Shihlin Electric & Engineering Corp. and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2025 and 2024 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders
Shihlin Electric & Engineering Corp.

Introduction

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

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2025 and 2024, the combined total assets of these non-significant subsidiaries were NT$9,164,043 thousand and NT$8,026,881 thousand, respectively, representing 16% and 13%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$3,647,251 thousand and NT$3,093,067 thousand, respectively, representing 19% and 16%, respectively, of the consolidated total liabilities; for the three months ended March 31, 2025 and 2024, the amounts of the combined comprehensive income of these non-significant subsidiaries were NT$218,859 thousand and NT$374,695 thousand, respectively, representing (54%) and 5%, respectively, of the consolidated total comprehensive income. Also, as stated in Note 12 to the consolidated financial statements, as of March 31, 2025 and 2024, the investments accounted for using the equity method were NT$6,021,910 thousand and NT$8,151,297 thousand, respectively. For the three months ended March 31, 2025 and 2024, the share of (loss) profit of the associates was NT$(11,682) thousand and NT$16,369 thousand, respectively, of the Group's consolidated net income. For the three

months ended March 31, 2025 and 2024, the share of comprehensive (loss) income of the associates was NT$(647,322) thousand and NT$2,140,008 thousand, respectively, of the Group's consolidated comprehensive income and these investment amounts were based on the investees' unreviewed financial statements.

Qualified Conclusion

Based on our reviews and the reports of other auditors (refer to the other matter paragraph), except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and investees accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Other Matter

We did not review the financial statements of certain associates of the Group as of and for the three months ended March 31, 2025 and 2024, which were reflected in the accompanying consolidated financial statements using the equity method of accounting, but such financial statements were reviewed by other auditors whose reports have been furnished to us. Our conclusion, insofar as it relates to the amounts included in the Group's consolidated financial statements for such associates, is based solely on the reports of other auditors. As of March 31, 2025 and 2024, the aforementioned investments accounted for using the equity method amounted to NT$6,414,853 thousand and NT$9,445,896 thousand, respectively, representing 11% and 16%, respectively, of the Group's consolidated total assets. For the three months ended March 31, 2025 and 2024, the Group's share of (loss) profit of such associates amounted to NT$(81,380) thousand and NT$337,477 thousand, respectively, representing (5%) and 22%, respectively, of the Group's consolidated profit before income tax. For the three months ended March 31, 2025 and 2024, the Group's share of other comprehensive (loss) income of such associates amounted to NT$(1,039,365) thousand and NT$3,723,852 thousand, respectively, representing 256% and 51%, respectively, of the Group's consolidated total comprehensive income.

The engagement partners on the reviews resulting in this independent auditors’ review report are Yao-Lin Huang and Tung-Feng Lee.

Deloitte & Touche
Taipei, Taiwan
Republic of China

May 8, 2025

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally applied in the Republic of China.

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

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)

	March 31, 2025		December 31, 2024		March 31, 2024
ASSETS	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 3,571,114	6	$ 3,370,646	6	$ 2,936,389	5
Contract assets - current (Note 22)	1,674,022	3	1,585,314	3	1,923,345	3
Notes receivable (Notes 9, 22 and 29)	1,394,551	2	982,689	1	1,098,057	2
Trade receivables (Notes 9 and 22)	6,608,979	12	6,409,873	11	7,647,656	13
Trade receivables from related parties (Notes 22 and 29)	37,389	-	129,057	-	93,527	-
Other receivables	8,000	-	9,916	-	13,013	-
Other receivables from related parties (Note 29)	687,976	1	58,116	-	240,301	-
Inventories (Note 10)	10,143,496	18	9,853,327	17	8,155,155	14
Other current assets (Notes 16, 29 and 30)	1,845,335	3	2,175,058	4	1,688,302	3
Total current assets	25,970,862	45	24,573,996	42	23,795,745	40
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Note 7)	872,937	2	911,580	2	931,365	1
Financial assets at fair value through other comprehensive income - non-current (Note 8)	2,907,611	5	3,050,503	5	2,840,199	5
Investments accounted for using the equity method (Notes 12 and 30)	12,436,763	22	14,696,849	25	17,597,193	29
Property, plant and equipment (Notes 13 and 30)	7,493,942	13	7,522,906	13	7,329,526	12
Right-of-use assets (Note 14)	196,003	-	194,355	-	187,920	-
Investment properties (Notes 15 and 30)	6,962,333	12	6,986,968	12	7,060,151	12
Deferred tax assets	289,772	1	317,111	1	340,778	1
Other non-current assets (Note 30)	141,817	-	140,191	-	119,990	-
Total non-current assets	31,301,178	55	33,820,463	58	36,407,122	60
TOTAL	$ 57,272,040	100	$ 58,394,459	100	$ 60,202,867	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 17 and 30)	$ 137,858	-	$ 932,252	2	$ 778,511	1
Contract liabilities - current (Notes 22 and 29)	5,499,201	10	5,281,790	9	5,733,803	10
Notes payable	258,406	1	252,224	1	190,799	-
Trade payables	6,426,106	11	6,280,928	11	5,871,809	10
Trade payables to related parties (Note 29)	243,790	-	191,689	-	280,295	-
Other payables (Note 18)	1,568,080	3	1,893,694	3	1,494,798	3
Other payables to related parties (Note 29)	12,187	-	36,620	-	13,464	-
Current tax liabilities	704,747	1	442,757	1	533,196	1
Provisions - current (Note 19)	1,592,997	3	1,837,632	3	1,845,662	3
Lease liabilities - current (Note 14)	9,560	-	9,016	-	6,395	-
Other current liabilities	200,046	-	213,488	-	174,440	-
Total current liabilities	16,652,978	29	17,372,090	30	16,923,172	28
NON-CURRENT LIABILITIES
Provisions - non-current (Note 19)	33,540	-	32,671	-	29,014	-
Deferred tax liabilities	2,357,835	4	2,325,680	4	2,404,067	4
Lease liabilities - non-current (Note 14)	9,540	-	9,293	-	2,703	-
Deferred revenue - non-current	47,194	-	46,841	-	47,243	-
Net defined benefit liability - non-current (Note 20)	122,494	1	141,723	-	248,055	1
Other non-current liabilities	89,513	-	91,078	-	97,383	-
Total non-current liabilities	2,660,116	5	2,647,286	4	2,828,465	5
Total liabilities	19,313,094	34	20,019,376	34	19,751,637	33
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION
(Notes 21 and 26)
Ordinary shares	5,209,722	9	5,209,722	9	5,209,722	9
Capital surplus	2,787,256	5	2,695,304	4	2,659,067	4
Retained earnings
Legal reserve	3,545,218	6	3,545,218	6	3,298,427	5
Special reserve	5,136,954	9	5,136,954	9	5,136,954	9
Unappropriated earnings	14,506,944	26	13,367,159	23	13,211,607	22
Total retained earnings	23,189,116	41	22,049,331	38	21,646,988	36
Other equity	5,933,055	10	7,583,567	13	10,143,798	17
Total equity attributable to owners of the Corporation	37,119,149	65	37,537,924	64	39,659,575	66
NON-CONTROLLING INTERESTS (Notes 21 and 26)	839,797	1	837,159	2	791,655	1
Total equity	37,958,946	66	38,375,083	66	40,451,230	67
TOTAL	$ 57,272,040	100	$ 58,394,459	100	$ 60,202,867	100

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

(With Deloitte & Touche review report dated May 8, 2025)

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended March 31
	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 22 and 29)
Sales	$ 9,019,619	88	$ 9,119,644	92
Rental revenue	135,142	1	131,739	1
Construction revenue	1,136,937	11	663,564	7
Other operating revenue	3,000	-	3,000	-
Total operating revenue	10,294,698	100	9,917,947	100
OPERATING COSTS (Notes 10, 23 and 29)
Cost of goods sold	6,836,323	66	7,487,602	76
Rental cost	49,379	-	49,537	1
Construction cost	979,537	10	612,453	6
Other operating cost	3,521	-	2,565	-
Total operating costs	7,868,760	76	8,152,157	83
GROSS PROFIT	2,425,938	24	1,765,790	17
OPERATING EXPENSES (Notes 9, 23 and 29)
Selling and marketing expenses	305,019	3	339,479	3
General and administrative expenses	312,151	3	315,943	3
Research and development expenses	149,912	2	147,293	2
Expected credit loss on trade receivables	236	-	6,415	-
Total operating expenses	767,318	8	809,130	8
PROFIT FROM OPERATIONS	1,658,620	16	956,660	9
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 23)	5,140	-	7,719	-
Other income (Notes 23 and 29)	1,263	-	1,255	-
Other gains and losses (Notes 23 and 29)	14,967	-	227,168	2
Finance costs (Note 23)	(4,517)	-	(5,178)	-
Share of profit or loss of associates accounted for using the equity method	(93,062)	(1)	353,846	4
Total non-operating (loss) income	(76,209)	(1)	584,810	6
PROFIT BEFORE INCOME TAX	1,582,411	15	1,541,470	15
INCOME TAX EXPENSE (Note 24)	330,905	3	327,284	3
NET PROFIT FOR THE PERIOD	1,251,506	12	1,214,186	12
			(Continued)

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended March 31
	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Unrealized (loss) gain on investments in equity instruments at fair value through other comprehensive income	$ (133,892)	(1)	$ 408,643	4
Share of other comprehensive (loss) income of associates accounted for using the equity method	(1,593,625)	(16)	5,510,014	56
	(1,727,517)	(17)	5,918,657	60
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations	85,672	1	236,955	2
Income tax relating to items that may be reclassified subsequently to profit or loss (Note 24)	(15,430)	-	(43,242)	-
	70,242	1	193,713	2
Other comprehensive (loss) income for the period, net of income tax	(1,657,275)	(16)	6,112,370	62
TOTAL COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD	$ (405,769)	(4)	$ 7,326,556	74
NET PROFIT ATTRIBUTABLE TO:
Owners of the Corporation	$ 1,222,966	12	$ 1,180,023	12
Non-controlling interests	28,540	-	34,163	-
	$ 1,251,506	12	$ 1,214,186	12
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Corporation	$ (427,352)	(4)	$ 7,233,826	73
Non-controlling interests	21,583	-	92,730	1
	$ (405,769)	(4)	$ 7,326,556	74
				(Continued)

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended March 31
	2025		2024
	Amount	%	Amount	%
EARNINGS PER SHARE (Note 25)
Basic	$ 2.35		$ 2.27
Diluted	$ 2.34		$ 2.26

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

(With Deloitte & Touche review report dated May 8, 2025) (Concluded)

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Corporation
	Ordinary Shares	Capital Surplus	Retained Earnings				Exchange Differences on Translating the Financial Statements of Foreign Operations	Other Equity Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total	Total	Non-controlling Interests	Total Equity
			Legal Reserve	Special Reserve	Unappropriated Earnings	Total
BALANCE, JANUARY 1, 2024	$ 5,209,722	$ 2,658,913	$ 3,298,427	$ 5,136,954	$ 12,003,033	$ 20,438,414	$ (326,477)	$ 4,444,837	$ 4,118,360	$ 32,425,409	$ 718,964	$ 33,144,373
Adjustments to share of changes in equity of subsidiaries	-	154	-	-	-	-	-	186	186	340	(340)	-
Net profit for the three months ended March 31, 2024	-	-	-	-	1,180,023	1,180,023	-	-	-	1,180,023	34,163	1,214,186
Other comprehensive income for the three months ended March 31, 2024, net of income tax	-	-	-	-	-	-	178,768	5,875,035	6,053,803	6,053,803	58,567	6,112,370
Total comprehensive income for the three months ended March 31, 2024	-	-	-	-	1,180,023	1,180,023	178,768	5,875,035	6,053,803	7,233,826	92,730	7,326,556
Cash dividends distributed to non-controlling interests by subsidiaries	-	-	-	-	-	-	-	-	-	-	(19,699)	(19,699)
Disposals of investment in equity instruments designated as at fair value through other comprehensive profit or loss	-	-	-	-	28,551	28,551	-	(28,551)	(28,551)	-	-	-
BALANCE, MARCH 31, 2024	$ 5,209,722	$ 2,659,067	$ 3,298,427	$ 5,136,954	$ 13,211,607	$ 21,646,988	$ (147,709)	$ 10,291,507	$ 10,143,798	$ 39,659,575	$ 791,655	$ 40,451,230
BALANCE, JANUARY 1, 2025	$ 5,209,722	$ 2,695,304	$ 3,545,218	$ 5,136,954	$ 13,367,159	$ 22,049,331	$ (101,517)	$ 7,685,084	$ 7,583,567	$ 37,537,924	$ 837,159	$ 38,375,083
Changes in equity from investments in associates and joint venture accounted for using the equity method	-	91,575	-	-	(83,721)	(83,721)	-	-	-	7,854	(4,450)	3,404
Adjustments to share of changes in equity of subsidiaries	-	377	-	-	-	-	-	346	346	723	(723)	-
Net profit for three months ended March 31, 2025	-	-	-	-	1,222,966	1,222,966	-	-	-	1,222,966	28,540	1,251,506
Other comprehensive income (loss) for three months ended March 31, 2025, net of income tax	-	-	-	-	-	-	64,941	(1,715,259)	(1,650,318)	(1,650,318)	(6,957)	(1,657,275)
Total comprehensive income (loss) for the three months ended March 31, 2025	-	-	-	-	1,222,966	1,222,966	64,941	(1,715,259)	(1,650,318)	(427,352)	21,583	(405,769)
Cash dividends distributed to non-controlling interests by subsidiaries	-	-	-	-	-	-	-	-	-	-	(13,772)	(13,772)
Disposals of investment in equity instruments designated as at fair value through other comprehensive profit or loss	-	-	-	-	540	540	-	(540)	(540)	-	-	-
BALANCE, MARCH 31, 2025	$ 5,209,722	$ 2,787,256	$ 3,545,218	$ 5,136,954	$ 14,506,944	$ 23,189,116	$ (36,576)	$ 5,969,631	$ 5,933,055	$ 37,119,149	$ 839,797	$ 37,958,946

