Sercomm — Audit Report / Information 2025

May 4, 2026

SERCOMM CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2025 AND 2024

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

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PWCR25000485

INDEPENDENT AUDITORS’ REPORT

To the Board of Directors and Shareholders of Sercomm Corporation

Opinion

We have audited the accompanying parent company only balance sheets of Sercomm Corporation (the “Company”) as at December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

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

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2025 are stated as follows:

Timing of revenue recognition from hub sales

Description

For the accounting policies of revenue recognition, please refer to Note 4(33); and for the details of revenue, please refer to Note 6(21).

The Company is mainly engaged in sales of global network communication software and equipment activities, and its sales types are mainly divided into shipped directly from factories and goods picked up from hubs. For pick-ups from hub, the Company recognises sales revenue when their customers pick up the goods (satisfies the performance obligation) from hubs. The Company recognises sales revenue based on movements of inventories contained in the statements or other information provided by the hub custodians. As the hubs are located around the world with numerous custodians, the frequency and contents of statements provided by custodians vary, and the process of revenue recognition involves numerous manual procedures, these factors may potentially result in inaccurate timing of sales revenue recognition and discrepancy between physical inventory quantities in the hubs and quantities as reflected in the accounting records. As the transaction amounts from hubs prior to and after the balance sheet date are significant to the financial statements, we consider the timing of revenue recognition from hub sales as a key audit matter.

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How our audit addressed the matter

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

1. Assessed and tested the appropriateness of internal controls over hub sales revenue, including understanding and testing the statements between the Company and hub custodians periodically.

2. Obtained the stock details of each hub at the balance sheet date and agreed to respective supporting documents provided by hub custodians.

3. Confirmed inventory quantities held at hubs and agreed to accounting records to validate the revenue recognition in proper period.

Valuation of inventory

Description

For the accounting policies of inventory, please refer to Note 4(13); and for the accounting estimates of valuation of inventory and assumption uncertainty, please refer to Note 5. For details on loss on inventory valuation, please refer to Note 6(7). As of December 31, 2025, the cost of inventory and loss on inventory valuation are $7,289,346 thousand and $291,787 thousand, respectively.

Due to rapid technological innovations and intense competition in the telecom market, there is a higher risk of inventory losses due to market value decline or obsolescence. The Company recognises inventories at the lower of cost and net realisable value, and the net realisable value is estimated based on historical experience, such as inventories aged over a certain period of time or individually identified as obsolete.

Since the industry which the Company is engaged in rapidly changes, the estimate of net realizable value for obsolete inventory is subject to management’s judgment, and the aforementioned matters also exist in the Company’s subsidiaries (shown as investments accounted for using the equity method), we consider valuation of inventory as a key audit matter.

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How our audit addressed the matter

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

1. Assessed the reasonableness of accounting policies and procedures in relation to inventory valuation, including the classification of aged, damaged and obsolete inventory.

2. Reviewed the Company’s annual counting plan and conducted their physical counts on inventories to evaluate the control effectiveness on inventory classification.

3. Validated the inventory classification and the amount of net realisable value, recalculated the loss of inventory and further evaluated the rationality.

Responsibilities of management and those charged with governance for the parent company only financial statements

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

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

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

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Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

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

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

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

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

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

3. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities controlled by the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

Wen, Ya-Fang

[Yen, Yu-Fang ]

For and on behalf of PricewaterhouseCoopers, Taiwan March 10, 2026

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

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SERCOMM CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(4) 6(5) 7 6(6) 7 6(7) 7 6(2) 6(3) 8 and 9 6(8) and 7 6(9) 6(10) 6(11) 6(27) 6(29) 9	December 31, 2025 AMOUNT % $ 2,943,713 8 5,723 - 17,331 - 8,775,847 23 5,546,444 15 789,011 2 35,421 - 183,417 - 6,997,559 18 339,833 1 12,618 - 25,646,917 67 - - 325,069 1 43,101 - 8,139,752 21 2,749,188 7 160,010 1 281,759 1 525,183 1 149,326 1 114,357 - - - 12,487,745 33 $ 38,134,662 100	December 31, 2024	December 31, 2024
		AMOUNT $ 2,943,713 5,723 17,331 8,775,847 5,546,444 789,011 35,421 183,417 6,997,559 339,833 12,618 25,646,917 - 325,069 43,101 8,139,752 2,749,188 160,010 281,759 525,183 149,326 114,357 - 12,487,745 $ 38,134,662	AMOUNT $ 5,679,509 13,384 20,425 6,274,745 6,330,157 742,322 26,329 28,738 4,697,699 349,000 11,223 24,173,531 - 294,453 110,440 7,434,144 2,815,196 197,378 288,464 674,446 92,111 119,466 240,000 12,266,098 $ 36,439,629	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss, current 1139 Financial assets for hedging, current 1170 Accounts receivable, net 1180 Accounts receivable due from related parties, net 1200 Other receivables 1210 Other receivables due from related parties 1220 Current income tax assets 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Current assets Non-current assets 1510 Financial assets at fair value through profit or loss, non-current 1517 Financial assets at fair value through other comprehensive income, non- current 1535 Financial assets at amortised cost, non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for business facilities 1920 Guarantee deposits paid 1960 Prepayments for investments 15XX Non-current assets 1XXX Current tax assets				16 - - 17 17 2 - - 13 1 -
				66
				- 1 - 20 8 1 1 2 - - 1
				34
				100

(Continued)

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SERCOMM CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2025 December 31, 2024 Notes AMOUNT % AMOUNT % 6(12) $ 1,411,678 4 $ 1,016,211 3 6(2) 24,013 - 39,583 - 6(4) 18,486 - - - 6(21) 779,317 2 752,213 2 5,325,100 14 3,911,472 11 7 5,666,893 15 3,656,226 10 2,537,847 7 2,960,157 8 7 1,445,211 4 973,760 3 104,564 - 117,769 - 6(16) 952,223 2 945,961 3 55,104 - 51,553 - 6(13) - - 1,400,000 4 6(21) 158,770 - 114,168 - 9 361,721 1 921,366 2 18,840,927 49 16,860,439 46 6(2) 32,100 - 18,600 - 6(13) 2,848,419 8 2,798,505 8 6(27) 268,141 1 249,750 1 107,423 - 143,851 - 6(14) 12,693 - 22,092 - 6(8) 69,295 - 18,030 - 3,338,071 9 3,250,828 9 22,178,998 58 20,111,267 55 6(17) 3,043,426 8 3,000,496 8 6(18) 6,572,515 17 6,354,493 17 6(19) 2,042,692 5 1,814,255 5 356,140 1 689,875 2 4,883,210 13 4,944,900 14 6(20) ( 520,509) ( 1) ( 356,140) ( 1 ) 6(17) ( 421,810) ( 1) ( 119,517) - 15,955,664 42 16,328,362 45 9 11 $ 38,134,662 100 $ 36,439,629 100

Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss, current 2126 Financial liabilities for hedging, current 2130 Contract liabilities, current 2170 Accounts payable 2180 Accounts payable to related parties 2200 Other payables 2220 Other payables to related parties 2230 Current income tax liabilities 2250 Provisions for liabilties, current 2280 Current lease liabilities 2320 Long-term liabilities, current portion 2365 Current refund liabilities 2399 Other current liabilities, others 21XX Current liabilities Non-current liabilities 2500 Financial liabilities at fair value through profit or loss, non-current 2530 Bonds payable 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2640 Net defined benefit liability, non- current 2650 Credit balance of investments accounted for using equity method 25XX Non-current liabilities 2XXX Liabilities Equity Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Undistributed retained earnings Other equity interest 3400 Other equity interest Treasury stocks 3500 Treasury stocks 3XXX Equity Significant contingent liabilities and unrecognised Significant subsequent events 3X2X Total liabilities and equity

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

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SERCOMM CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

Items

Year ended December 31 2025 2024 Notes AMOUNT % AMOUNT % 6(21) and 7 $ 50,674,039 100 $ 52,499,922 100 6(7) and 7 ( 44,842,686) ( 88) ( 44,677,639) ( 85) 5,831,353 12 7,822,283 15 2,216 - 2,131 - 5,833,569 12 7,824,414 15 6(25)(26) and 7 ( 1,992,290) ( 4) ( 2,242,979) ( 4) ( 705,687) ( 2) ( 782,965) ( 2) ( 2,132,050) ( 4) ( 1,833,336) ( 3) 12(2) 11,844 - 8,358 - ( 4,818,183) ( 10) ( 4,850,922) ( 9) 1,015,386 2 2,973,492 6 90,952 - 114,023 - 6(22) 59,427 - 9,456 - 6(23) and 7 ( 20,431) - 55,697 - 6(24) and 7 ( 240,228) - ( 277,573) ( 1) 6(8) 554,177 1 ( 98,919) - 443,897 1 ( 197,316) ( 1) 1,459,283 3 2,776,176 5 6(27) ( 256,478) ( 1) ( 505,170) ( 1) $ 1,202,805 2 $ 2,271,006 4 6(14) $ 4,418 - $ 16,709 - 6(20) ( 132,989) - 52,904 - 6(20) ( 2,777) - 5,166 - 6(20)(27) 25,714 - ( 13,924) - ( 105,634) - 60,855 - 6(20) ( 144,328) - 284,032 1 6(20) ( 14,514) - 29,445 - 6(20)(27) 2,903 - ( 5,889) - ( 155,939) - 307,588 1 ($ 261,573) - $ 368,443 1 $ 941,232 2 $ 2,639,449 5 6(28) $ 4.04 $ 7.74 6(28) $ 3.95 $ 7.49

4000 Operating revenue 5000 Operating costs 5900 Gross profit 5920 Realized profit from sales 5950 Gross profit Operating expenses 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit impairment gain 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit (loss) of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Components of other comprehensive income that will not be reclassified to profit or loss 8311 Gains on remeasurements of defined benefit plans 8317 (Losses) gains on hedging instrument that will not be reclassified to profit or loss 8330 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8368 (Losses) gains on hedging instrument 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive (loss) income 8500 Total comprehensive income Earnings per share 9750 Basic earnings per share 9850 Diluted earnings per share

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

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SERCOMM CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Year 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income for the year Total comprehensive income Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends Compensation cost of employee stock options Exercise of employee stock options Issuance of employee restricted stock Compensation cost of employee restricted stock Removal of hedging reserve Reclassification of ineffective hedging reserve Conversion of convertible bonds Balance at December 31, 2024 Year 2025 Balance at January 1, 2025 Profit for the year Other comprehensive income(loss) for the year Total comprehensive income(loss) Appropriation and distribution of retained earnings: Legal reserve appropriated Reversal of special reserve Cash dividends Compensation cost of employee stock options Exercise of employee stock options Issuance of employee restricted stock Compensation cost of employee restricted stock Acquisition of treasury stock Removal of hedging reserve Reclassification of ineffective hedging reserve Balance at December 31, 2025	Notes	Share c	apital Advance receipts for share capital	Capital surplus		Retained earnings	Unappropriated retained earnings		Other equityinterest	Other equityinterest	Other equity, others	Treasurystocks		Total equity
		Common stock			Legal reserve	Special reserve		Exchange differences on translation of foreign financial statements	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Gains (losses) on hedging instruments
	6(20) 6(19) 6(15) 6(17)(18) 6(17)(18) 6(15) 6(4) 6(4) 6(20) 6(19) 6(15) 6(17)(18) 6(17)(18) 6(15) 6(17) 6(4) 6(4)	$ 2,685,781 - - - - - - - 7,150 34,040 - - - 273,525 $ 3,000,496 $ 3,000,496 - - - - - - - 39,130 3,800 - - - - $ 3,043,426	$ 105,989 - - - - - - - - - - - - ( 105,989) $ - $ - - - - - - - - - - - - - - $ -	$ 4,608,355 - - - - - - 49,311 11,154 338,698 - - - 1,346,975 $ 6,354,493 $ 6,354,493 - - - - - - 48,740 133,942 35,340 - - - - $ 6,572,515	$ 1,572,874 - - - 241,381 - - - - - - - - - $ 1,814,255 $ 1,814,255 - - - 228,437 - - - - - - - - - $ 2,042,692	$ 653,337 - - - - 36,538 - - - - - - - - $ 689,875 $ 689,875 - - - - ( 333,735 ) - - - - - - - - $ 356,140	$ 4,410,572 2,271,006 13,367 2,284,373 ( 241,381) ( 36,538) ( 1,472,126) - - - - - - - $ 4,944,900 $ 4,944,900 1,202,805 3,534 1,206,339 ( 228,437) 333,735 ( 1,373,327) - - - - - - - $ 4,883,210	($ 629,468) - 284,032 284,032 - - - - - - - - - - ($ 345,436) ($ 345,436) - ( 144,328) ( 144,328) - - - - - - - - - - ($ 489,764)	($ 32,210 ) - 5,166 5,166 - - - - - - - - - - ($ 27,044 ) ($ 27,044 ) - ( 2,777 ) ( 2,777 ) - - - - - - - - - - ($ 29,821 )	( $ 28,201) - 65,878 65,878 - - - - - - - ( 25,407) 4,070 - $ 16,340 $ 16,340 - ( 118,002) ( 118,002) - - - - - - - - 94,213 6,525 ( $ 924)	$ - - - - - - - - - ( 168,498) 168,498 - - - $ - $ - - - - - - - - - ( 8,740) 8,740 - - - $ -	($ 119,517) - - - - - - - - - - - - - ($ 119,517) ($ 119,517) - - - - - - - - - - ( 302,293) - - ($ 421,810)		$ 13,227,512 2,271,006 368,443 2,639,449 - - ( 1,472,126) 49,311 18,304 204,240 168,498 ( 25,407) 4,070 1,514,511 $ 16,328,362 $ 16,328,362 1,202,805 ( 261,573) 941,232 - - ( 1,373,327) 48,740 173,072 30,400 8,740 ( 302,293) 94,213 6,525 $ 15,955,664

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

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SERCOMM CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit impairment gain Impairment loss on performance guarantee Gains arising from derecognition of liabilities Net loss on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Compensation cost of share-based payments Share of (profit) loss of associates accounted for using equity method Gain on disposal of property, plant and equipment Realized gain from inter-affiliate accounts Loss on disposal of investments accounted for using equity method Losses arising from lease modifications Changes in operating assets and liabilities Changes in operating assets Financial assets and liabilities at fair value through profit or loss, current Accounts receivable Accounts receivable due from related parties, net Other receivables Other receivables due from related parties Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities, current Accounts payable Accounts payable to related parties Other payables Other payables to related parties Provisions for liabilties, current Current refund liabilities Other current liabilities Net defined benefit liabilities, non-current Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash flows from operating activities

YearendedDecember 31 Notes 2025 2024 $ 1,459,283 $ 2,776,176 6(25) 420,908 372,023 6(25) 127,778 151,907 12(2) ( 11,844 ) ( 8,358 ) 6(23) 14,750 14,750 6(23) ( 57,811 ) - 6(23) 73,135 163,425 6(24) 240,228 277,573 ( 90,952 ) ( 114,023 ) 6(15) 57,480 217,809 6(8) ( 554,177 ) 98,919 6(23) ( 4,211 ) ( 3,748 ) ( 2,216 ) ( 2,131 ) 6(23) - 199 6(23) - 192 ( 67,544 ) ( 100,786 ) ( 2,489,258 ) 2,088,615 783,713 ( 1,093,300 ) ( 153,672 ) ( 526,184 ) 26,329 37,018 ( 2,299,860 ) 5,609,158 9,167 92,418 ( 1,395 ) 129 27,104 28,452 1,413,628 ( 2,560,889 ) 2,010,667 ( 3,450,489 ) ( 385,024 ) ( 589,619 ) 471,451 ( 228,445 ) 6,262 295,849 44,602 ( 255,493 ) 66,678 12,038 ( 4,981 ) ( 4,650 ) 1,130,218 3,298,535 162,514 103,926 ( 252,142 ) ( 280,736 ) ( 253,276 ) ( 1,046,725 ) 787,314 2,075,000

(Continued)

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SERCOMM CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through other comprehensive income Acquisition for investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Proceeds from capital reduction of investments accounted for using equity method Increase in guarantee deposit paid Decrease (increase) in financial assets at amortised cost Return of investment prepayment Net cash flows (used in) from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term debts Payments of short-term debts Exercise of employee stock options Issuance of employee restricted stock Payments of principal portion of lease liabilities Acquisition of treasury stocks Repayments of bonds Cash dividends paid Increase in guarantee deposits received Decrease in guarantee deposits received Net cash flows used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2025 2024 6(29) ($ 270,898 ) ($ 411,381 ) 18,519 9,951 6(29) ( 198,138 ) ( 69,135 ) ( 6,700,000 ) ( 2,800,000 ) 6,700,000 3,950,000 ( 30,616 ) - 6(8) and 7 ( 245,054 ) ( 501,140 ) 7 - 1,173 6(8) and 7 - 241,770 ( 9,641 ) ( 22,313 ) 67,339 ( 1,286 ) 240,000 - ( 428,489 ) 397,639 6(30) 26,232,097 21,737,491 6(30) ( 25,836,630 ) ( 20,891,180 ) 6(17) 173,072 18,304 6(15) 30,400 204,240 6(30) ( 49,427 ) ( 46,614 ) 6(17) ( 302,293 ) - 6(30) ( 1,400,000 ) ( 2,300,000 ) 6(19) ( 1,373,327 ) ( 1,472,126 ) 6(30) 48,446 518,606 6(30) ( 616,959 ) ( 712,945 ) ( 3,094,621 ) ( 2,944,224 ) ( 2,735,796 ) ( 471,585 ) 5,679,509 6,151,094 $ 2,943,713 $ 5,679,509

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

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SERCOMM CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. HISTORY AND ORGANISATION

Sercomm Corporation (the “Company”) was incorporated on July 29, 1992. The Company is primarily engaged in research and development, manufacturing and sales of networking communication software and equipment.

The common stocks of the Company were traded on the Taipei Exchange since May 1999 and have been listed on the Taiwan Stock Exchange since December 2007.

1. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only financial statements were authorized for issuance by the Board of Directors on March 10, 2026.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IAS 21, ‘Lack of exchangeability’ January 1, 2025 Amendments to IAS 21, ‘Lack of exchangeability’

The amendments define exchangeability and provide the related application guidance on how an entity determines the spot exchange rate at the measurement date when a currency lacks exchangeability. In addition, the amendments require entities to provide more useful information in their financial statements when a currency cannot be exchanged into another currency.

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

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

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New Standards,InterpretationsandAmendments

Effective date by International Accounting StandardsBoard

Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’ Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature- dependent electricity’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’ Annual Improvements to IFRS Accounting Standards—Volume 11

January 1, 2026 January 1, 2026 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2026

• A. Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’

The IASB issued the amendments to:

• (a) Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion, covering contractual terms that can change cash flows based on contingent events (for example, interest rates linked to ESG targets), nonrecourse features and contractually-linked instruments.

