RT — Audit Report / Information 2025

Nov 14, 2025

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2025 AND 2024 (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

PWCR25000250

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, 2025 and 2024, 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 material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and 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 2025 consolidated financial statements. These matters were addressed in the context 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.

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Key audit matters for the Group’s 2025 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, 2025 and 2024.

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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,

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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 26, 2026

------------------------------------------------------------------------------------------------------------------------------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, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(4) 6(5) 6(5) and 7 6(6) 6(3) 6(4) and 8 6(7) 6(8) 6(9) 6(10) 6(11) 6(28) 9	December 31, 2025 AMOUNT % $ 13,065,867 10 6,813,280 5 41,496,448 32 12,689,707 10 2,321,477 2 617,201 - 19,560,914 15 792,185 1 97,357,079 75 3,303,641 3 10,768,213 8 103,472 - 10,604,975 8 1,502,411 1 27,174 - 3,474,723 3 505,874 - 2,255,801 2 32,546,284 25 $ 129,903,363 100	December 31, 2024	December 31, 2024
		AMOUNT $ 13,065,867 6,813,280 41,496,448 12,689,707 2,321,477 617,201 19,560,914 792,185 97,357,079 3,303,641 10,768,213 103,472 10,604,975 1,502,411 27,174 3,474,723 505,874 2,255,801 32,546,284 $ 129,903,363	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	%
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 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				13 7 29 11 2 - 12 -
				74
				3 8 - 9 2 - 2 - 2
				26
				100

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes 6(12) 6(21) 7 6(13) 7 6(21) 6(16) 6(28) 6(17) 6(18) 6(19) 6(20) 9	December 31, 2025 AMOUNT % $ 10,090,000 8 691,119 1 5,000 - 11,396,095 9 337,064 - 36,512,622 28 61,021 - 3,495,384 3 99,268 - 12,068,337 9 74,755,910 58 1,334,672 1 335,248 - 1,191,144 1 74,303 - 2,935,367 2 77,691,277 60 5,155,126 4 1,623,486 1 8,882,764 7 33,732,665 26 2,808,327 2 52,202,368 40 9,718 - 52,212,086 40 $ 129,903,363 100	December 31, 2024	December 31, 2024
		AMOUNT $ 10,090,000 691,119 5,000 11,396,095 337,064 36,512,622 61,021 3,495,384 99,268 12,068,337 74,755,910 1,334,672 335,248 1,191,144 74,303 2,935,367 77,691,277 5,155,126 1,623,486 8,882,764 33,732,665 2,808,327 52,202,368 9,718 52,212,086 $ 129,903,363	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	%
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 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 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				4 - - 8 - 28 - 2 - 9
				51
				1 - 1 -
				2
				53
				5 - 8 28 6
				47
				-
				47
				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, 2025 AND 2024

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

Items

Year ended December 31 2025 2024 Notes AMOUNT % AMOUNT % 6(21) and 7 $ 122,706,372 100 $ 113,393,698 100 6(6) and 7 ( 61,332,694) ( 50) ( 56,231,862) ( 50) 61,373,678 50 57,161,836 50 6(26)(27) and 7 ( 5,983,952) ( 5) ( 4,793,105) ( 4) ( 5,875,678) ( 5) ( 5,328,736) ( 5) ( 35,124,986) ( 28) ( 33,543,624) ( 29) 12(2) ( 29,221) - 5,175 - ( 47,013,837) ( 38) ( 43,660,290) ( 38) 14,359,841 12 13,501,546 12 6(22) 2,666,145 2 2,792,033 2 6(23) 190,435 - 305,375 - 6(24) 161,013 - 71,467 - 6(25) ( 118,423) - ( 288,398) - 6(7) 1,517 - ( 40,813) - 2,900,687 2 2,839,664 2 17,260,528 14 16,341,210 14 6(28) ( 2,507,212) ( 2) ( 1,049,685) ( 1) $ 14,753,316 12 $ 15,291,525 13 6(20) 6(3) $ 74,730 - $ 229,072 - ( 2,515,370) ( 2) 3,146,510 3 ($ 2,440,640) ( 2) $ 3,375,582 3 $ 12,312,676 10 $ 18,667,107 16 $ 14,753,249 12 $ 15,291,442 13 67 - 83 - $ 14,753,316 12 $ 15,291,525 13 $ 12,312,609 10 $ 18,667,024 16 67 - 83 - $ 12,312,676 10 $ 18,667,107 16 6(29) $ 28.77 $ 29.82 6(29) $ 28.06 $ 29.32

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 (losses) gains 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 profit (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 year Other comprehensive income (losses), net Components of other comprehensive income (losses) that will not be reclassified to profit or loss 8316 Unrealised gains 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 (losses) 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, 2025 AND 2024

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

2024 Balance at January 1, 2024 Net income for the year Other comprehensive income for the year Total comprehensive income for the year 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 2025 Balance at January 1, 2025 Net income for the year Other comprehensive (losses) income for the year Total comprehensive income (losses) for the year Distribution of 2024 earnings Cash dividends Restricted stocks to employees Compensation cost of share-based payments Disposal of financial assets at fair value through other comprehensive income or losses Cash dividends returned Other changes in capital surplus Changes in non-controlling interest Balance at December 31, 2025	Notes						Equity attributable to own	Equity attributable to own	Equity attributable to own	ers of the parent co	mp	any						Non-controlling interest		Total equity
			Common shares		Capital surplus		Retained	Earnings			O	ther equityinteres	t			Total
							Legal 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		Unearned employee compensation
	6(20) 6(19) 6(18)(19) 6(18) 6(20) 6(18) 6(20) 6(19) 6(17)(18) 6(15)(20) 6(20) 6(18) 6(18)		$ 5,128,636 - - - - - - - - - $ 5,128,636 $ 5,128,636 - - - - 26,490 - - - - - $ 5,155,126	$ 542,048 - - - - ( 256,432 ) 1,315 - 351 - $ 287,282 $ 287,282 - - - - 1,335,096 - - 400 708 - $ 1,623,486			$ 8,882,764 - - - - - - - - - $ 8,882,764 $ 8,882,764 - - - - - - - - - - $ 8,882,764	$ 24,845,272 15,291,442 - 15,291,442 ( 7,692,955 ) - - ( 392,108 ) - - $ 32,051,651 $ 32,051,651 14,753,249 - 14,753,249 ( 13,078,023 ) - - 5,788 - - - $ 33,732,665		$ 1,578,157 - 3,146,510 3,146,510 - - - - - - $ 4,724,667 $ 4,724,667 - ( 2,515,370 ) ( 2,515,370 ) - - - - - - - $ 2,209,297	$ 1,251,583 - 229,072 229,072 - - - 392,108 - - $ 1,872,763 $ 1,872,763 - 74,730 74,730 - - - ( 5,788 ) - - - $ 1,941,705		$ - - - - - - - - - - $ - $ - - - - - ( 1,361,586 ) 18,911 - - - - ($ 1,342,675 )		$ 42,228,460 15,291,442 3,375,582 18,667,024 ( 7,692,955 ) ( 256,432 ) 1,315 - 351 - $ 52,947,763 $ 52,947,763 14,753,249 ( 2,440,640 ) 12,312,609 ( 13,078,023 ) - 18,911 - 400 708 - $ 52,202,368		$ 9,702 83 - 83 - - - - - ( 60 ) $ 9,725 $ 9,725 67 - 67 - - - - - - ( 74 ) $ 9,718		$ 42,238,162 15,291,525 3,375,582 18,667,107 ( 7,692,955 ) ( 256,432 ) 1,315 - 351 ( 60 ) $ 52,957,488 $ 52,957,488 14,753,316 ( 2,440,640 ) 12,312,676 ( 13,078,023 ) - 18,911 - 400 708 ( 74 ) $ 52,212,086

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, 2025 AND 2024

(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 losses (gains) Interest expense Interest income Dividend income Compensation cost of share-based payments Gains on financial assets at fair value through profit or loss Share of (profit) loss of associates and joint ventures accounted for under equity method Losses on disposal of property, plant and equipment Impairment losses on financial assets Gains arising from lease modifications Losses on disposal of investments 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 Notes payable Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Provisions - non-current Accrued pension obligations

YearendedDecember 31 Notes 2025 2024 $ 17,260,528 $ 16,341,210 6(26) 1,535,928 1,460,905 6(11)(26) 2,183,375 1,883,109 12(2) 29,221 ( 5,175 ) 6(25) 118,423 288,398 6(22) ( 2,666,145 ) ( 2,792,033 ) 6(23) ( 21,117 ) ( 18,575 ) 6(15) 18,911 - 6(2)(24) ( 146,367 ) ( 79,049 ) 6(7) ( 1,517 ) 40,813 6(24) 815 78 6(24) - 53,000 6(24) ( 4,385 ) ( 146 ) 6(24) 20,277 - 553,186 ( 1,998,912 ) ( 411,305 ) ( 1,636,134 ) 317,264 ( 548,068 ) ( 39,663 ) 10,339 ( 6,054,865 ) ( 1,749,115 ) ( 290,734 ) 65,310 277,365 77,106 5,000 - 2,140,858 2,351,228 8,693 ( 40,733 ) 4,703,786 6,649,569 ( 19,486 ) 20,214 2,176,246 1,982,664 ( 125,752 ) ( 209,601 ) ( 9,864 ) ( 2,404 )

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(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 Proceeds from capital reduction of financial assets at fair value through other comprehensive income or losses 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 Proceeds from capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Acquisition of intangible assets Decrease (increase) in refundable deposits Increase in other non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-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 Other financing activities Net cash flows used in financing activities Effect of exchange rate Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2025 2024 $ 21,558,676 $ 22,143,998 2,693,271 2,793,654 21,117 18,575 ( 117,457 ) ( 292,547 ) ( 1,140,264 ) ( 729,593 ) 23,015,343 23,934,087 - ( 4,652,794 ) 124,730 158,781 18,091 18,093 7,615 120,509 ( 66,476,831 ) ( 39,991,204 ) 54,560,155 38,762,429 - ( 28,350 ) 18,692 - 6(30) ( 2,089,496 ) ( 2,346,904 ) 6(30) ( 2,575,197 ) ( 1,647,943 ) 94,933 ( 99,791 ) ( 62,977 ) - ( 16,380,285 ) ( 9,707,174 ) 6(31) 76,660,913 88,214,680 6(31) ( 71,070,913 ) ( 87,964,680 ) 6(31) - ( 2,239,560 ) 6(31) ( 128,744 ) ( 126,960 ) 6(31) ( 179 ) ( 285 ) ( 13,078,023 ) ( 7,949,387 ) 400 351 708 - ( 7,615,838 ) ( 10,065,841 ) ( 765,812 ) 383,096 ( 1,746,592 ) 4,544,168 14,812,459 10,268,291 $ 13,065,867 $ 14,812,459

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, 2025 AND 2024

(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.

