RECTRON - Interim / Quarterly Report 2025

Stock Code：2302

Rectron Ltd. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report

For the Nine Months Ended September 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 10~11 11 11~33 33~35 35 35 36 36 36 36~38 38 38~39 39~40

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 September 30, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the Nine Months ended September 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 $337,273 thousand and $211,289 thousand, constituting 13% and 8% of consolidated total assets as of September 30, 2025 and 2024, respectively, total liabilities amounting to $14,300 thousand and $7,646 thousand, constituting 2% and 1% of consolidated total liabilities as of September 30, 2025 and 2024, respectively, and total comprehensive income (loss) amounting to $15,940 thousand, $(4,943)thousand, $(462)thousand and $(7,684) thousand, constituting 25%, (24)%, (1)% and (10)% of consolidated total comprehensive income (loss) for the three months and the Nine Months ended September 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 September 30, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the Nine Months ended September 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 $75,232 thousand and $57,181 thousand, representing 3% and 2% of the related consolidated total assets as of September 30, 2025 and 2024, and net sales of $567 thousand, $843 thousand, $2,221 thousand and $1,667 thousand, representing 0%, 0%, 0% and 0% of the related consolidated total net sales for the three months and the Nine Months ended September 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) November 13, 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

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

	December 31, 2024	September 30, 2025 Amount % $ - - 99 - 143,651 6 46,886 2 8,087 - 3,255 - 487,721 19 689,699 27 1,901 - 3 - 68.023 3 4,792 - 74,719 3 764,418 3 0 1,663,029 65 9 - 73,269 3 103,296 4 70,414 3 (116,802 ) (5) 1,793,215 70 $ 2,557,633 100	September 30, 2025 Amount % $ - - 99 - 143,651 6 46,886 2 8,087 - 3,255 - 487,721 19 689,699 27 1,901 - 3 - 68.023 3 4,792 - 74,719 3 764,418 3 0 1,663,029 65 9 - 73,269 3 103,296 4 70,414 3 (116,802 ) (5) 1,793,215 70 $ 2,557,633 100	September 30, 2024
			Amount $ - 99 143,651 46,886 8,087 3,255 487,721 689,699 1,901 3 68.023 4,792 74,719 764,418 1,663,029 9 73,269 103,296 70,414 (116,802 )	Amount % $ 3,000 - 1,221 - 126,668 5 215,563 8 7,709 - 2,869 - 366,352 15 723,382 28 5,634 - 1,076 - 62,684 3 4,752 - 74,146 3 797,528 31 1,663,029 64 9 - 60,655 2 87,143 3 63,834 3 (71,444) (3) 1,803,226 69 $ 2,600,754 100
$ $	Amount % 564,394 21 132,575 5 - 793 - 140,210 5 4,210 - 439 - 126,046 5 6,848 - 4,202 - 979,725 36 55,867 2 635,790 24 16,060 1 955,9849 37 2,357 `-` 1,666,058 64 2,645,783 100




			1,793,215 2,557,633
		$		$

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 Nine Months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollar, except for Earnings per Common Share)

	For the three months ended	For the three months ended	For the three months ended	For the three months ended	For the three months ended		For the Nine Months ended September 30	For the Nine Months ended September 30	For the Nine Months ended September 30
$ $ $	2025 $ 224,423 146,141 78,282 14,547 32,457 1,219 48,223 30,059 3,644 35,335 (44) 38,935 68,994 6,759 62,235 213 - 213 830 1,212 - 2,042 2,255 64,490 62,235 64,490		% 100 66 34 6 14 1 14 13 2 16 - 18 31 3 28 - - - - 1 - 1 1 29				2025 % 634,424 100 400,794 63 233,630 37 43,551 7 91,516 14 4,742 1 139,809 22 93,821 15 10,940 2 (16,753) (3) (136) - (5,949) (1) 87,872 14 21,796 3 66,076 11 (1,761) - - - (1,761) - (9,995) (2) 1,315 - - - (8,680) (2) (10,441) (2) 55,635 94 66,076 11 55,635 9 0.40 0.40	%	2024 % 552,477 100 354,063 64 198,414 36 40,251 7 93,675 17 4,876 1 138,802 25 59,612 11 12,955 2 7,290 1 (223) - 20,022 3 79,634 14 16,150 2 63,484 12 1,607 - - - 1,607 - 13,474 2 618 - - - 14,092 2 15,699 2 79,183 14 63,484 12 79,183 14 0.38 0.38
					$	$		100 63
				34				37
				6 14 1				7 14 1
				14				22
				13				15
				2 16 -				2 (3) -
				18				(1)
				31 3				14 3
				28				11
				- -				- -
				-				-
				- 1 -				(2) - -
				1				(2)
				1				(2)
				29				94
				28				11 9
				29
		0.38 1.38

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 Nine Months ended September 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) - 2,225 2,225 - (1,814) (5,040) - (446) (446) (3,065) (8,551)
$1,663,029 - - - - $ 1,663,029 $ 1,663,029 - - - - $ 1,663,029		9 - - - - 9 9 - - - - 9	51,988 - - - 8,666 - 60,654 60,655 - - - 12,614 - 73,269	60,074 - - - 27,069 - 87,143 87,143 - - - 16,153 - 103,296	87,640 63,484 - 63,484 (8,666) (27,069) (51,554) 63,834 126,496 66,076 - 66,070 (12,614) (16,153) (96,456) 3,065 70,414	(83,104) - 13,474 13,474 - (69,630) (98,256) - (9,995) (9,995) - (108,251)		(87,143) - 15,699 15,699 - (71,444) (103,296) - 10,441 10,441 (3,065) (116,802)	1,775,597 63,484 15,699 79,183 (51,554) 1,803,226 1,834,036 66,076 (10,441) 55,635 (96,456) 1,793,215