• (b) Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets), including a qualitative description of the nature of the contingent event, quantitative information about the possible changes to contractual cash flows that could result from those contractual terms and the gross carrying amount of financial assets and amortised cost of financial liabilities subject to these contractual terms.

• (c) Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception relating to the derecognition of a financial liability (or part of a financial liability) settled through an electronic cash transfer system. Applying the exception, an entity is permitted to derecognise a financial liability at an earlier date if, and only if, the entity has initiated a payment instruction and specific conditions are met.

The conditions for the exception are that the entity making the payment does not have:

• i. the practical ability to withdraw, stop or cancel the payment instruction;

• ii. the practical ability to access the cash used for settlement; and

• iii. significant settlement risk.

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• (d) Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

• B. Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’

• The amendments apply to contracts that expose an entity to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions (such as the weather). These amendments include:

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

  • When the contract requires an entity to buy and take delivery of electricity when it is generated, and the design and operation of the market in which the electricity is transacted under the contract require the entity to sell any amounts of unused electricity within a specified time, the entity shall consider reasonable and supportable information regarding its past, current and expected future electricity transactions within a reasonable amount of time not exceeding 12 months. An entity is considered a ‘net purchaser’ if it buys sufficient electricity to offset any sales of unused electricity in the same market in which the entity sold the electricity.

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

• i. Variability in the underlying amount of basic electricity and the risk that the entity would be required to buy electricity during a delivery interval in which it cannot use the electricity;

• ii. Unrecognised contract commitments, including the expected future cash flows from buying electricity under these contracts; and

• iii. The effects of the contracts on the entity’s financial performance for the reporting period.

• (b) Permitting hedge accounting if these contracts referencing nature-dependent electricity are used as hedging instruments:

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

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For entities that designate contracts referencing nature-dependent electricity as hedging instruments, the terms and conditions of such hedging instruments shall be disclosed according to risk categories in compliance with IFRS 7.

• C. IFRS 17, ‘Insurance contracts’

• IFRS 17 ‘Insurance contracts’ replaces IFRS 4 and establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued. The standard applies to insurance contracts (including reinsurance contracts) issued, to reinsurance contracts held and to investment contracts with discretionary participation features issued, provided the entity also issues insurance contracts. Embedded derivatives, distinct investment components and distinct performance obligations shall be separated from the insurance contracts. An entity shall, at initial recognition, disaggregate a portfolio into three groups of contracts: onerous, no significant risk of becoming onerous, and remaining contracts. IFRS 17 requires a current measurement model, where estimates are remeasured in each reporting period. The measurement is based on the building blocks of discounted, probability-weighted cash flows, a risk adjustment and a contractual service margin (‘CSM’) representing the unearned profit of the contract. An entity may apply a modified simplified measurement approach (the premium allocation approach) to some insurance contracts. An entity recognises the profit from a group of insurance contracts over the period the entity provides insurance coverage, and as the entity is released from risk. If a group of contracts is or becomes loss-making, an entity recognises the loss immediately. Entities are required to present separately insurance revenue, insurance service expenses and insurance finance income or expenses and to disclose information about amounts, judgements and risks arising from insurance contracts.

• D. Amendments to IFRS 17, ‘Insurance contracts’

• The amendments to IFRS 17 include the deferral of effective date, expected recovery of insurance acquisition cash flows, contractual service margin attributable to investment services, reinsurance contracts held – recovery of losses and other amendments, and they are not intended to change the fundamental principles of the standard.

• E. Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 – comparative information' The amendment permits an entity to apply an optional classification overlay in the comparative period(s) presented on initial application of IFRS 17. The overlay allows all financial assets, including those held in respect of activities not connected to contracts within the scope of IFRS 17, to be classified, on an instrument-by-instrument basis, in the comparative period(s) in a way that aligns with how the entity expects those assets to be classified on initial application of IFRS 9. The overlay can be applied by entities that have already applied IFRS 9 or will apply it when they apply IFRS 17.

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

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

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

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an To be determined by investor and its associate or joint venture’ International Accounting Standards Board IFRS 18, ‘Presentation and disclosure in financial statements’ January 1, 2027(Note) IFRS 19, ‘Subsidiaries without public accountability: disclosures’ January 1, 2027 Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’ January 1, 2027

• Note ： The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

• A. Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’

• The amendments resolve a current inconsistency between IFRS 10 and IAS 28. The gain or loss resulting from a transaction that involves sales or contribution of assets between an investor and its associates or joint ventures is recognised either in full or partially depending on the nature of the assets sold or contributed:

• (a) If sales or contributions of assets constitute a ‘business’, the full gain or loss is recognised;

• (b) If sales or contributions of assets do not constitute a ‘business’, the partial gain or loss is recognised only to the extent of unrelated investors’ interests in the associate or joint venture.

• B. IFRS 18, ‘Presentation and disclosure in financial statements’

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

• C. IFRS 19, ‘Subsidiaries without public accountability: Disclosures’

• The standard permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures.

• D. Amendments to IAS 21, 'Translation to a Hyperinflationary Presentation Currency' The amendments require all amounts (including comparatives) to be translated from a functional currency that is the currency of a non-hyperinflationary economy to a presentation currency that is the currency of a hyperinflationary economy using the closing rate at the date of the most recent statement of financial position. The amendments also include an exception for entities with a functional and presentation currency that is the currency of a hyperinflationary economy to not retranslate comparatives of foreign operation(s) with the functional currency of a non-

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hyperinflationary economy. The amendments also require additional disclosures including the applied translation method and summarised financial information about the foreign operation(s) to which the translation method is applied.

Except for IFRS 18, ‘Presentation and disclosure in financial statements’ to whose impact will be disclosed when the assessment is complete, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

• (2) Basis of preparation

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

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

  • (b) Financial assets at fair value through other comprehensive income.

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

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the parent company only financial statements are measured by using the currency of the primary economic environment in which the Company operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency.

• A. Foreign currency transactions and balances

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

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recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash flow hedges.

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

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

  - (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within “other gains and losses.”

• B. Translation of foreign operations

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

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

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

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

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

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

  • (a) Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

  • (b) Assets that are held primarily for the purpose of trading;

  • (c) Assets that are expected to be realised within twelve months after the reporting period;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

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

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

  • (b) Liabilities that are held primarily for the purpose of trading;

  • (c) Liabilities that are due to be settled within twelve months after the reporting period;

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

(5) Cash equivalents

• Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (including time deposits with maturity within 12 months).

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

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

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

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

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

(7) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

• (a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

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

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

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

• (a) The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

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• (b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

(8) Financial assets at amortised cost

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

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

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

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

(9) Accounts and notes receivable

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

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

• C. The Company’s operating pattern of accounts receivable that are expected to be factored is for the purpose of selling, and the accounts receivable are subsequently measured at fair value, with any changes in fair value recognised in profit or loss.

• (10) Impairment of financial assets

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

(11) Derecognition of financial assets

The Company derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Company has not retained control of the financial asset.

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• (12) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

• (13) Inventories

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

(14) Investments accounted for using the equity method / subsidiaries

• A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Inter-company transactions, balances and unrealised gains or losses on transactions between the Company and subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise the losses in proportion to the ownership.

• D. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• E. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

(15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount

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of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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

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

are as follows:
Buildings and structures	31 ~ 57 years
Machinery and equipment	6 years
Research and development equipment	6 years
Office and other equipment	2 ~ 6 years

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

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

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

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

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

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

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• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(17) Intangible assets

• A. Computer software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 to 15 years.

• B. Patents

• Patents are stated at cost and amortised on a straight-line basis over its estimated useful life of 5 years.

• C. Customer contracts and related customer relationships

Customer contracts and related customer relationships are stated at their fair values at the acquisition date and amortised using the straight-line method over its estimated economic service life of 5 years.

(18) Impairment of non-financial assets

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

(19) Borrowings

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

• B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

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(20) Notes and accounts payable

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

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

• (21) Financial liabilities at fair value through profit or loss

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.

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

• C. If the credit risk results in fair value changes in financial liabilities designated as at fair value through profit or loss, they are recognised in other comprehensive income in the circumstances other than avoiding accounting mismatch or recognising in profit or loss for loan commitments or financial guarantee contracts.

(22) Bonds payable

• Ordinary corporate bonds issued by the Company are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

• (23) Convertible bonds payable

• Convertible bonds issued by the Company contain conversion options (that is, the bondholders have the right to convert the bonds into the Company’s common shares by exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Company classifies the bonds payable upon issuance as a financial asset, a financial liability or an equity instrument in accordance with the contract terms. They are accounted for as follows:

• A. The embedded call options and put options are recognised initially at net fair value as ‘financial assets or financial liabilities at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognised as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.

• B. The host contracts of bonds are initially recognised at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortised in profit or loss as an adjustment to ‘ finance costs ’ over the period of circulation using the effective interest method.

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• C. The embedded conversion options which meet the definition of an equity instrument are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable as stated above. Conversion options are not subsequently remeasured.

• D. Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.

• E. When bondholders exercise conversion options, the liability component of the bonds (including bonds payable’ and ‘financial assets or financial liabilities at fair value through profit or loss‘) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total carrying amount of the abovementioned liability component and ‘capital surplus—share options’.

(24) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expired.

(25) Non-hedging and embedded derivatives

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

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

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

(26) Hedge accounting

• A. At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Company’s risk management objective and strategy for undertaking the hedge. That documentation shall include identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements.

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• B. The Company designates the cash flow hedge as a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction.

• C. Cash flow hedges

  • (a) The cash flow hedge reserve associated with the hedged item is adjusted to the lower of the following (in absolute amounts):

    • i. the cumulative gain or loss on the hedging instrument from inception of the hedge; and

    • ii. the cumulative change in fair value of the hedged item from inception of the hedge.

  • (b) The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income. The gain or loss on the hedging instrument relating to the ineffective portion is recognised in profit or loss.

  • (c) The amount that has been accumulated in the cash flow hedge reserve in accordance with item (a) is accounted for as follows:

    • i. If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, the Company shall remove that amount from the cash flow hedge reserve and include it directly in the initial cost or other carrying amount of the asset or liability.

    • ii. For cash flow hedges other than those covered by item i. above, that amount shall be reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect profit or loss.

    • iii. If that amount is a loss and the Company expects that all or a portion of that loss will not be recovered in one or more future periods, it shall immediately reclassify the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.

  • (d) When the hedging instrument expires, or is sold, terminated, exercised or when the hedging relationship ceases to meet the qualifying criteria, if the forecast transaction is still expected to occur, the amount that has been accumulated in the cash flow hedge reserve shall remain in the cash flow hedge reserve until the forecast transaction occurs; if the forecast transaction is no longer expected to occur, the amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment.

• (27) Provisions

• Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current

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market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses.

• (28) Employee benefits

• A. Short-term employee benefits

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

• B. Pensions

• (a) Defined contribution plans

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

• (b) Defined benefit plans

  • i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

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

  • iii.Past service costs are recognised immediately in profit or loss.

• C. Employees’ compensation and directors’ remuneration

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

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- (29) Employee share based payment

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

• B. Restricted stocks:

• (a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period.

• (b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognises the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

• (c) For restricted stocks where employees have to pay to acquire those stocks, if employees resign during the vesting period, they must return the stocks to the Company and the Company must refund their payments on the stocks, the Company recognises the payments from the employees who are expected to resign during the vesting period as liabilities at the grant date, and recognises the payments from the employees who are expected to be eventually vested with the stocks in ‘capital surplus – restricted stock.’

(30) Income tax

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

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

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• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

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

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

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

• (31) Share capital

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

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

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(32) Dividends

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

(33) Revenue recognition

• A. Revenue is recognised when control of the products has transferred, and the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

• The Company uses five steps to determine the revenue recognition: Step 1: Identify the contract.

• Step 2: Identify the obligation in contract.

• Step 3: Determine transaction price.

• Step 4: Distribute transaction price to each obligation in contract.

• Step 5: Recognise revenue when those obligations are satisfied.

• B. Revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected payable to customers in relation to sales made until the end of the reporting period.

• C. The Company’s obligation to provide a refund for faulty products under the standard warranty terms is recognised as a provision.

• D. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

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

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

None.

(2) Critical accounting estimates and assumptions

• Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to

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the rapid technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation. For the details of evaluation of inventories, please refer to Note 6.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

December 31, 2025 Cash on hand and revolving funds 2,103 $ Checking accounts and demand deposits 1,541,610 Time deposits 1,400,000 2,943,713 $	December 31, 2024
	2,006 $ 877,503 4,800,000
	5,679,509 $

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

• B. The Company’s restricted deposits that were pledged as collateral for performance guarantee had been reclassified to ‘financial assets at amortised cost’. Refer to Note 8 for details.

• C. The Company has no cash and cash equivalents pledged to others.

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

Assets Current items: Financial assets mandatorily measured at fair value through profit or loss Forward foreign exchange contract Non-current items: Financial assets mandatorily measured at fair value through profit or loss Convertible bonds Valuation adjustment ( Liabilities Current items: Financial liabilities held for trading Forward foreign exchange contract Non-current items: Embedded derivatives The embedded call options and put options in convertible bonds	December 31,2025 5,723 $ 4,169 $ 4,169) ( - $ December31,2025 24,013 $ 32,100 $	December 31,2024
		13,384 $
		4,169 $ 4,169)
		- $
		December31,2024
		39,583 $
		18,600 $

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

through profit or loss are listed below:
		Years ended	December 31
		2025			2024
Financial assets mandatory measured at fair
value through profit or loss/ financial liabilities
held for trading
Embedded derivatives	($	13,500)		$	2,433
Beneficiary certificate		7,466			13,111
Forward foreign exchange contract	(	67,101)	(		178,969)
	($	73,135)	($		163,425)

• B. The Company entered into forward foreign exchange contracts to sell and buy various currency to hedge exchange rate risk of export proceeds and interest rate risk. However, these forward foreign exchange contracts are not accounted for under hedge accounting. The summary of contracts not yet matured and entered into by the Company are as follows:

Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts		December 31, 2025
	Currency	Contractperiod Contract amount 2025/12~2026/01 JPY 2,200,000 thousand 2025/12~2026/03 INR 1,817,643 thousand 2025/12~2026/03 USD 115,000 thousand 2025/12~2026/01 EUR 16,400 thousand Contractperiod Contract amount 2024/12~2025/01 JPY 210,000 thousand 2024/12~2025/02 INR 4,006,732 thousand 2024/12~2025/02 USD 140,000 thousand 2024/12~2025/02 EUR 32,500 thousand December31,2024
	Buy TWD/Sell JPY Buy USD/Sell INR Buy TWD/Sell USD Buy TWD/Sell EUR Currency
	Buy TWD/Sell JPY Buy USD/Sell INR Buy TWD/Sell USD Buy TWD/Sell EUR

• C. The Company’s financial assets at fair value through profit or loss were not pledged to others as collateral.

• D. Information relating to fair value of financial assets at fair value through profit or loss is provided in Note 12(3).

(3) Financial assets at fair value through other comprehensive income

Non-current items: Designation of equity instruments Unlisted stocks Valuation adjustment (	December31,2025 388,434 63,365) ( 325,069 $	December31,2024 357,818 63,365) 294,453 $

• A. The Company has elected to classify investments that are considered to be strategic investments or steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $325,069 and $294,453 as at December 31, 2025 and 2024, respectively.

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• B. The Company’s investment in equity instruments measured as at fair value through other comprehensive income had no significant fluctuations on fair value for the years ended December 31, 2025 and 2024.

• C. The Company’s financial assets at fair value through other comprehensive income were not pledged to others as collateral.

• D. Information relating to fair value of financial assets at fair value through other comprehensive income is provided in Note 12(3).

(4) Hedging financial assets and liabilities

Cash flow hedges: Exchange rate risk Forward foreign exchange contract	December	Liabilities 18,486 $ 31,2025	December	31,2024
	Assets 17,331 $		Assets 20,425 $	Liabilities
				- $

• A. Hedge accounting is applied to remove the accounting inconsistency between the hedging instrument and the hedged item. As the Company’s EUR, GBP, JPY and AUD denominated accounts receivable, and USD denominated accounts payable are exposed to the impact of variable exchange rate, the Company uses forward foreign exchange contract of exposed risk with 1:1 hedge ratio to control the exchange rate risk under their acceptable range based on the Company’s risk management policies.

• B. Transaction information associated with the Company adopting hedge accounting is as follows:

December 31, 2025

Hedgeditems Forecast transaction	Derivative instruments designated ashedges	Fair value of instruments designated as hedges	Period of anticipated cash flow	Period of gain (loss) expected to be recognised in statements of comprehensive income
				2026/01~2026/09 Period of gain (loss) expected to be recognised in statements of comprehensive income
Hedged items Forecast transaction	Derivative instruments designated as hedges	Fair value of instruments designated as hedges	Period of anticipated cash flow
	Forward foreign exchange contracts	20,425 $	2025/01~2025/12	2025/01~2025/12

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C. Information of contracts not yet matured is as follows:

Cash flow hedge: Currency Contractperiod Forward foreign exchange contracts Sell JPY / Buy USD 2025/04~2026/06 JPY 2,090,000 thousand Forward foreign exchange contracts Sell EUR / Buy USD 2025/04~2026/09 EUR 40,000 thousand Forward foreign exchange contracts Sell AUD / Buy USD 2025/04~2026/08 AUD 4,500 thousand Forward foreign exchange contracts Sell GBP / Buy USD 2025/11~2026/04 GBP 2,000 thousand Currency Contractperiod Forward foreign exchange contracts Sell JPY / Buy USD 2024/09~2025/06 JPY 180,000 thousand Forward foreign exchange contracts Sell EUR / Buy USD 2023/05~2025/02 EUR 6,000 thousand Forward foreign exchange contracts Sell AUD / Buy USD 2024/10~2025/12 AUD 2,600 thousand December31,2025 December31,2024 Contract amount Contract amount 2025 2024 Other equity–cash flow hedge reserve At January 1 16,340 $ 28,201) ($ Profit or loss on hedge effectiveness – amount recognised in other comprehensive income 163,475) ( 75,283 Reclassified to profit or loss as the hedged item has affected profit or loss 45,473 9,405) ( Adjusted inventories as the hedged item has not been sold 94,213 25,407) ( Reclassified to profit or loss – forecast transaction is no longer expected to occur 6,525 4,070 At December 31 924) ($ 16,340 $			December31,2025	December31,2025
	Currency		Contractperiod	Contract amount
	Sell JPY / Buy USD Sell EUR / Buy USD Sell AUD / Buy USD Sell GBP / Buy USD
	Currency		Contractperiod	Contract amount
			2024/09~2025/06 2023/05~2025/02 2024/10~2025/12 2025

D. Cash flow hedge:

To hedge exposed exchange rate risk arising from forecast sales revenue and forecast purchase of inventory, the Company entered into a forward forecast sale agreement of EUR, GBP, JPY and AUD, and a forward forecast purchase agreement of USD, and the hedge ratio is 1:1. The effective portion with respect to the changes in the fair value of the hedging instruments is deferred to recognize in the cash flow hedge reserve, which is under other comprehensive income, and will be directly included in the sales revenue when the hedged items are subsequently recognized in accounts receivable; and will be directly included in the cost of inventory when the hedge items are subsequently recognized in inventory.

