3023

SINBON ELECTRONICS CO., LTD.
PARENT COMPANY ONLY FINANCIAL STATEMENTS
WITH REPORT OF INDEPENDENT AUDITORS
FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024

Address: No.582, Kuo-Hwa Rd., Miaoli 360, Taiwan, R.O.C.
Telephone: 886-37-330-099

The reader is advised that parent company only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

EY安永

安永聯合會計師事務所

40756 台中市市政北七路186號26樓
26F, No.186, Shizheng N. 7th Road,
Taichung City, Taiwan, R.O.C

Tel: 886 4 2259 8999
Fax: 886 4 2259 7999
ey.com/zh_tw

Independent Auditors’ Report Translated from Chinese

To SINBON Electronics Co., Ltd.

Opinion

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

In our opinion, based on our audits and the report(s) of the other auditors (please refer to the Other Metter – Making Reference to the Audit(s) of Other Auditors section of our report), the parent company only financial statements referred to above present fairly, in all material respects, the financial position of the Company as of 31 December 2025 and 2024, and its financial performance and cash flows for the years ended 31 December 2025 and 2024, in conformity with the requirements of 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 the 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 (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the report(s) of the other auditor(s), we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

A member firm of Ernst & Young Global Limited

EY安永

1. Valuation for inventories (Including inventories of the subsidiaries under the equity method)

The amount of inventories of the Company and its subsidiaries was significant to the financial statements. As the fluctuation in market demand and the fast-changing technology could cause losses of obsolete and slow-moving inventories, the assessment of the inventory write-downs require significant management judgment. We therefore determined this a key audit matter.

Our audit procedures included, but not limited to, understanding and testing the adequacy of accounting policy around obsolete and slow-moving inventories, evaluating stocktaking plan and selecting important storage locations to observe inventory counts to ensure inventory quantities and status; obtaining inventory aging schedule to test whether inbound and outbound records are accurate; re-calculating the unit cost of inventories; and evaluating and testing net realizable value adopted by management. We also assessed the adequacy of disclosures of financial assets. Please refer to Notes 5 and 6 to the parent company only financial statements.

2. Impairment of accounts receivable

As of 31 December 2025, gross accounts receivable and loss allowance by the Company amounted to NT$1,428,956 thousand and NT$443 thousand, respectively. Net accounts receivable accounted for 6% of total assets. Since the loss allowance of account receivables is measured by the expected credit loss for the duration of the account receivables, it is necessary to divide account receivables into groups in the process of measurement and analyze the application of related assumptions, including appropriate aging intervals and their respective loss rate. As the measurement of expected credit loss involves making judgment, analysis and estimates, and the result will affect the net account receivable, we therefore determined this a key audit matter.

Our audit procedures included, but not limited to, analyzing the appropriateness of the grouping of account receivables and confirming whether customers with significantly different credit loss types are grouped by similar risk characteristics. The Company is tested by provision matrix, including evaluating the appropriateness of the aging intervals and the accuracy of the basic data by reviewing the original certificates; testing the related statistics information of loss rate based on the rolling rate within one year, including the average loss rate and standard deviation; considering the reasonableness of the forward-looking information which takes into account loss rate, such as economic growth rate and unemployment rate; assessing whether such forward-looking information affected the loss rate. We also assessed the adequacy of disclosures of financial assets. Please refer to Notes 5 and 6 to the parent company only financial statements.

A member firm of Ernst & Young Global Limited

EY安永

Other Matter– Making Reference to the Audits of Other Auditors

As explained in Note 6(6), we did not audit the financial statements of certain subsidiaries, associates and joint ventures accounted for under the equity method. Those financial statements were audited by the other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the reports of the other auditors. These subsidiaries, associates and joint ventures under equity method amounted to NT$1,051,457 thousand and NT$2,562,997 thousand, representing 4% and 11% of the total assets as of 31 December 2025 and 2024, respectively. The related shares of profits from the subsidiaries, associates and joint ventures under the equity method amounted to NT$171,685 thousand and NT$1,136,447 thousand, representing 5% and 27% of the income before tax for the years ended 31 December 2025 and 2024, respectively, and the related shares of other comprehensive income (loss) from the subsidiaries, associates and joint ventures under the equity method amounted to NT$(65,816) thousand and NT$105,579 thousand, representing 51% and 39% of the comprehensive income (loss) for the years ended 31 December 2025 and 2024, respectively.

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 requirements of 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 ability to continue as a going concern of the Company, 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 and risk committee, are responsible for overseeing the financial reporting process of the Company.

A member firm of Ernst & Young Global Limited

EY安永

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:

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company. 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.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

A member firm of Ernst & Young Global Limited

EY安永

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2025 parent company only financial statements 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.

