the Group are all current, and the allowance for losses on accounts receivable (including related parties) is measured based on the provision matrix as follows:

June 30, 2025

	Not overdue	Overdue 1 – 60 days	Overdue for more than 61 days	Individual assessment	Total
Expected credit loss rate	0.50%	1.00%	1.00%
Total carrying amount	$ 382,162	$ 62,631	$ 7,207	$ 270	$ 452,270
Loss allowance (lifetime ECLs)	( 1,912 )	( 626 )	( 72 )	( 243 )	( 2,853 )
Amortized cost	$ 380,250	$ 62,005	$ 7,135	$ 27	$ 449,417

December 31, 2024

	Not overdue	Overdue 1 – 60 days	Overdue for more than 61 days	Individual assessment	Total
Expected credit loss rate	0.50%	1.00%	1.00%
Total carrying amount	$ 446,624	$ 30,620	$ 14,981	$ 270	$ 492,495
Loss allowance (lifetime ECLs)	( 2,233 )	( 306 )	( 150 )	( 243 )	( 2,932 )
Amortized cost	$ 444,391	$ 30,314	$ 14,831	$ 27	$ 489,563

June 30, 2024

	Not overdue	Overdue 1 – 60 days	Overdue for more than 61 days	Individual assessment	Total
Expected credit loss rate	0.50%	1.00%	1.00%
Total carrying amount	$ 397,451	$ 35,234	$ 13,518	$ 270	$ 446,473
Loss allowance (lifetime ECLs)	( 1,988 )	( 352 )	( 135 )	( 243 )	( 2,718 )
Amortized cost	$ 395,463	$ 34,882	$ 13,383	$ 27	$ 443,755

Changes in the allowance for expected credit losses on accounts receivable were as follows:

	January 1 to June 30, 2025	January 1 to June 30, 2024
Beginning balance	$ 2,932	$ 2,516
Add: (Reversal of) provision for impairment loss	( 79 )	202
Ending balance	$ 2,853	$ 2,718

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10. Inventories

	June 30, 2025	December 31, 2024	June 30, 2024
Motor vehicles	$ 4,928,996	$ 6,268,377	$ 3,825,630
Automotive parts and accessories	544,326	542,054	560,996
	$ 5,473,322	$ 6,810,431	$ 4,386,626

For the periods from April 1 to June 30, 2025 and 2024, and from January 1 to June 30, 2025 and 2024, inventories-related cost of sales amounted to NT$13,102,980 thousand, NT$14,008,630 thousand, NT$24,804,402 thousand, and NT$26,022,694 thousand, respectively. Cost of sales includes inventory write-down losses of NT$6,950 thousand, NT$457 thousand, NT$15,412 thousand, and NT$1,214 thousand, respectively.

As of June 30, 2025, December 31, 2024, and June 30, 2024, the allowance for inventory valuation losses on automotive parts was NT$50,398 thousand, NT$34,986 thousand, and NT$16,603 thousand, respectively.

11. Subsidiaries

Subsidiaries included in the Consolidated Financial Statements:

The reporting entities included in these Consolidated Financial Statements are as follows:

Name of Investor	Name of Subsidiary	Main business activities	Ownership (%)
			June 30 2025	December 31, 2024	June 30 2024
Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	Sales and maintenance of cars	100%	100%	100%

Property, Plant, and Equipment

	Land	Building	Machinery equipment	Transportation equipment	Miscellaneous equipment	Leasehold improvements	Property under construction	Total
Cost
Balance on January 1, 2025	$ 928,019	$ 3,406,329	$ 344,730	$ 898,056	$ 350,177	$ 1,368,351	$ 744,498	$ 8,040,160
Additions	-	-	5,666	886,739	14,502	6,041	310,313	1,223,261
Disposals	-	-	(23,999)	-	(9,197)	-	-	(33,196)
Reclassification	1,216,817	-	2,491	(796,219)	8,823	1,927	7,216	441,055
Balance on June 30, 2025	$ 2,144,836	$ 3,406,329	$ 328,888	$ 988,576	$ 364,305	$ 1,376,319	$ 1,062,027	$ 9,671,280
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 1,265,151	$ 221,688	$ 103,094	$ 224,472	$ 697,766	$ -	$ 2,512,171
Depreciation expense	-	98,413	21,980	98,582	26,128	48,664	-	293,767
Disposals	-	-	(23,999)	-	(9,197)	-	-	(33,196)
Reclassification	-	-	-	(93,224)	(162)	-	-	(93,386)
Balance on June 30, 2025	$ -	$ 1,363,564	$ 219,669	$ 108,452	$ 241,241	$ 746,430	$ -	$ 2,679,356
Net Amount as of June 30, 2025	$ 2,144,836	$ 2,042,765	$ 109,219	$ 880,124	$ 123,064	$ 629,889	$ 1,062,027	$ 6,991,924
Net amount on December 31, 2024 and January 1, 2025	$ 928,019	$ 2,141,178	$ 123,042	$ 794,962	$ 125,705	$ 670,585	$ 744,498	$ 5,527,989
Cost
Balance on January 1, 2024	$ 928,019	$ 3,404,571	$ 325,057	$ 849,497	$ 358,602	$ 1,359,289	$ 24,241	$ 7,249,276
Additions	-	81	6,257	887,511	3,822	6,955	352,520	1,257,146
Disposals	-	-	(2,592)	-	(7,383)	-	-	(9,975)
Reclassification	-	-	1,080	(715,127)	469	900	5,188	(707,490)
Balance on June 30, 2024	$ 928,019	$ 3,404,652	$ 329,802	$ 1,021,881	$ 355,510	$ 1,367,144	$ 381,949	$ 7,788,957
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 1,044,979	$ 180,312	$ 100,395	$ 187,497	$ 587,104	$ -	$ 2,100,287
Depreciation expense	-	111,895	22,779	90,812	29,513	55,621	-	310,620
Disposals	-	-	(2,592)	-	(7,383)	-	-	(9,975)
Reclassification	-	-	-	(87,156)	-	-	-	(87,156)
Balance on June 30, 2024	$ -	$ 1,156,874	$ 200,499	$ 104,051	$ 209,627	$ 642,725	$ -	$ 2,313,776
Net amount on June 30, 2024	$ 928,019	$ 2,247,778	$ 129,303	$ 917,830	$ 145,883	$ 724,419	$ 381,949	$ 5,475,181

The reclassifications from January 1 to June 30, 2025, and 2024 primarily involved transferring prepayments for business facilities, reclassifying transportation equipment as inventories, and reclassifying properties under construction according to their nature upon completion, as well as recognizing their costs eligible for capitalization. Please refer to Notes 13 and 21.

