SAI — Audit Report / Information 2024

Nov 5, 2024

SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2024 AND 2023

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

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SUPERALLOY INDUSTRIAL CO., LTD.

DECEMBER 31, 2024 AND 2023 CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

TABLE OF CONTENTS

Contents Page

1.	Cover Page	1
2.	Table of Contents	2 ~ 3
3.	Independent Auditors’ Report	4 ~ 11
4.	Consolidated Balance Sheets	12 ~ 13
5.	Consolidated Statements of Comprehensive Income	14
6.	Consolidated Statements of Changes in Equity	15
7.	Consolidated Statements of Cash Flows	16 ~ 17
8.	Notes to the Consolidated Financial Statements	18 ~ 79
	(1) History and Organization	18
	(2) The Date of Authorization for Issuance of the Financial Statements	18
	and Procedures for Authorization
	(3) Application of New Standards, Amendments and Interpretations	18 ~ 19
	(4) Summary of Material Accounting Policies	20 ~ 31
	(5) Critical Accounting Judgements, Estimates and Key Sources of	31
	Assumption Uncertainty
	(6) Details of Significant Accounts	31 ~ 62

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Contents Page

(7)	Related Party Transactions	62
(8)	Pledged Assets	62
(9)	Significant Contingent Liabilities and Unrecognised Contract	62 ~ 63
	Commitments
(10)	Significant Disaster Loss	63
(11)	Significant Events after the Balance Sheet Date	63 ~ 64
(12)	Others	64 ~ 76
(13)	Supplementary Disclosures	76 ~ 77
(14)	Operating Segment Information	77 ~ 79

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of SUPERALLOY INDUSTRIAL CO.,LTD

Opinion

We have audited the accompanying consolidated balance sheets of SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES (the “Group”) as at December 31, 2024 and 2023, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

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

Basis for opinion

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

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2024 consolidated financial statements.These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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

Cut-off on sales revenue from distribution warehouse

Description

Refer to Note 4(29) for accounting policies on sales revenue recognition. For the year ended December 31, 2024, the Group’s operating revenue amounted to NTD 7,473,579 thousand.

The Group is primarily engaged in the manufacturing and sales of various types of automobile parts. The types of sale are separated into direct delivery and distribution warehouse sales. Distribution warehouse sales revenue constitutes 62.73% of operating revenue. Distribution warehouse sales revenue is recognised when customers pick-up the goods (i.e. control is transferred). The Group primarily recognised sales revenue based on the daily inventory movement reports provided by distribution warehouses. As the Group’s distribution warehouses are located globally with numerous custodians, the process of such revenue recognition involves several manual procedures, which would potentially result in inaccurate timing of revenue recognition or the discrepancy in inventory quantities between the physical inventory and accounting records. Thus, we considered the timing of sales revenue recognition of distribution warehouse as one of the key audit matters.

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How our audit addressed the matter

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

1. Obtained an understanding of the Group’s sales revenue procedures and its internal control process in order to assess the effectiveness of managements’ control over sales revenue recognition of distribution warehouse.

2. Tested the internal control of warehouse distribution (including checking the terms of transaction / timing of ownership transfer and dates of supporting documents) to confirm the accuracy of the timing of sales revenue recognition of distribution warehouse.

3. Performed cut-off procedures on sales revenue from distribution warehouses recognised during a specific period before and after the balance sheet date and verified the pick-up records of distribution warehouses; in addition, ensured that the movements of inventories indicated in the statements had been recognised in the appropriate period.

4. Performed physical inventory count and confirmation on the ending inventory quantities of distribution warehouses.

Assessment of allowance for inventory valuation losses

Description

Refer to Note 4(12) for accounting policies on inventory valuation, Note 5(2) for accounting estimates and assumptions, and Note 6(5) for the related information of allowance for inventory valuation loss. As of December 31, 2024, the total inventory and allowance for inventory valuation loss amounted to NTD 6,512,277 thousand and NTD 518,063 thousand, respectively.

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The Group’s inventories were measured at the lower of cost and net realisable value, the reasonable net realisable value was identified according to individual inventory’s number using the item by item approach. The Group provided allowance for inventory valuation losses based on usable condition of inventories that were individually identified as obsolete and damaged. As the inventory and its allowance for loss were material to the financial statements and the determination of net realisable value involved subjective judgment and estimates, we considered the assessment of allowance for inventory valuation losses as one of the key audit matters.

How our audit addressed the matter

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

1. Obtained an understanding of the Group’s nature of the operations and the industry, and assessed the reasonableness of the policies adopted in evaluating the allowance for inventory valuation losses.

2. Obtained an understanding of the Group’s warehousing control procedures, reviewed annual physical inventory count plan and participated in the annual inventory count in order to assess the classification of obsolete inventory and effectiveness of internal controls over obsolete inventory.

3. Obtained the report on net realisable value of each inventory item and checked whether the calculation logic was applied consistently to each inventory item; in addition, tested the reasonableness of the supporting documents for net realizable value.

4. Validated the accuracy of the Group’s inventory aging report used for valuation and recalculated to confirm that information in the report was in line with its policy.

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Other matter – Parent company only financial statements

We have audited and expressed an unmodified opinion on the parent company only financial statements of the SUPERALLOY INDUSTRIAL CO.,LTD as at and for the years ended December 31, 2024 and 2023.

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

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

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

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

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Auditors’ responsibilities for the audit of the consolidated financial

statements

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

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

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

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

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

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

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

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

Liu, Mei Lan[Hung, Shu-Hua ] For and on behalf of PricewaterhouseCoopers, Taiwan March 3, 2025

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

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

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(4) 6(4) 6(5) 6(2) 6(3) and 8 6(6) and 8 6(7) 6(8) 6(27) 6(9)	December 31, 2024 AMOUNT % $ 2,153,486 12 19,315 - 930 - 1,054,347 6 27,629 - 5,994,214 34 79,707 1 9,329,628 53 35,941 - 35,480 - 7,819,404 45 11,414 - 8,253 - 174,900 1 104,524 1 8,189,916 47 $ 17,519,544 100	December 31, 2023	December 31, 2023
		AMOUNT $ 2,153,486 19,315 930 1,054,347 27,629 5,994,214 79,707 9,329,628 35,941 35,480 7,819,404 11,414 8,253 174,900 104,524 8,189,916 $ 17,519,544	AMOUNT $ 1,237,045 - 4,475 1,016,780 76,704 6,241,090 87,773 8,663,867 - 32,947 8,339,267 8,425 13,643 194,928 122,987 8,712,197 $ 17,376,064	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 130X Inventories 1479 Other current assets, others 11XX Current Assets Non-current assets 1510 Non-current financial assets at fair value through profit or loss 1535 Non-current financial assets at amortised cost 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets				7 - - 6 - 36 1
				50
				- - 48 - - 1 1
				50
				100

(Continued)

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2024 December 31, 2023 Notes AMOUNT % AMOUNT % 6(10) $ 1,003,535 6 $ 965,144 6 6(2) 66 - 9,824 - 6(21) 27,573 - 30,462 - 6(11) 330,397 2 369,672 2 118,323 1 99,482 1 6(12) 754,773 4 679,658 4 71,423 1 193,040 1 6(16) 26,002 - 77,959 - 5,375 - 5,191 - 6(13) 1,027,626 6 1,231,388 7 6(13)(21)(23) 51,661 - 54,077 - 3,416,754 20 3,715,897 21 6(13) 4,260,544 24 5,894,400 34 6(27) 679 - 52 - 6,139 - 3,307 - 6(14) 19,538 - 22,670 - 6(13)(23) 552 - 4,403 - 4,287,452 24 5,924,832 34 7,704,206 44 9,640,729 55 6(17) 2,377,841 14 2,142,551 12 6(18) 2,559,546 14 1,013,145 6 6(19) 977,146 6 916,325 5 8,607 - 10,151 - 3,995,169 23 3,724,967 22 6(20) ( 8,414) - ( 8,607) - 6(17) ( 94,557) ( 1) ( 63,197) - 9,815,338 56 7,735,335 45 9 11 $ 17,519,544 100 $ 17,376,064 100	December 31, 2023	December 31, 2023
			%
Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2250 Current provisions 2280 Current lease liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities, others 21XX Current Liabilities Non-current liabilities 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2640 Non-current net defined benefit liability 2670 Other non-current liabilities, others 25XX Non-current liabilities 2XXX Total Liabilities Equity Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity			6 - - 2 1 4 1 - - 7 -
			21
			34 - - - -
			34
			55
			12 6 5 - 22 - -
			45
			100

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

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2024 AND 2023

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

Items

Year ended December 31 2024 2023 Notes AMOUNT % AMOUNT % 6(21) $ 7,473,579 100 $ 7,779,316 100 6(5)(26) ( 5,469,886) ( 73) ( 6,044,901) ( 78) 2,003,693 27 1,734,415 22 6(26) ( 602,092) ( 8) ( 546,987) ( 7) ( 281,839) ( 4) ( 279,940) ( 3) ( 151,096) ( 2) ( 153,056) ( 2) 12(2) 9,192 - 427 - ( 1,025,835) ( 14) ( 979,556) ( 12) 977,858 13 754,859 10 6(22) 9,123 - 15,748 - 6(23) 58,393 1 58,674 1 6(24) 55,115 1 107,538 1 6(25) ( 156,969) ( 2) ( 174,909) ( 2) ( 34,338) - 7,051 - 943,520 13 761,910 10 6(27) ( 188,036) ( 3) ( 153,474) ( 2) $ 755,484 10 $ 608,436 8 6(14) $ 3,132 - ($ 287) - 6(27) ( 627) - 57 - 2,505 - ( 230) - 241 - 1,930 - 6(27) ( 48) - ( 386) - 193 - 1,544 - $ 2,698 - $ 1,314 - $ 758,182 10 $ 609,750 8 $ 755,484 10 $ 608,436 8 $ 758,182 10 $ 609,750 8 6(28) $ 3.30 $ 2.88 6(28) $ 3.29 $ 2.88

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit impairment gain 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Other comprehensive income, before tax, actuarial losses (gains) on defined benefit plans 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8399 Income tax relating to the components of other comprehensive income 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income for the year 8500 Total comprehensive income for the year Profit, attributable to: 8610 Owners of the parent Comprehensive income attributable to: 8710 Owners of the parent Basic earnings per share 9750 Basic earnings per share Diluted earnings per share 9850 Diluted earnings per share

