Scientech — Audit Report / Information 2024

Nov 14, 2024

Stock Code: 3583

SCIENTECH CORPORATION

Parent Company Only Financial Statement 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 Chineselanguage independent auditors’ report and consolidated financial statements shall prevail.

-1-

§ Table of Contents §

I T E M 1. Cover 2. Table of Contents 3. Independent Auditors’Report 4. Parent Company Only Balance Sheets 5. Parent Company Only Statements of Comprehensive Income 6. Parent Company Only Statements of Changes in Equity 7. Parent Company Only Statements of Cash Flows 8. Notes to the Parent Company Only 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 9. Schedule of Major Accounts	P A G E 1 2 3～7 8 9～11 12 13～15 16 16 16～19 17～35 35 36～69 69～72 72 73 - 40 73～74 74～79 74、80 74、81 74、82 - 83～95	NOTES TO THE FINANCIAL STATEMENTS
		- - - - - - - 1 2 3 4 5 6-26 27 28 29 - 11 30 31 31 31 31 - -

1. Schedule of Major Accounts

-2-

Independent Auditors ’ Report

SCIENTECH CORPORATION The Board of Directors and Shareholders:

Audit opinion

SCIENTECH CORPORATION's Parent Company Only Balance Sheets as of December 31, 2024 and 2023, and the Parent Company Only Statements of Comprehensive Income, Parent Company Only Statements of Changes in Equity, Parent Company Only Statements of Cash Flows for the period from January 1 through December 31, 2024 and 2023, and the notes to the parent company only financial statements (including the summary of significant accounting policies), have been audited by our accountants.

In our opinion, the aforementioned parent company only financial statements are prepared, in all material respects, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and they fairly present the financial position of SCIENTECH CORPORATION as of 31 December 2024 and 2023, and its financial performance and cash flows f or the periods from 1 January to 31 December 2024 and 2023.

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 Parent Company Only Financial Statements section of our report. The personnel of our affiliated firm have adhered to the International Code of Ethics for Professional Accountants (IESBA Code), maintaining impartial independence with SCIENTECH CORPORATION and fulfilling other responsibilities under the code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

-3-

Key Audit Matters

Key Audit Matters refer to matters that, in our professional judgment, were of most significance in the audit of the SCIENTECH CORPORATION parent company only financial statements for the year 2024. These matters were addressed in the context of our audit of the parent company only 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 of the individual financial statements of SCIENTECH CORPORATION for the year 2024 are stated as follows:

Revenue recognition

SCIENTECH CORPORATION in the year 2024, due to the operating revenue from agency and manufacturing of machines being significant to the overall financial statements, recognizes machine revenue upon fulfillment of performance obligations. Since the Company may recognize sales revenue without meeting the recognition criteria for souvenir (merchandise) revenue, it is classified 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 of the recognized revenue.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines it is necessar y to enable the preparation of parent company only financial statements that are free from material misstatements, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the SCIENTECH CORPORATION's ability to continue

-4-

as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless management either intends to liquidate the SCIENTECH CORPORATION or to cease operations or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing SCIENTECH CORPORATION's financial reporting process.

Auditors' Responsibilities for the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists in these parent company only financial statements. 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 individual 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 parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit eviden ce that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

-5-

1. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the SCIENTECH CORPORATION ’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 parent company only 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 SCIENTECH CORPORATION to cease to continue as a going concern.

2. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures and whether or not the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

3. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within SCIENTECH CORPORATION to express an opinion on the parent company only financial statements. The auditor is responsible for directing, supervising, and executing the audit engagement and for forming the audit opinion of SCIENTECH CORPORATION.

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

-6-

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 2024 individual financial statements of SCIENTECH CORPORATION 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 should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Deloitte & Touche Taiwan CPA: HUI-MIN HUANG

CPA: YU-CHENG HSIN

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

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

27 February 2025

-7-

SCIENTECH CORPORATION

Parent Company Only 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 2620 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 receivable and accounts receivable (Notes 4, 9, and 20) Accounts receivable - related parties (Notes 4, 9, 20, and 27) Inventories (Notes 4, 10, 24, and 27) Prepayments Other current assets (Notes 14, 27, and 28) 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 11) Property, plant and equipment (Notes 4, 12, and 24) Right-of-use assets (Notes 4 and 13) Patent right (Note 4) Deferred income tax assets (Notes 4 and 22) Prepayments for equipment (Note 12) Net defined benefit assets (Notes 4 and 18) Other non-current assets (Note 14) 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 15) Contract liability (Notes 4, 20 , and 27) Notes payable and accounts payable (Note 27) Other payables (Notes 12, 17, and 27) Current income tax liabilities (Notes 4 and 22) Short-term warranty provision (Note 4) Lease liabilities (Notes 4, 13, and 27) Other current liabilities Total current liabilities Non-current liabilities Bonds payable (Notes 4 and 16) Deferred income tax liabilities (Notes 4 and 22) Lease liabilities (Notes 4, 13, and 27) Long-term accounts payable to related parties (Notes 27) Total non-current liabilities Total liabilities Equity (Notes 4 and 19) 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 ％ $ 4,544,695 23 2,480 - 510,990 3 5,312 - 9,246,466 46 666,527 3 18,046 - 14,994,516 75 279,028 2 2,350,648 12 1,593,816 8 77,314 - 1,698 - 241,405 1 455,810 2 1,764 - 50,265 - 5,051,748 25 $ 20,046,264 100 $ 563,221 3 10,832,711 54 1,206,423 6 642,326 3 92,387 1 56,330 - 14,363 - 28,231 - 13,435,992 67 1,145,654 6 315,374 1 66,333 - 120,906 1 1,648,267 8 15,084,259 75 803,280 4 917,777 5 439,166 2 - - 2,641,716 13 3,080,882 15 55,395 - 104,671 1 160,066 1 4,962,005 25 $ 20,046,264 100	31 December 2023	31 December 2023
		A m o u n t $ 4,544,695 2,480 510,990 5,312 9,246,466 666,527 18,046 14,994,516 279,028 2,350,648 1,593,816 77,314 1,698 241,405 455,810 1,764 50,265 5,051,748 $ 20,046,264 $ 563,221 10,832,711 1,206,423 642,326 92,387 56,330 14,363 28,231 13,435,992 1,145,654 315,374 66,333 120,906 1,648,267 15,084,259 803,280 917,777 439,166 - 2,641,716 3,080,882 55,395 104,671 160,066 4,962,005 $ 20,046,264	A m o u n t $ 2,948,723 7,529 534,241 11,797 7,319,127 730,499 13,631 11,565,547 210,136 1,278,290 1,489,494 69,012 2,036 156,534 67,518 1,778 39,553 3,314,351 $ 14,879,898 $ 296,529 8,243,994 1,346,615 466,934 126,254 32,110 9,169 15,916 10,537,521 - 134,634 62,718 155,772 353,124 10,890,645 803,280 685,901 375,378 33,380 2,066,113 2,474,871 ( 10,578 ) 35,779 25,201 3,989,253 $ 14,879,898	％
				20 - 4 - 49 5 - 78 1 9 10 1 - 1 - - - 22 100 2 56 9 3 1 - - - 71 - 1 - 1 2 73 5 5 3 - 14 17 - - - 27 100

The accompanying notes are an integral part of the parent company only financial statements.

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

• • 8

SCIENTECH CORPORATION

Parent Company Only Statements 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, 20, and 27) 4100 Goods sales revenue 4600 Services revenue 4800 Other operating revenue 4000 Total operating revenue 5000 Operating costs (Notes 10, 21, and 27) 5900 gross profit from operations 5910 Realized (unrealized) gains on transactions with associates (Notes 4 and 11) 5950 Realized operating gross profit Operating expenses (Notes 4, 9, 21, and 27) 6100 Marketing expenses 6200 General and administrative expenses 6300 R&D expenses 6000 Total operating expenses 6900 Operating Income Non-operating income and expenses 7010 Other income (Notes 4, 8, and 27) 7020 Other gains and losses (Note 4) (Continued)	2024	％ 97 3 - 100 72 28 - 28 14 3 6 23 5 - -	2023
	A m o u n t $ 5,609,341 173,936 10,430 5,793,707 4,204,993 1,588,714 5,154 1,593,868 810,002 154,391 376,687 1,341,080 252,788 14,216 1,556		A m o u n t $ 3,800,173 138,898 9,151 3,948,222 2,596,663 1,351,559 ( 4,791 ) 1,346,768 532,868 136,554 340,589 1,010,011 336,757 34,758 ( 2,542 )	％
				96 4 - 100 66 34 - 34 14 3 9 26 8 1 -

-9-

(Continued) C o d e 7030 Gains on disposals of investments(Notes 11) 7050 Financial cost (Notes 4, 21, and 27) 7070 Share of profit or loss of associates and subsidiaries accounted for using equity method (Notes 4 and 11) 7100 Interest revenue (Notes 4 and 27) 7630 Exchange gains or losses (Notes 4 and 30) 7670 Impairment loss (Notes 4 and 12) 7000 Total non-operating income and expenses 7900 Net profits before tax 7950 Income tax expenses (Notes 4 and 22) 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 18) 8316 Unrealized valuation gains or losses on investment in equity instruments at fair value through other comprehensive income 8349 Income tax related to items that will not be reclassified (Note 22) 8310 (Continued)	2024	％ - - 13 1 1 - 15 20 4 16 - 1 - 1	2023
	A m o u n t $ - ( 20,347 ) 772,773 84,121 26,286 - 878,605 1,131,393 204,410 926,983 426 68,892 ( 86 ) 69,232		A m o u n t $ 80,634 ( 4,529 ) 268,068 64,062 ( 7,617 ) ( 916 ) 431,918 768,675 118,373 650,302 ( 217 ) 71,574 43 71,400	％
				2 - 7 1 - -
				11
				19 3
				16
				- 2 -
				2

-10-

(Continued) C o d e Items that will be reclassified to profit or loss 8380 Share of other comprehensive income of associates and subsidiaries accounted for using equity method (Note 11) 8399 Income tax related to items that might be reclassified (Note 22) 8360 8300 Other comprehensive income (net after tax) 8500 Total comprehensive income for the year Earnings per share (Note 23) 9710 Basic 9810 Diluted	2024	％ 1 - 1 2 18	2023
	A m o u n t $ 82,466 ( 16,493 ) 65,973 135,205 $ 1,062,188 $ 11.54 $ 11.36		A m o u n t ( $ 16,389 ) 3,283 ( 13,106 ) 58,294 $ 708,596 $ 8.10 $ 8.05	％
				- - - 2 18

The accompanying notes are an integral part of the parent company only financial statements.