As there were no indications of impairment from January 1 to June 30, 2025 and 2024, no impairment assessment was conducted by the Group.

Property, plant, and equipment are depreciated on a straight-line basis over the following estimated useful lives:

Buildings and structures
Main building and decoration
project	5 to 51 years
Utility and communication
engineering	3 to 18.5 years
Machinery equipment	2 to 13 years
Transportation equipment	5 to 6 years
Miscellaneous equipment	2 to 15 years
Leasehold improvements	1 to 18 years

As of June 30, 2025, the Group's significant property contracts under construction were as follows:

Contracting party	Contract date	Total contract price	Amount paid
Lee Ming Construction Co., Ltd.	December 2023	$ 1,084,571	$ 563,977
Fuli Construction Co., Ltd.	March 2024	$ 890,476	$ 445,143

The above-mentioned construction contracts pertain to the development of new business locations for the Group across various regions. As of June 30, 2025, the overall projects had not yet been completed, and therefore, the payments made have been included in properties under construction.

13. Lease Arrangements

(1) Right-of-use assets

	June 30, 2025	December 31, 2024	June 30, 2024
Carrying amount of right-of-use assets
Land	$ 2,115,140	$ 2,019,842	$ 2,007,351
Buildings	868,119	811,798	926,345
	$ 2,983,259	$ 2,831,640	$ 2,933,696
	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025
Additions to right-of-use assets			$ 380,002
Depreciation of right-of-use assets
Land	$ 45,192	$ 41,443	$ 88,273
Buildings	63,629	59,887	128,394
Capitalization of property, plant, and equipment	( 4,139 )	( 4,139 )	( 8,278 )
	$ 104,682	$ 97,191	$ 208,389

Except for the above-mentioned additions and recognition of depreciation expense, no significant sublease or impairment concerning right-of-use assets of the Group were found during the period from January 1 to June 30, 2025 and 2024.

(2) Leases liabilities

	June 30, 2025	December 31, 2024	June 30, 2024
Carrying amount of lease liabilities
Current	$ 429,340	$ 354,898	$ 376,209
Non-current	$ 2,854,687	$ 2,774,369	$ 2,887,157

The range of discount rates for lease liabilities was as follows:

	June 30, 2025	December 31, 2024	June 30, 2024
Land	1.05% – 1.70%	1.05% – 1.70%	1.05% – 1.30%
Buildings	1.05% – 1.70%	1.05% – 1.70%	1.05% – 1.30%

(3) Other lease information

From January 1, 2025, to June 30, 2025, due to the modification of the lease terms, right-of-use assets of the Group decreased by NT$11,716 thousand, and lease liabilities decreased by NT$12,134 thousand.

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Short-term lease expenses	$ 14,347	$ 16,660	$ 31,797	$ 23,110
Total cash (outflow) for leases	($ 131,590)	($ 128,503)	($ 265,694)	($ 244,376)

The Group elected to apply the recognition exemption for short-term leases and therefore did not recognize right-of-use assets or lease liabilities for these leases.

Total cash outflows for leases include lease principal repayments, lease interest payments (including interest capitalized), and cash flows arising from the short-term expenses.

Short-term Borrowings

	June 30, 2025	December 31, 2024	June 30, 2024
Credit line borrowings	$ -	$ 700,000	$ -

The interest rate on bank credit loans as of December 31, 2024 was 1.78%.

Bonds Payable

	June 30, 2025	December 31, 2024	June 30, 2024
Face value of domestic unsecured convertible bonds	$ 2,000,000	$ -	$ -
Less: discount on bonds payable	( 56,811 )	-	-
	$ 1,943,189	$ -	$ -

Pan German Universal issued its first and second tranches of domestic unsecured convertible bonds on June 26, 2025, and June 30, 2025, respectively, with each tranche comprising 10,000 units, each unit comprising a face value of NT$100 thousand, and a coupon rate of 0%. The issuance periods are both 3 years (maturing on June 26 and June 30, 2028, respectively), with actual issuance prices at 101% and 102.37% of the face value, respectively. The total funds raised are 1,010,000 thousand and 1,023,695 thousand, respectively.

Each holder of convertible corporate bonds may convert their convertible corporate bonds into ordinary shares of Pan German Universal from the day after three months of issuance (September 27 and October 1, 2025) to the maturity date (June 26 and June 30, 2028). The conversion prices of this convertible bond at issuance and as of June 30, 2025, were NT$307.6 and NT$297.8 per share, respectively.

From the day after three months of issuance to 40 days before the maturity date (September 27, 2025 to May 17, 2028 and October 1, 2025 to May 21, 2028), if the closing price of Pan German Universal's ordinary shares continuously exceeds the conversion price at that time by 30% or more for 30 consecutive business days, or if the outstanding balance of this convertible bond falls below 10% of the original total issuance amount, Pan German Universal may redeem its outstanding convertible bonds at par value in cash.

This convertible bond includes liability and equity components, with the equity component expressed under equity as capital surplus, share options. The effective interest rates for the initial recognition of the liability components were 0.8811% and 1.0425%, respectively.

Issuance proceeds (less transaction costs of NT$5,000 thousand) $ 2,028,695
Equity components (85,600)
Component of liability at issuance date (less transaction costs allocated to liability of NT$5,000 thousand) 1,943,095
Interest calculated at effective interest rates of 0.8811% and 1.0425% (Note 21) 94
Components of liabilities on June 30, 2025 $ 1,943,189

Notes and Accounts Payable (Including Related Parties)

	June 30, 2025	December 31, 2024	June 30, 2024
Notes payable	$ 6,774	$ 4,532	$ 6,202
Accounts payable	435,161	586,007	463,144
	$ 441,935	$ 590,539	$ 469,346

Notes and accounts payable consist of payments to suppliers.