/s/Lo,Wen Chen

/s/Chen, Ming Hung

Ernst & Young, Taiwan

5 March 2026

Notice to Readers

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

Accordingly, the accompanying parent company only financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

A member firm of Ernst & Young Global Limited

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
SINBON ELECTRONICS CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
31 December 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

Assets	Notes	As of 31 December
		2025	2024
Current assets
Cash and cash equivalents	4,6(1)	$1,897,781	$1,858,720
Financial assets at fair value through profit or loss, current	4,6(2)	543,758	563,648
Financial assets measured at amortized cost, current	4	-	1,370
Contract assets, current	4,6(13)	437,856	310,307
Notes receivable, net	4	7,808	25,042
Accounts receivable, net	4,6(3)	1,308,913	1,391,372
Accounts receivable-related parties, net	4,6(3),7	119,600	195,427
Other receivables	7,8	202,379	236,431
Inventories	4,6(4)	2,657,092	2,348,248
Other current assets		131,328	86,312
Total current assets		7,306,515	7,016,877
Non-current assets
Financial assets at fair value through other comprehensive income, non-current	4,6(5)	320,352	338,731
Investments accounted for using the equity method	4,6(6)	14,695,292	14,248,965
Property, plant and equipment	4,6(7),7	775,736	813,714
Right-of-use assets	4,6(15),7	357,646	180,018
Other intangible assets	4	48,507	41,076
Deferred tax assets	4,6(19)	48,347	40,601
Other non-current assets	4,6(8)	90,562	139,131
Total non-current assets		16,336,442	15,802,236

Total assets
$23,642,957 $22,819,113

(continued)

Liabilities and Equity	Notes	As of 31 December
		2025	2024
Current liabilities
Short-term loans	4,6(9)	$2,550,000	$1,700,000
Contract liabilities, current	4,6(13),7	1,393,090	1,639,982
Notes payable		5,021	198
Accounts payable		1,010,211	849,913
Accounts payable-related parties	7	737,270	628,752
Other payables	7	558,343	768,606
Current tax liabilities	4	281,198	295,233
Lease liabilities, current	4,6(15),7	62,344	37,148
Bonds payable, current portion	4,6(10)	-	803,321
Other current liabilities		66,454	46,974
Total current liabilities		6,663,931	6,770,127
Non-current liabilities
Deferred tax liabilities	4,6(19)	462,743	599,452
Lease liabilities, non-current	4,6(15),7	297,630	144,708
Net defined benefit obligation, non-current	4,6(11)	11,378	23,902
Other non-current liabilities-others		353	353
Total non-current liabilities		772,104	768,415
Total liabilities		7,436,035	7,538,542
Equity
Capital
Common stock	6(12)	2,400,690	2,400,690
Additional Paid-in Capital	6(12)	3,470,929	3,079,453
Retained earnings
Legal reserve		2,697,550	2,344,142
Special reserve		134,446	401,040
Unappropriated earnings		7,770,787	7,188,336
Subtotal		10,602,783	9,933,518
Other components of equity
Exchange differences on translation of foreign operations		(233,911)	(171,945)
Unrealized gains or losses measured at fair value		(33,569)	38,855
through other comprehensive income
Subtotal	4	(267,480)	(133,090)
Total equity		16,206,922	15,280,571
Total liabilities and equity		$23,642,957	$22,819,113

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

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

SINBON ELECTRONICS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the years ended 31 December 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)

		For the years ended 31 December
	Notes	2025	2024
Operating revenues	4,6(13),7	$8,850,098	$8,822,729
Operating costs	6(4.16),7	(6,561,357)	(6,413,501)
Gross profit-net		2,288,741	2,409,228
Operating expenses	6(16),7
Sales and marketing expenses		(447,839)	(493,322)
General and administrative expenses		(536,874)	(746,948)
Research and development expenses		(381,348)	(371,902)
Subtotal		(1,366,061)	(1,612,172)
Operating income		922,680	797,056
Non-operating income and expenses	6(17),7
Interest income		21,119	29,036
Other income		286,150	354,107
Other gains and losses		42,879	338,392
Finance costs		(51,052)	(32,713)
Share of profit or loss of subsidiaries, associates and joint ventures in equity method	4,6(6)	2,449,883	2,690,502
Subtotal		2,748,979	3,379,324
Income from continuing operations before income tax		3,671,659	4,176,380
Income tax expense	4,6(19)	(546,662)	(647,380)
Net income		3,124,997	3,529,000
Other comprehensive income (loss)	6(18)
Items that will not be reclassified subsequently to profit or loss
Remeasurements of defined benefit plans		6,219	5,646
Unrealized losses on equity instruments measured at fair value through other comprehensive income		(10,131)	(46,386)
Share of other comprehensive loss of subsidiaries, associates and joint ventures which will not be reclassified subsequently to profit or loss		(62,293)	(41,750)
Income tax related to items that will not be reclassified subsequently		(1,244)	(1,129)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations		(65,710)	422,308
Share of other comprehensive (loss) income of subsidiaries, associates and joint ventures which may be reclassified subsequently to profit or loss		(9,398)	18,459
Income tax related to items that may be reclassified subsequently		13,142	(84,122)
Total other comprehensive (loss) income , net of tax		(129,415)	273,026
Total comprehensive income		$2,995,582	$3,802,026
Earnings per share (NTD)
Earnings per share-basic	4,6(20)	$13.02	$14.70
Earnings per share-diluted		$13.01	$14.55

