Raydium - Interim / Quarterly Report 2025

Stock Code:3592

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Three Months Ended March 31, 2025 and 2024

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

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

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

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company History (2) Date and Procedures of Authorization of Financial Statements for Issue (3) Application of Newly Issued or Revised Standards and Interpretations (4) Summary of material accounting policies (5) Significant Accounting Judgments, and Major Sources of Estimation and Assumptions Uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant Contingencies and Unrecognized Commitments (10) Significant disaster losses (11) Subsequent events (12) Others (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8`～`10 10`～`11 12 12`～`34 35`～`37 37 38 38 38 38 39`～`40 40 40`～`41 41

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Independent Auditors’ Review Report

To the Board of Directors Raydium Semiconductor Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Raydium Semiconductor Corporation and its subsidiaries as of March 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. 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 International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Raydium Semiconductor Corporation and its subsidiaries as of March 31, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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The engagement partners on the reviews resulting in this independent auditors’ reviewreport are An-Chih Cheng and Jyun-Yuan Wu.

KPMG

Taipei, Taiwan (Republic of China) May 6, 2025

Notes to Readers

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

March 31, 2025, December 31, 2024, and March 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

March 31, 2025 Assets Amount % Current assets: 1100 Cash and cash equivalents (note 6(1)) $ 5,378,197 26 1110 Financial assets at fair value through profit or loss`－` current (note 6(2)) 753,884 4 1120 Financial assets at fair value through other comprehensive income`－`current (note 6(2)) 8,056 - 1170 Accounts receivable, net (note 6(3)) 2,089,128 10 1180 Accounts receivable`－`related parties, net (notes 6(3) and 7) 1,638,115 8 130X Inventories (note 6(4)) 2,553,320 12 1476 Other financial assets`－`current (notes 6(1), (3), (8), 8 and 9) 6,290,162 30 1479 Other current assets (notes 6(9) and 7) 203,399 1 18,914,261 91 Non-current assets: 1510 Financial assets at fair value through profit or loss`－` non-current (note 6(2)) 34,771 - 1517 Financial assets at fair value through other comprehensive income`－`non-current (note 6(2)) 363,299 2 1600 Property, plant and equipment (notes 6(5) and 9) 434,193 2 1755 Right-of-use assets (note 6(6)) 20,559 - 1780 Intangible assets (note 6(7)) 487,402 2 1840 Deferred tax assets 284,057 1 1980 Other financial assets`－`non-current (notes 6(8) and 9) 3,610 - 1990 Other non-current assets (notes 6(9) and (13)) 313,014 2 1,940,905 9 Total assets $ 20,855,166 100	December 31, 2024 Amount % 5,485,507 27 531,520 3 8,849 - 1,976,863 10 1,687,547 8 2,318,546 11 6,175,530 30 149,104 1 18,333,466 90 35,000 - 550,394 3 409,274 2 13,120 - 511,807 3 260,935 1 3,577 - 304,358 1 2,088,465 10 20,421,931 100	March 31, 2024 Amount % 5,299,128 26 665,209 3 12,659 - 1,866,507 9 1,527,327 7 1,738,667 9 6,691,393 33 396,109 2 18,196,999 89 - - 386,537 2 462,275 2 20,117 - 373,063 2 238,079 1 3,130 - 672,962 4 2,156,163 11 20,353,162 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(10)) 2130 Contract liabilities`－`current (note 6(18)) 2170 Accounts payable 2201 Salaries and bonuses payable 2216 Dividends payable(note 6(16)) 2220 Other payables`－`related parties (note 7) 2230 Current income tax liabilities 2250 Provision`－`current (note 6(12)) 2300 Other current liabilities (notes 6(11), (14), 7 and 9) Non-Current liabilities: 2527 Contract liabilities`－`non-current (note 6(18)) 2550 Provisions`－`non-current (note 6(12)) 2570 Deferred tax liabilities 2580 Lease liabilities`－`non-current (note 6(11)) 2640 Net defined benefit liability`－`non-current (note 6(13)) 2645 Guarantee deposits received (notes 6(14) and 9) Total liabilities Equity(note 6(16)): 3110 Common stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity Total equity Total liabilities and equity	March 31, 2025 Amount % $ 204,669 1 229,353 1 3,540,844 17 2,458,684 12 1,683,986 8 4,349 - 325,621 2 110,282 - 970,394 5 9,528,182 46 - - 220,564 1 8,164 - 12,286 - - - 331,820 1 572,834 2 10,101,016 48 758,552 4 4,712,933 22 5,537,712 27 (255,047) (1) 10,754,150 52 $ 20,855,166 100	December 31, 2024 Amount % 130,868 1 296,881 1 3,139,021 15 2,625,802 13 - - 2,807 - 247,404 1 113,557 1 1,040,010 5 7,596,350 37 - - 227,114 1 7,774 - 7,433 - - - 490,755 3 733,076 4 8,329,426 41 758,552 4 4,712,933 23 6,737,706 33 (116,686) (1) 12,092,505 59 20,421,931 100	March 31, 2024
					Amount % 616,770 3 409,761 2 3,166,801 15 2,279,421 11 1,152,999 6 40 - 324,623 2 34,277 - 1,013,168 5 8,997,860 44 41,794 - 68,554 - 6,452 - 12,156 - 144 - 639,800 4 768,900 4 9,766,760 48 758,552 4 4,712,933 23 5,179,865 25 (64,948) - 10,586,402 52 20,353,162 100

See accompanying notes to consolidated financial statements.

