Stock Code: : 8048

RUBY TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REVIEW REPORT

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

For the convenience of readers and for information purpose only, the auditors' review 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' review report and financial statements shall prevail.

INDEPENDENT AUDITORS' REVIEW REPORT

Ruby Tech Corp.

Introduction

We have reviewed the accompanying consolidated balance sheets of Ruby Tech Corp. and its subsidiaries as of March 31, 2025 and 2024, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months ended March 31, 2025 and 2024, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements"). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". 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.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the merged company as of March 31, 2025 and 2024, its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Lin, Shu-Ju and Chang, Chun-I.

Deloitte & Touche
Taipei, Taiwan
Republic of China
May 5, 2025

Notice to Readers

For the convenience of readers, this report has been translated into English from the original Chinese version. The English version has not been reviewed by independent auditors. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.

RUBY TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31, 2025, December 31, 2024 and March 31, 2024

Unit: NT$ thousand

Code	Assets	March 31, 2025		December 31, 2024		March 31, 2024
		Amount	%	Amount	%	Amount	%
Current Assets
1100	Cash and cash equivalents (Notes 4 and 6)	$ 275,575	19	$ 272,248	20	$ 324,687	20
1110	Current financial assets measured at fair value through profit or loss (Notes 4 and 7)	25,713	2	23,464	2	33,935	2
1120	Current financial assets measured at fair value through other comprehensive income (Notes 4 and 8)	83,632	6	80,431	6	72,307	5
1136	Current financial assets measured at amortized cost (Notes 4, 9 and 30)	419,449	29	359,493	26	310,395	19
1150	Notes receivable (Notes 4 and 10)	-	-	528	-	-	-
1170	Accounts receivable (Notes 4, 10 and 23)	175,601	12	183,498	13	294,622	18
1200	Other receivables (Notes 4 and 10)	5,154	-	4,059	-	3,984	-
1220	Income tax receivable for the current period (Note 4)	162	-	162	-	-	-
130X	Inventories (Notes 4, 5 and 11)	149,968	10	165,530	12	271,967	17
1470	Other current assets (Note 16)	7,662	1	7,923	-	6,855	1
11XX	Total current assets	1,142,916	79	1,097,336	79	1,318,752	82
Non-Current Assets
1600	Property, plant and equipment (Notes 4 and 13)	271,121	19	271,065	20	259,412	16
1755	Right-of-use assets (Notes 4 and 14)	5,038	1	1,639	-	5,173	1
1780	Other intangible assets (Notes 4 and 15)	4,561	-	4,825	-	4,908	-
1840	Deferred income tax assets (Note 4)	13,842	1	11,903	1	12,607	1
1975	Net defined benefit assets - non-current (Notes 4 and 20)	44	-	-	-	-	-
1990	Other non-current assets (Note 16)	3,634	-	3,632	-	3,817	-
15XX	Total non-current assets	298,240	21	293,064	21	285,917	18
1XXX	Total Assets	$ 1,441,156	100	$ 1,390,400	100	$ 1,604,669	100
Code	Liabilities and Equity
Current Liabilities
2130	Contract liabilities - current (Notes 4 and 23)	$ 24,064	2	$ 26,431	2	$ 17,721	1
2150	Notes payable (Note 17)	47,022	3	48,901	4	54,269	4
2170	Accounts payable (Note 17)	73,632	5	47,893	3	79,067	5
2219	Other payables (Note 18)	72,421	5	96,187	7	98,848	6
2230	Income tax payable for the current period (Note 4)	22,636	2	12,247	1	84,191	5
2250	Liability provisions - current (Notes 4 and 19)	1,849	-	2,193	-	2,330	-
2280	Current lease liabilities (Notes 4 and 14)	2,926	-	1,649	-	4,544	-
2399	Other current liabilities (Note 18)	1,311	-	3,376	-	1,140	-
21XX	Total current liabilities	245,861	17	238,877	17	342,110	21
Non-Current Liabilities
2570	Deferred income tax liabilities (Note 4)	1,412	-	1,335	-	1,851	-
2580	Lease liabilities - non-current (Notes 4 and 14)	2,114	-	-	-	647	-
2640	Net defined benefit liabilities - non-current (Notes 4 and 20)	-	-	214	-	4,568	1
2670	Other non-current liabilities (Note 18)	213	-	208	-	205	-
25XX	Total non-current liabilities	3,739	-	1,757	-	7,271	1
2XXX	Total Liabilities	249,600	17	240,634	17	349,381	22
Equity attributable to owners of the Company (Note 21)
3110	Capital - common stock	577,838	40	577,838	42	561,030	35
3200	Capital surplus	38,969	3	38,969	3	38,969	2
	Retained earnings
3310	Legal reserve	210,984	15	210,984	15	185,474	12
3350	Undistributed earnings	376,694	26	338,545	24	464,654	29
3300	Total retained earnings	587,678	41	549,529	39	650,128	41
3400	Other equity interest	( 10,588 )	( 1 )	( 14,229 )	( 1 )	7,502	-
3500	Treasury shares (Note 22)	( 2,341 )	-	( 2,341 )	-	( 2,341 )	-
3XXX	Total Equity	1,191,556	83	1,149,766	83	1,255,288	78
	Total Liabilities and Equity	$ 1,441,156	100	$ 1,390,400	100	$ 1,604,669	100

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

RUBY TECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Three Months Ended March 31, 2025 and 2024

Unit: NT$ thousand Except Earnings Per Share (NTD dollars)

Code		Three Months Ended March 31
		2025		2024
		Amount	%	Amount	%
Operating Revenue (Notes 4, 23 and 29)
4100	Sales revenue	$ 244,858	98	$ 348,581	97
4800	Other operating revenue	4,544	2	10,181	3
4000	Total operating revenue	249,402	100	358,762	100
Operating Costs (Notes 4, 11, 20 and 24)
5110	Cost of goods sold	164,866	66	246,326	69
5800	Other operating costs	2,944	1	7,819	2
5000	Total operating costs	167,810	67	254,145	71
5900	Gross Profit	81,592	33	104,617	29
Operating Expenses (Notes 20 and 24)
6100	Marketing expenses	14,403	6	19,769	5
6200	Administrative expenses	10,094	4	10,419	3
6300	Research and development expenses	19,379	8	19,797	6
6450	Expected credit impairment losses (reversal gains) (Note 10)	3	-	(25)	-
6000	Total operating expenses	43,879	18	49,960	14
6900	Operating Net Profit	37,713	15	54,657	15
Non-Operating Income and Expenses (Note 24)
7010	Other income	610	-	739	-
7020	Other gain and losses	5,974	3	15,554	5
7050	Finance costs	(3)	-	(14)	-
7100	Interest income	2,785	1	2,843	1
7000	Total non-operating income and expenses	9,366	4	19,122	6
7900	Net Profit Before Tax	47,079	19	73,779	21
7950	Income Tax Expense (Notes 4 and 25)	8,930	4	14,874	4
8200	Net Profit for the Current Period	38,149	15	58,905	17
Other Comprehensive Income (Loss) (Note 21)
8310	Items that may not be reclassified to profit or loss
8316	Unrealized gains (losses) from investment in equity instrument measured at fair value through other comprehensive income	3,201	2	(10,958)	(3)
		3,201	2	(10,958)	(3)
8360	Items that may be subsequently reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements	550	-	628	-
8399	Income tax related to items that may be reclassified (Notes 4 and 25)	(110)	-	(125)	-
		440	-	503	-
8300	Other comprehensive income (after tax) for the period	3,641	2	(10,455)	(3)
8500	The Consolidated Total Comprehensive Income for the Period	$ 41,790	17	$ 48,450	14
8610	Net Profit Attributable to the Owner of the Company	$ 38,149	15	$ 58,905	17
8710	The Total Comprehensive Profit and Loss Attributable to the Owner of the Company	$ 41,790	17	$ 48,450	14
Earnings per Share (Note 26)
9750	Basic	$ 0.66		$ 1.02
9850	Dilution	$ 0.66		$ 1.01

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

RUBY TECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Three Months Ended March 31, 2025 and 2024

Unit: NT$ thousand

Code		Capital – Common Stock	Capital Surplus			Retained Earnings		Exchange Differences on Translation of Foreign Financial Statements	Unrealized Gains (Losses) from Financial Assets Measured at Fair Value Through Other Comprehensive Income	Treasury Shares	Total Equity
			Share Premium	Received Gift(s)	Treasury Share Transactions	Legal Reserve	Undistributed Earnings
A1	Balance as of January 1, 2024	$ 561,030	$ 26,756	$ 173	$ 12,040	$ 185,474	$ 405,749	($ 2,498)	$ 20,455	($ 2,341)	$1,206,838
D1	Net profit for the three months ended March 31, 2024	-	-	-	-	-	58,905	-	-	-	58,905
D3	Other comprehensive income (loss) after tax for the three months ended March 31, 2024	-	-	-	-	-	-	503	( 10,958 )	-	( 10,455 )
D5	Total comprehensive income for the three months ended March 31, 2024	-	-	-	-	-	58,905	503	( 10,958 )	-	48,450
Z1	Balance as of March 31, 2024	$ 561,030	$ 26,756	$ 173	$ 12,040	$ 185,474	$ 464,654	($ 1,995)	$ 9,497	($ 2,341)	$1,255,288
A1	Balance as of January 1, 2025	$ 577,838	$ 26,756	$ 173	$ 12,040	$ 210,984	$ 338,545	($ 1,675)	($ 12,554)	($ 2,341)	$1,149,766
D1	Net Profit for the three months ended March 31, 2025	-	-	-	-	-	38,149	-	-	-	38,149
D3	Other comprehensive income (loss) after tax for the three months ended March 31, 2025	-	-	-	-	-	-	440	3,201	-	3,641
D5	Total comprehensive income for the three months ended March 31, 2025	-	-	-	-	-	38,149	440	3,201	-	41,790
Z1	Balance as of March 31, 2025	$ 577,838	$ 26,756	$ 173	$ 12,040	$ 210,984	$ 376,694	($ 1,235)	($ 9,353)	($ 2,341)	$1,191,556