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

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
SINBON ELECTRONICS CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
For the years ended 31 December 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

		Retained earnings			Other components of equity
	Common stock	Additional Paid-in Capital	Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of Foreign Operations	Unrealized Gains (Losses) on Equity Instruments Measured at Fair Value Through Other Comprehensive Income
Balance as of 1 January 2024	$2,400,332	$3,064,782	$2,015,862	$270,696	$6,417,199	$(528,593)	$127,553
Appropriation and distribution of 2023 retained earnings
Legal reserve			328,280		(328,280)		-
Special reserve				130,344	(130,344)		-
Cash dividends					(2,304,318)		(2,304,318)
Net income in 2024					3,529,000		3,529,000
Other comprehensive income (loss), net of tax in 2024					4,517	356,645	(88,136)
Total comprehensive income (loss)	-	-	-	-	3,533,517	356,645	(88,136)
Conversion of convertible bonds	358	9,406					9,764
Disposal of investments accounted for using the equity method		(47)			56	3	(56)
Changes in ownership equity of subsidiary		5,312					5,312
Disposal of investments in equity instruments designated at fair value through other comprehensive income					506		(506)
Balance as of 31 December 2024	$2,400,690	$3,079,453	$2,344,142	$401,040	$7,188,336	$(171,945)	$38,855
Balance as of 1 January 2025	$2,400,690	$3,079,453	$2,344,142	$401,040	$7,188,336	$(171,945)	$38,855
Appropriation and distribution of 2024 retained earnings
Legal reserve			353,408		(353,408)		-
Cash dividends					(2,460,707)		(2,460,707)
Special reserve				(266,594)	266,594		-
Other changes in additional paid-in capital
Change in equity of associates and joint ventures accounted for using equity method		657					657
Net income in 2025					3,124,997		3,124,997
Other comprehensive income (loss), net of tax in 2025					4,975	(61,966)	(72,424)
Total comprehensive income (loss)	-	-	-	-	3,129,972	(61,966)	(72,424)
Difference between consideration and carrying amount of subsidiaries acquired or disposed		354,009					354,009
Changes in ownership equity of subsidiary		36,810					36,810
Balance as of 31 December 2025	$2,400,690	$3,470,929	$2,697,550	$134,446	$7,770,787	$(233,911)	$(33,569)

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

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
SINBON ELECTRONICS CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
For the years ended 31 December 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

	For the years ended 31 December
	2025	2024
Cash flows from operating activities:
Net income before tax	$3,671,659	$4,176,380
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	157,374	159,705
Amortization	23,279	9,711
Loss (Gains) of financial assets/liabilities at fair value through profit or loss	50,287	(269,635)
Interest expense	51,052	32,713
Interest income	(21,119)	(29,036)
Dividend income	(28,863)	(80,141)
Share of profit of subsidiaries, associates and joint ventures	(2,449,883)	(2,690,502)
Gains on disposal of property, plant and equipment	-	(123)
Gains on disposal of investments	-	(18,056)
Changes in operating assets and liabilities:
(Increase) decrease in contract assets	(127,549)	22,634
Decrease (increase) in notes receivable	17,234	(8,912)
Decrease (increase) in accounts receivable	158,286	(244,774)
Decrease (increase) in other receivables	45,088	(84,556)
(Increase) decrease in inventories, net	(308,844)	349,283
(Increase) decrease in other current assets	(45,016)	79,376
Decrease in contract liabilities	(246,892)	(564,581)
Increase in notes payable	4,823	175
Increase in accounts payable	268,816	409,623
(Decrease) increase in other payables	(210,308)	12,694
Increase (decrease) in other current liabilities	19,480	(61,972)
Decrease in net defined benefit liability	(6,305)	(10,982)
Cash generated from operations	1,022,599	1,189,024
Interest received	21,111	29,033
Dividends received	28,863	80,141
Interest paid	(37,628)	(17,566)
Income taxes paid	(693,254)	(617,299)
Net cash provided by operating activities	341,691	663,333

