RT — Audit Report / Information 2024

Nov 18, 2024

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2024 AND 2023 (Stock code: 2379)

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR24000260

To the Board of Directors and Shareholders of Realtek Semiconductor Corporation

Opinion

We have audited the accompanying consolidated balance sheets of Realtek Semiconductor Corporation and subsidiaries (the “Group”) as at December 31, 2024 and 2023, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group’s 2024 consolidated financial statements. These matters were addressed in the context

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of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2024 consolidated financial statements are stated as follows:

Evaluation of inventories

Description

Refer to Note 4(13) of the consolidated financial statements for inventory evaluation policies, Note 5(2) for uncertainty of accounting estimates and assumptions of inventory evaluation and Note 6(6) for the details of inventories.

The Group is primarily engaged in researching, developing, manufacturing, selling of various integrated circuits and related application software. Inventories are stated at the lower of cost and net realizable value. Due to the balances of inventories are significant to the financial statements and the rapid technological changes in the industry, there is a higher risk of decline in market value and obsolescence of inventories. Thus, we considered the evaluation of inventories as one of the key audit matters.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

1. Obtained an understanding of accounting policies on the provision of allowance for inventory valuation losses and assessed the reasonableness.

2. Validated the accuracy of inventory aging report, as well as sampled and confirmed the consistency of quantities and amounts with detailed inventory listing, verified dates of movements with supporting documents and ensured the proper categorization of inventory aging report.

3. Evaluated and confirmed the reasonableness of net realizable value for inventories through validating respective supporting documents.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion with other matter section on the parent company only financial statements of Realtek Semiconductor Corporation as at and for the years ended December 31, 2024 and 2023.

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Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

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

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, ~4~

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

2. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

3. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Group to cease to continue as a going concern.

4. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

5. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

Li, Tien-Yi Cheng, Ya-Huei

For and on behalf PricewaterhouseCoopers, Taiwan February 27, 2025

------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(4) 6(5) 6(5) and 7 6(6) 6(2) 6(3) 6(4) and 8 6(7) 6(8) 6(9) 6(10) 6(11) 6(28) 9	December 31, 2024 AMOUNT % $ 14,812,459 13 7,520,809 7 32,766,211 29 12,305,290 11 2,641,074 2 604,664 - 13,506,049 12 501,451 - 84,658,007 74 - - 3,340,653 3 9,067,774 8 120,646 - 9,610,167 9 1,681,636 2 31,121 - 2,659,135 2 437,137 - 2,290,454 2 29,238,723 26 $ 113,896,730 100	December 31, 2023	December 31, 2023
		AMOUNT $ 14,812,459 7,520,809 32,766,211 12,305,290 2,641,074 604,664 13,506,049 501,451 84,658,007 - 3,340,653 9,067,774 120,646 9,610,167 1,681,636 31,121 2,659,135 437,137 2,290,454 29,238,723 $ 113,896,730	AMOUNT $ 10,268,291 948,832 32,373,191 10,663,065 2,093,922 616,624 11,756,934 566,761 69,287,620 53,000 3,126,098 5,509,030 131,794 8,754,486 1,767,795 33,878 2,624,598 337,312 2,189,659 24,527,650 $ 93,815,270	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost - current 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 130X Inventories, net 1410 Prepayments 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non- current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				11 1 34 11 2 1 13 1
				74
				- 3 6 - 9 2 - 3 1 2
				26
				100

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes 6(12) 6(21) 7 6(13) 7 6(21) 6(14) 6(16) 6(28) 6(15) 6(17) 6(18) 6(19) 6(20) 9	December 31, 2024 AMOUNT % $ 4,500,000 4 413,754 - 9,255,237 8 328,371 - 31,243,185 28 80,507 - 2,134,229 2 113,601 - 9,892,091 9 57,960,975 51 - - 1,266,560 1 265,722 - 1,361,638 1 84,347 - 2,978,267 2 60,939,242 53 5,128,636 5 287,282 - 8,882,764 8 32,051,651 28 6,597,430 6 52,947,763 47 9,725 - 52,957,488 47 $ 113,896,730 100	December 31, 2023	December 31, 2023
		AMOUNT $ 4,500,000 413,754 9,255,237 328,371 31,243,185 80,507 2,134,229 113,601 9,892,091 57,960,975 - 1,266,560 265,722 1,361,638 84,347 2,978,267 60,939,242 5,128,636 287,282 8,882,764 32,051,651 6,597,430 52,947,763 9,725 52,957,488 $ 113,896,730	AMOUNT $ 4,250,000 336,648 6,904,009 369,104 24,513,037 60,293 1,764,021 139,213 7,909,427 46,245,752 2,227,346 1,392,138 203,766 1,408,856 99,250 5,331,356 51,577,108 5,128,636 542,048 8,882,764 24,845,272 2,829,740 42,228,460 9,702 42,238,162 $ 93,815,270	%
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2550 Provisions - non-current 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common shares Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3350 Undistributed earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to holders of the parent company 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments 3X2X Total liabilities and equity				5 - 7 - 26 - 2 - 9
				49
				2 2 - 2 -
				6
				55
				5 1 9 27 3
				45
				-
				45
				100

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

Items

Year ended December 31 2024 2023 Notes AMOUNT % AMOUNT % 6(21) and 7 $ 113,393,698 100 $ 95,179,276 100 6(6) and 7 ( 56,231,862) ( 50) ( 54,431,219) ( 57) 57,161,836 50 40,748,057 43 6(26)(27) and 7 ( 4,793,105) ( 4) ( 3,864,715) ( 4) ( 5,328,736) ( 5) ( 3,768,586) ( 4) ( 33,543,624) ( 29) ( 26,434,295) ( 28) 12(2) 5,175 - ( 25,469) - ( 43,660,290) ( 38) ( 34,093,065) ( 36) 13,501,546 12 6,654,992 7 6(22) 2,792,033 2 2,581,961 3 6(23) 305,375 - 203,976 - 6(24) 71,467 - 398,354 - 6(25) ( 288,398) - ( 247,459) - 6(7) ( 40,813) - ( 47,189) - 2,839,664 2 2,889,643 3 16,341,210 14 9,544,635 10 6(28) ( 1,049,685) ( 1) ( 391,797) - $ 15,291,525 13 $ 9,152,838 10 6(20) 6(3) $ 229,072 - ($ 123,789) - 3,146,510 3 283,799 - $ 3,375,582 3 $ 160,010 - $ 18,667,107 16 $ 9,312,848 10 $ 15,291,442 13 $ 9,152,772 10 83 - 66 - $ 15,291,525 13 $ 9,152,838 10 $ 18,667,024 16 $ 9,312,782 10 83 - 66 - $ 18,667,107 16 $ 9,312,848 10 6(29) $ 29.82 $ 17.85 6(29) $ 29.32 $ 17.59

4000 Operating revenue 5000 Operating costs 5950 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit gains (losses) 6000 Total operating expenses 6900 Operating income Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of loss of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax, net 7950 Income tax expense 8200 Net income for the yaer Other comprehensive income (losses), net Components of other comprehensive income (losses) that will not be reclassified to profit or loss 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Components of other comprehensive income (losses) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Other comprehensive income, net 8500 Total comprehensive income for the year Net income attributable to: 8610 Equity holders of the parent company 8620 Non-controlling interest Net income for the year Comprehensive income attributable to: 8710 Equity holders of the parent company 8720 Non-controlling interest Total comprehensive income for the year Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

2023 Balance at January 1, 2023 Net income for the year Other comprehensive income (losses) for the year Total comprehensive income (losses) for the year Distribution of 2022 earnings Legal reserve Reversal of special reserve Cash dividends Cash from capital surplus Change in equity of associates accounted for under equity method Disposal of financial assets at fair value through other comprehensive income or losses Cash dividends returned Changes in non-controlling interest Balance at December 31, 2023 2024 Balance at January 1, 2024 Net income for the yaer Other comprehensive income for the year Total comprehensive income for the yaer Distribution of 2023 earnings Cash dividends Cash from capital surplus Change in equity of associates accounted for under equity method Disposal of financial assets at fair value through other comprehensive income or losses Cash dividends returned Changes in non-controlling interest Balance at December 31, 2024	Notes						Equity	Equity	attributable to own	er	s of the parent com	pany	pany	pany	pany				Non-controlling interest		Total equity
			Common shares		Capital surplus				Retained earnings			Other equityinterest					Total
							Legal reserve		Special reserve		Undistributed earnings	Financial statements translation differences of foreign operations		U	nrealised income (losses) from financial assets measured at fair value through other comprehensive income
	6(20) 6(19) 6(19) 6(19) 6(18)(19) 6(18) 6(20) 6(18) 6(20) 6(19) 6(18)(19) 6(18) 6(20) 6(18)		$ 5,128,636 - - - - - - - - - - - $ 5,128,636 $ 5,128,636 - - - - - - - - - $ 5,128,636	$ 1,045,147 - - - - - - ( 512,864 ) 9,549 - 216 - $ 542,048 $ 542,048 - - - - ( 256,432 ) 1,315 - 351 - $ 287,282			$ 7,262,359 - - - 1,620,405 - - - - - - - $ 8,882,764 $ 8,882,764 - - - - - - - - - $ 8,882,764	$ 1,776,089 - - - - ( 1,776,089 ) - - - - - - $ - $ - - - - - - - - - - $ -		$ 28,854,826 9,152,772 - 9,152,772 ( 1,620,405 ) 1,776,089 ( 13,334,455 ) - - 16,445 - - $ 24,845,272 $ 24,845,272 15,291,442 - 15,291,442 ( 7,692,955 ) - - ( 392,108 ) - - $ 32,051,651			$ 1,294,358 - 283,799 283,799 - - - - - - - - $ 1,578,157 $ 1,578,157 - 3,146,510 3,146,510 - - - - - - $ 4,724,667	$ 1,391,817 - ( 123,789 ) ( 123,789 ) - - - - - ( 16,445 ) - - $ 1,251,583 $ 1,251,583 - 229,072 229,072 - - - 392,108 - - $ 1,872,763		$ 46,753,232 9,152,772 160,010 9,312,782 - - ( 13,334,455 ) ( 512,864 ) 9,549 - 216 - $ 42,228,460 $ 42,228,460 15,291,442 3,375,582 18,667,024 ( 7,692,955 ) ( 256,432 ) 1,315 - 351 - $ 52,947,763		$ 9,718 66 - 66 - - - - - - - ( 82 ) $ 9,702 $ 9,702 83 - 83 - - - - - ( 60 ) $ 9,725		$ 46,762,950 9,152,838 160,010 9,312,848 - - ( 13,334,455 ) ( 512,864 ) 9,549 - 216 ( 82 ) $ 42,238,162 $ 42,238,162 15,291,525 3,375,582 18,667,107 ( 7,692,955 ) ( 256,432 ) 1,315 - 351 ( 60 ) $ 52,957,488

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortization Expected credit (gains) losses Interest expense Interest income Dividend income Gains on financial assets at fair value through profit or loss Share of losses of associates and joint ventures accounted for under equity method Losses (gains) on disposal of property, plant and equipment Gains on disposal of investments Impairment losses on financial assets Gains arising from lease modifications Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss - current Accounts receivable, net Accounts receivable, net - related parties Other receivables Inventories Prepayments Changes in operating liabilities Contract liabilities - current Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Provisions - non-current Accrued pension obligations

YearendedDecember 31 Notes 2024 2023 $ 16,341,210 $ 9,544,635 6(26) 1,460,905 1,308,355 6(11)(26) 1,883,109 1,716,487 12(2) ( 5,175 ) 25,469 6(25) 288,398 247,459 6(22) ( 2,792,033 ) ( 2,581,961 ) 6(23) ( 18,575 ) ( 33,337 ) 6(2)(24) ( 79,049 ) ( 81,860 ) 6(7) 40,813 47,189 6(24) 78 ( 5,275 ) 6(24) - ( 305,599 ) 6(24) 53,000 - 6(24) ( 146 ) - ( 1,998,912 ) 692,017 ( 1,636,134 ) ( 1,267,400 ) ( 548,068 ) 497,629 10,339 15,161 ( 1,749,115 ) 13,795,609 65,310 ( 42,236 ) 77,106 218,896 2,351,228 ( 3,436,070 ) ( 40,733 ) 212,808 6,649,569 ( 3,893,027 ) 20,214 ( 30,108 ) 1,982,664 ( 1,049,852 ) ( 209,601 ) 124,713 ( 2,404 ) ( 3,632 )

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Cash inflow generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income or losses Acquisition of financial assets at amortised cost Proceeds from disposal of financial assets at amortised cost Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets (Increase) decrease in refundable deposits Decrease in other non-current assets Net cash flows (used in) from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Increase in long-term borrowings Decrease in long-term borrowings Repayment of principal portion of lease liabilities Decrease in guarantee deposits Cash from capital surplus and cash dividends Cash dividends returned Net cash flows used in financing activities Effect of exchange rate Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2024 2023 $ 22,143,998 $ 15,716,070 2,793,654 2,438,945 18,575 33,337 ( 292,547 ) ( 250,334 ) ( 729,593 ) ( 41,732 ) 23,934,087 17,896,286 ( 4,652,794 ) - 158,781 309,442 - ( 64,302 ) 18,093 18,041 120,509 - ( 39,991,204 ) ( 50,550,558 ) 38,762,429 54,981,575 ( 28,350 ) - 6(30) ( 2,346,904 ) ( 2,166,602 ) - 15,428 6(30) ( 1,647,943 ) ( 1,461,125 ) ( 99,791 ) 830 - 1,737 ( 9,707,174 ) 1,084,466 6(31) 88,214,680 134,242,945 6(31) ( 87,964,680 ) ( 143,730,939 ) 6(31) - 511,090 6(31) ( 2,239,560 ) - 6(31) ( 126,960 ) ( 114,716 ) 6(31) ( 285 ) ( 92 ) ( 7,949,387 ) ( 13,847,319 ) 351 216 ( 10,065,841 ) ( 22,938,815 ) 383,096 472,319 4,544,168 ( 3,485,744 ) 10,268,291 13,754,035 $ 14,812,459 $ 10,268,291

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

Realtek Semiconductor Corporation (the “Company”) was incorporated as a company limited by shares on October 21, 1987 and commenced commercial operations in March 1988. The Company was based in Hsinchu Science Park since October 28, 1989. The Company and its subsidiaries (collectively referred herein as the “Group”) are engaged in the research, development, design, testing, and sales of ICs and application software for these products.

1. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorized for issuance by the Board of Directors on February 27, 2025.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS ® ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by FSC and became effective from 2024 are as follows:

are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non- current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The above standards, interpretations and amendments have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2025 are as follows:

New Standards, Interpretations and Amendments Amendments to IAS 21, ‘Lack of exchangeability’

Effective date by International Accounting Standards Board January 1, 2025

The above standards, interpretations and amendments have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification	January 1, 2026
and measurement of financial instruments’
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-	January 1, 2026
dependent electricity ’
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

Except for the following, the above standards, interpretations and amendments have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces

a defined structure of the statement of comprehensive income, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

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4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC ® Interpretations, and SIC ® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

• (a) Financial assets (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets at fair value through other comprehensive income.

• (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

~15~

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Description
			December 31,2024	December 31,2023
Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation	Amber Universal Inc. Realtek Singapore Private Limited Wise Elite Global Limited Realsun Investments Co., Ltd.	Investment holdings ICs manufacturing, design, research, development, sales, and marketing Investment holdings 〃	100% 100% 100% 100%	100% 100% 100% 100%

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Ownership (%)
Name of Name of Main business December December
investor subsidiary activities 31, 2024 31, 2023 Description
----- End of picture text -----

Name of investor	Name of subsidiary	Main business activities	December 31,2024 Owners	December 31, 2023 Description hip (%)
Realtek	Hung-wei	Investment	100%	100%
Semiconductor	Venture Capital	holdings
Corporation	Co., Ltd.
Realtek	Realking	〃	100%	100%
Semiconductor	Investments
Corporation	Co., Ltd.
Realtek	Realsun	ICs	100%	100%
Semiconductor	Technology	manufacturing,
Corporation	Corporation	design, research,
		development,
		sales, and
		marketing
Realtek	Bobitag Inc.	Manufacture and	67%	67%
Semiconductor		installation of
Corporation		computer
		equipment and
		wholesale, retail
		and related
		service of
		electronic
		materials and
		information /
		software
Realtek	AICONNX	ICs	100%	100%
Semiconductor	Technology	manufacturing,
Corporation	Corporation	design, research,
		development,
		sales, and
		marketing
Leading	Realtek	Information	100%	100%
Enterprises	Semiconductor	collection and
Limited	(Japan) Corp.	technical support
Amber Universal	Realtek	Information	100%	100%
Inc.	Semiconductor	services and
	(Hong Kong)	technical support
	Limited

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Ownership (%)
Name of Name of Main business December December
investor subsidiary activities 31, 2024 31, 2023 Description
----- End of picture text -----

Name of investor	Name of subsidiary	Main business activities	December 31,2024 Owners	December 31, 2023 Description hip (%)
Amber Universal	Realtek	R&D and	100%	100%
Inc.	Semiconductor	technical support
	(ShenZhen)
	Corp.
Empsonic	Realsil	〃	100%	100%
Enterprises Inc.	Microelectronics
	(Suzhou)
	Co.,Ltd.
Talent Eagle	Ubilinx	〃	100%	100%
Enterprise Inc.	Technology Inc.
Realtek	Cortina Access,	〃	100%	100%
Singapore	Inc.
Private Limited
Realtek	Cortina Systems	〃	100%	100%
Singapore	Taiwan Limited
Private Limited
Realtek	Cortina Network	〃	100%	100%
Singapore	Systems
Private Limited	(Shanghai) Co.,
	Ltd.
Realtek	Empsonic	Investment	100%	100%
Singapore	Enterprises Inc.	holdings
Private Limited
Realtek	Realtek	R&D and	100%	100%
Singapore	Viet Nam	technical support
Private Limited	Co., Ltd.
Realtek	RayMX	ICs	19%	19%
Singapore	Microelectronics	manufacturing,
Private Limited	Corp.	design, research,
		development,
		sales, and
		marketing
Realtek	Leading	Investment	100%	100%
Singapore	Enterprises	holdings
Private Limited	Limited
Realtek	Bluocean Inc.	〃	100%	100%
Singapore
Private Limited

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Ownership (%)
Name of Name of Main business December December
investor subsidiary activities 31, 2024 31, 2023 Description
----- End of picture text -----

Name of investor	Name of subsidiary	Main business activities	December 31,2024 Owners	December 31, 2023 hip (%)	Description
Realtek	Talent Eagle	Investment	100%	100%
Singapore	Enterprise Inc.	holdings
Private Limited
Realtek	Realtek Germany	R&D and	100%	100%
Singapore	GmbH	technical support
Private Limited
Realtek	Realtek	〃	100%	-	Note
Singapore	Bangalore
Private Limited	Private Limited
Realsil	RayMX	ICs	81%	81%
Microelectronics	Microelectronics	manufacturing,
(Suzhou)	Corp.	design, research,
Co.,Ltd.		development,
		sales, and
		marketing
Realsil	Suzhou PanKore	〃	80%	80%
Microelectronics	Integrated
(Suzhou)	Circuit
Co.,Ltd.	Technology Co.
	Ltd.
Realtek	Suzhou PanKore	〃	20%	20%
Semiconductor	Integrated
(ShenZhen)	Circuit
Corp.	Technology Co.
	Ltd.
Bluocean Inc.	Realtek	R&D and	100%	100%
	Semiconductor	technical support
	(Malaysia) Sdn.
	Bhd.
Bluocean Inc.	Realtek Korea	〃	100%	100%
	Inc.
Realsun	Realtek	〃	0%	-	Note
Investments Co.,	Bangalore
Ltd.	Private Limited

Note : Realtek Bangalore Private Limited was established on December 1, 2023.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

~19~

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognized in other comprehensive income.

~20~

  - (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

  - (c) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

• (5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets:

  • (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

  • (c) Assets that are expected to be realized within twelve months from the balance sheet date;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

Otherwise, they are classified as non-current assets.

• B. Liabilities that meet one of the following criteria are classified as current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities held mainly for trading purposes;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

Otherwise, they are classified as non-current liabilities.

(6) Cash equivalents

• Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income. Financial assets at amortized cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are

~21~

recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (8) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs.

The Group subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Financial assets at amortized cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

• D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (10) Accounts receivable

• A. Accounts receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

~22~

(11) Impairment of financial assets

• For financial assets at amortized cost, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses (ECLs) if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime ECLs if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

• (12) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

• (13) Inventories

• Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item-by-item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

• (14) Investments accounted for under equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for under equity method and are initially recognized at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

~23~

• D. Unrealized gains or losses on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘ investments accounted for under equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss.

• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• (15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Other property, plant and equipment apply cost model and are depreciated using the straightline method to allocate their cost over their estimated useful lives. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

~24~

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

Buildings	10~55 years
Machinery	3~5 years
Test equipment	3~5 years
Office equipment	3~5 years
Others	3~5 years

• (16) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Fixed payments, less any lease incentives receivable.

  • The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; and

  • (b) Any lease payments made at or before the commencement date.

  • The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 20 years.

(18) Intangible assets

• A. Computer software

Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 1 to 5 years.

~25~

B. Goodwill

  - Goodwill arises in a business combination accounted for by applying the acquisition method.

• C. Other intangible assets

  • Separately acquired intangible assets with a finite useful life are stated at cost. Intangible assets acquired in a business combination are recognized at fair value at acquisition date. The amortization amounts of separately and consolidated acquired intangible assets were amortized on a straight-line basis over their estimated useful lives of 2-5 years.

• (19) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

• B. The recoverable amounts of goodwill are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

(20) Borrowings

• Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in loss over the period of the borrowings using the effective interest method.

• (21) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (22) Derecognition of financial liabilities

• A financial liability is derecognized when the obligation under the liability specified in the contract is discharged or cancelled or expires.

• (23) Provisions

Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation

~26~

on the balance sheet date.

(24) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plan

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

  - (b) Defined benefit plan

     - i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of highquality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

     - ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the Board meeting resolution.

• (25) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

~27~

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss and does not give rise to equal taxable and dedutible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

• E. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

• (26) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

• (27) Dividends

Cash dividends are recorded as liabilities in the Company’s financial statements in the period in which they are resolved by the Board of Directors. Stock dividends are recorded as stock dividends to be distributed in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders and are reclassified to ordinary shares on the effective date of new shares issuance.

~28~

(28) Revenue recognition

• A. Sales of goods

• (a) The Group manufactures and sells various integrated circuit related products. Sales are recognized when control of the products has transferred, being when the products are delivered to the customers, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• (b) Revenue from these sales is recognized based on the price specified in the contract. A refund liability is recognized for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• (c) A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

• B. Services revenue

Revenue from design, royalty and technical services is recognized after completing the services in which the services are rendered.

(29) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate.

(30) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Group’s Chief Operating Decision-Maker is responsible for allocating resources and assessing performance of the operating segments.

~29~

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

None.

(2) Critical accounting estimates and assumptions

• Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As at December 31, 2024, the carrying amount of inventories was $13,506,049.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits Cash equivalents - notes issued under repurchase agreement	December31,2024 1,304 $ 10,184,803 4,605,121 21,231 14,812,459 $	December31,2023
		841 $ 5,362,257 4,136,818 768,375
		10,268,291 $

The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

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

Financial assets at fair value through profit or loss
Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Beneficiary certificates Structured deposits Non-current items: Financial assets mandatorily measured at fair value through profit or loss Hybrid instruments	December31,2024 191,172 $ 6,880,508 449,129 7,520,809 - $ 7,520,809 $	December31,2023 221,020 $ 727,812 -
		948,832
		53,000 $
		1,001,832 $

• A. Amounts recognized in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

loss are listed below:
Year ended December31,2024 Financial assets mandatorily measured at fair value through profit or loss Equity instruments 29,848) ($ Beneficiary certificates 108,897 Hybrid instruments 53,000) ( 26,049 $	Year ended December31,2023
	61,118 $ 20,742 -
	81,860 $

• B. The Group has no financial assets at fair value through profit or loss pledged to others.

(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed stocks Unlisted stocks	December31,2024 560,991 $ 2,779,662 3,340,653 $	December 31, 2023
		763,506 $ 2,362,592
		3,126,098 $

A. The Group has elected to classify equity instruments investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $3,340,653 and $ 3,126,098 on December 31, 2024 and 2023, respectively.

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• B. Amounts recognized in other comprehensive income in relation to the financial assets at fair value through other comprehensive income or loss are listed below:

		Year ended		Year ended
	December 31, 2024		December 31, 2023
Equity instruments at fair value through
other comprehensive income or loss
Fair value change recognised in
other comprehensive income (losses)	$	229,072	($	123,789)
Cumulative losses (income) reclassified
to retained earnings due to disposal	$	392,108	($	16,445)

• C. The Group has no financial assets at fair value through other comprehensive income pledged to others.

(4) Financial assets at amortized cost

others. Financial assets at amortized cost
Items Current items: Time deposits Non-current items: Corporate bonds Time deposits	December31,2024 32,766,211 $ 8,747,439 $ 320,335 9,067,774 $	December31,2023 32,373,191 $
		5,414,650 $ 94,380
		5,509,030 $

• A. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.

• B. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group’s investments in time deposits were financial institutions who have good credit quality, so it expects that the probability of counterparty default is remote.