Chairman of the Board: HUNG-LIANG HSIEH

Manager: Accounting Manager: MING-CHI HSU SHAO-CHE CHUANG

-11-

SCIENTECH CORPORATION

Parent Company Only Statements of Changes in Equity

From January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

Code A1 January 1, 2023 balance M3 proceeds from disposal of investments accounted for using equity method Earning appropriation for 2022 B1 Legal reserves B3 special reserve appropriated B5 Cash dividends L3 Retirement of treasury share D1 2023 net profit D3 2023 other comprehensive income (loss), net of income tax Z1 31 December 2023 balance 2023 earning appropriation B1 Legal reserves B3 Special reserve B5 Cash dividends C5 Issuance of convertible corporate bonds recognized as part of equity item D1 2024 net profit D3 2024 other comprehensive income (loss), net of income tax Z1 31 December 2024 balance	C a p i t a l	s t o c k A m o u n t $ 811,390 - - - - ( 8,110 ) - - 803,280 - - - - - - $ 803,280	Capitalsurplus $ 728,964 ( 12,761 ) - - - ( 30,302 ) - - 685,901 - - - 231,876 - - $ 917,777	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	e q u i t y T hrough other t o t a l Profit or loss at f a i r v a l u e Va l u a t i o n o f E q u i t y i n s t r u m e n t s U n r e a l i z e d i n v e s t m e n t Valuation gains or l o s s e s ( $ 35,795 ) - - - - - - 71,574 35,779 - - - - - 68,892 $ 104,671	Treasury stock ( $ 50,659 ) - - - - 50,659 - - - - - - - - - $ -	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 di f ferenc e s
	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 ) - - - - $ -
						$ 2,415 113 - - - - - ( 13,106 ) ( 10,578 ) - - - - - 65,973 $ 55,395			$ 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 parent company only financial statements.

Chairman of the Board: HUNG-LIANG HSIEH

Manager: MING-CHI HSU

Accounting Manager: SHAO-CHE CHUANG

-12-

SCIENTECH CORPORATION

Parent Company Only Statements 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 measured at fair value through profit or loss A22300 Share of profit or loss of associates and subsidiaries accounted for using equity method A22500 loss on disposal of property, plant and equipment A23100 Gain on disposal of investments A23700 Impairment loss on non-financial assets A23900 Unrealized (Realized) losses (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 (Continued)	2024 $ 1,131,393 127,347 338 ( 7,559 ) 20,347 ( 84,121 ) ( 4,045 ) ( 2,794 ) ( 772,773 ) 8 - 436,917 ( 5,154 ) 35,383 599 39,481 7,554 ( 2,395,136 ) 63,972 ( 3,457 ) 2,588,717	2023
		$ 768,675 113,237 338 ( 7,449 ) 4,529 ( 64,062 ) ( 3,998 ) 248 ( 268,068 ) - ( 80,634 ) 202,135 4,791 ( 53,306 ) ( 22 ) 120,639 ( 7,429 ) ( 3,855,221 ) 749,889 ( 2,287 ) 3,774,702

-13-

(Continued) C o d e A32150 Notes payable and accounts payable A32180 Other payables A32200 short-term warranty provision A32230 Other current liabilities A32240 Net defined benefit liabilities (assets) 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 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 C03700 increase in other payable to related parties (decrease) C04020 Repayment of principal of lease liabilities C04500 Cash dividends paid CCCC Net cash flows from financing activities (used in) (Continued)	2024 ( 168,896 ) 145,318 24,220 12,315 ( 159 ) 1,189,815 $ 84,121 ( 7,594 ) ( 158,987 ) 1,107,355 7,385 ( 215,133 ) 3,167 ( 546,555 ) ( 10,712 ) 4,045 ( 757,803 ) 657,608 ( 401,761 ) 1,365,243 ( 38,943 ) ( 14,415 ) ( 321,312 ) 1,246,420	2023
		( 391,479 ) 29,983 ( 450 ) ( 1,189 ) ( 131 ) 1,033,441 $ 64,062 ( 4,583 ) ( 133,328 ) 959,592 38,716 ( 9,970 ) 48,940 ( 56,659 ) ( 7,225 ) 3,998 17,800 326,684 ( 449,363 ) - 198,207 ( 7,618 ) ( 289,181 ) ( 221,271 )

-14-

(Continued) C o d e EEEE Increase in cash and cash equivalents E00100 Cash and cash equivalents - beginning of year E00200 Cash and cash equivalents - end of year	2024 1,595,972 2,948,723 $ 4,544,695	2023
		756,121 2,192,602 $ 2,948,723

The accompanying notes are an integral part of the parent company only financial statements.

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

-15-

SCIENTECH CORPORATION

Notes to the Parent Company Only 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 Parent Company Only Financial Statement is stated in the functional currency of the Company, which is New Taiwan Dollars.

1. Date and procedures of approval of the financial statements

The Parent Company Only Financial Statement was 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 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 Amendments to IAS 21 “ Lack of Exchangeability ” January 1, 2025(Note 1) Amendments to IFRS 9 and IFRS 7, "Amendments to January 1, 2026 (Note 2) Classification and Measurement of Financial Instruments" regarding the amendments to application guidance on the classification of financial assets

-16-

• Note 1: The amendments shall apply to the annual reporting period beginning on or after January 1, 2025. When the amendment is applied for the first time, comparative periods should not be restated. Instead, the effect should be recognized in the retained earnings or exchange differences of foreign operations under equity (as appropriate) and the related affected assets and liabilities on the date of initial application.

• Note 2: The amendments shall apply to the annual reporting period beginning on or after January 1, 2026, and companies may also choose to apply early on January 1, 2025. When the amendment is applied for the first time, it should be applied retrospectively without restating the comparative period, and the effect of the initial application is recognized on the date of initial application. However, if the entity can restate without the use of hindsight, it may choose to restate the comparative periods.

As of the date when the Parent Company Only Financial Statement was approved and issued, the Company assessed the said amended standards and interpretations and found them to have no significant effects on the Company’s financial position and financial performance.

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

• 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 ) "Annual Improvements to IFRS Accounting 1 January 2026 –

• Standards Volume 11"

• Amendments to IFRS 9 and IFRS 7, "Amendments to 1 January 2026 Classification and Measurement of Financial Instruments" related to the application guidance on the derecognition of financial liabilities

• Amendments to IFRS 9 and IFRS 7, “ Contracts 1 January 2026 Referencing Nature-dependent Electricity ”

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

• IFRS 17 “ Insurance Contracts ” January 1, 2023 Amendments to IFRS 17 January 1, 2023

-17-

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 ) Amendment to IFRS 17, “ Initial Application of January 1, 2023 — ” IFRS 17 and IFRS 9 Comparative Information IFRS 18 “ Presentation and Disclosure in Financial 1 January 2027 Statements ” IFRS 19 “ Disclosure of Non-publicly Accountable 1 January 2027 Subsidiaries: Disclosure ”

• 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.

IFRS 18 “ Presentation and Disclosure in Financial Statements ”

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

1. The income statement should categorize income and expense items into operating, investing, financing, income tax, and discontinued operations types.

2. The income statement should report operating profit and loss, pretax profit before financing, as well as subtotals and totals of profit and loss.

3. Provide guidance to enhance aggregation and disaggregation requirements: The Company must identify assets, liabilities, equity, income, expens es, and cash flows arisin g from indi vidual transactions or other events, and classify and aggregate them based on common characteristics to ensure that each line item reported in the primary financial statements has at least one similar characteristic. Items with dissimilar charac teristics should be disaggregated in the primary financial statements and notes. The Company labels these items as "Others" only when no more i n f o r m a t i v e l a b e l i n g c a n b e i d e n t i f i e d .

4. Increase disclosure of management-defined performance measures: The Company should disclose information related to management - defined performance measures in a single note to the financial

-18-

statements when engaging in public communication outside the financial statements and communicating management's perspective on a certain aspect of the Company's overall financial performance to users of 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 effe cts of related reconciliation items on income tax and non-controlling interests.

