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REALTEK SEMICONDUCTOR CORPORATION
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REVIEW REPORT
MARCH 31, 2026 AND 2025
(Stock code: 2379)

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.

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE
PWCR26000004

To the Board of Directors and Shareholders of Realtek Semiconductor Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Realtek Semiconductor Corporation and subsidiaries as at March 31, 2026 and 2025, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

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

Basis for qualified conclusion

As explained in Notes 4(3) and 6(7), the consolidated financial statements of certain insignificant consolidated subsidiaries, investments accounted for under equity method and the information disclosed in Note 13 were based solely on the reports prepared by those subsidiaries and investee companies, which were not reviewed by independent auditors. Total assets of these subsidiaries amounted to NT$9,732,372 thousand and NT$8,358,780 thousand, constituting 6.80% and 6.55% of the consolidated total assets as at March 31, 2026 and 2025, respectively, total liabilities amounted to NT$1,387,994 thousand and NT$1,537,137 thousand, constituting 1.42% and 1.87% of the consolidated total liabilities

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as at March 31, 2026 and 2025, respectively, and the total comprehensive income (loss) amounted to NT$450,922 thousand and (NT$11,979) thousand, constituting 7.96% and (0.22%) of the consolidated total comprehensive income for the three-month periods then ended, respectively. Furthermore, the investments accounted for under equity method as at March 31, 2026 and 2025 amounted to NT$100,002 thousand and NT$122,193 thousand, respectively, and the related investment (loss) income amounted to (NT$3,470) thousand and NT$1,547 thousand for the three-month periods then ended, respectively.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under equity method been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Realtek Semiconductor Corporation and subsidiaries as at March 31, 2026 and 2025, and of its consolidated financial performance and cash flows for the three-month periods then ended in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission.

Li, Tien-Yi

Hsieh, Chih-Cheng

For and on behalf PricewaterhouseCoopers, Taiwan

April 30, 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.

(Expressed in thousands of New Taiwan dollars)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2026, DECEMBER 31, 2025 AND MARCH 31, 2025

	Assets	Notes	March 31, 2026		December 31, 2025		March 31, 2025
			AMOUNT	%	AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 10,988,581	8	$ 13,065,867	10	$ 10,568,080	8
1110	Financial assets at fair value through profit or loss - current	6(2)	5,764,201	4	6,813,280	5	6,905,333	5
1136	Financial assets at amortized cost - current	6(4)	47,968,042	34	41,496,448	32	42,369,021	33
1170	Accounts receivable, net	6(5)	17,848,092	13	12,689,707	10	16,119,883	13
1180	Accounts receivable, net - related parties	6(5) and 7	3,273,868	2	2,321,477	2	3,956,458	3
1200	Other receivables		538,455	-	617,201	-	677,132	1
130X	Inventories, net	6(6)	21,686,206	15	19,560,914	15	15,149,433	12
1410	Prepayments		432,398	-	792,185	1	507,636	-
11XX	Total current assets		108,499,843	76	97,357,079	75	96,252,976	75
Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current	6(3)	3,669,279	3	3,303,641	3	3,339,920	3
1535	Financial assets at amortized cost - non-current	6(4) and 8	10,707,090	7	10,768,213	8	9,919,379	8
1550	Investments accounted for under equity method	6(7)	100,002	-	103,472	-	122,193	-
1600	Property, plant and equipment	6(8)	11,094,537	8	10,604,975	8	9,515,432	8
1755	Right-of-use assets	6(9)	1,719,458	1	1,502,411	1	1,632,599	1
1760	Investment property	6(10)	26,939	-	27,174	-	30,691	-
1780	Intangible assets	6(11)	4,443,923	3	3,474,723	3	4,070,049	3
1840	Deferred income tax assets		556,811	-	505,874	-	519,636	-
1900	Other non-current assets	9	2,258,430	2	2,255,801	2	2,305,133	2
15XX	Total non-current assets		34,576,469	24	32,546,284	25	31,455,032	25
1XXX	Total assets		$ 143,076,312	100	$ 129,903,363	100	$ 127,708,008	100

(Continued)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2026, DECEMBER 31, 2025 AND MARCH 31, 2025
(Expressed in thousands of New Taiwan dollars)

	Liabilities and Equity	Notes	March 31, 2026		December 31, 2025		March 31, 2025
			AMOUNT	%	AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(12)	$ 9,771,140	7	$ 10,090,000	8	$ 3,879,714	3
2130	Contract liabilities - current	6(21)	356,665	-	691,119	1	324,901	-
2150	Notes payable		4,000	-	5,000	-	-	-
2170	Accounts payable		15,553,098	11	11,396,095	9	12,797,510	10
2180	Accounts payable - related parties	7
2200	Other payables	6(13)	367,211	-	337,064	-	367,050	-
2220	Other payables - related parties	7	51,299,781	36	36,512,622	28	47,761,539	38
2230	Current income tax liabilities		115,627	-	61,021	-	125,460	-
2280	Lease liabilities - current		4,050,541	3	3,495,384	3	2,853,676	2
2300	Other current liabilities	6(21)	95,421	-	99,268	-	110,453	-
23XX	Total current liabilities		12,993,253	9	12,068,337	9	11,065,300	9
Non-current liabilities
2550	Provisions - non-current	6(16)	1,385,404	1	1,334,672	1	1,314,471	1
2570	Deferred income tax liabilities		384,836	-	335,248	-	346,232	-
2580	Lease liabilities - non-current		1,413,228	1	1,191,144	1	1,311,899	1
2600	Other non-current liabilities		75,045	-	74,303	-	75,600	-
25XX	Total non-current liabilities		3,258,513	2	2,935,367	2	3,048,202	2
2XXXXX	Total liabilities		97,865,250	68	77,691,277	60	82,333,805	64
Equity
	Share capital	6(17)
3110	Common shares		5,155,126	4	5,155,126	4	5,128,636	4
	Capital surplus	6(18)
3200	Capital surplus		1,623,833	1	1,623,486	1	287,282	-
	Retained earnings	6(19)
3310	Legal reserve		8,882,764	6	8,882,764	7	8,882,764	7
3350	Undistributed earnings		25,174,510	18	33,732,665	26	23,735,183	19
	Other equity interest	6(20)
3400	Other equity interest		4,365,077	3	2,808,327	2	7,330,633	6
31XX	Equity attributable to holders of the parent company		45,201,310	32	52,202,368	40	45,364,498	36
36XX	Non-controlling interest		9,752	-	9,718	-	9,705	-
3XXX	Total equity		45,211,062	32	52,212,086	40	45,374,203	36
	Significant contingent liabilities and unrecognized contract commitments	9
3X2X	Total liabilities and equity		$ 143,076,312	100	$ 129,903,363	100	$ 127,708,008	100

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

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

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

	Items	Notes	Three-month periods ended March 31
			2026		2025
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(21) and 7	$ 36,422,566	100	$ 35,022,396	100
5000	Operating costs	6(6) and 7	( 18,335,585)	( 50)	( 16,965,408)	( 48)
5950	Gross profit		18,086,981	50	18,056,988	52
	Operating expenses	6(26)(27) and 7
6100	Selling expenses		( 1,828,783)	( 5)	( 1,708,525)	( 5)
6200	General and administrative expenses		( 1,919,937)	( 5)	( 1,665,121)	( 5)
6300	Research and development expenses		( 9,971,316)	( 28)	( 9,732,412)	( 28)
6450	Expected credit losses	12(2)	( 35,257)	-	( 47,291)	-
6000	Total operating expenses		( 13,755,293)	( 38)	( 13,153,349)	( 38)
6900	Operating income		4,331,688	12	4,903,639	14
	Non-operating income and expenses
7100	Interest income	6(22)	640,801	2	662,911	2
7010	Other income	6(23)	15,234	-	15,726	-
7020	Other gains and losses	6(24)	60,274	-	50,230	-
7050	Finance costs	6(25)	( 67,202)	-	( 28,837)	-
7060	Share of (loss) profit of associates and joint ventures accounted for under equity method	6(7)
			( 3,470)	-	1,547	-
7000	Total non-operating income and expenses		645,637	2	701,577	2
7900	Profit before income tax, net		4,977,325	14	5,605,216	16
7950	Income tax expense	6(28)	( 647,630)	( 2)	( 843,681)	( 2)
8200	Net income for the period		$ 4,329,695	12	$ 4,761,535	14
	Other comprehensive income (losses), net	6(20)
	Components of other comprehensive income (losses) that will not be reclassified to profit or loss
8316	Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	6(3)
	Components of other comprehensive income (losses) that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		998,372	3	759,095	2
8300	Other comprehensive income, net		$ 1,332,971	4	$ 733,203	2
8500	Total comprehensive income for the period		$ 5,662,666	16	$ 5,494,738	16
	Net income (loss) attributable to:
8610	Equity holders of the parent company		$ 4,329,661	12	$ 4,761,555	14
8620	Non-controlling interest		34	-	( 20)	-
	Net income for the period		$ 4,329,695	12	$ 4,761,535	14
	Comprehensive income (loss) attributable to:
8710	Equity holders of the parent company		$ 5,662,632	16	$ 5,494,758	16
8720	Non-controlling interest		34	-	( 20)	-
	Total comprehensive income for the period		$ 5,662,666	16	$ 5,494,738	16
	Earnings per share (in dollars)
9750	Basic earnings per share	6(29)	$	8.44	$	9.28
9850	Diluted earnings per share	6(29)	$	8.30	$	9.14

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

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

(Expressed in thousands of New Taiwan dollars)