(Continued)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

SINBON ELECTRONICS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS(Continued)

For the years ended 31 December 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the years ended 31 December
	2025	2024
Cash flows from investing activities:
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	8,190	-
Acquisition of financial assets at fair value through profit or loss, current	(30,397)	-
Acquisition of investments accounted for using the equity method	(343,295)	(522,809)
Proceeds from disposal of investments accounted for using the equity method	464,203	25,104
Acquisition of property, plant and equipment	(61,750)	(88,174)
Proceeds from disposal of property, plant and equipment	-	198
Acquisition of intangible assets	(27,839)	(42,787)
Increase in other receivables	(9,600)	-
Decrease (increase) in other non-current assets	33,038	(135,326)
Dividends received from investee company	2,139,164	1,850,016
Net cash provided by investing activities	2,171,714	1,086,222
Cash flows from financing activities:
Increase in short-term loans	850,000	720,000
Repayment of corporate bonds	(816,700)	-
Decrease in deposits received	-	(3,161)
Cash payments for the principal portion of lease liability	(44,476)	(55,447)
Cash dividends paid	(2,460,707)	(2,304,318)
Net cash used in financing activities	(2,471,883)	(1,642,926)
Effect of exchange rate changes on cash and cash equivalents	(2,461)	(3,936)
Net increase in cash and cash equivalents	39,061	102,693
Cash and cash equivalents at beginning of period	1,858,720	1,756,027
Cash and cash equivalents at end of period	$1,897,781	$1,858,720

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

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS
For the Years Ended 31 December 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

History and organization

SINBON Electronics Co., Ltd. (the “Company”) was incorporated in Republic of China (R.O.C) in December 1989. The main activities of the Company include manufacturing and selling computer peripherals, connectors, wires and other parts. The shares of the Company commenced trading on Taiwan’s Over-the-Counter Market in May 2001 and were listed on the Taiwan Stock Exchange in August 2002.

Date and procedures of authorization of financial statements for issue

The parent company only financial statements of the Company for the years ended 31 December 2025 and 2024 were authorized for issue by the Board of Directors on 5 March 2026.

Newly issued or revised standards and interpretations

(1) Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after 1 January 2025. The adoption of these new standards and amendments had no material impact on the Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which have been endorsed by FSC, and not yet adopted by the Company as at the date when the Company’s financial statements were authorized for issue, are listed below:

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 17 “Insurance Contracts”	January 1, 2023
b	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	January 1, 2026
c	Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026
d	Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7	January 1, 2026

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(a) IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after 1 January 2023.

(b) Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7

The amendments include:

(1) Clarify that a financial liability is derecognised on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.

(2) Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.

(3) Clarify the treatment of non-recourse assets and contractually linked instruments.

(4) Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(1) Amendments to IFRS 1
(2) Amendments to IFRS 7
(3) Amendments to Guidance on implementing IFRS 7
(4) Amendments to IFRS 9
(5) Amendments to IFRS 10
(6) Amendments to IAS 7

(d) Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7

The amendments include:

(1) Clarify the application of the ‘own-use’ requirements.
(2) Permit hedge accounting if these contracts are used as hedging instruments.
(3) Add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows.

The abovementioned standards and amendments are applicable for annual periods beginning on or after 1 January 2026 and have no material impact on the Company.

(3) Standards or interpretations issued, revised or amended, by IASB which have not been endorsed by FSC, and not yet adopted by the Company as at the date when the Company’s financial statements were authorized for issue, are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 18 “Presentation and Disclosure in Financial Statements”	1 January 2027 (Note)
c	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	1 January 2027
d	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	1 January 2027

Note: On 25 September 2025, the FSC announced in a press release that Taiwan will adopt IFRS 18 in 2028.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(a) IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

(b) IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as below:

(1) Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

(3) Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

This new standard and its amendments permits subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

(d) Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)

The amendments include:

(1) Clarify that when the entity’s functional currency is that of a non-hyperinflationary economy but its presentation currency is the currency of a hyperinflationary economy, the entity shall translate its results and financial position using the closing rate at the date of the most recent statement of financial position.

(2) In the above circumstances, when the presentation currency ceases to be hyperinflationary economy, the entity shall not retranslate amounts that arose before the beginning of the reporting period.