(5) Accounts receivable

Accounts receivable
		December31,2024			December31,2023
Accounts receivable		$	12,376,196		$	10,740,062
Accounts receivable - related parties			2,655,757			2,107,689
Less: Loss allowance	(		85,589)	(		90,764)
		$	14,946,364		$	12,756,987

• A. The aging analysis of accounts receivable is as follows:

Not past due Up to 30 days 31 to 90 days Over 90 days	December31,2024 14,507,289 $ 524,626 - 38 15,031,953 $	December 31, 2023
		12,266,292 $ 577,646 3,777 36
		12,847,751 $

The above aging analysis is based on past due date.

• B. As at December 31, 2024 and 2023, accounts receivable were all from contracts with customers.

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And as at January 1, 2023, the balance of receivables from contracts with customers amounted to $12,077,980.

• C. The Group has no accounts receivable pledged to others.

• D. Information relating to credit risk of accounts receivable is provided in Note 12(2).

• (6) Inventories

Inventories
Raw materials Work in process Finished goods Raw materials Work in process Finished goods	Allowance for obsolescence and Cost market value decline 2,139,875 $ 666,180) ($ 6,379,346 1,034,985) ( 8,581,089 1,893,096) ( 17,100,310 $ 3,594,261) ($ December31,2024 December 31, 2023	Bookvalue 1,473,695 $ 5,344,361 6,687,993
		13,506,049 $
	Allowance for obsolescence and Cost market value decline 2,647,401 $ 1,213,544) ($ 6,290,100 3,003,060) ( 9,829,180 2,793,143) ( 18,766,681 $ 7,009,747) ($	Bookvalue 1,433,857 $ 3,287,040 7,036,037
		11,756,934 $

Operating costs incurred on inventories for the years ended December 31, 2024 and 2023 were as follows:

follows:
Year ended December31,2024 Cost of inventories sold and others 59,673,956 $ Inventories (gains on reversal of) losses on decline in market value, obsolete and slow-moving inventories 3,583,414) ( Losses on scrap inventories 141,320 56,231,862 $	Year ended December 31, 2023
	50,315,861 $ 3,904,005 211,353
	54,431,219 $

For the year ended December 31, 2024, the gains were from the reversal of allowance for obsolescence and market value decline when those inventories were sold.

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(7) Investments accounted for under equity method

December31,2024 Innorich Venture Capital Corp. 89,909 $ Starmems Semiconductor Corp. 30,737 120,646 $	December31,2023 112,797 $ 18,997 131,794 $

The loss on investments accounted for under equity method amounted to $40,813, and $47,189 for the years ended December 31, 2024 and 2023, respectively.

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(8) Property, plant and equipment

At January 1, 2024 Cost Accumulated depreciation and impairment 2024 At January 1 Additions Disposals Reclassifications Depreciation Net exchange difference At December 31 At December 31, 2024 Cost Accumulated depreciation and impairment

Construction in progress and equipment to Land Buildings Machinery Test equipment Office equipment beinspected Others Total 489,370 $ 4,624,038 $ 1,329,794 $ 4,330,811 $ 494,375 $ 1,686,981 $ 1,175,556 $ 14,130,925 $ - 1,281,875) ( 710,639) ( 2,597,384) ( 279,704) ( - 506,837) ( 5,376,439) ( 489,370 $ 3,342,163 $ 619,155 $ 1,733,427 $ 214,671 $ 1,686,981 $ 668,719 $ 8,754,486 $ 489,370 $ 3,342,163 $ 619,155 $ 1,733,427 $ 214,671 $ 1,686,981 $ 668,719 $ 8,754,486 $ - 10,712 129,308 504,088 101,250 1,283,081 140,300 2,168,739 - 75) ( - - - - 3) ( 78) ( - 96,411 - 105,426 9,401 307,513) ( 96,275 - - 145,467) ( 177,794) ( 722,534) ( 73,586) ( - 206,317) ( 1,325,698) ( - 9,034 1,769 976 520 155 264 12,718 489,370 $ 3,312,778 $ 572,438 $ 1,621,383 $ 252,256 $ 2,662,704 $ 699,238 $ 9,610,167 $ 489,370 $ 4,754,571 $ 1,460,319 $ 4,945,234 $ 605,357 $ 2,662,704 $ 1,413,132 $ 16,330,687 $ - 1,441,793) ( 887,881) ( 3,323,851) ( 353,101) ( - 713,894) ( 6,720,520) ( 489,370 $ 3,312,778 $ 572,438 $ 1,621,383 $ 252,256 $ 2,662,704 $ 699,238 $ 9,610,167 $

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At January 1, 2023 Cost Accumulated depreciation and impairment 2023 At January 1 Additions Disposals Reclassifications Depreciation Net exchange difference At December 31 At December 31, 2023 Cost Accumulated depreciation and impairment

Construction in progress and equipment to Land Buildings Machinery Test equipment Office equipment beinspected Others Total 489,370 $ 3,083,025 $ 1,292,529 $ 3,414,364 $ 434,731 $ 2,346,590 $ 738,890 $ 11,799,499 $ - 1,187,897) ( 532,861) ( 1,960,834) ( 215,677) ( - 345,594) ( 4,242,863) ( 489,370 $ 1,895,128 $ 759,668 $ 1,453,530 $ 219,054 $ 2,346,590 $ 393,296 $ 7,556,636 $ 489,370 $ 1,895,128 $ 759,668 $ 1,453,530 $ 219,054 $ 2,346,590 $ 393,296 $ 7,556,636 $ - 39,516 50,152 1,002,608 47,053 869,169 374,948 2,383,446 - - 7,451) ( 2,530) ( 172) ( - - 10,153) ( - 1,518,099 11,399 77,518) ( 14,370 1,528,237) ( 61,887 - - 117,856) ( 191,845) ( 651,511) ( 67,103) ( - 160,058) ( 1,188,373) ( - 7,276 2,768) ( 8,848 1,469 541) ( 1,354) ( 12,930 489,370 $ 3,342,163 $ 619,155 $ 1,733,427 $ 214,671 $ 1,686,981 $ 668,719 $ 8,754,486 $ 489,370 $ 4,624,038 $ 1,329,794 $ 4,330,811 $ 494,375 $ 1,686,981 $ 1,175,556 $ 14,130,925 $ - 1,281,875) ( 710,639) ( 2,597,384) ( 279,704) ( - 506,837) ( 5,376,439) ( 489,370 $ 3,342,163 $ 619,155 $ 1,733,427 $ 214,671 $ 1,686,981 $ 668,719 $ 8,754,486 $

A. There was no capitalization of borrowing costs attributable to the property, plant and equipment.

B. The Group has no property, plant and equipment pledged to others.

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－ (9) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings and other equipment. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The carrying amount of right-of-use assets and the depreciation are as follows:

Land Buildings Other equipment Land Buildings Other equipment	December31,2024 December31,2023 1,535,285 $ 1,558,868 $ 132,528 185,723 13,823 23,204 1,681,636 $ 1,767,795 $ Carryingamount Depreciation	December31,2023 1,558,868 $ 185,723 23,204 1,767,795 $ amount
	Year ended December31,2024 38,953 $ 82,182 10,109 131,244 $	Year ended December 31, 2023
		36,334 $ 72,865 6,877
		116,076 $

• C. For the years ended December 31, 2024 and 2023, the additions to right-of-use assets were $39,546, and $341,081, respectively.

• D. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities	Year ended December31,2024 32,672 $	Year ended December 31, 2023
		32,982 $

• E. For the years ended December 31, 2024 and 2023, the Group’s total cash outflow for leases were $159,632, and $147,698, respectively.

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(10) Investment property

==> picture [481 x 218] intentionally omitted <==

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

Buildings
2024 2023
At January 1
Cost $ 81,024 $ 82,504
Accumulated depreciation and impairment ( 47,146) ( 44,088)
$ 33,878 $ 38,416
At January 1 $ 33,878 $ 38,416
Depreciation ( 3,963) ( 3,906)
Net exchange difference 1,206 ( 632)
At December 31 $ 31,121 $ 33,878
At December 31
Cost $ 83,968 $ 81,024
Accumulated depreciation and impairment ( 52,847) ( 47,146)
$ 31,121 $ 33,878
----- End of picture text -----

At December 31 Cost Accumulated depreciation and impairment	83,968 $ $ 52,847) ( ( 31,121 $ $	83,968 $ $ 52,847) ( ( 31,121 $ $	83,968 $ $ 52,847) ( ( 31,121 $ $	81,024 47,146) 33,878
A. Rental income from the lease of the investment	property and direct operating			expenses arising
from the investment property are shown below:
		Year ended		Year ended
	December31,2024		December31,2023
Rental income from the lease of the investment
property	$	2,292	$	2,259
Operating expenses arising from the
investment property that generated rental
income during the yaer	$	3,963	$	3,906

• B. The Group’s investment property is located in Mainland China. The fair value is based on valuation information from Information Centre of Real Estate in local governments in Mainland China and is adjusted and classified as level 3 accordingly. As at December 31, 2024 and 2023, the fair values were $156,713 and $112,686, respectively.

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(11) Intangible assets

==> picture [481 x 476] intentionally omitted <==

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

Computer Intellectual
software property Goodwill Others Total
At January 1, 2024
Cost $ 4,061,937 $ 2,960,738 $ 639,561 $ 296,587 $ 7,958,823
Accumulated amortisation
and impairment ( 2,151,416) ( 2,247,861) ( 639,561) ( 295,387) ( 5,334,225)
$ 1,910,521 $ 712,877 $ - $ 1,200 $ 2,624,598
2024
At January 1 $ 1,910,521 $ 712,877 $ - $ 1,200 $ 2,624,598
Additions 662,803 1,253,148 - - 1,915,951
Amortisation ( 1,236,076) ( 647,033) - - ( 1,883,109)
Net exchange difference 694 1,001 - - 1,695
At December 31 $ 1,337,942 $ 1,319,993 $ - $ 1,200 $ 2,659,135
At December 31, 2024
Cost $ 4,725,986 $ 4,221,023 $ 639,561 $ 316,250 $ 9,902,820
Accumulated amortisation
and impairment ( 3,388,044) ( 2,901,030) ( 639,561) ( 315,050) ( 7,243,685)
$ 1,337,942 $ 1,319,993 $ - $ 1,200 $ 2,659,135
Computer Intellectual
software property Goodwill Others Total
At January 1, 2023
Cost $ 7,099,807 $ 6,117,679 $ 639,561 $ 348,766 $ 14,205,813
Accumulated amortisation
and impairment ( 5,700,830) ( 5,162,742) ( 639,561) ( 289,485) ( 11,792,618)
$ 1,398,977 $ 954,937 $ - $ 59,281 $ 2,413,195
2023
At January 1 $ 1,398,977 $ 954,937 $ - $ 59,281 $ 2,413,195
Additions 1,551,278 319,286 - 49,609 1,920,173
Reclassifications 102,048 - - ( 102,048) -
Amortisation ( 1,141,458) ( 569,301) - ( 5,728) ( 1,716,487)
Net exchange difference ( 324) 7,955 - 86 7,717
At December 31 $ 1,910,521 $ 712,877 $ - $ 1,200 $ 2,624,598
At December 31, 2023
Cost $ 4,061,937 $ 2,960,738 $ 639,561 $ 296,587 $ 7,958,823
Accumulated amortisation
and impairment ( 2,151,416) ( 2,247,861) ( 639,561) ( 295,387) ( 5,334,225)
$ 1,910,521 $ 712,877 $ - $ 1,200 $ 2,624,598
----- End of picture text -----

Details of amortization on intangible assets are as follows:

Operating costs Operating expenses	Year ended December31,2024 3,404 $ 1,879,705 1,883,109 $	Year ended December 31, 2023
		4,668 $ 1,711,819
		1,716,487 $

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(12) Short-term borrowings

Type of borrowings December31,2024 Interest rate range Bank borrowings Unsecured borrowings 4,500,000 $ 1.78%~1.92% Type of borrowings December 31, 2023 Interest rate range Bank borrowings Unsecured borrowings 4,250,000 $ 1.31%~1.35%	Collateral None Collateral None

Interest expense of bank borrowings recognized in profit or loss amounted to $255,726, and $214,477 for the years ended December 31, 2024 and 2023, respectively.