	Equity attributable to owners of the parent company
		Retained earnings			Other equity interest			Non-controlling interest
		Commons shares	Capital surplus	Legal reserve	Undistributed earnings	Financial statements translation differences of foreign operations	Unrealized (losses) income from financial assets measured at fair value through other comprehensive income	Unearned employee compensation	Total	Total equity
Three-month period ended March 31, 2025
Balance at January 1, 2025		$ 5,128,636	$ 287,282	$ 8,882,764	$ 32,051,651	$ 4,724,667	$ 1,872,763	$ -	$ 52,947,763	$ 9,725
Net income (losses) for the period		-	-	-	4,761,555	-	-	-	4,761,555	(20)
Other comprehensive income (losses) for the period	6(20)	-	-	-	-	759,095	(25,892)	-	733,203	-
Total comprehensive income (losses) for the period		-	-	-	4,761,555	759,095	(25,892)	-	5,494,758	(20)
Distribution of 2024 earnings
Cash dividends	6(19)	-	-	-	(13,078,023)	-	-	-	(13,078,023)	-
Balance at March 31, 2025		$ 5,128,636	$ 287,282	$ 8,882,764	$ 23,735,183	$ 5,483,762	$ 1,846,871	$ -	$ 45,364,498	$ 9,705
Three-month period ended March 31, 2026
Balance at January 1, 2026		$ 5,155,126	$ 1,623,486	$ 8,882,764	$ 33,732,665	$ 2,209,297	$ 1,941,705	($ 1,342,675)	$ 52,202,368	$ 9,718
Net income for the period		-	-	-	4,329,661	-	-	-	4,329,661	34
Other comprehensive income for the period	6(20)	-	-	-	-	998,372	334,599	-	1,332,971	-
Total comprehensive income for the period		-	-	-	4,329,661	998,372	334,599	-	5,662,632	34
Distribution of 2025 earnings
Cash dividends	6(19)	-	-	-	(12,887,816)	-	-	-	(12,887,816)	-
Compensation cost of share-based payments	6(15)(20)	-	-	-	-	-	-	223,779	223,779	-
Other changes in capital surplus	6(18)	-	347	-	-	-	-	-	347	-
Balance at March 31, 2026		$ 5,155,126	$ 1,623,833	$ 8,882,764	$ 25,174,510	$ 3,207,669	$ 2,276,304	($ 1,118,896)	$ 45,201,310	$ 9,752

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

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

(Expressed in thousands of New Taiwan dollars)

	Notes	Three-month periods ended March 31
		2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 4,977,325	$ 5,605,216
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(26)	462,033	364,441
Amortization	6(11)(26)	574,295	520,037
Expected credit losses	12(2)	35,257	47,291
Interest expense	6(25)	67,202	28,837
Interest income	6(22)	( 640,801 )	( 662,911 )
Compensation cost of share-based payments	6(15)	223,779	-
Gains on financial assets at fair value through profit or loss	6(2)(24)	( 22,234 )	( 33,585 )
Share of loss (profit) of associates and joint ventures accounted for under equity method	6(7)	3,470	( 1,547 )
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss - current		1,189,484	724,123
Accounts receivable, net		( 5,116,609 )	( 3,849,195 )
Accounts receivable, net - related parties		( 958,077 )	( 1,328,073 )
Other receivables		( 10,914 )	( 19,755 )
Inventories		( 2,055,470 )	( 1,643,384 )
Prepayments		374,308	( 6,185 )
Changes in operating liabilities
Contract liabilities - current		( 334,454 )	( 88,853 )
Notes payable		( 1,000 )	-
Accounts payable		4,104,132	3,542,273
Accounts payable - related parties		30,147	38,679
Other payables		1,460,646	2,783,486
Other payables - related parties		307,810	44,953
Other current liabilities		924,916	1,173,209
Provisions - non-current		27,440	33,182
Accrued pension obligations		742	( 8,747 )

(Continued)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025
(Expressed in thousands of New Taiwan dollars)

	Notes	Three-month periods ended March 31
		2026	2025
Cash inflow generated from operations		$ 5,623,427	$ 7,263,492
Interest received		680,539	610,198
Interest paid		( 55,798 )	( 28,769 )
Income tax paid		( 134,296 )	( 133,153 )
Net cash flows from operating activities		6,113,872	7,711,768
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at fair value through profit or loss		-	16,939
Acquisition of financial assets at amortized cost		( 16,918,190 )	( 14,692,127 )
Proceeds from disposal of financial assets at amortized cost		11,197,000	4,788,794
Acquisition of property, plant and equipment	6(30)	( 1,122,340 )	( 246,411 )
Acquisition of intangible assets	6(30)	( 1,201,057 )	( 1,259,915 )
(Increase) decrease in refundable deposits		( 2,810 )	924
Net cash flows used in investing activities		( 8,047,397 )	( 11,391,796 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	6(31)	25,294,270	15,672,670
Decrease in short-term borrowings	6(31)	( 25,613,130 )	( 16,300,000 )
Repayments of principal portion of lease liabilities	6(31)	( 33,678 )	( 32,199 )
Other financing activities		347	-
Net cash flows used in financing activities		( 352,191 )	( 659,529 )
Effect of exchange rate		208,430	95,178
Net decrease in cash and cash equivalents		( 2,077,286 )	( 4,244,379 )
Cash and cash equivalents at beginning of period	6(1)	13,065,867	14,812,459
Cash and cash equivalents at end of period	6(1)	$ 10,988,581	$ 10,568,080

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 THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

(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 April 30, 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 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board ("IASB")
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
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 – comparative information’	January 1, 2023
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.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

None.

(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 IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by IASB
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027 (Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	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. The quantitative impact will be disclosed when the assessment is complete.

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.

SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2025, except for the compliance statement, basis of preparation, basis of consolidation and interim financial statements applied as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.

B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2025.

(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.

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(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 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”) 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:

Basis for preparation of consolidated financial statements is consistent with the 2025 consolidated financial statements.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership(%)			Description
			March 31, 2026	December 31, 2025	March 31, 2025
Realtek Semiconductor Corporation	Amber Universal Inc.	Investment holdings	100%	100%	100%
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	ICs manufacturing, design, research, development, sales, and marketing	100%	100%	100%
Realtek Semiconductor Corporation	Wise Elite Global Limited	Investment holdings	100%	100%	100%	Note 1
Realtek Semiconductor Corporation	Realsun Investments Co., Ltd.	“	100%	100%	100%	Note 1
Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	“	100%	100%	100%	Note 1
Realtek Semiconductor Corporation	Realking Investments Co., Ltd.	“	100%	100%	100%	Note 1

Name of investor	Name of subsidiary	Main business activities	Ownership(%)			Description
			March 31, 2026	December 31, 2025	March 31, 2025
Realtek Semiconductor Corporation	Realsun Technology Corporation	ICs manufacturing, design, research, development, sales, and marketing	100%	100%	100%	Note 1
Realtek Semiconductor Corporation	Bobitag Inc.	Manufacture and installation of computer equipment and wholesale, retail and related service of electronic materials and information / software	67%	67%	67%	Note 1
Realtek Semiconductor Corporation	AICONNX Technology Corporation	ICs manufacturing, design, research, development, sales, and marketing	100%	100%	100%	Note 1
Leading Enterprises Limited	Realtek Semiconductor (Japan) Corp.	Information collection and technical support	100%	100%	100%	Note 1
Amber Universal Inc.	Realtek Semiconductor (Hong Kong) Limited	Information services and technical support	100%	100%	100%	Note 1
Amber Universal Inc.	Realtek Semiconductor (ShenZhen) Corp.	R&D and technical support	100%	100%	100%	Note 1
Empsonic Enterprises Inc.	Realsil Microelectronics (Suzhou) Co., Ltd.	“	100%	100%	100%	Note 1

Name of investor	Name of subsidiary	Main business activities	Ownership(%)			Description
			March 31, 2026	December 31, 2025	March 31, 2025
Talent Eagle Enterprise Inc.	Ubilinx Technology Inc.	R&D and technical support	100%	100%	100%	Note 1
Realtek Singapore Private Limited	Cortina Access, Inc.	//	100%	100%	100%	Note 1
Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	//	100%	100%	100%	Note 1
Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co., Ltd.	//	100%	100%	100%	Note 1
Realtek Singapore Private Limited	Empsonic Enterprises Inc.	Investment holdings	100%	100%	100%	Note 1
Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	R&D and technical support	100%	100%	100%	Note 1
Realtek Singapore Private Limited	RayMX Microelectronics Corp.	ICs manufacturing, design, research, development, sales, and marketing	19%	19%	19%	Note 1
Realtek Singapore Private Limited	Leading Enterprises Limited	Investment holdings	100%	100%	100%
Realtek Singapore Private Limited	Bluocean Inc.	//	100%	100%	100%
Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	//	100%	100%	100%
Realtek Singapore Private Limited	Realtek Germany GmbH	R&D and technical support	100%	100%	100%	Note 1

Name of investor	Name of subsidiary	Main business activities	Ownership(%)			Description
			March 31, 2026	December 31, 2025	March 31, 2025
Realtek Singapore Private Limited	Realtek Bangalore Private Limited	R&D and technical support	100%	100%	100%	Note 1
Realtek Singapore Private Limited	Pharrics BV	//	100%	100%	-	Note 2
Realsil Microelectronics (Suzhou) Co., Ltd.	RayMX Microelectronics Corp.	ICs manufacturing, design, research, development, sales, and marketing	81%	81%	81%	Note 1
Realsil Microelectronics (Suzhou) Co., Ltd.	Suzhou PanKore Integrated Circuit Technology Co. Ltd.	//	-	-	80%	Note 3
Realtek Semiconductor (ShenZhen) Corp.	Suzhou PanKore Integrated Circuit Technology Co. Ltd.	//	-	-	20%	Note 3
Bluocean Inc.	Realtek Semiconductor (Malaysia) Sdn. Bhd.	R&D and technical support	100%	100%	100%	Note 1
Bluocean Inc.	Realtek Korea Inc.	//	100%	100%	100%	Note 1
Realsun Investments Co., Ltd.	Realtek Bangalore Private Limited	//	0%	0%	0%	Note 1

Note 1: The financial statements of the entity as at and for the three-month periods ended March 31, 2026 and 2025 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.
Note 2: Pharrics BV was incorporated on September 15, 2025. The financial statements of the entity as at and for the three-month period ended March 31, 2026 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.

