Stock Code:3592

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Financial Statements

With Independent Auditors’ Report

For the Years Ended December 31, 2025 and 2024

Address: 2F, No. 23, Li-Hsin Rd., Hsinchu Science Park, Hsinchu City, Taiwan

Telephone: (03)666-1818

The independent auditors’ report and the accompanying consolidated 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 consolidated financial statements, the Chinese version shall prevail.

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Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4
5. Consolidated Balance Sheets	5
6. Consolidated Statements of Comprehensive Income	6
7. Consolidated Statements of Changes in Equity	7
8. Consolidated Statements of Cash Flows	8
9. Notes to the Consolidated Financial Statements
(1) Company history	9
(2) Date and procedures of authorization of financial statements for issue	9
(3) Application of newly issued or revised standards and interpretations	9~11
(4) Summary of material accounting policies	11~25
(5) Significant accounting judgments, and major sources of estimation and assumptions uncertainty	25~26
(6) Explanation of significant accounts	26~57
(7) Related-party transactions	57~60
(8) Pledged assets	60
(9) Significant contingencies and unrecognized commitments	60
(10) Significant disaster losses	60
(11) Subsequent events	60
(12) Others	60
(13) Other disclosures
(a) Information on significant transactions	61~62
(b) Information on investees	62
(c) Information on investment in Mainland China	62~63
(14) Segment information	63~64

Representation Letter

The entities that are required to be included in the consolidated financial statements of Raydium Semiconductor Corporation as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, “Consolidated Financial Statements” endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, Raydium Semiconductor Corporation and Subsidiaries do not prepare a separate set of consolidated financial statements.

Hereby declare

Company name: Raydium Semiconductor Corporation
Chairman: Huang, Yu-Kuo
Date: February 24, 2026

KPMG

多信建業聯合會計師事務所

KPMG

新竹市科學園區300091展第一路11號

No. 11, Prosperity Road I, Hsinchu Science Park,

Hsinchu, 300091, Taiwan (R.O.C.)

電話 Tel +886 3 579 9955

傳真 Fax +886 3 563 2277

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Raydium Semiconductor Corporation:

Opinion

We have audited the consolidated financial statement of Raydium Semiconductor Corporation (the “Company”) and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statements Audits 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 Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Based on our judgment, the key audit matters should be reflected in our report are as follows:

Valuation of inventories

Please refer to note 4(8) 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 consolidated financial statements.

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

KPMG

Description of key audit matter:

The Group 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 meetings 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 on revenue recognition; and note 6(18) "Revenues from contracts with customers" for revenue recognition.

Description of key audit matter:

The Group 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 term agreed with the customers. The Group 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 year end product 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 Group'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 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.

Other Matter

The Company has prepared its parent-company-only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unqualified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IASs, IFRIC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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KPMG

In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated 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 consolidated 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 Group’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 Group’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 consolidated 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 Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated 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 entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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KPMG

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated 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 Chun-Yuan Wu.

KPMG

Taipei, Taiwan (Republic of China)
February 24, 2026

Notes to Readers

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

The independent auditors' report and the accompanying consolidated 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 consolidated financial statements, the Chinese version shall prevail.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2025		December 31, 2024			Liabilities and Equity		December 31, 2025		December 31, 2024
		Amount	%	Amount	%		Current liabilities:	Amount	%	Amount	%
Current assets:							Short-term borrowings (note 6(10))	$ 860,344	4	130,868	1
1100	Cash and cash equivalents (note 6(1))	$ 3,096,560	16	5,485,507	27	2100	Financial liabilities at fair value through profit or loss - current (note 6(2))	2,004	-	-	-
1110	Financial assets at fair value through profit or loss - current (note 6(2))	668,479	3	531,520	3	2120	Contract liabilities - current (note 6(18))	20,735	-	296,881	1
1120	Financial assets at fair value through other comprehensive income - current (note 6(2))	6,085	-	8,849	-	2130	Accounts payable	3,294,923	17	3,139,021	15
1170	Accounts receivable, net (note 6(3))	2,132,923	11	1,976,863	10	2170	Salaries and bonuses payable	2,155,852	11	2,625,802	13
1180	Accounts receivable - related parties, net (notes 6(3) and 7)	1,684,342	9	1,687,547	8	2200	Other payables - related parties (note 7)	10,627	-	2,807	-
130X	Inventories (note 6(4))	2,284,130	11	2,318,546	11	2220	Current tax liabilities	62,913	-	247,404	1
1476	Other financial assets - current (notes 6(1), (3), (8) and 8)	7,265,722	37	6,175,530	30	2230	Provisions - current (note 6(12))	94,692	1	113,557	1
1479	Other current assets (notes 6(9) and 7)	197,403	1	149,104	1	2300	Other current liabilities (notes 6(11), (14), 7 and 9)	1,192,213	6	1,040,010	5
		17,335,644	88	18,333,466	90			7,694,303	39	7,596,350	37
Non-current assets:							Non-current liabilities:
1510	Financial assets at fair value through profit or loss - non-current (note 6(2))	67,978	-	35,000	-	2550	Provisions - non-current (note 6(12))	189,383	1	227,114	1
1517	Financial assets at fair value through other comprehensive income - non-current (note 6(2))	248,375	1	550,394	3	2570	Deferred tax liabilities (note 6(15))	9,266	-	7,774	-
1600	Property, plant and equipment (notes 6(5), 7 and 9)	567,644	3	409,274	2	2580	Lease liabilities - non-current (note 6(11))	88,154	-	7,433	-
1755	Right-of-use assets (note 6(6))	136,498	1	13,120	-	2640	Net defined benefit liability - non-current (note 6(13))	1,090	-	-	-
1780	Intangible assets (note 6(7))	646,374	3	511,807	3
1840	Deferred tax assets (note 6(15))	278,669	2	260,935	1
1980	Other financial assets - non-current (note 6(8))	4,536	-	3,577	-
1900	Other non-current assets (notes 6(9) and 13)	373,525	2	304,358	1	3110	Equity (note 6(16)):
		2,323,599	12	2,088,465	10	3200	Common stock	758,552	4	758,552	4
						3300	Capital surplus	4,712,933	24	4,712,933	23
						3400	Retained earnings	6,462,155	33	6,737,706	33
							Other equity	(413,783)	(2)	(116,686)	(1)
							Total equity	11,519,857	59	12,092,505	59
							Total liabilities and equity	$ 19,659,243	100	20,421,931	100
	Total assets	$ 19,659,243	100	20,421,931	100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

		2025		2024
		Amount	%	Amount	%
4000	Operating revenue(notes 6(18), 7 and 14)	$ 22,397,169	100	24,376,802	100
5000	Operating costs (notes 6(4), (5), (7), (12), (13), (20) and 12)	16,010,423	71	17,063,862	70
	Gross profit from operations	6,386,746	29	7,312,940	30
	Operating expenses (notes 6(3), (5), (6), (7), (13), (20), 7 and 12):
6100	Selling expenses	513,585	2	599,798	3
6200	General and administrative expenses	524,684	2	556,897	2
6300	Research and development expenses	3,851,628	18	3,957,835	16
6450	Expected credit impairment (gains) losses	(27,130)	-	69,827	-
	Total operating expenses	4,862,767	22	5,184,357	21
	Operating income	1,523,979	7	2,128,583	9
	Non-operating income and expenses (notes 6(19) and 7):
7010	Other income	51,862	-	56,581	-
7020	Other gains and losses	(133,433)	(1)	117,369	-
7050	Finance costs	(19,144)	-	(17,023)	-
7100	Interest income	143,310	1	139,468	1
		42,595	-	296,395	1
	Income before income tax	1,566,574	7	2,424,978	10
7950	Less: Income tax expenses (note 6(15))	183,188	1	325,989	1
	Net income	1,383,386	6	2,098,989	9
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(13))	(1,665)	-	708	-
8316	Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income (note 6(16))	(318,408)	(1)	(86,091)	(1)
8349	Less: Income tax related to items that will not be reclassified to profit or loss (note 6(15))	(48,224)	-	(11,744)	-
	Total item that will not be reclassified subsequently to profit or loss	(271,849)	(1)	(73,639)	(1)
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translation of foreign operations (note 6(16))	(249)	-	2,508	-
8399	Less: Income tax related to items that may be reclassified to profit or loss (note 6(15))	(50)	-	502	-
	Total items that may be reclassified subsequently to profit or loss	(199)	-	2,006	-
8300	Other comprehensive loss, net of tax	(272,048)	(1)	(71,633)	(1)
8500	Total comprehensive income	$ 1,111,338	5	2,027,356	8
	Earnings per share (New Taiwan Dollars) (note 6(17))
9750	Basic earnings per share	$ 18.24		27.67
9850	Diluted earnings per share	$ 17.91		27.25