(3) When the entity’s functional currency and presentation currency are the currency of a hyperinflationary economy, the entity shall apply the relevant accounting treatment in accordance with paragraph 34 of IAS 29.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the new or amended standards and interpretations listed under (b), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

Summary of material accounting policies

(1) Statement of Compliance

The parent company only financial statements of the Company for the years ended 31 December 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”).

(2) Basis of Preparation

The Company prepared the parent company only financial statements in accordance with the Regulations. According to the Article 21 of the Regulation, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent company only financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Foreign Currency Transactions

The Company’s parent company only financial statements are presented in its functional currency, New Taiwan Dollars (NT$). Items included in the financial statements are measured using that functional currency.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Transactions in foreign currencies are initially recorded by the Company entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

(a) Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

(b) Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

(c) Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Translation of financial statements in foreign currency

Each foreign operation in the Company determines its own functional currency and remeasures its financial statements into its functional currency. The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following partial disposals are accounted for as disposals:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(a) when the partial disposal involves the loss of control of a subsidiary that includes a foreign operation; and
(b) when the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or jointly control entity, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(5) Current and non-current distinction

An asset is classified as current when:

(a) The Company expects to realize the asset, or intends to sell or consume it, in normal operating cycle
(b) The Company holds the asset primarily for the purpose of trading
(c) The Company expects to realize the asset within twelve months after the reporting period
(d) The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

(a) The Company expects to settle the liability in its normal operating cycle
(b) The Company holds the liability primarily for the purpose of trading
(c) The liability is due to be settled within twelve months after the reporting period
(d) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(6) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid time deposits (including ones that have maturity within 3 months) or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liabilities.

(a) Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

A. the Company’s business model for managing the financial assets and
B. the contractual cash flow characteristics of the financial asset.

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, accounts receivables financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

A. purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition
B. financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

A. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
B. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

A. A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

B. When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

C. Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(i) Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(ii) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represent a recovery of part of the cost of investment.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

(b) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Company measures expected credit losses of a financial instrument in a way that reflects:

A. an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
B. the time value of money; and
C. reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measured as follows:

A. At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

B. At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

C. For accounts receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

D. For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

A financial asset is derecognized when:

A. The rights to receive cash flows from the asset have expired

B. The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred

C. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

(d) Financial liabilities and equity

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Compound instruments

The Company evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Company assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortized cost before the instrument is converted or settled.

For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortized cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments.

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortized cost at the date of conversion is transferred to equity.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss. A financial liability is classified as held for trading if:

A. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term

B. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or

C. it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument)

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

A. it eliminates or significantly reduces a measurement or recognition inconsistency; or

B. a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the Company is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid or payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

(e) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(8) Derivative instrument

The Company uses derivative instruments to hedge its foreign currency risks and interest rate risks. A derivative is classified in the balance sheet as financial assets or liabilities at fair value through profit or loss except for derivatives that are designated as and effective hedging instruments which are classified as financial assets or liabilities for hedging.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The changes in fair value of derivatives are taken directly to profit or loss, except for the effective portion of hedges, which is recognized in either profit or loss or equity according to types of hedges used.

When the host contracts are either non-financial assets or liabilities, derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not designated at fair value through profit or loss.

(9) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants acts in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(10) Inventories

Inventories are valued at lower of cost and net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

Raw materials - Purchase cost under weighted average cost method

Finished goods and work in progress - Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs under weighted average cost method.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Rendering of services is accounted in accordance with IFRS 15 and not within the scope of inventories.

(11) Investments accounted for using the equity method

According to Article 21 of the Regulation, the Company's investment in subsidiaries was presented as "Investments accounted for using equity method" and made necessary adjustments. The profit or loss during the period and other comprehensive income presented in the parent company only financial statements shall be the same as the allocations of profit or loss during the period and of other comprehensive income attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis, and the shareholders' equity presented in the parent company only financial statements shall be the same as the equity attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis. The adjustment was considered the difference between investment in subsidiaries in consolidated financial statements according to IFRS 10 "Consolidated financial statements" and application of IFRS to different reporting entities, debit/credit "Investment accounted for using equity method", "Share of profit or loss of subsidiaries, associates and joint ventures" or "Share of other comprehensive profit or loss of subsidiaries, associates and joint ventures" etc.

The Company's investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Under the equity method, the investment in the associate or an investment in a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate or joint venture. After the interest in the associate or joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. Unrealized gains and losses resulting from transactions between the Company and the associate or joint venture are eliminated to the extent of the Company’s related interest in the associate or joint venture.

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Company’s percentage of ownership interests in the associate or joint venture, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture on a pro-rata basis.