$

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 Nine Months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

For	the Nine Months 30,	ended September	ended September
	2025		2024
$	87,872 39,374 714 (2,786) 136 (10,775) (165) - (20,878) 2.868 (2) 1,247 9,733 336 (25,310) (3,966) (17,811) (5,285) (156) (52,192) 61 12,298 6,611 779 (81) 19,668 (32,524) 22,791 65,081 10,270 165 (136) (29,459) 45,921 10,925 (12,107) (298,275) 229,456 (197,500) 76 (363) 169,409 (98,379) - - (2,392) 139 (96,456) (98,709) (7,700) (158,867) 564,394 405,527	$	79,634 37,146 2,285 (2,279) 223 (12,213) (742) (37) (7,313) 174 - (2,071)
			15,173 107 (41,403) (1,415) 12,044 (8,247) (463)
$		$
			(39,377)
			1,153 50,971 2,965 265 (1,133)
			54,221 14,844 30,017 109,651 12,229 742 (243) (15,458))
			106,894 3,259 - (24,341) 49,985 (20,372) - (1,309) 7,222 8,000 (20,000) (1,788) (4) (51,554) (65,346)
			21,297 70,067 561,703 631,770

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

September 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 Nine Months ended September 30, 2025 and 2024were authorized for issuance by the board of directors on November 13, 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”
- 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.
(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” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS7.
- Annual Improvements to IFRS Accounting Standards

(Continued)

–

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:

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”

(Continued)

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.

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
September
30, 2025
December
31, 2024
September
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 tax

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

(Continued)

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.

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	September 30, 2025	December 31, 2024	September 30, 2024
	$ 163 234,872 170,492	311 564,083 -	144 590,481 41,145
	$ 405,527	564,394	631,770

Please refer to Note 6(r) 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

September 30, 2025 Financial assets designation as measured at fair value through profit or loss Shares of stock of overseas $ 76,354	December 31, 2024 63,619	(Continued) September 30, 2024 153,374

listed companies - NVDA Shares of stock of overseas listed companies - LMT 145,145 - Shares of stock of overseas listed companies - TESLA - 68,186 Assets mandatorily measured at fair value through profit or loss: Beneficiary certificates 773 770 Total $ 222,272 132,575 2. Non-current financial assets at fair value through other comprehensive income September 30, 2025 December 31, 2024 Debt investments at fair value through other comprehensive income Corporate bonds– Apple $ 24,341 25,602 Corporate bonds – AT&T 8,796 9,151 Corporate bonds–Pfizer 3,754 3,929 Equity investments at fair value through other comprehensive income Shares of stock of unlisted companies 4,499 17,185 Total $ 41,390 55,867	12 - - 812 16,186 September 30, 2024 26,635 9,680 4,266. 17,153 57,734	12 - - 812 16,186 September 30, 2024 26,635 9,680 4,266. 17,153 57,734	12 - - 812 16,186 September 30, 2024 26,635 9,680 4,266. 17,153 57,734

			57,734

(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 September 30, 2025 December 31, 2024 and September 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 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 $10,925 thousand, and the disposal gain amounted to $3,065 thousand. Accordingly, the accumulated disposal gain was reclassified from other equity to retained earnings.

(Continued)

(3) For credit risk (including the impairment of debt investments) and market risk; please refer to note 6(r).
(4) As of September 30, 2025, December 31, 2024 and September 30, 2024, the Group’s financial assets were not pledged as collateral.
(c) Financial assets measured at amortized cost

Domestic and foreign time deposits Less: Loss allowance Total	September 30, 2025 $ 12,107 - $ 12,107
	$ $

The Group has assessed that these financial assets are held to maturity to collect cash flows, which consist solely of payments of principal and interest on principal amount outstanding. Therefore, these investments were classified as financial assets measured at amortized cost.

(1) As of September 30, 2025, the Group held both domestic and foreign time deposits, with the weighted-average interest rates of 2.180%, maturing in November 2025.
(2) For credit risk and market risk; please refer to note 6(r).
(3) As of September 30, 2025 the Group’s financial assets were not pledged as collateral.

(d) Trade receivables and notes receivable

	September 30,	September 30,	December 31, 2024	September 30,	September 30,
		2025			2024
Notes receivable from operating activities$		457	793		310
Trade receivables		186,934	163,249		157,053
Trade receivables–Non-current		48,227	48,227		48,227
Less: Loss allowance		(66,855)	(71,266)		(71,224)
	$	168,763	141,003	$	134,366

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

September 30, 2025

Current Within 180 days past due. More than 180 days past due	Gross carrying amount $ 142,714 26,238 66,666 $ 235,618	Weighted- average loss rate 0.05%~1% 0.05%~4.71% 0%~100%	Loss allowance provision
			202 66,653
			66,855

(Continued)

	December 31, 2024
Gross carrying amount $ 112,799 27,236 72,236 $ 212,269	Weighted- average loss rate 0.05%~1.97% 0.05%~5.39% 0%~100%	Loss allowance provision
		- - 71,266
		71,266

