Scientech - Annual Report 2024 | FinancialReports.eu

Stock Code: 3583

SCIENTECH CORPORATION and Subsidiaries

Consolidated Financial Statements and Independent Auditors’ Report 2024 and 2023

Address:11th Floor, No. 208, Ruiguang Road, Neihu District, Taipei City Tel: (02)8751-2323

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.

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`§` Table of Contents `§`

I T E M 1. Cover 2. Table of Contents 3. Declaration of Consolidated Financial Statements of Affiliated Companies 4. Independent Auditors’Report 5. Consolidated Balance Sheets 6. Consolidated Statement of Comprehensive Income 7. Consolidated Statement of Changes in Equity 8. Consolidated Statement of Cash Flows 9. Notes to the Consolidated Financial Statements (I) Company History (II) Date and procedures of approval of the financial statements (III) Application of New Standards, Amendments, and Interpretations (IV) Summary of significant accounting policies (V) Significant Accounting Judgments, Assumptions, and Major Sources of Estimation Uncertainty (VI) Description of Major Accounts (VII) Related Party Transactions (VIII) Pledged and Mortgaged Assets (IX) Significant Commitments (X) Significant Disaster Loss (XI) Significant Subsequent Events (XII) Others (XIII) Supplementary Disclosures 1. Information on Major Transactions 2.Information on Investees 3. Information on Investments in Mainland China 4. Information on Major Shareholders (XIV) Segment Information	P A G E 1 2 3 4`～`8 9 10`～`13 14 15`～`17 18 18 18`～`21 21`～`36 36`～`37 37`～`73 74`～`76 76 76 - 42 76`～`78 78`～`84 78`、`85 78`、`86 78`、`87 78`～`79	NOTES TO THE
		FINANCIAL STATEMENTS - - - - - - - - 1 2 3 4 5 6`～`27 28 29 30 - 11 31 32 32 32 32 33

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Declaration of Consolidated Financial Statements of Affiliated Companies

Considering that the companies to be included into the consolidated financial statements of affiliates under the “Criteria Governing Preparation of Affiliation Reports, Consolidated business Reports and Consolidated Financial Statements of Affiliated Enterprises ” were the same as those to be included into the consolidated financial statements of the parent and subsidiaries under IFRS 10 in 2024 (from 1 January 2024 to 31 December 2024) and the related information to be disclosed in the consolidated financial statements of affiliates were already disclosed in said consolidated financial statements of the parent and subsidiaries, no consolidated financial statements of affiliates were prepared separately. Hereby declare

Company name: SCIENTECH CORPORATION

Chairman of the Board: HUNG-LIANG HSIEH

27 February 2025

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Independent Auditors `’` Report

SCIENTECH CORPORATION The Board of Directors and Shareholders:

Audit opinion

SCIENTECH CORPORATION and its subsidiaries (collectively referred to as the SCIENTECH Group) as of 31 December 2024 and 2023, and the Consolidated Balance Sheets, for the period from 1 January through 31 December 2024 and 2023, and the Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Equity, Consolidated Statements of Cash Flows, and the Notes on Consolidated Financial Statements (including the summary of significant accounting policies), have been audited by our accountants.

In our opinion, the aforementioned Consolidated Financial Statements fairly present, in all material respects, the consolidated financial position of the SCIENTECH Group as of December 31, 2024 and 2023, and the consolidated financial performance and consolidated cash flows for the periods from January 1 to December 31, 2024 and 2023, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, interpretations, and Statement on Internal Control (SIC) approved and promulgated by the Financial Supervisory Commission.

Basis of Audit Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Consolidated Financial Statements section of our report. The personnel of our affiliated firm subject to independence regulations have

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maintained independence from the SCIENTECH Group in accordance with the International Code of Ethics for Professional Accountants (IESBA Code), and fulfilled other responsibilities under that code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters

Key audit matters refer to matters that, in our professional judgment, were of most significance in the audit of the Consolidated Financial Statements of the SCIENTECH Group for the year 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these issues.

The Key Audit Matters for the SCIENTECH Group's 2024 Consolidated Financial Statements are stated as follows:

Revenue recognition

The SCIENTECH Group's operating revenue from agency and manufacturing machines for the year 2024 is significant to the overall financial statements. Machine revenue is recognized when performance obligations are fulfilled. Since the company might recognize sales revenue before meeting the conditions for recognizing souvenir (merchandise) revenue, it is listed as a key audit matter.

Our main audit procedures to address the said matter included testing the effectiveness of the design and implementation of the internal control system pertaining to the recognition of machinery sale and discussing with the management about whether the accounting policy for revenue recognition is appropriate and consistently adopted; we also sampled customer sales documents to verify the transaction terms on the order or sale contract and check the acceptance certificate signed off by customers, so as to assess the correctness o f the recognized revenue.

Other Matters

SCIENTECH CORPORATION has prepared the Parent Company Only Financial Statement for the years 2024 and 2023, and our auditor has issued an audit report with unqualified opinions for reference.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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The management was responsible for fairly presenting these 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 were approved and promulgated by the Financial Supervisory Commission, and for maintaining the necessary internal control related to the preparation of these consolidated financial statements to ensure that these consolidated financial statements were free of material misstatements, whether due to fraud or errors.

During preparation of these consolidated financial statements, the management was also responsible for evaluating The Group ’s ability to continue as a going concern, disclosing going concern matters, and applying the going concern basis of accounting, unless the management intended either to liquidate The Group or to terminate its operations, or had no feasible alternatives but to do so.

The Group’s governance body (including the Audit Committee) was responsible for supervising the financial reporting procedures.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives in auditing the Consolidated Financial Statements 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 audit report. Reasonable assurance is a high level of assurance, but an audit conducted in accordance with the Auditing Standards cannot guarantee that a material misstatement in the Consolidated Financial Statements will always be detected. Misstatements can arise from fraud or error. Misstatements 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 exercised professional judgment and maintained professional skepticism throughout the audit. We also conduct the following tasks: 1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit

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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.

3.

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.

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

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 auditor’s 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 auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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.

Obtain sufficient and 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 directing, supervising, and executing the group's audit engagements and for forming the group's 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,

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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.

We determined the key audit matters for the audit of the SCIENTECH Group's 2024 Consolidated Financial Statements from the matters communicated ’ with those charged with governance. We describe these matters in our auditor s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter sho uld 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.

Deloitte & Touche Taiwan CPA: HUI-MIN HUANG

CPA: YU-CHENG HSIN

Approval No. from the Financial Approval No. from the Financial Supervisory Commission Supervisory Commission Financial-Supervisory-SecuritiesFinancial-Supervisory-SecuritiesAuditing-Order No.1070323246 Auditing-Order No.1120349008

27 February 2025

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SCIENTECH CORPORATION and its subsidiaries

Consolidated Balance Sheets

December 31, 2024 and 2023

Unit: NT$ thousand

C o d e 1100 1110 1170 1180 130X 1410 1470 11XX 1517 1550 1600 1755 1785 1840 1915 1975 1990 15XX 1XXX C o d e 2100 2130 2170 2219 2230 2252 2280 2399 21XX 2530 2570 2580 25XX 2XXX 3110 3200 3310 3320 3350 3300 3410 3420 3400 3XXX	A s s e t s Current Assets Cash and cash equivalents (Notes 4 and 6) Current financial assets at fair value through profit or loss(Notes 4 and 7) Notes and accounts receivable (Notes 4, 9, and 21) Accounts receivable - related parties (Notes 4, 9, 21, and 28) Inventories (Notes 4, 10, and 25) Prepayments Other current assets (Notes 15, 28, and 29) Total current assets Non-current assets Financial assets at fair value through other comprehensive income (Notes 4 and 8) Investments accounted for using equity method (Notes 4 and 12) Property, plant and equipment (Notes 4, 13, and 25) Right-of-use assets (Notes 4 and 14) Patent right (Note 4) Deferred tax assets (Notes 4 and 23) Prepayments for equipment (Note 13) Net defined benefit assets (Notes 4 and 19) Other non-current assets (Note 15) Total non-current assets Total Assets L i a b i l i t i e s a n d S t o c k h o l d e r s ’ E q u i t y Current liabilities Short-term borrowings (Note 16) Contract liabilities (Notes 4, 21, and 28) Notes payable and accounts payable Other payables (Notes 13, 18, and 28) Current tax liabilities (Notes 4 and 23) Short-term warranty provision (Note 4) Lease liabilities (Notes 4, 14, and 28) Other current liabilities Total current liabilities Non-current liabilities Bonds payable (Note 4 and 17) Deferred tax liabilities (Notes 4 and 23) Lease liabilities (Notes 4, 14, and 28) Total non-current liabilities Total liabilities Equity (Notes 4, 12, and 20) Capital stock Capital surplus Retained earnings Legal reserves Special reserve Unappropriated earnings Total retained earnings Other equity exchange differences on translation of foreign financial statements Unrealized valuation gains or losses on financial assets at fair value through other comprehensive income Total other equity interests Total stockholders’equity Total Liabilities and Equity	31 December 2024 A m o u n t `％` $ 7,014,917 30 2,480 - 590,216 3 - - 11,625,770 50 792,137 3 68,762 - 20,094,282 86 279,028 1 636,932 3 1,634,599 7 86,515 - 693 - 241,777 1 455,810 2 1,764 - 52,341 - 3,389,459 14 $ 23,483,741 100 $ 563,221 2 14,006,118 60 1,487,448 6 639,991 3 159,652 1 85,579 - 17,011 - 28,248 - 16,987,268 72 1,145,654 5 315,374 2 73,440 - 1,534,468 7 18,521,736 79 803,280 3 917,777 4 439,166 2 - - 2,641,716 11 3,080,882 13 55,395 - 104,671 1 160,066 1 4,962,005 21 $ 23,483,741 100	31 December 2023	31 December 2023
		A m o u n t $ 7,014,917 2,480 590,216 - 11,625,770 792,137 68,762 20,094,282 279,028 636,932 1,634,599 86,515 693 241,777 455,810 1,764 52,341 3,389,459 $ 23,483,741 $ 563,221 14,006,118 1,487,448 639,991 159,652 85,579 17,011 28,248 16,987,268 1,145,654 315,374 73,440 1,534,468 18,521,736 803,280 917,777 439,166 - 2,641,716 3,080,882 55,395 104,671 160,066 4,962,005 $ 23,483,741	A m o u n t $ 4,660,977 7,529 775,942 11,439 9,631,247 1,158,475 161,306 16,406,915 210,136 423,092 1,533,603 80,680 952 156,634 67,518 1,778 41,539 2,515,932 $ 18,922,847 $ 296,529 11,818,592 1,873,273 475,050 182,388 53,119 12,223 15,931 14,727,105 - 134,634 71,855 206,489 14,933,594 803,280 685,901 375,378 33,380 2,066,113 2,474,871 ( 10,578 ) 35,779 25,201 3,989,253 $ 18,922,847	`％`
				25 - 4 - 51 6 1 87 1 2 8 1 - 1 - - - 13 100 2 62 10 3 1 - - - 78 - 1 - 1 79 4 4 2 - 11 13 - - - 21 100

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

Chairman of the Board: HUNG-LIANG HSIEH Manager: MING-CHI HSU Accounting Manager: SHAO-CHE CHUANG

SCIENTECH CORPORATION and its subsidiaries Consolidated Statement of Comprehensive Income From January 1 to December 31, 2024 and 2023

Unit: NTD Thousand, except Earnings per share is dollars

C o d e Operating revenue (Notes 4, 21, and 28) 4100 Goods sales revenue 4600 Services revenue 4800 Other operating revenue 4000 Total operating revenue 5000 operating costs (Notes 10 and 22) 5900 gross profit from operations 5910 Realized (unrealized) gains on transactions with associates (Note 4 and 12) 5950 Realized operating gross profit Operating expenses (Notes 9, 22, and 28) 6100 Marketing expenses 6200 General and administrative expenses 6300 R&D expenses 6000 Total operating expenses 6900 Operating Income	2024	`％` 97 3 - 100 70 30 - 30 13 2 4 19 11	2023
	A m o u n t $ 9,400,488 277,278 10,514 9,688,280 6,787,607 2,900,673 5,154 2,905,827 1,197,462 215,263 377,553 1,790,278 1,115,549		A m o u n t $ 6,675,214 229,473 7,294 6,911,981 4,705,858 2,206,123 ( 4,791 ) 2,201,332 947,733 194,435 341,442 1,483,610 717,722	`％`
				97 3 - 100 68 32 - 32 14 3 5 22 10

(Continued)

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(Continued)

(Continued)
C o d e Non-operating income and expenses 7010 Other income (Note 4, 8, and 28) 7020 Other gains and losses 7050 Finance costs (Notes 4, 22, and 28) 7060 Share of profit or loss of associates accounted for using equity method (Notes 4 and 12) 7100 Income from interests(Notes 4 ) 7225 Gains on disposals of investments(Notes 12) 7630 Exchange gains or losses (Notes 4 and 31) 7670 Impairment loss (Notes 4 and 13) 7000 Total non-operating income and expenses 7900 Net profits before tax 7950 Tax expense (Notes 4 and 23) 8200 Net profit in the current year Other comprehensive income (Note 4) Items that will not be reclassified to profit or loss 8311 Re-measurements of defined benefit plans (Note 19) (Continued)	2024	`％` - - - - 2 - - - 2 13 3 10 -	2023
	A m o u n t $ 23,093 ( 2,904 ) ( 17,875 ) ( 22,717 ) 166,676 - 14,882 - 161,155 1,276,704 349,721 926,983 426		A m o u n t $ 37,993 ( 6,424 ) ( 4,587 ) ( 30,649 ) 121,266 80,634 ( 54,695 ) ( 916 ) 142,622 860,344 210,042 650,302 ( 217 )	`％`
				- - - - 2 1 ( 1 ) - 2 12 3 9 -

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(Continued) C o d e 8316 Unrealized valuation gains or losses on investment in equity instruments at fair value through other comprehensive income 8349 Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 23) 8310 Items that will be reclassified to profit or loss 8361 exchange differences on translation of foreign financial statements 8370 Share of other comprehensive income of associates accounted for using the equity method (Note 12) 8399 Income tax related to items that might be reclassified (Note 23) 8360 (Continued)	2024	`％` 1 - 1 - - - -	2023
	A m o u n t 68,892 ( 86 ) 69,232 $ 66,196 16,270 ( 16,493 ) 65,973		A m o u n t 71,574 43 71,400 ( $ 7,630 ) ( 8,759 ) 3,283 ( 13,106 )	`％`
				1 - 1 - - - -

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(Continued)

(Continued)
C o d e 8300 Other comprehensive income (net after tax) 8500 Total comprehensive income for the year Earnings per share (Note 24) 9710 Basic 9810 Diluted	2024	`％` 1 11	2023
	A m o u n t 135,205 $ 1,062,188 $ 11.54 $ 11.36		A m o u n t 58,294 $ 708,596 $ 8.10 $ 8.05	`％`
				1 10

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

Chairman of the Board: Manager: Accounting Manager: HUNG-LIANG HSIEH MING-CHI HSU SHAO-CHE CHUANG

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SCIENTECH CORPORATION and its subsidiaries