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

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Year ended December 31, 2023 Balance at January 1, 2023 Profit for the year Other comprehensive (loss) income for the year Total comprehensive income Appropriation and distribution of 2022 earnings: Legal reserve Special reserve Cash dividends Retirement of treasury share Treasury shares transferred to employees Balance at December 31, 2023 Year ended December 31, 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income for the year Total comprehensive income Appropriation and distribution of 2023 earnings: Legal reserve Special reserve Cash dividends Issuance of shares Purchase of treasury shares Disgorgement exercised by the Company according to the related laws Treasury shares transferred to employees Balance at December 31, 2024	Notes					Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent				Total equity
		Common stock		Capital surplus						Retained earnings		Financial statements translation differences of foreign operations	Treasury stocks
			Additional paid- in capital		Treasury stock transactions	Donated assets received			Legal reserve	Special reserve	Unappropriated retained earnings
	6(19) 6(19) 6(17) 6(17)	$ 2,183,151 - - - - - - ( 40,600 ) - $ 2,142,551 $ 2,142,551 - - - - - - 235,290 - - - $ 2,377,841	$ 1,017,026 - - - - - - ( 18,914 ) - $ 998,112 $ 998,112 - - - - - - 1,492,091 - - - $ 2,490,203	$ 360 - - - - - - ( 18,494 ) 33,167 $ 15,033 $ 15,033 - - - - - - - - - 54,303 $ 69,336			$ - - - - - - - - - $ - $ - - - - - - - - - 7 - $ 7		$ 857,797 - - - 58,528 - - - - $ 916,325 $ 916,325 - - - 60,821 - - - - - - $ 977,146	$ 11,906 - - - - ( 1,755 ) - - - $ 10,151 $ 10,151 - - - - ( 1,544 ) - - - - - $ 8,607	$ 3,780,377 608,436 ( 230 ) 608,206 ( 58,528 ) 1,755 ( 416,892 ) ( 189,951 ) - $ 3,724,967 $ 3,724,967 755,484 2,505 757,989 ( 60,821 ) 1,544 ( 428,510 ) - - - - $ 3,995,169	($ 10,151 ) - 1,544 1,544 - - - - - ($ 8,607 ) ($ 8,607 ) - 193 193 - - - - - - - ($ 8,414 )	($ 559,113 ) - - - - - - 267,959 227,957 ($ 63,197 ) ($ 63,197 ) - - - - - - - ( 94,557 ) - 63,197 ($ 94,557 )	$ 7,281,353 608,436 1,314 609,750 - - ( 416,892 ) - 261,124 $ 7,735,335 $ 7,735,335 755,484 2,698 758,182 - - ( 428,510 ) 1,727,381 ( 94,557 ) 7 117,500 $ 9,815,338

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

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation expense-Property, plant and equipment Depreciation expense-Right-of-use-assets Amortization expense Expected credit impairment (gain) loss Share-based payments Loss (gain) on financial assets or liabilities at fair value through profit or loss Goverment grants income Unfinish construction and equipment transferred to expense Interest income Interest expense Gain on disposal of property, plant and equipment Unrealized foreign exchange gain Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss - current Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Other non-current assets Changes in operating liabilities Current contract liabilities Notes payable Accounts payable Other payables Provisions Other current liabilities Net defined benefit liabilities Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities

Year ended December 31 Notes 2024 2023 $ 943,520 $ 761,910 6(6) 901,604 941,512 6(7) 6,229 7,419 6(8) 8,875 11,011 12(2) ( 9,192 ) ( 427 ) 6(15) 38,331 9,782 6(2) ( 45,801 ) 125,742 6(23) ( 7,047 ) ( 7,548 ) - 475 6(22) ( 9,123 ) ( 15,748 ) 6(25) 156,969 174,909 6(24) ( 1,077 ) ( 4,293 ) - ( 6,784 ) 16,728 - ( 930 ) - ( 28,375 ) ( 188,629 ) 41,705 14,347 273,523 ( 12,998 ) 2,944 20,255 5,122 ( 3,286 ) ( 3,445 ) 5,833 ( 2,889 ) 16,528 ( 43,304 ) 15,852 18,841 25,488 89,350 ( 145,309 ) ( 56,610 ) 56,610 781 ( 7,550 ) - ( 254 ) 2,296,729 1,794,847 9,151 15,757 ( 146,891 ) ( 143,276 ) ( 289,673 ) ( 129,182 ) 1,869,316 1,538,146

(Continued)

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of non-current financial assets at fair value through profit or loss Acquisition of financial assets at amortised cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Capitalized interest payments Decrease in refundable deposits Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans Decrease in short-term loans Proceeds from long-term debt Repayments of long-term debt Repayments of lease liabilities Payments to acquire treasury shares Treasury shares transferred to employees Cash dividends paid Proceeds from issuing shares Disgorgement exercised Net cash flows used in financing activities Effects of foreign exchange rates Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2024 2023 ($ 35,941 ) $ - ( 2,533 ) ( 8,192 ) 6(29) ( 481,362 ) ( 719,837 ) 6(29) 16,377 77,199 6(8) ( 3,315 ) ( 1,724 ) 6(6)(25)(29) ( 6,044 ) ( 9,317 ) 9,656 13,563 ( 503,162 ) ( 648,308 ) 6(30) 1,398,153 1,305,484 6(30) ( 1,360,210 ) ( 1,670,437 ) 6(30) 90,000 565,000 6(30) ( 1,935,262 ) ( 565,360 ) 6(30) ( 6,189 ) ( 7,401 ) ( 13,216 ) - 89,245 251,343 6(30) ( 428,510 ) ( 416,892 ) 6(17) 1,717,305 - 7 - ( 448,677 ) ( 538,263 ) ( 1,036 ) 7,348 916,441 358,923 1,237,045 878,122 $ 2,153,486 $ 1,237,045

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

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2024 AND 2023

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

1. History and Organization

SUPERALLOY INDUSTRIAL CO., LTD. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) in June 1994, and the shares of the Company were officially listed on the Taiwan Stock Exchange in May 2024. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in forging, manufacturing, processing and trading of aircraft components, vehicles and motorcycle components, aluminium-copper, steel-titanium alloys, hardware parts, and mold coupler.

1. The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization

These consolidated financial statements were authorized for issuance by the Board of Directors on March 3, 2025.

3. Application of New Standards, Amendments and Interpretations

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

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

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

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

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

but not yet adopted by the Group

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

follows:
New Standards,Interpretations andAmendments Amendments to IAS 21, ‘Lack of exchangeability’	Effective date by International Accounting StandardsBoard
	January 1, 2025

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

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

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

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

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. The quantitative impact will be disclosed when the assessment is complete.

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to managementdefined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

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4. Summary of Material Accounting Policies

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2024, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation

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

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

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

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

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

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

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

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

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

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

• B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary Main business activities SuperAlloy Manufaktur GmbH. (SAMF) Coating and processing of vehicle components, European Logistics Centre	December 31, 2024 December 31, 2023 100% 100% Ownership(%)	December 31, 2024 December 31, 2023 100% 100% Ownership(%)
		December 31, 2024
SUPERALLOY INDUSTRIAL CO., LTD.		100%	100%

• C. Subsidiaries not included in the consolidated financial statements:

None.

• D. Adjustments for subsidiaries with different balance sheet dates:

None.

• E. Significant restrictions

None.

• F. Subsidiaries that have non-controlling interests that are material to the Group:

None.

(4) Foreign currency translation

The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.

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• A. Foreign currency transactions and balances

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

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

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

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

• B. Translation of foreign operations

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

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

• (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

• (c) All resulting exchange differences are recognized in other comprehensive income.

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

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

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

• (b) Assets held mainly for trading purposes;

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

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

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• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

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

• (b) Liabilities arising mainly from trading activities;

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

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

(6) Cash equivalents

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

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

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

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

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

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

(8) Financial assets at amortized cost

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

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

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

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

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

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impaired.

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

(9) Accounts and notes receivable

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

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

• (10) Impairment of financial assets

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

(11) Derecognition of financial assets

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

(12) Inventories

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

(13) Property, plant and equipment

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

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

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loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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

Land improvements Buildings and structures Machinery and equipment Utility equipment Other equipment

3 ~ 11 years 2 ~ 51 years 3 ~ 18 years 2 ~ 25 years 3 ~ 16 years

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

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

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

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

• (c) Any initial direct costs incurred by the lessee.

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

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as an adjustment to the right-of-use asset.

(15) Intangible assets

• A. Trademarks and patents

Separately acquired trademarks and patents are stated at historical cost. Trademarks and patents have a finite useful life and are amortized on a straight-line basis over their estimated useful lives of 3 to 21 years.

• B. Computer software

Computer software is stated at acquisition cost and amortized on a straight-line basis over its estimated useful life of 3~7 years.

(16) Impairment of non-financial assets

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

• (17) Borrowings

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

(18) Accounts and notes payable

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

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

(19) Financial liabilities at fair value through profit or loss

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges or financial liabilities at fair value through profit or loss. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss at initial recognition:

• (a) Hybrid (combined) contracts; or

• (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or

• (c) They are managed and their performance is evaluated on a fair value basis, in accordance with

~26~

a documented risk management policy.

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(20) Derecognition of financial liabilities

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

(21) Offsetting financial instruments

• Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(22) Non-hedging and embedded derivatives

• A. Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognized in profit or loss.

• B. Under the financial assets, the hybrid contracts embedded with derivatives are initially recognized as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income and financial assets at amortized cost based on the contract terms.

• C. Under the non-financial assets, whether the hybrid contracts embedded with derivatives are accounted for separately at initial recognition is based on whether the economic characteristics and risks of an embedded derivative are closely related in the host contract. When they are closely related, the entire hybrid instrument is accounted for by its nature in accordance with the applicable standard. When they are not closely related, the derivative is accounted for differently from the host contract as derivative while the host contract is accounted for by its nature in accordance with the applicable standard. Alternatively, the entire hybrid instrument is designated as financial liabilities at fair value through profit or loss upon initial recognition.

(23) Provisions

• Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

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(24) Employee benefits

A. Short-term employee benefits

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

• B. Pensions

(a) Defined contribution plans

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

(b) Defined benefit plans

  - i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

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

• C. Employees’ compensation and directors’ and supervisors’ remuneration

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

- (25) Employee share based payment

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

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of compensation cost recognized is based on the number of equity instruments that eventually vest.

• (26) Income tax

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

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

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction affects neither accounting nor taxable profit or loss.

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

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures, personnel training expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

• (27) Share capital

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

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• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(28) Dividends

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

(29) Revenue recognition

The Group manufactures and sells forging wheel products. Revenue is measured at the fair value of the consideration received or receivable taking into account of value-added tax, returns, rebates and discounts for the sale of goods to external customers in the ordinary course of the Group’s activities. The products are often sold with volume discounts based on aggregate sales over a 12-month period. Accumulated experience is used to estimate and provide for the volume discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. Revenue arising from the sales of goods should be recognised when the Group has delivered the goods to the customer, the amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the entity. The delivery of goods is completed when the control of ownership has been transferred to the customer, the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or there is objective evidence showing that all acceptance provisions have been satisfied.

(30) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognized as non-current liabilities and are amortized to profit or loss over the estimated useful lives of the related assets using the straight-line method.

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(31) Operating segments

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

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

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

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

• None.

(2) Critical accounting estimates and assumptions

• Evaluation of inventories

• As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. There might be material changes to the evaluation of inventories.

As of December 31, 2024, the carrying amount of inventories was $5,994,214 thousand.

1. Details of Significant Accounts

(1) Cash and cash equivalents

tails of Significant Accounts Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December31,2024 382 $ 1,418,454 734,650 2,153,486 $	December31,2023
		431 $ 1,236,614 -
		1,237,045 $

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

• B. The Group’s time deposits with maturity date over 3 months and time deposits pledged as collateral have been reclassified under “financial assets at amortised cost”, please refer to Notes 6(3) and 8.

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

		December31,2024	December31,2024	December31,2023	December31,2023
Current items:
Financial assets mandatorily measured
at fair value through profit or loss
-Fund		$	22,280	$	-
Valuation adjustment	(		2,965)		-
		$	19,315	$	-
Financial liabilities mandatorily measured
at fair value through profit or loss
-Derivative instruments		$	66	$	9,824
Non-current items:
Financial assets mandatorily measured
at fair value through profit or loss
-Unlisted stocks		$	35,941	$	-
A. Amounts recognised in profit or loss in relation to financial assets and				liabilities at fair value
through profit or loss are listed below:
			2024		2023
Net gains on financial assets and liabilities
at fair value through profit or loss		$	45,801	$	115,633

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

• B. The non-hedging derivative instruments transaction and contract information are as follows:

Derivativefinancial instruments		Contractnotionalprincipal Contract period EUR 2,000 thousand 2024.12.17~2025.12.19 December31,2024 December31,2023
Current items: Forward exchange contracts Derivative financial instruments
		Contractnotionalprincipal Contract period USD 19,000 thousand 2023.08.17~2024.10.16 EUR3,900 thousand 2023.10.16~2024.10.16
Current items: Forward exchange contracts

The Group entered into cross currency swaps to hedge exchange rate risk of fund transferring demand. However, these cross currency swaps are not accounted for under hedge accounting.