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

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

		For the three	For the three	months	endedMarch	31,
			2025		2024
			Amount	%	Amount	%
4000	Operating revenues (notes 6(18) and 7)	$	5,826,314	100	6,036,449	100
5000	Operating costs (notes 6(4), (5), (12), (13), (20) and 12)		4,105,305	70	4,247,203	70
	Gross profit from operations		1,721,009	30	1,789,246	30
	Operating expenses(notes 6(3), (5), (13), (20), 7 and 12):
6100	Selling expenses		130,073	2	153,475	3
6200	General and administrative expenses		123,185	2	131,375	2
6300	Research and development expenses		1,013,694	18	901,806	15
6450	Expected credit impairment (gain) losses		(10,249)	-	36,223	1
	Total operating expenses		1,256,703	22	1,222,879	21
	Operating income		464,306	8	566,367	9
	Non-operating income and expenses(notes 6(19) and 7):
7010	Other income		5,630	-	2,371	-
7020	Other gains and losses		33,754	-	52,953	1
7050	Finance costs		(1,022)	-	(4,350)	-
7100	Interest income		35,155	1	28,811	1
			73,517	1	79,785	2
	Income before income tax		537,823	9	646,152	11
7950	Less: Income tax expenses (note 6(15))		78,706	1	93,692	2
	Net income		459,117	8	552,460	9
8300	Other comprehensive income (loss):
8310	Items that will not be reclassified subsequently to profit or loss
8316	Unrealized losses from investments in equity instruments measured
	at fair value through other comprehensive income (note 6(16))		(138,172)	(2)	(35,194)	-
8349	Less: Income tax related to items that will not be reclassified to profit
	or loss (note 6(15))		(23,123)	-	(2,689)	-
	Total item that will not be reclassified subsequently to profit
	or loss		(115,049)	(2)	(32,505)	-
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translation of foreign operations		1,954	-	1,623	-
8399	Less: Income tax related to items that may be reclassified to profit or
	loss (note 6(15))		391	-	325	-
	Total items that may be reclassified subsequently to profit or
	loss		1,563	-	1,298	-
8300	Other comprehensive loss, net of tax		(113,486)	(2)	(31,207)	-
8500	Total comprehensive income	$	345,631	6	521,253	9
	Earnings per share (New Taiwan Dollars)(note 6(17))
9750	Basic earnings per share	$		6.05		7.28
9850	Diluted earnings per share	$		5.98		7.23

See accompanying notes to consolidated financial statements.

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

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Retained earnings	Retained earnings		Other equity	Total equity 11,218,148
			Exchange differences on translation of foreign operations (474) - 1,298 1,298 - 824 1,532 - 1,563 1,563 - - 3,095	Unrealized gains (losses) on financial assets at fair value through other comprehensive income (33,267) - (32,505) (32,505) - (65,772) (118,218) - (115,049) (115,049) - (24,875) (258,142)
Legal reserve 1,846,609 - - - - 1,846,609 1,992,006 - - - - - 1,992,006	Special reserve	Unappropriated earnings 3,933,795 552,460 - 552,460 (1,152,999) 3,333,256 4,711,959 459,117 - 459,117 (1,683,986) 24,875 3,511,965
	-
	- -				552,460 (31,207)
	-				521,253
	-				(1,152,999)
	-				10,586,402
	33,741				12,092,505
	- -				459,117 (113,486)
	-				345,631
	- -				(1,683,986) -
	33,741				10,754,150

See accompanying notes to consolidated financial statements.

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

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the three months ended March 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

		For the three months ended	For the three months ended
		March 31,
		2025	2024
Cash flows from operating activities:
Income before income tax	$	537,823	646,152
Adjustments for:
Depreciation expense		28,329	54,376
Amortization expense		83,206	42,966
Expected credit impairment (gain) loss		(10,249)	36,223
Net profit on financial assets and liabilities at fair value through profit or loss		(2,164)	(857)
Interest expense		1,022	4,350
Interest income		(35,155)	(28,811)
Gains on disposal of property, plant and equipment		-	(839)
Provision for inventory obsolescence and devaluation loss		54,086	33,532
Other non-cash-related (gain) loss		(7,135)	55,214
Income and expense adjustments		111,940	196,154
Changes in operating assets and liabilities:
Financial assets at fair value through profit or loss		(219,971)	(31,279)
Accounts receivable and other receivables (including related parties)		(52,584)	(442,733)
Inventories		(288,860)	256,607
Other financial assets		(178,991)	(807,201)
Other operating assets		(41,679)	(66,720)
Contract liabilities		(67,528)	(76,407)
Accounts payable and other payables (including related parties)		403,365	444,500
Other operating liabilities		(279,600)	(29,111)
Total changes in operating assets and liabilities		(725,848)	(752,344)
Total adjustments		(613,908)	(556,190)
Cash flow generated from operations		(76,085)	89,962
Interest received		35,596	28,883
Interest paid		(1,060)	(4,197)
Income taxes paid		(13,105)	(2,944)
Net cash provided by (used in) operating activities		(54,654)	111,704
Cash flows from investing activities:
Proceeds from disposal of financial assets at fair value through other		49,716	-
comprehensive income
Acquisition of property, plant and equipment		(38,250)	(23,388)
Proceeds from disposal of property, plant and equipment		-	902
Increase in intangible assets		(45,504)	(42,938)
Increase in other non-current assets		(8,656)	(55,626)
Decrease in other financial assets		54,548	54,066
Net cash provided by (used in) investing activities		11,854	(66,984)
Cash flows from financing activities:
Increase in short term borrowings		74,713	13,680
Decrease in guarantee deposits received		(138,725)	(138,725)
Repayments of the principal portion of lease liabilities		(1,863)	(2,044)
Net cash used in financing activities		(65,875)	(127,089)
Effect of exchange rate changes on cash and cash equivalents		1,365	1,238
Net decrease in cash and cash equivalents		(107,310)	(81,131)
Cash and cash equivalents at beginning of the period		5,485,507	5,380,259
Cash and cash equivalents at end of the period	$	5,378,197	5,299,128

See accompanying notes to consolidated financial statements.

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

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements For the three months ended March 31, 2025 and 2024

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

1. Company History:

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

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

The consolidated financial statements were authorized for issue by the Board of Directors on May 6, 2025

3. 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. 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 have the following impacts:

●Amendments to IFRS 9 and IFRS 7 “ Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7.