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Common stock	Capital surplus	Retained earnings				Exchange differences on translation of foreign operations	Other equity Unrealized losses from financial assets at fair value through other comprehensive income	Subtotal	Total equity
			Legal reserve	Special reserve	Unappropriated earnings	Subtotal
Balance as of January 1, 2024	$ 758,552	4,712,933	1,846,609	-	3,933,795	5,780,404	(474)	(33,267)	(33,741)	11,218,148
Net income	-	-	-	-	2,098,989	2,098,989	-	-	-	2,098,989
Other comprehensive income (loss)	-	-	-	-	708	708	2,006	(74,347)	(72,341)	(71,633)
Total comprehensive income (loss)	-	-	-	-	2,099,697	2,099,697	2,006	(74,347)	(72,341)	2,027,356
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	145,397	-	(145,397)	-	-	-	-	-
Special reserve appropriated	-	-	-	33,741	(33,741)	-	-	-	-	-
Cash dividends on ordinary shares	-	-	-	-	(1,152,999)	(1,152,999)	-	-	-	(1,152,999)
Disposal of investments in equity instruments measured at fair value through other comprehensive income	-	-	-	-	10,604	10,604	-	(10,604)	(10,604)	-
Balance as of December 31, 2024	758,552	4,712,933	1,992,006	33,741	4,711,959	6,737,706	1,532	(118,218)	(116,686)	12,092,505
Net income	-	-	-	-	1,383,386	1,383,386	-	-	-	1,383,386
Other comprehensive loss	-	-	-	-	(1,665)	(1,665)	(199)	(270,184)	(270,383)	(272,048)
Total comprehensive income (loss)	-	-	-	-	1,381,721	1,381,721	(199)	(270,184)	(270,383)	1,111,338
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	211,030	-	(211,030)	-	-	-	-	-
Special reserve appropriated	-	-	-	82,944	(82,944)	-	-	-	-	-
Cash dividends on ordinary shares	-	-	-	-	(1,683,986)	(1,683,986)	-	-	-	(1,683,986)
Disposal of investments in equity instruments measured at fair value through other comprehensive income	-	-	-	-	26,714	26,714	-	(26,714)	(26,714)	-
Balance as of December 31, 2025	$ 758,552	4,712,933	2,203,036	116,685	4,142,434	6,462,155	1,333	(415,116)	(413,783)	11,519,857

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
Raydium Semiconductor Corporation and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from operating activities:
Income before income tax	$ 1,566,574	2,424,978
Adjustments for:
Depreciation expense	118,753	190,945
Amortization expense	336,695	199,010
Expected credit impairment (gains) losses	(27,130)	69,827
Net gains on financial assets and liabilities at fair value through profit or loss	(6,318)	(7,447)
Interest expense	19,144	17,023
Interest income	(143,310)	(139,468)
Dividend income	(406)	(813)
Gains on disposal of property, plant and equipment	(352)	(11,092)
Provision for inventory obsolescence and devaluation loss recognized (reversed)	60,273	(107,314)
Other non-cash-related (gain) loss	(58,402)	402,766
Income and expense adjustments	298,947	613,437
Changes in operating assets and liabilities:
Financial assets at fair value through profit or loss	(126,615)	109,000
Accounts receivable (including related parties)	(125,725)	(746,913)
Inventories	(25,856)	(182,426)
Other financial assets	435,518	35,095
Other operating assets	(48,299)	(11,139)
Contract liabilities	(276,146)	(231,081)
Accounts payable (including related parties)	163,722	540,986
Other operating liabilities	(454,178)	606,554
Total changes in operating assets and liabilities	(457,579)	120,076
Total adjustments	(158,632)	733,513
Cash flows generated from operations	1,407,942	3,158,491
Interest received	144,731	135,842
Dividend received	406	813
Interest paid	(18,799)	(17,400)
Income taxes paid	(335,647)	(325,116)
Net cash provided by operating activities	1,198,633	2,952,630
Cash flows from investing activities:
Acquisition of financial assets at fair value through other comprehensive income	(73,908)	(256,160)
Proceeds from disposal of financial assets at fair value through other comprehensive income	55,875	32,204
Return of capital from investments in financial assets at fair value through other comprehensive income	4,407	13,012
Acquisition of financial assets at fair value through profit or loss	(35,000)	(35,000)
Acquisition of property, plant and equipment	(250,587)	(120,109)
Proceeds from disposal of property, plant and equipment	498	11,545
Increase in intangible assets	(435,062)	(347,760)
Increase in other non-current assets	(69,731)	(36,083)
Increase in other financial assets	(1,537,427)	(206,302)
Net cash used in investing activities	(2,340,935)	(944,653)
Cash flows from financing activities:
Increase (decrease) in short term borrowings	728,310	(466,230)
Decrease in guarantee deposits received	(277,450)	(277,450)
Repayments of the principal portion of lease liabilities	(12,250)	(7,879)
Cash dividends paid	(1,683,986)	(1,152,999)
Net cash used in financing activities	(1,245,376)	(1,904,558)
Effect of exchange rate changes on cash and cash equivalents	(1,269)	1,829
Net (decrease) increase in cash and cash equivalents	(2,388,947)	105,248
Cash and cash equivalents at beginning of the period	5,485,507	5,380,259
Cash and cash equivalents at end of the period	$ 3,096,560	5,485,507

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

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

Company history:

Raydium Semiconductor Corporation (the "Company") was organized and approved under the Company Act of the Republic of China (ROC) 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, ROC. 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 and its subsidiaries (hereinafter referred to as the Group) 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.

Date and procedures of authorization of financial statements for issue:

These consolidated financial statements for the years ended December 31, 2025 and 2024 were authorized for issuance by the Board of Directors of the Company on February 24, 2026.

Application of newly issued or revised standards and interpretations:

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

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

Amendments to IAS 21 "Lack of Exchangeability"

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

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

IFRS 17 "Insurance Contracts" and amendments to IFRS 17 "Insurance Contracts"
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(3) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

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

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

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

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

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

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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

The Group 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 consolidated financial statements:

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

4. Summary of material accounting policies:

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

(1) Statement of compliance

The consolidated 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”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C. (altogether referred to “IFRS Accounting Standards” endorsed by the “FSC”).

(2) Basis of preparation

A. Basis of measurement

The consolidated 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.

B. Functional and presentation currency

The functional currency of the Group entity is determined based on the primary economic environment in which the entity operates. The consolidated 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.

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(3) Basis of consolidation

A. Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and the entities controlled by the Company (its subsidiaries).

The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Total comprehensive income (loss) of subsidiaries is attributed to the shareholders of the Company.

B. List of subsidiaries in the consolidated financial statements

The list of subsidiaries are included in the consolidated financial statements :

Name of investor	Name of subsidiary	Principal activity	Percentage of ownership		Description
			December 31, 2025	December 31, 2024
the Company	Raydium Semiconductor (SAMOA) Corp. (RSA)	Investment holding company	100.00 %	100.00 %
RSA	Raydium Semiconductor (Kunshan) Co., Ltd (RKS)	Development, design and sale of the IC	100.00 %	100.00 %
RSA&RKS	Raydium Semiconductor (Hefei) Co., Ltd (RHF)	Development, design and sale of the IC	100.00 %	- %	Note 1

Note 1: RHF was jointly established by RSA and RKS through a joint investment in March 2025.

C. List of subsidiaries which are not included in the consolidated financial statements: None.

(4) 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”.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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.

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

The Group classified 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.

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

A. It is expected to be settled in the normal operating cycle;

B. It is held the liability primarily for the purpose of trading;

C. It is due to be settled within twelve months after the reporting period; or

D. The Group 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.

(6) 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.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(7) Financial instruments

A. Financial assets

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

The Group 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.