17. Other Payables

	June 30, 2025	December 31, 2024	June 30, 2024
Wages and salaries payable and bonuses	$ 405,306	$ 595,465	$ 517,584
Equipment payable	78,182	209,301	50,795
Rents payable	7,153	9,945	9,665
Employee and director remuneration payable	12,270	26,600	12,220
Dividends payable	1,493,112	-	1,452,757
Other payables	318,977	352,875	346,570
	$ 2,315,000	$ 1,194,186	$ 2,389,591

18. Retirement Benefit Plans

The pension costs under the defined benefit plans for the periods from April 1 to June 30, 2025 and 2024, and from January 1 to June 30, 2025 and 2024, were calculated based on the pension cost rates determined by actuarial valuation as of December 31, 2024 and 2023, respectively. The amounts were NT$118 thousand, NT$196 thousand, NT$237 thousand, and NT$391 thousand, respectively.

19. Equity

(1) Capital stock

Ordinary Shares

	June 30, 2025	December 31, 2024	June 30, 2024
Authorized shares (thousand shares)	100,000	100,000	100,000
Authorized capital stock	$ 1,000,000	$ 1,000,000	$ 1,000,000
Issued and paid shares (thousand shares)	80,709	80,709	80,709
Issued capital stock	$ 807,087	$ 807,087	$ 807,087

Each issued ordinary share with a par value of NT$10 per share carries one voting right and entitles the holder to receive dividends.

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(2) Capital surplus

	June 30, 2025	December 31, 2024	June 30, 2024
The portion used to offset deficits, distributed as cash dividends, or transferred to capital stock (Note)
Share premium	$ 3,916,244	$ 3,916,244	$ 3,916,244
The difference between the purchase price and the book value of acquired subsidiary shares	352,831	352,831	352,831
The portion not used for any purpose
Warrants for convertible bonds	85,600	-	-
	$ 4,354,675	$ 4,269,075	$ 4,269,075

Note: This type of capital surplus may be used to offset deficits, and may also be distributed as cash dividends or transferred to share capital when the Company has no deficit, provided that the transfer is limited to a certain percentage of the Company's paid-in capital each year

(3) Retained earnings and dividend policy

According to the Articles of Incorporation of Pan German Universal, if there is a profit in the annual financial statements after paying taxes and offsetting accumulated losses, then 10% shall be allocated as legal reserve, and the remainder shall be allocated or reversed into special reserve in accordance with legal provisions. If there is still a balance, together with the accumulated unappropriated retained earnings, the Board of Directors shall draft an earnings appropriation proposal and submit it to the shareholders' meeting for resolution on the dividend distribution. When distributing dividends or bonuses using the aforementioned legal reserves and capital surplus, the Board of Directors must convene with at least two-thirds of its members present and obtain a resolution with the majority of the directors in attendance. The resolution will then be reported to the shareholders' meeting.

The dividend policy of Pen German Universal is based on factors such as profitability, capital structure, and future operational needs. The annual dividend distribution shall be no less than 50% of the net profit after tax for the current year. However, if the accumulated distributable surplus is less than 20% of the paid-in

capital, no distribution may be made. The Company follows a balanced dividend policy between stock dividends and cash dividends, with the proportion of cash dividends no less than 10% of the total amount of dividends and bonuses distributed to shareholders. For policies regarding the distribution of employee and director remunerations, please refer to “Compensation of employees and remuneration of directors” in Note 21 (5).

When the balance of legal reserve reaches the total paid-in capital stock amount of Pan German Universal, no further allocation is required. The legal reserve may be used to offset a deficit. If the Company has no deficit, any portion of the legal reserve exceeding 25% of the paid-in capital can be transferred to capital stock and distributed in cash.

The earnings distribution proposals of the Company in 2024 and 2023 are as follows:

	Earnings distribution proposals		Dividends per share (NTD)
	2024	2023	2024	2023
Legal reserve	$ 193,146	$ 178,930	$ -	$ -
Cash dividends	1,493,112	1,452,757	18.5	18

The above cash dividends were resolved by the Board of Directors on March 12, 2025, and March 13, 2024, respectively. The remaining items of earnings appropriation for the years 2024 and 2023 were approved at the annual shareholders' meetings on June 13, 2025, and June 21, 2024, respectively.

(4) Other equity

There were no significant changes in other equity interest items during the periods from January 1 to June 30, 2025 and 2024.

Revenue

(1) Contract balance

	June 30, 2025	December 31, 2024	June 30, 2024	January 1, 2024
Contract liabilities-current
Advance sales receipts	$ 2,183,222	$ 3,684,511	$ 4,173,418	$ 4,269,248

(2) Disaggregation of revenue from contracts with customers

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Type of goods or services
Automobile sales revenue	$ 13,473,982	$ 14,506,372	$ 25,405,276	$ 26,783,157
Maintenance revenue	1,264,279	1,243,292	2,483,700	2,435,479
	$ 14,738,261	$ 15,749,664	$ 27,888,976	$ 29,218,636

Net Income

(1) Other income and net (expense) income

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Revenue arising from warranty extension	$ 8,028	$ 7,466	$ 16,126	$ 12,598

(2) Finance costs

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Interest on bank loans	$ 642	$ 14	$ 2,182	$ 14
Interest on convertible bonds	94	-	94	-
Interest on lease liabilities	10,662	10,342	20,789	20,572
Less: Amounts capitalized as part of the cost of qualifying assets	( 1,155 )	( 1,192 )	( 2,320 )	( 1,192 )
	$ 10,243	$ 9,164	$ 20,745	$ 19,394

Information on capitalized interest was as follows:

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Capitalized interest	$ 1,155	$ 1,192	$ 2,320	$ 1,192
Capitalization rate	1.3%	1.3%	1.3%	1.3%