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

1. Summary of significant accounting policies

2. (I) Compliance statement

The parent company only financial statements were prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

• (II) Basis of preparation

Except for the financial instruments measured at fair value and the net defined benefit liabilities recognized at the present value of defined benefit obligations less the fair value of the plan assets, the parent company only 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:

1. Level 1 inputs: The quoted price in an active market for identical assets or liabilities that is accessible on the measurement date (before adjustment).

2. 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).

-19-

1. Level 3 inputs: The inputs that are not observable for assets or liabilities.

When preparing the parent company only financial statements, the Group accounted for subsidiaries and associates using the equity method. To align the profit or loss, other comprehensive income, and equity in the parent company only financial statements with those attributable to owners of the Company stated in the consolidated financial statements, any differences resulting from the difference between parent company only basis and consolidated basis are adjusted through “ Investment accounted for using equity method ” , “ Share of profit or loss of associates and subsidiaries ” , “ Share of other comprehensive income of subsidiaries and associates accounted for using equity method ” , and other related equity items.

• (III) Criteria for classification of assets and liabilities as current or noncurrent

Current assets include:

1. Assets that are held mainly for trading purposes;

2. Assets expected to be realized within 12 months after the balance sheet date; and

3. 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:

1. Liabilities that are held mainly for trading purposes;

2. Liabilities that will be settled within 12 months after the balance sheet date; and

3. 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.

-20-

(IV) Foreign currency

When preparing the financial statements, the Company translated the transactions denominated in currencies other than its functional currency (i.e., foreign currencies) into its 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 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 parent company only financial statements, the assets and liabilities of the Company’s 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 Company) 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.

(V) 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

-21-

estimated cost needed to complete the sale. The weighted average method is used to calculate the inventory cost. (VI) Investment in subsidiary

The Company accounted for investment in subsidiaries using the equity method.

A subsidiary refers to an entity controlled by the Company.

Under the equity method, the investment 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 profits distributed and the Company’s shares of profit/loss and other comprehensive income in the subsidiaries. In addition, changes in subsidiaries’ other equity attributable to the Company are recognized according to the shareholding percentage.

(VII) Investment in associates

An associate refers to a company over which the Company has a significant influence and which is not a subsidiary or joint venture.

The Company accounted 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 profits distributed and the Company’s shares of profit/loss and other comprehensive income in the associates and joint ventures. In addition, changes to the Group ’s equity in the associates are recognized based on our shareholding ratio.

When the affiliated enterprise issues new shares and the Company does not subscribe according to its shareholding ratio, resulting in a change in the shareholding ratio and consequently a change in the net equity value of the investment, the increase or decrease is adjusted in — capital surplus the change in net equity value of the affiliated enterprise 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

-22-

ownership equity in the affiliated enterprise, the amounts recognized in other comprehensive income related to the affiliated enterprise are reclassified according to the reduction ratio. The accounting treatment is based on the same basis as that required for the direct disposal of relevant assets or liabilities by the affiliated enterprise. 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 Company’s shares of losses in the associates are equal to or exceed its 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 Company in the associate concerned), the Company does not recognize further losses. The Company recognizes additional losses and liabilities only when any legal obligation or constructive obligation is incurred or the Company made payment on behalf of the associates. For impairment evaluation, the Company 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 Company ceases to adopt the equity method from the date its investment ceases to be an affiliate, and its retained interest in the former affiliate is measured at fair value. The difference between the fair value and the price of disposal and the carrying amount of 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.

-23-

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

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

The Company 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,

-24-

the Company 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 parent company only balance sheet when the Company becomes a party to the 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

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

• (1) Type of measurement

The Company’s financial assets include financial assets measured at fair value through profit or loss, financial assets measured at amortized cost, and investment in equity

-25-

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 Company'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.

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

-26-

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

At initial recognition, the Company 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.

-27-

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 Company’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 Company 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 with a loss allowance 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 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.

-28-

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 Company 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.

2. Equity instruments

Equity instruments issued by the Company 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

-29-

instruments owned by the Company are not recognized in profit or loss.

1. Financial liabilities

2. (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.

1. Convertible Bonds

The compound financial instruments (convertible bonds) issued by the Company are classified into their respective components as financial liability and equity at initial recognition according to the substance of the contractual agreement and the definition 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 until conversion or maturity. The component of liabilities embedded with nonequity derivative instruments is measured at fair value.

The conversion rights classified as equity are recognized as the residual amount of the overall fair value of the compound instrument less the fair value of the separately determined liabilities component, after deducting the impact of income tax, and are not subsequently 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 capital surplus, additional paid-in capital. If the conversion rights of convertible bonds are not exercised by the maturity date, the amount recognized in equity will be transferred to capital surplus, additional paid-in capital.

-30-

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) and 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 Company’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 Company allocates the transaction price to each performance obligation and recognizes the allocated amount as revenue ’ after each performance obligation is fulfilled. The Company s revenue comes from equipment trading and wafer reclamation, and is recognized when products are accepted by customers; or when they are sh ipped 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 Company assesses whether the contract is, or contains, a lease.

1. The Company is a 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.

-31-

1. The 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 parent company only 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 Company remeasures the lease liabilities and adjusts the right-of-use assets accordingly. Lease liabilities are separately presented in the parent company only balance sheet.

(XV) Government grants

Government grants may be recognized only when it is reasonable to ensure that the Company will comply with the conditions incidental to the government grants and the subsidies may be received affirmatively.

-32-

Government subsidies related to income are recognized in other income on a systematic basis in the period in which the relevant costs intended to compensate are recognized as expenses by the Company. Government subsidies that are conditioned on the company purchasing, constructing or otherwise acquiring non-current assets are recognized as deferred income, and are transferred to profit or loss during the useful life of the relevant assets on a reasonable and systematic basis.

If the government grants are intended to make up for the expenses or losses that have occurred, or immediately finance the Company without incurring any future cost, such grants 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.

1. 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 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.

-33-

1. Current income tax

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.

2.

The adjustments to the income tax payable in the previous year are recognized in the current income tax. 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 Company 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 in the foreseeable future.

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.

-34-

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 consequences on the balance sheet date arising from the method that the Company expects to use to recover or settle the book value of the liabilities and assets.

1. 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 Company develops significant accounting estimates, it takes the development of climate change and related government policies and regulations and their potential impact on the economic environment into account when making significant accounting estimates for cash flo ws, growth rate, discount rate, and profitability. The management will continue to review the estimates and basic assumptions.

Through an assessment, the management of the Company does not think an uncertainty exists in material accounting judgments, estim ates, or assumptions.

-35-

6. Cash and cash equivalents

31 December 2024 31 December 2023 Cash on hand and working capital $ 305 $ 305 Bank check and demand deposit 2,301,850 2,272,908 Cash equivalents Time deposit whose initial maturity date will be due within 3 months 2,242,540 675,510 $ 4,544,695 $ 2,948,723

The annual interest rates for bank time deposits whose initial maturity date will be due within 3 months were 1.55% – 4.80% and – 5.06% 5.30% on December 31, 2024 and 2023, respectively.

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

31 December 2024 31 December 2023

Mandatorily at fair value through profit or loss Measurement 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

In July 2023, the company resigned as the director representative of FORWARD SCIENCE CORPORATION and lost significant influence, thus reclassifying the original investments accounted for using equity method to financial assets measured at Fair value through profit or loss. For relevant information, please refer to Note 11.

-36-

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 TWSE or TPEx INFINITESIMA LIMITED 60,930 53,125 $ 279,028 $ 210,136

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

9. 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 $ 2,260 526,543 528,803 12,501 $ 516,302	31 December 2023
		$ 4,214 561,897 566,111 20,073 $ 546,038

The Company’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

-37-

not 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 Company 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 Company cannot estimate a reasonable recoverable amount, the Company 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 Company recognizes the loss allowance for notes receivable and accounts receivable (including those due from related parties) as follows: 31 December 2024

==> picture [426 x 49] intentionally omitted <==

31 December 2023

==> picture [426 x 49] intentionally omitted <==

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

==> picture [425 x 97] intentionally omitted <==

-38-

The Company 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 Company ’ s total accounts receivable (including those due from related parties) balance are as follows:

==> picture [228 x 42] intentionally omitted <==

10. 11. (I)	Inventories 31 December 2024 Products $ 7,245,136 Finished-goods 614,282 Work-in-process 735,288 Raw materials 651,760 $ 9,246,466 2024 Cost of sales related to inventories $ 4,204,993 Loss on inventory devaluation $ 436,917 Investments accounted for using equity method 31 December 2024 Investment in subsidiary $ 2,130,710 Investment in associates 219,938 $ 2,350,648 Investment in subsidiary 31 December 2024 Non-listed company SCIENTECH GMBH $ 1,676,920 TRANSCEND CAPITAL CORP. 429,894 SCIENTECH GMBH 19,932 ACROMASS TECHNOLOGIES INC. 3,357 SCIENTECH MATERIALS CORPORATION - NATGEM INC. 607 $ 2,130,710	31 December 2023
		$ 5,877,850 286,228 697,636 457,413 $ 7,319,127 2023
		$ 2,596,663 $ 201,219 31 December 2023
	Investment in subsidiary Investment in associates Investment in subsidiary Non-listed company SCIENTECH GMBH TRANSCEND CAPITAL CORP. SCIENTECH GMBH ACROMASS TECHNOLOGIES INC. SCIENTECH MATERIALS CORPORATION NATGEM INC.
		$ 1,271,776 6,514 $ 1,278,290 31 December 2023
		$ 827,309 416,932 20,971 3,317 3,168 79 $ 1,271,776

-39-

Except for the profit or loss of SCIENTECH MATERIALS CORPORATION for 2024 and 2023, which was computed based on the financial statements for the same period that were not audited by CPAs, the profit or loss of subsidiaries accounted for using the equit y method for 2024 and 2023 was recognized based on their financial statements for the same periods that were audited by CPAs. The management of the Company did not think that not having SCIENTECH MATERIALS CORPORATION's financial statements audited by CPAs would cause any material impact.