For financial assets with contingent features that are not related directly to a change in basic lending risks or costs (e.g. where the cash flows change depending on whether the borrower meets an ESG target specified in the loan contract), the amendments introduce an additional test to assess the “ solely payments of principal and interest on the principal amount outstanding” criterion. In accordance with the Q&A published by the FSC on February 26, 2025, the Group did not elect to early adopt the application guidance in Section 4.1 of the amendments on January 1, 2025.

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The Group invested in ESG-linked bonds and may need to change the classification due to the above amendments. The Group is continually evaluating the impact of its initial adoption of the amendments on its consolidated financial statements.

(3) The impact of IFRS issued by International Accounting Standard Board (the “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 IASB, but have yet to be endorsed by the FSC:

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

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

●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.

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Standards or Interpretations	Content of amendment Effective date per IASB ●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.

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 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
●Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7
●Annual Improvements to IFRS Accounting Standards—Volume 11
●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

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 guidelines of IAS 34, Interim Financial Reporting (hereinafter referred to as “ IAS 34” ) which are endorsed by the FSC, and do not include all of the information required by the IFRSs endorsed by the FSC for a complete set of the annual consolidated financial statements.

Except as described in the following paragraph, the Group's significant accounting policies are applied consistently for the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024.

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(2) Basis of consolidation

The principle of preparation of the consolidated financial statements is consistent with those of the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 4(3) of the consolidated financial statements for the year ended December 31, 2024.

A. 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	Percentage of ownership
			March 31, 2025 % 100.00 % 100.00 % 100.00	December 31, 2024 March 31, 2024 % 100.00 % 100.00 % 100.00 % 100.00 % - % -
the Company RSA RSA&RKS	Raydium Semiconductor (SAMOA) Corp.(RSA) Raydium Semiconductor (Kunshan) Co., Ltd Raydium Semiconductor (Hefei) Co., Ltd	Investment holding company Development, design and sale of the IC Development, design and sale of the IC

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

(3) Employee benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the reporting date of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(4) Income taxes

Income tax expense in the financial statements is measured and disclosed in according to paragraph B12 of IAS 34 endorsed by the FSC.

Income tax expense for the period is best estimated by multiplying pretax income for the reporting period by the effective annual tax rate as forecasted by the management. This is recognized fully as income tax expense for the current period.

Income taxes that are recognized directly in equity or other comprehensive income are measured in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding tax bases at the tax rates that are expected to be applied in the year in which the asset is realized or the liability is settled.

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “ Interim Financial Reporting” endorsed by the FSC requires management to make 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.

In preparing the consolidated financial statements, critical accounting judgments and key sources of estimations and assumptions uncertainty used by management in the application of accounting policies are consistent with those described in Note 5 of the consolidated financial statements for the year ended December 31, 2024.

6. Explanation of significant accounts:

(1) Cash and cash equivalents

Cash and cash equivalents
Demand deposits Time deposits	March 31, 2025 $ 1,469,147 3,909,050 $ 5,378,197	December 31, 2024 1,386,457 4,099,050 5,485,507	March 31, 2024
			1,105,078 4,194,050
			5,299,128

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 March 31, 2025, December 31, 2024 and March 31, 2024, the time deposits with original maturities of more than three months amounted to $3,750,000 thousand, $3,750,000 thousand and $3,500,000 thousand, respectively, which were classified as other financial assets-current; please refer to note 6(8).

(2) Financial assets at fair value

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

March 31, 2025 December 31, 2024 Financial assets at fair value through profit or loss, mandatorily measured at fair value Beneficiary certificate $ 753,884 531,520 Financial assets at fair value through profit or loss`－`non-current March 31, 2025 December 31, 2024 Financial assets at fair value through profit or loss, mandatorily measured at fair value Venture capital funds $ 34,771 35,000	March 31, 2024
	665,209
	March 31, 2024
	-

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

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

		March 31,	December 31,	March 31,
		2025	2024	2024
Listed stocks	$	8,056	8,849	12,659
Financial assets at fair value through other comprehensive			income`－`non-current
		March 31,	December 31,	March 31,
		2025	2024	2024
Listed stocks	$	200,749	265,819	295,611
Unlisted stocks		162,550	284,575	90,926
	$	363,299	550,394	386,537

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

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 for the three months ended march 31, 2025, with the disposal price of $49,716 thousand, resulting in the realized gain of $24,875 thousand to be reclassified from other equity to retained earnings.

For the disclosure of market risk, please refer to note 6(21).

The financial assets mentioned above were not pledged as collateral.

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

Accounts receivable—measured at amortized cost Accounts receivable measured at fair value through other comprehensive income Less: loss allowance	March 31, 2025 $ 3,715,326 132,190 (120,273) $ 3,727,243	December 31, 2024 3,698,369 96,563 (130,522) 3,664,410	March 31, 2024 3,318,187 172,565 (96,918) 3,393,834

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

The 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.

~13~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The accounts receivable from related parties having significant impact over the Group and other individuals amounted to $1,638,115 thousand, $1,687,547 thousand and $1,527,327 thousand as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The days past due is less than 100 days, so there is no expected credit loss for the duration of the related party's accounts receivable.

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

	March 31, 2025
Carrying amounts of accounts receivable Weighted- average loss rate $ 866,304 0% 12,771 0% $ 879,075 December 31, 2024		Loss allowance for life time expected credit losses
		- -
		-

	Weighted- average loss rate 0% 0% March 31, 2024	Loss allowance for life time expected credit losses
		- -
		-

	Weighted- average loss rate 0% 0% 0%	Loss allowance for life time expected credit losses
		- - -
		-

~14~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

	March 31, 2025
Carrying amounts of accounts receivable Weighted- average loss rate $ 1,221,555 7.40% 81,905 22.15% 25,635 43.20% 1,216 51.15% 15 100.00% $ 1,330,326 December 31, 2024		Loss allowance for life time expected credit losses
		90,417 18,145 11,074 622 15
		120,273

	Weighted- average loss rate 7.67% 23.00% 43.20% 53.91% 100.00% March 31, 2024	Loss allowance for life time expected credit losses
		96,966 24,270 4,853 2,040 2,393
		130,522