(3) Depreciations and amortization

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Depreciation expense
Property, plant and equipment	$ 139,922	$ 156,486	$ 293,767	$ 310,620
Right-of-use assets	104,682	97,191	208,389	198,032
	244,604	253,677	502,156	508,652
Amortization expense
Software	1,425	1,069	2,860	2,147
Long-term prepaid expenses	1,136	902	2,235	1,831
	2,561	1,971	5,095	3,978
Total depreciation expense and amortization expense (part of operating expenses)	$ 247,165	$ 255,648	$ 507,251	$ 512,630

(4) Employee benefits expense

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Retirement benefits (Note 18)
Defined contribution plan	$ 20,518	$ 18,745	$ 40,955	$ 37,723
Defined benefit plans	118	196	237	391
Other Employee benefits	573,176	628,187	1,112,197	1,174,356
Total employee benefits	$ 593,812	$ 647,128	$ 1,153,389	$ 1,212,470
Expenses summarized by function
Operating costs	$ 57,862	$ 54,388	$ 115,037	$ 108,153
Operating expenses	535,950	592,740	1,038,352	1,104,317
	$ 593,812	$ 647,128	$ 1,153,389	$ 1,212,470

(5) Employee and director remuneration

According to the Articles of Incorporation of Pan German Universal, the Company shall allocate compensation to employees and directors at rates no less than 0.1% and no higher than 3% of the pre-tax profit before deducting employee and director remuneration. In addition, according to the amendment of the Securities and Exchange Act in August 2024, Pan German Universal passed a resolution to amend its Articles of Incorporation at the ordinary shareholders' meeting on June 13, 2025, stipulating that no less than 40% of the employee compensation appropriated for the current year shall be allocated as compensation for grassroots employees.

The estimated remuneration of employees (including compensation of non-executive employees) and directors for the period from January 1 to June 30, 2025, and for the period from January 1 to June 30, 2024 is as follows:

Accrued ratio

	January 1 to June 30, 2025	January 1 to June 30, 2024
Employee remuneration	0.1%	0.1%
Director remuneration	0.96%	0.88%

Amount

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Employee remuneration	$ 584	$ 684	$ 1,129	$ 1,229
Director remuneration	$ 5,416	$ 5,316	$ 10,871	$ 10,771

If there is any change in the amounts after the issue date of the annual consolidated financial statements, such changes will be treated as changes in accounting estimates and recognized in the subsequent year.

The employee and director remuneration for 2024 and 2023 resolved by the Board of Directors on March 12, 2025, and March 13, 2024, respectively, were as follows:

	2024	2023
	Cash	Cash
Employee remuneration	$ 2,590	$ 2,400
Director remuneration	23,310	21,600

The actual distribution amounts of employee and director remuneration for 2024 and 2023 were consistent with the amounts recognized in the 2024 and 2023 Consolidated Financial Statements.

For information regarding the employee and director remuneration of Pan German Universal, as resolved by the Board of Directors for the years 2025 and 2024, please refer to the "Market Observation Post System" of the Taiwan Stock Exchange.

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-31-

22. Income Tax

(1) Income tax recognized in profit or loss

The main components of income tax expenses were as follows:

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Income tax for the current period
Arising from current period	$ 129,800	$ 136,938	$ 231,645	$ 244,682
Adjustments from previous years	26	116	26	116
Deferred income tax
Arising from current period	( 1,169 )	2,708	( 3,010 )	2,980
Income tax expense recognized in profit or loss	$ 128,657	$ 139,762	$ 228,661	$ 247,778

(2) Income tax assessments

The profit-seeking enterprise income tax filings of the Company and Jet-Li Motors Ltd. have been assessed and approved by the tax authorities through 2023.

23. Earnings per Share

The earnings and weighted-average number of ordinary shares used in the calculation of earnings per share were as follows:

Net Income – Attributable to Owners of the Company

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Net income used in the calculation of basic/diluted EPS	$ 501,404	$ 547,313	$ 888,194	$ 968,922
Effect of dilutive potential ordinary shares:
After-tax interest on convertible bonds	76	-	76	-
Net income used in the calculation of basic EPS	$ 501,480	$ 547,313	$ 888,270	$ 968,922

	Unit: Thousand shares
	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Weighted average number of ordinary shares used in the calculation of basic EPS	80,709	80,709	80,709	80,709
Effects of dilutive potential ordinary shares:
Employee remuneration	4	4	7	7
Convertible bonds	215	-	108	-
Weighted average number of ordinary shares used in the calculation of diluted EPS	80,928	80,713	80,824	80,716

If the Company elects to settle employee compensation in cash or shares, diluted earnings per share are calculated assuming the compensation is settled in shares and considering dilutive potential ordinary shares in the weighted average number of outstanding shares. This dilutive effect of the potential ordinary shares is still considered when calculating diluted earnings per share, until the number of shares to be distributed to employees is determined by the Board of Directors in the following year.

24. Capital Risk Management

The Group manages its capital to ensure it will continue as a going concern while maximizing shareholder returns by optimizing the balance between debt and equity. The overall strategy of the Group remains unchanged.

The capital structure of the Group consists of the net debt and equity.

The Group is not subject to any externally imposed capital requirements.

25. Financial Instruments

(1) Information on fair value – Financial instruments not measured at fair value

Except as listed in the table below, the management of the Group believes that financial assets and financial liabilities not measured at Fair value are measured at amortized cost, and their carrying amounts approximate their fair values.

	June 30, 2025
	Carrying Amount	Fair Value
Liabilities
Convertible bonds	$ 1,943,189	$ 1,885,000

-32-

The fair value of convertible bonds is measured using Level 3 inputs, based on the binary tree valuation model for convertible bonds.