When the associate or joint venture issues new stock, and the Company’s interest in an associate is reduced or increased as the Company fails to acquire shares newly issued in the associate or joint venture proportionately to its original ownership interest, the increase or decrease in the interest in the associate or joint venture is recognized in additional paid-in capital and investment accounted for using the equity method. When the interest in the associate or joint venture is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Company disposes of the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired adopting IAS 28 Investments in Associates and Joint Ventures. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(a) Its share of the present value of the estimated future cash flows expected to be generated by the associate or joint venture, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or

(b) The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate or an investment in a joint venture is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate or joint venture, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(12) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. 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 is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Items	Useful Lives
Buildings	5~50 years
Machinery and equipment	3~15 years
Transportation equipment	5~10 years
Office equipment	3~10 years
Other equipment	2~15 years
Leasehold improvements	The shorter of leasehold years or useful lives

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate, and are treated as changes in accounting estimates.

(13) Leases

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

(a) the right to obtain substantially all of the economic benefits from use of the identified asset; and
(b) the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximizing the use of observable information.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

(a) fixed payments (including in-substance fixed payments), less any lease incentives receivable;
(b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(c) amounts expected to be payable by the lessee under residual value guarantees;
(d) the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
(e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortized cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

(a) the amount of the initial measurement of the lease liability;
(b) any lease payments made at or before the commencement date, less any lease incentives received;
(c) any initial direct costs incurred by the lessee; and
(d) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of low-value assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(14) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized.

A summary of the policies applied to the Company's intangible assets is as follows:

	Computer software
Useful lives	1~15 years
Amortization method used	Amortized on a straight-line basis over the estimated useful life
Internally generated or acquired	Acquired

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(15) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(16) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The liability to pay a levy is recognized progressively if the obligating event occurs over a period of time.

Provision for decommissioning, restoration and rehabilitation costs

The provision for decommissioning, restoration and rehabilitation costs arose on construction of a property, plant and equipment. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of that particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

Provision for warranties

A provision is recognized for expected warranty claims on products sold, based on past experience, management's judgment and other known factors.

(17) Revenue recognition

The Company's revenue arising from contracts with customers primarily includes sale of goods, rendering of services, and construction revenues. The accounting policies are explained as follows:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Sale of goods

The Company manufactures and sells goods. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers (i.e. when the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from the goods). Revenue is recognized based on the consideration stated in the contract.

The Company provides its customer with a warranty with the purchase of the products. The warranty provides assurance that the product will operate as expected by the customers. And the warranty is accounted in accordance with IAS 37.

The credit period of the Company’s sale of goods is from 60 to 120 days, while the term for wind energy sales is receiving three-month term acceptance after a period of three-month from delivery due to industry characteristics. For most of the contracts, when the Company transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as accounts receivables. The Company usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. For some of the contracts, the Company has transferred the goods to customers but does not has a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. Besides, in accordance with IFRS 9, the Company measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses.

Rendering of services

The Company provides maintenance services for the sale of construction for solar photovoltaic power generation system. Such services are separately priced or negotiated, and provided based on contract periods.

Most of the contractual considerations of the Company are collected evenly throughout the contract periods. When the Company has performed the services to customers but does not has a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. However, for some rendering of services contracts, part of the consideration was received from customers upon signing the contract, and the Company has the obligation to provide the services subsequently; accordingly, these amounts are recognized as contract liabilities.

The period between the transfers of contract liabilities to revenue is usually within one year, thus, no significant financing component has arisen.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Construction revenues

Contract revenue is recognized within the scope that is likely to generate revenue and can be measured reliably, including the original amount of the contract signed, plus any changes related to the contract, claims for compensation and incentive payments, etc. When the construction contract meets the following criteria, the entity recognizes revenue over time. The customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs; the entity's performance creates or enhances an asset that the customer controls as the asset is created; or the entity's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. Contract assets are recognized when the service has been transferred to the customer but the right to unconditionally receive the consideration has not yet been granted. However, there are some contracts, because part of the consideration is collected from the customer when the contract is signed, and the company assumes the obligation to provide labor services in the future, so it is recognized as a contract liability.

Depending on the nature of the contract, the degree of completion is calculated as the proportion of contract costs incurred to date on completion of work to the estimated total contract costs. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized only to the extent of expected cost recovery and expected contract losses are recognized immediately in profit or loss.

(18) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(19) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee's name in the specific bank account and hence, not associated with the Company. Therefore fund assets are not included in the Company's parent only financial statements.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

(a) the date of the plan amendment or curtailment, and
(b) the date that the Company recognizes restructuring-related costs or termination benefit.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(20) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders' meeting.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

i. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.

ii. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

i. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.

ii. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12), information about deferred tax assets and liabilities related to Pillar Two income tax will neither be recognized nor be disclosed.