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

RUBY TECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2025 and 2024

Unit: NT$ thousand

Code	Cash Flows from Operating Activities	Three Months Ended March 31
		2025	2024
A10000	Net profit before tax for the period	$ 47,079	$ 73,779
A20010	Income and expense items:
A20100	Depreciation expense	4,020	4,045
A20200	Amortization expense	264	483
A20300	Expected credit impairment losses (reversal gains)	3	( 25)
A20400	Net gains on financial assets at fair value through profit or loss	( 2,249)	( 314)
A20900	Finance costs	3	14
A21200	Interest income	( 2,785)	( 2,843)
A22500	Gain on disposal of property, plant and equipment	-	( 9)
A23700	Loss for inventory depreciation and slow-moving inventories	10,728	2,196
A24100	Unrealized foreign exchange net gains	( 4,492)	( 7,072)
A29900	(Reversal of) provisions for liabilities	( 344)	748
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	528	3,547
A31150	Accounts receivable	11,235	63,631
A31180	Other receivables	( 1,050)	29,428
A31200	Inventories	4,834	65,017
A31240	Other current assets	219	( 316)
A32125	Contract liabilities - current	( 2,367)	( 3,461)
A32130	Notes payable	( 1,879)	( 41,734)
A32150	Accounts payable	25,256	( 42,104)
A32180	Other payables	( 23,806)	( 24,228)
A32230	Other current liabilities	( 2,078)	( 2,585)
A32240	Net defined benefit plans	( 258)	( 7,882)
A33000	Cash generated from operations	62,861	110,315
A33100	Interest income	2,740	2,823
A33300	Interest paid	( 3)	( 14)
A33500	Income tax paid	( 513)	( 174)
AAAA	Net cash flows from operating activities	65,085	112,950
Cash Flows from Investing Activities
B00010	Acquisitions of financial assets at fair value through other comprehensive income	-	( 7,469)
B00040	Acquisitions of financial assets measured at amortized cost	( 104,295)	( 93,841)
B00050	Disposal of financial assets measured at amortized cost	44,450	31,840
B02700	Procurement of property, plant, and equipment	( 2,492)	( 4,703)
B02800	Proceeds from disposal of property, plant, and equipment	-	9
B04500	Procurement of intangible assets	-	( 350)
BBBB	Net cash flows used in investing activities	( 62,337)	( 74,514)
Cash Flows from Financing Activities
C03000	Guarantee deposits received	1	1
C04020	Repayment of the principal portion of lease liabilities	( 1,196)	( 1,175)
CCCC	Net cash flows used in financing activities	( 1,195)	( 1,174)
DDDD	Effect of exchange rate changes on cash and cash equivalents	1,774	1,094
EEEE	Net increase in cash and cash equivalents	3,327	38,356
E00100	Cash and cash equivalent at beginning of period	272,248	286,331
E00200	Cash and cash equivalent at end of period	$ 275,575	$ 324,687

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

RUBY TECH CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Three Months Ended March 31, 2025 and 2024

(Unless otherwise noted, amounts are in thousands of New Taiwan dollars)

Company History

Ruby Tech Corporation (hereinafter referred to as the “Company”) was established in Taipei in July 1981, and commenced operations in the same month, with its principal business being the research, manufacturing, and trading of optical fiber network equipment for central offices and customer premises, network management switches, and outdoor wireless networking equipment.

The company’s shares have been traded on the TPEx since September 8, 2009.

The consolidated financial statements are expressed in New Taiwan dollars, which is the functional currency of the Company.

Date and Procedures for Approving Financial Reports

The consolidated financial report was approved by the Board of Directors on May 5, 2025.

New Standards, Amendments and Interpretations Adoptions

(1) First-time adoption of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations (IFRIC), and Standing Interpretations Committee (SIC) (collectively, “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (hereinafter referred to as “FSC”).

The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the accounting policies of the merged company.

(2) The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New/Amendment/Amended Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7: “Amendments to the Classification and Measurement of Financial Instruments” concerning the application guidelines for the classification of financial assets	January 1, 2026 (Note 1)

Note 1: The amendments are applicable to annual reporting periods beginning on or after January 1, 2026. Businesses may wish to apply the amendment early, starting from January 1, 2025.

Amendments to IFRS 9 and IFRS 7: "Amendments to the Classification and Measurement of Financial Instruments" concerning the application guidelines for the classification of financial assets

The amendments primarily revise the classification criteria for financial assets, including:

(1) If a financial asset includes a contingent feature that alters the timing or amount of contractual cash flows, and the nature of this contingency is not directly linked to changes in basic lending risks and costs (e.g., whether the debtor meets a specific carbon emission reduction target), such a financial asset can still be classified as solely payments of principal and interest (SPPI) on the principal amount outstanding, provided it meets the following two conditions:

All possible scenarios (both before and after the occurrence of the contingency) result in contractual cash flows that are solely payments of principal and interest on the principal amount outstanding; and
The contractual cash flows under all possible scenarios do not differ significantly from the cash flows of a financial instrument with the same contractual terms but without the contingent feature.

(2) Stipulates that financial assets with non-recourse rights refer to the business's ultimate right to collect cash flows, which is contractually limited to cash flows generated by specific assets.

(3) Clarifies that contract-linked instruments establish multiple layers of securities through a waterfall payment structure to establish the payment priorities of financial asset holders. This creates a concentration of credit risk and results in disproportionate distribution of cash shortfalls from the underlying pool across various levels of securities.

Upon initial application of the amendment, it should be applied retroactively but there is no need to restate the comparative periods. The impact of the initial application should be recognized on the date of initial application. However, if the business chooses to restate without using hindsight, it may choose to restate the comparative period.

As of the approval date of the consolidated financial statements, the merged company is still in the process of evaluating the impact of the amendment on its financial position and financial performance.

(3) The IFRS Accounting Standards issued by the IASB but not yet endorsed and issued into effect by the FSC:

New/Amendment/Amended Standards and Interpretations	Effective Date Issued by IASB (Note 1)
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
Amendments to IFRS 9 and IFRS 7: "Amendments to the Classification and Measurement of Financial Instruments" concerning the application guidelines for the derecognition of financial liabilities	January 1, 2026

New/Amendment/Amended Standards and Interpretations	Effective Date Issued by IASB (Note 1)
Amendments to IFRS 9 and IFRS 7: "Contracts Referencing Nature-dependent Electricity"	January 1, 2026
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be confirmed
IFRS 17 “Insurance Contracts”	January 1, 2023
IFRS 17 “Amendments”	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027

Note 1: Unless otherwise stated, the newly issued/amended/revised standards or interpretations are effective for annual reporting periods beginning on or after the respective dates.

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

If the merged company sells or contributes assets to an associate (or joint venture), or if the merged company loses control over a subsidiary but retains significant influence (or joint control) over that subsidiary, and if the aforementioned assets or former subsidiary meet the definition of a “business” under IFRS 3 “Business Combinations,” the merged company shall fully recognize the gains or losses arising from such transactions.

Furthermore, if the merged company sells or contributes assets to an associate (or a joint venture), or if the merged company loses control of a subsidiary in a transaction with an associate (or a joint venture) while retaining significant influence (or joint control) over the subsidiary, and if the aforementioned assets or the former subsidiary do not meet the definition of a “business” under IFRS 3, the merged company shall recognize the resulting gain or loss only to the extent of the unrelated investors’ interests in that associate (or joint venture), i.e., the portion of the gain or loss attributable to the interest of the merged company shall be eliminated.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18, “Presentation and Disclosure in Financial Statements,” replaces IAS 1, “Presentation of Financial Statements.” Here are the main points regarding the replacement of IAS 1:

The income statement should classify revenue and expense items into operating, investing, financing, income tax, and discontinued operations categories.
The income statement should present totals and subtotals, including operating profit or loss, profit or loss before financing and income tax, and profit or loss.

Guidance for Aggregation and Disaggregation: The merged company should identify and classify assets, liabilities, equity, income, expenses, and cash flows based on shared characteristics. This ensures each line item in the primary financial statements shares at least one similar characteristic. Items with dissimilar characteristics should be disaggregated in both the primary financial statements and notes. The label "other" should only be used when no more informative label is available.
Increased Disclosure of Management-Defined Performance Measures: The merged company communicates its management's view of an aspect of its overall financial performance, it should disclose this in a single note within the financial statements. This note should include a description of the measure, how it is calculated, a reconciliation to the most directly comparable IFRS-specified subtotal or total, and the effects of tax and non-controlling interests on the reconciling items.
Amendments to IFRS 9 and IFRS 7: "Amendments to the Classification and Measurement of Financial Instruments" concerning the application guidelines for the derecognition of financial liabilities

The amendments stipulate that when an entity uses an electronic payment system to settle a financial liability in cash, the liability may be derecognized before the settlement date if the following conditions are met:

The entity does not have the practical ability to withdraw, stop, or cancel the payment instruction;
The entity does not have the practical ability to access the cash that will be used for settlement due to the payment instruction; and
The settlement risk associated with the electronic payment system is not significant.

The merged company should apply the amendments retroactively but there is no need to restate the comparative periods. The impact of the initial application should be recognized on the date of the initial application.

In addition to the aforementioned effects, as of the approval date of the consolidated financial statements, the merged company is still in the process of evaluating the other impacts of each amendments to standards and interpretations on its financial position and financial performance. The relevant impacts will be disclosed upon completion of the assessment.

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Summary of Significant Accounting Policies

(1) Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRS Accounting Standards endorsed and issued into effect by the Financial Supervisory Commission.

(2) Basis of Preparation

Except for financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of defined benefit obligations less the fair value of plan assets, these consolidated financial statements have been prepared on the historical cost basis.

The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 inputs refers to an unobservable input for an asset or liability.

(3) The Criteria for Classification of Assets and Liabilities as Current or Non-Current

Current assets including:

Assets held primarily for trading purposes;
Assets expected to be realized within twelve months after the balance sheet date; and
Cash and cash equivalents (excluding those restricted for exchange or settlement of liabilities due after more than 12 months from the balance sheet date).

Current liabilities including:

Liabilities held primarily for trading purposes.
Liabilities due for settlement within 12 months after the balance sheet date, and
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Liabilities for which the entity does not have an unconditional right to defer settlement for at least 12 months after the balance sheet date.

Assets or liabilities that are not classified as current assets or current liabilities are classified as non-current assets or non-current liabilities.

(4) Merger Basis

This consolidated financial statement includes the financial statements of the Company and entities controlled by the Company (subsidiaries). The financial statements of the subsidiaries have been adjusted to align their accounting policies with those of the merged company. In preparing the consolidated financial statements, all intra-group transactions, account balances, revenues, and expenses have been fully eliminated.

When the change in the ownership interest of a subsidiary does not result in a loss of control for the parent company, it is accounted for as an equity transaction. The carrying amounts of the parent's equity and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the parent.

Details of subsidiaries, shareholding ratios, and business operations are provided in Note 12 and Appendix 2.

(5) Foreign Currency

In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, foreign currency monetary items are translated at the closing rate of exchange. Exchange differences arising on the settlement of monetary items or on translating monetary items are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value in foreign currencies are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the translation of such items are recognized in profit or loss for the period, except for exchange differences arising on the translation of items whose fair value changes are recognized in other comprehensive income, in which case such exchange differences are recognized in other comprehensive income.

At the cost of historical measurement, foreign currency non-monetary items are translated at the exchange rates prevailing on the transaction dates and are not restated.

