RECTRON - Interim / Quarterly Report 2025

Stock Code：2302

Rectron Ltd. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report

For the Six Months Ended June 30, 2025 and 2024

Address: No. 71, Zhongshan Rd., Tucheng Dist., New Taipei City, Taiwan Telephone:886-2-28801122

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.

Contents 1.Cover Page 2.Table of Contents 3.Independent Auditors’ Review Report 4.Consolidated Balance Sheets 5.Consolidated Statement of Comprehensive Income 6.Consolidated Statement of Changes in Equity 7.Consolidated Statement of Cash Flows 8.Notes to the Consolidated Financial Statements (1) Company history (2)Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4)Summary of material accounting policies (5)Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8)Assets pledged as security (9) Commitments and contingencies (10)Losses due to major disasters (11)Subsequent events (12)Other (13)Other disclosures  Information on significant transactions  Information on investees  Information on investment in Mainland China (14)Segment information	Page
	1 2 3 4 5 6 7 8 8 8~9 9~10 11 11~31 31~32 33 33 33 33 33~34 34~36 36 36 37~38

Contents
1.Cover Page
2.Table of Contents
3.Independent Auditors’ Review Report
4.Consolidated Balance Sheets
5.Consolidated Statement of Comprehensive Income
6.Consolidated Statement of Changes in Equity
7.Consolidated Statement of Cash Flows
8.Notes to the Consolidated Financial Statements
(1) Company history
(2)Approval date and procedures of the consolidated financial statements
(3) New standards, amendments and interpretations adopted
(4)Summary of material accounting policies
(5)Significant accounting assumptions and judgments, and major sources of
estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8)Assets pledged as security
(9) Commitments and contingencies
(10)Losses due to major disasters
(11)Subsequent events
(12)Other
(13)Other disclosures

Information on significant transactions

Information on investees

Information on investment in Mainland China
(14)Segment information

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Independent Auditors’ Review Report

To the Board of Directors of RECTRON LTD. Company ：

Introduction

We have reviewed the accompanying consolidated balance sheets of the RECTRON LTD. Company and its subsidiaries as of June 30, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the six months ended June 30, 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

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of 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.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $360,345 thousand and $212,905 thousand, constituting 14% and 9% of consolidated total assets as of June 30, 2025 and 2024, respectively, total liabilities amounting to $14,514 thousand and $8,906 thousand, constituting 2% and 1% of consolidated total liabilities as of June 30, 2025 and 2024, respectively, and total comprehensive income (loss) amounting to $36,258 thousand, $(4,970)thousand, $(16,402)thousand and $(2,741) thousand, constituting (1,523)%, (16)%, 185% and (5)% of consolidated total comprehensive income (loss) for the three months and the six months ended June 30, 2025 and 2024, respectively.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, 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 the RECTRON LTD. Company and its subsidiaries as of June 30, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 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

3-1

Other Matters

We did not review the financial statements of certain consolidated subsidiaries, with total assets of $24,947 thousand and $26,481 thousand, representing 1% and 1% of the related consolidated total assets as of June 30, 2025 and 2024, and net sales of $575 thousand, $671 thousand, $1,100 thousand and $1,378 thousand, representing 0%, 0%, 0% and 0% of the related consolidated total net sales for the three months and the six months ended June 30, 2025 and 2024, respectively. Those financial statements were reviewed by other auditors whose reports have been furnished to us, and our review, insofar as it relates to the amounts included for certain consolidated subsidiaries, are based solely on the reports of the other auditors.

The engagement partners on the reviews resulting in this independent auditors’ review report are Shih-Chin Chih and Hsin-Ting Huang.

KPMG

Taipei, Taiwan (Republic of China) August 14, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and its 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.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.) Rectron LTD. and Subsidiaries

Consolidated Balance Sheets

June 30, 2025, December 31 and June 30, 2024 (Expressed in Thousands of New Taiwan Dollar)

		June 30, 2025	June 30, 2025			December 31,	2024	June 30, 2024	June 30, 2024
		Amount		%		Amount	%	Amount	%
	Assets
	Current assets:
1100	Cash and cash equivalents (note 6(a))	$ 561,515		22		564,394	21	620,555	26
11111 0	Current financial assets at fair value through profit or loss (note 6(b))	116,7617		5		132,575	5	32,116	1
1150	Trade notes receivable net (note 6(c) and (n))	508		-		793	-	671	--
1170	Trade receivables net (note 6(c), (n) and 7)	136,915		5		140,210	5	147,430	6
1200	Other receivables	11,094		-		4,218	-	5,168	-
1220	Total current tax assets	17		-		439	-	421	-
130X	Inventories (note 6(d))	147,037		6		126,046	5	116,813	4
1410	Prepayments(note 7)	11,687			-	6,849	-	12,778	1
1479	Other current assets	4,2393		-		4,201	-	3,619	-
		989,773		38		979,725	36	939,571	38
	Non-current assets:
1517	Non-current financial assets at fair value through	44,776		2		55,867	2	56,327	2
	other comprehensive income (note 6(b))
1600	Property, plant and equipment (note 6(e), 8 and 9)	587,005		23		635,790	24	454,421	19
1755	Right-of-use assets (note 6(f), and 9)	24,000		1		16,060	1	15,065	1
1760	Investment property (note 6(g) , 7, 8 and 9)	946,141		36		955,984	37	960,649	4
1990	Other non-current assets (note 6(c) and 7)	2,273		-		2,357	`-`	2,448	-
		1,604,195		62		1,666,058	64	1,488,910	62
	Total assets	$ 2,593,9687	100			2,645,783	100	2,428,4817	100

June 30, 2025 Amount % $ - - 1,600 - 148,335 6 129,349 5 14,408 1 3,123 - 494,855 19 791,670 31 2,669 - 29 - 66,883 3 3,992 - 73,573 3 865,243 34 1,663,029 64 9 - 73,269 3 103,296 4 6,447 - (117,325 ) (5) 1,728,725 66 $ 2,593,968 100	June 30, 2025 Amount % $ - - 1,600 - 148,335 6 129,349 5 14,408 1 3,123 - 494,855 19 791,670 31 2,669 - 29 - 66,883 3 3,992 - 73,573 3 865,243 34 1,663,029 64 9 - 73,269 3 103,296 4 6,447 - (117,325 ) (5) 1,728,725 66 $ 2,593,968 100	June 30, 2024	June 30, 2024
		Amount 5,000 2,828 105,465 81,659 12,331 3,718 362,886 573,897 3,061 1,454 62,684 4,756 71,955 645,852 1,663,029 9 60,655 87,143 50,424 (78,631) ) 1,782,629 2,428,481	% - - 4 3 1 - 16
	$
			24 - - 3 - 3 27 68 - 2 4 2 (3) 73 100




$

See accompanying notes to financial statements.

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Comprehensive Income

For the six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollar, except for Earnings per Common Share)

	For the three months ended June 30	For the three months ended June 30	For the three months ended June 30	the six months e	nded June 30
$ $ $	2025 $ 216,525 136,367 80,158 13,752 29,772 1,813 45,337 34,821 2,846 (11,191) (44) (8,389) 26,432 15,037 11,395 (1,812) - (1,812) (11,615) (348) - (11,963) (13,775) (2,380) 11,395 (2,380)	% 100 65 37 6 14 1 21 16 1 (5) - (4) 12 7 5 - - - (5) - - (5) (6) (1) 5 (1) 0.07 0.07	2024 203,421 132,401 71,020 14,195 29,082 1,538 44,815 26,205 4,771 8,920 (88) 13,603 39,808 7,995 31,813 666 - 666 (1,253) (914) - (2,167) (1,501) 30,312 31,813 30,312	2025 % 410,001 100 254,653 62 155,348 38 29,004 7 59,059 14 3,523 1 91,586 22 63,762 16 7,296 2 (52,088) (13) (92) - (44,884) (11) 18,878 5 15,037 4 3,841 1 (1,974) - - - (1,974) - (10,825) (3) 103 - - - (10,722) (3) (12,696) (3) (8,855) (2) 3,841 1 (8,855) (2) 0.02 0.02	2024 % 350,678 100 224,538 64 126,140 36 23,951 7 62,632 18 3,069 1 89,652 26 36,488 10 7,590 2 18,728 6 (172) - 26,146 8 62,634 18 12,560 4 50,074 14 1,712 1 - - 1,712 1 8,852 3 (2,052) (1) - - 6,800 2 8,512 3 58,586 17 50,074 14 58,586 17 0.30 0.30

See accompanying notes to financial statements.