2. 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 26, 2026.

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 the FSC and became effective from 2025 are as follows:

Standards (“IFRS®”) Accounting Standards that came into effect as Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC 2025 are as follows:	endorsed by the Financia and became effective from
New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	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.

(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 2026 are as follows:

follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Specific provisions of Amendments to IFRS 9 and IFRS 7,‘Amendments to the classification and measurement of financial instruments’ Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026 January 1, 2026

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	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	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’
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

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:

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 18, ‘Presentation and disclosure in financial statements’ IFRS 19, ‘Subsidiaries without public accountability: disclosures’ Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	To be determined by International Accounting Standards Board January 1, 2027(Note) January 1, 2027 January 1, 2027

Note ： The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

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.

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.

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(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.

• (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.

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• (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, 2025	December 31, 2024
Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation 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. Hung-wei Venture Capital Co., Ltd. Realking Investments Co., Ltd. Realsun Technology Corporation	Investment holdings ICs manufacturing, design, research, development, sales, and marketing Investment holdings 〃 〃 〃 ICs manufacturing, design, research, development, sales, and marketing	100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 100% 100% 100% 100%

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Name of investor Name of subsidiary Main business activities Realtek Semiconductor Corporation Bobitag Inc. Manufacture and installation of computer equipment and wholesale, retail and related service of electronic materials and information / software Realtek Semiconductor Corporation AICONNX Technology Corporation ICs manufacturing, design, research, development, sales, and marketing Leading Enterprises Limited Realtek Semiconductor (Japan) Corp. Information collection and technical support Amber Universal Inc. Realtek Semiconductor (Hong Kong) Limited Information services and technical support Amber Universal Inc. Realtek Semiconductor (ShenZhen) Corp. R&D and technical support Empsonic Enterprises Inc. Realsil Microelectronics (Suzhou) Co.,Ltd. 〃 Talent Eagle Enterprise Inc. Ubilinx Technology Inc. 〃 Realtek Singapore Private Limited Cortina Access, Inc. 〃	December 31, 2025 December 31, 2024 Ownership(%) 67% 67% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	Description

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Name of investor Name of subsidiary Main business activities Realtek Singapore Private Limited Cortina Systems Taiwan Limited R&D and technical support Realtek Singapore Private Limited Cortina Network Systems (Shanghai) Co., Ltd. 〃 Realtek Singapore Private Limited Empsonic Enterprises Inc. Investment holdings Realtek Singapore Private Limited Realtek Viet Nam Co., Ltd. R&D and technical support Realtek Singapore Private Limited RayMX Microelectronics Corp. ICs manufacturing, design, research, development, sales, and marketing Realtek Singapore Private Limited Leading Enterprises Limited Investment holdings Realtek Singapore Private Limited Bluocean Inc. 〃 Realtek Singapore Private Limited Talent Eagle Enterprise Inc. 〃 Realtek Singapore Private Limited Realtek Germany GmbH R&D and technical support Realtek Singapore Private Limited Realtek Bangalore Private Limited 〃 Realtek Singapore Private Limited Pharrics BV 〃	December 31, 2025 December 31, 2024 Ownership(%) 100% 100% 100% 100% 100% 100% 100% 100% 19% 19% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% -	Description Note 1

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Name of investor Name of subsidiary Main business activities Realsil Microelectronics (Suzhou) Co.,Ltd. RayMX Microelectronics Corp. ICs manufacturing, design, research, development, sales, and marketing Realsil Microelectronics (Suzhou) Co.,Ltd. Suzhou PanKore Integrated Circuit Technology Co. Ltd. 〃 Realtek Semiconductor (ShenZhen) Corp. Suzhou PanKore Integrated Circuit Technology Co. Ltd. 〃 Bluocean Inc. Realtek Semiconductor (Malaysia) Sdn. Bhd. R&D and technical support Bluocean Inc. Realtek Korea Inc. 〃 Realsun Investments Co., Ltd. Realtek Bangalore Private Limited 〃	December 31, 2025 December 31, 2024 Ownership(%) 81% 81% - 80% - 20% 100% 100% 100% 100% 0% 0%	Description Note 2 Note 2

Note 1: Pharrics BV was incorporated on September 15, 2025.

Note 2: On July 21, 2025, the dissolution of Suzhou PanKore Integrated Circuit Technology Co. Ltd. has been approved by the competent authority.

• 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.

• (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.

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• 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.

• (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.

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(5) Classification of current and non-current items

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

• (a) Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

• (b) Assets that are held primarily for the purpose of trading;

• (c) Assets that are expected to be realised within twelve months after the reporting period;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

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 in the normal operating cycle;

• (b) Liabilities that are held primarily for the purpose of trading;

• (c) Liabilities that are due to be settled within twelve months after the reporting period;

• (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 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.

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• (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.

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(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.

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• 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.

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• 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.

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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 are 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.

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(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 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 initially estimated 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.

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- (25) Employee share based payment

• A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

• B. Restricted stocks to employees:

• (a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period.

• (b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognises the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

(26) 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.

• 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.

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• 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 recognised 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.

• (27) 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.

• (28) 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.

• (29) 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.

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• (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, technical services and royalty is recognized after completing the services in which the services are rendered.

• (30) 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.

(31) 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.

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.

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(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, 2025, the carrying amount of inventories was $19,560,914.

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	December 31, 2025 1,019 $ 7,459,863 5,569,731 35,254 13,065,867 $	December31,2024
		1,304 $ 10,184,803 4,605,121 21,231
		14,812,459 $

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.

(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	December31,2025 146,754 $ 6,666,526 - 6,813,280 $	December31,2024
		191,172 $ 6,880,508 449,129
		7,520,809 $

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• 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			Year ended
		December 31, 2025			December31,2024
Financial assets mandatorily measured at
fair value through profit or loss
Listed stocks	($	44,417)	($		29,848)
Beneficiary certificates		181,050			108,897
Hybrid instruments		-	(		53,000)
Structured deposits		9,734			-
	$	146,367		$	26,049

• 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 Emerging stocks Unlisted stocks	December31,2025 735,220 $ 104,076 2,464,345 3,303,641 $	December31,2024
		560,991 $ - 2,779,662
		3,340,653 $

• 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 $3,303,641 and $3,340,653 on December 31, 2025 and 2024, respectively.

• 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:

Equity instruments at fair value through other comprehensive income or loss Fair value change recognised in other comprehensive income Cumulative (gains) losses reclassified to retained earnings due to disposal (	Year ended December31,2025 74,730 $ 5,788) $	Year ended December31,2024
		229,072 $
		392,108 $

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

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(4) Financial assets at amortized cost

Financial assets at amortized cost
Items Current items: Time deposits Non-current items: Corporate bonds Time deposits	December31,2025 41,496,448 $ 9,160,343 $ 1,607,870 10,768,213 $	December31,2024
		32,766,211 $
		8,747,439 $ 320,335
		9,067,774 $

• 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
December31,2025 Accounts receivable 12,787,500 $ Accounts receivable - related parties 2,338,494 Less: Loss allowance 114,810) ( ( 15,011,184 $	December 31, 2024
	12,376,196 $ 2,655,757 85,589)
	14,946,364 $

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

Not past due Up to 30 days 31 to 90 days Over 90 days	December31,2025 14,519,327 $ 606,346 321 - 15,125,994 $	December31,2024
		14,507,289 $ 524,626 - 38
		15,031,953 $

The above aging analysis is based on past due date.

• B. As at December 31, 2025 and 2024, accounts receivable were all from contracts with customers. And as at January 1, 2024, the balance of receivables from contracts with customers amounted to $12,847,751.

• 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).

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(6) Inventories

Raw materials Work in process Finished goods Raw materials Work in process Finished goods	Allowance for obsolescence and Cost marketvalue decline 4,993,486 $ 474,873) ($ 7,898,872 852,001) ( 9,864,587 1,869,157) ( 22,756,945 $ 3,196,031) ($ 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) ($ December31,2025 December31,2024	Bookvalue 4,518,613 $ 7,046,871 7,995,430 19,560,914 $ Bookvalue 1,473,695 $ 5,344,361 6,687,993 13,506,049 $

Operating costs incurred on inventories for the years ended December 31, 2025 and 2024 were as follows:

ollows:
			Year ended			Year ended
			December31,2025			December31,2024
Cost of inventories sold and others		$	61,577,877		$	59,673,956
Gains on reversal of allowance for obsolescence
and market value decline	(		364,505)	(		3,583,414)
Losses on scrap inventories			119,322			141,320
		$	61,332,694		$	56,231,862

For the years ended December 31, 2025 and 2024, the gains were from the reversal of allowance for obsolescence and market value decline when those inventories were sold.