E. Information relating to fair value risk of hedging financial assets and liabilities is provided in Note 12(3).

(5) Accounts receivable

Accounts receivable Less: Allowance for loss (	December31,2025 8,796,717 $ 20,870) ( 8,775,847 $	December31,2024 6,307,459 $ 32,714) 6,274,745 $

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• A. As of December 31, 2025, the Company’s guarantee deposit received were held as collateral for accounts receivable amounting to $48,446, which was shown in ‘Other current liabilities, others.’

• B. The Company grants credit term to customers from 20 days to 210 days after the delivery date. Ageing analysis is conducted on the basis of the number of days overdue. Please refer to Note 12 for disclosures of credit risk and information on movement of impairment and analysis of accounts receivable.

• C. As of December 31, 2025 and 2024, the balances of receivables were all from contracts with customers. And as of January 1, 2024 the total balance of receivables from contracts with customers amounted to $8,690,527 and loss allowance amounted to $41,072.

• D. As of December 31, 2025 and 2024, without taking into account any other credit enhancements and credit insurance, the maximum hedge to credit risk in respect of the amount that best represents the Company’s accounts receivable were $8,775,847 and $6,274,745, respectively.

• (6) Transfer of financial assets

• A. The Company entered into a factoring agreement with financial institutions to sell its accounts receivable. Under the agreement, the Company prepared an offering document of purchase. The offering document states that the factoring is without the right of recourse, and the Company is not obligated to bear the default risk of the transferred accounts receivable, but is liable for the losses incurred on any business dispute. The Company does not have any continuing involvement in the transferred accounts receivable, thus, the Company met the condition of financial asset derecognition. The derecognised accounts receivable are summarised as follows:

December 31, 2025

Purchaser of accounts receivable	Accounts receivable transferred	Amount derecognised Facilities	Amount derecognised Facilities	Amount advanced	Amount available for advance	Interest rate range of amount advanced
DBS Bank (Taiwan) Ltd. Purchaser of accounts receivable Taipei Fubon Commercial Bank	484,530 $ (USD 15,412,000) - 484,530 $	484,530 $ USD 75,000,000 - USD 75,338,000 484,530 $ December 31,2024		- $ (USD 0) - - $	484,530 $ - 484,530 $	- 4.43% ~4.48%
	Accounts receivable transferred	Amount derecognised	Facilities	Amount advanced	Amount available for advance	Interest rate range of amount advanced
DBS Bank (Taiwan) Ltd. Taipei Fubon Commercial Bank	536,264 $ (USD 16,359,000) 529,916 (USD 16,165,000) 1,066,180 $	536,264 $ 529,916 1,066,180 $	USD 75,000,000 USD 73,313,000	417,527 $ (USD 12,736,000) - (USD 0) 417,527 $	118,737 $ 529,916 648,653 $	5.13% -

• B. As of December 31, 2025 and 2024, the amount that arose from factoring of accounts receivable but not yet received from banks in advance amounted to $484,530 and $648,653, respectively, which were reclassified as other receivables.

• C. Information of the pledged assets due to above factoring agreements are provided in Note 9.

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(7) Inventories

Raw materials Work in progress Finished goods Inventory in transit	December31,2025 927,667 $ 507,211 5,380,746 181,935 6,997,559 $	December31,2024 872,503 $ 243,227 3,491,016 90,953 4,697,699 $

The cost of inventories recognised as expense for the year:

Cost of goods sold (Gain on reversal of) Loss on decline in market value (	2025 2024 44,907,286 $ 44,312,955 $ 64,600) 364,684 44,842,686 $ 44,677,639 $ Years endedDecember31	2025 2024 44,907,286 $ 44,312,955 $ 64,600) 364,684 44,842,686 $ 44,677,639 $ Years endedDecember31
		44,312,955 $ 364,684 44,677,639 $

In 2025, the Company recognized a reversal of impairment losses due to certain inventory being scrapped or sold at a net realizable value lower than cost.

(8) Investments accounted for using the equity method

		December31,2025	December31,2025		December31,2024	December31,2024
Subsidiaries:
Sercomm Trading Co., Ltd.		$	5,644,536		$	5,196,272
Sercomm Philippines Inc.			1,458,987			1,375,106
Scnet (India) Private Limited			269,487			369,151
Sctek Manufacturing, S.A.DE C.V			206,001			42,594
Sercomm Japan Corp.			151,734			111,009
Sercomm Technology Inc.			122,893			93,880
MosoLabs Inc.			56,213			54,563
Sercomm France SARL			55,428			44,938
Sercomm USA Inc.			46,964			44,141
Sercomm Deutschland GmbH			45,344			12,770
Sercomm Investment Corp.			42,077			44,099
Sercomm Turkey Kablosuz İletişim
Sanayi ve Ticaret Anonim Şirketi			24,945			-
Sercomm International Inc.			7,767			-
Sercomm Britain Limited			7,376			6,401
Sereomm Russia Limited Liability Company	(		12,250)	(		7,221)
Sernet Technology Mexico	(		15,787)	(		10,809)

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December 31, 2025 December 31, 2024

	December31,2025	December31,2024
Subsidiaries: Servercom (India) Private Limited ( Add：Reclassified from credit balance of investment accounted for using the equity method	41,258) 8,070,457 69,295 8,139,752 $	39,220 7,416,114 18,030
		7,434,144 $

• A. Information about subsidiaries of the Company is provided in Note 4(3) in the 2025 consolidated financial statements.

• B. In order to expand the overseas market and fulfil subsidiaries’ working capital, the Company’s Board of Directors resolved to establish Sercomm Turkey Kablosuz İletişim Sanayi ve Ticaret Anonim Şirketi and Sercomm International Inc. in 2025, and inject capital of $29,114 and $6,305, respectively. Additionally, the Company increased capital in Sctek Manufacturing, S.A.DE C.V. and MosoLabs Inc. amounting to $164,653 and $44,982 in 2025, respectively.

• C. In order to expand the overseas market and manage capital of overseas subsidiaries, the Company’s Board of Directors resolved to establish Scnet (India) Private Limited and Sctek Manufacturing,S.A.DE C.V in 2024, and inject capital of $420,949 and $48,863, respectively. Additionally, the Company increased capital in MosoLabs Inc. amounting to $31,328, and decreased capital in Sercomm Trading Co. Ltd. amounting to $241,770 in 2024.

• D. The aforementioned investments accounted for using the equity method were measured based on the associate’s financial statements which were audited by independent auditors. The Company recognised investment profit of $554,177 and ($98,919) for the investments accounted for using equity method for the years ended December 31, 2025 and 2024, respectively.

• E. Details of the impact when the Company’s subsidiaries substantively enacted to implement the Pillar Two model rules are provided in Note 6(27) of the 2025 consolidated financial statements.

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(9) Property, plant and equipment

January 1 Cost Accumulated depreciation At January 1 Additions Reclassifications Disposals Depreciation charge At December 31 December 31 Cost Accumulated depreciation January 1 Cost Accumulated depreciation At January 1 Additions Reclassifications Disposals Depreciation charge At December 31 December 31 Cost Accumulated depreciation	Buildings Machinery Research and development Office and other and structures and equipment equipment equipment 1,273,063 $ 913,351 $ 625,321 $ 849,444 $ 1,517,757 $ 5,178,936 $ - 253,888) ( 471,737) ( 616,693) ( 1,021,422) ( 2,363,740) ( 1,273,063 $ 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ 1,273,063 $ 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ - - 63,486 85,443 137,791 286,720 - - 6,023 7,255 15,292 28,570 - - 2,761) ( 200) ( 11,347) ( 14,308) ( - 19,535) ( 56,986) ( 81,186) ( 209,283) ( 366,990) ( 1,273,063 $ 639,928 $ 163,346 $ 244,063 $ 428,788 $ 2,749,188 $ 1,273,063 $ 913,351 $ 681,140 $ 910,394 $ 1,632,201 $ 5,410,149 $ - 273,423) ( 517,794) ( 666,331) ( 1,203,413) ( 2,660,961) ( 1,273,063 $ 639,928 $ 163,346 $ 244,063 $ 428,788 $ 2,749,188 $ 2025 Land Total 2024	Buildings Machinery Research and development Office and other and structures and equipment equipment equipment 1,273,063 $ 913,351 $ 625,321 $ 849,444 $ 1,517,757 $ 5,178,936 $ - 253,888) ( 471,737) ( 616,693) ( 1,021,422) ( 2,363,740) ( 1,273,063 $ 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ 1,273,063 $ 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ - - 63,486 85,443 137,791 286,720 - - 6,023 7,255 15,292 28,570 - - 2,761) ( 200) ( 11,347) ( 14,308) ( - 19,535) ( 56,986) ( 81,186) ( 209,283) ( 366,990) ( 1,273,063 $ 639,928 $ 163,346 $ 244,063 $ 428,788 $ 2,749,188 $ 1,273,063 $ 913,351 $ 681,140 $ 910,394 $ 1,632,201 $ 5,410,149 $ - 273,423) ( 517,794) ( 666,331) ( 1,203,413) ( 2,660,961) ( 1,273,063 $ 639,928 $ 163,346 $ 244,063 $ 428,788 $ 2,749,188 $ 2025 Land Total 2024	Buildings Machinery Research and development Office and other and structures and equipment equipment equipment 1,273,063 $ 913,351 $ 625,321 $ 849,444 $ 1,517,757 $ 5,178,936 $ - 253,888) ( 471,737) ( 616,693) ( 1,021,422) ( 2,363,740) ( 1,273,063 $ 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ 1,273,063 $ 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ - - 63,486 85,443 137,791 286,720 - - 6,023 7,255 15,292 28,570 - - 2,761) ( 200) ( 11,347) ( 14,308) ( - 19,535) ( 56,986) ( 81,186) ( 209,283) ( 366,990) ( 1,273,063 $ 639,928 $ 163,346 $ 244,063 $ 428,788 $ 2,749,188 $ 1,273,063 $ 913,351 $ 681,140 $ 910,394 $ 1,632,201 $ 5,410,149 $ - 273,423) ( 517,794) ( 666,331) ( 1,203,413) ( 2,660,961) ( 1,273,063 $ 639,928 $ 163,346 $ 244,063 $ 428,788 $ 2,749,188 $ 2025 Land Total 2024
			2,749,188 $
			5,410,149 $ 2,660,961) (
			2,749,188 $
	1,273,063 $ - 1,273,063 $ 1,273,063 $ - - - - 1,273,063 $ 1,273,063 $ - 1,273,063 $ Land	Buildings Machinery Research and development Office and other and structures and equipment equipment equipment 913,351 $ 601,220 $ 754,407 $ 1,314,738 $ 4,856,779 $ 234,353) ( 423,227) ( 545,530) ( 864,345) ( 2,067,455) ( 678,998 $ 177,993 $ 208,877 $ 450,393 $ 2,789,324 $ 678,998 $ 177,993 $ 208,877 $ 450,393 $ 2,789,324 $ - 23,855 102,211 188,411 314,477 - 11,778 758) ( 31,409 42,429 - 2,923) ( 1,021) ( 2,259) ( 6,203) ( 19,535) ( 57,119) ( 76,558) ( 171,619) ( 324,831) ( 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ 913,351 $ 625,321 $ 849,444 $ 1,517,757 $ 5,178,936 $ 253,888) ( 471,737) ( 616,693) ( 1,021,422) ( 2,363,740) ( 659,463 $ 153,584 $ 232,751 $ 496,335 $ 2,815,196 $ Total	Total
			4,856,779 $ 2,067,455) (
			2,789,324 $
			2,815,196 $
			5,178,936 $ 2,363,740) (
			2,815,196 $

The Company did not have the property, plant and equipment that were pledged to others as collaterals.

(10) Leasing arrangements - lessee

• A. The Company leases various assets including land, buildings and transportation equipment. Lease agreements are typically made for periods of 2 to 6 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any restriction to the Company, but leased assets may not be used as collateral for borrowing.

• B. Short-term leases with a lease term of no more than 12 months include certain dormitories, business vehicles and premises.

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C. The movements of right-of-use assets of the Company are as follows:

2025

						Transportation	Transportation
		Land		Buildings		equipment			Total
At January 1	$	781	$	196,168	$		429	$	197,378
Additions		-		13,015			1,104		14,119
Lease modifications		-		2,431			-		2,431
Depreciation charge	(	781)	(	52,678)	(		459)	(	53,918)
At December 31	$	-	$	158,936	$		1,074	$	160,010
				2024
						Transportation
		Land		Buildings		equipment			Total
At January 1	$	3,901	$	167,643	$		797	$	172,341
Additions		-		69,820			-		69,820
Lease modifications	(	1,463)		3,872			-		2,409
Depreciation charge	(	1,657)	(	45,167)	(		368)	(	47,192)
At December 31	$	781	$	196,168	$		429	$	197,378
The information on income and expense accounts				relating to lease agreements is				as follows:
				Years		ended	December31
				2025				2024
Items affecting profit or loss
Interest expense on lease liabilities				$		3,147	$		3,308
Expense on short-term lease	contracts					4,448			4,976
Expense on leases of low-value assets						548			936
Losses arising from lease modifications						-			192

D. The information on income and expense accounts relating to lease agreements is as follows:

• E. For the years ended December 31, 2025 and 2024, the Company’s total cash outflow for leases amounted to $57,570 and $55,834, respectively.

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(11) Intangible assets

Computer software Patents January 1, 2025 Cost 1,174,079 $ 30,098 $ Accumulated amortisation 891,734) ( 23,979) ( 282,345 $ 6,119 $ At January 1, 2025 282,345 $ 6,119 $ Additions－acquired separately 25,826 2,204 Amortisation charge 124,893) ( 2,885) ( At December 31, 2025 183,278 $ 5,438 $ December 31, 2025 Cost 1,186,429 $ 32,302 $ Accumulated amortisation 1,003,151) ( 26,864) ( 183,278 $ 5,438 $

Customer contracts and the related relationships - $ 1,204,177 $ - 915,713) ( - $ 288,464 $ - $ 288,464 $ 93,043 121,073 - 127,778) ( 93,043 $ 281,759 $ 93,043 $ 1,311,774 $ - 1,030,015) ( 93,043 $ 281,759 $ Total

To expand the Company’s business and obtain supplier qualification from telecommunications operators, the Company purchased outstanding sales orders from the prior supplier. Therefore, the Company paid US$4,200 thousand in accordance with the agreement in 2025. The agreement further stipulates that US$1,500 thousand is refundable if the cumulative gross profit of designated products fails to meet the agreed conditions. Conversely, if the Company becomes a supplier of non-designated products, an additional payment of US$500 thousand shall be made.

January 1, 2024 Cost Accumulated amortisation At January 1, 2024 Additions－acquired separately Amortisation charge At December 31, 2024 December 31, 2024 Cost Accumulated amortisation	Computer software 1,102,839 $ 743,262) ( 359,577 $ 359,577 $ 71,240 148,472) ( 282,345 $ 1,174,079 $ 891,734) ( 282,345 $	Patents 29,258 $ 20,544) ( 8,714 $ 8,714 $ 840 3,435) ( 6,119 $ 30,098 $ 23,979) ( 6,119 $	Development expenditure 320,102 $ 320,102) ( - $ - $ - - - $ - $ - - $	1,452,199 $ 1,083,908) ( 368,291 $ 368,291 $ 72,080 151,907) ( 288,464 $ 1,204,177 $ 915,713) ( 288,464 $ Total

A. Details of amortisation on intangible assets are as follows:

Operating costs Operating expenses	Years endedDecember31	Years endedDecember31
	2025 105 $ 127,673 127,778 $	2024
		302 $ 151,605
		151,907 $

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B. The Company has no intangible assets pledged to others as collateral.

(12) Short-term borrowings

==> picture [479 x 198] intentionally omitted <==

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

Type of borrowings December 31, 2025 December 31, 2024
Bank borrowings
Unsecured borrowings $ 1,411,678 $ 1,016,211
Interest rate range 0.9%~4.35% 4.98%~5.10%
Bonds payable
December 31, 2025 December 31, 2024
-
Bonds payable $ $ 1,400,000
Unsecured convertible bonds payable 3,000,000 3,000,000
Less: Discount on bonds payable ( 151,581) ( 201,495)
Less: Current portion corporate bonds due within
-
one year ( 1,400,000)
$ 2,848,419 $ 2,798,505
----- End of picture text -----

(13) Bonds payable

• A. The Company issued the first domestic unsecured corporate bonds in 2020 amounting to $1,400,000 based on the face value at an annual rate of 1%, as approved by the regulatory authority. Those bonds mature in 5 years from the issue date, and the periods are from July 17, 2020 to July 17, 2025. The bonds is listed on the Taipei Exchange and will be redeemed in cash at face value at the maturity date.

• B. The issuance of the seventh domestic unsecured convertible bonds by the Company, as approved by the regulatory authority:

• (a) The bonds amounting to $3,000,000 based on the face value at an annual rate of 0%. The bonds mature in 5 years from the issue date, and the period is from December 6, 2023 to December 6, 2028. The bond is listed on the Taipei Exchange and will be redeemed in cash at face value at the maturity date.

• (b) The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue to the maturity date, except for the stop transfer period as specified in the terms of the bonds or the laws. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

• (c) The conversion price of the bonds is set up based on the pricing model in the terms of the bonds, and the conversion price at issuance was NT$145 (in dollars). The aforementioned conversion price had been reset as NT$134.6 (in dollars) according to the terms starting from April 4, 2025 (the effective date of price resetting).

• (d) The bondholders have the right to require the Company to redeem any bonds at the price of the bonds’ face value in cash upon three years.

• (e) The Company may repurchase all the bonds outstanding in cash at the bonds’ face value at any time after the following events occur: the closing price of the Company common shares

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is above the then conversion price by 30% for 30 consecutive trading days during the period from the date after three months of the bonds issue to 40 days before the maturity date, or the outstanding balance of the bonds is less than 10% of total initial issue amount during the period from the date after three months of the bonds issue to 40 days before the maturity date.