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• C. Information relating to credit risk of financial assets and liabilities at fair value through profit or loss is provided in Note 12(2).

(3) Financial assets at amortized cost

Items Non-current items: Pledged time deposits	December31,2024 35,480 $	December31,2023
		32,947 $

• A. Amounts recognized in profit or loss in relation to financial assets at amortized cost are listed below:

Interest income	2024 2023 1,501 $ 1,028 $ Years ended December31	2024 2023 1,501 $ 1,028 $ Years ended December31
		1,028 $

• B. As at December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group was $35,480 thousand and $32,947 thousand, respectively.

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

• D. Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2). The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(4) Accounts receivable

		December	31,2024		December	31,2023
Notes receivable		$	930		$	-
Other notes receivable		$	-		$	4,475
Accounts receivable		$	1,055,024		$	1,027,314
Less: Allowance for bad debts	(		677)	(		10,534)
		$	1,054,347		$	1,016,780

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A. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

==> picture [471 x 157] intentionally omitted <==

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

December 31, 2024 December 31, 2023
Accounts Notes Accounts Other notes
receivable receivable receivable receivable
Not past due $ 992,055 $ 930 $ 953,213 $ 4,475
- -
Up to 30 days 50,669 53,296
- -
31 to 90 days 6,148 9,509
- -
91 to 180 days 4,553 2,791
- -
181 to 365 days 1,304 8,505
Over 1 year 295 - - -
$ 1,055,024 $ 930 $ 1,027,314 $ 4,475
----- End of picture text -----

The above ageing analysis was based on past due date.

• B. As at December 31, 2024, December 31, 2023 and January 1, 2023, the balances of receivables from contracts with customers amounted to $1,055,954 thousand, $1,031,789 thousand and $838,446 thousand, respectively.

• C. As at December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable was $930 thousand and $4,475 thousand ; $1,054,347 thousand and $1,016,780 thousand, respectively.

• D. The Group has no notes and accounts receivable pledged to others.

• E. Details of other notes receivable are provided in Note 6(29).

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

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(5) Inventories

Cost Raw materials 3,792,908 $ Work in progress 1,377,764 Finished goods 1,341,605 6,512,277 $ Cost Raw materials 4,040,560 $ Work in progress 1,402,011 Finished goods 1,378,388 6,820,959 $	Allowance for valuation loss Bookvalue 128,356) ($ 3,664,552 $ 159,685) ( 1,218,079 230,022) ( 1,111,583 518,063) ($ 5,994,214 $ Allowance for valuation loss Book value 127,527) ($ 3,913,033 $ 223,509) ( 1,178,502 228,833) ( 1,149,555 579,869) ($ 6,241,090 $ December31,2024 December 31, 2023

The cost of inventories recognized as expense for the period:

			Years ended	December31	December31
			2024		2023
Cost of goods sold		$	5,255,482	$	5,726,274
Unallocated fixed overhead expense			247,526		252,405
Gain on reversal of
slow-moving inventories and
decline in market value	(		61,806)	(	11,231)
Others			28,684		77,453
		$	5,469,886	$	6,044,901

The Group reversed a previous inventory write-down because of the sale of certain inventories which were previously provided with allowance for the years ended December 31, 2024 and 2023.

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(6) Property, plant and equipment

Year ended December 31, 2024		Beginning balance 2,546,841 $ 31,191 2,859,321 5,817,386 855,257 729,526 379,430 13,218,952 $ 28,276 $ 917,094 3,044,802 495,598 393,915 4,879,685 $ 8,339,267 $	Additions Decreases Transfers - $ - $ - $ - - - 3,005 - 1,333 82,076 1,280,042) ( 364,459 5,607 - 825 72,055 95,695) ( 24,671) ( 247,211 - 368,996) ( 409,954 $ 1,375,737) ($ 27,050) ($ 1,445 $ - $ - $ 86,263 - - 615,072 1,276,559) ( - 61,912 - - 136,912 95,695) ( - 901,604 $ 1,372,254) ($ - $	Net exchange differences		Ending balance
Cost				99 $ 1) ( 1,277 1,302 - 112 2) ( 2,787 $ 1) ($ 114 313 - 41 467 $		2,546,940 $ 31,190 2,864,936 4,985,181 861,689 681,327 257,643 12,228,906 $ 29,720 $ 1,003,471 2,383,628 557,510 435,173 4,409,502 $ 7,819,404 $
Land Land improvements Buildings and structures Machinery and equipment Utilities equipment Other equipment Unfinished construction and equipment under acceptance Accumulated depreciation
Land improvements Buildings and structures Machinery and equipment Utilities equipment Other equipment Book value

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Year ended December 31, 2023		Beginning balance 2,546,062 $ 31,191 2,739,543 5,714,968 827,851 596,788 872,120 13,328,523 $ 25,842 $ 830,252 2,993,373 434,831 307,823 4,592,121 $ 8,736,402 $	Additions Decreases Transfers - $ - $ - $ - - - 376 950) ( 110,307 17,244 606,846) ( 681,656 - - 27,406 5,319 72,536) ( 198,754 344,002 - 836,692) ( 366,941 $ 680,332) ($ 181,431 $ 2,434 $ - $ - $ 85,930 950) ( - 645,390 599,634) ( - 60,767 - - 146,991 61,642) ( - 941,512 $ 662,226) ($ - $		Net exchange differences		Ending balance
Cost					779 $ - 10,045 10,364 - 1,201 - 22,389 $ - $ 1,862 5,673 - 743 8,278 $		2,546,841 $ 31,191 2,859,321 5,817,386 855,257 729,526 379,430 13,218,952 $ 28,276 $ 917,094 3,044,802 495,598 393,915 4,879,685 $ 8,339,267 $
Land Land improvements Buildings and structures Machinery and equipment Utilities equipment Other equipment Unfinished construction and equipment under acceptance Accumulated depreciation
Land improvements Buildings and structures Machinery and equipment Utilities equipment Other equipment Book value

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• A. Amount of borrowing costs capitalized as part of property, plant and equipment and the range of the interest rates for such capitalization are as follows:

Amount capitalised Range of the interest rates for capitalisation	Years endedDecember31	Years endedDecember31
	2024 6,044 $ 1.55%~2.07%	2023
		9,317 $
		1.56%~1.92%

• B. The amount of transfers for the years ended December 31, 2024 and 2023 pertained to the completion of acceptance of the construction in progress and equipment under acceptance, the items which belonged to equipment in nature transferred from inventories and the items which belonged to intangible assets, etc. in nature transferred to related accounts.

• C. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.

• D. The Group acquired land with nos. #407, #408, #409, #410, #411, Huxi Section, Douliu City, Yunlin County, with a total book value of $50,145 thousand. The land is adjacent to the industrial zone, which is currently used for the Group’s business. As the lands are farmlands which cannot be transferred to the Group, the ownership is under the name of other parties. The Group retains the original certificate of the land ownership and has a trust agreement with the nominal owner. The two parties have agreed, before the ownership registration, that the nominal owner shall not transfer the ownership to any third party nor set up any mortgage.

• －

• (7) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings and forklifts. Rental contracts are typically made for periods of 2 to 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The Group’s short-term leases and low-value assets pertain to land improvements and property, plant and equipment.

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

Land Buildings Transportation equipment (forklifts)	December31,2024 Carrying amount 2,272 $ 3,982 5,160 11,414 $	December31,2023
		Carrying amount
		3,409 $ 2,452 2,564
		8,425 $

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Land Buildings Transportation equipment (forklifts)	2024 2023 Depreciationcharge Depreciation charge 1,136 $ 1,136 $ 1,152 2,142 3,941 4,141 6,229 $ 7,419 $ Years endedDecember31

• D. For the years ended December 31, 2024 and 2023, the additions to right-of-use assets were $10,961 thousand and $4,303 thousand, respectively.

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

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	Years ended December 31	Years ended December 31
	2024 184 $ 10,146 10,330 $	2023
		146 $ 6,221
		6,367 $

• F. For the years ended December 31, 2024 and 2023, the Group’s total cash outflow for leases were $16,519 thousand and $13,768 thousand, respectively.

(8) Intangible assets

Year ended December 31, 2024

Cost		Beginning balance		Additions	Amortizations		Transfers		Net exchange differences		Ending balance
Computer software Intangible assets Book value		12,596 $ 1,047 13,643 $		3,304 $ 11 3,315 $	8,635) ($ 240) ( 8,875) ($		150 $ 20 170 $		- $ - - $		7,415 $ 838 8,253 $

Year ended December 31, 2023

Cost		Beginning balance		Additions	Amortizations		Transfers		Net exchange differences		Ending balance
Computer software Intangible assets Book value		18,800 $ 381 19,181 $		1,690 $ 14 1,704 $	10,899) ($ 112) ( 11,011) ($		3,003 $ 764 3,767 $		2 $ - 2 $		12,596 $ 1,047 13,643 $

Details of amortization on intangible assets are as follows:

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Operating costs Selling expenses General and administrative expenses Research and development expenses	2024 2023 719 $ 985 $ 863 732 4,758 5,467 2,535 3,827 8,875 $ 11,011 $ Years endedDecember31

(9) Other non-current assets

Prepayments for business facilities Guarantee deposits paid Others	December31,2024 59,135 $ 35,861 9,528 104,524 $	December31,2023 71,621 $ 45,517 5,849 122,987 $

(10) Short-term borrowings

Type ofborrowings Unsecured borrowings Type ofborrowings Unsecured borrowings	December31,2024 1,003,535 $ December31,2023 965,144 $	Interestraterange Collateral 1.78%~5.40% None Interestraterange Collateral 1.67%~5.01% None

Information about interest expense recognized in profit or loss for the years ended December 31, 2024 and 2023 is provided in Note 6(25).