Consolidated Statement of Changes in Equity

From January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

C a p i t a l	R e t a i n	e d e a r n i n g s Special reserve Unappropriated e a r n i n g s $ 14,306 $ 1,793,497 - - - ( 57,010 ) 19,074 ( 19,074 ) - ( 289,181 ) - ( 12,247 ) - 650,302 - ( 174 ) 33,380 2,066,113 - ( 63,788 ) ( 33,380 ) 33,380 - ( 321,312 ) - - - 926,983 - 340 $ - $ 2,641,716	O t h e r	T o t a l stockholders`’` e q u i t y
			F o r e i g n o p e r a t i o n s Translation of F i n a n c i a l S t a t e m e n t s E x c h a n g e d i f f e r e n c e s $ 2,415 113 - - - - - ( 13,106 ) ( 10,578 ) - - - - - 65,973 $ 55,395
Thousand shares 81,139 - - - - ( 811 ) - - 80,328 - - - - - - 80,328	Legal reserves $ 318,368 - 57,010 - - - - - 375,378 63,788 - - - - - $ 439,166	Special reserve $ 14,306 - - 19,074 - - - - 33,380 - ( 33,380 ) - - - - $ -
				$ 3,582,486 ( 12,648 ) - - ( 289,181 ) - 650,302 58,294 3,989,253 - - ( 321,312 ) 231,876 926,983 135,205 $ 4,962,005

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

Chairman of the Board: HUNG-LIANG HSIEH

Manager: MING-CHI HSU

Accounting Manager: SHAO-CHE CHUANG

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SCIENTECH CORPORATION and its subsidiaries

Consolidated Statement of Cash Flows

From January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

C o d e Cash flow from operating activities A10000 Net profits before tax A20010 reconcile profit item A20100 Depreciation A20200 Amortization expense A20300 Expected credit reversal of impairment loss recognized in profit or loss A20900 Financial cost A21200 Income from interests A21300 Dividend Income A20400 Net loss (gain) of financial assets at fair value through profit or loss A22300 Share of profit or loss of associates accounted for using equity method A22500 (Gain) loss on disposal and retirement of property, plant, and equipment A23100 Gain on disposal of investments A23700 Impairment loss on non-financial assets A23900 (Realized) Unrealized gains on transactions with associates A24100 Unrealized foreign exchange loss (gain) A29900 Defined benefit cost A30000 Net changes in operating assets and liabilities A31150 notes and accounts receivable A31160 Accounts receivable - related parties A31200 Inventories A31230 Prepayments A31240 other current assets A32125 Contract liabilities A32150 Notes payable and accounts payable A32180 Other payables (Continued)	2024 $ 1,276,704 135,480 259 ( 4,781 ) 17,875 ( 166,676 ) ( 4,045 ) ( 2,794 ) 22,717 ( 4 ) - 353,180 ( 5,154 ) 35,865 599 208,155 12,443 ( 2,288,733 ) 380,048 98,046 2,053,672 ( 442,092 ) 135,132	2023
		$ 860,344 121,304 260 ( 3,806 ) 4,587 ( 121,266 ) ( 3,998 ) 248 30,649 12 ( 80,634 ) 339,097 4,791 ( 48,743 ) ( 22 ) 75,669 ( 7,071 ) ( 4,774,819 ) 642,190 25,688 4,153,305 ( 228,335 ) 76,023

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(Continued) C o d e A32200 short-term warranty provision A32230 Other current liabilities A32240 Net defined benefit liabilities A33000 Cash flow from operating activities A33100 Interest received A33300 Interest paid A33500 Income taxes paid AAAA Net cash flows from (used in) operating activities Cash Flow from Investing Activities B00200 Proceeds from disposal of financial assets at fair value through profit or loss B01800 Acquisition of long-term equity investments accounted for using the equity method B01900 Disposal of long-term equity investments accounted for using the equity method. B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal or property, plant and equipment B06700 Increase in other non-current assets B07600 Dividends received BBBB Net cash flows from (used in) investing activities Cash Flow from Financing Activities C00100 Increase in short-term borrowings C00200 Decrease in short-term borrowings C01200 proceeds from issuing bonds C04020 Repayment of principal of lease liabilities C04500 Cash dividends paid CCCC Net cash flows from financing activities (used in) DDDD Effects of exchange rate changes on cash and cash equivalents EEEE Increase in cash and cash equivalents	2024 31,436 12,317 ( 159 ) 1,859,490 166,676 ( $ 5,122 ) ( 295,413 ) 1,725,631 7,385 ( 215,133 ) - ( 546,820 ) 125 ( 10,703 ) 4,045 ( 761,101 ) 657,608 ( 401,761 ) 1,365,243 ( 17,593 ) ( 321,312 ) 1,282,185 107,225 2,353,940	2023
		12,290 ( 1,185 ) ( 131 ) 1,076,447 121,266 ( $ 4,641 ) ( 188,951 ) 1,004,121 38,716 - 48,940 ( 59,221 ) 3 ( 6,825 ) 3,998 25,611 326,685 ( 455,080 ) - ( 10,203 ) ( 289,181 ) ( 427,779 ) ( 22,927 ) 579,026

(Continued)

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(Continued) C o d e E00100 Cash and cash equivalents - beginning of year E00200 Cash and cash equivalents - end of year	2024 4,660,977 $ 7,014,917	2023
		4,081,951 $ 4,660,977

The accompanying notes are an integral part of the consolidated financial

statements.

Chairman of the Board: Manager: Accounting Manager: HUNG-LIANG HSIEH MING-CHI HSU SHAO-CHE CHUANG

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SCIENTECH CORPORATION and its subsidiaries Notes to the Consolidated Financial Statements

From January 1 to December 31, 2024 and 2023

(All amounts are in NT$ thousand unless otherwise specified)

1. Company History

SCIENTECH CORPORATION (The Company) was incorporated in October 1979. Mainly engaged in the research and development, production, sales, and maintenance of process equipment for semiconductors, liquid crystal displays (LCDs), light-emitting diodes (LEDs), and solar power generation; wafer reclaim; and general import and export, the Company was listed on the Taiwan Stock Exchange (TWSE) in March 2013.

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

2.

Date and procedures of approval of the financial statements

The Consolidated Financial Statements were approved at the Board meeting on 27 February 2025.

3. Application of New Standards, Amendments, and Interpretations

(I) First-time application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC interpretations (IFRIC), and SIC interpretations (SIC) (hereinafter collectively referred to as “ IFRSs ” ) approved and promulgated by the Financial Supervisory Commission (hereinafter referred to as “ FSC ” ) won’t cause any material changes to the consolidated company ’s accounting policies.

(II) 2025 applicable IFRS accounting standards approved by the Financial Supervisory Commission

Application of New Standards, Amendments, and Effective Date Announced I n t e r p r e t a t i o n s b y I A S B ( N o t e ) Amendments to IAS 21 “ Lack of Exchangeability ” January 1, 2025 (Note)

Note: The amendments shall apply to the annual reporting period beginning on or after January 1, 2025. When the amendment is

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applied for the first time, comparative periods must not be restated. Instead, the effect should be recognized in the retained earnings or exchange differences of foreign operations under equity on the date of initial application (as appropriate), as well as the related affected assets and liabilities.

As of the date when the Consolidated Financial Statements were approved and issued, the Group assessed the said amended standards and interpretations and found them to have no significant effects on the Group’s financial position and financial performance.

(III) IFRS Accounting Standards issued by the IASB but not yet approved and promulgated by the FSC

and promulgated by the FSC

Application of New Standards, Amendments, and
I
n
t
e
r
p
r
e
t
a
t
i
o
n
s
"Annual
Improvements
to
IFRS
Accounting
Standards–Volume 11"
Amendments to IFRS 9 and IFRS 7, "Amendments to
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
Amendment to IFRS 17,“Initial Application of
IFRS 17 and IFRS 9—Comparative Information”
IFRS 18“Presentation and Disclosure in Financial
Statements”
IFRS 19“Disclosure of Non-publicly Accountable
Subsidiaries: Disclosure” Effective Date Announced
b y I A S B ( N o t e )

1 January 2026
1 January 2026
1 January 2026
To be determined
January 1, 2023
January 1, 2023
January 1, 2023
1 January 2027
1 January 2027

and promulgated by the FSC
Application of New Standards, Amendments, and I n t e r p r e t a t i o n s "Annual Improvements to IFRS Accounting Standards`–`Volume 11" Amendments to IFRS 9 and IFRS 7, "Amendments to 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 Amendment to IFRS 17,`“`Initial Application of IFRS 17 and IFRS 9`—`Comparative Information`”` IFRS 18`“`Presentation and Disclosure in Financial Statements`”` IFRS 19`“`Disclosure of Non-publicly Accountable Subsidiaries: Disclosure`”`	Effective Date Announced b y I A S B ( N o t e )
	1 January 2026 1 January 2026 1 January 2026 To be determined January 1, 2023 January 1, 2023 January 1, 2023 1 January 2027 1 January 2027

Note: Unless specified, the above-mentioned new/amended/revised standards or interpretation shall become effective in the annual reporting periods beginning on or after each effective date.

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IFRS 18 “ Presentation and Disclosure in Financial Statements ”

IFRS 18 will replace IAS 1, “ Presentation of Financial Statements, ” with the main changes including:

The income statement should categorize income and expense items into operating, investing, financing, income tax, and discontinued operations types.
The income statement should report operating profit and loss, pre - tax profit before financing, as well as subtotals and totals of profit and loss.
Provide guidance to enhance aggregation and disaggregation requirements: The Group must identify the assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and aggregate them based on common characteristics so that each line item reported in the primary financial statements has at least one similar characteristic. Items with dissimilar characteristics should be disaggregated in the primary financial statements and notes. The Group only labels these item as "Others" when no more informative designation can be identified.
Increase disclosure of management-defined performance measures: When the Group engages in public communication outside of financial statements and communicates management's perspective on a specific aspect of the Group's overall financial performance to financial statement users, it should disclose relevant information about management-defined performance measures in a single note to the financial statements. This includes a description of the measure, how it is calculated, its reconciliation with subtotals or totals specified by IFRS accounting standards, and the impact of related reconciliation items on income tax and non-controlling interests.

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Up to the release date of the Consolidated Financial Statements, the Group continues to assess the effects of various amendments to the standards and interpretations on the financial position and performance. The relevant effects will be disclosed after the assessment.

4. Summary of significant accounting policies

(I) Compliance statement

The consolidated financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS Accounting Standards approved and promulgated by the FSC.

(II) Basis of preparation

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

Fair value measurements are classified into Level 1, 2, and 3 based on the degree to which an input is observable and the significance of the input:

Level 1 inputs: The quoted price in an active market for identical assets or liabilities that is accessible on the measurement date (before adjustment).
Level 2 inputs: Other than quoted prices included in Level 1, the inputs that are observable for assets or liabilities directly (i.e. the price) or indirectly (i.e. inferred from the price).
Level 3 inputs: The inputs that are not observable for assets or liabilities.
(III) Criteria for classification of assets and liabilities as current or noncurrent

Current assets include:

Assets that are held mainly for trading purposes;
Assets expected to be realized within 12 months after the balance sheet date; and

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Cash or cash equivalents (excluding those that are restricted for being used for exchange or settlement of liabilities within 12 months after the balance sheet date).

Current liabilities include:

Liabilities that are held mainly for trading purposes;
Liabilities that will be settled within 12 months after the balance sheet date; and
Liabilities for which there is no substantive right to extend the due date to more than 12 months after the balance sheet date. Assets or liabilities that are not the above-mentioned current assets

or current liabilities are classified as non-current assets or non-current liabilities.

(IV) Basis of consolidation

Entities covered by the consolidated financial statements include the Company and the entities controlled by the Company (i.e., subsidiaries). The financial statements of the subsidiaries are adjusted to have their accounting policies be consistent with those of Group. All the transactions, account balances, profits, and expenses/losses between entities are eliminated during preparation of the consolidated financial statements.

For details of subsidiaries, shareholding percentage and business item, refer to Note 11 and Appendix Tables 6 and 7. (V) Foreign currency

Entities preparing their own financial statements translated the transactions denominated in currencies other than their functional currency (i.e., foreign currencies) into their functional currency by applying the exchange rate prevailing on the transaction date.

Monetary items in foreign currencies are translated at the closing exchange rate on each balance sheet date. Exchange differences arising from settlement or translation of the monetary items are recognized in the profit or loss of the period.

Non-monetary items in foreign currencies measured at fair value are translated at the exchange rate prevailing on the date the fair value was determined. The exchange differences resulting therefrom are

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recognized in profit or loss of the period, or in other comprehensive income when changes in fair value of such items were designated to be recognized in other comprehensive income.

Non-monetary items in foreign currencies measured at historical cost are translated at the exchange rate on the date of transaction and are not retranslated.

During preparation of the consolidated financial statements, the assets and liabilities of foreign operations (including the subsidiaries, associates, or branch companies of which the countries they operate or the currencies they use are different from those of the Group) are translated into NTD at the exchange rate prevailing on each balance sheet date. The income and expense items are translated at the average exchange rate of the period, and the exchange differences resulting therefrom are recognized in other comprehensive income.

(VI) Inventories

Inventories include raw materials, work-in-progress, finished goods, and products. Inventories are measured at the lower of cost and net realizable value. Cost and net realizable values are compared on an item by item basis, except inventories of the same category. Net realizable value refers to the estimated selling price in a normal situation less the estimated cost needed to complete the work and the estimated cost needed to complete the sale. The weighted average method is used to calculate the inventory cost.

(VII) Investment in associates

An associate refers to a company over which the Group has a significant influence, but it is not a subsidiary or joint venture.

The consolidated company accounts for investments in associates using the equity method.

Under the equity method, the investment in associates is initially recognized at its costs and the amount of increase or decrease in the carrying amount of such investment after the date of acquisition depends on the Group ’s shares of profit/loss and other comprehensive income in the associates and joint ventures and the distributed profits.

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In addition, changes to the Group ’s equity in the associates are recognized based on our shareholding ratio.

When an associate issues new shares and the Group does not subscribe according to its shareholding ratio, resulting in a change in the shareholding ratio and thereby causing an increase or decrease in the net equity of the investment, the increase or decrease is adjusted in capital surplus - changes in the net equity of associates recognized under the equity method and investments accounted for using equity method. However, if the failure to subscribe or acquire according to the shareholding ratio results in a reduction of ownership equity in the associate, the amounts recognized in other comprehensive income related to the associate are reclassified according to the reduced proportion. The accounting treatment is based on the same basis as if the associate directly disposed of related assets or liabilities. If the aforementioned adjustment requires a debit to capital surplus, and the balance of capital surplus generated from investments accounted for using equity method is insufficient, the difference is debited to retained earnings.

When the Group’s shares of losses in the associates are equal to or exceeded our equity in the associates (including the carrying amount of investment in the associate under the equity method and other long -term equities that in nature are part of the net investment portfolio made by the consolidated company in the associate concerned), the Group does not recognize further losses. The Group recognizes additional losses and liabilities only when any legal obligation or constructive obligation is incurred or the Group made payment on behalf of the associates.

For impairment evaluation, the Group tests the entire investment book value for impairment as a single asset by comparing the recoverable amount and book value of the investment. Any recognized impairment loss is also part of the investment book value. Any reversal of the impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increased.

The Consolidated Company ceases to adopt the equity method from the date its investment ceases to be an affiliate, and its retained interest

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in the former affiliate is measured at fair value. The difference between the fair value and the price of disposal and the carrying amount o f the investment on the date of cessation of the equity method is stated as included in the current year's profit or loss. In addition, all amounts recognized in other comprehensive income related to the affiliated enterprise shall be accounted for on the same basis as the basis for the direct disposal of the relevant assets or liabilities by the affiliated enterprise.

The profit or loss generated from the upstream, downstream, and side stream transactions between the Group and the associates is recognized in the consolidated financial statements only when such profit or loss is irrelevant to the Group ’s equity in the associates.

(VIII) Property, plant and equipment

Property, plant, and equipment are initially recognized at cost and subsequently at cost net of accumulated depreciation and accumulated impairment.

