Raydium - Audit Report / Information 2024

Stock Code:3592

Raydium Semiconductor Corporation

Parent-Company-Only Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2024 and 2023

Address: 2F, No. 23, Li-Hsin Rd., Hsinchu Science Park, Hsinchu City 300094, Taiwan Telephone: (03)666-1818

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

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Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Report
4. Balance Sheets
5. Statements of Comprehensive Income
6. Statements of Changes in Equity
7. Statements of Cash Flows
8. Notes to the Financial Statements
(1)
Company history
(2)
Date and Procedures of Authorization of Financial Statements for Issue
(3)
Application of Newly Issued or Revised Standards and Interpretations
(4)
Summary of material accounting policies
(5)
Significant Accounting Judgments, and Major Sources of Estimation
and Assumptions Uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Significant Contingencies and Unrecognized Commitments
(10) Significant disaster losses
(11) Subsequent events
(12) Others
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in Mainland China
(d) Information of major shareholders
(14) Segment information
9. List of major account titles Page

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Financial Statements (1) Company history (2) Date and Procedures of Authorization of Financial Statements for Issue (3) Application of Newly Issued or Revised Standards and Interpretations (4) Summary of material accounting policies (5) Significant Accounting Judgments, and Major Sources of Estimation and Assumptions Uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant Contingencies and Unrecognized Commitments (10) Significant disaster losses (11) Subsequent events (12) Others (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Information of major shareholders (14) Segment information 9. List of major account titles	Page
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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Raydium Semiconductor Corporation:

Opinion

We have audited the parent-company-only financial statements of Raydium Semiconductor Corporation (“the Company”), which comprise the parent-company-only balance sheets as of December 31, 2024 and 2023, the parent-company-only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent-company-only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent-company-only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

台北市Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)68F., TAIPEI 101 TOWER, No. 7, Sec. 5, KPMG 110615信義路5段7號68樓(台北101大樓) 電話傳真網址 Tel Fax Web + 886 2 8101 6666kpmg.com/tw+ 886 2 8101 6667

Basis for Opinion

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

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the parent-company-only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Account of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent-company-only financial statements of the current period. These matters were addressed in the context of our audit of parent-company-only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the these matters. Based on our judgment, the key audit matters that should be disclosed in this audit report are as follows:

1. Valuation of inventories

Please refer to note 4(7) for the accounting policy of inventory valuation, note 5 for the estimation and assumption uncertainty of the valuation of inventory, and note 6(4) for information on estimation of the valuation of inventory to the parent-company-only financial statements.

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

Description of key audit matter:

The Company may write down the cost of inventories to net realizable value due to normal wear and tear, obsolescence or no market value. The inventory valuation may result in material changes because of decline in demand and prices. Due to the introduction of new products in the market, the original outdated products no longer meet the market demand, resulting in the cost of inventory to exceed its net realizable value. Therefore, the valuation of inventory is one of our key audit matters.

How the matter was addressed in our audit:

The principal procedures include testing the inventory aging reports and analyzing the aging of inventories for each period; inspecting the production and sales meeting minutes to assess the destocking; assessing whether the valuation of inventories has been carried out in accordance with the established accounting policies; and performing retrospective testing on inventories to verify the appropriateness of the inventory provision.

Revenue recognition from contracts with customers

Please refer to note 4(14) “Revenue recognition” for the accounting policy and note 6(19) “Revenues from contracts with customers” for revenue recognition.

Description of key audit matter:

The Company mainly engages in the development, design and sale of display driver, touch control, and power management integrated circuit products. The recognition of operating revenue is determined according to the trade terms agreed with the customers. The Company recognizes revenue depending on the various sales terms in each individual contract with customers to ensure its performance obligation has been satisfied by transferring its control to its customer. It is necessary to determine the performance obligations and the time at which they are satisfied. Therefore, the appropriateness of recognising revenue in the correct accounting period is one of our key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included understanding and testing the Company's controls surrounding the revenue process and cash collection transaction process; analyzing the type of principal revenue and trading terms; selecting samples and inspecting contracts with customers or customers' orders to assess the adequacy of the timing on revenue recognition; and randomly selecting sales transactions incurred within a certain period before or after the balance sheet date by reviewing documents to ensure that revenue was recognized in the appropriate period.

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

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

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

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Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

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

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

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

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are An-Chih Cheng and Chien-Hui Lu.

KPMG

Taipei, Taiwan (Republic of China) February 25, 2025

Notes to Readers

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

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Raydium Semiconductor Corporation

Balance Sheets

December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents(note 6(1)) 1110 Financial assets at fair value through profit or loss`－`current(note 6(2)) 1120 Financial assets at fair value through other comprehensive income`－`current (note 6(2)) 1170 Accounts receivable, net (note 6(3)) 1180 Accounts receivable`－`related parties, net(notes 6(3) and 7) 130X Inventories (note 6(4)) 1476 Other financial assets`－`current(notes 6(1)`、`(3)`、`(9)`、`8 and 9) 1479 Other current assets (notes 6(10) and 7) Non-current assets: 1510 Financial assets at fair value through profit or loss`－`non-current(note 6(2)) 1517 Financial assets at fair value through other comprehensive income`－`non- current (note 6(2)) 1550 Investments accounted for using equity method (note 6(5)) 1600 Property, plant and equipment (notes 6(6) and 9) 1755 Right-of-use assets (note 6(7)) 1780 Intangible assets (notes 6(8) and 7) 1840 Deferred tax assets (note 6(16)) 1980 Other financial assets`－`non-current(notes 6(9) and 9) 1990 Other non-current assets (notes 6(10) and (14)) Total assets	December 31, 2024 Amount % $ 5,298,301 26 531,520 3 8,849 - 1,916,429 9 1,686,867 8 2,301,712 11 6,175,530 31 138,646 1 18,057,854 89 35,000 - 550,394 3 142,044 1 388,422 2 12,241 - 511,800 3 260,935 1 2,329 - 304,358 1 2,207,523 11 $ 20,265,377 100	December 31, 2023 Amount % 5,166,983 27 633,073 3 11,013 - 1,123,076 6 1,653,203 9 1,858,687 10 5,941,649 31 169,769 1 16,557,453 87 - - 423,377 2 40,683 - 470,174 3 12,792 - 376,453 2 235,509 1 162,140 1 652,299 4 2,373,427 13 18,930,880 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(11)) 2130 Contract liabilities`－`current(note 6(19)) 2170 Accounts payable 2201 Salaries and bonuses payable 2220 Other payables`－`related parties (note 7) 2230 Current income tax liabilities 2250 Provision-current (note 6(13)) 2300 Other current liabilities (notes 6(12)`、`(15)`、`7 and 9) Non-Current liabilities: 2527 Contract liabilities`－`non-current (note 6(19)) 2550 Provision`－`non-current (note 6(13)) 2570 Deferred tax liabilities (note 6(16)) 2580 Lease liabilities`－`non-current (note 6(12)) 2640 Net defined benefit liability`－`non-current (note 6(14)) 2645 Guarantee deposits received (notes 6(15) and 9) Total liabilities Equity(note 6(17)): 3110 Common stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity Total equity Total liabilities and equity	December 31, 2024 Amount % $ 130,868 1 296,774 2 3,056,962 15 2,561,172 13 2,776 - 247,404 1 113,557 1 1,030,283 5 7,439,796 38 - - 227,114 1 7,774 - 7,433 - - - 490,755 2 733,076 3 8,172,872 41 758,552 4 4,712,933 23 6,737,706 33 (116,686) (1) 12,092,505 59 $ 20,265,377 100	December 31, 2023
				Amount % 445,411 2 430,502 2 2,363,447 13 2,352,793 13 7,518 - 233,875 1 38,704 - 881,968 5 6,754,218 36 97,460 1 77,409 - 6,246 - 9,305 - 144 - 767,950 4 958,514 5 7,712,732 41 758,552 4 4,712,933 25 5,780,404 30 (33,741) - 11,218,148 59 18,930,880 100

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Raydium Semiconductor Corporation

Statements of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

			For the years ended	For the years ended	For the years ended	December 31,	December 31,
			2024			2023
			Amount	%		Amount	%
4000	Operating revenues(notes 6(19)`、`7 and 14)	$	22,357,561	100		17,604,607	100
5000	Operating costs (notes 6(4), (6), (13), (14), (21) and 12)		15,380,588	69		12,404,946	70
	Gross profit		6,976,973	31		5,199,661	30
	Operating expenses(notes 6(3), (6), (14), (21), 7 and 12):
6100	Selling expenses		564,343		3	413,020	3
6200	General and administrative expenses		527,647		2	397,528	2
6300	Research and development expenses		3,790,347	17		2,944,489	17
6450	Expected credit impairment losses		69,827	-		28,980	-
	Total operating expenses		4,952,164	22		3,784,017	22
	Operating income		2,024,809	9		1,415,644	8
	Non-operating income and expenses(notes 6(20) and 7):
7010	Other income		55,903	-		27,136	-
7020	Other gains and losses		120,711		1	4,300	-
7050	Finance costs		(14,291)	-		(4,654)	-
7070	Share of profit (loss) of subsidiaries accounted for using equity
	method (note 6(5))		98,853	-		(33,039)	-
7100	Interest income		138,993	1		137,354	1
	400,169			2		131,097	1
	Income before income tax		2,424,978	11		1,546,741	9
7950	Less: Income tax expenses (note 6(16))		325,989	2		103,950	1
	Net income		2,098,989	9		1,442,791	8
8300	Other comprehensive income (loss):
8310
	Items that will not be reclassified subsequently to profit or loss
8311	Remeasurements of defined benefit plans(note 6(14))		708	-		(26)	-
8316	Unrealized losses from investments in equity instruments measured
	at fair value through other comprehensive income(note 6(17))		(86,091)	-		(70,094)	-
8349	Less: Income tax related to items that will not be reclassified to profit
	or loss (note 6(16))		(11,744)	-		(19,086)	-
	Total item that will not be reclassified subsequently to profit
	or loss		(73,639)	-		(51,034)	-
8360	Items that may be reclassified subsequently to profit or loss
	(note 6(17))
8361	Exchange differences on translation of foreign operatings		2,508	-		(1,227)	-
8399	Less: Income tax related to items that may be reclassified to profit or
	loss (note 6(16))		502	-		(245)	-
	Total items that may be reclassified subsequently to profit or
	loss		2,006	-		(982)	-
8300	Other comprehensive loss, net of tax		(71,633)	-		(52,016)	-
8500	Total comprehensive income	$	2,027,356	9		1,390,775	8
	Earnings per share (New Taiwan Dollars)(note 6(18))
9750	Basic earnings per share	$		27.67			19.02
9850	Diluted earnings per share	$		27.25			18.78

See accompanying notes to parent-company-only financial statements.

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

Raydium Semiconductor Corporation Statements of Changes in Equity For the Years Ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

	Retained earnings	Retained earnings		Other equity
			Exchange differences on translation of foreign operations 508 - (982) (982) - - - (474) - 2,006 2,006 - - - - 1,532	Unrealized gains (losses) on financial assets at fair value through other comprehensive income 28,946 - (51,008) (51,008) - - (11,205) (33,267) - (74,347) (74,347) - - - (10,604) (118,218)
Legal reserve 1,460,337 - - - 386,272 - - 1,846,609 - - - 145,397 - - - 1,992,006	Special reserve	Unappropriated earnings 5,976,161 1,442,791 (26) 1,442,765 (386,272) (3,110,064) 11,205 3,933,795 2,098,989 708 2,099,697 (145,397) (33,741) (1,152,999) 10,604 4,711,959
	-
	- -
	-
	- - -
	-
	- -
	-
	- 33,741 - -
	33,741

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Raydium Semiconductor Corporation Statements of Cash Flows For the Years Ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit impairment loss Net profit on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of (profit) loss of subsidiaries accounted for using equity method Gain on disposal of property, plant and equipment Provision for inventory obsolescence and devaluation loss (reversal gain) Other non-cash-related loss Income and expense adjustments Changes in operating assets and liabilities: Financial assets at fair value through profit or loss Accounts receivable and other receivables (including related parties) Inventories Other financial assets Other operation assets Contract liabilities Accounts payable and other payables (including related parties) Other operating liabilities Total changes in operating assets and liabilities Total adjustments Cash flow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash from operating activities Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Refund of investment cost of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in intangible assets (Increase) decrease in other non-current assets Increase in other financial assets Net cash used in investing activities Cash flows from financing activities: Increase (decrease) in short term borrowings Decrease in guarantee deposits received Repayments of the principal portion of lease liabilities Cash dividends paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period		For the years ended December 31, 2024 2023 2,424,978 1,546,741 182,311 203,531 198,969 163,755 69,827 28,980 (7,447) (833) 14,291 4,654 (138,993) (137,354) (813) (12,176) (98,853) 33,039 (11,092) (680) (120,997) 48,046 402,766 130,075 489,969 461,037 109,000 (275,450) (896,844) 68,176 (322,028) 1,786,517 35,095 (992,031) (3,839) (17,279) (231,188) (152,794) 834,344 954,143 586,395 (1,521,376) 110,935 (150,094) 600,904 310,943 3,025,882 1,857,684 135,367 135,775 813 12,176 (14,533) (4,177) (325,116) (295,657) 2,822,413 1,705,801 (256,160) - 32,204 31,205 13,012 - (35,000) - - (91,200) (108,791) (349,206) 11,545 762 (347,760) (187,117) (36,083) 75,060 (206,261) (1,421,427) (933,294) (1,941,923) (322,363) 452,183 (277,450) (304,872) (4,989) (3,663) (1,152,999) (3,110,064) (1,757,801) (2,966,416) 131,318 (3,202,538) 5,166,983 8,369,521 $ 5,298,301 5,166,983
		2024 2,424,978 182,311 198,969 69,827 (7,447) 14,291 (138,993) (813) (98,853) (11,092) (120,997) 402,766 489,969 109,000 (896,844) (322,028) 35,095 (3,839) (231,188) 834,344 586,395 110,935 600,904 3,025,882 135,367 813 (14,533) (325,116) 2,822,413 (256,160) 32,204 13,012 (35,000) - (108,791) 11,545 (347,760) (36,083) (206,261) (933,294) (322,363) (277,450) (4,989) (1,152,999) (1,757,801) 131,318 5,166,983 $ 5,298,301
	$

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Raydium Semiconductor Corporation

Notes to the Financial Statements

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars, unless otherwise noted.)