	Weighted- average loss rate 7.60% 25.80% 48.50% 60.38% 100.00%	Loss allowance for life time expected credit losses
		71,493 23,321 776 567 761
		96,918

~15~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

Beginning balance Impairment loss (reversed) recognized Ending balance	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 130,522 (10,249) $ 120,273	2024
		60,695 36,223
		96,918

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 March 31, 2025, December 31, 2024 and March 31, 2024, the Group reclassified trade receivables that met the derecognition terms － to other receivables (recorded in other financial asset current) as follows:

(In Thousands of New Taiwan Dollars)

	March 31, 2025	March 31, 2025
Buyer Factoring quota Taipei Fubon Bank USD 127,500	Derecognition amount Advanced Amount USD 68,344 - December 31, 2024		Service fees 0.22%	Transfer terms Guaranteed promissory notes Notes 1 to 3 None
Buyer Factoring quota Taipei Fubon Bank USD 151,500	Derecognition amount Advanced Amount USD 63,844 - March 31, 2024		Service fees 0.22%	Transfer terms Guaranteed promissory notes Notes 1 to 3 None
Buyer Factoring quota Taipei Fubon Bank USD 151,500	Derecognition amount USD 91,625	Advanced Amount -	Service fees 0.22%	Transfer terms Guaranteed promissory notes Notes 1 to 3 None

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

~16~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

As of March 31, 2025, December 31, 2024 and March 31, 2024, total outstanding receivables after the above transactions, net of fees charged by purchasing bank, of $2,267,787 thousand, $2,088,796 thousand and $2,931,086 thousand were recognized as other current financial assets; please refer to note 6(8).

As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group’s unused factoring quota amounted to $1,962,918 thousand, $2,867,829 thousand and $1,915,399 thousand, respectively.

(4) Inventories

Work in progress Finished goods Cost of goods sold Provision for inventory obsolescence loss	March 31, 2025	March 31, 2025		December 31, 2024 March 31, 2024 1,839,161 1,326,005 479,385 412,662 2,318,546 1,738,667 For the three months ended March 31,	March 31, 2024
	$ 2,008,184 545,136 $ 2,553,320				1,326,005 412,662
					1,738,667

					2024
					4,213,671 33,532
					4,247,203

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

(5) Property, plant and equipment

Carrying amounts: Balance as of January 1, 2025 Balance as of March 31, 2025 Balance as of January 1, 2024 Balance as of March 31, 2024	Research equipment $ 90,556 $ 87,605 $ 167,255 $ 129,839	Transportation equipment 10,521 9,827 4,340 12,850	Office equipment	Leasehold improvements 10,063 8,203 15,810 13,655	Construction in progress 228,429 263,572 228,429 228,429	Equipment under inspection 2,425 6,373 8,357 14,244	Total
			67,280				409,274
			58,613				434,193
			59,491				483,682
			63,258				462,275

There was no significant addition or disposal on real estate, plant and equipment of the Group for the three months ended March 31, 2025 and 2024. For the depreciation amount in the current period, please refer to note 12. For other related information, please refer to note 6(5) of the consolidated financial statements for the year ended December 31, 2024.

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

~17~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(6) Right-of-use assets

Right-of-use assets
Carrying amounts: Balance as of January 1, 2025 Balance as of March 31, 2025 Balance as of January 1, 2024 Balance as of March 31, 2024	Buildings
	$ 13,120 $ 20,559 $ 17,653 $ 20,117

There was no significant addition, recognition and reversal of impairment losses of the right-of-use assets recognized by the Group's leased houses and buildings for the three months ended March 31, 2025 and 2024. For other related information, please refer to note 6(6) of the consolidated financial statements for the year ended December 31, 2024.

(7) Intangible assets

Carrying amounts: Balance as of January 1, 2025 Balance as of March 31, 2025 Balance as of January 1, 2024 Balance as of March 31, 2024	Goodwill $ 237,800 $ 237,800 $ 237,800 $ 237,800	Patents and technology - - - -	Software costs 274,007 249,602 138,700 135,263	Total
				511,807
				487,402
				376,500
				373,063

There was no significant addition or disposal on intangible assets of the Group for the three months ended March 31, 2025 and 2024. For the amortization amount in the current period, please refer to note 12. For other related information, please refer to note 6(7) of the consolidated financial statements for the year ended December 31, 2024.

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

Accounts receivable factoring Restricted time deposits Guarantee deposits for product capacity and others Time deposits with original maturities of more than three months Corporate bonds Others Other financial assets`－`current Other financial assets`－`non-current	March 31, 2025 $ 2,267,787 254,616 3,610 3,750,000 9,894 7,865 $ 6,293,772 $ 6,290,162 3,610 $ 6,293,772	December 31, 2024 2,088,796 254,588 67,523 3,750,000 9,894 8,306 6,179,107 6,175,530 3,577 6,179,107	March 31, 2024
			2,931,086 254,541 4,119 3,500,000 - 4,777
			6,694,523
			6,691,393 3,130
			6,694,523

~18~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(9) Other current and non-current assets

Prepayments to suppliers Sales tax receivable and overpaid VAT Prepayments for mask and mold Net defined benefit assets Others Other current assets Other non-current assets	March 31, 2025 $ - 139,848 310,449 564 65,552 $ 516,413 $ 203,399 313,014 $ 516,413	December 31, 2024 - 115,814 303,793 564 33,291 453,462 149,104 304,358 453,462	March 31, 2024
			541,049 119,850 321,176 - 86,996
			1,069,071
			396,109 672,962
			1,069,071

(10) Short-term borrowings

Unsecured bank loans Unused credit lines Range of interest rates	March 31, 2025 $ 204,669 $ 1,615,056 2.85%~4.87%	December 31, 2024 130,868 1,992,798 5.11%	March 31, 2024
			616,770
			1,247,759
			3.45%~5.95%

(11) Lease liabilities

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

Current (recorded under other current liabilities) Non-current	March 31, 2025 $ 9,006 $ 12,286	December 31, 2024 6,067 7,433	March 31, 2024
			7,179
			12,156