(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 Group, therefore, those receivables are measured at FVOCI.

On initial recognition of an equity investment that is not held for trading, the Group 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.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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 Group’s right to receive payment is established.

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

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 Group 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.

The Group 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 Group is exposed to credit risk.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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 Group in accordance with the contract and the cash flows that the Group 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 Group 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 Group’s historical experience and informed credit assessment, as well as forward-looking information.

In the circumstance that a financial asset is past due or the borrower is unlikely to pay its credit obligations to the Group in full, the Group 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 Group 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 Group 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 Group’s procedures for recovery of amounts due.

(e) Derecognition of financial assets

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

B. Financial liabilities and equity instruments

(a) Classification of debt or equity

Debt and equity instruments issued by the Group 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.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(b) Financial liabilities

Financial liabilities that are not classified as held-for-trading or designed 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.

The Group 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 Group 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.

(8) 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.

(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 Group.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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.

(10) Leases

A. Identifying a lease

At inception of a contract, the Group 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 Group 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 Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
(c) the Group has the right to direct the use of an asset if either:

The Group 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 Group has the right to operate the asset without the supplier having the right to change those operating instructions; or
the Group designs the asset in a way that predetermines how and for what purpose it will be used.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

At inception or on reassessment of a contract that contains a lease component, the Group 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 Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

B. As a lessee

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

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

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. Discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group 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 Group’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 the assessment on whether the Group will exercise an extension or termination option; or
(e) there is modifications of the subject, scope, or other terms of the lease.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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

(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 Group 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 Group 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.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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 software: 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 Group 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.

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 cash-generating 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.

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(13) Provisions

A provision is recognized when the Group has a present obligation arising from a past event, it is probable that the Group 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 Group expects to be entitled in exchange for transferring goods or services to a customer. The Group 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 Group’s main types of revenue are explained below.

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 Group has objective evidence that all criteria for acceptance have been satisfied.

When the Group 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 Group 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 Group expects that the length of time when the Group 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.

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Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(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 Group’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 Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, 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 Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to 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 Group 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 Group 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.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based 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 Group 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.

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

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 Group 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 reserve, 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 Group 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.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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 Group 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 dilutive potential 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.

(19) Operating segments information

An operating segment is a component of the Group that engages in business activities from which it may incur revenues and earn expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

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

In preparation these consolidated 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 judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

Valuation of inventories

Inventories are stated at the lower of cost or net realizable value, the Group 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 in 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.

~26~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

The Group’s accounting policies and disclosures include the fair value measurement for financial and non-financial assets and liabilities. The financial management center of the Group is responsible for performing fair value verification, bringing the evaluation results to market with independent, reliable and represent the executable price information, the Group 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 Group 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 Group recognizes the transfer on the reporting date. For the assumption used in fair value measurement, please refer to note 6(21).

6. Explanation of significant accounts:

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Demand deposits	$ 1,957,510	1,386,457
Time deposits	1,139,050	4,099,050
	$ 3,096,560	5,485,507

Please refer to note 6(21) for the credit risk, interest rate risk and sensitivity analysis of the financial assets of the Group.

As of December 31, 2025 and 2024, the time deposits with original maturities of more than three months amounted to $5,350,000 thousand and $3,750,000 thousand, respectively, which were classified as other financial assets-current; please refer to note 6(8).

(2) Financial assets and liabilities at fair value through profit or loss

A. Financial assets at fair value through profit or loss (“FVTPL”) — current

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss, mandatorily measured at fair value
Beneficiary certificate	$ 668,479	531,520

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. Financial assets at fair value through profit or loss — non-current

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss, mandatorily measured at fair value
Venture capital funds	$ 67,978	35,000

C. Financial assets at fair value through other comprehensive income (“FVOCI”) — current

	December 31, 2025	December 31, 2024
Listed stocks	$ 6,085	8,849

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

	December 31, 2025	December 31, 2024
Listed stocks	$ 177,118	265,819
Unlisted stocks	71,257	284,575
	$ 248,375	550,394

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

The Group sold part of its holdings measured at fair value through other comprehensive income in 2025, with the disposal price of $55,875 thousand, resulting in the realized gain of $26,714 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.

E. Financial liabilities at fair value through profit or loss — current

	December 31, 2025	December 31, 2024
Held-for-trading financial liabilities
Forward foreign exchange contracts	$ 2,004	-

The Group uses derivative financial instruments to hedge certain foreign exchange risks arising from its operating activities. The following derivative instruments, without the application of hedge accounting were recognized as held-for-trading financial liabilities:

	December 31, 2025
	Notional principal (thousand)		Currency	Maturity period
Forward foreign exchange contracts	USD	20,000	USD to TWD	March 2026

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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

	December 31, 2025	December 31, 2024
Accounts receivable—measured at amortized cost	$ 3,649,642	3,698,369
Accounts receivable measured at fair value through other comprehensive income	271,015	96,563
Less: loss allowance	(103,392)	(130,522)
	$ 3,817,265	3,664,410

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

The Group 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 loss allowance provision of customers was determined as follows:

	December 31, 2025
	Carrying amounts of accounts receivable	Weighted-average loss rate	Loss allowance for life time expected credit losses
Past due less than 90 days	$ 3,918,105	1-10%	101,225
Past due more than 91 days	2,552	10-100%	2,167
	$ 3,920,657		103,392
	December 31, 2024
	Carrying amounts of accounts receivable	Weighted-average loss rate	Loss allowance for life time expected credit losses
Past due less than 90 days	$ 3,792,539	1-10%	128,129
Past due more than 91 days	2,393	10-100%	2,393
	$ 3,794,932		130,522

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

	For the years ended December 31,
	2025	2024
Beginning balance	$ 130,522	60,695
Impairment loss (reversed) recognized	(27,130)	69,827
Ending balance	$ 103,392	130,522

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

The Group entered into an agreement with banks to factor certain of its accounts receivable. According to the agreement, within the factoring line, the Group does not have to ensure the ability of debtors to pay when transferring the rights and obligations. As of December 31, 2025 and 2024, the Group reclassified accounts receivable that met the derecognition terms to other receivables (recorded in other financial asset—current) as follows:

(In Thousands of New Taiwan Dollars)

December 31, 2025

Buyer	Factoring quota	Derecognition amount	Advanced Amount	Service fees	Transfer terms	Guaranteed promissory notes
Taipei Fubon Bank	USD 127,500	USD 52,588	-	0.22%	Notes 1 to 3	None

December 31, 2024

Buyer	Factoring quota	Derecognition amount	Advanced Amount	Service fees	Transfer terms	Guaranteed promissory notes
Taipei Fubon Bank	USD 151,500	USD 63,844	-	0.22%	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 Group. 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 Group informed the original debtor pursuant to accounts receivable to make payment directly to the Group’s restricted account with the purchasing bank.

As of December 31, 2025 and 2024, total outstanding receivables after the above transactions, net of fees charged by purchasing bank, of $1,653,249 thousand and $2,088,796 thousand were recognized as other current financial assets; please refer to note 6(8).

As of December 31, 2025 and 2024, the Group’s unused factoring quota amounted to $2,355,096 thousand and $2,867,829 thousand, respectively.

(4) Inventories

	December 31, 2025	December 31, 2024
Work in progress	$ 1,919,943	1,839,161
Finished goods	364,187	479,385
	$ 2,284,130	2,318,546

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

	For the years ended December 31,
	2025	2024
Cost of goods sold	$ 15,950,150	17,171,176
Provision for inventory obsolescence loss recognized (reversed)	60,273	(107,314)
	$ 16,010,423	17,063,862

As of December 31, 2025 and 2024, the Group’s inventories were not pledged as collateral.