Note 3: On July 21, 2025, the dissolution of Suzhou PanKore Integrated Circuit Technology Co. Ltd. has been approved by the competent authority. The financial statements of the entity as at and for the three-month period ended March 31, 2025 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.

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) Employee benefits

Pensions - Defined benefit plan

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax

A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognizes the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

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

There have been no significant changes as at March 31, 2026. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2025.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	March 31, 2026	December 31, 2025	March 31, 2025
Cash on hand and revolving funds	$ 1,052	$ 1,019	$ 1,324
Checking accounts and demand deposits	9,666,557	7,459,863	9,933,957
Time deposits	1,279,723	5,569,731	602,237
Cash equivalents - notes issued under repurchase agreement	41,249	35,254	30,562
	$ 10,988,581	$ 13,065,867	$ 10,568,080

A. 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.
B. The Group has no cash and cash equivalents pledged to others.

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

	March 31, 2026	December 31, 2025	March 31, 2025
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Listed stocks	$ 124,368	$ 146,754	$ 146,932
Beneficiary certificates	5,639,833	6,666,526	6,483,851
Structured deposits	-	-	274,550
	$ 5,764,201	$ 6,813,280	$ 6,905,333

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

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Financial assets mandatorily measured at fair value through profit or loss
Listed stocks	($ 22,386)	($ 44,240)
Beneficiary certificates	44,620	77,825
	$ 22,234	$ 33,585

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	March 31, 2026	December 31, 2025	March 31, 2025
Non-current items:
Equity instruments
Listed stocks	$ 748,692	$ 735,220	$ 522,053
Emerging stocks	215,925	104,076	-
Unlisted stocks	2,704,662	2,464,345	2,817,867
	$ 3,669,279	$ 3,303,641	$ 3,339,920

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 $3,669,279,$ 3,303,641 and $3,339,920 on March 31, 2026, December 31, 2025 and March 31, 2025, 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:

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Equity instruments at fair value through other comprehensive income or loss
Fair value change recognized in other comprehensive income (loss)	$ 334,599	($ 25,892)

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

(4) Financial assets at amortized cost

Items	March 31, 2026	December 31, 2025	March 31, 2025
Current items:
Time deposits	$ 47,968,042	$ 41,496,448	$ 42,369,021
Non-current items:
Corporate bonds	$ 9,082,923	$ 9,160,343	$ 9,502,488
Time deposits	1,624,167	1,607,870	416,891
	$ 10,707,090	$ 10,768,213	$ 9,919,379

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 amortized 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

	March 31, 2026	December 31, 2025	March 31, 2025
Accounts receivable	$ 17,975,456	$ 12,787,500	$ 16,225,391
Accounts receivable - related parties	3,296,571	2,338,494	3,983,830
Less: Loss allowance	( 150,067)	( 114,810)	( 132,880)
	$ 21,121,960	$ 15,011,184	$ 20,076,341

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

	March 31, 2026	December 31, 2025	March 31, 2025
Not past due	$ 20,559,847	$ 14,519,327	$ 19,390,387
Up to 30 days	711,662	606,346	818,834
31 to 90 days	518	321	-
Over 90 days	-	-	-
	$ 21,272,027	$ 15,125,994	$ 20,209,221

The above aging analysis is based on past due date.

B. As at March 31, 2026, December 31, 2025 and March 31, 2025, accounts receivable were all from

contracts with customers. And as at January 1, 2025, the balance of receivables from contracts with customers amounted to $15,031,953.

C. The Group has no accounts receivable pledged to others.
D. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(6) Inventories

	March 31, 2026
	Cost	Allowance for obsolescence and market value decline	Book value
Raw materials	$ 9,197,457	($ 412,142)	$ 8,785,315
Work in process	8,048,892	( 1,087,445)	6,961,447
Finished goods	7,974,758	( 2,035,314)	5,939,444
	$ 25,221,107	($ 3,534,901)	$ 21,686,206
	December 31, 2025
	Cost	Allowance for obsolescence and market value decline	Book value
Raw materials	$ 4,993,486	($ 474,873)	$ 4,518,613
Work in process	7,898,872	( 852,001)	7,046,871
Finished goods	9,864,587	( 1,869,157)	7,995,430
	$ 22,756,945	($ 3,196,031)	$ 19,560,914
	March 31, 2025
	Cost	Allowance for obsolescence and market value decline	Book value
Raw materials	$ 4,833,669	($ 640,842)	$ 4,192,827
Work in process	6,708,694	( 845,329)	5,863,365
Finished goods	6,778,361	( 1,685,120)	5,093,241
	$ 18,320,724	($ 3,171,291)	$ 15,149,433

Operating costs incurred on inventories for the three-month periods ended March 31, 2026 and 2025 were as follows:

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Cost of inventories sold and others	$ 17,988,367	$ 17,390,230
Losses on allowance (gains on reversal) of obsolescence and market value decline	323,196	( 434,362)
Losses on scrap inventories	24,022	9,540
	$ 18,335,585	$ 16,965,408

For the three-month period ended March 31, 2025, the gains were from the reversal of allowance for obsolescence and market value decline when those inventories were sold or consumed.

(7) Investments accounted for under equity method

	March 31, 2026	December 31, 2025	March 31, 2025
Innorich Venture Capital Corp.	$ 78,851	$ 80,207	$ 94,410
Starmems Semiconductor Corp.	21,151	23,265	27,783
	$ 100,002	$ 103,472	$ 122,193

The (loss) profit on investments accounted for under equity method amounted to ($3,470) and $1,547 for the three-month periods ended March 31, 2026 and 2025, respectively.

~20~

(8) Property, plant and equipment

	Land	Buildings	Machinery	Test equipment	Office equipment	Construction in progress and equipment to be inspected	Others	Total
At January 1, 2026
Cost	$ 489,370	$ 7,274,661	$ 1,867,000	$ 5,985,157	$ 776,818	$ 505,065	$ 1,818,245	$ 18,716,316
Accumulated depreciation and impairment	-	( 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
2026
At January 1	$ 489,370	$ 5,680,281	$ 790,461	$ 1,911,132	$ 341,047	$ 505,065	$ 887,619	$ 10,604,975
Additions	-	-	32,450	42,553	112,722	644,372	73,229	905,326
Reclassifications	-	-	8,869	483	24	( 127,890)	118,514	-
Depreciation	-	( 73,380)	( 50,327)	( 200,940)	( 28,902)	-	( 73,006)	( 426,555)
Net exchange difference	-	7,577	26	1,148	1,488	26	526	10,791
At March 31	$ 489,370	$ 5,614,478	$ 781,479	$ 1,754,376	$ 426,379	$ 1,021,573	$ 1,006,882	$ 11,094,537
At March 31, 2026
Cost	$ 489,370	$ 7,295,470	$ 1,908,680	$ 6,044,589	$ 892,688	$ 1,021,573	$ 2,011,873	$ 19,664,243
Accumulated depreciation and impairment	-	( 1,680,992)	( 1,127,201)	( 4,290,213)	( 466,309)	-	( 1,004,991)	( 8,569,706)
	$ 489,370	$ 5,614,478	$ 781,479	$ 1,754,376	$ 426,379	$ 1,021,573	$ 1,006,882	$ 11,094,537

~21~

	Land	Buildings	Machinery	Test equipment	Office equipment	Construction in progress and equipment to be inspected	Others	Total
At January 1, 2025
Cost	$ 489,370	$ 4,754,571	$ 1,460,319	$ 4,945,234	$ 605,357	$ 2,662,704	$ 1,413,132	$ 16,330,687
Accumulated depreciation and impairment	-	( 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
2025
At January 1	$ 489,370	$ 3,312,778	$ 572,438	$ 1,621,383	$ 252,256	$ 2,662,704	$ 699,238	$ 9,610,167
Additions	-	-	4,687	96,692	1,433	108,866	21,924	233,602
Reclassifications	-	-	-	-	-	( 28,433)	28,433	-
Depreciation	-	( 36,636)	( 45,254)	( 181,012)	( 19,354)	-	( 52,671)	( 334,927)
Net exchange difference	-	4,517	397	1,086	349	41	200	6,590
At March 31	$ 489,370	$ 3,280,659	$ 532,268	$ 1,538,149	$ 234,684	$ 2,743,178	$ 697,124	$ 9,515,432
At March 31, 2025
Cost	$ 489,370	$ 4,768,235	$ 1,465,238	$ 5,050,243	$ 607,554	$ 2,743,178	$ 1,464,785	$ 16,588,603
Accumulated depreciation and impairment	-	( 1,487,576)	( 932,970)	( 3,512,094)	( 372,870)	-	( 767,661)	( 7,073,171)
	$ 489,370	$ 3,280,659	$ 532,268	$ 1,538,149	$ 234,684	$ 2,743,178	$ 697,124	$ 9,515,432

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.