Except for the self-owned land, which is not depreciated, each significant part of the property, plants, and equipment is separately depreciated on the straight-line basis over their useful life. The Consolidated Company reviews the estimated useful life, residual value, and method of depreciation at least once before the end of each year and prospectively recognizes the effect from changes in accounting estimates.

When property, plant, and equipment is disposed of, the difference between the net disposal proceeds and the asset book value is recognized in profit or loss. (IX) Patent right

Patent rights acquired separately are initially measured in accordance with the cost and subsequently based on the cost net of accumulated amortization and impairment losses. Patent rights are amortized on the straight-line basis over their useful life. The Group reviews the estimated useful life, residual value, and method of amortization at least once before the end of each year and prospectively recognizes the effects of changes in accounting estimates.

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(X) Impairments of property, plant, and equipment, right-of-use assets, and intangible assets

The Group assesses whether there are any signs indicating that any property, plant, and equipment, right-of-use assets, or intangible assets might be impaired on each balance sheet date. If any such indication exists, then the asset ’s recoverable amount is estimated. When the recoverable amount of individual assets cannot be estimated, the Group estimates the recoverable amount of the cash-generating unit to which the assets belong. Corporate assets are allocated on a reasonable and consistent basis to the smallest group of cash-generating units

The recoverable amount is the higher of the fair value less costs of sale and the value in use. When the recoverable amount of any individual assets or cash-generating units is less than the book value, the book value of the individual assets or cash-generating units is adjusted down to the recoverable amount, and the impairment loss is recognized in profit or loss.

When the impairment loss is reversed subsequently, the book value of the asset or cash-generating unit is adjusted up to the revised recoverable amount. However, the increased book value shall not exceed the book value that would have been determined (net of amortization or depreciation) had no impairment loss been recognized in prior years. The reversal of the impairment loss is recognized in profit or loss. (XI) Financial instruments

Financial assets and financial liabilities are initially recognized in the balance sheet when the Group becomes a party to the financial instrument contract.

Financial assets or financial liabilities other than those measured at fair value through profit or loss are initially recognized at the fair value plus the transaction costs that can be directly attributed to acquisition or issuance of such financial assets or liabilities. Any transaction cost directly attributable to the acquisition or issuance of the financial assets or financial liabilities measured at fair value through profit or loss is immediately recognized in profit or loss. 1. Financial assets

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Regular transactions of financial assets are recognized and derecognized on the trade date accounting.

(1) Type of measurement

The Group’s financial assets include financial assets measured at fair value through profit or loss, financial assets measured at amortized cost, and investment in equity instrument measured at fair value through other comprehensive income.

A. Financial assets at fair value through profit or loss

Financial assets measured at fair value through profit or loss refer to those mandatorily measured at fair value through profit and loss. Financial assets mandatorily measured at fair value through profit or loss include investments in equity instruments not designated to be measured at fair value through other comprehensive profit or loss, and investments in debt instruments not qualified for classification as measured at amortized cost or at fair value through other comprehensive income.

Financial assets measured at fair value through profit or loss are measured at fair value; the dividends and interest derived therefrom are recognized in other income and interest income, respectively. Gains or losses from remeasurement are recognized in other gains and losses.

B. Financial assets at amortized cost

When the Group's invested financial assets meet both of the following two conditions, they are classified as financial assets measured at amortized cost:

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

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After the initial recognition, the financial assets measured at amortized cost (including cash and cash equivalents and receivables [including those due from related party]) are measured at the amortized cost equal to the total book value determined under the effective interest method less any impairment losses, and any gain or loss from foreign currency translation is recognized in profit or loss.

Interest income is calculated as the effective interest rate times the total book value of financial assets, except under the following two circumstances:

a. For purchased or originated credit-impaired financial assets, the interest income is calculated as the credit - adjusted effective interest rate times the amortized cost of the financial assets.
b. For financial assets that are not purchased or originated credit-impaired but subsequently become creditimpaired, the interest income is calculated as the effective interest rate times the amortized cost of the financial assets, in all subsequent periods following the period in which the impairment occurred.

Financial assets are deemed to be credit-impaired upon the occurrence of significant financial difficulties confronting the issuer or debtor; default; or the circumstance that the debtor is likely to file for bankruptcy or other financial reorganization.

Cash equivalents include time deposits that are highly liquid, readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value, and that mature within three months after the acquisition date; cash equivalents are used to meet short-term cash commitments. C. Investment in equity instruments at fair value through other comprehensive income

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At initial recognition, the Group may make an irrevocable election to measure the investment in equity instruments that are held not for trading, that are not recognized by the acquirer in a business merger, and that have no consideration, at fair value through other comprehensive income.

Investment in equity instruments measured at fair value through other comprehensive income is measured at fair value. Subsequent changes in the fair value are recognized in other comprehensive income and accumulated in other equity.

The dividends derived investment in equity instruments measured at fair value through other comprehensive income are recognized in profit or loss when the Group’s right to receive dividends is determined, except under the circumstance that such dividends apparently represent a partial return of the investment cost.

(2) Impairment of financial assets

The Group assesses impairment losses on the financial assets (including accounts receivable [including those due from related parties]) measured at amortized cost based on the expected credit losses on each balance sheet date.

Receivables (including those due from related parties) are recognized as loss allowances based on lifetime ECLs. The Group first assess whether the credit risk on other financial assets significantly has increased after the initial recognition. When the increase is not significant, the loss allowance for the financial assets is recognized at the 12 - month expected credit losses; when the increase is significant, the loss allowance is recognized at the lifetime expected credit losses.

Expected credit losses are the weighted average credit losses with the probability of default ('PD') as the weight. 12month expected credit losses represent the expected credit

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losses on financial instruments from any potential default within 12 months after the reporting date. Lifetime expected credit losses represent the expected credit losses on financial instruments from any potential default during the expected lifetime.

For the purpose of internal credit risk management, financial assets are deemed to be defaulted when any of the following circumstance occurs, without consideration of the collaterals held:

A. Any internal or external information indicates that a debtor is impossible to pay off the debts.
B. Any contractual payment is overdue, unless any reasonable and supportable information demonstrates that a more lagging default criterion is more appropriate.

The impairment loss on all financial assets is deducted from the book value of the financial assets through their allowance account.

(3) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred to other entities.

For derecognition of the entire financial assets measured at amortized cost, the differences between the book value and the received consideration are recognized in profit or loss. For derecognition of the entire investments in equity instruments measured at fair value through other comprehensive income, the cumulative gain or loss is directly transferred to retained earnings and not reclassified as profit or loss.

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2. Equity instruments

Equity instruments issued by the Group are recognized as the amount of consideration received, less the direct cost of issuance. When a reacquired equity instrument is originally owned by the Company, the re-acquisition is recognized as a deduction to equity. Purchase, sale, issuance, or cancelation of the equity instruments owned by the Company are not recognized in profit or loss. 3. Financial liabilities

(1) Subsequent measurement

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

(2) Derecognition of financial liabilities

For derecognition of financial liabilities, the differences between the book value and the consideration paid are recognized in profit or loss.

Corporate bonds

The compound financial instruments (convertible bonds) issued by the Group are classified into their component parts as financial liability and equity at initial recognition based on the substance of the contractual agreement and the definitions of financial liability and equity instruments.

At initial recognition, the fair value of the components of liabilities is estimated using the market rate of similar non - convertible instruments at that time, and is measured at amortized cost calculated using the effective interest method prior to conversion or maturity. The component of liabilities embedded in non-equity derivative instruments is measured at fair value.

The conversion rights classified as equity are recognized as the residual amount equal to the overall fair value of the compound instrument less the fair value of the liabilities component determined separately, after deducting the impact of income tax, and are subsequently not remeasured as equity. Upon the exercise of the conversion right, the relevant portion of the liabilities and the amount in equity will be reclassified into share capital and

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— capital surplus share premium. If the conversion rights of the convertible bonds remain unexercised at the maturity date, the amount recognized in equity will be transferred to capital — surplus share premium.

The transaction costs related to the issuance of convertible bonds are allocated according to the proportion of the total price to the liabilities (included in the book value of liabilities) an d the equity component (included in equity).

(XII) Short-term warranty provision

The warranty obligation that ensures agreement between products and agreed specifications is management ’s best estimate of the expenditure to settle the Group ’s obligations, and is recognized at the time when revenue is recognized for underlying products.

(XIII) Revenue recognition

After identifying the performance obligations under a contract with customers, the Group allocates the transaction price to each performance obligation and recognizes the allocated amount as revenue ’ after each performance obligation is fulfilled. The Group s revenue comes from equipment trading and wafer reclamation, and is recognized when products are accepted by customers; or when they are shipped or delivered to the place designated by customers, depending on the contractual terms. Before being recognized as revenue, advance receipts are recognized as contract liability.

(XIV) Lease

At inception of a contract, the Group assesses whether the contract is, or contains, a lease.

The Consolidated Company as the lessor

It is classified as operating lease. Lease payments from an operating lease are recognized as revenue on a straight line basis over the lease term.

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2. The Consolidated Company is a lessee

Lease payments for leases of low-value underlying assets and short-term leases to which the recognition exemption applies are recognized as expenses on a straight-line basis over the lease term, while other leases are recognized as right-of-use assets and lease liabilities at the commencement date of the lease.

The right-of-use assets are initially measured at cost (including the initial recognized amount of lease liabilities), and subsequently measured at the cost net of accumulated depreciation and accumulated impairment losses, adjusted for remeasurements of lease liabilities. Right-of-use assets are separately presented in the consolidated balance sheet.

Right-of-use assets are subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use assets or the end of the lease term.

Lease liabilities is initially measured at the present value of lease payment (fixed payments). If the interest rate implicit in a lease can be readily determined, the lease payments are discounted at the interest rate. When such interest rate cannot be readily determined, the lessee's incremental borrowing rate of interest is used.

Subsequently, the lease liabilities are measured at amortized cost under the effective interest method, and the interest expenses are amortized over the lease term. When future lease payments change as a result of a change in the lease term, the Group remeasures the lease liabilities and adjust the right-of-use assets accordingly. However, the residual remeasurements are recognized in profit or loss when the book value of right-of-use assets is reduced to zero. Lease liabilities are separately presented in the consolidated balance sheet.

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(XV) Government grants

Government grants may be recognized only when it is reasonable to ensure that the Group will comply with the conditions incidental to the government grants and the subsidies may be received affirmatively. Government grants related to any gains are recognized in other income on a systematic basis within the period when the costs to be subsidized by the government are recognized in expenses by the Group. Government grants with a condition by which the Group is required to acquire non-current assets through acquisition, construction, or by other means are initially recognized as deferred revenue and subsequently transferred to profit or loss on a reasonable and systematic basis over the useful live of the underlying assets.

If the government grants are intended to make up the expenses or losses that have occurred, or immediately finance the Group without incurring any future cost, such subsidies are recognized in profit or loss during the period when they can be received.

(XVI) Employee benefits

1. Short-term employee benefits

Short-term employee benefits are measured at non-discounted amount expected to be paid in exchange for the services to be provided by the employees.

Post-employment benefit

The pension contributed under the Defined Contribution Pension Plan is recognized in expenses during the period when employees provide services.

Defined benefit cost under the Defined Benefit Pension Plan is calculated actuarially using the projected unit credit method. Service costs and net interest on net defined benefit liabilities are recognized as employee benefit expenses when they are incurred. Remeasurements are recognized in other comprehensive income and presented in retained earnings when they occurred, and are not reclassified to profit or loss in subsequent periods.

The net defined benefit assets represent the appropriation surplus of the defined benefit pension plan. The net defined benefit

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assets shall not exceed the present value of the refundable contributions from the plan or the reduced future contributions.

(XVII) Income tax

Tax expenses are the total of current income tax and deferred income tax.

Current income tax

The Group determines the income (loss) for the current period in accordance with the laws and regulations prevailing in each taxation jurisdiction and, based this, calculates the income tax payable (recoverable).

The additional income tax on undistributed earnings that is calculated according to the Income Tax Act of the Republic of China is recognized in the year when the related resolution is made at the shareholders ’ meeting.

The adjustments to the income tax payable in the previous year are recognized in the current income tax. 2. Deferred income tax

Deferred income tax is calculated based on the temporary difference between the book value of assets and liabilities and the tax basis for calculation of taxable income.

Deferred income tax liabilities are generally recognized based on all taxable temporary differences; deferred income tax assets are recognized when taxable income sufficiently enough to offset the deductible temporary differences is highly likely in the future.

Taxable temporary differences related to investment in subsidiaries and associates are recognized in deferred income tax liabilities except that the Group can control the timing of reversal of the taxable temporary differences and that such differences are not likely to be reversed in the foreseeable future. Deductible temporary differences related to such investments are recognized as deferred tax assets only to the extent that they are likely to have sufficient taxable income to realize the temporary differences and are expected to reverse within the foreseeable future.

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The book value of deferred income tax assets is reviewed at each balance sheet date. When any of the deferred income tax assets is not likely to have adequate taxable income necessary for the recovery of all or part of the assets anymore, the book value thereof is reduced. Those that are not originally recognized in deferred income tax assets are reviewed at each balance sheet date. When any of those is likely to generate taxable income necessary for the recovery of all or part of the assets in the future, the book value thereof is increased.

Deferred income tax assets and liabilities are measured at the tax rate of the period in which the liabilities or assets are expected to be settled or realized. The tax rate is subject to the tax rate and tax law legislated or substantively legislated on the balance sheet date. The deferred income tax liabilities and assets are measured to reflect the tax consequence on the balance sheet date arising from the method that the Group expects to use to recover or settle the book value of the liabilities and assets.

Current and deferred income taxes

Current and deferred income taxes are recognized in profit or loss, or in other comprehensive income if they are related to the current and deferred income taxes designated to be recognized in other comprehensive income.

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

For adoption of the accounting policies, the management, based on historical experience and other relevant factors, must make judgments, estimates and assumptions related to the information that cannot be readily acquired from other sources. The actual results may differ from those estimates.

When the Consolidated Company develops significant accounting estimates, it takes the potential effects of climate change and related government policies and regulations into account when making significant accounting estimates for cash flows, growth rate, discount rate, and

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profitability. The management will continue to review the estimates and basic assumptions.

Through an assessment, the management of the Group does not think an uncertainty exists in material accounting judgments, estimates, or assumptions.

6. Cash and cash equivalents

==> picture [425 x 114] intentionally omitted <==

Time deposit whose initial maturity date will be due within 3 months had an annual interest rate of 1.55% –4.80% and 2.00% –5.35% as of December 31, 2024 and 2023, respectively.

7. Current financial assets at fair value through profit or loss

31 December 2024 31 December 2023

Mandatorily measured at fair value through profit or loss Derivative instruments (not designated as hedges)

Convertible Bonds Redemption and - Repurchase Rights $ 2,480 $ Non-derivative instruments － Domestic the emerging stock market FORWARD SCIENCE CORPORATION - 7,529 $ 2,480 $ 7,529

The merged company resigned as a director representative of FORWARD SCIENCE CORPORATION in July 2023 and lost significant influence. Therefore, the original investments accounted for using equity method were reclassified as financial assets measured at Fair value through profit or loss. For relevant information, please refer to Note 12.

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8. Financial assets at fair value through other comprehensive income

31 December 2024 31 December 2023

Investment in equity instruments measured at fair value through other comprehensive income Domestic investments Private placement shares of listed companies SPIROX CORP. $ 218,098 $ 157,011 Overseas investments Shares not traded on TESE or TPEx INFINITESIMA LIMITED 60,930 53,125 $ 279,028 $ 210,136

The Group invested in the common shares of the aforementioned companies according to its medium-term and long-term strategies, and expected to gain profits through long-term investment. Since the Group's management deemed that the recognition of short -term changes in the investment ’s fair value in profit or loss was not consistent with the said long-term investment plan, they opted to have the investment measured at fair value through other comprehensive income.