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Changes in Equity

For the six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollar)

				Attributable to owners ofparent	Attributable to owners ofparent	Attributable to owners ofparent		Total	Total equity
	Ordinary share	Capital surplus		Retained earnings	Total		Other equity
			Legal reserve	Special reserve		Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (4,039) - (340) (340) - (4,379) (5,040) - (1,871) (1,871) (1,333) (8,244)
$1,663,029 - - - - $ 1,663,029 $ 1,663,029 - - - - $ 1,663,029		9 - - - - 9 9 - - - - 9	51,988 - - - 8,666 - 60,655 60,655 - - - 12,614 - 73,269	60,074 - - - 27,069 - 87,143 87,143 - - - 16,153 - 103,296	87,640 50,074 - 50,074 (8,666) (27,069) (51,554) 50,424 126,496 3,841 - 3,841 (12,614) (16,153) (96,456) 1,333 6,447	(83,104) - 8,852 8,852 - (74,252) (98,256) - (10,825) (10,825) - (109,081)		(87,143) - 8,512 8,512 - (78,631) (103,296) - (12,696) (12,696) (1,333) (117,325)	1,775,597 50,074 8,512 58,586 (51,554) 1,782,629 1,834,036 3,841 (12,696) (8,855) (96,456) - 1,728,725




$

See accompanying notes to financial statements.

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Cash Flows

For the six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

For the six months	For the six months	ended June 30,	ended June 30,
	2025		2024
$	18,878 25,915 425 (1,896) 92 (7,246) (50) - - 14,020 4,309 35,569 285 5,191 (6,306) (20,991) (4,838) (38) (26,697) 1,562 16,982 (7,382) 973 (661) (55) 11,419 (15,278) 20,291 39,169 6,676 50 (92) (16,883) 28,920 4,750 (98,196) 99,990 (190,168) (341) 162,585 (21,380) - - (1,604) (1,604) (8,815) (2,879) 564,394 561,515	$	62,634 24,615 1,537 (949) 172 (7,399) (191) 1,315 (37) (6,646) (1,390)
			11,027 (254) (56,107) (3,550) 18,765 (5,895) (358)
$		$
			(47,399)
			2,770 29,768 (2,415) 11,564 - (755)
			40,932 (6,467)
			4,560 67,194 7,395 191 (185) (7,258)
			67,337 - (24,341) 33,388 (11,382) (216) - (2,551)
			15,000 (25,000) (1,113) (11,133)
			5,199 58,852 561,703 620,555

See accompanying notes to financial statements.

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

Rectron Ltd. and Subsidiaries

Notes to Consolidated Financial Statements

June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar, except for Earnings per Share Information and Unless Otherwise Specified)

1. Company history

Rectron Ltd. (the “Company”) was established and approved by the Ministry of Economic Affairs on January 23, 1976. The registered address is No. 71, Zhongshan Road, Tucheng District, New Taipei City. The Company was originally named "Rectron Precision Electronics Industry Co., Ltd." and changed its name to "Rectron Ltd." on June 29, 2000, as resolved by the shareholders' meeting and approved by the Ministry of Economic Affairs.

The Company and its subsidiaries (together referred to as the “Group”)main business operations include the manufacture and sale of various rectifiers, other semiconductor components, rental and sale of real estate, trading of wines, and manufacture and sale of medical equipment.

2. Approval date and procedures of the consolidated financial statements

The consolidated financial statements for the six months ended June 30, 2025 and 2024were authorized for issuance by the board of directors on August 14, 2025.

3. New standards and interpretations not yet adopted

(a) The impact of the International Financial Reporting Standards (“IFRSs”) 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 IAS21“Lack of Exchangeability”
(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective The Group’s anticipated adoption of the new amendments beginning on January 1, 2026, and concluded that their adoption will not have a material impact on the 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
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”
(c) 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:

(Continued)

Standards or Interpretations IFRS 18 “Presentation and Disclosure in Financial Statements”	Content of amendment 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.	Effective date per IASB
		January 1, 2027

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”

4. Summary of significant accounting policies

(1) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC)for a complete set of the annual consolidated financial statements.

(Continued)

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024.

(2) Basis of consolidation

(a) List of subsidiaries in the consolidated financial statements:

Name of
Name of
investor
subsidiary
Principal activity
The
Company
Rectron
(China)
Limited
(Rectron
China)
Sales of rectifiers, etc.
Electronic components
The
Company
RECTRON
ELECTRONIC
ENTERPRISE
S,INC (REEI)
Sales of rectifiers, etc.
Electronic components
The
Company
CHU-TING
ENTERPRISE
CO., LTD.
(Chu-Ting)
Wholesale of tobacco and
alcohol products and
manufacturing and sales of
medical equipment.
Rectron
(China)
Limited
Zhejiang
Rectron
Electronic
Co.,LTD.
(Zhejiang
Rectron)
Manufacturing and sales of
rectifiers and other
electronic components.

Shareholding
June 30,
2025
December
31, 2024
June 30, 2024
Description
100%
100%
100%
Subsidiaries with direct
ownership of voting rights
exceeding 50% of the
total shares issued.
100%
100%
100%
Subsidiaries with direct
ownership of voting rights
exceeding 50% of the
total shares issued.(Note)
100%
100%
100%
Subsidiaries with direct
ownership of voting rights
exceeding 50% of the
total shares issued. (Note)

100%
100%
100%
Subsidiaries with indirect
ownership of voting rights
exceeding 50% of the
total shares issued.

Note : It is an insignificant subsidiary that the financial statements have not been reviewed.

(b) List of subsidiaries which are not included in the consolidated financial statements: None.

(3) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period (and allocated to current and deferred taxes based on its proportionate size).

For a change in tax rate that is substantively enacted in an interim period, the effect of the change should immediately be recognized in the interim period in which the change occurs.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(4) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

(Continued)

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34“Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions 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.

Except for the following, the preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 5of the consolidated financial statements for the year ended December 31, 2024.

6. Explanation of significant accounts

Except for the following disclosures, there were no material differences in the disclosures of significant accounts between the interim consolidated financial statements for the current period and the 2024 consolidated financial statements. Please refer to note6 to the 2024 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash on hand and petty cash Cash in banks Time deposits Cash and cash equivalents in the consolidated statement of cash flows	June 30, 2025	December 31, 2024	June 30, 2024
	$ 135 425,135 136,245	311 564,083 -	225 581,390 38,940
	$ 561,515	564,394	620,555

Please refer to Note 6(q) for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities.

(b) Financial assets
Current financial assets at fair value through profit or loss

June 30, 2025 Financial assets designation as measured at fair value through profit or loss Shares of stock of overseas listed companies - NVDA $ 66,891 Shares of stock of overseas listed companies - LMT - Shares of stock of overseas listed companies – TESLA 49,143 Assets mandatorily measured at fair value through profit or loss: Beneficiary certificates 727 Total $ 116,761	December 31, 2024 63,619 - 68,186 770 132,575	December 31, 2024 63,619 - 68,186 770 132,575	June	30, 2024 16,094 15,158 - 864 32,116

(Continued)

Non-current financial assets at fair value through other comprehensive income

Debt investments at fair value through other comprehensive income Corporate bonds– Apple Corporate bonds – AT&T Corporate bonds–Pfizer Equity investments at fair value through other comprehensive income Shares of stock of unlisted companies Total	June 30, 2025 $ 22,795 8,074 3,446 10,461 $ 44,776	December 31, 2024 25,602 9,151 3,929 17,185 55,867	December 31, 2024 25,602 9,151 3,929 17,185 55,867	June 30, 2024 25,720 9,278 4,071 17,258 56,327	June 30, 2024 25,720 9,278 4,071 17,258 56,327

					56,327

(1) Debt investments at fair value through other comprehensive income The Company consolidated investments in bonds measured at fair value through other comprehensive income in the financial statements as of June 30, 2025 December 31, 2024 and June 30, 2024. The effective interest rates range from 2.00% to 4.01%, , and the maturity dates range from 2036 to 2045. The Company holds bond investments through the business model of collecting contractual cash flows and selling financial assets, and therefore reports them as financial assets measured at fair value through other comprehensive income.
(2) Equity investments at fair value through other comprehensive income
On June 26, 2025, the Company sold part of its shares in Sunny Bank that were classified as financial assets at fair value through other comprehensive income (FVOCI). The fair value at the time of disposal was $4,750 thousand, and the disposal gain amounted to $1,333 thousand. Accordingly, the accumulated disposal gain was reclassified from other equity to retained earnings.
(3) For credit risk (including the impairment of debt investments) and market risk; please refer to note 6(q).
(4) As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group’s financial assets were not pledged as collateral.