(7) Investments accounted for under equity method

Investments accounted for under equity method
Innorich Venture Capital Corp. Starmems Semiconductor Corp.	December31,2025 80,207 $ 23,265 103,472 $	December31,2024
		89,909 $ 30,737
		120,646 $

• A. The profit (loss) on investments accounted for under equity method amounted to $ 1,517 and ($40,813) for the years ended December 31, 2025 and 2024, respectively.

• B. For the year ended December 31, 2025, Innorich Venture Capital Corp. reduced capital and returned cash amounting to $18,692.

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(8) Property, plant and equipment

At January 1, 2025 Cost Accumulated depreciation and impairment 2025 At January 1 Additions Disposals Reclassifications Depreciation Net exchange difference At December 31 At December 31, 2025 Cost Accumulated depreciation and impairment

Construction in progress and equipment to Land Buildings Machinery Testequipment Office equipment beinspected Others Total 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 $ 489,370 $ 3,312,778 $ 572,438 $ 1,621,383 $ 252,256 $ 2,662,704 $ 699,238 $ 9,610,167 $ - 375 329,065 1,041,955 175,660 622,950 230,254 2,400,259 - - - 7) ( - - - 7) ( - 2,518,791 78,478 6,126 - 2,780,353) ( 176,958 - - 151,067) ( 189,481) ( 760,696) ( 87,019) ( - 219,179) ( 1,407,442) ( - 596) ( 39) ( 2,371 150 236) ( 348 1,998 489,370 $ 5,680,281 $ 790,461 $ 1,911,132 $ 341,047 $ 505,065 $ 887,619 $ 10,604,975 $ 489,370 $ 7,274,661 $ 1,867,000 $ 5,985,157 $ 776,818 $ 505,065 $ 1,818,245 $ 18,716,316 $ - 1,594,380) ( 1,076,539) ( 4,074,025) ( 435,771) ( - 930,626) ( 8,111,341) ( 489,370 $ 5,680,281 $ 790,461 $ 1,911,132 $ 341,047 $ 505,065 $ 887,619 $ 10,604,975 $

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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 Testequipment 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 $

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	Carrying	amount
	December31,2025 December31,2024 1,328,944 $ 1,535,285 $ 166,302 132,528 7,165 13,823 1,502,411 $ 1,681,636 $ Depreciation	December31,2024
		1,535,285 $ 132,528 13,823
		1,681,636 $
	Year ended December31,2025 32,322 $ 81,805 10,511 124,638 $	Year ended December 31, 2024
		38,953 $ 82,182 10,109
		131,244 $

• C. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $232,202 and $39,546, 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 December 31, 2025 25,711 $	Year ended December31,2024
		32,672 $

• E. For the years ended December 31, 2025 and 2024, the Group’s total cash outflow for leases were $154,455 and $159,632, respectively.

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(10) Investment property

Investment property
			Buildings
			2025			2024
At January 1
Cost		$	83,968		$	81,024
Accumulated depreciation and impairment	(		52,847)	(		47,146)
		$	31,121		$	33,878
At January 1		$	31,121		$	33,878
Depreciation	(		3,848)	(		3,963)
Net exchange difference	(		99)			1,206
At December 31		$	27,174		$	31,121
At December 31
Cost		$	84,099		$	83,968
Accumulated depreciation and impairment	(		56,925)	(		52,847)
		$	27,174		$	31,121

• A. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below:

Rental income from the lease of the investment property Operating expenses arising from the investment property that generated rental income during the year	Year ended Year ended December31,2025 December 31, 2024 2,225 $ 2,292 $ 3,848 $ 3,963 $

• 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, 2025 and 2024, the fair values were $107,099 and $156,713, respectively.

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(11) Intangible assets

(11)	Intangible assets	Intangible assets	Intangible assets	Intangible assets
(12)	Details of amortization on intangible assets are as follows: Short-term borrowings Computer Intellectual software property Goodwill Others Total At January 1, 2025 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 $ 2025 At January 1 1,337,942 $ 1,319,993 $ - $ 1,200 $ 2,659,135 $ Additions 2,479,593 514,183 - - 2,993,776 Amortisation 1,480,961) ( 702,414) ( - - 2,183,375) ( Net exchange difference 3,219 1,968 - - 5,187 At December 31 2,339,793 $ 1,133,730 $ - $ 1,200 $ 3,474,723 $ At December 31, 2025 Cost 7,208,121 $ 4,737,829 $ 639,561 $ 1,200 $ 12,586,711 $ Accumulated amortisation and impairment 4,868,328) ( 3,604,099) ( 639,561) ( - 9,111,988) ( 2,339,793 $ 1,133,730 $ - $ 1,200 $ 3,474,723 $ 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 $ Year ended Year ended December31,2025 December31,2024 Operating costs 2,107 $ 3,404 $ Operating expenses 2,181,268 1,879,705 2,183,375 $ 1,883,109 $ Type ofborrowings December31,2025 Interest raterange Collateral Bank borrowings Unsecured borrowings 10,090,000 $ 1.69%～1.95% None
			$	3,404 1,879,705
			$	1,883,109
				Collateral None
		1.69%～1.95%

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Type ofborrowings December31,2024 Bank borrowings Unsecured borrowings 4,500,000 $	Interest raterange Collateral 1.78%~1.92% None

Interest expense of bank borrowings recognized in profit or loss amounted to $92,712 and $255,726 for the years ended December 31, 2025 and 2024, respectively.

(13) Other payables

Accrued salaries and bonus Payable for employees’ compensation Other accrued expenses Payables on equipment Payables on software and intellectual property Others	December31,2025 December31,2024 17,440,727 $ 16,568,899 $ 12,370,011 9,599,999 3,655,607 2,717,382 463,956 153,193 2,437,942 2,019,363 144,379 184,349 36,512,622 $ 31,243,185 $

(14) 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	31,2025	December	31,2024
Present value of defined benefit obligations	($	679,564)	($	646,818)
Fair value of plan assets		601,000		564,301
Net defined benefit liability	($	78,564)	($	82,517)

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

2025

Present value of defined benefit obligations At January 1 646,818) ($ Current service cost 1,227) ( Interest (expense) income 10,178) ( 658,223) ( Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions 10,622) ( Experience adjustments 30,007) ( 40,629) ( Pension fund contribution - Paid pension 19,288 ( At December 31 679,564) ($ Present value of defined benefit obligations At January 1 630,660) ($ Current service cost 1,188) ( Interest (expense) income 8,134) ( 639,982) ( Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions 11,037 Experience adjustments 22,615) ( 11,578) ( Pension fund contribution - Paid pension 4,742 ( At December 31 646,818) ($

Fair value of Net defined plan assets benefit liability 564,301 $ 82,517) ($ - 1,227) ( 9,358 820) ( 573,659 84,564) ( 40,629 40,629 - 10,622) ( - 30,007) ( 40,629 - 6,000 6,000 19,288) - 601,000 $ 78,564) ($ Fair value of Net defined plan assets benefit liability 544,541 $ 86,119) ($ - 1,188) ( 6,924 1,210) ( 551,465 88,517) ( 11,578 11,578 - 11,037 - 22,615) ( 11,578 - 6,000 6,000 4,742) - 564,301 $ 82,517) ($ 2024

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• (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 December31,2025 1.30% 4.75%	Year ended December31,2024
		1.50%
		4.75%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2025 and 2024.

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

December 31, 2025 Effect on present value of defined benefit obligation December 31, 2024 Effect on present value of defined benefit obligation	Increase by Decrease by 0.25% 0.25% 13,883 $ 14,303) ($ ( 14,076 $ 14,523) ($ ( Discount rate	Future salaryincreases	Future salaryincreases
	Increase by 0.25% 13,883 $ ( 14,076 $ (	Increase by 0.25% 13,527) $ 13,765) $	Decrease by 0.25%
			13,206 $
			13,418 $

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, 2026 amount to $6,000.

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  - (g) As at December 31, 2025, the weighted average duration of the retirement plan is 9 years. The analysis of timing of the future pension payment was as follows:

     - Within 1 year $                   387,267 2-5 year(s) 171,950 5-10 years 139,060 $ 698,277

• B. (a) Effective July 1, 2005, the Company and its 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. and RayMX Microelectronics Corp. 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.

  • (c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024 were $512,761 and $462,421, respectively.

• (15) Share-based payment

• A. For the years ended December 31, 2025, the Company’s share-based payment arrangements were as follows:

as follows:
Type ofarrangement	Grantdate	Quantity granted	Contract period	Vesting conditions
Restricted stocks to employees	2025.12.16	2,649	3 years	Note

• NOTE ： The restrictions on rights and vesting conditions related to the first employee restricted stocks for the year ended December 31, 2025 are as follows:

• (1) The Company’s new ordinary shares are issued as employee restricted stocks, which are distributed without consideration.

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• (2) For the employees who are still employed by Company starting from the allocation of restricted stocks, and during the period, the employees do not violate the Company’s employment contract, working policy, non-compete clause, confidentiality agreement, or contract terms with the Company, and achieve the individual performance evaluation indicator set by the respective company and the Company’s operating goals, the vesting period is three years, and the vesting ratios on the vesting date for each year are as follows: 33% shares can be vested after one year from the vesting date, 33% shares can be vested after two years from the vesting date and 34% shares can be vested after three years from the vesting date.

• (3) Individual performance evaluation indicator: The performance rating for the most recent year at the end of the vesting period achieves A+ or above.