The Consolidated Company recognized dividend revenue of NT$4,045 thousand and NT$3,998 thousand in 2024 and 2023, respectively, (presented under other income), related to the shares held as of December 31, 2024 and 2023.

Notes receivable and accounts receivable (including those due from related parties)

related parties)
Notes receivable Accounts receivable (including those due from related parties) Less: loss allowance	31 December 2024 $ 2,260 634,552 636,812 46,596 $ 590,216	31 December 2023
		$ 11,102 826,543 837,645 50,264 $ 787,381

The Group’s average credit period for sales of goods is 120 days on average. Accounts receivable paid within 60 days after the invoice date or the sale date won’t be charged any interest. If accounts receivable are not

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paid within 60 days, the Group will assess the credit status of each individual transaction party on a business month to measure possible gains or losses and reduce possible losses.

The Group recognizes the loss allowance for notes receivable and accounts receivable (including those due from related parties) based on the lifetime expected credit losses. The lifetime expected credit losses are calculated by considering the customer ’s default record and current financial position, and the industrial and economic conditions. When there is any evidence showing that the trading counterparty is facing serious financial difficulties and the Group cannot estimate a reasonable recoverable amount, the Group directly writes off related notes receivable and accounts receivable, but will continue recourse activities. Any recovered amount through the recourse activities is recognized in profit or loss.

The Group recognizes the loss allowance for notes receivable and accounts receivable (including those due from related parties) as follows: 31 December 2024

==> picture [427 x 49] intentionally omitted <==

31 December 2023

==> picture [427 x 49] intentionally omitted <==

Notes and accounts receivable (including those due from related parties) information on changes in loss allowance is as follows:

Balance - beginning of period Less: Reversal of this year's impairment loss Less: Actual amount written off in the year Differences from translation of foreign currencies Balance - end of year	2024 $ 50,264 ( 4,781 ) ( 13 ) 1,126 $ 46,596	2023
		$ 54,616 ( 3,806 ) - ( 546 ) $ 50,264

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The Group did not hold any collateral against the balance of notes receivables and accounts receivables (including those due from related parties).

Customers who individually account for 10% of the Group ’s total accounts receivable (including those due from related parties) are as follows:

	follows:
10.	Inventories Products Finished-goods Work-in-process Raw materials Cost of sales related to inventories Loss on inventory devaluation	31 December 2024 Company A 31 December 2024 $ 9,624,440 614,282 735,288 651,760 $ 11,625,770 2024 $ 6,787,607 $ 353,180	31 December 2023
			Company A 31 December 2023
			$ 8,189,969 286,228 697,637 457,413 $ 9,631,247 2023
			$ 4,705,858 $ 339,097

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11. Subsidiary

Entities in the consolidated financial statements are as follows:

SCIENTECH CORPORATION

				SCIENTECH CORPORATION	SCIENTECH CORPORATION	SCIENTECH CORPORATION	SCIENTECH CORPORATION	SCIENTECH CORPORATION	SCIENTECH CORPORATION
				P e r c e n t age o f O w n e r s h ip N a m e o f s u b s i d i a r y Main business activities 2024 31 December 2023 31 December Description SCI Investment 100 100 ACROMASS General instrument and precision instrument manufacturing 100 100 NATGEM Sale of food and supplies 100 100 SCIENTECH MATERIALS Manufacturing and sale of energy-efficient products - 100 (Notes 1 and 2) SC GMBH International trade 100 100 TRANSCEND CAPITAL CORP. Investment 100 100 (Note 3) SII Investment 100 100 SCU Trading of semiconductor equipment and peripherals 100 100 SHANGHAI Trading and maintenance of semiconductor equipment and peripherals 100 100 HONG KONG International trade 100 100 SCIENTECH GMBH (SCI) SIMPLE INVESTMENT CORP. (SII) SCIENTECH ENGINEERING (SHANGHAI) LIMITED (SHANGHAI) SCIENTECH ENGINEERING USA CORP. (SCU) SCIENTECH ENGINEERING (HONG KONG) LIMITED (HONG KONG) TRANSCEND CAPITAL CORP. SCIENTECH GMBH (SC GMBH)
SCIENTECH MATERIALS CORPORATION (SCIENTECH MATERIALS)		NATGEM INC. (NATGEM)	ACROMASS TECHNOLOGIES INC. (ACROMASS)		TRANSCEND CAPITAL CORP.		SCIENTECH GMBH (SCI)		SCIENTECH GMBH (SC GMBH)



						SIMPLE INVESTMENT CORP. (SII)		SCIENTECH ENGINEERING USA CORP. (SCU)
	Name of investor SCIENTECH CORPORATION SCIENTECH CORPORATION SCIENTECH CORPORATION SCIENTECH CORPORATION SCIENTECH CORPORATION SCIENTECH CORPORATION SCI SCI SII SHANGHAI

Note 1: SCIENTECH MATERIALS CORPORATION was dissolved

through a resolution reached at the Board of Directors meeting

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dated 31 August 2021, and the liquidation was completed in May 2024.

Note 2: The profit or loss of SCIENTECH MATERIALS CORPORATION for 2023 was computed based on the financial statements for the same period that were not audited by CPAs. The management of the Group did not think that not having SCIENTECH MATERIALS CORPORATION's financial statements audited by CPAs would cause any material impact.
Note 3: The Company approved the liquidation of the subsidiary TRANSCEND CAPITAL CORP through a resolution at the Board meeting in January 2025.

12. Investments accounted for using equity method

31 December 2024 31 December 2023

==> picture [401 x 82] intentionally omitted <==

(I) Associates with significant influence

Proportion of Shareholding a n d V o t i n g R i g h t Ma i n b us i ne ss 2024 2023 C o m p a n y n a m e Main business activities p r e m i s e s 31 December 31 December XTEK Manufacturing and sale China 17.21% 17.21% SEMICONDUCT of semiconductor OR (HUANGSHI) equipment and CO., LTD. peripherals

The Group’s share of profits/ losses and other comprehensive income in associates under the equity method were recognized based on the financial statements for the same period that were audited by CPAs. The following financial information summary is prepared based on the associates’ IFRS Accounting Standards of individual financial statements, and has reflected the adjustments required for adoption of the equity method.

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XTEK SEMICONDUCTOR (HUANGSHI) CO., LTD.

Current Assets Non-current assets Current liabilities Non-current liabilities Equity The Group’s shareholding ratio The Group's equity Unrealized gains on downstream transactions Others Investment book value The Company’s share Net profit (loss) for the year Other comprehensive income Total comprehensive income	31 December 2024 $ 364,569 3,742,055 ( 168,200 ) ( 1,263,009 ) $ 2,675,415 17.21% $ 460,560 ( 45,789 ) 2,223 $ 416,994 2024 ( $ 122,037 ) - ( $ 122,037 )	31 December 2023
		$ 737,318 2,978,861 ( 170,722 ) ( 841,694 ) $ 2,703,763 17.21% $ 465,440 ( 50,943 ) 2,081 $ 416,578 2023
		( $ 161,568 ) - ( $ 161,568 )

Although the Group’s shareholding in the significant associate did not reach 50%, the Group was individually the largest shareholder. After considering the number and dispersion of voting shares held by other shareholders, the Group found the shareholdings are not diffuse. As a result, the Group is not yet able to direct the company ’s relevant activities and thus does not have control over it. The Group thinks that it has only significant influence over the company and thus regards the company as an associate accounted for using the equity method.

For the main business activities, main business premises, and company registration information of the said associates, refer to Appendix Table 6 "Information on Investees (Including Locations)" and Appendix Table 7 "Information on Investment in mainland China".

(II) Individually insignificant associates

The Consolidated Company subscribed to 6,723 thousand shares of common stock of YAYA TECHNOLOGIES CORPORATION (YAYA TECHNOLOGIES CORPORATION) in December 2024 for a cash consideration of 215,133 thousand, representing a shareholding ratio of 40.34%. Although the Group ’s shareholding in YAYA TECHNOLOGIES

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CORPORATION did not reach 50%, the Group was individually the largest shareholder. After considering the number and dispersion of voting shares held by other shareholders, the Group found the shareholdings are not diffuse. As a result, the Group is not yet able to direct the company’s relevant activities and thus has only significant influence over it. Therefore, it regards the company as an associate accounted for using the equity method.

The Consolidated Company, having acquired a majority of the board seats of YAYA TECHNOLOGIES CORPORATION in January 2025, determined that it has substantial control over YAYA TECHNOLOGIES CORPORATION, thereby establishing a parentsubsidiary relationship.

Although holding less than 20% of the shares of some individually insignificant associates, the Group has a representative in their board of directors and thus has significant influence over them.

The Consolidated Company disposed of 936,000 shares of FORWARD SCIENCE CORPORATION from January to July 2023, with disposal proceeds of NT$48,940 thousand and recognized gains on disposals of investments of NT$35,276 thousand. The consolidated company resigned as a director representative of FORWARD SCIENCE CORPORATION in July 2023 and lost significant influence. The fair value of the remaining 3.25% equity held by the consolidated company on the disposal date was NT$52,736 thousand, reclassified as financial assets measured at fair value through profit or loss, and recognized disposal gains of NT$51,600 thousand.

The Group’s share of some individually insignificant associates of profit or loss and other comprehensive income in them were computed based on the financial statements not audited by CPAs. However, th e management of the Group did not think that not having the financial statements audited by CPAs would cause any material impact.

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13. Property, plant and equipment

Cost January 1, 2024 balance Increase Decrease Reclassification Net exchange differences 31 December 2024 balance Accumulated depreciation January 1, 2024 balance Depreciation Decrease Net exchange differences 31 December 2024 balance Balance as of December 31, 2024 Cost January 1, 2023 balance Increase Decrease Reclassification Net exchange differences 31 December 2023 balance Accumulated depreciation January 1, 2023 balance Impairment loss recognized Depreciation Decrease Net exchange differences 31 December 2023 balance Balance as of December 31, 2023	L a n d $ 582,262 $ 582,262 $ 582,262 $ 582,262 - - - - $ 582,262 $ 582,262	Buildings and s t r u c t u r e s $ 1,022,559 67,770 ( 6,155 ) - 2,199 $ 1,086,373 $ 405,430 39,777 ( 6,155 ) 939 $ 439,991 $ 646,382 $ 1,016,711 22,058 ( 15,031 ) - ( 1,179 ) $ 1,022,559 $ 385,751 - 35,197 ( 15,031 ) ( 487 ) $ 405,430 $ 617,129	Machinery and equ ipm e n t $ 498,780 97,070 ( 64,016 ) 30,880 - $ 562,714 $ 223,257 63,187 ( 64,016 ) - $ 222,428 $ 340,286 $ 483,089 16,825 ( 46,528 ) 45,394 - $ 498,780 $ 206,702 916 62,167 ( 46,528 ) - $ 223,257 $ 275,523	Other facilities $ 73,527 21,296 ( 11,591 ) - 557 $ 83,789 $ 34,574 14,416 ( 11,470 ) 336 $ 37,856 $ 45,933 $ 56,854 17,790 ( 1,331 ) 394 ( 180 ) $ 73,527 $ 23,217 - 12,814 ( 1,316 ) ( 141 ) $ 34,574 $ 38,953	U n f i n i s h e d construction $ 19,736 - - - - $ 19,736 $ - - - - $ - $ 19,736 $ 19,736 - - - - $ 19,736 $ - - - - - $ - $ 19,736	T o t a l
						$ 2,196,864 186,136 ( 81,762 ) 30,880 2,756 $ 2,334,874 $ 663,261 117,380 ( 81,641 ) 1,275 $ 700,275 $ 1,634,599 $ 2,158,652 56,673 ( 62,890 ) 45,788 ( 1,359 ) $ 2,196,864 $ 615,670 916 110,178 ( 62,875 ) ( 628 ) $ 663,261 $ 1,533,603

The Group’s property, plant, and equipment is solely for own use.

In 2023, the Consolidated Company assessed that some of the equipment has no future use demand, so the recoverable amount was assessed as zero. Based on the future recoverable amount of the property, plant and equipment, the Consolidated Company recognized impairment loss of 916 thousand in 2023.

Depreciation is provided on a straight line basis over the following useful lives:

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Buildings and structures – Plant and main structures 20 50 years Electrical, plumbing & air – conditioning equipment 3 10 years – Machinery and equipment 5 10 years – Other facilities 3 5 years

The Group assessed the useful life of each significant component of property, plant, and equipment, and depreciated them individually.

Proceeds for acquisition of property, plant, and equipment include prepayments for equipment and equipment payables;

Increase in property, plant and equipment increase in prepayments for business facilities payable on machinery and equipment (presented under other payables) (increase)	2024 $ 186,136 388,292 ( 27,608 ) $ 546,820	2023
		$ 56,673 53,026 ( 50,478 ) $ 59,221

14. (I)	Lease agreement Right-of-use assets Right-of-use assets, net Land Buildings and structures Other facilities Increase in right-of-use assets Depreciation expenses - Right- of-use assets Land Buildings and structures Other facilities	31 December 2024 $ 67,190 19,325 - $ 86,515 2024 $ 23,369 $ 5,508 11,651 941 $ 18,100	31 December 2023
			$ 60,006 19,733 941 $ 80,680 2023
			$ 23,476 $ 4,578 4,707 1,841 $ 11,126

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Except for the additions and recognized depreciation expense listed above, there was no significant sublease or impairment of the Consolidated Company's Right-of-use assets in 2024 and 2023. (II) Lease liabilities

Lease liabilities
Book value of lease liabilities Current Non-current	31 December 2024 $ 17,011 $ 73,440	31 December 2023
		$ 12,223 $ 71,855

The range of discount rates for lease liabilities is as follows:

31 December 2024 31 December 2023 Land 2.00%~3.00% 2.00%~3.00% Buildings and structures 1.50%~3.00% 0.78%~3.00% Other facilities - 0.78%~0.92%

(III) Material lease activities and terms

The Group leased land from Chairman Hung-Liang Hsieh to construct buildings as offices under a lease contract that has a lease term of 5 years, will automatically renew upon expiration of a lease term, and gives the Company the option right to rent and buy the buildings. The Group may not sublease or consign the underlying assets of the lease, in whole or in part, unless otherwise agreed by the Lessor. (IV) Other lease information

Other lease information
Short-term lease expense Total cash outflow from leases	2024 $ 17,313 $ 36,783	2023
		$ 16,046 $ 27,929

The Group elected to apply the recognition exemption to property, plant and equipment leases which qualify as a short-term lease, and thus did not recognize right-of-use assets and lease liabilities for them.

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15. Other assets

Other assets
Restricted assets Other financial assets (Note) Long-term prepayments Other receivables Guarantee deposits paid Others Current Non-current	31 December 2024 $ 45,313 5,578 31,260 7,924 19,249 11,779 $ 121,103 $ 68,762 52,341 $ 121,103	31 December 2023
		$ 146,910 - 36,481 3,707 3,225 12,522 $ 202,845 $ 161,306 41,539 $ 202,845

Note: This refers to bank time deposits with an initial maturity date exceeding 3 months up to 1 year, with an annual interest rate of 3.85% as of December 31, 2024.

16. Short-term borrowings

Short-term borrowings
Unsecured loans Loans against letter of credits Credit loans Annual interest rate	31 December 2024 $ 163,221 400,000 $ 563,221 1.525%~1.58%	31 December 2023
		$ 196,529 100,000 $ 296,529 1.38%

The terms pertaining to the credit limits of some of the Group ’s bank borrowings mentioned above stipulate financial restrictions, with which the Group fully complied.