(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:

	Carrying amount
	March 31, 2026	December 31, 2025	March 31, 2025
Land	$ 1,515,517	$ 1,328,944	$ 1,505,095
Buildings	197,048	166,302	117,674
Other equipment	6,893	7,165	9,830
	$ 1,719,458	$ 1,502,411	$ 1,632,599
	Depreciation
	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Land	$ 9,012	$ 5,648
Buildings	22,621	20,429
Other equipment	2,831	2,434
	$ 34,464	$ 28,511

C. For the three-month periods ended March 31, 2026 and 2025, the additions to right-of-use assets were $249,405 and $4,661, respectively.

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

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Items affecting profit or loss
Interest expense on lease liabilities	$ 7,432	$ 4,696

E. For the three-month periods ended March 31, 2026 and 2025, the Group's total cash outflow for leases were $41,110 and $36,895, respectively.

~23~

(10) Investment property

	Buildings
	2026	2025
At January 1
Cost	$ 84,099	$ 83,968
Accumulated depreciation and impairment	( 56,925)	( 52,847)
	$ 27,174	$ 31,121
At January 1	$ 27,174	$ 31,121
Depreciation	( 1,014)	( 1,003)
Net exchange difference	779	573
At March 31	$ 26,939	$ 30,691
At March 31
Cost	$ 86,550	$ 85,549
Accumulated depreciation and impairment	( 59,611)	( 54,858)
	$ 26,939	$ 30,691

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

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Rental income from the lease of the investment property	$ 587	$ 580
Operating expenses arising from the investment property that generated rental income during the period	$ 1,014	$ 1,003

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 March 31, 2026, December 31, 2025 and March 31, 2025, the fair values were $112,945, $107,099 and $157,073, respectively.

(11) Intangible assets

	Computer software	Intellectual property	Goodwill	Patents	Others	Total
At January 1, 2026
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
2026
At January 1	$ 2,339,793	$ 1,133,730	$ -	$ -	$ 1,200	$ 3,474,723
Additions	1,435,783	11,854	-	97,167	-	1,544,804
Amortisation	( 415,338)	( 154,084)	-	( 4,873)	-	( 574,295)
Net exchange difference	273	2,149	-	( 3,731)	-	( 1,309)
At March 31	$ 3,360,511	$ 993,649	$ -	$ 88,563	$ 1,200	$ 4,443,923
At March 31, 2026
Cost	$ 8,631,867	$ 4,745,311	$ 639,561	$ 96,614	$ 1,200	$14,114,553
Accumulated amortisation and impairment	( 5,271,356)	( 3,751,662)	( 639,561)	( 8,051)	-	( 9,670,630)
	$ 3,360,511	$ 993,649	$ -	$ 88,563	$ 1,200	$ 4,443,923
	Computer software	Intellectual 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	1,834,329	95,935	-	-	1,930,264
Amortisation	( 350,523)	( 169,514)	-	-	( 520,037)
Net exchange difference	320	367	-	-	687
At March 31	$ 2,822,068	$ 1,246,781	$ -	$ 1,200	$ 4,070,049
At March 31, 2025
Cost	$ 6,561,210	$ 4,320,796	$ 639,561	$ 320,104	$ 11,841,671
Accumulated amortisation and impairment	( 3,739,142)	( 3,074,015)	( 639,561)	( 318,904)	( 7,771,622)
	$ 2,822,068	$ 1,246,781	$ -	$ 1,200	$ 4,070,049

Details of amortization on intangible assets are as follows:

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Operating costs	$ 121	$ 768
Operating expenses	574,174	519,269
	$ 574,295	$ 520,037

(12) Short-term borrowings

Type of borrowings	March 31, 2026	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 9,771,140	1.69%~4.00%	None
Type of borrowings	December 31, 2025	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 10,090,000	1.69%~1.95%	None
Type of borrowings	March 31, 2025	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 3,879,714	1.72%~2.68%	None

Interest expense of bank borrowings recognized in profit or loss amounted to $59,770 and $24,141 for the three-month periods ended March 31, 2026 and 2025, respectively.

(13) Other payables

	March 31, 2026	December 31, 2025	March 31, 2025
Accrued salaries and bonus	$ 17,753,765	$ 17,440,727	$ 17,226,576
Payable for dividends	12,887,816	-	13,078,023
Payable for employees’ compensation	13,639,578	12,370,011	10,996,628
Other accrued expenses	3,740,339	3,655,607	3,382,940
Payables on equipment	246,942	463,956	140,384
Payables on software and intellectual property	2,781,689	2,437,942	2,689,712
Others	249,652	144,379	247,276
	$ 51,299,781	$ 36,512,622	$ 47,761,539

(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 pension costs under the defined benefit pension plans of the Group for the three-month periods ended March 31, 2026 and 2025 were $471 and $518, respectively.
(c) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2026 amount to $6,000.

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 three-month periods ended March 31, 2026 and 2025 were $131,094 and $140,859, respectively.

(15) Share-based payment

A. For the three-month period ended March 31, 2026, the Group's share-based payment arrangements were as follows:

Type of arrangement	Grant date	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.

(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 profit margin, return on equity and ESG as performance indicators, and the respective weights and target conditions for each indicator are as follows: 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% when calculating the number of vested shares for that year. 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.

Performance indicators	Weighting targets
Pre-tax Profit Margin	Accounts for a 30% weighting; target is to exceed the Company's average pre-tax profit margin for the preceding three fiscal years.
Return On Equity	Accounts for a 30% weighting; 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.
ESG	Accounts for a 40% weighting; target is BBB or higher in the latest annual MSCI ESG Rating (Note)

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

~28~

(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.

(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.

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

	2026	2025
Number of shares unvested at January 1	2,649	-
Granted for the period	-	-
Number of shares unvested at March 31	2,649	-

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

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

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

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Restricted stocks to employees	$ 223,779	$ -
(16) Provision
	2026	2025
At January 1	$ 1,334,672	$ 1,266,560
Increase in provision	27,440	33,182
Effect of exchange rate	23,292	14,729
At March 31	$ 1,385,404	$ 1,314,471

As at March 31, 2026, provisions were estimated for potential infringement litigations, please refer to Note 9.

(17) Share capital

A. As at March 31, 2026, 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:

	2026	2025
At January 1 and March 31	512,863	512,863

B. On January 24, 2002, the Company increased its new common stock and sold its old common stock by issuing 13,924 thousand units of GDRs for cash. Each GDR unit represents 4 common stocks, so the total common stocks issued were 55,694 thousand shares. The Company’s GDRs are traded in the Luxembourg Stock Exchange. As at March 31, 2026, the outstanding GDRs were 445 thousand units, equivalent to 1,781 thousand shares of common stock, representing 0.34% 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 March 31, 2026, 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.

	2026
	Share premium	Change in equity of associates accounted for under equity method	Employee restricted stocks	Others	Total
At January 1	$ 213,534	$ 72,125	$ 1,335,096	$ 2,731	$ 1,623,486
Other changes in capital surplus	-	-	-	347	347
At March 31	$ 213,534	$ 72,125	$ 1,335,096	$ 3,078	$ 1,623,833
	2025
	Share premium	Change in equity of associates accounted for under equity method	Others	Total
At January 1 and March 31	$ 213,534	$ 72,125	$ 1,623	$ 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.

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 dividends 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 2025 earnings had been proposed by the Board of Directors’ meeting on February 26, 2026 and the appropriation of 2024 earnings had been resolved at the stockholders’ meeting on May 28, 2025. Details are summarized below:

	2025		2024
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Cash dividends	$ 12,887,816	$ 25.00	$ 13,078,023	$ 25.50

(20) Other equity items

	2026
	Unrealized gains or losses on valuation	Currency translation differences	Unearned employee compensation	Total
At January 1	$ 1,941,705	$ 2,209,297	( 1,342,675)	$ 2,808,327
Revaluation:
-Group	334,599	-	-	334,599
Currency translation differences:
-Group	-	998,372	-	998,372
Compensation cost of share-based payments	-	-	223,779	223,779
At March 31	$ 2,276,304	$ 3,207,669	($ 1,118,896)	$ 4,365,077
	2025
	Unrealized gains or losses on valuation	Currency translation differences	Total
At January 1	$ 1,872,763	$ 4,724,667	$ 6,597,430
Revaluation:
-Group	( 25,892)	-	( 25,892)
Currency translation differences:
-Group	-	759,095	759,095
At March 31	$ 1,846,871	$ 5,483,762	$ 7,330,633

(21) Operating revenue

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Revenue from contracts with customers	$ 36,422,566	$ 35,022,396

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:

For the three-month period ended March 31, 2026	Integrated circuit products	Others	Total
Revenue from external customer contracts	$ 36,317,324	$ 105,242	$ 36,422,566
Timing of revenue recognition
At a point in time	$ 36,317,324	$ 105,242	$ 36,422,566
For the three-month period ended March 31, 2025	Integrated circuit products	Others	Total
Revenue from external customer contracts	$ 34,915,652	$ 106,744	$ 35,022,396
Timing of revenue recognition
At a point in time	$ 34,915,652	$ 106,744	$ 35,022,396

B. Contract liabilities

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

	March 31, 2026	December 31, 2025	March 31, 2025	January 1, 2025
Contract liabilities -advance sales receipts	$ 356,665	$ 691,119	$ 324,901	$ 413,754

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

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Contract liabilities – advance sales receipts	$ 680,483	$ 393,465

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:

	March 31, 2026	December 31, 2025	March 31, 2025
Refund liabilities – current	$ 12,992,396	$ 12,067,580	$ 11,064,259

(22) Interest income

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Interest income from bank deposits and corporate bonds	$ 640,801	$ 662,911
(23) Other income
	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Grant income	$ 10,992	$ 8,430
Other income	4,242	7,296
	$ 15,234	$ 15,726
(24) Other gains and losses
	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Net currency exchange gains	$ 41,966	$ 35,967
Gains on financial assets at fair value through profit or loss	22,234	33,585
Other losses	( 3,926)	( 19,322)
	$ 60,274	$ 50,230
(25) Finance costs
	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Interest expense
Bank borrowings	$ 59,770	$ 24,141
Lease liabilities	7,432	4,696
	$ 67,202	$ 28,837
(26) Expenses by nature
	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Employee benefit expenses	$ 9,985,566	$ 9,868,841
Depreciation	462,033	364,441
Amortization	574,295	520,037

(27) Employee benefit expenses

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Wages and salaries	$ 9,074,239	$ 9,220,923
Compensation cost of share-based payments	223,779	-
Labor and health insurance fees	376,215	345,808
Pension costs	131,566	141,377
Other personnel expenses	179,767	160,733
Total	$ 9,985,566	$ 9,868,841

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 three-month periods ended March 31, 2026 and 2025, employees' compensation were accrued at $1,268,845 and $1,394,541, respectively; directors' remuneration were accrued at $84,590 and $92,969, respectively. The amounts were estimated as operating cost or operating expense in accordance with the Company's Articles of Incorporation.