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

Below are the Company’s ownership interests in subsidiaries and holding of voting shares in percentage terms on the balance sheet date:

SCIENTECH GMBH TRANSCEND CAPITAL CORP. SCIENTECH GMBH ACROMASS TECHNOLOGIES INC. SCIENTECH MATERIALS CORPORATION (Note) NATGEM INC.	31 December 2024 100% 100% 100% 100% - 100%	31 December 2023
		100% 100% 100% 100% 100% 100%

Note ： SCIENTECH MATERIALS was dissolved through a resolution reached at the Board of Directors meeting dated 31 August 2021, and the liquidation was completed in May 2024.

(II) Investment in associates

==> picture [411 x 39] intentionally omitted <==

In December 2024, the Company subscribed for 6,723 thousand ordinary shares of YAYA TECHNOLOGIES CORPORATION (YAYA TECHNOLOGIES CORPORATION) with cash of 215,133 thousand, holding a shareholding ratio of 40.34%. The Company's shareholding in

-40-

YAYA TECHNOLOGIES CORPORATION did not reach 50%, but it is individually the largest shareholder. After considering the number and dispersion of voting shares held by other shareholders, the Company assessed that the shareholdings are not diffuse. As a result, the Compan y is not yet able to direct the corporation's relevant activities and thus has only significant influence over it. Therefore, it is regarded as an associate and accounted for using the equity method.

The Company, in January 2025, obtained a majority of board seats at YAYA TECHNOLOGIES CORPORATION, and judged to have substantive control over YAYA TECHNOLOGIES CORPORATION, thus constituting a parent-subsidiary relationship.

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

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

The said investment accounted for using equity method, and the Company’s share of profit or loss and other comprehensive income in them were computed based on the financial statements not audited by CPAs. However, the management of the Company did not think that not having the financial statements audited by CPAs would cause any material impact.

==> picture [410 x 72] intentionally omitted <==

-41-

12. Property, plant and equipment

Cost January 1, 2024 balance Increase Decrease Reclassification 31 December 2024 balance Accumulated depreciation January 1, 2024 balance Depreciation Decrease 31 December 2024 balance Balance as of December 31, 2024 Cost January 1, 2023 balance Increase Decrease Reclassification 31 December 2023 balance Accumulated depreciation January 1, 2023 balance Impairment loss recognized Depreciation Decrease 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 $ 959,538 67,770 ( 6,155 ) - $ 1,021,153 $ 378,961 36,859 ( 6,155 ) $ 409,665 $ 611,488 $ 952,511 22,058 ( 15,031 ) - $ 959,538 $ 361,675 - 32,317 ( 15,031 ) $ 378,961 $ 580,577	Machinery and equ ipm e n t $ 498,779 97,070 ( 64,016 ) 30,880 $ 562,713 $ 223,256 63,187 ( 64,016 ) $ 222,427 $ 340,286 $ 483,088 16,825 ( 46,528 ) 45,394 $ 498,779 $ 206,702 916 62,166 ( 46,528 ) $ 223,256 $ 275,523	Other facilities $ 55,249 21,031 ( 10,574 ) - $ 65,706 $ 23,853 12,375 ( 10,566 ) $ 25,662 $ 40,044 $ 40,869 15,228 ( 1,185 ) 337 $ 55,249 $ 14,340 - 10,698 ( 1,185 ) $ 23,853 $ 31,396	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
						$ 2,115,564 185,871 ( 80,745 ) 30,880 $ 2,251,570 $ 626,070 112,421 ( 80,737 ) $ 657,754 $ 1,593,816 $ 2,078,466 54,111 ( 62,744 ) 45,731 $ 2,115,564 $ 582,717 916 105,181 ( 62,744 ) $ 626,070 $ 1,489,494

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

In 2023, the 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 Company recognized impairment loss of NT$916 thousand in 2023.

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

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

-42-

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 13. Lease agreement (I) 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	2024 $ 185,871 388,292 ( 27,608 ) $ 546,555 31 December 2024 $ 67,190 10,124 - $ 77,314 2024 $ 23,369 $ 5,508 8,477 941 $ 14,926	2023
		$ 54,111 53,026 ( 50,478 ) $ 56,659 31 December 2023
		$ 60,006 8,065 941 $ 69,012 2023
		$ 10,596 $ 4,578 1,637 1,841 $ 8,056

Except for the additions and recognized depreciation expense listed above, there was no significant sublease or impairment of the 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 $ 14,363 $ 66,333	31 December 2023
		$ 9,169 $ 62,718

-43-

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% 0.78% ～ 1.50% Other facilities - 0.78% ～ 0.92%

(III) Material lease activities and terms

The Company 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 Company 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 $ 8,056 $ 24,017	2023
		$ 8,315 $ 17,272

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

14. Other assets

Other assets
Long-term prepayments Restricted assets Guarantee deposits paid Other receivables Others Current Non-current	31 December 2024 $ 30,559 3,878 17,874 6,191 9,809 $ 68,311 $ 18,046 50,265 $ 68,311	31 December 2023
		$ 35,795 4,415 1,925 1,565 9,484 $ 53,184 $ 13,631 39,553 $ 53,184

-44-

15. Short-term borrowings

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

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

16. 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

2024 Domestic First Unsecured Convertible Bonds

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

Bondholders may request the conversion of their bonds into the Company's common stock at a conversion price of NTD 359.7 per share, in accordance with the conversion method, at any time from the day following the completion of three months after the issuance of this convertible bond until the maturity date. The conditions for the conversion price of this convertible bond include that when the Company distributes

-45-

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 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 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 redemption date for bondholders to sell back the convertible bonds to the Company is the second anniversary of the issuance of these convertible 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 initially recognized at an effective interest rate of 1.9553%. Redemption rights and put options derivatives are measured at Fair value through profit or loss.

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

-46-

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, and was issued on June 19, 2024. The total face value issued was 1,000,000 thousand, with a coupon rate of 0%, and a term of 3 years. It was issued at 117.07% of the face value, with a total issuance amount of 1,170,733 thousand, and was fully paid o n June 17, 2024.

Bondholders may, from the day following the three-month anniversary of the issuance of these convertible bonds until the maturity date, request the conversion of their bonds into the Company's common stock at a conversion price of NTD 347.5 per share, in accordance with the conversion terms. 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 provisions of the corporate bond issuance and conversion method. Therefore, starting from 4 July 2024, the conversion price was adjusted from the original NT$347.5 per share to NT$342.5 per share.

From the day following the completion of three months from the issuance date of these convertible bonds until 40 days before the 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 these convertible bonds falls below 10% of the original total face value issued, the company may notify bondholders to redeem all outstanding convertible bonds in cash at face value.

The redemption date for bondholders to sell back the convertible bonds to the Company at face value is the second anniversary of the

-47-

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 equit y 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 component (net of amortized 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

17. Other accounts payable

31 December 2024 31 December 2023 Salary and bonus payable $ 165,131 $ 134,928 Remuneration payable to employees and directors 122,700 79,000 Equipment payable 94,141 66,533 Others 260,354 186,473 $ 642,326 $ 466,934

18. Post-employment benefit plan

• (I) Defined contribution plan

The pension system that is specified in the “Labor Pension Act ” and adopted by the Company is 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.

• (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

-48-

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 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 parent company only balance sheet are listed as follows:

company only 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 interest expense (revenue) 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	Present value o f d e f i n e d b e n e f i t o bl iga t ions $ 5,444 620 62 682 $ ( 222 ) 6	Fair value of pl a n as s ets ( $ 7,222 ) - ( 83 ) ( 83 ) ( $ 645 ) - -	Net defined b e n e f i t l i a b i l i t i e s ( a s s e t s )
			( $ 1,778 ) 620 ( 21 ) 599 ( $ 645 ) ( 222 ) 6

(Continued)

-49-

(Continued)

d)
Actuarial loss - experience adjustment Recognized in other comprehensive income Contribution by employer 31 December 2024 balance 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 demographic assumption Actuarial loss - experience adjustment Recognized in other comprehensive income Contribution by employer 31 December 2023 balance	Present value o f d e f i n e d b e n e f i t o bl iga t ions 435 219 - $ 6,345 $ 5,103 58 - ( 25 ) 308 283 - $ 5,444	Fair value of pl a n as s ets - ( 645 ) ( 159 ) ( $ 8,109 ) ( $ 6,945 ) ( 80 ) ( 66 ) - - ( 66 ) ( 131 ) ( $ 7,222 )	Net defined b e n e f i t l i a b i l i t i e s ( a s s e t s )
			435 ( 426 ) ( 159 ) ( $ 1,764 ) ( $ 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 :

1. 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 Company s plan assets shall be calculated with an interest rate not below the interest rate for a 2-year time deposit with local banks.

1. 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

-50-

assets will be increased accordingly. The net defined benefit liabilities may be partially offset by both increases.