(11) Notes payable

Notes payable – general Notes payable – payment for equipment	December31,2024 305,738 $ 24,659 330,397 $	December31,2023
		349,042 $ 20,630
		369,672 $

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(12) Other payables

Wages and salaries payable Freight payable Treasury shares payable Employees’ compensation and directors’ and supervisors’ remuneration payable Processing fees payable Payable on machinery and equipment Utilities expense payable Environmental protection expense payable Labour and health insurance fees payable Commission payable Interest payable Other payables, others	December31,2024 188,508 $ 91,768 81,341 63,092 51,373 37,837 35,872 29,184 22,125 10,426 6,164 137,083 754,773 $	December31,2023 181,803 $ 71,349 - 47,551 39,118 131,804 35,140 - 29,325 11,978 - 131,590
		679,658 $

- (13) Long term borrowings

Type ofborrowings Borrowing period andrepayment term Interest rate range Long-term bank borrowings Secured borrowings Borrowings are repayable in installments before March 2040 1.38%〜 2.70% Unsecured borrowings Borrowings are repayable in installments before March 2028 1.33%〜 1.89% Less: Gains on deferred government grants Less: Current portion	Collateral Property, plant and equipment None	December 31, 2024
		3,139,403 $ 2,153,056 5,292,459 4,289) ( 1,027,626) ( 4,260,544 $

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Type of borrowings Borrowing period and repayment term Long-term bank borrowings Secured borrowings Borrowings are repayable in installments before March 2040 Unsecured borrowings Borrowings are repayable in installments before March 2028 Less: Gains on deferred government grants Less: Current portion	Interest rate range Collateral December 31, 2023 1.25%〜 2.70% Property, plant and equipment 4,249,850 $ 1.20%〜 2.10% None 2,887,222 7,137,072 11,284) ( 1,231,388) ( 5,894,400 $

(14) Pensions

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

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

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability	December31,2024 December 31, 2023 39,861 $ 41,367 $ 20,323) ( 18,697) ( 19,538 $ 22,670 $

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

2024 At January 1 Current service cost Interest expense (income) Remeasurements: Return on plan assets Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31 2023 At January 1 Current service cost Interest expense (income) Past service cost Remeasurements: Return on plan assets Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31		Present value of defined benefit obligations	Fair value of planassets	Net defined benefitliability 22,670 $ 86 275 23,031 1,794) ( 1) ( 1,621) ( 284 3,132) ( 361) ( - 19,538 $ Net defined benefitliability
	41,367 $ 86 511 41,964 - 1) ( 1,621) ( 284 1,338) ( - 765) ( 39,861 $ Present value of defined benefit obligations		18,697) ($ - 236) ( 18,933) ( 1,794) ( - - - 1,794) ( 361) ( 765 20,323) ($ Fair value of planassets
	43,362 $ 72 562 265) ( 43,731 - 3 440 18 461 - 2,825) ( 41,367 $		20,725) ($ - 266) ( - 20,991) ( 173) ( - - - 173) ( 358) ( 2,825 18,697) ($	22,637 $ 72 296 265) ( 22,740 173) ( 3 440 18 288 358) ( - 22,670 $

~43~

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Group’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Group has no right to participate in managing and operating that fund and hence the Group is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2024 and 2023 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

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

The principal actuarial assumptions used were	as follows:	as follows:	as follows:
Discount rate Future salary increases	Years ended December 31
	2024		2023
	1.65% 2.00%		1.25% 2.00%

Assumptions regarding future mortality rate are set based on the 6th and 5th Taiwan Standard Ordinary Experience Mortality Table.

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

December 31, 2024 Effect on present value of defined benefit obligation December 31, 2023 Effect on present value of defined benefit obligation	Discount rate	Discount rate		Future salaryincreases	Future salaryincreases
	Increase 0.25% 967) ($ 1,080) ($	Decrease 0.25%		Increase 0.25%	Decrease 0.25%
		1,002 $ 1,122 $		996 $ 1,111 $	966) ($ 1,075) ($

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

The methods and types of assumptions used in preparing the sensitivity analysis did not

~44~

change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2025 amount to $1,391 thousand.

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

Within 1 year 1-2 year(s) 2-5 years Over 5 years	1,113 $ 1,487 7,798 36,288
	46,686 $

• B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Group contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  • (b) For the aforementioned pension plan, the Group recognized pension costs of $31,807 thousand and $30,009 thousand for the years ended December 31, 2024 and 2023, respectively.

  • (c) The subsidiaries in Europe contribute to the statutory pension insurance or pension fund for their employees based on their wages and salaries in compliance with local laws and regulations. Other than the annual contributions, the entities have no further obligations. For the aforementioned pension plan, the Group recognized pension costs of $7,804 thousand and $6,237 thousand for the years ended December 31, 2024 and 2023, respectively.

• (15) Share-based payment

• A.For the years ended December 31, 2024 and 2023, the Company’s share-based payment arrangements were as follows:

	Yearended	December31,2024	December31,2024	Vesting conditions
Type ofarrangement Treasury stock transferred to employees Cash capital increase reserved for employee preemption	Grant date	Quantity granted	Contract period
	2024.3.7 2024.4.26	1,373 thousand shares 1,106 thousand shares	0.06 year 0.03 year	Vested immediately Vested immediately

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Type of arrangement Treasury stock transferred to employees Treasury stock transferred to employees	Yearended	December31,2023	December31,2023	Vesting conditions
	Grant date	Quantity granted	Contract period
	2023.5.5 2023.8.7	3,022 thousand shares 1,414 thousand shares	0.13 year 0.01 year	Vested immediately Vested immediately

Treasury stock transferred to employee plan issued by the Company shall not be disposed within one year after the stocks are subscribed. Employees are not required to return the stocks received and related dividends distributed if they resign during the vesting period.

B. Details of the share-based payment arrangements are as follows:

Options outstanding at January 1 Options granted Options exercised Options outstanding at December 31 Options exercisable at December 31		2024	2023
	No. of options	Weighted-average exercise price (indollars)	Weighted-average No. of options exercise price (in dollars) - - $ 4,436 - 4,436) ( 56.66 - - - -
	- 2,479 2,479) ( - -	- $ - 65.00~70.00 - -

C.The fair value of stock options granted on grant date is measured using the Black-Scholes optionpricing model. Relevant information is as follows:

Year ended December 31, 2024

Type of arrangement	Grant date	Stock price	Exercise price	Expected price volatility	Expected option life	Expected dividends	Risk- free interest rate	Fair value per unit of the option	Fair value of the target
Treasury stock transferred to employees Cash capital increase reserved for employee preemption	2024.3.7 2024.4.26	96.10 86.70	65.00 70.00	40.52% 45.94%	0.06 0.03	- -	1.09% 1.22%	20.5787 9.1141	85.53 78.92

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Year ended December 31, 2023

Type of arrangement Grant date Treasury stock transferred to employees 2023.5.5 Treasury stock transferred to employees 2023.8.7	Stock price Exercise price Expected price volatility 64.10 56.66 32.20% 58.09 56.66 12.96%	Expected option life Expected dividends Risk- free interest rate Fair value per unit of the option 0.13 - 1.09% 3.2368 0.01 - 1.09% -	Fair value of the target
			57.69 53.01

• (a) The fair value of the target takes into consideration that the transferred stocks were subject to the restriction that they shall not be transferred within one year. Thus, the range of discount of the target stocks subject to this restriction was considered to reasonably reflect the fair value of the restricted stocks.

• (b) Expected price volatility rate was estimated by using the daily history stock prices of the most recent three months before the grant date, and the standard deviation of return on the stock during this period.

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

(16)	Provisions Equity-settled	Years ended December 31
		2024 2023 38,331 $ 9,782 $

			Provision for litigation	Provision for litigation
		December	31,2024	December	31,2023
Beginning of period		$	77,959	$	-
Additional provisions			17,186		77,959
Decrease provisions	(		69,143)		-
End of Period		$	26,002	$	77,959
Analysis of total provisions:
		December	31,2024	December	31,2023
Current		$	26,002	$	77,959

For the Group’s litigations relating to business matters, it is assessed that the Group shall compensate for the litigations based on the arbitral award result. Details are provided in Note 9.

• (17) Share capital

• A. As of December 31, 2024, the Company’s authorized capital was $4,000,000 thousand, consisting of 400,000 thousand shares of ordinary stock (including 40,000 thousand shares reserved for employee stock options), and the paid-in capital was $2,142,551 thousand with a par value of $10

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(in dollars) per share. As of December 31, 2024, the number of ordinary shares outstanding amounted to 212,882 thousand shares.

• B. Movements in the number of the Company’s ordinary shares (in thousands) outstanding are as follows:

ollows:
			2024	2023
At January 1		$	212,882	208,446 $
Add: Cash capital increase			23,529	-
Add: Transfer of treasury shares			1,373	4,436
Less: Purchase of treasury shares	(		1,570)	-
At December 31			236,214	212,882

• C. In order to cooperate with the public underwriting before the initial listing on the Taipei Exchange, the Board of Directors of the Company during its meeting on March 7, 2024 adopted a resolution to increase the Company’s capital by issuing 23,529 thousand ordinary shares with a par value of NT$10 (in dollars) per share. The paid-in capital was $1,720,485 thousand, and the effective date of the capital increase was set on May 9, 2024. The registration for the capital increase had been completed.

• D. Treasury share

• (a) Reason for share reacquisition and movements in the number of the Company’s treasury shares (in thousand) are as follows:

he capital increase was set on May 9, 2024. The registration for the capital increase had been pleted. asury share Reason for share reacquisition and movements in the number of the Company’s treasury shares in thousand) are as follows:	he capital increase was set on May 9, 2024. The registration for the capital increase had been pleted. asury share Reason for share reacquisition and movements in the number of the Company’s treasury shares in thousand) are as follows:	he capital increase was set on May 9, 2024. The registration for the capital increase had been pleted. asury share Reason for share reacquisition and movements in the number of the Company’s treasury shares in thousand) are as follows:
Reason for share reacquisition Number of shares Carrying amount To be reissued to employees At January 1 1,373 63,197 $ Shares transferred 1,373) ( 63,197) ( Shares increased 1,570 94,557 At December 31 1,570 94,557 $ Reason for share reacquisition Number of shares Carrying amount To be reissued to employees At January 1 9,869 559,113 $ Shares retired 4,060) ( 267,959) ( Shares transferred 4,436) ( 227,957) ( At December 31 1,373 63,197 $ Year ended December 31, 2024 Year ended December31,2023
	Number of shares
	9,869 4,060) ( 4,436) ( 1,373	559,113 $ 267,959) ( 227,957) ( 63,197 $

(b) On March 7, 2024, the Board of Directors of the Company resolved to transfer 1,373 thousand shares of treasury shares purchased in 2022 to employees at NT$65 (in dollars) per share. The capital verification was completed on April 1, 2024 (the payment had been settled on March 28, 2024).

• (c) On December 26, 2024, the Board of Directors of the Company resolved to repurchase the Company’s ordinary shares and transfer them to employees. The Company expects to

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repurchase 10,000 thousand shares during the period from December 27, 2024 to February 26, 2025, and the price range is between $40 and $86. As of December 31, 2024, the unpaid amount of $81,341 thousand was shown as other payables.

• (d) On April 17, 2023, the Board of Directors of the Company resolved to transfer 3,022 thousand shares of treasury shares purchased in 2022 to employees at NT$56.66 (in dollars) per share.

• (e) On August 7, 2023, the Board of Directors of the Company resolved to transfer 1,414 thousand shares of treasury shares purchased in 2022 to employees at NT$56.66 (in dollars) per share.

• (f) On August 7, 2023, the Board of Directors of the Company resolved to retire treasury shares with the effective date set on August 7, 2023. On September 13, 2023, the retirement of 4,060 thousand shares of treasury shares and the registration change for the paid-in capital were completed.

• (g) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus. As of December 31, 2024 and 2023, the balance of the treasury shares repurchased and transferred to employees amounted to $94,557 thousand and $63,197 thousand, respectively.

• (h) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

• (i) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired.

(18) Capital surplus

At January 1 Cash capital increase Disgorgement exercised by the Company according to the related laws Treasury shares transferred to employees At December 31				2024
		Issue premium		Treasury share transactions		Donated assets received
		998,112 $ 1,492,091 - - 2,490,203 $		15,033 $ - - 54,303 69,336 $		- $ - 7 - 7 $

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				2023
		Issue		Treasury share		Donated assets
		premium		transactions		received
At January 1	$	1,017,026	$	360	$	-
Retirement of treasury shares	(	18,914)	(	18,494)		-
Treasury shares transferred to
employees		-		33,107		-
At December 31	$	998,112	$	14,973	$	-

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

(19) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay income tax returns and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. In addition, after special reserve is set aside or reversed in accordance with relevant regulations, the remainder along with accumulated unappropriated earnings shall be proposed by the Board of Directors and resolved at the shareholders’ meeting to be distributed as dividends and bonus to shareholders. However, the distribution of dividends and bonus or legal reserve and capital surplus, in whole or in part, in the form of cash in accordance with regulations or paragraph 5, Article 240 of the Company Act, shall be authorized to the Board of Directors, through a resolution adopted by the majority vote at their meeting attended by two-thirds of the total number of directors, and the report of such distribution shall be reported to the shareholders during their meeting.