1. Company History

Raydium Semiconductor Corporation (the “ Company” ) was organized and approved under the ROC Company Act on October 23, 2003.The Company was formally relocated to Hsinchu Science and Industry Park on January 29, 2007 after being approved by Hsinchu Science Park Bureau on December 12, 2006. Its current registered address is 2F, No.23, Li Hsin Rd., Hsinchu Science Park, Hsinchu City 300, Taiwan, R.O.C. The Company merged with Dazzo Technology Corporation (hereinafter referred to as Dazzo) on April 1, 2019 (the merger date). Thereafter, the Company became the sole surviving entity. The principal activities of the Company are the development, design and sale of display driver, sequential control and power management integrated circuit products.

The Company's shares were listed on Taiwan Stock Exchange on January 7, 2022.

2. Date and Procedures of Authorization of Financial Statements for Issue:

The parent-company-only financial statements were authorized for issue by the Board of Directors on February 25, 2025.

3. Application of Newly Issued or Revised Standards and Interpretations:

(1) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its parent-company-only financial statements, from January 1, 2024:

●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
●Amendments to IAS 1 “Non-current Liabilities with Covenants”
●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
(2) The impact of IFRSs endorsed by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its parent-companyonly financial statements:

●Amendments to IAS21 “Lack of Exchangeability”

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Raydium Semiconductor Corporation Notes to the Financial Statements

(3) The impact of IFRSs issued by IASB but not yet endorsed by the FSC

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

Standards or
Interpretations
IFRS 18 “Presentation and
Disclosure in Financial
Statements”

Content of amendment
Effective date per
IASB
The
new
standard
introduces
three
categories of income and expenses, two
income statement subtotals and one single
note
on
management
performance
measures.
The
three
amendments,
combined with enhanced guidance on how
to disaggregate information, set the stage
for better and more consistent information
for users, and will affect all the entities.
January 1, 2027

●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.
●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

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Raydium Semiconductor Corporation Notes to the Financial Statements

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

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
●Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
●Annual Improvements to IFRS Accounting Standards—Volume 11
●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

4. Summary of material accounting policies:

The material accounting policies presented in the parent-company-only financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the parent-company-only financial statements.

(1) Statement of compliance

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

(2) Basis of preparation
A. Basis of measurement

The parent-company-only financial statements have been prepared on the historical cost basis, except for the following material items in the balance sheets:

(a) Financial assets at fair value through profit or loss (FVTPL) are measured at fair value;
(b) Financial assets at fair value through other comprehensive income (FVOCI) are measured at fair value; and,
(c) The net defined benefit liabilities are measured as the fair value of the plan assets, less the present value of the defined benefit obligation.

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Raydium Semiconductor Corporation Notes to the Financial Statements

B. Functional and presentation currency

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

(3) Foreign currencies

A. Foreign currency transactions

Transaction in foreign currency are translated into the functional currencies at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, (hereinafter referred to as the reporting date), monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date.

Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date when fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for the foreign currency items of financial instruments that applied the accounting policy of IFRS No. 9 "Financial Instruments"

When the profit or loss of non-monetary item is recognized in other comprehensive income, then any change in the exchange foreign currency of the above items is recognized in other comprehensive income. When the profit or loss of non monetary item is recognized in profit or loss, then any change in the exchange foreign currency of the above items is recognized in profit or loss.

B. Foreign operations

The assets and liabilities of foreign operations are translated to NTD using the exchange rates at the reporting date. The income and expenses are translated to NTD at the average rate for the period. Foreign currency differences are recognized in other comprehensive income.

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

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

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

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Raydium Semiconductor Corporation Notes to the Financial Statements

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

A. It is expected to be settled in the normal operating cycle;
B. It is held primarily for the purpose of trading;
C. It is due to be settled within twelve months after the reporting period; or
D. The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.
(5) Cash and cash equivalents

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

(6) Financial instruments
A. Financial assets

The Company classifies financial assets into the following categories: amortized cost, FVOCI and FVTPL.

The Company shall reclassify all affected financial assets only when it changes its business model for managing its financial assets.

(a) Financial assets at amortized cost

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

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

Such financial assets are initially recognized at fair value, plus any directly attributable transaction costs. Subsequently, these assets are measured at amortized cost using the effective interest method, less any impairment losses. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. A regular way purchase or sale of financial assets is recognized and derecognized, as applicable, using trade date accounting.

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Raydium Semiconductor Corporation Notes to the Financial Statements

(b) Financial assets at FVOCI

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

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

Some accounts receivable are held within a business model whose objective is achieved by both collecting contractual cash flows and selling by the Company, therefore, those receivables are measured at FVOCI.

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

A financial asset measured at FVOCI is initially recognized at fair value, plus any directly attributable transaction costs. These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses, impairment losses deriving from debt investments, and dividends income of equity investment (unless the dividend clearly represent a recovery part of the cost of investment) are recognized in profit or loss. Other net gains and losses of financial assets are recognized in other comprehensive income and accumulated in unrealized gains or losses of financial assets measured at FVOCI under equity. On derecognition, gains and losses accumulated in other comprehensive income of debt investments are reclassified to profit or loss. However, gains and losses accumulated in other comprehensive income of equity investments are reclassified to retain earnings instead of profit or loss.

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

(c) Financial assets at FVTPL

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

Such financial assets are initially recognized at fair value, and attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, they are measured at fair value and changes therein are recognized in profit or loss.

(d) Impairment of financial assets

The Company recognizes loss allowances for expected credit loss (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, accounts receivable, and other financial assets), and debt investments measured at FVOCI.

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Raydium Semiconductor Corporation Notes to the Financial Statements

The Company measures the loss allowance at an amount equal to lifetime ECL, except for the financial instrument that is determined to have low credit risk (the risk of default in financial instrument duration) at the reporting date and the credit risk thereof has not increased significantly since initial recognition, which is measured at an amount equal to the 12-month expected credit losses. Loss allowance for accounts receivable are always measured at an amount equal to lifetime ECL.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

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

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

In the circumstance that a financial asset is past due or the borrower is unlikely to pay its credit obligations to the Company in full, the Company considers the credit risk on that financial asset has significantly increased, or further, to be in default.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset. The Company recognizes the amount of expected credit losses (or reversal) in profit or loss, as an impairment gain or loss.

The gross carrying amount of a financial asset is written off either partially or in full to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

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Raydium Semiconductor Corporation Notes to the Financial Statements

(e) Derecognition of financial assets

The Company derecognizes a financial assets when the contractual rights to the cash flows from the financial asset expire, or when the Company transfers substantially all the risks and rewards of ownership of the financial assets to another entity.

B. Financial liabilities and equity instruments

(a) Classification of debt or equity

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

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

(b) Financial liabilities

Financial liabilities that are not classified as held-for-trading or designated as at FVTPL, which comprise loans borrowings and accounts payable, are measured at fair value, plus any directly attributable transaction cost at the time of initial recognition. Subsequent to initial recognition, they are measured at amortized cost calculated using the effective interest method.

(c) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid is recognized in profit or loss.

(d) Offsetting of financial assets and liabilities

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

(7) Inventories

Inventories are measured at the lower of cost or net realizable value. The cost of inventories is based on the weighted average method, and includes expenditures and other costs incurred in bringing them to their existing location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

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Raydium Semiconductor Corporation Notes to the Financial Statements

(8) Investment in subsidiaries

The Company’s subsidiaries are accounted for using the equity method when preparing their parentcompany-only financial statements. Under the equity method, profit, other comprehensive income and equity in the parent-company-only financial statements are equivalent to those of the profit, other comprehensive income and equity which are contributed to the owners of the parent in the consolidated financial statements.

The changes in the parent’ s interest in its subsidiaries that do not result in a loss of control are accounted as equity transactions.

(9) Property, plant and equipment
A. Recognition and measurement

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

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

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

B. Subsequent expenditure

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

C. Depreciation

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

The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows:

(a) Research equipment: 2~4 years
(b) Transportation equipment: 5~6 years
(c) Office equipment: 3~5 years
(d) Leasehold improvements: 2 years

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

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Raydium Semiconductor Corporation Notes to the Financial Statements

(10) Leases

A. Identifying a lease

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract is a lease, the Company assesses whether:

(a) the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and
(b) the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
(c) the Company has the right to direct the use of an asset if either:
The Company has the right to direct use of the identified asset when it has the decision-making rights that are most relevant to the changes on how and for what purpose the asset is used throughout the period.
The relevant decisions about how and for what purpose the asset is used are predetermined and:
- － the Company has the right to operate the asset without the supplier having the right to change those operating instructions; or
- － the Company designs the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and nonlease components as a single lease component.

B. As a lessee

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

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

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Raydium Semiconductor Corporation Notes to the Financial Statements

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

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

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

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

(a) there is a change in future lease payments arising from the change in an index or rate; or
(b) there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or
(c) there is a change in the assessment regarding the purchase option; or
(d) there is a change in assessment on whether the Company will exercise an extension or termination option; or
(e) there is modifications of the subject, scope, or other terms of the lease.

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

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

The Company presents its right-of-use assets that do not meet the definition of investment properties and lease liabilities as a separate line item respectively in the balance sheets.

The Company has elected not to recognize the right-of-use assets and lease liabilities for its offices, employee dormitory, telecommunication equipment and parking lot, which qualify as short-term leases, as well as its other equipment, which qualify as short-term leases and lowvalue assets leases. The relevant lease payments are recognized in expense on a straight line basis during the lease period.

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Raydium Semiconductor Corporation Notes to the Financial Statements

(11) Intangible assets
A. Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to, and has sufficient resources to, complete the development, and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible assets, including patents, that are acquired by the Company and have finite useful lives are measured at cost, less accumulated amortization and any accumulated impairment losses.

B. Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognized in profit or loss as incurred.

C. Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for the current and comparative periods are as follows:

(a) Patents and technology: 2~5 years
(b) Computer softwaret: 0.5~5 years

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

(12) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories, and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated using impairment test. Goodwill is tested annually for impairment.

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Raydium Semiconductor Corporation Notes to the Financial Statements

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or cash generating units (CGUs). Goodwill arising from a business combination is allocated to cashgenerating units (“CGUs”) or groups of CGUs that are expected to benefit from the synergies of the combination.

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

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(13) Provisions

A provision is recognized when the Company has a present obligation arising from a past event, it is probable that the Company will be required to make an outflow of resources embodying economic benefits to settle the obligation, and the amount of the obligation can be estimated reliably. When the time value of currency is significant, the provision for liabilities is discounted at current pre-tax rates that adequately reflect the specific risks of the liabilities. The amount of the liabilities increased by time, is recognized as the borrowing cost when the liabilities are discounted.

A provision for warranties is measured with weighting factors based on historical experience of warranty claims rate and other possible outcomes against their associated probabilities.

(14) Revenue from contracts with customers

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

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Raydium Semiconductor Corporation Notes to the Financial Statements

A. Sale of goods

Revenue is recognized when the control over a product has been transferred to the customer. Being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer, as well as when the product has been accepted by the customer according to the terms of sales contract, or when the Company has objective evidence that all criteria for acceptance have been satisfied.

When the Company receives an advance payment from a customer, the advance amount of such future performance obligation shall be recognized as a contractual obligation, which shall be derecognized when the performance obligation is satisfied and then recognized as revenue.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

Due to the application of IFRS 15, the sale return and allowance based on historical experience and other known causes were reclassified to provision of liabilities.