(5) Property, plant and equipment

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

	Research equipment	Transportation equipment	Office equipment	Leasehold improvements	Construction in progress	Equipment under inspection	Total
Cost:
Balance as of January 1, 2025	$ 1,015,305	14,791	216,358	63,866	228,429	2,425	1,541,174
Additions	69,690	2,000	44,763	3,907	140,571	4,162	265,093
Disposals	(1,286)	(1,500)	(18,212)	(96)	-	-	(21,094)
Reclassification	2,425	-	-	-	-	(2,425)	-
Effect of changes in exchange rates	1,048	-	4	134	-	(221)	965
Balance as of December 31, 2025	$ 1,087,182	15,291	242,913	67,811	369,000	3,941	1,786,138
Balance as of January 1, 2024	$ 990,985	9,938	175,731	54,202	228,429	8,357	1,467,642
Additions	29,641	-	19,634	9,227	-	48,582	107,084
Disposals	(30,016)	(4,437)	-	-	-	-	(34,453)
Reclassification	24,104	9,290	20,939	190	-	(54,523)	-
Effect of changes in exchange rates	591	-	54	247	-	9	901
Balance as of December 31, 2024	$ 1,015,305	14,791	216,358	63,866	228,429	2,425	1,541,174
Accumulated depreciation:
Balance as of January 1, 2025	$ 924,749	4,270	149,078	53,803	-	-	1,131,900
Depreciation	56,901	2,841	38,915	8,626	-	-	107,283
Disposals	(1,286)	(1,354)	(18,212)	-	-	-	(20,852)
Effect of changes in exchange rates	239	-	14	60	-	(150)	163
Balance as of December 31, 2025	$ 980,603	5,757	169,795	62,489	-	(150)	1,218,494
Balance as of January 1, 2024	$ 823,730	5,598	116,240	38,392	-	-	983,960
Depreciation	130,918	2,656	32,789	15,193	-	-	181,556
Disposals	(30,016)	(3,984)	-	-	-	-	(34,000)
Effect of changes in exchange rates	117	-	49	218	-	-	384
Balance as of December 31, 2024	$ 924,749	4,270	149,078	53,803	-	-	1,131,900
Carrying amounts:
Balance as of December 31, 2025	$ 106,579	9,534	73,118	5,322	369,000	4,091	567,644
Balance as of December 31, 2024	$ 90,556	10,521	67,280	10,063	228,429	2,425	409,274
Balance as of January 1, 2024	$ 167,255	4,340	59,491	15,810	228,429	8,357	483,682

As of December 31, 2025 and 2024, the Group’s property, plant and equipment were not pledged as collateral.

~31~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(6) Right-of-use assets

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

	Buildings
Cost:
Balance as of January 1, 2025	$ 26,520
Additions	134,639
Decreases	(2,480)
Effect of changes in exchange rates	274
Balance as of December 31, 2025	$ 158,953
Balance at January 1, 2024	$ 30,525
Additions	4,695
Decrease	(9,103)
Effect of changes in exchange rates	403
Balance as of December 31, 2024	$ 26,520
Accumulated depreciation:
Balance as of January 1, 2025	$ 13,400
Depreciation	11,470
Decreases	(2,480)
Effect of changes in exchange rates	65
Balance as of December 31, 2025	$ 22,455
Balance as of January 1, 2024	$ 12,872
Depreciation	9,389
Decreases	(9,103)
Effect of changes in exchange rates	242
Balance as of December 31, 2024	$ 13,400
Carrying amounts:
Balance as of December 31, 2025	$ 136,498
Balance as of December 31, 2024	$ 13,120
Balance as of January 1, 2024	$ 17,653

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(7) Intangible assets

The cost and amortization of the intangible assets of the Group for the years ended December 31, 2025 and 2024 were as follows:

	Goodwill	Patents and technology	Computer software	Total
Cost:
Balance as of January 1, 2025	$ 237,800	106,973	544,171	888,944
Additions	-	-	471,263	471,263
Write-off	-	-	(5,357)	(5,357)
Balance as of December 31, 2025	$ 237,800	106,973	1,010,077	1,354,850
Balance as of January 1, 2024	$ 237,800	106,973	432,095	776,868
Additions	-	-	334,316	334,316
Write-off	-	-	(222,244)	(222,244)
Effect of changes in exchange rates	-	-	4	4
Balance as of December 31, 2024	$ 237,800	106,973	544,171	888,944
Accumulated amortization:
Balance as of January 1, 2025	$ -	106,973	270,164	377,137
Amortization	-	-	336,695	336,695
Write-off	-	-	(5,357)	(5,357)
Effect of changes in exchange rates	-	-	1	1
Balance as of December 31, 2025	$ -	106,973	601,503	708,476
Balance as of January 1, 2024	$ -	106,973	293,395	400,368
Amortization	-	-	199,010	199,010
Write-off	-	-	(222,244)	(222,244)
Effect of changes in exchange rates	-	-	3	3
Balance as of December 31, 2024	$ -	106,973	270,164	377,137
Carrying amounts:
Balance as of December 31, 2025	$ 237,800	-	408,574	646,374
Balance as of December 31, 2024	$ 237,800	-	274,007	511,807
Balance as of January 1, 2024	$ 237,800	-	138,700	376,500

~32~

~33~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

A. Amortization

The amortization of intangible assets for the years ended December 31, 2025 and 2024 were included in the statements of comprehensive income:

	For the years ended December 31,
	2025	2024
Operating costs	$ 426	256
Operating expenses	336,269	198,754
	$ 336,695	199,010

As of December 31, 2025 and 2024, the Group’s intangible assets were not pledged as collateral.

B. Impairment test on goodwill

The Group conducts impairment tests on goodwill. As of December 31, 2025 and 2024, 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.

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

	December 31, 2025	December 31, 2024
Discount rate	8%	8%
Revenue growth rate	5%~11%	3%~5%
Sustainable growth rate	2%	2%

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%.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(8) Other financial assets—current and non-current

	December 31, 2025	December 31, 2024
Accounts receivable factoring	$ 1,653,249	2,088,796
Restricted bank deposits	255,665	254,588
Guarantee deposits for product capacity and others	4,536	67,523
Time deposits with original maturities of more than three months	5,350,000	3,750,000
Others	6,808	18,200
	$ 7,270,258	6,179,107
Other financial assets—current	$ 7,265,722	6,175,530
Other financial assets—non-current	4,536	3,577
	$ 7,270,258	6,179,107

The Group entered into production capacity guarantee contracts with several suppliers and paid the agreed deposits.

(9) Other current and non-current assets

	December 31, 2025	December 31, 2024
Sales tax receivable and overpaid VAT	$ 127,557	115,814
Prepayments for mask and mold	371,980	303,793
Others	71,391	33,855
	$ 570,928	453,462
Other current assets	$ 197,403	149,104
Other non-current assets	373,525	304,358
	$ 570,928	453,462

(10) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured bank loans	$ 860,344	130,868
Unused credit lines	$ 1,902,866	1,992,798
Range of interest rates	2.50-4.34%	5.11%

As of December 31, 2025 and 2024, the Group’s short-term borrowings were not pledged as collateral.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(11) Lease liabilities

The carrying amounts of the Group's lease liabilities were as follows:

	December 31, 2025	December 31, 2024
Current (recorded under other current liabilities)	$ 47,735	6,067
Non-current	$ 88,154	7,433

For the maturity analysis, please refer to note 6(21) Financial Instruments.

The amounts recognized in profit or loss were as follows:

	For the years ended December 31,
	2025	2024
Interest on lease liabilities	$ 645	420
Expenses relating to short-term leases	$ 42,744	39,454

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

	For the years ended December 31,
	2025	2024
Total cash outflow for leases	$ 55,639	47,753

Buildings leases

The Group leases buildings and improvements for its office, with lease terms that typically run for 2~4 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 Group 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.