• B. The Company’s dividend policy is summarized below:

• To improve the Company’s dividend policy and consider the Company’s capital position, the total dividends are distributed at 10% to 90% of the accumulated distributable earnings, and cash dividends shall account for at least 20% of the total dividends distributed.

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

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

• E. (a)The appropriations of 2023 and 2022 earnings as resolved by the shareholders’ meeting on May 27, 2024 and June 26, 2023, respectively, were as follows:

		2023	2023	2023		2022	2022	2022
				Dividends				Dividends
				per share				per share
		Amount		(in dollars)		Amount		(indollars)
Legal reserve	$	60,821			$	58,528
Reversal of special reserve	(	1,544)		(		1,755)
Cash dividends		428,510	$	2.01		416,892	$	2.00
	$	487,787			$	473,665

• (b) The appropriations of 2024 earnings as proposed by the Board of Directors on March 3, 2025, are as follows:

	YearendedDecember31,2024	YearendedDecember31,2024	YearendedDecember31,2024	YearendedDecember31,2024
			Dividends per
				share
		Amount		(in dollars)
Legal reserve	$	75,799
Reversal of special reserve	(	193)	$	2.20
Cash dividends		504,381
	$	579,987

(20) Other equity items

Other equity items
			Years ended	December		31
			2024		2023
At January 1	($		8,607)	($		10,151)
Currency translation differences:
- Group			241			1,930
- Tax on Group	(		48)	(		386)
At December 31	($		8,414)	($		8,607)
Sales revenue
			Years ended	December		31
			2024		2023
Revenue from contracts with customers		$	7,473,579		$	7,779,316

(21) Sales revenue

A. Disaggregation of revenue from contracts with customers

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The Group derives revenue from the transfer of goods at a point in time in the following major geographical regions:

Revenue from external customer contracts Revenue from external customer contracts	America 1,099,766 $ America 1,755,608 $	Europe Asia Other 4,076,681 $ 1,501,336 $ 6,746 $ Europe Asia Other Wheels Wheels Year ended December31,2023 Year ended December31,2024	Europe Asia Other 4,076,681 $ 1,501,336 $ 6,746 $ Europe Asia Other Wheels Wheels Year ended December31,2023 Year ended December31,2024	Europe Asia Other 4,076,681 $ 1,501,336 $ 6,746 $ Europe Asia Other Wheels Wheels Year ended December31,2023 Year ended December31,2024	Other products 789,050 $ Other products 1,149,173 $	Total 7,473,579 $
						Total
		3,877,072 $	974,978 $	22,485 $		7,779,316 $

• B. Contract liabilities and refund liabilities

• (a) The Group has recognized the following revenue-related contract liabilities and refund liabilities (recorded as other current liabilities):

Contract liabilities Refund liabilities	December31,2024 27,573 $ 34,002 $	December 31, 2023 30,462 $ 37,196 $	January1,2023
			12,649 $
			39,040 $

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

eriod:
Revenue recognized that was included in the contract liability balance at the beginning of the period	Years ended December31
	2024 25,575 $	2023 8,188 $

(22) Interest income

Interest income from bank deposits Interest income from financial assets measured at amortized cost	Years endedDecember31	Years endedDecember31
	2024 7,622 $ 1,501 9,123 $	2023
		14,720 $ 1,028
		15,748 $

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(23) Other income

Government grant income Compensation income Other income, others	2024 2023 21,087 $ 16,051 $ 1,138 5,669 36,168 36,954 58,393 $ 58,674 $ Years ended December 31

• A. The Company had obtained 8 loans totaling $1,236,493 thousand at the preferential interest rates from the government under the “Action Plan for Accelerated Investment by Domestic Corporations” from Chang Hwa Bank, Taiwan Cooperative Bank and Bank of Taiwan, respectively, as of December 31, 2024. The loans will be used for the working capital and purchase of equipment and will be repaid in installments before December 2027 and September 2026, respectively. The fair value of the loans estimated based on the market interest rate of each loan at the time was $1,232,204 thousand in total. The differences between the obtained amount and the fair value of the loans amounting to $4,289 thousand were considered as government grants of low-interest loans and recognized as gain on deferred government grants (shown as other current liabilities and other non-current liabilities). The gain on deferred government grants was transferred to other income - government grant income following the interest amortization. There were $7,047 thousand and $7,548 thousand transferred to other income - government grant income for the years ended December 31, 2024 and 2023, respectively.

• B. As the Group was eligible for the ‘Stable Employment Plan’ of the Ministry of Labor, the Group had employed unemployed people who met the qualifications of the plan according to the government grants and recognized government grant income amounting to $1,054 thousand for the year ended December 31, 2023.

• C.As the Group was eligible for the ‘Power and Public Equipment Subsidy’ promoted by the Ministry of Economic Affairs, the Group had recognized government grant income amounting to $999 thousand for the year ended December 31, 2023.

• D.The Group had obtained the government grants from the ‘Taiwan Industry Innovation Platform Program’ of the Ministry of Economic Affairs and transferred other income - government grant income amounting to $1,000 thousand and $6,450 thousand for the years ended December 31, 2024 and 2023, respectively.

• E.The Group had obtained the government grants from the project of ‘SUPERALLOY Smart Dynamic Management Optimisation Platform’ under the ‘Low-Carbon and Smart Upgrading and Transformation Subsidy (Smartisation) for Big-Leads-Small Manufacturing Industries’ provided by the Ministry of Economic Affairs for the year ended December 31, 2024. The

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Group recognised government grant income amounting to $13,040 thousand for the year ended December 31, 2024.

• F.The Group had obtained the government grants amounting to $5,452 thousand from the ‘EnergySaving Manufacturing Technology Integration and Development Program for the NextGeneration Aluminum Alloys of Electric Vehicles’ of the Science and Technology Research and Development Project of the Ministry of Economic Affairs for the year ended December 31, 2024. These grants were drawn on a pay-as-you-go basis. As of December 31, 2024, no expenses had been incurred, and thus the grants amounting to $5,452 thousand were recognised as gain on deferred government grants - current (shown as other current liabilities).

(24) Other gains and losses

Other gains and losses
Foreign exchange gains Net gains on financial assets at fair value through profit or loss Gains on disposals of property, plant and equipment Other losses	2024 2023 59,695 18,697 45,801 $ 115,633 $ 1,077 4,293 51,458) ( 31,085) ( 55,115 $ 107,538 $ Years ended December 31
		55,115 $	107,538 $

For the Group’s litigations relating to business matters, it is assessed that the Group shall compensate for the litigations based on the arbitral award result. Details are provided in Note 9.

(25) Finance costs

Finance costs
Interest expense - bank borrowings Interest expense - lease liabilities Interest expense - others Less: Capitalisation of qualifying assets	2024 2023 128,302 $ 162,731 $ 184 146 34,527 21,349 6,044) ( 9,317) ( 156,969 $ 174,909 $ Years endedDecember31
	156,969 $	174,909 $

For the Group’s litigations relating to business matters, it is assessed that the Group shall compensate for the litigations based on the arbitral award result. Details are provided in Note 9.

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(26) Expenses by nature

Expenses by nature
Employee benefit expense Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Share-based payment Other personnel expenses Depreciation charges Amortization charges Employee benefit expense Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses Depreciation charge Amortization charge		Classified as operating costs Classified as operating expenses Total 793,805 $ 185,652 $ 979,457 $ 83,060 18,407 101,467 31,739 8,233 39,972 - 17,651 17,651 13,667 24,664 38,331 59,810 13,959 73,769 982,081 $ 268,566 $ 1,250,647 $ 866,704 $ 41,129 $ 907,833 $ 719 $ 8,156 $ 8,875 $ YearendedDecember31,2024 Year ended December 31, 2023
		Classified as operating costs		Classified as operating expenses 184,118 $ 17,467 7,540 14,349 13,163 236,637 $ 35,226 $ 10,026 $	Total
		816,737 $ 79,215 28,809 - 57,717 982,478 $ 913,705 $ 985 $			1,000,855 $ 96,682 36,349 14,349 70,880
					1,219,115 $
					948,931 $
					11,011 $

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be 3%~15% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.

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B. For the years ended December 31, 2024 and 2023, the employees’ compensation and directors’ remuneration were estimated and accrued respectively as follows based on the distributable profit of current year as of the end of reporting period:

	Years ended	December 31
	2024	2023
Employees’ compensation	39,811 $	27,938 $
Accrued ratio	4.00%	3.50%
Directors’ remuneration	11,943 $	8,381 $
Accrued ratio	1.20%	1.05%

Employees’ compensation and directors’ and supervisors’ remuneration of 2023 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2023 financial statements.

Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(27) Income tax

• A. Income tax expense

• (a) Components of income tax expense:

Components of income tax expense:
			Years ended	December31
			2024		2023
Current tax:
Current tax on profits for the period		$	168,754	$	194,543
Prior year income tax (over) under estimation	(		698)		1,201
Total current tax			168,056		195,744
Deferred tax:
Origination and reversal of temporary differences			19,980	(	42,270)
Total deferred tax			19,980	(	42,270)
Income tax expense		$	188,036	$	153,474

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
		Years ended	December31
		2024	2023
Remeasurement of defined benefit plan	($	627)	$	57
Currency translation differences	(	48)	(	386)
	($	675)	($	329)

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B. Reconciliation between income tax expense and accounting profit:

Tax calculated based on profit before tax and statutory tax rate Effect from items disallowed by the regulation Prior year income tax (over) under estimation Change in assessment of realisation of deferred tax assets Income tax expense	Years ended	December 31
	2024	2023
	188,844 $ 31 698) ( 141) ( 188,036 $	152,685 $ 109) ( 1,215 317) ( 153,474 $

C. Applicable tax rate: Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

Temporary differences Deferred tax assets: Allowance for inventory valuation losses and loss for obsolete and slow- moving inventories Allowance for bad debts that exceeds the limit for tax purpose Unused compensated absences for employees Loss on long-term foreign investments Unrealised loss on valuation of financial assets and liabilities Accumulated translation adjustment of long-term equity investments Unrealised exchange loss Unrealised provisions Other Temporary differences Deferred tax liabilities: Remeasurement of defined benefit obligations			Year ended December 31,2024	Year ended December 31,2024	Year ended December 31,2024	Year ended December 31,2024
		January1	Recognised in profit or loss	Recognised in other comprehensive income	December31 103,612 $ 482 6,602 56,404 606 2,104 2,644 - 2,446 174,900 $ 679) ($ 679) ($	December31
	115,974 $ 2,320 6,411 56,498 1,965 2,152 1,777 7,831 - 194,928 $ 52) ($ 52) ($		12,362) ($ 1,838) ( 191 94) ( 1,359) ( - 867 7,831) ( 2,446 19,980) ($ - $ - $ 19,980) ($	- $ - - - - 48) ( - - - 48) ($ 627) ($ 627) ($ 675) ($

~57~

Year ended December 31, 2023

								Recognised
			Recognised					in other
			in	profit	or	comprehensive
		January1		loss				income		December31
Temporary differences
Deferred tax assets:
Allowance for inventory valuation	$	118,220	($	2,246)			$	-		$	115,974
losses and loss for obsolete and slow-
moving inventories
Allowance for bad debts that exceeds the
limit for tax purpose		2,786	(		466)			-			2,320
Unused compensated absences for
employees		5,957			454			-			6,411
Loss on long-term foreign investments		56,700	(		202)			-			56,498
Unrealised loss on valuation of financial
assets and liabilities		-		1,965				-			1,965
Accumulated translation adjustment of
long-term equity investments		2,538			-	(		386)			2,152
Unrealised exchange loss		-		1,777				-			1,777
Unrealised provisions		-		7,831				-			7,831
	$	186,201	$	9,113		($		386)		$	194,928
Temporary differences
Deferred tax liabilities:
Unrealised exchange gain	($	10,025)	$	10,025			$	-		$	-
Unrealised gain on valuation of financial
assets and liabilities	(	23,184)		23,184				-			-
Remeasurement of defined benefit
obligations	(	57)	(		52)			57	(		52)
	($	33,266)	$	33,157			$	57	($		52)
			$	42,270		($		329)