B. Financing components

The Company expects that the length of time when the Company transfers the goods or services to the customer and when the customer pays for those goods or services will be less than one year. Therefore, the amount of consideration is not adjusted for the time value of money.

(15) Employee benefits
A. Defined contribution plans

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

B. Defined benefit plans

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

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

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Raydium Semiconductor Corporation Notes to the Financial Statements

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

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

C. Short-term employee benefits

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

(16) Share-based payment transaction

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amounts recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized shall be based on the number of awards that meet the related services and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant-date fair value of the sharebased payment is measured to reflect such conditions, and there is no true-up for differences between expected and actual outcomes.

Grant date of a share-based payment award is the date at which the Company and employees reach a consensus in the subscription price and number of shares.

(17) Income taxes

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

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

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Raydium Semiconductor Corporation Notes to the Financial Statements

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax basis at the reporting date.

Deferred taxes are not recognized for the following exceptions:

A. temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;
B. temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
C. taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect the uncertainty related to income taxes, if any.

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

A. the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and
B. the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
(a) the same taxable entity; or
(b) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

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

(18) Earnings per share

The Company discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. The calculation of basic earnings per share is based on the profit attributable to the ordinary shareholders of the Company, divided by the weighted-average number of current ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potential dilutive ordinary shares, such as employee compensation not yet approved by the Board of Directors and can be issued by stock and unvested restricted employee stock awards.

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Raydium Semiconductor Corporation Notes to the Financial Statements

(19) Operating segments information

The Company has disclosed operating segment information in consolidated financial statements. Hence, this information is not required to be disclosed in these parent-company-only financial statements.

5. Significant Accounting Judgments, and Major Sources of Estimation and Assumptions Uncertainty:

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

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

Information about critical judgements, estimates and assumptions in applying accounting policies that have the significant effect on the amounts recognized in the parent-company-only financial statements is as follows:

Valuation of inventories

Inventories are stated at the lower of cost or net realizable value, the Company uses judgements and estimates the net realizable value of inventories for obsolescence and unmarketable items at the reporting period. It also writes down the cost of inventories to net realizable value. This inventory valuation may result from material changes in product demand due to the introduction of new products in the market, obsolescence or non-conformity of the original products, which may result in lower demand and prices, resulting in the risk that the cost of inventories may exceed its net realizable value. Please refer note 6(4) for valuation of Inventory.

The Company’s accounting policies and disclosures include the fair value measurement for financial and non-financial assets and liabilities. The financial management center of the Company is responsible for performing fair value verification and bringing the evaluation results comparable to market price based on independent, reliable, and representative executable price information. The Company also periodically assesses the evaluation model, performs retrospective tests, and updates inputs together with any other necessary fair value adjustment for the evaluation model in order to ensure the reasonableness of the results of the valuation.

The Company evaluates the assets and liabilities using the observable market inputs. The hierarchy of the fair value depends on the valuation techniques used and is categories as follows:

Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

For any transfer within the fair value hierarchy, the Company recognizes the transfer on the reporting date. For the assumption used in fair value measurement, please refer to note 6(22).

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Raydium Semiconductor Corporation Notes to the Financial Statements

6. Explanation of significant accounts

(1) Cash and cash equivalents

Demand deposits Time deposits	December 31, 2024 $ 1,199,251 4,099,050 $ 5,298,301	December 31, 2023
		1,172,933 3,994,050
		5,166,983

Please refer to note 6(22) for the credit risk, interest rate risk and sensitivity analysis of the financial assets of the Company.

As of December 31, 2024 and 2023, the time deposits with original maturities of more than three months amounted to $3,750,000 thousand and $3,500,000 thousand, respectively, which were classified as other financial assets-current; please refer to note 6(9).

(2) Financial assets at fair value
－
A. Financial assets at fair value through-profit or loss current

December 31, 2024 Financial assets at fair value through profit or loss, mandatorily measured at fair value Beneficiary certificate $ 531,520 Financial assets at fair value through profit or loss`－`non-current December 31, 2024 Financial assets at fair value through profit or loss, mandatorily measured at fair value Venture capital funds $ 35,000	December 31, 2023
	633,073
	December 31, 2023
	-

－
B. Financial assets at fair value through profit or loss non-current
－
C. Financial assets at fair value through other comprehensive income current

Listed stocks	December 31, 2024 $ 8,849	December 31, 2023
		11,013

－
D. Financial assets at fair value through other comprehensive income non-current

Listed stocks Unlisted stocks	December 31, 2024 $ 265,819 284,575 $ 550,394	December 31, 2023 308,860 114,517 423,377

~25~

Raydium Semiconductor Corporation Notes to the Financial Statements

These investments in equity instruments are not held for trading, and therefore, are accounted for as FVOCI.

The Company sold part of its holdings measured at fair value through other comprehensive income in 2024, with the disposal price of $32,204 thousand, resulting in the realized gain of $10,604 thousand to be reclassified from other equity to retained earnings.

For the disclosure of market risk, please refer to Note 6(22).

The financial assets mentioned above were not pledged as collateral.

(3) Accounts receivable, net (including related parties)

Accounts receivable—measured at amortized cost Accounts receivable measured at fair value through other comprehensive income Less: loss allowance	December 31, 2024 $ 3,637,255 96,563 (130,522) $ 3,603,296	December 31, 2023 2,717,469 119,505 (60,695) 2,776,279

The Company has assessed a portion of its trade receivables that was held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; therefore, such trade receivables were measured at fair value through other comprehensive income.

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

The accounts receivable from related parties having significant impact over the Company and other individuals amounted to $1,686,867 thousand and $1,653,203 thousand as of December 31, 2024 and 2023, respectively. The days past due is less than 100 days, so there is no expected credit loss for the duration of the related party's accounts receivable.

The loss allowance provision of customers with relatively low credit risk was determined as follows:

December 31, 2024	December 31, 2024
Gross carrying amount of accounts receivable $ 646,468 12,718 $ 659,186	Weighted- average loss rate 0% 0%	Loss allowance for life time expected credit losses
		- -
		-

~26~

Raydium Semiconductor Corporation Notes to the Financial Statements

December 31, 2023	December 31, 2023
Gross carrying amount of accounts receivable $ 523,664 1,629 3,562 $ 528,855	Weighted- average loss rate 0% 0% 0%	Loss allowance for life time expected credit losses
		- - -
		-

The loss allowance provision of customers with relatively high credit risk was determined as follows:

December 31, 2024	December 31, 2024
Gross carrying amount of accounts receivable Weighted- average loss rate $ 1,264,832 7.67% 105,522 23.00% 11,234 43.20% 3,784 53.91% 2,393 100% $ 1,387,765 December 31, 2023		Loss allowance for life time expected credit losses
		96,966 24,270 4,853 2,040 2,393
		130,522

	Weighted- average loss rate 7.41% 25.80%	Loss allowance for life time expected credit losses
		43,649 17,046
		60,695

The movement in the allowance for accounts receivables was as follows:

Beginning balance Impairment loss recognized Ending balance	For the years ended December 31,	For the years ended December 31,
	2024 $ 60,695 69,827 $ 130,522	2023
		31,715 28,980
		60,695

~27~

Raydium Semiconductor Corporation Notes to the Financial Statements

The Company entered into an agreement with banks to factor certain of its accounts receivable. According to the agreement, within the factoring line, the Company does not have to ensure the ability of debtors to pay when transferring the rights and obligations. As of December 31, 2024 and 2023, the Company reclassified the trade receivables that met the derecognition terms to other receivables (recorded in other financial asset-current) as follows:

(In Thousands of New Taiwan Dollars)

	December 31, 2024	December 31, 2024
Buyer Factoring quota Taipei Fubon Bank USD 151,500	Derecognition amount Advance payment amount USD 63,844 - December 31, 2023		Service fees 0.22%	Transfer terms Guaranteed promissory notes Notes 1 to 3 None
Buyer Factoring quota Taipei Fubon Bank USD 145,000	Derecognition amount USD 69,142	Advance payment amount -	Service fees 0.23%	Transfer terms Guaranteed promissory notes Notes 1 to 3 None

Note 1: The above-mentioned amounts have been reclassified to other receivables. The terms of the transaction relating to factoring are based on the factoring consent for buyer. Such transaction should be factoring without recourse.
Note 2: Within the factoring quota, if the original debtor is unable to pay or may be unable to pay due to financial difficulties, the risk of non-payment will be borne by the purchasing agency, not the Company. The original debtor’s credit risk will be borne by the purchasing agency and the credit risk described above is the uncollectable debt risk due to default by the original debtor without reasonable cause.
Note 3: The Company informed the original debtor pursuant to account receivables to make payment directly to the Company’s restricted account with the purchasing bank.

As of December 31, 2024 and 2023, total outstanding receivables after the above transactions, net of fees charged by purchasing bank, of $2,088,796 thousand and $2,123,891 thousand, respectively, were recognized as other current financial assets; please refer to note 6(9).

As of December 31, 2024 and 2023, the Company’s unused factoring quota amounted to $2,867,829 thousand and $2,330,219 thousand, respectively.

(4) Inventories

Inventories
Work in progress Finished goods	December 31, 2024 $ 1,824,701 477,011 $ 2,301,712	December 31, 2023
		1,439,802 418,885
		1,858,687

~28~

Raydium Semiconductor Corporation Notes to the Financial Statements

Cost of goods sold Provision for inventory obsolescence (reversal gain)	For the years ended December 31,	For the years ended December 31,
	2024 $ 15,501,585 (120,997) $ 15,380,588	2023 12,356,900 48,046 12,404,946

As of December 31, 2024 and 2023, the Company’s inventories were not pledged as collateral.

(5) Investments accounted for using equity method

The Company’s investment in equity method at the reporting date was as follow:

Subsidiaries The Company’s share of the profit (loss) of subsidiaries	December 31, 2024 December 31, 2023 $ 142,044 40,683 For the years ended December 31, 2024 2023 $ 98,853 (33,039)
	2024 $ 98,853

As of December 31, 2024 and 2023, the Company’ s investments in equity accounted were not pledged as collateral.

(6) Property, plant and equipment

The cost and accumulated depreciation of the property, plant and equipment for the years ended December 31, 2024 and 2023 were as follows:

							Equipment
		Research	Transportation	Office	Leasehold	Construction	under
		equipment	equipment	equipment	improvements	in progress	inspection	Total
Cost:
Balance as of January 1, 2024	$	970,452	9,938	173,959	47,977	228,429	8,089	1,438,844
Additions		20,326	-	19,634	7,224	-	48,582	95,766
Disposals		(30,016)	(4,437)	-	-	-	-	(34,453)
Reclassification		23,827	9,290	20,939	190	-	(54,246)	-
Balance as of December 31, 2024	$	984,589	14,791	214,532	55,391	228,429	2,425	1,500,157
Balance as of January 1, 2023	$	923,625	11,410	127,206	29,287	-	9,101	1,100,629
Additions		23,472	-	14,038	7,666	228,429	68,351	341,956
Disposals		(1,850)	(1,472)	(210)	(209)	-	-	(3,741)
Reclassification		25,205	-	32,925	11,233	-	(69,363)	-
Balance as of December 31, 2023	$	970,452	9,938	173,959	47,977	228,429	8,089	1,438,844
Accumulated depreciation:
Balance as of January 1, 2024	$	815,951	5,598	114,616	32,505	-	-	968,670
Depreciation		127,687	2,656	32,789	13,933	-	-	177,065
Disposals		(30,016)	(3,984)	-	-	-	-	(34,000)
Balance as of December 31, 2024	$	913,622	4,270	147,405	46,438	-	-	1,111,735
Balance as of January 1, 2023	$	654,106	5,209	89,719	23,601	-	-	772,635
Depreciation		163,695	1,779	25,107	9,113	-	-	199,694
Disposals		(1,850)	(1,390)	(210)	(209)	-	-	(3,659)
Balance as of December 31, 2023	$	815,951	5,598	114,616	32,505	-	-	968,670

~29~

Raydium Semiconductor Corporation Notes to the Financial Statements

Office equipment	Leasehold improvements	Total
67,127	8,953 15,472 5,686	388,422
59,343		470,174
37,487		327,994

As of December 31, 2024 and 2023, none of the Company’s property, plant and equipment were pledged as collateral.