(12) Provisions

	Warranties
Balance as of January 1, 2025	$ 340,671
Provisions reversed during the year	(56,596)
Balance as of December 31, 2025	$ 284,075
Provisions – current	$ 94,692
Provisions – non-current	189,383
	$ 284,075

~36~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

	Warranties
Balance as of January 1, 2024	$ 116,113
Provisions made during the year	224,558
Balance as of December 31, 2024	$ 340,671
Provisions – current	$ 113,557
Provisions – non-current	227,114
	$ 340,671

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

(13) 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 Group were as follows:

	December 31, 2025	December 31, 2024
Present value of the defined benefit obligations	$ 3,445	1,604
Fair value of plan assets	(2,355)	(2,168)
Net defined benefit (assets) liabilities	$ 1,090	(564)

The Group 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 Group 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 Group’s Bank of Taiwan labor pension reserve account balance amounted to $2,355 thousand as of December 31, 2025. 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.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(b) Movements in present value of defined benefit obligations

The movement in present value of the defined benefit obligations of the Group for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31,
	2025	2024
Defined benefit obligations as of January 1	$ 1,604	2,113
Interest cost	25	28
Remeasurement of the net defined benefit liabilities (assets):
—Actuarial loss (gain) arising from changes in financial assumptions	1,816	(537)
Defined benefit obligations as of December 31	$ 3,445	1,604

The movements in the fair value of the defined benefit plan assets of the Group for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31,
	2025	2024
Fair value of plan assets as of January 1	$ 2,168	1,969
Interest income	34	26
Contributions made	2	2
Remeasurement on the net defined benefit assets	151	171
Fair value of plan assets as of December 31	$ 2,355	2,168

(d) Expenses (Income) recognized in profit or loss

The Group’s expenses (income) recognized in profit or loss for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31,
	2025	2024
Net expense (income) on the net defined benefit (assets) liabilities	$ (9)	2

~37~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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

The Group’s remeasurements of the net defined benefit liabilities recognized as accumulated in other comprehensive income for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31,
	2025	2024
Accumulated amount as of January 1	$ 1,621	913
Recognized for the period	(1,665)	708
Accumulated amount as of December 31	$ (44)	1,621

(f) Actuarial assumptions

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

	December 31, 2025	December 31, 2024
Discount rate	1.54 %	1.55 %
Future salary increases rate	5.00 %	5.00 %

The Group expects to make a contribution of $2 thousand to its defined benefit plans in the following year, beginning December 31, 2025.

The weighted-average duration of the defined benefits obligation is 23 years.

(g) Sensitivity analysis

If there is a change in the actuarial assumptions as of the December 31, 2025 and 2024, the impact on the defined benefit obligation would be as follows:

	Impact on the defined benefit obligations
Actuarial assumptions	Increased 0.5%	Decreased 0.5%
December 31, 2025
Discount rate	$ (363)	422
Future salary increase rate	$ 405	(353)
December 31, 2024
Discount rate	$ (78)	83
Future salary increase rate	$ 80	(76)

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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 practical, 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 Group 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 Group contributes a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation. The total pension costs of the Group’s overseas subsidiaries under their respective defined contribution plan are recognized in accordance with their local regulations.

The Group’s pension costs under the defined contribution plan were $85,189 thousand and $75,958 thousand for the years ended December 31, 2025 and 2024, respectively.

(14) Guarantee deposits received

	December 31, 2025	December 31, 2024
Deposits received for capacity guarantee	$ 471,570	817,925
Current (recorded in other current liabilities)	$ 314,380	327,170
Non-current	157,190	490,755
	$ 471,570	817,925

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

(15) Income tax

A. Income tax expenses

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

	For the years ended December 31,
	2025	2024
Current income tax expense (benefit)
Current period	$ 192,979	347,229
Adjustment for prior period	(41,823)	(8,584)
	$ 151,156	338,645

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

	For the years ended December 31,
	2025	2024
Deferred income tax expense (benefit)
Origination and reversal of temporary differences	$ 32,032	(12,656)
Income tax expense	$ 183,188	325,989

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

	For the years ended December 31,
	2025	2024
Items that will not be reclassified subsequently to profit or loss:
Unrealized losses from investments in equity instruments measured at FVOCI	(48,224)	(11,744)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	$ (50)	502

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

	For the years ended December 31,
	2025	2024
Income before income tax	$ 1,566,574	2,424,978
Income tax at the Group’s domestic tax rate	$ 313,315	484,996
Effect of tax rates differences in foreign jurisdiction	1,323	4,947
Adjustment for prior period	(41,823)	(8,584)
Income tax effect of investment tax credit	(74,779)	(100,280)
Change in unrecognized temporary differences and others	(14,848)	(55,090)
	$ 183,188	325,989

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 then 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 then current year; also, the creditable amount shall not exceed 30% of the profit seeking enterprise income tax payable in the current year. The Group’s investment credit for the year 2025 is in the process of application and the investment credit for the year 2024 is yet to be approved.

~40~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

D. Deferred income tax assets and liabilities

(a) The amounts which the Group has not recognized deductible temporary differences in deferred tax assets were as follows:

	December 31, 2025	December 31, 2024
Loss associated with investments in subsidiaries	$ 16,586	21,630

(b) The Group is entitled to loss deductions under the tax laws of each jurisdiction. The unrecognized deferred income tax asset amounts and their respective effective periods are as follows:

	December 31, 2025	December 31, 2024
Unrecognized deferred income tax assets	$ 21,970	27,144
Expiry period	2026 to 2028	2025 to 2028

	January 1, 2025	Recognized in profit or loss	Recognized in other comprehensive income	December 31, 2025
Temporary differences:
Unrealized provision for inventory obsolescence losses	$ 98,284	(7,879)	-	90,405
Unrealized foreign exchange gain or loss	13,506	(11,902)	-	1,604
Unrealized loss	68,134	6,048	-	74,182
Sales transaction fiscal and tax differences	48,153	(11,057)	-	37,096
Exchange difference on translation of foreign operations	(383)	-	50	(333)
Goodwill and valuation of financial assets	(7,391)	(1,539)	-	(8,930)
Others	32,858	(5,703)	48,224	75,379
Deferred tax income (expense)		$ (32,032)	48,274
Net deferred tax assets	$ 253,161			269,403
Reflected in balance sheet as follows:
Deferred tax assets	$ 260,935			278,669
Deferred tax liabilities	$ (7,774)			(9,266)

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

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

E. The Company’s tax returns have been examined and approved by the tax authorities through 2023.

(16) Equity

A. Issuance of common stock

As of December 31, 2025 and 2024, 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 per share.

Reconciliation of shares outstanding for 2025 and 2024 was as follows (in thousands of shares):

	For the years ended December 31,
	2025	2024
Balance as of December 31 (Balance as of January 1)	75,855	75,855

~43~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. Capital surplus

	December 31, 2025	December 31, 2024
Capital surplus	$ 4,647,881	4,647,881
Employee remuneration paid in the form of stocks	64,592	64,592
Others	460	460
	$ 4,712,933	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 earnings shall be allocated to shareholders, and the cash portion of the dividend, if any, shall not be less than 10% of the total dividends (cash and stock) distributed during the year.

The abovementioned relevant information about the Company's appropriations of earnings are available at the Market Observation Post System website.

(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.

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated 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.

The appropriations of earnings for 2024 and 2023 by way of cash dividends have been approved in the Board of Directors' meeting held on February 25, 2025 and February 26, 2024. In addition, the appropriations of earning for 2024 and 2023 by others ways have been approved in the annual shareholders' meeting held on May 28, 2023 and May 29, 2024, respectively. Details of distribution were as follows:

	2024		2023
	Amount	Dividends per share (NT$)	Amounts	Dividends per share (NT$)
Legal reserve	$ 211,030	-	145,397	-
Special reserve	82,944	-	33,741	-
Cash dividends	1,683,986	22.2	1,152,999	15.2
	$ 1,977,960		1,332,137

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

On February 24, 2026, the amount of cash dividends distributed to ordinary shareholders, at NT$14.6 per share, totalled $1,107,486 thousand; and the appropriation of the earnings for 2025 were approved by the Board of Meeting. The related information is available on the Market Observation Post System website.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

D. Other equity

Change in the amount of other equity were as follows:

	Exchange differences on translation of foreign operations	Unrealized gain (losses) on financial assets at fair value through other comprehensive income	Total
Balance as of January 1, 2025	$ 1,532	(118,218)	(116,686)
Differences on translation of foreign operations	(249)	-	(249)
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	(318,408)	(318,408)
Disposal of investments in equity instruments measured at fair value through other comprehensive income	-	(26,714)	(26,714)
Income tax effect	50	48,224	48,274
Balance as of December 31, 2025	$ 1,333	(415,116)	(413,783)
Balance as of January 1, 2024	$ (474)	(33,267)	(33,741)
Differences on translation of foreign operations	2,508	-	2,508
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	(86,091)	(86,091)
Disposal of investments in equity instruments measured at fair value through other comprehensive income	-	(10,604)	(10,604)
Income tax effect	(502)	11,744	11,242
Balance as of December 31, 2024	$ 1,532	(118,218)	(116,686)