(13) Other payables

$214,477 for the years ended December 31, 2024 and Other payables	2023, respectively.
Accrued salaries and bonus Payable for employees’ compensation Other accrued expenses Payables on equipment Payables on software and intellectual property Others	December31,2024 16,568,899 $ 9,599,999 2,717,382 153,193 2,019,363 184,349 31,243,185 $	December 31, 2023
		9,186,342 $ 10,527,846 2,579,852 331,358 1,751,355 136,284
		24,513,037 $

- (14) Long term borrowings

December 31, 2024 ： None

A: The Group has settled the loans for Accelerated Investment by Domestic Corporations in the fourth quarter, 2024.

ourth quarter, 2024.
Type of borrowings Loan for Accelerated Investment by Domestic Corporations (Note)	Borrowing Repayment period term 2021/11/8 ~2028/11/22 Repayable in instalment over the agreed period	Interest rate range 1.050%～ 1.250%	Collateral None	December 31, 2023
				$2,227,346

Note: The Ministry of Economic Affairs implemented the “Action Plan for Accelerated Investment by Domestic Corporations” on July 1, 2019. An entity can apply for a subsidized loan for an eligible investment project from financial institutions at a preferential interest rate. The Group is qualified for the loan as approved by the Ministry of Economic Affairs and entered into a loan contract with a financial institution with a credit period of 5 years. The loan is used for construction of plant and related facilities.

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(15) Pension

• A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

• (b) The amounts recognized in the balance sheet are determined as follows:

	December	31,2024	December	31, 2023
Present value of defined benefit obligations	($	646,818)	($	630,660)
Fair value of plan assets		564,301		544,541
Net defined benefit liability	($	82,517)	($	86,119)

• (c) Movement in net defined benefit liabilities are as follows:

2024

					2024
	Present value of
	defined benefit			Fair value of				Net defined
		obligations			plan assets		benefit liability
At January 1	($	630,660)		$	544,541	($		86,119)
Current service cost	(	1,188)			-	(		1,188)
Interest (expense) income	(	8,134)			6,924	(		1,210)
	(	639,982)			551,465	(		88,517)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)		-			11,578			11,578
Change in financial assumptions		11,037			-			11,037
Experience adjustments	(	22,615)			-	(		22,615)
	(	11,578)			11,578			-
Pension fund contribution		-			6,000			6,000
Paid pension		4,742	(		4,742)			-
At December 31	($	646,818)		$	564,301	($		82,517)

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2023

					2023
	Present value of
	defined benefit			Fair value of				Net defined
		obligations			plan assets		benefit liability
At January 1	($	624,489)		$	533,997	($		90,492)
Current service cost	(	1,106)			-	(		1,106)
Interest (expense) income	(	8,603)			7,582	(		1,021)
	(	634,198)			541,579	(		92,619)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)		-			28,522			28,522
Change in financial assumptions	(	5,706)			-	(		5,706)
Experience adjustments	(	22,316)			-	(		22,316)
	(	28,022)			28,522			500
Pension fund contribution		-			6,000			6,000
Paid pension		31,560	(		31,560)			-
At December 31	($	630,660)		$	544,541	($		86,119)

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “ Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, overthe-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks.

• (e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Year ended Year ended December31,2024 December31,2023 1.50% 1.30% 4.75% 4.75%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2024 and 2023.

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Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

December 31, 2024 Effect on present value of defined benefit obligation December 31, 2023 Effect on present value of defined benefit obligation	Increase by Decrease by Increase by Decrease by 0.25% 0.25% 0.25% 0.25% 14,076 $ 14,523) ($ 13,765) ($ 13,418 $ 14,524 $ 15,015) ($ 14,185) ($ 13,802 $ Discountrate Future salaryincreases

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

• (f) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2025 amount to $6,000.

• (g) As at December 31, 2024, the weighted average duration of the retirement plan is 10 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 2-5 year(s) 5-10 years	360,380 $ 155,836 172,541
	688,757 $

• B. (a) Effective July 1, 2005, the Company and domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. Employees may receive the payment of the pension every month or on a lump-sum basis depending on the accumulated earnings in the personal pension account.

• (b) The Company’s mainland China subsidiaries, Realsil Microelectronics (Suzhou) Co.,LTD, Realtek Semiconductor (ShenZhen) Corp., Cortina Network Systems (Shanghai) Co., Ltd., RayMX Microelectronics Corp. and Suzhou PanKore Integrated Circuit Technology Co. Ltd. have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Monthly contributions to an independent fund are administered by the government. Other than the monthly contributions, the Group has no further obligations.

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• (c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2024 and 2023 were $462,421 and $429,487, respectively.

(16) Provision

			2024			2023
At January 1		$	1,392,138		$	1,287,710
Increase in provision			131,124			124,713
Used during the period	(		340,725)			-
Effect of exchange rate			84,023	(		20,285)
At December 31		$	1,266,560		$	1,392,138

As at December 31, 2024, provisions were estimated for potential infringement litigations, please refer to Note 9.

(17) Share capital

• A. As at December 31, 2024, the Company’s authority capital was $8,900,000, consisting of 890 million shares of common stock (including 80 million shares reserved for employee stock options), and the paid-in capital was $5,128,636 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number (thousands of shares) of the Company's common shares outstanding are as follows:

2024 2023 At January 1 and December 31 512,863 512,863

• B. On January 24, 2002, the Company increased its new common stock and sold its old common stock by issuing 13,924 thousand units of GDRs for cash. Each GDR unit represents 4 common stocks, so the total common stocks issued were 55,694 thousand shares. The Company’s GDRs are traded in the Luxembourg Stock Exchange. As at December 31, 2024, the outstanding GDRs were 410 thousand units, or 1,640 thousand shares of common stock, representing 0.31% of the Company’s total common stocks.

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

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Change in equity of associates accounted for under Share premium equitymethod At January 1 469,966 $ 70,810 $ Changes in equity of associates accounted for under equity method - 1,315 Cash from capital surplus 256,432) ( - Cash dividends returned - - At December 31 213,534 $ 72,125 $ 2024 Change in equity of associates accounted for under Share premium equity method At January 1 982,830 $ 61,261 $ Changes in equity of associates accounted for under equity method - 9,549 Cash from capital surplus 512,864) ( - Cash dividends returned - - At December 31 469,966 $ 70,810 $ 2023

Others Total 1,272 $ 542,048 $ - 1,315 - 256,432) ( 351 351 1,623 $ 287,282 $ Others Total 1,056 $ 1,045,147 $ - 9,549 - 512,864) ( 216 216 1,272 $ 542,048 $

(19) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve, if legal reserve has accumulated to an amount equal to the paid-in capital, then legal reserve is not required to be set aside any more. After that, special reserve shall be set aside or reversed in accordance with the related laws or the regulations made by the Competent Authority. The remainder, if any, along with prior year’s accumulated undistributed earnings shall be proposed by the Board of Directors. However, the appropriation of earnings shall be resolved by the shareholders if earnings are distributed by issuing new shares, or the appropriation of earnings shall be resolved by the Board of Directors, if earnings are distributed in the form of cash. The Company should consider factors affecting finance, business and operations to appropriate distributable earnings for the period, and appropriate all or partial reserve in accordance with regulations of the Competent Authority. Dividends shall account for at least 50% of the distributable earnings added in the current year.

The Company’s dividend policy takes into consideration the Company’s future expansion plans and future cash flows. In accordance with the Company’s dividend policy, cash dividends shall account for at least 10% of the total dividends distributed.

~45~

In accordance with Article 240, Item 5 and Article 241, Item 2 of the Company Act, the resolution, for all or a portion of distributable dividends, legal reserve and capital surplus are distributed in the form of cash, will be adopted by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors, and will be reported to the shareholders.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• D. The appropriation of 2023 and 2022 earnings had been resolved at the shareholders’ meeting on May 30, 2024 and June 6, 2023, respectively. Details are summarized below:

on May 30, 2024 and June 6,	2023, respectively. Details are summarized below:	ummarized below:	ummarized below:
Legal reserve Special reserve Cash dividends Total	Dividends per share Dividends per share Amount (indollars) Amount (indollars) - $ - $ 1,620,405 $ - $ - - 1,776,089) ( - 7,692,955 15.00 13,334,455 26.00 7,692,955 $ 15.00 $ 13,178,771 $ 26.00 $ 2023 2022	2022
	Amount - $ - 7,692,955 7,692,955 $		Dividends per share (indollars)
			- $ - 26.00
			26.00 $

• E. On April 19, 2024, the Board of Directors of the Company resolved to distribute cash dividends from capital surplus to shareholders in the amount of $256,432 (NT$0.5 per share).

• F. On April 21, 2023, the Board of Directors of the Company resolved to distribute cash dividends from capital surplus to shareholders in the amount of $512,864 (NT$1 per share).

• G. On February 27, 2025, the Board of Directors of the Company proposed the distribution of 2024 earnings and resolved to distribute cash dividends of $13,078,023 (NT$25.5 per share).

~46~

(20) Other equity items

(21)

Operating revenue A. Disaggregation of revenue from contracts with customers The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines: Unrealised gains Currency onvaluation translationdifferences Total At January 1 1,251,583 $ 1,578,157 $ 2,829,740 $ Revaluation: –Group 229,072 - 229,072 Revaluation transferred to retained earnings: –Group 392,108 - 392,108 Currency translation differences: –Group - 3,146,510 3,146,510 At December 31 1,872,763 $ 4,724,667 $ 6,597,430 $ 2024 Unrealised gains Currency (losses)onvaluation translation differences Total At January 1 1,391,817 $ 1,294,358 $ 2,686,175 $ Revaluation: –Group 123,789) ( - 123,789) ( Revaluation transferred to retained earnings: –Group 16,445) ( - 16,445) ( Currency translation differences: –Group - 283,799 283,799 At December 31 1,251,583 $ 1,578,157 $ 2,829,740 $ 2023 Year ended Year ended December31,2024 December31,2023 Revenue from contracts with customers 113,393,698 $ 95,179,276 $ Integrated Year ended December 31, 2024 circuitproducts Others Total Revenue from external customer contracts 113,082,609 $ 311,089 $ 113,393,698 $ Timing of revenue recognition At a point in time 113,082,609 $ 311,089 $ 113,393,698 $

~47~

Year ended December 31, 2023 Revenue from external customer contracts Timing of revenue recognition At a point in time	Integrated circuitproducts 94,998,343 $ 94,998,343 $	Others 180,933 $ 180,933 $	Total
			95,179,276 $
			95,179,276 $

B. Contract liabilities

The Group has recognized the following revenue-related contract liabilities:

December 31, 2024 December 31, 2023 January 1, 2023 Contract liabilities - advance sales receipts $ 413,754 $ 336,648 $ 117,752

Revenue recognized that was included in the contract liability balance at the beginning of the period:

period:
Contract liabilities – advance sales receipts	Year ended December31,2024 334,458 $	Year ended December31,2023
		109,890 $

C. Refund liabilities (shown in other current liabilities)

The Group estimates the discounts based on accumulated experience. The estimation is subject to an assessment at each reporting date.

The following refund liabilities:

to an assessment at each reporting date. The following refund liabilities:
Interest income Other income Refund liabilities – current Interest income from bank deposits and corporate bonds Dividend income Grant income Other income	December31,2024 9,891,380 $ Year ended December31,2024 2,792,033 $ Year ended December31,2024 18,575 $ 205,086 81,714 305,375 $	December31,2023
		7,908,929 $
		Year ended December31,2023
		2,581,961 $
		Year ended December31,2023
		33,337 $ 59 170,580
		203,976 $

(22) Interest income

(23) Other income

~48~

(24) Other gains and losses

Other gains and losses
			Year ended			Year ended
		December31,2024			December31,2023
(Losses) gains on disposal of property, plant and	($		78)		$	5,275
equipment
Gains on disposal of investments			-			305,599
Net currency exchange gains			91,327			36,265
Gains on financial assets at fair value
through profit or loss			79,049			81,860
Impairment losses on financial assets	(		53,000)			-
Gains arising from lease modifications			146			-
Other losses	(		45,977)	(		30,645)
		$	71,467		$	398,354

(25) Finance costs

Finance costs
Interest expense Bank borrowings Lease liabilities	Year ended December31,2024 255,726 $ 32,672 288,398 $	Year ended December31,2023
		214,477 $ 32,982
		247,459 $

(26) Expenses by nature

Expenses by nature
Employee benefit expenses Employee benefit expenses Depreciation Amortisation Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Total	Year ended December31,2024 32,477,891 $ 1,460,905 1,883,109 Year ended December31,2024 30,076,743 $ 1,295,501 464,819 640,828 32,477,891 $	Year ended December31,2023
		24,103,476 $ 1,308,355 1,716,487 Year ended December 31, 2023
		22,354,529 $ 898,392 431,614 418,941
		24,103,476 $

(27) Employee benefit expenses

~49~

• A. In accordance with the Company’s Articles of Incorporation, the Company shall appropriate no higher than 3% for directors’ remuneration and no less than 1% for employees’ compensation, if the Company generates profit. If the Company has accumulated deficit, earnings should be reserved to cover losses before the appropriation of directors’ remuneration and employees’ compensation.

  • Aforementioned employees’ compensation could be distributed by cash or stocks. Specifics of the compensation are to be determined by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors. The resolution should be reported to the shareholders during the shareholders’ meeting.