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

The amounts recognized in profit or loss were as follows:

The amounts recognized in profit or loss were as follows:
Interest on lease liabilities Expenses relating to short-term leases	For the three months ended March 31,
	2025 $ 136 $ 8,665	2024
		130
		9,858

~19~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

Total cash outflow for leases Buildings leases	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 10,664	2024
		12,032

The Group leases buildings and improvements for its office, with lease terms that typically run for 2~5 years, and some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

The 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

Balance as of January 1, 2025 Provisions reversed during the period Balance as of March 31, 2025 Provisions – current Provisions – non-current Balance as of January 1, 2024 Provisions reversed during the period Balance as of March 31, 2024 Provisions – current Provisions – non-current	Warranties $ 340,671 (9,825) $ 330,846 $ 110,282 220,564 $ 330,846 $ 116,113 (13,282) $ 102,831 $ 34,277 68,554 $ 102,831

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

Given there was no significant market fluctuations, significant curtailments, settlements, or other significant one-off event since the prior fiscal year, pension cost in the financial statements are measured and disclosed according to the actuarial results determined on December 31, 2024 and 2023.

For information related to the Group's pension costs for the three months ended March 31, 2025 and 2024, please refer to note 12.

~20~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(14) Guarantee deposits reserved

Deposits received for capacity guarantee Current (recorded in other liabilities) Non-current	March 31, 2025 $ 663,640 $ 331,820 331,820 $ 663,640	December 31, 2024 817,925 327,170 490,755 817,925	March 31, 2024
			959,700
			319,900 639,800
			959,700

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:

Current income tax expense (benefit) Current period Adjustment for prior period	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 80,673 (1,967) $ 78,706	2024
		93,692 -
		93,692

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

Items that will not be reclassified subsequently to profit or loss: Unrealized gains or losses from investments in equity instruments measured at FVOCI Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations	For the three months ended March 31, 2025 2024 $ (23,123) (2,689) $ (391) 325
	2025 $ (23,123) $ (391)

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

~21~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(16) Equity

Except as for the following, there were no significant changes in the capital and other equity of the Group for the three months ended March 31, 2025 and 2024. For relevant information, please refer to note 6(16) of the Company's consolidated financial statements for the year ended December 31, 2024.

A. Issuance of common stock

As of March 31, 2025, December 31, 2024 and March 31, 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 (dollars) per share.

B. Capital surplus

Capital surplus
Capital surplus Employee remuneration paid in the form of stocks Others	March 31, 2025 $ 4,647,881 64,592 460 $ 4,712,933	December 31, 2024 4,647,881 64,592 460 4,712,933	March 31, 2024
			4,647,881 64,592 460
			4,712,933

C. Retained earnings

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

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

~22~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The appropriations of 2024 earnings have been approved in the Board of Directors' meeting held on February 25, 2025. Details of distribution were as follows:

Legal reserve Special reserve Cash dividends	Appropriation earnings Dividends per share (NT$) $ 211,030 82,944 1,683,986 22.2 $ 1,977,960

The aforementioned legal reserve and special reserve are yet to be resolved at the general meeting of Shareholders held on May 28, 2025.

The appropriation of earnings for 2023 by way of cash dividends has been approved in the Board of Directors' meeting held on February 26, 2024. The appropriation of earnings for 2023 by other ways has been approved in the annual shareholders' meeting held on May 29, 2024. Details of distribution were as follows:

Legal reserve Special reserve Cash dividends	Appropriation of earnings Dividends per share (NT$) $ 145,397 33,741 1,152,999 15.2 $ 1,332,137

The aforementioned appropriation of earnings for 2023 was consistent with the resolutions of the Board of Directors' meeting held on February 26, 2024.

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

(17) Earnings per share

Basic earnings per share: Net income attributable to ordinary shareholders of Company Weighted-average number of ordinary shares outstanding during the year (in thousands of shares) Basic earnings per share (NT dollars)	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 459,117 75,855 $ 6.05	2024
		552,460
		75,855
		7.28

~23~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Diluted earnings per share: Net income attributable to ordinary shareholders of Company Weighted-average number of ordinary shares outstanding during the year (in thousands of shares) Effect of employee stock remuneration Weighted average number of ordinary shares outstanding (in thousands of shares)(diluted) Diluted earnings per share (NT dollars) Revenue from contracts with customers A. Detail of revenue	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 459,117 75,855 945 76,800 $ 5.98	2024
		552,460
		75,855 584
		76,439
		7.23

(18) Revenue from contracts with customers

Revenues from major regional markets: China (including Hong Kong) Taiwan Others Revenue from major products: Display Driver IC Others B. Contract balances March 31, 2025 Contract liabilities $ 229,353	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 4,551,632 1,077,420 197,262 $ 5,826,314 $ 5,615,602 210,712 $ 5,826,314 December 31, 2024 296,881	2024
		4,731,276 1,155,735 149,438
		6,036,449
		5,867,583 168,866
		6,036,449
		March 31, 2024
$ 229,353		451,555

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

The amount of revenue recognized for the three months ended March 31, 2025 and 2024 that were included in the contract liability balance at the beginning of the period were $74,426 thousand and $84,451 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.

~24~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(19) Non-operating income and expenses
A. Other income

Others Other gains and losses Foreign exchange gains, net Others	For the three months ended March 31,	For the three months ended March 31,
	2025 2024 $ 5,630 2,371 For the three months ended March 31,	2024
		2,371
		2024
		49,979 2,974
		52,953

B. Other gains and losses
C. Finance costs

Interest expense`－`bank borrowings Lease liabilities D. Interest income Interest income from bank deposits	For the three months ended March 31, 2025 2024 $ (886) (4,220) (136) (130) $ (1,022) (4,350) For the three months ended March 31, 2025 2024 $ 35,155 28,811

(20) Remuneration to employees and directors

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

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

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.

~25~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

For the three months ended March 31, 2025 and 2024, the amounts of remuneration to employees were estimated at $94,183 thousand and $113,153 thousand, respectively; and those to the directors were estimated at $4,364 thousand and $5,243 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 three months ended March 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.