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.

(28) Income tax

A. Income tax expense

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Current income tax:
Current income tax on profit for the period	$ 587,097	$ 945,019
Prior year income tax under (over) estimation	61,882	( 99,349)
Total current income tax	648,979	845,670
Deferred income tax:
Origination and reversal of temporary differences	( 1,349)	( 1,989)
Income tax expense	$ 647,630	$ 843,681

B. As at March 31, 2026, the Company’s income tax returns through 2024 have been assessed and approved by the Tax Authority.

C. 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 recognized for the three-month periods ended March 31, 2026 and 2025 were $401,825 and $439,147, respectively.

~36~

(29) Earnings per share

	For the three-month period ended March 31, 2026
	Amount after tax	Weighted average number of common shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to common shareholders of the parent company	$ 4,329,661	512,863	$ 8.44
Diluted earnings per share
Profit attributable to common shareholders of the parent company	$ 4,329,661	512,863
Assumed conversion of all dilutive potential common shares
Restricted stocks to employees	-	371
Employees’ compensation	-	8,491
Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	$ 4,329,661	521,725	$ 8.30
	For the three-month period ended March 31, 2025
	Amount after tax	Weighted average number of common shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to common shareholders of the parent company	$ 4,761,555	512,863	$ 9.28
Diluted earnings per share
Profit attributable to common shareholders of the parent company	$ 4,761,555	512,863
Assumed conversion of all dilutive potential common shares
Employees’ compensation	-	7,871
Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	$ 4,761,555	520,734	$ 9.14

(30) Supplemental cash flow information

A. Investing activities with partial cash payments

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Acquisition of property, plant and equipment	$ 905,326	$ 233,602
Add: Opening balance of payable on equipment	463,956	153,193
Less: Ending balance of payable on equipment	( 246,942)	( 140,384)
Cash paid during the period	$ 1,122,340	$ 246,411
	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Acquisition of intangible assets	$ 1,544,804	$ 1,930,264
Add: Opening balance of payable on software and intellectual property	2,437,942	2,019,363
Less: Ending balance of payable on software and intellectual property	( 2,781,689)	( 2,689,712)
Cash paid during the period	$ 1,201,057	$ 1,259,915

B. Financing activities with partial cash payments

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Cash dividends declared	$ 12,887,816	$ 13,078,023
Ending balance of other payables (shown in other payables)	( 12,887,816)	( 13,078,023)
Cash paid during the period	$ -	$ -

(31) Changes in liabilities from financing activities

	Short-term borrowings	Lease liabilities	Dividends payable	Liabilities from financing activities-total
At January 1, 2026	$ 10,090,000	$ 1,290,412	$ -	$ 11,380,412
Changes in cash flow from financing activities	( 318,860)	( 33,678)	-	( 352,538)
Interest paid	-	( 7,432)	-	( 7,432)
Interest of lease liabilities	-	7,432	-	7,432
Impact of changes in foreign exchange	-	2,510	-	2,510
Changes in other non-cash items	-	249,405	12,887,816	13,137,221
At March 31, 2026	$ 9,771,140	$ 1,508,649	$ 12,887,816	$ 24,167,605

~39~

	Short-term borrowings	Guarantee deposits	Lease liabilities	Dividends payable	Liabilities from financing activities-total
At January 1, 2025	$ 4,500,000	$ 179	$ 1,475,239	$ -	$ 5,975,418
Changes in cash flow from financing activities	( 627,330)	-	( 32,199)	-	( 659,529)
Interest paid	-	-	( 4,698)	-	( 4,698)
Interest of lease liabilities	-	-	4,698	-	4,698
Impact of changes in foreign exchange	7,044	-	( 25,349)	-	( 18,305)
Changes in other non-cash items	-	-	4,661	13,078,023	13,082,684
At March 31, 2025	$ 3,879,714	$ 179	$ 1,422,352	$ 13,078,023	$ 18,380,268

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

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Sales of goods:
G.M.I Technology Inc.	$ 4,365,484	$ 5,592,327
Others	2,473	2,554
	$ 4,367,957	$ 5,594,881

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

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Greatek Electronics Inc.	$ 319,199	$ 323,361
Others	38,959	29,524
	$ 358,158	$ 352,885

Purchases and 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

	March 31, 2026	December 31, 2025	March 31, 2025
Accounts receivable:
G.M.I Technology Inc.	$ 3,271,946	$ 2,320,324	$ 3,954,574
Others	1,922	1,153	1,884
	$ 3,273,868	$ 2,321,477	$ 3,956,458

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

D. Payables to related parties

	March 31, 2026	December 31, 2025	March 31, 2025
Accounts payable:
Greatek Electronics Inc.	$ 336,343	$ 327,450	$ 349,137
Others	30,868	9,614	17,913
	$ 367,211	$ 337,064	$ 367,050

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 (receivables) payables:

	For the three-month period ended March 31, 2026		For the three-month period ended March 31, 2025
	Amount	Ending balance	Amount	Ending balance
Other related parties-Sales commissions	$ 171,001	$ 114,822	$ 246,788	$ 123,008
Others	$ 704	$ 805	$ 3,356	$ 2,452

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

(4) Key management compensation

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025
Salaries and other short-term employee benefits	$ 147,229	$ 147,100
Post-employment benefits	1,585	1,406
Share-based payments	93,769	-
Total	$ 242,583	$ 148,506

~41~

8. PLEDGED ASSETS

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

Pledged asset	Book value			Purposes
	March 31, 2026	December 31, 2025	March 31, 2025
Time deposits (shown in financial assets at amortized cost non-current)	$ 30,000	$ 62,749	$ 32,258	Guarantee for the importation customs duties of materials Guarantee for leasing land in science park and office
"	66,482	60,712	64,327
	$ 96,482	$ 123,461	$ 96,585

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(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.

~42~

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

There have been no significant changes as at March 31, 2026. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2025.

(2) Financial instruments

A. Financial instruments by category

	March 31, 2026	December 31, 2025	March 31, 2025
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 5,764,201	$ 6,813,280	$ 6,905,333
Financial assets at fair value through other comprehensive income
Designation of equity instrument	$ 3,669,279	$ 3,303,641	$ 3,339,920
Financial assets at amortized cost/Receivables
Cash and cash equivalents	$ 10,988,581	$ 13,065,867	$ 10,568,080
Financial assets at amortized cost	58,675,132	52,264,661	52,288,400
Accounts receivable (including related parties)	21,121,960	15,011,184	20,076,341
Other receivables	538,455	617,201	677,132
Refundable deposits	2,198,472	2,195,948	2,290,349
	$ 93,522,600	$ 83,154,861	$ 85,900,302
Financial liabilities
Financial liabilities at amortized cost
Short-term borrowings	$ 9,771,140	$ 10,090,000	$ 3,879,714
Notes payable	4,000	5,000	-
Accounts payable (including related parties)	15,920,309	11,733,159	13,164,560
Other payables (including related parties)	51,415,408	36,573,643	47,886,999
Guarantee deposits	-	-	179
Other financial liabilities	12,992,396	12,067,580	11,064,259
	$ 90,103,253	$ 70,469,382	$ 75,995,711
Lease liabilities	$ 1,508,649	$ 1,290,412	$ 1,422,352

B. Financial risk management policies

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

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

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

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

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

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:

	March 31, 2026
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 943,484	31.980	$ 30,172,618
Non-monetary items
USD:NTD	1,722,477	31.980	55,084,814
Financial liabilities
Monetary items
USD:NTD	375,543	31.980	12,009,865

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$756,156	31.438	$23,772,032
Non-monetary items
USD:NTD	1,813,655	31.438	57,017,686
Financial liabilities
Monetary items
USD:NTD	570,629	31.438	17,939,435
	March 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$628,656	33.182	$20,860,063
Non-monetary items
USD:NTD	1,872,407	33.182	62,130,209
Financial liabilities
Monetary items
USD:NTD	487,668	33.182	16,181,800
The exchange gains, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month periods ended March 31, 2026 and 2025, amounted to $41,966 and $35,967, respectively.