1. 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 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:

Discount rate Rate of expected salary increase	31 December 2024 1.60% 3.00%	31 December 2023
		1.15% 3.00%

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

	31 December 2024	31 December 2
Discount rate Increase by 0.25% Decrease by 0.25% Rate of expected salary increase Increase by 0.25% Decrease by 0.25%	( $ 116 ) $ 121 $ 115 ( $ 110 )	( $ 77 )
		$ 80 $ 73 ( $ 71 )

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

-51-

19. 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. 2. 3.	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

1. 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.

2. This type of capital surplus is the impact amount of equity transactions recognized due to changes in the equity of the investee company when the Company has not actually acquired or disposed of the equity of the investee company, or the adjustment amount of

-52-

capital surplus recognized by the Company using the equity method for the investee company.

(III) Retained earnings and dividend policy

According to the earning distribution policy stipulated in the Articles of Incorporation, if there is a surplus in the annual accounts, after paying the taxes according to law and making up for accumulated losses, 10% shall be allocated to the legal reserve. However, if the legal reserve has reached the paid-in capital of the company, no further allocation is required. The remaining amount shall be allocated or reversed as special reserve according to legal provisions. If there is still a balance, it shall be combined with the accumulated unappropriated retained earnings, and a proposal for earning appropriation shall be drafted by the board of directors. The board is authorized to make a special resolution to distribute all or part of the dividends and bonuses 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 remuneration that is prescribed in the Company's Articles of Incorporation, please refer to Note 21(4) 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

-53-

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 Company's 2023 and 2022 earning appropriation proposals are as follows:

as follows:
Legal reserves Provision (Reversal) 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 a resolution at the Board of Directors meetings in February 2024 and March 2023, respectively. Other earning appropriation items were also resolved at the Shareholders’ Meetings in June 2024 and 2023, respectively.

The Board of Directors of the Company proposed the earning appropriation proposals for 2024 on February 27, 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

-54-

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.

20. Revenue

Revenue
Goods sales revenue Manufacturing Agent Services revenue Commission Maintenance Others Other operating revenue	2024 $ 3,328,789 2,280,552 5,609,341 84,280 76,137 13,519 173,936 10,430 $ 5,793,707	2023
		$ 2,149,779 1,650,394 3,800,173 81,987 47,437 9,474 138,898 9,151 $ 3,948,222

Contract balance

Contract balance
Notes and accounts receivable (including those due from related parties) (Notes 9 and 27) Contract liabilities	31 December 2024 $ 516,302 $ 10,832,711	31 December 2023 $ 546,038 $ 8,243,994	January1,2023
			$ 653,849 $ 4,469,292

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:

Goods sales	2024 $ 2,040,365	2023
		$ 1,445,556

-55-

21. Net profit

(I) Financial cost

(I) Financial cost
Interest on convertible bonds Interest on borrowings (including those due from related parties) (Note 27) 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 6,018 1,546 38 $ 20,347 2024 $ 112,421 14,926 $ 127,347 $ 47,197 80,150 $ 127,347 $ 338 2024 $ 939,978 30,414 599 31,013 $ 970,991 $ 272,995 697,996 $ 970,991	2023
		$ - 3,190 1,339 - $ 4,529 2023
		$ 105,181 8,056 $ 113,237 $ 34,881 78,356 $ 113,237 $ 338 2023
		$ 772,184 25,512 ( 22 ) 25,490 $ 797,674 $ 236,266 561,408 $ 797,674

-56-

(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 remuneration and another 2% or less as director remunerat ion. The employee remuneration and director remuneration estimated for 2024 and 2023 were resolved by the Board of Directors in February 2025 and 2024, respectively, as follows:

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 parent company only 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 Parent Company Only Financial Statement 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).

1. 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 Income tax expenses recognized in profit or loss	2024 $ 160,400 ( 35,280 ) 125,120 79,290 $ 204,410	2023
		$ 132,545 ( 29,460 ) 103,085 15,288 $ 118,373

-57-

Reconciliation of accounting income and income tax expenses is as follows:

	follows:
(II) (III)	Net profits before tax Income tax expense derived from applying the pre-tax profit to the statutory tax rate Expense and loss not deductible from tax Tax exempt income Additional levy on undistributed earnings Adjustments for the previous year Others Income tax expenses recognized in profit or loss Income tax recognized in other Deferred income tax Current year generated - Translation of foreign operations －Re-measurements of defined benefit plans Current income tax liabilities Current income tax liabilities Income tax payable	2024 2023 $ 1,131,393 $ 768,675 $ 226,279 $ 153,735 2,409 74 ( 1,140 ) ( 16,218 ) 14,308 10,242 ( 35,280 ) ( 29,460 ) ( 2,166 ) - $ 204,410 $ 118,373 comprehensive income 2024 2023 ( $ 16,493 ) $ 3,283 ( 86 ) 43 ( $ 16,579 ) $ 3,326 31 December 2024 31 December 2023 $ 92,387 $ 126,254	2023
			$ 3,283 43 $ 3,326 31 December 2023
			$ 126,254

-58-

(IV) Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows:

Deferred income tax assets Temporary differences Allowance for inventory write- down Undistributed earnings of subsidiaries Unrealized gains on transactions with associates provisions - liability Unrealized exchange losses Allowance for bad debts Others Deferred income tax liabilities Temporary differences Unrealized foreign exchange gains Undistributed earnings of subsidiaries Deferred income tax assets Temporary differences Allowance for inventory write- down Undistributed earnings of subsidiaries Unrealized gains on transactions with associates provisions - liability Unrealized exchange losses Allowance for bad debts Others Deferred income tax liabilities Temporary differences Undistributed earnings of subsidiaries		2024	2024
	B a l a n c e - beginning of p e r i o d $ 95,585 28,137 10,188 6,422 7,243 2,900 6,059 $ 156,534 $ - 134,634 $ 134,634	Recognized in profit or loss Recognized in o t h e r comprehensiv e i n c o m e $ 87,384 $ - 4,226 ( 1,876 ) ( 1,030 ) - 4,844 - ( 7,243 ) - ( 1,437 ) - 89 ( 86 ) $ 86,833 ( $ 1,962 ) $ 7,113 $ - 159,010 14,617 $ 166,123 $ 14,617 2023		Balance - end o f y e a r
				$ 182,969 30,487 9,158 11,266 - 1,463 6,062 $ 241,405 $ 7,113 308,261 $ 315,374
	B a l a n c e - beginning of p e r i o d $ 55,341 20,679 9,230 6,512 8,263 4,159 5,863 $ 110,047 $ 76,185	Recognized in profit or loss $ 40,244 5,582 958 ( 90 ) ( 1,020 ) ( 1,259 ) 153 $ 44,568 $ 59,856	Recognized in o t h e r comprehensiv e i n c o m e $ - 1,876 - - - - 43 $ 1,919 ( $ 1,407 )	Balance - end o f y e a r
				$ 95,585 28,137 10,188 6,422 7,243 2,900 6,059 $ 156,534 $ 134,634

-59-

• (V) Deductible temporary differences of deferred tax assets unrecognized in the parent company only balance sheets

Deductible temporary differences	31 December 2024 $ 7,000	31 December 2023
		$ 7,000

• (VI) Authorization of income tax

The Company's profit-seeking business income tax filings up to the year 2022 have been approved by the taxes authority.

1. Earnings per share

Earnings per share
Basic earnings per share Diluted earnings per share Net profit in the current year Net profit of the Company Effect of potential diluted common shares: Convertible bond interest after tax Used for calculating continuing operations unit diluted earnings per share of net profit. Thousand 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 2024 80,328 1,880 317 82,525	Unit: NT$ 2023
		$ 8.10 $ 8.05 2023
		$ 650,302 - $ 650,302 2023
		80,328 - 465 80,793

-60-

Where the Company may elect to distribute employee remuneration in shares or in cash, when calculating diluted earnings per share, it is assumed that all employee remuneration is distributed in shares and the potentially dilutive common shares are included in the weighted average number of shares outstanding when deemed dilutive, to calculate diluted earnings per share. In the following year, before determining the number of shares for employee remuneration in the resolution, the calculation of diluted earnings per share will continue to consider the dilutive effect of these potential common shares.

Non-cash transactions

In the years 2024 and 2023, the Company transferred inventories for own use into property, plant and equipment amounting to 30,880 thousand and 45,731 thousand (see Note 12).

25. Capital risk management

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

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

The key management of the Company 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 Company will balance its overall capital structure by paying dividends and issuing new debts or paying existing debts.

1. Financial instruments

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

31 December 2024

31 December 2024
Financial liabilities Financial liabilities measured at amortized cost - Convertible bonds	Book value	F a i	r	v a	l u e
		L e v e l 1	L e v e l 2 $ -	L e v e l 3	T o t a l
	$1,145,654	$ -		$1,147,560	$1,147,560

-61-

• －

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

• Fair value hierarchy

31 December 2024

31 December 2024
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 Domestic TWSE-listed companies' private placement shares 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 Domestic TWSE-listed companies' private placement shares Foreign shares not traded on an exchange or OTC	L e v e l 1 $ - $ - - $ - L e v e l 1 $ 7,529 $ - - $ -	L e v e l 2 $ - $ 218,098 - $ 218,098 L e v e l 2 $ - $ 157,011 - $ 157,011	L e v e l 3 $ 2,480 $ - 60,930 $ 60,930 L e v e l 3 $ - $ - 53,125 $ 53,125	T o t a l
				$ 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.