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

(With Deloitte & Touche review report dated May 8, 2025)

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$ 1,582,411	$ 1,541,470
Adjustments for:
Depreciation expense	198,332	188,758
Amortization expense	4,991	4,000
Expected credit loss recognized on trade receivables	236	6,415
Net loss (gain) on fair value change of financial assets at fair value through profit or loss	50,526	(89,877)
Finance costs	4,517	5,178
Interest income	(5,140)	(7,719)
Share of loss (profit) of associates accounted for using the equity method	93,062	(353,846)
Impairment loss recognized on property, plant and equipment	605	-
Loss on disposal of property, plant and equipment	885	58
Gain on lease changes in lease term	(20)	-
Changes in operating assets and liabilities
Contract assets	(88,708)	(220,523)
Notes receivable	(411,862)	103,201
Trade receivables	(199,833)	(1,371,550)
Trade receivables from related parties	91,668	38,439
Other receivables	1,916	(3,035)
Other receivables from related parties	39,283	(6,488)
Inventories	(299,049)	1,073,008
Other current assets	160,596	(158,653)
Net defined benefit assets	-	3,214
Contract liabilities	217,411	(845,583)
Notes payable	6,182	(30,512)
Trade payables	145,178	278,031
Trade payables to related parties	52,101	156,312
Other payables	(325,067)	(280,659)
Other payables to related parties	(24,433)	(16,171)
Provisions	(244,059)	333,569
Other current liabilities	(15,050)	(79,800)
Net defined benefit liabilities	(19,229)	(16,682)
Long-term deferred revenue	(312)	(301)
Cash generated from operations	1,017,138	250,254
Interest received	4,795	7,471
Interest paid	(4,456)	(5,267)
Income tax paid	(24,851)	(22,408)
Net cash generated from operating activities	992,626	230,050
		(Continued)

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Three Months Ended March 31
	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from capital reduction of financial assets measured at fair value through other comprehensive income	$ 9,000	$ -
Purchase of financial assets at fair value through profit or loss	(9,400)	-
Acquisition of associate	(80,000)	-
Payments for property, plant and equipment	(139,765)	(109,277)
Proceeds from disposal of property, plant and equipment	26,171	387
Increase in other financial assets	-	(9,869)
Decrease in other financial assets	165,880	-
Increase in other non-current assets	(2,437)	(5,704)
Dividends received from associates	-	39,157
Net cash used in investing activities	(30,551)	(85,306)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings	(795,427)	(667,438)
Repayment of the principal portion of lease liabilities	(2,593)	(2,157)
Dividends paid to non-controlling interests	(13,772)	(19,699)
Net cash used in financing activities	(811,792)	(689,294)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	50,185	107,521
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	200,468	(437,029)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	3,370,646	3,373,418
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$ 3,571,114	$ 2,936,389

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

(With Deloitte & Touche review report dated May 8, 2025) (Concluded)

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Shihlin Electric & Engineering Corp. (the "Corporation") was established in November 1955, and engaged in the manufacture of heavy electrical equipment, electrical machinery, electrical automotive equipment and related parts, and the sale and lease of commercial buildings.

The Corporation's shares have been listed and traded on the Taiwan Stock Exchange since December 1969.

The consolidated financial statements are presented in the Corporation's functional currency, the New Taiwan dollar.

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation's board of directors and authorized for issue on May 8, 2025.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the FSC

Amendments to IAS 21 "Lack of Exchangeability"

The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Group's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets	January 1, 2026 (Note)

Note: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2026. It is permitted to apply these amendments for an earlier period beginning on January 1, 2025.

Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets

The amendments mainly amend the requirements for the classification of financial assets, including:

1) If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if,

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

2) To clarify that a financial asset has non-recourse features if an entity's ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

3) To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches.

An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group's financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

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

Note: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

13 -

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statements of comprehensive income from the effective dates of acquisitions up to the effective dates of disposal, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Corporation.

See Note 11, Tables 7 and 8 for detailed information on subsidiaries (including percentages of ownership and main businesses).

d. Other material accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

14 -

15 -

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Group considers the possible impact of US reciprocal tariffs on the cash flow projection, growth rates, discount rates, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Group’s management, the accounting policies, estimates, and assumptions adopted by the Group have not been subject to material accounting judgments, estimates and assumptions uncertainty.

6. CASH AND CASH EQUIVALENTS

	March 31, 2025	December 31, 2024	March 31, 2024
Cash on hand	$ 3,843	$ 7,897	$ 4,095
Checking accounts and demand deposits	3,191,792	3,016,993	2,610,463
Cash equivalents (investments with original maturities of less than 3 months)
Time deposits	375,479	345,756	321,831
	$ 3,571,114	$ 3,370,646	$ 2,936,389

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	March 31, 2025	December 31, 2024	March 31, 2024
Financial assets - non-current
Financial assets mandatorily classified as at FVTPL
Derivative financial assets (not under hedge accounting)
Unlisted shares	$ 11,513	$ 14,166	$ 12,491
Limited partnership	18,406	14,784	-
Mutual funds	843,018	882,630	918,874
	$ 872,937	$ 911,580	$ 931,365

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	March 31, 2025	December 31, 2024	March 31, 2024
Non-current
Domestic investments
Listed shares	$ 1,507,443	$ 1,584,859	$ 1,413,338
Unlisted shares	1,400,168	1,465,644	1,426,861
	$ 2,907,611	$ 3,050,503	$ 2,840,199

These investments are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes.

NOTES RECEIVABLE AND TRADE RECEIVABLES

	March 31, 2025	December 31, 2024	March 31, 2024
Notes receivable
At amortized cost
Gross carrying amount	$ 1,394,551	$ 982,689	$ 1,098,057
Trade receivables
At amortized cost
Gross carrying amount	$ 6,728,955	$ 6,529,122	$ 7,805,613
Less: Allowance for impairment loss	(119,976)	(119,249)	(157,957)
	$ 6,608,979	$ 6,409,873	$ 7,647,656

The average credit period for sales of goods is 90 days. In order to minimize credit risk, the Group authorized a department to be responsible for determining credit limits, credit approvals, credit management and to manage other unusual risk to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts.

The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of the current direction of economic conditions at the reporting date.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable and trade receivables based on the Group's provision matrix.

March 31, 2025

	Not Past Due	Past Due Less than 3 Months	Past Due 3 to 6 Months	Past Due 6 Months to 1 Year	Past Due 1+ Year	Total
Expected credit loss rate	0.16%	7.59%	22.63%	60.53%	100%
Gross carrying amount	$ 7,334,258	$ 609,856	$ 141,528	$ 20,388	$ 17,476	$ 8,123,506
Loss allowance (Lifetime ECLs)	(11,816)	(46,311)	(32,032)	(12,341)	(17,476)	(119,976)
Amortized cost	$ 7,322,442	$ 563,545	$ 109,496	$ 8,047	$ -	$ 8,003,530

December 31, 2024

	Not Past Due	Past Due Less than 3 Months	Past Due 3 to 6 Months	Past Due 6 Months to 1 Year	Past Due 1+ Year	Total
Expected credit loss rate	0.22%	6.48%	25.83%	56.77%	99.39%
Gross carrying amount	$ 6,649,259	$ 731,072	$ 80,502	$ 33,029	$ 17,949	$ 7,511,811
Loss allowance (Lifetime ECLs)	(14,459)	(47,410)	(20,791)	(18,749)	(17,840)	(119,249)
Amortized cost	$ 6,634,800	$ 683,662	$ 59,711	$ 14,280	$ 109	$ 7,392,562

March 31, 2024

	Not Past Due	Past Due Less than 3 Months	Past Due 3 to 6 Months	Past Due 6 Months to 1 Year	Past Due 1+ Year	Total
Expected credit loss rate	0.33%	6.65%	20.65%	68.49%	95.02%
Gross carrying amount	$ 8,062,692	$ 676,809	$ 80,579	$ 37,846	$ 45,744	$ 8,903,670
Loss allowance (Lifetime ECLs)	(26,953)	(44,975)	(16,641)	(25,921)	(43,467)	(157,957)
Amortized cost	$ 8,035,739	$ 631,834	$ 63,938	$ 11,925	$ 2,277	$ 8,745,713

The movements of the loss allowance of notes receivable and trade receivables were as follows:

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ 119,249	$ 151,686
Add: Net remeasurement of loss allowance	236	6,415
Less: Amounts written off	-	(2,022)
Foreign exchange gains and losses	491	1,878
Balance at March 31	$ 119,976	$ 157,957

10. INVENTORIES

	March 31, 2025	December 31, 2024	March 31, 2024
Finished goods	$ 3,405,343	$ 3,702,022	$ 2,399,825
Work in progress	5,125,974	4,747,345	4,270,733
Raw materials	1,612,179	1,403,960	1,484,597
	$ 10,143,496	$ 9,853,327	$ 8,155,155

The cost of goods sold included inventory write-downs of $7,294 thousand and reversals of inventory write-downs of $(13,752) thousand for the three months ended March 31, 2025 and 2024, respectively. The reversals of previous write-downs resulted from resale of slow-moving inventories.

11. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

Investor	Investor	Nature of Activities	Proportion of Ownership			Remark
			March 31, 2025	December 31, 2024	March 31, 2024
The Corporation	SEEC International Holdings Ltd. of the British Virgin Islands (“SEEC International Holdings”)	Investment and trade business	100.0	100.0	100.0	-
The Corporation	Shihlin Electrical Engineering Ltd. of Vietnam (“Shihlin Electric Vietnam”)	Electrical goods production	100.0	100.0	100.0	a
The Corporation	Shihlin Electric USA Company Limited (“Shihlin Electric USA”)	Heavy electrical equipment product marketing promotion services	100.0	100.0	100.0	a
The Corporation	Hsin Lin Electric Machinery Co., Ltd. (“Hsin Lin”)	Power transmission, distribution and machinery equipment manufacturing and sales	60.0	60.0	60.0	a
The Corporation	Tingling Enterprise Co., Ltd. (“Tingling”)	Mechanical and electrical appliances various components manufacturing and processing and installation business	96.7	96.7	96.7	a
The Corporation	Shihlin Electric Green Power Corp. (Shihlin Electric Green Power)	Investment consulting, management consulting, leasing, power generation, power transmission, power distribution machinery manufacturing, renewable energy self-used power generation equipment, energy technology service	100.0	100.0	100.0	a
The Corporation	Shilin Star Power Corporation (Shihlin Star Power)	Manufacture of equipment for electric vehicle charging piles and optical charging and storage solutions.	51.0	51.0	-	a and c
The Corporation and Hsin Lin	Hwo Lin Investment Co., Ltd. (“Hwo Lin”)	Investment	99.9	99.9	99.9	a
The Corporation	Cheng Lin Investments Co., Ltd. (“Cheng Lin”)	Investment	99.7	99.6	99.6	b and d
The Corporation	Shang Lin Investment Co., Ltd. (“Shang Lin”)	Investment	99.6	99.6	99.6	a
The Corporation	Ji Lin Investment, Co., Ltd. (“Ji Lin”)	Investment	99.9	99.9	99.9	a
The Corporation and Hsin Lin	Yuh Lin Investment Co., Ltd. (“Yuh Lin”)	Investment	99.9	99.9	99.9	a
The Corporation and Hsin Lin	Jeng Lin Investment Co., Ltd. (“Jeng Lin”)	Investment	99.9	99.9	99.9	a
The Corporation and Cheng Lin	Chuan Lin Scien-Technical Corp. (“Chuan Lin”)	Operating and sale and maintenance service of vending machines, heavy electrical machinery and mechanical appliances and automation equipment	73.0	73.0	73.0	a
The Corporation, Cheng Lin and Chuan Lin	Ruei Lin Electric & Engineering Corp. (“Ruei Lin”)	Manufacturing and trading of mechanical appliances and vehicle components	91.3	91.3	91.3	a.
The Corporation	Jeen-Lin Industrial Co., Ltd. (“Jeen-Lin”)	Manufacturing and sale of aluminum alloy die-casting, lathe, cutting and molding	78.4	78.4	78.4	a
Hsin Lin and Ruei Lin	Wuling Electric Co., Ltd. (“Wuling”)	Manufacturing, processing and sales of mechanical and electrical parts, power distribution equipment and switch products	60.0	60.0	60.0	a
Hsin Lin	Hsinlin International Investment Corp. of Samoa (“Hsinlin International Investment”)	Investment	100.0	100.0	100.0	a
SEEC International Holdings	Changzhou Shihlin Mitsuba Electric & Engineering Co., Ltd. (“Changzhou Shihlin Mitsuba”)	Manufacturing and sale of motorcycle starter motors, magneto, starter switch	55.0	55.0	55.0	a
SEEC International Holdings	Xiamen Shihlin Electric & Engineering Co., Ltd. (“Xiamen SEEC”)	Manufacturing and sale of capacitors, relays, circuit breakers and other components	100.0	100.0	100.0	a
SEEC International Holdings	Suzhou Shihlin Electric & Engineering Co., Ltd. (“Suzhou SEEC”)	Manufacturing and sale of capacitors, transformers, DC electric motors and other electronic components	100.0	100.0	100.0	a

(Continued)