• B. For the years ended December 31, 2024 and 2023, employees’ compensation were accrued at $4,497,483, and $2,696,047, respectively; directors’ remuneration were accrued at $100,000, and $90,000, respectively. The amounts were estimated as operating cost or operating expense in accordance with the Company’s Articles of Incorporation.

  • On April 19, 2024, employees’ compensation was $2,696,047, and directors’ remuneration was $90,000 for 2023 resolved at the meeting of the Board of Directors, both distributed in cash and agreed with those amounts recognized in the 2023 financial statements. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

• (28) Income tax

• A. Income tax expense

the website of the Taiwan Stock Exchange. ome tax Income tax expense
			Year ended			Year ended
		December 31, 2024			December31,2023
Current income tax:
Current income tax on profit for the period		$	1,136,867		$	499,504
Tax on undistributed earnings			73,813			151,264
Prior year income tax overestimation	(		123,126)	(		195,678)
Total current income tax			1,087,554			455,090
Deferred income tax:
Origination and reversal of temporary
differences	(		37,869)	(		63,293)
Income tax expense		$	1,049,685		$	391,797

~50~

B. Reconciliation between income tax expense and accounting profit

			Year ended			Year ended
		December 31, 2024			December31,2023
Income tax calculated based on income
before tax		$	3,703,347		$	1,926,504
Expenses disallowed by tax regulation and
effects from tax-exempt income	(		2,604,349)	(		1,490,293)
Prior year income tax overestimation	(		123,126)	(		195,678)
Tax on undistributed earnings			73,813			151,264
Income tax expense		$	1,049,685		$	391,797

• C. Amounts of deferred income tax assets or liabilities as a result of temporary differences are as follows:

January1 Deferred income tax assets: －Temporary differences: Unrealised loss on market price decline and obsolete and slow-moving inventories and others 337,312 $ Deferred income tax liabilities: －Temporary differences: Unrealised exchange gain 203,766) ( Total 133,546 $ January1 Deferred income tax assets: －Temporary differences: Unrealised loss on market price decline and obsolete and slow-moving inventories and others 132,978 $ Deferred income tax liabilities: －Temporary differences: Unrealised exchange gain 62,725) ( Total 70,253 $		Recognised in profit or loss December31 99,825 $ 437,137 $ 61,956) ( 265,722) ( 37,869 $ 171,415 $ 2024 Recognised in profit or loss December31 204,334 $ 337,312 $ 141,041) ( 203,766) ( 63,293 $ 133,546 $ 2023

~51~

• D. The amounts of deductible temporary differences that were not recognized as deferred income tax assets are as follows:

December 31, 2024 December 31, 2023 Deductible temporary differences $ 2,200,780 $ 1,769,259

• E. As at December 31, 2024, the Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority.

(29) Earnings per share

and approved by the Tax Authority. Earnings per share
Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	Weighted average number of common shares Amount after outstanding (shares tax inthousands) 15,291,442 $ 512,863 15,291,442 $ 512,863 - 8,680 15,291,442 $ 521,543 Year ended December31,2024	Earnings per share (indollars)
		29.82 $
		29.32 $

~52~

Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	Weighted average number of common shares Earnings Amount after outstanding (shares per share tax inthousands) (indollars) 9,152,772 $ 512,863 17.85 $ 9,152,772 $ 512,863 - 7,561 9,152,772 $ 520,424 17.59 $ YearendedDecember31,2023

(30) Supplemental cash flow information

Investing activities with partial cash payments

Supplemental cash flow information Investing activities with partial cash payments
			Year ended			Year ended
		December31,2024			December31,2023
Acquisition of property, plant and equipment		$	2,168,739		$	2,383,446
Add: Opening balance of payable on equipment			331,358			114,514
Less: Ending balance of payable on equipment	(		153,193)	(		331,358)
Cash paid during the period		$	2,346,904		$	2,166,602
			Year ended			Year ended
		December31,2024			December31,2023
Acquisition of intangible assets		$	1,915,951		$	1,920,173
Add: Opening balance of payable on
software and intellectual property			1,751,355			1,292,307
Less: Ending balance of payable on
software and intellectual property	(		2,019,363)	(		1,751,355)
Cash paid during the period		$	1,647,943		$	1,461,125

~53~

(31) Changes in liabilities from financing activities

At January 1, 2024 Changes in cash flow from financing activities Interest paid Interest of lease liabilities Impact of changes in foreign exchange Changes in other non-cash items At December 31, 2024	Liabilities from Short-term Guarantee Lease Long-term financing borrowings deposits liabilities borrowings activities-total 4,250,000 $ 464 $ 1,548,069 $ 2,227,346 $ 8,025,879 $ 250,000 285) ( 126,960) ( 2,239,560) ( 2,116,805) ( - - 32,672) ( - 32,672) ( - - 32,672 - 32,672 - - 17,924 - 17,924 - - 36,206 12,214 48,420 4,500,000 $ 179 $ 1,475,239 $ - $ 5,975,418 $	Liabilities from financing activities-total
		5,975,418 $

Short-term Guarantee Lease borrowings deposits liabilities At January 1, 2023 13,737,994 $ 556 $ 1,301,631 $ Changes in cash flow from financing activities 9,487,994) ( 92) ( 114,716) ( Interest paid - - 32,982) ( Interest of lease liabilities - - 32,982 Impact of changes in foreign exchange - - 20,073 Changes in other non-cash items - - 341,081 At December 31, 2023 4,250,000 $ 464 $ 1,548,069 $	Liabilities from Long-term financing borrowings activities-total 1,713,316 $ 16,753,497 $ 511,090 9,091,712) ( - 32,982) ( - 32,982 - 20,073 2,940 344,021 2,227,346 $ 8,025,879 $	Liabilities from financing activities-total
		8,025,879 $

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The ultimate controlling party of the Group is the Company.

(2) Names of related parties and relationship

Names of related parties Relationship with the Company G.M.I Technology Inc. Other related party Actions Technology (HK) Company Limited Other related party C-Media Electronics Inc. Other related party Greatek Electronics Inc. Other related party

(3) Significant related party transactions and balances

A. Operating revenue

gnificant related party transactions and balances Operating revenue
Year ended December31,2024 Sales of goods﹕ G.M.I Technology Inc. 14,996,561 $ Others 3,136) ( 14,993,425 $	Year ended December31,2023
	11,680,734 $ 57,889
	11,738,623 $

~54~

Goods are sold based on the price lists in force and terms that would be available to third parties, and the general collection term was 30 ~ 60 days after monthly billings.

• B. Processing cost

Processing cost
Greatek Electronics Inc. Others	Year ended December31,2024 1,179,948 $ 74,291 1,254,239 $	Year ended December31,2023
		1,233,087 $ 39,318
		1,272,405 $

Processing cost is paid to related parties on normal commercial terms and conditions, and the general payment term was 69 days after monthly billings.

• C. Receivables from related parties

Receivables from related parties
Accounts receivable﹕ G.M.I Technology Inc. Others	December31,2024 2,636,404 $ 4,670 2,641,074 $	December31,2023
		2,083,442 $ 10,480
		2,093,922 $

Aforementioned receivables were 30 ~ 60 days after monthly billings. The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest.

• D. Payables to related parties

bear no interest. Payables to related parties
Accounts payable﹕ Greatek Electronics Inc. Others	December31,2024 319,648 $ 8,723 328,371 $	December31,2023
		362,074 $ 7,030
		369,104 $

The payment term above was 69 days after monthly billings. The payables to related parties arise mainly from processing cost. The payables bear no interest.

• E. Other transactions and other payables (receivables):

Other related parties- Sales commissions Others	Ending Amount balance 597,216 $ 79,744 $ 6,113 $ 763 $ December31,2024 Year ended	December31,2023 Year ended	December31,2023 Year ended
	Amount 597,216 $ 6,113 $	Amount 491,228 $ 3,926 $	Ending balance
			60,226 $
			67 $

The payment term above was 49 days after monthly billings; the collection term was 30 ~ 60 days after monthly billings.

~55~

(4) Key management compensation

Salaries and other short-term employee benefits Post-employment benefits Total	Year ended Year ended December31,2024 December31,2023 431,595 $ 555,673 $ 4,373 4,188 435,968 $ 559,861 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

==> picture [500 x 129] intentionally omitted <==

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

Book value
Pledged asset December 31, 2024 December 31, 2023 Purposes
Time deposits (shown in $ 31,830 $ 31,779 Guarantee for the
financial assets at amortised importation customs
cost non-current) duties of materials
Guarantee for leasing
land in science park
" 63,941 62,601 and office.
$ 95,771 $ 94,380
----- End of picture text -----

1. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

• A. In 2020, DivX, LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On July 4, 2021, DivX terminated the investigation against the Company in ITC. The case in the United States District Court of Delaware is on appeal, and the Company is unable to reliably determine the outcome of the case.

• B. In 2020, KONINKLIJKE PHILIPS N.V. and PHILIPS NORTH AMERICA LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On March 23, 2022, ITC issued the final determination finding non-infringement for the accused Company’s IC products and non-existence of the required domestic industry. The case in the United States District Court of Delaware is still pending, and the Company is unable to reliably determine the outcome of the case.

• C. In 2022, ParkerVision, Inc. brought an action for patent infringement in United States District Court for the Western District of Texas against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

~56~

• D. In 2023, the Company filed a complaint in the Northern District of California against MediaTek Inc., Future Link Systems LLC, and IPValue Management (Future Link’s parent company) for violation of, including but not limited to, US anti-trust and unfair competition laws. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

• E. In 2023, ParkerVision, Inc. brought another action for patent infringement in United States District Court for the Western District of Texas against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

(2) Commitments

The Company entered into a contract with a supplier. According to the contract, the supplier provided the agreed production capacity to the Company after the Company paid the guarantee deposits. The abovementioned payment was shown in other non-current assets.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• None.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

A. Financial instruments by category

ares or sell assets to reduce debt. nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost/Receivables Cash and cash equivalents Financial assets at amortised cost Accounts receivable (including related parties) Other receivables Refundable deposits	December31,2024 7,520,809 $ 3,340,653 $ 14,812,459 $ 41,833,985 14,946,364 604,664 2,290,871 74,488,343 $	December31,2023
		1,001,832 $
		3,126,098 $
		10,268,291 $ 37,882,221 12,756,987 616,624 2,191,080
		63,715,203 $

~57~

December 31, 2024 December 31, 2023

Financial liabilities Financial liabilities at amortised cost Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Long-term borrowings Guarantee deposits Other financial liabilities Lease liabilities	4,500,000 $ 9,583,608 31,323,692 - 179 9,891,380 55,298,859 $ 1,475,239 $	4,250,000 $ 7,273,113 24,573,330 2,227,346 464 7,908,929
		46,233,182 $
		1,548,069 $

• B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

• (b) Risk management is carried out by a Group finance under policies approved by the Board of Directors. Group finance identifies, evaluates, and hedges financial risks in close cooperation with the Group’s operating units.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to USD and CNY. Foreign exchange risk arises from future commercial transactions, recognized assets, and liabilities.

• ii. Management has set up a policy to require the Group to manage its foreign exchange risk against its functional currency. The Group is required to hedge its entire foreign exchange risk exposure with the Group finance.

~58~

• iii. The Group’s businesses involve some functional currency operations (the Company’s and other certain subsidiaries’ functional currency: NTD ； other certain subsidiaries’ functional currency: USD and CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD	December31,2024	December31,2024
	Foreign currency amount (In thousands) Exchange rate 500,009 $ 32.781 1,760,076 32.781 404,719 32.781 December31,2023		Book value (NTD)
			16,390,795 $ 57,697,051 13,267,094
	Foreign currency amount (In thousands) 319,882 $ 1,473,227 340,095	Exchange rate 30.735 30.735 30.735	Book value (NTD)
			9,831,573 $ 45,279,632 10,452,820

The exchange gains, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2024 and 2023, amounted to $91,327, and $36,265, respectively.

~59~

Analysis of foreign currency market risk arising from significant foreign exchange variation:

==> picture [430 x 451] intentionally omitted <==

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

Year ended December 31, 2024
Sensitivity analysis
Effect on other
Effect on comprehensive
Degree of variation profit or loss income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 5% $ 819,540 $ -
Non-monetary items
USD:NTD 5% - 2,884,853
Financial liabilities
Monetary items
USD:NTD 5% ( 663,355) -
Year ended December 31, 2023
Sensitivity analysis
Effect on other
Effect on comprehensive
Degree of variation profit or loss income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 5% $ 491,579 $ -
Non-monetary items
USD:NTD 5% - 2,263,982
Financial liabilities
Monetary items
USD:NTD 5% ( 522,641) -
----- End of picture text -----

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.