September 30, 2024	September 30, 2024
Gross carrying amount $ 107,778 26,764 71,048 $ 205,590	Weighted- average loss rate 0.05%~1.98% 0.05%~9.64% 0%~100%	Loss allowance provision
		- 176 71,048
		71,224

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

For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,
	2025 71,266 (2,786) (1,625) 66,855	2024 72,605 (2,279) 898 71,224
$
$

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

(Continued)

(e) Inventories

entories
September 30, 2025 Raw materials and consumables 24,972 Work in progress 11,382 Finished goods 86,419 Merchandise 33,255 Goods and materials in transit 3,352 Subtotal 159,380 Less: Allowance for inventory market decline and obsolescence (15,523) 143,857	September 30, 2025	December 31, 2024	September 30, 2024
	24,972 11,382 86,419 33,255 3,352	24,511 8,774 78,877 28,507 1,735	26,648 13,295 68,086 30,033 1,468
		142,404 (16,358)	139,530 (15,996)
	143,857	126,046	123,534

The details of inventory-related expenses recognized by the merged company for the periods July 1 to September 30, 2025 and 2024, as well as January 1 to September 30, 2025 and 2024, are as follows:

For the three months ended September 30, 2025 2025 $ 142,470 $ 127,971 1,257 (929) 922 761 $ 144,649 127,803	For the three months ended September 30, 2025 2025 $ 142,470 $ 127,971 1,257 (929) 922 761 $ 144,649 127,803	For the Nine Months ended September 30,	For the Nine Months ended September 30,
		2024 394,410 - 1,541	2024
$ 142,470 1,257 922			343,915 (427) 5,259
$ 144,649	127,803	395,951	248,747

(1) Reversal gains were generated from inventory depletion during the periods from the three months and the Nine Months ended September 30, 2025 and 2024 respectively.

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

(Continued)

(f) Property, plant and equipment

The cost and accumulated depreciation of the property, plant and equipment of the Group for the Nine Months ended September 30, 2025 and 2024 were as follows:

	Land	Machinery and equipment
$ $ $ $ $ $ $ $ $ $ $ $	181,394 - - - -	698,340 4,325 5,463 (272,344) (33,149) 402,635 677,096 2,291 1,941 16,370 697,698 531,955 16,876 (250,533) (29,265) 313,274 531,955 17,670 14,104 563,729 122,114 89,361 145,141 133,969
	181,394
	181,394 - - -
	181,394
	- - - -
	-
	- - -
	-
	181,394
	181,394
	181,394
	181,394

As of September 30, 2025, December 31, 2024 and September 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).

(g) 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 September 30, 2025	Land $ 10,276 (11,119) (107) $ 21,288	Buildings 13,716 - (986) 12,730	Machinery and equipment 2,514 - - 2,514	Other equipment 343 - - 343	Total
					26,849 11.119 (1,093)
					36,875

(Continued)

Land Balance at January 1, 2024 $ 9,906 Additions Effect of movement in exchange rates419 Balance at September 30, 2024 $ 10,325 Accumulated depreciation and impairment losses: Balance at January 1, 2025 $ 1,891 Depreciation for the year 422 Effect of movement in exchange rates (89) Balance at September 30, 2025 $ 2,224 Balance at January 1, 2024 $ 1,250 Depreciation for the year 233 Effect of movement in exchange rates 67 Balance at September 30, 2024 $ 1,820 Carrying amount: Balance at January 1, 2025 $ 8,385 Balance at September 30, 2025 $ 19,064 Balance at January 1, 2024 $ 8,386 Balance at September 30, 2024 $ 8,505		Buildings 12,826 414 13,240 8,474 1,707 (648) 9,533 5,724 1,723 162 7,609 5,242 3,197 7,102 5,631	Machinery and equipment - 2,514 - 2,514 280 628 - 908 - 70 - 70 2,234 1,606 - 2,444	Machinery and equipment - 2,514 - 2,514 280 628 - 908 - 70 - 70 2,234 1,606 - 2,444	Machinery and equipment - 2,514 - 2,514 280 628 - 908 - 70 - 70 2,234 1,606 - 2,444	Other equipment 343 - 343 144 52 - 196 72 54 - 126 199 147 271 217		Total
								23,075 2,514 833
								26,422
								10,789 2,809 (737)
								12,861
								7,316 2,080 229
								9,625
								16,060 24,014 15,459 16,797

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).

(h) Investment property

Cost: Balance at January 1, 2025 Reduction (15,130(Effect of movement in exchange rates Balance at September 30, 2025	Land and improvements $ 663,510 - $ 663,510	Buildings 377,011 (15,130) (4,927) 356,954	Total
			1,040,521 (15,130) (4,927)
			1,020,464

(Continued)

Balance at January 1, 2024 Effect of movement in exchange rates Balance at September 30, 2024 Accumulated depreciation and impairment losses: Balance at January 1, 2025 Depreciation for the year Reduction Effect of movement in exchange rates Balance at September 30, 2025 Balance at January 1, 2024 Depreciation for the year Effect of movement in exchange rates Balance at September 30, 2024 Carrying amount: Balance at January 1, 2025 Balance at September 30, 2025 Balance at January 1, 2024 Balance at September 30, 2024	Land and improvements $ 663,510 - $ 663,510 $ - - - $ - $ - - - $- $ 663,510 $ 663,510 $ 663,510 $ 663,510	Buildings 373,879 3,540 377,419 84,537 6,962 (9,306) (1,959) 80,234 73,500 7,550 1,099 82,149 292,474 276,720 300,379 295,270			Total
					1,037,389 3,540
					1,040,929
					84,537 6,962 (9,306) (1,959)
					80,234
					73,500 7,550 1,099
					82,149
					955,984
					940,230
					963,889
					958,780

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 September 30, 2025, December 31, 2024 and September 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

m borrowings
Secured bank loans Unused short-term credit lines Range of interest rates	September 30, 2025	December 31, 2024	September 30, 2024
	$ -	-	3,000
	$ 340,000	420,000	417,000
	-	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 Nine Months ended September 30, 2025 and 2024. Please refer to Note 6(i) of the consolidated financial statements for the year ended December31, 2024 and 2023 for other related information.

