Stock Code: 2247

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 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

§ 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	12 – 14	4
	5. Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty	14	5
	6. Details of Significant Accounts	16 – 36	6 – 25
	7. Related Party Transactions	36 – 41	26
	8. Pledged Assets	41 – 42	27
	9. Significant Contingent Liabilities and Unrecognized Contractual Commitments	42	28
	10. Significant Disaster Losses	-	-
	11. Significant Events after the Balance Sheet Date	-	-
	12. Others	-	-
	13. Supplementary Disclosures	42 – 43, 46 – 49	29
	(1)Information on Significant Transactions
	(2)Information on Investees
	(3)Information on Investments in Mainland China
	(4)Information on Major Shareholders
	14. Segment Information	43 – 45	30

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 September 30, 2025 and 2024, the Consolidated Statements of Comprehensive Income for the three-month and nine-month periods ended September 30, 2025 and 2024, Consolidated Statements of Changes in Equity and Consolidated Statements of Cash Flows for the nine-month periods ended September 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 Standard (IAS) 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 Standard on Review Engagements (TWSRE) 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 the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting” as endorsed and made effective by the FSC. Accordingly, we believe that the Consolidated Financial Statements fairly present, in all material aspects, the consolidated financial position of the Group as of September 30, 2025 and 2024, and the consolidated financial performance for the three-month periods ended September 30, 2025 and 2024, as well as the consolidated financial performance and consolidated cash flows for the nine-month periods ended September 30, 2025 and 2024.

Deloitte & Touche Taiwan
CPA: Shih, Chin-Chuang
CPA: Liu, Shu-Ling
November 10, 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

September 30, 2025 and December 31 and September 30, 2024

(In Thousands of NTD)

Code	Assets	September 30, 2025		December 31, 2024		September 30, 2024
		Amount	%	Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Notes 6 and 25)	$ 2,448,488	11	$ 2,922,555	13	$ 2,969,596	14
1136	Financial assets at amortized cost – current (Notes 8, 25, and 27)	7,400	-	5,400	-	105,400	-
1150	Notes receivable, net (Notes 9, 25, and 26)	182	-	7,523	-	555	-
1170	Accounts receivable, net (Notes 9, 25, and 26)	406,045	2	489,563	2	469,553	2
1200	Other receivables (Notes 25 and 26)	517,802	2	701,909	3	771,009	4
130X	Inventories (Note 10)	5,783,375	26	6,810,431	30	5,377,129	25
1421	Prepayments to suppliers (Note 26)	2,377,451	11	2,174,622	9	3,130,049	14
1470	Prepaid expenses and other current assets (Note 26)	124,205	1	106,444	-	116,271	1
11XX	Total current assets	11,664,948	53	13,218,447	57	12,939,562	60
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)	7,965	-	92,165	1	88,943	-
1600	Property, plant and equipment (Notes 12 and 26)	7,052,879	33	5,527,989	24	5,464,026	25
1755	Right-of-use assets (Notes 13 and 26)	2,878,423	13	2,831,640	12	2,835,522	13
1821	Intangible assets	1,749	-	1,992	-	2,888	-
1840	Deferred tax assets	36,059	-	28,596	-	29,294	-
1915	Prepayments for business facilities (Note 26)	6,751	-	1,222,957	5	127,279	1
1920	Guarantee deposits paid (Note 25)	105,755	1	105,062	1	100,190	1
1984	Other non-current financial assets (Note 25)	1,380	-	1,380	-	1,380	-
1995	Long-term prepaid expenses	24,209	-	25,358	-	24,638	-
15XX	Total non-current assets	10,144,844	47	9,866,813	43	8,703,834	40
1XXX	Total assets	$ 21,809,792	100	$ 23,085,260	100	$ 21,643,396	100
Code	Liability and Equity
Current liabilities
2100	Short-term borrowings (Notes 14 and 25)	$ -	-	$ 700,000	3	$ -	-
2130	Contract liabilities – current (Notes 20 and 26)	1,657,926	8	3,684,511	16	3,800,522	18
2150	Notes payable (Notes 16 and 25)	14,499	-	4,532	-	5,541	-
2170	Accounts payable (Notes 16 and 25)	147,422	1	88,719	-	115,991	-
2180	Accounts payable – related parties (Notes 16, 25, and 26)	330,051	1	497,288	2	367,631	2
2200	Other payables (Notes 17, 25, and 26)	897,395	4	1,194,186	5	1,018,272	5
2230	Current tax liabilities	297,973	1	257,387	1	141,056	1
2280	Lease liabilities – current (Notes 13 and 26)	421,288	2	354,898	2	370,220	2
2399	Other current liabilities	161,991	1	144,938	1	102,967	-
21XX	Total current liabilities	3,928,545	18	6,926,459	30	5,922,200	28
Non-current liabilities
2530	Bonds payable (Notes 4, 15, and 25)	1,947,902	9	-	-	-	-
2550	Other non-current liabilities	61,660	-	61,660	-	61,660	-
2580	Lease liabilities – non-current (Notes 13 and 26)	2,759,333	13	2,774,369	12	2,795,547	13
2640	Net defined benefit liabilities – non-current (Note 4)	25,993	-	28,277	-	33,800	-
25XX	Total non-current liabilities	4,794,888	22	2,864,306	12	2,891,007	13
2XXX	Total liabilities	8,723,433	40	9,790,765	42	8,813,207	41
Equity attributable to owners of the parent Company (Notes 4 and 19)
3110	Ordinary share	807,087	4	807,087	4	807,087	4
3200	Capital surplus	4,354,675	20	4,269,075	19	4,269,075	20
Retained earnings
3310	Legal reserve	1,436,359	6	1,243,213	5	1,243,213	5
3350	Unappropriated retained earnings	6,460,739	30	6,947,621	30	6,487,142	30
3300	Total retained earnings	7,897,098	36	8,190,834	35	7,730,355	35
3400	Other equity interest item	27,499	-	27,499	-	23,672	-
3XXX	Total equity	13,086,359	60	13,294,495	58	12,830,189	59
Total liabilities and equity		$ 21,809,792	100	$ 23,085,260	100	$ 21,643,396	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 Nine Months Ended September 30, 2025 and 2024