When preparing consolidated financial statements, the assets and liabilities of the Company and its foreign operations are translated into New Taiwan Dollars at the exchange rates prevailing at the balance sheet date. Income and expense items are

12 -

translated at the average exchange rates for the period, and the resulting exchange differences are recognized in other comprehensive income.

(6) Inventories

Inventories consist of merchandise, finished goods, work in progress, and raw materials. Inventories are measured at the lower of cost and net realizable value. The comparison between cost and net realizable value is conducted on an item-by-item basis, except for items within the same category of inventories. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories is calculated using the weighted-average method.

(7) Property, Plant and Equipment

Property, plant and equipment are initially recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Except for self-owned land, which is not depreciated, property, plant and equipment are depreciated separately over their useful lives on a straight-line basis for each significant portion. The merged company reviews the estimated useful life, residual value and depreciation method at least at the end of each year, and defers the impact of changes in applicable accounting estimates.

When property, plant and equipment are derecognized, the difference between the net disposal proceeds and the carrying amount of the assets is recognized in profit or loss for the current period.

(8) Intangible Assets

Acuired Separately

Intangible assets with finite useful lives acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their estimated useful lives, and the merged company reviews the estimated useful lives, residual values, and amortization methods at the end of each year, and prospectively applies the effects of changes in accounting estimates. Intangible assets with indefinite useful lives are stated at cost less accumulated impairment losses.

Derecognition

When an intangible asset is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss for the current period.

13 -

(9) Impairment of Property, Plant and Equipment, Right-Of-Use Assets and Intangible Assets

The merged company assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets, and intangible assets may be impaired. If any indication of impairment exists, the recoverable amount of the asset is estimated. If it is not possible to estimate the recoverable amount of an individual asset, the merged company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

For intangible assets with indefinite useful lives, impairment tests are conducted at least annually and whenever there is an indication of impairment.

The recoverable amount is the higher of fair value less costs to sell and its value in use. When the recoverable amount of an individual asset or cash-generating unit is less than its carrying amount, the carrying amount of that asset or cash-generating unit is reduced to its recoverable amount, and an impairment loss is recognized in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but the increased carrying amount should not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years, net of amortization or depreciation. A reversal of an impairment loss is recognized in profit or loss.

(10) Financial Instruments

The financial assets and financial liabilities are recognized on the consolidated balance sheet when the merged company becomes a party to the contractual provisions of the instrument.

When originally recognizing financial assets and financial liabilities, if the financial assets or financial liabilities are not measured at fair value through profit or loss, they are measured at fair value plus directly attributable transaction costs incurred in acquiring or issuing the financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial Assets

The conventional trading of financial assets adopts trade date accounting for recognition and derecognition.

(1) Types of Measurement

The types of financial assets held by the merged company are financial assets at fair value through profit or loss, financial assets measured at amortized cost, and investments in equity instruments at fair value through other comprehensive income.

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A. Financial Assets Measured at Fair Value Through Profit or Loss

Financial assets at fair value through profit or loss include financial assets mandatorily measured at fair value through profit or loss. Financial assets mandatorily measured at fair value through profit or loss include investments in equity instruments not designated as at fair value through other comprehensive income.

Through profit or loss, financial assets at fair value are measured at fair value, with dividends and interest recognized as other income and interest income, respectively, while remeasurement gains or losses are recognized as other gains and losses. For the determination of fair value, please refer to Note 28.

B. Financial Assets at Amortized Cost

The following sentence is classified as financial assets measured at amortized cost if the merged company’s investments in financial assets meet the following two conditions simultaneously:

a. The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b. The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized cost - current, notes receivable, accounts receivable and other receivables) are measured at amortized cost less any impairment loss after initial recognition, with any foreign exchange gain or loss recognized in profit or loss, using the effective interest method to determine the total carrying amount.

Except for the following two situations, interest income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset.

a. For purchased or originated credit-impaired financial assets, interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset.
b. For financial assets that were not purchased or originated as credit-impaired, but subsequently became credit-impaired, interest revenue should be calculated by applying the effective interest rate to the amortized cost of the financial assets from the reporting period after the credit impairment occurred.

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Cash equivalents include time deposits and securities sold under repurchase agreements that are highly liquid and can be converted into fixed amounts of cash at any time with minimal risk of value changes within three months from the date of acquisition, and are used to meet short-term cash commitments.

C. Equity Investments Measured at Fair Value Through Other Comprehensive Income

At the time of initial recognition, the merged company may make an irrevocable election to designate investments in equity instruments that are not held for trading and not contingent consideration recognized by an acquirer in a business combination as at fair value through other comprehensive income.

The investments in equity instruments at fair value through other comprehensive income are measured at fair value, with subsequent fair value changes presented in other comprehensive income and accumulated in other equity. Upon disposal of the investments, the accumulated gains or losses are directly transferred to retained earnings, not reclassified to profit or loss.

The dividend from investment in equity instruments measured at fair value through other comprehensive income is recognized in profit or loss when the merged company’s right to receive payment is established, unless the dividend clearly represents a recovery of part of the investment cost.

(2) Impairment of Financial Assets

The merged company assesses the impairment loss of financial assets measured at amortized cost (including accounts receivable) based on expected credit losses on each balance sheet date.

Accounts receivable is recognized with an allowance for expected credit losses over the remaining period. For other financial assets, an assessment is made at each reporting date as to whether the credit risk has increased significantly since initial recognition. If credit risk has not increased significantly, an allowance for 12-month expected credit losses is recognized.

The expected credit loss is a weighted average credit loss with the risk of default as the weight. The 12-month expected credit loss represents the expected credit loss arising from possible default events within 12 months after the reporting date of the financial instrument, while the lifetime expected credit loss represents the expected credit losses arising from all possible default events over the expected life of the financial instrument.

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For internal credit risk management purposes, the merged company determines that the following situations represent a default of a financial asset without taking into account any collateral held:

A. There is internal or external information indicating that it is no longer probable that the debtor will be able to pay its credit obligations in full.

B. Over 180 days past due unless there is reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

With respect to impairment of financial assets, impairment losses on all financial assets are deducted through an allowance account from their carrying amounts, except for investments in equity instruments measured at fair value through other comprehensive income, for which the impairment loss is recognized in other comprehensive income and does not reduce the carrying amount.

(3) Derecognition of Financial Assets

The merged company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another enterprise.

When a financial asset measured at amortized cost is derecognized in its entirety, the difference between its carrying amount and the consideration received is recognized in profit or loss. Upon derecognition of an investment in an equity instrument measured at fair value through other comprehensive income in its entirety, the cumulative gain or loss is directly transferred to retained earnings without reclassification to profit or loss.

Financial Liabilities

(1) Subsequent Measurement

All financial liabilities are measured at amortized cost using the effective interest method.

(2) Derecognition of Financial Liabilities

When derecognizing a financial liability, the difference between its carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

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(11) Provisions for Liabilities

The amount recognized as a provision for liabilities is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Provisions are measured at the present value of the estimated cash flows required to settle the obligation.

The obligation for product warranty to ensure that products comply with agreed-upon specifications is recognized as revenue for the related goods is recognized, based on management’s best estimate of the expenditure required to settle the merged company’s obligation.

(12) Recognition of Revenue

After identifying the performance obligations in customer contracts, the merged company will allocate the transaction price to the various performance obligations and recognize revenue as each performance obligation is satisfied.

Sales of Goods Revenue

Revenue from the sale of goods is derived from the sale of optical fiber network equipment. Since after fulfilling the transaction terms for optical fiber network equipment products, customers have determined pricing and usage rights for the goods and bear the primary responsibility for resale, as well as the risk of obsolescence, the merged company recognizes revenue and accounts receivable at that point. Advance receipts from product sales are recognized as contract liabilities prior to satisfying the performance obligations under the transaction terms.

During toll processing, the control of ownership over the processed products does not transfer, so revenue is not recognized at the time of toll processing.

Provision of Services

The services revenue is derived from commodity inspection services revenue, which is recognized when the services are rendered.

(13) Leases

The merged company assesses whether a contract is or contains a lease on the date of establishment of the contract.

The Merged Company as the Lessor

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Under operating leases, lease payments, net of lease incentives received, are recognized as income on a straight-line basis over the respective lease terms.

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The Merged Company as the Lessee

Except for low-value asset leases and short-term leases to which recognition exemptions apply, and for which lease payments are recognized as an expense on a straight-line basis over the lease term, right-of-use assets and lease liabilities are recognized for all other leases at the commencement date of the lease.

The right-of-use assets are initially measured at cost (including the initial measurement amount of the lease liabilities, lease payments made before the lease commencement date less any lease incentives received, initial direct costs, and estimated costs for restoring the underlying asset), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, with adjustments for any remeasurement of the lease liabilities. Right-of-use assets are presented separately in the consolidated balance sheets.

Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease to the earlier of the end of the useful life or the end of the lease term.

The lease liability is initially measured at the present value of the lease payments (including fixed payments). If the interest rate implicit in the lease is readily determinable, the lease payments are discounted using that rate. If that rate is not readily determinable, the lessee’s incremental borrowing rate is used.

Subsequently, the lease liabilities are measured at amortized cost using the effective interest method, and interest expenses are allocated over the lease term. The lease liability is presented separately on the consolidated balance sheet.

(14) Defined Benefit Retirement Benefits

The retirement benefit cost for the interim period is calculated on a year-to-date basis using the actuarially determined pension cost rate at the end of the prior year, adjusted for significant market fluctuations since that time and for significant plan amendments, curtailments, or other significant one-time events.

For further details, refer to the summary of significant accounting policies in the 2024 consolidated financial statements.

(15) Income Tax Expense

The income tax expense is the sum of current income tax and deferred income tax. Income tax for the interim period is assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

For further details, refer to the summary of significant accounting policies in the 2024 consolidated financial statements.

19 -

20 -

5. Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty

In applying accounting policies, management of the merged company is required to make judgments, estimates and assumptions about matters that are inherently uncertain due to a lack of available information from other sources, based on historical experience and other relevant factors. Actual results may differ from these estimates.

When developing significant accounting estimates, the merged company considers the potential impact of U.S. reciprocal tariff measures on cash flow projections, growth rates, discount rates, and profitability, among other significant estimates. The management will continually review the estimates and basic assumptions. If the modification of estimates affects only the current period, it is recognized in the period of modification; if the modification of accounting estimates affects both the current period and future periods, it is recognized in the period of modification and future periods.

Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty

Impairment of Inventories

The net realizable value of inventories is estimated based on the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale, which is estimated based on current market conditions and historical sales experience of similar products. Changes in market conditions may materially impact these estimates.