(17) Earnings per share

	For the years ended December 31,
	2025	2024
Basic earnings per share:
Net income attributable to ordinary shareholders of the Company	$ 1,383,386	2,098,989
Weighted-average number of ordinary shares outstanding during the year (in thousands of shares)	75,855	75,855
Basic earnings per share (NT dollars)	$ 18.24	27.67

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

	For the years ended December 31,
	2025	2024
Diluted earnings per share:
Net income attributable to ordinary shareholders of the Company	$ 1,383,386	2,098,989
Weighted-average number of ordinary shares outstanding during the year (in thousands of shares)	75,855	75,855
Effect of employee stock remuneration	1,366	1,166
Weighted average number of ordinary shares outstanding (in thousands of shares)(diluted)	77,221	77,021
Diluted earnings per share (NT dollars)	$ 17.91	27.25

(18) Revenue from contracts with customers

A. Detail of revenue

	For the years ended December 31,
	2025	2024
Revenues from major regional markets:
China (including Hong Kong)	$ 18,096,005	19,419,223
Taiwan	3,467,614	4,234,364
Others	833,550	723,215
	$ 22,397,169	24,376,802
Revenue from major products:
Display Driver IC	$ 21,583,286	23,691,864
Others	813,883	684,938
	$ 22,397,169	24,376,802

B. Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities	$ 20,735	296,881	527,962

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

The amount of revenue recognized for the years ended December 31, 2025 and 2024 that were included in the contract liability balance at the beginning of the period were $293,146 thousand and $277,669 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.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(19) Non-operating income and expenses

A. Other income

	For the years ended December 31,
	2025	2024
Dividend income	$ 406	813
Others	51,456	55,768
	$ 51,862	56,581

B. Other gains and losses

	For the years ended December 31,
	2025	2024
Foreign exchange gains (losses), net	$ (140,103)	98,830
Gains on financial instruments measured at fair value through profit or loss	6,318	7,447
Others	352	11,092
	$ (133,433)	117,369

C. Finance costs

	For the years ended December 31,
	2025	2024
Interest expense—bank borrowings	$ (18,499)	(16,603)
Lease liabilities	(645)	(420)
	$ (19,144)	(17,023)

D. Interest income

	For the years ended December 31,
	2025	2024
Interest income from bank deposits	$ 143,310	139,468

(20) Remuneration to employees and directors

On May 28, 2025, the Company resolved at the shareholders' meeting to amend its Articles of Incorporation. According to the amended Articles, if the Company has profit in a given fiscal year (defined as income before tax excluding the employee and director remuneration), no less than 1% of the profit shall be allocated as employee remuneration, and no more than 1% as director remuneration. The aforementioned employee remuneration, shall be allocated no less than 1% to those base-level employees. However, if the Company had accumulated deficits, including unappropriated retained earnings adjustment, the Company should reserve an amount in advance to offset such losses.

The aforementioned shall be resolved by the Board of Directors and reported to the shareholders' meeting.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Prior to the amendment, the Articles of Association stipulated that if the Company recognized a profit for the fiscal year (defined as income before tax excluding the employee and director remuneration), no less than 1% of the profit shall be allocated as employee remuneration, and no more than 1% for director remuneration. However, if the Company had accumulated deficits, including unappropriated retained earnings adjustment, the Company should reserve an amount in advance to offset such losses.

The aforementioned shall be resolved by the Board of Directors and reported to the shareholders' meeting.

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, 2025 and 2024, the amounts of remuneration to employees (including base-level employees) were estimated at $274,133 thousand and $424,658 thousand, respectively; and those to the directors were estimated at $12,701 thousand and $18,943 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, 2025 and 2024. If there are changes in the proposed amounts after the annual consolidated 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 Director' Meeting will be used to calculate the number of stock shares.

There were no difference between the aforesaid amounts of employee and directors' remuneration approved by the Board of Directors and the amount in the 2024 parent-company-only financial statements. The estimated amount for 2025 has been approved by the Board of Directors. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(21) Financial instruments

A. Credit risk

(a) Credit risk exposure

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

~48~

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(b) Credit risk concentration

Credit risk is the risk of financial loss to the Group 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 Group due to non-performance of the counterparty mainly derived from the carrying amount of the financial assets recognized in the balance sheet of the Group.

The Group’s potential credit risk is derived primarily from cash and cash equivalents and accounts receivable. The cash is deposited in different financial institutions. The Group 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.

In addition to granting credit facilities to customers in accordance with the credit procedures, the Group will require insurance for accounts receivable from certain customer groups in order to reducing 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, 2025 and 2024, the Group’s five largest customers accounted for approximately 43% and 52% of the balance of accounts receivable (including related parties), 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.

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 of 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(7) of the consolidated financial statements for the year ended December 31, 2025 for further details on how the Group determines whether credit risk is to be low risk).

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. Liquidity risk

The contractual maturities of financial liabilities were as follows:

	Carrying amounts	Contractual cash flows	Within a year	Over 1 years
December 31, 2025
Non-derivative financial liabilities
Short-term borrowings	$ 860,344	(864,587)	(864,587)	-
Accounts payable	3,294,923	(3,294,923)	(3,294,923)	-
Salaries and bonuses payable	2,155,852	(2,155,852)	(2,155,852)	-
Other payables—related parties	10,627	(10,627)	(10,627)	-
Lease liabilities (current and non-current)	135,889	(140,801)	(50,354)	(90,447)
Guarantee deposits received (current and non-current)	471,570	(471,570)	(314,380)	(157,190)
Derivative financial liabilities
Net settlement of forward foreign exchange contracts — outflow	2,004	(2,004)	(2,004)	-
	$ 6,931,209	(6,940,364)	(6,692,727)	(247,637)
December 31, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 130,868	(131,103)	(131,103)	-
Accounts payable	3,139,021	(3,139,021)	(3,139,021)	-
Salaries and bonuses payable	2,625,802	(2,625,802)	(2,625,802)	-
Other payables—related parties	2,807	(2,807)	(2,807)	-
Lease liabilities (current and non-current)	13,500	(13,837)	(6,293)	(7,544)
Guarantee deposits received (current and non-current)	817,925	(817,925)	(327,170)	(490,755)
	$ 6,729,923	(6,730,495)	(6,232,196)	(498,299)

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

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

C. Foreign currency risk

(a) Exposure of foreign currency risk

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

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD
Financial assets
Monetary items
USD	$ 174,805	31.438	5,495,520	198,118	32.717	6,481,827
JPY	174,839	0.2008	35,108	174,828	0.2086	36,469
Financial liabilities
Monetary items
USD	$ 144,698	31.438	4,549,016	131,111	32.717	4,289,559

(b) Sensitivity analysis

The Group’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 receivables, other financial assets, short-term borrowings, accounts payable and guarantee deposits received, that are denominated in foreign currency. A strengthening (weakening) of 1% of the NTD against the USD and JPY as of December 31, 2025 and 2024, assuming that all other variables remain constant, would have increased or decreased the profit after tax by $7,853 thousand and $17,830 thousand, respectively.

As the Group 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, 2025 and 2024 were $(140,103) thousand and $98,830 thousand, respectively.