17. Bonds payable

Bonds payable
Domestic unsecured convertible bonds 2024 First time 2024 second time Less: Corporate bond discount	31 December 2024
	$ 200,000 1,000,000 1,200,000 ( 54,346 ) $ 1,145,654

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2024 Domestic First Unsecured Convertible Bonds

On February 29, 2024, the Company, through a resolution approved by the Board of Directors, decided to raise and issue the first domestic unsecured convertible bonds. This case was declared effective by the Financial Supervisory Commission on May 21, 2024, under the FSC Securities Issuance No. 1130342373, and was issued on June 7, 2024, at par value. The total face value issued is 200,000 thousand, with a coupon rate of 0%, a term of three years, and a total issuance amount of 200,000 thousand, fully paid on June 5, 2024.

Bondholders may, from the day following the completion of three months after the issuance of these convertible bonds until the maturity date, request the Company to convert their bonds into the Company's common shares at a conversion price of NTD 359.7 per share, in accordance with the conversion method regulations. The conditions for the conversion price of this convertible bond include that when the Company distributes cash dividends of ordinary share, the conversion price should be adjusted downward on the ex-dividend date according to the percentage of the market price per share.

Due to the distribution of cash dividends from the company's earnings, the conversion price should be adjusted according to the regulations of bond issuance and conversion. Therefore, starting from 4 July 2024, the conversion price will be reduced from the original NT$359.7 per share to NT$354.5 per share.

From the day following the completion of three months from the issuance date of these convertible bonds until 40 days before the expiration of the issuance period, if the closing price of the company's common stock at the securities firm's business premises exceeds the then conversion price by 30% (inclusive) or more for 30 consecutive business days, or if the outstanding balance of these convertible bonds falls below 10% of the original total issuance amount, the company may notify bondholders to redeem all outstanding convertible bonds in cash at face value.

The repurchase base date for bondholders to sell back the convertible bonds is the date marking two years since the issuance of the convertible

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bonds. Bondholders may request the Company to redeem their convertible bonds at 100% of the bond's face value.

This convertible bond includes liability and equity components, with the equity component expressed under equity as capital surplus, share options. Liabilities component originally recognized effective interest rate is 1.9553%. Redemption rights and put options derivatives are measured at fair value through profit or loss.

A m o u n t Issuance proceeds (less transaction costs of 915 thousand) $ 199,085 Redemption option derivative instruments ( 160 ) Equity component (net of allocated transaction costs of 47 thousand) ( 10,212 ) Issue date liabilities component (less apportioned transaction costs of 867 thousand) 188,713 Interest calculated at an effective interest rate of 1.9553% 2,144 31 December 2024 liabilities components $ 190,857

2024 Domestic Second Unsecured Convertible Bonds

On February 29, 2024, the Company approved the fundraising and issuance of the second domestic unsecured convertible bonds through a resolution at the Board of Directors meeting. This case was declared effective by the Financial Supervisory Commission on May 21, 2024, under the reference number 11303423731. The issuance took place on June 19, 2024, with a total face value of 1,000,000 thousand, a coupon rate of 0%, and a term of three years. The bonds were issued at 117.07% of the face value, resulting in a total issuance amount of 1,170,733 thousand, and were fully paid on June 17, 2024.

Bondholders may, from the day following the completion of three months after the issuance of these convertible bonds until the maturity date, request the Company to convert their bonds into the Company's common stock at a conversion price of NTD 347.5 per share, in accordance with the conversion method regulations. The conditions for the conversion price of this convertible bond include that when the Company distributes cash dividends of ordinary share, the conversion price should be adjusted downward on the ex-dividend date according to the percentage of the market price per share.

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Due to the distribution of cash dividends from the company's earnings, the conversion price should be adjusted in accordance with the provisions of the corporate bond issuance and conversion method. Therefore, from 4 July 2024, the conversion price will be reduced from the original NT$347.5 per share to NT$342.5 per share.

The convertible bonds may be redeemed in cash at their face value for all outstanding convertible bonds by the Company, upon notifying the bondholders, from the day following three months after the issuance date to 40 days before the end of the issuance period, if the closing price of the Company's common stock at the securities firm's business premises exceeds the then conversion price by 30% (inclusive) or more for 30 consecutive business days, or if the outstanding balance of the convertible bonds is less than 10% of the original total face value issued.

The redemption date for bondholders to sell back the convertible bonds to the Company at face value is the second anniversary of the issuance of these convertible bonds. Bondholders may request the Company to redeem the convertible bonds they hold at face value.

This convertible bond includes liability and equity components, with the equity component expressed under equity as capital surplus, share options. Liabilities component initially recognized at an effective interest rate of 1.9325%. Redemption rights and put options derivatives are measured at fair value through profit or loss.

A m o u n t Issuance proceeds (less transaction costs of 4,575 thousand) $ 1,166,158 Redemption option derivative instruments ( 298 ) Equity component (net of allocated transaction costs of 870 thousand) ( 221,664 ) Issue date liabilities components (net of allocated transaction costs 3,704 thousand) 944,196 Interest calculated at an effective interest rate of 1.9325% 10,601 31 December 2024 liabilities components $ 954,797

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18. Other payables

Other payables
Salary and bonus payable Remuneration payable to employees and directors Equipment payable Others	31 December 2024 $ 200,129 122,700 94,141 223,021 $ 639,991	31 December 2023
		$ 167,226 79,000 66,533 162,291 $ 475,050

Post-employment benefit plan (I) Defined contribution plan

The retirement scheme under the “ Labor Pension Act ” to which the Company and all subsidiaries in the territory of the Republic of China apply are the defined contribution pension plan managed by the government. A pension equal to 6% of employee ’s monthly wage shall be contributed to the personal labor pension account with the Bureau of Labor Insurance.

Employees of subsidiaries in China are members of the retirement benefit plan managed by the Chinese local government. Such subsidiaries are required to fund the retirement benefit plan by ’ contributing a certain percentage of salary cost to the plan. The Group s obligation under such a government-run retirement benefit plan is limited to contributing a certain monetary amount. (II) Defined benefit plan

The pension system adopted by the Company according to the “ Labor Standards Act ” is the defined benefit pension plan managed by the government. The years of service rendered and the average wage of six months prior to the approved retirement date shall be the reference for calculation of the pension to be paid to the employee. The Company appropriates 3% of the total monthly wage of an employee as the pension and remits the amount to the Labor Pension Fund Supervisory Committee, which will deposit the amount in a dedicated account under its name with the Bank of Taiwan. Before the end of each year, if the assessed balance in the account is inadequate to make a full payment of pensions to the employees who may meet the retirement

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conditions in the next year, the Company will make up the difference in one appropriation before the end of March in the following year. The account is managed by the Bureau of Labor Funds, Ministry of Labor, so the Company does not have the right to influence the investment management strategies.

The amounts of the defined benefit plan included in the consolidated balance sheet are listed as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liabilities (assets)	31 December 2024 $ 6,346 ( 8,110 ) ( $ 1,764 )	31 December 2023
		$ 5,444 ( 7,222 ) ( $ 1,778 )

Changes in net defined benefit liabilities (assets) are as follows:

January 1, 2024 balance Service cost Current service cost Recognized in profit or loss - interest expense (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding the amount included in net interest) Actuarial gain - change in financial assumption Actuarial loss - change in demographic assumption Actuarial loss - experience adjustment Recognized in other comprehensive income Contribution by employer 31 December 2024 balance	D e f i n e d b e n e f i t Present value ofobligation $ 5,444 620 62 682 $ - ( 222 ) 6 435 219 - $ 6,345	P l a n a s s e t s F a i rva lu e ( $ 7,222 ) - ( 83) ( 83) ( $ 645 ) - - - ( 645 ) ( 159 ) ( $ 8,109 )	Net defined b e n e f i t A s s e t s
			( $ 1,778 ) 620 ( 21 ) 599 ( $ 645 ) ( 222 ) 6 435 ( 426 ) ( 159 ) ( $ 1,764 )

(Continued)

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(Continued)

January 1, 2023 balance Service cost Recognized in profit or loss - interest expense (income) Remeasurements Return on plan assets (excluding the amount included in net interest) Actuarial gain - change in financial assumption Actuarial loss - experience adjustment Recognized in other comprehensive income Contribution by employer 31 December 2023 balance	D e f i n e d b e n e f i t Present value ofobligation $ 5,103 58 - ( 25 ) 308 283 - $ 5,444	P l a n a s s e t s F a i rva lu e ( $ 6,945 ) ( 80 ) ( 66 ) - - ( 66 ) ( 131 ) ( $ 7,222 )	Net defined b e n e f i t A s s e t s
			( $ 1,842 ) ( 22 ) ( 66 ) ( 25 ) 308 217 ( 131 ) ( $ 1,778 )

The Company is exposed to the following risks due to the pension “ ” system under the Labor Standards Act :

Investment risk: The Bureau of Labor Funds, Ministry of Labor separately has invested the labor pension fund in domestic (foreign) equity and debt securities, and bank deposits. The investment is conducted at the discretion of the Bureau or under the mandated management. However, the profit generated from the Group ’s plan assets shall be calculated with an interest rate not below the interest rate for a 2-year time deposit with local banks.
Interest rate risk: A decrease in the interest rates of government bonds leads to an increase in the present value of the defined benefit obligation, and the return on debt investment of the plan assets will be increased accordingly. The net defined benefit liabilities may be partially offset by both increases.
Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salary of the plan participants. Therefore, the present value of the defined benefit

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obligation would be increased by an increase in the plan participants’ salary.

The Company’s present value of the defined benefit obligation was calculated actuarially by a qualified actuary. The major assumptions on the date of measurement are as follows:

==> picture [410 x 53] intentionally omitted <==

If there was any reasonably possible change to the major actuarial assumptions separately, the resulting increase (decrease) in the present value of the defined benefit obligation in the situation where all the other assumptions remained the same is as follows:

31 December 2024 31 December 2023

==> picture [390 x 114] intentionally omitted <==

Since the actuarial assumptions might be correlated to each other and it is unlikely that a single assumption changes alone, the aforesaid sensitivity analysis might not reflect the actual changes in the present value of the defined benefit obligation.

Expected contribution within 1 year Average maturity of defined benefit obligations	31 December 2024 $ 181 7 years	31 December 2023
		$ 176 5 years

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20. Equity

(I) Common shares

Common shares
Number of authorized shares (thousand shares) Authorized capital Number of issued shares fully paid (thousand shares) Issued capital	31 December 2024 100,000 $ 1,000,000 80,328 $ 803,280	31 December 2023
		100,000 $ 1,000,000 80,328 $ 803,280

A share of issued common stock had a par value of NTD 10 and was entitled to one voting right and dividends. (II) Capital surplus

1.	The portion that may be used to offset deficits, distributed as cash dividends, or transferred to share capital Share premium Consolidation excess May only be used to make up for losses Changes in the equity of associates recognized using the equity method Must not be used for any purpose Convertible Bond Warrants	31 December 2024 $ 464,029 29,831 493,860 192,041 231,876 $ 917,777	31 December 2023
			$ 464,029 29,831 493,860 192,041 - $ 685,901
2.
3.

These capital reserves may be used to make up losses, to distribute cash dividends, or to be transferred into the capital if the Company is not in the red. However, the amount of the transfer into the capital shall be limited to a certain percentage of the paid-in capital in every year.
This type of capital surplus is recognized due to changes in the equity of associates when the Company has not actually acquired or disposed of the equity in associates, or due to the impact of

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equity transactions, or adjustments made by the Company for equity method recognition of associates' capital surplus.

(III) Retained earnings and dividend policy

According to the profit distribution policy stipulated in the Articles of Incorporation of the Company, if there is a surplus in the annual final accounts, after paying taxes according to law and making up for accumulated losses, 10% shall be set aside as legal reserve. However, if the legal reserve has reached the Company's paid-in capital, no further allocation is required. The remainder shall be allocated or reversed according to legal provisions into special reserve. If there is still a balance, it shall be combined with the accumulated unappropriated retained earnings, and a earning appropriation proposal shall be drafted by the Board of Directors. The Board of Directors is authorized to make a special resolution to distribute all or part of the dividends in cash, and report to the Shareholders' Meeting. However, dividend distribution in the form of new shares shall be subject to a resolution of the Shareholders' Meeting. For the distribution policy governing employee and director remunerations that is prescribed in the Articles of Incorporation, please refer to Note 22(IV) Remuneration to employees and directors.

The Company’s dividend policy considers the environment it is in and the growth stage it is at. To cope with future capital requirements and long-term financial planning while maintaining shareholder interests and a balanced dividend policy, shareholder dividends will be distributed in shares or in cash, as appropriate, based on future capital expenditure requirements and the extent of dilution effect on earnings per share. Of the shareholder dividends distributed, no less than 10% shall be in cash. The actual distribution percentage shall be determined by the Board of Directors by considering the Company ’s business planning, investment plan, capital planning, and the changes in internal and external environment.

Legal reserves may be used to make up for losses. Where the Company does not sustain loss, the part of the legal reserves that

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exceeds the total paid-in capital by no greater than 25% may be appropriated as capital or distributed in cash.

According to the Financial Supervisory Commission's letter No. 1090150022, the Company allocates and reverses the special reserve.

The earnings appropriation proposals for 2023 and 2022 are as follows:

follows:
Legal reserves Provision (reversal) of special reserve Cash dividends Cash dividends per share (NT$)	2023 $ 63,788 ( $ 33,380 ) $ 321,312 $ 4.00	2022
		$ 57,010 $ 19,074 $ 289,181 $ 3.60

The said cash dividends were distributed through resolutions at the Board meetings in February 2024 and March 2023, and the remaining earning appropriation items were also resolved at the Shareholders’ Meetings in June 2024 and June 2023 respectively.

The Board of Directors of the Company proposed the earning appropriation proposals for 2024 on 27 February 2025 as follows:

Legal reserves Cash dividends Cash dividends per share (NT$)	2024
	$ 92,732 $ 361,476 $ 4.50

The said cash dividends had been approved through a resolution at a Board of Directors meeting. Other distribution items are still pending a resolution at the Shareholders ’ Meeting to be held in May 2025.

(IV) Treasury stock

Through a resolution at the Board of Directors meeting in September 2018, the Company decided to buy back 811 thousand treasury shares to transfer them to employees. The buyback was completed in October 2018, with an average buyback price of 62.47 dollars.

In August 2023, the Company's Board of Directors approved the cancelation of all treasury shares for capital reduction in accordance

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with Article 28-2, paragraph 4 of the Securities and Exchange Act, and the record date for the capital reduction was set as 17 October 2023.

According to the Securities and Exchange Act, the treasury shares held by the Company may not be pledged; nor may they be entitled to dividend distribution or voting rights.

21. Revenue

Revenue
Goods sales revenue Agent Manufacturing Services revenue Commission Maintenance Others Other operating revenue Contract balance Notes and accounts receivable (including those due from related parties) (Notes 9 and 28) Contract liabilities	2024 $ 6,078,159 3,322,329 9,400,488 86,222 167,750 23,306 277,278 10,514 $ 9,688,280 31 December 2024 31 December 2023 $ 590,216 $ 787,381 $ 14,006,118 $ 11,818,592		2023
			$ 4,528,090 2,147,124 6,675,214 83,060 123,349 23,064 229,473 7,294 $ 6,911,981 January1,2023






		$ 787,381 $ 11,818,592	$ 859,698 $ 7,718,760

Changes in contract liabilities mainly come from the difference between the points in time when the Company fulfills obligations and when customers make payments.