The Board of Directors of the Company has resolved to distribute employee remuneration and director remuneration in cash as follows:

Board resolution date Employee compensation Director remuneration	For the three months ended March 31,	For the three months ended March 31,
	2024 2023 February 25, 2025 February 26, 2024 $ 424,658 270,959 $ 18,943 12,747
		12,747

There were no difference between the aforementioned approved amounts and the amounts charged against earnings of 2024 and 2023, respectively. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(21) Financial instruments

Except as described below, there is no significant change in the fair value of the Group's financial instruments and the Group's exposure to credit risk, liquidity risk and market risk due to financial instruments. For relevant information, please refer to Note 6 (21) of the financial statements for the year ended December 31, 2024.

A. Credit risk

(a) Credit risk exposure

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

(b) Credit risk concentration

Credit risk is the risk of financial loss to the 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.

~26~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The Group’s potential credit risk is derived primarily from cash and cash equivalents and trade receivables. 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 March 31, 2025, December 31, 2024 and March 31, 2024, the Group’s five largest customers accounted for approximately 46%, 52% and 54% 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.

(c) Credit risk of receivables

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

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

All 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 financial statements for the year ended December 31, 2024 for further details of how the Group determines whether credit risk is to be low risk).

B. Liquidity risk

The contractual maturities of financial liabilities were as follows:

March 31, 2025 Non-derivative financial liabilities Short-term borrowings Accounts payable Salaries and bonuses payable Dividends payable Other payables`－`related parties Lease liabilities (current and non-current) Guarantee deposits received (current and non-current)	Carrying amounts $ 204,669 3,540,844 2,458,684 1,683,986 4,349 21,292 663,640 $ 8,577,464	Contractual cash flows (210,316) (3,540,844) (2,458,684) (1,683,986) (4,349) (21,933) (663,640) (8,583,752)	Within a year (210,316) (3,540,844) (2,458,684) (1,683,986) (4,349) (9,417) (331,820) (8,239,416)	Over 1 years - - - - - (12,516) (331,820) (344,336)

~27~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

December 31, 2024 Non-derivative financial liabilities Short-term borrowings Accounts payable Salaries and bonuses payable Other payables`－`related parties Lease liabilities (current and non-current) Guarantee deposits received (current and non-current) March 31, 2024 Non-derivative financial liabilities Short-term borrowings Accounts payable Salaries and bonuses payable Dividends payable Other payables`－`related parties Lease liabilities (current and non-current) Guarantee deposits received (current and non-current)	Carrying amounts $ 130,868 3,139,021 2,625,802 2,807 13,500 817,925 $ 6,729,923 $ 616,770 3,166,801 2,279,421 1,152,999 40 19,335 959,700 $ 8,195,066	Contractual cash flows (131,103) (3,139,021) (2,625,802) (2,807) (13,837) (817,925) (6,730,495) (619,288) (3,166,801) (2,279,421) (1,152,999) (40) (19,961) (959,700) (8,198,210)	Within a year (131,103) (3,139,021) (2,625,802) (2,807) (6,293) (327,170) (6,232,196) (619,288) (3,166,801) (2,279,421) (1,152,999) (40) (7,537) (319,900) (7,545,986)	Over 1 years - - - - (7,544) (490,755) (498,299) - - - - - (12,424) (639,800) (652,224)

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

C. Foreign currency risk

(a) Exposure of foreign currency risk

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

Fi	nancial assets Monetary items USD JPY RMB	M	arch 31, 202	5 TWD 6,498,197 38,689 1,877	Dec	ember 31, 20	24 TWD 6,481,827 36,469 3,467	M	arch 31, 2024
		Foreign currency $ 195,835 174,828 411	Exchange rate 33.182 0.2213 4.5675		Foreign currency 198,118 174,828 775	Exchange rate 32.717 0.2086 4.4733		Foreign currency 196,143 174,826 625	Exchange rate TWD 31.990 6,274,615 0.2114 36,958 4.4088 2,756

~28~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Fi	nancial liabilities Monetary items USD RMB	M	arch 31, 202	5 TWD 4,262,128 187	Dec	ember 31, 20	24 TWD 4,289,559 1,293	M	arch 31, 2024
		Foreign currency $ 128,447 41	Exchange rate 33.182 4.5675		Foreign currency 131,111 289	Exchange rate 32.717 4.4733		Foreign currency 144,001 8	Exchange rate TWD 31.990 4,606,592 4.4088 35

(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 receivable, 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, RMB, and JPY as of March 31, 2025 and March 31, 2024, assuming that all other variables remain constant, would have increased or decreased the profit after tax by $18,212 thousand and $13,662 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 three months ended March 31, 2025 and 2024 were $31,590 thousand and $49,979 thousand, respectively.

D. Interest rate analysis

An increase or decrease of 0.25% in interest rates, mainly from cash and cash equivalents, restricted time 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 $836 thousand and $573 thousand for the three months ended March 31, 2025 and 2024, respectively.

E. Other market price risk

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

Prices of securities at the reporting date Increasing 10% Decreasing 10%	For the three months ended March 31, 2025 2024 Other comprehensive income before tax Other comprehensive income before tax $ 37,136 39,920 $ (37,136) (39,920)
	2025 Other comprehensive income before tax $ 37,136 $ (37,136)

~29~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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:

	March 31, 2025	March 31, 2025
	Fair value
Level 1 753,884 - 208,805 - - - - - 962,689 - - - - - - - -	Level 2 - - - - 132,190 - - - 132,190 - - - - - - - -	Level 3 - 34,771 - 162,550 - - - - 197,321 - - - - - - - -	Total
			753,884 34,771 208,805 162,550 132,190 - - -
			1,292,200
			- - - - - - -
			-

~30~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

	Fair value
Level 1 665,209 308,270 - - - - - 973,479	Level 2 - - - 172,565 - - - 172,565	Level 3 - - 90,926 - - - - 90,926	Total
			665,209 308,270 90,926 172,565 - - -
			1,236,970

~31~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

	March 31, 2024	March 31, 2024
	Fair value
Level 1 - - - - - - - -	Level 2 - - - - - - - -	Level 3 - - - - - - - -	Total
			- - - - - - -
			-

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

Non-derivative financial instruments

The listed shares and beneficiary certificates held by the 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.