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

Code		July 1 to September 30, 2025		July 1 to September 30, 2024		January 1 to September 30, 2025		January 1 to September 30, 2024
		Amount	%	Amount	%	Amount	%	Amount	%
4000	Net operating revenue (Notes 20 and 26)	$ 11,332,440	100	$ 14,335,175	100	$ 39,221,416	100	$ 43,553,811	100
5000	Operating costs (Notes 10, 21, and 26)	10,018,268	88	12,707,705	88	34,822,670	89	38,730,399	89
5900	Gross profit from operations	1,314,172	12	1,627,470	12	4,398,746	11	4,823,412	11
	Operating expenses (Notes 9, 18, 21, and 26)
6100	Selling expenses	894,803	8	976,338	7	2,791,903	7	2,873,727	7
6200	Administrative expenses	53,808	-	56,179	-	170,160	-	185,273	-
6450	Expected credit loss (reversal gain)	(359)	-	211	-	(438)	-	413	-
6000	Total operating expenses	948,252	8	1,032,728	7	2,961,625	7	3,059,413	7
6500	Other income and net expenses (Note 21)	7,336	-	6,951	-	23,462	-	19,549	-
6900	Net profit from operations	373,256	4	601,693	5	1,460,583	4	1,783,548	4
	Non-operating income and expenses
7100	Interest revenue	5,559	-	6,913	-	9,867	-	27,304	-
7110	Rent income	1,511	-	1,117	-	4,265	-	3,141	-
7190	Other income (Note 26)	25,498	-	30,476	-	68,841	-	62,301	-
7510	Interest expense (Notes 15, 21, and 26)	(14,159)	-	(8,875)	-	(34,904)	-	(28,269)	-
7590	Miscellaneous disbursements	(1)	-	(1,571)	-	(133)	-	(1,572)	-
7000	Total non-operating income and expenses	18,408	-	28,060	-	47,936	-	62,905	-
7900	Net profit before tax	391,664	4	629,753	5	1,508,519	4	1,846,453	4
7950	Income tax expense (Notes 4 and 22)	80,482	1	127,690	1	309,143	1	375,468	1
8200	Net profit	311,182	3	502,063	4	1,199,376	3	1,470,985	3
8500	Total comprehensive income	$ 311,182	3	$ 502,063	4	$ 1,199,376	3	$ 1,470,985	3
	Net profit attributable to:
8610	Owners of the Company	$ 311,182	3	$ 502,063	4	$ 1,199,376	3	$ 1,470,985	3
	Comprehensive income attributable to:
8710	Owners of the Company	$ 311,182	3	$ 502,063	4	$ 1,199,376	3	$ 1,470,985	3
	Earnings per share (Note 23)
9750	Basic	$ 3.86		$ 6.22		$ 14.86		$ 18.23
9850	Diluted	$ 3.59		$ 6.22		$ 14.47		$ 18.22

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 Nine Months Ended September 30, 2025 and 2024
(In Thousands of NTD)

Code		Share capital			Retained earnings		Other equity interest item
		Shares (thousand shares)	Amount	Capital surplus	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 September 30, 2024	-	-	-	-	1,470,985	-	1,470,985
Z1	Balance on September 30, 2024	80,709	$ 807,087	$ 4,269,075	$ 1,243,213	$ 6,487,142	$ 23,672	$ 12,830,189
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 September 30, 2025	-	-	-	-	1,199,376	-	1,199,376
Z1	Balance on September 30, 2025	80,709	$ 807,087	$ 4,354,675	$ 1,436,359	$ 6,460,739	$ 27,499	$ 13,086,359

The accompanying notes are an integral part of the Consolidated Financial Statements.

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

Code		January 1 to September 30, 2025	January 1 to September 30, 2024
Cash flows from operating activities
A10000	Profit before tax	$ 1,508,519	$ 1,846,453
A20010	Profit or loss items
A20100	Depreciation expense	742,935	760,553
A20200	Amortization expense	4,269	3,271
A29900	Amortization of long-term prepaid expenses	3,411	2,736
A20300	Expected credit impairment loss (reversal gain)	( 438 )	413
A20900	Interest expense	34,904	28,269
A21200	Interest revenue	( 9,867 )	( 27,304 )
A21300	Dividend revenue	( 997 )	( 2,735 )
A23700	Inventory write-downs and obsolescence loss	39,902	3,085
A29900	Gain on lease modification	( 1,126 )	-
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	7,341	2,956
A31150	Accounts receivable	83,956	( 64,446 )
A31180	Other receivables	184,016	( 190,293 )
A31200	Inventories	2,013,048	356,417
A31220	Long-term prepaid expenses	( 2,262 )	( 1,281 )
A31230	Prepayments to suppliers	( 202,829 )	( 2,059,633 )
A31240	Prepaid expenses and other current assets	( 17,761 )	( 25,711 )
A32125	Contract liabilities	( 2,026,585 )	( 468,726 )
A32130	Notes payable	9,967	( 7,588 )
A32150	Accounts payable	58,703	( 11,097 )
A32160	Accounts payable – related parties	( 167,237 )	45,269
A32180	Other payables	( 242,439 )	53,541
A32230	Other current liabilities	16,747	( 43,749 )
A32240	Net defined benefit liabilities	( 2,284 )	( 23,218 )
A33000	Cash inflow generated from operations	2,033,893	177,182
A33100	Interest received	9,958	28,184
A33300	Interest paid	( 33,071 )	( 30,644 )
A33500	Income taxes paid	( 276,020 )	( 494,559 )
AAAA	Net cash flows from (used in) operating activities	1,734,760	( 319,837 )
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Code		January 1 to September 30, 2025	January 1 to September 30, 2024
	Cash flows from (used in) investing activities
B00040	Acquisition of financial assets at amortized cost	($ 2,000)	($ 100,000)
B00050	Proceeds from disposal of financial assets at amortized cost	84,200	500,000
B02700	Purchase of property, plant, and equipment	( 1,791,848)	( 1,728,505)
B03700	Increase in guarantee deposits	( 693)	( 415)
B04500	Purchase of intangible assets	( 4,026)	( 4,505)
B07100	Increase in prepayments for business facilities	( 11,169)	( 131,734)
B07600	Dividends received	997	2,735
BBBB	Net cash flows in investing activities	( 1,724,539)	( 1,462,424)
	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	( 320,177)	( 300,433)
C04500	Cash dividends paid	( 1,493,112)	( 1,452,757)
CCCC	Net cash flows in financing activities	( 484,288)	( 1,753,190)
EEEE	Net decrease in cash and cash equivalents for the period	( 474,067)	( 3,535,451)
E00100	Cash and cash equivalents at beginning of period	2,922,555	6,505,047
E00200	Cash and cash equivalents at end of period	$ 2,448,488	$ 2,969,596

The accompanying notes are an integral part of the Consolidated Financial Statements.