(7) Right-of-use assets

The Company leases buildings. Information about leases for which the Company as a lessee were presented below:

Cost: Balance as of January 1, 2024 Additions Balance as of December 31, 2024 Balance as of December 31, 2023 (Balance as of January 1, 2023) Accumulated depreciation: Balance as of January 1, 2024 Depreciation Balance as of December 31, 2024 Balance as of January 1, 2023 Depreciation Balance as of December 31, 2023 Carrying amounts: Balance as of December 31, 2024 Balance as of December 31, 2023 Balance as of January 1, 2023	Buildings
	$ 19,187 4,695 $ 23,882 $ 19,187 $ 6,395 5,246 $ 11,641 $ 2,558 3,837 $ 6,395 $ 12,241 $ 12,792 $ 16,629

Cost:
Balance as of January 1, 2024
Additions
Balance as of December 31, 2024
Balance as of December 31, 2023 (Balance as of January 1, 2023)
Accumulated depreciation:
Balance as of January 1, 2024
Depreciation
Balance as of December 31, 2024
Balance as of January 1, 2023
Depreciation
Balance as of December 31, 2023
Carrying amounts:
Balance as of December 31, 2024
Balance as of December 31, 2023
Balance as of January 1, 2023

Buildings

$ 19,187
4,695
$
23,882
$
19,187
$ 6,395
5,246
$
11,641
$ 2,558
3,837
$
6,395
$
12,241
$
12,792
$
16,629

(8) Intangible assets

The cost and accumulated amortization of the intangible assets of the Company for the years ended December 31, 2024 and 2023 were as follows:

Cost: Balance as of January 1, 2024 Additions Write-off Balance as of December 31, 2024	Goodwill $ 237,800 - - $ 237,800	Patents and technology 106,973 - - 106,973	Computer software 431,974 334,316 (222,244) 544,046	Total 776,747 334,316 (222,244) 888,819

~30~

Raydium Semiconductor Corporation Notes to the Financial Statements

Balance as of January 1, 2023 $ Additions Write-off Balance as of December 31, 2023 $ Accumulated amortization: Balance as of January 1, 2024 $ Amortization Write-off Balance as of December 31, 2024 $ Balance as of January 1, 2023 $ Amortization Write-off Balance as of December 31, 2023 $ Carrying amounts: Balance as of December 31, 2024 $ Balance as of December 31, 2023 $ Balance as of January 1, 2023 $	Goodwill		Patents and technology		Software costs 309,894 197,019 (74,939) 431,974 293,321 198,969 (222,244) 270,046 209,126 159,134 (74,939) 293,321 274,000 138,653 100,768	Total 654,667 197,019 (74,939) 776,747 400,294 198,969 (222,244) 377,019 311,478 163,755 (74,939) 400,294 511,800 376,453 343,189
	237,800 - - 237,800 - - - - - - - - 237,800 237,800 237,800		106,973 - - 106,973 106,973 - - 106,973 102,352 4,621 - 106,973 - - 4,621

A. Amortization

The amortization of intangible assets for the years ended December 31, 2024 and 2023 were included in the statements of comprehensive income:

Operating costs Operating expenses	For the years ended December 31,	For the years ended December 31,
	2024 $ 215 198,754 $ 198,969	2023
		225 163,530
		163,755

As of December 31, 2024 and 2023, the Company’ s intangible assets were not pledged as collateral.

B. Impairment test on goodwill

The Company conducts impairment tests on goodwill. As of December 31, 2024 and 2023, it was determined that the recoverable amount of the cash-generating unit to be greater than its carrying amount based on their value in use; hence, no impairment loss were recognized.

~31~

Raydium Semiconductor Corporation Notes to the Financial Statements

The key assumptions used in the estimation of value in use were as follows:

Discount Rate Revenue growth rate Sustainable growth rate	December 31, 2024 December 31, 2023 8% 12% 3%~5% 5%~14% 2% 3%

The discount rate was based on the industry-weighted average cost of capital and adjusted for a risk premium to reflect both the increased risk of generally investing in equities and the systemic risk of the specific cash-generating unit.

Revenue growth rate was projected by taking into account the average growth levels experienced over the past few years and by projecting sales growth over the next five years.

The cash flow projection was based on the five-year financial budget as assessed by management, and for cash flows projections over five years, it was extrapolated in reference to the economic growth rate where the unit operates.

When the recoverable amount of a cash generating unit is greater than the carrying amount, the management identifies the discount rate and the sustainable growth rate as key assumptions. The reasonable likelihood of a change in the above two key assumptions would expose the carrying amount to the risk of exceeding its recoverable amount. However, the management analyzed that the above key assumptions would not have resulted in a loss of impairment if they are at a negative status of 0.5%.

－ (9) Other financial assets current and non-current

Other financial assets`－`current and non-current
Accounts receivable factoring Restricted time deposits Guarantee deposits for product capacity and others Time deposits with original maturities of more than three months Corporate bonds Others Other financial assets`－`current Other financial assets`－`non-current	December 31, 2024 $ 2,088,796 254,588 66,275 3,750,000 9,894 8,306 $ 6,177,859 $ 6,175,530 2,329 $ 6,177,859	December 31, 2023
		2,123,891 254,516 220,682 3,500,000 - 4,700
		6,103,789
		5,941,649 162,140
		6,103,789

The Company entered into production capacity guarantee contracts with several suppliers and paid the agreed deposits. Considering future market demand and the corresponding utilization of production capacity, the Company recognized the associated losses, which are recorded under operating costs.

~32~

Raydium Semiconductor Corporation Notes to the Financial Statements

(10) Other current and non-current assets

Prepayments to suppliers Sales tax receivable and overpaid VAT Prepayments for mask and mold Net defined benefit asset Others Other current assets Other non-current assets	December 31, 2024 $ - 105,602 303,793 564 33,045 $ 443,004 $ 138,646 304,358 $ 443,004	December 31, 2023
		419,550 114,883 256,630 - 31,005
		822,068
		169,769 652,299
		822,068

The Company entered into production capacity guarantee contracts with several suppliers and made the agreed prepayment. Considering future market demand and the corresponding utilization of production capacity, the Company terminated the long-term supply agreements with suppliers and recognized the associated losses, which are recorded under operating costs.

(11) Short-term borrowings

Unsecured bank loans Unused credit lines Range of interest rates	December 31, 2024 $ 130,868 $ 1,769,132 5.11%	December 31, 2023
		445,411
		1,154,589
		5.98%~6.45%

(12) Lease liabilities

The carrying amounts of lease liabilities were as follows:

Current (recorded under other current liabilities) Non-current	December 31, 2024 $ 5,395 $ 7,433	December 31, 2023
		3,817
		9,305

For the liquidity risk analysis, please refer to note 6(22) Financial Instruments.

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Expenses relating to short-term leases	For the years ended December 31,	For the years ended December 31,
	2024 $ 328 $ 37,659	2023
		302
		34,123

~33~

Raydium Semiconductor Corporation Notes to the Financial Statements

The amounts recognized in the statement of cash flows were as follows:

Total cash outflow for leases Buildings leases	For the years ended December 31,	For the years ended December 31,
	2024 $ 42,976	2023
		38,088

The Company leases buildings and improvements for its office, with lease terms that typically run 3 to 5 years, and some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

The Company has elected not to recognize the right-of-use assets and lease liabilities for its offices, which qualify as short-term leases and low-value asset leases.

(13) Provisions

Balance as of January 1, 2024 Provisions made during the year Balance as of December 31, 2024 Provisions`－`current Provisions`－`non-current Balance as of January 1, 2023 Provisions reserved during the year Balance as of December 31, 2023 Provisions`－`current Provisions`－`non-current	Warranties $ 116,113 224,558 $ 340,671 $ 113,557 227,114 $ 340,671 $ 166,588 (50,475) $ 116,113 $ 38,704 77,409 $ 116,113

The provision for warranties is estimated based on historical warranty data associated with similar products and services. The Company expects to settle majority of its provision within three years from the date of the sale of the product.

(14) Employee benefits
A. Defined benefit plans

The present value of the defined benefit obligation and the fair value adjustments of the plan assets for the Company were as follows:

Present value of the defined benefit obligations Fair value of plan assets Net defined benefit (assets) liabilities	December 31, 2024 $ 1,604 (2,168) $ (564)	December 31, 2023 2,113 (1,969) 144

~34~

Raydium Semiconductor Corporation Notes to the Financial Statements

The Company makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pension for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average salary for the six months prior to retirement.

(a) Composition of plan assets

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

The Company's Bank of Taiwan labor pension reserve account balance amounted to $2,168 thousand as of December 31, 2024. For information on the utilization of the labor pension fund assets, including the asset allocation and yield rate of the fund, please refer to the website of the Bureau of Labor Funds.

(b) Movements in present value of defined benefit obligations

The movements in present value of the defined benefit obligations of the Company for the years ended December 31, 2024 and 2023 were as follows:

Defined benefit obligations as of January 1 Interest cost Remeasurement of the net defined benefit liabilities `－`Actuarial loss (gain) arising from changes in financial assumptions Defined benefit obligations as of December 31	For the years ended December 31,	For the years ended December 31,
	2024 $ 2,113 28 (537) $ 1,604	2023
		2,052 34 27
		2,113

The movements in the fair value of the defined benefit plan assets of the Company for the years ended December 31, 2024 and 2023 were as follows:

Fair value of plan assets as of January 1 Interest income Contributions made Remeasurement on the net defined benefit liabilities Fair value of plan assets as of December 31	For the years ended December 31,	For the years ended December 31,
	2024 $ 1,969 26 2 171 $ 2,168	2023
		1,934 32 2 1
		1,969

~35~

Raydium Semiconductor Corporation Notes to the Financial Statements

(d) Expenses recognized in profit or loss

The Company’s expenses recognized in profit or loss for the years ended December 31, 2024 and 2023 were as follows:

2024 and 2023 were as follows:
Operating expenses - Net interest on the net defined benefit	For the years ended December 31,
	2024 $ 2	2023
		2

(e) Remeasurement of the net defined benefit liabilities recognized in other comprehensive income

The Company's remeasurements of the net defined benefit liabilities recognized as accumulated in other comprehensive income for the years ended December 31, 2024 and 2023 were as follows:

Accumulated amount as of January 1 Recognized for the period Accumulated amount as of December 31	For the years ended December 31, 2024 2023 $ 913 939 708 (26) $ 1,621 913
	2024 $ 913 708 $ 1,621

(f) Actuarial assumptions

The following are the Company’s significant principal actuarial assumptions of the present value of the defined benefit obligation at the reporting date:

Discount rate Future salary increases rate	December 31, 2024 December 31, 2023 % 1.55 % 1.32 % 5.00 % 5.00

The Company expects to make a contribution of $2 thousand to its defined benefit plans in the following year, beginning December 31, 2024.

The weighted-average duration of the defined benefits obligation is 10 years.

(g) Sensitivity analysis

If there is a change in the actuarial assumptions as of the December 31, 2024 and 2023, the impact on the defined benefit obligation would be as follows:

Actuarial assumptions December 31, 2024 Discount rate Future salary increase rate	Impact on the defined benefit obligations Increased 0.5% Decreased 0.5% $ (78) 83 $ 80 (76)
	Increased 0.5% $ (78) $ 80

~36~

Raydium Semiconductor Corporation Notes to the Financial Statements

Actuarial assumptions December 31, 2023 Discount rate Future salary increase rate	Impact on the defined benefit obligations Increased 0.5% Decreased 0.5% $ (128) 137 $ 131 (125)
	Increased 0.5% $ (128) $ 131

Reasonably possible changes to one of the relevant actuarial assumptions on the reporting date, holding other assumptions remain constant, would have affected the defined benefit obligation by the amounts shown above. In practice, the relevant actuarial assumptions are correlated to each other.

The approach used in recognizing the net defined liability in the balance sheets is the same as that used in developing the sensitivity analysis and the relevant actuarial assumptions in the current and previous years.

B. Defined contribution plans

In accordance with the provisions of the Labor Pension Act, the Company should contribute 6% of its employees’ monthly wages to their labor pension personal accounts with the Bureau of Labor Insurance, Ministry of Labor (hereinafter referred to as the Bureau of Labor Insurance). Under this defined contribution plan, the Company contributes a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The Company’s pension costs under the defined contribution plan were $67,470 thousand and $61,333 thousand for the years ended December 31, 2024 and 2023, respectively.

(15) Guarantee deposits received

Deposits received for capacity guarantee Current (recorded in other current liabilities) Non-current	December 31, 2024 $ 817,925 $ 327,170 490,755 $ 817,925	December 31, 2023
		1,075,130
		307,180 767,950
		1,075,130

The Company entered into production capacity guarantee agreement with its customers and reserved specific production capacity for them by collecting deposits, which would be returned upon the fulfillment of the contract.