(c) There was no transfer between the different levels of fair value hierarchy for the three months ended March 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.

~32~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Quantified information regarding significant unobservable inputs are as follows:

Item Financial assets at FVTPL – venture capital funds Financial assets at FVOCI – equity investments without an active market	Valuation technique Asset approach Market approach (comparable with price-book ratio of the peers)	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ●Lack of market liquidity ●The higher the level of lacking liquidity, the lower the estimate of fair value ●P/B ratio multiplier (1.01~7.10, 1.37~7.94 and 2.16~3.44 as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively) ●Discount for lack of market liquidity ( 30%~60% as of March 31, 2025, December 31, 2024 and March 31, 2024) ●The higher the P/B ratio, the higher the fair value ●The higher the market liquidity discount rate, the lower the fair value

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

Balance as of January 1 Total gain/loss Recognized in profit and loss Balance as of March 31 Balance as of January 1 Total gain/loss Recognized in other comprehensive income Balance as of March 31	Financial assets at FVTPL – venture capital funds
	For the three months ended March 31, 2025 2024 $ 35,000 - (229) - $ 34,771 - Financial assets at FVOCI – equity investments without an active market
	For the three months ended March 31, 2025 2024 $ 284,575 114,517 (122,025) (23,591) $ 162,550 90,926
	2025 $ 284,575 (122,025) $ 162,550

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.

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(22) Financial risk management

Market price risk of interest rate movements: All of the Group's assets and liabilities bear floating interest rates, and thus suffer from cash flow interest rate risk exposure.

The goals and policies of the Group's financial risk management were not materially different from those disclosed in note 6(22) of the consolidated financial statements for the year ended December 31, 2024.

(23) Capital management

The objectives, policies and procedures of the Group's capital management have been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2024. Also, there was no significant change in the Group's capital management information as disclosed for the year ended December 31, 2024. Refer to Note 6(23) of the consolidated financial statements for the year ended December 31, 2024 for the relevant information.

(24) Financing activities of non-cash transactions

Reconciliation of liabilities arising from financing activities was as follows:

January 1, 2025 Short-term borrowings $ 130,868 Lease liabilities 13,500 Guarantee deposits received 817,925 Total liabilities from financing activities $ 962,293 January 1, 2024 Short-term borrowings $ 589,278 Lease liabilities 16,684 Guarantee deposits received 1,075,130 Total liabilities from financing activities $ 1,681,092	Cash flows 74,713 (1,863) (138,725) (65,875) Cash flows 13,680 (2,044) (138,725) (127,089)	Changes in foreign Exchange and other (912) 9,655 (15,560) (6,817) Changes in foreign Exchange and other 13,812 4,695 23,295 41,802	March 31, 2025
			204,669 21,292 663,640
			889,601
			March 31, 2024
			616,770 19,335 959,700
			1,595,805

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

7. Related-party transactions

(1) Names and relationship with related parties

The followings 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
AUO Education Service Corp. (AUES)	Subsidiary of AUO
AUO Display Plus Corporation (ADP)	Subsidiary of AUO
AUO Envirotech Inc. (AETTW)	Subsidiary of AUO
HeilongJiang Talenda Smart Display	Subsidiary of ADP
Technology Co., Ltd (Talenda)
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:

follows:
Relationship AUOSZ AUOXM AUO Other related parties	For the three months ended March 31,
	2025 $ 547,934 317,582 166,242 46,796 $ 1,078,554	2024
		435,859 391,320 52,147 63,360
		942,686

For the three months ended March 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. 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.

~35~

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

B. Receivables from related parties

The receivables from related parties were as follows:

Account Receivables from related parties Receivables from related parties Receivables from related parties Receivables from related parties	Relationship AUOSZ AUOXM AUO Other related parties	March 31, 2025 $ 898,488 474,258 205,040 60,329 $ 1,638,115	December 31, 2024 937,697 519,307 149,305 81,238 1,687,547	March 31, 2024
				652,317 619,209 157,483 98,318
				1,527,327

C. Other payables to related parties

The payables to related parties were as follows:

Account Other accounts payable from related parties Other accounts payable from related parties Refund liabilities Refund liabilities	Relationship AUO Other related parties AUO Other related parties	March 31, 2025 $ 3,336 1,013 $ 4,349 $ - 14,223 $ 14,223	December 31, 2024 2,291 516 2,807 - 4,952 4,952	March 31, 2024
				11 29
				40
				1,964 4,001
				5,965

D. Other

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

AUO Other related parties	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 8,924 346 $ 9,270	2024
		7,850 32
		7,882

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

Other related parties	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 660	2024
		-

Account Other current assets	Relationship AUO	March 31, 2025 $ -	December 31, 2024 7,854	March 31, 2024
				45

(3) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Post-employment benefits	For the three months ended March 31,	For the three months ended March 31,
	2025 $ 49,449 189 $ 49,638	2024
		60,688 189
		60,877

8. Pledged assets:

The carrying values of pledged assets were as follows:

Asset Name Restricted cash in bank (recognized in other financial assets`－` current) Restricted cash in bank (recognized in other financial assets`－` current)	Pledged to secure Import guarantee for customs Import Guarantee	March 31, 2025 $ 34,486 220,130 $ 254,616	December 31, 2024 34,458 220,130 254,588	March 31, 2024
				34,411 220,130
				254,541

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Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

9. Significant Contingencies and Unrecognized Commitments:

(1) The Company signed a contract to purchase a real estate located in Tai Yuen Hi-Tech Industrial Park on November 2, 2023, with a total contract price of $1,845,000 thousand (tax included), of which, the amount of $276,750 thousand (tax included) had been paid as of March 31, 2025.
(2) The Company has entered into capacity guarantee contracts with several customers, and collects deposits and advance receipts as agreed to reserve specific production capacity to such customers.