(j)Provisions

1. 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:

Operating cost Selling expenses Total	For the Three months Ended September 30 For the Nine Months Ended September 30	For the Three months Ended September 30 For the Nine Months Ended September 30	For the Three months Ended September 30 For the Nine Months Ended September 30	For the Three months Ended September 30 For the Nine Months Ended September 30
	2025	2024 1 5 11	2025	2024 6 15 21
	- - -		- - -

2. Defined contribution plans

The Group’s employee benefit retirement expenses respectively.

For the Three months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2025 2024	2025	2024 371 144 609 11 1,135
$ 117 118 68 51 189 208 - -	352 200 612 - 1,164
$ 374 377

(Continued)

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 September 30	For the Nine Months Ended September 30
	2025 2024	2025 2024 2,685 2,635
	$ 869 823

(k) Income tax

The components of income tax for the Nine Months ended September 30, 2025 and 2024 were as follows:

were as follows:
Current tax expenses Prior years income tax adjustment	For the three months ended September 30 2025 2024 $ 6,759 3,590 - - $6,759 3,590		For the Nine Months ended September 30
	2025 $ 6,759 - $6,759		2025 22,228 (432) 21,796	2024
		3,590 - 3,590		16,050 100
				16,150

(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 September 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.

(Continued)

(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 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 September 30, 2025, December 31, 2024, and September 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 2023 had been approved during the shareholders’ meeting on May 29, 2025 and June 26, 2024 as follows:

Cash dividends distributed to ordinary shareholders	2024 Amount per share Total amount $0.58 96,456	2024 Amount per share Total amount $0.58 96,456	2023
	Amount per share $0.58		Amount per share Total amount 0.31 51,554
		96,456

(Continued)

(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 September 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 September 30, 2024	Exchange differences on translation of foreign financial statements $ (98,256) (9,995) - $ (108,251) $ (83,104) 13,474 - $ (69,630)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total (5,040) (103,296) - (9,995) (446) (446) (3,065) (3,065)
		(8,551) (116,802)
		(4,039) (87,143) - 13,474 2,225 2,225)
		(1,814) (71,444)

(m) Earnings per share

For the Nine Months ended September 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

For the three months ended September 30	For the Nine Months ended September 30 2025 2024 66,076 63,484 For the Nine Months ended September 30	For the Nine Months ended September 30 2025 2024 66,076 63,484 For the Nine Months ended September 30
2024
13,410
	2025 166,303 0.4	2024
		166,303
		0.38

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 September 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:

(Continued)

(i) Profit attributable to ordinary shareholders of the Company

For the three months ended September 30 2025 2024 Profit/(loss) attributable to ordinary shareholders of the Company (basic) $62,235 13,410 (ii) Weighted-average number of ordinary shares For the three months ended September 30 2025 2024 Weighted-average number of ordinary shares (thousand shares) (basic) $166,303 166,303 Effect of employee share bonus 52 48 Weighted-average number of ordinary shares (thousand shares) (diluted) 166,355 166,349 Earnings per share 0.38 0.08	For the three months ended September 30 2025 2024 Profit/(loss) attributable to ordinary shareholders of the Company (basic) $62,235 13,410 (ii) Weighted-average number of ordinary shares For the three months ended September 30 2025 2024 Weighted-average number of ordinary shares (thousand shares) (basic) $166,303 166,303 Effect of employee share bonus 52 48 Weighted-average number of ordinary shares (thousand shares) (diluted) 166,355 166,349 Earnings per share 0.38 0.08	For the Nine Months ended September 30	For the Nine Months ended September 30
		2025 2024 66,076 63,484 For the Nine Months ended September 30 2025 2024 166,303 166,303 72 62 166,379 166,365 0.40 0.38	2024 63,484
2025 $166,303 52 166,355 0.38		2025 166,303 72 166,379 0.40
	166,303 48 166,349 0.08

(n) Revenue from contracts with customers

i. Disaggregation of revenue

For the three months ended September 30, 2025

Electronics Division Primary geographical markets Asia $ 192,248 America 20,965 Europe 3,464 Others 138 $ 216,815 Major products/services lines Electronic Components Sales $216,815 Rental Income - Medical Equipment Sales - Wine Trading - $216,815	Property Management Division 5,172 - - - 5,172 - 5,172 - - 5,172	Medical Equipment Division 1,810 - - 1,810 - - 1,810 - 1810	Wine Trading Department 626 - - -	Total
				199,856 20,965 3,464 138
			626	224,423
			- - - 626 626	216,815 5,172 1,810 626
				224,423

(Continued)