(c) Trade receivables and notes receivable

Notes receivable from operating activities Trade receivables Trade receivables–Non-current (Accounted for under other non- current assets – others) Less: Loss allowance	$	June 30, 2025 508 155,553 48,227 (66,865) $ 137,423	December 31, 2024 793 163,249 48,227 (71,266) 141,003	June	30, 2024 671 172,209 48,227 (73,006) 148,101

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as

(Continued)

well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision were determined as follows:

	June 30, 2025
Gross carrying amount $ 115,083 22,532 66,673 $ 204,288	Weighted- average loss rate 0.05%~2.09% 0.05%~5.60% 0%~100% December 31, 2024	Loss allowance provision
		- 201 66,664
		66,865

Gross carrying amount $ 112,799 27,234 72,236 $ 212,269	Weighted- average loss rate 0.05%~1.97% 0.05%~5.39% 0%~100% June 30, 2024	Loss allowance provision
		- - 71,266
		71,266

Gross carrying amount $ 119,321 29,526 72,260 $ 221,107	Weighted- average loss rate 0.05%~1.94% 0.05%~9.13% 0%~100%	Loss allowance provision
		108 652 72,246
		73,006

The movements in the allowance for trade receivables and notes receivable were as follows:

For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2025 71,266 - (1,896) (2,505) 66,865	2024 72,605 590 (1,539) 1,350 73,006
$
$

(Continued)

As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group’s the aforementioned trade receivables and notes receivable were not pledged as collateral.

(d) Inventories

entories
June 30, 2025 Raw materials and consumables 26,821 Work in progress 12,897 Finished goods 87,604 Merchandise 33,676 Goods and materials in transit 1,140 Subtotal 162,138 Less: Allowance for inventory market decline and obsolescence (15,101) 147,037	June 30, 2025	December 31, 2024	June 30, 2024
	26,821 12,897 87,604 33,676 1,140	24,511 8,774 75,877 28,507 1,735	26,762 20,878 53,153 30,739 1,846
		142,404 (16,358)	133,438 (16,925)
	147,037	126,046	116,813

As of June 30, 2025, January1to 2024 and June 30, 2024, the details of the cost of sales were as follows:

follows:
		For the three months ended		For the six months ended
		June 30,		June 30,
		2025	2025	2024	2024
Inventory that has been sold	$	136,215	130,07	251,94	215,944
Write-down of inventories		(1,636)	(257)	(1,257)	502
(Reversal of write-downs)
The impact of actual		219	77	619	4,498
production capacity being
lower than normal capacity.
Total	$	134,798	130,59	251,30	220,944

As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group’s the aforementioned trade receivables and notes receivable were not pledged as collateral.

(Continued)

(e) Property, plant and equipment

The cost and accumulated depreciation of the property, plant and equipment of the Group for the six months ended June 30, 2025 and 2024 were as follows:

Land $ 181,394 - - - -	Buildings and structures	Machinery and equipment 698,340 2,854 3,811 - (38,193)	Office quipment 59,827 660 - (114) (1,605)	Total 1,415,838 10,923 (11,119) (114) (73,437)
	254,947 5,148 161,339 - (29,606)
$ 181,394 $ 181,394 - - -	391,828	666,812	58,768	1,342,091
	248,881 304 - 4,708	677,096 1,603 1,011 12,492	56,394 926 1,806 574	1,177,102 11,382 (1,315) 17,949
$ 181,394 $ - - - -	253,893	692,202	59,700	1,205,118
	149,482 6,440 - (9,526)	576,196 11,431 - (32,976)	54,370 1,281 (114) (1,498)	780,048 19,152 (114) (44,000)
$ -	146,396 135,743 5,092 2,840 143,675 105,465 245,432 113,138 110,218	554,651	54,039 50,817 1,422 507	755,086 718,515 18,265 13,917 750,697 635,790 587,005 458,587 454,421
$ - - -		531,955 11,751 10,570
$ -		554,276	52,746 5,457 4,729 5,577 6,954
$ 181,394		122,144
$ 181,394		112,161
$ 181,394		145,141
$ 181,394		137,926

As of June 30, 2025, December 31, 2024 and June 30, 2024, the Property, plant and equipment of the Group had been pledged as collateral for long-term borrowings; please refer to note 8.

For the details regarding the subsidiary Zhejiang Rectron housing and construction relocation agreement with Jiashan Economic Development Zone Asset Management Co., Ltd., please refer to Note 9(b).

(Continued)

(f) Right-of-use assets

The Group leases many assets including land and buildings, vehicles, and other equipment.

Information about leases for which the Group is a lessee is presented below:

Cost: Balance at January 1, 2025 Reclassification Effect of movement in exchange rates Balance at June 30, 2025 Balance at January 1, 2024 Effect of movement in exchange rates Balance at June 30, 2024 Accumulated depreciation and impairment losses: Balance at January 1, 2025 Depreciation for the year Effect of movement in exchange rates Balance at June 30, 2025 Balance at January 1, 2024 Depreciation for the year Effect of movement in exchange rates Balance at June 30, 2024 Carrying amount: Balance at January 1, 2025 Balance at June 30, 2025 Balance at January 1, 2024 Balance at June 30, 2024	Land $ 10,276 11,119 (1,033) $20,362 $ 9,906 303 $ 10,209 $ 1,891 232 (182) $ 1,941 $ 1,520 155 47 $ 1,722 $ 8,385 $ 18,421 $ 8,386 $ 8,487	Buildings 13,716 (1,495) 12,221 12,826 728 13,554 8,474 1,160 (1,015) 8,619 5,724 1,141 346 7,211 5,242 3,602 7,102 6,343	Machinery and equipment	Other equipment 343 - 343 343 - 343 144 36 - 180 72 36 - 108 199 163 271 235	Total 26,849 11,119 (2,528)
			2,514 -
			2,514		35,440
			- -		23,075 1,031
			-		24,106
			280 420 -		10,789 1,848 (1,197)
			700		11,440
			- - -		7,316 1,332 393
			-		9,041
			2,234 1,814 - -		16,060
					24,000
					15,759
					15,065

In 2025, the subsidiary Zhejiang Rectron acquired a parcel of land located in Huimin Sub-district, Jiashan County, Zhejiang Province, with a total area of 3,031 square meters. The land use right, designated for the Company’s plant and office purposes, was recognized at an original cost of $11,119 thousand (RMB 2,694 thousand). The land use right has a term of 50 years and is amortized on a straight-line basis over the actual period of use.
For the details regarding the subsidiary Zhejiang Rectron right-of-use assets land relocation agreement with Jiashan Economic Development Zone Asset Management Co., Ltd., please refer to Note 9(b).

(Continued)

(g) Investment property

Cost: Balance at January 1, 2025 Effect of movement in exchange rates Balance at June 30, 2025 Balance at January 1, 2024 Effect of movement in exchange rates Balance at June 30, 2024 Accumulated depreciation and impairment losses: Balance at January 1, 2025 Depreciation for the year Effect of movement in exchange rates Balance at June 30, 2025 Balance at January 1, 2024 Depreciation for the year Effect of movement in exchange rates Balance at June 30, 2024 Carrying amount: Balance at January 1, 2025 Balance at June 30, 2025 Balance at January 1, 2024 Balance at June 30, 2024	Land and improvements $ 663,510 - $ 663,510 $ 663,510 - $ 663,510 $ - - - $ - $ - - - $- $ 663,510 $ 663,510 $ 663,510 $ 663,510	Buildings 377,011 (7,843) 369,168 373,879 2,559 376,438 84,537 4,915 (2,915) 86,537 73,500 5,018 781 79,299 292,474 282,631 300,379 297,139	Total
			1,040,521 (7,843)
			1,032,678
			1,037,389 2,559
			1,039,948
			84,537 4,915 (2,915)
			86,537

			73,500 5,018 781
			79,299
			955,984
			946,141
			963,889
			960,649

Investment properties are self-owned assets held by the Consolidated Companies. The lease term for investment properties ranges from 1 to 6 years, and it is non-cancellable. Due to the need for organic renewal and industrial transformation and upgrading in the Jiashan Economic and Technological Development Industrial Park, where the subsidiary Zhejiang Rectron is located, Zhejiang Rectron agreed to vacate the premises with Jiashan Economic Development Zone Asset Management Co., Ltd. on September 22, 2024. Therefore, the lease contract was terminated at the end of August 2024. Please refer to Note 9(b) for details.
Due to the restriction in the law at that time, private entities were not allowed to acquire agricultural land. Therefore, the Consolidated Companies appointed Mr. Lin Wen-Teng, one of the directors, to register the real estate investment under his personal name. To ensure the preservation of the Consolidated Companies' assets, the property has been pledged back to the Consolidated Companies.
The fair value of investment property was not significantly different from those disclosed in Note 6(g) of the annual consolidated financial statements for the year ended December 31, 2024.
As of June 30, 2025, December 31, 2024 and June 30, 2024, the Property, plant and equipment of the Group had been pledged as collateral for long-term borrowings; please refer to note 8.

(Continued)

(h) Short-term borrowings

June 30, 2025	December 31, 2024	June 30, 2024
$ -	-	5,000
$ 420,000	420,000	395,000
-	1.90%~2.01%	1.90%~2.01%

For the collateral for short-term borrowings, please refer to note 8.