10. Significant disaster losses: None.

11. Subsequent events: None.

12. Others:

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

By function By item	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,
	2025			2024
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits Salary Labor and health insurance Pension Other employee benefits Depreciation Amortization	42,458 3,284 1,428 1,376 220 86	731,843 38,927 18,878 23,751 28,109 83,120	774,301 42,211 20,306 25,127 28,329 83,206	40,524 2,801 1,294 1,298 153 41	734,274 34,763 16,501 20,155 54,223 42,925	774,798 37,564 17,795 21,453 54,376 42,966

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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	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 S (	Raydium emiconductor Kunshan) Co., Ltd.	Subsidiaries	2,150,830	663,640	663,640	400,142	-	% 6.17	5,377,075	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 March 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	Ending Balance		Note
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value
The Company The Company The Company The Company	Yuanta Wan Tai Money Market Fund Yuanta De Bao Money Market Fund Shares of AUO Corporation Shares of ARK Semiconductor Inc.	- - AUO accounted for its investments in the Company using the equity method The company represented as an director of ARK	Financial assets at FVTPL `－`current `〃` Financial assets at FVOCI `－`noncurrent `〃`	35,439 15,342 14,459 1,983	561,075 192,809 194,469 146,123	- - % 0.19 % 15.81	561,075 192,809 194,469 146,123

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	Transaction Details		Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)
			Purchase/ Sales	Amount	Percentage of Total Purchases/ Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage of Total Notes/ Accounts Receivable (Payable)
The Company The Company The Company	AUOSZ AUOXM AUO	Subsidiary of AUO Subsidiary of AUO AUO accounted for its investment in the Company using the equity method	Sales Sales Sales	505,430 311,598 166,242	% 9 % 6 % 3	EOM 120 days EOM 120 days EOM 120 days	Please refer to note 7 Please refer to note 7 Please refer to note 7	Please refer to note 7 Please refer to note 7 Please refer to note 7	823,023 463,875 205,040	24% 13% 6%

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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	Overdue	Amounts Received in Subsequent Period (Note)	Allowance for Bad Debts
					Amount	Action Taken
The Company The Company The Company	AUOSZ AUOXM AUO i	Subsidiary of AUO Subsidiary of AUO AUO accounted for its nvestment in the Company using the equity method	823,023 463,875 205,039	2.39 2.62 3.75	21 37 -	On the spot collection On the spot collection On the spot collection	199,916 76,420 36,487	- - -

Note: Amounts collected in subsequent period as of April 28, 2025.

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	Original investment amount	Balance as of March 31, 2025	Balance as of March 31, 2025	Balance as of March 31, 2025	Net income (losses) of investee	Share of Profits/ Losses of Investee	Note
				March 31, 2025(Note)	December 31, 2024	Shares	Percentage of ownership	Carrying value
The Company	RSA	SAMOA	Investment Holding	329,576	248,280	10,550	% 100.00	221,672	(3,622)	(3,622)	Subsidiary of the Company

Note: The Company had remitted USD 2,450 thousand on April 14, 2025.

(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 (note 6)	Method of investment (note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of March 31, 2025	Net income (losses) of the investee (Note 3)	Percentage of ownership	Investment income (loss) (Note 3 and 5)	Carrying amounts (Note 2)	Accumulated remittance of earnings in current period
					Outflow (note 6)	Inflow
Raydium Semiconductor (Kunshan) Co., Ltd. Raydium Semiconductor (Hefei) Co., Ltd	Development, design and sale of the IC . Development, design and sale of the IC	245,200 (USD8,000 thousand) 164,919 (RMB36,000 thousand)	2 3	245,200 -	- 81,296	- -	245,200 81,296	(3,214) (831)	100.00% 100.00%	(3,214) (831)	138,200 163,596	- -

~40~

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 March 31, 2025 (note 6)	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 4)
326,496 (USD10,450 thousand)	326,496 (USD10,450 thousand)	6,452,490

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.
Note 6:On November 5, 2024, the Board of Directors approved the establishment of a new subsidiary in Hefei, Mainland China, jointly invested through RSA and its subsidiary, RKS. The total investment amount is capped at USD5,000 thousand, which can be invested in one or multiple installments. The project was approved by the MOEA on February 6, 2025. Subsequently, on April 7, 2025, the MOEA approved a change in the investment currency to RMB 36,000 thousand. RKS has remitted RMB18,360 thousand on March, 4, 2025. RSA has remitted RMB17,640 thousand on April 14, 2025.
C. Significant transactions with the investees in Mainland China:

The significant inter-company transactions with the subsidiary in Mainland China for the three months ended March 31, 2025, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

14. Segment information:

The Group mainly engage in development, design and sales of integrate circuits. It only has a single operating segment to be reported. The Group's operating segment above were consistent with the related accounts shown in the 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.

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AI assistant

Raydium — Interim / Quarterly Report 2025

52350_rns_2025-12-31_210bebe2-b14f-40d3-b31a-b808c6bf08bc.pdf

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Financial Statements

Table of Contents

Independent Auditors’ Review Report

Introduction

Scope of Review

Conclusion

KPMG

Notes to Readers

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

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Balance Sheets

March 31, 2025, December 31, 2024, and March 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

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

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

Raydium Semiconductor Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the three months ended March 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements For the three months ended March 31, 2025 and 2024

1. Company History:

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

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

Raydium Semiconductor Corporation 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

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(2) Basis of consolidation

(3) Employee benefits

(4) Income taxes

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

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

6. Explanation of significant accounts:

(2) Financial assets at fair value

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

(4) Inventories

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

(16) Equity

A. Issuance of common stock

B. Capital surplus

C. Retained earnings

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

A. Credit risk

(a) Credit risk exposure

(b) Credit risk concentration

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(c) Credit risk of receivables

B. Liquidity risk

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Raydium Semiconductor Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(b) Sensitivity analysis

D. Interest rate analysis

E. Other market price risk

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

(22) Financial risk management

Raydium Interim / Quarterly Report 2025