Significant accounting judgments, estimates and assumptions

The preparation of the parent company only financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(1) Fair value of financial instruments

Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including the income approach (for example the discounted cash flow model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Pension benefits

The cost of post-employment benefit and the present value of the pension obligation under defined benefit pension plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Please refer to Note 6 for more details.

(3) Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Group company's domicile.

Deferred tax assets are recognized for all carry forward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

(4) Trades receivables–estimation of impairment loss

The Company estimates the impairment loss of trades receivables at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that expects to receive (evaluate forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Where the actual future cash flows are lower than expected, a material impairment loss may arise. Please refer to Note 6 for more details.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(5) Inventories

Estimates of net realizable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices have declined. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Note 6 for more details.

Contents of significant accounts

(1) Cash and cash equivalents

	As of 31 December
	2025	2024
Cash on hand and petty cash	$712	$485
Bank deposits	1,897,069	1,858,235
Total	$1,897,781	$1,858,720

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

	As of 31 December
	2025	2024
Financial assets mandatorily at fair value through profit or loss:
Stocks	$512,320	$563,648
Corporate bonds	31,438	-
Total	$543,758	$563,648
Current	$543,758	$563,648
Non-current	-	-
Total	$543,758	$563,648

Financial assets at fair value through profit or loss were not pledged.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(3) Accounts receivables and accounts receivable - related parties

	As of 31 December
	2025	2024
Accounts receivables	$1,309,356	$1,392,538
Less: loss allowance	(443)	(1,166)
Subtotal	1,308,913	1,391,372
Accounts receivables from related parties	119,600	195,427
Total	$1,428,513	$1,586,799

Accounts receivables were not pledged.

Accounts receivables are generally on 60-120 day terms. The total carrying amount are NT$1,428,956 thousand and NT$1,587,965 thousand as of 31 December 2025 and 2024. Please refer to Note 6(14) for more details on loss allowance of accounts receivables for the years ended 31 December 2025 and 2024. Please refer to Note 12 for details on credit risk management.

(4) Inventories

	As of 31 December
	2025	2024
Raw materials	$1,039,923	$1,007,743
Work in progress	244,631	201,359
Finished goods	1,109,921	941,049
Merchandise	262,617	198,097
Total	$2,657,092	$2,348,248

The cost of inventories recognized in cost of goods sold for the years ended 31 December 2025 and 2024 were NT$6,420,472 thousand and NT$6,294,630 thousand, respectively. (Gain from price recovery) the price reduction of inventories related to cost of goods sold were NT$(18,655) thousand and NT$37,829 thousand.

Gain from price recovery of inventories was due to the sale of obsolete products and the net realized value recovery for the years ended 31 December 2025.

Inventories were not pledged.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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

	As of 31 December
	2025	2024
Equity instrument investments measured at fair value through other comprehensive income, non-current
Unlisted companies' stocks	$320,352	$338,731

On 24 July 2024, the paid-in capital returned from the liquidation of Top Taiwan VII Venture Capital Co., Ltd. amounted to NT$842 thousand, which is recognized as other receivables.

On 30 June 2025, the paid-in capital returned from the liquidation of Bandrich, Inc. amounted to NT$58 thousand, which is recognized as other receivables.

On 26 June 2025, the paid-in capital returned from capital reduction of Top Taiwan Venture Capital Co., Ltd. amounted to NT$8,190 thousand.

Financial assets at fair value through other comprehensive income were not pledged.

The Company's dividend income related to equity instrument investments measured at fair value through other comprehensive income for the years ended 31 December 2025 and 2024 are as follows:

	For the years ended 31 December
	2025	2024
Related to investments held at the end of the reporting period	$19,105	$72,118
Related to investments derecognized during the period	-	1,021
Dividends recognized during the period	$19,105	$73,139