(i)Operating Lease

There were no significant changes in operating lease for the six months ended June 30, 2025 and 2024. Please refer to Note 6(i) of the consolidated financial statements for the year ended December31, 2024 and 2022 for other related information.

(j)Provisions

Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or no other material onetime events since prior fiscal year. As a result, thepensioncostintheaccompanyinginterimperiodwasmeasuredanddisclosedaccording to the actuarial report as of December 31, 2024and 2022.

The expenses recognized in profit or loss for the Group are as follows:

	For the Three months Ended	For the Three months Ended	For the	Six months Ended
		June 30		June 30
	2025	2024	2025	2024
Operating cost	-	3	-	5
Administration expenses	-	5	-	10
Total	-	8	-	15

Defined contribution plans

The Group’s employee benefit retirement expenses respectively.

Operating cost Selling expenses Administration expenses Research and development expenses Total	For the Three months Ended June 30	For the Six months Ended June 30 2025 2024 235 253 132 93 423 401 - 11 790 758	For the Six months Ended June 30 2025 2024 235 253 132 93 423 401 - 11 790 758
	2025 2024	2025
	$ 117 119 66 48 204 206 - -	235 132 423 -
	$ 387 373	790

The detailed breakdown of retirement benefit expenses recognized by foreign subsidiaries in accordance with relevant local regulations is as follows:

Administration expenses	For the Three months Ended June 30	For the Six months Ended June 30
	2025 2024	2025 2024 1,816 1,812
	$ 890 786

(Continued)

(k) Income tax

The components of income tax for the six months ended June 30, 2025 and 2024 were as follows:

follows:
Current tax expenses Prior years income tax adjustment	For the three months ended June 30 2025 2024 $ 15,469 7,895 (432) 100 $15,037 7,995		For the six months ended June 30
	2025 $ 15,469 (432) $15,037		2025 15,469 (432) 15,037	2024
		7,895 100 7,995		12,460 100
				12,560

(1) Company’s income tax return for the year 2023 as been examined by the tax authorities.

(2)The domestic subsidiaries of the Company have filed and settled their corporate income tax returns with the tax authorities up to the fiscal year 2023 as approved.

(l)Capital and other equity

Except for the following disclosure, there was no significant change in capital and other equity for the periods from January 1 to June 30, 2025 and 2024. For the related information, please refer to note 6(l) to the consolidated financial statements for the year ended December 31, 2024.

Retained earnings

If the Company has surplus in the annual final accounts, it shall pay taxes and donations in accordance with the law, offset cumulative losses, and then appropriate 10% as statutory surplus reserve. However, when the statutory surplus reserve has reached the Company's paid-in capital, no further appropriation is required. The remaining surplus shall be appropriated or reversed as required by laws and regulations, or transferred to the special surplus reserve. If there is still surplus, together with undistributed surplus at the beginning of the period, it will be classified as distributable surplus. The Board of Directors shall propose a surplus distribution plan for approval by the shareholders' meeting, and distribute dividends to the shareholders.

Taking into account financial, operational, and business factors, the Company may distribute dividends to shareholders, which shall not be less than 10% of the distributable surplus for the current fiscal year. However, if the accumulated distributable surplus is less than 3% of the paidin capital, no distribution shall be made. Dividends may be distributed in the form of cash dividends or stock dividends. Cash dividends shall be given priority in the distribution of earnings, but stock dividends may also be distributed. The proportion of cash dividends shall not be less than 10% of the total dividend amount.

For the distribution of dividends to shareholders in the form of cash, the Board of Directors is authorized to carry out such distribution with the approval of two-thirds or more of the attending directors and a majority of the attending directors, and to report it to the shareholders' meeting.

(i) Legal reserve

When a company incurs profit, the shareholders shall decide on the distribution of the statutory earnings reserve either by issuing new shares or by paying cash of up to 25% of the actual share capital.

(ii) Special reserve

The Company chose to apply the exemption under IFRS 1 at its initial adoption of IFRSs. Any unrealized revaluation surplus, accumulated translation adjustment, and increasing amount incurred from adopting the fair value as cost for the assets classified as investment property at the transition date. According to the Financial Supervisory Commission's Order No. 1010012865 issued on April 6, 2012, an equal amount shall be appropriated to the

(Continued)

special surplus reserve. When using, disposing of, or reclassifying related assets, a proportionate reversal of the originally appropriated special surplus reserve may be distributed as earnings.

According to the regulations of the Financial Supervisory Commission, when the Company distributes distributable earnings, the difference between the net amount of reductions in other shareholders' equity items recorded in the current year and the balance of the special surplus reserve mentioned above shall be considered. When distributing earnings for the fiscal year 2024, the Company will allocate the current year's income and the undistributed earnings from previous periods to the special surplus reserve. When distributing earnings for the fiscal year 2025, the Company will allocate the current year's after-tax net profit, along with items other than the current year's after-tax net profit, to the undistributed earnings and the special surplus reserve from previous periods. The Company is not allowed to distribute the amounts related to reductions in other shareholders' equity from previous periods, except for the allocation to the special surplus reserve. In the event of reversals in the amounts of reductions in other shareholders' equity in the future, earnings may be distributed based on the reversed portion. As of June 30, 2025, December 31, 2024, and June 30, 2024, the balance of the special surplus reserve is $103,296 thousand, $87,143 thousand, and $87,143 thousand, respectively.

(iii) Earnings distribution

The amounts of cash dividends and share dividends for the 2024 and 2023 earnings distribution had been approved, the board meeting held on March 11, 2025 and March 15, 2024; while the earnings distribution for 2024 and 2022 had been approved during the shareholders’ meeting on May 29, 2025 and June 26, 2024 as follows:

Cash dividends distributed to ordinary shareholders (iv) OCI accumulated in reserves Balance at January 1, 2025 Exchange differences on foreign operations Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance at June 30, 2025 Balance at January 1, 2024 Exchange differences on foreign operations Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Balance at June 30, 2024		2024 2023 Amount per share Total amount Amount per share Total amount $0.58 96,456 0.31 51,554 Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total $ (98,256) (5,040) (103,296) (10,825) - (10,825) - (1,871) (1,871) (1,333) $ (109,081) (8,244) (117,325) $ (83,104) (4,039) (87,143) 8,852 - 8,852 - (340) (340) $ (74,252) (4,379) (78,631)	2024 2023 Amount per share Total amount Amount per share Total amount $0.58 96,456 0.31 51,554 Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total $ (98,256) (5,040) (103,296) (10,825) - (10,825) - (1,871) (1,871) (1,333) $ (109,081) (8,244) (117,325) $ (83,104) (4,039) (87,143) 8,852 - 8,852 - (340) (340) $ (74,252) (4,379) (78,631)

			(8,244) (117,325)
			(4,039) (87,143) - 8,852 (340) (340)
			(4,379) (78,631)

(Continued)

(m) Earnings per share

For the six months ended June 30, 2025 and 2024, the Company’s earnings per share were calculated as follows:

1. Basic earnings per share

(i) Profit attributable to ordinary shareholders of the Company

Profit/(loss) of the Company for the year	For the three months ended June 30 2025 2024 $ 11,395 31,813	For the six months ended June 30	For the six months ended June 30
	2025 $ 11,395	2025 3,841	2024
			50,074

(ii) Weighted-average number of ordinary shares

Weighted-average number of ordinary shares(thousand shares) Earnings per share	For the three months ended June 30 2025 2024 $ 166,303 166,303 0.07 0.19	For the six months ended June 30	For the six months ended June 30
		2025 166,303 0.02	2024
			166,303
			0.30

2. Diluted earnings per share

The diluted earnings per share of the Group for the fiscal year 2025 and the period from January 1, 2024, to June 30, 2024, are calculated based on the net income attributable to the equity holders of the Company and the adjusted weighted average number of ordinary shares outstanding, considering the dilutive effects of all potential ordinary shares. The calculations are as follows:

(i) Profit attributable to ordinary shareholders of the Company

For the three months ended June 30 2025 2024 Profit/(loss) attributable to ordinary shareholders of the Company (basic) $11,395 31,813 ii) Weighted-average number of ordinary shares For the three months ended June 30 2025 2024 Weighted-average number of ordinary shares (thousand shares) (basic) $166,303 166,303 Effect of employee share bonus 55 36 Weighted-average number of ordinary shares (thousand shares) (diluted) 166,358 166,339 Earnings per share 0.07 0.19	For the three months ended June 30 2025 2024 Profit/(loss) attributable to ordinary shareholders of the Company (basic) $11,395 31,813 ii) Weighted-average number of ordinary shares For the three months ended June 30 2025 2024 Weighted-average number of ordinary shares (thousand shares) (basic) $166,303 166,303 Effect of employee share bonus 55 36 Weighted-average number of ordinary shares (thousand shares) (diluted) 166,358 166,339 Earnings per share 0.07 0.19	For the six months ended June 30	For the six months ended June 30
		2025 2024 3,841 50,074 For the six months ended June 30	2024
			50,074
2025 $166,303 55 166,358 0.07		2025 166,303 55 166,358 0.02	2024
	166,303 36 166,339 0.19		166,303 61
			166,364
			0.30