~60~

• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, profit before tax for the years ended December 31, 2024 and 2023 would have increased/decreased by $752,081 and $100,183, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other comprehensive income would have increased/decreased by $334,065 and $312,610, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

• Cash flow and fair value interest rate risk

• i. The Group’s interest rate risk arises from bank time deposits, time deposits with maturity over three months and long-term and short-term borrowings with variable rates. Borrowings with variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. For the years ended December 31, 2024 and 2023, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and US dollars.

• ii. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit before tax for the years ended December 31, 2024 and 2023 would have decreased/increased by $13,722 and $27,411, respectively. If the time deposits interest rate had increased/decreased by 0.25% with all other variables held constant, profit before tax for the years ended December 31, 2024 and 2023 would have increased/decreased by $92,870 and $102,548, respectively. The main factor is that increase or decrease in interest expense and interest income result in floating-rate.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial assets at amortized cost.

• ii. The Group manages their credit risk taking into consideration the entire Group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

• iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

~61~

• iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• vi. The Group classifies customers’ accounts receivable in accordance with customer types. The Group applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis.

• vii. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

• viii. The Group used the forecast ability of semiconductor industry research report to adjust historical and timely information to assess the default possibility of accounts receivable. As at December 31, 2024 and 2023, the provision matrix are as follows:

At December 31, 2024 Expected loss rate Total book value Loss allowance At December 31, 2023 Expected loss rate Total book value Loss allowance	Notpast due 0%~1% 14,507,289 $ 80,305 $ Not past due 0%~1% 12,266,292 $ 84,914 $	1~90 days past due 0%~1% 524,626 $ 5,246 $ 1~90 days past due 0%~1% 581,423 $ 5,814 $	Over 90 days past due 100% 38 $ 38 $ Over 90 days past due 100% 36 $ 36 $	Total
				15,031,953 $
				85,589 $
				Total
				12,847,751 $
				90,764 $

~62~

• ix. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

			2024
			Loss allowance for
			accounts receivable
At January 1		$	90,764
Reversal for impairment loss	(		5,175)
At December 31		$	85,589
			2023
			Loss allowance for
			accounts receivable
At January 1		$	65,295
Provision for impairment loss			25,469
At December 31		$	90,764

• x. For investments in debt instruments at amortised cost, the credit rating levels are presented below:

presented below:
Financial assets at amortised cost Group 1 Group 2 Financial assets at amortised cost Group 1 Group 2		December31,2024
	12 months 33,086,546 $ 8,747,439 41,833,985 $	Significant increase in Impairment credit risk of credit - $ - $ - - - $ - $ Lifetime December 31, 2023	Total
			33,086,546 $ 8,747,439
			41,833,985 $
	12 months 32,467,571 $ 5,414,650 37,882,221 $	Significant increase in Impairment credit risk of credit - $ - $ - - - $ - $ Lifetime	Total
			32,467,571 $ 5,414,650
			37,882,221 $

Group 1: Time deposits with original maturity over three months deposited in financial institutions having good credit quality.

Group 2: Standard Poor’s, Fitch’s, or Moody’s rating of A-level.

~63~

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group finance. Group finance monitors forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities.

• ii. Group finance invests surplus cash in interest bearing demand deposits, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts.

• iii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
December 31, 2024 Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Guarantee deposits Other financial liabilities Non-derivative financial liabilities: December 31, 2023 Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits Other financial liabilities	Less than 1 year 4,500,000 $ 9,583,608 31,323,692 127,398 - 9,891,380 Less than 1 year 4,250,000 $ 7,273,113 24,573,330 137,620 - - 7,908,929	Between 1 and 5 years - $ - - 247,538 - - Between 1 and 5 years - $ - - 305,571 2,227,346 - -	Over5 years
			- $ - - 1,602,634 179 - Over5 years
			- $ - - 1,627,457 - 464 -

iv. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

~64~

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

• B. Fair value information of investment property at cost is provided in Note 6(10).

• C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets is as follows:

• (a) The related information of nature of the assets is as follows:

December 31, 2024 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Listed stocks Beneficiary certificates Structured deposits Financial assets at fair value through other comprehensive income Equity securities Total	Level 1 191,172 $ 6,880,508 449,129 560,991 8,081,800 $	Level 2 - $ - - - - $	Level 3 - $ - - 2,779,662 2,779,662 $	Total
				191,172 $ 6,880,508 449,129 3,340,653
				10,861,462 $

~65~

December 31, 2023 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Listed stocks Beneficiary certificates Hybrid instrument Financial assets at fair value through other comprehensive income Equity securities Total	Level 1 221,020 $ 727,812 - 763,506 1,712,338 $	Level 2 - $ - - - - $	Level 3 - $ - 53,000 2,362,592 2,415,592 $	Total
				221,020 $ 727,812 53,000 3,126,098
				4,127,930 $

• (b) The methods and assumptions the Group used to measure fair value are as follows:

• i. The instruments the Group used market quoted prices as their fair values (that is, Level

  • 1) are listed below by characteristics:

ClosedOpenConvertible Listed end end Government Corporate (exchangeable) shares fund fund bond bond bond Market Closing Closing Net asset Translation Weighted average Closing price quoted price price price value price quoted price

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

• iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.

• D. For the years ended December 31, 2024 and 2023, there were no transfer between Level 1 and Level 2.

~66~

• E. The following chart is the movement of Level 3 for the years ended December 31, 2024 and 2023:

			2024		2023
			Non-derivative		Non-derivative
			equityinstrument		equityinstrument
At January 1		$	2,415,592		2,405,561 $
Losses recognized in profit or loss	(		53,000)		-
Gains (losses) recognized in other
comprehensive income			514,183	(	42,624)
Acquisition during the year			-		70,696
Disposal during the year	(		79,020)		-
Proceeds from capital reduction	(		18,093)	(	18,041)
At December 31		$	2,779,662		2,415,592 $

• F. For the years ended December 31, 2024 and 2023, there were no transfers into or out from Level 3.

• G. The finance division is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

~67~

H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity instrument: Unlisted shares Private equity fund investment Hybrid instrument: Convertible notes Non-derivative equity instrument: Unlisted shares 〃 Private equity fund investment Hybrid instrument: Convertible notes	Fair value at December 31, 2024	Valuation technique	Significant unobservable input Not applicable Not applicable Not applicable Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	139,553 $ 2,640,109 - Fair value at December 31, 2023	Net asset value Net asset value Binomial model Valuation technique		- - - Range (weighted average)	Not applicable Not applicable Not applicable Relationship of inputs to fair value The higher the multiple, the higher the fair value Not applicable Not applicable Not applicable
	118,916 $ 113,921 2,129,755 53,000	Market comparable companies Net asset value Net asset value Binomial model	Price to book ratio multiple Not applicable Not applicable Not applicable	3.40 - - -

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

~68~

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paidin capital or more: Please refer to table 6.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more:

  • Please refer to table 7.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 8.

• (2) Information on investees

Names, locations, and other information of investee companies (not including investees in Mainland China): Please refer to table 9.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 10.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to tables 1, 2 and 8.

• (4) Major shareholders information

Major shareholders information: Please refer to table 11.

14. SEGMENT INFORMATION

(1) General information

The Group operates business only in a single industry. The Chief Operating Decision-Maker, who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

(2) Measurement of segment information

• The Chief Operating Decision-Maker assesses the performance of the operating segments based on the consolidated financial statements. The accounting policy of operating segments is the same as that described in Note 4.

(3) Information on segment profit (loss), assets and liabilities

The revenue from external customers and segment financial information reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated statement of comprehensive income.

~69~

(4) Reconciliation for segment profit (loss)

The segment assets, liabilities and profit before income tax reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated balance sheet and consolidated statement of comprehensive income. As a result, no reconciliation was reported.

(5) Information on products and services

Revenue from external customers is derived from the sale of integrated circuits. Other income is derived from design, royalty and technical services.

Breakdown of the revenue from all sources are as follows:

Revenue from ICs Other income Total	Year ended December31,2024 113,082,609 $ 311,089 113,393,698 $	Year ended December31,2023
		94,998,343 $ 180,933
		95,179,276 $

(6) Geographical information

Geographical information for the years ended December 31, 2024 and 2023 is as follows:

Taiwan Asia Others Total	Revenue Non-current assets 44,435,413 $ 12,111,294 $ 67,922,330 2,241,114 1,035,955 66,371 113,393,698 $ 14,418,779 $ Year ended December 31, 2024	Year ended December 31, 2023	Year ended December 31, 2023
	Revenue 44,435,413 $ 67,922,330 1,035,955 113,393,698 $	Revenue 38,940,171 $ 55,394,154 844,951 95,179,276 $	Non-current assets
			11,850,678 $ 1,251,586 77,072
			13,179,336 $

Note: Non-current assets exclude financial instruments and deferred income tax assets.

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2024 and 2023 is as follows:

follows:
Customer D Customer B Customer A	Revenue Segment 23,612,972 $ All group 20,320,545 " 14,996,561 " YearendedDecember31,2024	YearendedDecember31,2023
	Revenue 23,612,972 $ 20,320,545 14,996,561	Revenue 19,723,991 $ 17,261,675 11,680,734	Segment
			All group " "

~70~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

For the year ended December 31, 2024

No (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2024 (Note 3)	Balance at December 31,2024	Actual amount drawn down (Note 4)	Interest rate(%)	Nature of loan	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted (Note 2)	Footnote
													Item	Value
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	Other receivables-related parties	Y	65,562 $	65,562 $	- $	-	Short-term financing	- $	Operations	- $	None	- $	5,294,776 $	21,179,105 $	None
0	Realtek Semiconductor Corporation	Bluocean Inc.	Other receivables-related parties	Y	3,278,100	3,278,100	-	-	Short-term financing	-	Operations	-	None	-	5,294,776	21,179,105	None
0	Realtek Semiconductor Corporation	Amber Universal Inc.	Other receivables-related parties	Y	983,430	-	-	-	Short-term financing	-	Operations	-	None	-	5,294,776	21,179,105	None
0	Realtek Semiconductor Corporation	Leading Enterprises Limited	Other receivables-related parties	Y	3,278,100	3,278,100	180,296	5.05	Short-term financing	-	Operations	-	None	-	5,294,776	21,179,105	None
1	Leading Enterprises Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	1,966,860	1,966,860	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
2	Amber Universal Inc.	Blueocean Inc.	Other receivables-related parties	Y	1,639,050	1,639,050	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
2	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	3,278,100	3,278,100	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
3	Cortina Access, Inc.	Leading Enterprises Limited	Other receivables-related parties	Y	983,430	983,430	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
4	Realtek Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	Y	3,278,100	3,278,100	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
4	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Other receivables-related parties	Y	65,562	65,562	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None

Table 1 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

For the year ended December 31, 2024

No (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2024 (Note 3)	Balance at December 31,2024	Actual amount drawn down (Note 4)	Interest rate(%)	Nature of loan	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted (Note 2)	Footnote
													Item	Value
4	Realtek Singapore Private Limited	Bluocean Inc.	Other receivables-related parties	Y	3,278,100 $	3,278,100 $	- $	-	Short-term financing	- $	Operations	- $	None	- $	21,179,105	21,179,105 $	None
4	Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	3,278,100	3,278,100	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
4	Realtek Singapore Private Limited	Amber Universal Inc.	Other receivables-related parties	Y	3,278,100	3,278,100	208,159	5.05	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
5	Realsil Microelectronics (Suzhou) Co., Ltd.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	359,303	359,303	151,132	4.35	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
5	Realsil Microelectronics (Suzhou) Co., Ltd.	RayMX Microelectronics Corp.	Other receivables-related parties	Y	359,303	359,303	166,178	4.35	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
6	Cortina Network Systems (Shanghai) Co., Ltd.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	134,739	134,739	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
7	Realtek Investment Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	Y	3,278,100	-	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
7	Realtek Investment Singapore Private Limited	Realtek Singapore Private Limited	Other receivables-related parties	Y	3,278,100	-	-	-	Short-term financing	-	Operations	-	None	-	21,179,105	21,179,105	None
8	Realsun Investments Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Other receivables-related parties	Y	25,000	-	-	-	Short-term financing	-	Operations	-	None	-	5,294,776	21,179,105	None

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: The Company’s “Procedures for Provision of Loans” are as follows:

(1) Ceiling on total loans granted by the Company to all parties is 40% of the Company’s net assets value as per its most recent financial statements.

(2) Limit on loans to a single party with business transactions is the business transactions occurred between the creditor and borrower in the current year. The business transaction amount is the higher of purchasing and selling during current year on the year of financing.

(3) For companies needing for short-term financing, the cumulative lending amount may not exceed 40% of the borrowing company’s net assets based on its latest financial statements audited or reviewed by independent auditors.

The amount the Company or its subsidiaries lend to an individual entity may not exceed 10% of the Company’s or subsidiary’s net assets based on its latest financial statements audited or reviewed by independent auditors.