Pan German Universal Motors Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements
For the Nine Months Ended September 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, sale, maintenance, and repair of automobiles and their components.

Shares of Pan German Universal 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, sale, 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 November 10, 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 “IFRS Accounting Standards”), as endorsed and made effective by the Financial Supervisory Commission (hereinafter referred to as the “FSC”).

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

(2) IFRS Accounting Standards endorsed by the FSC applicable in 2026

New, Revised or Amended Standards and Interpretations	Effective Date Issued 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

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New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB
"Annual Improvements to IFRS Accounting Standards – Volume 11"	January 1, 2026
IFRS 17 “Insurance Contracts”	January 1, 2023

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

A. Regarding amendments to the application guidance on the classification of financial assets

The key amendments to the classification requirements for financial assets are as follows:

(a) If a financial asset contains a contingent event that can change the timing or amount of contractual cash flows, and the nature of the contingent event 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 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 contractual terms but without 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.

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B. Regarding amendments to the application guidance on the derecognition of financial liabilities

The amendment primarily explains that financial liabilities shall be derecognized on the settlement date. However, when a company settle financial liabilities in cash with an electronic payment system, it may choose to derecognize the financial liabilities before the settlement date if the following conditions are met:

The entity does not have the practical ability to withdraw, stop, or cancel the payment instruction.
The entity does not have the practical ability to access cash that will be used for settlement due to the payment instructions.
The settlement risks associated with the electronic payment system are not significant.

The Group is required to retrace the comparative periods for which the amendment is applicable without the need for restatement, and recognize the impact of the initial application as of the date of the initial application. However, if a company may 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 of various amendments on the financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

(3) IFRS Accounting Standards 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 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including amendments for 2025)	January 1, 2027

Note 1: 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.

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Note 2: The FSC announced on September 25, 2025, that enterprises in Taiwan shall apply IFRS 18 from January 1, 2028, with the option for early adoption after IFRS 18 is endorsed.

IFRS 18 "Presentation and Disclosure in 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 shall 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 shall 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 dissimilar characteristics shall 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 the financial statements or communicates perspectives of management on specific aspects of its overall financial performance to users of the financial statements, it shall disclose the management-defined performance measures in a single note. This disclosure should include a description of the measure, the method of calculation, a reconciliation with subtotals or totals specified by IFRS Accounting Standards, 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 impacts of the amendments to various standards and interpretations on its financial position and performance. The relevant impacts will be disclosed upon the completion of the evaluation.

4. 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 disclosure information required by IFRS Accounting Standards for the entire annual consolidated financial statements.

(2) Basis of preparation

The Consolidated Financial Statements have been prepared on a 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., subsidiaries). The financial statements of the subsidiaries are adjusted to align with the accounting policies of the Group. All intra-group transactions, account balances, income, and expenses are fully eliminated during the preparation of the Consolidated Financial Statements. The total comprehensive income (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 subsidiaries' details, ownership percentage and main businesses.

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(4) Other significant accounting policies

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

A. Defined post-employment benefits

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. Tax expense

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.

14 -

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 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 share capital 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.

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

In the application of the Group's accounting policies, 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. 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 have been identified.

15 -

Cash and Cash Equivalents

	September 30, 2025	December 31, 2024	September 30, 2024
Cash on hand and revolving funds	$ 9,869	$ 17,801	$ 10,846
Checking accounts and demand deposits	1,845,670	2,574,405	2,296,130
Cash equivalents (investments with maturities within 3 months)
Time deposits	-	-	100,000
Repurchase agreements	592,949	330,349	562,620
	$ 2,448,488	$ 2,922,555	$ 2,969,596

The market rate intervals of cash equivalents were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Time deposits	-	-	1.50%
Repurchase agreements	1.24%	1.22%	1.22%

Financial Assets at Fair Value Through Other Comprehensive Income

	September 30, 2025	December 31, 2024	September 30, 2024
Non-current
Investments 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, management of the Group has elected to designate these investments as measured at fair value through other comprehensive income, as they believe recognizing short-term fluctuations in the fair value of these investments in profit or loss would not align with the Group's strategy of holding them for long-term purposes.

Financial Assets at Amortized Cost

	September 30, 2025	December 31, 2024	September 30, 2024
Current
Domestic investments
Time deposits with original maturities of more than 3 months	$ -	$ -	$ 100,000
Restricted time deposits	7,400	5,400	5,400
Less: Allowance for impairment loss	-	-	-
	$ 7,400	$ 5,400	$ 105,400
Non-current
Domestic investments
Restricted time deposits	$ 7,965	$ 92,165	$ 88,943
Less: Allowance for impairment loss	-	-	-
	$ 7,965	$ 92,165	$ 88,943
Restricted time deposits	0.77% – 1.70%	0.67% – 1.70%	0.63% – 1.69%

Refer to Note 27 for details on financial assets at amortized cost pledged as collateral.

Notes and Accounts Receivable (Including Related Party)

	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable
Measured at amortized cost
Total carrying amount	$ 182	$ 7,523	$ 555
Accounts receivable
Measured at amortized cost
Total carrying amount	$ 408,539	$ 492,495	$ 472,482
Less: Allowance for impairment loss	( 2,494 )	( 2,932 )	( 2,929 )
	$ 406,045	$ 489,563	$ 469,553

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 using 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 Group's credit risk has been significantly mitigated.

The Group measures the loss allowance for accounts receivable at an amount equal to lifetime expected credit losses (ECLs), except for specific customers, for which an

impairment loss is recognized when there is objective evidence of impairment. The lifetime ECLs for trade receivables are estimated using a provision matrix by reference to the customer's historical default history and current financial condition. As credit loss experience of the Group indicates no significant difference in loss patterns of different customer segments, the ECL rate is decided by the provision matrix based solely on the aging of receivables without further distinction among different customer bases.

If there is evidence that a counterparty is experiencing severe financial difficulties and the Group cannot reasonably expect to recover the outstanding amount—for instance, if 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.