6. Cash and Cash Equivalents

	March 31, 2025	December 31, 2024	March 31, 2024
Cash on hand and working capital	$ 344	$ 369	$ 377
Checks and demand deposits	21,210	32,416	36,560
Cash equivalents
Bank time deposits with an original maturity within 3 months	40,000	84,850	143,550
Securities sold under repurchase agreements	214,021	154,613	144,200
	$ 275,575	$ 272,248	$ 324,687

The market interest rate ranges for bank deposits and securities sold under repurchase agreements on the balance sheet date are as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Cash in banks	0.005%~1.46%	0.005%~1.46%	0.005%~1.45%
Securities sold under repurchase agreements	1.42%~4.57%	1.33%~4.75%	0.85%~5.35%

Current Financial Assets Measured at Fair Value Through Profit or Loss

	March 31, 2025	December 31, 2024	March 31, 2024
Domestic investment
Domestic listed (OTC) and emerging shares	$ 5,629	$ 5,099	$ 6,976
Domestic unlisted shares	20,084	18,365	26,959
	$ 25,713	$ 23,464	$ 33,935

Current Financial Assets Measured at Fair Value Through Other Comprehensive Income

	March 31, 2025	December 31, 2024	March 31, 2024
Domestic investment
Domestic listed (OTC) and emerging shares	$ 36,215	$ 39,218	$ 39,958
Domestic unlisted shares	28,024	21,820	32,349
Subtotal	64,239	61,038	72,307
Overseas investment
Overseas unlisted shares	19,393	19,393	-
	$ 83,632	$ 80,431	$ 72,307

The merged company invests in accordance with its medium- and long-term strategic purposes and expects to make profits through long-term investment. The management of the merged company believes that recognizing short-term fluctuations in fair value of these investments in profit or loss would be inconsistent with the aforementioned long-term investment plans. Therefore, they choose to designate these investments as measured at fair value through other comprehensive income.

Current Financial Assets Measured at Amortized Cost

	March 31, 2025	December 31, 2024	March 31, 2024
Time deposits with original maturities over 3 months (1)	$ 386,569	$ 343,493	$ 243,395
Pledged time deposit certificates (2)	16,000	16,000	16,000
Securities sold under repurchase agreements with maturities over 3 months (3)	16,880	-	51,000
	$ 419,449	$ 359,493	$ 310,395

(1) As of March 31, 2025, December 31, 2024 and March 31, 2024, the range of interest rates on time deposits with original maturities over 3 months were 1.10% to 1.745%, 1.10% to 1.745% and 1.20% to 1.69% per annum, respectively.

(2) As of March 31, 2025, December 31, 2024 and March 31, 2024, the interest rate ranges for pledged time deposits were 1.285% to 1.69% per annum. For information on pledged financial assets measured at amortized cost, refer to Note 30.

(3) As of March 31, 2025 and 2024, the range of interest rates for securities sold under repurchase agreements with maturities over 3 months were 1.45% and 1.23% to 5.40% per annum, respectively.

10. Notes Receivable, Accounts Receivable and Other Receivables

	March 31, 2025	December 31, 2024	March 31, 2024
Notes receivable
Arising from operations	$ -	$ 528	$ -
Accounts receivable
Measured at amortized cost
Total carrying amount	$ 177,640	$ 185,576	$ 296,764
Less: Allowance for loss	( 2,039 )	( 2,078 )	( 2,142 )
	$ 175,601	$ 183,498	$ 294,622
Other receivables
Receivable tax refund - business tax	$ 4,784	$ 3,734	$ 3,700
Others	370	325	284
	5,154	4,059	3,984
Less: Allowance for loss	-	-	-
	$ 5,154	$ 4,059	$ 3,984

Accounts receivable

The merged company’s average credit period for sales of goods and finished products ranges from 30 to 60 days. The policy adopted by the merged company is to rate major customers using available financial information and historical transaction records.

To mitigate credit risk, the management of the merged company has assigned a dedicated unit responsible for determining credit limits, approving credit, and other monitoring procedures to ensure appropriate actions have been taken to recover overdue receivables. Additionally, the merged company reviews the recoverable amount of each receivable on the balance sheet date to ensure that appropriate impairment losses have been recognized for uncollectible receivables. When necessary, the merged company also purchases accounts receivable credit insurance to reduce the risk of financial losses arising from delinquencies. Consequently, the management of the merged company believes that its credit risk has been significantly reduced.

The merged company adopts the simplified approach under IFRS 9 to recognize the allowance for credit losses for accounts receivable based on expected credit losses over the duration. Expected credit losses over the duration are calculated using a provision matrix that considers the customer’s past default records, current financial position, industry economic situation, and also takes into account GDP forecasts and industry prospects. As the merged company’s credit loss experience shows no significant difference in the loss pattern across different customer groups, the provision matrix is not further differentiated by customer groups, but is determined

by the expected credit loss rate solely based on the number of days accounts receivable are passed due.

If there is evidence that the counterparty is in severe financial difficulty and the merged company cannot reasonably expect to recover the amount, for example, if the counterparty is undergoing liquidation or the debt is overdue for more than 180 days, the merged company recognizes a 100% allowance for credit losses. However, the merged company continues its pursuit for recovery, and any amount recovered is recognized in profit or loss.

Based on the provision matrix, the merged company measures the allowance for credit losses on accounts receivable as follows:

March 31, 2025

	Not Overdue	1 to 30 Days Overdue	31 to 60 Days Overdue	61 to 90 Days Overdue	91 to 180 Days Overdue	Overdue for More Than 181 Days	Total
Expected credit losses	0.02%	0.11%	1.09%	3.12%	20.17%	100%
Total carrying amount	$145,829	$29,645	$188	$-	$-	$1,978	$177,640
Allowance for losses (expected credit losses during the duration)	(29)	(32)	$-	$-	$-	(1,978)	(2,039)
Amortized cost	$145,800	$29,613	$188	$-	$-	$-	$175,601

December 31, 2024

	Not Overdue	1 to 30 Days Overdue	31 to 60 Days Overdue	61 to 90 Days Overdue	91 to 180 Days Overdue	Overdue for More Than 181 Days	Total
Expected credit losses	0.02%	0.11%	1.09%	3.12%	20.17%	100%
Total carrying amount	$168,094	$10,120	$5,365	$19	$-	$1,978	$185,576
Allowance for losses (expected credit losses during the duration)	(33)	(11)	(56)	$-	$-	(1,978)	(2,078)
Amortized cost	$168,061	$10,109	$5,309	$19	$-	$-	$183,498

March 31, 2024

	Not Overdue	1 to 30 Days Overdue	31 to 60 Days Overdue	61 to 90 Days Overdue	91 to 180 Days Overdue	Overdue for More Than 181 Days	Total
Expected credit losses	0.03%	0.13%	1.16%	3.30%	21.16%	100%
Total carrying amount	$216,626	$77,965	$195	$-	$-	$1,978	$296,764
Allowance for losses (expected credit losses during the duration)	(64)	(99)	(1)	$-	$-	(1,978)	(2,142)
Amortized cost	$216,562	$77,866	$194	$-	$-	$-	$294,622

The changes in allowance for doubtful accounts are as follows:

	Three Months Ended March 31
	2025	2024
Balances at the beginning of the period	$ 2,078	$ 2,172
Add: Reversal of impairment losses in the current period	(39)	(30)
Balances at the end of the period	$ 2,039	$ 2,142

Compared to the beginning balance, the total carrying amount of accounts receivable decreased by $7,936 thousand and $56,942 thousand as of March 31, 2025 and 2024, respectively, and the allowance for losses decreased by $39 thousand and $30 thousand, respectively.

Other receivables

The other receivables of the merged company as of March 31,2025, December 31, 2024 and March 31,2024, were primarily tax refund receivable. Except for tax refund receivable, the remaining receivables were mainly within 90 days (based on the entry date).

The merged company measures the allowance for doubtful accounts for other receivables based on the probability of collection. After evaluating the probability of collection, it is unlikely that the accounts will be uncollectible, so no allowance for doubtful accounts is required.

11. Inventories

	March 31, 2025	December 31, 2024	March 31, 2024
Merchandise	$ 858	$ 698	$ 1,178
Finished good	26,961	50,908	73,821
Work in progress	32,933	16,101	59,186
Raw materials	89,216	97,823	137,782
	$ 149,968	$ 165,530	$ 271,967

The nature of cost of goods sold is as follows:

	Three Months Ended March 31
	2025	2024
Cost of goods sold	$ 154,138	$ 244,130
Loss for inventory depreciation and slow-moving inventories	10,728	2,196
	$ 164,866	$ 246,326

The net realizable value of inventories decreased in the three months ended March 31, 2025 and 2024 due to the recognition of inventory valuation losses resulting from an increase in the age of inventories.

12. Subsidiaries

Subsidiaries included in the consolidated financial statements

The entities that shall be included in the consolidated financial statements are as follows:

Name of Investee	Name of Subsidiaries	Business Nature	Percentage of Shareholding
			March 31, 2025	December 31, 2024	March 31, 2024
Ruby Tech Corporation	GRAND IMPACT TECHNOLOGY LIMITED	Investment in related businesses	100%	100%	100%
GRAND IMPACT TECHNOLOGY LIMITED	Ruby Tech (Beijing) Co., Ltd.	Computer peripheral equipment trading business.	100%	100%	100%

13. Property, Plant and Equipment

	Self-Owned Land	Buildings	Machinery and Equipment	Transportation Equipment	Office Equipment	Lease Improvements	Other Equipment	Total
Cost
Balance as of January 1, 2025	$185,892	$97,331	$36,766	$2,780	$15,239	$974	$37,062	$376,044
Addition	-	834	393	-	524	-	741	2,492
Net exchange differences	-	737	-	-	20	-	-	757
Balance as of March 31, 2025	$185,892	$98,902	$37,159	$2,780	$15,783	$974	$37,803	$379,293
Accumulated Depreciation
Balance as of January 1, 2025	$-	$42,422	$27,010	$1,325	$9,051	$974	$24,197	$104,979
Depreciation expense	-	1,014	784	115	291	-	628	2,832
Net exchange differences	-	342	-	-	19	-	-	361
Balance as of March 31, 2025	$-	$43,778	$27,794	$1,440	$9,361	$974	$24,825	$108,172
Net amount as of March 31, 2025	$185,892	$55,124	$9,365	$1,340	$6,422	$-	$12,978	$271,121
Net amount as of December 31, 2024 and January 1, 2025	$185,892	$54,909	$9,756	$1,455	$6,188	$-	$12,865	$271,065
Cost
Balance as of January 1, 2024	$185,892	$86,333	$39,654	$5,274	$12,069	$974	$38,880	$369,076
Addition	-	-	725	1,160	82	-	2,736	4,703
Disposal	-	-	-	(3,654)	-	-	-	(3,654)
Net exchange differences	-	841	-	-	23	-	-	864
Balance as of March 31, 2024	$185,892	$87,174	$40,379	$2,780	$12,174	$974	$41,616	$370,989
Accumulated Depreciation
Balance as of January 1, 2024	$-	$41,757	$28,879	$4,532	$9,492	$974	$26,342	$111,976
Depreciation expense	-	699	824	98	210	-	1,036	2,867
Disposal	-	-	-	(3,654)	-	-	-	(3,654)
Net exchange differences	-	367	-	-	21	-	-	388
Balance as of March 31, 2024	$-	$42,823	$29,703	$976	$9,723	$974	$27,378	$111,577
Net amount as of March 31, 2024	$185,892	$44,351	$10,676	$1,804	$2,451	$-	$14,238	$259,412

For the three months ended March 31, 2025 and 2024, as there were no indications of impairment, the merged company did not perform an impairment assessment.