• (4) The Company’s operating goals: The Company uses pre-tax income margin, return on equity and ESG as performance indicators, and the respective weights and target conditions for each indicator are as follows: (a) Pre‑tax income margin (30% weight): Target is to exceed the Company’s average pre‑tax profit margin for the preceding three fiscal years. (b) Return on equity (30% weight): Target is to exceed either the Company’s average return on equity for the preceding three fiscal years, or the average return on equity of the top ten weighted constituent stocks of the selected Taiwan IC design industry representative return index. (c) ESG (40% weight): BBB or higher in the latest annual MSCI ESG Rating (Note). Targets are set for each indicator. For any indicator that meets its target, the number of vested shares for that year shall be calculated by applying the corresponding weight; for any indicator that does not meet its target, the corresponding weight shall be 0%. The year of performance indicator refers to the fiscal year of the most recent annual financial statements audited by independent auditors before the vesting date, and the performance indicators shall be calculated based on the corresponding consolidated financial statements audited by independent auditors for the required measurement period.

• (5) Before the employee achieves the vesting conditions when the restricted stocks were granted to the employees, except for inheritance, the restricted stocks granted to the employees cannot be sold, pledged, transferred, donated, collateralised, or disposed in any other method before the employee achieves the vesting conditions.

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• (6) Before the employee achieves the vesting conditions when the restricted stocks were granted to the employees, the attendance, proposal, speaking, right of voting and election, and other matters associated with shareholders’ meeting are similar with the ordinary shares that have been issued and are executed based on the trust custody contracts.

  • Note: The measurement year is the same for the MSCI ESG rating and the performance indicators of pre‑tax income margin and return on equity.

• B. Details of the quantity (share in thousands) of restricted stocks to employees are as follows:

Number of shares unvested at January 1 Granted for the year Number of shares unvested at December 31	2025 - 2,649 2,649	2024
		- -
		-

• C. Relevant information on the fair value of share-based payment transactions granted by the Company is as follows:

Type of arrangement Grant date Restricted stocks to employees 2025.12.16	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility Expected duration N/A 3 years	Expected dividends	Risk-free interest rate	Fair value per unit (in dollars)
	$ 514	$ -		N/A	N/A	$ 514

• D. Expenses incurred on share-based payment transactions are shown below:

Restricted stocks to employees	Year ended December31,2025 18,911 $	Year ended December31,2024
		- $

(16) Provision

At January 1 Increase in provision Used during the period Effect of exchange rate ( At December 31	2025 2024 1,266,560 $ 1,392,138 $ 125,752 131,124 - 340,725) ( 57,640) 84,023 1,334,672 $ 1,266,560 $

As at December 31, 2025, provisions were estimated for potential infringement litigations, please refer to Note 9.

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(17) Share capital

• A. As at December 31, 2025, 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 $5,155,126 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:

==> picture [461 x 27] intentionally omitted <==

• 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, 2025, the outstanding GDRs were 680 thousand units, equivalent to 2,718 thousand shares of common stock, representing 0.52% of the Company’s total common stocks.

• C. On May 28, 2025, the Company’s shareholders during the shareholders’ meeting resolved to issue employee restricted shares and distribute 2,700 thousand shares to employees without consideration. As at December 31, 2025, the actual number of shares issued was 2,649 thousand shares. The employee restricted shares issued are subject to certain transfer restrictions before their vesting conditions are met. Other than these restrictions, the rights and obligations of these shares issued are the same as other issued common shares. The aforementioned issuance of new shares had been approved by the competent authority and the registration for the change was completed.

(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.

~46~

Change in equity of associates accounted for under Employee Share premium equitymethod restricted stocks Others At January 1 213,534 $ 72,125 $ - $ 1,623 $ Restricted stocks to employees - - 1,335,096 - Cash dividends returned - - - 400 Other changes in capital surplus - - - 708 At December 31 213,534 $ 72,125 $ 1,335,096 $ 2,731 $ 2025 Change in equity of associates accounted for under Share premium equity method Others At January 1 469,966 $ 70,810 $ 1,272 $ $ Changes in equity of associates accounted for under equity method - 1,315 - Cash dividends from capital surplus 256,432) ( - - ( Cash dividends returned - - 351 At December 31 213,534 $ 72,125 $ 1,623 $ $ 2024	Change in equity of associates accounted for under Employee Share premium equitymethod restricted stocks Others At January 1 213,534 $ 72,125 $ - $ 1,623 $ Restricted stocks to employees - - 1,335,096 - Cash dividends returned - - - 400 Other changes in capital surplus - - - 708 At December 31 213,534 $ 72,125 $ 1,335,096 $ 2,731 $ 2025 Change in equity of associates accounted for under Share premium equity method Others At January 1 469,966 $ 70,810 $ 1,272 $ $ Changes in equity of associates accounted for under equity method - 1,315 - Cash dividends from capital surplus 256,432) ( - - ( Cash dividends returned - - 351 At December 31 213,534 $ 72,125 $ 1,623 $ $ 2024	Total
		287,282 $ 1,335,096 400 708
		1,623,486 $
		Total 542,048 1,315 256,432) 351 287,282
	$

(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.

~47~

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 current year’s total dividents distributed. In accordance with Article 240, Item 5 and Article 241, Item 2 of the Company Act, the resolution for the distribution of all or a portion of distributable dividends, legal reserve and capital surplus 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 2024 and 2023 earnings had been resolved at the shareholders’ meeting on May 28, 2025 and May 30, 2024, respectively. Details are summarized below:

Cash dividends	Dividends per share Amount (indollars) 13,078,023 $ 25.50 $ 2024	2023	2023
		Amount 7,692,955 $	Dividends per share (indollars)
			15.00 $

• 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 February 26, 2026, the Board of Directors of the Company proposed the distribution of 2025 earnings and resolved to distribute cash dividends of $12,887,816 (NT$25 per share).

~48~

(20) Other equity items

(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 or Currency Unearned losses onvaluation translationdifferences employee compensation Total At January 1 1,872,763 $ 4,724,667 $ - 6,597,430 $ Revaluation: –Group 74,730 - - 74,730 Revaluation transferred to retained earnings: –Group 5,788) ( - - 5,788) ( Currency translation differences: –Group - 2,515,370) ( - 2,515,370) ( Restricted stocks to employees - - 1,361,586) ( 1,361,586) ( Compensation cost of share-based payments - - 18,911 18,911 At December 31 1,941,705 $ 2,209,297 $ 1,342,675) ($ 2,808,327 $ 2025 Unrealised gains or Currency losses 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 Year ended Year ended December31,2025 December31,2024 Revenue from contracts with customers 122,706,372 $ 113,393,698 $		2025
				Total

following major product lines:
Year ended December 31, 2025 Revenue from external customer contracts Timing of revenue recognition At a point in time Year ended December 31, 2024 Revenue from external customer contracts Timing of revenue recognition At a point in time	Integrated circuitproducts 122,410,065 $ 122,410,065 $ Integrated circuitproducts 113,082,609 $ 113,082,609 $	Others 296,307 $ 296,307 $ Others 311,089 $ 311,089 $	Total
			122,706,372 $
			122,706,372 $
			Total
			113,393,698 $
			113,393,698 $

~49~

B. Contract liabilities

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

December 31, 2025 December 31, 2024 January 1, 2024 Contract liabilities -advance sales receipts $ 691,119 $ 413,754 $ 336,648

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

Year ended Year ended December 31, 2025 December 31, 2024 Contract liabilities – advance sales receipts $ 398,179 $ 334,458

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	December31,2025 12,067,580 $ Year ended December 31, 2025 2,666,145 $ Year ended December31,2025 21,117 $ 145,569 23,749 190,435 $	December 31, 2024
		9,891,380 $
		Year ended December31,2024
		2,792,033 $
		Year ended December31,2024
		18,575 $ 205,086 81,714
		305,375 $

(22) Interest income

(23) Other income

~50~

(24) Other gains and losses

Other gains and losses
			Year ended			Year ended
		December31,2025			December31,2024
Losses on disposal of property, plant and	($		815)	($		78)
equipment
Losses on disposal of investments	(		20,277)			-
Profit from lease modification			4,385			146
Net currency exchange gains			69,224			91,327
Gains on financial assets at fair value
through profit or loss			146,367			79,049
Impairment losses on financial assets			-	(		53,000)
Other losses	(		37,871)	(		45,977)
		$	161,013		$	71,467
Finance costs
			Year ended			Year ended
		December31,2025			December31,2024
Interest expense
Bank borrowings		$	92,712		$	255,726
Lease liabilities			25,711			32,672
		$	118,423		$	288,398
Expenses by nature
			Year ended			Year ended
		December31,2025			December 31, 2024
Employee benefit expenses		$	33,876,438		$	32,477,891
Depreciation			1,535,928			1,460,905
Amortisation			2,183,375			1,883,109
Employee benefit expenses
			Year ended			Year ended
		December31,2025			December31,2024
Wages and salaries	$		31,215,871	$		30,076,743
Compensation cost of share-based payments			18,911			-
Labor and health insurance fees			1,429,203			1,295,501
Pension costs			514,808			464,819
Other personnel expenses			697,645			640,828
Total	$		33,876,438	$		32,477,891

(25) Finance costs

(26) Expenses by nature

(27) Employee benefit expenses

~51~

• 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. For the employees’ compensation, the Company shall appropriate no less than 0.5% of the current year’s earnings for basic level employees’ compensation. If the Company has accumulated deficit, earnings should be reserved to cover losses before the appropriation of directors’ remuneration, employees’ compensation and basic level employees’ compensation.