For the foreign companies which the Company holds 100% of the voting rights directly or indirectly, limit on loans is not restricted as stipulated in the above item (3). However, the ceiling on total loans and limit on loans to a single party may not exceed 40% of the Company’s net assets based on its latest financial statements audited or reviewed by independent auditors.

Note 3: Acccumulated maximum outstandings balance of loans to others as at the reporting month of the current period.

Note 4: Fill in the actual amount of loans to others used by the borrowing company.

Table 1 Page 2

Provision of endorsements and guarantees to others

For the year ended December 31, 2024

Table 2

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

(Except as otherwise indicated)

Party being endorsed/guaranteed

		Party being endorsed/uaranteed	Party being endorsed/uaranteed
Number (Note 1) Endorser/ guarantor		g		Limited on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ amount as at December 31, 2024 (Note 4)	Outstanding endorsement/ guarantee amount at December 31, 2024 (Note 5)	Actual amont drawn down (Note 6)	Amount of endorsements/gurantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)	Footnote
		Companyname Relationship with the endorser/ guarantor (Note2)
0	Realtek Semiconductor Corporation	Realsil Microelectronics (Suzhou) Co., Ltd.	2	23,473,882 $	798,918 $	- $	$ -	- $	-	23,473,882 $	Y	N	Y
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	2	26,473,882 $	758,238	758,238	38,921	-	1.43%	26,473,882	Y	N	Y
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	2	26,473,882 $	1,106,663	1,106,663	-	-	2.09%	26,473,882	Y	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

• (1)The Company is ‘0’.

• (2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories:

• (1) Having business relationship.

(2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorser/guarantor company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.

(4) The endorser/guarantor parent company owns directly or indirectly owns more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (5) Mutual guarantee of the trade as required by the construction contract.

(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: Ceiling on total endorsements/guarantees granted by the Company and subsidiaries is 50% of the Company’s net asset based on the latest financial statements audited or reviewed by independent auditors, and limit on endorsements/guarantees to a single party is 50% of the Company's net asset based on the latest financial statements audited or reviewed by independent auditors.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as at the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Gorverning Loaning of Funds and Making of Endorsements/Guarantees by Public Companies. Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Table 2

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2024

Table 3

(Except as otherwise indicated)

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024
Realtek Semiconductor Corporation	C-media Electronics Inc. - Common stock	Other related parties	Financial assets at fair value through profit or loss	1,278,501	$ 68,783	1.61%	$ 68,783
Realtek Semiconductor Corporation	Yuanta U.S. Treasury 20+ Year Bond ETF	None	Financial assets at fair value through profit or loss	9,415,000	269,740	-	269,740
Realtek Semiconductor Corporation	Cathay U.S. Treasury 20+ Year Bond ETF	None	Financial assets at fair value through profit or loss	6,000,000	178,680	-	178,680
Realtek Semiconductor Corporation	Yuanta US 20+ Year AAA-A Corporate Bond ETF	None	Financial assets at fair value through profit or loss	4,731,000	159,955	-	159,955
Realtek Semiconductor Corporation	Nuheara Limited - Convertible notes	Other related parties	Financial assets at fair value through profit or loss	-	-	-	-
Realtek Semiconductor Corporation	Nuheara Limited - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	45,396,172	-	16.78%	-
Realtek Semiconductor Corporation	GT Booster Corp.-Preferred stock	Other related parties	Financial assets at fair value through other comprehensive income	63,158	65,562	8.00%	65,562
Realtek Semiconductor Corporation	Golden Smart Home Technology Corp.- Common stock	None	Financial assets at fair value through other comprehensive income	1,700,000	8,303	2.62%	8,303
Realtek Semiconductor Corporation	Taiwan Power Company 6th Unsecured Bond-A Issue in 2024	None	Financial assets at amortized cost	-	50,000	-	50,000
Realking Investments Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	3,575,000	85,443	5.31%	85,443
Realsun Investments Co., Ltd.	Shieh-Yong Investment Co., Ltd. - Common stock	None	Financial assets at fair value through other comprehensive income	63,204,538	603,069	3.03%	603,069
Realsun Investments Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	3,575,000	85,443	5.31%	85,443
Leading Enterprises Limited	Starix Technology, Inc.-Preferred stock	None	Financial assets at fair value through other comprehensive income	5,000,000	19,669	-	19,669
Leading Enterprises Limited	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	9,000,000	1,335,585	12.49%	1,335,585
Leading Enterprises Limited	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	4,031,050	-	4,031,050
Leading Enterprises Limited	Qualcomm Inc. - Corporate bond	None	Financial assets at amortized cost	-	551,809	-	551,809
Leading Enterprises Limited	Microsoft Corp. - Corporate bond	None	Financial assets at amortized cost	-	312,024	-	312,024
Leading Enterprises Limited	Pictet Short Term Money Market Fund	None	Financial assets at fair value through profit or loss	600,928	3,261,714	-	3,261,714
Amber Universal Inc.	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	4,726,836	701,455	6.56%	701,455
Hung-wei Venture Capital Co., Ltd.	United Microelectronics Corporation - Common stock	None	Financial assets at fair value through other comprehensive income	336,346	14,480	-	14,480
Hung-wei Venture Capital Co., Ltd.	C-media Electronics Inc.- Common stock	Other related parties	Financial assets at fair value through profit or loss	2,274,875	122,389	2.86%	122,389

Table 3 Page 1

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2024

Table 3

(Except as otherwise indicated)

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024
Hung-wei Venture Capital Co., Ltd.	Greatek Electroninc Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	5,823,602	$ 341,845	1.02%	$ 341,845
Hung-wei Venture Capital Co., Ltd.	Unimicron Technology Corp. - Common stock	None	Financial assets at fair value through other comprehensive income	239,578	33,780	0.02%	33,780
Hung-wei Venture Capital Co., Ltd.	Embestor Technology Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	3,080,000	46,019	10.77%	46,019
Blueocean Inc.	CyWeeMotion Group Limited	None	Financial assets at fair value through other comprehensive income	8,422,256	-	7.01%	-
Blueocean Inc.	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	2,618,166	-	2,618,166
Blueocean Inc.	JPMorgan Liquidity Funds	None	Financial assets at fair value through profit or loss	20,180,479	661,536	-	661,536
Talent Eagle Enterprise Inc.	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	590,811	-	590,811
Talent Eagle Enterprise Inc.	Microsoft Corp. - Corporate bond	None	Financial assets at amortized cost	-	296,581	-	296,581
Realtek Singapore Private Limited	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	296,998	-	296,998
Realtek Singapore Private Limited	JPMorgan Liquidity Funds	None	Financial assets at fair value through profit or loss	192,730	6,318	-	6,318
Realsil Microelectronics (Suzhou) Co., Ltd.	Cuam Money Fund	None	Financial assets at fair value through profit or loss	49,578,885	222,673	-	222,673
Realsil Microelectronics (Suzhou) Co., Ltd.	Guang-Fa Huo Qi Bao Monetary Fund	None	Financial assets at fair value through profit or loss	20,066,105	90,123	-	90,123
Realsil Microelectronics (Suzhou) Co., Ltd.	Jian-Xin Monetary Fund	None	Financial assets at fair value through profit or loss	27,258,539	122,426	-	122,426
Realsil Microelectronics (Suzhou) Co., Ltd.	Guang-Fa Currency Fund	None	Financial assets at fair value through profit or loss	48,774,242	219,059	-	219,059
Realsil Microelectronics (Suzhou) Co., Ltd.	WAN JIA Monetary Fund	None	Financial assets at fair value through profit or loss	45,358,581	203,718	-	203,718
Realsil Microelectronics (Suzhou) Co., Ltd.	BOCOM Monetary Fund	None	Financial assets at fair value through profit or loss	10,049,863	45,137	-	45,137
Realsil Microelectronics (Suzhou) Co., Ltd.	Sws Mu Shouyibao Monetary Fund	None	Financial assets at fair value through profit or loss	5,030,525	22,594	-	22,594
Realsil Microelectronics (Suzhou) Co., Ltd.	Spdb Monetary Fund	None	Financial assets at fair value through profit or loss	642	3	-	3
Realsil Microelectronics (Suzhou) Co., Ltd.	Great Wall Shouyibao Monetary Fund	None	Financial assets at fair value through profit or loss	6,071,346	27,268	-	27,268
Realsil Microelectronics (Suzhou) Co., Ltd.	Huaan Cash Plus Monetary Fund	None	Financial assets at fair value through profit or loss	40,161,475	180,377	-	180,377
Realsil Microelectronics (Suzhou) Co., Ltd.	First-trust TianTianShouYi Monetary Fund	None	Financial assets at fair value through profit or loss	31,152,549	139,915	-	139,915

Table 3 Page 2

Table 3

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2024

(Except as otherwise indicated)

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024
Realsil Microelectronics (Suzhou) Co., Ltd.	WFC AnYi Monetary Fund	None	Financial assets at fair value through profit or loss	30,108,768	$ 135,227	-	$ 135,227
Realsil Microelectronics (Suzhou) Co., Ltd.	Ccb TianTianYi Monetary Fund	None	Financial assets at fair value through profit or loss	18,062,638	81,124	-	81,124
Realsil Microelectronics (Suzhou) Co., Ltd.	Changsheng Monetary Fund	None	Financial assets at fair value through profit or loss	10,037,162	45,080	-	45,080
Realsil Microelectronics (Suzhou) Co., Ltd.	China Southern ShouYiBao Monetary Fund	None	Financial assets at fair value through profit or loss	10,048,914	45,133	-	45,133
Realsil Microelectronics (Suzhou) Co., Ltd.	ICBC Accumulated Corporate Person RMB Structured Deposits Linked to Exchange Rate Range	None	Financial assets at fair value through profit or loss	-	449,129	-	449,129
Realsil Microelectronics (Suzhou) Co., Ltd.	Soochow Money Market Fund	None	Financial assets at fair value through profit or loss	10,041,838	45,101	-	45,101
Realsil Microelectronics (Suzhou) Co., Ltd.	Cuam Money Fund	None	Financial assets at fair value through profit or loss	45,167,708	202,861	-	202,861
Realtek Semiconductor (ShenZhen) Corp.	Jhao-Jhao-Jin Financial Products	None	Financial assets at fair value through profit or loss	9,532,794	42,815	-	42,815
Realtek Semiconductor (ShenZhen) Corp.	China Merchants Zhaoxibao Money Market Fund	None	Financial assets at fair value through profit or loss	10,129,883	45,496	-	45,496
Realtek Semiconductor (ShenZhen) Corp.	China Merchants ZhaoYiBao Monetary Fund	None	Financial assets at fair value through profit or loss	10,122,033	45,461	-	45,461
Realtek Semiconductor (ShenZhen) Corp.	Ping An Caifubao Monetary Fund	None	Financial assets at fair value through profit or loss	15,367,911	69,022	-	69,022
Realtek Semiconductor (ShenZhen) Corp.	BOC Monetary Fund	None	Financial assets at fair value through profit or loss	10,138,841	45,536	-	45,536
Realtek Semiconductor (ShenZhen) Corp.	Ccb TianTianYi Monetary Fund	None	Financial assets at fair value through profit or loss	10,067,820	45,217	-	45,217

Table 3 Page 3

Table 3

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2024

(Except as otherwise indicated)

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024	Number of shares Book value (Note 3) Ownership (%) Fair value Footnote (Note 4) As at December 31,2024
Realtek Semiconductor (ShenZhen) Corp.	China Southern ShouYiBao Monetary Fund	None	Financial assets at fair value through profit or loss	5,026,938	$ 22,577	-	$ 22,577
Realtek Semiconductor (ShenZhen) Corp.	Ping An RiXin Fund	None	Financial assets at fair value through profit or loss	7,539,514	33,862	-	33,862
Realtek Semiconductor (ShenZhen) Corp.	CIB Anruen Money Market Fund	None	Financial assets at fair value through profit or loss	12,979,654	58,295	-	58,295
Realtek Semiconductor (ShenZhen) Corp.	China Southern Tiantianli Money Market Fund	None	Financial assets at fair value through profit or loss	12,232,277	54,939	-	54,939
Cortina Network Systems (Shanghai) Co., Ltd.	Cuam Money Fund	None	Financial assets at fair value through profit or loss	6,280,475	28,207	-	28,207
Cortina Network Systems (Shanghai) Co., Ltd.	JIA SHI Monetary Fund	None	Financial assets at fair value through profit or loss	5,192,062	23,319	-	23,319

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instruments'. Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3 Page 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