-62-

1. 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

1. 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 Company 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 Company used for measuring the fair value is the Black-Scholes pricing model.

1. Level 3 fair value valuation techniques and inputs

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

-63-

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 [381 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:

31 December 2024 31 December 2023

	31 December 2024	31 December 2023
Liquidity discount Increase by 1% Decrease by 1% Type of financial instruments Financial assets Mandatorily measured at Fair value through profit or loss financial assets. 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)	( $ 900 ) $ 900 31 December 2024 $ 2,480 5,088,940 279,028 3,678,530	( $ 784 ) $ 784 31 December 2023
		$ 7,529 3,502,666 210,136 2,265,850

(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

-64-

receivable (including those due from related parties), other receivables (presented under other current assets), restricted 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 Company’s financial instruments mainly comprise equity investment, receivables, payables, borrowings, and lease liabilities. The financial management department of the Company provides services for each type of business and supervises and manages the financial risks incidental to the Company’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 of the Company quarterly to reduce risk exposure. The Company did not adopt hedge accounting.

1. Market risk

2. (1) Exchange rate risk

The Company is engaged in sales and purchase denominated in foreign currency, and thus is exposed to the exchange rate fluctuation risk.

For the book value of the Company’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 Company 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

-65-

the end of year by using an exchange rate that could be adjusted by a maximum of 1%. When the New Taiwan Dollar appreciates/depreciates by 1% against the USD, it will cause the profit before tax for 2024 and 2023 to change by 17,341 thousand and 13,559 thousand, respectively.

The exchange rate fluctuation mainly affects the Company’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 Company mainly comes from the Company’s floating-rate bank deposits.

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

With cash flow interest rate risk - Financial assets - Financial liabilities With fair value interest rate risk - Financial assets - Financial liabilities - Lease liabilities	31 December 2024 $ 2,301,850 400,000 2,245,540 1,308,875 80,696	31 December 2023
		$ 2,272,908 100,000 675,510 196,529 71,887

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 Company’s individual profit before tax

-66-

for 2024 and 2023 will change by 19,019 thousand and 21,729 thousand, respectively.

2. Credit risk

The credit risk means the risk of causing financial loss to the Company because the trading counterparty defaults on contractual obligations. As of the balance sheet date, the Company ’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 in the parent company only balance sheet.

According to its policy, the Company only trades with reputational counterparties and requires provision of collateral where necessary to reduce the risk of financial loss due to default. The Company exposes to the credit risk, which mainly comes from the customers who individually account for 10% or more of the Company’s total accounts receivables. Refer to Note 9 for details. 3. Liquidity risk

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

Bank loans are one of the Company’s important sources of liquidity. For the bank financing facility that the Company 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.

-67-

31 December 2024

31 December 2024
Non-derivative financial liabilities Non-interest bearing debt Floating rate Fixed rate bonds payable Lease liabilities	1–3 m ont hs $ 2,009,412 400,762 - - 4,465 $ 2,414,639	4 months–1 y e a r $ 2,531 - 42,720 - 10,569 $ 55,820	More than 1 y e a r
			$ - - 124,533 1,200,000 74,843 $ 1,399,376

More information on the maturity analysis of lease liabilities:

liabilities:
Less than y e a Lease liabilities $ 15,034 31 December 2023 Non-derivative financial liabilities Non-interest bearing debt Floating rate Lease liabilities	Less than y e a	1 r 2–5years 6–10years 11–15years 16–20years $ 29,623 $ 22,800 $ 22,420 $ - 1–3 m ont hs 4 months–1 y e a r More than 1 y e a r $ 1,998,239 $ 11,839 $ 155,772 100,332 - - 2,741 7,728 71,898 $ 2,101,312 $ 19,567 $ 227,670
	$ 15,034
			$ 155,772 - 71,898 $ 227,670

More information on the maturity analysis of lease liabilities:

Less than 1 y e a r 2 – 5 y ears 6–10 years 11–15 years 16–20 years Lease liabilities $ 10,469 $ 22,118 $ 22,800 $ 22,800 $ 4,180

-68-

• (2) Credit limit of financing facilities

31 December 2024

31 December 2023

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

27. Related Party Transactions

In addition to those disclosed in other notes, transactions between the Company and related parties are described as follows.

(I) Name and relationship of related party

Relationship with the N a m e o f r e l a t e d p a r t y C o m p a n y ACROMASS TECHNOLOGIES INC. Subsidiary NATGEM INC. Subsidiary SCIENTECH GMBH Subsidiary SCIENTECH ENGINEERING USA CORP. (SCU) Subsidiary TRANSCEND CAPITAL CORP. Subsidiary SCIENTECH ENGINEERING CORP.(SHANGHAI) (SHANGHAI) Subsidiary HUNG-LIANG HSIEH Chairperson XTEK SEMICONDUCTOR (HUANGSHI) CO., LTD. (XTEK SEMICONDUCTOR) Associates FORWARD SCIENCE PTE.LTD. Associates HONG LUN CULTRUAL CREATIVITY FUNDATION Same key management (II) Operating revenue

Presented under i t e m Goods sales revenue Services revenue Other operating revenue	Name and type of related p a r t y Subsidiary Associates Subsidiary Associates Subsidiary Associates	2024 $ 6,880 9,380 $ 16,260 $ 133 517 $ 650 $ 806 - $ 806	2023
			$ 2,655 110,443 $ 113,098 $ 33 16 $ 49 $ 2,043 79 $ 2,122

-69-

The price and payment terms for a sale transaction between the Company and related parties are determined based on the terms mutually agreed upon.

(III) Purchase

Purchase
Nameandtype of related party Subsidiary SCU Others	2024 $ 13,976 10,797 $ 24,773	2023
		$ 32,879 922 $ 33,801

The price and payment terms for a purchase transaction between the Company and related parties are determined based on the terms mutually agreed upon.

• (IV) Contract liabilities

Contract liabilities
Nameandtype of related party Associates	31 December 2024 $ 1,843	31 December 2023
		$ 1,843

• (V) Receivables due from related parties (excluding funds loaned to related parties)

parties)
Presented under i t e m Accounts receivable Other receivables (presented other current assets)	Name and type of related p a r t y Subsidiary SHANGHAI Associates XTEK SEMICONDUCTOR Subsidiary Same key management	31 December 2024 $ 5,312 - $ 5,312 $ 299 4 $ 303	31 December 2023
			$ 788 11,009 $ 11,797 $ 19 8 $ 27

No guarantee was requested for the outstanding receivables due from related parties. The balance of receivables due from related parties as of December 31, 2024 and 2023 was balance of 0 thousand and 828 thousand, respectively. The allowance for doubtful accounts on receivables due from related parties for 2024 and 2023 was (828) thousand and 451 thousand, respectively.

-70-

(VI) Payables due to related parties

Presented under i t e m Payables due to related parties (presented under notes payable And accounts) Other payables long-term accounts payable item - Guan Is a person	Name and type of related p a r t y Subsidiary SCU Others Subsidiary SHANGHAI Others Associates Subsidiary SHANGHAI	31 December 2024 $ 1,860 - $ 1,860 $ 40,302 - 40,302 376 $ 40,678 $ 120,906	31 December 2023
			$ 2,137 86 $ 2,223 $ 39,239 83 39,322 99 $ 39,421 $ 155,772

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

• (VII) Lease agreements

Presented under Name and type of related 31 December 31 December i t e m p a r t y 2024 2023 Lease liabilities Chairperson $ 58,868 $ 62,221 Presented under Name and type of related i t e m p a r t y 2024 2023 Interest expenses (presented under financial cost) Chairperson $ 1,206 $ 1,273

The lease contract between the Company and related parties is negotiated with reference to market conditions, and follows general payment terms.

• (VIII) Funds loaned to related parties

Income from interests

==> picture [412 x 27] intentionally omitted <==

-71-

Loans between the Company and subsidiaries are unsecured loans with an interest rate close to the market interest rate. Such loans are expected to be repaid in full within one year. Through an assessment, there are not expected credit losses.

(IX) Others

Others
Presented under i t e m Rental income (presented under other income) Operating expenses Interests expenses	Name and type of related p a r t y Subsidiary Same key management Subsidiary Associates Subsidiary	2024 $ 36 24 $ 60 $ 3,375 646 $ 4,021 $ 2,721	2023
			$ 36 24 $ 60 $ 3,900 1,133 $ 5,033 $ 283

(X) Remuneration to key management

Short-term employee benefits Post-employment benefit	2024 $ 75,010 928 $ 75,938	2023
		$ 55,105 850 $ 55,955

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

28. Pledged and Mortgaged Assets

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

manufacturers.
Pledged certificates of deposits (presented under other current assets)	31 December 2024 $ 3,878	31 December 2023
		$ 4,415

-72-

29. Significant Commitments

As of December 31, 2024 and 2023, the Company had unused letters of credit amounting to NT$0 thousand and NT$276 thousand for the purchase of goods, machinery and equipment, and as performance guarantees.

