SDI - Audit Report / Information 2024

SDI Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2024 and 2023 and Independent Auditors’ Report

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國富浩華聯合會計師事務所

Crowe ( TW ) CPAs 40308 台中市西區 台 台灣大道二段 285 號 15 樓 15F . , No . 285, Sec . 2, Taiwan Blvd . , West Dist . , Taichung City 40308, Taiwan Tel + 886 4 36005588 Fax + 886 4 36005577 www . crowe . tw

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders SDI Corporation

Opinion

We have audited the accompanying parent company only financial statements of SDI Corporation (“the Company”), which comprise the parent company only balance sheets as of December 31, 2024 and 2023, and the parent company only statements of comprehensive income, changes in equity, and cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the accompanying parent company only financial position of the Company as of December 31, 2024 and 2023, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

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Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 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 matters.

Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2024 are stated as follows:

1 `.` Valuation of Inventory Impairment

Description

As of December 31, 2024, inventory accounted for 23% of the Company’s total assets. The value of inventory is affected by the volatility of market demand and ever-changing technology, which could make inventory sluggish and obsolete and impair the value of inventory. The allocation of inventory cost elements and estimations of the net realizable value of inventory are subject to management’s subjective judgment. Consequently, the valuation of inventories has been identified as a key audit matter.

How our audit addressed the matter

Our main audit procedures include testing of details, verifying the cost of raw materials, labor and manufacturing costs of inventory and comparing the most recent selling prices to the carrying amounts to ensure that the inventory is measured at the lower of cost and net realizable value; obtaining and validating the Company’s details of declines in the inventory valuation and inventory aging report and analyzing the changes in inventory aging; assessing the reasonableness of policies relating to the provision of allowance for inventory valuation losses; obtaining data on the quantities of inventory recorded at the end of the year and the data of annual inventory physical count to verify the existence and completeness of the inventory; inspecting the condition of the inventory to assess the appropriateness of the loss allowance for recognized inventory obsolete and spoiled through observing the year-end inventory counts.

2 `.` Revenue Recognition

Description

Revenue is used by investors and the Company’s management as a key indicator for evaluating the Company’s financial or operational performance. As the Company sells its goods to Taiwan

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, Mainland China, Malaysia, United States and other areas, overseas warehouses are set up in response to the needs of certain international customers. The Company recognizes revenue per the various sales terms in each individual contract with customers. Accordingly, significant judgement is required in determining the timing of control of a good transfer to the customer. Therefore, revenue recognition has been identified as a key audit matter. How our audit addressed the matter

Our main audit procedures include assessing the appropriateness of accounting policies for revenue recognition, testing the effectiveness of the internal controls relevant to revenue recognition, including sampling and testing the validity of sales revenue; evaluating whether any irregularity exists in the transactions with the top ten sales customers and analyzing the reasonableness of the turnover days of accounts receivable; selecting sample transactions after a few days or before the inventory cutoff date and examining the related documents to ensure that revenue is recognized in the appropriate period, and reviewing if there were significant sales return in the subsequent period.

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 is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including members of the Audit Committee are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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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 auditor’ 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 Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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

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 evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the 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 auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Shao, Chao Pin and Lin, Ming Shou.

CROWE (TW) CPAs

Taichung, Taiwan (Republic of China)

February 26, 2025

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Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally applied in the Republic of China.

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

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SDI Corporation

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

ASSETS	NOTES	December 31, 2024	December 31, 2024	December 31, 2023	December 31, 2023
		Amount $ 692,195 34,011 1,061,271 219,708 14,368 10,106 2,332,881 39,066 6,600 391 4,410,597 22,809 2,517,173 3,359,157 139,186 31,548 54,939 88,478 28,403 6,241,693 $ 10,652,290 113,730 2,779 586,930 130,383 453,195 4,036 105,538 11,431 297,387 16,597 1,722,006 1,417,785 302,876 94,743 56,969 2,685 1,875,058 3,597,064 1,821,403 486,117 1,154,698 137,810 3,519,337 (64,139) 7,055,226 $ 10,652,290	`％`	Amount $ 450,372 35,065 1,111,008 175,516 11,998 9,653 2,509,164 67,232 6,600 509 4,377,117 23,938 2,372,859 3,397,620 152,253 34,342 51,472 82,778 46,800 6,162,062 $ 10,539,179 101,368 5,093 638,281 122,724 494,713 2,020 200,603 11,123 421,323 19,630 2,016,878 1,280,490 284,469 104,256 80,192 5,665 1,755,072 3,771,950 1,821,403 485,960 1,080,316 116,256 3,401,104 (137,810) 6,767,229 $ 10,539,179	`％`
CURRENT ASSETS Cash and cash equivalents Notes receivable, net Accounts receivable, net Accounts receivable - related parties Other receivables Other receivables - related parties Inventories, net Prepayments Other financial assets - current Other current assets Total current assets NONCURRENT ASSETS Financial assets at fair value through other comprehensive income - noncurrent Investments accounted for using equity method Property, plant and equipment Right-of-use assets Investment properties Intangible assets Deferred income tax assets Other noncurrent assets Total noncurrent assets TOTAL LIABILITIES AND EQUITY	6(1) 6(2) 6(3) 7 7 6(4) 6(5) 6(6) 6(7) 6(8) 6(9) 6(10) 6(11) 6(12) 6(28) 6(13) 6(23) 6(14) 7 6(15) 7 6(28) 6(10) 6(16) 6(17) 6(16) 6(28) 6(10) 6(18) 6(17) 6(19) 6(20) 6(21) 6(22)		6 - 10 2 - - 23 - - -		4 - 11 2 - - 24 1 - -
			41		42
			- 24 32 1 - 1 1 -		- 23 33 1 - - 1 -
			59		58
			100		100
			1 - 6 1 4 - 1 - 3 -		1 - 6 1 5 - 2 - 4 -
CURRENT LIABILITIES Contract liabilities Notes payable Accounts payable Accounts payable - related parties Other payables Other payables - related parties Current income tax liabilities Lease liabilities - current Long-term liabilities - current portion Other current liabilities Total current liabilities NONCURRENT LIABILITIES Long term loans Deferred income tax liabilities Lease liabilities - noncurrent Net defined benefit liability - noncurrent Other noncurrent liabilities Total noncurrent liabilities Total liabilities EQUITIES Common stocks Capital surplus Retained earnings Legal capital reserve Special capital reserve Unappropriated earnings Others Total equity TOTAL
			16		19
			13 3 1 1 -		12 3 1 1 -
			18		17
			34		36
			17 5 11 1 33 (1)		17 5 10 1 32 (1)
			66		64
			100		100

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

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SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Except Earning Per Share)

NOTES	2024		2023
	Amount $ 8,130,049 (6,933,812) 1,196,237 (33,333) 37,632 1,200,536 (206,588) (206,802) (183,479) (596,869) 603,667 6,901 43,512 80,333 (26,825) 100,055 203,976 807,643 (132,546) 675,097 14,341 (1,129) 1,163 (2,405) 92,921 (18,584) 86,307 $ 761,404 $ 3.71 $ 3.70	`％`	Amount $ 8,409,808 (7,017,011) 1,392,797 (37,632) 37,638 1,392,803 (196,109) (232,608) (178,272) (606,989) 785,814 9,606 44,319 29,753 (26,163) 92,517 150,032 935,846 (193,088) 742,758 2,013 2,915 (546) (972) (29,874) 5,975 (20,489) $ 722,269 $ 4.08 $ 4.07	`％`
6(23)`、`7 6(24) 6(24) 6(17)`、`6(25) 6(26) 6(27) 6(28) 6(29) 6(28) 6(28) 6(30)		100 (85)		100 (83)
		15 - -		17 - -
		15		17
		(3) (2) (2)		(3) (3) (2)
		(7)		(8)
		8		9
		- - 1 - 1		- 1 - - 1
		2		2
		10 (2)		11 (2)
		8		9
		- - - - 1 -		- - - - - -
		1		-
		9		9

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

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SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

Capital Stocks		Capital Surplus				Retained Earnings	Retained Earnings	Retained Earnings				Others			Total Equity	Total Equity
Common Stocks				Legal Capital Reserve		Special Capital Reserve		Unappropriated Earnings		Foreign Currency Translation Reserve		Unrealized Gain (loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total
$ 1,821,403 - - - - - -		485,797 - - - 163 - -		983,960 - 96,356 - - - -		139,763 (23,507) - - - - -		3,312,978 23,507 (96,356) (582,848) - 742,758 1,065		(133,085) - - - - - (23,899)		16,829 - - - - - 2,345	$ (116,256) - - - - - (21,554) (137,810) - - - - - 73,671		$ 6,627,645 - - (582,848) 163 742,758 (20,489) 6,767,229 - - (473,564) 157 675,097 86,307
1,821,403 - - - - - -		485,960 - - - 157 - -		1,080,316 - 74,382 - - - -		116,256 21,554 - - - - -		3,401,104 (21,554) (74,382) (473,564) - 675,097 12,636		(156,984) - - - - - 74,337		19,174 - - - - - (666)		(137,810) - - - - - 73,671		6,767,229 - - (473,564) 157 675,097 86,307
$ 1,821,403	$ 486,117		$ 1,154,698		$ 137,810		$ 3,519,337		$ (82,647)		$ 18,508		$ (64,139)		$ 7,055,226

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

SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

	2024		2023
$	807,643 419,729 14,959 (4,843) 26,825 (6,901) (1,476) (100,055) (1,180) 9,676 - 1,054 49,737 (44,192) (425) (453) 269,684 28,166 (1,822) 12,362 (2,019) (51,351) 7,659 (33,864) 2,016 (1,989) (8,882) (343)	$	935,846 391,764 13,201 (822) 26,163 (9,606) (1,269) (92,517) (3,664) (7,000) 57 (9,424) 264,166 (35,634) (970) (863) 176,064 (22,498) 1,543 6,292 1,163 (14,874) (33,176) (52,163) (718) (3,039) (8,627) (2,442)
	1,389,715		1,516,953
	6,896 56,144 (26,458) (235,892)		9,595 66,069 (27,109) (237,695)
	1,190,405		1,327,813
	(456,612) 1,180 1,243 (18,426)		(542,897) 3,708 485 (9,666)
	(472,615)		(548,370)

(Continued)

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SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt Repayment of long-term debt Repayments of the principal portion of lease liabilities Cash dividends paid Net cash used in financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR	2024	2023
	$ 2,411,000 (2,401,323) (12,080) (473,564)	$ 1,871,000 (2,315,855) (14,825) (582,848)
	(475,967)	(1,042,528)
	241,823 450,372	(263,085) 713,457
	$ 692,195	$ 450,372

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

(Concluded)

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SDI Corporation

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. ORGANIZATION AND OPERATIONS

SDI Corporation (the” Company”) was incorporated on October 17, 1967. The Company started as a manufacture of in stationery products, then the Company repetitively expanded and diversified into producing lead frames and molds.

Since April 25, 1996, the Company’s shares have been listed on the Taiwan Stock Exchange (TWSE).

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying parent company only financial statements were approved and authorized for issue by the Board of Directors on February 26, 2025.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

3.1 The adoption of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC):

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

Effective Date New, Revised or Amended Standards and Interpretations Issued by IASB Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback” January 1, 2024 (Note) Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2024 (Note) Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” January 1, 2024 (Note) Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements” January 1, 2024 (Note)

Note ： The Group shall apply the amendments for annual reporting periods beginning on or after January 1, 2024.

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(1) Amendments to IFRS 16 “Lease liability in a sale and leaseback“ The amendment clarifies that in a sale and leaseback transaction, if the transfer of an asset qualifies as a sale under IFRS 15, the lease liability incurred by the seller-lessee as a result of the leaseback should be accounted for in accordance with IFRS 16. Furthermore, if variable lease payments that are not based on an index or a rate are involved, the seller-lessee should still determine and recognize the lease liability arising from such variable payments in a manner that precludes the recognition of gains and losses related to the retained right-of-use asset. Any difference between the actual lease payments made subsequently and the reduction in the carrying amount of the lease liability should be recognized in profit or loss.
(2) Amendments to IAS 1 “Classification of Liabilities as Current or Non-current“ The amendments clarify that when an entity determines whether a liability is classified as non-current, it should assess whether it has the right to defer the settlement for at least twelve months after the reporting period. If the entity has that right at the end of the reporting period, that liability must be classified as non-current regardless of whether the entity expects to exercise the right. If the entity must meet certain conditions to have the right to defer the settlement of a liability, the entity must have met those conditions as of the end of the reporting period to classify the liability as noncurrent, even if the lender assesses the entity’s compliance at a later date.

The aforementioned settlement refers to the transfer of cash, other economic resources, or the entity’s equity instruments to the counterparty to extinguish the liability. However, if the terms of the liability provide the counterparty with an option to settle the liability using the entity’s equity instruments, and this option is separately recognized in equity in accordance with IAS 32 “Financial Instruments: Presentation”, then such terms do not affect the classification of the liability.

(3) Amendment to IAS 1 “Non-current Liabilities with Covenants“
This amendment further clarifies that only contractual terms that must be complied with before the end of the reporting period will affect the classification of a liability as of that date. Contractual terms that must be complied with within 12 months after the reporting period do not affect the classification of liabilities at the reporting date. However, if a liability is classified as non-current but may need to be repaid within 12 months after the reporting period due to potential non-compliance, the relevant facts and circumstances should be disclosed in the notes.
(4) Amendments to IAS 7 and IFRS 7 “Supplier finance arrangements“ Supplier financing arrangements involve one or more financing providers making payments to suppliers on behalf of an entity, with the entity agreeing to repay the financing providers on the payment date agreed upon with the suppliers or at a later date. The amendments to IAS 7 require an entity to disclose information about its supplier financing arrangements to enable users of financial statements to assess the impact of these arrangements on the entity's liabilities, cash flows, and exposure to

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liquidity risk. The amendments to IFRS 7 incorporate into its application guidance that, when disclosing how an entity manages the liquidity risk of its financial liabilities, it may also consider whether it has obtained or can obtain financing facilities through supplier financing arrangements and whether these arrangements may lead to a concentration of liquidity risk.

Based on the Company’s assessment, the application of the New IFRSs above will not have any signification impact on the Company’s financial position and financial performance.

3.2 Effect of new issuances and amendments to IFRSs endorsed by the FSC but not yet adopted by the Company

Effective Date Announced New, Revised or Amended Standards and Interpretations by IASB

Amendments to IAS 21 "Lack of Exchangeability" January 1, 2025

Based on the Company’s assessment, the application of the New IFRSs above will not have any signification impact on the Group’s financial position and financial performance.

3.3 The IFRSs issued by the IASB but not yet endorsed by the FSC:

A summary of the new standards and amendments issued by the IASB but not yet endorsed by the FSC is set out below:

New, Revised or Amended Standards and Interpretations Effective Date
Issued by IASB

Amendments to IFRS 9 and IFRS 7 “Amendments to the
classification and measurement of financial instruments”
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing
Nature dependent Electricity”
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”
IFRS 17 “Insurance Contracts”
Amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 17 “Initial Application of IFRS 17 and
IFRS 9 - Comparative Information”
IFRS 18 “Presentation and Disclosure in Financial Statements”
IFRS 19 “Subsidiaries without Public Accountability：Disclosures”
Annual Improvements to IFRS Accounting Standards—Volume 11 January 1, 2026

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

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the classification and measurement of financial instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature dependent Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 “Insurance Contracts” Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information” IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Subsidiaries without Public Accountability`：`Disclosures” Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027 January 1, 2026

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Except for the following, the Company has assessed that the standards and interpretations have no significant impact on the financial position and financial performance of the Company.