(2) Information on fair value – Financial instruments measured at fair value on a recurring basis

A. Fair value hierarchy

June 30, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Investment in equity instruments
– Domestic unlisted stocks	$ -	$ -	$ 29,674	$ 29,674
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Investment in equity instruments
– Domestic unlisted stocks	$ -	$ -	$ 29,674	$ 29,674
June 30, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Investment in equity instruments
– Domestic unlisted stocks	$ -	$ -	$ 29,674	$ 29,674

B. Reconciliation of financial instruments measured at Level 3 fair value

January 1 to June 30, 2025

Financial assets	Equity instruments of financial assets measured at fair value through other comprehensive income assets
Beginning balance	$ 29,674
Additions	-
Ending balance	$ 29,674

January 1 to June 30, 2024

Financial assets	Equity instruments of financial assets measured at fair value through other comprehensive income assets
Beginning balance	$ 29,674
Additions	-
Ending balance	$ 29,674

C. Valuation techniques and inputs for Level 3 fair value measurement

(a) Derivative instruments—the redemption right of convertible bonds is valued using a binary tree valuation model for convertible bonds, based on the conversion price, volatility, risk-free interest rate, risk discount rate, and remaining maturity.

(b) Investments in domestic unlisted (over-the-counter) equity are measured using an assets-based approach, which determines the fair value of the entire ordinary shares based on the balance sheet.

-34-

(3) Categories of financial instruments

	June 30, 2025	December 31, 2024	June 30, 2024
Financial assets
Financial assets measured at amortized cost (Note 1)	$ 5,403,584	$ 4,325,557	$ 6,818,546
Financial assets measured at other comprehensive income	29,674	29,674	29,674
Financial liabilities
Measured at amortized cost (Note 2)	2,782,283	1,852,715	866,711

Note 1: The balance of financial assets measured at amortized cost includes cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable, other receivables, guarantee deposits paid, and other financial assets.

Note 2: The balance includes financial liabilities measured at amortized cost, comprising short-term borrowings, notes payable, accounts payable, other payables (excluding wages, salaries, and bonuses payable, rents payable, dividends payable, employee and director remunerations), and bonds payable.

(4) Financial risk management objectives and policies

The major financial instruments of the Group include cash and cash equivalents, financial assets measured at amortized cost, notes and accounts receivable (including related parties), other receivables, guarantee deposits paid, other financial assets, notes and accounts (including related parties), other payables, short-term borrowings, bonds payable, and lease liabilities. The financial risk management of the Group is for managing financial risks related to operations, including market risk (primarily interest rate risk), credit risk, and liquidity risk.

With irregular reports by the financial management department, the management of the Group monitors risks and implements policies to mitigate risk exposures.

A. Market risk

The major financial risk of the Group due to its operating activities is interest rate risk.

Interest rate risk

The interest rate exposure occurred due to the short-term borrowings of the Group at a floating rate. However, since the borrowing terms are short, there is no significant interest rate risk.

Other price risk

Equity price exposure occurred due to the investments of the Group in domestic unlisted shares. Since the equity investments are not held for trading but are strategic investments, the Group does not actively trade these investments.

Sensitivity analysis

The sensitivity analysis below is determined based on the equity price exposure as of the balance sheet date.

If equity prices increase or decrease by 1%, other comprehensive income before tax for the period from January 1 to June 30, 2025 and 2024 would increase or decrease by NT$297 thousand due to the fluctuations in the fair value of financial assets measured at fair value through other comprehensive income.

B. Credit risk

Credit risk refers to the risk that a counterparty defaults on its contractual obligations, resulting in a financial loss to the Group. As of the balance sheet date, maximum exposure of the Group to credit risk primarily arises from:

The carrying amounts of financial assets are recognized in the Consolidated Balance Sheets.

The policy of the Group is to engage in transactions only with creditworthy counterparties. Additionally, since the customer base of the Group is diverse and unrelated, no significant credit risk is expected.

C. Liquidity risk

Liquidity risk refers to the risk of the Group being unable to provide cash or other financial assets to settle financial liabilities and thus failing to meet related obligations. The current working capital of the Group is sufficient to support its operations. Therefore, no liquidity risk arising from an inability to raise funds to meet contractual obligations is found. The unutilized financing limits of the Group as of June 30, 2025, December 31, 2024, and June 30, 2024, were NT$1,800,000 thousand, NT$2,100,000 thousand, and NT$3,000,000 thousand, respectively.

Liquidity and interest rate risk tables for non-derivative financial liabilities

-36-

Analysis of the remaining contractual maturity of non-derivative financial liabilities is prepared based on the undiscounted cash flows (including principal and estimated interest) of the financial liabilities on the earliest possible repayment date of the Group. The maturity analysis of other non-derivative financial liabilities is prepared based on the agreed repayment dates.

For cash flows of interest payments at floating rates, the undiscounted interest amounts are derived from the yield curve as of the balance sheet date.

June 30, 2025

	Less than 1 year	1 – 5 years	Over 5 years
Non-interest-bearing liabilities	$ 846,247	$ -	$ -
Leases liabilities	455,345	1,247,904	1,717,753
Fixed rate instruments	-	1,943,189	-
	$ 1,301,592	$ 3,191,093	$ 1,717,753

December 31, 2024

	Less than 1 year	1 – 5 years	Over 5 years
Non-interest-bearing liabilities	$ 1,162,660	$ -	$ -
Leases liabilities	373,067	1,125,046	1,772,534
Fixed rate instruments	700,853	-	-
	$ 2,236,580	$ 1,125,046	$ 1,772,534

June 30, 2024

	Less than 1 year	1 – 5 years	Over 5 years
Non-interest-bearing liabilities	$ 876,376	$ -	$ -
Leases liabilities	414,539	1,168,153	1,826,484
	$ 1,290,915	$ 1,168,153	$ 1,826,484

Related Party Transactions

Transactions, account balances, revenues, and expenses between the Company and its subsidiaries (as related parties of the Company) are fully eliminated during the preparation of the consolidated financial statements and are therefore not disclosed in this note. Transactions between the Group and other related parties are as follows:

-37-

(1) Related party name and relationships

Name of related parties	Relationship with the Group
Pan German Motors Ltd.	Joint ventures in which the entity is a venturer
Union Capital Carleasing Ltd.	Joint ventures in which the entity is a venturer
Yi Der International Ltd.	Joint ventures in which the entity is a venturer
Universal Motor Traders Ltd.	Joint ventures in which the entity is a venturer
Yung Shin Carleasing Ltd.	Joint ventures in which the entity is a venturer
Yung Foong Imp. & Exp. Co., Ltd.	Joint ventures in which the entity is a venturer

(2) Operating revenue

Related party category	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Joint ventures in which the entity is a venturer
Union Capital Carleasing Ltd.	$ 786,402	$ 908,520	$ 1,562,580	$ 1,841,944
Yi Der International Ltd.	725,474	759,656	1,388,223	1,342,616
Pan German Motors Ltd.	75,583	77,898	148,983	151,910
Other	-	-	-	49
	$ 1,587,459	$ 1,746,074	$ 3,099,786	$ 3,336,519

The sales terms to related parties are consistent with those of non-related parties, except for sales to Pan German Motors Ltd., which is unique in nature and has no comparable transactions with non-related parties.