• D. The subsidiary’s expiration dates of unused tax losses and amounts of unrecognized deferred tax assets are as follows:

December 31, 2024

Year incurred	Amount filed/ assessed		Unused amount		Unrecognised deferred tax assets	Expiry year
2016 2017 2018 2019 2020 2021 2022	Amount assessed Amount assessed Amount assessed Amount assessed Amount assessed Amount assessed Amount assessed		5,054 $ 33,675 33,880 55,507 62,211 53,238 48,961 292,526 $		5,054 $ 33,675 33,880 55,507 62,211 53,238 48,961 292,526 $	Note Note Note Note Note Note Note

~58~

December 31, 2023

Year incurred	Amount filed/ assessed		Unused amount		Unrecognised deferred tax assets	Expiry year
2016 2017 2018 2019 2020 2021 2022	Amount assessed Amount assessed Amount assessed Amount assessed Amount assessed Amount assessed Amount assessed		5,531 $ 33,675 33,880 55,507 62,211 53,238 48,961 293,003 $		5,531 $ 33,675 33,880 55,507 62,211 53,238 48,961 293,003 $	Note Note Note Note Note Note Note

• Note: Loss carryforward was not limited to the expiry year according to the Enterprise Income Tax Act of Germany.

• E. The Company’s income tax returns through 2022 have been assessed and approved by the Tax Authority.

• F. Applicable tax rate:

Name of subsidiary Applicable Income Tax Act Applicable tax rate SAMF Enterprise Income Tax Act of Germany Applicable tax rate 30%

(28) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares			Year ended December31,2024		Earnings per share (indollars)
		Amount aftertax		Weighted average number of ordinary shares outstanding (shareinthousands)
		755,484 $ 755,484 - 755,484 $		229,096 229,096 741 229,837	3.30 $ 3.29 $

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==> picture [482 x 280] intentionally omitted <==

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

Year ended December 31, 2023
Weighted average number of Earnings
Amount ordinary shares outstanding per share
after tax (share in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders $ 608,436 210,999 $ 2.88
Diluted earnings per share
Profit attributable to ordinary
shareholders 608,436 210,999
Assumed conversion of all
dilutive potential ordinary shares
Employees’ compensation - 468
Profit attributable to ordinary
shareholders plus assumed
conversion of all dilutive
$ 608,436 211,467 $ 2.88
potential ordinary shares
----- End of picture text -----

When calculating diluted earnings per share, the Group assumes that the employees’ compensation will all be distributed in the form of shares for the period and the resulting potential shares will be included in the weighted average number of ordinary shares outstanding if those shares have a dilutive effect.

(29) Supplemental cash flow information

• A. Investing activities with partial cash payments

			Years ended	December31	December31
			2024		2023
Purchase of property, plant and equipment		$	409,954	$	366,941
Add: Opening balance of payable			131,804		369,600
on equipment
Add: Opening balance of notes			20,630		96,958
payable on equipment
Add: Ending balance of prepayments			59,135		71,621
for business facilities
Less: Ending balance of payable on	(		37,837)	(	131,804)
equipment
Less: Ending balance of notes payable	(		24,659)	(	20,630)
on equipment
Less: Opening balance of prepayments	(		71,621)	(	23,532)
for business facilities
Less: Cash from capitalized interest
payments	(		6,044)	(	9,317)
Cash paid during the period		$	481,362	$	719,837

~60~

Disposal of property, plant and equipment Add: Opening balance of receivable on equipment Add: Opening balance of other notes receivable Less: Ending balance of receivable on equipment Less: Ending balance of other notes receivable Cash received during the year	2024 2023 4,560 $ 22,399 $ 7,342 66,617 4,475 - - 7,342) ( - 4,475) ( 16,377 $ 77,199 $ Years endedDecember31

B. Net cash paid for repurchase of treasury shares:

			Years ended	December31	December31
			2024		2023
Repurchase of treasury shares		$	94,557	$	-
Less: Unpaid shares (Note)	(		81,341)		-
Cash Paid During the Period		$	13,216	$	-

(Note: shown as ‘other payables’)

(30) Changes in liabilities from financing activities

At January 1, 2024 Changes in cash flow from financing activities Changes in other non-cash items Impact of changes in foreign exchange rate At December 31, 2024		Short-term borrowings	Long-term borrowings (including currentportion)	Dividends payable	Lease liabilities	Liabilities from financing activities-gross
		965,144 $ 37,943 - 448 1,003,535 $	7,125,788 $ 1,845,262) ( 7,048 596 5,288,170 $	- $ 428,510) ( 428,510 - - $	8,498 $ 6,189) ( 9,205 - 11,514 $	8,099,430 $ 2,402,018) ( 604,763 1,044 6,303,219 $

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Short-term borrowings Long-term borrowings (including currentportion) Dividends payable At January 1, 2023 1,326,569 $ 7,118,378 $ - $ Changes in cash flow from financing activities 364,953) ( 360) ( 416,892) ( Changes in other non-cash items - 3,976 416,892 Impact of changes in foreign exchange rate 3,528 3,794 - At December 31, 2023 965,144 $ 7,125,788 $ - $	Lease liabilities Liabilities from financing activities-gross 11,596 $ 8,456,543 $ 7,401) ( 789,606) ( 4,303 425,171 - 7,322 8,498 $ 8,099,430 $	Lease liabilities Liabilities from financing activities-gross 11,596 $ 8,456,543 $ 7,401) ( 789,606) ( 4,303 425,171 - 7,322 8,498 $ 8,099,430 $
		8,099,430 $

7. Related Party Transactions

Key management compensation

Key management compensation
Short-term employee benefits Post-employment benefits Share-based payments	Years ended December 31
	2024 28,921 $ 128 1,476 30,525 $	2023
		24,144 $ 216 1,295
		25,655 $

8. Pledged Assets

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

Pledged asset Property, plant and equipment Pledged time deposits (Note)	December31,2024 December31,2023 Purpose 4,356,300 $ 4,506,886 $ Long-term borrowings 35,480 32,947 Guarantee deposits for CPC corporation and purchases of materials 4,391,780 $ 4,539,833 $ Bookvalue	Purpose
	December31,2024 4,356,300 $ 35,480 4,391,780 $

Note: Shown as non-current financial assets at amortized cost.

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Commitments

Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:

Property, plant and equipment	December31,2024 102,180 $

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(2) Contingencies

The Group entered into the Sales Representation Agreement (the “Agreement”) with the German entity, LCTec GmbH (“LCTec” (Note)), in 2011. The Agreement stipulated that LCTec provides services such as sales management and technical support. The period of the Agreement was to August 31, 2016. Except for a notice in advance of 90 days for cancelling the automatic renewal, the Agreement could continue to be renewed for 2 years automatically. The Group notified LCTec to cancel the automatic renewal in April 2018. The Group later discovered there were flaws that made the Agreement entered into invalid and notified LCTec to terminate the Agreement immediately in August 2018.

LCTec filed an application to a German arbitration institution for commencing an arbitration in December 2021 and requested the Group to propose the commission reports from November 2018 to November 2021 then pay the commissions and interests based on the reports to it. The management assessed the results of the repayment and recorded the profit or loss recognised for the provision as operating expenses and finance costs according to the nature after taking appropriate legal advice for the year ended December 31, 2023.

The Group received an arbitral award in September 2024, which ruled that the Group shall propose related commission reports in accordance with the agreement, and shall pay the commissions and interests to LCTec based on the commission reports, as well as pay the agent compensation amounting to EUR 1,343 thousand and its interests. In September 2024, the Group had paid related agent compensation and interest expense amounting to $74,154 thousand based on the result of arbitral award, which were recognised as other losses and finance costs, respectively. Additionally, in October 2024, the Group proposed the commission reports and paid the commissions amounting to EUR 1,993 thousand ($69,143 thousand) in accordance with the agreement. As of December 31, 2024, the amount paid based on the commission reports which were proposed by the Group in accordance with the agreement is yet to be confirmed by LCTec. However, the interests arising from the related commissions have been estimated and accrued as provision based on the basic interest rate in accordance with Article 247 of the German Commercial Law.

Note: The entity had changed its name on September 25, 2018. Its original name was SuperAlloy International GmbH.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

• (1) Refer to Note 6(19)E.(b) for the details of the appropriation of 2024 earnings.

• (2) On March 3, 2025, the Board of Directors of the Company resolved to repurchase its own outstanding ordinary shares in order to enhance its credit rating and the stockholders’ equity. The Group expected to repurchase 8,000 thousand shares within 2 months, starting from March 4, 2025,

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which accounted for 3.36% of the Company’s issued shares.

12. Others

(1) Capital management

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

(2) Financial instruments

A. Financial instruments by category

Financialassets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost (including non-current) Notes receivable Accounts receivable Other receivables Guarantee deposits paid (shown as other non-current assets) Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities held for trading Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Other accounts payable Long-term borrowings (including current portion) Lease liability	December31,2024 55,256 $ 2,153,486 $ 35,480 930 1,054,347 27,629 35,861 3,307,733 $ December31,2024 66 $ 1,003,535 $ 330,397 118,323 754,773 7,495,198 $ 11,514 $ 5,288,170	December31,2023
		- $
		1,237,045 $ 32,947 4,475 1,016,780 76,704 45,517
		2,413,468 $
		December31,2023
		9,824 $
		965,144 $ 369,672 99,482 679,658 7,125,788
		9,239,744 $
		8,498 $

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• B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial position and financial performance.

• (b) Risk management is carried out by a central treasury department (Group treasury). Group treasury identifies, evaluates and hedges financial risks such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments and investment of excess liquidity in close co-operation with the operating units.

• (c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, EUR and JPY. Foreign exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

• ii. Management has set up a policy to require the Group to manage its foreign exchange risk against its functional currency. Each unit of the Group is required to hedge its entire foreign exchange risk exposure with the Group treasury. Each unit of the Group uses natural hedges or forward foreign exchange contracts with the Group treasury to manage and hedge the foreign exchange risk arises from future commercial transactions and recognised assets and liabilities. Foreign exchange risk arises when future commercial transactions and recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency.