(1) Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"

The amendments are as follows:

(i) Clarifies the recognition and derecognition dates of certain financial assets and liabilities and introduces a new exception for the derecognition of a financial liability (or part of a financial liability) settled through an electronic payment system. Under this exception, an entity is permitted to derecognize a financial liability before the settlement date if, and only if, the entity has initiated a payment instruction and the following conditions are met:
(a) The entity does not have the practical ability to revoke, stop, or cancel the payment instruction;
(b) The entity no longer has the practical ability to access the cash used for settlement as a result of the payment instruction; and
(c) The settlement risk associated with the electronic payment system is not significant.
(ii)Clarifies and provides additional guidance on assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion. The scope includes contractual terms that may alter cash flows based on contingent events (e.g., interest rates linked to ESG targets), instruments with nonrecourse features, and contractually linked instruments.
(iii)Introduce new disclosure requirements for certain instruments with contractual terms that may alter cash flows (e.g., instruments with features linked to the achievement of environmental, social, and governance (ESG) targets). These disclosures include a qualitative description of the nature of the contingent event, quantitative information on the potential changes in contractual cash flows resulting from these contractual terms, and the gross carrying amount of financial assets and the amortized cost of financial liabilities subject to these contractual terms.
(iv)Update the disclosure requirements for equity instruments designated at fair value through other comprehensive income (FVTOCI). The entity shall disclose the fair value of each class of investment but is no longer required to disclose the fair value of each individual investment. Additionally, the amendments require the entity to disclose the fair value gains or losses recognized in other comprehensive income during the reporting period, separately presenting the fair value gains or losses related to investments derecognized during the reporting period; the fair value gains or losses related to investments held at the end of the reporting period; and

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any transfers of cumulative gains or losses within equity during the reporting period related to investments derecognized during that period.

(2) Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

The amendments apply to contracts that expose an entity to variability in electricity generation

due to uncontrollable natural conditions (such as the weather). These amendments include:

(i) Clarifying the application of the ‘own use’ requirements for contracts to buy or sell naturedependent electricity:

When a contract requires an entity to purchase and take delivery of electricity as it is generated, and the design and operation of the electricity market in which the contract is transacted require the entity to sell any unused electricity within a specified time frame, the entity shall consider reasonable and supportable information regarding its past, current, and expected future electricity transactions within a reasonable period not exceeding 12 months.

An entity applying these amendments to own-use contracts involving nature-dependent electricity shall disclose the following:

A. The variability in the underlying amount of electricity and the risk that the entity may be required to purchase electricity during a delivery interval in which it cannot use the electricity;
B. Unrecognized contractual commitments, including the expected future cash flows from purchasing electricity under these contracts; and
C. The impact of these contracts on the entity’s financial performance for the reporting period.
(ii) Clarifying the application of hedge accounting for contracts involving nature-dependent electricity as hedging instruments:

An entity is permitted to designate as the hedged item a variable nominal amount of forecast electricity transactions that aligns with the variable amount of nature-dependent electricity expected to be delivered by the generation facility referenced in the hedging instrument. Additionally, when a contract involving nature-dependent electricity is designated as a hedging instrument in a cash flow hedge relationship, and its cash flows are conditional on the occurrence of a forecast transaction, that forecast transaction is presumed to be highly probable.

For entities that designate contracts involving nature-dependent electricity as hedging instruments, the terms and conditions of such hedging instruments shall be disclosed by risk category in accordance with IFRS 7.

(3) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture”

The amendments address an existing inconsistency between IFRS 10 and IAS 28. The recognition of a gain or loss arising from the sale or contribution of assets between an

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investor and its associate or joint venture depends on the nature of the assets transferred:

(i) If the assets sold or contributed constitute a business, the full gain or loss is recognized ；
(ii) If the assets sold or contributed do not constitute a business, the gain or loss is recognized only to the extent of the investor’s interest that is not attributable to related parties in the associate or joint venture..
(4) IFRS 18 “Presentation and Disclosure in Financial Statements”
IFRS 18, Presentation and Disclosure in Financial Statements, replaces IAS 1. The standard introduces a structured format for the statement of profit or loss, disclosure requirements for management-defined performance measures, and enhanced principles on aggregation and disaggregation applicable to the primary financial statements and notes.
(5) IFRS 19 “Subsidiaries without Public Accountability ： Disclosure”
The standard allows eligible subsidiaries to apply IFRSs with reduced disclosure requirements..

As of the issuance date of these consolidated financial statements, the Company is still evaluating the impact of the above standards and interpretations on its financial position and financial performance. The related impact will be disclosed upon completion of the assessment..

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The following significant accounting policies are used in the preparation of the accompanying parent company only financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

4.1 Statement of Compliance

The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

4.2 Basis of Preparation

A. Except for the following significant items, the accompanying parent company only financial statements have been prepared on the historical cost basis:
(a) Financial assets and liabilities at fair value through profit or loss (including derivative financial instruments).
(b) Financial assets and liabilities at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less the present value of defined benefit obligation.
B. When preparing the parent company only financial statements, the Company

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accounts for subsidiaries by using the equity method. In order to align with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and share of other comprehensive income of subsidiaries in the parent company only financial statements.

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

4.3 Foreign Currencies

A. Items included in the parent company only financial statements are measured using the functional currency of the Company. The financial statements are presented in New Taiwan Dollars, which is the Company's functional currency.
B. In preparing the parent company only financial statements, transactions in currencies other than the Company’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing on that date. Such exchange differences are recognized in profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Exchange differences arising in the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising in the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange difference are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are translated using the exchange rate at the date of the transaction and are not retranslated.
C. When preparing the parent company only financial statements, the assets and liabilities of the Company’s foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity.

4.4 Classification of Current and Noncurrent Assets and Liabilities

A. Assets that meet one of the following criteria are classified as current assets:
(a) Assets that are expected to be realized, or are intended to be sold or consumed

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within the normal operating cycle;

(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realized within twelve months from the end of reporting period.
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those intended to be exchanged or used to settle liabilities more than twelve months after the end of reporting period.

The Company classifies all assets that do not meet the above criteria as non-current.

B. Liabilities that meet one of the following criteria are classified as current liabilities:
(a) Liabilities that are expected to be settled within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within twelve months from the end of reporting period, even if an agreement to refinance, or to reschedule payments on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and
(d) Liabilities for which there is no substantive right at the balance sheet date to defer settlement for at least twelve months after the balance sheet date. The classification of a liability is not affected if its terms allow the counterparty to settle it by issuing equity instruments at their discretion.
The Company classifies all liabilities that do not meet the above conditions as noncurrent.

4.5 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (including the original maturity of the time deposits within three months).

4.6 Financial Instruments

Financial assets and liabilities shall be recognized when the Company becomes a party of the contractual provisions of the instruments.

Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

A. Financial assets

(a) Measurement categories

All regular way purchases or sales of financial assets are recognized and derecognized using trade date accounting.

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Financial assets are classified as financial assets at FVTPL, financial assets at amortized cost and investment in equity instruments at FVTOCI.

i. Financial assets at FVTPL
Financial assets at FVTPL include financial assets mandatorily classified as at FVTPL and financial assets designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments that are not designated as at fair value through other comprehensive income (FVTOCI) and debt instruments that do not meet the criteria for being classified as at amortized cost or as at FVTOCI.

Financial assets at FVTPL are stated at fair value, any dividends earned recognized as other income, and interest earned and gains or losses arising from remeasurement recognized in other gains or losses. Fair value is determined in the manner described in Note 12.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

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

Subsequent to initial recognition, financial assets at amortized cost are measured at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset, except for:

(i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset; and
(ii) Financial asset that has subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset.
iii. Investment in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate equity investments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination. Equity investments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other

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comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, it will be transferred to retained earnings.

Dividends on these equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

(b) Impairment of financial assets
i. The Company recognizes loss allowances for expected credit losses on financial assets at amortized cost (including trade receivables), investments in debt instruments at FVTOCI, and contract assets.
ii. The Company recognizes loss allowances at an amount equal to lifetime expected credit losses (i.e. ECLs) for accounts receivable and contract assets. For all other financial instruments, the Company recognizes lifetime ECLs for which there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.
iii. Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represents the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
iv. The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.
(c) Derecognition of financial assets
The Company derecognizes a financial asset when one of the following conditions is met:
i. The contractual rights to receive cash flows from the financial asset expired.
ii. The contractual rights to receive cash flows from the financial asset which have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.
iii. The Company neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the carrying amount of financial asset and the sum of the consideration

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received and receivable is recognized in profit or loss. On derecognition of a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without being recycled to profit or loss.

B. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

C. Financial liabilities

(a) Subsequent measurement

Except for the following situations, all financial liabilities are measured at amortized cost using the effective interest method:

i. Financial liabilities at fair value through profit or loss are financial liabilities held for trading or financial liabilities designated as at fair value through profit or loss on initial recognition. A financial liability is classified as held for trading if it is incurred principally for the purpose of repurchasing it in the near term. Derivatives are also categorized as financial liabilities held for trading unless they are financial guarantee contracts or designated and effective hedging derivatives. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss on initial recognition:
(i) They are hybrid (combined) contracts containing at least an embedded derivatives and the host contract is an asset not within the scope of IFRS 9; or
(ii) They eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases; or
(iii) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy.
ii. Financial liabilities at fair value through profit or loss are initially recognized at fair value. Related transaction costs are expensed in profit or loss. These financial liabilities are subsequently remeasured at fair value, and any changes in the fair value of these financial liabilities are recognized in profit or loss.
iii. For a financial liability designated as at FVTPL, the amount of changes in fair value attributable to changes in the credit risk of the liability is presented in other comprehensive income and will not be subsequently reclassified to profit or loss. The remaining amount of changes in the fair value of that liability is presented in profit or loss. If this accounting treatment related to credit risk would create or

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enlarge an accounting mismatch, all changes in the fair value of the liability are presented in profit or loss.

(b) Derecognition of financial liabilities

The Company derecognizes a financial liability when, and only when, it is extinguished—i.e. when the obligation is discharged or cancelled or expires. The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

D. Modification of Financial Instruments

When the contractual cash flows of a financial instrument are renegotiated or modified and the renegotiation or modification does not result in the derecognition of that financial instrument, the Company recalculates the gross carrying amount of the financial asset or the amortized cost of the financial liabilities using the original effective interest rate and recognizes a modification gain or loss in profit or loss. Any costs or fees incurred adjust the carrying amount of the modified financial instrument and are amortized over the remaining term of the modified financial instrument. If the renegotiation or modification results in that the derecognition of that financial instrument is required, then the financial instrument is derecognized accordingly. If the basis for determining the contractual cash flows of a financial asset or financial liability changes resulting from interest rate benchmark reform and the change is necessary as a direct consequence of interest rate benchmark reform and the new basis for determining the contractual cash flows is economically equivalent to the previous basis, the Company applies the practical expedient to account for that change as a change in effective interest rate. If changes are made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, the Company first applies the practical expedient aforementioned to the changes required by interest rate benchmark reform, and then applies the applicable requirements to any additional changes to which that practical expedient does not apply.

4.7 Inventories

Inventories include raw materials, work in progress and finished goods. Inventories are recognized at cost. Inventories are recorded at standard cost ordinarily and stated at the lower of cost or net realizable at the end of each reporting period. Any differences at the end of the reporting period are allocated to cost of sales and ending inventory in proportion. If the actual level of production is lower than normal capacity, the unallocated fixed overhead is recognized as cost of sales. The item-by-item approach is used in applying the lower of cost and net realizable value, except for the same category homogeneous inventories. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and selling expenses. Loss for market price decline is stated at cost of goods sold.

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4.8 Investments Accounted for Using the Equity Method

A. Investments accounted for using the equity method include investments in subsidiaries.
B. A subsidiary is an entity that is controlled by the Company (including structured entity). The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
C. Unrealized gains and losses on transactions between the Company and subsidiaries have been eliminated. Unrealized losses will also be eliminated if evidence demonstrates that there is not any indication of impairment on assets involved in a transaction. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies applied by the Company.
D. The Company’s share of subsidiaries’ profit or loss is recognized in the Company's statement of comprehensive income, and its share of subsidiaries’ other comprehensive income is recognized in the Company's other comprehensive income. When the Company’s share of losses in a subsidiary equal to or exceeds its interest in the subsidiary, the Company shall recognize the loss proportional to its shares.
E. Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the adjustment amount of non-controlling interests and the fair value of the consideration paid or received is recognized directly in equity.
F. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition as a financial asset or the cost on initial recognition of an associate or a joint venture. Any difference between the fair value and the carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary will be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

4.9 Property, Plant and Equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized. For property, plant and equipment under construction, sample produced from testing whether the asset is functioning properly before its intended use are measured at lower of the costs or net realizable value. Proceeds from selling such items and the cost of those items are recognized in profit or loss.
B. Subsequent costs are included in the carrying amount of asset or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits

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associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance expenses are recognized in profit or loss as incurred.

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. The residual values of assets, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the residual values of assets and useful lives differ from previous estimates or the patterns of consumption of the future economic benefits of assets embodied in the assets which have changed significantly, any change is accounted for as a change in accounting estimates under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

The estimated useful lives of property, plant and equipment are as follows:

Buildings	5~50 years
Machinery	2~20 years
Molds	2~10 years
Other equipment	3~18 years

D. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

4.10 Leases

At the inception of a contract, the Company evaluates a contract to determine whether it is or contains a lease component. For a contract that contains a lease component and one or more additional lease or non-lease components, a lessee shall allocate the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

A.The Company as lessee

Except for payments for low-value asset leases and short-term leases which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of the lease.

Right-of-use assets

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, less any lease incentives received, and plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets. Subsequent measurement is calculated as cost less accumulated depreciation and accumulated impairment loss and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented as a separate line item in the balance sheets.

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Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms. If the ownership of the underlying assets is transferred to the Company by the end of the lease terms or if the cost of right-of-use assets reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use assets from the commencement dates to the end of the useful lives of the underlying assets.

Lease liabilities

Lease liabilities are measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate, amounts expected to be payable by the Company under residual value guarantees, the exercise price of a purchase option if the Company is reasonably certain to exercise that option, and payments of penalties received for terminating the lease if the lease term reflects the lessee exercising an option to terminate the lease, less any lease incentives. The lease payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company shall use the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. If there is a change in the assessment of an option to purchase the underlying asset, amounts expected to be payable by the lessee under residual value guarantees or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company shall remeasure the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-ofuse asset is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease. The lessee shall recognize in profit or loss any gain or loss relating to the partial or full termination of the lease and (b) making a corresponding adjustment to the right-of-use asset for all other lease modifications. Lease liabilities are presented separately in the balance sheets. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

B. The Company as lessor

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

When a lease includes both land and buildings elements, the Company assesses the

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classification of each element as a finance lease or an operating lease separately allocating lease payments (including any lump-sum upfront payments) between the land and the buildings elements in proportion to the relative fair values of the leasehold interests in the land element and buildings element of the lease at the inception date. If the lease payments cannot be allocated reliably between these two elements, the entire lease is classified as an operating lease.

Under operating leases, lease payments, less any lease incentives payable, are recognized as lease income on a straight-line basis over the lease terms. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized those costs as an expense over the lease term on the same basis as the lease income.

4.11 Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation and include land held for a currently undetermined future use. Investment properties also included right-of-use assets that meet the definition of investment property.

Investment property is measured at cost on initial recognition. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. The Company depreciates investment property on a straight-line basis over 35 years .