~37~

Raydium Semiconductor Corporation Notes to the Financial Statements

(16) Income tax

A. Income tax expenses

The amounts of income tax expense (benefit) were as follows:

Current income tax expense (benefit) Current period Adjustment for prior period Deferred income tax expense (benefit) Origination and reversal of temporary differences Income tax expense	For the years ended December 31, 2024 2023 $ 347,229 239,559 (8,584) (115,923) 338,645 123,636 (12,656) (19,686) $ 325,989 103,950
	2024 $ 347,229 (8,584) 338,645 (12,656) $ 325,989

B. The amounts of income tax expense (benefit) recognized in other comprehensive income were as follows:

Items that will not be reclassified subsequently to profit or loss: Unrealized gains or losses from investments in equity instruments measured at FVOCI Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations	For the years ended December 31, 2024 2023 $ (11,744) (19,086) $ 502 (245)
	2024 $ (11,744) $ 502

C. The reconciliation of income tax expense and income before income tax were as follows:

Income before income tax Income tax at the Company’s domestic tax rate Adjustment for prior period and others Income tax effect of investment tax credit Additional surtax on undistributed retained earning Change in unrecognized temporary differences and others	For the years ended December 31, 2024 2023 $ 2,424,978 1,546,741 $ 484,996 309,348 (8,584) (115,923) (100,280) (106,145) - 2,675 (50,143) 13,995 $ 325,989 103,950
	2024 $ 2,424,978 $ 484,996 (8,584) (100,280) - (50,143) $ 325,989

~38~

Raydium Semiconductor Corporation Notes to the Financial Statements

For investment credit applicable in accordance with the Statute for Industrial Innovation, a maximum of 15% of the expenses may be credited against the profit seeking enterprise income tax payable in the current year; and a maximum of 10% of the expenses may be credited against the profit seeking enterprise income tax payable in each of the three years following the current year; also, the creditable amount shall not exceed 30% of the profit seeking enterprise income tax payable in the current year. The Company's investment credit for the year 2024 is in the process of application and the investment credit for the year 2023 is yet to be approved.

D. Deferred income tax assets and liabilities
(a) The amounts which the Company has not recognized deductible temporary differences in deferred tax assets were as follows:

deferred tax assets were as follows:
Loss associated with investments in subsidiaries	December 31, 2024 $ 21,630	December 31, 2023
		41,401

(b) Changes in the amount of recognized deferred tax assets and liabilities were as follows:

January 1, 2024 Recognized in profit or loss Temporary differences: Unrealized provision for inventory obsolescence losses $ 146,321 (48,037) Unrealized foreign exchange gain or loss 34,969 (21,463) Unrealized loss 35,476 32,658 Sales transaction fiscal and tax differences 10,097 38,056 Exchange difference on translation of foreign operations 119 - Goodwill and valuation of financial assets (6,246) (1,145) Others 8,527 12,587 Deferred tax income (expense) $ 12,656 Net deferred tax assets $ 229,263 Reflected in balance sheet as follows: Deferred tax assets $ 235,509 Deferred tax liabilities $ (6,246)	Recognized in other comprehensive income December 31, 2024	Recognized in other comprehensive income December 31, 2024
	- - - - (502) - 11,744 11,242	98,284 13,506 68,134 48,153 (383) (7,391) 32,858 253,161 260,935 (7,774)

~39~

Raydium Semiconductor Corporation Notes to the Financial Statements

January 1, 2023 Recognized in profit and loss Temporary differences: Unrealized provision for inventory obsolescence losses $ 150,758 (4,437) Unrealized foreign exchange gain or loss 19,846 15,123 Unrealized loss 38,831 (3,355) Sales transaction fiscal and tax differences 2,817 7,280 Exchange difference on translation of foreign operations (126) - Goodwill and valuation of financial assets (4,856) (1,390) Others (17,024) 6,465 Deferred tax income (expense) $ 19,686 Net deferred tax assets $ 190,246 Reflected in balance sheet as follows: Deferred tax assets $ 212,252 Deferred tax liabilities $ (22,006)	Recognize in other comprehensive income	December 31, 2023 146,321 34,969 35,476 10,097 119 (6,246) 8,527 229,263 235,509 (6,246)
	- - - - 245 - 19,086 19,331

E. The Company's tax returns have been examined and approved by the tax authorities through 2022.

(17) Equity

A. Issuance of common stock

As of December 31, 2024 and 2023, the authorized capital of the Company amounted to $1,000,000 thousand (including the amount of $50,000 thousand authorized for the issuance of the employee stock options), and the Company’s issued capital amounted to $758,552 thousand, with a par value of $10 (dollars) per share.

Reconciliation of shares outstanding for 2024 and 2023 was as follows (in thousands of shares):

Balance as of December 31 (Balance as of January 1)	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
		2024 75,855	2023
			75,855

~40~

Raydium Semiconductor Corporation Notes to the Financial Statements

B. Capital surplus

Capital surplus
Capital surplus Employee remuneration paid in the form of stocks Others	December 31, 2024 $ 4,647,881 64,592 460 $ 4,712,933	December 31, 2023
		4,647,881 64,592 460
		4,712,933

In accordance with the R.O.C Company Act, the capital surplus generated from the premium of stock issuance and donation may only be used to offset accumulated deficits. In addition, when the Company incurred no deficit, such capital surplus may be distributed as cash or stock dividends. Pursuant to the R.O.C. Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the total sum of the capital surplus capitalized per annum shall not exceed 10 percent of the paid-in capital.

C. Retained earnings

If the Company makes a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, and setting aside 10% of the remaining profit as legal reserve, unless the amount in the legal reserve is already equal to or greater than the total paid in capital. Thereafter, the amount shall be set aside or reversed as special reserve in accordance with related laws, regulations, or provisions of the competent authorities. Then, any remaining profit, together with any undistributed retained earnings, shall be distributed according to the distribution plan proposed by the Board of Directors. The distribution of dividends and bonuses, in whole or in part, by issuing new shares, shall be resolved during the shareholders' general meeting. As for the cash payment, it shall be approved by the Board of Directors and be reported in the shareholders' general meeting.

The Company’s dividend policy is to pay dividends from surplus considering factors such as the Company’ s current and future investment environment, cash requirements, domestic and overseas competitive conditions and capital budget requirements, while taking into account shareholders’ interest, maintenance of balanced dividend and the Company’ s long-term financial plan. An annual dividend of not less than 10% of the distributable surplus is provided for the shareholders, wherein the cash portion of the dividend, which may be in the form of cash and stock, shall not be less than 10% of the total dividend distributed during the year.

(a) Legal reserve

In accordance with the ROC Company Act, 10 percent of the net profit shall be allocated as legal reserve until the accumulated legal reserve equals the paid-in capital. If the Company incurs no loss, the reserve may be distributed as cash or stock dividends for the portion in excess of 25% of the paid-in capital.

~41~

Raydium Semiconductor Corporation Notes to the Financial Statements

(b) Special reserve

In accordance with Rule No. 1090150022 issued by the FSC on March 31, 2021, a portion of current earnings and previous unappropriated earnings shall be set aside as a special reserve during earnings distribution. The amount to be set aside should equal the total amount of contra accounts that are accounted for as deductions to other equity interests. A portion of the previous unappropriated earnings shall be set aside as a special reserve, which should not be distributed, to account for cumulative changes to other equity interests pertaining to prior periods. The subsequent reversals of the contra accounts in shareholders' equity shall qualify for additional distributions.

(c) Earnings distribution

The appropriations of earnings for 2023 and 2022 by way of cash dividends had been approved in the Board of Directors' meeting held on February 26, 2024 and February 23, 2023. In addition, the appropriations of earning for 2023 and 2022 by others ways have been approved in the annual shareholders' meeting held on May 29, 2024 and May 29, 2023, respectively. Details of distribution were as follows:

Legal reserve Special reserve Cash dividends on ordinary shares	2023 Amounts Dividends per share (NT$) $ 145,397 33,741 1,152,999 15.2 $ 1,332,137	2022
	Amounts $ 145,397 33,741 1,152,999 $ 1,332,137	Amounts Dividends per share (NT$) 386,272 - 3,110,064 41 3,496,336

The aforementioned appropriations of earnings were consistent with the resolutions of the Board of Directors' meeting.

On February 25, 2025, the amount of cash dividends distributed to ordinary shareholders, at NT$22.2 per share, totaled $1,683,986 thousand; and the appropriation of the earnings for 2024 was approved by the Board of Meeting. The related information is available on the Market Observation Post System website.

~42~

Raydium Semiconductor Corporation Notes to the Financial Statements

D. Other equity

Change in the amount of other equity were as follows:

Balance as of January 1, 2024 Differences on translation of foreign operations Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Disposal of investments in equity instruments measured at fair value through other comprehensive income Income tax effect Balance as of December 31, 2024 Balance as of January 1, 2023 Differences on translation of foreign operations Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Disposal of investments in equity instruments measured at fair value through other comprehensive income Income tax effect Balance as of December 31, 2023	Exchange differences on translation of foreign operations $ (474) 2,508 - - (502) $ 1,532 $ 508 (1,227) - - 245 $ (474)	Unrealized gain (losses) on financial assets at fair value through other comprehensive income (33,267) - (86,091) (10,604) 11,744 (118,218) 28,946 - (70,094) (11,205) 19,086 (33,267)	Total (33,741) 2,508 (86,091) (10,604) 11,242 (116,686) 29,454 (1,227) (70,094) (11,205) 19,331 (33,741)

(18) Earnings per share Basic earnings per share: Net income attributable to ordinary shareholders of the Company Weighted-average number of ordinary shares outstanding during the year (in thousands of shares) Basic earnings per share (NT dollars)	For the years ended December 31,	For the years ended December 31,
	2024 $ 2,098,989 75,855 $ 27.67	2023
		1,442,791
		75,855
		19.02

~43~

Raydium Semiconductor Corporation Notes to the Financial Statements

Diluted earnings per share: Net income attributable to ordinary shareholders of Company Weighted-average number of ordinary shares outstanding during the year (in thousands of shares) Effect of employee stock remuneration Weighted-average number of ordinary shares outstanding (in thousands of shares)(diluted) Diluted earnings per share (NT dollars) (19) Revenue from contracts with customers A. Detail of revenue Revenues from major regional markets: China (including Hong Kong) Taiwan Others Revenue from major products: Display Driver IC Others B. Contract balances December 31, 2024 Contract liabilities $ 296,774	For the years ended December 31,	For the years ended December 31,
	2024 2023 $ 2,098,989 1,442,791 75,855 75,855 1,166 971 77,021 76,826 $ 27.25 18.78 For the years ended December 31,	2023
		1,442,791
		75,855 971
		76,826
		18.78
	2024 $ 17,404,189 4,230,157 723,215 $ 22,357,561 $ 21,577,379 780,182 $ 22,357,561 December 31, 2023 527,962	2023
		12,312,166 4,782,992 509,449
		17,604,607
		16,922,157 682,450
		17,604,607
		January 1, 2023
$ 296,774		680,756

For details on accounts receivable and loss allowance, please refer to note 6(3).

The revenues recognized for the years ended December 31, 2024 and 2023, which were included in the contract liability balance at the beginning of the period, amounted to $277,562 thousand and $292,589 thousand, respectively.

The contract liabilities primarily relate to the advance consideration received from contracts with goods sold, for which revenue is recognized when products are delivered to customers.

~44~

Raydium Semiconductor Corporation Notes to the Financial Statements

(20) Non-operating income and expenses

A. Other income

Other income
Dividend income Others	For the years ended December 31,
	2024 $ 813 55,090 $ 55,903	2023
		12,176 14,960
		27,136

B. Other gains and losses

Foreign exchange gains (losses), net Gains on financial instruments measured at fair value through profit or loss Others C. Finance costs Interest expense`－`bank borrowings Lease liabilities D. Interest income Interest income from bank deposits	For the years ended December 31, 2024 2023 $ 102,172 (2,922) 7,447 6,542 11,092 680 $ 120,711 4,300 For the years ended December 31, 2024 2023 $ (13,963) (4,352) (328) (302) $ (14,291) (4,654) For the years ended December 31, 2024 2023 $ 138,993 137,354
	2024 $ 138,993

(21) Remuneration to employees and directors

In accordance with the articles of incorporation, when the Company incurred profit for the year, the profit should first be used to offset against any deficit (including unappropriated retained earnings); then, no less than 1% of the profit (income before tax, excluding remuneration to employees and directors) shall be distributed as employee remuneration, and no more than 1% as directors’ and supervisors’ remuneration.

The aforementioned shall be resolved by the board of directors and reported to the shareholders' meeting:

~45~

Raydium Semiconductor Corporation Notes to the Financial Statements

Employees, including those belonging to affiliate companies that meet certain conditions, are entitled to the abovementioned remuneration, which to be distributed in stock or cash, employee stock option certificates, restricted employee shares, treasury stock purchased and transferred to employees, as well as employee stocks when issuing new shares. The said conditions and distribution method are decided by Board of Directors or the personnel authorized by Board of Directors.

For the years ended December 31, 2024 and 2023, the amounts of remuneration to employees were estimated at $424,658 thousand and $270,959 thousand, respectively; and those to the directors were estimated at $18,943 thousand and $12,747 thousand, respectively. The estimation basis shall be calculated as the amounts of net income before tax, excluding the remuneration to employees and directors, multiplied by the percentage remuneration to employees and directors, as specified in the Company’s articles of incorporation. These remuneration were expensed under operating costs or expenses for the years ended December 31, 2024 and 2023. If there are changes in the proposed amounts after the annual parent-company-only financial statements have been authorized for issuance, the differences are accounted for as changes in accounting estimates and adjusted prospectively in profit or loss in the following year. However, if the Board of Directors resolved that the employee remuneration is to be paid in the form of stocks, the closing price of the ordinary share on the day before the Board of Directors’ meeting will be used to calculate the number of stock shares.