D. Interest rate analysis

An increase or decrease of 0.25% in interest rates, mainly from cash and cash equivalents, time deposits with original maturities of more than three months, 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 $3,058 thousand and $3,382 thousand for the years ended December 31, 2025 and 2024, respectively.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated 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:

	For the years ended December 31,
	2025	2024
	Other comprehensive income before tax	Other comprehensive income before tax
Prices of securities at the reporting date
Increasing 10%	$ 25,446	55,924
Decreasing 10%	$ (25,446)	(55,924)

F. Fair value of financial instruments

(a) Fair value and carrying amount

The fair values of FVTPL and FVOCI are measured on a recurring basis. The Group'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 required) were as follows:

	Carrying amounts	December 31, 2025
		Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at FVTPL—current	$ 668,479	668,479	-	-	668,479
Financial assets at FVTPL—non-current	67,978	-	-	67,978	67,978
Financial assets at FVOCI
Listed stocks	183,203	183,203	-	-	183,203
Unlisted stocks	71,257	-	-	71,257	71,257
Accounts receivable	271,015	-	271,015	-	271,015
Financial assets measured at amortized cost
Cash and cash equivalents	3,096,560	-	-	-	-
Accounts receivable (including related parties)	3,546,250	-	-	-	-
Other financial assets (current and non-current)	7,270,258	-	-	-	-
	$ 15,175,000	851,682	271,015	139,235	1,261,932
Financial liabilities at FVTPL—current	$ 2,004	-	2,004	-	2,004

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

	Carrying amounts	December 31, 2025
		Fair value
		Level 1	Level 2	Level 3	Total
Financial liabilities measured at amortized cost
Short-term borrowings	$ 860,344	-	-	-	-
Accounts payable	3,294,923	-	-	-	-
Salaries and bonuses payable	2,155,852	-	-	-	-
Other payables — related parties	10,627	-	-	-	-
Lease liabilities (current and non-current)	135,889	-	-	-	-
Guarantee deposits received (current and non-current)	471,570	-	-	-	-
	$ 6,929,205	-	-	-	-
	Carrying amounts	December 31, 2024
		Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at FVTPL—current	$ 531,520	531,520	-	-	531,520
Financial assets at FVTPL—non-current	35,000	-	-	35,000	35,000
Financial assets at FVOCI
Listed stocks	274,668	274,668	-	-	274,668
Unlisted stocks	284,575	-	-	284,575	284,575
Accounts receivable	96,563	-	96,563	-	96,563
Financial assets measured at amortized cost
Cash and cash equivalents	5,485,507	-	-	-	-
Accounts receivable (including related parties)	3,567,847	-	-	-	-
Other financial assets (current and non-current)	6,179,107	-	-	-	-
	$ 16,454,787	806,188	96,563	319,575	1,222,326
Financial liabilities measured at amortized cost
Short-term borrowings	$ 130,868	-	-	-	-
Accounts payable	3,139,021	-	-	-	-
Salaries and bonuses payable	2,625,802	-	-	-	-
Other payables — related parties	2,807	-	-	-	-
Lease liabilities (current and non-current)	13,500	-	-	-	-
Guarantee deposits received (current and non-current)	817,925	-	-	-	-
	$ 6,729,923	-	-	-	-

~53~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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

(i) Non-derivative financial instruments

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

(ii) Derivative financial instruments

Forward foreign exchange contracts are measured based on the current forward exchange rate.

(c) There was no transfer between the different levels of fair value hierarchy for the years ended December 31, 2025 and 2024.

(d) Quantified information for significant unobservable inputs used in fair value measurement (Level 3).

The Group'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 Group’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 multiple 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 are as follows:

Item	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
Financial assets at FVTPL – venture capital funds	Asset approach	● Lack of market liquidity	● The higher the level of lacking liquidity, the lower the estimate of fair value
Financial assets at FVOCI – equity investments without an active market	Market approach (comparable with price-book ratio of the peers)	● P/B ratio multiplier (1.27~8.51 and 1.37~7.94 as of December 31, 2025 and 2024, respectively)
● Discount for lack of market liquidity (30%~60% as of December 31, 2025 and 2024)	● The higher the P/B ratio, the higher the fair value
● The higher the market liquidity discount rate, the lower the fair value

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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

	Financial assets at FVTPL – venture capital funds
	For the years ended December 31,
	2025	2024
Balance as of January 1	$ 35,000	-
Addition in investments	35,000	35,000
Total gain/loss
Recognized in profit and loss	(2,022)	-
Balance as of December 31	$ 67,978	35,000
	Financial assets at FVOCI – equity investments without an active market
	For the years ended December 31,
	2025	2024
Balance as of January 1	$ 284,575	114,517
Addition in investments	73,908	256,160
Total gain/loss
Recognized in other comprehensive income	(287,226)	(86,102)
Balance as of December 31	$ 71,257	284,575

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.

(22) Financial risk management

A. Overview

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

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

The following likewise discusses the Group’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.

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Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. Structure of risk management

The significant financial activities of the Group 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 Group must comply with the relevant financial operating procedures relating to the overall financial risk management and segregation of duties. The Group, 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 Group is mainly due to receivables and cash and cash equivalents arising from operating activities; please refer to note 6(21).

D. Liquidity risk

There is no liquidity risk of being unable to raise capital to settle contract obligations since the Group has sufficient capital and working capital to fulfill its contract obligations; please refer to note 6(21).

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 Group’s income or the value of its financial instruments; please refer to note 6(21). 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 Group 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 USD, JPY, RMB, KRW and EUR.

(b) Market price risk of interest rate change: All of the Group’s assets and liabilities bear floating interest rates, and thus, cash flow is exposed to the risk of interest rate change.

(23) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Group 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.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

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

	December 31, 2025	December 31, 2024
Total liabilities	$ 8,139,386	8,329,426
Less: Cash and cash equivalents	(3,096,560)	(5,485,507)
Net debt	$ 5,042,826	2,843,919
Total equity	$ 11,519,857	12,092,505
Debt-to-equity ratio	44%	24%

(24) Financing activities of non-cash transactions

Reconciliation of liabilities arising from financing activities was as follows:

	January 1, 2025	Cash flows	Changes in foreign exchange and other	December 31, 2025
Short-term borrowings	$ 130,868	728,310	1,166	860,344
Lease liabilities	13,500	(12,250)	134,639	135,889
Guarantee deposits received	817,925	(277,450)	(68,905)	471,570
Total liabilities from financing activities	$ 962,293	438,610	66,900	1,467,803
	January 1, 2024	Cash flows	Changes in foreign exchange and other	December 31, 2024
Short-term borrowings	$ 589,278	(466,230)	7,820	130,868
Lease liabilities	16,684	(7,879)	4,695	13,500
Guarantee deposits received	1,075,130	(277,450)	20,245	817,925
Total liabilities from financing activities	$ 1,681,092	(751,559)	32,760	962,293

7. Related-party transactions

(1) Names and relationship with related parties

The following is a summary of related parties that have had transactions with the Group during the periods presented in the consolidated financial statements.

Name of related parties	Relationship with the Group
AUO Corporation (AUO)	AUO accounted for its 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

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Name of related parties	Relationship with the Group
AUO Education Service Corp. (AUES)	Subsidiary of AUO
AUO Display Plus Corporation (ADP)	Subsidiary of AUO
Space Money Inc. (S4M)	Subsidiary of AUO
AET Corporation	Subsidiary of AUO
HeilongJiang Talenda Smart Display Technology Co., Ltd (Talenda)	Subsidiary of ADP
Sungen Power Corp.	Subsidiary of AUO

(2) The Group’s significant related party transactions and balances were as follows:

A. Sales

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

Relationship	For the years ended December 31,
	2025	2024
AUOSZ	$ 2,007,189	2,155,856
AUOXM	1,254,351	1,458,353
AUO	666,427	426,289
Other related parties	187,751	224,610
	$ 4,115,718	4,265,108

For the years ended December 31, 2025 and 2024, the collection terms for sales to related parties were 60 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 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	Relationship	December 31, 2025	December 31, 2024
Receivables from related parties	AUOSZ	$ 803,549	937,697
Receivables from related parties	AUOXM	560,641	519,307
Receivables from related parties	AUO	254,651	149,305
Receivables from related parties	Other related parties	65,501	81,238
		$ 1,684,342	1,687,547

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

C. Other payables to related parties

The payables to related parties were as follows:

Account	Relationship	December 31, 2025	December 31, 2024
Other accounts payable to related parties	AUO	$ 10,596	2,291
Other accounts payable to related parties	Other related parties	31	516
		$ 10,627	2,807
Refund liabilities	Other related parties	$ 16,115	4,952

D. Other

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

	For the years ended December 31,
	2025	2024
AUO	$ 8,819	31,750

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

	For the years ended December 31,
	2025	2024
AUO	$ 43,679	33,866
Other related parties	1,480	689
	$ 45,159	34,555

	For the years ended December 31,
	2025	2024
Other related parties	849	-

(d) The prepayments to related parties were as follows:

	December 31, 2025	December 31, 2024
AUO	$ 377	7,854
Other related parties	29	-
	$ 406	7,854

(e) Cash dividend distribution from capital surplus

	For the years ended December 31,
	2025	2024
AUO	$ 4,407	13,012

Raydium Semiconductor Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(3) Key management personnel compensation

Key management personnel compensation comprised:

	For the years ended December 31,
	2025	2024
Short-term employee benefits	$ 171,131	221,301
Post-employment benefits	756	756
	$ 171,887	222,057

Pledged assets:

The carrying values of pledged assets were as follows:

Asset name	Pledged to secure	December 31, 2025	December 31, 2024
Restricted cash in bank (recognized in other financial assets – current)	Import guarantee for customs	$ 35,535	34,458
Restricted cash in bank (recognized in other financial assets – current)	Import guarantee	220,130	220,130
		$ 255,665	254,588

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 $387,450 thousand (tax included) had been paid as of December 31, 2025.