Investment property that is being constructed or developed is measured at cost less accumulated impairment loss. The cost of an investment property includes professional fees, borrowing costs eligible for capitalization. The properties shall start to depreciate as they achieve their expected condition for providing services.

Gains or losses arising from the retirement or disposal of investment property shall be determined as the difference between the net disposal proceeds and the carrying amount of the asset and shall be recognized in profit or loss.

4.12 Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis over the following estimated lives: trademarks and patents - the patent term or the contract term; computer software 2 to 5 years. The estimated useful life and amortization method are reviewed at each financial year-end, with the effect of any changes in estimate being accounted for on a prospective basis.

An item of intangible assets is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of intangible assets is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

4.13 Impairment of non-financial assets

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The Company assesses at the end of reporting period the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the carrying amount of asset exceeds its recoverable amount. The recoverable amount is the higher of a fair value of asset less costs to sell or value in use. When the indication of impairment loss recognized in prior years for an asset no longer exist, the impairment loss is reversed to the extent of the loss previously recognized in profit or loss.

4.14 Employee Benefits

A. Short-term employee benefits

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

B. Pensions
(a) Defined contribution plans

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

(b)Defined benefit plans
- i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employee will receive on retirement for their services with the Company in current or prior period. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit net obligation is estimated annually by independent actuaries using the projected unit credit method. The discount rate used is determined by using the market yields (at the end of the reporting period) on government bonds denominated in the currency in which the benefits are to be paid. The currency and term of the government bonds are consistent with the currency and estimated term of the obligation.
- ii. Remeasurement arising on defined benefit plans is recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
- iii. Past service costs are recognized immediately in profit or loss.
C. Employees’ compensation and directors’ and supervisors’ remuneration
Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and the amount can be reliably estimated. Any difference between the amount accrued and the amount actually distributed is accounted for a change in accounting estimate.

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D. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognizes expense when it can no longer withdraw an offer of termination benefits or it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

4.15 Capital Stock and Treasury Stock

A. Capital stock

Common stock is classified as equity. Incremental costs directly attributable to the issue of new shares or share options are recorded as a deduction in equity.

B. Treasury Stock

The Company’s repurchased stocks are recognized as treasury stock (a contra-equity account) based on their repurchase price (including all directly accountable costs). Gains on disposal of treasury stock should be recognized under “capital reserve - treasury stock transactions”; losses on disposal of treasury stock should be offset against existing capital reserves arising from similar types of treasury stock. If there is insufficient capital reserve to offset the losses, then such losses should be accounted for under retained earnings. The carrying amount of treasury stock should be calculated using the weighted-average method for the purpose of repurchased stock.

Upon retirement, treasury stock is derecognized against the capital surplus - premium on stocks and capital stock proportionately according to the ratio of shares retired. The carrying value of treasury stock in excess of the sum of the par value and premium on stocks is first offset against capital surplus from the same class of treasury share transactions, and the remainder, if any, is then debited to retained earnings. The sum of the par value and premium on treasury shares in excess of the carrying value is credited to capital surplus from the same class of treasury share transactions.

4.16 Income Tax

A. The tax expense for the year comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity, respectively.
B. The current income tax expense is calculated based on the tax laws enacted or substantively enacted at the end of the financial reporting period in the countries where the Company operate and generate taxable income. The management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. According to Income Tax Act of

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ROC, an additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the subsequent year when the stockholders approve to distribute the retain earnings.

C. Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, and it does not give rise to equal deductible and taxable temporary differences at the time of transaction. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the financial reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.
D. Deferred income tax assets are recognized only to the extent, unused tax losses and unused tax credits that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At the end of each reporting period, unrecognized and recognized deferred income tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.
4.17 Revenue Recognition

The Company recognizes revenue based on the principle of revenue from customer contracts by applying the following steps:

(a)Identify the contract with the customer;
(b)Identify the performance obligations in the contract;
(c) Determine the transaction price;
(d)Allocate the transaction price to the performance obligations in the contracts; and
(e) Recognize revenue when the entity satisfies a performance obligation.

The contract where the period between the transfer of goods or services to the customer and the payment by the customer is within one year and the major financial component of the contract shall not be adjusted for the transaction price.

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A. Revenue from sale of goods

Revenue from the sale of goods comes from sales of lead frame, stationery and others. Revenue is recognized when control of the products has transferred because it is the time when the customer has full discretion over the manner of distribution and over the price to sell the goods, has primary responsibility for sales to future customers, and bears the risks of obsolescence. Accounts receivables are recognized concurrently. Revenue is reduced for estimated customer returns, rebates and other similar allowances.

The Company does not recognize sales revenue on materials delivered to processing subcontractors due to the delivery does not transfer control of materials.

B. Revenue from rendering of services

Revenue from services is recognized when services are provided by reference to the stage of completion of the services provided.

4.18 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of those assets until substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than the stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

4.19 Government Grants

Government grants are recognized at fair value when the Company will comply with the conditions attached to them and will receive the grants. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The impacts of the change in accounting estimate shall be recognized currently when the impacts are related to the current period only. However, the impact shall be recognized currently and prospectively when the impacts not only effect current period but also the future periods.

The preparation of these parent company only financial statements in applying the Company’s accounting policies and making critical assumptions and estimates are consisted of the following:

5.1 Critical judgments in applying accounting policies

A. Business model assessment of financial assets

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The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. The Company applies judgement and considers relevant factors such as the measurement of assets performing, the risks affected by the performance and the regulations for related manager's remuneration. The Company monitors the fair value through profit or loss financial assets that are derecognized prior to their maturity to assess whether the purpose of derecognition is consistent with the business model’s. If there has been a change in the business model, the Company shall postpone the adjustment of the reclassifications of financial assets in accordance with IFRS 9.

B. Lease terms

In determining a lease term, the Company considers all facts and circumstances that create an economic incentive to exercise or not to exercise an option, including any expected changes in facts and circumstances from the commencement date until the exercise date of the option. Main factors considered include contractual terms and conditions for the optional periods, significant leasehold improvements undertaken over the contract term, the importance of the underlying asset to the lessee’s operations, etc. The lease term is reassessed if a significant change in circumstances that are within the control of the Company occurs.

5.2 Critical accounting estimation and assumption

A. Estimated impairment of financial assets

The provision for impairment of accounts receivable and debt investments is based on assumptions on risk of default and expected loss rates. The Company makes these assumptions and selects inputs for the impairment calculation, based on the Company’s historical experience and existing market conditions, as well as forward looking information. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

B. Impairment of tangible and intangible assets

In the course of impairment assessments, the Company determines, based on how assets are utilized and relevant industrial characteristics, the useful lives of assets and the future cash flows of a specific group of the assets. Changes in economic circumstances or the Company’s strategy might result in material impairment of assets in the future.

C. Realizability of deferred income tax assets

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. The Company’s management assesses the realizability of deferred tax assets by making critical accounting judgements and significant estimates of expected future revenue growth rate and gross profit rate, the tax exemption period, available tax credits, and tax planning, etc. Any changes in the global economic environment, the industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets.

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D. Evaluation of inventories

As inventories are stated at the lower of cost or net realizable value, and the Company uses judgements and actuarial assumptions to determine the net realizable value of inventory at the end of each reporting period. The Company estimates the net realizable value of inventory for obsolescence and unmarketable items at the end of reporting period, and then writes down the cost of inventories to net realizable value. Such an evaluation of inventories is mainly based on the demand for the products within a specified period in the future. Therefore, there might be material changes to the evaluation.

6. CONTENTS OF SIGNIFICANT ACCOUNTS

6.1 CASH AND CASH EQUIVALENTS

Items	December 31, 2024	December 31, 2023
Cash on hand and petty cash Checking accounts and demand deposits Total	`$` 1,053 691,142	`$` 739 449,633
	`$` 692,195	`$` 450,372

(1) Bank deposits that are pledged or restricted are classified as other financial assets - current .

(2) The cash and cash equivalents of the Company are not pledged to others.

6.2 NOTES RECEIVABLE

Items	December 31, 2024	December 31, 2023
Amortized at cost Gross carrying amount Less: loss allowance Notes receivable, net	`$` 34,011 `-`	`$` 35,065 `-`
	`$` 34,011	`$` 35,065

The notes receivable of the Company is not pledged to others.

6.3 ACOUNTS RECEIVABLE

Items December 31, 2024 December 31, 2023

Amortized at cost

Gross carrying amount

$ 1,069,224 $

1,118,961

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December 31, 2024 December 31, 2023

Items

Less: loss allowance Accounts receivable, net	`$` `(`7,953`)`	`$` `(`7,953`)`
	`$` 1,061,271	`$` 1,111,008

(1) The accounts receivable was following the Company credit policy determined by reference to the industrial characteristics, operating scale and profitability of the counterparties. The average credit term is due on monthly aggregate sales plus 60 to 150 days.
(2) The Company applies the simplified approach to providing expected credit losses prescribed under IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses are estimated using an allowance matrix with reference to past default experiences of the debtor, an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate. The allowance matrix of different customer segments, the provision for loss allowance is based on the number of past due days.
(3) The following table detailed the loss allowance of notes and accounts receivable based on the Company’s provision matrix (include related parties).

December 31, 2024

December 31, 2024
Aging terms	Gross carrying amount	Loss allowance `(`lifetime ECLs`)`	Amortized cost
Neither past due nor impaired Past due but not impaired Past due within 30 days Past due 31-90 days Past due 91-180 days Past due 181-365 days Past due over 365 days Total December 31, 2023 Aging terms	`$` 1,302,375 15,027 1,194 64 4,283 `-`	`$` `(`2,285`)` `(`1,032`)` `(`320`)` `(`33`)` `(`4,283`)` `-`	`$` 1,300,090 13,995 874 31 `-` `-`
	`$` 1,322,943	`$` `(`7,953`)`	`$` 1,314,990
	Gross carrying amount	Loss allowance `(`lifetime ECLs`)`	Amortized cost
Neither past due nor impaired Past due but not impaired Past due within 30 days	`$` 1,298,383 18,645	`$` `-` `-`	`$` 1,298,383 18,645

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December 31, 2023

December 31, 2023
Aging terms	Gross carrying amount	Loss allowance `(`lifetime ECLs`)`	Amortized cost
Past due 31-90 days Past due 91-180 days Past due 181-365 days Past due over 365 days Total	`$` 6,473 5,057 984 `-`	`$` `(`1,912`)` `(`5,057`)` `(`984`)` `-`	`$` 4,561 `-` `-` `-`
	`$` 1,329,542	`$` `(`7,953`)`	`$` 1,321,589

(4) Movements of the loss allowance for notes and accounts receivable (including overdue and related parties’).

Items	2024	2023
Balance, January 1 Add`：`Provision for (Reversal of) impairment Less: Reversal of impairment Balance, December 31	`$` 7,953 `-` `-`	`$` 7,953 `-` `-`
	`$` 7,953	`$` 7,953

(5) The Company has not held any collateral or other credit enhancement for these accounts receivable.
(6) Please refer to Note 12 for information on the Company’s management and measurement policies of credit risk.
(7) Accounts receivable of the Company are not pledged to others.

6.4 INVENTORIES AND COST OF SALES

Items	December 31, 2024	December 31, 2023
Work-in-process Finished goods Raw materials Merchandise Inventory in transit Mold parts and merchandise Total	`$` 816,422 752,809 511,206 82,514 19,477 150,453	`$` 770,590 667,502 831,627 77,599 4,787 157,059
	`$` 2,332,881	`$` 2,509,164

～ 36 ～

(1) The cost of inventories recognized as expense for the period:

Items	2024	2023
Provision for (recovery of) loss (gain) on inventories Unallocated production overheads Loss on inventory disposed Total	`$` 20,700 35 44,191	`$` `(`3,800`)` 5,722 37,224
	`$` 64,926	`$` 39,146

(2) The inventories are not pledged by the company.

6.5 PREPAYMENTS

Items	December 31, 2024	December 31, 2023
Prepaid expenses Prepayment for purchases Input tax Others Total	`$` 22,979 11,996 3,891 200	`$` 21,218 17,991 27,823 200
	`$` 39,066	`$` 67,232

6.6 OTHER FINANCAIL ASSETS – CURRENT

Items	December 31, 2024	December 31, 2023
Pledged time deposits Total	`$` 6,600	`$` 6,600
	`$` 6,600	`$` 6,600

Please refer to Note 8 for information on the amounts pledged.

6.7 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE

INCOME - NON-CURRENT

Items December 31, 2024 December 31, 2023

Equity instruments Unlisted stocks $ 2,191 $ 2,191

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December 31, 2024

December 31, 2023

Items

Valuation adjustment Total	`$` 20,618	`$` 21,747
	`$` 22,809	`$` 23,938

(1) The Company invests in unlisted stocks for medium and long-term strategic purposes and expects profit from long-term investments. Management of the Company decided to account the above-mentioned investments in FVTOCI, due to recognizing short term gain or loss with FVTPL would against the medium and long-term investment.
(2) Financial assets at FVTOCI of the Company are not pledged to others.

6.8 INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Investments accounted for using the equity method consisted of the following:

Items	December 31, 2024	December 31, 2023
Subsidiaries Subsidiaries	`$` 2,517,173	`$` 2,372,859
	December 31, 2024	December 31, 2023
Chao Shin Metal Industrial Corporation Tec Brite Technology Co., Ltd Shuen Der BVI Subsidiaries	`$` 257,789 389,919 1,869,465	`$` 242,225 376,751 1,753,883
	`$` 2,517,173	`$` 2,372,859
	December 31, 2024	December 31, 2023
Chao Shin Metal Industrial Corporation Tec Brite Technology Co., Ltd Shuen Der BVI	84`.`62`%` 54`.`98`%` 100`.`00`%`	84`.`62`%` 54`.`98`%` 100`.`00`%`

(1) For the information of the subsidiaries of the Company, please refer to Note 4 (3) B of 2024 consolidated financial statements.
(2) The shares of profit or loss and other comprehensive profit and loss of the subsidiaries

～ 38 ～

under equity method for the years ended 2024 and 2023 are recognized according to the audited financial statements for the same periods.

(3) On September 5, 2024, Shuen Der BVI and Shuen Der Industrial (Jiangsu) Co., Ltd. (SDI Jiangsu) held a board meeting and resolved to split SDI Jiangsu. This decision was made to address the evolving needs of business development within the electronics and stationery segments, as well as to enhance resource utilization and strengthen brand identity. After the split, the two entities will be Shuen Der Industrial (Jiangsu) Co., Ltd. and Shuen Der Stationery (Jiangsu) Co., Ltd. with the approval of the Department of Investment Review, MOEA on December 23, 2024. The newly established company resulting from the split of SDI Jiangsu has a split reference date as of December 31, 2024, and has completed its registration.