• (f) Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are retired and not to be re-issued or re-sold and all rights and obligations attached to the bonds are also extinguished.

• (g) Regarding the issuance of convertible bonds, the equity conversion options amounting to $322,500 were separated from the liability component and were recognised in ‘capital surplus-share options’ in accordance with IAS 32. The call options and put options embedded in bonds payable were separated from their host contracts and were recognised in ‘financial liabilities at fair value through profit or loss’ in net amount of $21,300 in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts. Convertible bonds were recorded at the fair value when issuing, and the discount amount of the bonds was $253,800. The effective interest rate of the bonds payable after such separation was 1.77 %.

(14) Pensions

A. Defined benefit plans

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

• (b) Amounts recognised in balance sheet are as follows:

Present value of defined benefit obligation Fair value of plan assets ( Net defined benefit liabilities	December31,2025 116,710 $ 104,017) ( 12,693 $	December31,2024 132,066 $ 109,974) 22,092 $

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(c) Change of net defined obligation is as follows:

						Net defined
	Defined benefit			Fair value of		benefit
		obligation		plan assets		obligation
Year 2025
January 1, 2025	$	132,066	($	109,974)	$	22,092
Current service cost		704		-		704
Interest expense (income)		2,113	(	1,759)		354
		134,883	(	111,733)		23,150
Remeasurements:
Change in financial assumptions		1,900		-		1,900
Experience adjustments		1,569	(	7,887)	(	6,318)
		3,469	(	7,887)	(	4,418)
Pension fund contribution		-	(	6,039)	(	6,039)
Paid pension	(	21,642)		21,642		-
December 31, 2025	$	116,710	($	104,017)	$	12,693
						Net defined
	Defined benefit			Fair value of		benefit
		obligation		plan assets		obligation
Year 2024
January 1, 2024	$	146,226	($	102,774)	$	43,452
Current service cost		801		-		801
Interest expense (income)		1,755	(	1,233)		522
		148,782	(	104,007)		44,775
Remeasurements:
Experience adjustments	(	7,779)	(	8,930)	(	16,709)
Pension fund contribution		-	(	5,974)	(	5,974)
Paid pension	(	8,937)		8,937		-
December 31, 2024	$	132,066	($	109,974)	$	22,092

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no

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right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The assumptions of pensions are as follows:

The assumptions of pensions are as follows:
Discount rate Future salary increases	Years endedDecember31
	2025 1.30% 3.00%	2024
		1.60%
		3.00%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

The effect to defined benefit obligation since changing of main actuarial assumptions is as follows:

follows:
Discount rate	Future salary increases
Increase0.25% Decrease0.25%	Increase0.25% Decrease 0.25%
December 31, 2025
Effect on present value of
defined benefit obligation 1,588) ($ 1,636 $	1,360 $ ($	1,327)
December 31, 2024
Effect on present value of
defined benefit obligation 1,755) ($ 1,805 $	1,493 $ ($	1,461)
The sensitivity analysis is based on other assumptions that are unchanged to analyse the		effect
of one assumption that changed. In practice, more than one assumption may change		all at
once. The method used to calculate the net pension liabilities in the balance sheet and
sensitivity analysis is the same. The method used in the preparation of sensitivity analysis in
the current period is the as same as in the previous period.

• (f) Expected contributions to the defined benefit pension plans of the Company for the year ended December 31, 2026 amounting to $6,483.

• (g) As of December 31, 2025, the weighted average duration of the pension plan is 6 years. The analysis of timing of the future pension payment was as follows:

ended December 31, 2026 amounting to $6,483. As of December 31, 2025, the weighted average duration of the pension analysis of timing of the future pension payment was as follows:	plan is 6 years. The
Not later than 1 year 1 to 2 years 2 to 5 years More than 5 years	30,520 $ 14,365 26,214 54,700
	125,799 $

• B. Defined contribution plans

• (a) The Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the

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Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  - (b) The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2025 and 2024 were $73,270 and $71,755, respectively.

• (15) Share-based payment

• A. Certain employees of the Company are entitled to share-based payment as part of their remunerations; services are provided by the employees in return for the equity instruments granted. These plans are accounted for as equity-settled share-based payment transactions.

• B. The arrangements of share-based payment for the years ended December 31, 2025 and 2024 are as follows:

==> picture [466 x 29] intentionally omitted <==

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

Grant quantity
Type of arrangement Grant date (in thousand) Contract period Vesting condition
----- End of picture text -----

Employee option plan	2020.08.20	12,000	10 years	(Note 1)
Employee option plan	2023.05.03	3,000	10 years	(Note 2)
Employee option plan	2024.06.12	3,000	10 years	(Note 2)
The vesting conditions of restricted stocks to employees	2024.06.12	3,404	N/A	(Note 3)
Employee option plan	2025.07.31	3,000	6 years	(Note 2)
The vesting conditions of restricted stocks to employees	2025.08.11	380	N/A	(Note 3)

• Note 1: The Company issues new shares when employees exercise options. The vesting period of option and exercisable ratio are as follows:

Vesting period of option Accumulated ratio of exercisable stock option After 2 years 50% After 3 years 75% After 4 years 100%

• Note 2: The Company issues new shares when employees exercise options. The vesting period of option and exercisable ratio are as follows:

Vesting period of option Accumulated ratio of exercisable stock option After 2 years 100%

• Note 3: The vesting conditions of restricted stocks to employees are the conditions for the service period and performance achievements.

The restricted stocks issued by the Company cannot be transferred during the vesting period, but voting right and dividend right are not restricted on these stocks. Employees are required to return the stocks but not required to return the dividends received if they resign during the vesting period.

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C. Details of the share-based payment arrangements in 2020 are as follows:

Options outstanding at January 1 Options exercised Options outstanding at December 31 Options exercisable at December 31	No. of options Weighted- average exercise price No. of options Weighted- average exercise price (in thousand) (in dollars) (in thousand) (in dollars) 2,449 25.6 $ 3,164 26.6 $ 2,449) ( 24.7 715) ( 25.6 - - 2,449 25.6 - 2,449 2025 2024

As at December 31, 2024, the range of exercise prices of stock options outstanding was NT$25.6 (in dollars); the remaining contractual period was 5.6 years.

D. Details of the share-based payment arrangements in 2023 are as follows:

Options outstanding at January 1 Options exercised Options outstanding at December 31 Options exercisable at December 31	2025 Weighted- average exercise price (in thousand) (in dollars) 3,000 79.8 $ 1,464) ( 76.9 1,536 76.9 1,536 2025	2024	2024
		No. of options (in thousand) 3,000 - 3,000 -	Weighted- average exercise price (indollars) 82.9 $ - 79.8

As at December 31, 2025 and 2024, the exercise prices of stock options outstanding was NT$76.9 (in dollars) and NT$79.8 (in dollars); the remaining contractual period was 7.3 years and 8.3 years, respectively.

E. Details of the share-based payment arrangements in 2024 are as follows:

Options outstanding at January 1 Options granted Options outstanding at December 31 Options exercisable at December 31		No. of options Weighted- average exercise price (in thousand) (indollars) 3,000 109.5 $ - - 3,000 105.5 - 2025	2024	2024
		No. of options (in thousand) 3,000 - 3,000 -	No. of options (in thousand) - 3,000 3,000 -	Weighted- average exercise price (indollars) - $ 109.5 109.5

As at December 31, 2025 and 2024, the exercise prices of stock options outstanding was NT$105.5 (in dollars) and NT$109.5 (in dollars); the remaining contractual period was 8.5 years and 9.5 years.

F. Details of the share-based payment arrangements in 2025 are as follows:

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Options outstanding at January 1 Options granted Options outstanding at December 31 Options exercisable at December 31	No. of options Weighted- average exercise price (in thousand) (in dollars) - - $ 3,000 100.5 3,000 100.5 - 2025

As at December 31, 2025, the exercise prices of stock options outstanding was NT$100.5 (in dollars); the remaining contractual period was 5.6 years.

• G. The weighted-average stock price of stock options at exercise dates in 2025 and 2024 was NT$101 (in dollars) and NT$110.5 (in dollars), respectively.

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

Employee stock options 2020.08.20 -After 2 years -After 3 years -After 4 years Type of arrangement Grant date Employee stock options 2023.05.03 -After 2 years Employee stock options 2024.06.12 -After 2 years Employee stock options 2025.07.31 -After 2 years The vesting conditions of restricted stocks to employees 2024.06.12 The vesting conditions of restricted stocks to employees 2025.08.11 Type of arrangement Grant date Type of arrangement Grant date Type of arrangement Grant date Type of arrangement Grant date	Stock price (in dollars) 74.7 $ 74.7 74.7 Stock price (in dollars) 82.9 $ Stock price (in dollars) 109.5 $ Stock price (in dollars) 100.5 $ Stock price (in dollars) 109.5 $ 103.0	Exercise price (in dollars) (Note 1) 30.0 $ 30.0 30.0 Exercise price (in dollars) (Note 1) 82.9 $ Exercise price (in dollars) (Note 1) 109.5 $ Exercise price (in dollars) (Note 1) 100.5 $ Exercise price (in dollars) 60.0 $ 80.0 $	Expected price Volatility (Note 2)	Expected option life (Note 3)	Expected dividends	Fair value Risk-free per share interest rate (in dollars) 0.33% 31.90 $ 0.35% 30.54 0.36% 29.14 Fair value Risk-free per share interest rate (in dollars) 1.12% 13.55 $ Fair value Risk-free per share interest rate (in dollars) 1.47% 18.86 $ Fair value Risk-free per share interest rate (in dollars) 1.31% 21.92 $ Fair value Risk-free per share interest rate (in dollars) - 49.50 $ - 23.00
			27.61% 27.84% 27.50% Expected price Volatility (Note 2)	6.0 years 7.0 years 8.0 years Expected option life (Note 3)	3.88% 3.88% 3.88% Expected dividends
			29.71% Expected price Volatility (Note 2)	6.0 years Expected option life (Note 3)	4.53% Expected dividends
			31.68% Expected price Volatility (Note 2)	5.0 years Expected option life (Note 3)	4.81% Expected dividends
			36.83% Expected price Volatility	4.0 years Expected option life	3.74% Expected dividends
			- -	NA NA	- -

Note 1: The exercise prices have been adjusted to reflect the change of outstanding shares (e.g., issuance of new shares for cash to increase capital, cash dividends, an appropriation of

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earnings, issuance of new shares in connection with merger or acquiring shares of other companies.) in accordance with the employee stock option plan.

• Note 2: Expected price volatility is based on the recent historical average volatility of the stock prices coincident with expected life of each tranche of the stock options. The source is from the Taiwan Stock Exchange.

Note 3: The expected life of the share options is based on historical date and current expectations.

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

Compensation cost of employees stock options Compensation costs of restricted stocks	2025 2024 48,740 $ 49,311 $ 8,740 168,498 57,480 $ 217,809 $ Years endedDecember31

(16) Provisions for liabilities - current

At January 1, 2025 Additional provisions Utilisation/reversal during the year At December 31, 2025 At January 1, 2024 Additional provisions Utilisation/reversal during the year At December 31, 2024	Warranty 468,362 $ 303,806 297,544) ( 474,624 $ Warranty 319,871 $ 313,522 165,031) ( ( 468,362 $	Royalty Total 477,599 $ 945,961 $ - 303,806 - 297,544) ( 477,599 $ 952,223 $ Royalty Total 330,241 $ 650,112 $ 160,993 474,515 13,635) 178,666) ( 477,599 $ 945,961 $

• A. Warranty

A provision for repairs and maintenance obligation is recognised for expected warranty claims on products sold, based on historical claims of warranty and management’s judgement for future probable product repairs or replacement in next 12 months.

• B. Royalty

The Company estimates the possible royalty expenses based on the industry characteristics, other known events and management’s judgement and recognises such expenses within ‘cost of goods sold’ when related product is sold. Any changes in industry circumstances might affect materially the provision for royalty.

(17) Share capital

• A. The Company’s authorized capital was both $5,000,000 as at December 31, 2025 and 2024, consisting of 500,000 thousand shares (including 36,800 thousand shares reserved for employee stock options). Paid-in capital were $3,043,426 and $3,000,496, respectively, with par value of NT$10 (in dollars). All proceeds from shares issued have been collected.

The number of common shares at the beginning and the end of the year is reconciled as below:

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2025 (in thousand) At January 1 298,549 Exercise of employee stock options 3,913 Restricted stock awards 380 Conversion of convertible bonds - Purchase of treasury shares 3,123) ( At December 31 299,719	2024(in thousand) 267,078 715 3,404 27,352 -
	298,549

• B. In response to the future operational needs, on May 29, 2025, the Company’s shareholders resolved the ordinary shares raised through the private offering of either common stock or domestic/foreign convertible corporate bonds. Private offering of common stock shall not exceed 27,000 thousand shares (inclusive). Considering that the aforementioned private placement of securities has not been implemented and is approaching its one-year expiration, the Board of Directors resolved on March 10, 2026, to discontinue the private placement.

• C. Treasury stocks

• (a) Reasons for the share repurchase and the number of the Company’s treasury stocks are as follows:

ollows:
Name of company holdingthe shares	Reason for repurchase	December	31,2025
		Number of shares (in thousand)	Carryingamount
The Company Name of company holdingthe shares	To be transferred to employees Reason for repurchase	4,623 December	421,810 $ 31,2024
		Number of shares (in thousand)	Carryingamount
The Company	To be transferred to employees	1,500	119,517 $

• (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares repurchased as treasury stocks should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount of shares repurchased should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

• (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury stocks should not be pledged as collateral nor is entitled to shareholders’ rights before it is reissued.

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

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of ordinary shares and donations can be used to offset accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that

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the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. However, capital surplus should not be used to offset accumulated deficit unless the legal reserve is insufficient.

At January 1 Compensation cost of employee stock options Employee stock options exercised Compensation cost of employee restricted stock Issuance of employee restricted stock Employee restricted stocks vested At December 31 At January 1 Compensation cost of employee stock options Employee stock options exercised Compensation cost of employee restricted stock Issuance of employee restricted stock Employee restricted stocks vested Conversion of convertible corporate bonds At December 31		Additional paid-in capital in excess of par, ordinary share		Conversion premium of convertible Employee corporate Treasury Stock Employee restricted bonds transactions stock options stocks 4,131,830 $ 41,511 $ 150,033 $ - $ - - 48,740 - - - 120,667) ( - - - - 8,740 - - - 26,600 - - - 35,340) ( 4,131,830 $ 41,511 $ 78,106 $ - $ 2025 2024	Conversion premium of convertible Employee corporate Treasury Stock Employee restricted bonds transactions stock options stocks 4,131,830 $ 41,511 $ 150,033 $ - $ - - 48,740 - - - 120,667) ( - - - - 8,740 - - - 26,600 - - - 35,340) ( 4,131,830 $ 41,511 $ 78,106 $ - $ 2025 2024	Conversion premium of convertible Employee corporate Treasury Stock Employee restricted bonds transactions stock options stocks 4,131,830 $ 41,511 $ 150,033 $ - $ - - 48,740 - - - 120,667) ( - - - - 8,740 - - - 26,600 - - - 35,340) ( 4,131,830 $ 41,511 $ 78,106 $ - $ 2025 2024	Conversion premium of convertible Employee corporate Treasury Stock Employee restricted bonds transactions stock options stocks 4,131,830 $ 41,511 $ 150,033 $ - $ - - 48,740 - - - 120,667) ( - - - - 8,740 - - - 26,600 - - - 35,340) ( 4,131,830 $ 41,511 $ 78,106 $ - $ 2025 2024	Expired stock options 25,934 $ - - - - -		Convertible bond options	Total 6,354,493 $ 48,740 133,942 8,740 26,600 - 6,572,515 $ Total 4,608,355 $ 49,311 11,154 168,498 170,200 - 1,346,975 6,354,493 $
		1,682,685 $ - 254,609 - - 35,340								322,500 $ - - - - -
		1,972,634 $				- $		25,934 $		322,500 $
	Additional paid-in capital in excess of par, ordinary share 1,303,396 $ - 40,591 - - 338,698 - 1,682,685 $						Expired stock options 25,934 $ - - - - - - 25,934 $		Convertible bond options 433,594 $ - - - - - 111,094) ( 322,500 $

(19) Retained earnings

• A. Under the Company’s Articles of Incorporation adopted by the shareholders during their meeting, the current year’s earnings, if any, shall first be used to pay all taxes and offset accumulated deficit and then 10% of the remaining amount shall be set aside as legal reserve until the amount of legal reserve is equal to the amount of paid-in capital. After the provision or reversal of special reserve, the appropriation of the remaining earnings along with the unappropriated earnings of prior years and current adjustment on unappropriated earnings as distributable retained earnings. The distribution of all or part of dividends and bonuses shall be made by issuing new shares, which shall be approved by the shareholders. Distribution of earnings by way of cash dividends should

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be approved by Board of Directors and reported to shareholders in its meeting.

• B. The policy for dividend distribution should consider level of current year earnings and stabilised dividend ratio to support the Company’s steady growth, and should reflect factors such as current and future investment environment, fund requirements, domestic and international competition and capital expenditure budgets, as well as the benefit of stockholders, dividend equilibrium, and long-term financial planning etc. It may be paid in cash or in the form of share dividends. Accordingly, at least 10% of the dividends must be paid in the form of cash.

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

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

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate1090150022 , dated March 31, 2021, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

• (c) As of January 1, 2018, the amount of special reserve set aside for the first-time adoption of IFRSs amounted to $131,678. Furthermore, the Company did not reverse special reserve to retained earnings during the years ended December 31, 2025 and 2024 as a result of the use, disposal or reclassification of related assets. As of December 31, 2025 and 2024, the amount of special reserve set aside for the first-time adoption of IFRSs all amounted to $131,678.