The depreciation expenses are provided on a straight-line basis over the following estimated useful lives:

Buildings
- Plant main buildings 21 - 50 years
- Electromechanical power equipment 5 - 8 years
- Engineering systems 3 - 5 years
- Parking lot 18 years
- Machinery and equipment 3 - 5 years
- Transportation equipment 5 years
- Office equipment 3 - 8 years
- Lease improvements Over the shorter of the useful life or lease term
- Other equipment 3 years

14. Lease Agreements

(1) Right-of-use assets

	March 31, 2025	December 31, 2024	March 31, 2024
Carrying amount of right-of-use asset
Buildings	$ 4,940	$ 1,457	$ 4,739
Transportation equipment	98	182	434
	$ 5,038	$ 1,639	$ 5,173
	Three Months Ended March 31
---	---	---
	2025	2024
Additions to right-of-use assets	$ 4,587	$ -
Depreciation expense of right-of-use assets
Buildings	$ 1,104	$ 1,094
Transportation equipment	84	84
	$ 1,188	$ 1,178

In addition to the increases and recognition of depreciation expenses as listed above, the merged company did not experience any significant subleases or impairment of its right-of-use assets during the periods for the three months ended March 31, 2025, and 2024, respectively.

(2) Lease liabilities

	March 31, 2025	December 31, 2024	March 31, 2024
Carrying amount of lease liabilities
Current	$ 2,926	$ 1,649	$ 4,544
Non-current	$ 2,114	$ -	$ 647

The discount rate range for lease liabilities is as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Buildings	1.00% ~ 1.25%	1.00%	1.00%
Transportation equipment	0.75%	0.75%	0.75%

The merged company leased several buildings for use as factories, with a lease term of 2 years. At the end of the lease term, the merged company does not have the preferential right to purchase the leased buildings, and it is agreed that without the consent of the lessor, the merged company shall not sublease, transfer, assign or use the leased property in whole or in part by others in any other way.

The merged company also leases transportation equipment for use as official vehicles, with a lease term of 3 years.

(3) Other lease information

	Three Months Ended March 31
	2025	2024
Short-term lease expense	$ -	$ 297
Low-value asset lease expenses	$ 24	$ 22
Total cash outflow from leases	$ 1,223	$ 1,508

The merged company chose to apply the recognition exemption for short-term leases of buildings and low-value asset leases of certain office equipment, without recognizing the related right-of-use assets and lease liabilities for those leases.

Other Intangible Assets

	March 31, 2025	December 31, 2024	March 31, 2024
Computer software cost	$ 589	$ 830	$ 843
Golf club membership certificate	2,900	2,900	2,900
Patents	1,072	1,095	1,165
Trademarks	-	-	-
	$ 4,561	$ 4,825	$ 4,908

The merged company's golf club memberships are deemed as rights to use, and the management of the merged company believes that the merged company has the intention and ability to continuously extend the useful life, and thus it is an indefinite-lived intangible asset. Regardless of whether there are any impairment indications, an impairment test is performed annually. The entrance fees of $2,200 thousand for the golf club memberships are recorded as refundable deposits.

In addition to the recognition of amortization expenses as listed above, the merged company did not experience any significant additions, disposals, or impairments of its other intangible assets during the periods for the three months ended March 31, 2025, and 2024, respectively.

The amortization expense is provided on a straight-line basis over the following estimated useful lives:

Computer software costs 1 - 5 years

Patents 10 - 18.58 years

Trademarks 10 years

Summarized amortization expenses by function:

	Three Months Ended March 31
	2025	2024
Operating costs	$ 30	$ 28
Marketing expenses	39	38
Administrative expenses	112	107
Research and development expenses	83	310
	$ 264	$ 483

16. Other Assets

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Prepayments	$ 6,912	$ 6,887	$ 6,519
Provisional payments	119	52	-
Others	631	984	336
	$ 7,662	$ 7,923	$ 6,855
Non-current
Refundable deposits	$ 3,634	$ 3,632	$ 3,817
Overdue receivables	5,675	5,675	5,675
Less: Allowance for loss	( 5,675 )	( 5,675 )	( 5,675 )
	$ 3,634	$ 3,632	$ 3,817

Overdue receivables are collected by the merged company in accordance with legal procedures, and adequate allowances for losses are provided.

29 -

17. Notes Payable and Accounts Payable

	March 31, 2025	December 31, 2024	March 31, 2024
Notes payable
Arising from operations	$ 47,022	$ 48,901	$ 54,269
Accounts payable
Arising from operations	$ 73,632	$ 47,893	$ 79,067

The average payment terms for accounts payable by the merged company range from 30 to 90 days. The merged company has established financial risk management policies to ensure that all payables are paid within the pre-agreed credit terms.

18. Other Liabilities

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Other payables
Employee compensation payable	$ 30,083	$ 24,733	$ 45,151
Salaries and bonus payable	16,173	37,730	20,098
Directors’ remuneration payable	4,895	3,825	8,630
Leave payment payable	4,388	4,468	4,413
Others	16,882	25,431	20,556
	$ 72,421	$ 96,187	$ 98,848
Other liabilities
Receivables under custody	$ 776	$ 2,135	$ 604
Others	535	1,241	536
	$ 1,311	$ 3,376	$ 1,140
Non-current
Guarantee deposits received	$ 213	$ 208	$ 205

19. Provisions for Liabilities - Current

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Warranty	$ 1,849	$ 2,193	$ 2,330

30 -

	Balance at the beginning of the period	Provision (Reversal) for the current period	Balance at the end of the period
Three months ended March 31, 2025
Product warranty provision	$ 2,193	( $ 344 )	$ 1,849
Three months ended March 31, 2024
Product warranty provision	1,582	748	2,330

The warranty liability reserve is the present value of the merged company’s management’s best estimate of future economic benefits outflows arising from warranty obligations, based on the terms of the sales contract. This estimate is based on historical warranty experience and adjusted for new materials, process changes, or other events affecting product quality.

20. Retirement Benefit Plans

(1) Defined contribution plans

The pension system applied by the Company under the “Labor Pension Act” is a defined contribution retirement plan administered by the government. The Company contributes 6% of employees’ monthly salaries to individual accounts at the Bureau of Labor Insurance. Employees of the merged company’s subsidiaries in China are members of a retirement benefit plan operated by the Chinese government. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit plan to fund the plan. The merged company’s obligation for this government-operated retirement benefit plan is limited to contributing a specified amount.

(2) Defined benefit plans

The related retirement benefit expenses recognized for defined benefit plans during the periods for the three months ended March 31, 2025 and 2024, respectively, were calculated using the retirement benefit cost rates determined by actuarial valuations as of December 31, 2024 and 2023, respectively.

The amounts recognized in profit or loss for defined benefit plans are aggregated by function as follows:

	Three Months Ended March 31
	2025	2024
Operating costs	$ 13	$ 26
Marketing expenses	7	14
Administrative expenses	3	5
Research and development expenses	16	39
	$ 39	$ 84

31 -

21. Equity

(1) Capital – common stock

	March 31, 2025	December 31, 2024	March 31, 2024
Authorized shares (in thousands)	70,000	70,000	70,000
Authorized capital	$ 700,000	$ 700,000	$ 700,000
Number of shares issued and fully paid (in thousands)	57,784	57,784	56,103
Issued capital	$ 577,838	$ 577,838	$ 561,030

The par value of each issued ordinary share is $10, with one voting right and the entitlement to receive dividends per share.

The registered share capital reserved for the issuance of employee share option certificates is 2,000 thousand shares.

The Company, after obtaining approval from the shareholders’ meeting on June 19, 2024, and the resolution of the Board of Directors on July 4, 2024 authorizing the Chairman to proceed, conducted a capital increase by issuing 1,681 thousand new shares for free distribution. The record date for the capital increase was August 24, 2024, and the paid-in capital of the Company after the capital increase amounted to $577,838 thousand.

(2) Capital surplus

The capital surplus arising from paid-in capital in excess of par value of issuance of shares (including the issuance of ordinary shares or treasury share transactions, etc.) and the portion from donated assets may be used to offset deficits; or if the Company has no deficit, the capital surplus may be distributed as cash dividends or capitalized, provided that a certain ratio of paid-in capital shall be set aside as capital reserve each year.

The capital reserve arising from investments accounted for using the equity method, employee share options, and share warrants shall not be used for any purpose.

(3) Retained earnings and dividend policy

According to the Company’s Articles of Incorporation regarding the profit distribution policy, if there is profit after the annual final accounting, taxes shall be paid, accumulated losses shall be covered, and 10% shall be appropriated as legal reserve except when the accumulated legal reserve has reached the Company’s paid-in capital. After appropriating or reversing special reserve as required by laws or the competent authority, the Board of Directors shall propose a profit distribution proposal for the undistributed profits at the beginning of the period and submit it to the shareholders’ meeting for resolution. For the policy on the distribution of employee and director remuneration as stipulated in the Articles of Incorporation, please refer to Note 24 (7) Employee and Director Remuneration.

The Company is engaged in the high-tech industry and is currently in the growth stage of its corporate life cycle. In order to maintain a sound financial structure, meet capital expenditure requirements for sustainable development, and protect the interests of investors, the distribution of surplus is comprehensively determined by considering factors such as retained earnings, capital surplus, financial structure, and operating conditions. The company's dividends are distributed in the form of share dividends and cash dividends, with the distribution ratio determined by the company's capital, financial structure, and future funding requirements for its plans. Cash dividends shall account for no less than 10%, but the distribution method and ratio may be adjusted by resolution of the general shareholders' meeting.

An appropriation of earnings to the legal reserve shall be made until the legal reserve equals the company's paid-in capital. The legal reserve may be used to offset deficits. When the company has no deficit, the portion of legal reserve exceeding 25% of paid-in capital may be distributed in cash or capitalized.

In accordance with Order No. 1090150022 issued by the Financial Supervisory Commission, Order No. 10901500221 issued by the Financial Supervisory Commission, and the "Q&A on the Appropriation and Reversal of Special Reserves after the Adoption of International Financial Reporting Standards (IFRS)," the Company has appropriated and reversed special reserves.