6.9 PROPERTY, PLANT AND EQUIPMENT

Items	December 31, 2024	December 31, 2023
Land Buildings Machinery Molds Other equipment Equipment to be inspected and construction in progress Total cost Less: accumulated depreciation and impairment Total	`$` 490,464 1,861,397 4,037,744 1,173,692 1,191,244 436,620	`$` 490,464 1,748,389 3,962,587 1,216,722 1,049,932 515,582
	9,191,161 `(`5,832,004`)`	8,983,676 `(`5,586,056`)`
	`$` 3,359,157	`$` 3,397,620

Cost	Land	Buildings	Machinery	Molds	Other equipment	Equipment to be inspected and construction in progress	Total
	`$` 490,464 `-` `-` `-`	`$` 1,748,389 9,558 `-` 103,450	`$` 3,962,587 44,640 `(`66,800`)` 97,317	`$` 1,216,722 1,436 `(`74,190`)` 29,724	`$`1,049,932 42,268 `(`14,055`)` 113,099	`$` 515,582 358,028 `-` `(`436,990`)`	`$` 8,983,676 455,930 `(`155,045`)` `(`93,400`)`
Balance, January 1, 2024 Additions Disposals Reclassification Balance, December 31, 2024 Accumulated depreciation and impairment
	`$` 490,464	`$` 1,861,397	`$` 4,037,744	`$` 1,173,692	`$`1,191,224	`$` 436,620	`$` 9,191,161
	`$` `-` `-`	`$` `(`677,630`)` `(`52,440`)`	`$` `(`3,066,070`)` `(`197,556`)`	`$ (`1,148,795`)` `(`55,073`)`	`$ (`693,561`)` `(`95,924`)`	`$` `-` `-`	`$` `(`5,586,056`)` `(`400,993`)`
Balance, January 1, 2024 Depreciation expense

～ 39 ～

Disposals Reversal of impairment Balance, December 31, 2024 Cost	Land	Buildings	Machinery	Molds	Other equipment	Equipment to be inspected and construction in progress	Total
	`$` `-` `-`	`$` `-` `-`	`$` 66,800 `-`	`$` 74,190 `-`	`$` 14,055 `-`	`$` `-` `-`	`$` 155,045 `-`
	`$` `-`	`$` `(`730,070`)`	`$` `(`3,196,826`)`	`$ (`1,129,795`)`	`$ (`775,430`)`	`$` `-`	`$` `(`5,832,004`)`
	Land	Buildings	Machinery	Molds	Other equipment	Equipment to be inspected and construction in progress	Total
	`$` 490,464 `-` `-` `-`	`$` 1,350,149 6,219 `-` 392,021	`$` 3,807,056 18,797 `(`93,527`)` 230,261	`$` 1,292,492 2,481 `(`134,214`)` 55,963	`$` 924,795 85,739 `(`18,646`)` 58,044	`$` 847,329 404,542 `-` `(`736,289`)`	`$` 8,712,285 517,778 `(`246,387`)` `-`
Balance, January 1, 2023 Additions Disposals Reclassification Balance, December 31, 2023 Accumulated depreciation and impairment
	`$` 490,464	`$` 1,748,389	`$` 3,962,587	`$` 1,216,722	`$`1,049,932	`$` 515,582	`$` 8,983,676
	`$` `-` `-` `-` `-`	`$` `(`630,243`)` `(`47,387`)` `-` `-`	`$` `(`2,982,598`)` `(`183,999`)` 93,527 7,000	`$ (`1,222,750`)` `(`60,215`)` 134,170 `-`	`$ (`630,802`)` `(`81,405`)` 18,646 `-`	`$` `-` `-` `-` `-`	`$` `(`5,466,393`)` `(`373,006`)` 246,343 7,000
Balance, January 1, 2023 Depreciation expense Disposals Reversal of impairment Balance, December 31, 2023
	`$` `-`	`$` `(`677,630`)`	`$` `(`3,066,070`)`	`$ (`1,148,795`)`	`$ (`693,561`)`	`$` `-`	`$` `(`5,586,056`)`

(1) Please refer to Note 6(27) for information on the company capitalized interest.

(2) The property, plants, and equipment of the Company are not pledged to others.

6.10 LEASE AGREEMENT

(1) Right-of-use assets

Items	December 31, 2024	December 31, 2023
Land Buildings Total cost Less: Accumulated depreciation and impairment Total	`$` 139,310 76,839	`$` 139,101 76,839
	216,149 `(`76,963`)`	215,940 `(`63,687`)`
	`$` 139,186	`$` 152,253

～ 40 ～

2024

2023

Items

Additions to right-of-use assets Depreciation of right-of-use assets Land Buildings Total	`$` 2,874	`$` 3,562
	`$` 10,879 5,063	`$` 10,613 5,350
	`$` 15,942	`$` 15,963

(2) Lease liabilities

Items	December 31, 2024	December 31, 2023
Current Non-current	`$` 11,431	`$` 11,123
	`$` 94,743	`$` 104,256

Range of discounts rate for lease liabilities was as follow:

Land Buildings	December 31, 2024	December 31, 2023
	0.89`%`~1`.`69`%` 1`.`69`%`	0.89`%`~1`.`69`%` 1`.`69`%`

Please refer to Note 12 for the maturity analysis of the lease liabilities.

(3) Material lease-in activities and terms
A. Land and Buildings

The Company leases land and plants with lease terms between 2015 and 2037, and paid $3,686 thousand for guaranteed deposit for the lease. The Company and the lessor agreed that a plant may be built on the leased land by the Company. However, title deed of the plant should be registered by the lessor. The Company has the right to use the plant within the lease terms.

(4) Other lease information

A. Please refer to Note 6.11 for information of investment property under operating leases.
B. Cash outflow relating to leases for short-term leases and low-value asset leases is as follows:

～ 41 ～

2024

2023

Items

Expenses relating to short-term leases Total cash outflow for leases	`$` 4,370	`$` 3,637
	`$` 17,780	`$` 19,900

The Company elected to apply the recognition exemption for short-term leases and low-value asset leases and, thus, did not recognize right-of-use assets and lease liabilities for these leases.

6.11 INVESTMENT PROPERTIES

Items	December 31, 2024	December 31, 2023
Buildings Less: Accumulated depreciation Total Items	`$` 99,629 `(`68,081`)`	`$` 99,629 `(`65,287`)`
	`$` 31,548	`$` 34,342
	2024	2023
Cost	`$` 99,629	`$` 99,629
Balance, January 1 Balance, December 31 Accumulated depreciation and impairment
	`$` 99,629	`$` 99,629
	`$` `(`65,287`)` `(`2,794`)`	`$` `(`62,492`)` `(`2,795`)`
Balance, January 1 Depreciation expense Balance, December 31
	`$` `(`68,081`)`	`$` `(`65,287`)`

A. Rent revenue and direct operation expenses from investment property:

Items	2024	2023
Rent revenue from investment property Direct operating expenses from the investment of property that generated rental income during the period	`$` 19,593	`$` 18,265
	`$` 3,253	`$` 3,231

～ 42 ～

B. The lease term for buildings under operating leases is 5 years. The lessees do not have an option to acquire the assets at the expiry of the lease periods. The Company recognized rent income for the years ended December 31, 2024 and 2023 are $19,593 thousand and $18,265 thousand. As of December 31, 2024 and 2023, the maturity analysis of minimum rental receivable for the operating lease is as follows:

Items	December 31, 2024	December 31, 2023
Not later than 1 year Later than 1 year and not later than 5 years Total	`$` 19,593 58,780	`$` 19,593 78,373
	`$` 78,373	`$` 97,966

C. The Company’s investment property had a fair value of $97,807 thousand and $97,578 thousand as of December 31, 2024 and 2023, respectively. The fair value was not assessed by any independent appraiser but was determined by the Company's management based on the trading price of similar properties on the open market.
D. The investment property of the Company is not pledged to others.

6.12 INTANGIBLE ASSETS

Items	Items		December 31, 2024	December 31, 2024	December 31, 2023	December 31, 2023
		`$`	44,143 940 55,907		`$`	48,192 1,036 42,752
			100,990 `(`46,051`)`			91,980 `(`40,508`)`
		`$`	54,939		`$`	51,472
			2024
	Patent		Trademarks	Computer software		Total
Cost	`$` 48,192 1,020 `(`5,069`)`		`$` 1,036 126 `(`222`)`	`$` 42,752 17,280 `(`4,125`)`		`$` 91,980 18,426 `(`9,416`)`
Balance, January 1 Additions Disposals Balance, December 31
	`$` 44,143		`$` 940	`$` 55,907		`$` 100,990

～ 43 ～

Items		2024	2024
	Patent	Trademarks	Computer software	Total
Accumulated amortization	`$` `(`25,867`)` `(`5,038`)` 5,069	`$` `(`539`)` `(`119`)` 222	`$` `(`14,102`)` `(`9,802`)` 4,125	`$` `(`40,508`)` `(`14,959`)` 9,416
Balance, January 1 Amortization expense Disposals Balance, December 31 Items
	`$` `(`25,836`)`	`$` `(`436`)`	`$` `(`19,779`)`	`$` `(`46,051`)`
		2023
	Patent	Trademarks	Computer software	Total
Cost	`$` 51,891 524 `(`4,223`)`	`$` 1,531 `-` `(`495`)`	`$` 41,802 9,142 `(`8,192`)`	`$` 95,224 9,666 `(`12,910`)`
Balance, January 1 Additions Disposals Balance, December 31 Accumulated amortization
	`$` 48,192	`$` 1,036	`$` 42,752	`$` 91,980
	`$` `(`24,712`)` `(`5,378`)` 4,223	`$` `(`857`)` `(`177`)` 495	`$` `(`14,648`)` `(`7,646`)` 8,192	`$` `(`40,217`)` `(`13,201`)` 12,910
Balance, January 1 Amortization expense Disposals Balance, December 31
	`$` `(`25,867`)`	`$` `(`539`)`	`$` `(`14,102`)`	`$` `(`40,508`)`

6.13 OTHER NON-CURRENT ASSETS

Items	December 31, 2024	December 31, 2023
Prepayments for equipment Less: loss allowance Refundable deposits Total	`$` 29,844 `(`9,676`)` 8,235	`$` 37,321 `-` 9,479
	`$` 28,403	`$` 46,800

Please refer to Note 8 for information on the refundable deposits that were pledged to others.

～ 44 ～

6.14 NOTES PAYABLE

Items	December 31, 2024	December 31, 2023
Notes payable - operating activities Notes payable – non-operating activities Total	`$` 2,464 315	`$` 4,482 611
	`$` 2,779	`$` 5,093

6.15 OTHER PAYABLES

Items	December 31, 2024	December 31, 2023
Salaries and bonuses payable Payable for equipment and construction Payable for supplies expense Compensation payable to employees, directors and supervisors Payable for repairs and maintenance Payable for utilities expense Payable for insurance Others Total	`$` 227,621 48,387 23,476 22,411 20,422 19,811 15,394 75,673	`$` 258,047 56,250 23,969 25,969 20,768 17,125 15,275 77,310
	`$` 453,195	`$` 494,713

6.16 LONG-TERM LOANS AND CURRENT PORTION

The nature of loans	December 31, 2024	December 31, 2023
Unsecured loans Less: current portion Discount of government grants (Note 6.17) Total Interest rates range Year to maturity	`$` 1,718,735 `(`297,387`)` (3,563)	`$` 1,709,058 `(`421,323`)` `(`7,245`)`
	`$` 1,417,785	`$` 1,280,490
	1`.`23`%~`2`.`03`%`	1`.`10`%~`1`.`80`%`
	2025 to 2030	2024 to 2030

(1) The loans from Bank of Taiwan, Mega Bank, E.SUN Bank, and Chang Hwa Bank are repaid in installments, the rest of the loans will be repaid in full on the maturity date.

～ 45 ～

(2) Under the Company’s loan agreement with certain banks, the Company should meet several financial ratios and criteria. The Company had no violation of the aforementioned financial ratio regulations as of December 31, 2024 and 2023.

6.17 GOVERNMENT GRANTS

(1) The Company has obtained a $788,735 thousand preferential interest rate loan from a government under the “Action Plan Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” for capital expenditure and operating turnover. The difference between transaction price and fair value is regarded as the government grants. As of December 31, 2024, the fair value of loan is estimated to be $785,172 thousand. The difference $3,563 thousand between transaction price and fair value is recognized as deferred income (under other current and non-current liabilities). The deferred revenue is recognized as other income during the loan period. The Company has recognized $4,009 thousand and $5,036 thousand in other income, $17,003 thousand and $20,272 thousand in interest expense for the loan, and has paid $12,994 thousand and $15,236 thousand interests to the bank for the years ended December 31, 2024 and 2023.
(2) The National Development Fund would cease providing the Company related interest subsidies if the Company violated requirements of the project loan due to not be able to build plants and relevant facilities, purchasing equipment or use as mid-term working capital.

6.18 RETIREMENT BENEFIT PLANS

(1) Defined contribution plans
A. The employee pension plan under the Labor Pension Act of the R.O.C. (the Act) is a defined contribution plan. Pursuant to the plan, the Company make monthly contributions of 6% of each individual employee’s salary or wage to employees’ pension accounts.
B. The Company recognized expenses in the statement of comprehensive income were $35,438 thousand and $35,105 thousand under the contributions rates specified in the plans for years ended December 31, 2024 and 2023, respectively.
(2) Defined benefit plans
A. The Company has a defined benefit pension plan in accordance with the Labor Standards Law of the R.O.C. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 6% of the employees’ monthly salaries and wages to the retirement fund deposited in Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of each year. If the amount of the balance in the pension fund is not enough to pay the pension to the labors expected to be qualified for retirement in the following year,

～ 46 ～

the Company will make contribution for the deficit by next March. The Fund is managed by the Government's designated authorities and the Company have no right to influence their investment strategies.

B. Amounts recognized in the balance sheet are as follows:

Items	December 31, 2024	December 31, 2023
Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability	`$` 185,401 `(`128,432`)`	`$` 216,512 `(`136,320`)`
	`$` 56,969	`$` 80,192

C. Movements in net defined benefit liability are as follows:

Items		2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
Balance, January 1 Service costs Current service cost Interest expense(revenue) Amounts recognized in profit and loss Remeasurements: Return on plan assets (Amounts included in interest income or expense are excluded) Actuarial (gains) losses - Effect of changes in financial assumptions Experience adjustments Amounts recognized in other comprehensive income (losses) Pension fund contributions Paid pension Balance, December 31	`$` 216,512 793 2,814	`$` `(`136,320`)` `-` `(`1,842`)`	`$` 80,192 793 972
	3,607	`(`1,842`)`	1,765
	`-` `(`4,121`)` 1,476	`(`11,696`)` `-` `-`	`(`11,696`)` `(`4,121`)` 1,476
	`(`2,645`)`	`(`11,696`)`	`(`14,341`)`
	`-` `(`32,073`)`	`(`10,647`)` 32,073	`(`10,647`)` `-`
	`$` 185,401	`$` `(`128,432`)`	`$` 56,969

～ 47 ～

Items		2023
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
Balance, January 1 Service costs Current service cost Interest expense(revenue) Amounts recognized in profit and loss Remeasurements: Return on plan assets (Amounts included in interest income or expense are excluded) Actuarial (gains) losses - Effect of changes in financial assumptions Experience adjustments Amounts recognized in other comprehensive income (losses) Pension fund contributions Paid pension Balance, December 31	`$` 223,398 953 3,128	`$` `(`132,566`)` `-` `(`1,934`)`	`$` 90,832 953 1,194
	4,081	`(`1,934`)`	2,147
	`-` 1,739 `(`2,846`)`	`(`906`)` `-` `-`	`(`906`)` 1,739 `(`2,846`)`
	`(`1,107`)`	`(`906`)`	`(`2,013`)`
	`-` `(`9,860`)`	`(`10,774`)` 9,860	`(`10,774`)` `-`
	`$` 216,512	`$` `(`136,320`)`	`$` 80,192

The pension costs of the aforementioned defined benefit plans are recognized in profit or loss by the following categories:

Items	2024	2023
Cost of revenue Marketing expenses General and administrative expenses Research and development expenses Total	`$` 1,140 122 331 172	`$` 1,378 136 389 244
	`$` 1,765	`$` 2,147

D. Information about Fair value of plan assets are as follows:

～ 48 ～

Item December 31, 2024 December 31, 2023

Cash and cash equivalents $ 128,432 $ 136,320

E. Because of the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:
i. Investment risk
- The pension funds are invested in equity and debt securities, bank deposits, etc. at the discretion of the Bureau of Labor Funds of Ministry of Labor, or under the mandated management. However, under the Labor Standards Law, the rate of return on plan assets shall not be less than the average interest rate on a twoyear time deposit published by the local banks.
ii. Interest risk A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets.
iii. Salary risk
- The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.
F. The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions on measurement date were as follows:

Items	Measurement date	Measurement date
	December 31, 2024	December 31, 2023
Discount rate Expected salary increase rate	1`.`60`%` 2`.`00`%`	1`.`30`%` 2`.`00`%`

Reasonably possible changes to the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

Items	December 31, 2024	December 31, 2023
Discount rate 0.25% increase 0.25% decrease	`$` `(`3,507`)` 3,615	`$` `(`4,431`)` 4,575

～ 49 ～

December 31, 2024

December 31, 2023

Items

Expected salary increase rate
0.25% increase	`$`	3,503`$`	4,420
0.25% decrease		`(`3,415`)`	`(`4,303`)`

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

G. The contribution that the Company expects to make to its defined benefit pension plans in next year is $10,647 thousand. The weighted average maturity period of the defined benefit obligation is 9 years.