19 -

Investor	Investor	Nature of Activities	Proportion of Ownership			Remark
			March 31, 2025	December 31, 2024	March 31, 2024
SEEC International Holdings	Wuxi Shihlin Electric & Electric & Engineering Co., Ltd. (“Wuxi SEEC”)	Manufacturing and sale of magneto and starter motor in locomotive transmission facilities, power generators	100.0	100.0	100.0	a
SEEC International Holdings	Shihlin Technology (Shenzhen) Co., Ltd. (“Shenzhen Shihlin”)	Manufacturing and sale of industrial automation equipment and related products	100.0	100.0	100.0	a
SEEC International Holdings and Hsinlin International Investment	Shihlin Electric (Suzhou) Power Equipment Co., Ltd. (“Suzhou Power Equipment”)	Manufacturing and sale of high and low pressure switch and related products	70.5	70.5	70.5	a
SEEC International Holdings	Xiamen Chen-Ieu Transportation Implements Co., Ltd. (“Xiamen Chen-Ieu”)	Manufacturing motorcycle metal materials, electronic parts, all kinds of punch products parts, machine tools, etc.	100.0	100.0	100.0	a
SEEC International Holdings	Changzhou Shihlin Auto Parts Co., Ltd. (“Changzhou Shihlin Parts”)	Manufacturing and sale of motorcycle starter motors, magneto, starter switch	100.0	100.0	100.0	a
Ruei Lin	Shihlin Electric Engineering Equipment Vietnam Company Limited (“Vietnam Electric Engineering)	Manufacturing and sale of mechanical equipment, power transmission, distribution and machinery equipment, automotive and motorcycle components	100.0	100.0	100.0	a
Hwo Lin and Ji Lin	Yeang Der Investment Co., Ltd. (“Yeang Der Entertainment”)	Engaged in competitive and recreational sports industry	99.9	99.9	99.9	a

(Concluded)

Remarks:

a. The company is not a major subsidiary; its financial statements have not been reviewed.

b. In March 2024, the Group did not subscribe additional new shares of Cheng Lin at existing ownership percentage; the amount was $80,000 thousand, which increased the ownership percentage from 99.5% to 99.6%.

c. In April 2024, the Group established Shihlin Star Power with a registered capital of $80,000 thousand, representing 51% of shareholding.

d. In March 2025, the Group did not subscribe additional new shares of Cheng Lin at existing ownership percentage; the amount was $80,000 thousand, which increased the ownership percentage from 99.6% to 99.7%.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

	March 31, 2025	December 31, 2024	March 31, 2024
Investments in associates
Material associate
The Ambassador Hotel Co., Ltd. (“Ambassador Hotel”)	$ 6,414,853	$ 7,452,858	$ 9,445,896
Associates that are not individually material	6,021,910	7,243,991	8,151,297
	$ 12,436,763	$ 14,696,849	$ 17,597,193

a. Material associate

	Proportion of Ownership and Voting Rights
Name of Associate	March 31, 2025	December 31, 2024	March 31, 2024
Ambassador Hotel	21.34%	21.34%	21.34%

Refer to Table 6 "Information on Investees" for the nature of activities, principal place of business and country of incorporation of the associate.

Fair value (Level 1) of investment in associate with available published price quotation is as follows:

Name of Associate	March 31, 2025	December 31, 2024	March 31, 2024
Ambassador Hotel	$ 3,915,881	$ 4,315,301	$ 4,785,206

The investment in associate is accounted for using the equity method.

Summarized financial information of the Group's material associate set out below represents amounts shown in the associate's financial statements prepared in accordance with IFRS Accounting Standards adjusted by the Group for equity accounting purposes.

Ambassador Hotel

	March 31, 2025	December 31, 2024	March 31, 2024
Current assets	$ 18,031,324	$ 21,484,471	$ 28,950,348
Non-current assets	19,203,358	20,613,248	22,353,860
Current liabilities	(2,849,006)	(2,692,269)	(2,195,369)
Non-current liabilities	(4,326,807)	(4,483,521)	(4,849,274)
Equity	30,058,869	34,921,929	44,259,565
Non-controlling interests	(4,777)	(4,702)	(4,792)
	$ 30,054,092	$ 34,917,227	$ 44,254,773
Proportion of the Group's ownership	21.34%	21.34%	21.34%
Equity attributable to the Group	$ 6,414,853	$ 7,452,858	$ 9,445,896
Other adjustments	-	-	-
Carrying amount	$ 6,414,853	$ 7,452,858	$ 9,445,896
	For the Three Months Ended March 31
---	---	---
	2025	2024
Operating revenue	$ 375,569	$ 352,654
Net (loss) profit for the period	$ (381,194)	$ 1,581,167
Other comprehensive (loss) income	(4,488,237)	15,865,446
Total comprehensive (loss) income for the period	$ (4,869,431)	$ 17,446,613

b. Aggregate information of associates that are not individually material

	For the Three Months Ended March 31
	2025	2024
The Group’s share of:
Net (loss) profit for the period	$ (11,682)	$ 16,369
Other comprehensive (loss) income	(635,640)	2,123,639
Total comprehensive (loss) income for the period	$ (647,322)	$ 2,140,008

The amounts of investments in associates pledged as collateral for bank borrowings were disclosed in Note 30.

13. PROPERTY, PLANT AND EQUIPMENT

Assets Used by the Group

	Freehold Land	Buildings	Machinery and Equipment	Other Equipment	Construction in Progress and Equipment under Installation	Total
Cost
Balance at January 1, 2025	$ 2,698,664	$ 5,103,456	$ 6,065,485	$ 3,237,906	$ 123,974	$ 17,229,485
Additions	-	13,395	38,829	47,177	40,364	139,765
Disposals	-	-	(7,914)	(32,072)	(330)	(40,316)
Transferred from inventories	-	-	-	5,286	2,209	7,495
Recognition of impairment loss	-	1,882	1,369	6,762	(10,621)	(608)
Effect of foreign currency exchange differences	291	18,557	18,979	11,909	358	50,094
Balance at March 31, 2025	$ 2,698,955	$ 5,137,290	$ 6,116,748	$ 3,276,968	$ 155,954	$ 17,385,915
Accumulated depreciation and impairment
Balance at January 1, 2025	$ -	$ 2,887,431	$ 4,233,540	$ 2,585,608	$ -	$ 9,706,579
Disposals	-	-	(6,184)	(7,076)	-	(13,260)
Reclassification	-	-	-	605	-	605
Depreciation expense	-	36,114	86,058	47,482	-	169,654
Effect of foreign currency exchange differences	-	7,514	11,887	8,994	-	28,395
Balance at March 31, 2025	$ -	$ 2,931,059	$ 4,325,301	$ 2,635,613	$ -	$ 9,891,973
Carrying amounts at March 31, 2025	$ 2,698,955	$ 2,206,231	$ 1,791,447	$ 641,355	$ 155,954	$ 7,493,942
Carrying amounts at December 31, 2024 and January 1, 2025	$ 2,698,664	$ 2,216,025	$ 1,831,945	$ 652,298	$ 123,974	$ 7,522,906
Cost
Balance at January 1, 2024	$ 2,707,028	$ 4,852,437	$ 5,843,921	$ 3,079,671	$ 130,661	$ 16,613,718
Additions	-	22,949	38,869	33,096	14,363	109,277
Disposals	-	-	(3,423)	(3,368)	-	(6,791)
Transferred from inventories	-	-	-	7,065	6,077	13,142
Reclassification	-	15,958	8,530	2,714	(31,611)	(4,409)
Effect of foreign currency exchange differences	898	48,162	49,562	30,522	724	129,868
Balance at March 31, 2024	$ 2,707,926	$ 4,939,506	$ 5,937,459	$ 3,149,700	$ 120,214	$ 16,854,805

(Continued)

The Corporation adopted depreciation methods that were decided at the dates the assets were acquired. The Corporation’s depreciation cost is calculated by using the straight-line method for properties bought before January 1, 1988 and on or after January 1, 1999. The Corporation’s depreciation cost is calculated by using the fixed-percentage-of-declining-balance method for properties bought in the period from January 1, 1988 to December 31, 1998. The remaining subsidiaries calculate depreciation cost by using the straight-line method.

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives of the assets as follows:

	Freehold Land	Buildings	Machinery and Equipment	Other Equipment	Construction in Progress and Equipment under Installation	Total
Building
Main buildings					40-60 years
Building improvements					20-35 years
Electrical power equipment and engineering system					8-35 years
Others					2-15 years
Machinery and equipment					2-20 years
Other equipment					2-30 years

Property, plant and equipment used by the Group and pledged as collateral for bank borrowings are set out in Note 30.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	March 31, 2025	December 31, 2024	March 31, 2024
Carrying amounts
Land	$ 177,586	$ 176,632	$ 179,011
Buildings	17,695	16,655	6,804
Transportation equipment	722	1,068	2,105
	$ 196,003	$ 194,355	$ 187,920

23 -

	For the Three Months Ended March 31
	2025	2024
Additions to right-of-use assets	$ 3,438	$ -
Depreciation charge for right-of-use assets
Land	$ 1,341	$ 1,302
Buildings	2,356	1,795
Transportation equipment	346	346
	$ 4,043	$ 3,443

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the three months ended March 31, 2025 and 2024.

b. Lease liabilities

	March 31, 2025	December 31, 2024	March 31, 2024
Carrying amounts
Current	$ 9,560	$ 9,016	$ 6,395
Non-current	$ 9,540	$ 9,293	$ 2,703

Range of discount rates for lease liabilities was as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Buildings	0.61%-4.79%	0.61%-4.79%	0.61%-8.00%
Transportation equipment	0.84%-1.99%	0.84%-1.99%	0.84%-1.99%

c. Other lease information

Lease arrangements under operating leases for the leasing out of investment properties by the Group are set out in Note 15.

	For the Three Months Ended March 31
	2025	2024
Expenses relating to short-term leases	$ 11,367	$ 8,605
Total cash outflow for leases	$ (14,095)	$ (10,832)

The Group leases certain office equipment and transportation equipment which qualify as short-term leases. The Group has elected to apply the recognition exemption, and thus, did not recognize right-of-use assets and lease liabilities for these leases.

24 -

15. INVESTMENT PROPERTIES

	Completed Investment Property
Cost
Balance at January 1, 2025 and March 31, 2025	$ 10,479,625
Accumulated depreciation and impairment
Balance at January 1, 2025	$ 3,492,657
Depreciation expense	24,635
Balance at March 31, 2025	$ 3,517,292
Carrying amount at March 31, 2025	$ 6,962,333
Carrying amount at December 31, 2024 and January 1, 2025	$ 6,986,968
Cost
Balance at January 1, 2024 and March 31, 2024	$ 10,477,462
Accumulated depreciation and impairment
Balance at January 1, 2024	$ 3,391,646
Depreciation expense	25,665
Balance at March 31, 2024	$ 3,417,311
Carrying amount at March 31, 2024	$ 7,060,151

The abovementioned investment properties were leased out for 1 to 20 years. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating leases of investment properties was as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Not later than 1 year	$ 419,999	$ 405,273	$ 429,578
Later than 1 year and not later than 5 years	1,140,801	1,170,274	1,420,106
Later than 5 years	8,851	11,801	98,889
	$ 1,569,651	$ 1,587,348	$ 1,948,573

In addition to the minimum lease payments receivable, the contract for the Group's lease of mall building and parking spaces to Pacific Sogo Department Store Company Limited included contingent rentals clause, which provides that the Group shall receive shopping mall's monthly minimum guaranteed rent (minimum guaranteed rent at 6% of revenue) and car parking spaces rent, and at each year end, an extra operating lease payment will be charged if the actual revenue exceeds the minimum revenue base of the guaranteed 6% of revenue.

Investment properties were depreciated by applying straight-line method (before January 1, 1988 and on or after January 1, 1999) or fixed-percentage-of-declining-balance method (in the period from January 1, 1988 to December 31, 1998) over their estimated useful lives of the assets:

Main buildings	50-60 years
Engineering system	5-15 years
Air-conditioning system	8-10 years
Others	5-15 years

The fair value of the Group's investment properties as of March 31, 2025, December 31, 2024 and March 31, 2024 was $20,855,481 thousand, $20,871,653 thousand and $21,121,299 thousand, respectively. The fair value was based on the valuations carried out on March 31, 2025, January 13, 2025 and April 1, 2024 by independent qualified professional valuers. The valuation was carried out by reference to sales comparison approach and income approach.

Refer to Note 30 for the carrying amount of investment properties pledged to secure general banking facilities granted to the Group.

16. OTHER ASSETS

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Prepayments for purchases	$ 1,521,747	$ 1,614,742	$ 1,132,633
Prepaid expenses	165,499	247,414	130,784
Refundable deposits	4,450	3,448	4,263
Other financial assets	115,760	286,307	383,732
Others	37,879	23,147	36,890
	$ 1,845,335	$ 2,175,058	$ 1,688,302

17. BORROWINGS

Short-term borrowings

	March 31, 2025	December 31, 2024	March 31, 2024
Secured borrowings (Note 30)
Bank loans (NTD)	$ 86,600	$ 102,100	$ 123,100
Unsecured borrowings
Bank loans (NTD)	5,000	705,000	505,000
Bank loans (RMB)	46,258	120,862	119,521
Bank loans (USD)	-	-	30,890
Bank loans (EUR)	-	3,235	-
Bank loans (JPY)	-	1,055	-
	51,258	830,152	655,411
	$ 137,858	$ 932,252	$ 778,511

The range of weighted average effective interest rates on bank loans were 2.31%-3.00%, 1.45%-3.78% and 1.78%-6.44% per annum as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

18. OTHER PAYABLES

	March 31, 2025	December 31, 2024	March 31, 2024
Payable for salaries and bonus	$ 315,941	$ 689,515	$ 285,086
Payable for employees’ compensation	210,000	186,766	155,000
Payable for remuneration of directors	105,000	84,000	77,500
Payable for annual leave	83,374	103,186	83,884
Payable for dividends	76,165	73,751	82,633
Others	777,600	756,476	810,695
	$ 1,568,080	$ 1,893,694	$ 1,494,798

19. PROVISIONS

	March 31, 2025	December 31, 2024	March 31, 2024
Current
Warranties	$ 1,592,997	$ 1,837,632	$ 1,845,662
Non-current
Warranties	$ 33,540	$ 32,671	$ 29,014
			Warranties
Balance at January 1, 2025			$ 1,870,303
Reversal of unused balance			(244,059)
Effect of foreign currency exchange differences			293
Balance at March 31, 2025			$ 1,626,537

The provision for warranty claims represents the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Group’s obligations for warranties under contracts for the sale of goods. The estimate has been made on the basis of historical warranty trends and may vary as a result of other events affecting product quality.