• E. (a) The appropriations of earnings of 2024 and 2023 resolved by shareholders on May 29, 2025 and May 31, 2024, respectively, are as follows:

Legal reserve appropriated (Reversal) appropriation of special reserve Cash dividends	Dividends per share Amount (indollars) 228,437 $ 333,735) ( 1,373,327 4.60 $ YearendedDecember31,2024	YearendedDecember31,2023	YearendedDecember31,2023
	Amount 228,437 $ 333,735) ( 1,373,327	Amount 241,381 $ 36,538 1,472,126	Dividends per share (indollars)
			5.00 $

• (b) Details of 2025 earnings appropriation proposed by the Board of Directors on March 10, 2026 are as follows:

~54~

Legal reserve appropriated Special reserve appropriated Cash dividends	Dividends per share (indollars) 120,634 $ 164,369 749,299 2.50 $ Amount

Information about the appropriation of retained earnings of the Company as proposed by the Board of Directors and resolved by the shareholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(20) Other equity items

Other equity items
At January 1 Currency translation differences: -Company Revaluation – gross -Subsidiary Gains (losses) on hedging instruments: -Gains (losses) on fair value -Tax on fair value gains (losses) -Transfers to sales of goods -Tax on transfers to sales of goods -Transfers to inventories -Tax on transfers to inventories -Ineffective hedging transfer to profit or loss -Tax on ineffective hedging transfer to profit or loss Compensation costs of restricted stocks Issuance of employee restricted stock At December 31	Unrealised gains Financial (losses) on statements financial assets translation at fair value differences through other of foreign comprehensive Cash flow operations income hedgereserve 345,436) ($ 27,044) ($ 16,340 $ 144,328) ( - - - 2,777) ( - - - 204,344) ( - - 40,869 - - 56,841 - - 11,368) ( - - 117,766 - - 23,553) ( - - 8,156 - - 1,631) ( - - - - - - 489,764) ($ 29,821) ($ 924) ($ 2025		Unearned compensation cost Total - $ 356,140) ($ - 144,328) ( - 2,777) ( - 204,344) ( - 40,869 - 56,841 - 11,368) ( - 117,766 - 23,553) ( - 8,156 - 1,631) ( 8,740 8,740 8,740) ( 8,740) ( - $ 520,509) ($

~55~

2024

	2024
At January 1 Currency translation differences: -Company Revaluation – gross -Subsidiary Gains (losses) on hedging instruments: -Gains (losses) on fair value -Tax on fair value gains (losses) -Transfers to sales of goods -Tax on transfers to sales of goods -Transfers to inventories -Tax on transfers to inventories -Ineffective hedging transfer to profit or loss -Tax on ineffective hedging transfer to profit or loss Compensation costs of restricted stocks Issuance of employee restricted stock At December 31	Unrealised gains Financial (losses) on statements financial assets translation at fair value differences through other of foreign comprehensive Cash flow operations income hedgereserve 629,468) ($ 32,210) ($ 28,201) ($ 284,032 - - - 5,166 - - - 94,105 - - 18,822) ( - - 11,756) ( - - 2,351 - - 31,761) ( - - 6,354 - - 5,088 - - 1,018) ( - - - - - - 345,436) ($ 27,044) ($ 16,340 $	Unearned compensation cost Total - $ 689,879) ($ - 284,032 - 5,166 - 94,105 - 18,822) ( - 11,756) ( - 2,351 - 31,761) ( - 6,354 - 5,088 - 1,018) ( 168,498 168,498 168,498) ( 168,498) ( - $ 356,140) ($	Total
			356,140) ($

(21) Operating revenue

A. Disaggregation of revenue from contracts with customers

Sales revenue is recognised when control of the products has transferred, being when the products are delivered to the customer. Delivery occurs when the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

The Company derives revenue from the transfer of goods at a point in time in the following major product lines:

product lines:
Revenue type Fixed mobile convergence products (BB CPE) Enterprise (ENT) IoT Solutions (Infra. & IoT) Others	Years ended December 31
	2025 27,045,033 $ 9,985,890 10,355,390 3,287,726 50,674,039 $	2024
		29,669,310 $ 9,037,104 6,149,823 7,643,685
		52,499,922 $

~56~

B. Contract liabilities

Contract liabilities recognised by the Company as a result of revenue from contracts with customers are as follows:

	December	31,2025	December	31,2024		January1,2024
Sales contract	$	779,317	$	752,213	$	723,761

Revenue recognised that was included in the contract liability balance at the beginning of the year are as follows:

Sales contract	2025 2024 282,571 $ 647,864 $ Years endedDecember31

C. Refund liabilities

Sales revenue is recognised based on contract price net of sales discounts and allowances. The merchandise is often sold with sales discounts and allowances based on aggregate sales over a 12-month period. Historical experience is used to estimate and provide for the sales discounts and allowances, using the most possible amount, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The payment terms for sales are normally 20 to 210 days after delivery. The time between the transfer of promised goods or services to the client and collection of payment does not exceed one year. Therefore, the Company does not adjust the transaction price to reflect the time value of money.

of money.
		December31,2025			December31,2024
Refund labilities	$		158,770	$		114,168
(22)Other income
			Years ended	December31
			2025			2024
Gains arising from derecognition of liabilities	$		57,811	$		-
Rental income			379			1,247
Others			1,237			8,209
	$		59,427	$		9,456

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(23) Other gains and losses

Other gains and losses
		Years ended	December31
		2025			2024
Net losses on financial assets or liabilities at fair value through profit or loss	($	73,135)	($		163,425)
Net currency exchange gains		63,243			230,515
Impairment loss on performance guarantee	(	14,750)	(		14,750)
Gains on disposals of property, plant and equipment		4,211			3,748
Loss on disposal of investments accounted for using equity method		-	(		199)
Losses arising from lease modifications		-	(		192)
	($	20,431)		$	55,697

To stabilise the long-term supply of raw materials, the Group and a supplier agreed to annual purchase amounts in the contract period. Since the annual purchase amounts in 2025 and 2024 is not as expected based on the assessment, the performance guarantee amounting to $14,750 cannot be recovered.

Details of the related purchase commitments are provided in Note 9 B.

(24) Finance costs

Finance costs
Interest expense -Bank borrowing -Bonds payable -Loans from related parties -Lease contracts	Years endedDecember31
	2025 138,063 $ 57,304 41,714 3,147 240,228 $	2024 144,416 $ 78,882 50,967 3,308
		277,573 $

(25) Additional information of expenses by nature

Additional information of expenses by nature
Employee benefit expense Depreciation charges on property, plant and equipment Amortisation charges on intangible assets Depreciation charges on right-of-use assets	Years endedDecember31
	2025 2,310,877 $ 366,990 127,778 53,918 2,859,563 $	2024
		2,586,914 $ 324,831 151,907 47,192
		3,110,844 $

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(26) Employee benefit expense

Employee benefit expense
Wages and salaries Labor and health insurance fees Pension costs Compensation cost of share-based payments Directors’ remuneration Other personnel expenses	Years endedDecember31
	2025 1,859,186 $ 159,226 74,328 57,480 29,796 130,861 2,310,877 $	2024
		1,990,997 $ 151,633 73,078 217,809 46,910 106,487
		2,586,914 $

• A. According to the Articles of Incorporation, 12%-18% of profit of the current year is distributable as employees’ compensation, of which the amount of employees’ compensation includes rankand-file employees’ compensation distributed at a ratio between 1% and 3% and no higher than 2.5% of profit of the current year is distributable as remuneration to directors. Qualification requirements of employees include the employees of subsidiaries or controlled entities of the Company meeting certain specific requirements. If the Company has an accumulated deficit, earnings should be reserved to offset deficit first. Independent directors do not participate in the abovementioned distribution of directors’ remuneration.

• B. For the years ended December 31, 2025 and 2024, employees’ compensation was accrued at $280,500 and $509,800, respectively; directors’ remuneration was accrued at $17,500 and $35,200, respectively. The aforementioned amounts were recognised in wages and salaries. For the year ended December 31, 2025, the employees’ compensation and directors’ remuneration were estimated and accrued based on 15.96% and 1.00% of distributable profit of current year.

• The 2024 employees’ compensation and directors’ remuneration as resolved by the Board of Directors amounted to $509,800 and $35,200, respectively. Also, there was no difference between such amounts and those shown in the 2024 financial statements. The employees’ compensation will be distributed in the form of cash.

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

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(27) Income tax

A. Income tax expense

(a)Components of income tax expense:

Components of income tax expense:
			Years ended	December31
			2025			2024
Current tax:
Current tax on profits for the period		$	83,065		$	408,462
Tax on undistributed earnings			37,788			18,045
Prior year income tax over estimation	(		35,462)	(		14,979)
Total current tax			85,391			411,528
Deferred tax:
Origination and reversal of temporary differences			171,087			93,642
Income tax expense		$	256,478		$	505,170

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

follows:
			Years ended	December31
			2025			2024
Profit or loss of hedging instruments in cash	($		4,317)	$		11,135
flow hedge
Remeasurement of defined benefit obligations			884			3,342
	($		3,433)	$		14,477
Reconciliation between income tax expense and	accounting		profit
			Years ended	December31
			2025			2024
Tax calculated based on profit before tax and		$	291,857		$	555,235
statutory tax rate
Expenses disallowed by tax regulation			14,089			9,732
Prior year income tax over estimation	(		35,462)	(		14,979)
Effect from investment tax credits	(		51,794)	(		82,228)
Change in assessment of realisation of deferred
tax assets			-			19,365
Surtax on unappropriated retained earnings			37,788			18,045
Income tax expense	$		256,478	$		505,170

B. Reconciliation between income tax expense and accounting profit

~60~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

2025

		2025	2025
Deferred tax assets: Unrealised bonus and other expenses Provisions for liabilities Unrealised inventory loss Refund liabilities Unrealised loss on financial assets at fair value Net defined benefit liabilities Unrealised profit from sales to subsidiaries Unrealised loss on hedging instruments Subtotal Deferred tax liabilities: Income from investment accounted for using equity method Unrealised foreign exchange gain Unrealised gain on hedging instruments Subtotal Total Deferred tax assets: Unrealised bonus and other expenses Provisions for liabilities Refund liabilities Unrealised inventory loss Unrealised foreign exchange loss Unrealised loss on financial assets at fair value Unrealised interest from convertible bonds Net defined benefit liabilities Unrealised foreign exchange loss Unrealised loss on hedging instruments Unrealised profit from sales to subsidiaries Subtotal Deferred tax liabilities: Income from investment accounted for using equity method Unrealised gain on financial assets at fair value Unrealised gain on hedging instruments Unrealised foreign exchange gain Subtotal Total	January1	Recognised in profitor loss Recognised in other comprehensive income 114,788) ($ - $ 1,253 - 40,974) ( - 8,920 - 1,583) ( - 996) ( 884) ( 443) ( - - 232 148,611) ( 652) ( 20,957) ($ - $ 1,519) ( - - 4,085 22,476) ( 4,085 171,087) ($ 3,433 $ 2024		December 31 223,347 $ 190,445 58,358 31,753 16,329 2,539 2,180 232 525,183 241,665) ($ 26,476) ( - 268,141) ( 257,042 $
	338,135 $ 189,192 99,332 22,833 17,912 4,419 2,623 - 674,446 220,708) ($ 24,957) ( 4,085) ( 249,750) ( 424,696 $
		(
		($
	January1	Recognised in profitor loss	Recognised in other comprehensive income	December 31
	419,646 $ 130,025 73,932 47,727 20,260 19,889 12,983 8,691 - 7,050 3,049 743,252 202,910) ($ 7,527) ( - - 210,437) ( 532,815 $	81,511) ($ 59,167 51,099) ( 51,605 20,260) ( 1,977) ( 12,983) ( 930) ( - - 426) ( 58,414) ( 17,798) ($ 7,527 - 24,957) ( 35,228) ( 93,642) ($	- $ - - - - - 3,342) ( - 7,050) ( - 10,392) ( - $ - 4,085) ( - 4,085) ( 14,477) ($	338,135 $ 189,192 22,833 99,332 - 17,912 - 4,419 - - 2,623 674,446 220,708) ($ - 4,085) ( 24,957) ( 249,750) ( 424,696 $

D. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

are as follows:
Deducible temporary differences	December31,2025 104,068 $	December31,2024
		75,213 $

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• E. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2025 and 2024, the amounts of temporary difference unrecognised as deferred tax liabilities were $937,359 and $813,552, respectively.

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

(28) Earnings per share

Authority. Earnings per share
Basic earnings per share Profit attributable to owners of the parent Diluted earnings per share Dilutive effect of potential ordinary shares Employees compensation Employee stock options Treasury stocks Employee restricted stocks Profit attributable to owners of the parent plus dilutive effect of potential ordinary shares Basic earnings per share Profit attributable to owners of the parent Diluted earnings per share Dilutive effect of potential ordinary shares Employees compensation Employee stock options Treasury stocks Employee restricted stocks Convertible bonds Profit attributable to owners of the parent plus dilutive effect of potential ordinary shares	YearendedDecember31,2025
	Weighted average number of ordinary shares outstanding Amount after tax (sharein thousands) 1,202,805 $ 297,635 - 4,113 - 2,094 - 517 - 1 1,202,805 $ 304,360 YearendedDecember 31,2024		Earnings per share (indollars)
			4.04 $
			3.95 $
	Amount after tax 2,271,006 $ - - - - - 2,271,006 $	Weighted average number of ordinary shares outstanding (sharein thousands) 293,519 4,853 3,302 530 851 76 303,131	Earnings per share (indollars)
			7.74 $
			7.49 $

• A. The employee stock options issued by the Company in 2025 and 2024 have an anti-dilution effect, so they are not listed on diluted earnings per share for the year ended December 31, 2025.

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• B. The employee stock options issued in 2024 has an anti-dilution effect, so they are not listed on diluted earnings per share for the year ended December 31, 2024.

• C. The convertible bonds issued by the Company in 2023 have an anti-dilution effect, so they are not listed on diluted earnings per share from the year ended December 31, 2025 and 2024.

• D. There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date the financial statements were authorised for issuance.

(29) Supplemental cash flow information

• A. Investing activities with partial cash payments:

pplemental cash flow information Investing activities with partial cash payments:
			Years ended	December31
			2025			2024
Purchase of property, plant and equipment		$	315,290		$	356,906
Add: Ending balance of advance payment			32,427			51,535
Less: Opening balance of advance payment	(		51,535)	(		43,100)
Add: Opening balance of payable for equipment or
other payable			30,088			76,128
Less: Ending balance of payable for equipment or
other payable	(		55,372)	(		30,088)
Cash paid during the year		$	270,898		$	411,381
Purchase of intangible assets		$	121,073		$	72,080
Add: Ending balance of advance payment			116,899			40,576
Less: Opening balance of advance payment	(		40,576)	(		44,475)
Add: Opening balance of payable for equipment or
other payable			1,518			2,472
Less: Ending balance of payable for equipment or
other payable	(		776)	(		1,518)
Cash paid during the year		$	198,138		$	69,135

• B. Investing activities with no cash flow effects (Year ended December 31, 2025: None)

Acquisition of financial assets at fair value through other comprehensive income Less: Accounts receivable	Year ended December31,2024
	294,453 $ 294,453) (
	- $

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(30) Changes in liabilities from financing activities

At January 1, 2025 Changes in cash flow from financing activities Interest paid (Note 1) Changes in other non-cash items At December 31, 2025 At January 1, 2024 Changes in cash flow from financing activities Interest paid (Note 1) Changes in other non-cash items At December 31, 2024	Short-term borrowings	received (Note2) Guarantee deposits	Lease liabilities 195,404 $ 49,427) ( 3,147) ( 19,697 162,527 $ Lease liabilities	Bonds financing payable activities-gross 4,198,505 $ 6,214,104 $ 1,400,000) ( 1,622,473) ( - 3,147) ( 49,914 69,611 2,848,419 $ 4,658,095 $ Bonds payable activities-gross Liabilities from Liabilities from financing	Bonds financing payable activities-gross 4,198,505 $ 6,214,104 $ 1,400,000) ( 1,622,473) ( - 3,147) ( 49,914 69,611 2,848,419 $ 4,658,095 $ Bonds payable activities-gross Liabilities from Liabilities from financing
	1,016,211 $ 395,467 - - 1,411,678 $ Short-term borrowings	803,984 $ 568,513) ( - - 235,471 $ received (Note2) Guarantee deposits
	169,900 $ 846,311 - - 1,016,211 $	998,323 $ 194,339) ( - - 803,984 $	169,597 $ 46,614) ( 3,308) ( 75,729 195,404 $	7,969,790 $ 9,307,610 $ 2,300,000) ( 1,694,642) ( - 3,308) ( 1,471,285) ( 1,395,556) ( 4,198,505 $ 6,214,104 $
					6,214,104 $

Note 1: Shown in ‘Cash flows from operating activities’.

Note 2: Including guarantee deposits received with maturity within one year, and shown in ‘Other current liabilities, others’.

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties

Sercomm Trading Co. Ltd. Sercomm USA Inc. Sercomm France SARL Sercomm Deutschland GmbH Sercomm Russia Limited Liability Company Sercomm Investment Corp. Sercomm Japan Corp. Sercomm Technology Inc. Sernet Technology Mexico Sctek Manufacturing, S.A.DE C.V. Sercomm Philippines Inc. Scnet (India) Private Limited Sercomm Britain Limited MosoLabs Inc. Servercom (India) Private Limited Sercomm urkey Kablosuz İletişim Sanayi ve Ticaret Anonim Şirketi

Relationship with the Company

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

~64~

Names of related parties Sercomm International Inc. Sercomm Italia SRL Sercomm Solutions Inc. DWNet Technology (Suzhou) Co., Ltd. Sernet (Suzhou) Technologies Corporation Zealous Investments Ltd.

Relationship with the Company

The Company’s subsidiary

The Company’s second-tier subsidiary The Company’s second-tier subsidiary The Company’s second-tier subsidiary The Company’s second-tier subsidiary The Company’s second-tier subsidiary

(2) Significant related party transactions

• A. Operating revenue

Servercom (India) Private Limited Subsidiaries

		Years ended	December31
		2025	2024
	$	1,156,586	5,882,368 $
		3,043,029	2,188,569
	$	4,199,615	8,070,937 $

• (a) The sales price to the related parties was determined through mutual agreement based on the market conditions. The collection period for related parties was month-end 180~270 days. For third parties, the terms for domestic sales was month-end 20~75 days, and for overseas sales was net 20~210 days, FOB shipping point.

• (b) The Company sold materials and semi-finished products to subsidiaries for production, and then bought back finished products and sold it to customers in years 2025 and 2024. As for the above transactions, the Company has written off the sales revenue and operating costs of relevant raw materials. Therefore, the amount of finished products and operating costs are not included in the purchase and sale of the Company.

• B. Receivables from related parties

Receivables from related parties
Accounts receivable: Sercomm Philippines Inc. Servercom (India) Private Limited Subsidiaries Other receivables: Subsidiaries	December31,2025 3,340,578 $ 917,685 1,288,181 5,546,444 $ 35,421 $	December31,2024
		702,661 $ 4,568,146 1,059,350
		6,330,157 $
		26,329 $

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• (a) The ageing analysis of accounts receivable from subsidiaries that were based on the number of days overdue as follows:

ays overdue as follows:
	December 31, 2025		December 31, 2024
Without past due	$	5,390,159	$	4,864,809
Up to 1-90 days		2,771		1,465,348
Up to 91-180 days		51,823		-
Up to 181-270 days		52,466		-
Up to 270 days		49,225		-
	$	5,546,444	$	6,330,157

• (b) The aforementioned other receivables were the purchases or payments made by the Company on behalf of subsidiaries for operational needs, and were not past due.