The Company's Board of Directors on March 5, 2025 and the Company convened the Annual General Shareholders' Meetings on June 19, 2024, respectively, at which the proposals for distribution of surplus earnings for the years 2024 and 2023 were approved as follows:

	2024	2023
Legal reserve	$ 14,319	$ 25,510
Special reserve	$ 14,229	$ -
Cash dividends	$ 126,953	$ 168,075
Share dividends	$ -	$ 16,808
Cash dividends per share (NT$)	$ 2.2	$ 3.0
Share dividends per share (NT$)	$ -	$ 0.3

With respect to the earnings distribution for 2024, it is still subject to the resolution to be adopted at the Annual General Shareholders' Meeting scheduled for June 10, 2025.

(4) Other equity items

Exchange differences on translation of foreign financial statements

	Three Months Ended March 31
	2025	2024
Balance at the beginning of the period	($ 1,675)	($ 2,498)
Arising in the period
Exchange differences arising from the translation of the financial statements of foreign operations	440	503
Other comprehensive income for the period	440	503
Balance at the end of the period	($ 1,235)	($ 1,995)

Unrealized valuation gains and losses on financial assets measured at fair value through other comprehensive income

	Three Months Ended March 31
	2025	2024
Balance at the beginning of the period	($ 12,554)	$ 20,455
Arising in the period
Unrealized gains (losses) on equity instruments	3,201	( 10,958 )
Other comprehensive income for the period	3,201	( 10,958 )
Balance at the end of the period	($ 9,353)	$ 9,497

Treasury Shares

(1) The reasons for share buyback and the changes in the number of shares are as follows (in thousands of shares):

Reasons for Buyback	Number of Shares at the Beginning of the Period	Increase for the Period	Decrease for the Period	Number of Shares at the End of the Period
Three months ended March 31, 2025
Transfer of shares to employees	78	-	-	78
Three months ended March 31, 2024
Transfer of shares to employees	78	-	-	78

(2) The Company's Board of Directors resolved on March 23, 2020 to repurchase 800 thousand shares from March 24, 2020 to May 22, 2020 at a price ranging from $25 to $32 per share, and if the market price fell below the lower limit of the originally determined price range, the repurchase would continue. By the end of the execution period, a total of 78 thousand shares had been repurchased at a total cost of $2,341 thousand.

(3) The Securities and Exchange Act prescribes that the number of shares repurchased by a company shall not exceed 10% of the total number of issued shares, and the total amount of repurchased shares shall not exceed the sum of retained earnings, share premium, and realized capital surplus. As of the date of the Board's resolution, the Company is in compliance with the provisions of the Securities and Exchange Act.

(4) The Company's treasury shares, in accordance with securities trading laws and regulations, shall not be pledged, nor shall they entitle the Company to the distribution of dividends or voting rights.

23. Revenue

(1) Contract balances

	March 31, 2025	December 31, 2024	March 31, 2024	January 1, 2024
Accounts receivable (Note 10)	$ 175,601	$ 183,498	$ 294,622	$ 351,534
Contract liabilities - current
Sales of goods	$ 24,064	$ 26,431	$ 17,721	$ 21,182

(2) Unfinished customer contracts

The unfulfilled performance obligations of the merged company, the expected duration of their customer contracts does not exceed one year.

24. Net Income from Continuing Operations

(1) Interest income

	Three Months Ended March 31
	2025	2024
Bank deposits and others	$ 2,785	$ 2,843

(2) Other income

	Three Months Ended March 31
	2025	2024
Miscellaneous income	$ 610	$ 739

(3) Other gain and losses

	Three Months Ended March 31
	2025	2024
Gain on financial assets
Financial assets designated as fair value through profit or loss	$ 2,249	$ 314
Gain on disposal of property, plant and equipment	-	9
Net foreign exchange gain	3,725	15,231
	$ 5,974	$ 15,554

(4) Financial costs

	Three Months Ended March 31
	2025	2024
Interest on lease liabilities	$ 3	$ 14

(5) Depreciation and amortization

	Three Months Ended March 31
	2025	2024
Depreciation expenses summarized by function
Operating costs	$ 2,066	$ 2,067
Operating expenses	1,954	1,978
	$ 4,020	$ 4,045
Amortization expenses summarized by function
Operating costs	$ 30	$ 28
Operating expenses	234	455
	$ 264	$ 483

(6) Employee benefit expenses

	Three Months Ended March 31
	2025	2024
Retirement benefits (Note 20)
Defined contribution plans	$ 1,334	$ 1,348
Defined benefit plans	39	84
	1,373	1,432
Other employee benefits
Salaries and wages	37,562	43,170
Labor and health insurance expenses	2,857	2,822
Other employee benefits	1,355	1,393
	41,774	47,385
Total employee benefit expenses	$ 43,147	$ 48,817

36 -

Three Months Ended March 31

	2025	2024
Summarized by function
Operating costs	$ 8,648	$ 9,332
Operating expenses	34,499	39,485
	$ 43,147	$ 48,817

(7) Employee and directors' remuneration

In accordance with the Articles of Incorporation, the Company shall appropriate employee compensation at the rate of 7% to 10% and director compensation at a maximum rate of 2% from the pre-tax net income of the current year before deduction of the compensation for employees and directors. In accordance with the amendment to the Securities and Exchange Act in August 2024, the Company plans to propose an amendment to its Articles of Incorporation at the 2025 shareholders' meeting, stipulating that no less than 5% of the annual employee remuneration allocated for the year shall be distributed to grassroots employees.

The estimated employee (including remuneration for grassroots employees) and director compensation for the three months ended March 31 of 2025 and 2024, respectively, as follows:

Estimated Ratio

	Three Months Ended March 31
	2025	2024
Employee’s remuneration	10%	10%
Directors’ remuneration	2%	2%

Amount

	Three Months Ended March 31
	2025	2024
Employee’s remuneration	$ 5,350	$ 8,384
Directors’ remuneration	$ 1,070	$ 1,677

The employee and director compensation for 2024 and 2023 were approved by the Board of Directors on March 5, 2025 and February 27, 2024, respectively, as follows:

Amount

	2024	2023
Employee’s remuneration	$ 19,127	$ 34,766
Directors’ remuneration	$ 3,825	$ 6,953

The consolidated financial statements for the year are subject to change after their issuance date, and any changes will be treated as changes in accounting estimates and adjustments will be made in the following year.

The employee and director remuneration for 2024 had not been distributed as of May 5, 2025.

The actual amount of employee and director compensation distributed in 2023 is consistent with the recognized amount in the consolidated financial statements for 2023.

Information regarding employee and director compensation as resolved by the Company's Board of Directors can be found on the Market Observation Post System (MOPS) of the Taiwan Stock Exchange.

(8) Foreign currency translation (gain) loss

	Three Months Ended March 31
	2025	2024
Total foreign exchange gain	$ 9,667	$ 28,462
Total foreign exchange loss	( 5,942 )	( 13,231 )
Net gain	$ 3,725	$ 15,231

25. Income Tax

(1) Income taxes recognized in profit or loss

The main components of income tax expense are as follows:

	Three Months Ended March 31
	2025	2024
Current income tax
Arising in the period	$ 10,902	$ 9,996
Deferred tax
Arising in the period	( 1,972 )	4,878
Income tax expense recognized in profit or loss	$ 8,930	$ 14,874

(2) Income tax recognized in other comprehensive income

	Three Months Ended March 31
	2025	2024
Deferred Tax
Arising in the period
Translation of the financial statements of foreign operations	($ 110)	($ 125)
Income tax recognized in other comprehensive income	($ 110)	($ 125)

(3) Income tax assessments status

The income tax returns of the Company’s profit-seeking enterprise through 2022 have been examined and assessed by the Tax Authorities. The discrepancies between the assessed amount and filed amount have been properly adjusted in the respective year.

Earnings per Share

Units: NT$ per share

Three Months Ended March 31
2025	2024
Basic earnings per share	$ 0.66	$ 1.02
Diluted earnings per share	$ 0.66	$ 1.01

When calculating earnings per share, the effect of the share dividends has been retrospectively adjusted, with the ex-rights date being August 24, 2024. Due to the retroactive adjustment, the basic and diluted earnings per share for the three months ended March 31 of 2024 were changed as follows:

Units: NT$ per share

	Before retrospective adjustment	After retrospective adjustment
Basic earnings per share	$ 1.05	$ 1.02
Diluted earnings per share	$ 1.04	$ 1.01

The following presents profit and weighted average numbers of ordinary shares outstanding for calculation of earnings per share:

Net profit for the current period

Three Months Ended March 31
2025	2024
Net income used to calculate basic and diluted earnings per share	$ 38,149	$ 58,905

Number of shares

Unit of shares: Thousands of shares

Three Months Ended March 31
2025	2024
The weighted average number of ordinary shares used to calculate basic earnings per share	57,706	57,706
Effect of potential dilutive ordinary shares:
Employee’s remuneration	379	425
The weighted average number of ordinary shares used to calculate diluted earnings per share	58,085	58,131

If the merged company has the option to issue employee compensation in the form of shares or cash, when calculating diluted earnings per share, it is assumed that employee compensation will be paid in the form of shares, and the potential ordinary shares will be included in the weighted average number of outstanding shares when they have a dilutive effect to calculate the diluted earnings per share. Such dilutive effect of the potential shares should continue to be considered until approval of number of shares to be distributed to employees as compensation in the following year.

27. Capital Risk Management

The merged company undertakes capital management to ensure that all entities in the group can continue as a going concern while maximizing returns to stakeholders through the optimal balance of debt and equity.

The capital structure of the merged company consists of its net debt and equity (i.e., share capital, capital surplus, retained earnings, and other equity items).

The merged company is not required to comply with other external capital requirements.

28. Financial Instruments

(1) Fair value information - financial instruments not measured at fair value

The merged company's management believes that the carrying amounts of financial assets and financial liabilities not measured at fair value approximate their fair values or their fair values cannot be reliably measured.