20. RETIREMENT BENEFIT PLANS

For the three months ended March 31, 2025 and 2024, the pension expenses of defined benefit plans were $1,686 thousand and $2,435 thousand, respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2024 and 2023, respectively.

21. EQUITY

a. Share capital - ordinary shares

	March 31, 2025	December 31, 2024	March 31, 2024
Number of authorized shares (in thousands)	580,000	580,000	580,000
Amount of authorized shares	$ 5,800,000	$ 5,800,000	$ 5,800,000
Number of issued and fully paid shares (in thousands)	520,972	520,972	520,972
Amounted of issued and fully paid shares	$ 5,209,722	$ 5,209,722	$ 5,209,722

b. Capital surplus

	March 31, 2025	December 31, 2024	March 31, 2024
May be used to offset a deficit, distributed, as cash dividends, or transferred to share capital (1)
Arising from issuance of common share	$ 1,441,424	$ 1,441,424	$ 1,441,424
Arising from conversion of bonds	970,457	970,457	970,457
Arising from treasury share transactions	68,529	68,529	68,529
Arising from the difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	75,096	75,096	75,096
May only be used to offset a deficit
Arising from changes in percentage of ownership interest in subsidiaries (2)	12,802	12,425	12,425
Arising from changes in equity from investments in associates accounted for using the equity method	217,418	125,843	89,606
Arising from treasury share transactions	1,530	1,530	1,530
	$ 2,787,256	$ 2,695,304	$ 2,659,067

1) Such capital surplus may be used to offset a deficit; in addition, when the Group has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of Group’s capital surplus and once a year).

2) Such capital surplus arises from the effect of changes in ownership interest in a subsidiary resulted from equity transactions other than actual disposal or acquisition, or from changes in capital surplus of subsidiaries accounted for using the equity method.

c. Retained earnings and dividend policy

Under the dividend policy in the Corporation’s Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside 10% of the remaining profit as a legal reserve, setting aside a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees’ compensation and remuneration of directors after the amendment, refer to “employees’ compensation and remuneration of directors” in Note 23, h.

The Corporation’s Articles also prescribe that 1) not less than 5% of the sum of the remaining annual net income and the previous year’s accumulated undistributed earnings shall be appropriated as dividends and 2) of the total dividends, not less than 20% shall be paid in cash. The actual distribution ratio or method of dividend distribution is subjected to the operating situation as determined by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved by the shareholders in their meeting for the distribution of dividends to shareholders.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Group’s paid-in capital. The legal reserve may be used to offset any deficits. If the Group has no deficit and the legal reserve has exceeded 25% of the Group’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards” shall be appropriated to or reversed from a special reserve by the Corporation.

The appropriations of earnings for 2024 that were proposed by the board of directors on March 6, 2025 and the appropriations of earnings for 2023 that had been resolved by the shareholders in their meetings on June 19, 2024, respectively, were as follows:

	For the Year Ended December 31
	2024	2023
Legal reserve	$ 317,383	$ 246,791
Cash dividends	$ 2,344,375	$ 1,562,917
Cash dividends per share (NT$)	$ 4.5	$ 3.0

The appropriations of earnings for 2024 are subject to the resolution of the shareholders’ meeting to be held on June 13, 2025.

d. Special reserves

	For the Three Months Ended March 31
	2025	2024
Balance at January 1 and balance at March 31	$ 5,136,954	$ 5,136,954

The special reserve appropriated on the first-time adoption of IFRS Accounting Standards relating to land may be reversed on the disposal or reclassification of the related assets. An additional special reserve should be appropriated for the amount equal to the difference between the reversed net debit balance and the appropriated special reserve on the first-time adoption of IFRS Accounting Standards. Any appropriated special reserve may be reversed to the extent that the net debit balance has reversed and, thereafter, is distributed.

e. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ (101,517)	$ (326,477)
Recognized for the period
Exchange differences on translating the financial statements of foreign operations	64,941	178,768
Other comprehensive income recognized for the period	64,941	178,768
Balance at March 31	$ (36,576)	$ (147,709)

2) Unrealized gain (loss) on financial assets at FVTOCI

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ 7,685,084	$ 4,444,837
Recognized for the period
Unrealized (loss) gain - equity instruments	(133,398)	408,424
Share from associates accounted for using the equity method	(1,581,861)	5,466,611
Other comprehensive (loss) income recognized for the period	(1,715,259)	5,875,035
Reclassification adjustment
Transfer of accumulated gain or loss on disposal of equity instruments to retained earnings	(540)	(28,551)
Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal (Note 26)	346	186
Balance at March 31	$ 5,969,631	$ 10,291,507

f. Non-controlling interests

	For the Three Months Ended March 31
	2025	2024
Balance at January 1	$ 837,159	$ 718,964
Share of profit for the period	28,540	34,163
Other comprehensive income/(loss) during for the period
Exchange difference on translating the financial statements of foreign entities	5,301	14,945
Unrealized (loss) gain on financial assets at FVTOCI	(494)	219
Share from other comprehensive (loss) income of associates accounted for using the equity method	(11,764)	43,403
Adjustment to changes in equity of associates accounted for using the equity method	(4,450)	-
Adjustment to changes in equity of subsidiaries (Note 26)	(723)	(340)
Cash dividends of subsidiaries distributed to non-controlling interests	(13,772)	(19,699)
Balance at March 31	$ 839,797	$ 791,655

REVENUE

a. Contract balances

	March 31, 2025	December 31, 2024	March 31, 2024	January 1, 2024
Notes receivable (Note 9)	$ 1,394,551	$ 982,689	$ 1,098,057	$ 1,201,258
Trade receivables, net (Note 9)	$ 6,608,979	$ 6,409,873	$ 7,647,656	$ 6,284,399
Trade receivables from related parties (Note 29)	$ 37,389	$ 129,057	$ 93,527	$ 131,966
Contract assets
Sale of goods	$ 554,433	$ 644,770	$ 662,210	$ 576,522
Construction contracts	1,119,589	940,544	1,261,135	1,126,300
Contract assets - current	$ 1,674,022	$ 1,585,314	$ 1,923,345	$ 1,702,822
Contract liabilities
Sale of goods	$ 4,524,294	$ 4,760,660	$ 4,515,457	$ 5,419,865
Construction contracts	974,907	521,130	1,218,346	1,159,521
Contract liabilities - current	$ 5,499,201	$ 5,281,790	$ 5,733,803	$ 6,579,386

The credit risk management of contract assets and trade receivables are the same, refer to Note 9.

b. Disaggregation of revenue

For the three months ended March 31, 2025

	Electric Distribution Segment	Automobile Parts Segment	Automation Equipment and Parts Segment	Other Segment	Total
Type of goods or services
Sale of goods	$ 6,586,146	$ 1,464,001	$ 827,741	$ 141,731	$ 9,019,619
Construction contracts	947,509	-	189,428	-	1,136,937
Others	-	-	-	3,000	3,000
	$ 7,533,655	$ 1,464,001	$ 1,017,169	$ 144,731	$ 10,159,556

For the three months ended March 31, 2024

	Electric Distribution Segment	Automobile Parts Segment	Automation Equipment and Parts Segment	Other Segment	Total
Type of goods or services
Sale of goods	$ 6,527,020	$ 1,601,133	$ 826,522	$ 164,969	$ 9,119,644
Construction contracts	548,923	-	114,641	-	663,564
Others	-	-	-	3,000	3,000
	$ 7,075,943	$ 1,601,133	$ 941,163	$ 167,969	$ 9,786,208

NET PROFIT

a. Interest income

	For the Three Months Ended March 31
	2025	2024
Bank deposits	$ 5,139	$ 7,718
Others	1	1
	$ 5,140	$ 7,719

b. Other income

	For the Three Months Ended March 31
	2025	2024
Rental income	$ 689	$ 665
Others	574	590
	$ 1,263	$ 1,255

c. Other gains and losses

	For the Three Months Ended March 31
	2025	2024
(Loss) gain on financial assets
Financial assets mandatorily classified as at FVTPL	$ (50,526)	$ 89,877
Loss on disposal of property, plant and equipment	(885)	(58)
Net foreign exchange gains	39,990	94,316
Others	26,388	43,033
	$ 14,967	$ 227,168

d. Finance costs

	For the Three Months Ended March 31
	2025	2024
Interest on bank loans	$ 4,382	$ 5,108
Interest on finance leases	135	70
	$ 4,517	$ 5,178

e. Depreciation and amortization

	For the Three Months Ended March 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 157,790	$ 151,738
Operating expenses	40,542	37,020
	$ 198,332	$ 188,758
An analysis of amortization by function
Operating costs	$ 1,149	$ 466
Operating expenses	3,842	3,534
	$ 4,991	$ 4,000

f. Operating expenses directly related to investment properties

	For the Three Months Ended March 31
	2025	2024
Generated rental income	$ 11,428	$ 9,688

g. Employee benefits expense

	For the Three Months Ended March 31
	2025	2024
Post-employment benefits
Defined contribution plans	$ 50,295	$ 40,471
Defined benefit plans (Note 20)	1,686	2,435
	51,981	42,906
Other employee benefits	1,116,051	992,213
Total employee benefits expense	$ 1,168,032	$ 1,035,119
An analysis of employee benefits expense by function
Operating costs	$ 667,595	$ 564,930
Operating expenses	500,437	470,189
	$ 1,168,032	$ 1,035,119

h. Employees' compensation and remuneration of directors

In accordance with the Corporation's Articles, the Corporation accrued employees' compensation and remuneration of directors at rates of no less than 1%-8% and no higher than 4%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company expect to resolve the amendments to the Company's Articles at their 2025 regular meeting, stipulating that the total employee remuneration for the current year should be allocated no less than 20% of the remuneration of grass-roots employees. The employees' compensation and remuneration of directors for the three months ended March 31, 2025 and 2024 were as follows:

Accrual rate

	For the Three Months Ended March 31
	2025	2024
Employees’ compensation	2.68%	2.06%
Remuneration of directors	1.34%	1.03%
Amount
	For the Three Months Ended March 31
	2025	2024
Employees’ compensation	$ 42,000	$ 31,000
Remuneration of directors	21,000	15,500

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The appropriations of employees' compensation and remuneration of directors for 2024 and 2023 that were resolved by the board of directors on March 6, 2025 and March 12, 2024, respectively, are as shown below:

	For the Year Ended December 31
	2024	2023
	Cash	Cash
Employees' compensation	$ 168,000	$ 124,000
Remuneration of directors	84,000	62,000

There was no difference between the actual amounts of employees' compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on the employees' compensation and remuneration of directors resolved by the Corporation's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

24. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Three Months Ended March 31
	2025	2024
Current tax
In respect of the current period	$ 286,841	$ 279,618
Adjustments for prior years	-	20,118
Deferred tax
In respect of the current period	44,064	27,548
Income tax expense recognized in profit or loss	$ 330,905	$ 327,284

b. Income tax recognized in other comprehensive income

	For the Three Months Ended March 31
	2025	2024
Deferred tax
In respect of the current period
Exchange differences on translation of the financial statements of foreign operations	$ 15,430	$ 43,242

c. Income tax assessments

The income tax returns of the Corporation Hwo Lin, Cheng Lin, Shang Lin, Ji Lin, Yuh Lin, Jeng Lin, Jeen-Lin, Tingling, Shihlin Electric Green Power and Yeang Der Entertainment through 2023 have been assessed by the tax authority.

The income tax returns of Ruei Lin, Hsin Lin and Chuan Lin, Wuling through 2022 have been assessed by the tax authority.

25. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net Profit for the Year

	For the Three Months Ended March 31
	2025	2024
Earnings used in the computation of basic and diluted earnings per share	$ 1,222,966	$ 1,180,023
Weighted Average Number of Ordinary Shares Outstanding	(In Thousands of Shares)
	For the Three Months Ended March 31
	2025	2024
Weighted average number of ordinary shares outstanding in computation of basic earnings per share	520,972	520,972
Effect to potentially dilutive ordinary shares Employees’ compensation	985	657
Weighted average number of ordinary shares outstanding in computation of diluted earnings per share	521,957	521,629

The Corporation may settle compensation paid to employees in cash or shares; therefore, the Group shall assume that the entire amount of the compensation will be settled in shares, and the resulting potentially dilutive shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share. Such dilutive effect of the potential shares shall be included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

26. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

On March 12, 2025, the Group did not subscribe additional new shares of Cheng Lin at existing ownership percentage and increased the ownership percentage from 99.6% to 99.7%.

On March 18, 2024, the Group did not subscribe additional new shares of Cheng Lin at existing ownership percentage and increased the ownership percentage from 99.5% to 99.6%.

The above transactions were accounted for as equity transactions since the Group did not cease to have control over the subsidiaries.

For the three months ended March 31, 2025

	Cheng Lin
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to (from) non-controlling interests	$ 723
Reattribution of other equity to (from) non-controlling interests
Unrealized gain (loss) on financial assets at FVTOCI	(346)
Differences recognized from equity transactions	$ 377
Line items adjusted for equity transactions
Capital surplus - changes in percentage of ownership interest in subsidiaries	$ 377
For the three months ended March 31, 2024
	Cheng Lin
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to (from) non-controlling interests	$ 340
Reattribution of other equity to (from) non-controlling interests
Unrealized gain (loss) on financial assets at FVTOCI	(186)
Differences recognized from equity transactions	$ 154
Line items adjusted for equity transactions
Capital surplus - changes in percentage of ownership interest in subsidiaries	$ 154

27. CAPITAL MANAGEMENT

The objectives, policies and processes of capital management of the Group consistent with those disclosed in the consolidated financial statements of 2024. In addition, there is no material change between the aggregate quantitative information of capital management items and the disclosure in the consolidated financial statement of 2024, please refer to the consolidated financial statement of 2024.

28. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The Group's management believes that the carrying amounts of financial assets not measured at fair value approximate their fair values.

b. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

March 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Unlisted shares	$ -	$ -	$ 11,513	$ 11,513
Limited partnership	-	-	18,406	18,406
Mutual funds	843,018	-	-	843,018
	$ 843,018	$ -	$ 29,919	$ 872,937
Financial assets at FVOCI
Investments in equity instruments at FVTOCI
Listed shares	$ 1,507,443	$ -	$ -	$ 1,507,443
Unlisted shares	-	-	1,400,168	1,400,168
	$ 1,507,443	$ -	$ 1,400,168	$ 2,907,611
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Unlisted shares	$ -	$ -	$ 14,166	$ 14,166
Limited partnership	-	-	14,784	14,784
Mutual funds	882,630	-	-	882,630
	$ 882,630	$ -	$ 28,950	$ 911,580
Financial assets at FVOCI
Investments in equity instruments at FVTOCI
Listed shares	$ 1,584,859	$ -	$ -	$ 1,584,859
Unlisted shares	-	-	1,465,644	1,465,644
	$ 1,584,859	$ -	$ 1,465,644	$ 3,050,503

March 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Unlisted shares	$ -	$ -	$ 12,491	$ 12,491
Mutual funds	918,874	-	-	918,874
	$ 918,874	$ -	$ 12,491	$ 931,365
Financial assets at FVOCI
Investments in equity instruments at FVTOCI
Listed shares	$ 1,413,338	$ -	$ -	$ 1,413,338
Unlisted shares	-	-	1,426,861	1,426,861
	$ 1,413,338	$ -	$ 1,426,861	$ 2,840,199

There were no transfers between Levels 1 and 2 in the current and prior period.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the three months ended March 31, 2025

Equity Instruments	Financial Assets at FVTPL	Financial Assets at FVTOCI	Total
	Equity Instruments	Equity Instruments
Balance at January 1, 2025	$ 28,950	$ 1,465,644	$ 1,494,594
Recognized in profit or loss (included in other gains and losses)	(8,431)	-	(8,431)
Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	-	(65,476)	(65,476)
Purchases	9,400	-	9,400
Balance at March 31, 2025	$ 29,919	$ 1,400,168	$ 1,430,087
Recognized in other gains and losses - unrealized	$ (8,431)		$ (8,431)

For the three months ended March 31, 2024

Equity Instruments	Financial Assets at FVTPL Equity Instruments	Financial Assets at FVTOCI Equity Instruments	Total
Balance at January 1, 2024	$ 11,081	$ 1,711,585	$ 1,722,666
Recognized in profit or loss (included in other gains and losses)	1,410	-	1,410
Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	-	125,806	125,806
Transfers out of Level 3	-	(410,530)	(410,530)
Balance at March 31, 2024	$ 12,491	$ 1,426,861	$ 1,439,352
Recognized in other gains and losses - unrealized	$ 1,410		$ 1,410

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair values of limited partnership, emerging market and unlisted equity securities were determined using the market approach, income approach, and asset approach.

The market approach refers to the comparable market transaction price and related information to estimate the fair value of the investment target; the income approach based on discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees; the asset approach evaluates the fair value by assessing the total value of individual assets and individual liabilities of the investment target.

c. Categories of financial instruments

	March 31, 2025	December 31, 2024	March 31, 2024
Financial assets
Financial assets at FVTPL
Mandatorily classified as at FVTPL	$ 872,937	$ 911,580	$ 931,365
Financial assets at amortized cost (1)	12,470,526	11,288,693	12,443,537
Financial assets at FVTOCI	2,907,611	3,050,503	2,840,199
Financial liabilities
Financial liabilities at amortized cost (2)	7,167,586	7,758,447	7,222,673

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, other receivables and other financial assets.

2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, notes payable, trade payables and other financial liabilities.

39 -

d. Financial risk management objectives and policies

The financial risk management objectives and policies of the Group are consistent with those disclosed in the notes to the consolidated financial statement of 2024.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below), interest rates (see (b) below) and other price risk (see (c) below).

a) Foreign currency risk

The Group had foreign currency-denominated sales and purchases, which exposed the Group to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing foreign exchange forward contracts.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 32.

Sensitivity analysis

The Group was mainly exposed to the USD, RMB and JPY.

The following table details the Group’s sensitivity to a 1% increase and a 1% decrease in the functional currency against the relevant foreign currencies. The sensitivity rate of 1% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency-denominated monetary items, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. A positive number indicates an increase (decrease) in pre-tax profit when the functional currency strengthened by 1% against the relevant foreign currency. Conversely, a negative number below indicates a decrease in pre-tax profit when the functional currency weakened by 1% against the relevant foreign currency.

	USD Impact
	For the Three Months Ended March 31
	2025	2024
Profit or loss	$ (15,471) (i)	$ (21,629) (i)
	RMB Impact
	For the Three Months Ended March 31
	2025	2024
Profit or loss	$ (1,256) (ii)	$ (2,757) (ii)
	JPY Impact
	For the Three Months Ended March 31
	2025	2024
Profit or loss	$ (1,051) (iii)	$ (860) (iii)

i. This was mainly attributable to the exposure on outstanding USD bank deposits, receivables, borrowings and payables which were not hedged at the end of the reporting period.

ii. This was mainly attributable to the exposure on outstanding RMB bank deposits, receivables and payables which were not hedged at the end of the reporting period.

iii. This was mainly attributable to the exposure on outstanding JPY bank deposits, receivables and payables which were not hedged at the end of the reporting period.

The Group’s sensitivity to the USD decreased during the current period mainly due to the reduction in USD denominated sales that resulted in decreased USD denominated bank deposits. Sensitivity to the RMB and JPY during the current period has not changed significantly from the previous period.

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The Group pays attention to changes in market interest rates in order to make plans to manage interest rate risk.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Fair value interest rate risk
Financial assets	$ 497,486	$ 633,656	$ 379,199
Financial liabilities	46,258	825,152	150,411
Cash flow interest rate risk
Financial liabilities	91,600	107,100	628,100

Sensitivity analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A sensitivity rate of 1% increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher/lower and all other variables were held constant, the Group’s pre-tax profit for the three months ended March 31, 2025 and 2024 would have decreased/increased by $229 thousand and $1,570 thousand, respectively.

The Group’s sensitivity to interest rate has not change significantly from the prior period.

c) Other price risk

The Group was exposed to price risk through its investments in listed equity securities and mutual funds. The Group has appointed a special team to monitor the price risk and make plans to manage the price risk.

42 -

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to the price risks of the aforementioned investments at the end of the reporting period.

If equity prices had been 1% higher/lower, pre-tax profit for the three months ended March 31, 2025 and 2024 would have increased/decreased by $8,729 thousand and $9,314 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the three months ended March 31, 2025 and 2024 would have increased/decreased by $29,076 thousand and $28,402 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation and financial guarantees provided by the Group could arise from:

a) The carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets; and
b) The amount of contingent liabilities in relation to financial guarantees issued by the Group.

The credit risk on liquid funds and derivatives was limited because the counterparties are reputable banks.

The table below analyzes the collaterals held as security and other credit enhancements, and their financial effect in respect of the financial assets recognized in the Group’s consolidated balance sheets:

March 31, 2025

	Carrying Amount	Maximum Exposure to Credit Risk Mitigated by
		Collateral	Other Credit Enhancements	Total
Credit-impaired financial instruments according to impairment criteria in IFRS 9
Receivables and contract assets	$ 9,714,941	$ 471,055	$ 323,030	$ 794,085

December 31, 2024

	Carrying Amount	Maximum Exposure to Credit Risk Mitigated by
		Collateral	Other Credit Enhancements	Total
Credit-impaired financial instruments according to impairment criteria in IFRS 9
Receivables and contract assets	$ 9,106,933	$ 287,963	$ 226,164	$ 514,127

March 31, 2024

	Carrying Amount	Maximum Exposure to Credit Risk Mitigated by
		Collateral	Other Credit Enhancements	Total
Credit-impaired financial instruments according to impairment criteria in IFRS 9
Receivables and contract assets	$ 10,762,585	$ 327,721	$ 266,311	$ 594,032

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group had available unutilized short-term bank loan facilities of $12,077,303 thousand, $11,147,945 thousand and $12,301,540 thousand, respectively.

Liquidity and interest risk rate table for non-derivative financial liabilities

The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The tables included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

March 31, 2025

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing	$ 1,995,880	$ 3,502,916	$ 1,397,997	$ 57,945	$ 150,396
Lease liabilities	879	1,759	7,312	9,735	-
Variable interest rate liabilities	70,235	-	21,500	-	-
Fixed interest rate liabilities	-	-	46,315	-	-
Refund liability	5,112	10,224	30,672	-	-
	$ 2,072,106	$ 3,514,899	$ 1,503,796	$ 67,680	$ 150,396

December 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing	$ 1,896,162	$ 3,365,349	$ 1,400,163	$ 81,055	$ 156,526
Lease liabilities	971	1,792	6,517	9,402	-
Variable interest rate liabilities	42,143	65,386	638	-	-
Fixed interest rate liabilities	179,815	551,130	96,004	-	-
Refund liability	9,129	18,258	27,387	-	-
	$ 2,128,220	$ 4,001,915	$ 1,530,709	$ 90,457	$ 156,526

March 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing	$ 1,896,108	$ 3,207,479	$ 1,138,608	$ 112,115	$ 171,547
Lease liabilities	716	1,431	4,370	2,728	-
Variable interest rate liabilities	5,000	85,100	546,880	-	-
Fixed interest rate liabilities	45,234	-	105,738	-	-
Refund liability	6,783	13,566	40,700	-	-
	$ 1,953,841	$ 3,307,576	$ 1,836,296	$ 114,843	$ 171,547

The amounts included above for variable interest rate instruments for non-derivative financial liabilities were subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

29. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Group and its subsidiaries, which are related parties of the Group, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Related parties and relationships:

Name of Related Party	Relationship with the Group
Mitsubishi Electric Group of Japan (Mitsubishi Electric)	Investor that has significant influence over the Group
Mitsubishi Electric Shinlin Automotive Changzhou Co., Ltd. (Changzhou Mitsubishi Shihlin)	Associate
Mitsuba Shihlin Electric (Wuhan) Co., Ltd. (Wuhan Mitsuba Shihlin)	Associate
Mitsubishi Electric Low Voltage Equipment (Xiamen) Co., Ltd. (Xiamen Mitsubishi)	Associate
Ambassador Hotel	Associate
Mitsubishi Electric Taiwan Co., Ltd. (Mitsubishi Taiwan)	Subsidiary of investor that has significant influence over the Group
Mitsubishi Electric Automation (China) Co., Ltd. (Mitsubishi Automation)	Subsidiary of investor that has significant influence over the Group (Continued)

45 -

Name of Related Party		Relationship with the Group
Mitsubishi Electric Automation Corporation of Taiwan
(Mitsubishi Electric Automation Taiwan)
HCT Logistics Co., Ltd. (HCT Logistics)
Mitsubishi Elevator Taiwan Co.		Subsidiary of investor that has significant influence over the Group
Related party in substance
Other related parties
(Concluded)

b. Operating revenue

Line Item	Related Party Category/Name	For the Three Months Ended March 31
		2025	2024
Sales	Associates	$ 86,891	$ 90,011
	Investors that have significant influence over the Group	2,452	3,568
	Subsidiaries of investors that have significant influence over the Group	29,830	29,133
		$ 119,173	$ 122,712
Rental revenue	Subsidiaries of investors that have significant influence over the Group	$ 6,286	$ 6,332
	Related parties in substance	8,333	8,012
		$ 14,619	$ 14,344
Other operating revenue	Related parties in substance
HCT Logistics	$ 3,000	$ 3,000

c. Purchases of goods

Related Party Category/Name	For the Three Months Ended March 31
	2025	2024
Investors that have significant influence over the Group	$ 8,668	$ 24,514
Associates	9,327	2,393
Subsidiaries of investors that have significant influence over the Group	473,410	430,620
	$ 491,405	$ 457,527

d. Contract liabilities

Related Party Category/Name	March 31, 2025	December 31, 2024	March 31, 2024
Subsidiaries of investors that have significant influence over the Group	$ 1,132	$ 898	$ 833

e. Receivables from related parties

Line Item	Related Party Category/Name	March 31, 2025	December 31, 2024	March 31, 2024
Notes receivable from related parties	Related parties in substance	$ 1,019	$ -	$ -
Trade receivables from related parties	Associates
Changzhou Mitsubishi Shihlin	$ 1,132	$ 94,141	$ 57,109
Others	2,019	4,223	799
Investors that have significant influence over the Group	-	2,945	-
Subsidiaries of investors that have significant influence over the Group
Mitsubishi Automotive China	17,105	24,390	27,903
Mitsubishi Taiwan	10,379	3,165	4,716
Related parties in substance	6,754	193	3,000
	$ 37,389	$ 129,057	$ 93,527
Other receivables from related parties	Associates
Changzhou Mitsubishi Shihlin	$ 680,013	$ -	$ 233,831
Wuhan Mitsuba Shihlin	5,960	56,684	5,900
Others	349	358	349
Subsidiaries of investors that have significant influence over the Group	131	-	221
Related parties in substance	1,523	1,074	-
	$ 687,976	$ 58,116	$ 240,301

f. Payables to related parties

Line Item	Related Party Category/Name	March 31, 2025	December 31, 2024	March 31, 2024
Trade payables to related parties	Associates
	Changzhou Mitsubishi Shihlin	$ 15,044	$ 7,403	$ 3,224
	Subsidiaries of investors that have significant influence over the Group
	Mitsubishi Electric Automation Taiwan	222,771	182,135	259,752
	Others	-	-	10,218
	Investors that have significant influence over the Group	5,975	2,151	7,101
		$ 243,790	$ 191,689	$ 280,295
Other payables to related parties	Investors that have significant influence over the Group
	Mitsubishi Electric	$ 10,863	$ 32,166	$ 9,032
	Subsidiaries of investors that have significant influence over the Group	-	2,355	-
	Associates	492	1,313	1,739
	Related parties in substance	590	786	794
	Other related parties	242	-	1,899
		$ 12,187	$ 36,620	$ 13,464

g. Prepayments (included in other current assets)

Related Party Category/Name	March 31, 2025	December 31, 2024	March 31, 2024
Subsidiaries if investors that have significant influence over the Group	$ 63,574	$ 88,549	$ -

h. Other transactions with related parties

Line Item	Related Party Category/Name	For the Three Months Ended March 31
		2025	2024
Royalty expenses	Investors that have significant influence over the Group Mitsubishi Electric	$ 6,365	$ 8,253
Freight expenses	Related parties in substance	$ 982	$ 1,029
Rental expenses	Related parties in substance	$ 329	$ 303 (Continued)

48 -

Line Item	Related Party Category/Name	For the Three Months Ended March 31
		2025	2024
Rental revenue (included in other income)	Associates
Xiamen Mitsubishi	$ 689	$ 665
Management service revenue (included in other gains and losses)	Associates
Wuhan Mitsuba Shihlin	$ 1,240	$ 1,180
Miscellaneous revenue (included in other gain and loss)	Subsidiaries of investors that have significant influence over the Group
Related parties in substance	$ 22
615	$ 603
560
		$ 637	$ 1,163
(Concluded)

The transactions with related parties were made at prices and terms comparable to those that would be obtained in similar transactions with non-related parties.