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

	For the three-month period ended March 31, 2026
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	5%	$ 1,508,631	$ -
Non-monetary items
USD:NTD	5%	-	2,754,241
Financial liabilities
Monetary items
USD:NTD	5%	( 600,493)	-
	For the three-month period ended March 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	5%	$ 1,043,003	$ -
Non-monetary items
USD:NTD	5%	-	3,106,510
Financial liabilities
Monetary items
USD:NTD	5%	( 809,090)	-

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.

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 three-month periods ended March 31, 2026 and 2025 would have increased/decreased by $576,420 and $690,533, 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 $366,928 and $333,992, 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 three-month periods ended March 31, 2026 and 2025, 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 three-month periods ended March 31, 2026 and 2025 would have decreased/increased by $6,207 and $2,619, respectively. If the time deposits interest rate had increased/decreased by 0.25% with all other variables held constant, profit before tax for the three-month periods ended March 31, 2026 and 2025 would have increased/decreased by $31,108 and $25,167, 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.

~46~

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 March 31, 2026, December 31, 2025 and March 31, 2025, the provision matrix are as follows:

	Not past due	1~90 days past due	Over 90 days past due	Total
At March 31, 2026
Expected loss rate	0%~1%	0%~1%	100%
Total book value	$ 20,559,847	$ 712,180	$ -	$ 21,272,027
Loss allowance	$ 142,945	$ 7,122	$ -	$ 150,067
	Not past due	1~90 days past due	Over 90 days past due	Total
At December 31, 2025
Expected loss rate	0%~1%	0%~1%	100%
Total book value	$ 14,519,327	$ 606,667	$ -	$ 15,125,994
Loss allowance	$ 108,742	$ 6,068	$ -	$ 114,810

~48~

At March 31, 2025
| | Not past due | 1~90 days past due | Over 90 days past due | Total |
| --- | --- | --- | --- | --- |
| Expected loss rate | 0%~1% | 0%~1% | 100% | |
| Total book value | $ 19,390,387 | $ 818,834 | $ - | $ 20,209,221 |
| Loss allowance | $ 124,692 | $ 8,188 | $ - | $ 132,880 |

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

	2026
	Loss allowance for accounts receivable
At January 1	$	114,810
Provision for impairment loss		35,257
At March 31	$	150,067
	2025
	Loss allowance for accounts receivable
At January 1	$	85,589
Provision for impairment loss		47,291
At March 31	$	132,880

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

	March 31, 2026
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost
Group 1	$ 49,592,209	$ -	$ -	$ 49,592,209
Group 2	9,082,923	-	-	9,082,923
	$ 58,675,132	$ -	$ -	$ 58,675,132
	December 31, 2025
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost
Group 1	$ 43,104,318	$ -	$ -	$ 43,104,318
Group 2	9,160,343	-	-	9,160,343
	$ 52,264,661	$ -	$ -	$ 52,264,661

~49~

March 31, 2025

	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost
Group 1	$ 42,785,912	$ -	$ -	$ 42,785,912
Group 2	9,502,488	-	-	9,502,488
	$ 52,288,400	$ -	$ -	$ 52,288,400

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.

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:

March 31, 2026	Less than 1 year	Between 1 and 5 years	Over 5 years
Short-term borrowings	$ 9,771,140	$ -	$ -
Notes payable	4,000	-	-
Accounts payable (including related parties)	15,920,309	-	-
Other payables (including related parties)	51,415,408	-	-
Lease liabilities	140,446	298,371	1,622,623
Other financial liabilities	12,992,396	-	-

Non-derivative financial liabilities:

December 31, 2025	Less than 1 year	Between 1 and 5 years	Over 5 years
Short-term borrowings	$ 10,090,000	$ -	$ -
Notes payable	5,000	-	-
Accounts payable (including related parties)	11,733,159	-	-
Other payables (including related parties)	36,573,643	-	-
Lease liabilities	122,421	233,019	1,343,468
Other financial liabilities	12,067,580	-	-
Non-derivative financial liabilities:
March 31, 2025	Less than 1 year	Between 1 and 5 years	Over 5 years
Short-term borrowings	$ 3,879,714	$ -	$ -
Accounts payable (including related parties)	13,164,560	-	-
Other payables (including related parties)	47,886,999	-	-
Lease liabilities	128,814	227,027	1,560,481
Guarantee deposits	-	-	179
Other financial liabilities	11,064,259	-	-

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.

(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:

March 31, 2026	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurement
Financial assets at fair value through profit or loss
Listed stocks	$ 124,368	$ -	$ -	$ 124,368
Beneficiary certificates	5,639,833	-	-	5,639,833
Financial assets at fair value through other comprehensive income
Listed stocks	748,692	-	-	748,692
Emerging stocks	215,925	-	-	215,925
Unlisted stocks	-	-	2,704,662	2,704,662
Total	$ 6,728,818	$ -	$ 2,704,662	$ 9,433,480
December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurement
Financial assets at fair value through profit or loss
Listed stocks	$ 146,754	$ -	$ -	$ 146,754
Beneficiary certificates	6,666,526	-	-	6,666,526
Financial assets at fair value through other comprehensive income
Listed stocks	735,220	-	-	735,220
Emerging stocks	104,076	-	-	104,076
Unlisted stocks	-	-	2,464,345	2,464,345
Total	$ 7,652,576	$ -	$ 2,464,345	$ 10,116,921
March 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurement
Financial assets at fair value through profit or loss
Listed stocks	$ 146,932	$ -	$ -	$ 146,932
Beneficiary certificates	6,483,851	-	-	6,483,851
Structured deposits	274,550	-	-	274,550
Financial assets at fair value through other comprehensive income
Listed stocks	522,053	-	-	522,053
Unlisted stocks	-	-	2,817,867	2,817,867
Total	$ 7,427,386	$ -	$ 2,817,867	$ 10,245,253

(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:

	Listed shares	Closed-end fund	Open-end fund	Government bond	Corporate bond	Convertible (exchangeable) corporate bond
Market quoted price	Closing price	Closing price	Net asset value	Translation price	Weighted average quoted price	Closing 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 three-month periods ended March 31, 2026 and 2025, there were no transfer between Level 1 and Level 2.

E. The following chart is the movement of Level 3 for the three-month periods ended March 31, 2026 and 2025:

	2026	2025
	Non-derivative equity instrument	Non-derivative equity instrument
At January 1	$ 2,464,345	$ 2,779,662
Gains recognized in other comprehensive income	240,317	38,205
At March 31	$ 2,704,662	$ 2,817,867

F. For the three-month periods ended March 31, 2026 and 2025, 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:

	Fair value at March 31, 2026	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted stocks	$ 87,852	Net asset value	Not applicable	-	Not applicable
Private equity fund investment	2,616,810	Net asset value	Not applicable	-	Not applicable
Hybrid instrument:
Convertible notes	-	Binomial model	Not applicable	-	Not applicable
	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted stocks	$ 86,634	Net asset value	Not applicable	-	Not applicable
Private equity fund investment	2,377,711	Net asset value	Not applicable	-	Not applicable
Hybrid instrument:
Convertible notes	-	Binomial model	Not applicable	-	Not applicable

	Fair value at March 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted stocks	$ 149,251	Net asset value	Not applicable	-	Not applicable
Private equity fund investment	2,668,616	Net asset value	Not applicable	-	Not applicable
Hybrid instrument:
Convertible notes	-	Binomial model	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 paid-in 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.

(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.

~55~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

For the three-month period ended March 31, 2026

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 1

No (Note 1)	Creditor	Borrower	General ledger account	In a related party	Maximum outstanding balance during the three-month period ended March 31, 2026 (Note 3)	Balance at March 31, 2026	Actual amount drawn down	Interest rate(%)	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party	Ceiling on total loans granted (Note 2)	Evertents
													Item	Value
0	Realtek Semiconductor Corporation	ReyMX Microelectronics Corp.	Other receivables-related parties	Y	$ 63,960	$ 63,960	$ -	-	Short-term financing	$ -	Operations	$ -	None	$ -	$ 4,520,131	$ 10,000,524	None
1	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	3,198,000	3,198,000	-	-	Short-term financing	-	Operations	-	None	-	10,000,524	10,000,524	None
2	Cortina Access, Inc.	Leading Enterprises Limited	Other receivables-related parties	Y	2,110,680	2,110,680	959,400	3.90	Short-term financing	-	Operations	-	None	-	10,000,524	10,000,524	None
3	Realtek Singapore Private Limited	ReyMX Microelectronics Corp.	Other receivables-related parties	Y	63,960	63,960	-	-	Short-term financing	-	Operations	-	None	-	10,000,524	10,000,524	None
3	Realtek Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	Y	3,198,000	3,198,000	1,694,940	4.10	Short-term financing	-	Operations	-	None	-	10,000,524	10,000,524	None
3	Realtek Singapore Private Limited	Amber Universal Inc.	Other receivables-related parties	Y	3,198,000	3,198,000	1,726,920	4.10	Short-term financing	-	Operations	-	None	-	10,000,524	10,000,524	None
3	Realtek Singapore Private Limited	Pharries BV	Other receivables-related parties	Y	366,891	366,891	-	-	Short-term financing	-	Operations	-	None	-	10,000,524	10,000,524	None
4	Realtek Microelectronics (Suzhou) Co., Ltd.	ReyMX Microelectronics Corp.	Other receivables-related parties	Y	370,348	370,348	148,139	3.00	Short-term financing	-	Operations	-	None	-	10,000,524	10,000,524	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 in 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: Accumulated maximum outstandings balance of loans to others as at the reporting month of the current period.