There were no differences between the aforesaid amounts of employee and directors’ remuneration approved by the Board of Directors and the amounts in the 2023 consolidated financial statements. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(22) Financial instruments
A. Credit risk
- (a) Credit risk exposure

The carrying amount of financial assets represent the maximum amounts exposed to credit risk.

(b) Credit risk concentration

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. As of the financial reporting date, the maximum credit risk exposure of the Company due to non-performance of the counterparty mainly derived from the carrying amount of the financial assets recognized in the balance sheet of the Company.

The Company’s potential credit risk is derived primarily from cash and cash equivalents and trade receivables. The cash is deposited in different financial institutions. The Company manages the credit risk exposure with each of these financial institutions and believes that cash and cash equivalents do not have a significant credit risk concentration.

~46~

Raydium Semiconductor Corporation Notes to the Financial Statements

In addition to granting credit facilities to customers in accordance with the credit procedures, the Company will require insurance for accounts receivable from certain customer groups in order to reduce the credit risk of accounts receivable, and use historical trading experience to continuously assess the financial condition, credit condition and current economic environment of the customers.

As of December 31, 2024 and 2023, the Company’s five largest customers accounted for approximately 50% and 58% of the balance of accounts receivable (including related persons), respectively. After an assessment has been made on the lifetime expected credit losses of the accounts receivable, the management expects no significant losses in the future.

(c) Credit risk of receivables

For credit risk exposure on accounts receivable, please refer to note 6(3).

Other financial assets at amortized cost include other receivables, guarantee deposit and restricted bank deposits.

All financial assets, excluding the abovementioned accounts receivable, are considered to be low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses. (Please refer to note 4(6) for further details).

B. Liquidity risk

The contractual maturities of financial liabilities were as follows.

December 31, 2024 Non-derivative financial liabilities Short-term borrowings Accounts payable Salaries and bonuses payable Other payables-related parties Lease liabilities (current and non-current) Guarantee deposits received (current and non-current) December 31, 2023 Non-derivative financial liabilities Short-term borrowings Accounts payable Salaries and bonuses payable Other payables-related parties Lease liabilities (current and non-current) Guarantee deposits received (current and non-current)	Carrying amounts $ 130,868 3,056,962 2,561,172 2,776 12,828 817,925 $ 6,582,531 $ 445,411 2,363,447 2,352,793 7,518 13,122 1,075,130 $ 6,257,421	Contractual cash flows (131,103) (3,056,962) (2,561,172) (2,776) (13,155) (817,925) (6,583,093) (445,888) (2,363,447) (2,352,793) (7,518) (13,576) (1,075,130) (6,258,352)	Within a year (131,103) (3,056,962) (2,561,172) (2,776) (5,612) (327,170) (6,084,795) (445,888) (2,363,447) (2,352,793) (7,518) (4,045) (307,180) (5,480,871)	Over 1 years - - - - (7,543) (490,755) (498,298) - - - - (9,531) (767,950) (777,481)

~47~

Raydium Semiconductor Corporation Notes to the Financial Statements

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

C. Foreign currency risk

(a) Exposure of foreign currency risk

The Company’s financial assets and liabilities exposed to foreign currency risk were as follows:

follows:
Financial assets Monetary items USD JPY RMB Non-Monetary items USD Financial liabilities Monetary items USD RMB	December 31, 2024 Foreign currency Exchange rate TWD $ 200,589 32.717 6,562,670 174,828 0.2086 36,469 775 4.4733 3,467 4,342 32.717 142,044 $ 130,988 32.717 4,285,534 289 4.4733 1,293		December 31, 2023
	Foreign currency $ 200,589 174,828 775 4,342 $ 130,988 289	Exchange rate 32.717 0.2086 4.4733 32.717 32.717 4.4733	Foreign currency 182,898 24,856 846 1,324 133,899 85	Exchange rate TWD 30.718 5,618,261 0.2173 5,401 4.3152 3,651 30.718 40,683 30.718 4,113,109 4.3152 367

(b) Sensitivity analysis

The Company’s exposure to foreign currency risk arises mainly from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivable, other financial assets, short-term borrowings, accounts payable and deposits received that are denominated in foreign currency. A strengthening (weakening) guarantee of 1% of the NTD against the USD, RMB, and JPY as of December 31, 2024 and 2023, assuming that all other variables remain constant, would have increased or decreased the profit after tax by $18,526 thousand and $12,111 thousand, respectively.

(c) Foreign exchange gains (losses) on monetary items

As the Company deals with diverse foreign currencies, gains and losses on foreign exchange were summarized as a single amount. The aggregate of realized and unrealized foreign exchange gains (losses) for the years ended December 31, 2024 and 2023 were $102,172 thousand and $(2,922) thousand, respectively.

D. Interest rate analysis

An increase or decrease of 0.25% in interest rates, mainly from cash and cash equivalents, restricted bank deposits and short-term borrowings, with floating interest rates at the reporting date, assuming all other variables remain constant, would have increased or decreased net income by $3,007 thousand and $2,896 thousand for the years ended December 31, 2024 and 2023, respectively.

~48~

Raydium Semiconductor Corporation Notes to the Financial Statements

E. Other market price risk

The impact of the changes in equity price on other comprehensive income was as follows, assuming the analysis use the same basis for both years, with other factors remaining constant:

Prices of securities at the reporting date Increasing 10% Decreasing 10%	For the years ended December 31,	For the years ended December 31,
	2024 Other comprehensive income before tax $ 55,924 $ (55,924)	2023 Other comprehensive income before tax 43,439 (43,439)

F. Fair value of financial instruments
(a) Fair value and carrying amount

The fair value of financial assets and liabilities at fair value through profit or loss, and financial assets at fair value through other comprehensive income is measured on a recurring basis. The Company’s carrying amounts and the fair value of financial assets and liabilities (including the information for fair value hierarchy; but excluding financial instruments, whose fair values approximate the carrying amount, and lease liabilities, since the disclosure of fair value are not equired) which need not be disclosed were as follows:

	December 31, 2024	December 31, 2024
	Fair value
Level 1 531,520 - 274,668 - - - - - 806,188	Level 2 - - - - 96,563 - - - 96,563	Level 3 - 35,000 - 284,575 - - - - 319,575	Total
			531,520 35,000 274,668 284,575 96,563 - - -
			1,222,326

~49~

Raydium Semiconductor Corporation Notes to the Financial Statements

	December 31, 2024	December 31, 2024
	Fair value
Level 1 - - - - - - -	Level 2 - - - - - - - December	Level 3 - - - - - - - 31, 2023	Total
			- - - - - -
			-

	Fair value
Level 1 633,073 319,873 - - - - - 952,946 - - - - - - -	Level 2 - - - 119,505 - - - 119,505 - - - - - - -	Level 3 - - 114,517 - - - - 114,517 - - - - - - -	Total
			633,073 319,873 114,517 119,505 - - -
			1,186,968
			- - - - - -
			-

~50~

Raydium Semiconductor Corporation Notes to the Financial Statements

(b) Fair value valuation technique of financial instruments measured at fair value

Non-derivative financial instruments

The listed shares and beneficiary certificates held by the Company are measured at fair value according to standard provision and conditions, and are traded in active markets, with the fair value being measured using the quoted price in an active market. Except for the above mentioned financial assets with active market transactions, the fair value of unlisted shares held by the Company is estimated using the market-comparable company method, which is measured by using price-book ratio of the peers.

(c) There was no transfer between the different levels of fair value hierarchy for the years ended December 31, 2024 and 2023.
(d) Quantified information for significant unobservable inputs used in fair value measurement (Level 3)

The Company’s financial instruments measured at fair value which are categorized within Level 3 include financial assets at FVTPL-venture capital funds and financial assets at FVOCI – equity investments.

The Company’s financial instruments classified as Level 3 fair value are measured using only a single significant unobservable input. Only equity investments without an active market involve mutiple significant unobservable inputs. The significant unobservable inputs of equity investments without an active market are individually independent, and there is no correlation between them.

Quantified information regarding significant unobservable inputs were as follows:

Item Financial assets at FVTPL – venture capital funds Financial assets at FVOCI – equity investments without an active market	Valuation technique Asset approach Market approach (comparable with price-book ratio of the peers)	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ●Lack of market liquidity ●The higher the level of lackim liquidity, the lower the estimate of fair value ●P/B ratio multiplier (1.37~7.94 and 2.63~3.94 as of December 31, 2024 and 2023, respectively) ●Discount for lack of market liquidity ( 30%~60% as of December 31, 2024 and 2023) ●The higher the P/B ratio, the higher the fair value ●The higher the market liquidity discount rate, the lower the fair value

~51~

Raydium Semiconductor Corporation Notes to the Financial Statements

(e) Reconciliation for fair value measurements categorized within level 3:

Balance as of January 1 Addition in investments Total gain/loss Recognized in profit and loss Balance as of December 31 Balance as of January 1 Addition in investments Deposal of investments Total gain/loss Recognized in other comprehensive income Balance as of December 31	Financial assets at FVTPL – venture capital funds For the years ended December 31, 2024 2023 $ - - 35,000 - - - $ 35,000 - Financial assets at FVOCI – equity investments without an active market For the years ended December 31, 2024 2023 $ 114,517 264,316 256,160 - - (31,205) (86,102) (118,594) $ 284,575 114,517

The total gains and losses above were recognized in “ other gains and losses” and “unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income”, respectively.

(23) Financial risk management
A. Overview

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

(a) Credit risk
(b) Liquidity risk
(c) Market risk

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

~52~

Raydium Semiconductor Corporation Notes to the Financial Statements

B. Structure of risk management

The significant financial activities of the Company have been reviewed by the Board of Directors and the Audit Committee in accordance with the relevant standards and internal control system. During the financial plan implementation, the Company must comply with the relevant financial operating procedures relating to the overall financial risk management and segregation of duties. The Company, through internal controls such as training, management standards, and operational procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

C. Credit risk

The credit risk of the Company is mainly due to receivables and cash and cash equivalents arising from operating activities; please refer to note 6(22).

D. Liquidity risk

There is no liquidity risk of being unable to raise capital to settle contract obligations since the Company has sufficient capital and working capital to fulfill its contract obligations; please refer to note 6(22).

E. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, that will affect the Company’s income or the value of its financial instruments; please refer to note 6(22). The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing the return.

(a) Currency risk: The Company is exposed to currency risk on sales and purchases that are denominated in a currency other than the respective functional currencies of the Group entities, primarily the NTD, USD, JPY and RMB.
(b) Market price risk of interest rate change: All of the Company’s assets and liabilities bear floating interest rates, and thus, cash flow is exposed to the risk of interest rate change.

(24) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, research and development activities, dividend payments, and other business requirements for continuing operations and to reward its shareholders and take into consideration the interests of other stakeholders.

~53~

Raydium Semiconductor Corporation Notes to the Financial Statements

The Company’s debt-to-equity ratio at the reporting date was as follows:

Total liabilities Less: Cash and cash equivalents Net debt Total equity Debt-to-equity ratio	December 31, 2024 $ 8,172,872 (5,298,301) $ 2,874,571 $ 12,092,505 % 24	December 31, 2023 7,712,732 (5,166,983) 2,545,749 11,218,148 % 23

(25) Financing activities of non-cash transactions

Reconciliation of liabilities arising from financing activities was as follows:

Short-term borrowings Lease liabilities Guarantee deposits received Total liabilities from financing activities Short-term borrowings Lease liabilities Guarantee deposits received Total liabilities from financing activities	January 1, 2024 $ 445,411 13,122 1,075,130 $ 1,533,663 January 1, 2023 $ - 16,785 1,412,443 $ 1,429,228	Cash flows (322,363) (4,989) (277,450) (604,802) Cash flows 452,183 (3,663) (304,872) 143,648	Changes in foreign Exchange and other 7,820 4,695 20,245 32,760 Changes in foreign Exchange and other (6,772) - (32,441) (39,213)	December 31, 2024
				130,868 12,828 817,925
				961,621
				December 31, 2023
				445,411 13,122 1,075,130
				1,533,663

~54~

Raydium Semiconductor Corporation Notes to the Financial Statements

7. Related-party transactions

(1) Names and relationship of related parties

The following is a summary of related parties that have had transactions with the Company during the periods presented in the parent-company-only financial statements.