• Aforementioned employees’ compensation (including basic level 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, 2025 and 2024, employees’ compensation were accrued at $4,339,191 and $4,497,483, respectively; directors’ remuneration were accrued at $100,000 and $100,000, respectively. The amounts were estimated as operating cost or operating expense in accordance with the Company’s Articles of Incorporation.

• On February 27, 2025, the Board of Directors resolved that the employees’ compensation amount to $4,497,483 and directors’ remuneration amount to $100,000 for 2024, both distributed in cash and agreed with those amounts recognized in the 2024 financial statements. On February 26, 2026, the Board of Directors resolved that the employees’ compensation amount to $4,339,191 and directors’ remuneration amount to $100,000 for 2025, both distributed in cash and agreed with those amounts recognized in the 2025 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.

~52~

(28) Income tax

A. Income tax expense

ome tax Income tax expense
			Year ended			Year ended
		December31,2025			December31,2024
Current income tax:
Current income tax on profit for the period		$	2,507,852		$	1,136,867
Tax on undistributed earnings			91,066			73,813
Prior year income tax overestimation	(		92,495)	(		123,126)
Total current income tax			2,506,423			1,087,554
Deferred income tax:
Origination and reversal of temporary
differences			789	(		37,869)
Income tax expense		$	2,507,212		$	1,049,685
Reconciliation between income tax expense and accounting profit
			Year ended			Year ended
		December31,2025			December 31, 2024
Income tax calculated based on income
before tax		$	4,974,938		$	3,703,347
Expenses disallowed by tax regulation and
effects from tax-exempt income	(		2,466,297)	(		2,604,349)
Prior year income tax overestimation	(		92,495)	(		123,126)
Tax on undistributed earnings			91,066			73,813
Income tax expense		$	2,507,212		$	1,049,685

B. Reconciliation between income tax expense and accounting profit

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

follows:
Deferred income tax assets: －Temporary differences: Unrealised loss on market price decline and obsolete and slow-moving inventories and others Deferred income tax liabilities: －Temporary differences: Unrealised exchange gain ( Total			2025	December31 505,874 $ 335,248) 170,626 $
	January 1 437,137 $ 265,722) 171,415 $		Recognised in profit or loss 68,737 $ 69,526) ( 789) $
		( (

~53~

2024

Deferred income tax assets: －Temporary differences: Unrealised loss on market price decline and obsolete and slow-moving inventories and others Deferred income tax liabilities: －Temporary differences: Unrealised exchange gain ( Total	January1 Recognised in profit or loss 337,312 $ 99,825 $ 203,766) 61,956) ( ( 133,546 $ 37,869 $	December31 437,137 $ 265,722)
		171,415 $

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

tax assets are as follows:
Deductible temporary differences	December31,2025 2,571,731 $	December31,2024
		2,200,780 $

• E. As at December 31, 2025, the Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority.

• F. The Group is within the scope of the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD). Under the Pillar Two legislation, the Group is liable to pay a top-up tax for the difference between its Global Anti-Base Erosion (GloBE) effective tax rate per jurisdiction and the 15% minimum rate. In accordance with the Pillar Two legislation and transitional safe harbour rules which were enacted and came into effect in 2025 at the operating jurisdictions, the current tax expense related to Pillar Two income taxes that the Group recognised for the year ended December 31, 2025 was $1,344,629.

~54~

(29) Earnings per share

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 Restricted stocks to employees Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares 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	YearendedDecember31,2025
	Weighted average number of common shares Amount after outstanding (shares tax in thousands) 14,753,249 $ 512,863 14,753,249 $ 512,863 - 2,714 - 10,123 14,753,249 $ 525,700 YearendedDecember31,2024		Earnings per share (indollars)
			28.77 $
			28.06 $
	Amount after tax 15,291,442 $ 15,291,442 $ - 15,291,442 $	Weighted average number of common shares outstanding (shares in thousands) 512,863 512,863 8,680 521,543	Earnings per share (indollars)
			29.82 $
			29.32 $

~55~

(30) Supplemental cash flow information

Investing activities with partial cash payments

								Year ended	Year ended	Year ended	Year ended	Year ended	Year ended					Year ended	Year ended	Year ended
							December31,						2025				December31,2024
Acquisition of property,	plant and equipment					$				2,400,259						$				2,168,739
Add: Opening balance of payable on equipment											153,193									331,358
Less: Ending balance of	payable on equipment				(						463,956)				(					153,193)
Cash paid during the period						$				2,089,496						$				2,346,904
								Year ended									Year ended
							December			31,			2025				December31,2024
Acquisition of intangible assets						$				2,993,776						$				1,915,951
Add: Opening balance of payable on
software and intellectual property										2,019,363										1,751,355
Less: Ending balance of	payable on
software and intellectual property					(					2,437,942)					(					2,019,363)
Cash paid during the period						$				2,575,197						$				1,647,943
Changes in liabilities from financing			activities
																		Liabilities from
		Short-term		Guarantee							Lease								financing
		borrowings		deposits						liabilities								activities-total
At January 1, 2025	$	4,500,000		$				179	$				1,475,239				$			5,975,418
Changes in cash flow from
financing activities		5,590,000		(				179)	(					128,744)						5,461,077
Interest paid			-					-	(					25,711)			(			25,711)
Interest of lease liabilities			-					-						25,711						25,711
Impact of changes in
foreign exchange			-					-	(					25,282)			(			25,282)
Changes in other non-cash
items			-					-	(					30,801)			(			30,801)
At December 31, 2025	$	10,090,000		$				-	$				1,290,412				$			11,380,412
																			Liabilities from
		Short-term		Guarantee				Lease						Long-term						financing
		borrowings		deposits				liabilities						borrowings						activities-total
At January 1, 2024	$	4,250,000	$	464		$		1,548,069				$		2,227,346				$		8,025,879
Changes in cash flow from
financing activities		250,000	(	285)	(			126,960)				(		2,239,560)				(		2,116,805)
Interest paid		-		-	(				32,672)								-	(		32,672)
Interest of lease liabilities		-		-					32,672								-			32,672
Impact of changes in
foreign exchange		-		-					17,924								-			17,924
Changes in other non-cash
items		-		-					36,206						12,214					48,420
At December 31, 2024	$	4,500,000	$	179		$		1,475,239				$					-	$		5,975,418

(31) Changes in liabilities from financing activities

~56~

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 C-Media Electronics Inc. Other related party Greatek Electronics Inc. Other related party

(3) Significant related party transactions and balances

• A. Operating revenue

Operating revenue
		Year ended			Year ended
	December31,2025			December31,2024
Sales of goods﹕
G.M.I Technology Inc.	$	17,494,586		$	14,996,561
Others		10,254	(		3,136)
	$	17,504,840		$	14,993,425

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. Purchases and processing cost

Purchases and processing cost
Greatek Electronics Inc. Others	Year ended December31,2025 1,234,398 $ 109,458 1,343,856 $	Year ended December31,2024
		1,179,948 $ 74,291
		1,254,239 $

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	December31,2025 2,320,324 $ 1,153 2,321,477 $	December31,2024
		2,636,404 $ 4,670
		2,641,074 $

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.

~57~

D. Payables to related parties

Payables to related parties
	December	31,2025	December	31,2024
Accounts payable﹕
Greatek Electronics Inc.	$	327,450	$	319,648
Others		9,614		8,723
	$	337,064	$	328,371

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 718,073 $ 60,311 $ 7,508 $ 710 $ December 31, 2025 Year ended	December 31, 2024 Year ended
	Amount 718,073 $ 7,508 $	Ending Amount balance 597,216 $ 79,744 $ 6,113 $ 763 $

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

(4) Key management compensation

days after monthly billings. Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Compensation cost of share-based payments Total	Year ended December31,2025 576,993 $ 5,981 7,924 590,898 $	Year ended December31,2024
		431,595 $ 4,373 -
		435,968 $

8. PLEDGED ASSETS

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

Pledgedasset Time deposits (shown in financial assets at amortised cost non-current) "	December31,2025 December31,2024 Purposes 62,749 $ 31,830 $ Guarantee for the importation customs duties of materials 60,712 63,941 Guarantee for leasing land in science park and office 123,461 $ 95,771 $ Bookvalue
	December31,2025 62,749 $ 60,712 123,461 $

~58~

1. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

2. (1) Contingencies

   • A. 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. On August 11, 2025, the United States District Court of Delaware entered final judgment in favor of the Company. Plaintiff appealed the case to the United States Court of Appeals for the Federal Circuit. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

   • B. In 2022, ParkerVision, Inc. brought an action for patent infringement in the 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.

   • C. 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.

   • D. In 2023, ParkerVision, Inc. brought another action for patent infringement in the 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.

   • E. In 2025, Redwood Technologies, LLC brought actions for patent infringement in the United States District Court for the Western District of Texas against the Company’s IC products. The cases are 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 latter 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.

~59~

(2) Financial instruments

A. Financial instruments by category

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 Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Guarantee deposits Other financial liabilities Lease liabilities	December31,2025 6,813,280 $ 3,303,641 $ 13,065,867 $ 52,264,661 15,011,184 617,201 2,195,948 83,154,861 $ 10,090,000 $ 5,000 11,733,159 36,573,643 - 12,067,580 70,469,382 $ 1,290,412 $	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 $
		4,500,000 $ - 9,583,608 31,323,692 179 9,891,380
		55,298,859 $
		1,475,239 $

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.

~60~

• 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.