• C. Purchases of goods

Purchases of goods
Sercomm Philippines Inc. Sernet (Suzhou) Technologies Corporation Subsidiaries	Years ended December 31
	2025 20,774,651 $ 10,208,700 125,508 31,108,859 $	2024
		15,823,984 $ 11,543,754 18,833
		27,386,571 $

• (a) The purchase price to the related parties was determined through mutual agreement based on the market conditions. The payment period for related parties was month-end 60 days. For third parties, the terms for domestic procurement was month-end 60~120 days, and for overseas procurement was month-end 30~210 days.

• (b) The transaction amounts as of 2025 and 2024 listed above have deducted the recalculated amounts. Please refer to Note 7(2)A.

D. Prepayments

To expand global business, the Company made advance payments to subsidiaries and recognised them as sales service expenses or other expenses.

them as sales service expenses or other expenses.
E. Payables to related parties Subsidiaries Accounts payable: Sercomm Philippines Inc. Sernet (Suzhou) Technologies Corporation Subsidiaries Other payables: Subsidiaries	December31,2025 22,505 $ December31,2025 3,796,743 $ 1,864,342 5,808 5,666,893 $ 627,823 $	December31,2024
		21,539 $
		December31,2024
		2,123,487 $ 1,530,375 2,364
		3,656,226 $
		121,454 $

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F. Miscellaneous income (Year ended December 31, 2025:None)

		Year ended
	December 31, 2024
Sercomm Philippines Inc.	$	4,846
Servercom (India) Private Limited		1,016
Subsidiaries		3
	$	5,865

Service income was the purchase of materials made by the Company on behalf of subsidiaries and purchase of other miscellaneous for operational needs.

• G. Operating expenses

purchase of other miscellaneous for operational needs. Operating expenses
Selling expenses-sales service: Sercomm Technology Inc. Sercomm USA Inc. Subsidiaries Research and development expenses- research service: Subsidiaries	Years ended December 31
	2025 704,741 $ 120,608 173,605 998,954 402,797 1,401,751 $	2024 526,699 $ 153,862 187,777 868,338 -
		868,338 $

H. Loans to /from related parties

Due to the capital management, the Company’s Board of Directors during their meeting in March 2023 resolved to borrow USD 34,000 thousand from the related party for 5 years. As of December 31, 2025 and 2024, the Company had settled USD 8,000 thousands and USD 8,000 thousands, respectively. The repayment of the loan is subject to the financial position and carry interest at 5% per annum.

• (a) Loans from related parties

• i. Ending balance

r annum. ) Loans from related parties i. Ending balance
ii. Interest expense Zealous Investments Ltd. Zealous Investments Ltd.	December31,2025 817,388 $ 2025 41,714 $ Years ended		December31,2024 852,306 $ December31
		2025 41,714 $		2024
				50,967 $

As of December 31, 2025 and 2024, the unpaid interest payable was $41,714 and $50,967, respectively.

• (b) Information on the loans to subsidiaries and provision of endorsements and guarantees to subsidiaries are provided in Note 13.

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I. Property transactions:

(a) Disposal of property, plant and equipment:

Sercomm Philippines Inc. Sernet (Suzhou) Technologies Corporation Servercom (India) Private Limited	Disposal Gain (loss) proceeds on disposal 11,674 $ 3,159 $ 47 29 - - 11,721 $ 3,188 $ Year ended December 31, 2025	Disposal Gain (loss) proceeds on disposal 3,657 $ 197 $ - - 2,530 139) ( 6,187 $ 58 $ Year ended December 31, 2024

The transaction price between the Company and the related parties was determined through mutual agreement. The collection period was month-end 180 days.

(b) Acquisition of financial assets:

Acquisition of financial assets:
Accounts Secnet Technology Mexico Investments accounted for using equity method MosoLabs Inc. Investments accounted for using equity method Sercomm Turkey Kablosuz iletisim Sanayi ve Ticaret Anonim Sirketi Investments accounted for using equity method Subsidiaries Investments accounted for using equity method Total Accounts Scnet (India) Private Limited Investments accounted for using equity method Secnet Technology Mexico Investments accounted for using equity method Subsidiaries Investments accounted for using equity method Total	No. of shares (in thousands)	Year ended December 31, 2025
		Objects Consideration shares 164,653 $ shares 44,982 shares 29,114 shares 6,305 245,054 $ Year ended December 31, 2024
	100,000 1,500 38,000 2 No. of shares (in thousands)
		Objects		Consideration
	2,200 2,900 100	shares shares shares		420,949 $ 48,863 31,328 501,140 $

(c) Disposal of financial assets: (Year ended December 31, 2025: None)

Sercomm Trading Co. Ltd. Sercomm Brazil Ltda	Accounts	No. of shares (in thousands)	Objects	YearendedDecember 31,2024	YearendedDecember 31,2024
				Proceeds 241,770 $ 1,173 242,943 $	Gain/(loss)
	Investments accounted for using equity method Investments accounted for using equity method	750 500	shares shares		- $ 199
					199 $

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(3) Key management compensation

Key management compensation
Short-term employee benefits Post- employment benefits Share-based payment	Years endedDecember31
	2025 95,456 $ 1,280 17,244 113,980 $	2024
		185,655 $ 1,519 65,343
		252,517 $

8. PLEDGED ASSETS

The Company’s assets pledged at carrying amount are as follows:

Pledged asset	December 31, 2025	December 31, 2024	Purpose
Financial assets measured			Custom duty guarantee and
at amortised cost	43,101 $	36,509 $	performance guarantee

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

• A. The Company has entered into an agreement with an overseas customer. The agreement provided that the overseas customer was required to pay a fee toward specified items prescribed in the agreement and the Company shall be liable for any third party infringement claims. The amount received has been deposited in a trust fund set up by the Company. The Company recognised the trust fund as noncurrent financial assets at amortised cost and other current liabilities. However, considering that the term of patents for the aforementioned specified items had been expired and there were no sales of the aforementioned items in recent years, the Company terminated the trust arrangement and derecognized the related trust assets in the second quarter of 2025 and recognised a gain on the derecognition of liabilities.

December 31, 2025 December 31, 2024 Non-current financial assets at amortised cost $ - $ 73,931 Other current liabilities - 57,811

• As of December 31, 2024, the accumulated interest of the trust fund assets was recognised as ‘noncurrent financial assets at amortised cost’ in the amount of $16,120.

• B. To stabilise the supply of raw materials, the Company and a supplier signed a long-term supply contract whereby the Company shall pay performance guarantee. If the Company achieves the agreed purchase amount every year, the guarantee can be recovered proportionally. As of December 31, 2025, the guarantee was shown as guarantee deposits paid of $83,265 (USD 2,649 thousand).

• C. As of December 31, 2025, the amount of contracted but not yet paid commitments for the purchase of equipment and computer software was $25,125.

• D. The amounts of performance letters of guarantee issued by banks for shipment guarantee are as follows:

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	December	31,2025	December	31,2024
USD (in thousands)	$	464	$	560
CAD (in thousands)		220		-

• E. The amounts of promissory notes issued by banks for factoring accounts receivable and bank borrowing are as follows:

borrowing are as follows:
	December 31, 2025		December 31, 2024
NTD (in thousands)	$	3,250,000	$	3,720,000
USD (in thousands)		372,013		362,013

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

For the appropriations of earnings of 2025 resolved by the Board of Directors, please refer to Note 6(19) for details.

12. OTHERS

(1) Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost/Loans and receivables Cash and cash equivalents Financial assets measured at amortised cost Accounts receivable, net (including related parties)	December 31, 2025 5,723 $ 325,069 $ 2,943,713 $ 43,101 14,322,291	December 31, 2024
		13,384 $
		294,453 $
		5,679,509 $ 110,440 12,604,902

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Other receivables (including related parties) Guarantee deposits paid Financial assets for hedging Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities held for trading Embedded derivatives Financial liabilities at amortised cost Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Bonds payable (including current portion) Guarantee deposits received (including current portion) Lease liability (including current portion) Financial liabilities for hedging	December 31, 2025 824,432 114,357 18,247,894 $ 17,331 $ December 31, 2025 24,013 $ 32,100 56,113 $ 1,411,678 $ 10,991,993 3,983,058 2,848,419 235,471 19,470,619 $ 162,527 $ 18,486 $	December 31, 2024 768,651 119,466
		19,282,968 $
		20,425 $
		December 31, 2024 39,583 $ 18,600 58,183 $
		1,016,211 $ 7,567,698 3,933,917 4,198,505 803,984
		17,520,315 $
		195,404 $
		- $

• B. Financial risk management policies

• (a) The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activities. The Company identifies measures and manages the aforementioned risks based on the Company’s policy and risk appetite.

• (b) The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

• (c) To minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are used to hedge certain exchange rate risk, and interest rate swaps are used to fix variable future cash flows. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Notes 6(2) and (4).

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• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Exchange rate risk

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

• ii. The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Company also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Hedge accounting is not applied as they did not qualify for hedge accounting criteria.

• iii. The Company’s risk management policy is to hedge anticipated cash flows from sales in EUR, GBP, JPY and AUD, and purchase in USD.

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

Financial assets Monetary items USD:NTD EUR:NTD JPY:NTD Non-monetary items USD:NTD Investments accounted for using the equity method USD:NTD PHP:NTD INR:NTD MXN:NTD JPY:NTD EUR:NTD Financial liabilities Monetary items USD:NTD EUR:NTD	December31,2025	December31,2025	December31,2025
	Foreign currency (in thousands) 431,207 $ 37,518 2,598,189 10,339 $ 186,971 $ 2,752,806 769,963 117,715 758,670 2,731 378,268 $ 22,352	Exchangerate 31.44 36.90 0.20 31.44 31.44 0.53 0.35 1.75 0.20 36.90 31.44 36.90	Carrying amount (NTD)
			13,557,148 $ 1,384,414 519,638 325,069 $ 5,878,373 $ 1,458,987 269,487 206,001 151,734 100,772 11,892,746 $ 824,789

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Financial assets Monetary items USD:NTD EUR:NTD JPY:NTD Non-monetary items USD:NTD Investments accounted for using the equity method USD:NTD PHP:NTD INR:NTD JPY:NTD Financial liabilities Monetary items USD:NTD	December31,2024	December31,2024	December31,2024
	Foreign currency (in thousands) 368,667 $ 30,656 227,436 7,322 $ 164,395 $ 2,412,467 1,408,176 528,614 238,005 $	Exchangerate 32.78 34.13 0.21 32.78 32.78 0.57 0.29 0.21 32.78	Carrying amount (NTD)
			12,084,904 $ 1,046,289 47,762 240,000 $ 5,388,856 $ 1,375,106 408,371 111,009 7,801,804 $

• v. The total exchange gains, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2025 and 2024 amounted to $63,243 and $230,515, respectively.

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

variation:
Financial assets Monetary items USD:NTD EUR:NTD JPY:NTD Financial liabilities Monetary items USD:NTD EUR:NTD	YearendedDecember31,2025
		Sensitivityanalysis
	Degree of variation 1% 1% 1% 1% 1%	Effect on profitor loss 135,571 $ 13,844 5,196 118,927 $ 8,248	Effect on other comprehensive income
			- $ - - - $ -

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

Year ended December 31, 2024
Sensitivity analysis
Effect on other
Degree of Effect on comprehensive
variation profit or loss income
Financial assets
Monetary items
USD:NTD 1% $ 120,849 $ -
EUR:NTD 1% 10,463 -
JPY:NTD 1% 478 -
Financial liabilities
Monetary items
USD:NTD 1% $ 78,018 $ -
----- End of picture text -----

Price risk

• i. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. The Company manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.

• ii. The Company’s investments in equity and debt securities comprise shares issued by the domestic and foreign companies. The prices of equity and debt securities would change due to the change of the future value of investee companies. If the prices of these equity and debt securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $0, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other comprehensive income would have increased/decreased by $2,601 and $2,356, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Company’s main interest rate risk arises from short-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. As of December 31, 2025 and 2024, the Company’s borrowings was variable and fixed interest rates, respectively.

• ii. The Company’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

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• iii. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant as of December 31, 2025, profit after tax for the year ended December 31, 2025 would have increased/decreased by $736. Changes in interest expense mainly results from floating-rate borrowings.

• (b) Credit risk

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

• ii. Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit limits are established for all customers based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company’s internal rating criteria etc. Certain customers’ credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment or insurance.

• iii. Credit risk from balances with banks and other financial instruments is managed by the Company’s treasury in accordance with the Company’s policy. The Company only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions with high credit rating.

• iv. The Company assesses whether there is any evidence that the credit risk of financial instruments has been significantly increased after initial recognition based on the historical experience. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. The default occurs when the contract payments are past due over 270 days.

• v. The following indicators are used to determine whether the credit impairment of financial assets has occurred:

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

  • (ii) Default.

• vi. The Company classifies customers’ accounts receivable in accordance with customer types. The Company applies the simplified approach using provision matrix or loss rate methodology to estimate expected credit loss.

• vii. The Company used the forecast ability of Taiwan Institute of Economic Research report to adjust historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2025 and 2024, the provision matrix are as follows:

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

Without Up to Up to Up to
December 31, 2025 past due 1-90 days 91 to 180 days 181 to 270 days Over 271 days Total
Group 1
Expected loss rate 0.46% 5.49% - 19.25% 100%
Total book value $ 7,221,134 $ 104,062 $ - $ 483 $ - $ 7,325,679
Loss allowance $ 33,416 $ 5,711 $ - $ 93 $ - $ 39,220
Group 2
Expected loss rate 0.63% 4.85% - - 100%
Total book value $ 1,344,449 $ 126,589 $ - $ - $ - $ 1,471,038
Loss allowance $ 8,421 $ 6,137 $ - $ - $ - $ 14,558
Total book value in total $ 8,565,583 $ 230,651 $ - $ 483 $ - $ 8,796,717
Loss allowance in total $ 41,837 $ 11,848 $ - $ 93 $ - $ 53,778
Without Up to Up to Up to
December 31, 2024 past due 1-90 days 91 to 180 days 181 to 270 days Over 271 days Total
Group 1
Expected loss rate 0.91% 12.39% 36.56% - 100%
Total book value $ 5,986,755 $ 111,279 $ 5,807 $ - $ - $ 6,103,841
Loss allowance $ 54,736 $ 13,786 $ 2,123 $ - $ - $ 70,645
Group 2
Expected loss rate 0.87% 5.16% - - 100%
Total book value $ 189,691 $ 13,927 $ - $ - $ - $ 203,618
Loss allowance $ 1,646 $ 719 $ - $ - $ - $ 2,365
Total book value in total $ 6,176,446 $ 125,206 $ 5,807 $ - $ - $ 6,307,459
Loss allowance in total $ 56,382 $ 14,505 $ 2,123 $ - $ - $ 73,010
----- End of picture text -----

Note: Customer types that are classified based on the Company’s credit risk management policy are as follows:

• Group 1: The credit risk of customers has been insured by professional insurance companies.

• Group 2: The credit risk of customers has not been insured by professional insurance companies.

Considering that the accounts receivable are insured, the Company did not recognise the impairment loss amounting to $32,908 and $40,296 as of December 31, 2025 and 2024, respectively.

viii. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable are as follows:

At January 1 Reversal of impairment loss ( At December 31	2025 32,714 $ 11,844) ( 20,870 $	2024 41,072 $ 8,358) 32,714 $

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants

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(where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets.

• ii. The Company invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

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

December 31, 2025 December 31, 2024 Floating rate: Expiring within one year $ 9,916,384 $ 10,415,134

• iv. The Company’s non-derivative financial liabilities were analysed based on the remaining period at the balance sheet date to the contractual maturity date, derivative financial liabilities were analysed based on the fair value on balance sheet date. Except that the contractual undiscounted cash flows of accounts payable (including related parties), other payables (including related parties) and forward foreign exchange contracts are approximately equal to its book value and mature within one year, the contractual undiscounted cash flows of remaining financial liabilities are disclosed in the following table:

following table:
December 31, 2025 Non-derivative financial liabilities Short-term borrowings Lease liabilities Bonds payable December 31, 2024 Non-derivative financial liabilities Short-term borrowings Lease liabilities Bonds payable	Within 1year $ 1,423,403 57,433 - Within 1year $ 1,026,693 54,591 1,407,518	Between 1 and2years $ - 57,438 - Between 1 and2years $ - 51,885 -	Between 2 and 5 years $ - 52,019 3,000,000 Between 2 and 5 years $ - 89,889 3,000,000	Over5 years
				$ - - - Over5 years
				$ - 6,124 -

The Company did not expect the occurrence timing of cash flow of expiry date analysis would be significantly earlier, or the actual amount would significantly differ.

(3) Fair value information

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

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

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

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in convertible corporate bonds and equity investment without active market are included in Level 3.

• B. Financial instruments not measured at fair value

• (a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, accounts receivable, other receivables, other current assets, financial assets measured at amortised cost, short-term borrowings, short-term notes and bills payable, accounts payable, other payables and other current liabilities and long-term borrowings are approximate to their fair values.

fair values.
Financial liabilities: Bonds payable Financial liabilities: Bonds payable		December	31, 2025
	Book value 2,848,419 $ Bookvalue 4,198,505 $		Fair value
		Level 1 - $ December	Level 2 Level 3 2,846,100 $ - $ 31,2024 Fairvalue
		Level 1 - $	Level 2 Level 3 4,175,000 $ - $

• (b) Bonds payable: They are measured at present value, which is calculated based on the cash flow expected to be paid and discounted using a market rate prevailing at balance sheet date

• C. Financial instruments and non-financial instruments measured at fair value

• (a) The related information of the assets and liabilities classified into the three levels is as follows:

As at December 31, 2025 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Forward foreign exchange contracts Financial assets for hedging Forward foreign exchange contracts Financial assets at fair value through other comprehensive income Unlisted stocks	Level 1 - $ - - - $	Level 2 5,723 $ 17,331 - 23,054 $	Level3 - $ - 325,069 325,069 $	Total
				5,723 $ 17,331 325,069
				348,123 $

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Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts Financial liabilities for hedging Forward foreign exchange contracts Embedded Derivatives The embedded call options and put options in convertible bonds As at December 31, 2024 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Forward foreign exchange contracts Financial assets for hedging Forward foreign exchange contracts Financial assets at fair value through other comprehensive income Unlisted stocks Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts Embedded Derivatives The embedded call options and put options in convertible bonds	Level 1 - $ - - - $ Level 1 - $ - - - $ Level 1 - $ - - $	Level 2 13,384 $ 20,425 - 33,809 $ Level 2 13,384 $ 20,425 - 33,809 $ Level 2 39,583 $ 18,600 58,183 $	Level3 - $ - 294,453 294,453 $ Level3 - $ - 294,453 294,453 $ Level3 - $ - - $	Total
				13,384 $ 20,425 294,453
				328,262 $
				Total
				13,384 $ 20,425 294,453
				328,262 $
				Total
				39,583 $ 18,600
				58,183 $

(b) The methods and assumptions the Company used to measure fair value are as follows:

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

Market quoted price	Listed shares	Closed-end fund	Open-end fund	Government bonds	Corporate bonds	Convertible (exchangeable) bond
	Closing price	Closing price	Net asset value	Transaction price	Weighted average quoted price	Closing price

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

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

• iv. For high-complexity financial instruments, the fair value is measured by using selfdeveloped valuation model based on the valuation method and technique widely used within the same industry. The valuation model is normally applied to derivative financial instruments, debt instruments with embedded derivatives or securitised instruments. Certain inputs used in the valuation model are not observable at market, and the Company must make reasonable estimates based on its assumptions.