Name of related parties	Relationship with the Company
Raydium Semiconductor (SAMOA) Corp. (RSA)	The subsidiaries of the Company
Raydium Semiconductor (Kunshan) Co., Ltd. (RKS)	The subsidiaries of the Company
AUO Corporation (AUO)	AUO accounted for is investments in the
	Company using the equity method
AUO (Suzhou) Co., Ltd. (AUOSZ)	Subsidiary of AUO
AUO (Xiamen) Co., Ltd. (AUOXM)	Subsidiary of AUO
AUO (Kunshan) Co., Ltd. (AUOKS)	Subsidiary of AUO
AUO Education Service Corp. (AUES)	Subsidiary of AUO
AUO Display Plus Corporation (ADP)	Subsidiary of AUO
AUO Envirotech Inc. (AETTW)	Subsidiary of AUO
Maxeda Technology Inc. (Maxeda)	The Company act as the director for Maxeda
	(Note)
Space Money Inc. (SAM)	Subsidiary of AUO
Heilongjiang Talenda Smart Display Technology Co., Ltd (Talenda)	Subsidiary of ADP
Sungen Power Corp.	Subsidiary of AUO

Note: On October 13, 2023, the Company sold the entire equity of Maxeda Technology Inc., who became a non-related party thereafter.

(2) Additional to those disclosed in the notes of the parent-company-only financial statements, the Company’s significant related party transactions and balances were as follows:
A. Sales

The amounts of significant sales transactions between the Company and related parties were as follows:

Relationship AUOSZ AUOXM AUO Subsidiaries Other related parties	For the years ended December 31,	For the years ended December 31,
	2024 $ 1,982,624 1,345,334 426,289 95,244 224,610 $ 4,074,101	2023
		1,909,645 1,754,596 937,560 34,064 180,609
		4,816,474

~55~

Raydium Semiconductor Corporation Notes to the Financial Statements

For the years ended December 31, 2024 and 2023, the collection terms for sales to related parties were 30 to 120 days from the end of the month during which the invoice is issued. The collection terms for sales to non related parties were 30 to 120 days from the end of the month during which the invoice is issued or the products have been delivered after the advance receipt. The pricing for sales to related parties were not materially different from those with third parties.

B. Receivables from related parties

The receivables from related parties were as follows:

Account Receivables from related parties Receivables from related parties Receivables from related parties Receivables from related parties Receivables from related parties	Relationship AUOSZ AUOXM AUO Subsidiaries Other related parties	December 31, 2024 $ 871,846 486,999 149,305 97,479 81,238 $ 1,686,867	December 31, 2023
			690,595 549,176 301,599 33,553 78,280
			1,653,203

C. Other payables to related parties

The payables to related parties were as follows ：

Account Other accounts payable from related parties Other accounts payable from related parties Refund liabilities	Relationship AUO Other related parties Other related parties	December 31, 2024 $ 2,291 485 $ 2,776 $ 4,952	December 31, 2023
			7,470 48
			7,518
			2,025

D. Other

(a) The other income of the Company from its related parties were as follows:

AUO	For the years ended December 31,	For the years ended December 31,
	2024 $ 31,750	2023
		11,567

~56~

Raydium Semiconductor Corporation Notes to the Financial Statements

(b) The rental expenses and other expenses paid by the related parties under lessee contracts were as follows:

AUO Other related parties	For the years ended December 31,	For the years ended December 31,
	2024 $ 33,866 576 $ 34,442	2023
		28,133 263
		28,396

Other related parties	For the years ended December 31,	For the years ended December 31,
	2024 $ -	2023
		5,390

(d) The costs of acquiring leasehold improvements from related parties were as follows:

Other related parties (e) The prepayment to related parties were as follow: AUO (f) Cash dividend distribution from capital surplus: AUO Key management personnel compensation Key management personnel compensation were as follows: Short-term employee benefits Post-employment benefits	December 31, 2024 December 31, 2023 $ - 1,000 December 31, 2024 December 31, 2023 $ 7,854 - December 31, 2024 December 31, 2023 $ 13,012 - For the years ended December 31,	December 31, 2023
		1,000
		December 31, 2023
		-
		December 31, 2023
		-
	2024 $ 221,301 756 $ 222,057	2023
		156,523 756
		157,279

(3) Key management personnel compensation

~57~

Raydium Semiconductor Corporation Notes to the Financial Statements

8. Pledged assets:

Pledged assets:
Asset Name Restricted cash in bank (recognized in other financial assets`－`current) Restricted cash in bank (recognized in other financial assets`－`current)	Pledged to secure Import guarantee for customs Import Guarantee	December 31, 2024 $ 34,458 220,130 $ 254,588	December 31, 2023
			34,386 220,130
			254,516

9. Significant Contingencies and Unrecognized Commitments:

(1) The Company signed a contract to purchase a real estate located in Tai Yuen Hi-Tech Industrial Park on November 2, 2023, with a total contract price of $1,845,000 thousand (tax included), of which, the amount of $239,850 thousand (tax included) had been paid as of December 31, 2024.
(2) The Company has signed capacity guarantee contracts with several suppliers, paid the deposit and prepaid the goods in accordance with the agreement, and agreed on the relevant years and minimum quantity that the Company needs to purchase.
(3) The Company has entered into capacity guarantee contracts with several customers, and collects deposits and advance receipts as agreed to reserve specific production capacity to such customers.

10. Significant disaster losses: None

11. Subsequent events: None

12. Others:

The following is the summary statement of the current period employee benefits, depreciation, and amortization expenses, by function:

By function By item	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
	2024			2023
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others employee benefits Depreciation Amortization	152,726 7,492 3,627 - 6,225 - 215	2,927,736 130,683 63,845 30,471 99,528 182,311 198,754	3,080,462 138,175 67,472 30,471 105,753 182,311 198,969	116,519 6,692 3,556 - 6,169 83 225	1,984,548 105,158 57,779 23,448 86,000 203,448 163,530	2,101,067 111,850 61,335 23,448 92,169 203,531 163,755

~58~

Raydium Semiconductor Corporation Notes to the Financial Statements

The amount of employees and employee benefits for the years ended December 31, 2024 and 2023, were as follows:

		For the December 31	ended
		December 31,
		2024 2023
The number of employees		887	812
The number of directors who were not holding as a position of
employee		6	6
The average of employee benefits	$	3,850	2,936
The average of Salaries	$	3,497	2,607
The average of salary adjust rate		% 34.14
The remuneration to supervisors	$	-	-

The information of the Company’ s salaries and remunerations policy (including director, supervisor, executive officers and employees) is as follow:

Directors and managers are determined in accordance with “ Directors, Independent Directors and Managers’ Salary and Remuneration Method” and taking into account the usual standards of the industry.

Employee salary is based on Company’s appointment work, salary work and assessment work.

The Company set up audit committee to replace the operation of supervisors, and no remuneration for supervisors.

~59~

RAYDIUM SEMICONDUCTOR CORPORATION

Notes to the Financial Statements

13. Other disclosures:

(1) Information on significant transactions:

The followings is a summary of the information on significant transactions required by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Company:

A. Loans to other parties: None.
B. Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No.	Endorsement / Guarantee Provider	Guarantee Party	Guarantee Party	Limitation on Endorsement/ Guarantees Amount Provided to Each Guarantee Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantees to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship
0	The Company R S ( L	aydium emiconductor Kunshan) Co., td.	Subsidiaries	2,418,501	654,340	654,340	392,723	-	% 5.41	6,046,253	Y	N	Y

Note 1: The maximum amount of the Company's endorsement/guarantee for a single enterprise shall not exceed 20% of the net value of the latest financial statements audited or reviewed by accountants.
Note 2: The total amount of the Company’s endorsement/guarantee shall not exceed the 50% of the net value of the Company’s financial statements audited or reviewed by accountants.

C. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):

(Thousand of shares and Thousands of New Taiwan Dollars)

Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account		Ending Balance	Ending Balance		Note
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Yuanta Wan Tai Money Market Fund Yuanta De Bao Money Market Fund CDIB-TEN Capital Limited Partnership Shares of Darfon Electronics Corp. Shares of AUO Corporation Shares of SiCEV Electronic Co., Ltd. Shares of PlayNitride Inc. Shares of Neuchips Inc. Shares of ARK Semiconductor Inc. TSMC 109-6 series A bonds	- - - - AUO accounted for its investments in the Company using the equity method The Company represented as a director of SiCEV - - The Company represented as a director of ARK -	Financial assets at FVTPL `－`current " Financial assets at FVTPL `－`non-current Financial assets at FVOCI `－`current Financial assets at FVOCI `－`non current " " " " Other financial assets`－` current	18,354 19,329 - 203 14,459 8,943 270 2,000 1,983 -	289,508 242,012 35,000 8,849 211,819 22,839 54,000 - 261,736 9,894	- - - % 0.07 % 0.19 % 18.73 % 0.25 % 1.90 % 15.81 -	289,508 242,012 35,000 8,849 211,819 22,839 54,000 - 261,736 9,894

~60~

RAYDIUM SEMICONDUCTOR CORPORATION Notes to the Financial Statements

D. Individual securities acquired or disposed at costs or prices with accumulated amount exceeding the lower of NT$300 million or 20% of the stock capital:

(In Thousand of shares and Thousands of New Taiwan Dollars)

Securities Held by	Marketable Securities Type and Name	Financial Statement Account	Counter- Party	Relationship in the company	BeginningBalance	BeginningBalance	Add	ition		Disposal	Disposal		EndingBalance	EndingBalance
					Shares	Amount	Shares	Amount	Shares	Price	Book Value	Gain (loss) on disposal	Shares	Amount
The Company The Company	Yuanta Wan Tai Money Market Fund Yuanta De Bao Money Market Fund	Financial assets at FVTPL`－`current "	- -	- -	13,164 34,691	204,238 426,669	30,622 18,458	480,000 230,000	25,432 33,820	399,000 420,000	395,224 415,934	3,776 4,066	18,354 19,329	289,014 (Note) 240,735 (Note)

Note: The opening and closing balances are measured acquisition costs. For the carrying amount valuated against the market price, please refer to C item.

E. Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the stock capital: None.
F. Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the stock capital: None.
G. Related-party transactions for purchases and sales with amount exceeding the lower of NT$100 million or 20% of the stock capital:

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship		Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)
			Purchase/ Sales	Amount	Percentage o Total Purchases/ Sales	f Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/ Accounts Receivable (Payable)
The Company The Company The Company The Company	AUOSZ AUOXM AUO AUOKS	Subsidiary of AUO Subsidiary of AUO AUO accounted for its investment in the Company using the equity method Subsidiary of AUO	Sales Sales Sales Sales	1,982,624 1,345,334 426,289 224,164	% 9 % 6 % 2 % 1	EOM 120 days EOM 120 days EOM 120 days EOM 120 days	Please refer to note 7 Please refer to note 7 Please refer to note 7 Please refer to note 7	Please refer to note 7 Please refer to note 7 Please refer to note 7 Please refer to note 7	871,846 486,999 149,305 81,233	23% 13% 4% 2%

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

(In Thousands of shares and Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period (Note)	Allowance for Bad Debts
					Amount	Action Taken
The Company The Company The Company	AUOSZ AUOXM AUO	Subsidiary of AUO Subsidiary of AUO AUO accounted for its investment in the Company using the equity method	871,846 486,999 149,305	2.54 2.60 1.89	8,769 - 5	On the spot collection On the spot collection On the spot collection	192,200 108,067 41,838	- - -

Note 1: Amounts collected in subsequent period as of February 12, 2025.

I. Trading the derivative instruments: None.

~61~

RAYDIUM SEMICONDUCTOR CORPORATION Notes to the Financial Statements

(2) Information on investees (excluding information on investees in Mainland China):

						(In Thousand of shares and Thousands of New Taiwan Dollars	(In Thousand of shares and Thousands of New Taiwan Dollars	(In Thousand of shares and Thousands of New Taiwan Dollars	(In Thousand of shares and Thousands of New Taiwan Dollars	(In Thousand of shares and Thousands of New Taiwan Dollars	(In Thousand of shares and Thousands of New Taiwan Dollars
Investor Company	Investee Company	Location	Main businesses and products	Original investment amount		Balance as	of December 31, 2024		Net income (losses) of investee	Share of Profits/ Losses of Investee	Note
				December 31, 2024	December 31, 2023	Shares	Percentage of ownership	Carrying value
The Company	RSA	SAMOA	Investment Holding	248,280	248,280	8,100	% 100.00	142,044	98,853	98,853	Subsidiary of the Company

(3) Information on investment in Mainland China:
A. The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousand of shares and Thousands of New Taiwan Dollars)

Investee Company	Main businesses and products	Total amount paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2024	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2024	Net income (losses) of the investee (Note 3)	Percentage of ownership	Investment income (Note 3 and 5)	Carrying amounts (Note 2)	Accumulated remittance of earnings in current period
					Outflow	Inflow
Raydium Semiconductor (Kunshan) Co., Ltd.	Development, design and sale of the IC	245,200 (USD8000 thousand)	(Note 1)	245,200	-	-	245,200	98,869	100.00%	98,869	138,780	-

B. Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2024	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 4)
245,200 (USD8,000 thousand)	245,200 (USD8,000 thousand)	7,255,503

Note 1:Investment in companies in Mainland China through the existing companies in SAMOA.
Note 2:Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the spot rate on the balance sheet date.
Note 3:Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the average exchange rate.
Note 4:Pursuant to the Regulations Governing Permission for Investment and Technical Cooperation in the Mainland Area, the Company’s accumulated investments in Mainland China did not exceed the upper limit on investment amount or ratio stipulated by the Investment Commission, Ministry of Economic Affairs (“MOEA”).
Note 5:The financial statements were audited by the parent’s external accountants.
Note 6:On November 5, 2024, the Board of Directors approved the establishment of a new subsidiary in Hefei, Mainland China, jointly invested through RSA and its subsidiary, RKS. The total investment amount is capped at USD 5,000 thousand, which can be invested in one or multiple installments. The project was approved by the Investment Commission of the Ministry of Economic Affairs on February 6, 2025. As of the date of publication of these financial statements, the funds have not yet been remitted.