• 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	December31,2025	December31,2025
	Foreign currency amount (In thousands) Exchangerate 756,156 $ 31.438 1,813,655 31.438 570,629 31.438 December31,2024		Book value (NTD)
			23,772,032 $ 57,017,686 17,939,435
	Foreign currency amount (In thousands) 500,009 $ 1,760,076 404,719	Exchangerate 32.781 32.781 32.781	Book value (NTD)
			16,390,795 $ 57,697,051 13,267,094

~61~

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, 2025 and 2024, amounted to $69,224 and $91,327, respectively. Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:
(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	Effect on other Effect on comprehensive Degree ofvariation profitor loss income 5% 1,188,602 $ - $ 5% - 2,850,884 5% 896,972) ( - Sensitivityanalysis YearendedDecember31,2025 Effect on other Effect on comprehensive Degree ofvariation profitor loss income 5% 819,540 $ - $ 5% - 2,884,853 5% 663,355) ( - Sensitivity analysis Year ended December 31, 2024
	Sensitivity analysis
	Effect on Degree ofvariation profitor loss 5% 819,540 $ 5% - 5% 663,355) (

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.

~62~

• 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, 2025 and 2024 would have increased/decreased by $681,328 and $752,081, 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 $330,364 and $334,065, 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 bank 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, 2025 and 2024, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars, US dollars and EUR 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, 2025 and 2024 would have decreased/increased by $18,238 and $13,722, 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, 2025 and 2024 would have increased/decreased by $107,957 and $92,870, 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.

~63~

• 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, 2025 and 2024, the provision matrix are as follows:

At December 31, 2025 Expected loss rate Total book value Loss allowance At December 31, 2024 Expected loss rate Total book value Loss allowance	Notpastdue 0%~1% 14,519,327 $ 108,742 $ Not past due 0%~1% 14,507,289 $ 80,305 $	1~90 days pastdue 0%~1% 606,667 $ 6,068 $ 1~90 days pastdue 0%~1% 524,626 $ 5,246 $	Over 90 days pastdue 100% - $ - $ Over 90 days pastdue 100% 38 $ 38 $	Total
				15,125,994 $
				114,810 $
				Total
				15,031,953 $
				85,589 $

~64~

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

			2025
			Loss allowance for
			accounts receivable
At January 1		$	85,589
Provision for impairment loss			29,221
At December 31		$	114,810
			2024
			Loss allowance for
			accountsreceivable
At January 1		$	90,764
Reversal for impairment loss	(		5,175)
At December 31		$	85,589

• 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		December 31,2025
	12 months 43,104,318 $ 9,160,343 52,264,661 $	Significant increase in Impairment credit risk ofcredit - $ - $ - - - $ - $ December31,2024 Lifetime	Total
			43,104,318 $ 9,160,343
			52,264,661 $
	12 months 33,086,546 $ 8,747,439 41,833,985 $	Significant increase in Impairment credit risk ofcredit - $ - $ - - - $ - $ Lifetime	Total
			33,086,546 $ 8,747,439
			41,833,985 $

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.

~65~

(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, 2025 Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Other financial liabilities	Less than 1 year 10,090,000 $ 5,000 11,733,159 36,573,643 122,421 12,067,580	Between 1 and 5 years - $ - - - 233,019 -	Over5 years
			- $ - - - 1,343,468 -

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	Less than 1 year 4,500,000 $ 9,583,608 31,323,692 127,398 - 9,891,380	Between 1 and 5 years - $ - - 247,538 - -	Over5 years
			- $ - - 1,602,634 179 -

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.

~66~

(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 and fair value of the assets is as follows:

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

December 31, 2025 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Listed stocks Beneficiary certificates Financial assets at fair value through other comprehensive income Listed stocks Emerging stocks Unlisted stocks Total	Level 1 146,754 $ 6,666,526 735,220 104,076 - 7,652,576 $	Level 2 - $ - - - - - $	Level 3 - $ - - - 2,464,345 2,464,345 $	Total
				146,754 $ 6,666,526 735,220 104,076 2,464,345
				10,116,921 $

~67~

==> picture [448 x 192] intentionally omitted <==

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

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

• (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 corporate 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, 2025 and 2024, there were no transfer between Level 1 and Level 2.

~68~

• E. The following chart is the movement of Level 3 for the years ended December 31, 2025 and 2024:

2024:
			2025		2024
			Non-derivative		Non-derivative
			equityinstrument		equityinstrument
At January 1		$	2,779,662		2,415,592 $
Losses recognized in profit or loss			-	(	53,000)
(Losses) gains recognized in other
comprehensive income	(		193,150)		514,183
Transfer out from Level 3	(		104,076)		-
Disposal during the year			-	(	79,020)
Proceeds from capital reduction	(		18,091)	(	18,093)
At December 31		$	2,464,345		2,779,662 $

• F. For the year ended December 31, 2024, there were no transfers into or out from Level 3. Since Embestor Technology Inc. became emerging company in July 2025, sufficient observable market information was available. Therefore, the Group transferred the fair value amount from Level 3 to Level 1 when the event occurred.

• 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.

• 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 stocks Private equity fund investment Hybrid instrument: Convertible notes	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	86,634 $ 2,377,711 -	Net asset value Net asset value Binomial model	Not applicable Not applicable Not applicable	- - -	Not applicable Not applicable Not applicable

~69~

Non-derivative equity instrument: Unlisted stocks Private equity fund investment Hybrid instrument: Convertible notes	Fair value at December 31, 2024 Valuation technique 139,553 $ Net asset value 2,640,109 Net asset value - Binomial model	Significant unobservable input Range (weighted average) Relationship of inputs to fair value Not applicable - Not applicable Not applicable - Not applicable Not applicable - Not applicable

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.

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

• D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paidin capital or more: Please refer to table 4.

• E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Significant inter-company transactions during the reporting period: Please refer to table 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 8.

• 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 6.

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.

~70~

(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.

(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, technical services and royalty.

Breakdown of the revenue from all sources are as follows:

Revenue from ICs Other income Total	Year ended December31,2025 122,410,065 $ 296,307 122,706,372 $	Year ended December31,2024
		113,082,609 $ 311,089
		113,393,698 $

(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

Taiwan Asia Others Total	Revenue Non-current assets 50,630,738 $ 13,808,281 $ 70,421,205 1,804,640 1,654,429 56,215 122,706,372 $ 15,669,136 $ YearendedDecember31,2025	YearendedDecember31,2024	YearendedDecember31,2024
	Revenue 50,630,738 $ 70,421,205 1,654,429 122,706,372 $	Revenue 44,435,413 $ 67,922,330 1,035,955 113,393,698 $	Non-current assets
			12,111,294 $ 2,241,114 66,371
			14,418,779 $

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, 2025 and 2024 is as follows:

follows:
Customer D Customer B Customer A	Revenue Segment 25,063,768 $ All group 21,635,765 " 17,494,586 " YearendedDecember31,2025	YearendedDecember31,2024
	Revenue 25,063,768 $ 21,635,765 17,494,586	Revenue 23,612,972 $ 20,320,545 14,996,561	Segment
			All group " "

~71~

~72~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

Year ended December 31, 2025

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2025 (Note 3)	Balance at December 31, 2025	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	Colla	teral	Limit on loans granted to a single party	Ceiling on total loans granted (Note 2) Footnote	Ceiling on total loans granted (Note 2) Footnote
													Item	Value
0	Realtek Semiconductor Corporation	Bluocean Inc.	Other receivables-related parties	Y	3,143,800 $	- $	- $	-	Short-term financing	- $	Operations	- $	None	- $	5,220,237 $	20,880,948 $	None
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	Other receivables-related parties	Y	62,876	62,876	-	-	Short-term financing	-	Operations	-	None	-	5,220,237	20,880,948	None
0	Realtek Semiconductor Corporation	Leading Enterprises Limited	Other receivables-related parties	Y	3,143,800	-	-	-	Short-term financing	-	Operations	-	None	-	5,220,237	20,880,948	None
1	Leading Enterprises Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	1,886,280	-	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
2	Amber Universal Inc.	Blueocean Inc.	Other receivables-related parties	Y	1,571,900	-	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
2	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	3,143,800	3,143,800	47,157	4.20	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
3	Cortina Access, Inc.	Leading Enterprises Limited	Other receivables-related parties	Y	2,074,908	2,074,908	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
4	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Other receivables-related parties	Y	62,876	62,876	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
4	Realtek Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	Y	3,143,800	3,143,800	3,143,800	4.20	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None

Table 1 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

Year ended December 31, 2025

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2025 (Note 3)	Balance at December 31, 2025	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	Colla	teral	Limit on loans granted to a single party	Ceiling on total loans granted (Note 2) Footnote	Ceiling on total loans granted (Note 2) Footnote
													Item	Value
4	Realtek Singapore Private Limited	Bluocean Inc.	Other receivables-related parties	Y	3,143,800 $	- $	- $	-	Short-term financing	- $	Operations	- $	None	- $	20,880,948 $	20,880,948 $	None
4	Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	3,143,800	-	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
4	Realtek Singapore Private Limited	Amber Universal Inc.	Other receivables-related parties	Y	3,143,800	3,143,800	1,779,391	4.20	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
4	Realtek Singapore Private Limited	Pharrics BV	Other receivables-related parties	Y	368,988	368,988	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
5	Realsil Microelectronics (Suzhou) Co., Ltd.	RayMX Microelectronics Corp.	Other receivables-related parties	Y	359,857	359,857	143,943	3.00	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
5	Realsil Microelectronics (Suzhou) Co., Ltd.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	359,857	-	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	None
6	Cortina Network Systems (Shanghai) Co., Ltd.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	134,946	-	-	-	Short-term financing	-	Operations	-	None	-	20,880,948	20,880,948	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.