Table 1 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Provision of endorsements and guarantees to others

For the three-month period ended March 31, 2026

Table 2

Party being endorsed/guaranteed
Number (Note 1)	Endorser/guarantee	Company name	Relationship with the endorser/guarantee (Note 2)	Limited on endorsements/guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/amount as at March 31, 2026 (Note 4)	Outstanding endorsement/guarantee amount at March 31, 2026 (Note 5)	Actual amort drawn down (Note 6)	Amount of endorsements/guarantees secured with collateral	Ratio of accumulated endorsement/guarantee amount to net asset value of the endorser/guarantee 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)
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	2	$ 22,600,655	$ 758,238	$ 758,238	$ 49,330	$ -	1.68%	$ 22,600,655	Y	N	Y
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	2	22,600,655	319,800	319,800	-	-	0.71%	22,600,655	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/guarantee and the party being endorsed/guaranteed is classified into the following seven categories:
(1) Having business relationship.
(2) The endorser/guarantee parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorser/guarantee company owns directly and indirectly more than 50% voting shares of the endorser/guarantee parent company.
(4) The endorser/guarantee 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 Governing 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.

Expenses 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)

March 31, 2026

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	General ledger account	As at March 31, 2026
				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	$ 44,747	1.61%	$ 44,747
Realtek Semiconductor Corporation	Yuanta U.S. Treasury 20+ Year Bond ETF	None	Financial assets at fair value through profit or loss	8,417,000	231,552	-	231,552
Realtek Semiconductor Corporation	Cathay U.S. Treasury 20+ Year Bond ETF	None	Financial assets at fair value through profit or loss	4,503,000	128,696	-	128,696
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	115,724	-	115,724
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	63,960	8.00%	63,960
Realtek Semiconductor Corporation	Golden Smart Home Technology Corp.-Common stock	None	Financial assets at fair value through other comprehensive income	1,190,000	4,704	1.92%	4,704
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	64,350	5.22%	64,350
Realsun Investments Co., Ltd.	Shieh-Yong Investment Co., Ltd. - Common stock	None	Financial assets at fair value through other comprehensive income	61,395,441	841,560	3.03%	841,560
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	64,350	5.22%	64,350
Leading Enterprises Limited	Starts Technology, Inc.-Preferred stock	None	Financial assets at fair value through other comprehensive income	5,000,000	19,188	-	19,188
Leading Enterprises Limited	Oettasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	9,000,000	1,163,943	12.49%	1,163,943
Leading Enterprises Limited	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	4,191,057	-	4,191,057
Leading Enterprises Limited	Qualcomm Inc. - Corporate bond	None	Financial assets at amortized cost	-	552,567	-	552,567
Leading Enterprises Limited	Microsoft Corp. - Corporate bond	None	Financial assets at amortized cost	-	313,051	-	313,051
Leading Enterprises Limited	Pictet Short Term Money Market Fund	None	Financial assets at fair value through profit or loss	600,928	3,350,093	-	3,350,093
Amber Universal Inc.	Oettasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	4,726,836	611,307	6.56%	611,307
Hung-wei Venture Capital Co., Ltd.	United Microelectronics Corporation - Common stock	None	Financial assets at fair value through other comprehensive income	336,346	19,004	-	19,004
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	79,621	2.86%	79,621

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

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

March 31, 2026

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	General ledger account	As at March 31, 2026
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
Hung-wei Venture Capital Co., Ltd.	Greatek Electronics Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	5,823,602	$ 492,094	1.02%	$ 492,094
Hung-wei Venture Capital Co., Ltd.	Unimicron Technology Corp. - Common stock	None	Financial assets at fair value through other comprehensive income	244,981	108,894	0.02%	108,894
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	215,925	8.61%	215,925
Bluocan Inc.	CyWeeMotion Group Limited	None	Financial assets at fair value through other comprehensive income	8,422,256	-	7.01%	-
Bluocan Inc.	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	2,629,866	-	2,629,866
Bluocan Inc.	JPMorgan Liquidity Funds	None	Financial assets at fair value through profit or loss	21,265,754	680,079	-	680,079
Realtek Singapore Private Limited	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	451,406	-	451,406
Talent Eagle Enterprise Inc.	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	593,426	-	593,426
Talent Eagle Enterprise Inc.	Microsoft Corp. - Corporate bond	None	Financial assets at amortized cost	-	301,550	-	301,550
Realsil Microelectronics (Suzhou) Co., Ltd.	WAN JIA Monetary Fund	None	Financial assets at fair value through profit or loss	10,254,616	47,472	-	47,472
Realsil Microelectronics (Suzhou) Co., Ltd.	ICBC RU-YI Monetary Fund	None	Financial assets at fair value through profit or loss	16,202,020	75,005	-	75,005
Realsil Microelectronics (Suzhou) Co., Ltd.	Guang-Fa Monetary Fund	None	Financial assets at fair value through profit or loss	20,169,980	93,374	-	93,374
Realsil Microelectronics (Suzhou) Co., Ltd.	Soochow Monetary Fund	None	Financial assets at fair value through profit or loss	20,344,199	94,180	-	94,180
Realsil Microelectronics (Suzhou) Co., Ltd.	Sws Mu Shouyibao Monetary Fund	None	Financial assets at fair value through profit or loss	15,234,433	70,525	-	70,525
Realsil Microelectronics (Suzhou) Co., Ltd.	Great Wall Gongzibao Monetary Fund	None	Financial assets at fair value through profit or loss	8,207,018	37,993	-	37,993
Realsil Microelectronics (Suzhou) Co., Ltd.	Huaan Cash Plus Monetary Fund	None	Financial assets at fair value through profit or loss	1,227	6	-	6
Realsil Microelectronics (Suzhou) Co., Ltd.	E Fund LongBao Monetary Fund	None	Financial assets at fair value through profit or loss	783	4	-	4
Realsil Microelectronics (Suzhou) Co., Ltd.	First-trust TianTianShouYi Monetary Fund	None	Financial assets at fair value through profit or loss	11,470,775	53,102	-	53,102

Table 3 Page 2

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

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

March 31, 2026

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	General ledger account	As at March 31, 2026
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
Realsil Microelectronics (Suzhou) Co., Ltd.	Penghua TianLiBao Monetary Fund	None	Financial assets at fair value through profit or loss	40,117,906	$ 185,720	-	$ 185,720
Realtek Semiconductor (ShenZhen) Corp.	Ping An Caifubao Monetary Fund	None	Financial assets at fair value through profit or loss	9,053,610	41,912	-	41,912
Realtek Semiconductor (ShenZhen) Corp.	Huaan Cash Plus Monetary Fund	None	Financial assets at fair value through profit or loss	14,391,379	66,623	-	66,623
Realtek Semiconductor (ShenZhen) Corp.	China Southern Tiantianli Monetary Fund	None	Financial assets at fair value through profit or loss	2,002,430	9,270	-	9,270
Realtek Semiconductor (ShenZhen) Corp.	Bosera Hehui Monetary Fund	None	Financial assets at fair value through profit or loss	2,900,000	13,425	-	13,425
Realtek Semiconductor (ShenZhen) Corp.	Bosera Cash Monetary Fund	None	Financial assets at fair value through profit or loss	4,210,000	19,490	-	19,490
Realtek Semiconductor (ShenZhen) Corp.	TianTianChengChang No.3 Financial Instruments	None	Financial assets at fair value through profit or loss	41,895,218	193,947	-	193,947
Realtek Semiconductor (ShenZhen) Corp.	Everbright Wealth AnXin Plan Financial Instruments	None	Financial assets at fair value through profit or loss	15,000,000	69,989	-	69,989
Cortina Network Systems (Shanghai) Co., Ltd.	Cuam Monetary Fund	None	Financial assets at fair value through profit or loss	6,399,318	29,625	-	29,625
Cortina Network Systems (Shanghai) Co., Ltd.	JIA SHI Monetary Fund	None	Financial assets at fair value through profit or loss	5,286,524	24,473	-	24,473
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	7,554	-	7,554

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.

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

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

For the three-month period ended March 31, 2026

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchase/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable(payable)
			Purchase (sales)	Amount	Percentage of total purchase (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	(Sales)	($ 3,019,953)	8.29%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	$ 2,241,149	10.61%
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	(Sales)	( 1,295,140)	3.55%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	997,519	4.72%
Realtek Semiconductor Corporation	Greatek Electronics Inc.	Other related parties	Purchase	214,017	1.09%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	( 229,369)	1.17%
Realtek Singapore Private Limited	Greatek Electronics Inc.	Other related parties	Purchase	103,942	1.00%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	( 105,956)	1.00%

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

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

March 31, 2026

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2026	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	$ 2,241,149	6.16	$ -	-	$ 150,818	$ 22,638
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	997,519	6.52	-	-	-	-

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Significant inter-company transactions during the reporting period

For the three-month period ended March 31, 2026

Expressed in thousands of NTD

(Except as otherwise indicated)

Transaction

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction			Percentage of consolidated total operating revenues or total assets (Note 3)
				General ledger account	Amount	Transaction terms
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	1	Other receivables	$ 52,029	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	51,320	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.14%
0	Realtek Semiconductor Corporation	Realtek Korea Inc.	1	Other payables	28,905	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	210,313	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.58%
0	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	1	Other payables	378,045	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.26%
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	1	Other revenue	18,310	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	1	Other receivables	19,226	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
0	Realtek Semiconductor Corporation	Pharrics BV	1	Technical development expense	55,642	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.15%
0	Realtek Semiconductor Corporation	Pharrics BV	1	Other payables	26,736	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	Realisl Microelectronics (Suzhou) Co., Ltd.	3	Technical development expense	930,625	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	2.56%
1	Realtek Singapore Private Limited	Realisl Microelectronics (Suzhou) Co., Ltd.	3	Prepaid account	959,400	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.67%
1	Realtek Singapore Private Limited	Realtek Semiconductor(ShenZhen) Corp.	3	Technical development expense	170,931	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.47%
1	Realtek Singapore Private Limited	Realtek Semiconductor(ShenZhen) Corp.	3	Prepaid account	172,692	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.12%
1	Realtek Singapore Private Limited	Cortina Access, Inc.	3	Technical development expense	51,727	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 Access, Inc.	3	Other payables	16,440	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 Network Systems (Shanghai) Co., Ltd.	3	Technical development expense	42,188	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.12%
1	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co., Ltd.	3	Other payables	42,623	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	42,539	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.12%
1	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	3	Other payables	14,728	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Significant inter-company transactions during the reporting period