(ii) Weighted-average number of ordinary shares

(Continued)

(n) Revenue from contracts with customers

i. Disaggregation of revenue

For the three months ended June 30, 2025

Electronics Division Primary geographical markets Asia $ 178,156 America 26,907 Europe 2,421 Others 182 $ 207,666 Major products/services lines Electronic Components Sales $207,666 Rental Income - Medical Equipment Sales - Wine Trading - 207,666	Property Management Division 5,691 - - - 5,691 - 5,691 - - 5,691	Medical Equipment Division 2,303 - - 2,303 - - 2,303 - 2,303	Wine Trading Department 865 - - -	Total
				187,015 26,907 2,421 182
			865	216,525
			- - - 863 865	207,666 5,691 2,303 865
				216,525

For the three months ended June 30, 2024

Electronics Division Primary geographical markets Asia $ 175,647 America 17,431 Europe 1,392 Others 387 $ 194,857	Property Management Division 5,687 - - - 5687,	Medical Equipment Division 2,014 - - - 2,014	Wine Trading Department 863 - - - 863	Total
				184,211 17,431 1,392 387
				203,421

(Continued)

For the three months ended June 30, 2024

Electronics Division Major products/services lines Electronic Components Sales $ 194,857 Rental Income - Medical Equipment Sales - Wine Trading - $ 194,857	Property Management Division - 5,687 - - 5,687	Medical Equipment Division Wine Trading Department - - - - 2,014 - - 863 2,014 863	Total
			194,857 5,687 2,014 863
			203,421

For the six months ended June 30, 2025

Electronics Division Primary geographical markets Asia $ 334,312 America 51,522 Europe 4,706 Others 452 337 $ 390,992 Major products/services lines Electronic Components Sales $ 390,992 Rental Income - Medical Equipment Sales - Wine Trading - $ 390,992	Property Management Division 11,337 - - - 11,123 - 11,337 - - 11,337	Medical Equipment Division 4,944 - - - 4,944 - - 4,944 - 4,944	Wine Trading Department 2,728 - - -	Total
				353,321 51,522 4,706 452
			2,728	410,001
			- - - 2,728 2,728	390,992 11,337 4,944 2,728
				410,001

(Continued)

For the six months ended June 30, 2024

Electronics Division Primary geographical markets Asia $ 290,210 America 39,548 Europe 2,694 Others 634 $ 333,086 Major products/services lines Electronic Components Sales $ 333,086 Rental Income - Medical Equipment Sales - Wine Trading - $ 333,086	Property Management Division 11,123 - - - 11,123 - 11,123 - - 11,123	Medical Equipment Division 4,796 - - - 4,796 - - 4,796 - 4,796	Wine Trading Department 1,673 - - - 1,673 - - - 1,673 1,673	Total
				307,802 39,548 2,694 634
				350,678
				333,086 11,123 4,796 1,673
				350,678

ii. Contract balances

Trade receivables and notes receivable Less: allowance for impairment Contract liabilities	$	June 30, 2025 156,061 (18,638) 137,423 1,600		December 31, 2024 164,042 (23,039)		June 30, 2024 172,880 (24,779)
	$			141,003		148,101
	$			38		2,838

For details on trade receivables and allowance for impairment, please refer to note 6(c).

(o) Remunerations to employees, directors and supervisors

According to the Company’s Articles of Incorporation, if the Company has earnings for the year (earnings being defined as profit before tax and before deduction of employees’ and directors’ remuneration), no less than 1% of such earnings shall be allocated as employees’ remuneration (of which not less than 30% shall be distributed to rank-and-file employees) and no more than 2% shall be allocated as directors’ remuneration; however, if the Company still has accumulated losses, the

(Continued)

amount required to be reserved for making up such losses shall be retained in advance. The recipients of the aforementioned employees’ remuneration, whether in the form of shares or cash, may include employees of the Company’s subsidiaries who meet certain criteria.

For the three months and the six months ended June 30, 2025 and 2024, remuneration of employees of $300 thousand, $410 thousand, $300 thousand, and $650 thousand, respectively, and remuneration of directors of $200 thousand, $320 thousand, $200 thousand, and $750 thousand, respectively, were estimated on the basis of the Company’s net profit before tax, excluding the remuneration of employees and directors of each period, multiplied by the percentage of remuneration of employees and directors as specified in the Company’s articles of incorporation. Such amounts were recognized as operating expenses for the six months ended June 30, 2025 and 2024, Management is expecting that the differences, if any, between the actual distributed amounts and estimated amounts will be treated as changes in accounting estimates and will be charged to profit or loss. The number of shares to be distributed was calculated based on the closing price of the Company’s ordinary shares, one day prior to Board of Directors meeting.

For 2024, the amounts of employees’ and directors’ remuneration as resolved by the Board of Directors were consistent with the amounts accrued in the parent company only financial statements. For 2023, the amount of employees’ remuneration as resolved by the Board of Directors was consistent with the amount accrued in the parent company only financial statements; however, the amount of directors’ remuneration as resolved by the Board of Directors differed from the accrued amount in the parent company only financial statements by $600 thousand. The difference was mainly due to an accounting estimate discrepancy of the Company and was recognized in profit or loss for 2024. Relevant information can be found on the Market Observation Post System (MOPS).

(p) Non-operating income and expenses
Other income

er income
For the three months ended June 30 2025 2024 Interest income $ 2,820 4,644 Dividend income 26 127 $ 2,846 4,771 er gains and losses For the three months ended June 30 2025 2024 Foreign exchange gains (losses) $ (43,814) 7,483 Gains (losses) on financial assets at fair value through profit or loss 32,573 1,412 Disposal of investment losses 37 Others 50 (12) $(11,191) 8,920 ance costs For the three months ended June 30 2025 2024 Interest expense $(44) (88)	For the three months ended June 30 2025 2024 $ 2,820 4,644 26 127 $ 2,846 4,771 For the three months ended June 30		For the six months ended June 30
			2025 2024 7,246 7,399 50 191 7,296 7,590 For the six months ended June 30	2024
				7,399 191
				7,590

		2024	2025 2024 (35,125) 12,014 (14,020) 6,646 37 57 31 52,088 18,728 For the six months ended June 30	2024 12,014 6,646 37 31 18,728
		7,483 1,412 37 (12)
		8,920
			2025 (92)	2024
				(172)

Other gains and losses
Finance costs

(Continued)

(q) Financial instruments

1. Credit risk

(i) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

(ii) Concentration of credit risk

The Group has a broad customer base and does not engage in significant transactions with any single customer. Additionally, its sales are geographically diversified. Therefore, there is no significant concentration of credit risk.

(iii) Receivables and debt securities

For credit risk exposure of trade receivables and notes receivable, please refer to note 6(c). Other financial assets at amortized cost include other receivables. All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12-month expected credit losses. The fixed deposits held by the group are transacted with and settled by financial institutions that have investment-grade ratings or above. Therefore, they are considered to have low risk. The loss allowances were determined as follows:

Balance at January 1, 2025 Balance at June 30, 2025 Balance at January 1, 2024 Balance at June 30, 2024	Other receivables
	$ 36,992
	$ 36,992
	$ 36,992
	$ 36,992

2. Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

June 30, 2025 Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities(include non- current) December 31, 2024 Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities(include non- current) June 30, 2024 Non-derivative financial liabilities Floating rate instruments Non-interest bearing liabilities Lease liabilities(include non- current)	Carrying amount Contractual cash flows Within 6 months 6-12 months 1-2 years 2-5 years Over 5 years
	$ 277,684 277,684 277,647 37 - - - 5,792 5,931 1,616 1,616 2,519 180 -
	$ 283,476 283,615 279,263 1,653 2,519 180 -
	$ 350,873 350,873 350,836 37 - - - 7,900 8,159 1,729 1,760 3,334 1,336 -
	$ 358,773 359,032 352,565 1,797 3,334 1,336 -
	$ 5,000 5,008 5,008 - - - - 187,124 187,124 187,124 - - - - 6,779 7,138 1,275 1,280 4,547 36 -
	$ 198,903 199,270 193,407 1,280 4,547 36 -

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

(Continued)

3. Market risk

(i) Currency risk

The Group’s significant exposure to foreign currency risk was as follows:

Financial assets Monetary items USD : NTD USD : CNY Non-monetary items USD Financial liabilities Monetary items USD : NTD USD : CNY	June 30, 2025	December 31, 2024	June 30, 2024 Foreign currency Exchange rate NTD 7,791 32.450 252,818 27,513 7.810 892,797 1,204 32.450 39,068 5,972 32.450 193,791 - - -
	Foreign currency Exchange rate NTD $ 14,224 29.300 416,763 382 7.162 11,193 1,171 29.300 34,315 5,834 29.300 170,936 31 7.162 908	Foreign currency Exchange rate NTD 14,377 32.785 471,350 32,227 7.321 1,056,562 1,180 32.785 38,682 4,366 32.785 143,139 10,040 7.321 329,161

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade and other receivables, financial assets at fair value through other comprehensive income, and trade and other payables that are denominated in foreign currency.