6.19 COMMON STOCKS

(1) The movements in the number of the Company’s ordinary shares outstanding are as follows:

Items	2024	2024	2023	2023
	Shares`(`in Thousands`)` 182,140 182,140	Capital	Shares`(`in Thousands`)` 182,140 182,140	Capital
Balance, January 1 Balance, December 31		`$` 1,821,403		`$` 1,821,403
		`$` 1,821,403		`$` 1,821,403

The par value of common stock is $10 per share, and carrying one vote per share and carry a right to dividends.

(2) The Company’s authorized capital was $2,700,000 thousand, consisting of 270,000 thousand shares as of December 31, 2024.

6.20 CAPITAL SURPLUS

Item	December 31, 2024	December 31, 2023
Additional paid-in capital Long-term investments at equity Treasury stock transactions Others Total	`$` 451,220 3,546 30,359 992	`$` 451,220 3,546 30,359 835
	`$` 486,117	`$` 485,960

(1) Under the Company Act, the capital surplus generated from the excess of the issuance

～ 50 ～

price over the par value of capital stock and from donations can be used to offset deficit or may be distributed as stock dividends or cash dividends. Under the regulations of the Security Exchange Law, the maximum amount transferred from the foregoing capital surplus to the Company's capital per year shall not be over 10% of the Company's capital surplus. Capital surplus can't be used to offset deficit unless legal reserve is insufficient.

(2) The capital surplus from shares of changes in equities and stock options may not be used for any purpose.

6.21 RETAINED EARNINGS AND DIVIDEND POLICY

(1) According to the Company’s Article of Incorporation, the current year’s earnings, if any, shall first pay taxes, offset prior years’ operating losses, set aside a legal capital reserve at 10% of the remaining earnings until the accumulated legal capital reserve equals the Company’s paid-in capital then reversal or set aside a special capital reserve in accordance with relevant laws or regulations. Any balance left over shall be allocated with unappropriated earnings submitted by the Board of Directors to be approved at a shareholders’ meeting according to the Company’s Articles of Incorporation 32 para 1 ad finem.
The Company’s dividend policy was established by the Board of Directors according to operating plans, investment plans, capital budgets and the changes in internal and external environment. Due to the Company’s steady growth, distribution of earnings will first consider to be allocated by cash dividend before stock dividend. Stock dividends distributed shall not excess be higher than 50% of the gross amount of total dividends.
(2) Legal reserve may be used to offset a deficit or to distribute as dividend in cash or in stock for the portion in excess of 25% of the Company's paid-in capital.
(3) Special reserve

Items December 31, 2024 December 31, 2023 Special reserve $ 137,810 $ 116,256

A. In accordance with the regulation, the Company shall set aside special reserve from the debit balance on other equity item at the end of the year before distributing earnings. When debit balance on other equity is reversed subsequently, the reversed amount could be included in the distributable earnings.
B. On initial application of IFRSs, the unrealized revaluation increments and cumulative translation adjustment should be reclassified into retained earnings, and was set aside as special reserve $53,205 thousand. When the relevant assets are used, disposal of or

～ 51 ～

reclassified subsequently, the special reserve set aside previously shall be reversed to distributable earnings proportionately.

(4) The appropriations of 2023 and 2022 earnings have been approved by shareholders’ meetings held on May 30, 2024 and May 30, 2023, respectively. The appropriations of earnings and dividends per share were as follows:

Items	Appropriation of Earnings	Appropriation of Earnings	Dividends Per Share (NT$)	Dividends Per Share (NT$)
	For Year 2023	For Year 2022	For Year 2023	For Year 2022
Legal reserve Special reserve Cash dividends to shareholders	`$` 74,382 21,554 473,565	`$` 96,356 `(`23,507`)` 582,848	`$` 2`.`60	`$` 3`.`20

(5) The Company’s appropriation of earnings for 2024 had been approved in the meeting of the Board of Directors held on February 26, 2025. The appropriations of earnings were as follows:

Items	Appropriation of Earnings	Dividends Per Share (NT$)
Legal reserve Special reserve Cash dividends to shareholders	`$` 68,773 `(`73,671`)` 455,351	`$` 2`.`50

The appropriations of earnings for 2024 are to be presented for approval in the shareholders' meeting to be held in May, 2025.

(6) Information on the resolution of the Board of Directors' and shareholders' meetings regarding the appropriation of earnings is available from the Market Observation Post System on the website of the TWSE.

6.22 OTHER EQUITY ITEMS

Item	Exchange differences on translation of foreign financial statements	Unrealized valuation gain (loss) on financial assets at fair value through other comprehensive income	Total
Balance, January 1, 2024	`$` `(`156,984`)`	`$` 19,174	`$` `(`137,810`)`

～ 52 ～

Item	Exchange differences on translation of foreign financial statements	Unrealized valuation gain (loss) on financial assets at fair value through other comprehensive income	Total
Exchange differences on translation of foreign financial statements Unrealized valuation gain (loss) on financial assets at fair value through other comprehensive income Balance, December 31, 2024 Item	`$` 74,337 `-`	`$` `-` `(`666`)`	`$` 74,337 `(`666`)`
	`$` `(`82,647`)`	`$` 18,508	`$` `(`64,139`)`
	Exchange differences on translation of foreign financial statements	Unrealized valuation gain (loss) on financial assets at fair value through other comprehensive income	Total
Balance, January 1, 2023 Exchange differences on translation of foreign financial statements Unrealized valuation gain (loss) on financial assets at fair value through other comprehensive income Balance, December 31, 2023	`$` `(`133,085`)` `(`23,899`)` `-`	`$` 16,829 `-` 2,345	`$` `(`116,256`)` `(`23,899`)` 2,345
	`$` `(`156,984`)`	`$` 19,174	`$` `(`137,810`)`

6.23 OPERATING REVENUE

Items	2024	2023
Revenue from contracts with customers Sale of goods Other operating revenues Total	`$` 8,129,706 343	`$` 8,407,366 2,442
	`$` 8,130,049	`$` 8,409,808

(1) Description of customer contract

The Company is mainly engaged in the sale of lead frames and stationery. The main target customers are downstream vendors and agents, etc., and the Company sells at price stipulated in contract. The consideration is classified as short-term receivables, and is therefore measured at invoice price.

(2) Disaggregation of revenue from contracts with customers

～ 53 ～

2024

Major products /Service line	China	Taiwan	Japan	Malaysia	Others	Total
Electronic Stationery Others Total Timing of revenue recognition	`$`2,429,053 27,872 40,460	`$` 618,681 525,140 14,347	`$`1,099,877 67,939 21,559	`$` 1,246,177 3,192 73,722	`$`1,429,863 520,834 10,990	`$`6,823,651 1,144,977 161,078
	`$`2,497,385	`$`1,158,168	`$`1,189,375	`$` 1,323,091	`$`1,961,687	`$`8,129,706
	`$`2,497,385	`$`1,158,168	`$`1,189,375	`$` 1,323,091	`$`1,961,687	`$`8,129,706
Performance obligation satisfied at a point in time

2023

Major products /Service line	China	Taiwan	Japan	Malaysia	Others	Total
Electronic Stationery Others Total Timing of revenue recognition	`$`2,572,572 31,748 82,059	`$` 702,241 518,535 13,095	`$`1,260,053 72,023 7,357	`$` 1,008,212 4,547 38,446	`$`1,638,977 434,750 22,751	`$`7,182,055 1,061,603 163,708
	`$`2,686,379	`$`1,233,871	`$`1,339,433	`$` 1,051,205	`$`2,096,478	`$`8,407,366
	`$`2,686,379	`$`1,233,871	`$`1,339,433	`$` 1,051,205	`$`2,096,478	`$`8,407,366
Performance obligation satisfied at a point in time

(3) The Company recognizes contract liabilities arising from contracts with customers as follows:

Items December 31, 2024 December 31, 023 January 1, 2023

Contract liabilities -current $ 113,730 $ 101,368 $ 95,076

6.24 PERSONNEL, DEPRECIATION AND AMORTIZATION EXPENSES

The information of employee benefits, depreciation, depletion, and amortization are as follows:

～ 54 ～

By nature		2024			2023
	Cost of sales	Operating expense (include not operating)	Total	Cost of sales	Operating expense (include not operating)	Total
Employee benefit expense Salary Remuneration to directors Labor insurance Pension Other Depreciation Amortization Total	`$` 704,811 `-` 73,810 27,878 75,035 385,126 6,674	`$` 266,212 11,227 20,863 9,325 18,346 34,603 8,285	`$` 971,023 11,227 94,673 37,203 93,381 419,729 14,959	`$` 742,690 `-` 76,738 27,605 70,512 360,861 4,442	`$` 296,108 12,727 21,708 9,647 12,664 30,903 8,759	`$`1,038,798 12,727 98,446 37,252 83,176 391,764 13,201
	`$`1,273,334	`$` 368,861	`$`1,642,195	`$`1,282,848	`$` 392,516	`$`1,675,364

(1) The average numbers of employees of the Company in 2024 and 2023 were 1,424 and 1,506, respectively. The numbers of non-employee Directors were 6 and 6 for 2024 and 2023, respectively.
(2) The average employee benefits expenses were $844 thousand and $838 thousand for 2024 and 2023, respectively.
(3) The average salaries were $685 thousand and $693 thousand for 2024 and 2023, respectively. The average salaries of 2024 and 2023 decreased by 1%.
(4) In accordance with the Company’s Article of incorporation, the Company shall allocate 1.5% and not higher than 1.5% of annual profits before tax during the period to employees’ compensation and directors’ remuneration, respectively. If there is a change in the proposed amount after the annual financial statements are authorized for issue, the difference is recorded as a change in accounting estimate.
(5) The appropriations of employees’ compensation and directors’ remuneration for 2024 and 2023 have been approved by the board of directors held on February 26, 2025, and February 23, 2024, respectively. The amount of approved and recognized in financial statement is shown as follows.

For Year 2024	For Year 2024	For Year 2023	For Year 2023
Employees’ compensation	Directors’ remuneration	Employees’ compensation	Directors’ remuneration
`$` 12,451 12,451	`$` 9,960 9,960	`$` 14,427 14,427	`$` 11,542 11,542
`$` `-`	`$` `-`	`$` `-`	`$` `-`

～ 55 ～

The aforementioned employees’ compensation of 2024 and 2023 are distributed in cash.

(6) Information regarding employees' compensation and directors’ remuneration is available from the Market Observation Post System at the website of the TWSE.

6.25 OTHER INCOME

Items	2024	2023
Rental income Government subsidies Dividend income Others Total	`$` 20,934 5,184 1,476 15,918	`$` 19,771 7,414 1,269 15,865
	`$` 43,512	`$` 44,319

6.26 OTHER GAINS AND LOSSES

Items	2024	2023
Foreign exchange gains (losses), net Gain on disposal of property, plant and equipment Gain on reversal of impairment loss of property, plant and equipment Other Impairment Losses Others Total	`$` 92,458 1,844 `-` `(`9,676`)` `(`4,293`)`	`$` 22,814 4,480 7,000 `-` `(`4,541`)`
	`$` 80,333	`$` 29,753

6.27 FINANCIAL COSTS

Items	2024	2023
Interest expense Bank loans Interest on lease liabilities Less: capitalized amount for qualified assets Financial costs Interest capitalization rates	`$` 29,604 1,331 `(`4,110`)`	`$` 31,088 1,438 `(`6,363`)`
	`$` 26,825	`$` 26,163
	1`.`33`%~`1`.`68`%`	1`.`33`%~`1`.`68`%`

～ 56 ～

6.28 INCOME TAX

A. Income tax expense recognized in profit or loss
(1) Components of income tax expense:

Items	2024	2023
Current income tax expense Current tax expense`(`benefit`)` recognized in the current year Tax on undistributed surplus earnings Income tax adjustments for prior years Current tax Deferred income tax expense The origination and reversal of temporary differences Deferred tax Income tax expense recognized in profit or loss	`$` 154,640 8,716 `(`22,528`)`	`$` 156,192 15,392 `-`
	140,828	171,584
	`(`8,282`)`	21,504
	`(`8,282`)`	21,504
	`$` 132,546	`$` 193,088

(2) Income tax expenses (benefits) recognized in other comprehensive income were as follows:

Items	2024	2023
Exchange differences arising on translation of foreign operations Financial assets at fair value through other comprehensive income Remeasurement of defined benefit obligation Total	`$` 18,584 `(`463`)` 2,868	`$` `(`5,975`)` 570 402
	`$` 20,989	`$` `(`5,003`)`

B. Reconciliation between accounting profit and income tax expense recognized in profit or loss ：

Items	2024	2023
Income before tax Income tax expense at the statutory rate	`$` 807,643	`$` 935,846
	`$` 161,529	`$` 187,169

～ 57 ～

2024

2023


Items	2024	2023
Tax effect of adjusting items: Deductible items in determining taxable income Income tax on unappropriated earnings Income tax adjustments on prior years Net changes on deferred income tax Income tax expense recognized in profit or loss	`$` `(`6,889`)` 8,716 `(`22,528`)` `(`8,282`)`	`$` `(`30,977`)` 15,392 `-` 21,504
	`$` 132,546	`$` 193,088

The corporate income tax rate for entities subject to the R.O,C, Income Tax Act 20%, and the tax rate for unappropriated earnings 5%.