• iii. The Group hedges foreign exchange rate by using foreign exchange swap contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

• iv. The Group’s businesses involve some non-functional currency operations. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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December 31, 2024

(Foreign currency: functional currency) Financialassets	Foreign currency amount (Inthousands) 1,611 $ 1,525 8,116,229 1,070 $ 18,023 $ 9,165 1,269,319 100,752 $ 725 $ 711 12,443 $	Exchangerate 32.7850 34.1400 0.2099 32.7850 32.7850 34.1400 0.2099 0.2099 32.7850 34.1400 32.7850	Book value (NTD)
			52,805 $ 52,049 1,703,596 35,080 $ 590,884 $ 312,893 266,430 21,148 $ 23,769 $ 24,274 407,944 $
Monetaryitems Bankdeposits USD:NTD EUR:NTD JPY:NTD Financial assets at amortised cost
USD:NTD Receivables USD:NTD EUR:NTD JPY:NTD Current financial assets at fair value through profit or loss
EUR:NTD Financial liabilities Monetary items Payables USD:NTD EUR:NTD Bank borrowings USD:NTD

~66~

			December31,2023
	Foreign currency
		amount			Book value
	(Inthousands)		Exchangerate		(NTD)
(Foreign currency:
functional currency)
Financialassets
Monetaryitems
Bankdeposits
USD:NTD	$	16,106	30.7050	$	494,535
EUR:NTD		2,387	33.9800		81,114
JPY:NTD		2,721,324	0.2172		591,072
Financial assets at
amortised cost
USD:NTD	$	1,060	30.7050	$	32,947
Receivables
USD:NTD	$	19,478	30.7050	$	598,072
EUR:NTD		8,665	33.9800		294,437
JPY:NTD		1,167,294	0.2172		253,536
Current financial assets
at fair value through
profit or loss
EUR:NTD	$	49	33.9800	$	1,670
Financial liabilities
Monetaryitems
Payables
USD:NTD	$	459	30.7050	$	14,094
EUR:NTD		2,230	33.9800		75,775
Current financial
liabilities at fair value
throughprofit or loss
USD:NTD	$	374	30.7050	$	11,494
v. The Group’s subsidiaries conduct forward foreign exchange contracts.				Foreign currency
amount is the notional principal. Exchange rate is forward exchange rate that is
estimated to be settled at the balance sheet date, and the book value					is the amount
recognized.

vi. The total net exchange gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2024 and 2023, amounted to $59,695 thousand and $18,697 thousand, respectively.

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

(Foreign currency: functional currency) Financialassets Monetaryitems Cash inbanks USD:NTD EUR:NTD JPY:NTD Financial assets at amortised cost	(Foreign currency: functional currency) Financialassets Monetaryitems Cash inbanks USD:NTD EUR:NTD JPY:NTD Financial assets at amortised cost		Degree of variation Effect on profit or loss Effect on other comprehensive income 1% 528 $ - $ 1% 520 - 1% 17,036 - 1% 351 $ - 1% 5,909 $ - 1% 3,129 - 1% 2,664 - 1% 211 $ - 1% 238 $ - 1% 243 - 1% 4,079 $ - December31,2024 Sensitivity analysis	Degree of variation Effect on profit or loss Effect on other comprehensive income 1% 528 $ - $ 1% 520 - 1% 17,036 - 1% 351 $ - 1% 5,909 $ - 1% 3,129 - 1% 2,664 - 1% 211 $ - 1% 238 $ - 1% 243 - 1% 4,079 $ - December31,2024 Sensitivity analysis	Degree of variation Effect on profit or loss Effect on other comprehensive income 1% 528 $ - $ 1% 520 - 1% 17,036 - 1% 351 $ - 1% 5,909 $ - 1% 3,129 - 1% 2,664 - 1% 211 $ - 1% 238 $ - 1% 243 - 1% 4,079 $ - December31,2024 Sensitivity analysis
				Sensitivity analysis
			Degree of variation	Effect on profit or loss
			1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%	528 $ 520 17,036 351 $ 5,909 $ 3,129 2,664 211 $ 238 $ 243 4,079 $	- $ - - - - - - - - - -
	USD:NTD Receivables USD:NTD EUR:NTD JPY:NTD Current financial assets at fair value through profit or loss
JPY:NTD Financial liabilities Monetaryitems Payables USD:NTD EUR:NTD Bankborrowings USD:NTD

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(Foreign currency: functional currency) Financialassets Monetaryitems Cash inbanks USD:NTD EUR:NTD JPY:NTD Financial assets at amortised cost	(Foreign currency: functional currency) Financialassets Monetaryitems Cash inbanks USD:NTD EUR:NTD JPY:NTD Financial assets at amortised cost		Degree of variation Effect on profit or loss Effect on other comprehensive income 1% 4,945 $ - $ 1% 811 - 1% 5,911 - 1% 329 $ - 1% 5,981 $ - 1% 2,944 - 1% 2,535 - 1% 17 $ - 1% 141 $ - 1% 758 - 1% 115 $ - December31,2023 Sensitivity analysis	Degree of variation Effect on profit or loss Effect on other comprehensive income 1% 4,945 $ - $ 1% 811 - 1% 5,911 - 1% 329 $ - 1% 5,981 $ - 1% 2,944 - 1% 2,535 - 1% 17 $ - 1% 141 $ - 1% 758 - 1% 115 $ - December31,2023 Sensitivity analysis	Degree of variation Effect on profit or loss Effect on other comprehensive income 1% 4,945 $ - $ 1% 811 - 1% 5,911 - 1% 329 $ - 1% 5,981 $ - 1% 2,944 - 1% 2,535 - 1% 17 $ - 1% 141 $ - 1% 758 - 1% 115 $ - December31,2023 Sensitivity analysis
				Sensitivity analysis
			Degree of variation	Effect on profit or loss
			1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%	4,945 $ 811 5,911 329 $ 5,981 $ 2,944 2,535 17 $ 141 $ 758 115 $	- $ - - - - - - - - - -
	USD:NTD Receivables USD:NTD EUR:NTD JPY:NTD Current financial assets at fair value through profit or loss
USD:NTD Financial liabilities Monetaryitems Payables USD:NTD EUR:NTD Current financial liabilities at fair value throughprofit or loss
USD:NTD

Price risk

i. The Group’s financial instruments, which are exposed to price risk, are the held financial assets at fair value through profit or loss. To manage its price risk arising from investments in financial instruments, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

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• ii. The Group’s investments in financial instruments comprise funds and unlisted stocks issued by the domestic and foreign companies. The prices of financial instruments would change due to the change of the future value of investee companies. If the prices of these financial instruments had increased/decreased by 1% with all other variables held constant, profit or loss for the years ended December 31, 2024 and 2023 would have increased/decreased by $442 thousand and $0 thousand, respectively, as a result of gains/losses on financial instruments classified as at fair value through profit or loss.

Cash flow and fair value interest rate risk

• iii. The Group’s interest rate risk arises from short-term and long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. However, partial interest rate risk is offset by cash and cash equivalents held at variable rates. For the years ended December 31, 2024 and 2023, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and Euros.

• iv. If the interest rates of had increased or decreased by 0.25%, the maximum impact on the net of tax for the years ended December 31, 2024 and 2023 would have decreased or increased by $15,729 thousand and $20,227 thousand, respectively.

• (b) Credit risk

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

• ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard receipt or payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

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

• iv. The Group adopts assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

  • If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• v. The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 1 year.

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

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

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

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

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

• vii. The Group classifies customers’ accounts receivable by applying the modified approach using a provision matrix based on the loss rate methodology to estimate the expected credit loss.

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

• ix. The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2024 and 2023, the provision matrix is as follows:

At December31,2024 Not past due Up to 30 days 31 to 90 days 91 to 180 days 181 to 365 days Over 1 year AtDecember31,2023 Not past due Up to 30 days 31 to 90 days 91 to 180 days 181 to 365 days Over 1 year	Expected loss rate 0.01% 0.14% 0.59% 3.01% 3.07% 100% Expectedlossrate 0.09% 1.01% 7.18% 14.87% 62.33% 100%	Total bookvalue 992,055 $ 50,669 6,148 4,553 1,304 295 1,055,024 $ Totalbookvalue 953,213 $ 53,296 9,509 2,791 1,285 7,220 1,027,314 $	Loss allowance
			100 $ 69 36 137 40 295
			677 $
			Loss allowance
			877 $ 538 683 415 801 7,220
			10,534 $

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

			2024			2023
		Accounts receivable			Accounts receivable
At January 1		$	10,534		$	10,961
Write-offs of allowance for
uncollectible accounts	(		665)			-
Reversal allowance of impairment loss	(		9,192)	(		427)
At December 31		$	677		$	10,534

(c) Liquidity risk

• i. Group treasury monitors rolling forecasts of the liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

• ii. Group treasury invests surplus cash in interest bearing current accounts, time deposits and beneficiary certificates, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

• iii. The Company has the following undrawn borrowing facilities:

iii. The Company has the following undrawn borrowing facilities:
December31,2024	December31,2023
Floating rate
Expiring within one year 2,609,127 $	2,000,000 $
iv. The table below analyses the Group’s non-derivative financial	liabilities into relevant
maturity groupings based on the remaining period at the balance sheet date to the
contractual maturity date for non-derivative financial liabilities.

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December 31, 2024 Non-derivative financial liabilities	Less than 3months	Between 3 months and1year	Between 1 and 2 year(s)	Between 2 and 5 years	Over 5 years	Total
	452,707 $ 329,256 115,475 754,773 287,944 1,379 - $ Less than 3months	560,170 $ 1,141 2,848 - 824,258 4,136 66 $ Between 3 months and 1year	- $ - - - 1,047,731 3,035 - $ Between 1 and 2 year(s)	- $ - - - 1,540,832 1,440 - $ Between 2 and 5 years	- $ - - - 2,029,893 1,920 - $ Over 5 years	1,012,877 $ 330,397 118,323 754,773 5,730,658 11,910 66 $ Total
Short-term borrowings (Note) Notes payable Accounts payable Other payables Long-term borrowings (including current portion; Note) Lease liability (Note) Derivative financial liabilities
Forward exchange contract December 31, 2023 Non-derivative financial liabilities
	567,197 $ 368,560 95,719 679,658 554,003 1,882 - $	400,476 $ 1,112 3,763 - 782,876 3,382 9,824 $	- $ - - - 1,754,131 2,170 - $	- $ - - - 2,322,060 1,170 - $	- $ - - - 2,279,489 - - $	967,673 $ 369,672 99,482 679,658 7,692,559 8,604 9,824 $
Short-term borrowings (Note) Notes payable Accounts payable Other payables Long-term borrowings (including current portion; Note) Lease liability (Note) Derivative financial liabilities
Forward exchange contract

Note: The amount includes expected future interest payments.

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(3) Fair value information

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

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

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in derivative instruments is included in Level 2.

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

• B. Financial instruments not measured at fair value

The Group’s financial instruments not measured at fair value includes the carrying amount of cash and cash equivalents, accounts receivable, other receivables, financial assets at amortised cost, guarantee deposits paid (shown as other non-current assets) , short-term borrowings, notes payable, accounts payable, other payables and long-term borrowings.

• C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2024 and 2023 are as follows:

• (a) The related information of natures of the assets and liabilities is as follows:

December 31, 2024 Liabilites Recurringfairvaluemeasurements Financial liabilites mandatorily measured at fair value through profit or loss -Fund -Financial instruments Liabilites Recurringfairvaluemeasurements Financial liabilites mandatorily measured at fair value through profit or loss -Derivative instruments	Level 1 19,315 $ - 19,315 $ - $	Level 2 - $ - - $ 66 $	Level3 - $ 35,941 35,941 $ - $	Total
				19,315 $ 35,941
				55,256 $
				66 $

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December 31, 2023 Liabilites Recurringfairvaluemeasurements Financial liabilites mandatorily measured at fair value through profit or loss -Derivative instruments	Level 1 - $	Level 2 9,824 $	Level3 - $	Total 9,824 $

• D. The methods and assumptions the Group used to measure fair value are as follows:

• (a) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Open-end fund Net asset Market quoted price value

• (b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).

• (c) When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• (d) The valuation of derivative financial instruments is based on valuation model widely accepted by market participants. Forward exchange contracts are usually valued based on the current forward exchange rate.

• (e) For the years ended December 31, 2024 and 2023, there was no transfer between Level 1 and Level 2.