The amount that comes from the contract liabilities at the beginning of the year and the amount that comes from the revenue recognized in the year in which performance obligations were fulfilled are as follows:

==> picture [425 x 27] intentionally omitted <==

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22. Net profit

(I) Financial cost

(I) Financial cost
Interest on convertible bonds Interest on bank borrowings Interest on lease liabilities Others (II) Depreciation and amortization Property, plant and equipment Right-of-use assets Summary of depreciation expenses by function Operating cost Operating expenses Summary of amortization by function General and administrative expenses (III) Employee benefit expenses Short-term employee benefits Post-employment benefit Defined contribution plan Defined benefit plan Summary by function Operating cost Operating expenses	2024 $ 12,745 3,215 1,877 38 $ 17,875 2024 $ 117,380 18,100 $ 135,480 $ 47,198 88,284 $ 135,482 $ 259 2024 $ 1,185,045 48,221 599 48,820 $ 1,233,865 $ 272,995 960,870 $ 1,233,865	2023
		$ - 2,907 1,680 - $ 4,587 2023
		$ 110,178 11,126 $ 121,304 $ 34,881 86,423 $ 121,304 $ 260 2023
		$ 1,000,450 40,950 ( 22 ) 40,928 $ 1,041,378 $ 236,266 805,112 $ 1,041,378

(IV) Remuneration to employees and directors

According to its Articles of Incorporations, the Company shall take the pre-tax profits inclusive of employee remuneration and director – remuneration and allocate 5% 15% of such profits as employee

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remuneration and another 2% or less as director remuneration. The remuneration to employees and directors estimated for 2024 and 2023 was resolved by the Board of Directors in February 2025 and 2024 as follows: resolution

Amount

Amount
Employee remuneration Directors' remuneration	2024 $ 108,700 14,000	2023
		$ 70,000 9,000

Any amount that changes after the approval and publication date of the annual consolidated financial statements is accounted for as changes in accounting estimates, and will be adjusted and recognized in the following year.

The actually distributed amount of employee remuneration and director remuneration for 2023 and 2022 tallied with the amount recognized in the Consolidated Financial Statements for 2023 and 2022. The information about remuneration to employees and directors determined by the Board of Directors may be viewed at TWSE ’s Market Observation Post System (MOPS).

Income tax

(I) Income tax recognized in profit or loss

Major components of income tax expenses:

Current income tax Producer in the current year Adjustments for the previous year Deferred income tax Producer in the current year Adjustments for the previous year Income tax expenses recognized in profit or loss	2024 $ 308,782 ( 38,091 ) 270,691 79,290 ( 260 ) 79,030 $ 349,721	2023
		$ 224,208 ( 29,454 ) 194,754 15,288 - 15,288 $ 210,042

Reconciliation of accounting income and income tax expenses is as

follows:

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(II) (III)	2024 2023 Net profits before tax $ 1,276,704 $ 860,344 Income tax expense derived from applying the pre-tax profit to the statutory tax rate $ 461,058 $ 251,721 Expense and loss not deductible from tax 5,403 1,373 Tax exempt income ( 1,140 ) ( 16,247 ) Additional levy on undistributed earnings 14,308 10,242 Unrecognized loss carryforwards and deductible temporary differences ( 90,785 ) ( 7,593 ) Adjustments for the previous year ( 38,091 ) ( 29,454 ) Others ( 1,032 ) - Income tax expenses recognized in profit or loss $ 349,721 $ 210,042 Income tax benefits (expenses) recognized in other comprehensive income 2024 2023 Deferred income tax Current year generated - Translation of foreign operations ( $ 16,493 ) $ 3,283 `－`Re-measurements of defined benefit plans ( 86 ) 43 ( $ 16,579 ) $ 3,326 Current income tax liabilities 31 December 2024 31 December 2023 Current income tax liabilities Income tax payable $ 159,652 $ 182,388	2023
		$ 3,283 43 $ 3,326 31 December 2023
		$ 182,388

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(IV) Deferred income tax assets and liabilities

		2024
B ala nce - beginning of p e r i o d $ 95,585 28,137 10,188 6,422 7,243 2,900 6,159 $ 156,634 $ - 134,634 $ 134,634	Recognized in profit or l o s s $ 87,384 4,226 ( 1,030) 4,844 ( 7,243 ) ( 1,437 ) 349 $ 87,093 $ 7,113 159,010 $ 166,123	Recognized i n o t h e r T o t a l i n c o m e $ - ( 1,876) - - - - ( 86) ( $ 1,962 ) $ - 14,617 $ 14,617 2023	E xc ha nge differences $ - - - - - - 12 $ 12 $ - - $ -	B a l a n c e - end ofyear
				$ 182,969 30,487 9,158 11,266 - 1,463 6,434 $ 241,777 $ 7,113 308,261 $ 315,374
B ala nce - beginning of p e r i o d $ 55,341 20,679 9,230 6,512 8,263 4,159 5,963 $ 110,147	Recognized in profit or l o s s $ 40,244 5,582 958 ( 90 ) ( 1,020 ) ( 1,259 ) 153 $ 44,568	Recognized i n o t h e r T o t a l i n c o m e $ - 1,876 - - - - 43 $ 1,919	E x c h a n g e differences $ - - - - - - - $ -	B ala n ce - end ofyear
				$ 95,585 28,137 10,188 6,422 7,243 2,900 6,159 $ 156,634

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Deferred in co me ta x l i a b i l i t i e s Temporary differences Undistributed earnings of subsidiaries $ 76,185 $ 59,856 ( $ 1,407 ) $ - $ 134,634

(V) Amount of deductible temporary difference and loss carryforwards of deferred income tax assets unrecognized in the consolidated balance sheet

31 December 2024 31 December 2023

	31 December 2024	31 December 2
Loss carryforwards Maturity in the year 2024 Maturity in the year 2025 Maturity in the year 2026 Maturity in the year 2027 Maturity in the year 2028 Maturity in the year 2029 Maturity in the year 2030 Maturity in the year 2031 Maturity in the year 2032 Maturity in the year 2033 Maturity in the year 2034 Deductible temporary differences	$ - 29,534 28,838 25,343 19,840 18,434 15,697 21,760 34,705 535 39 $ 194,725 $ 165,264	$ 74,222 94,847 49,417 42,286 30,687 30,093 24,190 21,760 34,705 535 -
		$ 402,742
		$ 204,464

(VI) Information on unused loss carryforwards

As of December 31, 2024, the information on loss carryforwards of the Group is as follows:

e Group is as follows:
Unused balance 29,534 28,838 25,343 19,840 18,434 15,697 21,760 34,705 535 39 $ 194,725	L a t e s t y e a r o f d e d u c t i o n
	2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

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(VII) Authorization of income tax

The Company's and subsidiaries ’ profit-seeking business income tax filings have been approved by the tax authority through the year specified as follows:

L a t e s t y e a r o f C o m p a n y n a m e a p p r o v a l The Company 2022 ACROMASS 2022 NATGEM 2022

24. Earnings per share

Earnings per share
Basic earnings per share Diluted earnings per share Net profit in the current year Net profit attributable to owners of the Company Effect of potential diluted common shares: Convertible bonds interest after tax Net profit used for calculating diluted earnings per share of continuing operations Shares Weighted average number of common shares used for calculating basic earnings per share Effect of potential diluted common shares: Convertible bonds Employee remuneration Weighted average number of common shares used for calculating diluted earnings per share	2024 $ 11.54 $ 11.36 2024 $ 926,983 10,196 $ 937,179 Unit: 2024 80,328 1,880 317 82,525	Unit: NT$ 2023
		$ 8.10 $ 8.05 2023
		$ 650,302 - $ 650,302 Thousand shares 2023
		80,328 - 465 80,793

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Where the Group may elect to distribute employee remuneration in shares or in cash, when calculating the diluted EPS, the Group assumes that all employee remuneration is distributed in shares and counts the potentially dilutive common shares - when deemed dilutive - in the weighted average number of shares outstanding. In the following year, before calculating the diluted earnings per share for the number of shares distributed as employee remuneration, the dilutive effect of these potential common shares is also considered in the resolution.

Non-cash transactions

The Group transferred inventories to property, plant and equipment for own use amounting to 30,880 thousand and 45,788 thousand in 2024 and 2023, respectively (see Note 13).

26. Capital risk management

The Group conducts capital management to ensure the Group can continue as a going concern while maximizing shareholders ’ return by optimizing the liability and equity balances.

The Group’s capital structure is composed of its net debt and its equity.

The key management of the Group reviews its capital structure every year in terms of the cost and risks of each capital category. Based on the recommendation of the key management, the Group will balance its capital structure by paying dividends and issuing new debts or paying existing debts.

27. Financial instruments

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

31 December 2024

F a i r v a l u e Boo k valu e L e v e l 1 L e v e l 2 L e v e l 3 T o t a l Financial liabilities Financial liabilities measured at amortized cost - Convertible bonds $ 1,145,654 $ - $ - $ 1,145,654 $ 1,145,654

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

Fair value hierarchy

31 December 2024

==> picture [258 x 8] intentionally omitted <==

	L e v e l 1	L e v e l 2	L e v e l 3	T o t a l
Financial assets at fair value through profit or loss Derivative Instruments - Convertible Bond Redemption and Put Option Financial assets at fair value through other comprehensive income Investment in equity instruments Common shares issued by domestic TWSE- listed companies through a private placement Foreign shares not traded on an exchange or OTC 31 December 2023 Financial assets at fair value through profit or loss Domestic emerging company stocks Financial assets at fair value through other comprehensive income Investment in equity instruments Common shares issued by domestic TWSE- listed companies through a private placement Foreign shares not traded on an exchange or OTC	$ - $ - - $ - L e v e l 1 $ 7,529 $ - - $ -	$ - $ 218,098 - $ 218,098 L e v e l 2 $ - $ 157,011 - $ 157,011	$ 2,480 $ - 60,930 $ 60,930 L e v e l 3 $ - $ - 53,125 $ 53,125	$ 2,480 $ 218,098 60,930 $ 279,028 T o t a l
				$ 7,529 $ 157,011 53,125 $ 210,136

There were no transfers between Level 1 and Level 2 Fair value measurements for the years 2024 and 2023.

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Reconciliation of the financial instruments measured at Level 3 fair value 2024

F i n a n c i a l a s s e t s Balance - beginning of period Recognized in other comprehensive income Balance - end of year

T h r o u g h o t h e r c o m p r e h e n s i v e income measured at f a i r v a l u e Of financial assets Equity instruments $ 53,125 7,805 $ 60,930

2023

T h r o u g h o t h e r c o m p r e h e n s i v e income measured at f a i r v a l u e Of financial assets F i n a n c i a l a s s e t s Equity instruments Balance - beginning of period $ 49,357 Recognized in other comprehensive income 3,768 Balance - end of year $ 53,125

Level 2 fair value valuation techniques and inputs

If there is no quoted price for the common shares issued by domestic TWSE-listed companies through a private placement, such common shares are evaluated by using valuation techniques. The assumptions and estimates used by the Group for the valuation techniques are the same as the assumptions and estimates accessible to the Company that are used by market participants for quoting a price for financial products.

The valuation technique the Group used for measuring the fair value is the Black-Scholes pricing model.

Level 3 fair value valuation techniques and inputs
(1) The redemption and put options of the convertible bonds issued by the Group are evaluated for fair value using the two trees convertible bond pricing model. The significant unobservable inputs adopted are stock price volatility.

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When the volatility of stock prices increases, the fair value of such derivatives will change. The stock price volatility adopted on 31 December 2024 was 56.31%.

(2) When valuing the foreign shares not traded on an exchange or OTC, the Group used the income approach by which the present value of benefits expected to be derived from such investment is calculated by discounting the cash flows. Significant unobservable inputs are as follows. When liquidity discount decreases, the fair value of such investment will increase.

==> picture [382 x 26] intentionally omitted <==

If the following inputs are changed to reflect reasonably possible alternative assumptions while other inputs are held constant, the amount of the fair value of equity investment will increase (decrease) by:

increase (decrease) by:
Liquidity discount Increase by 1% Decrease by 1% Type of financial instruments Financial assets Financial assets mandatorily measured at fair value through profit or loss Financial assets at amortized cost (Note 1) Financial assets at fair value through other comprehensive income Financial liabilities Financial liabilities at amortized cost (Note 2)	31 December 2024 ( $ 900 ) $ 900 31 December 2024 $ 2,480 7,683,197 279,028 3,836,314	31 December 2023
		( $ 784 ) $ 784 31 December 2023
		$ 7,529 5,602,200 210,136 2,644,852

(III) Type of financial instruments

Note 1:The balance included financial assets measured at amortized cost such as cash and cash equivalents, notes receivable and accounts

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receivable (including those due from related parties), other receivables (presented under other current assets), restri cted assets (presented under other current assets), and guarantee deposits paid (presented under other non-current assets).

Note 2:The balance included short-term borrowings, bonds payable, notes payable, and accounts payable, and other payables, which are financial liabilities measured at amortized cost.

(IV) Financial risk management purpose and policy

The Group ’s financial instruments mainly comprise equity investment, receivables, payables, borrowings, and lease liabilities. The financial management department of the Group provides services for each type of business and supervises and manages the financial risks incidental to the Group ’s operations by referencing the internal risk report in which risk exposure is analyzed based on the extent and extensiveness of risks. Such risks include market risk, credit risk, and liquidity risk.

The financial management department provides a report to the key management quarterly to reduce risk exposure. The Group did not adopt hedge accounting.

Market risk
(1) Exchange rate risk

Some subsidiaries of Group are engaged in sales and purchase denominated in foreign currency, thus exposing the Group to the exchange rate fluctuation risk.

For the book value of the Group ’s monetary assets and monetary liabilities denominated in a currency other than the functional currency on the balance sheet date, refer to Note 31.

Sensitivity analysis

The Group is affected primarily by fluctuation in the exchange rate of USD.

The sensitivity analysis includes only the foreign currency monetary items outstanding, which are translated at

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the end of year by using an exchange rate that could be adjusted by a maximum of 1%. When the functional currency appreciates/depreciates by 1% against the USD, the effects on the consolidated profit before tax for 2024 and 2023 will be NT$32,231 thousand and NT$25,799 thousand, respectively. The exchange rate fluctuation mainly affects the Group ’s bank deposits, as well as the payables and receivables denominated in USD that were still outstanding and were not hedged with a cash flow hedge on the balance sheet date.

(2) Interest rate risk

The interest rate risk facing the Group mainly comes from the Group’s floating-rate bank deposits.

The book value of the financial assets and liabilities of the Group that were exposed to the interest rate risk on the balance sheet date is as follows:

31 December 2024 31 December 2023

	31 December 2024	31 December 2
With cash flow interest
rate risk
- Financial assets	$ 3,808,813	$ 2,969,110
- Financial liabilities	400,000	100,000
With fair value interest
rate risk
- Financial assets	3,255,745	1,836,991
- Financial liabilities	1,308,875	196,529
- Lease liabilities	90,451	84,078

Sensitivity analysis

The following sensitivity analysis is based on the interest risk exposure of non-derivatives on the balance sheet date. Floating-rate liabilities are analyzed based on the assumption that the liability amount outstanding on the balance sheet date remains outstanding throughout the reporting period.

If interest rate increases/decreases by 1%, held other variables constant, the Group ’s consolidated profit before tax in 2024 and 2023 will change by 34,088 thousand and 28,691 thousand, respectively.

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2. Credit risk

The credit risk means the risk of causing financial loss to the Group because the trading counterparty defaults on contractual obligations. As of the balance sheet date, the Group ’s maximum credit exposure to the financial loss caused by a trading counterparty’s defaulting on his/her performance obligations mainly lies in the book value of the financial assets recognized on the consolidated balance sheet.