(3) Purchases

Related party category/Name	April 1 to June 30, 2024	April 1 to June 30, 2024	January 1 to June 30, 2024	January 1 to June 30, 2024
Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ 7,380,953	$ 9,358,714	$ 12,597,709	$ 15,188,745
Other	104,149	16,372	157,235	67,443
	$ 7,485,102	$ 9,375,086	$ 12,754,944	$ 15,256,188

The purchase terms of the Group with related parties are unique in nature, and no unrelated parties are available for comparison. All other aspects are consistent with those of non-related parties.

(4) Notes and accounts receivable – related parties

Item	Related party category/Name	June 30, 2025	December 31, 2024	June 30, 2024
Notes receivable	Joint ventures in which the entity is a venturer	$ -	$ 29	$ -
Accounts receivable	Joint ventures in which the entity is a venturer
	Pan German Motors Ltd.	$ 141,862	$ 199,323	$ 91,604
	Others	3,343	2,419	3,977
		$ 145,205	$ 201,742	$ 95,581

Notes and accounts receivable – related parties arise from sales activities. The outstanding balances of these receivables are not secured by any guarantees from related parties.

For credit period and credit risk management policies related to the Group, please refer to Note 9.

The Group's notes receivable – related parties are not all overdue. For information on the allowance for losses on related party receivables measured according to the provision matrix, please refer to Note 9.

(5) Accounts payable – related parties

Item	Related party category/Name	June 30, 2025	December 31, 2024	June 30, 2024
Notes payable	Joint ventures in which the entity is a venturer	$ -	$ 464	$ -
Accounts payable	Joint ventures in which the entity is a venturer
	Pan German Motors Ltd.	$ 306,089	$ 497,288	$ 367,653

The outstanding balances of accounts payable to related parties are not secured by any guarantees.

(6) Other receivables – related parties

Related party category	June 30, 2025	December 31, 2024	June 30, 2024
Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ 550,569	$ 638,459	$ 540,815
Other	653	926	526
	$ 551,222	$ 639,385	$ 541,341

Other receivables – related parties primarily consist of target and image incentives receivable from the general agent and receivables from purchase returns.

(7) Prepayments to suppliers

Name of related parties	June 30, 2025	December 31, 2024	June 30, 2024
Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ 1,437,318	$ 1,824,653	$ 1,947,349

(8) Prepaid rent

Name of related parties	June 30, 2025	December 31, 2024	June 30, 2024
Joint ventures in which the entity is a venturer	$ 63	$ 291	$ 1,241

(9) Liabilities

Related party category	June 30, 2025	December 31, 2024	June 30, 2024
Joint ventures in which the entity is a venturer	$ 10,283	$ 14,602	$ 4,698

(10) Other payables

Related party category	June 30, 2025	December 31, 2024	June 30, 2024
Joint ventures in which the entity is a venturer	$ 25,722	$ 58,623	$ 29,299

Other payables – related parties mainly refer to rent payable, advertising expenses payable, equipment payments payable, computer software maintenance fee payable, transportation fee payable, repairs and maintenance expenses, utilities expenses, and telephone and fax fee payable.

(11) Other transactions with related parties

Recognized item	Related party category	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Operating expenses	Joint ventures in which the entity is a venturer	$ 24,685	$ 33,603	$ 57,480	$ 41,078
Other income	Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ 1,982	$ 1,455	$ 3,292	$ 2,965
	Others	1,443	1,509	2,691	2,543
		$ 3,425	$ 2,964	$ 5,983	$ 5,508
Target and image incentives	Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ 333,227	$ 235,351	$ 589,037	$ 402,424

Operating expenses – related parties mainly refer to expenses for business promotion, miscellaneous purchases, repairs and service expenses, training expenses, and system maintenance expenses incurred in transactions with related parties.

Other income – related parties mainly refer to income from marketing activity subsidies provided by the general agent.

Target and image incentives refer to bonuses granted by the general agent to distributors as rewards for achieving sales targets and for maintaining a positive brand image, and are recognized as deductions of cost of sales.

(12) Acquisition of property, plant and equipment

Related party category	Acquisition price
	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Joint ventures in which the entity is a venturer	$ 514	$ 411	$ 4,654	$ 1,898

The acquisition price for the periods January 1 to June 30, 2025 and 2024, includes equipment prepayments at the end of the period.

(13) Lease agreement

Acquisition of right-of-use assets

Related party category	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ -	$ -	$ 87,176	$ 12,813
Universal Motor Traders Ltd.	-	-	8,429	-
Yung Foong Imp. & Exp. Co., Ltd.	-	-	1,601	-
	$ -	$ -	$ 97,206	$ 12,813

Leases liabilities

Related party category/Name	June 30, 2025	December 31, 2024	June 30, 2024
Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ 349,604	$ 290,307	$ 318,257
Other	49,597	54,751	69,309
	$ 399,201	$ 345,058	$ 387,566

Interest expense

Related party category	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Joint ventures in which the entity is a venturer
Pan German Motors Ltd.	$ 1,241	$ 1,048	$ 2,410	$ 2,135
Other	158	195	323	411
	$ 1,399	$ 1,243	$ 2,733	$ 2,546

The Company leased real estate from related parties in 2025 and 2024, with lease terms ranging from 13 months to 43 years. The rental fees were negotiated with reference to market prices and are based on standard payment terms.