For the year ended December 31, 2024

Table 4 Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investor	Balance as at January1,2024	Balance as at January1,2024	Addition	Addition		Disposal	Disposal		Balance as at December 31, 2024 (Except as otherwise indicated) Expressed in thousands of NTD	Balance as at December 31, 2024 (Except as otherwise indicated) Expressed in thousands of NTD
					Number of shares	Amount	Number of shares	Amount (Expressed in thousands of USD)	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount (Expressed in thousands of USD)
Leading Enterprises Limited Bluocean Inc.	Pictet Short Term Money Market Fund JPMorgan Liquidity Funds	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss	- -	- -	- -	$ - -	600,928 20,000,000	USD 96,140 USD 20,000	- -	$ - -	$ - -	$ - -	600,928 20,000,000	USD 96,140 USD 20,000

Table 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

For the year ended December 31, 2024

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	the real estate is disclosed below: If the counterparty is a related party, information as to the last transaction of	the real estate is disclosed below: If the counterparty is a related party, information as to the last transaction of	the real estate is disclosed below: If the counterparty is a related party, information as to the last transaction of	the real estate is disclosed below: If the counterparty is a related party, information as to the last transaction of	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
Realtek Semiconductor Corporation	Office and parking spaces in Zhongshan District, Taipei City	July 30,2024	$920,000	Based on the contract	Jut Land Development Company Limited	None	-	-	-	-	Negotiated with the counterparty based on the appraisal report issued by CCIS Real Estate Joint Appraisers Firm and resolved by the Board of Directors	Owner-occupied office	None

Table 5

Table 6

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the year ended December 31, 2024

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchase/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchase (sales)	Amount	Percentage of total purchase (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	(Sales)	9,854,438) ($	(9%)	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	1,448,325 $	10%
RayMX Microelectronics Corp.	G.M.I Technology Inc.	Other related parties	(Sales)	110,580) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	41,521	0%
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	(Sales)	5,031,543) (	(4%)	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	1,146,558	8%
Realtek Semiconductor Corporation	Greatek Electronics Inc.	Other related parties	Purchase	818,770	1%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	207,868) (	2%
Realtek Singapore Private Limited	Greatek Electronics Inc.	Other related parties	Purchase	356,265	1%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	112,959) (	1%

Table 6

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

December 31, 2024

Table 7

Expressed in thousands of NTD

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2024	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Except a	Allowance for doubtful accounts s otherwise indicated)
					Amount	Action taken
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	1,448,325 $	7.04	- $	-	687,440 $	14,630 $
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	1,146,558	5.47	-	-	464,773	-

Table 7

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Significant inter-company transactions during the reporting period For the year ended December 31, 2024

Transaction

						Transaction
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	1	Other receivables	$ 53,332	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%
0	Realtek Semiconductor Corporation	Realtek Korea Inc.	1	Technical development expense	186,163	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.16%
0	Realtek Semiconductor Corporation	Realtek Korea Inc.	1	Other payables	31,504	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.03%
0	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	1	Technical development expense	733,094	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.65%
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	1	Other revenue	10,314	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	1	Other receivables	10,054	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
1	Realtek Singapore Private Limited	Realsil Microelectronics (Suzhou) Co., Ltd.	3	Technical development expense	3,565,595	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	3.14%
1	Realtek Singapore Private Limited	Realsil Microelectronics (Suzhou) Co., Ltd.	3	Other payables	114,734	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.10%
1	Realtek Singapore Private Limited	Realtek Semiconductor(ShenZhen) Corp.	3	Technical development expense	658,190	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.58%
1	Realtek Singapore Private Limited	Cortina Access, Inc.	3	Technical development expense	244,081	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.22%
1	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co., Ltd.	3	Technical development expense	169,438	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.15%
1	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co., Ltd.	3	Other payables	26,979	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.02%
1	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	3	Technical development expense	184,809	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.16%
1	Realtek Singapore Private Limited	Realtek Semiconductor (Japan) Corp.	3	Technical development expense	74,185	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.07%
1	Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	3	Technical development expense	64,300	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.06%
1	Realtek Singapore Private Limited	Realtek Semiconductor (Malaysia) Sdn. Bhd.	3	Technical development expense	19,213	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.02%
1	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	3	Other receivables	53,332	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the

subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Only transactions above NT$10 million are disclosed. Transactions of related parties are not further disclosed here.

Table 8

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the year ended December 31, 2024

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2024	Shares held as at December 31,2024	Shares held as at December 31,2024	Net profit (loss) of the investee for the year ended December 31,2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024 Footnote	Investment income (loss) recognised by the Company for the year ended December 31, 2024 Footnote
				Balance as at December 31,2024 Balance as at December 31, 2023		Number of shares Ownership (%) Book value
Realtek Semiconductor Corporation	Amber Universal Inc.	British Virgin Islands	Investment holdings	$ 1,882,151	$ 1,764,641	41,432	100%	$ 886,907	25,766 $	25,766 $	Subsidiary
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Singapore	ICs manufacturing, design, research, development, sales, and marketing	4,651,135	4,360,838	116,059,638	100%	56,771,302	15,352,429	15,354,089	Subsidiary
Realtek Semiconductor Corporation	Realsun Investments Co., Ltd.	Taiwan	Investment holdings	280,000	280,000	28,000,000	100%	734,098	8,960) (	8,960) (	Subsidiary
Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Taiwan	Investment holdings	250,000	250,000	25,000,000	100%	567,617	1,038	1,038	Subsidiary
Realtek Semiconductor Corporation	Realking Investments Co., Ltd.	Taiwan	Investment holdings	293,930	293,930	29,392,985	100%	199,105	27,935) (	27,935) (	Subsidiary
Realtek Semiconductor Corporation	Realsun Technology Corporatioin	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	5,000	5,000	500,000	100%	4,936	47) (	47) (	Subsidiary
Realtek Semiconductor Corporation	Bobitag Inc.	Taiwan	Manufacturing and installation of computer equipment and wholesasle, retail and related services of electronic materials and information/software	19,189	19,189	1,918,910	66.67%	19,450	249	166	Subsidiary
Realtek Semiconductor Corporation	AICONNX Technology Corporation	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	20,000	20,000	2,000,000	100%	46,409	51,996	51,589	Subsidiary
Realtek Semiconductor Corporation	Wise Elite Global Limited	British Virgin Islands	Investment holdings	32,781	30,735	1,000	100%	35,662	1,722	1,722	Subsidiary

Table 9 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the year ended December 31, 2024

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2024	Shares held as at December 31,2024	Shares held as at December 31,2024	Net profit (loss) of the investee for the year ended December 31,2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024 Footnote	Investment income (loss) recognised by the Company for the year ended December 31, 2024 Footnote
				Balance as at December 31,2024 Balance as at December 31, 2023		Number of shares Ownership (%) Book value
Realking Investments Co., Ltd.	Innorich Venture Capital Corp.	Taiwan	Venture capital activities	$ 200,000	$ 200,000	20,000,000	37.38%	$ 89,909	8,235) ($	22,889) ($	Investments accounted for under equity method
Realking Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	23,860	10,000	2,386,000	14.04%	9,999	34,278) (	5,219) (	Investments accounted for under equity method
Realsun Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	37,490	23,000	3,749,000	22.05%	15,710	34,278) (	9,161) (	Investments accounted for under equity method
Hung-wei Venture Capital Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	12,000	12,000	1,200,000	7.06%	5,028	34,278) (	3,544) (	Investments accounted for under equity method
Leading Enterprises Limited	Realtek Semiconductor (Japan) Corp.	Japan	Information collection and technical support	4,197	4,347	400	100%	2,242	316	709	Sub-Subsidiary
Amber Universal Inc.	Realtek Semiconductor (Hong Kong)Limited	Hong Kong	Information services and technical support	6,334	5,901	-	100%	1,155	46) (	46) (	Sub-Subsidiary
Realtek Singapore Private Limited	Empsonic Enterprises Inc.	Mauritius	Investment holdings	926,063	868,264	2,825,000	100%	2,568,212	207,437	207,437	Sub-Subsidiary
Realtek Singapore Private Limited	Cortina Access, Inc.	U.S.A	R&D and technical support	1,338,973	1,255,402	16,892	100%	1,097,907	61,282	61,282	Sub-Subsidiary

Table 9 Page 2

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the year ended December 31, 2024

Initial investment amount Shares held as at December 31, 2024

Investor	Investee	Location	Main business activities	Balance as at December 31,2024 Balance as at December 31, 2023 Number of shares Ownership (%) Book value	Balance as at December 31,2024 Balance as at December 31, 2023 Number of shares Ownership (%) Book value	Balance as at December 31,2024 Balance as at December 31, 2023 Number of shares Ownership (%) Book value	Balance as at December 31,2024 Balance as at December 31, 2023 Number of shares Ownership (%) Book value	Balance as at December 31,2024 Balance as at December 31, 2023 Number of shares Ownership (%) Book value	Net profit (loss) of the investee for the year ended December 31,2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024 Footnote	Investment income (loss) recognised by the Company for the year ended December 31, 2024 Footnote
Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	Taiwan	R&D and technical support	$ 65,562	$ 61,470	21,130,000	100%	$ 103,624	18,751 $	18,751 $	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	Vietnam	R&D and technical support	131,124	122,940	4,000,000	100%	94,417	6,545	6,545	Sub-Subsidiary
Realtek Singapore Private Limited	Leading Enterprises Limited	British Virgin Islands	Investment holdings	16,191,519	15,180,939	34,630	100%	16,801,408	699,592	699,592	Sub-Subsidiary
Realtek Singapore Private Limited	Bluocean Inc.	Cayman Islands	Investment holdings	3,607,549	3,382,387	110,050,000	100%	3,946,740	163,121	163,121	Sub-Subsidiary
Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Cayman Islands	Investment holdings	3,740,312	3,506,864	114,100,000	100%	2,843,247	157,341	157,341	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Germany GmbH.	Germany	R&D and technical support	17,066	17,006	500,000	100%	17,717	251	251	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Bangalore Private Limited	India	R&D and technical support	4,980	-	1,299,999	100%	1,327	3,662) (	3,662) (	Sub-Subsidiary
Talent Eagle Enterprise Inc.	Ubilinx Technology Inc.	U.S.A	R&D and technical support	1,966,860	1,844,100	60,000,000	100%	412,990	31,461	31,461	Sub-Subsidiary
Bluocean Inc.	Realtek Semiconductor (Malaysia)Sdn.Bhd.	Malaysia	R&D and technical support	76,576	69,989	10,450,000	100%	75,636	1,015	1,015	Sub-Subsidiary
Bluocean Inc.	Realtek Korea Inc.	South Korea	R&D and technical support	44,530	47,420	200,000	100%	71,373	13,880	13,880	Sub-Subsidiary
Realsun Investments Co., Ltd.	Realtek Bangalore Private Limited	India	R&D and technical support	-	-	1	0.00%	-	3,662) (	-	Sub-Subsidiary

Note ： The amount of foreign currencies denominated in New Taiwan dollars in this table, which relates to income and expenses which were re-translated at the average exchange rate from January 1, 2024 to December 31, 2024, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 9 Page 3

Table 10

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

For the year ended December 31, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in Capital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as at January1,2024	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2024	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2024	Accumulated amount of remittance from Taiwan to Mainland China as at December 31,2024	Net income of investee for the year ended December 31, 2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2024 (Note2)	Book value of investment in Mainland China as at December 31,2024	Accumulated amount of investment income remitted back to Taiwan as at December 31, 2024	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Cortina Network Systems (Shanghai) Co., Ltd. Realsil Microelectronics (Suzhou) Co., Ltd. Realtek Semiconductor (ShenZhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	R&D and technical support R&D and technical support R&D and technical support ICs manufacturing, design, research, development, sales, and marketing ICs manufacturing, design, research, development, sales, and marketing	118,012 $ 917,868 163,905 117,896 44,913	2 2 2 2 2	118,012 $ 917,868 163,905 117,896 44,913	$ - - - - -	$ - - - - -	118,012 $ 917,868 163,905 117,896 44,913	13,922 $ 206,444 51,865 145,800) ( 3,115) (	100% 100% 100% 100% 100%	13,922 $ 206,444 51,865 145,800) ( 3,115) (	140,689 $ 2,563,497 409,472 126,398 157,989) (	$ - - - - -

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as at December31,2024	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Cortina Network Systems (Shanghai) Co., Ltd. Realsil Microelectronics (Suzhou) Co., Ltd. Realtek Semiconductor (ShenZhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	118,012 $ 917,868 163,905 117,896 44,913	118,012 $ 917,868 163,905 117,896 44,913	$ 31,768,658

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

(3) Others.

Note 2: In the Investment income (loss) recognised by the Company for the year ended December 31, 2024 column were based on the financial audited by independent auditors of the parent company.

Note 3: The amount of foreign currencies denominated in New Taiwan dollars in this table, which relates to income and expenses which were re-translated at the average exchange rate from January 1, 2024 to December 31, 2024, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 10

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Major shareholders information

December 31, 2024

Table11

Name of major shareholders	Shares
	Name of shares held	Ownership (%)
Deposit account for Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF entrusted and kept by Taishin International Bank Co., Ltd.	27,371,000	5.33%

Table 11