(2) The Company has entered into capacity guarantee contracts with several customers, and collects deposits and advances receipts as agreed to reserve specific production capacity to such customers.

Significant disaster losses: None.
Subsequent events: None.
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, | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 | | | 2024 | | |
| | Operating Costs | Operating Expenses | Total | Operating Costs | Operating Expenses | Total |
| Employee benefits | | | | | | |
| Salary | 163,393 | 2,859,994 | 3,023,387 | 185,308 | 3,104,681 | 3,289,989 |
| Labor and health insurance | 12,739 | 160,295 | 173,034 | 12,286 | 149,319 | 161,605 |
| Pension | 5,679 | 79,501 | 85,180 | 5,458 | 70,502 | 75,960 |
| Other employee benefits | 6,170 | 111,193 | 117,363 | 6,260 | 99,627 | 105,887 |
| Depreciation | 1,137 | 117,616 | 118,753 | 781 | 190,164 | 190,945 |
| Amortization | 426 | 336,269 | 336,695 | 256 | 198,754 | 199,010 |

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated 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 Group:

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		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	Raydium Semiconductor (Kanshan) Co., Ltd.	Subsidiary	2,303,971	628,760	628,760	434,268	-	5.46 %	5,759,929	Y	N	Y

Note 1: The maximum amount of the Group'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 Group's endorsement/guarantee for others shall not exceed 50% of the net value of the latest financial statements audited or reviewed by accountants.

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

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

Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Ending Balance				Highest Holding during the year
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value
The Company	Yuanta Wan Tai Money Market Fund	-	Financial assets at FVTPL - current	25,997	415,941	-	415,941	-
The Company	Fubon Chi-Hsiang Money Market Fund	-	"	15,232	252,538	-	252,538	-
The Company	Shares of AUO Corporation	AUO accounted for its investments in the Company using the equity method	Financial assets at FVOCI - non-current	14,459	177,118	0.19 %	177,118	-
The Company	CDIB-TEN Capital Limited Partnership	-	Financial assets at FVTPL - non-current	-	67,978	-	67,978	-

D. 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				Transactions with Terms Different from Others		Notes/Accounts Receivable (Payable)
			Purchase/ Sales	Amount	Percentage of Total Purchases/ Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/ Accounts Receivable (Payable)
The Company	AUOSZ	Subsidiary of AUO	Sales	1,876,285	9 %	EOM 120 days	Please refer to note 7	Please refer to note 7	738,237	20%
The Company	AUOXM	Subsidiary of AUO	Sales	1,235,263	6 %	EOM 120 days	Please refer to note 7	Please refer to note 7	550,334	15%
The Company	AUOKS	Subsidiary of AUO	Sales	186,542	1 %	EOM 120 days	Please refer to note 7	Please refer to note 7	65,456	2%
The Company	AUO	AUO accounted for its investment in the Company using the equity method	Sales	666,427	3 %	EOM 120 days	Please refer to note 7	Please refer to note 7	254,651	7%
RKS	AUOSZ	Subsidiary of AUO	Sales	130,904	5 %	EOM 120 days	Please refer to note 7	Please refer to note 7	65,313	9%

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

E. Receivables from related parties with amounts 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	Ending Balance	Turnover Rate	Overdue		Amounts Received in Subsequent Period (Note)	Allowance for Bad Debts
					Amount	Action Taken
The Company	AUOSZ	Subsidiary of AUO	738,237	2.33	-	On the spot collection	132,373	-
The Company	AUOXM	Subsidiary of AUO	550,334	2.38	637	On the spot collection	126,465	-
The Company	AUO	AUO accounted for its investment in the Company using the equity method	254,651	3.30	6,304	On the spot collection	67,509	-

Note: Amounts collected in subsequent period as of February 10, 2026.

F. The business relationship between the parent and the subsidiaries and significant transactions between them: None.

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

(In Thousands 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, 2025			Highest Shares of Ownership during the Year	Net income (losses) of investee	Share of Profits/ Losses of Investee	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
The Company	RSA	SAMOA	Investment Holding	329,576	248,280	10,550	100.00 %	248,310	100.00 %	25,220	25,220	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 Thousands of New Taiwan Dollars)

Investee Company	Main businesses and products	Total amount paid-in capital	Method of investment (note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investee (Note 3)	Percentage of ownership	Highest percentage of ownership during the year	Investment income (loss) (Note 3 and 5)	Carrying amounts (Note 2)	Accumulated remittance of earnings in current period
					Outflow	Inflow
RKS	Development, design and sale of the IC	245,200 (USD8,000 thousand)	2	245,200	-	-	245,200	21,949	100.00%	100.00%	21,949	162,404	-
RHF	Development, design and sale of the IC	164,919 (RMB36,000 thousand)	3	-	81,296	-	81,296	3,346	100.00%	100.00%	3,346	165,455	-

~63~

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 4)
326,496
(USD10,450 thousand)	326,496
(USD10,450 thousand)	6,911,914

Note 1: Method of investment:
1. Direct investment in Mainland China.
2. Investment in companies in Mainland China through the existing companies in SAMOA.
3. Others: Jointly established through RSA and RKS.

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 Group'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 (the "MOEA").

Note 5: The financial statements were reviewed by the parent's external accountants.

C. Significant transactions with the investees in Mainland China:

The significant inter-company transactions with the subsidiary in Mainland China for the year ended December 31, 2025, which were eliminated in the preparation of consolidated financial statements, are disclosed in "Information on significant transactions".

14. Segment information:

(1) Industry financial information

The Group mainly engages in the development, design and sales of integrate circuits. It only has a single operating segment to be reported. The Group's operating segment above is consistent with the related accounts shown in its consolidated balance sheets and consolidated statements of income. Please refer to the consolidated balance sheet and the consolidated income statement for details of departmental profit and loss, departmental information, and departmental liability information.

(2) Overall company information

A. Product information

Please refer to note 6(18) for the Revenue information by product from external customers.

B. Geographic information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers and segment assets are based on the geographical location of the assets.

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(a) Please refer to note 6(18) for the Revenue information based on geography.

(b) Non-current assets:

Geographical information (note)	December 31, 2025	December 31, 2024
Taiwan	$ 1,995,634	1,804,543
Mainland China	49,296	22,987
	$ 2,044,930	1,827,530

Note: Non-current assets excluding deferred income tax assets.

C. Major customer information

	For the years ended December 31,
	2025		2024
	Amount	% Accounted for net sales for the current period	Amount	% Accounted for net sales for the current period
AUO Group	$ 4,115,718	18	4,265,108	17
Customer Z	2,469,775	11	3,393,822	14
Customer O	2,588,857	12	3,349,810	14
Customer Y	2,035,429	9	3,101,037	13
	$ 11,209,779	50	14,109,777	58

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Raydium — Audit Report / Information 2025

52350_rns_2026-04-22_3863a441-cedd-4bf9-a05f-c9e0a460e71c.pdf

Raydium Semiconductor Corporation and Subsidiaries

Table of Contents

Representation Letter

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

4. Summary of material accounting policies:

(1) Statement of compliance

(2) Basis of preparation

A. Basis of measurement

B. Functional and presentation currency

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

C. Depreciation

(10) Leases

A. Identifying a lease

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. As a lessee

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Valuation of inventories

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

6. Explanation of significant accounts:

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(6) Right-of-use assets

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

A. Amortization

B. Impairment test on goodwill

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(13) Employee benefits

A. Defined benefit plans

(a) Composition of plan assets

Raydium Semiconductor Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries

Raydium Audit Report / Information 2025