The aforementioned rentals collected or paid monthly were based on those prevailing in the market.

The outstanding receivables from related parties are unsecured. For the three months ended March 31, 2025 and 2024, no impairment loss was recognized for receivables from related parties.

The outstanding payables to related parties are unsecured.

i. Remuneration of key management personnel

	For the Three Months Ended March 31
	2025	2024
Short-term employee benefits	$ 58,384	$ 42,408
Post-employment benefits	444	409
	$ 58,828	$ 42,817

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

49 -

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets have been mortgaged as collateral for bank credit lines, performance guaranty, and a deposit for management and maintenance of public open space:

	March 31, 2025	December 31, 2024	March 31, 2024
Demand deposits (included in other current assets)	$ 25,699	$ 25,699	$ 25,699
Time deposits (included in other current assets and other non-current assets)	122,007	58,405	57,368
Investments accounted for using the equity methods	414,538	481,616	610,409
Land (included in property, plant and equipment and investment properties)	6,680,105	6,761,146	6,680,105
Buildings, net (included in property, plant and equipment)	165,011	179,000	175,121
	$ 7,407,360	$ 7,505,866	$ 7,548,702

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of March 31, 2025 were as follows:

a. The Group and several foreign companies have signed technical cooperation contracts respectively, and these contracts expired between May 2025 and February 2026. According to the technical cooperation contract, in addition to the down payment, the Group shall pay the technical royalties regularly according to the agreed percentage based on the net amount that the sales of technical cooperation products after deducting the prescribed fees. For the three months ended March 31, 2025 and 2024, royalties were $9,432 thousand and $8,982 thousand, respectively.

b. As of March 31, 2025, December 31, 2024 and March 31, 2024, unused letters of credit for purchases of raw materials and machinery and equipment amounted to approximately $272,851 thousand, $370,425 thousand and $239,863 thousand, respectively.

c. Unrecognized commitments were as follows:

	March 31, 2025	December 31, 2024	March 31, 2024
Acquisition of property, plant and equipment	$ 196,175	$ 230,932	$ 199,576

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group entities' significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between foreign currencies and respective functional currencies were as follows:

March 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 36,625	33.21 (USD:NTD)	$ 1,216,143
USD	11,114	7.17-7.27 (USD:RMB)	364,803
USD	2,388	28,821.03 (USD:VND)	85,623
RMB	23,840	4.57 (RMB:NTD)	109,021
RMB	18,171	0.1393 (RMB:USD)	84,057
JPY	568,403	0.2227 (JPY:NTD)	126,583
Non-monetary items
Investments accounted for using the equity method
RMB	198,622	0.1393 (RMB:USD)	918,788
Others
USD	19,280	33.21 (USD:NTD)	640,189
Financial liabilities
Monetary items
USD	2,492	33.21 (USD:NTD)	82,763
USD	437	7.17-7.27 (USD:RMB)	14,358
USD	608	28,821.03 (USD:VND)	22,389
RMB	14,751	4.57 (RMB:NTD)	67,458
JPY	83,182	0.2227 (JPY:NTD)	18,525
JPY	13,281	0.0480 (JPY:RMB)	2,918
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 37,918	32.79 (USD:NTD)	$ 1,243,132
USD	8,840	7.16-7.19 (USD:RMB)	283,603
USD	4,057	25,393.16 (USD:VND)	130,824
RMB	4,413	0.1466 (RMB:USD)	21,214
RMB	40,083	4.48 (RMB:NTD)	179,493
JPY	775,708	0.2099 (JPY:NTD)	162,821
			(Continued)

	Foreign Currency	Exchange Rate	Carrying Amount
Non-monetary items
Investments accounted for using the equity method
RMB	$ 346,111	0.1466 (RMB:USD)	$ 1,585,126
Others
USD	20,138	32.79 (USD:NTD)	660,212
Financial liabilities
Monetary items
USD	3,367	32.79 (USD:NTD)	110,374
USD	249	7.16-7.19 (USD:RMB)	7,870
USD	1,177	25,393.16 (USD:VND)	38,160
RMB	14,613	4.48 (RMB:NTD)	65,438
JPY	74,676	0.2099 (JPY:NTD)	15,674
			(Concluded)
March 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 60,674	32.00 (USD:NTD)	$ 1,941,554
USD	7,137	7.08-7.11 (USD:RMB)	223,030
USD	2,924	28,673.41 (USD:VND)	122,969
RMB	46,097	4.41 (RMB:NTD)	203,195
RMB	27,448	0.1409 (RMB:USD)	123,795
JPY	611,103	0.2115 (JPY:NTD)	129,248
JPY	5,438	0.0471 (JPY:RMB)	1,129
Non-monetary items
Investments accounted for using the equity method
RMB	365,126	0.1409 (RMB:USD)	1,646,794
Others
USD	21,085	32.00 (USD:NTD)	674,714
Financial liabilities
Monetary items
USD	2,345	32.00 (USD:NTD)	75,036
USD	64	7.08-7.11 (USD:RMB)	1,988
USD	2,537	28,673.41 (USD:VND)	47,679
RMB	11,625	4.41 (RMB:NTD)	51,243
JPY	200,246	0.2115 (JPY:NTD)	42,352
JPY	9,706	0.0471 (JPY:RMB)	2,015

Please refer to the consolidated statements of income for the aggregate of realized and unrealized foreign currency exchange gains and losses for the three months ended March 31, 2025 and 2024. Due to various kinds of foreign currency transactions and functional currencies of the Corporation's subsidiaries, it is not possible to disclose exchange gains and losses separately for material impacts of foreign currency.

33. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:

1) Financing provided to others: Table 1.
2) Endorsements/guarantees provided: Table 2.
3) Significant marketable securities held (excluding investments in subsidiaries and associates): Table 3.
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4.
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
6) Intercompany relationships and significant intercompany transactions: Table 5.

b. Information on investees (excluding investees in mainland China): Table 6.

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 7.
2) Any of significant transactions with investee companies in mainland China, either directly or indirectly through a company in third area, and their prices, payment terms, and unrealized gains or losses: Table 5.

34. OPERATING SEGMENT INFORMATION

a. Operating segment:

Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance focuses on types of goods or services delivered or provided. The reportable segments are as follows:

Electric distribution segment - manufacture and sale of heavy electric equipment.
Automobile parts segment - manufacture and sale of automotive equipment and related parts.
Automation equipment and parts segment - manufacture and sale of industrial automation control products.
Other segment - leasing of commercial building and sale of digital products.

b. Segment revenues and results:

The information of the Group’s revenues and results by segment was as follows:

	Electric Distribution Segment	Automobile Parts Segment	Automation Equipment and Parts Segment	Other Segment	Adjustments and Eliminations	Consolidated
For the three months ended March 31, 2025
Revenue from external customers	$ 7,533,655	$ 1,464,001	$ 1,017,169	$ 279,873	$ -	$ 10,294,698
Inter-segment revenue	1,162	150	839	-	(2,151)	-
Total revenue	$ 7,534,817	$ 1,464,151	$ 1,018,008	$ 279,873	$ (2,151)	$ 10,294,698
Segment income	$ 1,251,452	$ 111,325	$ 60,258	$ 264,144	$ -	$ 1,687,179
Unallocated amount						(104,768)
Profit before income tax						$ 1,582,411
For the three months ended March 31, 2024
Revenue from external customers	$ 7,075,943	$ 1,601,133	$ 941,163	$ 299,708	$ -	$ 9,917,947
Inter-segment revenue	115	415	712	-	(1,242)	-
Total revenue	$ 7,076,058	$ 1,601,548	$ 941,875	$ 299,708	$ (1,242)	$ 9,917,947
Segment income	$ 1,072,420	$ 123,857	$ 73,931	$ 196,972	$ -	$ 1,467,180
Unallocated amount						74,290
Profit before income tax						$ 1,541,470

53 -

TABLE 1

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing (Note 2)	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note 3)	Aggregate Financing Limit (Note 3)	Note
													Item	Value
1	Wuxi Shihlin Electric & Engineering Co., Ltd.	Changzhou Shihlin Auto Parts Co., Ltd.	Other receivables from related parties	Yes	$ 92,516	$ 92,516	$ 92,516	3.1-3.3	2	$ -	Operational turnaround	$ -	-	$ -	$ 143,911	$ 143,911	Note 4

Note 1: The Corporation is indicated by No. 0, investees are numbered in order from No. 1.
Note 2: Nature of financing as follows:

a. Business relationship is indicated by No. 1.
b. Short-term financing is indicated by No. 2.

Note 3: The following information was in accordance with the recent financial statements as of December 31, 2024 received from the following companies. Wuxi Shihlin Electric & Engineering Co., Ltd. had a net value limit of 40% that amounted to $143,911 thousand in equity (net value of $359,779 thousand as of December 31, 2024 × 40%).

Note 4: The amount was eliminated upon consolidation.

TABLE 2

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee		Limits on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries (Note 5)	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent (Note 5)	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China (Note 5)
		Name	Relationship (Note 2)
0	Shihlin Electric & Engineering Corp.	Shihlin Electric Engineering Equipment Vietnam Company Limited	a and b	$ 7,423,829 (Note 3)	$ 132,820	$ 132,820	$ -	$ -	0.36	$ 18,559,574 (Note 4)	Y	-	-
		Changzhou Shihlin Auto Parts Co., Ltd.	b	7,423,829 (Note 3)	365,257	365,257	-	-	0.98	18,559,574 (Note 4)	Y	-	Y
		Shihlin Technology (Shenzhen) Co., Ltd.	a and b	7,423,829 (Note 3)	23,129	23,129	-	-	0.06	18,559,574 (Note 4)	Y	-	Y
		Shihlin Electrical Engineering Ltd. of Vietnam	a and b	7,423,829 (Note 3)	166,026	166,026	-	-	0.45	18,559,574 (Note 4)	Y	-	-
		Wuxi Shihlin Electric & Engineering Co., Ltd.	a and b	7,423,829 (Note 3)	166,026	166,026	-	-	0.45	18,559,574 (Note 4)	Y	-	Y
		Suzhou Shihlin Electric & Engineering Corp.	a and b	7,423,829 (Note 3)	99,615	99,615	-	-	0.27	18,559,574 (Note 4)	Y	-	Y
		Shihlin Electric (Suzhou) Power Equipment Co., Ltd.	a and b	7,423,829 (Note 3)	99,615	99,615	50,921	-	0.27	18,559,574 (Note 4)	Y	-	Y

Note 1: Endorser/Guarantor is numbered as follows:
a. Parent: 0.
b. Investee sequentially numbered by Arabic numerals from 1.

Note 2: Relationships between the endorser/guarantee and the party being endorsed/guaranteed are as follows:
a. A company that the Corporation has business relationship with.
b. The Corporation owns directly or indirectly over 50% ownership of the investee company.
c. The Company that owns directly or indirectly hold over 50% ownership of the Corporation.
d. In between companies that were held over 90% of voting shares directly or indirectly by an entity.
e. The Corporation is required to provide guarantees or endorsements for the construction project based on the construction contract.
f. Shareholder of the investee provides endorsements/guarantees to the company in proportion to their shareholding percentages.
g. According to Consumer Protection Act, companies in the same industry enter into collateral performance guarantees for pre-construction home sales agreements.

Note 3: For subsidiaries that the Corporation holds more than 50% of the shares, 20% of the net value of the Corporation's latest financial statements is the limit for endorsement of a single enterprise, which is calculated to be $7,423,829 thousand (net value of $37,119,149 thousand as of March 31, 2025 × 20%).

Note 4: The maximum limit is 50% of the net value of the Corporation's latest financial statements, which is calculated to be $18,559,574 thousand (net value of $37,119,149 thousand as of March 31, 2025 × 50%).

Note 5: Parent company as subsidiary's guarantor, subsidiary as parent company's guarantor and guarantee companies from China are marked Y.