According to its policy, the Group only trades with reputational counterparties and requires provision of collateral where necessary to reduce the risk of financial loss due to default.

The Group exposes to the credit risk, which mainly comes from the customers who individually account for 10% or more of the Group’s total accounts receivables (including those due from related parties). Refer to Note 9 for details.

Liquidity risk

The Group manages and maintains sufficient cash to support business operations and reduce the effect of the fluctuating cash flow. The management of the Group monitors the use of bank financing facilities and ensures compliance with the terms of the loan contract.

Bank loans are one of the Group ’s important sources of liquidity. For the bank financing facility that the Group has not used, refer to relevant descriptions in (2) below.

(1) Liquidity and interest rate risks of non-derivative financial liabilities

The maturity analysis of other non-derivative financial liabilities is compiled based on the agreed repayment date.

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31 December 2024

31 December 2024
Non-derivative financial liabilities Non-interest bearing debt bonds payable Instruments with a floating rate Lease liabilities	1`–`3 months $ 2,288,101 - 400,762 5,159 $ 2,694,022	4 months`–`1 y e a r $ 2,531 - - 12,712 $ 15,243	More than 1 y e a r
			$ - 1,200,000 - 82,054 $ 1,282,054

More information on the maturity analysis of lease liabilities:

More information on the maturity analysis of lease liabilities:	More information on the maturity analysis of lease liabilities:	iabilities:
Less than 1 y e a r 2–5years 6–10years 11–15years 16–20years Lease liabilities $ 17,871 $ 36,834 $ 22,800 $ 22,420 $ - 31 December 2023 1`–`3 months 4 months`–`1 y e a r More than 1 y e a r Non-derivative financial liabilities Non-interest bearing debt $ 2,533,013 $ 11,839 $ - Instruments with a floating rate 100,332 - - Lease liabilities 3,575 10,293 81,647 $ 2,636,920 $ 22,132 $ 81,647		16–20years
Non-derivative financial liabilities Non-interest bearing debt Instruments with a floating rate Lease liabilities
	$ - - 81,647 $ 81,647

More information on the maturity analysis of lease liabilities:

==> picture [353 x 45] intentionally omitted <==

(2) Credit limit of financing facilities

Unsecured bank loan limit (extendable upon mutual agreement) - Employed capital - Unemployed capital	31 December 2024 $ 613,011 966,989 $ 1,580,000	31 December 2023
		$ 336,805 1,083,195 $ 1,420,000

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28. Related Party Transactions

All transactions, account balance, profits, and expenses/losses between the Company and its subsidiaries are entirely eliminated upon consolidation, and therefore not disclosed in this note. In addition to those disclosed in other notes, significant transactions between the Group and other related parties are described as follows:

(I) Name and relationship of related party

N a m e o f r e l a t e d p a r t y Relationship with the Group HUNG-LIANG HSIEH Chairperson XTEK SEMICONDUCTOR (HUANGSHI) CO., Associates LTD. (XTEK SEMICONDUCTOR) FORWARD SCIENCE PTE.LTD. Associates HONG LUN CULTRUAL CREATIVITY Same key management FUNDATION

(II) Operating revenue

Operating revenue
Presented under item Goods sales revenue Services revenue Other operating revenue	Name and type of r e l a t e d p a r t y Associates Associates Associates	2024 $ 9,437 $ 2,119 $ -	2023
			$ 111,658 $ 16 $ 79

The price and payment terms for a sale transaction between the Group and related parties are determined based on the terms mutually agreed upon. (III) Contract liabilities

Contract liabilities	Contract liabilities
Nameandtype of related party 31 December 2024 Associates $ 1,843 Receivables Presented under item Name and type of r e l a t e d p a r t y 31 December 2024 Accounts receivable - related parties Associates XTEK SEMICONDUCTOR $ - Other receivables (presented Same key management $ 4 other current assets)		31 December 2023
Associates Receivables Presented under item Accounts receivable - related parties Other receivables (presented other current assets)			$ 1,843 31 December 2023

	$ - $ 4		$ 11,439 $ 8

(IV) Receivables

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No guarantee was requested for the outstanding receivables due from related parties. The loss allowance balance for receivables due from related parties as of 31 December 2024 and 2023 were NT$0 thousand and NT$828 thousand, respectively. In 2024 and 2023, the reversal of loss allowance for receivables due from related parties was (828) thousand and 451 thousand, respectively. (V) Payables

==> picture [412 x 40] intentionally omitted <==

The outstanding balance of the payables due to related parties was not secured against collateral.

(VI) Lease agreements

==> picture [412 x 42] intentionally omitted <==

==> picture [412 x 55] intentionally omitted <==

The lease contracts between the Group and related parties are negotiated with reference to market conditions, and follow standard payment terms.

(VII) Others

Name and type of Presented under item r e l a t e d p a r t y 2024 2023 Rental income Same key $ 24 $ 24 (presented under management other income)

Operating expenses Associates $ 646 $ 1,133 (IX) Remuneration to key management

2024 2023 Short-term employee benefits $ 89,210 $ 76,088 Post-employment benefit 976 897 $ 90,186 $ 76,985

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The remuneration to directors and other key management was decided by the Remuneration Committee according to personal performance and market trends.

29. Pledged Assets

The following assets were provided to the Custom Office as collateral against the bonded goods and the payments and performance obligation of manufacturers.

==> picture [220 x 9] intentionally omitted <==

Pledged certificates of deposits (presented under other current assets) $ 44,435 $ 145,496

30. Significant Commitments

As of December 31, 2024 and 2023, the unused letter of credit amounts opened by the Consolidated Company for the purchase of goods, machinery and equipment, and as performance guarantees were NT$41,435 thousand and NT$142,772 thousand, respectively.

31. Information on foreign currency assets and liabilities with significant effects

The following information is summarized and stated based on the foreign currencies other than the functional currency of the Group's parent company only entities. Foreign currency assets and liabilities with significant effects are as follows:

31 December 2024

Foreign currency E x c h a n g e r a t e B o o k v a l u e

Foreign currency a s s e t s Monetary items USD $ 75,374 32.785 (USD:TWD) $ 2,471,149 USD 27,618 7.321 (USD:CNY) 905,464 USD 26,195 7.765 (USD: HKD) 858,801 CNY 10,723 4.478 (CNY:TWD) 48,020 EUR 3,946 34.140 (EUR:TWD) 134,718 EUR 1,335 7.624 (EUR:CNY) 45,564 JPY 568,880 0.210 (JPY:TWD) 119,408

(Continued)

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(Continued)

Foreign currency E x c h a n g e r a t e B o o k v a l u e

Non-monetary

Non-monetary
items
Associates
accounted for
using the
equity method
CNY	$	102,849	4.478 (CNY:TWD)	$	460,560
Foreign currency
l i abi l i t ie s
Monetary items
USD		22,480	32.785 (USD:TWD)		737,009
USD		7,848	7.321 (USD:CNY)		257,285
USD		728	7.765 (USD: HKD)		23,856
JPY		225,214	0.210 (JPY:TWD)		47,272
EUR		1,563	34.140 (EUR:TWD)		53,369

31 December 2023

Foreign currency E x c h a n g e r a t e B o o k v a l u e

Foreign currency a s s e t s Monetary items USD $ 74,629 30.705 (USD:TWD) $ 2,291,493 USD 32,574 7.096 (USD:CNY) 1,000,177 USD 23,323 7.815 (USD: HKD) 716,126 CNY 40,006 4.327 (CNY:TWD) 173,107 EUR 4,685 33.98 (EUR:TWD) 159,184 EUR 2,916 7.853 (EUR:CNY) 99,095 JPY 455,386 0.217 (JPY:TWD) 98,819 Non-monetary items Associates accounted for using the equity method CNY 107,566 4.327 (CNY:TWD) 465,440 Foreign currency l i a b i l i t i e s Monetary items USD 30,471 30.705 (USD:TWD) 935,624 USD 10,658 7.096 (USD:CNY) 327,266 USD 5,549 7.815 (USD: HKD) 170,389

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==> picture [425 x 57] intentionally omitted <==

The realized and unrealized foreign exchange gain (loss) of the Group in 2024 and 2023 were NT$14,882 thousand and NT$(54,695) thousand, respectively. However, it was not feasible to disclose the exchange loss and gain of each significant foreign currency because the number of foreign currencies involved in foreign currency transactions as well as the number of functional currencies of entities within the Group varied.

32. Supplementary Disclosures

Except those disclosed in Appendix Table 1 through 8, there were no required disclosures.

33. Segment Information

Information provided for the operating decision makers to allocate resources and evaluate segment performance focuses on the type of products or services delivered or provided. The reportable segments of the Group are as follows:

(I)

Segment revenue and operating outcome

The revenue and operation outcome of the Group are analyzed by reportable segment as follows:

Agent Manufacturing Reportable segments - total Headquarters Administrative costs and non-operating income and expenses Subtotal Inter-segment sales revenue Net sales revenue Net profits before tax	S e g m e n t	r e v e n u e 2023 $ 4,777,648 2,185,811 6,963,459 6,963,459 ( 51,478 ) $ 6,911,981	S egm e n tpr o	f i t o r l o s s
	2024 $ 6,377,351 3,360,574 9,737,925 9,737,925 ( 49,645 ) $ 9,688,280		2024 $ 845,147 450,083 1,295,230 18,526 $ 1,276,704	2023
				$ 493,251 360,611 853,862 6,482 $ 860,344

Segment profits mean the profits earned by each segment, excluding the following items that should be allocated among them: administrative cost of the headquarters, director remuneration, non - operating income and expenses, and income tax expenses. Such measurements serve as a basis for main operational decision makers to allocate resources to segments and evaluate their performance.

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(II) Segment assets and liabilities

The Group disclosed the measurements of total assets and liabilities of reportable segments as a whole instead of individually because the measurements of assets and liabilities had yet to be provided to the operational decision makers.

(III) Geographic information
The Group mainly operates in the two regions: Taiwan and China.
(IV) Information on major customers

In 2024 and 2023, the operating revenue was NT$2,036,490 thousand and NT$928,807 thousand, respectively, from customers who individually account for more than 10% of the Group's consolidated revenue; except for such customers, there were no other customers whose revenue individually accounted for more than 10% of the Group's total revenue.

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2024

SCIENTECH CORPORATION and its subsidiaries

Loans to others

2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024
Appendix Table 1														Unit: Unless otherwise specified For NTD Thousand
N o .	Lending company	Borrowing company	B u s i n e s s transaction A c c o u n t N a m e	Whether Related p a r t y	In the current year Highest balance ( N o t e 3 )	Balance - end of y e a r ( N o t e 3 )	A c t u a l Amount of funds u t i l i z e d ( N o t e 3 )	I n t e r e s t rate range `（％）`	Loaning of f u n d s N a t u r e	B u s i n e s s t r a n s a c t i o n a m o u n t	S h o r t - t e r m f i n a n c i n g Reasons for the need of financing	Provision for allowance for d o u b t f u l a c c o u n t s	C o l l a	t e r a l	Limit of loans to a single b o r r o w e r L o a n l i m i t ( N o t e 1 a n d 3 )	L o a n i n g o f f u n d s To t a l L i m i t (Note 2 and 3)
													N a m e	V a l u e
0 1 2	The Company SCIENTECH ENGINEERING (HONG KONG) LIMITED SCIENTECH ENGINEERING CORP.(SHANGH AI)	NATGEM INC. SCIENTECH ENGINEERING CORP.(SHANGH AI) SCIENTECH ENGINEERING USA CORP. SCIENTECH GMBH The Company	Other receivables `－`Related party Other receivables `－`Related party Other receivables `－`Related party Other receivables `－`Related party Other receivables `－`Related party	Yes Yes Yes Yes Yes	$ 2,000 26,228 ( US$800 thousand) 32,785 ( US$1,000 thousand) 32,785 ( US$1,000 thousand) 201,510 ( CNY$45,000 thousand)	$ 2,000 - - - 201,510 ( CNY$45,000 thousand)	$ - - - - 161,208 ( CNY$36,000 thousand)	1.2 - - - 1.5	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - - -	Working capital Working capital Working capital Working capital Working capital	$ - - - - -	`－` `－` `－` `－` `－`	$ - - - - -	$ 496,201 26,228 ( US$800 thousand) 32,785 ( US$1,000 thousand) 32,785 ( US$1,000 thousand) 201,510 ( CNY$45,000 thousand)	$ 1,984,802 645,595 ( HKD152,912 thousand) 645,595 ( HKD152,912 thousand) 645,595 ( HKD152,912 thousand) 657,758 (CNY146,887 thousand)

Note 1: The limit of loans to a single borrower is as follows:

For companies having business transactions with the Company, the limit shall not exceed the transaction amount between both parties. The term 'transaction amount' refers to the higher of the purchase or sales amount between the parties.
Limit of loaning of funds to a company in need of short -term financing should not exceed 10% of the Company ’ s net worth.
Limit of loaning of funds to a foreign operation whose voting shares are fully held by the Company, either directly or indire ctly, should exceed neither the amount approved by the Board of Directors nor the amount equal to 80% of the lending company ’s net worth.

Note 2: The limit of total funds loaned to others is as follows:

Limit of the Company should not exceed 40% of the Company ’ s net worth.
SCIENTECH ENGINEERING (HONG KONG) LIMITED for foreign companies whose voting shares are fully held by the Company, either directly or indirectly, should not exceed 80% of the foreign operation ’s net worth.
Foreign companies in which SCIENTECH ENGINEERING CORP. (SHANGHAI) directly or indirectly holds the voting shares or directly or indirectly holds 100% of the voting shares of SCIENTECH ENGINEERING CORP. (SHANGHAI) via the Company should not exceed 40% of the foreign operation ’ s net worth.

Note 3: Converted at the exchange rate of US$1 again st $32.785, HKD$1 against $4.222, and RMB$1 against $4.478 on December 31, 2024.

Note 4: The said transactions had been eliminated during the preparation of the consolidated financial statements.

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SCIENTECH CORPORATION and its subsidiaries

Making endorsements/guarantees for others

2024

Appendix Table 2

Unit: Unless otherwise specified, For NTD Thousand

N o .	Endorser/guara n t o r C o m p a n y n a m e	Partybeingendorsed/guaranteed	Partybeingendorsed/guaranteed	F o r a s i n g l e e n t e r p r i s e L i m i t o n endorsement/guaran t e e s (Notes 1 and 2)	H i g h e s t endorsement in the y e a r Guarantee balance ( N o t e 2 )	E n d o f y e a r e n d o r s e m e n t Guarantee balance ( N o t e 2 )	a c t u a l a m o u n t d r a w n d o w n ( N o t e 2 )	Collateralized by p r o p e r t i e s Endorsement/guara n t e e a m o u n t ( N o t e 2 )	Accumulated endorsement/g u a r a n t e e Amount p er l a t e s t Net worth of the financial s t a t e m e n t s Percentage (%)	Ceiling on Total Endorsement/Guara n t e e ( N o t e 2 an d 3 )	P a r e n t company Subsidiar y Endorsem ent/guara n t e e	Subsidiar y T o t h e p a r e n t company Endorsem ent/guara n t e e	Belongin g t o Mainland C h i n a Geograph i c endorsem e n t Guarantee
		C o m p a n y n a m e	Relationship
0 1	The Company SCIENTECH ENGINEER ING (HONG KONG) LIMITED	SCIENTECH ENGINEERING (HONG KONG) LIMITED SCIENTECH ENGINEERING CORP.(SHANGH AI)	Subsidiary Parent company	$ 2,481,002 403,497 ( HKD95,570 thousand)	$ 49,178 ( US$1,500 thousand) 3,279 ( US$100 thousand)	$ 49,178 ( US$1,500 thousand) -	$ - -	$ - -	0.99% `－`	$ 4,962,005 806,994 (HKD191,140 thousand)	Y N	N Y	N Y

Note 1: The Company and its subsidiaries should not exceed 50% of each respective company's net worth for a single enterprise . Note 2: Converted at the exchange rate of US$1 against NT$32.785 and HKD$1 against NT$4.222 on December 31, 2024. Note 3: Should not exceed 100% of the Company ’s or a subsidiary’s net worth stated on the financial statements.