C. Income tax liabilities

Items	December 31, 2024	December 31, 2023
Income tax liabilities	`$` 105,538	`$` 200,603

D. Deferred tax assets or liabilities arising from temporary differences, operating loss carryforward, and investment tax credit ：

	2024	2024
January1	Recognized in (losses) gains	Recognized in other comprehensive income	December 31
`$` 21,120 15,540 29,315 16,803	`$` 4,140 `(`1,419`)` 14,793 `(`8,946`)`	`$` `-` `(`2,868`)` `-` `-`	`$` 25,260 11,253 44,108 7,857
82,778 `$` `(`192,770`)`	8,568 `$` `-`	`(`2,868`)` `$` `-`	88,478 `$` `(`192,770`)`

～ 58 ～

2024

Items	January1	Recognized in (losses) gains	Recognized in other comprehensive income
Exchange differences arising on translation of foreign operations Reserve for land revaluation increment tax Others Subtotal Total Items	`$` `(`6,184`)` `(`78,957`)` `(`6,558`)`	`$` `-` `-` `(`286`)`	`$` `(`18,584`)` `-` 463
	`(`284,469`)`	`(`286`)`	`(`18,121`)`
	`$` `(`201,691`)`	`$` 8,282	`$` `(`20,989`)`
		2023
	January1	Recognized in (losses) gains	Recognized in other comprehensive income
Deferred income tax assets Temporary differences Unrealized loss on inventories Net defined benefit liability Cutoff Others Subtotal Deferred tax liabilities Temporary differences Gain on foreign investments accounted for using the equity method Exchange differences arising on translation of foreign operations Reserve for land revaluation increment tax Others Subtotal Total	`$` 21,880 17,494 49,787 12,514	`$` `(`760`)` `(`1,552`)` `(`20,472`)` 4,289	`$` `-` `(`402`)` `-` `-`
	101,675	`(`18,495`)`	`(`402`)`
	`(`192,770`)` `(`12,159`)` `(`78,957`)` `(`2,979`)`	`-` `-` `-` `(`3,009`)`	`-` 5,975 `-` `(`570`)`
	`(`286,865`)`	`(`3,009`)`	5,405
	`$` `(`185,190`)`	`$` `(`21,504`)`	`$` 5,003

～ 59 ～

E. The income tax returns of the Company have examined through 2022 by tax authority.

6.29 OTHER COMPREHENSIVE INCOME

Items		2024
	Before tax	Income tax (expense)benefit	After tax
	`$` 14,341 1,163 `(`1,129`)`	`$` `(`2,868`)` `-` 463	`$` 11,473 1,163 `(`666`)`
	14,375	`(`2,405`)`	11,970
		`(`18,584`)`	74,337
	92,921	`(`18,584`)`	74,337
	`$` 107,296	`$` `(`20,989`)`	`$` 86,307
		2023
	Before tax	Income tax (expense)benefit	After tax
Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation Share of other comprehensive income of investments accounted for using the equity method	`$` 2,013 `(`546`)`	`$` `(`402`)` `-`	`$` 1,611 `(`546`)`

～ 60 ～

2023

		2023
Items	Before tax	Income tax (expense)benefit	After tax
	`$` 2,915	`$` `(`570`)`	`$` 2,345
	4,382	`(`972`)`	3,410
		5,975	`(`23,899`)`
	`(`29,874`)`	5,975	`(`23,899`)`
	`$` `(`25,492`)`	`$` 5,003	`$` `(`20,489`)`

6.30 EARNINGS PER SHARE

The earnings for earnings per share calculated and weighted average number of ordinary shares are as follows ：

Items	2024	2023
Basic earnings per share Net income attributable to ordinary shareholders of the Company Net income for calculating basic earnings per share Weighted average number of shares outstanding (in thousands) Basic earnings per share (after tax) (in dollars) Diluted earnings per share Net income attributable to ordinary shareholders of the Company Net income for calculating diluted earnings per share Weighted average number of shares outstanding (in thousands) Effect of dilutive potential common shares	`$` 675,097	`$` 742,758
	`$` 675,097	`$` 742,758
	182,140	182,140
	`$` 3`.`71	`$` 4`.`08
	`$` 675,097	`$` 742,758
	`$` 675,097	`$` 742,758
	182,140	182,140

～ 61 ～

2024

2023

Items

Employees’ compensation (in thousands) Weighted average number of shares outstanding for diluted earnings per share (in thousand) Diluted earnings per share (after tax) (in dollars)	152	149
	182,292	182,289
	`$` 3`.`70	`$` 4`.`07

If the Company is able to settle the employee compensation by cash or stocks, the employee compensation should be assumed to be settled in stocks and the resulting potential shares increased should be included in the weighted average shares outstanding in calculation of diluted earnings per share, if the shares have a dilutive effect. Such dilutive effect of the potential shares need to be included in the calculation of diluted earnings per share until employee compensation is approved in the following year.

6.31 Reconciliation of liabilities arising from financing activities

Items	January 1, 2024	Cash Flows	Non-cash Changes	Non-cash Changes	December 31, 2024
			Change in Exchange Rate	Others(Note)
Long-term loan (include current portion) Lease liabilities Guarantee deposits Total liabilities arising from financing activities Items	`$` 1,701,813 115,379 27	`$` 9,677 `(`12,080`)` `-`	`$` `-` `-` `-`	`$` 3,682 2,874 `-`	`$` 1,715,172 106,173 27
	`$` 1,817,219	`$` `(`2,403`)`	`$` `-`	`$` 6,556	`$` 1,821,372
	January 1, 2023	Cash Flows	Non-cash Changes		December 31, 2023
			Change in Exchange Rate `$` `-` `-` `-`	Others(Note)
Long-term loan (include current portion) Lease liabilities Guarantee deposits Total liabilities arising from financing activities	`$` 2,145,967 128,196 27	`$` `(`444,855`)` `(`14,825`)` `-`		`$` 701 2,008 `-`	`$` 1,701,813 115,379 27
	`$` 2,274,190	`$` `(`459,680`)`	`$` `-`	`$` 2,709	`$` 1,817,219

Note ： Other non-cash changes primarily included discount amortization measured by the effective interest method.

～ 62 ～

7. RELATED PARTY TRANSACTIONS

The transactions between the Company and its related parties, other than those disclosed in other notes, are summarized as follows:

A. Related party name and categories

Name of related parties Related Party Categories

Chao Shin Metal Industrial Corporation Subsidiaries ( Chao Shin Metal ) Tec Brite Technology Co ., Ltd . Subsidiaries ( TEC Brite Technology ) Shuen Der Industry ( Jiangsu ) Co ., Ltd . Subsidiaries ( SDI Jiangsu ) Shuen Der Stationery ( Jiangsu ) Co ., Ltd Subsidiaries (Note) ( SDS ) SJD Industries ( M ) Sdn . Bhd Other related parties SDI JAPAN CO ., LTD . Other related parties SDI Electronics JAPAN CO ., LTD . Other related parties

Note ： Newly established company splitting from SDI Jiangsu in the 2024, please refer to Note 6,(8),3.

B. Significant transactions between related parties

Significant transactions between the Company and its related parties for the years ended December 31, 2024 and 2023 are as follow:

(a) Revenue

Categories`/`Name of related parties	2024	2023
Subsidiaries Other related parties Total	`$` 246,892 356,660	`$` 104,575 456,852
	`$` 603,552	`$` 561,427

Selling price with related parties was determined and negotiated referring to related market price. The payment term was T/T 30 to 240 days.

(b) Purchases

Categories / Name of related parties 2024 2023 Subsidiaries $ 258,006 $ 206,773

～ 63 ～

Categories / Name of related parties

2024

2023

SDI JIANGSU Other related parties Total	`$` 643,861 14,539	`$` 661,616 17,050
	`$` 916,406	`$` 885,439

Purchasing price with related parties was determined and negotiated referring to related market price. The payment term was T/T 60 to 90 days.

(c) Receivables due from related parties

Items	Categories`/`Name of relatedparties	December 31, 2024	December 31, 2023
Accounts receivable Other receivables	SDI Electronics JAPAN CO`.`, LTD`.` Subsidiaries Other related parties Total TEC Brite Technology Subsidiaries Other related parties Total	`$` 136,730 66,782 16,196	`$` 117,077 42,224 16,215
		`$` 219,708	`$` 175,516
		`$` 8,977 1,121 8	`$` 8,157 756 740
		`$` 10,106	`$` 9,653

(d) Payables due to related parties

Items	Categories`/`Name of relatedparties	December 31, 2024	December 31, 2023
Accounts payable Other payables	TEC Brite Technology SDI JIANGSU Subsidiaries Other related parties Total TEC Brite Technology Chao Shin Metal SDI JIANGSU	`$` 72,400 51,626 3,453 2,904	`$` 69,034 49,407 2,551 1,732
		`$` 130,383	`$` 122,724
		`$` 2,039 167 1,678	`$` 1,146 288 227

～ 64 ～

Categories / Name of Items December 31, 2024 December 31, 2023 related parties

SDI Electronics JAPAN CO., LTD Total	`$` 152	`$` 359
	`$` 4,036	`$` 2,020

(e) Property transactions

(1) Disposal of property, plant and equipment

Categories`/`Name of relatedparties	2024	2024	2023	2023
	Price	Profit (Loss)	Price	Profit (Loss)
Subsidiaries Total	`$` 249	`$` 152	`$` 88	`$` 43
	`$` 249	`$` 152	`$` 88	`$` 43

The unrealized gains from selling equipment as mentioned above have been deferred.

(f) Selling parts

Selling parts
Categories`/`Name of relatedparties	2024		2023
	Price	Profit (Loss)	Price `$` 160	Profit (Loss)
Subsidiaries	`$` 140	`$` 45		`$` 5

The stationaries and electric parts the subsidiaries needed for production were purchased by the Company. The unrealized gains as mentioned above have been deferred.

(g) Endorsement and Guarantees

Party being guaranteed	Matter being guaranteed	December 31, 2024	December 31, 2023
SDI JIANGSU	Banking facilities Total	`$` 1,370,945	`$` 1,297,123
		`$` 1,370,945	`$` 1,297,123

(h) Other transactions

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Items	Categories`/`Name of relatedparties		2024	2023	2023
		`$`	2,991	`$` 3,486
		`$`	10,377 2,619	`$` 5,817 2,802
		`$`	12,996	`$` 8,619
		`$`	20,193 144	`$` 18,865 144
		`$`	20,337	`$` 19,009
		`$`	5,965 183 41	`$` 5,690 155 219
		`$`	6,189	`$` 6,064
		`$`	3,520 171	`$` 3,718 1,032
		`$`	3,691	`$` 4,750
			December 31, 2024		December 31, 2023
Lease liabilities`－` current Lease liabilities`－` non-current Items	Chao Shin Metal Chao Shin Metal Categories`/`Name of relatedparties		`$` 3,190		`$` 2,415
			`$` 26,976		`$` 29,641
			2024
			`$` 2,726

(i) Lease agreement

C. Compensation of key management personnel

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2024

2023

Items	2024 `$` 45,536 528 `$` 46,064	2023
Short-term employee benefits Post- employment benefits Total		`$` 49,199 480
		`$` 49,679

8. PLEDGED ASSETS

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

Items	December 31, 2024	December 31, 2023
Pledge time deposit (recognized as other financial assets - current) Refundable deposits (recognized as other non-current assets) Total	`$` 6,600 542	`$` 6,600 533
	`$` 7,142	`$` 7,133

9. SIGNIFICANT CONTINGENCIES LIABILITIES AND UNRECOGNIZED

COMMITMENTS:

(1) Capital expenditures committed but not yet incurred are as follows:

Items	December 31, 2024 `$` 123,603	December 31, 2023
Property, plant, and equipment		`$` 67,894

10. SIGNIFICANT DISASTERS: NONE.

11. SIGNIFICANT SUBSEQUENT EVENTS ：

On November 1, 2024, the board of directors approved the issuance of the company's first domestic unsecured convertible bonds to raise operating funds and repay part of the bank loans. The total issuance amount is limited to NT$1,200,000,000, with a nominal rate of 0% and a term of three years. It was reported effective by the Financial Supervisory Commission on December 25, 2024, and has not been issued as of February 26, 2025. The Company will issue it based on considerations of market conditions.

12. OTHERS:

12.1Capital risk management

The Company requires an adequate capital structure to enable the expansion and enhancement of its plant and equipment. Therefore, the Company manages its capital in a

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manner to ensure that it has sufficient and necessary financial resources and operating plan to fund its working capital needs, capital asset purchases, development expenditure, and debt service requirements and other business requirements associated with its existing operations over the next 12 months.

12.2 Financial instruments

(1) Financial risks on financial instruments

Financial risk management policies

The Company's activities expose it to a variety of financial risks. These financial risks included market risk (including foreign currency exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management strategy focuses on the unpredictability of financial markets and seeks to mitigate potential adverse effects on its financial performance.

The Company’s material financial activities are approved by the Board of Directors in accordance with relevant requirements and internal control mechanism, which requires the Company to comply with its financial operating policies and procedures that provide guiding principles for the overall financial risk management and accountability and separation of duties.

Significant financial risks and degrees of financial risks

A. Market risk

a.Foreign exchange risk
i.The Company’s sales, purchase and borrowing activities denominated in foreign currencies are exposed to foreign currency risk. The Company’s functional currency is New Taiwan dollars. The main foreign currencies of those thousand transactions are US dollars and JPY, etc. To protect against reductions in value and the volatility of future cash flows results from changes in foreign exchange rates, the Company hedges its foreign exchange risk exposure by using foreign currency loans and derivatives, such as forward exchange agreements. The usage of derivative financial instruments can assist the Company to reduce but not completely eliminate the influence of changes in foreign exchange rates.
ii.Sensitivity analysis of foreign currency risk

Items	December 31, 2024	December 31, 2024	December 31, 2024
	Foreign Currency	Exchange Rate	New Taiwan Dollars
Financial Assets	`$` 46,640 152,490	32`.`78 0`.`21	`$` 1,528,863 32,029
Monetary Items USD JPY

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Items	December 31, 2024	December 31, 2024	December 31, 2024
	Foreign Currency	Exchange Rate	New Taiwan Dollars
Non-monetary Items Investments accounted for using equity method USD Financial Liabilities
Monetary Items USD JPY Items
	Foreign Currency	Exchange Rate	New Taiwan Dollars
Financial Assets	`$` 49,686 168,246 58,370 16,274 27,185	30`.`71 0`.`22 30`.`71 30`.`71 0`.`22	`$` 1,525,865 36,585 1,792,547 499,771 5,911
Monetary Items USD JPY Non-monetary Items Investments accounted for using equity method USD Financial Liabilities
Monetary Items USD JPY

The Company is mainly exposed to US dollar and JPY. The sensitivity analysis for the Company is 1% increase/decrease in NTD against the relevant foreign currencies 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 1 % change in foreign currency rates. An increase/ decrease in profit before tax would be resulted where the NTD strengthens/ weakens 1% against the relevant currency with all other variables

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held constant in the amounts of $10,881 thousand and $10,568 thousand for the years ended December 31, 2024 and 2023, respectively.

b.Price risk

The Company is exposed to the price risk of funds and unlisted equity securities because these equity investments held by the Company are classified as either financial assets at fair value through profit/loss or financial assets at fair value through other comprehensive income.

The Company mainly invests in equity instrument of unlisted stocks. The prices of equity instrument of unlisted stocks would change due to the uncertainty of the future value.

If the prices of these equity securities had increased/decreased by 1%, the other comprehensive income before tax would have increased/decreased by $228 thousand and $239 thousand for the years ended December 31, 2024 and 2023, respectively, due to increase/decrease in fair value.

c. Interest rate risk

The carrying amounts of interest – bearing financial instruments held by the Company as of the reporting date are as follows:

Items	Carrying	Amounts
	December 31, 2024	December 31, 2023
Fair value interest rate risk Financial assets Net Cash flow interest rate risk Financial assets Financial liabilities Net	`$` 600	`$` 600
	`$` 600	`$` 600
	`$` 693,641 `(`1,715,172`)`	`$` 453,129 `(`1,701,813`)`
	`$` `(`1,021,531`)`	`$` `(`1,248,684`)`

i.Sensitivity analysis for instruments with fair value interest rate risk：

The Company does not classify any fixed-rate instruments as financial assets measured at fair value through profit and loss. In addition, the Company does not designate derivatives as hedge instruments under the fair value hedge accounting model. Therefore, the change in interest rate on the reporting date has no effect on profit or loss and other comprehensive income.

ii.Sensitivity analysis for instruments with cash flow interest rate risk：

The effective interest rates for the Company’s floating interest rate financial instruments are susceptible to the market interest rate, affecting the Company’s future cash flows. If the market interest rate increases (decreases) 1%, the profit

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before tax will increase (decrease) $10,215 thousand and $12,487 thousand for the years ended December 31, 2024 and 2023, respectively.

B. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from operation activities, primarily trade receivable, and from investing activities, primarily bank deposits and other financial instruments. Credit risk is managed separately for business related and financial related exposures.

a. Business - related credit risk
In order to maintain the credit quality of the trade receivables, the Company has established procedures to monitor and limit exposure to credit risk on trade receivables. Credit evaluation is performed taking into account relevant factors that may affects a customer’s paying ability, such as the customer’s financial condition and historical transaction records, internal and external credit rating and economic conditions.

The Company does not hold any collateral or other credit enhancement to hedge against the credit risk of financial assets.

b. Financial credit risk

The Company’s exposure to financial credit risk which pertaining to bank deposits and other financial instruments was evaluated and monitored by the Company’s treasury function. The Company only transacts with creditworthy counterparties and banks; therefore, no significant financial credit risk was identified.

i.Credit concentration risk

As of December 31, 2024 and 2023, the proportion of the accounts receivable exceeds 10% of the total accounts receivable, representing 28% and 38%, respectively. The credit concentration risk associated with other accounts receivable is relatively insignificant.

ii.Measurement of expected credit losses
(i) Accounts receivable: The Company applies simplified approach to its accounts receivable. Please refer to Note 6(3) for more information.
(ii) The criteria used to determine whether credit risk has increased significantly: The Company considered credit factors and reviewed relevant information associated with debtors to assess whether credit risks on financial instruments have increased significantly since initial recognition.
iii.Holding collateral and other credit enhancement to hedge against credit risk of financial assets: None.
iv.Credit risk of financial assets measured at amortized cost:
Please refer to Note 6(3) for information on the Company’s credit exposures associated with notes receivable and accounts receivable. Other financial instruments amortized at cost, such as cash and cash equivalents and other

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receivables, have low credit losses. After assessment, the Company determined that no material impairment occurred.

C. Liquidity risk
a.Liquidity risk management

The objective of the Company's management of liquidity risk is to maintain sufficient cash and cash equivalents, highly liquid securities, and banking facilities to ensure that the Company has sufficient financial flexibility for its operations.

b.Maturity analysis for financial liabilities

The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities:

Non-derivative Financial Liabilities		December 31, 2024	December 31, 2024	December 31, 2024
	Within 1 year	1-5 years	Over 5 years	Contract cash flows	Carrying amounts
Notes payable Accounts payable Other payables Lease liabilities Long-term loan (include current portion) Guarantee deposits Total	`$` 2,779 717,313 182,739 12,104 324,966 `-`	`$` `-` `-` `-` 36,562 1,433,681 `-`	`$` `-` `-` `-` 64,503 10,305 27	`$` 2,779 717,313 182,739 113,169 1,768,952 27	`$` 2,779 717,313 182,739 106,174 1,715,172 27
	`$` 1,239,901	`$` 1,470,243	`$` 74,835	`$` 2,784,979	`$` 2,724,204

Further information on maturity analysis for lease liabilities ：

December 31, 2024 Within 1 year 1-5 years 5-10 years 10-15 years Lease liabilities `$` 12,104`$` 36,562 `$` 47,220 `$` 17,283 December 31, 2023 Non-derivative Financial Liabilities Within 1 year 1-5 years Over 5 years Notes payable `$` 5,093 `$` `- $` `- $` Accounts payable 761,005 `-` `-` Other payables 189,012 `-` `-` Lease liabilities 12,159 37,878 73,615					December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024
	Within 1 year		1-5 years		5-10 years		10-15 years		15-20 years		Total undiscounted lease payment
	`$`	12,104	`$` 36,562		`$` 47,220		`$` 17,283		`$` `-`		`$` 113,169

		Within 1 year		1-5 years		Over 5 years `$` `-` `-` `-` 73,615			Contract cash flows		Carrying amounts
Notes payable Accounts payable Other payables Lease liabilities		`$` 5,093 761,005 189,012 12,159		`$` `-` `-` `-` 37,878				`$`	5,093 761,005 189,012 123,652	`$` 5,093 761,005 189,012 115,379

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December 31, 2023

Non-derivative Financial Liabilities	Within 1 year	1-5 years	Over 5 years	Contract cash flows	Carrying amounts
Long-term loan `(`include current portion`)` Guarantee deposits Total	`$` 446,439 `-`	`$` 1,278,076 `-`	`$` 35,349 27	`$` 1,759,864 27	`$` 1,701,813 27
	`$` 1,413,708	`$` 1,315,954	`$` 108,991	`$` 2,838,653	`$` 2,772,329

Further information on maturity analysis for lease liabilities ：

Lease liabilities			December 31, 2023	December 31, 2023
	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Total undiscounted lease payment
	`$` 12,159	`$` 37,878	`$` 46,959	`$` 26,656	`$` `-`	`$` 123,652

The Company does not expect the cash flows on the maturity analysis to occur significantly earlier or with a considerable difference from the actual amounts.

12.3 Category of financial instruments

Financial assets Financial assets measured at amortized cost (Note 1) Financial assets at fair value through other comprehensive income Financial liability Financial liabilities measured at amortized cost (Note 2)	December 31, 2024	December 31, 2023
	`$` 2,573,711 22,809 2,618,030	`$` 1,798,909 23,938 2,656,950

Note 1: The balances included financial assets measured at amortized cost, which comprise

cash and cash equivalents, notes receivable, accounts receivable, other receivable and refundable deposits.

Note 2: The balances included financial liabilities measured at amortized cost, which comprise notes payable, accounts payable, other payables, long-term loan (include current portion) and guarantee deposits received.

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12.4 Fair value information of financial instruments

(1) Definition of fair value measurements are grouped into Level 1 to 3 as follows:
Level 1: Relevant inputs are quoted prices in active markets for identical assets or liabilities that the entity can access on the measurement date
Level 2: Inputs other than quoted prices included within Level 1 are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs are unobservable inputs that used to measure fair value to the extent when relevant observable inputs are not available.
(2) Financial instruments that are not measured at fair value
The fair value of the Company’s financial instruments not measured at fair value including cash and cash equivalents, accounts receivable, other financial assets, refundable deposits, short-term loan, accounts payables, long-term loan (including current portion) and other financial liabilities approximate their fair value.
(3) Financial instruments that are measured at fair value:

The financial instruments that are measured at fair value on a recurring basis, the information of fair value is as follow:

Items		December 31, 2024	December 31, 2024
	Level 1	Level 2	Level 3	Total
Assets Recurring fair value measurements Financial assets at FVTOCI - noncurrent Equity instruments Unlisted stocks Total Items	`$` `-`	`$` `-`	`$` 22,809	`$` 22,809
	`$` `-`	`$` `-`	`$` 22,809	`$` 22,809
		December 31, 2023
	Level 1	Level 2	Level 3	Total
Assets Recurring fair value measurements Financial assets at FVTOCI - noncurrent Equity instruments Unlisted stocks Total	`$` `-`	`$` `-`	`$` 23,938	`$` 23,938
	`$` `-`	`$` `-`	`$` 23,938	`$` 23,938

～ 74 ～

(4) The methods and assumptions the Company used to measure fair value are as follows:
A. The Company measures the fair values of its financial instruments with an active market using their quoted prices in the active market.
B. Fair value of equity investment of unlisted stocks without active market was estimated through the market approach that is mainly referenced to the same type of companies’ evaluation, quotes from third parties, net assets and state of operation. The significant and unobservable input parameter for assessing the unlisted stocks mainly relates to liquidly discount rate. Since the possible changes of liquidity discount rate may not cause significant influence on financial standing, the quantitative information will not be disclosed.
C. Fair value of other financial assets and financial liabilities (except for aforementioned) are determined in accordance with generally accepted pricing model based on the discounted cash flow analysis.
(5) Transfer between Level 1 and Level 2 of the fair value hierarchy: none.
(6) Changes in level 3 instruments:

Items	2024	2023
	`$` 23,938 `(`1,129`)`	`$` 21,023 2,915

13. SUPPLEMENTARY DISCLOSURES

13.1 Significant transactions information
(1) Financings provided to others: None;
(2) Endorsement and guarantee provided to others: Please see Table 1 attached;
(3) Marketable securities held ( excluding investments in subsidiaries, associates and joint ventures at the end of the period ) : Please see Table 2 attached;
(4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None;
(5) Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: None;
(6) Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None;
(7) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 3 attached;
(8) Receivables from related parties amounting to at least NT$100 million or 20% of the

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paid- in capital: Please see Table 4 attached;

(9) Information on the derivative instrument transactions: None;
(10) The business relationship between the parent and the subsidiaries and significant transaction between then: Please see Table 5 attached;
13.2 Information on investees : Please see Table 6 attached;
13.3 Information on investment in Mainland China
(1) The name of the investee in Mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, ending balance, amount received as dividends from the investee, and the limitation on investee: Please see Table 7 attached;
(2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland China on financial reports: Please see Table 5 attached.
13.4 Information of major shareholder (Names, number of shares and ownership of shareholders whose equity interest is greater than 5%): None.

14. SEGMENT INFORMATION

The company has provided the segment information disclosure in the consolidated financial statements for the year ended December 31, 2024.

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SDI CORPORATION

ENDORSEMENTS / GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2024

TABLE 1

Amounts in Thousands of New Taiwan Dollars

NO.	Endorsement /Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party	Maximum Balance for the Period	Maximum Balance for the Period	Ending Balance	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship
0	SDI	SDI JIANGSU	`(`3`)`	NTD 3,174,852	NTD	1,370,945	NTD	1,370,945	NTD 597,946	NTD`-`	19`.`56`%`	NTD 3,527,613	Y	N	Y
					USD RMB	14,000 200,000	USD RMB	14,000 200,000

Note 1 ： The numbers filled in for the financing company represent the following ：

(1) The Company is ‘0’.

Note 2 ： Relationships between the endorser/guarantor and the party being endorsed/guaranteed ：

(1) Trading parties.
(2) The Company direct and indirect owns over 50% ownership of subsidiaries.
(3) The Company and its subsidiaries own over 50% ownership of the investee company.

Note 3 ： The total amount of the guarantee provided by SDI to any individual entity shall not exceed forty-five percent (45%) of Company’s net worth.

Note 4 ： The total amount of guarantee shall not exceed fifty percent (50%) of Company’s net worth.

Note 5 ： "Y” represents the endorsement and guarantee provide by listed parent company to subsidiaries, subsidiaries to listed parent company, or take place in Mainland China.

SDI CORPORATION

MARKETABLE SECURITIES HELD

DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise

TABLE 2

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	DECEMBER 31, 2024	DECEMBER 31, 2024	DECEMBER 31, 2024		Remarks
				Shares/Units `(`In Thousands`)`	Carrying Value	Percentage of Ownership	Fair Value
SDI	Chang Hwa Golf Club SDI ELECTRONICS JAPAN CO., LTD SDI JAPAN CO., LTD	－ Please refer to Note 7A. Please refer to Note 7A.	Financial Assets at Fair Value through Other Comprehensive Income－ Noncurrent Financial Assets at Fair Value through Other Comprehensive Income－ Noncurrent Financial Assets at Fair Value through Other Comprehensive Income－ Noncurrent	90 30 200	`$`10,631 9,059 3,119	0`.`24`%` 15`.`00`%` 19`.`61`%`	`$`10,631 9,059 3,119

SDI CORPORATION

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2024

TABLE 3

Amounts in Thousands of New Taiwan Dollars

Company Name	Related Party	Nature of Relationships	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Payable or Receivable	Notes/Accounts Payable or Receivable	Remarks
			Purchases/ Sales	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
SDI JIANGSU TEC Brite Technology SDI	SDI SDI SDI Electronics JAPAN CO., LTD.	The ultimate parent of the Company The ultimate parent of the Company Other related parties	Sales Sales Sales	$ 643,861 242,698 324,835	21`.`73`%` 33`.`49`%` 4`.`00`%`	As prescribed by the agreement As prescribed by the agreement As prescribed by the agreement	`－` `－` `－`	`－` `－` `－`	$ 53,304 74,440 136,729	4`.`05`%` 33`.`49`%` 10`.`40`%`

SDI CORPORATION

RECEIVABLES FROM RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2024

TABLE 4	TABLE 4	TABLE 4	TABLE 4	TABLE 4	TABLE 4	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars
Creditor	Counterparty	Relationship	General ledger account	Balance	Turnover rate	Overdue receivables		Subsequent collections	Allowance for bad doubtful accounts
						Amount	Action taken
SDI	SDI Electronics JAPAN CO., LTD	Please refer to Note 7A.	Account Receivable	$ 136,729	2.38	$`-`	`-`	$ 64,600	$`-`

SDI CORPORATION

SUBSIDIARIES INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTION

FOR THE YEAR ENDED DECEMBER 31, 2024

TABLE 5 Amounts in Thousands of New Taiwan Dollars

No.	Company Name	Counter Party	Nature of Relationship	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
				Financial Statements Item	Amount	Terms	Percentage of Consolidated Net Revenue or Total Assets
0 1 2 3	SDI SDI (JIANGSU) Chao Shin Metal TEC Brite Technology	SDI JIANGSU SDI JIANGSU SDI JIANGSU Chao Shin Metal Chao Shin Metal Chao Shin Metal TEC Brite Technology TEC Brite Technology TEC Brite Technology SDI SDI SDI SDI SDI SDI JIANGSU SDI JIANGSU SDI SDI Chao Shin Metal	1 1 1 1 1 1 1 1 1 2 2 2 2 2 3 3 2 2 3	Sales revenue Accounts receivable Other receivables Sales revenue Accounts receivable Other receivables Sales revenue Accounts receivable Other receivables Sales revenue Accounts receivable Sales revenue Processing revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue	$ 235,541 66,078 298 11,146 703 824 205 2 8,977 643,861 53,304 18,744 3,083 4,144 53,311 12,154 242,698 74,440 65	Note 3 Note 3 `－` Note 3 Note 3 `－` Note 3 Note 3 `－` Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3	2`.`18`%` 0`.`53`%` `－` 0`.`10`%` 0`.`01`%` 0`.`01`%` `－` `－` 0`.`07`%` 5`.`95`%` 0`.`43`%` 0`.`17`%` 0`.`03`%` 0`.`03`%` 0`.`49`%` 0`.`10`%` 2`.`24`%` 0`.`59`%` `－`

Note 1: The numbers filled in for the transaction company represent the follows:

(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationships between transaction companies and counterparties are classified into the following three categories as listed below ：
‘1’represents parent company to subsidiary.
‘2’ represents subsidiary to parent company.
‘3’ represents subsidiary to subsidiary.
Note 3: Sale price with related parties were determined and negotiated referring to related market price.

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SDI CORPORATION

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE

DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars

TABLE 6

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2024	Balance as of December 31, 2024	Balance as of December 31, 2024	Net Income (Losses) of the Investee	Share of Profits/Losses of Investee	Remarks
				December 31, 2024	December 31, 2023	Shares	Percentage of Ownership	Carrying Value
SDI	CHAO SHIN METAL INDUSTRIAL CORP. TEC BRITE TECHNOLOG Y CO., LTD SHUEN DER `(`B`.`V`.`I`.)`	Taiwan Taiwan BVI	Smelting and rolling of metal strips Manufacturing of electronic components and international trade Holding Company	`$`106,953 98,969 753,940	`$`106,953 98,969 706,330	14,810 9,897 8,920	84`.`62`%` 54`.`98`%` 100`.`00`%`	`$`257,789 389,919 1,869,465	`$`19,275 118,201 17,429	`$`19,703 62,534 17,818	Note 1 Note 1 Note 1,2

Note 1：The difference of the shares of profits/losses of investee is recognized as unrealized gross profit. Note 2：Please refer to Table 7 for information of investees of China Mainland.