• v. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo simulation.

• vi. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk, etc. In accordance with the Company’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the parent company only balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• vii. The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company’s credit quality.

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• D. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

• E. The following chart is the movement of level 3 for the year ended December 31, 2025 and 2024:

At January 1 Acquired in the period At December 31	2025 294,453 $ 30,616 325,069 $	2024
		- $ 294,453
		294,453 $

• F. The finance department of the Company performs the valuation of financial instruments classified as Level 3. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

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

Non-derivative equity instrument: Unlisted stocks Non-derivative equity instrument: Unlisted stocks	Fair value at December31,2025	Valuation technique	Significant unobservableinput	Range (weighted average)	Relationship of inputstofair
	325,069 $ Fair value at December31,2024	Most recent transaction prices in non- active market Valuation technique	Not applicable Significant unobservableinput	- Range (weighted average)	Not applicable Relationship of inputstofair
	294,453 $	Most recent transaction prices in non- active market	Not applicable	-	Not applicable

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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

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

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

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

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

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

• (2) Information on investees

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

• (3) Information on investments in Mainland China

  • A. Basic information: Please refer to table 8.

  • B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to tables 1, 2, 4, 5, and 6.

• SEGMENT INFORMATION

• Not applicable.

(Blank)

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Sercomm Corporation Loans to others Year ended December 31, 2025

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Maximum

					Maximum
No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	outstanding endorsement/ guarantee amount as of December 31, 2025	Balance at December 31, 2025	Actual amount drawn down	Interest rate(%)	Nature of loan (Note 4)	Amount of transactions with the borrower	Reason for short- term financing	Allowance for bad debt	Coll	ateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
1 2 3	DWNet Technology (Suzhou) Co., Ltd. Zealous Investments Ltd. Sercomm Philippines Inc.	Sernet (Suzhou) Technologies Corporation The Company Refinement Property Holding Inc.	Other receivables- related party Other receivables- related party Other receivables- related party	Y Y Y	274,380 $ 1,161,370 251,504	- $ 1,100,330 251,504	- $ 817,388 251,504	3.10 5.00 5.00	(2) (2) (2)	- $ - -	Additional operating capital Additional operating capital Additional operating capital	- $ - -	None None None	- $ - -	380,688 $ 2,609,687 323,152	761,377 $ 5,219,374 646,306	Note 2(3) Note 2(3) Note 3(2)

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

• (1)The Company is ‘0’.

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

• Note 2: The aggregate amount of loans to others shall not exceed 40% of the Company’s net assets based on the latest audited or reviewed financial statements.

• The loan limit for each entity depending on the purpose of the loan is as follows:

• (1) Nature of loans is related to business transactions: The amount shall not exceed the higher of the sales or purchases amount to/ from the borrower for the year as of the time of the lending event or for the most recent year.

• (2) As short-term financing: The amount shall not exceed 20% of the Company’s net assets based on the latest audited or reviewed financial statements.

• (3) Financing between the Company's 100% directly- or indirectly- held overseas investee is not limited to 40% of the Company’s net assets based on the latest audited or reviewed financial statements.

• However, total loans shall not exceed 100% net assets. Loans to a signal party shall not exceed 50% net assets.

• Note 3: The aggregate amount of loans from subsidiaries to others shall not exceed 40% of stockholders' equity as stated in the subsidiary's or the Company's most recent audited or reviewed financial statements, whichever is lower. The loan limit for each entity depending on the purpose of the loan is as follows:

• (1) Nature of loans is related to business transactions: The amount shall not exceed the higher of the sales or purchases amount to/ from the trading partner for the year as of the time of the lending event or for the most recent year.

• (2) As short-term financing: The amount shall not exceed 20% of the subsidiary or the Company’s net assets based on the latest audited or reviewed financial statements.

• (3) Financing between the group's investee which is 100% directly- or indirectly- held by the parent company is not limited to the ratio as stated in the preceding paragraph.

• However, total loans shall not exceed 100% net assets as stated in the parent company's most recent audited or reviewed financial statement. Loans to individual investee shall not exceed 50% net assets.

• Note 4: (1)Nature of loans is related to business transactions : The trading amounts refer to the business transaction amounts within the recent year between the lender company and the lendee entity.

• (2)Short-term financing

Table 1 Page 1

Table 2

ressed in thousands of NTD xcept as otherwise indicated)

Sercomm Corporation

Provision of endorsements and guarantees to others Year ended December 31, 2025

Number (Note 1)	Endorser/ guarantor	Partybeingendorsed/guaranteed	Partybeingendorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2025 (Note 4)	Outstanding endorsement/ guarantee amount at December 31, 2025	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company (%)	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser/ guarantor (Note 2)
0 0 0 0 0	The Company ″ ″ ″ ″	DWNet Technology (Suzhou) Co., Ltd. Sernet (Suzhou) Technologies Corporation Sercomm Philippines Inc. Sctek Manufacturing S.A. DE C.V. Servercom (India) Private Limited	(2) (2) (2) (2) (2)	7,977,832 $ 7,977,832 3,988,916 7,977,832 7,977,832	829,550 $ 995,460 331,820 6,636 1,659,100	785,950 $ 943,140 314,380 6,288 1,571,900	73,154 $ - - - 734,160	- $ - - - -	4.93 5.91 1.97 0.04 9.85	15,955,664 $ 15,955,664 7,977,832 15,955,664 15,955,664	Y Y Y Y Y	N N N N N	Y Y N N N

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

• (a) The Company is ‘0’.

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

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories:

• (a) Having business relationship.

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

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

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

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

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

• (g) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Table 2 Page 1

Note 3: The Company's 'Procedures for Provision of Endorsements and Guarantees' are as follows:

• (1)Limit on total endorsements is 50% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on endorsements to a single party is 25%.

• (2)The restriction stated in (1) shall not apply to provision of endorsements and guarantees between subsidiaries in which the Company holds, directly or indirectly, 100% of the voting shares. However the endorsement / guarantee amount should not exceed 100% net assets. Endorsements / guarantees provided to individual investees should not exceed 50% net assets.

• (3)The amounts permitted to make in endorsements/guarantees to single subsidiary shall not exceed 50% of the Company's stockholders' equity as stated in its latest financial statements; the total amount shall not exceed 100% of stockholders' equity as stated in its latest financial statements.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Table 2 Page 2

Sercomm Corporation

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

December 31, 2025

			December 31, 2025
Securities held by Table 3	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2025		Fairvalue Note Expressed in thousands of NTD (Except as otherwise indicated)
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
The Company ″ Sercomm Investment Corp.	Unlisted preference share UBICQUIA INC. MORE, INC. Unlisted stocks Cerpass Technology Co., Ltd.	None None None	Financial assets at fair value through other comprehensive income - non-current ″ Financial assets at fair value through other comprehensive income - non-current	18,175 419,017 627,004	294,453 $ 30,616 27,109	1.56% 2.20% 3.69%	294,453 $ 30,616 27,109

Note: Only disclose transactions with amount of $5,000 or more.

Table 3 Page 1

Sercomm Corporation

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

Year ended December 31, 2025

				Year ended December 31, 2025	Year ended December 31, 2025
Purchaser/seller Table 4	Counterparty	Relationship with the counterparty		Transaction			Differences in transaction terms compared to third party transactions (Note)		Expressed in thousands of NTD (Except as otherwise indicated) Balance Percentage of total notes/accounts receivable (payable)(%) Footnote - $ - 917,685 6 1,032,009 7 152,944 1 61 - 1,864,342) ( 17) ( 3,340,578 23 3,796,743) ( 35) ( - - 17,984 - 2,382,311 51 121,057) ( 2) ( Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)(%)	Credit term	Unitprice Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 2 Note 1 Note 1 Note 3 Note 3 Note 3	Credit term	Balance - $ 917,685 1,032,009 152,944 61 1,864,342) ( 3,340,578 3,796,743) ( - 17,984 2,382,311 121,057) (	Percentage of total notes/accounts receivable (payable)(%)
The Company ″ ″ ″ ″ ″ ″ ″ ″ Sernet (Suzhou) Technologies Corporation ″ ″	Sercomm France SARL Servercom (India) Private Limited Sercomm Japan Corp. Sercomm Solutions Inc. Sernet (Suzhou) Technologies Corporation Sernet (Suzhou) Technologies Corporation Sercomm Philippines Inc. Sercomm Philippines Inc. Sctek Manufacturing, S.A. DE C.V. DWNet Technology (Suzhou) Co., Ltd. Sercomm Philippines Inc. Sercomm Philippines Inc.	Subsidiary Subsidiary Subsidiary Second-tier subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Affiliate Affiliate Affiliate			- 2) ( 5) ( - - 21 11) ( 53 - 1) ( 21) ( 3	180 270 180 180 180 60 180 60 60 180 180 180		Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 2 Note 1 Note 1 Note 3 Note 3 Note 3		- 6 7 1 - 17) ( 23 35) ( - - 51 2) (

Table 4 Page 1

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions (Note)	Differences in transaction terms compared to third party transactions (Note)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)(%)	Credit term	Unitprice Note 3	Credit term	Balance 176,581) ($	Percentage of total notes/accounts receivable (payable)(%)
Servercom (India) Private Limited	Sernet (India) Private Limited	Affiliate	Purchases	341,089 $	12	180		Note 3		14) (

Note 1: The purchase price to the above related parties was determined through mutual agreement based on the market conditions. The payment period for related parties was month-end 60 days, while the terms for domestic third party purchase was net 60-120 days. The payment period for overseas purchase was net 30-210 days.

Note 2: The sales price to the above related parties was determined through mutual agreement based on the market conditions. The collection period for related parties was month-end 180-270 days, while the terms for domestic third party sales was net 20-75 days. The collection period for overseas sales was net 20-210 days.

Note 3: The transaction price to the inter-subsidiary transactions was determined through mutual agreement based on the market conditions. The collection period and payment period for related parties were month-end 180 days, while the terms for domestic third party transaction was net 20-120 days. The collection period and payment period for overseas transaction were net 20-210 days.

Table 4 Page 2

Sercomm Corporation

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

December 31, 2025

Table 5 Creditor	Counterparty	Relationship with the counterparty	Balance as of December31,2025	Turnover rate(%)	Overduereceivables	Overduereceivables	Amount collected subsequent to the balance sheetdate (Note) Allowancefor loss Expressed in thousands of NTD (Except as otherwise indicated)	Amount collected subsequent to the balance sheetdate (Note) Allowancefor loss Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
The Company ″ ″ ″ Sernet (Suzhou) Technologies Corporation ″ Sercomm Philippines Inc. ″ Scnet (India) Private Limited	Servercom (India) Private Limited Sercomm Japan Corp. Sercomm Philippines Inc. Sercomm Solutions Inc. The Company Sercomm Philippines Inc. The Company Sernet (Suzhou) Technologies Corporation Servercom (India) Private Limited	Subsidiary Subsidiary Subsidiary Subsidiary Ultimate parent company Affiliate Ultimate parent company Affiliate Affiliate	917,685 $ 1,032,009 3,340,578 152,944 1,864,342 2,382,311 3,796,743 121,057 176,581	- - - - - - - - -	60,350 $ - - - - - - - -	Sebsequent collection - - - - - - - -	61,977 $ 353,138 764,113 - 186,442 730,902 3,796,743 - -	- $ - - - - - - - -

Note: Information was collected as of February 26, 2026.

Table 5 Page 1

Table 6

Sercomm Corporation

Significant inter-company transactions during the reporting periods

Year ended December 31, 2025

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note1)	Companyname	Counterparty	Relationship (Note2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (%)(Note 3)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	The Company ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″	Sercomm France SARL ″ Servercom (India) Private Limited ″ Scnet (India) Private Limited Sercomm Japan Corp. ″ Sercomm USA Inc. Sercomm Technology Inc. ″ Sernet (Suzhou) Technologies Corporation ″ ″ ″ ″ Sercomm Philippines Inc. ″ ″ ″ Sctek Manufacturing, S.A. DE C.V. Zealous Investments Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1	Commissions expense Sales revenue Accounts receivable Sales revenue Accounts receivable Accounts receivable Sales revenue Commissions expense Other accrued expense Commissions expense Accounts payable Sales revenue Purchase Service expense Other payables Accounts receivable Accounts payable Sales revenue Purchase Purchase Other payables	51,735 $ 104,181 917,685 1,156,585 93,184 1,032,009 2,724,105 120,608 102,371 704,741 1,864,342 247,864 10,456,564 377,267 377,267 3,340,578 3,796,743 5,690,298 26,464,949 117,777 859,102	- Note 4 - Note 4 - - Note 4 - - - - Note 4 - - - - - Note 4 - - -	- - 2 2 - 2 5 - - 1 4 - 19 - - 7 8 11 49 - 2

Table 6 Page 1

Transaction

Number (Note1)	Companyname	Counterparty	Relationship (Note2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (%)(Note 3)
0 0 1 1 1 1 1 2 2 3 3	The Company ″ Sernet (Suzhou) Technologies Corporation ″ ″ ″ ″ Sercomm Philippines Inc. ″ Servercom (India) Private Limited ″	Sercomm Solutions Inc. ″ DWNet Technology (Suzhou) Co., Ltd. Sercomm Philippines Inc. ″ ″ ″ Refinement Property Holding Inc. Sctek Manufacturing, S.A. DE C.V. Scnet (India) Private Limited ″	1 1 3 3 3 3 3 3 3 3 3	Accounts receivable Sales revenue Processing fees revenue Accounts receivable Accounts payable Sales revenue Purchase Other receivables Sales revenue Accounts payable Purchase	152,944 $ 152,502 119,294 2,382,311 121,057 2,877,180 299,799 249,772 80,004 176,581 341,089	- Note 4 Note 4 - - Note 4 - - Note 4 - -	- - - 5 - 5 - - - - -

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

• (1) Parent company is ‘0’.

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

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

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

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

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

• Note 4: The sales price to the above related parties was determined through mutual agreement based on the market conditions. The collection period for third party was month-end 60-270 days, while the terms for domestic sales was net 20-75 days. The collection period for overseas sales was net 20-210 days.

Note 5: Only disclose transactions with amount of $50,000 or more.

Table 6 Page 2

Table 7

Sercomm Corporation

Information on investees (excluding investees in Mainland China)

Year ended December 31, 2025

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held Dece	and book val mber 31,202	ue as at 5	Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31,2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares (in thousand shares)	Ownership (%)	Book value
The Company ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″ ″	Sercomm USA Inc. Sercomm Trading Co. Ltd. Sercomm Investment Corp. Sercomm Japan Corp. Sercomm France SARL. Sercomm Deutschland GmbH Sercomm Russia Limited Liability Company Sercomm Technology Inc. Sercomm Britain Limited Sernet Technology Mexico S. de R.L. de C.V., Servercom (India) Private Limited Sercomm Philippines Inc. Refinement Property Holding Inc. Mosolabs Inc. Sercomm Turkey Kablosuz İletişim Sanayi ve Ticaret Anonim Şirketi	USA Samoa Taiwan Japan France Germany Russia USA UK Mexico India Philippines Philippines USA Turkey	Local market consultation and customer support services of network communication products Overseas indirect investment General investment Sales of communication products and quotation, tender, general import and export business related the products Local market consultation and customer support services of network communication products Local market consultation and customer support services of network communication products Sales of network communication products and provision of quotation, tender, general import and export business to the related the products Local market consultation and customer support services of network communication products Local market consultation and customer support services of network communication products Local market consultation and customer support services of network communication products Manufacturing and sales of communication products, operating system (OS) and related software Manufacturing and sales of communication products, operating system (OS) and related software Real estate for rent Retail business services of network communication products Local market consultation and customer support services of network communication products	20,739 $ 315,016 28,000 157,721 4,004 19,412 28,042 153,880 13,535 507 15,000 1,094,819 - 153,728 29,114	20,739 $ 315,016 28,000 157,721 4,004 19,412 28,042 153,880 13,535 507 15,000 1,094,819 240,000 108,746 -	650 9,300 2,800 10 1 - 28,948 5,000 350 400 35,000 1,940,000 - 5,000 38,000	100 100 100 100 100 100 100 100 100 100 100 97 - 100 100	46,964 $ 5,644,536 42,077 151,734 55,428 45,344 12,250) ( 122,893 7,376 15,787) ( 41,258) ( 1,458,987 - 56,213 24,945	4,571 $ 373,624 755 47,345 6,538 30,121 2,127) ( 32,428 776 3,527) ( 79,736) ( 143,943 - 44,360) ( 3,112) (	4,571 $ 480,190 755 47,345 6,538 30,121 2,127) ( 32,428 776 3,527) ( 79,736) ( 167,380 - 44,360) ( 3,112) (	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Second-tier subsidiary (Note 1) Subsidiary Subsidiary

Table 7 Page 1

Sercomm Corporation

Information on investees (excluding investees in Mainland China)

Year ended December 31, 2025

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held Dece	and book val mber 31,202	ue as at 5	Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31,2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares (in thousand shares)	Ownership (%)	Book value
The Company ″ ″ ″ Sercomm Trading Co. Ltd. ″ Sercomm France SARL Zealous Investments Ltd. ″ Sercomm Deutschland GmbH Sercomm International Inc.	Scnet (India) Private Limited Scteck Manumacturing,S.A. DE C.V Presciense Limited Sercomm International Inc. Zealous Investments Ltd. Smart Trade Inc. Sercomm Italia SRL. Sercomm Philippines Inc. Refinement Property Holding Inc. MECSware GmbH Sercomm Solutions Inc.	India Mexico UK USA Samoa Samoa Italy Philippines Philippines Germany USA	Manufacturing of communication products, operating system (OS) and related software Manufacturing of communication products, operating system (OS) and related software Design, R&D and application of smarthome platform technology Overseas investment Overseas investment Overseas investment Local market consultation and customer support services of network communication products Manufacturing and sales of communication products, operating system (OS) and related software Lease of real estate Sale of IT products Local market consultation and customer support services of network communication products	420,949 $ 213,516 - 6,305 218,578 96,439 388 35,266 119 - 3,153	420,949 $ 48,863 - - 218,578 96,439 388 35,266 119 30,144 -	2,200 129,000 3 2 5,956 3,500 10 60,000 200 - 100	100 100 25 100 100 100 100 3 40 - 100	269,487 $ 206,001 - 7,767 5,219,374 764,241 11,472 156,777 8,146) ( - 4,636	69,896) ($ 14,629) ( - 1,460 333,303 44,639 1,302 143,943 6,302) ( - 1,472	69,896) ($ 14,629) ( - 1,460 - - - - - - -	Subsidiary Subsidiary Associate Subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Second-tier subsidiary Associate Second-tier subsidiary

Note 1:Following the Group’s operating strategies, the Company invested in preferred stocks of Refinement Property Holding Inc. in the third quarter of 2022.