For the three months ended September 30, 2024

Electronics Division Property Management Division Medical Equipment Division Wine Trading Department Primary geographical markets Asia $ 169,666 6,016 1,972 846 America 21,102 - - - Europe 1,873 - - - Others 324 - - - $ 192,965 6,016 1,972 846 Major products/services lines Electronic Components Sales $ 192,965 - - - Rental Income - 6,016 - - Medical Equipment Sales - - 1,972 - Wine Trading - - - 846 $ 192,965 6,016 1,972 846 For the Nine Months ended September 30, 2025 Electronics Division Property Management Division Medical Equipment Division Wine Trading Department Primary geographical markets Asia $ 526,560 16,509 6,754 3,354 America 72,487 - - - Europe 8,170 - - - Others 590 - - - $ 607,807 16,509 6,754 3,354 Major products/services lines Electronic Components Sales $ 607,807 - - - Rental Income - 16,509 - - Medical Equipment Sales - - 6,754 - Wine Trading - - - 3,354 $ 607,807 16,509 6,754 3,354	Electronics Division Property Management Division Medical Equipment Division Wine Trading Department Primary geographical markets Asia $ 169,666 6,016 1,972 846 America 21,102 - - - Europe 1,873 - - - Others 324 - - - $ 192,965 6,016 1,972 846 Major products/services lines Electronic Components Sales $ 192,965 - - - Rental Income - 6,016 - - Medical Equipment Sales - - 1,972 - Wine Trading - - - 846 $ 192,965 6,016 1,972 846 For the Nine Months ended September 30, 2025 Electronics Division Property Management Division Medical Equipment Division Wine Trading Department Primary geographical markets Asia $ 526,560 16,509 6,754 3,354 America 72,487 - - - Europe 8,170 - - - Others 590 - - - $ 607,807 16,509 6,754 3,354 Major products/services lines Electronic Components Sales $ 607,807 - - - Rental Income - 16,509 - - Medical Equipment Sales - - 6,754 - Wine Trading - - - 3,354 $ 607,807 16,509 6,754 3,354	Electronics Division Property Management Division Medical Equipment Division Wine Trading Department Primary geographical markets Asia $ 169,666 6,016 1,972 846 America 21,102 - - - Europe 1,873 - - - Others 324 - - - $ 192,965 6,016 1,972 846 Major products/services lines Electronic Components Sales $ 192,965 - - - Rental Income - 6,016 - - Medical Equipment Sales - - 1,972 - Wine Trading - - - 846 $ 192,965 6,016 1,972 846 For the Nine Months ended September 30, 2025 Electronics Division Property Management Division Medical Equipment Division Wine Trading Department Primary geographical markets Asia $ 526,560 16,509 6,754 3,354 America 72,487 - - - Europe 8,170 - - - Others 590 - - - $ 607,807 16,509 6,754 3,354 Major products/services lines Electronic Components Sales $ 607,807 - - - Rental Income - 16,509 - - Medical Equipment Sales - - 6,754 - Wine Trading - - - 3,354 $ 607,807 16,509 6,754 3,354	Total
			178,500 21,102 1,873 324
			201,799
			192,965 6,016 1,972 846
			201,799

Property Management Division 16,509 - - - 16,509 - 16,509 - - 16,509	Medical Equipment Division 6,754 - - - 6,754 - - 6,754 - 6,754	Wine Trading Department 3,354 - - -	Total
			553,177 72,487 8,170 590
		3,354	634,424
		- - - 3,354 3,354	607,807 16,509 6,754 3,354
			634,424

(Continued)

For the Nine Months ended September 30, 2024

Electronics Division Primary geographical markets Asia $ 459,876 America 60,650 Europe 4,567 Others 958 $ 526,051 Major products/services lines Electronic Components Sales $ 526,051 Rental Income - Medical Equipment Sales - Wine Trading - $ 526,051	Property Management Division 17,139 - - - 17,139 - 17,139 - - 17,139	Medical Equipment Division 6,768 - - - 6,768 - - 6,768 - 12,736	Wine Trading Department 2,519 - - - 2,519 - - - 2,519 2,519	Total
				486,302 60,650 4,567 958
				552,477
				526,051 17,139 6,768 2,519
				552,477

ii. Contract balances

Contract balances
Trade receivables and notes receivable Less: allowance for impairment Contract liabilities	September 30, 2025 $ 187,391 (18,628) $ 168,763 $ 99	December 31, 2024 164,042 (23,039)	September 30, 2024 157,363 (22,997)

	$	141,003		134,366
	$	38		1,221

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

(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 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.

(Continued)

For the three months and the Nine Months ended September 30, 2025 and 2024, remuneration of employees of $600 thousand, $190 thousand, $900 thousand, and $840 thousand, respectively, and remuneration of directors of $400 thousand, $150 thousand, $600 thousand, and $900 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 Nine Months ended September 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

1. Other income

For the three months ended September 30 2025 2024 $ 3,529 4,814 115 551 $ 3,644 5,365	For the Nine Months ended September 30	For the Nine Months ended September 30
2025 $ 3,529 115 $ 3,644	2025 10,775 165 10,940	2024
		12,213 742
		12,955

Other gains and losses

er gains and losses	er gains and losses
For the three months ended September 30 For the Nine Months ended September 30 2025 2024 2025 2024 Foreign exchange gains (losses) $ 255 (12,170) (38,870)) (156) Gains (losses) on financial assets at fair value through profit or loss 34,898 667 20,878 7,313 Gains on disposals of property, land and equipment 2 - 2 - Disposal of investment losses - - - 37 Others 180 65 237 96 $ 35,335 (11,438) (16,753) 7,290 ance costs For the three months ended September 30 For the Nine Months ended September 30 2025 2024 2025 2024 Interest expense $(44) (51) (136) (223)		For the Nine Months ended September 30
				2024
				(156) 7,313 - 37 96
				7,290
	2025 (136)		2024
			(223)