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

September 30, 2025

	Not overdue	Overdue 1 – 60 days	Overdue for more than 61 days	Individual assessment	Total
Expected credit loss rate	0.5%	1.00%	1.00%
Total carrying amount	$ 366,311	$ 37,435	$ 4,523	$ 270	$ 408,539
Loss allowance (lifetime ECLs)	( 1,832 )	( 374 )	( 45 )	( 243 )	( 2,494 )
Amortized cost	$ 364,479	$ 37,061	$ 4,478	$ 27	$ 406,045

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

September 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	$ 407,145	$ 51,489	$ 13,578	$ 270	$ 472,482
Loss allowance (lifetime ECLs)	( 2,035 )	( 515 )	( 136 )	( 243 )	( 2,929 )
Amortized cost	$ 405,110	$ 50,974	$ 13,442	$ 27	$ 469,553

Changes in the loss allowance on accounts receivable were as follows:

	January 1 to September 30, 2025	January 1 to September 30, 2024
Beginning balance	$ 2,932	$ 2,516
Add: (Reversal of) provision for impairment loss	( 438 )	413
Ending balance	$ 2,494	$ 2,929

10. Inventories

	September 30, 2025	December 31, 2024	September 30, 2024
Motor vehicles	$ 5,218,901	$ 6,268,377	$ 4,809,615
Automotive parts and accessories	564,474	542,054	567,514
	$ 5,783,375	$ 6,810,431	$ 5,377,129

For the periods from July 1 to September 30, 2025 and 2024, and from January 1 to September 30, 2025 and 2024, inventories-related cost of sales amounted to NT$10,018,268 thousand, NT$12,707,705 thousand, NT$34,822,670 thousand, and NT$38,730,399 thousand, respectively. Cost of sales includes inventory write-down losses of NT$24,490 thousand, NT$1,871 thousand, NT$39,902 thousand, and NT$3,085 thousand, respectively.

As of September 30, 2025, December 31, 2024, and September 30, 2024, the allowance for inventory valuation losses on automobiles parts was NT$74,888 thousand, NT$34,986 thousand, and NT$18,474 thousand, respectively.

11. Subsidiaries

Subsidiaries included in the Consolidated Financial Statements

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

Name of investor	Name of subsidiary	Main business activities	Ownership (%)
			September 30, 2025	December 31, 2024	September 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	-	285	13,587	1,175,607	16,062	6,874	524,873	1,737,288
Disposals	-	-	(24,501)	-	(11,679)	(1,268)	-	(37,448)
Reclassification	1,216,817	-	2,743	(1,159,875)	8,823	1,926	12,501	82,935
Balance on September 30, 2025	$ 2,144,836	$ 3,406,614	$ 336,559	$ 913,788	$ 363,383	$ 1,375,883	$ 1,281,872	$ 9,822,935
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 1,265,151	$ 221,688	$ 103,094	$ 224,472	$ 697,766	$ -	$ 2,512,171
Depreciation expense	-	142,209	32,647	143,759	37,767	73,096	-	429,478
Disposals	-	-	(24,501)	-	(11,679)	(1,268)	-	(37,448)
Reclassification	-	-	-	(133,982)	(163)	-	-	(134,145)
Balance on September 30, 2025	$ -	$ 1,407,360	$ 229,834	$ 112,871	$ 250,397	$ 769,594	$ -	$ 2,770,056
Net amount on September 30, 2025	$ 2,144,836	$ 1,999,254	$ 106,725	$ 800,917	$ 112,986	$ 606,289	$ 1,281,872	$ 7,052,879
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	-	2,334	13,488	1,207,152	5,360	8,183	514,995	1,751,512
Disposals	-	-	(2,592)	(3,249)	(7,655)	-	-	(13,496)
Reclassification	-	-	5,542	(1,117,715)	690	1,212	10,509	(1,099,762)
Balance on September 30, 2024	$ 928,019	$ 3,406,905	$ 341,495	$ 935,685	$ 356,997	$ 1,368,684	$ 549,745	$ 7,887,530
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 1,044,979	$ 180,312	$ 100,395	$ 187,497	$ 587,104	$ -	$ 2,100,287
Depreciation expense	-	166,301	34,267	137,249	43,655	83,682	-	465,154
Disposals	-	-	(2,592)	(161)	(7,655)	-	-	(10,408)
Reclassification	-	-	-	(131,486)	(43)	-	-	(131,529)
Balance on September 30, 2024	$ -	$ 1,211,280	$ 211,987	$ 105,997	$ 223,454	$ 670,786	$ -	$ 2,423,504
Net amount on September 30, 2024	$ 928,019	$ 2,195,625	$ 129,508	$ 829,688	$ 133,543	$ 697,898	$ 549,745	$ 5,464,026

The reclassifications from January 1 to September 30, 2025 and 2024 primarily involved transferring prepayments for business facilities, reclassifying transportation equipment as inventories, and properties under construction. Upon completion, the costs eligible for capitalization were reclassified and recognized according to their nature. Please refer to Notes 13 and 21.

As there were no indications of impairment from January 1 to September 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

3 to 6 years

Miscellaneous equipment

2 to 15 years

Leasehold improvements

1 to 18 years

As of September 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	$694,126
Fuli Construction Co., Ltd.	March 2024	$890,476	$525,286

The abovementioned construction contracts pertain to the development of new business locations for the Group across various regions. As of September 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

	September 30, 2025		December 31, 2024		September 30, 2024
Carrying amount of right-of-use assets
Land	$2,069,949		$2,019,842		$1,965,908
Buildings	808,474		811,798		869,614
	$2,878,423		$2,831,640		$2,835,522
	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Additions to right-of-use assets			$403,401	$223,539
Depreciation of right-of-use assets
Land	$45,191	$41,443	$133,464	$123,891
Buildings	64,016	60,063	192,410	179,786
Capitalization of property, plant and equipment	(4,139)	(4,139)	(12,417)	(8,278)
	$105,068	$97,367	$313,457	$295,399

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 September 30, 2025 and 2024.

(2) Leases liabilities

	September 30, 2025	December 31, 2024	September 30, 2024
Carrying amount of lease liabilities
Current	$ 421,288	$ 354,898	$ 370,220
Non-current	$ 2,759,333	$ 2,774,369	$ 2,795,547

Range of discount rates for lease liabilities was as follows:

	September 30, 2025	December 31, 2024	September 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 to September 30, 2025, due to the modification of the lease terms, right-of-use assets of the Group decreased by NT$30,744 thousand, and lease liabilities decreased by NT$31,870 thousand.

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Short-term lease expenses	$ 21,273	$ 26,730	$ 53,070	$ 49,840
Total cash (outflow) for leases	( $ 138,935 )	( $ 136,527 )	( $ 404,629 )	( $ 380,903 )

The Group elected to apply the recognition exemption for short-term leases, and 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 short-term lease expenses.