30. 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 Company, and the disclosed exchange rates refer to the rates at which those foreign currencies are converted into the functional currency. 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
CNY				10,723	4.478 (CNY:TWD)	48,020
EUR				3,946	34.14 (EUR:TWD)	134,718
JPY				568,880	0.2099 (JPY:TWD)	119,408
Non-monetary
items
Subsidiaries
accounted	for
using the
equity method
USD				65,658	32.785 (USD:TWD)	2,152,603
EUR				584	34.14 (EUR:TWD)	19,932
Foreign currency
l i abi l i t	ie	s
Monetary items
USD				22,480	32.785 (USD:TWD)	737,009
CNY				36,084	4.478 (CNY:TWD)	161,584
JPY				225,214	0.2099 (JPY:TWD)	47,272
EUR				1,563	34.14 (EUR:TWD)	53,369

(Continued)

-73-

(Continued)

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	Foreign currency	Foreign currency
a s s e	t	s
Monetary items
USD			$	74,629	30.705 (USD:TWD)	$ 2,291,493
CNY				40,006	4.327 (CNY:TWD)	173,107
EUR				4,685	33.98 (EUR:TWD)	159,184
JPY				455,386	0.217 (JPY:TWD)	98,819
Non-monetary
items
Subsidiaries
accounted	for
using the
equity method
USD				42,182	30.705 (USD:TWD)	1,295,184
EUR				617	33.98 (EUR:TWD)	20,971
Foreign currency
l i abi l i t	ie	s
Monetary items
USD				30,471	30.705 (USD:TWD)	935,624
CNY				45,068	4.327 (CNY:TWD)	195,011
JPY				356,942	0.217 (JPY:TWD)	77,456
EUR				1,342	33.98 (EUR:TWD)	45,607

The realized and unrealized foreign exchange gains (losses) of the Company in 2024 and 2023 were 26,286 thousand and (7,617) 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 varied.

31. Supplementary Disclosures

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

-74-

SCIENTECH CORPORATION and its subsidiaries

Loans to others

2024

2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024
Appendix Table 1														Unit: Unless otherwise specified, ForNTD 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 bot h parties. The term 'transaction amount' refers to the higher of the purch ase 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 b y the Company, either directly or indirectly, should exceed neither the amount approved by the Board of Directors nor the amo unt 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 in which the Company directly or indirectly holds 100% of the voting shares, should not exceed 80% of t he company'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 ＝ $32.785, HKD$1=$4.222, and RMB$1=$4.478 on December 31, 2024.

-75-

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.

-76-

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.

-77-

2024

SCIENTECH CORPORATION and its subsidiaries

The accumulated purchase or sale amount of the sa me marketable securities reaching 3 00 milli on or more than 20% of the paid -in capital

					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 t he eq uity met hod and exchange di fferences on translation of forei gn financial statements.

-78-

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 unt erp art yIs aRela t e dPart y				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 information shall be subject to the contract.

-79-

SCIENTECH CORPORATION and its subsidiaries

Name and Territory of Investees and Other Relevant Information

2024

2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	2024	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	O ri g i n a l i n v es t me n t a mo u n t		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 4) (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 e xchange rate of US$1=32.112 and RMB$1=4.454 during January 1, 2024 and December 31, 2024.

Note 4: The Company approved the liquidation of the subsidiary TRANSCEND CAPITAL CORP through a resolution at the Board meeti ng in January 2025.

-80-

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 )	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 )	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 ( 122,037 )	100 17.21	$ 795,279 ( 21,008 )	$ 1,644,395 416,994	$ - -
Accumulated amount of investments from Taiwan to Mainland China at the end of current p e r i o d ( N o t e 1 ) Investment amount approved by the Investment C o m m i s s i o n , M O E A ( N o t e 1 ) Limit on the amount of investments in Mainland China specified by the Investment Commission, M O E A $ 627,452(US$19,138thousand) $ 627,452(US$19,138thousand) $2,977,203
Accumulated amount of investments from Taiwan to Mainland China at the end of current p e r i o d ( N o t e 1 )			Investment amount approved by the Investment C o m m i s s i o n , M O E A ( N o t e 1 )			Limit on the amount of investments in Mainland China specified by the Investment Commission, M O E A
$ 627,452(US$19,138thousand)			$ 627,452(US$19,138thousand)			$2,977,203

• Note 1: Converted at the exchange rate of US$1 against NT$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 (SHANGHAI) LIMITED.

• 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 XT EK 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. Realized gross profit during 1 January 2024 and 31 December 2024 was NT$5,154 thousand.

-81-

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 t he 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.

-82-

§ SCHEDULE OF MAJOR ACCOUNTS §

I T E M Schedule of Assets, Liabilities, and Equity Items Schedule of Cash and Cash Equivalents Schedule of Notes Receivables and Accounts Receivables Schedule of Inventories Schedule of Investments Accounted for Using Equity Method Schedule of Changes in Property, Plant, and Equipment Schedule of Notes Payables and Accounts Payables Schedule of Short-term Borrowings Schedule of Contract Liability Schedule of Other Payables Bonds Payable Schedule Schedule of Profit or Loss Items Schedule of Net Operating Income Schedule of Operating Costs Schedule of Operating Expenses Finance costs schedule Summary Table by Function of Employee Benefits, Depreciation, and Amortization Incurred in the Year

N O . / I N D E X .

Table 1 Table 2 Table 3 Table 4 Note 12 Table 5 Table 6 Table 7 Note 17 Table 8 Table 9 Table 10 Table 11 Note 21 Table 12

-83-

SCIENTECH CORPORATION

Schedule of Cash and Cash Equivalents

31 December 2024

Table 1

Unit: Unless otherwise specified , as NTD Thousand

I t e m Cash Cash on hand and working capital Bank check and demand deposit(Note 1) Cash equivalents Bank time deposit whose initial maturity date will be due within 3 months (Note 2)	M a t u r i t y D a t e 2025.1.4-2025.1.30	Annual Interest R a t e 1.55%～4.80%	A m o u n t
			$ 305 2,301,850 2,302,155 2,242,540 $ 4,544,695

• Note 1:Including JPY565,870 thousand, RMB10,723 thousand, USD21,643 thousand, and EUR3,946 thousand, which were converted at the exchange ＝ ＝ ＝

• rates of JPY$1 $0.2099, RMB$1 $4.478, US$1 $32.785, and EUR$1 ＝ $34.14, respectively.

• Note 2: Including USD 44,000 thousand, which were converted at the exchange ＝

• rate of US$1 $32.785.

-84-

SCIENTECH CORPORATION

Schedule of Notes Receivables and Accounts Receivables 31 December 2024

Table 2

Unit: NT$ thousand

C u s t o m e r n a m e Notes receivable (Note) Accounts receivable Company A Company B Company C Company D Company E Others (Note) Receivables due from related parties Less: allowance for doubtful debts	A m o u n t
	$ 2,260 74,454 57,295 32,647 27,884 27,707 301,244 521,231 5,312 12,501 $ 516,302

Note: The balance of each individual customer did not exceed 5% of this account.

-85-

SCIENTECH CORPORATION

Schedule of Inventories

31 December 2024

Table 3

Unit: NT$ thousand

I t e m Products Finished-goods Work-in-process Raw materials Less: Allowance for devaluation loss (Note)	A m o	u n t
	C o s t $ 7,882,224 650,511 838,515 790,062 10,161,312 914,846 $ 9,246,466	Net realizable value
		$ 9,254,513 771,037 1,114,469 1,253,152 $ 12,393,171

Note: The allowance for devaluation loss covers the allowance for products in the amount of NT$637,088 thousand, for finished goods in the amount of NT$36,229 thousand, for work in progress in the amount of NT$103,227 thousand, and for raw materials in the amount of NT$138,302 thousand.

-86-

Unit: NT$ thousand

SCIENTECH CORPORATION

Schedule of Investments Accounted for Using Equity Method

2024

Table 4

I n v e s t e e Investment in subsidiary SCIENTECH GMBH TRANSCEND CAPITAL CORP. SCIENTECH GMBH ACROMASS TECHNOLOGIES INC. SCIENTECH MATERIALS CORPORATION NATGEM INC. Investment in associates YAYA TECHNOLOGIES CORPORATION RENORIGIN INNOVATION INSTITUTE CO., LTD. FORWARD SCIENCE PTE. LTD. Investments accounted for using equity method	Balance - beginningofperiod S h a r e s A m o u n t 5,540,000 $ 827,309 14,290,000 416,932 - 20,971 27,000,000 3,317 1,400,000 3,168 800,000 79 1,271,776 - - 1,121,000 6,514 500,000 - 6,514 $ 1,278,290	New additions in	the currentyear A m o u n t $ - - - - - - - 215,133 - - 215,133 $ 215,133	D i s p o s e o f i n v e s t m e n t $ - - - - ( 3,168 ) - ( 3,168 ) - - - - ( $ 3,168 )	Accounted for u s i n g e q u i t y m e t h o d R e c o g n i z e d s u b s i d i a r i e s And associates Capital surplus $ 796,205 ( 21,134 ) ( 1,157 ) 40 - 528 774,482 ( 447 ) ( 1,262 ) - ( 1,709 ) $ 772,773	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 $ 44,023 38,325 118 - - - 82,466 - - - - $ 82,466	O t h e r s $ 9,383 ( 4,229 ) - - - - 5,154 - - - - $ 5,154	B a l a n c e -	e n d i n g o	f p e r i o d A m o u n t $ 1,676,920 429,894 19,932 3,357 - 607 2,130,710 214,686 5,252 - 219,938 $ 2,350,648	R e m a r k s
	S h a r e s 5,540,000 14,290,000 - 27,000,000 1,400,000 800,000 - 1,121,000 500,000	S h a r e s - - - - - - 6,722,905 - -						S h a r e s 5,540,000 14,290,000 - 27,000,000 1,400,000 800,000 6,722,905 1,121,000 500,000	Shareholding % 100 100 100 100 100 100 40 20 21
											(Note 2) (Note 2) (Note 1) (Note 3) (Note 1) (Note 1)

Note 1: It was calculated based on financial statements in the same period that were not audited by CPAs.