Table 1 Page 2

Table 2

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Provision of endorsements and guarantees to others

Year ended December 31, 2025

Expressed in thousands of NTD (Except as otherwise indicated)

													(Except as otherwise indicated)	(Except as otherwise indicated)
Number (Note 1) Endorser/ guarantor		Party being endorsed/guaranteed		Limited on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ amount as at December 31, 2025 (Note 4)	Outstanding endorsement/ guarantee amount at December 31, 2025 (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	RayMX Microelectronics Corp.	2	26,101,184 $	758,238 $	758,238 $	- $	- $	1.45%	26,101,184 $	Y	N	Y
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	2	26,101,184	314,380	314,380	-	-	0.60%	26,101,184	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

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2025

Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account		As at Decembe	r 31, 2025	r 31, 2025	Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%) Fair value
Realtek Semiconductor Corporation	C-media Electronics Inc. - Common stock	Other related parties	Financial assets at fair value through profit or loss	1,278,501	$ 52,802	1.61%	$ 52,802
Realtek Semiconductor Corporation	Yuanta U.S. Treasury 20+ Year Bond ETF	None	Financial assets at fair value through profit or loss	8,417,000	229,279	-	229,279
Realtek Semiconductor Corporation	Cathay U.S. Treasury 20+ Year Bond ETF	None	Financial assets at fair value through profit or loss	4,503,000	127,435	-	127,435
Realtek Semiconductor Corporation	Yuanta US 20+ Year AAA-A Corporate Bond ETF	None	Financial assets at fair value through profit or loss	3,630,000	116,704	-	116,704
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	62,876	8.00%	62,876
Realtek Semiconductor Corporation	Golden Smart Home Technology Corp.- Common stock	None	Financial assets at fair value through other comprehensive income	1,190,000	4,895	1.92%	4,895
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	73,824	5.20%	73,824
Realsun Investments Co., Ltd.	Shieh-Yong Investment Co., Ltd. - Common stock	None	Financial assets at fair value through other comprehensive income	61,395,441	632,548	3.03%	632,548
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	73,824	5.20%	73,824
Leading Enterprises Limited	Starix Technology, Inc.-Preferred stock	None	Financial assets at fair value through other comprehensive income	5,000,000	18,863	-	18,863
Leading Enterprises Limited	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	9,000,000	1,144,216	12.49%	1,144,216
Leading Enterprises Limited	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	4,379,098	-	4,379,098
Leading Enterprises Limited	Qualcomm Inc. - Corporate bond	None	Financial assets at amortized cost	-	540,337	-	540,337
Leading Enterprises Limited	Microsoft Corp. - Corporate bond	None	Financial assets at amortized cost	-	306,017	-	306,017
Leading Enterprises Limited	Pictet Short Term Monetary Fund	None	Financial assets at fair value through profit or loss	600,928	3,264,127	-	3,264,127
Amber Universal Inc.	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	4,726,836	600,947	6.56%	600,947
Hung-wei Venture Capital Co., Ltd.	United Microelectronics Corporation - Common stock	None	Financial assets at fair value through other comprehensive income	336,346	16,565	-	16,565
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	93,952	2.86%	93,952

Table 3 Page 1

Table 3

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2025

(Except as otherwise indicated)

Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account		As at Decembe	r 31, 2025	r 31, 2025	Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%) Fair value
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	$ 518,300	1.02%	$ 518,300
Hung-wei Venture Capital Co., Ltd.	Unimicron Technology Corp. - Common stock	None	Financial assets at fair value through other comprehensive income	239,578	52,707	0.02%	52,707
Hung-wei Venture Capital Co., Ltd.	Embestor Technology Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	2,879,000	104,076	8.61%	104,076
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	-	2,570,065	-	2,570,065
Blueocean Inc.	JPMorgan Liquidity Funds	None	Financial assets at fair value through profit or loss	21,065,734	662,265	-	662,265
Realtek Singapore Private Limited	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	440,906	-	440,906
Talent Eagle Enterprise Inc.	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	579,934	-	579,934
Talent Eagle Enterprise Inc.	Microsoft Corp. - Corporate bond	None	Financial assets at amortized cost	-	293,986	-	293,986
Realsil Microelectronics (Suzhou) Co., Ltd.	WAN JIA Monetary Fund	None	Financial assets at fair value through profit or loss	10,218,651	45,966	-	45,966
Realsil Microelectronics (Suzhou) Co., Ltd.	ICBC RU-YI Monetary Fund	None	Financial assets at fair value through profit or loss	40,138,905	180,553	-	180,553
Realsil Microelectronics (Suzhou) Co., Ltd.	Guang-Fa Monetary Fund	None	Financial assets at fair value through profit or loss	41,221,927	185,425	-	185,425
Realsil Microelectronics (Suzhou) Co., Ltd.	Soochow Monetary Fund	None	Financial assets at fair value through profit or loss	20,273,031	91,192	-	91,192
Realsil Microelectronics (Suzhou) Co., Ltd.	Sws Mu Shouyibao Monetary Fund	None	Financial assets at fair value through profit or loss	15,180,820	68,287	-	68,287
Realsil Microelectronics (Suzhou) Co., Ltd.	Great Wall Gongzibao Monetary Fund	None	Financial assets at fair value through profit or loss	8,177,603	36,785	-	36,785
Realsil Microelectronics (Suzhou) Co., Ltd.	CJHX Monetary Fund	None	Financial assets at fair value through profit or loss	40,123,338	180,483	-	180,483
Realsil Microelectronics (Suzhou) Co., Ltd.	Huaan Cash Plus Monetary Fund	None	Financial assets at fair value through profit or loss	30,062,468	135,227	-	135,227
Realsil Microelectronics (Suzhou) Co., Ltd.	E Fund LongBao Monetary Fund	None	Financial assets at fair value through profit or loss	10,019,907	45,072	-	45,072
Realsil Microelectronics (Suzhou) Co., Ltd.	Ccb TianTianYi Monetary Fund	None	Financial assets at fair value through profit or loss	10,025,229	45,096	-	45,096
Realsil Microelectronics (Suzhou) Co., Ltd.	Ccb Cash Increment Monetary Fund	None	Financial assets at fair value through profit or loss	40,092,357	180,344	-	180,344

Table 3 Page 2

Table 3

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

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

December 31, 2025

(Except as otherwise indicated)

Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account		As at Decembe	r 31, 2025	r 31, 2025	Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%) Fair value
Realsil Microelectronics (Suzhou) Co., Ltd.	Ccb Monetary Fund	None	Financial assets at fair value through profit or loss	28,168,361	$ 126,707	-	$ 126,707
Realsil Microelectronics (Suzhou) Co., Ltd.	First-trust TianTianShouYi Monetary Fund	None	Financial assets at fair value through profit or loss	11,430,480	51,417	-	51,417
Realsil Microelectronics (Suzhou) Co., Ltd.	WFC AnYi Monetary Fund	None	Financial assets at fair value through profit or loss	19,354,317	87,060	-	87,060
Realsil Microelectronics (Suzhou) Co., Ltd.	Penghua TianLiBao Monetary Fund	None	Financial assets at fair value through profit or loss	40,118,829	180,463	-	180,463
Realtek Semiconductor (ShenZhen) Corp.	Ping An RiXin Monetary Fund	None	Financial assets at fair value through profit or loss	3,700,155	16,644	-	16,644
Realtek Semiconductor (ShenZhen) Corp.	Ping An Caifubao Monetary Fund	None	Financial assets at fair value through profit or loss	19,051,159	85,696	-	85,696
Realtek Semiconductor (ShenZhen) Corp.	Bosera Cash Monetary Fund	None	Financial assets at fair value through profit or loss	3,000,252	13,496	-	13,496
Realtek Semiconductor (ShenZhen) Corp.	Ping An Wealth TianTianChengChang No. 3Financial Instruments	None	Financial assets at fair value through profit or loss	33,475,805	150,581	-	150,581
Realtek Semiconductor (ShenZhen) Corp.	Bank of Communications Wealth WenXiangLingDongHuiLi Financial Instruments	None	Financial assets at fair value through profit or loss	15,000,000	67,743	-	67,743
Realtek Semiconductor (ShenZhen) Corp.	Everbright Wealth AnXin Plan Financial Instruments	None	Financial assets at fair value through profit or loss	15,000,000	67,716	-	67,716
Realtek Semiconductor (ShenZhen) Corp.	ABC Wealth ABC AnXin Financial Instruments	None	Financial assets at fair value through profit or loss	30,000,000	135,290	-	135,290
Realtek Semiconductor (ShenZhen) Corp.	CMB Wealth ZhaoRuiHeDing Financial Instruments	None	Financial assets at fair value through profit or loss	6,500,000	29,244	-	29,244
Cortina Network Systems (Shanghai) Co., Ltd.	Cuam Monetary Fund	None	Financial assets at fair value through profit or loss	6,377,761	28,689	-	28,689
Cortina Network Systems (Shanghai) Co., Ltd.	JIA SHI Monetary Fund	None	Financial assets at fair value through profit or loss	5,270,113	23,706	-	23,706
Realtek Korea Inc.	Woori Great Satisfaction New MMF No.3 Class C	None	Financial assets at fair value through profit or loss	358,646,554	7,834	-	7,834

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 3

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

Year ended December 31, 2025

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchase/seller	Counterparty	Relationship with the counterparty		Trans	action		Differences in t compared t transa	ransaction terms o third party ctions	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)	12,277,266) ($	10%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	1,679,729 $	11%
RayMX Microelectronics Corp.	G.M.I Technology Inc.	Other related parties	(Sales)	182,303) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	49,623	0%
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	(Sales)	5,034,983) (	4%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	590,972	4%
Realtek Semiconductor Corporation	Greatek Electronics Inc.	Other related parties	Purchase	877,132	1%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	224,988) (	2%
Realtek Singapore Private Limited	Greatek Electronics Inc.	Other related parties	Purchase	349,491	2%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	102,397) (	1%