SDI CORPORATION

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2024

TABLE 7	TABLE 7	TABLE 7							Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars	Amounts in Thousands of New Taiwan Dollars
Investee Company	Main Businesses and Products		Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1,2024		Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31,2024	Net Income (Losses) of the Investee Company	Percentage of Ownership	Shares of Profits/ Losses	Carrying Amount as of December 31, 2024	Accumulated Inward Remittance of Earnings as of December 31,2024	Remarks
							Outflow	Inflow
SDI Jiangsu	Manufacture, process and sales of integrated circuit frame, blades, stationary, etc.		NTD 975,205	Note 1	NTD 600,380		NTD`-`	NTD`-`	NTD 600,380	NTD 17,577	100`.`00`%`	NTD 17,429	NTD 1,900,667	NTD`-`
			USD 29,750		USD 19,550				USD 19,550	USD 548
SDS	Office supplies (Blades, stationery, etc.) manufacturing and processing		NTD 172,095	Note 4	NTD 105,950		NTD`-`	NTD`-`	NTD 105,950	－	100`.`00`%`	NTD`-`	NTD`-`	NTD`-`
			USD 5,250		USD 3,450				USD 3,450	－

Accumulated Investment in Mainland China as of December 31,2024		Investment Amounts Authorized by Investment Commission,MOEA				Upper Limit	on Investment
NTD 753,940		NTD 1,147,300				NTD 4,451,089
USD 23,000		USD 35,000

Note 1：Reinvesting in the Mainland China through third-region companies. Note 2：Amounts is recognized based on the audited financial statements.

Note 3：Foreign currencies aforementioned are translated into NTD using the exchange rate at the reporting date or average exchange rate for the year ended. Note 4：SDI Jiangsu, a subsidiary of SHUEN DER (B.V.I.) invested in mainland China, was split in 2024, please refer to Table 6,(8),3.

THE CONTENTS OF STATEMENTS OF MAJOR

ACCOUNTING ITEMS

ITEM
MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES
AND EQUITY
STATEMENT OF CASH AND CASH EQUIVALENTS
STATEMENT OF NOTES RECEIVABLE, NET
STATEMENT OF ACCOUNTS RECEIVABLE, NET
STATEMENT OF INVENTORIES
STATEMENT OF CHANGES IN INVESTMENTS
ACCOUNTED FOR USING EQUITY METHOD
STATEMENT OF NOTES PAYABLES
STATEMENT OF ACCOUNTS PAYABLES
STATEMENT OF LONG-TERM LOANS
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF NET REVENUE
STATEMENT OF COST OF REVENUE
STATEMENT OF MANUFACTURING EXPENSES
STATEMENT OF OPERATING EXPENSES

STATEMENT INDEX

1
2
3
4
5
6
7
8
9
10
11
12

～ 84 ～

SDI Corporation

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars, Unless Specified Otherwise `)`

Statement 1

Statement 1
Item Cash on hand Cash in banks New Taiwan Dollars Checking accounts deposits Demand deposits Foreign currency Demand deposits Subtotal Total	Description `(`US`)` 11,494,790 `(`EUR`)` 661,710 `(￥)` 54,467,577 `(`SGD`)` 90,445 `(`THB`)` 350,527 `(`CHF`)` 2,753 `(`RMB`)` 4,041	Amount
		`$` 1,053
		4,043 273,625 376,799 22,597 11,441 2,183 336 100 18
		691,142
		`$` 692,195

Note ： USD $1 = NT $32.78

JPY $1 = NT $0.21005 EUR $1 = NT $34.15 CHF $1 = NT $36.31 SGD $1 = NT $24.14 RMB $1 = NT $4.48 THB $1 = NT $0.96

～ 85 ～

SDI Corporation

STATEMENT OF NOTES RECEIVABLE, NET

DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars `)`

Statement 2

Statement 2
Client Name Client A Client B Client C Client D Client E Client F Others`(`Note`)` Subtotal Total	Description Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods	Amount `$` 5,912 5,383 5,211 3,379 2,425 1,734 9,967 `$` 34,011 `$` 34,011	Remark

Note ： The amount of individual client included in others does not exceed 5% of the account balance.

～ 86 ～

SDI Corporation

STATEMENT OF ACCOUNTS RECEIVABLE, NET

DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars `)`

Statement 3

Statement 3
Client Name Accounts receivable - nonrelated parties Client G Client H Client I Others (Note) Subtotal Less`：`loss allowance Total	Description Payment for goods Payment for goods Payment for goods Payment for goods	Amount `$` 162,729 113,662 57,866 734,967 `$` 1,069,224 `(`7,953`)` `$` 1,061,271	Remark

Note ： The amount of individual client included in others does not exceed 5% of the account balance.

～ 87 ～

SDI Corporation

STATEMENT OF INVENTORIES

DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars `)`

Statement 4

Statement 4
Item Work-in-process Finished goods Raw materials Merchandise Inventory in transit Mold parts and merchandise Total	Description	Amount Cost Net Realizable Value `＄` 816,422`$` 892,458 752,809 1,074,321 511,206 613,010 82,514 111,141 19,477 19,477 150,453 151,177 `$` 2,332,881`$` 2,861,584	Remark
		Cost `＄` 816,422 752,809 511,206 82,514 19,477 150,453

		`$` 2,332,881

～ 88 ～

SDI Corporation

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars, Thousands of Shares `)`

Statement 5

Investees	Balance, January 1, 2024	Balance, January 1, 2024	Addition`(`Note1`)`	Addition`(`Note1`)`	Decrease`(`Note2`)`	Decrease`(`Note2`)`	Balance, December 31, 2024	Balance, December 31, 2024	Balance, December 31, 2024	Net Assets Value
	Share Amount		Shares	Amount	Shares	Amount	Shares	%	Amount
Chao Shin Metal 14,810 TEC Brite Technology 9,897 SHUEN DER`(`B`.`V`.`I`)` 8,920 Total		`$`242,225 376,751 1,753,883	`-` `-` `-`	`$` 20,747 62,653 115,582	`-` `-` `-`	`$` `(`5,183`)` `(`49,485`)` `-`	14,810 9,897 8,920	84`.`62`%` 54`.`98`%` 100`%`	`$` 257,789 389,919 1,869,465	`$`261,386 Nil 392,852 Nil 1,902,897 Nil `$`2,557,133
		`$`2,372,859		`$` 198,982		`$` `(`54,668`)`			`$` 2,517,173

Note 1 ： Information of Addition is as follows ：

Share of profit or loss of subsidiaries accounted for using equity method `(`Note 3`)` Realized gain or loss on upstream transactions Exchange differences arising from translation of foreign operations Share of other comprehensive income of subsidiaries accounted for using equity method Total Note 2`：`Information ofDecreaseis as follows: Receiving cash dividends of investees Total	`$`100,055 4,843 92,921 1,163
	`$`198,983
	`$` 54,668
	`$` 54,668

Note 3 ： Amounts includes $98,844 thousand from the Company’s share of subsidiaries’ profits or losses accounted for using the equity method and $ 1,211thousand from the deferred income tax of unrealized profit under upstream transactions recognized in parent company only financial statements.

～ 89 ～

SDI Corporation

STATEMENT OF NOTES PAYABLE

DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars `)`

`(`In Thousands of New Taiwan Dollars`)`
Statement 6 Vendor Name Vendor A Vendor B Vendor C Vendor D Vendor E Vendor F Others`(`Note`)` Total	Description	Amount `$` 776 537 525 315 170 161 295 `$` 5,093	Remark
	Expense Expense Expense Expense Expense Expense

Note ： The amount of individual vendor included in others does not exceed 5% of the account balance.

～ 90 ～

SDI Corporation

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars `)`

Statement 7

Statement 7
Vendor Name	Description	Amount `$` 122,901 112,799 60,051 291,179 `$` 586,930	Remark
Vendor G Vendor H Vendor I Others`(`Note`)` Total	Payment for material Payment for material Payment for material

Note ： The amount of individual vendor included in others does not exceed 5% of the account balance.

～ 91 ～

SDI Corporation

STATEMENT OF LONG-TERM LOANS

DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars `)`

Statement 8

Statement 8
Creditor Mizhuo Bank Mega International Commercial Bank Mega International Commercial Bank HSBC Bank Bank of Taiwan Bank of Taiwan Bank of Taiwan E.SUN Bank E.SUN Bank E.SUN Bank CTBC Bank Chang Hwa Commercial Bank Chang Hwa Commercial Bank Chang Hwa Commercial Bank Subtotal Less`：`Current portion Less`：`Discount on subsidies for project loans Total	Descriptio n Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans Unsecured loans	Amount	Contract Period	Collateral Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil	Rema rk
		`$` 280,000 133,157 70,000 200,000 400,000 81,290 66,667 43,667 116,667 8,333 50,000 120,000 229,787 19,167	2026`.`12`.`20 2026`.`09`.`15 2027`.`07`.`30 2026`.`03`.`08 2026`.`09`.`19 2026`.`12`.`15 2026`.`08`.`15 2027`.`08`.`15 2025`.`02`.`15 2025`.`01`.`15 2026`.`12`.`31 2030`.`02`.`15 2028`.`09`.`15 2026`.`11`.`15
		`$` 1,718,735 `(`297,387`)` `(`3,563`)`
		`$` 1,280,490

Note ： The range of interest rates is 1.23% ～ 2.03%

～ 92 ～

SDI Corporation

STATEMENT OF NET REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2024

`(` In Thousands of New Taiwan Dollars `)`

Statement 9

Statement 9
Item	QTY`(`in thousand PCE`)` 21,887 87,700 6,143 57,394thousand KPC 5,889 thousand KPC	Amount	Remark
Stationery products Correction tapes Scissors Staplers Others Subtotal Electronic products Electronic monomers Electronic integrated circuits Others Subtotal Others Total Sales allowances Net revenue		`$` 350,982 338,415 174.139 223,722
		1,159,585
		4,539,450 2,146,648 225,268
		6,911,366
		167,798
		8,238,749 `(`108,700`)`
		`$` 8,130,049

～ 93 ～

SDI Corporation

STATEMENT OF COST OF REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 10

Statement 10
Item Cost of purchased goods sold Balance, beginning of year Purchase Balance, end of year Transferred to raw materials Scrapped losses Other Cost of self-manufactured goods sold Raw materials: Balance, beginning of year Purchase Transferred in from outsourcing Balance, end of year Raw materials sold Scrapped losses Transferred to expenses Direct labor Manufacturing expenses Manufacturing cost Add`：`Work in process, beginning of year Less`：`Work in process, end of year Scrapped losses Transferred to expenses Cost of finished goods Add`：`Finished goods, beginning of year Less`：`Finished goods, end of year Scrapped losses Transferred to assets Transferred to expenses Total cost of goods sold Other cost of goods sold Molds and parts sold Raw materials sold Others Unallocated production overheads Scrapped losses Revenue from sale of obsolete inventories	Amount
	Subtotal `$` 77,599 945,170 `(`82,514`)` `(`237,019`)` `(`131`)` `(`202`)` 836,414 3,967,107 237,019 `(`530,683`)` `(`61,572`)` `(`18,802`)` `(`66,418`)` 89,976 `(`45,786`)`	Total
		`$` 702,903
		4,363,065 429,941 1,619,990
		`$` 6,412,996 770,590 `(`816,422`)` `(`17,160`)` `(`50`)`
		6,349,954 667,502 `(`752,809`)` `(`53,883`)` `(`203,134`)` `(`9`)`
		6,710,524
		120,372 61,572 `(`2,000`)` 35 44,190

～ 94 ～

Less ： Revenue from sale of scraps Total cost of revenue

		`(`881`)`
	`$`	6,933,812

～ 95 ～

SDI Corporation

STATEMENT OF MANUFACTURING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 11

Statement 11
Item Indirect labor Repair and maintenance expenses Utilities expenses Insurance expenses Depreciation Consumable expenses Others (Note) Total	Description	Amount `$` 302,748 219,862 219,409 83,0043 381,643 151,078 262,207 `$` 1,619,990	Remark

Note ： The amount of each item in others does not exceed 5% of the account balance.

～ 96 ～

SDI Corporation

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 12 Item Salaries Shipping expenses Insurance expenses Depreciation Export charges Others (Note) Total	Marketing `$` 68,445 35,959 8,166 1,613 30,382 62,023 `$` 206,588	Administrative `$` 117,716 21 8,151 24,636 `-` 56,278 `$` 206,802	R&D `$` 100,603 324 9,981 8,353 `-` 64,218 `$` 183,479	Total
				`$` 286,764 36,304 26,298 34,602 30,382 182,519
				`$` 596,869

Note ： The amount of each item in others does not exceed 5% of the account balance.

～ 97 ～

AI assistant

SDI — Audit Report / Information 2024

52022_rns_2024-11-11_72485b74-66c8-4656-a0a6-2a6e4d48ac6c.pdf

SDI Corporation

國富浩華聯合會計師事務所

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

1 . Valuation of Inventory Impairment

Description

How our audit addressed the matter

2 . Revenue Recognition

Description

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

SDI Corporation

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR YEARS ENDED DECEMBER 31, 2024 AND 2023

SDI Corporation

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR YEARS ENDED DECEMBER 31, 2024 AND 2023

SDI Corporation

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

1. ORGANIZATION AND OPERATIONS

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

3.2 Effect of new issuances and amendments to IFRSs endorsed by the FSC but not yet adopted by the Company

3.3 The IFRSs issued by the IASB but not yet endorsed by the FSC:

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

4.1 Statement of Compliance

4.2 Basis of Preparation

4.3 Foreign Currencies

4.4 Classification of Current and Noncurrent Assets and Liabilities

4.5 Cash and cash equivalents

4.6 Financial Instruments

A. Financial assets

B. Equity instruments

C. Financial liabilities

D. Modification of Financial Instruments

4.7 Inventories

4.8 Investments Accounted for Using the Equity Method

4.9 Property, Plant and Equipment

4.10 Leases

Lease liabilities

4.11 Investment Property

4.12 Intangible Assets

4.13 Impairment of non-financial assets

4.14 Employee Benefits

D. Termination benefits

4.15 Capital Stock and Treasury Stock

4.16 Income Tax

4.18 Borrowing Costs

4.19 Government Grants

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

5.1 Critical judgments in applying accounting policies

5.2 Critical accounting estimation and assumption

D. Evaluation of inventories

6. CONTENTS OF SIGNIFICANT ACCOUNTS

6.1 CASH AND CASH EQUIVALENTS

6.2 NOTES RECEIVABLE

6.3 ACOUNTS RECEIVABLE

December 31, 2024

December 31, 2023

6.4 INVENTORIES AND COST OF SALES

6.5 PREPAYMENTS

6.6 OTHER FINANCAIL ASSETS – CURRENT

6.7 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE

INCOME - NON-CURRENT

6.8 INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

6.9 PROPERTY, PLANT AND EQUIPMENT

6.10 LEASE AGREEMENT

(4) Other lease information

SDI Audit Report / Information 2024

1 `.` Valuation of Inventory Impairment

2 `.` Revenue Recognition