TABLE 3

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES)

MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	March 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Shihlin Electric & Engineering Corp.	Shares
	Arch Meter Corporation	The Corporation is a director	Financial assets at FVTOCI	5,636,050	$ 427,776	13.1	$ 427,776
	Jine De Sheng Co., Ltd.	The Corporation is a supervisor	Financial assets at FVTOCI	6,107,331	226,276	7.7	226,276
	HCT Logistics Co., Ltd.	Same chairman	Financial assets at FVTOCI	3,157,721	383,032	1.3	383,032
	HD Renewable Energy Co., Ltd.	-	Financial assets at FVTOCI	4,919,308	986,321	4.2	986,321

56 -

TABLE 4

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

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

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction (Note 1)		Notes/Accounts Receivable (Payable)		Note
			Purchases/ Sales	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Shihlin Electric & Engineering Corp.	Hsin Lin Electric Machinery Co., Ltd.	Subsidiary	Purchase	$ 690,440	5.7	Payment in 60 days after acceptance	$ -	-	$ -	-	Note
	Mitsubishi Electric Automation Corporation of Taiwan	Subsidiary of investor that has significant influence over the Group	Purchase	400,716	3.3	Payment in 55 days after acceptance	-	-	(222,771)	(4.9)	-
	Chuan Lin Technology Corporation	Subsidiary	Purchase	135,480	1.1	Payment in 90 days after acceptance	-	-	(89,641)	(2.0)	Note
	Shihlin Electric Engineering Equipment Vietnam Company Limited	Subsidiary	Purchase	122,346	1.0	Payment in 90 days after confirming	-	-	(49,030)	(1.1)	Note
Hsin Lin Electric Machinery Co., Ltd.	Shihlin Electric & Engineering Co.	Parent company	Sale	(690,440)	(100.0)	Collect receivables in 60 days after confirming	-	-	-	-	Note
Chuan Lin Technology Corporation	Shihlin Electric & Engineering Co.	Parent company	Sale	(135,480)	(98.3)	Collect receivables in 90 days after confirming	-	-	89,641	98.7	Note
Shihlin Electric Engineering Equipment Vietnam Company Limited	Shihlin Electric & Engineering Co.	Parent company	Sale	(122,346)	(54.0)	Collect receivables in 90 days after confirming	-	-	49,030	49.6	Note

Note: The amount have been eliminated in the consolidated financial statements.

TABLE 5

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transactions Details			% to Total Sales or Assets (Note 3)
				Financial Statement Account	Amount (Note 4)	Payment Terms
0	Shihlin Electric & Engineering Corp.	Hsin Lin Electric Machinery Co., Ltd.	a	Purchases	$ 690,440	According to the general conditions	6.7
		Chuan Lin Scien-Technical Corp.	a	Purchases	135,480	According to the general conditions	1.3
		Shihlin Electric Engineering Equipment Vietnam Company Limited	a	Purchases	122,346	According to the general conditions	1.2
		Xiamen Shihlin Electric & Engineering Co., Ltd.	a	Purchases	46,736	According to the general conditions	0.5

Note 1: Business relationships between the parent and subsidiaries are numbered as follows:
a. Parent: 0.
b. Subsidiaries, sequentially numbered by Arabic numerals from 1.

Note 2: Relationships between counterparties are numbered as follows:
a. Parent to subsidiary.
b. Subsidiary to parent.
c. One subsidiary to another subsidiary.

Note 3: Percentage of consolidated operating revenues or consolidated total assets: For balance sheet account, the percentage is calculated by dividing the ending balance of the account by consolidated total assets; for an income statement account, the percentage is calculated by dividing the accumulated amount in the current period of the account by the consolidated operating revenues.

Note 4: The amount was eliminated upon consolidation.

58 -

TABLE 6

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

INFORMATION ON INVESTEES (EXCLUDING INVESTMENTS IN MAINLAND CHINA)

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2025			Net Income (Loss) of the Investor	Share of Profits (Loss)	Note
				March 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Shihlin Electric & Engineering Corp.	SEEC International Holdings Ltd. of the British Virgin Islands	British Virgin Islands	Investment and trade business	$ 1,583,877	$ 1,583,877	48,828,287	100.0	$ 5,163,390	$ 29,582	$ 37,521 (Note 1)	Subsidiary (Note 6)
	Shihlin Electrical Engineering Ltd. of Vietnam	Vietnam DongNai	Electrical goods production	57,521	57,521	(Note 5)	100.0	583,775	22,387	22,989 (Note 1)	Subsidiary (Note 6)
	Shihlin Electric USA Company Limited	California	The heavy electrical equipment product marketing promotion services	79,879	79,879	2,500,000	100.0	4,979	(4,904)	(4,904)	Subsidiary (Note 6)
	Yuh Lin Investment Co., Ltd.	Taipei	Investment	429,896	429,896	42,990,000	94.3	992,540	(3,204)	(3,021)	Subsidiary (Note 6)
	Hwo Lin Investment Co., Ltd.	Taipei	Investment	499,885	499,885	49,990,000	94.8	908,303	(3,234)	(3,066)	Subsidiary (Note 6)
	Ji Lin Investment Co., Ltd.	Taipei	Investment	379,882	379,882	37,990,000	99.9	634,911	(2,015)	(2,013)	Subsidiary (Note 6)
	Jeng Lin Investment Co., Ltd.	Taipei	Investment	229,896	229,896	22,990,000	89.4	541,704	(2,854)	(2,551)	Subsidiary (Note 6)
	Cheng Lin Investments Co., Ltd.	Taipei	Investment	618,038	538,038	61,807,000	99.7	1,048,537	1,933	1,927	Subsidiary (Note 6)
	Shang Lin Investment Co., Ltd.	Taipei	Investment	598,032	598,032	59,807,000	99.6	928,486	(1,756)	(1,749)	Subsidiary (Note 6)
	Hsin Lin Electric Machinery Co., Ltd.	Taipei	A variety of power transmission and distribution, data storage and processing equipment, machinery and communications equipment, electronic components and telecommunications equipment manufacturing, electronic materials and retail business	24,000	24,000	2,880,000	60.0	336,111	27,053	15,455	Subsidiary (Note 6)
	Ruei Lin Electric & Engineering Corp.	Hsinchu County	Mechanical appliances and electrical manufacturing various components of the processing of trading business	163,487	163,487	10,274,053	90.0	601,638	23,802	22,869 (Note 2)	Subsidiary (Note 6)
	Jeen-Lin Industrial Co., Ltd.	Hsinchu County	Manufacture of various metal machinery, purchase and sale of various metal materials, manufacture, purchase, sale, import and export of the products from aforementioned activities of which the first mold is managed by the Corporation	47,978	47,978	5,346,364	78.4	144,367	2,440	1,916 (Note 3)	Subsidiary (Note 6)
	Chuan Lin Scien-Technical Corp.	Hsinchu County	Operating a variety of vending machines and the sale of the maintenance service, vending machines set of management consultancy services, mechanical refrigeration and air conditioning equipment and affairs of the sale and installation of mechanical equipment business, the sale of a variety of heavy electrical machinery and mechanical appliances of automation equipment maintenance holds business, import and export business before the products, trading and export business of the switch	4,100	4,100	410,000	31.5	55,316	1,193	1,969	Subsidiary (Note 6)
Chan Der Investment Corp.	Taipei	Investment	51,030	51,030	2,438,783	8.1	112,723	(49)	(4)	Associate
Cheng Der Investment Corp.	Taipei	Investment	18,950	18,950	1,149,177	3.6	27,899	(53)	(2)	Associate
Yu Der Investment Corp.	Taipei	Investment	26,180	26,180	2,618,000	4.8	49,004	(136)	(6)	Associate
Tingling Enterprise Co., Ltd.	Taipei	Mechanical parking equipment manufacture of lifting equipment and toll system sale maintenance and automated warehousing equipment manufacturing business maintenance and agents at home and abroad before the manufacturers product pricing and distribution operations as well as the import and export business	123,760	123,760	12,188,000	96.7	296,113	(10)	(10)	Subsidiary (Note 6)

(Continued)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2025			Net Income (Loss) of the Investor	Shares of Profits (Loss)	Note
				March 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Ruei Lin Electric & Engineering Corp.	Shihlin Electric Green Power Corp.	Taipei	Investment consulting, management consulting, other consulting services, international trade, leasing, real estate leasing, information software services, data processing services, electronic information supply services, general advertising services, power generation, transmission, and distribution machinery manufacturing, self-use renewable energy power generation equipment and energy technology service and general investment	$ 300,000	$ 300,000	30,000,000	100.0	$ 301,814	$ 23	$ 23	Subsidiary (Note 6)
	968 Digital Information Co., Ltd.	Taipei	Information software services, data processing services, electronic information supply services, information software wholesale, information software retail, wholesale of computer and business machinery equipment, retailing of computer and business machinery equipment, international trade, temporary labor services, management consulting, investment consulting, general investment and leasing	10,000	10,000	1,000,000	33.3	10,917	231	77	Associate
	Gochabur Co., Ltd.	New Taipei City	A variety of power transmission and distribution, installation and maintenance, electronic components manufacturing, telecommunications equipment wholesale and retail, parking area operators, information software and technical services, product designing, repair and leasing	24,000	24,000	2,400,000	20.0	14,660	(6,951)	(1,390)	Associate
	Shilin Star Power Corporation	Taipei	Manufacture of equipment for electric vehicle charging piles and optical charging and storage solutions.	40,800	40,800	4,080,000	51.0	38,209	(1,846)	(658)	Subsidiary (Note 6)
	New Star Charging Technology Corp.	Taipei	Sales, control and operation of equipment related to electric vehicle charging piles and optical charging and storage solutions.	9,200	9,200	920,000	46.0	8,965	(356)	(164)	Associate
	The Ambassador Hotel Co., Ltd.	Taipei	International hotels business, with a restaurant, coffee shop, bar and club business	1,912,495	1,912,495	66,918,617	18.2	5,481,180	(386,845)	(69,535)	Associate
Ruei Lin Electric & Engineering Corp.	Shihlin Electric Engineering Vietnam Equipment Company Limited	Vietnam DongNai	Manufacture of mechanical equipment, mechanical appliances and their components; transmission and distribution and sales; and installation engineering; wired and wireless telecommunications wiring project; and related products import and export trade business	83,770	83,770	(Note 5)	100.0	403,868	23,932		Sub-subsidiary (Note 6)
	Wuling Electric Co., Ltd.	New Taipei City	Manufacturing, processing and sales of mechanical and electrical parts, power distribution equipment and switch products	25,197	25,197	1,500,000	30.0	35,876	9,593		Sub-subsidiary (Note 6)
	De Hong Investment Corp.	Taipei	Investment	40,000	40,000	4,000,000	2.4	121,242	(353)		Associate
Ji Lin Investment, Co., Ltd.	Chang Hong Investment Corp.	Taipei	Investment	130,017	130,017	13,002,000	16.1	256,422	(80)		Associate
	Yu Hong Investment Corp.	Taipei	Investment	50,000	50,000	5,000,000	2.5	96,809	(959)		Associate
	Yu Der Investment Corp.	Taipei	Investment	60,017	60,017	6,002,000	11.1	113,736	(136)		Associate
	Yeangder Entertainment Co., Ltd.	Taipei	Engaged in competitive and recreational sports industry	15,000	15,000	1,500,000	37.5	12,132	(521)		Sub-subsidiary (Note 6)
	The Ambassador Hotel Co., Ltd.	Taipei	International hotels business, with a restaurant, coffee shop, bar and club business	52,160	52,160	1,631,000	0.4	133,592	(386,845)		Associate
Shang Lin Investment Co., Ltd.	Chan Der Investment Corp.	Taipei	Investment	16,680	16,680	1,668,000	5.6	77,652	(49)		Associate
	Cheng Der Investment Corp.	Taipei	Investment	20,000	20,000	2,000,000	6.4	49,829	(53)		Associate
	Yu Hong Investment Corp.	Taipei	Investment	120,000	120,000	12,000,000	6.0	232,080	(959)		Associate
	Chang Hong Investment Corp.	Taipei	Investment	20,000	20,000	2,000,000	2.5	39,542	(80)		Associate
	The Ambassador Hotel Co., Ltd.	Taipei	International hotels business, with a restaurant, coffee shop, bar and club business	54,799	54,799	1,506,000	0.4	123,354	(386,845)		Associate
	Xin He Investment Corp.	Taipei	Investment	40,000	40,000	4,000,000	3.5	72,413	(644)		Associate
	De Hong Investment Corp.	Taipei	Investment	130,000	130,000	13,000,000	7.7	332,660	(353)		Associate