~62~

Raydium Semiconductor Corporation Notes to the Financial Statements

C. Significant transactions with the investees in Mainland China:

The significant inter-company transactions with the subsidiaries in Mainland China for the year ended December 31, 2024, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

(4) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
KonlyVenture Corp.	11,454,429	% 15.10

Note: The information on major shareholders summarized the shareholders who held over 5% of the Company’s ordinary shares.

14. Segment information:

Please refer to the consolidated financial statements for the year ended December 31, 2024.

~63~

Raydium Semiconductor Corporation

Statement of Cash and Cash Equivalents

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item	Description		Amount
Bank deposits	Demand deposits`－`NTD	$	483,652
	Demand deposits`－`USD20,652 thousand; RMB775 thousand;
	JPY174,828 thousand		715,599
	Time deposits–NTD		4,099,050
		$	5,298,301
Note: Foreign	exchange rates at the balance sheet date are as follows:
USD`：`	32.717
RMB`：`4.4733
JPY`：`	0.2086

Statement of Financial Assets at Fair Value through

Profit or Loss - Current

Name of financial instrument	Description Yuanta Wan Tai Money Market Fund Yuanta De Bao Money Market Fund	Shares/ Stocks in thousand Acquisition Cost 18,354 $ 289,014 19,329 240,735 $ 529,749	Fair Value Units Price Amount Collateral 15.77 289,508 None 12.52 242,012 None 531,520
			Units Price 15.77 12.52
Financial assets at fair value through profit or loss, mandatorily measured at fair value – Beneficiary certificate

~64~

Raydium Semiconductor Corporation

Statement of Financial Assets at Fair Value through Other Comprehensive Income - Current

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Name of financial instrument Listed stocks	Description Stocks of Darfon Electronics Corp.	Shares in thousand 203	Acquisition Cost $ 16,754	Fair Value Units Price Amount Collateral 43.55 8,849 None
				Units Price 43.55

Statement of Accounts Receivable, Net

(Expressed in thousands of New Taiwan Dollars)

Client name Z Company AD Company AF Company AE Company AC Company X Company Other Less`：`loss allowance	Description Amount Operation $ 448,893 Operation 388,813 Operation 170,287 Operation 162,440 Operation 150,125 Operation 149,591 Operation 576,802 Operation (130,522) $ 1,916,429

Note1: Accounts receivable from related parties were not included in the above payment; for details, please refer to note 7 of the parent-company-only financial statements.

Note2: Individual customer whose balances are less than 5% of the amount of account balance will not be listed separately.

~65~

Raydium Semiconductor Corporation

Statement of Inventories

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item Finished goods Less: provision for inventory obsolescences Subtotal Work in progress Less: provision for inventory obsolescences Subtotal	Amount Cost Net Realizable Value Notes $ 615,987 730,911 Please refer to note 4 (7) (138,976) of the parent-company- only financial statements for the net realizable value of inventory. 477,011 2,177,144 3,146,339 (352,443) 1,824,701 $ 2,301,712 3,877,250
	Cost $ 615,987 (138,976) 477,011 2,177,144 (352,443) 1,824,701 $ 2,301,712

Statement of Other Financial Asset – Current and

Non-Current

For related information, please refer to note 6 (9) “Other Financial Asset – Current and Non-Current” of the parent-company-only financial statements.

~66~

Raydium Semiconductor Corporation

Statement of Movement in Financial Assets at Fair Value through Profit or

Loss– Non-Currentt

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Name of Financial Instrument CDIB-TEN Capital Limited Partnership	Beginning Balance Shares Fair Value - $ -	Increase in Current Period Shares Amount - 35,000	Decrease in Current Period Shares Amount - -	Evaluation of Profit and Loss Amount -	Ending Balance Shares Fair Value - 35,000	Collateral Notes None
		Shares -	Shares -		Shares -

~67~

Raydium Semiconductor Corporation

Statement of Movement in Financial Assets at Fair Value through Other

Comprehensive Income – Non-Current

December 31, 2024

(Expressed in thousands of New Taiwan Dollars, in thousands shares or units)

Name of Financial Instrument AUO SiCEV Electronics Co., Ltd PlayNitride Inc. Neuchips Inc. ARK Semiconductor Inc.	Beginning Balance Shares Fair Value 14,459 $ 262,424 8,943 50,223 470 46,436 2,000 64,294 - - $ 423,377	Increase in Current Period Shares Amount - - - - - - - - 1,983 256,160 256,160	Decrease in Current Period Shares Amount - 13,012 - - 200 21,600 - - - - 34,612		Evaluation of Profit and Loss Amount (37,593) (27,384) 29,164 (64,294) 5,576 (94,531)	Ending Balance Shares Fair Value 14,459 211,819 8,943 22,839 270 54,000 2,000 - 1,983 261,736 550,394	Collateral Notes None None None None None
		Shares - - - - 1,983	Shares - - 200 - -			Shares 14,459 8,943 270 2,000 1,983

~68~

Raydium Semiconductor Corporation

Statement of Other Asset – Current and Non-

Current

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

For related information, please refer to note 6 (10) “Other Asset – Current and Non-Current” of the parent-company-only financial statements.

~69~

Raydium Semiconductor Corporation

Statement of Movement in Investments Accounted for Using the Equity Method

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars, in thousands shares)

Name of investee Raydium Semiconductor (SAMOA) Corp.	Beginning Balance Shares Amount 8,100 $ 40,683	Addition Shares Amount - -	Investment Profit or Loss 98,853	Cumulative translation differences 2,508	Ending Balance Shares Percentage of Ownership Amount 8,100 % 100.00 142,044	Ending Balance Shares Percentage of Ownership Amount 8,100 % 100.00 142,044	Market Value or Net Assets Value Unit Price Total Amount Collateral - 142,044 None
	Shares	Shares -			Shares	Percentage of Ownership % 100.00	Unit Price -
	8,100				8,100

~70~

Raydium Semiconductor Corporation

Statement of Movement in Property, Plant and Equipment

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

For related information, please refer to note 6 (6) “Property, Plant and Equipment” of the parent-company-only financial statements.

Statement of Movement in Intangible Assets

For related information, please refer to note 6 (8) “Intangible Assets” of the parent-company-only financial statements.

Statement of Movement in Right-of-Use Assets

For related information, please refer to note 6 (7) “Right-of-Use Assets” of the parent-company-only financial statements.

~71~

Raydium Semiconductor Corporation

Statement of Movement in Deferred Tax Assets

For related information, please refer to note 6 (16) “Deferred Tax Assets”

of the parent-company-only financial statements.

Statement of Accounts Payable

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

		Amount
Vendor L	$	740,632
Vendor A		495,059
Vendor G		245,142
Vendor B		234,590
Vendor D		227,559
Vendor M		173,209
Vendor N		156,579
Other (Note)		784,192
	$	3,056,962

Note : Individual vendor who has less than 5% of the account balance will not be listed separately.

~72~

Raydium Semiconductor Corporation

Statement of Other Current Liabilities

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item Guarantee deposits received Provision for sales return and allowance Labor/Health Insurance and Pension payable Other (Note)	Description Amount Operation $ 327,170 Operation 176,726 Operation 83,451 442,936 $ 1,030,283

Note: Individual amount which was less than 5% of the account balance will not be listed separately.

Statement of Deferred Tax Liabilities

For related information, please refer to note 6 (16) “Deferred Tax Liabilities” of the parent-company-only financial statements.

~73~

Raydium Semiconductor Corporation

Statement of Operating Revenue

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item Display driver IC Others	Quantity (thousand) Amount 512,806 $ 21,577,379 63,032 780,182 $ 22,357,561

Note: Individual amount which was less than 10% of the account balance will not be listed separately.

~74~

Raydium Semiconductor Corporation Statement of Operating Costs December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item		Amount
Raw materials
Beginning balance of raw materials	$	-
Add: Purchase		12,193,570
Less: Department’s transfer to expense and others		(990,136)
Sales of raw materials		(13)
Raw materials used		11,203,421
Manufacturing overhead		4,377,382
Manufacturing cost		15,580,803
Add: Beginning balance of work in process		2,029,230
Purchase		964
Less: Ending balance of work in process		(2,177,144)
Department’s transfer to expense and others		(103,647)
Write-off of inventories		(72,370)
Cost of finished goods		15,257,836
Add: Beginning balance of finished goods		561,066
Less: Ending balance of finished goods		(615,987)
Department’s transfer to expense and others		(12,536)
Write-off of inventories		(46,823)
Cost of goods sold		15,143,556
Add: Cost of raw materials sold		13
Add: Other operating cost		358,016
Add: provision for inventory obsolescences		(120,997)
Cost of sales	$	15,380,588

~75~

Raydium Semiconductor Corporation

Statement of Selling Expenses

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

		Amount
Salary	$	320,799
Commission expense		224,325
Others (Note)		19,219
	$	564,343

Note: Individual amount which was less than 5% of the account balance will not be listed separately.

Statement of Administrative Expenses

		Amount
Salary	$	179,686
Depreciation expense		54,408
Park management fee		39,757
Rental expense		37,048
Stock operation expense		33,545
Remuneration to directors		30,471
Amortization expense		30,034
Others (Note)		122,698
	$	527,647

Note: Individual amount which was less than 5% of the account balance will not be listed separately.

~76~

Raydium Semiconductor Corporation

Statement of Research and Development Expenses

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

		Amount
Salary	$	2,427,251
Miscellaneous purchases		421,787
Others (Note)		941,309
	$	3,790,347

Note: Individual amount which was less than 5% of the account balance will not be listed separately.

Statement of Other Gains and Losses

For related information, please refer to note 6 (20) “Other gains and losses” of the parent-company-only financial statements.

~77~

AI assistant

Raydium — Audit Report / Information 2024

52350_rns_2024-12-31_ead11298-d3e9-4608-acfa-4507ca15ab30.pdf

Raydium Semiconductor Corporation

Table of Contents

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Valuation of inventories

Description of key audit matter:

How the matter was addressed in our audit:

Description of key audit matter:

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

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

KPMG

Notes to Readers

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Raydium Semiconductor Corporation

Balance Sheets

December 31, 2024 and 2023

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Raydium Semiconductor Corporation

Statements of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

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

Raydium Semiconductor Corporation Statements of Changes in Equity For the Years Ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) Raydium Semiconductor Corporation Statements of Cash Flows For the Years Ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Notes to the Financial Statements

For the years ended December 31, 2024 and 2023

1. Company History

2. Date and Procedures of Authorization of Financial Statements for Issue:

3. Application of Newly Issued or Revised Standards and Interpretations:

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

4. Summary of material accounting policies:

Raydium Semiconductor Corporation Notes to the Financial Statements

B. Functional and presentation currency

(3) Foreign currencies

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

(b) Financial assets at FVOCI

(c) Financial assets at FVTPL

(d) Impairment of financial assets

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

(e) Derecognition of financial assets

(a) Classification of debt or equity

(b) Financial liabilities

(c) Derecognition of financial liabilities

(7) Inventories

Raydium Semiconductor Corporation Notes to the Financial Statements

(8) Investment in subsidiaries

Raydium Semiconductor Corporation Notes to the Financial Statements

(10) Leases

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

(13) Provisions

(14) Revenue from contracts with customers

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

C. Short-term employee benefits

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

(19) Operating segments information

5. Significant Accounting Judgments, and Major Sources of Estimation and Assumptions Uncertainty:

Valuation of inventories

Raydium Semiconductor Corporation Notes to the Financial Statements

6. Explanation of significant accounts

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

Raydium Semiconductor Corporation Notes to the Financial Statements

(5) Investments accounted for using equity method

(6) Property, plant and equipment

Raydium Semiconductor Corporation Notes to the Financial Statements

(8) Intangible assets

Raydium Semiconductor Corporation Notes to the Financial Statements

A. Amortization

Raydium Audit Report / Information 2024