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

(Continued)

2. Liquidity risk

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

Carrying amount Contractual cash flows Within 6 months	onths	-2 years 2-5 years	Over 5 years
$ 190,537 190,537 190,500 5,156 5,362 1,666	37 1,676	- - 2,020	- - -
$ 195,693 195,889 192,166	1,713	2,020 -
$ 350,873 350,873 350,836 7,900 8,519 1,729	37 1,760 1,760	- - - 3,334 1,336 - 3,334 1,336	- -
$ 358,773 359,032 352,565
$ 3,000 3,010 3,010 342,231 342,231 342,231 8,503 8,789 1,686	- - 1,700 1,700	- - - - 3,445 1,958 - 3,445 1,958	- - -
$ 353,734 354,030 346,927

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

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 USD : HKD Non-monetary items USD Financial liabilities Monetary items USD : NTD USD : CNY	September 30, 2025	December 31, 2024
	Foreign currency Exchange rate NTD $ 12,199 30.445 371,399 1,427 7.780 43,445 399 7.780 12,107 1,212 30.445 36,891 4,985 30.445 151,768 40 7.780 1,218

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 Nine Months of 2025 and 2024 would have increased (decreased) the net profit after tax by

(Continued)

$1,096 thousand and $4,060 thousand, and the equity by $148 thousand and $162 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 Nine Months ended September 30, 2025 and 2024, the foreign exchange gain (loss) (including realized and unrealized portions) amounted to $37,870 thousand and $156 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 $9 thousand for the Nine Months ended September 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 Nine Months ended September 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:

For the Nine Months ended September 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 Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,
	2025 2024
			Net income Other comprehensive income after tax		Net income
0.5% increase $ 0.5% decrease $		22 (22)	886 (886)	86 (86)	62 (62)

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:

(Continued)

	September 30, 2025	September 30, 2025	September 30, 2025
Book Value		Fair Value		Total 221,499 773
	Level 1	Level 2 - -	Level 3 - -
$ 221,499 773	221,499 773
222,272	222,272	-	-	222,272
36,891 4,499	- -	36,891 4,499	- -	36,891 4,499
41,390	-	41,390	-	41,390
405,527 168,763 8,689 1,395 12,107	- - -	- - -	- - -	- - -
596,481
$ 860,143	222,272	41,390	-	263,662
$ 152,626 37,911 5,156 4,792	- - - -	- - - -	- - - -	- - - -
$ 200,485

(Continued)

			December 31, 2024	December 31, 2024	December 31, 2024	Total 131,805 770
	Book Value $ 131,805 770 132,575 38,682 17,185			Fair	Value
			Level 1 131,805 770	Level 2 - - - 38,682 17,185	Level 3 - -

			132,575 - -		-	132,575 38,682 17,185
		38,682 17,185			- - - - - -
		55,867	-	55,867		55,867
		564,394 141,003 4,218 1,413	- - -	- - -		- - -
		711,028
$		899,470	132,575	55,867		188,442
$		131,353 219,520 7,900 4,653	- - - -	- - - -	- - - -	- - - -
$		363,426

(Continued)

		September 30, 2024	September 30, 2024	September 30, 2024
Book	Value		Fair Value		Total 15,374 812 16,186
		Level 1	Level 2 - - - 40,581 17,153	Level 3
$	15,374 812	15,374 812 16,186		- - - - -
	16,186
	40,581 17,153	- -			40,581 17,153
	57,734	-	57,734	-	57,734
	631,770 134,366 3,021 1,404	- - -	- - -	- - -	- - -
$	770,561
	844,481	16,186	57,734		73,920
$	3,000 126,668 215,563 8,503 4,752	- - - - -	- - - - -	- - - - -	- - - - -
$	358,486

(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.

(Continued)

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 Nine Months ended September 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.

(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(g).

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.

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., The chairman of the subsidiary is the same as the chairman of the LTD.(Pu Hwua) Company. 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)

(Continued)

(b) Significant transactions with related parties

1. Sales

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

Other related parties	For the three months ended September 30 2025 2024 $ 653 875	For the Nine Months ended September 30	For the Nine Months ended September 30
	2025 $ 653	2025 3,420	2024 2,572

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 September 30, 2025, and January 1 to September 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:

Account Trade receivables	Relationship Other related parties	September 30, 2025 $ 505	December 31, 2024 1,812	September 30, 2024
				588

Payables to related parties

The payables to related parties were as follows:

Account Other payables	Relationship Others	September 30, 2025 $ 49	December 31, 2024 26	September 30, 2024 358

4. Leases

The Group collected rental income from other related parties and affiliated companies, reporting lease income of $442 thousand, $440 thousand, $1,323 thousand and $1,300 thousand for the three months and the Nine Months ended September 30, 2025 and 2024 respectively. As of September 30, 2025, December 31, 2024, and September 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 Nine Months ended September 30, 2025, and 2024 respectively, the Group recognized the amounts of $18 thousand, $29 thousand, $63 thousand and $92 thousand as interest expenses. As of September 30, 2025 and 2024 respectively the balance of lease liabilities amounted to $2,073 thousand, $3,029 thousand and $3,292 thousand.