(2) Fair value information - financial instruments measured at fair value on a recurring basis

Fair value measurement hierarchy

March 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through profit or loss
Domestic listed (OTC) and emerging shares	$ 5,629	$ -	$ -	$ 5,629
Domestic unlisted shares	-	-	20,084	20,084
	$ 5,629	$ -	$ 20,084	$ 25,713
Financial assets measured at fair value through other comprehensive income
Equity instrument investment
Domestic listed (OTC) and emerging shares	$ 36,215	$ -	$ -	$ 36,215
Domestic unlisted shares	-	-	28,024	28,024
Overseas unlisted shares	-	-	19,393	19,393
	$ 36,215	$ -	$ 47,417	$ 83,632

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through profit or loss
Domestic listed (OTC) and emerging shares	$ 5,099	$ -	$ -	$ 5,099
Domestic unlisted shares	-	-	18,365	18,365
	$ 5,099	$ -	$ 18,365	$ 23,464
Financial assets measured at fair value through other comprehensive income
Equity instrument investment
Domestic listed (OTC) and emerging shares	$ 39,218	$ -	$ -	$ 39,218
Domestic unlisted shares	-	-	21,820	21,820
Overseas unlisted shares	-	-	19,393	19,393
	$ 39,218	$ -	$ 41,213	$ 80,431

March 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through profit or loss
Domestic listed (OTC) and emerging shares	$ 6,976	$ -	$ -	$ 6,976
Domestic unlisted shares	-	-	26,959	26,959
	$ 6,976	$ -	$ 26,959	$ 33,935
Financial assets measured at fair value through other comprehensive income
Equity instrument investment
Domestic listed (OTC) and emerging shares	$ 39,958	$ -	$ -	$ 39,958
Domestic unlisted shares	-	-	32,349	32,349
	$ 39,958	$ -	$ 32,349	$ 72,307

There were no transfers between Level 1 and Level 3 fair value measurements in the three months ended March 31, 2025 and 2024.

41 -
Valuation techniques and inputs for Level 3 fair value measurements

Class of financial instruments	Valuation techniques and inputs
Domestic unlisted shares	The market approach using comparable companies listed on the Taiwan Stock Exchange or Over-the-Counter market is based on the transaction prices of comparable targets, taking into account the differences between the subject company and the comparable companies, and estimating the value of the subject company using appropriate valuation multiples.
Overseas unlisted shares	The market approach using comparable transactions involves referencing the transaction prices of similar or identical assets, considering the implied valuation multiples and relevant transaction information from these prices, to determine the value of the subject company.

(3) Types of financial instruments

	March 31, 2025	December 31, 2024	March 31, 2024
Financial asset
Financial assets measured at fair value through profit or loss - designated as at fair value through profit or loss	$ 25,713	$ 23,464	$ 33,935
Financial assets measured at amortized cost (Note 1)	870,995	816,092	929,988
Financial assets measured at fair value through other comprehensive income - equity instrument investment	83,632	80,431	72,307
Financial liabilities
Measured at amortized cost (Note 2)	137,536	122,225	153,892

Note1: The balance includes cash and cash equivalents, financial assets measured at amortized cost - current, notes receivable, accounts receivable and a portion of other receivables that are financial assets measured at amortized cost.

Note2: The balances include notes payable, accounts payable and a portion of other payables that are financial liabilities measured at amortized cost.

(4) Financial risk management objectives and policies

The merged company’s main financial instruments include equity investments, accounts receivable, accounts payable, and lease liabilities. The merged company’s financial management department provides services to the business units, coordinates access to domestic and international financial markets, and supervises and manages the financial risks related to the merged company’s operations through analyzing internal risk reports covering exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

The merged company has formulated “Procedures for Acquisition or Disposal of Assets” in accordance with the regulations of the competent authority, describing the control procedures for the acquisition, management, and disposal of various assets. If there is a risk assessment and the use of derivative financial instruments is adopted to hedge the exposure in order to mitigate the impact of such risks, the use of derivative financial instruments is governed by policies approved by the board of directors of the merged company, which are written principles for foreign exchange risk, interest rate risk, credit risk, the use of derivative and non-derivative financial instruments, and the investment of remaining liquidity. The internal auditors continuously review compliance with policies and exposure limits. The merged company did not engage in derivative financial instrument transactions in the three months ended March 31, 2025 and 2024.

Market risk

The main financial risks undertaken by the merged company due to its operating activities are:

(1) Foreign exchange risk

The merged company engages mainly in sales and purchases transactions denominated in U.S. dollars, which naturally hedge foreign currency positions and mitigate the effect of exchange rate fluctuations.

The carrying amounts of the merged company’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) as at the balance sheet date are set out in Note 33.

With respect to the sensitivity analysis of foreign currency risk, it primarily addresses the adverse effects arising from changes in exchange rates on foreign currency monetary items as of the end of the reporting period. If the foreign currency fluctuates by 1% against the New Taiwan dollar, the merged company’s net income after tax for the three months ended March 31, 2025 and 2024 will decrease by $1,843 thousand and $2,767 thousand, respectively.

(2) Risk of interest rate fluctuations

The merged company mainly uses its own funds to finance its operating activities, and its exposure to interest rate risk is minimal.

The merged company’s exposures to market risk of financial instruments and the manner in which it manages and measures such exposures have not changed.

42 -

43 -
Credit risk

Credit risk refers to the risk of financial loss to the merged company caused by the counterparty's failure to fulfill contractual obligations. As of the balance sheet date, the maximum credit risk exposure that could cause financial loss to the merged company due to the counterparty's failure to perform its obligations is primarily derived from the carrying amount of financial assets recognized in the consolidated balance sheet.

The merged company does not have significant credit risk exposure to any single counterparty or any group of counterparties with similar characteristics. The concentration of credit risk from counterparties for the merged company did not exceed 10% of total monetary assets in the three months ended March 31, 2025 and 2024.

The credit risk of the merged company is mainly concentrated on its customers in the Americas and Europe. As of March 31, 2025, December 31, 2024 and March 31, 2024, respectively, European customers accounted for approximately 56.76% - 52.85% and 57.19% of total accounts receivable, while American customers accounted for approximately 29.02% - 42.96% and 27.66% of total accounts receivable as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

Liquidity risk

The merged company manages and maintains adequate cash and cash equivalents to support operations and mitigate the effects of fluctuations in cash flows. The merged company's working capital is sufficient to support operations, and therefore there is no liquidity risk due to the inability to raise funds to fulfill contractual obligations.

March 31, 2025

	1 - 3 Months	3 Months to 1 Year	1-3 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 143,377	$ 49,698	$ -
Lease liabilities	982	1,944	2,114
	$ 144,359	$ 51,642	$ 2,114

Further information on the maturity analysis of lease liabilities is as follows:

	Less Than 1 Year	1-3 Years
Lease liabilities	$ 2,968	$ 2,127

December 31, 2024

44 -

	1 - 3 Months	3 Months to 1 Year	1-3 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 158,656	$ 34,325	$ -
Lease liabilities	1,002	647	-
	$ 159,658	$ 34,972	$ -

Further information on the maturity analysis of lease liabilities is as follows:

	Less Than 1 Year	1-3 Years
Lease liabilities	$ 1,654	$ -

March 31, 2024

	1 - 3 Months	3 Months to 1 Year	1-3 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 154,616	$ 77,568	$ -
Lease liabilities	1,178	3,366	647
	$ 155,794	$ 80,934	$ 647

Further information on the maturity analysis of lease liabilities is as follows:

	Less Than 1 Year	1-3 Years
Lease liabilities	$ 4,573	$ 648

29. Related Party Transactions

The transactions, account balances, revenues, and expenses between the company and its subsidiaries (entities related to the Company) are fully eliminated upon consolidation; therefore, they are not disclosed in these notes. In addition to those disclosed in other notes, transactions between the merged company and other related parties are as follows:

(1) Name of related parties and relationships

Name of Related Parties	Relationship with the Company
LUNG HWA ELECTRONICS CO., LTD.	Substantive Related Parties

(2) Operating revenue

Item	Related Party Categories	Three Months Ended March 31
		2025	2024
Sales revenue	Substantive Related Parties	$ 1,730	$ -
Other operating revenue	Substantive Related Parties	543	2,027
		$ 2,273	$ 2,027

The sales prices and collection terms between the merged company and related parties are determined according to conditions agreed upon by both parties, with no significant difference from those with non-related parties.

(3) Compensation of key management personnel

	Three Months Ended March 31
	2025	2024
Short-term employee benefits	$ 2,117	$ 2,013

The remuneration of directors and other key management personnel is determined by the Remuneration Committee based on individual performance and market trends.

Pledged Assets

The following assets of the merged company have been pledged as collateral for the customs duty-deferral arrangement:

	March 31, 2025	December 31, 2024	March 31, 2024
Pledged time deposits (accounted for as current financial assets measured at amortized cost)	$ 16,000	$ 16,000	$ 16,000

Other Matters: None.
Significant Subsequent Events: None.
Information on Foreign Currency Assets and Liabilities with Significant Impact

The following information is summarized in currencies other than the functional currencies of the merged company, with the disclosed exchange rates being the rates at which those currencies are translated into the functional currencies. Information on foreign currency assets and liabilities with significant influence:

Unit: Each Foreign Currency /NT$ thousand

March 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial Assets
Monetary items
US dollars	$ 8,736	33.20	$ 290,031
Financial Liabilities
Monetary items
US dollars	1,796	33.20	59,639
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial Assets
Monetary items
US dollars	$ 8,932	32.79	$ 292,889
Financial Liabilities
Monetary items
US dollars	1,191	32.79	39,068
March 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial Assets
Monetary items
US dollars	$ 12,837	32.00	$ 410,796
Financial Liabilities
Monetary items
US dollars	2,027	32.00	64,858

Foreign currency translation gain (loss) for the merged company is as follows:

	Three Months Ended March 31
	2025	2024
Realized	($ 779)	$ 8,136
Unrealized	4,494	7,089
	$ 3,715	$ 15,225

Notes on Disclosures

(1) Major transaction matters and

(2) Information related to reinvested enterprises

Loans to others: None.
Provision of endorsements and guarantees to others: None.
Significant marketable securities held at the end of the period (excluding investments in subsidiaries, associates, and interest in joint ventures): Appendix 1.
Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
Accounts receivable from related parties reaching $100 million or 20% of paid-in capital or more: None.
Others: Business relationships between the parent company and its subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions between them: None.
Information on reinvested businesses: Appendix 2.

(3) Information on investments in China

The name of the invested company in China, its main business items, paid-in capital, investment methods, remittance of funds in and out, shareholding ratio, investment gains and losses, carrying amount of investments at the end of the period, repatriated investment gains and losses, and the investment limit in China: Appendix 3.
The significant transactions with investee companies in China, either directly or indirectly through a third area, their prices, payment terms, and unrealized gains or losses: None.

(1) The amount and percentage of purchases and the ending balances and percentages of related accounts payable.
(2) The amount and percentage of sales revenue, and the ending balance and percentage of related accounts receivable.
(3) The amount of property transactions and the amount of profits or losses arising therefrom.
(4) The outstanding balance of endorsed or guaranteed notes receivable or provision of collaterals as of the balance sheet date and the purpose thereof.

47 -

(5) The highest balance, ending balance, range of interest rates, and total interest amount for the period of financing facilities.

(6) Other transactions that have a material impact on the current profit or loss or financial position, such as the provision or receipt of services.