Note 2: Others are the realized gains from downstream transactions of the current year and capital surplus - adjustments for changes in percentage of ownership interest in subsidiaries. Note 3: The Company newly acquired YAYA TECHNOLOGIES CORPORATION for 215,133 thousand (6,722,905 shares) in Decem ber 2024.

-87-

SCIENTECH CORPORATION

Schedule of Notes Payables and Accounts Payables 31 December 2024

Table 5

Unit: NT$ thousand

N a m e o f m a n u f a c t u r e r notes payable Accounts payable Company A Company B Company C Company D Company E Others (Note) Payables due to related parties (Note) Total	A m o u n t
	$ 97 139,470 108,726 84,728 84,422 62,454 724,666 1,204,466 1,860 $ 1,206,423

Note: The balance of each individual customer did not exceed 5% of this account.

-88-

SCIENTECH CORPORATION

Schedule of Short-term Borrowings

31 December 2024

Table 6

Unit: NT$ thousand

N a m e Bank loans against a letter of credit Bank Sinopac Company Limited CTBC Bank Bank credit loans Bank Sinopac Company Limited DBS Bank (Taiwan) Limited	Borrowing period 2024.9.27-2025.3.26 2024.10.4-2025.1.3	B a l a n c e $ 163,221 - $ 163,221 $ 200,000 200,000 $ 400,000	Credit limit of f i n a n c i n g f a c i l i t i e s $ 163,221 680,000 $ 843,221 $ 436,779 300,000 $ 736,779	Pledged or collateralized None None None None	R e m a r k s
					Note 2 Note 3 Note 1 and 2 Note 1

• Note 1: The interest rate range is 1.525% to 1.58%.

• Note 2: The mid-term loans, loans against a letter of credit, bid bond guarantees, and performance bond limits of Bank Sinopac Company Limited are accumulative, amounting to NT$600,000 thousand.

• Note 3: The credit limit of CTBC Bank credit loans and CTBC Bank loans against a letter of credit is accumulative, and amounted to NT$680,000 thousa nd.

-89-

SCIENTECH CORPORATION

Schedule of Contract Liability

31 December 2024

Table 7 Unit: NT$ thousand

C u s t o m e r n a m e A m o u n t Company F $ 587,580 Others (Note) 10,245,131 Contract liabilities $ 10,832,711

Note: The balance of each individual customer did not exceed 5% of this account.

-90-

SCIENTECH CORPORATION

Bonds Payable Schedule 31 December 2024

Table 8

Unit: NT$ thousand

B o n d n a m e Domestic corporate bonds 2024 First Unsecured Convertible Bonds 2024 second unsecured convertible bonds	T r u s t e e Taipei Fubon Commercial Bank Co., Ltd. Taipei Fubon Commercial Bank Co., Ltd.	I s s u e d a t e 2024/06/07 2024/06/19	Interest Payment Date Issued at face value, with a coupon rate of 0% Issued at 117.07% of the face value, with a coupon rate of 0%	Interest rate ( % ) - -	A	m o	u	n	t B o o k v a l u e $ 190,857 954,797 $ 1,145,654	R e p a y m e n t m e t h o d Except for conversion into the Company's common shares according to the conversion terms or early redemption by the Company, the principal is repaid in full at maturity. Except for conversion into the Company's common shares according to the conversion terms or early redemption by the Company, the principal is repaid in full at maturity.	C o l l a t e r a l s i t u a t i o n
					Total issuance a m o u n t $ 200,000 1,000,000 $ 1,200,000	Amount repaid $ - - $ -	Balance - end o f y e a r $ 200,000 1,000,000 $ 1,200,000	U n a m o r t i z e d s u r p l u s (Discount) Price ( $ 9,143 ) ( 45,203 ) ( $ 54,346 )
											None None

-91-

SCIENTECH CORPORATION

Schedule of Net Operating Income

2024

Table 9

Unit: NT$ thousand

N a m e Manufacturing Agent Commission Maintenance Others	A m o u n t 1,756,796 22,654	A m o u n t
		$ 3,328,789 2,280,552 84,280 76,137 23,949 $ 5,793,707

-92-

SCIENTECH CORPORATION

Schedule of Operating Costs

2024

Table 10

Unit: NT$ thousand

N a m e Cost to manufacture and cost of goods sold Beginning of year raw supplies Add: Current year purchase Transferred to work in progress finished goods transferred in Others Less: End of year supplies Transferred goods Research and development requisition, etc. Direct raw supplies consumption Direct labor Manufacturing overheads Cost Add: Beginning of year work in progress Less: End of year work in progress Transferred to raw materials Cost of finished-goods Add: beginning of year finished goods Others Decrease: End of year finished goods Transferred to raw materials Others Cost of goods sold Goods - beginning of period Add: Purchases in the current year Transferred supplies to products Less: End of year goods Others Add: Loss on inventories devaluation Add: Retirement of inventories

A m o u n t

$ 559,282 2,103,887 1,612,604 1,323,990 155,530 790,062 48,785 170,739 4,745,707 210,607 483,044 5,439,358 789,701 838,515 1,612,604 3,777,940 321,366 10,586 650,511 1,323,990 50,257 2,085,134 6,126,707 3,574,718 48,785 7,882,224 188,518 1,679,468 436,917 3,474 $ 4,204,993

-93-

SCIENTECH CORPORATION

Schedule of Operating Expenses

2024

Table 11

Unit: NT$ thousand

I t e m Salary expenses Commission Depreciation Service fees Material cost Insurance premium Freight charges Others (Note)	M a r k e t i n g e x p e n s e s $ 310,560 168,133 21,591 43,142 18,572 29,466 41,330 184,767 $ 817,561	General and administrative e x p e n s e s $ 100,165 - 6,009 8,178 - 6,989 289 32,761 $ 154,391	R&Dexpenses $ 199,531 - 52,550 5,116 34,685 16,250 408 68,147 $ 376,687	Expected credit I m p a i r m e n t l o s s $ - - - - - - - ( 7,559 ) ( $ 7,559 )	T o t a l
					$ 610,256 168,133 80,150 56,436 53,257 52,705 42,027 278,116 $ 1,341,080

Note: No amount individually exceeds 5% of this account.

-94-

SCIENTECH CORPORATION

Summary Table by Function of Employee Benefits, Depreciation, and Amortization Incurred in the Year

2024 and 2023

Table 12

Unit: NT$ thousand

Employee benefit expenses Salary expenses Labor insurance and health insurance expenses Pension expenses Directors’remuneration Other employee benefit expenses Depreciation Amortization expense		2024	T o t a l $ 818,026 64,375 31,013 15,230 42,347 $ 970,991 $ 127,347 $ 338		2023
	Attr ibu tab le to operating costs $ 223,000 22,680 6,594 - 20,721 $ 272,995 $ 47,197 $ -	Attr ib utab le to operating expenses $ 595,026 41,695 24,419 15,230 21,626 $ 697,996 $ 80,150 $ 338		Attr ibu tab le to operating costs $ 193,925 20,224 5,737 - 16,380 $ 236,266 $ 34,881 $ -	Attr ib utab le to operating expenses $ 478,332 36,036 19,753 12,010 15,277 $ 561,408 $ 78,356 $ 338	T o t a l
						$ 672,257 56,260 25,490 12,010 31,657 $ 797,674 $ 113,237 $ 338

• Note 1: The number of the Company’s employees in 2024 and 2023 is 739 and 659, respectively, of whom the number of directors not concurrently serving as an emp loyee is both 6.

• Note 2: (1) The average employee benefit expenses in 2024 and 2023 were NT$1,304 thousand and NT$1,203 thousand, respectively.

• (2) The average employee salary expenses in 2024 and 2023 were 1,116 thousand and 1,029 thousand, respectively.

• (3) The extent of average employee salary adjustment was 8.45%.

• Note 3: In 2024 and 2023, the Company did not have supervisors, so there is no related remuneration for supervisors.

• Note 4: The Company’s independent directors are entitled to a fixed amount of remuneration. Other directors are entitled to no compensation other than the reimbursement of transportation expenses required for attending a Board meeting. In addition, according to Article 20 of the Company ’s Articles of Incorporation, no less than 2% of the ’ ’

• annual earnings may be allocated as directors remuneration. Such remuneration is firstly proposed to the Remuneration Committee in accordance with the Company s remuneration distribution principles; if the committee gives the approval, such remuneration proposal is then summited to the Board of Directors and, if approved, implemented.

• Note 5: The salary structure of the Company ’s employees and managers mainly comprises base salary, job pay differentials, bonus, and monetary perks. The salary adjustment, year-end bonus, and bonus distribution therefor are determined based on t he “ Employee Promotion Regulations ” and “ Employee Bonus Distribution Principles ” , and are firstly proposed by the management executives with consideration given to personal performance and the Company ’s operational performance, then approved by the executives with the authority, then submitted to the Remuneration Committee for consideration, and, if approved, implemented.

-95-