5. Prepayments

Account Prepayments	Relationship Sunrise	September 30, 2025 $ 3,425	December 31, 2024 3,138	September 30, 2024 5,398

(Continued)

6. Other

The combined company's operating expenses related to other related parties the three months and the Nine Months ended September 30, 2025, and 2024 were $2,089 thousand, $5,103 thousand, $6,153 thousand, and $6,328 thousand, respectively.

(a) Others

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

(b) Key management personnel compensation

Key management personnel compensation comprised:

For the three months ended September 30 2025 2024 $ 3,463 3,813 47 48 $ 3,510 3,861	For the Nine Months ended September 30	For the Nine Months ended September 30
2025 $ 3,463 47 $ 3,510	2025 10,629 137 10,766	2024
		14,518 172
		14,690

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	September 30, 2025 $227,199 48,683 $275,882	December 31, 2024 229,510 49,507 279,017	September 30, 2024
				230,286 49,781
				280,067

9. Significant Commitments and Contingencies

(a) Unrecognized contractual commitments

As of September 30, 2025, December 31, 2024, and September 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	September 30, 2025 $ 68,987 $ 23,150	December 31, 2024 259,598 50,971	September 30, 2024
			262,830
			61,225

(b) In September 2023, 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 $690,785 thousand (RMB 161,653 thousand), and a signing bonus of $345,395 thousand (RMB 80,827 thousand) was received in the same year. In March 2025, the Company received $170,520 thousand (RMB 39,904 thousand). As of September 30, 2025, the total amount received was $515,915 thousand (RMB 120,731 thousand), which was recorded under other current liabilities. In addition, relocation expenses of $1,111 thousand (RMB 260 thousand) incurred during the current period were deducted from the proceeds in accordance with the relocation compensation agreement.

(Continued)

10. Losses due to major disasters: none

11. Subsequent events: none

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 September 30,	three months ended September 30,	three months ended September 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	8,404 322 117 165 9,902 142	22,167 1,907 1,126 1,331 3,557 147	30,571 2,229 1,243 1,496 13,459 289	8,600 319 119 137 9,692 122	21,738 2,234 1,087 1,109 2,839 626	30,338 2,553 1,206 1,246 12,531 748

By function By item		For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 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	20,996 992 352 415 30,165 344	67,434 6,034 3,497 3,907 9,209 370	88,400 7,026 3,849 4,322 39,374 714	21,629 1,004 377 418 28,878 363	64,970 5,976 3,414 3,168 8,268 1,922	86,599 6,980 3,791 3,586 37,146 2,285

(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 Nine Months ended September 30, 2025:

1. Lending to other parties:

==> picture [426 x 71] 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 93,771 93,771 - 2 - Operation - - - 355,615 355,615
receivables (note 4) Requirements
----- End of picture text -----

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.

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% = $1,793,215thousand x40% = $717,286thousand.

The maximum funding limit for an individual counterparty = Shareholders' equity x 40% = $1,793,215thousand x 40% = $717,286 thousand.

(2) Rectron Electronics (China)

Individual counterparty funding limit = Shareholders' equity x 500% = $71,123 thousand x 500% = $355,615 thousand.

(Continued)

The maximum funding limit for an individual counterparty = Shareholders' equity x 500% = $71,123 thousand x 500% = $355,615 thousand.

Note3: Already eliminated during the preparation of the consolidated financial statements.

Note 4: (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)

Company holding securities	Security type and name	Relationship with the Company	Account		September 30, 2025	September 30, 2025	September 30, 2025
				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	490,111	4,499	0.01%	4,499
The Company	Corporate bonds – Apple	-	Non-current financial assets at fair value through other comprehensive income	-	24,341	-%	24,341
The Company	Corporate bonds – AT&T	-	Non-current financial assets at fair value through other comprehensive income	-	8,796	-%	8,796
The Company	Corporate bonds – Pfizer	-	Non-current financial assets at fair value through other comprehensive income	-	3,754	- %	3,754
CHU-TING	Fund – Yuan ta High Dividend 0056	-	Current financial assets at fair value through profit or loss	21,000	773	-%	773
CHU-TING	Stock - LMT	-	Current financial assets at fair value through profit or loss	9,550	145,145	- %	145,145
CHU-TING	Stock - NVDA	-	Current financial assets at fair value through profit or loss	6,160	34,991	- %	34,991
Rectron China	Stock - NVDA	-	Current financial assets at fair value through profit or loss	7,500	41,363	- %	41,363
Rectron China	Fixed Deposit Certificate – Bank of Communications (Singapore Branch)	-	Current financial assets measured at amortized cost		12,107	- %	12,107

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			Abn trans	ormal action	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	278,526 (278,526) 336,969 (336,969	76% (75%) 100 % (78 %)	Normal Normal Normal Normal	Normal Normal Normal Normal	90-120 Days 90-120 Days 120 Days 120 Days	(20,443) 20,443 (76,803) 76,803	(34)% 99% (100)% 82%

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.