14. Short-term Borrowings

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

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

15. Bonds Payable

	September 30, 2025	December 31, 2024	September 30, 2024
Face value of domestic unsecured convertible bonds	$ 2,000,000	$ -	$ -
Less: Discount on bonds payable	( 52,098 )	-	-
	$ 1,947,902	$ -	$ -

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 NT$1,010,000 thousand and NT$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; the conversion prices as of September 30, 2025, were NT$289.4 and NT$280.2 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)	4,807
Components of liabilities on September 30, 2025	$ 1,947,902

23 -

Notes and Accounts Payable (Including Related Parties)

	September 30, 2025	December 31, 2024	September 30, 2024
Notes payable	$ 14,499	$ 4,532	$ 5,541
Accounts payable	477,473	586,007	483,622
	$ 491,972	$ 590,539	$ 489,163

Notes and accounts payable primarily consist of payments to suppliers.

Other Payables

	September 30, 2025	December 31, 2024	September 30, 2024
Wages and salaries payable and bonuses	$ 419,565	$ 595,465	$ 559,307
Equipment payable	154,456	209,301	92,639
Rents payable	10,964	9,945	10,879
Employee and director remuneration payable	18,270	26,600	18,220
Other payables	294,140	352,875	337,227
	$ 897,395	$ 1,194,186	$ 1,018,272

Retirement Benefit Plans

The pension costs under the defined benefit plans for the periods from July 1 to September 30, 2025 and 2024, and from January 1 to September 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$119 thousand, NT$195 thousand, NT$356 thousand, and NT$586 thousand, respectively.

Equity

(1) Share Capital

Ordinary shares

	September 30, 2025	December 31, 2024	September 30, 2024
Authorized shares (thousand shares)	100,000	100,000	100,000
Authorized share capital	$1,000,000	$1,000,000	$1,000,000
Issued and paid-up shares (thousand shares)	80,709	80,709	80,709
Issued share capital	$ 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.

(2) Capital surplus

	September 30, 2025	December 31, 2024	September 30, 2024
The portion used to offset deficits, distributed as cash dividends, or transferred to share capital (Note)
Share premium	$ 3,916,244	$ 3,916,244	$ 3,916,244
The difference between the purchase price and 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

Pan German Universal passed a resolution to amend its Articles of Incorporation at the ordinary shareholders' meeting on June 13, 2025, stipulating that the Company's earning appropriation or loss compensation shall be made after the end of each semi-annual accounting period.

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. The aforementioned profit distribution, if made in cash, shall be resolved by the Board of Directors; if made by issuing new shares, it shall be resolved by the shareholders' meeting. If there is a profit in the annual financial statements, after paying taxes and offsetting accumulated losses, then 10% shall be appropriated as legal reserve, and the remainder shall be appropriated 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 a proposal for earnings appropriation and submit it to the shareholders' meeting for resolution on the distribution of dividends. When distributing dividends or bonuses using the aforementioned legal reserve and capital surplus, the Board of Directors must convene with at least two-thirds of its members present and obtain approval from the majority of the directors in attendance. The resolution will then be reported to the shareholders' meeting.

According to the earning appropriation policy of Pan German Universal's amended Articles of Incorporation, if there is a profit in the annual financial statements after paying taxes and offsetting accumulated losses, then 10% shall be appropriated as legal reserve, and the remainder shall be appropriated 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 a proposal for earnings appropriation and submit it to the shareholders' meeting for resolution on the distribution of dividends. When distributing dividends or bonuses using the aforementioned legal reserve and capital surplus, the Board of Directors must convene with at least two-thirds of its members present and obtain approval from the majority of the directors in attendance. The resolution will then be reported to the shareholders' meeting.

Pen German Universal's dividend policy is based on factors such as the Company's 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 "Employee and director remuneration" in Note 21 (5).

When the balance of legal reserve reaches the total amount of Pan German Universal's paid-in share capital, 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 share capital may be transferred to share capital or distributed in cash.

The Company's earnings appropriation proposals for 2024 and 2023 are as follows:

26 -

	Earnings appropriation 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 passed by resolution at the annual shareholders' meetings on June 13, 2025, and June 21, 2024, respectively.

The Company's interim earnings appropriation proposal for 2025 resolved by the Board of Directors, is as follows:

	First half of 2025
Date of Board of Directors' resolution	November 10, 2025
Legal reserve	$ 88,819
Cash dividends	$ 6.5
Cash dividends per share (NTD)	$ 524,607

(4) Other equity

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

Revenue

(1) Contract balance

	September 30, 2025	December 31, 2024	September 30, 2024	January 1, 2024
Contract liabilities-current Advance sales receipts	$ 1,657,926	$ 3,684,511	$ 3,800,522	$ 4,269,248

(2) Disaggregation of revenue from contracts with customers

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Type of goods or services
Automobile sales revenue	$ 10,008,071	$ 13,055,947	$ 35,413,347	$ 39,839,104
Maintenance and repair revenue	1,324,369	1,279,228	3,808,069	3,714,707
	$ 11,332,440	$ 14,335,175	$ 39,221,416	$ 43,553,811

Net Income

(1) Net other income (expenses)

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Revenue arising from warranty extension	$ 7,336	$ 6,951	$ 23,462	$ 19,549

(2) Finance costs

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Interest on bank loans	$ -	$ -	$ 2,182	$ 14
Interest on convertible bonds	4,713	-	4,807	-
Interest on lease liabilities	10,593	10,058	31,382	30,630
Less: Amounts capitalized as part of the cost of qualifying assets	( 1,147 )	( 1,183 )	( 3,467 )	( 2,375 )
	$ 14,159	$ 8,875	$ 34,904	$ 28,269

Information on capitalized interest was as follows:

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Capitalized interest	$ 1,147	$ 1,183	$ 3,467	$ 2,375
Capitalized rate	1.3%	1.3%	1.3%	1.3%

(3) Depreciation and amortization

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Depreciation expense
Property, plant and equipment	$ 135,711	$ 154,534	$ 429,478	$ 465,154
Right-of-use assets	105,068	97,367	313,457	295,399
	240,779	251,901	742,935	760,553
Amortization expense
Software	1,409	1,124	4,269	3,271
Long-term prepaid expenses	1,176	905	3,411	2,736
	2,585	2,029	7,680	6,007
Total depreciation and amortization expenses (part of operating expenses)	$ 243,364	$ 253,930	$ 750,615	$ 766,560

28 -

(4) Employee benefits expense

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Retirement benefits
(Note 18)
Defined contribution plan	$ 19,874	$ 19,330	$ 60,829	$ 57,053
Defined benefit plans	119	195	356	586
Other employee benefits	492,705	552,398	1,604,902	1,726,754
Total employee benefits expenses	$ 512,698	$ 571,923	$ 1,666,087	$ 1,784,393
Expenses summarized by function
Operating costs	$ 60,172	$ 57,753	$ 175,209	$ 165,906
Operating expenses	452,526	514,170	1,490,878	1,618,487
	$ 512,698	$ 571,923	$ 1,666,087	$ 1,784,393

(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 annual pre-tax profit before deducting employees 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 September 30, 2025, and 2024 is as follows:

Accrued ratio

	January 1 to September 30, 2025	January 1 to September 30, 2024
Employee remuneration	0.11%	0.10%
Director remuneration	1.07%	0.87%

Amount

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Employee remuneration	$ 507	$ 635	$ 1,636	$ 1,864
Director remuneration	$ 5,493	$ 5,365	$ 16,364	$ 16,136

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 employees 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.