Table 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

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

December 31, 2025

Table 5 Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2025	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	1,679,729 $	7.85	- $	-	883,902 $	16,967 $
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	590,972	5.80	-	-	287,949	-

Table 5

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Significant inter-company transactions during the reporting period Year ended December 31, 2025

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

		Transaction	Transaction	Transaction	Transaction	Transaction	Transaction
Number (Note 1)	Companyname	General ledger account Amount Transaction terms Percentage of consolidated total operating revenues or total assets(Note 3) Counterparty Relationship (Note 2)
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	1	Other receivables	$ 51,147	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%
0	Realtek Semiconductor Corporation	Realtek Korea Inc.	1	Technical development expense	193,977	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	31,773	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.02%
0	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	1	Technical development expense	766,471	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.62%
0	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	1	Other payables	171,407	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.13%
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	1	Other revenue	46,900	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	1	Other receivables	10,492	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	3,581,595	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	2.92%
1	Realtek Singapore Private Limited	Realsil Microelectronics (Suzhou) Co., Ltd.	3	Prepaid account	166,621	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.13%
1	Realtek Singapore Private Limited	Realtek Semiconductor(ShenZhen) Corp.	3	Technical development expense	686,732	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.56%
1	Realtek Singapore Private Limited	Realtek Semiconductor(ShenZhen) Corp.	3	Prepaid account	12,575	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	Cortina Access, Inc.	3	Technical development expense	234,023	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.19%
1	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co., Ltd.	3	Technical development expense	174,411	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.14%
1	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co., Ltd.	3	Other payables	39,648	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.03%
1	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	3	Technical development expense	198,560	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	Cortina Systems Taiwan Limited	3	Other payables	12,815	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	Realtek Semiconductor (Japan) Corp.	3	Technical development expense	79,574	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.06%

Table 6 Page 1

Significant inter-company transactions during the reporting period Year ended December 31, 2025

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

				REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Significant inter-company transactions during the reporting period Year ended December 31, 2025	REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Significant inter-company transactions during the reporting period Year ended December 31, 2025	REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Significant inter-company transactions during the reporting period Year ended December 31, 2025	REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Significant inter-company transactions during the reporting period Year ended December 31, 2025
Number (Note 1) Table 6	Companyname	Counterparty Relationship (Note 2)		Transaction (Except as otherwise indicated) Expressed in thousands of NTD
				General ledger account Amount Transaction terms Percentage of consolidated total operating revenues or total assets(Note 3)
1	Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	3	Technical development expense	$ 68,724	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	23,407	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	Realtek Bangalore Private Limited	3	Technical development expense	13,277	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	RayMX Microelectronics Corp.	3	Other receivables	51,147	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%

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 6 Page 2

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

Year ended December 31, 2025

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Initial investment amount Shares held as at December 31, 2025

Investor	Investee	Location	Main business activities	Balance as at December 31,2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
Realtek Semiconductor Corporation	Amber Universal Inc.	British Virgin Islands	Investment holdings	$ 1,805,026	$ 1,882,151	41,432	100%	$ 862,897	60,704 $	60,704 $	Subsidiary
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Singapore	ICs manufacturing, design, research, development, sales, and marketing	4,460,583	4,651,135	116,059,638	100%	56,112,494	11,058,214	11,055,950	Subsidiary
Realtek Semiconductor Corporation	Realsun Investments Co., Ltd.	Taiwan	Investment holdings	280,000	280,000	28,000,000	100%	776,029	3,021) (	3,021) (	Subsidiary
Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Taiwan	Investment holdings	250,000	250,000	25,000,000	100%	828,619	1,201) (	1,201) (	Subsidiary
Realtek Semiconductor Corporation	Realking Investments Co., Ltd.	Taiwan	Investment holdings	293,930	293,930	29,392,985	100%	194,440	6,953	6,953	Subsidiary
Realtek Semiconductor Corporation	Realsun Technology Corporatioin	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	5,000	5,000	500,000	100%	4,908	28) (	28) (	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%	19,435	201	134	Subsidiary
Realtek Semiconductor Corporation	AICONNX Technology Corporation	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	20,000	20,000	2,000,000	100%	26,535	36,454	50,240	Subsidiary
Realtek Semiconductor Corporation	Wise Elite Global Limited	British Virgin Islands	Investment holdings	31,438	32,781	1,000	100%	35,577	1,361	1,361	Subsidiary

Table 7 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees Year ended December 31, 2025

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares hel	d as at Decembe	r 31,2025	Net profit (loss) of the investee for the year ended December 31,2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31,2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Realking Investments Co., Ltd.	Innorich Venture Capital Corp.	Taiwan	Venture capital activities	$ 181,308	$ 200,000	12,523,364	37.38%	$ 80,207	22,730 $	8,989 $	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	23,860	2,386,000	14.04%	7,568	18,031) (	2,431) (	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	37,490	3,749,000	22.05%	11,891	18,031) (	3,819) (	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%	3,806	18,031) (	1,222) (	Investments accounted for under equity method
Leading Enterprises Limited	Realtek Semiconductor (Japan) Corp.	Japan	Information collection and technical support	4,016	4,197	400	100%	4,387	2,325	2,325	Sub-Subsidiary
Amber Universal Inc.	Realtek Semiconductor (Hong Kong)Limited	Hong Kong	Information services and technical support	6,058	6,334	-	100%	1,093	12) (	12) (	Sub-Subsidiary
Realtek Singapore Private Limited	Empsonic Enterprises Inc.	Mauritius	Investment holdings	888,124	926,063	2,825,000	100%	2,951,898	365,845	365,845	Sub-Subsidiary
Realtek Singapore Private Limited	Cortina Access, Inc.	U.S.A	R&D and technical support	1,284,117	1,338,973	16,892	100%	1,110,274	56,811	56,811	Sub-Subsidiary

Table 7 Page 2

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

Year ended December 31, 2025

Initial investment amount Shares held as at December 31, 2025

Investor	Investee	Location	Main business activities	Balance as at December 31,2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	Taiwan	R&D and technical support	$ 62,876	$ 65,562	21,130,000	100%	$ 108,636	$ 2,468	$ 2,468	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	Vietnam	R&D and technical support	125,752	131,124	4,000,000	100%	92,118	4,288	4,288	Sub-Subsidiary
Realtek Singapore Private Limited	Leading Enterprises Limited	British Virgin Islands	Investment holdings	15,528,171	16,191,519	34,630	100%	16,565,854	584,274	584,274	Sub-Subsidiary
Realtek Singapore Private Limited	Bluocean Inc.	Cayman Islands	Investment holdings	3,459,752	3,607,549	110,050,000	100%	3,940,249	145,276	145,276	Sub-Subsidiary
Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Cayman Islands	Investment holdings	3,587,076	3,740,312	114,100,000	100%	2,874,480	146,337	146,337	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Germany GmbH.	Germany	R&D and technical support	18,449	17,066	500,000	100%	19,111	186	186	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Bangalore Private Limited	India	R&D and technical support	4,547	4,980	1,299,999	100%	2,514	1,331	1,331	Sub-Subsidiary
Realtek Singapore Private Limited	Pharrics BV	Belguium	R&D and technical support	221,393	-	6,000,000	100%	182,937	36,737) (	36,737) (	Sub-Subsidiary
Talent Eagle Enterprise Inc.	Ubilinx Technology Inc.	U.S.A	R&D and technical support	1,886,280	1,966,860	60,000,000	100%	440,930	44,696	44,696	Sub-Subsidiary
Bluocean Inc.	Realtek Semiconductor (Malaysia)Sdn.Bhd.	Malaysia	R&D and technical support	80,938	76,576	10,450,000	100%	75,761	3,931) (	3,931) (	Sub-Subsidiary
Bluocean Inc.	Realtek Korea Inc.	South Korea	R&D and technical support	43,680	44,530	200,000	100%	83,256	10,899	10,899	Sub-Subsidiary
Realsun Investments Co., Ltd.	Realtek Bangalore Private Limited	India	R&D and technical support	-	-	1	0.00%	-	1,331	-	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, 2025 to December 31, 2025, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 7 Page 3

Table 8

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

Year ended December 31, 2025

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in Capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as at January1,2025	Amount re Taiwan to China/Amo back to Ta year ended D 20	mitted from Mainland unt remitted iwan for the ecember 31, 25	Accumulated amount of remittance from Taiwan to Mainland China as at December 31,2025	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 2)	Book value of investment in Mainland China as at December 31,2025	Accumulated amount of investment income remitted back to Taiwan as at December 31, 2025	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	113,177 $ 880,264 157,190 118,078 44,982	2 2 2 2 2	113,177 $ 880,264 157,190 118,078 44,982	$ - - - - -	$ - - - - -	113,177 $ 880,264 157,190 118,078 44,982	12,008 $ 366,124 88,595 45,609 152,431	100% 100% 100% 100% 100%	12,008 $ 366,124 88,595 45,609 152,431	156,226 $ 2,947,508 502,070 173,938 -	$ - - - - -	Note 4

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as at December31,2025	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., Realsil Microelectronics (Suzhou) Co., Ltd. Realtek Semiconductor (ShenZhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	113,177 $ 880,264 157,190 118,078 44,982	113,177 $ 880,264 157,190 118,078 44,982	$ 31,321,421

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.

Note 2: In the Investment income (loss) recognised by the Company for the year ended December 31, 2025 column were based on the financial statements 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, 2025 to December 31, 2025, others were re-translated

at the exchange rate prevailing at the end of the financial reporting period.

Note 4:On July 21, 2025, the dissolution of Suzhou PanKore Integrated Circuit Technology Co. Ltd. has been approved by the competent authority.

Table 8