(Continued)

Significant transactions and business relationship between the parent company and its subsidiaries for the Nine Months ended September 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	278,526	Calculated with finished product cost plus agreedprofit.	44
0	Rectron Ltd.	Rectron China	1	Trade payables	20,443	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%
0	Rectron Ltd.	REEI	1	Operating revenue	41,995	Calculated with finished product cost plus agreedprofit.	7%
0	Rectron Ltd.	REEI	1	Trade receivable	14,474	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	336,969	Calculated with finished product cost plus agreedprofit.	53%
1	Rectron China	Zhejiang Rectron	3	Trade payables	76,803	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	3%
2	CHU-TING	Rectron China	3	Other payables	93,771	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	4%

Note 1: Companies are numbered as follows: 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 Nine Months ended September 30, 2025:

(Amounts in Thousands of New Taiwan Dollar)

Name of investor	Name of investee	Location	Main businesses	Original i am	nvestment ount	Balance a	s of September 30, 2025	s of September 30, 2025	Net income (loss) of the investee	Investment income (loss) recognised by the Company
				September 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%	1,658	(3,810)	(3,810)
The Company	Rectron China	Hong Kong	Sales of rectifiers, etc. Electronic components	282,573	282,573	20,000	100.00%	71,123	1,560	1,560
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%	212,481	3,348	3,348

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 September 30, 2025	Net income (losses) of the investee	Percentage of ownership	Investment income (loss) recognized	Carrying value as of September 30, 2025	Accumulated inward remittance of earnings as of September 30, 2025
					Outflow	Inflow
Zhejiang Rectron	Manufacturing and sales of rectifiers and other electronic components.	64,940 USD2,000 (Note1)	NOTE 1(3)	409,029 USD12,000	-	340,857 USD10,000	68,172 USD2,000	459	100.00%	459	(9,411)	-

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.

(Continued)

2. Upper limit on investment in Mainland China:

	(Amounts in Thousands of New Taiwan Dollar) Investment amount authorized by Investment Commission, MOEA Upper limit on investment 181,757 USD5,970 1,075,929	(Amounts in Thousands of New Taiwan Dollar) Investment amount authorized by Investment Commission, MOEA Upper limit on investment 181,757 USD5,970 1,075,929
Accumulated investment in Mainland China as of September 30, 2025	Investment amount authorized by Investment Commission, MOEA	Upper limit on investment
60,890 USD 2,000	181,757 USD5,970	1,075,929

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% = $1,793,215 thousand × 60% = $1,075,929 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”.

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:

(Continued)

For the three months ended September 30, 2025 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the three months ended September 30, 2024 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Nine Months ended September 30, 2025 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the Nine Months ended September 30, 2024 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss	Electronics Department $ 216,815 121,530 $338,345 $43,557 Electronics Department $ 192,965 176,274 $369,239 $26,472 Electronics Department $ 607,807 654,858 $1,262,665 $110,510 Electronics Department $ 526,051 462,804 $988,855 $ 94,696	Property Management Division 5,172 - 5,172 3,479 Property Management Division 6,016 - 6,016 3,998 Property Management Division 16,509 - 16,509 11,065 Property Management Division 17,139 - 17,139 11,070	Medical Devices Division 1,810 51 1,861 (1,413) Medical Devices Division 1,972 38 2,010 (958) Medical Devices Division 6,754 288 7,042 (4,631) Medical Devices Division 6,768 252 7,020 (3,781)	Wine Trading Department 626 - 626 205 Wine Trading Department 846 - 846 139 Wine Trading Department 3,354 - 3,354 800 Wine Trading Department 2,519 - 2,519 373	Other Department 23,116 Other Department (12,651) Other Department - (29,872) Other Department - (22,724)	40 (Continued) Reconciliation and elimination Total - 224,423 (121,581) - (121,581) 224,423 - 68,994 Reconciliation and elimination Total - 201,799 (176,312) - (176,312) 201,799 - 17,000 Reconciliation and elimination Total - 634,424 (655,146) - (655,146) 634,424 - 87,872 Reconciliation and elimination Total - 552,477 (463,056) - (463,056) 552,477 - 79,634		40 Total
								224,423 -
								224,423
								68,994
								Total
								201,799 -
								201,799
								17,000
								Total
								634,424 -
								634,424
								87,872

AI assistant

RECTRON — Interim / Quarterly Report 2025

51998_rns_2025-11-14_a5a43079-2042-4c37-b8ce-c233acfac312.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

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Comprehensive Income

For the Nine Months ended September 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 Nine Months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

Rectron Ltd. and Subsidiaries

Notes to Consolidated Financial Statements

September 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

4. Summary of significant accounting policies

(1) Statement of compliance

(2) Basis of consolidation

(3) Income tax

(4) Employee benefits

6. Explanation of significant accounts

(d) Trade receivables and notes receivable

(e) Inventories

(f) Property, plant and equipment

(g) Right-of-use assets

(h) Investment property

(h) Short-term borrowings

(i)Operating Lease

(j)Provisions

1. Defined benefit plans

2. Defined contribution plans

(k) Income tax

(l)Capital and other equity

(i) Legal reserve

(ii) Special reserve

(iii) Earnings distribution

(iv) OCI accumulated in reserves

(m) Earnings per share

1. Basic earnings per share

2. Diluted earnings per share

i. Disaggregation of revenue

ii. Contract balances

(o) Remunerations to employees, directors and supervisors

1. Other income

(q) Financial instruments

1. Credit risk

(i) Credit risk exposure

(ii) Concentration of credit risk

(iii) Receivables and debt securities

2. Liquidity risk

(ii) Interest rate analysis

(iii) Other market price risk

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

7. Related-party transactions

(b) Significant transactions with related parties

1. Sales

4. Leases

5. Prepayments

6. Other

(a) Others

(b) Key management personnel compensation

8. Assets pledged as security

9. Significant Commitments and Contingencies

10. Losses due to major disasters: none

RECTRON Interim / Quarterly Report 2025