However, due to the restriction of local regulations, foreign capital is not allowed to exceed a substantial holding ratio of 40%, which led to a violation of the restriction relating to the co-ownership proportion of land ownership by non-Philippine coporate shareholders. The consolidated subsidiary, Refinement Property Holding Inc., had returned the investment amount in October 2025.

Table 7 Page 2

Sercomm Corporation

Information on investments in Mainland China

Year ended December 31, 2025

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-incapital	Investment method (Note1)	Accumulated amount remitted from Taiwan to Mainland China as of January 1, 2025	Maximum outstanding endorsement/ guarantee amount as of December 31, 2025	Maximum outstanding endorsement/ guarantee amount as of December 31, 2025	Accumulated amount remitted from Taiwan to Mainland China as of December 31,2025	Net income of investeefor for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)(%)	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Book value of investments in Mainland China as of December 31,2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	Footnote
					Remitted to Mainland China	Remitted back toTaiwan
Sernet (Suzhou) Technologies Corporation DWNet Technology (Suzhou) Co., Ltd. Nanjing Femtel Communications Co., Ltd.	Research and development (R&D) and manufacturing of communication products Manufacturing and sales of communication products, operating system (OS) and l d f Research and development (R&D) and sales of network communication products and related software	933,252 $ 481,829 12,538	(2) (2) (2)	$ 912,698 481,829 -	$ - - -	$ - - -	$ 912,698 481,829 -	$ 329,838 47,286 614	100 100 100	$ 329,838 47,286 614	$ 4,157,904 761,377 10,018	$ - - -	Notes 3 Notes 4 Notes 3

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

Note 2: Investment income (loss) was recognised based on the financial statement audited by the parent company's independent auditors.

Note 3:The Company established Sercomm Trading Co. Ltd. in a third region. The Company reinvested in Zealous Investments Ltd. through Sercomm Trading Co. Ltd. and then invested in Mainland China.

Note 4:The Company established Sercomm Trading Co. Ltd. in a third region. The Company reinvested Smart Trade Inc. through Sercomm Trading Co. Ltd. and then invested in Mainland China

Note 5:The Company's investment in Mainland China is not subject to an upper limit as it is deemed corporate operations headquarters as it complied with the Examination Standards of Investments and Technical Cooperation in the Mainland China area published by Investment Commission, MOEA.

Accumulated amount remitted Investment amount approved Ceiling on investments in from Taiwan to Mainland China by the Investment Commission Mainland China imposed by the Company name as of December 31, 2025 of the Ministry of MOEA Investment Commission of MOEA $ 1,394,527 $1,407,475 The Company No limitation (Note 5) (USD 44,900,000) (USD 45,144,000)

Table 8 Page 1

SERCOMM CORPORATION STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

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Statement 1
Item Description Amount
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Cash on hand Time deposits (Note) Cash in banks Demand deposits - NTD Demand deposits - foreign currencies USD 35,582 thousand; conversion rate 31.44 EUR 1,718 thousand; conversion rate 36.90 AUD 570 thousand; conversion rate 21.01 CAD 495 thousand; conversion rate 22.94 JPY 45,126 thousand; conversion rate 0.20 GBP 192 thousand; conversion rate 42.31 RMB 50 thousand; conversion rate 4.50	2,103 $ 1,400,000 318,813 1,118,698 63,394 11,976 11,355 9,025 8,124 225 2,943,713 $

Note: The above time deposits were subsequently expired from February 2026 to May 2026; interest rate is 1.65%~1.68%.

Statement 1, Page1

SERCOMM CORPORATION STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 2

Statement 2
ClientName Accounts receivable - non-related parties Client A Client B Client C Others Less: Allowance for loss Subtotal Accounts receivable - related parties Sercomm Philippines Inc. Sercomm Japan Corp. Servercom (India) Private Limited Others Subtotal	Amount 2,969,384 $ 893,933 730,424 4,202,976 8,796,717 20,870) ( 8,775,847 3,340,578 $ 1,032,008 917,685 256,173 5,546,444 14,322,291 $	Note
		None of the balances of each remaining client exceed 5% of this account balance None of the balances of each remaining client exceed 5% of this account balance

Statement 2, Page1

SERCOMM CORPORATION STATEMENT OF OTHER RECEIVABLES DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 3

Statement 3
Item	Description		Amount	Note
Other receivables- non-related parties Sales of accounts receivable Receivables from payment on behalf of others Tax refund receivable Others Other receivables- related parties Purchases of equipment and materials	Amount available for advance with accounts receivable factoring without recourse rights Tariff and freight charges paid on behalf of customers Tax refund receivable		484,530 $ 76,130 68,395 159,956 789,011 35,421 824,432 $	None of the balances of each remaining client exceed 5% of this account balance

Statement 3, Page1

SERCOMM CORPORATION STATEMENT OF INVENTORIES DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 4

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Amount
Item Cost Net Realizable Value Note
Raw materials and supplies $ 1,284,476 $ 1,115,363 Net realisable value was
used as market value
Work in progress 553,654 513,590 ″
Finished goods 5,451,216 5,986,785 ″
7,289,346 $ 7,615,738
Less: Allowance for
valuation loss ( 291,787)
$ 6,997,559
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Statement 4, Page1

SERCOMM CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

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Statement 5
Beginning Balance Addition Decrease Ending Balance Market Value or Net Assets Value
Pledged to
Shares Shares Shares Shares Percentage of Unit Price others as
Name (in thousands) Amount (in thousands) Amount (in thousands) Amount (in thousands) Ownership Amount (in dollars) Total Amount collateral Note
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Name	(in thousands)		Amount (i	n thousands)		Amount (in th	ousands)	A	mount (	in thousands)	Ownership		Amount	(in dollars)	To	tal Amount	Note collateral
Sercomm Trading Co.,
Ltd.	9,300	$	5,196,272	-	$	480,190	-	($	31,926)	9,300	100%	$	5,644,536	607	$	5,644,536	N
Sercomm Philippines Inc.	1,940,000		1,375,106	-		167,380	-	(	83,499)	1,940,000	100%		1,458,987	1		1,458,987	N
Servercom (India) Private
Limited	2,200		369,151	-		-	-	(	99,664)	2,200	100%		269,487	122		269,487	N
Sctek Manufacturing, S.A.
DE C.V.	29,000		42,594	100,000		178,036	-	(	14,629)	129,000	100%		206,001	2		206,001	N
Sercomm Japan Corp.	10		111,009	-		47,345	-	(	6,620)	10	100%		151,734	15,173		151,734	N
Sercomm Technology,
Inc.	5,000		93,880	-		32,428	-	(	3,415)	5,000	100%		122,893	25		122,893	N
Mosolabs Inc.	3,500		54,563	1,500		44,982	-	(	43,332)	5,000	100%		56,213	11		56,213	N
Sercomm France SARL	1		44,938	-		10,490	-		-	1	100%		55,428	55,428		55,428	N
Sercomm USA Inc.	650		44,141	-		4,571	-	(	1,748)	650	100%		46,964	72		46,964	N
Sercomm Deutschland
GmbH	-		12,770	-		32,574	-		-	-	100%		45,344	7,557,333		45,344	N
Sercomm Investment Corp.	2,800		44,099	-		755	-	(	2,777)	2,800	100%		42,077	15		42,077	N
Sercomm Turkey
Kablosuz Iletisim Sanayi
ve
Ticaret Anonim Sirketi	-		-	38,000		29,114	-	(	4,169)	38,000	100%		24,945	1		24,945	N
Sercomm International Inc.	-		-	2		7,767	-		-	2	100%		7,767	3,884		7,767	N
Sercomm Britain Limited	350		6,401	-		975	-		-	350	100%		7,376	21		7,376	N

Statement 5, Page1

SERCOMM CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (Cont.) FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

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Statement 5
Beginning Balance Addition Decrease Ending Balance Market Value or Net Assets Value
Pledged to
Shares Shares Shares Shares Percentage of Unit Price others as
Name (in thousands) Amount (in thousands) Amount (in thousands) Amount (in thousands) Ownership Amount (in dollars) Total Amount collateral Note
Sercomm Russia Limited
Liability Company 28,948 ($ 7,221) - $ - - ($ 5,029) 28,948 100% ($ 12,250) - ($ 12,250) N
Sernet Technology Mexico
S. de R.L. de C.V., 400 ( 10,808) - - - ( 4,979) 400 100% ( 15,787) ( 39) ( 15,787) N
Servercom (India) Private
Limited 35,000 39,220 - - - ( 80,478) 35,000 100% ( 41,258) ( 1) ( 41,258) N
7,416,115 $ 1,036,607 ($ 382,265) 8,070,457 8,070,457
Add: Credit balance of investments
accounted for using the equity
method 18,029 69,295 69,295
$ 7,434,144 $ 8,139,752 $ 8,139,752
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Note 1: Addition amount for the year includes comprises investment establishment, investment increment, share of profit (loss) of associates and joint ventures accounted for using the equity method, unrealised gains (losses) from financial assets measured at fair value through other comprehensive income and exchange differences on translation of foreign financial statements during the year.

Note 2: Decrease amount for the year includes capital reduction, share of profit (loss) of associates and joint ventures accounted for using the equity method and exchange differences on translation of foreign financial statements.

Statement 5, Page2

SERCOMM CORPORATION

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 6

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Item Beginning balance Addition (Note 1) Decrease (Note 2) Ending balance
Buildings $ 295,877 $ 16,024 ($ 7,425) $ 304,476
-
Transportation equipment 1,104 1,104 2,208
Land 4,333 - ( 4,333) -
$ 301,314 $ 17,128 ($ 11,758) $ 306,684
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Note 1: Additions for the year are new lease contracts and effect of variable lease payments during the year. Note 2: Decrease for the year are impact of lease expiration and changes in lease payments.

Statement 6, Page1

SERCOMM CORPORATION

STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 7

Statement 7
Item Buildings Transportation equipment Land	Beginning balance 99,709 $ 675 3,552 103,936 $	Addition Decrease 52,678 $ 6,847) ($ 459 - 781 4,333) ( 53,918 $ 11,180) ($	Ending balance
			145,540 $ 1,134 -
			146,674 $

Statement 7, Page1

SERCOMM CORPORATION STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 8

Statement 8
Nature Description Unsecured borrowings DBS Bank 〃 Standard Chartered Bank 〃 Citibank 〃 Sumitomo Mitsui Banking Corporation 〃 Mizuho Bank 〃 BNP Paribas 〃 Yuanta Commercial Bank HSBC Bank (Taiwan) Limited 〃 Taipei Fubon Commercial Bank 〃 CTBC Bank 〃 Taishin International Bank 〃 Taiwan Cooperative Bank 〃 Far Eastern International Bank 〃 Shanghai Commercial and Savings Bank 〃 E.Sun Commercial Bank 〃 Cathay United Bank	Ending balance 367,866 $ - - - - - - - 225,090 - - - - - 282,942 535,780 1,411,678 $	Contractperiod 2026/1~2026/2 - - - - - - - 2026/4~2026/5 - - - - - 2026/3 2026/1~2026/3	Range of interest rate 0.9%~2.63% - - - - - - - 2.38%~2.5% - - - - - 4.29% 2.5%~4.35%	Credit line 1,886,280 $ 1,257,520 974,578 943,140 943,140 817,388 800,000 628,760 600,000 500,000 500,000 400,000 400,000 377,256 300,000 - 11,328,062 $	Collateral
					None 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃

Statement 8, Page1

SERCOMM CORPORATION STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 9

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Supplier Name Amount Note
Accounts payable - non-related parties
Supplier A $ 1,581,416
None of the balances of each remaining
supplier exceed 5% of this account
Others 3,743,684 balance
5,325,100
Accounts payable - related parties
Sercomm Philippines Inc. 3,796,743
Sernet (Suzhou) Technologies Corporation 1,864,342
None of the balances of each remaining
supplier exceed 5% of this account
Others 5,808 balance
Subtotal 5,666,893
$ 10,991,993
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Statement 9, Page1

SERCOMM CORPORATION STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 10

Item Fixed mobile convergence products (BB CPE) Enterprise (ENT) IoT Solutions (Infra. & IoT) Others Less: Sales discounts and allowances ( Net sales revenue	Amount Note 27,162,740 $ 11,738 thousand pieces 10,036,807 3,573 thousand pieces 10,375,461 6,451 thousand pieces 3,297,265 50,872,273 198,234) 50,674,039 $

Statement 10, Page1

SERCOMM CORPORATION STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 11
Item			Amount
Beginning raw materials		$	1,348,298
Add: Raw materials purchased during the year			45,088,311
Less: Ending raw materials	(		1,284,476)
Materials scrapped	(		56,853)
Sale of materials	(		7,176,377)
Raw materials used for the year			37,918,903
Direct labor			675,732
Manufacturing expense			640,781
Outsourced processing			48,564
Manufacturing cost			39,283,980
Beginning work in progress			311,752
Add: Purchase during the year			10,566
Finished goods transferred to work in progress			484,562
Less: Ending work in progress	(		553,654)
Work in progress scrapped	(		32,217)
Sale of work in progress	(		1,770)
Transfers to other expenses	(		75,241)
Cost of finished goods			39,427,978
Beginning finished goods			3,534,307
Add: Purchase during the year			779,577
Less: Ending finished goods	(		5,451,216)
Finished goods scrapped	(		8,667)
Finished goods transferred to work in progress	(		484,562)
Transfers to other expenses	(		68,278)
Cost of goods sold from manufacturing			37,729,139
Cost of sales of raw materials and work in progress			7,178,147
Gain on reversal of market value	(		64,600)
		$	44,842,686

Statement 11, Page1

SERCOMM CORPORATION STATEMENT OF OPERATING EXPENSES DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 12

Statement 12
Wages and salaries Commission expense Employees’ compensation and directors’ remuneration Royalty Depreciation charges Amortisation charges Insurance expense Employee benefits Repairs and maintenance expense Professional service fees Others (Note) Item	96,325 $ 1,002,128 74,500 563,889 7,965 2,232 19,121 4,480 1,391 82,974 137,285 1,992,290 $ Selling expenses	Administrative expenses 238,710 $ - 74,500 - 45,591 19,876 56,300 7,100 19,859 49,235 194,516 705,687 $	Research and Development expenses 807,699 $ - 149,000 - 137,718 105,565 78,563 23,015 15,469 390,592 424,429 2,132,050 $	Total
				1,142,734 $ 1,002,128 298,000 563,889 191,274 127,673 153,984 34,595 36,719 522,801 756,230
				4,830,027 $

Note: None of the balances of each individual item exceed 5% of this account balance.

Statement 12, Page1

SERCOMM CORPORATION

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTISATION EXPENSES BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 13

Statement 13
Nature Function	Year ended December 31,2025			Year ended December 31,2024
	Classified as OperatingCosts	Classified as Operating Expenses	Total	Classified as OperatingCosts	Classified as Operating Expenses	Total
Employee Benefit Expense
Wages and salaries	505,728 $	1,410,938 $	1,916,666 $	408,004 $	1,800,802 $	2,208,806 $
Labour and health insurance fees	47,796	111,430	159,226	43,313	108,321	151,634
Pension costs	16,409	57,919	74,328	15,835	57,243	73,078
Directors'remuneration	-	29,796	29,796	-	46,910	46,910
Other personnel expenses	53,305	77,556	130,861	40,395	66,091	106,486
Depreciation Charges	229,634	191,274	420,908	198,108	173,915	372,023
Amortisation Charges	105	127,673	127,778	302	151,605	151,907

Note:

A. Years ended December 31, 2025 and 2024, the Company had 1,903 and 1,867 employees, including 6 and 6 non-employee directors, respectively.

B. (a) Average employee benefit expense in current year amounted to $1,202; average employee benefit expense in previous year amounted to $1,365.

• (b) Average employee salaries in current year amounted to $1,010; average employee salaries in previous year amounted to $1,187.

• (c) Adjustments of average employee salaries was (14.91%).

Explanation:

A. The number of employees in the note to this statement shall be calculated based on the same basis as the employee benefit expense.

B. In accordance with IAS 19, an employee may render services on a full-time, part-time, permanent, casual or temporary basis, and employees include directors and other management personnel. Thus, “employees” in this statement include directors, managers, general employees and contracted employees, etc. but exclude supervisors, dispatched workers and workers under service or outsourcing contracts.

Statement 13, Page1

SERCOMM CORPORATION

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTISATION EXPENSES BY FUNCTION (Cont.) FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Statement 13

• C. “Directors’ remuneration” include salaries, severance and pension payments, bonuses and professional practice fees that are received by all directors, but excludes salaries, labour and health insurance fees, pension payments and other benefit expenses that are received by directors as employees.

• D. The Company’s compensation policy (including directors, independent directors, managers and employees) is as follows:

• (a) The remuneration of the Company’s directors is determined by the Remuneration Committee based on the extent of their participation and value of contribution to the Company, and by reference to the general pay levels in the same industry. In addition, a ratio of distributable profit of the year shall be appropriated as directors’ remuneration, and the ratio shall not be higher than 2.5% in accordance with the Company’s articles of incorporation. The actual appropriation ratio will be proposed by the Remuneration Committee after considering operational performance.

• (b) The compensation of the Company’s managers is highly correlated with the Company’s operational performance. The salary is assessed annually based on the Company’s performance indicators, and by reference to general pay levels of managers in the same industry.

• (c) The compensation of the Company’s employees includes monthly salaries, bonuses and employees’ compensation. The employees’ salaries and compensation are paid based on the education and work experience. professional expertise and skills, length of professional service and contribution. The compensation policy is adjusted according to the market salary dynamics, changes in the overall economic and industrial climate, and necessary adjustments as required by the government laws and regulations.

Statement 13, Page2