22. Income Tax

(1) Income tax recognized in profit or loss

The main components of income tax expenses were as follows:

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Income tax for the current period
Arising from current period	$ 84,935	$ 126,673	$ 316,580	$ 371,355
Adjustments from previous years	-	-	26	116
Deferred income tax
Arising from current period	( 4,453 )	1,017	( 7,463 )	3,997
Income tax expense recognized in profit or loss	$ 80,482	$ 127,690	$ 309,143	$ 375,468

(2) Income tax assessments

The profit-seeking enterprise income tax filings of the Company and Jet-Li 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

31 -

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Net income used in the calculation of basic EPS	$ 311,182	$ 502,063	$ 1,199,376	$ 1,470,985
Effects of dilutive potential ordinary shares: After-tax interest on convertible bonds	3,770	-	3,846	-
Net income used in the calculation of basic EPS	$ 314,952	$ 502,063	$ 1,203,222	$ 1,470,985

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 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	5	6	7	8
Convertible bonds	7,024	-	2,444	-
Weighted average number of ordinary shares used in the calculation of diluted EPS	87,738	80,715	83,160	80,717

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 the potential dilutive effect of ordinary shares in the weighted average number of outstanding shares. The potential dilutive effect of these shares is still taken into account 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 Group's overall strategy remains unchanged.

The Group's capital structure consists of its 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.

	September 30, 2025
	Carrying amount	Fair Value
Financial liabilities
Convertible bonds	$1,947,902	$1,899,500

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 at fair value on a recurring basis

A. Fair value hierarchy

September 30, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Investments in equity instruments
– Domestic unlisted shares	$____	$____	$29,674	$29,674

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Investments in equity instruments	$ -	$ -	$ 29,674	$ 29,674
- Domestic unlisted shares
September 30, 2024	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Investments in equity instruments	$ -	$ -	$ 29,674	$ 29,674
- Domestic unlisted shares

B. Reconciliation of financial instruments measured at fair value - level 3

January 1 to September 30, 2025

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

January 1 to September 30, 2024

Financial assets	Equity instruments of financial assets at fair value through other comprehensive income
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.

(3) Categories of financial instruments

	September 30, 2025	December 31, 2024	September 30, 2024
Financial assets
Financial assets at amortized cost (Note 1)	$ 3,495,017	$ 4,325,557	$ 4,506,626
Financial assets at fair value through other comprehensive income	29,674	29,674	29,674
Financial liabilities
Measured at amortized cost (Note 2)	2,888,470	1,852,715	919,029

Note 1: The balance of financial assets 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 of financial liabilities at amortized cost includes short-term borrowings, notes payable, accounts payable, other payables (excluding wages, salaries, and bonuses payable, rents 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 at amortized cost, notes and accounts receivable (including related parties), other receivables, guarantee deposits paid, other financial assets, notes and accounts payable (including related parties), other payables, short-term borrowings, bonds payable, and lease liabilities. The Group manage financial risks related to its 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

The Group is exposed to equity price risk arising from investments in domestic unlisted shares. These equity investments are not held for trading but for strategic purposes, and the Group does not actively trade these investments.

Sensitivity analysis

The sensitivity analysis below is conducted based on the Group's equity price risks 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 September 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 financial losses to the Group. As of the balance sheet date, the Group's maximum exposure to credit risk from a counterparty's default on its contractual obligations primarily arises from:

The carrying amounts of financial assets 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 Group's current working capital is sufficient to support its operations, and therefore, there is no liquidity risk arising from an inability to raise funds to meet contractual obligations. The unutilized financing limits of the Group as of September 30, 2025, December 31, 2024, and September 30, 2024, were NT$2,800,000 thousand, NT$2,100,000 thousand, and NT$2,600,000 thousand, respectively.

35 -

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

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

September 30, 2025

	Less than 1 year	1 – 5 years	Over 5 years
Non-interest-bearing liabilities	$ 951,532	$ -	$ -
Lease liabilities	446,522	1,210,842	1,651,478
Fixed-rate instruments	-	1,947,902	-
	$ 1,398,054	$ 3,158,744	$ 1,651,478

December 31, 2024

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

September 30, 2024

	Less than 1 year	1 – 5 years	Over 5 years
Non-interest-bearing liabilities	$ 929,908	$ -	$ -
Lease liabilities	395,798	1,137,205	1,765,454
	$ 1,325,706	$ 1,137,205	$ 1,765,454

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:

(1) Related party names and relationships

37 -

Name of related party	Relationship with the Group
Pan German Motors Ltd.	The entity is a joint venture
Union Capital Carleasing Ltd.	The entity is a joint venture
Yi Der International Ltd.	The entity is a joint venture
Universal Motor Traders Ltd.	The entity is a joint venture
Yung Shin Carleasing Ltd.	The entity is a joint venture
Yung Foong Imp. & Exp. Co., Ltd.	The entity is a joint venture

(2) Operating revenue

Related party category	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
The entity is a joint venture
Union Capital Carleasing Ltd.	$ 597,197	$ 831,099	$ 2,159,777	$ 2,673,043
Yi Der International Ltd.	515,521	562,722	1,903,744	1,905,338
Pan German Motors Ltd.	71,857	86,692	220,840	238,602
Others	-	-	-	49
	$ 1,184,575	$ 1,480,513	$ 4,284,361	$ 4,817,032

The Group's 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	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
The entity is a joint venture
Pan German Motors Ltd.	$ 5,725,150	$ 7,966,847	$ 18,322,859	$ 23,155,592
Others	31,143	43,665	188,378	111,108
	$ 5,756,293	$ 8,010,512	$ 18,511,237	$ 23,266,700

The Group's purchase terms with related parties are unique in nature, and there are no comparable transactions with unrelated parties. All other terms are consistent with those applied to unrelated parties.