A strengthening (weakening) of 0.5%of the NTD against the USD, and CNY as at six months of 2024 and 2021 would have increased (decreased) the net profit after tax by $1,024 thousand and $3,895 thousand, and the equity by $137 thousand and $156 thousand. The analysis is performed on the same basis.

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the six months ended June 30, 2025 and 2024, the foreign exchange gain (loss) (including realized and unrealized portions) amounted to $38,125 thousand and $12,014 thousand, respectively.

(ii) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group's financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.5% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased / decreased by 0.5% basis points, the Group’s net income would have increased / decreased by $0 thousand and $10 thousand for the six months ended June 30, 2025 and 2024, respectively, with all other variable factors remaining constant. This is mainly due to the Group’s borrowing at variable rates.

(iii) Other market price risk

For the six months ended June 30, 2025 and 2024, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for profit or loss as illustrated below:

(Continued)

28	28	28	28	28	28
For the six months ended June 30, 2025 2024 Prices of securities at the reporting date Other comprehensive income after tax Net income Other comprehensive income after tax Net income	For the six months ended June 30,
	2025 2024
			Net income Other comprehensive income after tax		Net income
0.5% increase $ 0.5% decrease $		52 (52)	464 (464)	86 (86)	255 (125)

Fair value of financial instruments
(i) Fair value hierarchy

The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

		June 30, 2025
Book Value		Fair	Value		Total 116,034 727
	Level 1	Level 2		Level 3
$ 116,034 727	116,034 727	- -		- -
116,761	116,761	-		-	116,761
34,315 10,461	- -	34,315 10,461		- -	34,315 10,461
44,776	-	44,776		-	44,776
561,515 137,423 11,094 1,384 711,416 $ 872,953 $ 148,335 129,349 5,792 3,992 $ 287,468	- - - - - 116,761 - - - - -	- - - - - 44,776 - - - - -		- - - - - - - - - - -	- - - - - 161,537 - - - - -

(Continued)

	December 31, 2024	December 31, 2024	December 31, 2024
Book Value	Level 1 131,805 770 132,575 - - -	Fair	Value
		Level 2 - - - 38,682 17,185 55,867	Level 3 - - - - - -	Total 131,805 770 132,575 38,682 17,185 55,867
$ 131,805 770 132,575 38,682 17,185 55,867
564,394 141,003 4,218 1,413 711,028 $ 899,470 $ 131,353 219,520 7,900 4,653 $ 363,426	- - - - - 132,575 - - - - -	- - - - - 55,867 - - - - -	- - - - - - - - - - -	- - - - - 188,442 - - - - -

		June 30, 2024
Book Value	Level 1	Fair	Value
		Level 2 - - - 39,069 17,258 39,069	Level 3 - - - - - -	Total 31,252 864 32,116 39,069 17,258 39,069
$ 31,252 864 32,116 39,069 17,258 39,069	31,252 864 32,116 - - -

(Continued)

June 30, 2024

			June 30, 2024			3
Financial assets measured at amortized cost Cash and cash equivalents Trade receivables and notes receivable (including related parties) Other receivables Guarantee deposits paid (Recognition of other non-current assets) Subtotal Total Financial liabilities measured at amortized cost Bank loans Trade payables Other payables Lease liabilities (including non- current) Guarantee deposits received (Recognition of other non-current liabilities) Total	Book Value		Fair	Value
		Level 1	Level 2		Level 3	Total
	620,555 148,101 5,168 323 774,147 $ 862,590 $ 5,000 105,465 81,659 6,779 4,756 $ 203,659	- - - - - 32,116 - - - - - -	- - - - - 56,327 - - - - - -		- - - - - - - - - - - -	- - - - - 88,443 - - - - - -

(ii) Valuation techniques for financial instruments measured at fair value

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

Measurements of fair value of financial instruments without an active market are based on valuation technique or quoted price from a competitor. Fair value, measured by using valuation technique that can be extrapolated from either similar financial instruments or discounted cash flow method or other valuation techniques, including models, is calculated based on available market data at the reporting date.

(iii) Transfers between Level 1 and Level 2

There were no transfers from level 2 to level 1 for the six months ended June 30, 2025 and 2024.

(r)Financial risk management

There were no significant changes in the Group's financial risk management and policies as disclosed in note6(r) to the consolidated financial statements for the year ended December 31, 2024.

(Continued)

(s) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2024. Also, management believes that there were no significant changes in the Group's capital management information as disclosed for the year ended December 31, 2024. Please refer to note6(s) to the consolidated financial statements for the year ended December 31, 2024 for further details.

(t) Investing and financing activities not affecting the current cash flow

To obtain the right to use assets through a leasing arrangement, please refer to note 6(f).

7. Related-party transactions

(a) Names and relationships with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

(b) Significant transactions with related parties

Name of related party Relationship with the Group Lin, I-Chin Chairman of this company LIN, WEN-TENG Director of this company Sunrise On The Bund The chairman of the subsidiary is the same as the chairman of the Hotel(Sunrise) Company. PU HWUA ENTERPRISE CO., Other related parties LTD.(Pu Hwua)

Juyang Xingye Industrial Co., The chairman of the Company is also a director of the subsidiary. Ltd. ( Juyang Xingye)

Juiye Enterprise Co., Ltd.(Juiye The chairman of the company is a director of the company. Enterprise)

Sales

The amounts of significant sales by the Group to related parties were as follows:

Other related parties	For the three months ended June 30 2025 2024 $ 887 883	For the six months ended June 30	For the six months ended June 30
	2025 $ 887	2025 2,767	2024
			1,697

The sales price of the group to the related party is not significantly different from the general selling price. The average credit period for related parties as of June 30, 2025, and January 1 to June 30, 2024, is approximately 120 days, while for general customers, it ranges from 30 to 90 days.

Receivables from related parties

The receivables from related parties were as follows:

(Continued)

3. Payables to related parties The payables to related parties were as follows: Account Relationship Trade receivables Other related parties Account Relationship Other payables Others	3. Payables to related parties The payables to related parties were as follows: Account Relationship Trade receivables Other related parties Account Relationship Other payables Others	June 30, 2025 December 31, 2024 June 30, 2024 $ 719 1,812 596 June 30, 2025 December 31, 2024 June 30, 2024 $ - 26 30
		$

	Others

4. Leases

The Group collected rental income from other related parties and affiliated companies, reporting lease income of $440 thousand, $430 thousand, $881 thousand and $860 thousand for the three months and the six months ended June 30, 2025 and 2024 respectively. As of June 30, 2025, December 31, 2024, and June 30, 2024, related rental deposits amounted to $270 thousand, $270 thousand and $405 thousand respectively.

In November 2022, the Group rented an office building from the Key management person to be used as its headquarter. A five-year lease contract was signed, in which the rental fee is determined based on nearby office rental rates. The total value of the contract was $5,309 thousand. For the three months and the six months ended June 30, 2025, and 2024 respectively, the Group recognized the amounts of $21 thousand, $31 thousand, $45 thousand and $63 thousand as interest expenses. As of June 30, 2025, December 31, 2024, and June 30, 2024, respectively the balance of lease liabilities amounted to $2,262 thousand, $3,029 thousand and $3,607 thousand.

5. Prepayments

Account Prepayments	Relationship Others	June 30, 2025 $ 5,201	December 31, 2024 3,138	June 30, 2024
				3,916

6. Other

The combined company's operating expenses related to other related parties the three months and the six months ended June 30, 2025, and 2024 were $1,794 thousand, $339 thousand, $4,064 thousand, and $707 thousand, respectively.

(c) Others

In case of registering real estate under the name of other related parties, please refer to Note 6(7) for details.