(Continued)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2025			Net Income (Loss) of the Investor	Note
				March 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Jeng Lin Investment Co., Ltd.	Cheng Der Investment Corp.	Taipei	Investment	$ 77,012	$ 77,012	5,733,342	18.4	$ 142,906	$ (53)	Associate
	Xin He Investment Corp.	Taipei	Investment	59,970	59,970	5,997,000	5.2	108,713	(644)	Associate
	The Ambassador Hotel Co., Ltd.	Taipei	International hotels business, with a restaurant, coffee shop, bar and club business	67,855	67,855	2,421,000	0.7	198,300	(386,845)	Associate
	De Hong Investment Corp.	Taipei	Investment	70,000	70,000	7,000,000	4.2	179,231	(353)	Associate
Hwo Lin Investment Co., Ltd.	Xin He Investment Corp.	Taipei	Investment	30,000	30,000	3,000,000	2.6	54,239	(644)	Associate
	Yu Hong Investment Corp.	Taipei	Investment	100,019	100,019	10,002,000	5.0	193,614	(959)	Associate
	Chan Der Investment Corp.	Taipei	Investment	49,011	49,011	4,700,956	15.7	218,762	(49)	Associate
	De Hong Investment Corp.	Taipei	Investment	86,019	86,019	8,002,000	4.8	204,550	(353)	Associate
	Chang Hong Investment Corp.	Taipei	Investment	20,000	20,000	2,000,000	2.5	39,542	(80)	Associate
	Yeangder Entertainment Co., Ltd.	Taipei	Engaged in competitive and recreational sports industry	25,000	25,000	2,500,000	62.5	20,220	(521)	Sub-subsidiary (Note 6)
	The Ambassador Hotel Co., Ltd.	Taipei	International Hotels business, with a restaurant, coffee shop, bar and club business	85,585	85,585	2,633,000	0.7	215,665	(386,845)	Associate
Yuh Lin Investment Co., Ltd.	Chan Der Investment Corp.	Taipei	Investment	40,000	40,000	1,389,558	4.6	64,731	(49)	Associate
	Chang Hong Investment Corp.	Taipei	Investment	70,000	70,000	7,000,000	8.6	138,297	(80)	Associate
	Xin He Investment Corp.	Taipei	Investment	140,009	140,009	14,001,000	12.2	253,530	(644)	Associate
	De Hong Investment Corp.	Taipei	Investment	90,000	90,000	9,000,000	5.4	230,397	(353)	Associate
	Yu Der Investment Corp.	Taipei	Investment	26,000	26,000	2,600,000	4.8	49,203	(136)	Associate
	The Ambassador Hotel Co., Ltd.	Taipei	International hotels business, with a restaurant, coffee shop, bar and club business	83,369	83,369	2,640,000	0.7	216,238	(386,845)	Associate
	Yu Hong Investment Corp.	Taipei	Investment	70,000	70,000	7,000,000	3.5	128,184	(959)	Associate
Cheng Lin Investments Co., Ltd.	Chuan Lin Scien-Technical Corp.	Hsinchu County	Various sale and service maintenance of vending machines, vending machine business management consultant business, refrigerated air conditioning machinery and mechanical appliances of installation and other businesses, a variety of electro-mechanical equipment sale for automated machinery and equipment repair and installation services, import and export of various products, the switch before sale and import and export business	9,747	9,747	540,000	41.5	72,947	1,193	Subsidiary (Note 6)
	Ruei Lin Electric & Engineering Corp.	Hsinchu County	All kinds of electrical machinery equipment and components of manufacturing and processing transactions	1,000	1,000	100,000	0.9	5,885	23,802	Subsidiary (Note 6)
	Xin He Investment Corp.	Taipei	Investment	180,000	180,000	18,000,000	15.6	326,119	(644)	Associate
	Yu Hong Investment Corp.	Taipei	Investment	160,000	120,000	16,000,000	8.0	309,397	(959)	Associate
	Yu Der Investment Corp.	Taipei	Investment	20,000	20,000	2,000,000	3.7	37,875	(136)	Associate
	De Hong Investment Corp.	Taipei	Investment	80,000	40,000	8,000,000	4.8	219,967	(353)	Associate
	The Ambassador Hotel Co., Ltd.	Taipei	International hotels business, with a restaurant, coffee shop, bar and club business	19,337	19,337	558,000	0.2	45,705	(386,845)	Associate
Chuan Lin Scien-Technical Corp.	Ruei Lin Electric & Engineering Corp.	Hsinchu County	All kinds of electrical machinery equipment and components of manufacturing and processing transactions	687	687	42,626	0.4	1,978	23,802	Subsidiary (Note 6)
	De Hong Investment Corp.	Taipei	Investment	40,000	40,000	4,000,000	2.4	121,600	(353)	Associate
Tingling Enterprise Co., Ltd.	De Hong Investment Corp.	Taipei	Investment	40,000	40,000	4,000,000	2.4	121,241	(353)	Associate
	Yu Hong Investment Corp.	Taipei	Investment	80,000	80,000	8,000,000	4.0	173,521	(959)	Associate
	The Ambassador Hotel Co., Ltd.	Taipei	International hotels business, with a restaurant, coffee shop, bar and club business	266	266	10,000	0.0	819	(386,845)	Associate
Hsin Lin Electric Machinery Co., Ltd.	Hsinlin International Investment Corp. of Samoa	Samoa (Note 4)	Investment	57,693	57,693	1,130,000	100.0	54,537	2,465	Sub-subsidiary (Note 6)
	Yuh Lin Investment Co., Ltd.	Taipei	Investment	26,000	26,000	2,600,000	5.7	59,995	(3,204)	Subsidiary (Note 6)
	Hwo Lin Investment Co., Ltd.	Taipei	Investment	27,000	27,000	2,700,000	5.1	48,864	(3,234)	Subsidiary (Note 6)
	Jeng Lin Investment Co., Ltd.	Taipei	Investment	27,000	27,000	2,700,000	10.5	63,623	(2,854)	Subsidiary (Note 6)
	Wuling Electric Co., Ltd.	New Taipei City	Manufacturing, processing and sales of mechanical and electrical parts, power distribution equipment and switch products	25,197	25,197	1,500,000	30.0	35,876	9,593	Sub-subsidiary (Note 6)

(Continued)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2025			Net Income (Loss) of the Investee	Note
				March 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Jee-Lin Industrial Co., Ltd.	Yu Hong Investment Corp.	Taipei	Investment	$ 40,000	$ 40,000	4,000,000	2.0	$ 86,761	$ (959)	Associate
Shihlin Electric Green Power Corp.	Rui Young Optronics Corp.	Taipei	Investment consulting, management consulting, other consulting services, international trade, leasing, real estate leasing, information software services, data processing services, electronic information supply services, general advertising services, power generation, transmission, and distribution machinery manufacturing, self-use renewable energy power generation equipment, energy technology service, general investment and specialized area development	84,000	84,000	8,400,000	30.0	84,188	76	Associate

Note 1: The adjusted unrealized gross profit and realized gross profit consist of downstream, upstream and sidestream transactions.

Note 2: The adjusted unrealized gross profit and realized gross profit consist of downstream transactions.

Note 3: The adjusted unrealized gross profit and realized gross profit consist of upstream transactions.

Note 4: The adjusted unrealized gross profit of sidestream transactions.

Note 5: The limited companies do not have shares.

Note 6: The amount was eliminated upon consolidation.

(Concluded)

TABLE 7

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(In Thousands of New Taiwan Dollars)

Investor Company in Mainland China	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of March 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Amount as of March 31, 2025	Accumulated Repatriation of Investment Income as of March 31, 2025	Note
					Outward	Inward
Changzhou Shihlin Mitsuba Electric & Engineering Co., Ltd.	Motorcycle starter motors, magneto, starter switch manufacturing and sales business	$ 192,835	b (Note 3)	$ 41,316 (Note 6)	$ -	$ -	$ 41,316 (Note 6)	$ 15,629	55.0	$ 6,846 (Note 7)	$ 345,437	$ 352,900	Note 5
Xiamen Shihlin Electric & Engineering Co., Ltd.	All kinds of switches, relays, circuit breakers and other products and components of the production, trafficking, technical advice and after sales service	391,115	b (Note 3)	325,403	-	-	325,403	18,459	100.0	21,452 (Note 7)	891,103	743,120	Note 5
Suzhou Shihlin Electric & Engineering Co., Ltd.	Capacitors, transformers, electric motors and other electronic components manufacturing and sales business	401,584	b (Note 3)	247,193	-	-	247,193	35,892	100.0	36,733 (Note 7)	983,609	364,366	Note 5
Wuxi Shihlin Electric & Engineering Co., Ltd.	Magneto and starter motor in locomotive transmission facilities, mobile and starter motors, power generators, and DC motor manufacturing and sales business	312,552	b (Note 3)	283,033	-	-	283,033	1,087	100.0	6,899 (Note 7)	371,927	12,134	Note 5
Mitsubishi Electric Shihlin Automotive Changzhou Co., Ltd.	Motorcycle starter motors, magneto, ignition coils and other control or distribution equipment manufacturing and sales business	167,512	b (Note 3)	37,021	-	-	37,021	(34,495)	49.0	(16,902) (Note 7)	524,353	644,033	-
Shihlin Electric (Suzhou) Power Equipment Co., Ltd.	High and low pressure switch, switchgear, digital meters, transformers, capacitors, reactors, bridge and related products manufacturing and sales business	174,614	b (Note 3)	56,439	-	-	56,439	12,324	50.5	6,223 (Note 7)	136,392	179,940	Note 5
Mitsuba Shihlin Electric (Wuhan) Co., Ltd.	Automotive cooling fans, wiper systems, starter, fuel pump, electronic control systems and other automotive electrical parts and accessory collar manufacturing sales and service business	230,811	b (Note 3)	103,865	-	-	103,865	14,305	45.0	6,437 (Note 7)	314,664	502,910	-
Shihlin Technology (Shenzhen) Co., Ltd.	Electronic products, machinery, mechanical and electrical equipment, industrial electric equipment, plastic products technology development, design, technical advice, technology transfers, wholesale, commission agent, import/export and related business	32,000	b (Note 3)	32,000	-	-	32,000	(3,856)	100.0	(3,856) (Note 7)	29,443	15,191	Note 5
Xiamen Chen-Ieu Transportation Implements Co., Ltd.	Manufacturing and motorcycle metal materials, electronic parts, all kinds of punch products parts, machine tools, machine tools, etc.	72,679	b (Note 3)	- (Note 8)	-	-	- (Note 8)	1,286	100.0	1,139 (Note 7)	90,610	-	Note 5
Mitsubishi Electric Low Voltage Equipment (Xiamen) Co., Ltd.	Low-voltage circuit breakers, magnetic switches of low voltage electrical apparatus and its components, such as research and development, manufacturing and after-sales service and technical advisory services	194,805	b (Note 3)	58,441	-	-	58,441	3,098	30.0	929 (Note 7)	79,771	3,939	-

(Continued)

Investee Company in Mainland China	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of March 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Amount as of March 31, 2025	Accumulated Repatriation of Investment Income as of March 31, 2025	Note
					Outward	Inward
Changzhou Shihlin Auto Parts Co., Ltd.	Motorcycle starter motors, magneto, starter switch manufacturing and sales business	$ 303,173	b (Note 3)	$ 183,948 (Note 9)	$ -	$ -	$ 183,948 (Note 9)	$ (6,819)	100.0	$ (6,775) (Note 7)	$ 385,533	$ 252,110	Note 5
Shihlin Electric (Suzhou) Power Equipment Co., Ltd.	High and low pressure switch, switchgear, digital meters, transformers, capacitors, reactors, bridge and related products manufacturing and sales business	174,614	b (Note 4)	22,173 (Note 10)	-	-	22,173 (Note 10)	12,324	20.0 (Note)	2,465 (Note 7)	54,017	65,850	Note 5
Accumulated Outward Remittance for Investment in Mainland China as of March 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
---	---	---
$1,368,659 (Note 11)	$1,368,659 (Note 11)	No upper limit on the amount of investment (Note 12)

Note 1: The methods of making investments in mainland China include the following:
a. Direct investment in mainland China.
b. Investment in mainland China through companies registered in third region.
c. Other methods.

Note 2: Recognized gain or loss in investment:
a. If it is in preparation and there is no investment gain (loss), it should be indicated.
b. The recognition of investment gain (loss) is divided into the following three types, it should be indicated.
1) The financial statement is audited and attested by certified public accounting firm with all cooperative relations with the Republic of China Accounting Firm.
2) The financial statement is audited and attested by certified public accountants of Taiwan.
3) Others.

Note 3: SEEC International Holdings Ltd. of the British Virgin Islands is the investor in third area.

Note 4: Hsinlin International Investment Corp. of Samoa, is the investor in third area.

Note 5: The amounts were eliminated upon consolidation.

Note 6: It has been deducted that the accumulated outward remittances for investment from Taiwan in the amount of $38,567 thousand for establishment of Changzhou Shihlin Auto Parts Co., Ltd. since spin-off in May 2013.

Note 7: Recognized gain and loss are based on Note 2, b. 3), which is based on the investee's unreviewed financial statements for the same period.

Note 8: The accumulated outward remittance for investment from Taiwan at the beginning and end of the year did not include $86,768 thousand of dividends received from investee company in mainland China.

Note 9: Changzhou Shihlin Mitsuba Electric has spun-off to Changzhou Shihlin Auto Parts Co., Ltd. in May 2013, which has accumulated outward remittance for investment from Taiwan in the amount of $38,567 thousand.

Note 10: The accumulated outward remittance for investment from Taiwan and the ownership of investment are the investment of Hsin Lin Electric Machinery Co., Ltd. through Hsinlin International Investment Corp. of Samoa.

Note 11: It excludes the investment of Hsin Lin Electric Machinery Co., Ltd. in mainland China.

Note 12: According to an issued operational headquarters' document from the Industrial Development Bureau, MOEA, which is still valid within the period, there is no upper limit on the Corporation's amount of investment.

(Concluded)

AI assistant

SEEC — Interim / Quarterly Report 2025

51835_rns_2026-05-29_14aec20f-5446-4d04-b90b-c54478b8c3fc.pdf

Shihlin Electric & Engineering Corp. and Subsidiaries

Qualified Conclusion

Other Matter

Notice to Readers

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

1. GENERAL INFORMATION

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

March 31, 2025

December 31, 2024

March 31, 2024

10. INVENTORIES

11. SUBSIDIARIES

Remarks:

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

15. INVESTMENT PROPERTIES

16. OTHER ASSETS

17. BORROWINGS

18. OTHER PAYABLES

19. PROVISIONS

20. RETIREMENT BENEFIT PLANS

21. EQUITY

24. INCOME TAXES

25. EARNINGS PER SHARE

Net Profit for the Year

26. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

27. CAPITAL MANAGEMENT

28. FINANCIAL INSTRUMENTS

Sensitivity analysis

2) Credit risk

29. TRANSACTIONS WITH RELATED PARTIES

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

33. SEPARATELY DISCLOSED ITEMS

34. OPERATING SEGMENT INFORMATION

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

SHIHLIN ELECTRIC & ENGINEERING CORP. AND SUBSIDIARIES

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