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

023:
At January 1 purchase this period At December 31		2024		2023
		- $ 35,941 35,941 $		- $ - - $

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

Non-derivative equity instrument: Unlisted shares	Fair value as of December 31, 2024	Valuation technique	Significant unobservable inputs Range (weighted average) Weighted Average Cost of Capital 7.08% long-term pre- tax operating profit -	Relationship of inputs to fair value
	35,941 $	Discounted Cash Flow Method		The higher the discount for weighted average cost of capital, the lower the fair value The higher the long- term pre-tax operating margin, the higher the fair value

December 31, 2023: Not applicable.

13. Supplementary Disclosures

(1) Significant transactions information

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

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

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

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.

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

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

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

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

• I. Trading in derivative financial instruments undertaken during the reporting periods: Please refer

~76~

to Notes 6(2) and 12(3).

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

(2) Information on investees

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

(3) Information on investments in Mainland China

• A. Basic information: None.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Major shareholders information

Major shareholders information: Not applicable.

14. Operating Segment Information

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the chief operating decision-maker that are used to make strategic decisions. It has been identified that the Group has two reportable operating segments which were divided based on different products including rims and other products (chassis components, aerospace components and aluminium, etc.).

There is no material change in the basis for formation of entities and division of segments in the Group or in the measurement basis for segment information during this period.

(2) Measurement of segment information

• A. The Group did not allocate income tax expenses to reportable segments. The reportable amounts are in agreement with the amount stated in the report to the Chief Operating DecisionMaker.

• B. The accounting policies of the operating segments are in agreement with the significant accounting policies summarized in Note 4. The Group’s segment profit or loss is measured with the gross profit, which is used as a basis for the Group in assessing the performance of the operating segments.

(3) Information about segment revenue and segment income (loss)

For the years ended December 31, 2024 and 2023, the segment information provided to the chief operating decision-maker for the reportable segments is as follows:

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YearendedDecember31,2024 Revenue Revenue from external customers Inter-segment revenue Total segment revenue Segment income YearendedDecember31,2023 Revenue Revenue from external customers Inter-segment revenue Total segment revenue Segment income	Wheels 6,684,529 $ - 6,684,529 $ 1,913,337 $ Wheels 6,630,143 $ - 6,630,143 $ 1,623,982 $		All other segments 789,050 $ - 789,050 $ 90,356 $ All other segments 1,149,173 $ - 1,149,173 $ 110,433 $	Write-offs - $ - - $ - $ Write-offs - $ - - $ - $	Total
					7,473,579 $ -
					7,473,579 $
					2,003,693 $
					Total
					7,779,316 $ -
					7,779,316 $
					1,734,415 $

(4) Reconciliation for segment revenue and segment income (loss)

• A. Total revenue is consistent with the total revenue of reportable operating segments. No reconciliation required.

• B. Pre-tax adjustment is consistent with the reportable segment income or loss. No reconciliation required.

(5) Information and products and services

The Group is engaged in forging, manufacturing, processing and trading of aircraft components, vehicles and motorcycle components, aluminium-copper, steel-titanium alloys, hardware parts, and mold coupler, which are divided into wheels, chassis parts and aerospace parts.

Wheels Chassis parts and aerospace parts	Years endedDecember31	Years endedDecember31
	2024 6,684,529 $ 789,050 7,473,579 $	2023
		6,630,143 $ 1,149,173
		7,779,316 $

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(6) Geographical information

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

Germany Taiwan UK USA Europe Others	Revenue Non-current assets Revenue Non-current assets 2,345,243 $ 314,459 $ 1,813,179 $ 350,846 $ 1,883,856 7,593,275 1,636,519 8,092,002 1,588,614 - 1,936,854 - 1,160,090 - 1,886,861 - 486,451 - 481,456 - 9,325 - 24,447 - 7,473,579 $ 7,907,734 $ 7,779,316 $ 8,442,848 $ YearendedDecember31,2024 YearendedDecember31,2023

The Group’s geographical revenue is calculated based on the countries where sales occur. Europe refers to European countries other than the United Kingdom and Germany, including Italy, Austria, Belgium, Slovakia, Czechia, Luxembourg and Sweden. Other countries include Australia, Vietnam and China. Non-current assets refer to property, plant and equipment, right-of-use assets, intangible assets and other non-current asset, but exclude financial instruments, guarantee deposits paid and deferred income tax assets.

(7) Major customer information

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

==> picture [469 x 14] intentionally omitted <==

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

Year ended December 31, 2024 Year ended December 31, 2023
----- End of picture text -----

A company B company C company	Revenue 1,508,427 $ 1,223,921 1,079,716 3,812,064 $	Segment 20 16 14 50	Revenue 982,864 $ 1,275,133 746,080 3,004,077 $	Segment
				13 16 10
				39

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SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Loans to others

Year ended December 31, 2024

Maximum outstanding balance during No. General ledger Is a the year ended Balance at (Note 1) Creditor Borrower account relatedparty December 31,2024 December 31,2024 Table 1	Maximum outstanding balance during No. General ledger Is a the year ended Balance at (Note 1) Creditor Borrower account relatedparty December 31,2024 December 31,2024 Table 1	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans Ceiling on granted to total loans a singleparty granted Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Limit on loans Ceiling on granted to total loans a singleparty granted Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Limit on loans Ceiling on granted to total loans a singleparty granted Footnote Expressed in thousands of NTD (Except as otherwise indicated)
								Item	Value
0 SUPERALLOY INDUSTRIAL CO., LTD. SuperAlloy Manufaktur GmbH Other receivables Y 122,904 $	122,904 $	122,904 $	1.64%	Note 2	296,621	Not applicable	-	None	-	296,621 $	1,963,068 $

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

(1) The Company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’. Note 2: The amount of transactions with the borrower for a most recent year.

Note 3: The amount of loan at the end of the period has been translated at the exchange rate prevailing at December 31, 2024.

Note 4: For the companies having business relationship with the Company, the ceiling on total loans granted shall not exceed 20% of the creditor’s net worth; limit on loans granted to a single party shall not exceed the amount of business transactions occurred between the creditor and borrower in the latest one year.

Table 1 Page 1

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Provision of endorsements and guarantees to others

Year ended December 31, 2024

Party being endorsed/ guaranteed

Limit on Maximum Ratio of accumulated Ceiling on total Relationship endorsements/ outstanding Amount of endorsement/ amount of Provision of Provision of Provision of with the guarantees endorsement/ Outstanding endorsements/ guarantee amount to endorsements/ endorsements/ endorsements/ endorsements/ endorser provided for a guarantee endorsement/ guarantees net asset value of the guarantees guarantees by guarantees by guarantees to Number /guarantor single party amount as of guarantee amount at Actual amount secured endorser/ provided parent company subsidiary the party in (Note 1) Endorser/guarantor Company name (Note 2) (Note 3) December 31, 2024 December 31, 2024 drawn down with collateral guarantor company (Note 3) to subsidiary to parent company Mainland China Footnote 0 SUPERALLOY SuperAlloy 2 $ 2,944,601 $ 315,697 $ 315,697 $ 186,151 $ - 3.22% $ 2,944,601 Y N N INDUSTRIAL CO., Manufaktur GmbH LTD.

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

• (1)The Company is ‘0’.

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

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:

• (1) Having business relationship.

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

(3) The Endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/ guaranteed company.

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

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

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

Note 3: Limit on endorsements/guarantees provided for a single party is 20% of the Company's net assets. However, limit on endorsements/guarantees provided for a single overseas affiliate is 30% of the Company's net assets.

Table 2 Page 1

Table 3

Expressed in thousands of NTD

SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

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

Year ended December 31, 2024

(Except as otherwise indicated)

Securities held by	Marketable securities	Relationshipwith the securities	General ledger account		As of Dece	mber 31,2024		Footnote
				Number of shares	Book value	Ownership (%)	Fair value
SUPERALLOY INDUSTRIAL CO., LTD. SUPERALLOY INDUSTRIAL CO., LTD. SUPERALLOY INDUSTRIAL CO., LTD.	Funds-Franklin Stable Monthly Income Fund (JPY Hedged Class A) Stocks-GlobalX Japan Semiconductor ETF Kai-Hong Energy Co., Ltd.	None None None	Financial assets at fair value through profit or loss - current, mandatory Financial assets at fair value through profit or loss - current, mandatory Financial assets at fair value through profit or loss - non-current, mandatory v	3,594 aluation adjustment	13,545 $ 8,735 35,941	- - 4.16%	11,897 $ 7,418 35,941
					58,221 $ 2,965) (		55,256 $
					55,256 $

Table 3 Page 1

SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

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

Year ended December 31, 2024

				Year ended December 31, 2024	Year ended December 31, 2024
Purchaser/seller Table 4	Counterparty	Relationship counterparty		Transaction			Percentage of total notes/accounts Unit price Credit term Balance (payable) Footnote (Note 1) Notes/accounts receivable(payable) (Except as otherwise indicated) Expressed in thousands of NTD compared to third party transactions Differences in transaction terms
			Purchases (sales)	Amount	Percentage of totalpurchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts (payable)
SuperAlloy Manufaktur GmbH	SUPERALLOY INDUSTRIAL CO., LTD.	The Company's subsidiary	Outsourcing expenses	296,621 $	3.97%	Payment term is 30 days after monthly billings.	Note 1	Note 1	21,686 $	2.05%	Note 2

Note 1: It is refer to the market price and would be determined based on mutual agreement. Note 2: The transaction had been eliminated in the consolidated financial statements.

Table 4 Page 1

Table 5

SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

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

December 31, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2024	Balance as at December 31,2024	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date(Note 1)	Allowance for doubtful accounts	Footnote
			General ledger account	Amount		Amount	Action taken
SUPERALLOY INDUSTRIAL CO., LTD.	SuperAlloy Manufaktur GmbH	The Company's subsidiary	Other receivables	124,593 $	-	- $	-	- $	- $	Notes 2, 3

• Note 1: Amounts have been collected as of March 3, 2025.

Note 2: The transaction had been eliminated in the consolidated financial statements. Note 3: The amount is in the nature of a loan of funds, thus the turnover rate is not applicable.

Table 5 Page 1

SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Table 6

Significant inter-company transactions during the reporting periods

Year ended December 31, 2024

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0	SUPERALLOY INDUSTRIAL CO., LTD. SUPERALLOY INDUSTRIAL CO., LTD.	SuperAlloy Manufaktur GmbH SuperAlloy Manufaktur GmbH	1 1	Outsourcing expenses Other receivables	296,621 $ 124,593	Payment term is 30 days after monthly billings. Interests are paid semi- annually.	3.97% 0.71%

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

• (1) Parent company is ‘0’.

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

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries

or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

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

Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Note 5: It is refer to the market price and would be determined based on mutual agreement.

Table 6 Page 1

SUPERALLOY INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Information on investees Year ended December 31, 2024

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Expressed in thousands of NTD (Except as otherwise indicated)

Initial investment amount Shares held as at December 31, 2024 Net profit (loss) of Investment income the investee for the (loss) recognised by the Balance as at Balance as at year ended Company for the year December 31, December 31, Number of December 31, 2024 ended December 31, Investor Investee (Note 1) Location Main business activities 2024 2023 shares Ownership (%) Book value (Note 2) 2024 (Note 2) Footnote SUPERALLOY INDUSTRIAL CO., LTD. SuperAlloy Manufaktur GmbH Germany Coating and manufacturing $ 358,258 $ 358,258 - 100.00 $ 53,575 $ 471 $ 471 of rims

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at December 31, 2024’ should fill orderly in the Company’s (public company’s) information on investees and every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.

• (2) The ‘Net profit (loss) of the investee for the year ended December 31, 2024’ column should fill in amount of net profit (loss) of the investee for this period.

(3) The ‘Investment income (loss) recognised by the Company for the year ended December 31, 2024’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

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