(d) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Post-employment benefits	For the three months ended June 30 2025 2024 $ 3,532 4,201 36 86 $ 3,568 4,287	For the six months ended June 30	For the six months ended June 30
	2025 $ 3,532 36 $ 3,568	2025 7,166 90 7,256	2024 10,705 124 10,829

(Continued)

8. Assets pledged as security

The carrying amounts of assets pledged as security were as follows:

Assets pledged as security Property, plant and equipment Investment property	Liabilities secured by pledge Long-term borrowings Long-term borrowings	June 30, 2025 $227,969 48,958 $276,927	December 31, 2024 229,510 49,507 279,017	June 30, 2024
				231,062 50,056
				281,118

9. Significant Commitments and Contingencies

(a) Unrecognized contractual commitments

As of June 30, 2025, December 31, 2024, and June 30, 2024, the detailed amounts of the contract prices for equipment and construction projects entered into by the Group with suppliers are as follows:

Signed-contract Paid-price	June 30, 2025 $ 32,414 $ 22,708	December 31, 2024 259,598 50,971	June 30, 2024
			33,422
			22,470

(b) In September 2024, the subsidiary Zhejiang Rectron signed a relocation compensation agreement with Jiashan Economic Development Zone Asset Management Co., Ltd., based on the strategic transformation needs of its industrial park. The agreed compensation amount was $660,724 thousand (RMB 161,653 thousand), and a signing bonus of $330,364 thousand (RMB 80,827 thousand) was received in the same year. In March 2025, the Company received $163,100 thousand (RMB 39,904 thousand). As of June 30, 2025, the total amount received was $493,463 thousand (RMB 120,731 thousand), which was recorded under other current liabilities. In addition, relocation expenses of $515 thousand (RMB 126 thousand) incurred during the current period were deducted from the proceeds in accordance with the relocation compensation agreement.

10. Losses due to major disasters: none

11. Subsequent events:

On August 14, 2025, the Board of Directors resolved to establish a new company as part of the Company’s production and sales deployment plan. The Company intends to make a 100% investment in Shanghai Lizhengda Industrial Co., Ltd., with a proposed investment amount of RMB 1,000 thousand.

12. Others

(a) A summary of employee benefits, depreciation, and amortization, by function, is as follows:

By function By item		For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,
		2025			2024
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	5,800 321 117 129 10,550 121	22,284 1,954 1,160 1,334 2,658 108	28,084 2,275 1,277 1,463 13,208 229	5,028 315 122 110 9,648 121	20,389 1,869 1,045 958 2,756 656	25,417 2,184 1,167 1,068 12,404 777

(Continued)

						3
By function By item		For the six months ended June 30,
		2025			2024
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	12,562 670 235 250 20,263 202	45,267 4,127 2,371 2,576 5,652 223	57,829 4,797 2,606 2,826 25,915 425	9,901 685 258 281 19,186 241	43,232 3,742 2,327 2,059 5,429 1,296	53,133 4,427 2,585 2,340 24,615 1,537

(b) Seasonality of operations

The Group's operations were not affected by seasonality or cyclicality factors.

13. Other disclosure items

(a) Information on significant transaction:

The followings were the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the six months ended June 30, 2025:

Lending to other parties:

==> picture [426 x 89] intentionally omitted <==

----- Start of picture text -----

Highest
balance Collateral
of Actual Transaction
financing usage Range of Purposes amount for Reasons Allowance
to other amount interest of fund business for short- for bad Individual Maximum
Number Name of lender borrower Name of Account name Related party parties during the balance Ending during period the during the period rates financing borrower for the two parties between financing term debt Item Value loan limits funding financing limit of fund
period
1 Rectron China CHU-TING Other Yes 189,775 134,194 134,194 - 2 - Operation - - - 413,080 413,080
receivables (note 3) (note 4) Requirements
Note 1: For business transactions with counterparties, the business transaction amount is determined based on the cumulative
sales (or purchases) amount between the two parties over the preceding twelve months.
----- End of picture text -----

Note2: According tour policy, the calculation for the maximum total amount of loans granted are as follows: (1) The Company Individual counterparty funding limit = Shareholders' equity x 40% = $1,728,725thousand x40% = $691,490thousand.

The maximum funding limit for an individual counterparty = Shareholders' equity x 40% = $1,728,725thousand x 40% = $691,490 thousand.

(2) Rectron Electronics (China) Individual counterparty funding limit = Shareholders' equity x 500% = $82,616 thousand x 500% = $413,080 thousand.

The maximum funding limit for an individual counterparty = Shareholders' equity x 500% = $82,616 thousand x 500% = $413,080 thousand.

Note 3: (1) Business transaction with counterparts exists.

(2) Short-term funding is necessary.
Guarantees and endorsements for other parties: None.
Information regarding securities held at the reporting date (subsidiaries, associates and joint ventures not included):

					(Amounts in Thousands of New Taiwan Dollar) June 30, 2025 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 10,461 0.05% 10,461 22,795 -% 22,795	(Amounts in Thousands of New Taiwan Dollar) June 30, 2025 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 10,461 0.05% 10,461 22,795 -% 22,795	(Amounts in Thousands of New Taiwan Dollar) June 30, 2025 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 10,461 0.05% 10,461 22,795 -% 22,795	(Amounts in Thousands of New Taiwan Dollar) June 30, 2025 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 10,461 0.05% 10,461 22,795 -% 22,795
Company holding securities	Security type and name	Relationship with the Company	Account		June 30, 2025			Remark
				Shares	Carrying value	Percentage of ownership (%)	Market value ( or net value)
The Company	Stock - Sunny Bank	-	Non-current financial assets at fair value through other comprehensive income	1,121,261	10,461	0.05%	10,461
The Company	Corporate bonds – Apple	-	Non-current financial assets at fair value through other comprehensive income	-	22,795	-%	22,795

(Continued)

								3
Company holding securities	Security type and name	Relationship with the Company	Account		June 30, 2025			Remark
				Shares	Carrying value	Percentage of ownership (%)	Market value ( or net value)
The Company	Corporate bonds – AT&T	-	Non-current financial assets at fair value through other comprehensive income	-	8,074	-%	8,074
The Company	Corporate bonds – Pfizer	-	Non-current financial assets at fair value through other comprehensive income	-	3,446	- %	3,446
CHU-TING	Fund – Yuan ta High Dividend 0056	-	Current financial assets at fair value through profit or loss	21,000	727	- %	727
CHU-TING	Stock - TESLA	-	Current financial assets at fair value through profit or loss	5,280	49,143	- %	49,143
CHU-TING	Stock - NVDA	-	Current financial assets at fair value through profit or loss	14,450	66,891	- %	66,891

Information regarding related-party purchases and/or sales exceeding 100 million or 20% of the

Company’s paid-in capital:

							(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)
Company name	Related party	Nature of relationship		Transaction details			Abno transa	rmal ction	Trade receivables (payables) and notes receivable (payable)		Remark
			Item	Amount	Percentage of the purchases (sales) (%)	Payment term	Unit price	Payment terms	Ending balance	Percentage of total receivables (payables)
The Company Rectron China Rectron China Zhejiang Rectron	Rectron China The Company Zhejiang Rectron Rectron China	Parent-subsidiary relationship Parent-subsidiary relationship Investee companies that are also evaluated using the equity method by the Company Investee companies that are also evaluated using the equity method bythe Company	Purchase Sales Purchase Sales	179,649 (179,649) 324,567 (324,567)	78 % (50) % 100 % (77) %	Normal Normal Normal Normal	Normal Normal Normal Normal	90-120 Days 90-120 Days 120 Days 120 Days	- - (7,203) 7,203	-% -% (100)% 51%

Note: The amount had been offset in the consolidated financial statements.

Information regarding receivables from related parties exceeding 100 million or 20% of the

Company’s paid-in capital: None.

					(Amounts in Thousands of New Taiwan Dollar) Overdue Amount received in subsequent period Allowance for bad debts Amount Action taken - - - -	(Amounts in Thousands of New Taiwan Dollar) Overdue Amount received in subsequent period Allowance for bad debts Amount Action taken - - - -	(Amounts in Thousands of New Taiwan Dollar) Overdue Amount received in subsequent period Allowance for bad debts Amount Action taken - - - -	(Amounts in Thousands of New Taiwan Dollar) Overdue Amount received in subsequent period Allowance for bad debts Amount Action taken - - - -
Company name	Related party	Nature of relationship	Balance as September 30, 2024	Turnover	O	verdue	Amount received in subsequent period	Allowance for bad debts
					Amount	Action taken
Rectron China	CHU-TING	Related party	134,194	-%	-	-	-	-

Note: The amount had been offset in the consolidated financial statements.