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SCIENTECH CORPORATION and its subsidiaries

Marketable Securities Held at the End of Period

31 December 2024

Appendix Table 3

Unit: NT$ thousand

H o l d e r	Type and name of marketable s e c u r i t i e s	With marketable s e c u r i t i e s R e la t i o n s h ip with the issuer	A c c o u n t N a m e	E n d o f y e a r	E n d o f y e a r	E n d o f y e a r	E n d o f y e a r	E n d o f y e a r
				S h a r e s	B o o k v a l u e	Shareholding P e r c e n t a g e ( % )	F a i r v a l u e	Remarks
SCIENTECH CORPORATION SCIENTECH INVESTMENT CORP.	Shares HITEKCORPS CO., LTD. AUENTER TECHNOLOGY CORP. AMCHAEL-GRAPHICS CORP. PROMOS TECHNOLOGIES INC. INFINITESIMA LIMITED SPIROX CORP. Shares SIGLAZ	`－` `－` `－` `－` `－` `－` `－`	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss	225,000 600,000 700,000 4,662 6,111,111 4,000,000 1,100,000	$ - - - - 60,930 218,098 -	3.19 13 33 - 9.30 3.50 15.80	$ 60,930 218,098 -	`－` `－` `－` `－` `－` `－` `－`

Note: For information on investment in subsidiaries and associates, refer to Appendix Tables 6 and 7.

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SCIENTECH CORPORATION and its subsidiaries

The accumulated amount of purchase or sale of the same marketable securities reaching 300 million or more than 20% of paid -in capital

2024

					2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024
Appendix Table 4					Unit: NT$ thousand
Buying and selling c o m p a n y	Marketable securities T y p e a n d n a m e	Ac count Na me	Transaction Counterparty	Relationship	B egi n n i ngo fye a r		P u r c h a s e		S e l l				O t h e r a d j u s t me n t s ( N o t e )	E n d o f y e a r
					S h a r e s	A m o u n t	S h a r e s	A m o u n t	S h a r e s	Selling price	B o o k c o s t	Gain on disposal		S h a r e s	A m o u n t
The Company TRANSCEND CAPITAL CORP. SCIENTECH ENGINEERING CORP.(SHANGHAI)	Common stock YAYA TECHNOLOGIES CORPORATION XTEK SEMICONDUCTO R (HUANGSHI) CO., LTD. XTEK SEMICONDUCTO R (HUANGSHI) CO., LTD.	Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	`－` SCIENTECH ENGINEERING CORP.(SHANGHAI) TRANSCEND CAPITAL CORP.	`－` Associates Associates	- 14,268,388.4 -	$ - US$15,226 thousand -	6,722,905 - 14,268,388.4	$ 215,133 - US$14,536 thousand	- 14,268,388.4 -	$ - US$14,536 thousand -	$ - US$14,536 thousand -	$ - - -	( $ 447 ) ( US$690 thousand) ( US$420 thousand)	6,722,905 - 14,268,388.4	$ 214,686 - US$14,116 thousand

Note: This refers to the share of profit or loss of associates accounted for using the equity method and exchange differences on translation of foreig n financial statements.

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SCIENTECH CORPORATION and its subsidiaries

Acquisition of property reaching NT$3 billion or more than 20% of paid-in capital

2024

					2024	2024
Appendix Table 5							Unit: NT$ thousand
A c q u i s i t i o n o f p r o p e r t y Of the company	Property Name	D a t e o f Transaction	Tra nsa ction a m o u n t	Payment Status	Tra nsa ction Counterparty	Relationship	Previous Transfer Data if the Transaction C o un terp ar tyIs aRelate dPar ty				P r i c e determination Reference basis	Acqu is i t i on purpose and Usage details	O t h e r a g r e e m e n t s M a t t e r s
							O w n e r	With the issuer Relationship	Transfer D a t e	A m o u n t
SCIENTECH CORPORATION	Buildings	2024/12/13 (Note)	$ 900,000 (Note)	Handled according to contract terms	(Note)	`－`	`－`	`－`	`－`	$ -	(Note)	From the local committee construction, prosper Construct plants for operation Freight charges	None

Note: It is based on the expected transaction information approved by the Board of Directors, and the actual transaction info rmation should be subject to the contract.

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SCIENTECH CORPORATION and its subsidiaries

Name and Territory of Investees and Other Relevant Information

2024

Appendix Table 6

Unit: Unless otherwise specified, For NTD Thousand

N a m e o f i n v e s t o r	I n v e s t e e	R e g i o n	M a i n b u s i n e s s l i n e	Origi nal i nv es tment amo unt	Origi nal i nv es tment amo unt	H e l d a t t h e e n d o f y e a r	H e l d a t t h e e n d o f y e a r	H e l d a t t h e e n d o f y e a r	I n v e s t e e Profit or loss in the p e r i o d	Recognized in the p e r i o d Investment gains or l o s s e s	Remarks
				31 December 2024	January 1, 2024	S h a r e s	Percenta g e	B o o k v a l u e
SCIENTECH CORPORATION SCIENTECH GMBH SCIENTECH ENGINEERING CORP.(SHANGHAI)	SCIENTECH GMBH ACROMASS TECHNOLOGIES INC. SCIENTECH MATERIALS CORPORATION NATGEM INC. SCIENTECH GMBH TRANSCEND CAPITAL CORP. RENORIGIN INNOVATION INSTITUTE CO., LTD. FORWARD SCIENCE PTE. LTD. YAYA TECHNOLOGIES CORPORATION SIMPLE INVESTMENT CORP. SCIENTECH ENGINEERING USA CORP. SCIENTECH ENGINEERING (HONG KONG) LIMITED	Mauritius Taipei City Taipei City Taipei City Austria British Virgin Islands Taipei City Singapore Hsinchu City Mauritius California, US Hong Kong	Investment General instrument and precision instrument manufacturing Manufacturing and sale of energy-efficient products Sale of food and supplies International trade Investment Sale of biotech products Trading and maintenance of semiconductor equipment and peripherals Trading of semiconductor equipment and peripherals Investment Trading of semiconductor equipment and peripherals International trade	$ 171,775 270,000 - 33,000 10,672 417,289 14,030 11,944 215,133 160,827 ( US$4,906 thousand) 9,836 ( US$300 thousand ) 6,063 ( CNY$1,354 thousand)	$ 171,775 270,000 205,000 33,000 10,672 417,289 14,030 11,944 - 160,827 ( US$4,906 thousand) 9,836 ( US$300 thousand) 6,063 ( CNY$1,354 thousand)	5,540,000 27,000,000 - 800,000 - 14,290,000 1,121,000 500,000 6,722,905 4,905,500 300,000 -	100 100 - 100 100 100 20 21 40 100 100 100	$ 1,676,920 3,357 - 607 19,932 429,894 5,252 214,686 1,643,791 ( US$50,139 thousand) 30,352 ( US$926 thousand) 806,994 ( CNY$180,213 thousand)	$ 796,205 40 - 528 ( 1,157 ) ( 21,134 ) ( 5,864 ) ( 63,224 ) 795,280 ( US$24,766 thousand) ( 902 ) ( US$28 thousand) 316,905 ( CNY71,151 thousand)	$ 796,205 40 - 528 ( 1,157 ) ( 21,134 ) ( 1,262 ) ( 447 ) 795,280 ( US$24,766 thousand) ( 902 ) ( US$28 thousand) 316,905 ( CNY71,151 thousand)	`－` `－` (Notes 1, and 2) `－` `－` (Note 5) (Note 2) (Note 2) `－` (Note 3) (Note 3) (Note 3)

Note 1: SCIENTECH MATERIALS CORPORATION was dissolved through a resolution reached at the Board of Directors meeting dated 31 August 2021. The liquidation was completed by May 2024. Note 2: It was calculated based on financial statements in the same period that were not audited by CPAs.

＝＝ Note 3: The amount was converted using the exchange rate of US$1 $32.785 and RMB$1 $4.478 on December 31, 2024. Investment gains or losses were converted using the average exchange rate

of US$1=32.112 and RMB$1=4.454 during January 1, 2024 and December 31, 2024.

Note 4: It is a subsidiary. The said transactions had been eliminated during the preparation of the Consolidated Financial Statements.

Note 5: The Company approved the liquidation of TRANSCEND CAPITAL CORP through a resolution at the Board meeting in January 2025.

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2024

Appendix Table 7

SCIENTECH CORPORATION and its subsidiaries

Information on Investment in Mainland China

Unit: Unless otherwise specified, For NTD Thousand

Mainland investee C o m p a n y n a m e	Main business line	paid-in capital ( N o t e 1 )	Method of investment	At the beginning of the year from T a i w a n R e m i t t e d a c c u m u l a t e d I n v e s t m e n t a m o u n t ( N o t e 1 )	Amount of investments remitted or re c o v ere di nc ur ren ty ea r	Amount of investments remitted or re c o v ere di nc ur ren ty ea r	End of year from T a i w a n R e m i t t e d a c c u m u l a t e d I n v e s t m e n t a m o u n t ( N o t e 1 )	I n v e s t e e Profit or loss in t h e p e r i o d	T h e C o m p a n y’s shareholding of d i r e c t o r i n d i r e c t investment (%)	Recognized in the y e a r Investment gains o r l o s s e s	Investment at the end of the year B o o k v a l u e	As of the end of c u r r e n t y e a r Profit received from i n v e s t m e n t s
					R e m i t t e d	R e c o v e r e d
SCIENTECH ENGINEERING CORP.(SHANG HAI) XTEK SEMICONDUCT OR (HUANGSHI) CO., LTD.	Trading and maintenance of semiconductor equipment and peripherals Trading of semiconductor equipment and peripherals	$ 159,663 ( US$4,870 thousand ) 2,717,419 ( US$82,886 thousand )	Investment in Mainland China companies through the establishment of companies in third regions (Note 3) Investment in Mainland China companies through the establishment of companies in third regions (Note 4)	$ 159,663 ( US$4,870 thousand ) 467,789 ( US$14,268 thousand )	$ - -	$ - -	$ 159,663 ( US$4,870 thousand ) 467,789 ( US$14,268 thousand )	$ 795,279 (Notes2 and 6) ( 122,037 ) (Notes2)	100 17.21	$ 795,279 ( 21,008 )	$ 1,644,395 416,994	$ - -

Accumulated amount of investments from Limit on the amount of investments in Mainland Investment amount approved by the Investment Taiwan to Mainland China at the end of current China specified by the Investment Commission, C o m m i s s i o n , M O E A ( N o t e 1 ) p e r i o d ( N o t e 1 ) M O E A $ 627,452 (US$19,138 thousand) $ 627,452 (US$19,138 thousand) $ 2,977,203

Note 1: Converted at the exchange rate of US$1 ＝ $32.785 on December 31, 2024.

Note 2: It was calculated based on financial statements in the same period that were audited by CPAs.

Note 3: Through SIMPLE INVESTMENT CORP. Investment in SCIENTECH ENGINEERING CORP. (SHANGHAI).

Note 4: Originally invested in XTEK SEMICONDUCTOR (HUANGSHI) CO., LTD. via TRANSCEND CAPITAL CORP. For the consideration of the overall investment strategy, the Company's Board of

Directors reached a resolution in November 2024 to transfer all shares held by TRANSCEND CAPITAL CORP in XTEK SEMICONDUCTOR (HUANGSHI) CO., LTD. to SCIENTECH ENGINEERING CORP. (SHANGHAI).

Note 5: The balance of unrealized gains as of 31 December 2024 arising from the sale of machinery and equipment and provision of services to XTEK SEMICONDUCTOR (HUANGSHI) CO., LTD. was NT$45,789 thousand. The realized gross profit during 1 January 2024 and 31 December 2024 was NT$5,154 thousand.

Note 6: The said transactions had been eliminated during the preparation of the consolidated financial statements.

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SCIENTECH CORPORATION

Information on Major Shareholders

31 December 2024

Appendix Table 8

N a m e o f m a j o r s h a r e h o l d e r	S h a r e s	S h a r e s
	Number of shares held ( sh a re s )	O w n e r s h i p
HUNG-LIANG HSIEH FEN-CHINGHSIEH-CHIU	7,822,390 5,974,007	9.73% 7.43%

Note: The information on major shareholders are acquired from the data of the Taiwan Depository & Clearing Corporation with respect to the shareholders holding aggregately 5% or more of the common and preferred stocks of the Company that have been registered and delivered (including treasury stock) in dematerialized form on the last business day at the end of the current quarter. The share capital stated in the consolidated financial statements of the Company may be different from the number of shares that have been actually registered and delivered in dematerialized form due to different bases of compilation and calculation.

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AI assistant

Scientech — Annual Report 2024

52347_rns_2024-11-14_73f02e84-bba7-41f5-9793-35e12f7d2b8a.pdf

SCIENTECH CORPORATION and Subsidiaries

§ Table of Contents §

Declaration of Consolidated Financial Statements of Affiliated Companies

Independent Auditors ’ Report

Audit opinion

Basis of Audit Opinion

Revenue recognition

Other Matters

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

2.

3.

SCIENTECH CORPORATION and its subsidiaries

Consolidated Balance Sheets

December 31, 2024 and 2023

Unit: NT$ thousand

(Continued)

SCIENTECH CORPORATION and its subsidiaries

Unit: NT$ thousand

SCIENTECH CORPORATION and its subsidiaries

Consolidated Statement of Cash Flows

SCIENTECH CORPORATION and its subsidiaries Notes to the Consolidated Financial Statements

1. Company History

2.

3. Application of New Standards, Amendments, and Interpretations

4. Summary of significant accounting policies

2. Equity instruments

2. The Consolidated Company is a lessee

(XV) Government grants

1. Short-term employee benefits

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

6. Cash and cash equivalents

7. Current financial assets at fair value through profit or loss

8. Financial assets at fair value through other comprehensive income

11. Subsidiary

SCIENTECH CORPORATION

12. Investments accounted for using equity method

XTEK SEMICONDUCTOR (HUANGSHI) CO., LTD.

13. Property, plant and equipment

15. Other assets

16. Short-term borrowings

17. Bonds payable

2024 Domestic First Unsecured Convertible Bonds

2024 Domestic Second Unsecured Convertible Bonds

18. Other payables

(Continued)

20. Equity

21. Revenue

22. Net profit

(I) Financial cost

Amount

(IV) Deferred income tax assets and liabilities

(VII) Authorization of income tax

24. Earnings per share

26. Capital risk management

27. Financial instruments

31 December 2024

31 December 2024

Sensitivity analysis

Sensitivity analysis

2. Credit risk

28. Related Party Transactions

(II) Operating revenue

29. Pledged Assets

30. Significant Commitments

31. Information on foreign currency assets and liabilities with significant effects

31 December 2024

31 December 2023

32.

Supplementary Disclosures

33.

Segment Information

Segment revenue and operating outcome

SCIENTECH CORPORATION and its subsidiaries

Note 1: The limit of loans to a single borrower is as follows:

SCIENTECH CORPORATION and its subsidiaries

Appendix Table 2

SCIENTECH CORPORATION and its subsidiaries

Scientech Annual Report 2024

`§` Table of Contents `§`

Independent Auditors `’` Report