For the three-month period ended March 31, 2026

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 6

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
1	Realtek Singapore Private Limited	Realtek Semiconductor (Japan) Corp.	3	Technical development expense	$ 19,448	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%
1	Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	3	Technical development expense	18,542	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%
1	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	3	Other receivables	52,029	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 counterparts 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

March 31, 2026

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at March 31, 2026			Net profit (loss) of the investee for the three-month period ended March 31, 2026 (Note)	Investment income (loss) recognized by the Company for the three-month period ended March 31, 2026 (Note)	Footnote
				Balance as at March 31, 2026	Balance as at December 31, 2025	Number of shares	Ownership (%)	Book value
Realtek Semiconductor Corporation	Amber Universal Inc.	British Virgin Islands	Investment holdings	$ 1,836,102	$ 1,805,026	41,432	100%	$ 879,690	($ 4,052)	($ 4,052)	Subsidiary
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Singapore	ICs manufacturing, design, research, development, sales, and marketing	4,537,485	4,460,583	116,059,638	100%	54,163,467	3,417,030	3,417,363	Subsidiary
Realtek Semiconductor Corporation	Realsun Investments Co., Ltd.	Taiwan	Investment holdings	280,000	280,000	28,000,000	100%	974,661	( 906)	( 906)	Subsidiary
Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Taiwan	Investment holdings	250,000	250,000	25,000,000	100%	957,626	( 14,635)	( 14,635)	Subsidiary
Realtek Semiconductor Corporation	Realking Investments Co., Ltd.	Taiwan	Investment holdings	293,930	293,930	29,392,985	100%	183,030	( 1,936)	( 1,936)	Subsidiary
Realtek Semiconductor Corporation	Realsun Technology Corporation	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	5,000	5,000	500,000	100%	4,855	( 52)	( 52)	Subsidiary
Realtek Semiconductor Corporation	Bobitag Inc.	Taiwan	Manufacturing and installation of computer equipment and wholesale, retail and related services of electronic materials and information/software	19,189	19,189	1,918,910	66.67%	19,504	104	69	Subsidiary
Realtek Semiconductor Corporation	AICONNX Technology Corporation	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	20,000	20,000	2,000,000	100%	( 6,976)	( 13,675)	( 10,675)	Subsidiary
Realtek Semiconductor Corporation	Wise Elite Global Limited	British Virgin Islands	Investment holdings	31,980	31,438	1,000	100%	36,542	348	348	Subsidiary

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

March 31, 2026

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at March 31, 2026			Net profit (loss) of the investee for the three-month period ended March 31, 2026 (Note)	Investment income (loss) recognized by the Company for the three-month period ended March 31, 2026 (Note)	Footnote
				Balance as at March 31, 2026	Balance as at December 31, 2025	Number of shares	Ownership (%)	Book value
Realking Investments Co., Ltd.	Innorich Venture Capital Corp.	Taiwan	Venture capital activities	$ 181,308	$ 181,308	12,523,364	37.38%	$ 78,851	($ 5,819)	($ 1,356)	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%	6,880	( 3,618)	( 688)	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%	10,811	( 3,618)	( 1,080)	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%	3,460	( 3,618)	( 346)	Investments accounted for under equity method
Leading Enterprises Limited	Realtek Semiconductor (Japan) Corp.	Japan	Information collection and technical support	4,007	4,016	400	100%	10,003	5,657	5,657	Sub-Subsidiary
Amber Universal Inc.	Realtek Semiconductor (Hong Kong) Limited	Hong Kong	Information services and technical support	6,120	6,058	-	100%	1,090	( 13)	( 13)	Sub-Subsidiary
Realtek Singapore Private Limited	Empsonic Enterprises Inc.	Mauritius	Investment holdings	903,435	888,124	2,825,000	100%	3,107,745	69,143	69,143	Sub-Subsidiary
Realtek Singapore Private Limited	Cortina Access, Inc.	U.S.A	R&D and technical support	1,306,255	1,284,117	16,892	100%	1,141,756	12,215	12,215	Sub-Subsidiary

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

March 31, 2026

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at March 31, 2026			Net profit (loss) of the investee for the three-month period ended March 31, 2026 (Note)	Investment income (loss) recognized by the Company for the three-month period ended March 31, 2026 (Note)	Footnote
				Balance as at March 31, 2026	Balance as at December 31, 2025	Number of shares	Ownership (%)	Book value
Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	Taiwan	R&D and technical support	$ 63,960	$ 62,876	21,130,000	100%	$ 114,542	$ 6,452	$ 6,452	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	Vietnam	R&D and technical support	127,920	125,752	4,000,000	100%	93,914	1,029	1,029	Sub-Subsidiary
Realtek Singapore Private Limited	Leading Enterprises Limited	British Virgin Islands	Investment holdings	15,795,881	15,528,171	34,630	100%	16,990,585	137,885	137,885	Sub-Subsidiary
Realtek Singapore Private Limited	Blsocean Inc.	Cayman Islands	Investment holdings	3,519,399	3,459,752	110,050,000	100%	4,039,726	36,076	36,076	Sub-Subsidiary
Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Cayman Islands	Investment holdings	3,648,918	3,587,076	114,100,000	100%	2,957,824	33,443	33,443	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Germany GmbH	Germany	R&D and technical support	18,345	18,449	500,000	100%	19,078	76	76	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Bangalore Private Limited	India	R&D and technical support	4,411	4,547	1,299,999	100%	2,946	517	517	Sub-Subsidiary
Realtek Singapore Private Limited	Pharrics BV	Belgium	R&D and technical support	220,134	221,393	6,000,000	100%	205,880	29,857	29,857	Sub-Subsidiary
Talent Eagle Enterprise Inc.	Ubilinx Technology Inc.	U.S.A	R&D and technical support	1,918,800	1,886,280	60,000,000	100%	462,953	14,274	14,274	Sub-Subsidiary
Blsocean Inc.	Realtek Semiconductor (Malaysia) Sdn. Bhd.	Malaysia	R&D and technical support	82,680	80,938	10,450,000	100%	77,712	324	324	Sub-Subsidiary
Blsocean Inc.	Realtek Korea Inc.	South Korea	R&D and technical support	41,820	43,680	200,000	100%	85,442	5,438	5,438	Sub-Subsidiary
Realsun Investments Co., Ltd.	Realtek Bangalore Private Limited	India	R&D and technical support	-	-	1	0.00%	-	517	-	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, 2026 to March 31, 2026, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

For the three-month period ended March 31, 2026

Table 8

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 January 1, 2026	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the three-month period ended March 31, 2026		Accumulated amount of remittance from Taiwan to Mainland China as at March 31, 2026	Net income of investee for the three-month period ended March 31, 2026 (Note 3)	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the three-month period ended March 31, 2026 (Note 2)	Book value of investment in Mainland China as at March 31, 2026	Accumulated amount of investment income remitted back to Taiwan as at March 31, 2026
					Remitted to Mainland China	Remitted back to Taiwan
Cortina Network Systems (Shanghai) Co., Ltd.	R&D and technical support	$ 115,128	2	$ 115,128	$ -	$ -	$ 115,128	$ 2,232	100%	$ 2,232	$ 163,885	$ -
Realsil Microelectronics (Suzhou) Co., Ltd.	R&D and technical support	895,440	2	895,440	-	-	895,440	69,054	100%	69,054	3,103,393	-
Realtek Semiconductor (ShenZhen) Corp.	R&D and technical support	159,900	2	159,900	-	-	159,900	1,988	100%	1,988	518,721	-
RayMX Microelectronics Corp.	ICs manufacturing, design, research, development, sales, and marketing	121,520	2	121,520	-	-	121,520	61,081	100%	61,081	240,884	-
Company name	Accumulated amount of remittance from Taiwan to Mainland China as at March 31, 2026	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
---	---	---	---
Cortina Network Systems (Shanghai) Co., Ltd.	$ 115,128	$ 115,128	$ 27,120,786
Realsil Microelectronics (Suzhou) Co., Ltd.	895,440	895,440	-
Realtek Semiconductor (ShenZhen) Corp.	159,900	159,900	-
RayMX Microelectronics Corp.	121,520	121,520	-

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others.
Note 2: The information in the Investment income (loss) recognized by the Company for the three-month period ended March 31, 2026 column is obtained from the company's self-contained financial statements.
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, 2026 to March 31, 2026, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

AI assistant

RT — Interim / Quarterly Report 2026

52043_rns_2026-06-05_762eed21-e1a0-462d-9ea9-d3e7aba3bb34.pdf

Introduction

Scope of review

Basis for qualified conclusion

Qualified conclusion

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(4) Employee benefits

(5) Income tax

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(19) Retained earnings

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

(2) Names of related parties and relationship

(3) Significant related party transactions and balances

A. Operating revenue

B. Purchases and processing cost

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

13. SUPPLEMENTARY DISCLOSURES

14. SEGMENT INFORMATION

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

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