35. Segment Information

Information provided to the chief operating decision maker for the purpose of resource allocation and assessment of department performance focuses on types of products and services delivered or provided. The reportable segments of the merged company are as follows:

Computer and its peripheral equipment: Department 1.

Computer and its peripheral equipment: Department 2.

(1) Department revenue and operating results

	Three Months Ended March 31, 2025
	Department 1	Department 2	Total
Segment revenue	$ 249,402	$ -	$ 249,402
Adjustments and layoffs	-	-	-
Operating revenue	$ 249,402	$ -	$ 249,402
Net profit (loss) from operations	$ 38,185	($ 472)	$ 37,713
Other income	133	477	610
Other gain and losses	5,995	-	5,995
Finance costs	( 3)	-	( 3)
Interest income	2,769	16	2,785
Segment profit	47,079	21	47,100
Adjustments and layoffs	( 21)	-	( 21)
Net profit before tax	$ 47,058	$ 21	$ 47,079
	Three Months Ended March 31, 2024
---	---	---	---
	Department 1	Department 2	Total
Segment revenue	$ 358,762	$ -	$ 358,762
Adjustments and layoffs	-	-	-
Operating revenue	$ 358,762	$ -	$ 358,762
Net profit (loss) from operations	$ 55,166	($ 509)	$ 54,657
Other income	277	462	739
Other gain and losses	15,509	-	15,509
Finance costs	( 14)	-	( 14)
Interest income	2,841	2	2,843
Segment profit (loss)	73,779	( 45)	73,734
Adjustments and layoffs	45	-	45
Net profit (loss) before tax	$ 73,824	($ 45)	$ 73,779

Interests of departments refer to the profits earned by each department.

(2) Total assets and liabilities of the segment

	Assets of Segment
	March 31, 2025	December 31, 2024	March 31, 2024
Assets of Department 1	$ 1,440,389	$ 1,389,098	$ 1,603,928
Assets of Department 2	30,155	30,119	29,156
Adjustments and layoffs	( 29,388 )	( 28,817 )	( 28,415 )
Total assets	$ 1,441,156	$ 1,390,400	$ 1,604,669
	Liabilities of Segment
---	---	---	---
	March 31, 2025	December 31, 2024	March 31, 2024
Assets of Department 1	$ 248,833	$ 239,332	$ 348,640
Assets of Department 2	788	1,323	762
Adjustments and layoffs	( 21 )	( 21 )	( 21 )
Total liabilities	$ 249,600	$ 240,634	$ 349,381

All assets and liabilities are directly attributable to each department, and there are no shared assets or liabilities to be allocated.

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RUBY TECH CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD AT THE END OF THE PERIOD

March 31, 2025

Appendix 1

Unit: Unless otherwise stated, amounts are in NT$ thousand

Holding Company	Type and Name of Marketable Securities	The Relationship Between the Issuer of Marketable Securities and the Company	Accounts	End of Period				Remarks
				Number of Shares/Units	Carrying Amount	Shareholding Ratio	Fair Value (Note 2)
Ruby Tech Corporation	Equity Securities
	Green Energy Technology Inc.	—	Current financial assets measured at fair value through profit or loss	212,000	$ -	0.05	$ -	Notes 2 and 4
	Powerchip Investment Holding Corporation	—	Current financial assets measured at fair value through profit or loss	1,041,707	20,084	0.08	20,084	Note 2
	DEXIN CORP	—	Current financial assets measured at fair value through profit or loss	294,720	5,629	0.74	5,629	Notes 2 and 3
	Powerchip Investment Holding Corporation	—	Current financial assets measured at fair value through other comprehensive income	1,041,707	20,084	0.08	20,084	Note 2
	VPowerchip Semiconductor Manufacturing Corp.	—	Current financial assets measured at fair value through other comprehensive income	250,000	3,800	0.01	3,800	Notes 2 and 3
	Vactronics Technologies Inc	—	Current financial assets measured at fair value through other comprehensive income	260,825	14,345	0.37	14,345	Notes 2 and 3
	TEX-RAY INDUSTRIAL CO.,LTD.	—	Current financial assets measured at fair value through other comprehensive income	500,000	4,750	0.21	4,750	Notes 2 and 3
	WINSTON MEDICAL SUPPLY CO., LTD.	—	Current financial assets measured at fair value through other comprehensive income	138,000	13,320	0.75	13,320	Notes 2 and 3
	Videosoft Global Co., Ltd.	—	Current financial assets measured at fair value through other comprehensive income	500,000	7,940	4.50	7,940	Note 2
	Zentera Systems, Inc.	—	Current financial assets measured at fair value through other comprehensive income	176,470	19,393	0.62	19,393	Note 2

Note 1: The term "securities" as used in this statement refers to shares, bonds, beneficial interest certificates, and securities derived from the aforementioned items that fall within the scope of IFRS 9 "Financial Instruments".
Note 2: For those measured at fair value, the amounts are presented as the balances after fair value adjustments; for those not measured at fair value, the carrying amounts are presented as the amortized cost (net of allowance for losses).
Note 3: Calculated based on the closing prices as of the end of March 2025.
Note 4: Green Energy Technology Inc. has announced the termination of its listing, and the merged company has assessed that the investment has no fair value.

RUBY TECH CORPORATION AND SUBSIDIARIES
NAMES OF INVESTED COMPANIES, LOCATIONS, AND OTHER RELEVANT INFORMATION
Three Months Ended March 31, 2025

Appendix 2

Unit: Unless otherwise stated, amounts are in NT$ thousand

Name of Investee	Name of Investee	Place of Operation	Major Business Activity	Original Investment Amount		Held at the End of the Period			Gain (Loss) Income of the Invested Company for the Current Period	Investment (Gains) Losses Recognized for the Period (Note 1)	Remarks
				At the End of the Last Period	At the End of the Number of Shares	Number of Shares	Percentage (%)	Carrying Amount
Ruby Tech Corporation	GRAND IMPACT TECHNOLOGY LIMITED	British Virgin Islands	Investment in related businesses	$ 58,581	$ 58,581	1,800,000	100	$ 29,367	$ 21	$ 21	Invested companies evaluated using the equity method
GRAND IMPACT TECHNOLOGY LIMITED	Ruby Tech (Beijing) Co., Ltd.	Beijing (China)	Computer peripheral equipment trading business.	53,471	53,471	-	100	29,367	21	21	Invested companies evaluated using the equity method

Note 1: The share of profit or loss of subsidiaries accounted for using the equity method is calculated based on the reviewed financial statements.
Note 2: Please refer to Appendix 3 for information related to the invested companies in China.
Note 3: The related account amounts of the above transactions have been eliminated in the preparation of the consolidated financial statements.

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RUBY TECH CORPORATION AND SUBSIDIARIES
INFORMATION ON INVESTMENT IN CHINA

Three Months Ended March 31, 2025

Appendix 3
Unit: Unless otherwise stated, amounts are in NT$ thousand

Name of the Invested Company in China	Major Business Activity	Paid-In Capital	Method of Investments	Accumulated Investment Amount Remitted from Taiwan at the Beginning of the Period	Amount of Investments Exported or Recovered This Period		Accumulated Investment Amount Remitted from Taiwan at the end of the Period (Note 2)	Gain (Loss) Income of the Invested Company for the Current Period	The Direct or Indirect Investment Shareholding Ratio of the Company	Current Recognition Investment (Loss) Gain (Note 3)	Carrying Amount of Investment at end of Period (Note 3)	Cumulative Investment Income Repatriated up to the Current Period
					Exported	Recovered
Ruby Tech (Beijing) Co., Ltd.	Computer peripheral equipment trading business.	$ 53,471	(Note 1)	$ 53,471	$ -	$ -	$ 53,471	$ 21	100%	$ 21	$ 29,367	$ -
Accumulated Outward Remittances from Taiwan to China at the End of the Period (Note 2)	Investment Amount Approved by the Investment Commission of the Ministry of Economic Affairs (Note 2)	Limit of Investment in China in Accordance with the Regulations of the Investment Commission of the Ministry of Economic Affairs M.O.E.A. (Note 4)
---	---	---
$53,471
(USD1,650,000)	$53,471
(USD1,650,000)	$714,934

Note 1: Reinvested in China through Grand Impact Technology Limited.
Note 2: Investments denominated in foreign currencies were recorded using the exchange rates prevailing at the time of the transactions.
Note 3: Recognized based on the financial statements reviewed by the certified public accountants of the parent company in Taiwan.
Note 4: The investment limit is the higher of 60% of net worth or $80 million.
Note 5: The related account amounts of the above transactions have been eliminated in the preparation of the consolidated financial statements.

AI assistant

Ruby Tech Corporation Interim / Quarterly Report 2025

72751_rns_2026-05-22_99c07030-ed6c-48e3-89c2-bf56d0655465.pdf

RUBY TECH CORPORATION AND SUBSIDIARIES

Introduction

Scope of Review

Conclusion

RUBY TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

5. Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty

Impairment of Inventories

6. Cash and Cash Equivalents

10. Notes Receivable, Accounts Receivable and Other Receivables

Accounts receivable

Other receivables

11. Inventories

12. Subsidiaries

13. Property, Plant and Equipment

14. Lease Agreements

(1) Right-of-use assets

16. Other Assets

17. Notes Payable and Accounts Payable

18. Other Liabilities

19. Provisions for Liabilities - Current

20. Retirement Benefit Plans

(1) Defined contribution plans

(2) Defined benefit plans

21. Equity

23. Revenue

(1) Contract balances

(2) Unfinished customer contracts

24. Net Income from Continuing Operations

(1) Interest income

(2) Other income

25. Income Tax

27. Capital Risk Management

28. Financial Instruments

29. Related Party Transactions

35. Segment Information

(1) Department revenue and operating results

AI assistant

Ruby Tech Corporation — Interim / Quarterly Report 2025

72751_rns_2026-05-22_99c07030-ed6c-48e3-89c2-bf56d0655465.pdf

RUBY TECH CORPORATION AND SUBSIDIARIES

Introduction

Scope of Review

Conclusion

RUBY TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

5. Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty

Impairment of Inventories

6. Cash and Cash Equivalents

10. Notes Receivable, Accounts Receivable and Other Receivables

Accounts receivable

Other receivables

11. Inventories

12. Subsidiaries

13. Property, Plant and Equipment

14. Lease Agreements

(1) Right-of-use assets

16. Other Assets

17. Notes Payable and Accounts Payable

18. Other Liabilities

19. Provisions for Liabilities - Current

20. Retirement Benefit Plans

(1) Defined contribution plans

(2) Defined benefit plans

21. Equity

23. Revenue

(1) Contract balances

(2) Unfinished customer contracts

24. Net Income from Continuing Operations

(1) Interest income

(2) Other income

25. Income Tax

27. Capital Risk Management

28. Financial Instruments

29. Related Party Transactions

35. Segment Information

(1) Department revenue and operating results

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