(4) Notes and accounts receivable – related parties

Item	Related party category/name	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable	The entity is a joint venture	$ 12	$ 29	$ 14
Accounts receivable	The entity is a joint venture
	Pan German Motors Ltd.	$ 75,928	$ 199,323	$ 98,321
	Others	1,698	2,419	660
		$ 77,626	$ 201,742	$ 98,981

Notes and accounts receivable – related parties arise from sales activities, and no guarantees were received for the outstanding balances of these receivables.

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

All the Group's notes receivable – related parties are not overdue. For details on the allowance for losses on account receivables – related party measured using the provision matrix, please refer to Note 9.

(5) Accounts and notes payable – related parties

Item	Related party category/name	September 30, 2025	December 31, 2024	September 30, 2024
Notes payable	The entity is a joint venture	$ -	$ 464	$ 464
Accounts payable	The entity is a joint venture
	Pan German Motors Ltd.	$ 330,051	$ 497,288	$ 367,631

The outstanding balances of notes and accounts payable – related parties are not secured by any guarantees.

(6) Other receivables – related parties

Related party category	September 30, 2025	December 31, 2024	September 30, 2024
The entity is a joint venture
Pan German Motors Ltd.	$ 442,386	$ 638,459	$ 691,800
Others	933	926	930
	$ 443,319	$ 639,385	$ 692,730

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

(7) Prepayments to suppliers

Name of related party	September 30, 2025	December 31, 2024	September 30, 2024
The entity is a joint venture
Pan German Motors Ltd.	$ 2,025,215	$ 1,824,653	$ 2,295,056
Others	7,850	-	-
	$ 2,033,065	$ 1,824,653	$ 2,295,056

(8) Prepaid rent

Name of related party	September 30, 2025	December 31, 2024	September 30, 2024
The entity is a joint venture	$ 229	$ 291	$ 1,537

(9) Contract liabilities

Related party category	September 30, 2025	December 31, 2024	September 30, 2024
The entity is a joint venture	$ 4,346	$ 14,602	$ 13,716

(10) Other payables

Related party category	September 30, 2025	December 31, 2024	September 30, 2024
The entity is a joint venture	$ 38,877	$ 58,623	$ 39,397

Other payables – related party mainly refers to rents payable, advertisement expense payable, equipment payables, computer software maintenance fee payable, repairs and maintenance expenses payable, utilities expense payable, and telephone and fax fee payable to related party.

(11) Other transactions with related parties

Recognized item	Related party category	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Operating expenses	The entity is a joint venture	$ 36,733	$ 41,433	$ 94,213	$ 82,511
Other income	The entity is a joint venture
	Pan German Motors Ltd.	$ 1,813	$ 1,920	$ 5,105	$ 4,885
	Others	1,404	1,799	4,095	4,342
		$ 3,217	$ 3,719	$ 9,200	$ 9,227
Target and image incentives	The entity is a joint venture
(Recognized as deductions of cost of sales)	Pan German Motors Ltd.	$ 243,372	$ 194,397	$ 832,409	$ 596,821

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

Other income - related parties mainly refer to income from marketing activity subsidies granted 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
	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
The entity is a joint venture	$ 1,871	$ 1,669	$ 6,525	$ 3,567

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

(13) Lease agreement

Acquisition of right-of-use assets

Related party category	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
The entity is a joint venture
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

Lease liabilities

Related party category/name	September 30, 2025	December 31, 2024	September 30, 2024
The entity is a joint venture
Pan German Motors Ltd.	$ 335,649	$ 290,307	$ 304,302
Others	41,979	54,751	62,040
	$ 377,628	$ 345,058	$ 366,342

Interest expense

Related party category	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
The entity is a joint venture
Pan German Motors Ltd.	$ 1,189	$ 1,006	$ 3,599	$ 3,141
Others	137	177	460	588
	$ 1,326	$ 1,183	$ 4,059	$ 3,729

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 the market prices and are based on the standard payment terms.

Lease expense

Related party category	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
The entity is a joint venture	$ 25,224	$ 22,922	$ 80,779	$ 54,182

(14) Remuneration of key management personnel

	July 1 to September 30, 2025	July 1 to September 30, 2024	January 1 to September 30, 2025	January 1 to September 30, 2024
Short-term employee benefits	$ 23,417	$ 25,211	$ 68,272	$ 65,210

The compensation to directors and other key management personnel were determined in accordance with the individual performance and the market trends.

Pledged Assets

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

	September 30, 2025	December 31, 2024	September 30, 2024
Pledged time deposits
(Recognized as financial assets at amortized cost)	$ 15,365	$ 97,565	$ 94,343

Significant Contingent Liabilities and Unrecognized Contractual Commitments

(1) Important contracts

As of September 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.	2025.1.1 – 2025.12.31	Authorize the Group to sell vehicles and components 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 and components provided by the Company within the distribution area, and to provide maintenance and repair services.

(2) Capital expenditures that have been contracted but not yet incurred

	September 30, 2025	December 31, 2024	September 30, 2024
Construction-in-progress contract	$ 786,407	$ 1,294,325	$ 1,474,905
Land contracts	$ -	$ -	$ 1,095,306

The Group acquired land in Nantun District, Taichung City, through a successful bid, on September 19, 2024, for a total of NT$1,216,817 thousand, and plans to construct an operational site.

Supplementary Disclosures

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

A. Loans to others. (None)
B. Endorsements/guarantees provided for other parties. (None)
C. Significant marketable securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures). (None)

D. Related party transactions for purchases and sales reaching NT$100 million or 20% of paid-in capital. (Table 1)

E. Receivables from related parties amounting to NT$100 million or paid-in capital 20% or more. (Table 2)

F. Others: Business relationships and significant transactions and amounts between the parent company and its 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 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 carrying amount of investment, repatriated investment income, and the investment limit in Mainland China. (None)

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

(a) Purchase amounts and percentage, ending balances and percentage of related payables.

(b) Sales amounts and percentage, ending balances and percentage of related receivables.

(d) Ending balances 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.