Lease expense

Related party category	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Joint ventures in which the entity is a venturer	$ 26,956	$ 18,493	$ 55,555	$ 31,260

(14) Compensation of key management personnel

	April 1 to June 30, 2025	April 1 to June 30, 2024	January 1 to June 30, 2025	January 1 to June 30, 2024
Short-term employee benefits	$ 24,888	$ 20,783	$ 44,855	$ 39,999

The remuneration of directors and other key management personnel was determined in accordance with individual performance and market trends.

Pledged Assets

The assets listed below have been pledged as collateral to secure the performance of leased land agreements and the distribution contract:

	June 30, 2025	December 31, 2024	June 30, 2024
Pledged deposits (recognized as financial assets measured at amortized cost)	$ 97,565	$ 97,565	$ 94,343

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28. Significant Contingent Liabilities and Unrecognized Contractual Commitments

(1) Important contracts

As of June 30, 2025, the significant commitments and contingencies of the Group are summarized as follows:

Contract type	Contract counterparty	Contract period	Scope
Distribution contract	Pan German Motors Ltd.	From January 1 to December 31, 2025	Authorize the Group to sell vehicles, parts, and accessories provided by the company within the distribution area, and to provide maintenance and repair services.
Distribution contract	Porsche Taiwan Motors Limited	Since January 1, 2018, either party may terminate the distribution contract at the end of the month following a 12-month prior notice.	Authorize the Group to sell vehicles, parts, and accessories provided by the company within the distribution area, and to provide maintenance and repair services.

(2) Committed capital expenditures that have been contracted but not yet incurred:

	June 30, 2025	December 31, 2024	June 30, 2024
Construction-in-progress contract	$ 1,001,483	$ 1,294,325	$ 1,639,640

29. Supplementary Disclosures

(1) Information on significant transactions and (2) Information on investees:

A. Loans to others. (None)
B. Endorsement and guarantee for others. (None)
C. Significant marketable securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures). (None)
D. Transactions of purchases and sales with related parties amounting to over NT$100 million or 20% of paid-in capital. (Table 1)
E. Receivables from related parties amounting to NT$100 million or 20% or more of paid-in capital. (Table 2)
F. Other: Business relationships and significant transactions between the parent company and subsidiaries, as well as among subsidiaries. (Table 3)
G. Information on investees. (Table 4)

(3) Information on investments in Mainland China

A. Information on any investee company in Mainland China, including the name of investees, main business activities, paid-in capital, investment method, inflows and outflows of investment funds, ownership percentage, investment gains or losses, ending book value of investment, repatriated investment income, and investment limit in Mainland China. (None)

B. Significant transactions with investee companies in Mainland China, either directly or indirectly through a third party, including their prices, payment terms, and unrealized gains or losses: (None)

(a) Purchase amount and percentage, ending balance of related payables, and percentage.

(b) Sales amount and percentage, ending balance of related receivables, and percentage.

(d) Ending balance of endorsements, guarantees, or collateral provided and the purposes thereof.

(e) The highest balance, ending balance, interest rate range, and total interest incurred for the current period with respect to fund financing.

(f) Transactions that have a material effect on the current period's profit or loss or financial position, such as the rendering or receipt of services.

-44-

-45-

30. Segment Information

Information provided to the chief operating decision-maker for resource allocation and performance assessment focuses on the types of products or services delivered or provided. The reportable segments of the Group are as follows

Sales and repair of automobile vehicles – BMW and MINI

– PORSCHE

(1) Segment revenue and operating results

The following is an analysis of the Group’s revenue and operating results from continuing operations by reportable segments:

	BMW and MINI	PORSCHE	Total
January 1 to June 30, 2025
Revenue from external customers	$ 16,052,188	$ 11,836,788	$ 27,888,976
Inter-segment revenue	84,054	98,163	182,217
Segment revenue	16,136,242	11,934,951	28,071,193
Internal write-offs	( 84,054 )	( 98,163 )	( 182,217 )
Consolidated revenue	$ 16,052,188	$ 11,836,788	$ 27,888,976
Segment profit or loss	$ 528,488	$ 563,647	$ 1,092,135
Unallocated profit or loss			24,720
Net profit before tax			$ 1,116,855
January 1 to June 30, 2024
Revenue from external customers	$ 17,384,483	$ 11,834,153	$ 29,218,636
Inter-segment revenue	88,261	44,784	133,045
Segment revenue	17,472,744	11,878,937	29,351,681
Internal write-offs	( 88,261 )	( 44,784 )	( 133,045 )
Consolidated revenue	$ 17,384,483	$ 11,834,153	$ 29,218,636
Segment profit or loss	$ 627,859	$ 558,259	$ 1,186,118
Unallocated profit or loss			30,582
Profit before tax			$ 1,216,700

Segment profit and loss refer to the profit earned by each segment. The measured amount is provided to the chief operating decision maker for resource allocation and performance assessment of the segments.

(2) Total segment assets

	BMW and MINI	PORSCHE	Total
June 30, 2025
Total assets	$ 11,870,669	$ 7,362,282	$ 19,232,951
Unallocated assets			4,294,003
Total consolidated assets			$ 23,526,954
December 31, 2024
Total assets	$ 12,921,897	$ 7,175,947	$ 20,097,844
Unallocated assets			2,987,416
Total consolidated assets			$ 23,085,260
June 30, 2024
Total assets	$ 10,596,286	$ 6,861,767	$ 17,458,053
Unallocated assets			5,683,718
Total consolidated assets			$ 23,141,771

For the purpose of monitoring segment performance and allocating resources between segments:

Except for the current and deferred tax assets, all assets are allocated to reportable segments whose shared assets are allocated based on the revenue earned by individual reportable segments. The total segment assets mentioned above do not include the assets of the General Administration Division.

The total liabilities and other segment information of the Group's reportable segments are not disclosed, as such information is not provided to the operating decision-maker.