Significant transactions and business relationship between the parent company and its subsidiaries for the six months ended June 30, 2025:

(Amounts in Thousands of New Taiwan Dollar)

No. (Note 1)	Company name	Counterparty	Relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account	Amount	Terms	Percentage of total consolidated net sales or assets
0	Rectron Ltd.	Rectron China	1	Operating cost	179,649	Calculated with finished product cost plus agreedprofit.	44%
0	Rectron Ltd.	Rectron China	1	Trade payables	41,690	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	2%
0	Rectron Ltd.	REEI	1	Operating revenue	32,006	Calculated with finished product cost plus agreedprofit.	8%
0	Rectron Ltd.	REEI	1	Trade receivable	14,346	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	1%
1	Rectron China	Zhejiang Rectron	3	Operating cost	324,567	Calculated with finished product cost plus agreedprofit.	79%
2	CHU-TING	Rectron China	3	Other payables	134,194	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	6%

Note 1: Companies are numbered as follows:

(Continued)

Parent company － 0 Subsidiary － starting from 1

Note 2: The relationships between transaction parties are numbered as follows: Parent company and subsidiary － 1 Subsidiary and parent company － 2 Subsidiary and subsidiary － 3

(b) Information on investments:

The followings are the information on investees for the six months ended June 30, 2025:

(Amounts in Thousands of New Taiwan Dollar)

Name of investor	Name of investee	Location	Main businesses	Original i am	nvestment ount	Balanc	e as of June 30, 2025	e as of June 30, 2025	Net income (loss) of the investee	Investment income (loss) recognised by the Company
				June 30, 2025	December 31, 2024	Shares	Percentage	Carrying value
The Company	REEI	USA	Sales of rectifiers, etc. Electronic components	142,264	142,264	205,000	100.00%	2,418	(2,837)	(2,837)
The Company	Rectron China	Hong Kong	Sales of rectifiers, etc. Electronic components	282,573	282,573	20,000	100.00%	69,488	847	847
The Company	CHU-TING	Taiwan	Wholesale of tobacco and alcohol products and manufacturing and sales of medical equipment.	164,987	109,987	20,000,000	100.00%	195,568	(13,565)	(13,565)

Note: The amount had been offset in the consolidated financial statements.

(c) Information on investment in Mainland China:

Name of the investee in Mainland China, principal business activities, and other relevant information:

(Amounts in Thousands of New Taiwan Dollar)

Investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Inves	tment	Accumulated outflow of investment from Taiwan as of June 30, 2025	Net income (losses) of the investee	Percentage of ownership	Investment income (loss) recognized	Carrying value as of June 30, 2025	Accumulated inward remittance of earnings as of June 30, 2025
					Outflow	Inflow
Zhejiang Rectron	Manufacturing and sales of rectifiers and other electronic components.	64,029 USD2,000	NOTE 1(3)	409,029 USD12,000	-	340,857 USD10,000	68,172 USD2,000	2,189	100.00%	2,189	(7,427)	-

Note1: Zhejiang Rectron completed a capital reduction registration with the industrial and commercial authorities on November 15, 2024, reducing its capital by USD 10,000 thousand. The original investment amount was adjusted using the exchange rate of 32.47 on that date. The amount was repatriated to the Company on January 2, 2025, at an exchange rate of 32.865. The capital reduction was approved by the Investment Commission of the Ministry of Economic Affairs on May 13, 2025.

Upper limit on investment in Mainland China:

(Amounts in Thousands of New Taiwan Dollar)

Accumulated investment in Mainland China as of June 30, 2025	Investment amount authorized by Investment Commission, MOEA	Upper limit on investment
58,600 USD 2,000	174,921 USD 5,970	1,037,235

Note 1: Investment methods are categorized into the following three types, simply indicated by their types:

(1)Direct investment in mainland China.

(2)Investment in Mainland China through a third-party company in another region (please specify the investment company in that third region).

(3)Others method.

Note 2: In the investment gains/losses recognized in this period column:

(1)If it is under preparation and there are no investment gains/losses yet, it should be noted.

(2)The basis for recognizing investment gains/losses is the financial statements audited and certified by the certified public accountant of the Taiwan parent company.

Note 3: According to the "Principles for Reviewing Investment or Technical Cooperation in Mainland China," there are limits to the amount of investment.

Equity net worth × 60% = $1,728,725 thousand × 60% = $1,037,235 thousand.

Note 4: Zhejiang Rectron completed a capital reduction registration with the industrial and commercial authorities on November 15, 2024, reducing its capital by USD 10,000 thousand, and the amount was repatriated to the Company on January 2, 2025. The capital reduction was approved by the Investment Commission of the Ministry of Economic Affairs on May 13, 2025.

3. Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in "Information on significant transactions”.

(Continued)

14. Segment information

(a) General information

The consolidated company has four reporting segments: Electronics, Real Estate Investment, Medical Equipment, and Wine Trading. The Diode segment is engaged in the manufacturing and sales of various rectifiers and other semiconductor components. The Real Estate Investment segment is engaged in the business of leasing office buildings and factories. The Medical Equipment segment is engaged in the business of buying and selling and manufacturing masks. The Wine Trading segment is engaged in the business of trading red and white wines.

The reporting segments of the consolidated company are strategic business units that provide different products and services. As each strategic business unit requires different technology and marketing strategies, they need to be managed separately.

(b) Information of profit or loss, assets, liabilities, basis and adjustments of which of departments to be reported.

The consolidated company uses the departmental pre-tax profit (excluding non-recurring gains and losses and exchange gains and losses) reviewed by the chief operating decision-maker in the internal management report as the basis for resource allocation and performance evaluation by the management. Since income tax, non-recurring gains and losses, and exchange gains and losses are managed on a group basis, the consolidated company does not allocate income tax expenses (benefits), non-recurring gains and losses, and exchange gains and losses to the reporting segments. In addition, not all significant non-cash items, other than depreciation and amortization, are included in the income statement of all reporting segments. The amounts reported are consistent with the reports used by the operating decision-makers.

The information and adjustments for the operating segments of the consolidated company are as follows: The Group’s operating segment information and reconciliation are as follows:

For the three months ended June 30, 2025 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the three months ended June 30, 2024 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss	Electronics Department $ 207,666 325,494 $533,160 $(14,350) Electronics Department $ 194,857 164,682 $359,539 $37,542	Property Management Division 5,691 - 5,691 3,922 Property Management Division 5,687 - 5,687 3,648	Medical Devices Division 2,303 191 2,494 20,070 Medical Devices Division 2,014 42 2,056 (1,735)	Wine Trading Department 865 - 865 16,790 Wine Trading Department 863 - 863 353	Reconciliation and elimination - (325,685) (325,685) - Reconciliation and elimination - (164,724) (164,724) -	Total
						216,525 -
						216,525
						26,432
						Total
						203,421 -
						203,4215
						39,808

(Continued)

For the six months ended June 30, 2025 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the six months ended June 30, 2024 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss		Electronics Department $ 390,992 533,328 $ 924,320 $25,119 Electronics Department $ 333,086 286,530 $619,616 $55,3177		Property Management Division 11,337 - 11,337 7,586 Property Management Division 11,123 - 11,123 7,072		Medical Devices Division 4,944 237 5,181 (10,523) Medical Devices Division 4,796 214 5,010 (698)	Wine Trading Department 2,728 - 2,728 (3,304) Wine Trading Department 1,673 - 1,673 943		Reconciliation and elimination - (533,565) (533,565) - Reconciliation and elimination - (286,744) (276,979) -		38 Total 410,001 - 410,001 18,878 Total 350,678 - 350,678 62,634

(Continued)

AI assistant

RECTRON — Interim / Quarterly Report 2025

51998_rns_2025-11-14_4fb662b2-3cf2-47aa-ab88-7b80d5e56e56.pdf

Rectron Ltd. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Other Matters

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.) Rectron LTD. and Subsidiaries

Consolidated Balance Sheets

June 30, 2025, December 31 and June 30, 2024 (Expressed in Thousands of New Taiwan Dollar)

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Comprehensive Income

For the six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollar, except for Earnings per Common Share)

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Changes in Equity

Rectron LTD. and Subsidiaries

Consolidated Statement of Cash Flows

For the six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

Rectron Ltd. and Subsidiaries

Notes to Consolidated Financial Statements

June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar, except for Earnings per Share Information and Unless Otherwise Specified)

1. Company history

2. Approval date and procedures of the consolidated financial statements

3. New standards and interpretations not yet adopted

4. Summary of significant accounting policies

(1) Statement of compliance

(2) Basis of consolidation

(3) Income taxes

(4) Employee benefits

6. Explanation of significant accounts

(c) Trade receivables and notes receivable

(e) Property, plant and equipment

(f) Right-of-use assets

(g) Investment property

(h) Short-term borrowings

(j)Provisions

The Group’s employee benefit retirement expenses respectively.

(k) Income tax

(l)Capital and other equity

(i) Legal reserve

(ii) Special reserve

(iii) Earnings distribution

(m) Earnings per share

1. Basic earnings per share

2. Diluted earnings per share

(i) Profit attributable to ordinary shareholders of the Company

(n) Revenue from contracts with customers

i. Disaggregation of revenue

ii. Contract balances

(o) Remunerations to employees, directors and supervisors

(q) Financial instruments

1. Credit risk

(ii) Concentration of credit risk

(iii) Receivables and debt securities

2. Liquidity risk

3. Market risk

(i) Currency risk

(ii) Interest rate analysis

(iii) Other market price risk

7. Related-party transactions

4. Leases

5. Prepayments

6. Other

(c) Others

(d) Key management personnel compensation

8. Assets pledged as security

9. Significant Commitments and Contingencies

10. Losses due to major disasters: none

11. Subsequent events:

12. Others

(b) Seasonality of operations

RECTRON Interim / Quarterly Report 2025