Segment Information

Information provided to chief operating decision-maker for the purpose of 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 repairing of automobile vehicles – BMW and MINI

– PORSCHE

43 -

(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 September 30, 2025
Revenue from external customers	$ 23,259,585	$ 15,961,831	$ 39,221,416
Inter-segment revenue	113,263	157,132	270,395
Segment revenue	23,372,848	16,118,963	39,491,811
Internal write-offs	( 113,263 )	( 157,132 )	( 270,395 )
Consolidated revenue	$ 23,259,585	$ 15,961,831	$ 39,221,416
Segment profit or loss	$ 765,202	$ 717,072	$ 1,482,274
Unallocated profit or loss			26,245
Net profit before tax			$ 1,508,519
January 1 to September 30, 2024
Revenue from external customers	$ 26,314,525	$ 17,239,286	$ 43,553,811
Inter-segment revenue	134,555	95,871	230,426
Segment revenue	26,449,080	17,335,157	43,784,237
Internal write-offs	( 134,555 )	( 95,871 )	( 230,426 )
Consolidated revenue	$ 26,314,525	$ 17,239,286	$ 43,553,811
Segment profit or loss	$ 952,260	$ 856,109	$ 1,808,369
Unallocated profit or loss			38,084
Net profit before tax			$ 1,846,453

Segment profit or loss refers to the profit earned by each segment. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

(2) Total segment assets

	BMW and MINI	– PORSCHE	Total
September 30, 2025
Total assets	$12,105,778	$7,609,763	$19,715,541
Unallocated assets			2,094,251
Total consolidated assets			$21,809,792
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

(Continued on next page)

(Continued from previous page)

	BMW and MINI	-PORSCHE	Total
September 30, 2024
Total assets	$ 11,909,012	$ 6,767,482	$ 18,676,494
Unallocated assets			2,966,902
Total consolidated assets			$ 21,643,396

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

All assets, except for current and deferred tax assets, are allocated to reportable segments. Shared assets used by multiple reportable segments are allocated on the basis of the revenue generated by individual reportable segments. The aforementioned total segment assets 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 Nine Months Ended September 30, 2025

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

Purchaser (seller)	Transaction counterparty	Relationship	Transaction details				Situation and reason where the transaction term differs from ordinary transaction		Notes/accounts receivable (payable)		Note
			Purchases (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.	The entity is a joint venture	Purchases	$ 18,320,739	57%	Note 1	No comparable transactions with non-related parties	No comparable transactions with non-related parties	($ 329,530)	( 72%)	Prepayments to suppliers $ 2,025,215
Pan German Universal Motors Ltd.	Pan German Motors Ltd.	The entity is a joint venture	Sales	220,840	1%	O/A 60 days	No comparable transactions with non-related parties	No comparable transactions with non-related parties	75,928	20%	Contract liabilities 577
Pan German Universal Motors Ltd.	Union Capital Carleasing Ltd.	The entity is a joint venture	Purchases	188,378	1%	Immediate payment	Consistent with non-related parties	Consistent with non-related parties	-	-	Prepayments to suppliers 7,850
Pan German Universal Motors Ltd.	Union Capital Carleasing Ltd.	The entity is a joint venture	Sales	1,870,958	5%	Immediate payment	Consistent with non-related parties	Consistent with non-related parties	1,675	-
Pan German Universal Motors Ltd.	Yi Der International Ltd.	The entity is a joint venture	Sales	1,903,398	5%	Immediate payment	Consistent with non-related parties	Consistent with non-related parties	35	-	Contract liabilities 3,769
Jet-Li Motors Ltd.	Union Capital Carleasing Ltd.	The entity is a joint venture	Sales	288,819	11%	Immediate payment	Consistent with non-related parties	Consistent with non-related parties	-	-

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

Pan German Universal Motors Ltd. and Subsidiaries
Receivables from Related Parties Amounting to NT$100 Million or Paid-in Capital 20% or More
September 30, 2025

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

Company with accounts receivables due	Transaction counterparty	Relationship	Balance of accounts receivable from related party	Turnover ratio	Accounts receivable overdue from related party		Receivables from related party collected in the subsequent period	Provision for allowance for loss amount
					Amount	Handling method
Pan German Universal Motors Ltd.	Pan German Motors Ltd.	The entity is a joint venture	$ 518,314	Note 1	$ 255	—	$ 132,709	$ 383

Note 1: The receivables of Pan German Universal Motors Ltd. due from Pan German Motors Ltd. totaled NT$518,314 thousand, comprising accounts receivable of NT$75,928 thousand and other receivables of NT$442,386 thousand.

47 -

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

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

No. (Note 1)	Name of the counterparty	Transaction counterparty	Relationship with the counterparty (Note 2)	Transaction details			Ratio to total consolidated revenue or total assets (Note 3)
				Accounting item	Amount	Transaction terms
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Sales revenue	$ 64,527	Unique in nature, no comparable unrelated parties	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Purchases	36,657	Unique in nature, no comparable unrelated parties	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Accounts receivable – related parties	316	Immediate payment	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Notes receivable – related parties	4,320	Immediate payment	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Other receivables – related parties	34	O/A 60 days	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Accounts payable to related parties	62	Immediate payment	-
0	Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	(1)	Other payables – related parties	4	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 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.

48 -

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

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

Name of 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	Carrying amount
Pan German Universal Motors Ltd.	Jet-Li Motors Ltd.	Taiwan	Transactions of vehicles and components, as well as maintenance and repair service.	$ 393,338	$ 393,338	16,000,000	100%	$ 525,676	$ 119,187	$ 119,187

49 -

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PGUM Interim / Quarterly Report 2025

51992_rns_2026-05-15_40e9e32a-74f0-4bf5-87ca-82d4b63a45a9.pdf

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 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

IFRS 18 "Presentation and Disclosure in Financial Statements"

4. Summary of Significant Accounting Policies

10. Inventories

11. Subsidiaries

13. Lease Arrangements

(3) Other lease information

14. Short-term Borrowings

15. Bonds Payable

22. Income Tax

23. Earnings per Share

Shares

24. Capital Risk Management

25. Financial Instruments

Other price risk

Sensitivity analysis

B. Credit risk

C. Liquidity risk

(2) Operating revenue

(3) Purchases

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PGUM — Interim / Quarterly Report 2025

51992_rns_2026-05-15_40e9e32a-74f0-4bf5-87ca-82d4b63a45a9.pdf

Pan German Universal Motors Ltd. and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 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

IFRS 18 "Presentation and Disclosure in Financial Statements"

4. Summary of Significant Accounting Policies

10. Inventories

11. Subsidiaries

13. Lease Arrangements

(3) Other lease information

14. Short-term Borrowings

15. Bonds Payable

22. Income Tax

23. Earnings per Share

Shares

24. Capital Risk Management

25. Financial Instruments

Other price risk

Sensitivity analysis

B. Credit risk

C. Liquidity risk

(2) Operating revenue

(3) Purchases

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