Pan German Universal Motors Ltd. and Subsidiaries

Related Party Transactions for Purchases and Sales Reaching NT$100 Million or 20% of Paid-in Capital

For the Six Months Ended June 30, 2025

Table 1
(In thousands of NTD, unless otherwise specified)

Purchase (sales) company	Transaction counterparty	Relationship	Transaction details				Situations and reasons where the transaction terms differ from ordinary transactions		Notes/accounts receivable (payable)		Note
			Purchase (sales)	Amount	Percentage of total purchases (sales)	Credit period	Unit price	Credit period	Balance	Percentage of total notes/accounts receivable (payable)
Pan German Universal Motors Ltd.	Pan German Motors Ltd.	Joint ventures in which the entity is a venturer	Purchase	$ 12,596,344	56%	Note 1	No comparable transactions with unrelated parties	No comparable transactions with unrelated parties	($ 305,667)	( 74%)	Prepayments to suppliers $ 1,437,318
Pan German Universal Motors Ltd.	Pan German Motors Ltd.	Joint ventures in which the entity is a venturer	Sale	148,983	1%	O/A 60 days	No comparable transactions with unrelated parties	No comparable transactions with unrelated parties	141,862	33%	Contract liabilities 632
Pan German Universal Motors Ltd.	Union Capital Carleasing Ltd.	Joint ventures in which the entity is a venturer	Purchase	157,235	1%	Immediate payment	Consistent with unrelated parties	Consistent with unrelated parties	-	-
Pan German Universal Motors Ltd.	Union Capital Carleasing Ltd.	Joint ventures in which the entity is a venturer	Sale	1,344,664	5%	Immediate collection	Consistent with unrelated parties	Consistent with unrelated parties	3,334	1%
Pan German Universal Motors Ltd.	Yi Der International Ltd.	Joint ventures in which the entity is a venturer	Sale	1,387,877	5%	Immediate collection	Consistent with unrelated parties	Consistent with unrelated parties	9	-	Contract liabilities 9,651
Jet-Li Motors Ltd.	Union Capital Carleasing Ltd.	Joint ventures in which the entity is a venturer	Sale	217,916	11%	Immediate collection	Consistent with unrelated parties	Consistent with unrelated parties	-	-

Note 1: Payment for vehicles must be fully settled before delivery; payment for parts is O/A 45 days.

Pan German Universal Motors Ltd. and Subsidiaries
Receivables From Related Parties with Amounts Reaching NT$100 Million or 20% of Paid-in Capital
June 30, 2025

Table 2
(In thousands of NTD, unless otherwise specified)

Company with receivables	Transaction counterparty	Relationship	Balance of accounts receivable from related parties	Turnover ratio	Overdue receivables from related parties		Receivables from related parties collected in the subsequent period	Provision for allowance for loss amount
					Amount	Handling method
Pan German Universal	Pan German Motors Ltd.	Joint ventures in which the entity is a venturer	$ 692,431	Note 1	$ 42,266	—	$ 203,697	$ 921

Note 1: The receivables of Pan German Universal Motors Ltd. due from Pan German Motors Ltd. totaled NT$692,431 thousand, comprising accounts receivable of NT$141,862 thousand and other receivables of NT$550,569 thousand.

-48-

Pan German Universal Motors Ltd. and Subsidiaries
Business Relationships and Significant Transactions and Amounts Between the Parent Company and Subsidiaries, and Among Subsidiaries
For the Six Months Ended June 30, 2025

Table 3
(In thousands of NTD, unless otherwise specified)

No. (Note1)	Name of the counterparty	Transaction counterparty	Relationship with the counterparty (Note 2)	Transaction details			Percentage of total consolidated ratio of total assets (Note 3)
				Accounting item	Amount	Transaction terms
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Sales revenue	$ 40,594	Unique in nature, no comparable unrelated parties	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Purchase	21,203	Unique in nature, no comparable unrelated parties	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Accounts receivable – related parties	114	Immediate collection	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Other receivables – related parties	80	O/A 60 days	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Accounts payable – related parties	180	Immediate payment	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Other payables – related parties	231	Immediate payment	-

Note 1: Information on business transactions between the parent company and subsidiaries should be denoted separately in the number column. The method for filling in the numbers is as follows:
(1) The parent company: 0.
(2) Subsidiaries are numbered sequentially starting from 1 according to their respective companies.

Note 2: Relationships with the counterparty are classified as follows:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: For the calculation of the transaction amount as a percentage of the total consolidated revenue or total consolidated assets, if the account is recognized in assets or liabilities, the percentage is calculated based on the ending balance as a proportion of total consolidated assets; if the account is recognized in profit or loss, the percentage is calculated based on the amount accumulated during the period as a proportion of total consolidated revenue.

-49-

Pan German Universal Motors Ltd. and Subsidiaries
Information on Investees (Including Locations)
For the Six Months Ended June 30, 2025

Table 4
(In thousands of NTD, unless otherwise specified)

Investor	Investee	Location	Main businesses	Initial investment amount		End-of-period holdings			Profit and loss of the investee	Investment profit and loss recognized for the period	Note
				End of the period	End of last year	Number of shares	Percentage	Book value
Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	Taiwan	Transactions of vehicles, parts, and accessories, as well as maintenance and repair service.	$ 393,338	$ 393,338	16,000,000	100%	$ 496,587	$ 90,098	$ 90,098

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PGUM — Interim / Quarterly Report 2025

51992_rns_2026-05-15_edd44e1e-a55a-405e-91cb-877b51670f2a.pdf

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024 and Independent Auditors' Review Report

Foreword

Scope

Conclusion

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Balance Sheets

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income

B. Income tax expense

C. Financial instruments

(a) Equity Instruments

(b) Convertible Bonds

June 30, 2025

December 31, 2024

June 30, 2024

10. Inventories

11. Subsidiaries

13. Lease Arrangements

17. Other Payables

18. Retirement Benefit Plans

19. Equity

(1) Capital stock

Ordinary Shares

22. Income Tax

(1) Income tax recognized in profit or loss

(2) Income tax assessments

23. Earnings per Share

24. Capital Risk Management

25. Financial Instruments

Other price risk

Sensitivity analysis

B. Credit risk

C. Liquidity risk

28. Significant Contingent Liabilities and Unrecognized Contractual Commitments

(1) Important contracts

(2) Committed capital expenditures that have been contracted but not yet incurred:

29. Supplementary Disclosures

30. Segment Information

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PGUM Interim / Quarterly Report 2025