(6) Investments accounted for using the equity method

The following table lists the investments accounted for using the equity method of the Company:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Investees	As of 31 December
	2025		2024
	Amount	%	Amount	%
Investments in subsidiaries:
SINBON International Enterprise Co., Ltd. (SB BVI)	$8,470,531	100.00%	$7,952,066	100.00%
Beijing SINBON TongAn Energy Co.,Ltd. (BJSB TongAn)	2,461,117	99.92%	2,316,039	99.92%
Hong Kong SINBON Electronics Co., Ltd. (HKSB)	976,771	100.00%	1,461,161	100.00%
Kwan-Ze Corporation Ltd. (Kwan-Ze)	804,845	100.00%	803,193	100.00%
T-CONN Precision Co., Ltd. (T-CONN)	137,379	56.15%	193,494	56.15%
SINBON USA L.L.C. (SINBON USA)	213,857	100.00%	228,646	100.00%
SINBON Europe GmbH (SB Europe)	14,551	100.00%	11,738	100.00%
Radbon Electronics Co., Ltd. (Radbon)	794,106	83.20%	662,251	100.00%
SINBON Hungary Kft. (SB Hungary)	89,136	100.00%	77,316	100.00%
SINTOP Energy Management Co., Ltd. (SINTOP)	13,008	53.57%	12,437	100.00%
SINBON Electronics Mexico, S. DE R.L. DE C.V. (SB Mexico)	560,987	99.00%	372,301	99.00%
Subtotal	14,536,288		14,090,642
Investments in associates:
Argosy Research Inc.	159,004	3.37%	158,323	3.37%
Total	$14,695,292		$14,248,965

On 25 June 2025, 26 August 2024 and 25 March 2024, the Company invested additional NT$111,982 thousand, NT$117,579 thousand, and NT$79,975 thousand, respectively, in SINBON USA L.L.C.

On 15 August 2025 and 10 May 2024, in order to increase working capital of SINBON Hungary Kft., the Company invested additional NT$34,516 thousand and NT$34,993 thousand, respectively, in SINBON Hungary Kft.

On 10 July 2025, 18 December 2024 and 22 April 2024, the Company invested additional NT$196,797 thousand, NT$160,905 thousand, and NT$129,357 thousand, respectively, in SINBON Electronics Mexico, S. DE R.L. DE C.V.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For the year ended 31 December 2024, the Company disposed of 0.16% interest in Argosy Research Inc. The cash consideration amounted to NT$25,104 thousand and the Company recognized gain on disposal of investment in the amount of NT$18,056 thousand. The cumulative gain of disposal amounting to NT$56 thousand was transferred from other components of equity to retained earnings and paid-in capital and exchange differences on translation of foreign operations in the amount of NT$47 thousand and NT$(3) thousand was transferred to the profit and loss according to the disposal ratio.

In the first quarter of 2025, Radbon Electronics Co., Ltd., increased its capital through the conversion of employee compensation into equity. As a result, the Company's ownership interest in Radbon Electronics Co., Ltd. decreased from 100.00% to 95.09%, and an additional paid-in capital of NT$36,810 thousand was recognized.

To comply with the shareholding dispersion requirements for Radbon Electronics Co., Ltd. ("Radbon Electronics") to apply for listing on the emerging market, the Company's Board of Directors approved the disposal of a portion of the Company's shareholdings in Radbon Electronics on 4 September 2025. The Company sold a total of 4,850 thousand shares at NT$96 per share. After the completion of the share disposal, the Company's shareholding in Radbon Electronics decreased from 95.09% to 83.20%. Since the Company still maintains control over Radbon Electronics, the difference between the disposal proceeds and the carrying amount of the equity interest disposed, amounting to NT$354,009 thousand, was recognized in capital surplus in accordance with the accounting standards.

On 30 July 2025, Argosy Research Inc. transferred 133 thousand treasury shares to its employees, and capital surplus of NT$657 thousand was recognized.

(1) For the years ended 31 December 2025 and 2024, the Company recognized share of profit or loss of subsidiaries and associates and exchange differences on translation of foreign operations accounted for using equity method, and the details are as follows:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For the years ended 31 December

	2025		2024
Investees	Investment income (loss)	Exchange differences on translation of foreign operations	Investment income (loss)	Exchange differences on translation of foreign operations
Investments in subsidiaries:
SINBON International Enterprise Co., Ltd. (SB BVI)	$1,464,600	$6,498	$1,256,204	$259,519
Beijing SINBON TongAn Renewable Energy Co., Ltd.(SB TongAn)	309,390	88	277,521	74,674
Hong Kong SINBON Electronics Co., Ltd. (HKSB)	503,190	(126,215)	951,737	121,511
Kwan-Ze Corporation Ltd. (Kwan-Ze)	188,995	(6,189)	176,085	10,042
SINBON USA L.L.C. (SINBON USA)	(123,333)	(3,097)	(159,428)	14,290
Radbon Electronics Co., Ltd. (Radbon)	205,239	-	215,425	-
T-CONN Precision Co., Ltd. (T-CONN)	(54,171)	(1,944)	(15,883)	6,240
SINBON Europe GmbH (SB Europe)	1,774	1,039	2,503	(10)
SINBON Hungary Kft. (SB Hungary)	(20,677)	(2,018)	(52,455)	975
SINTOP Energy Management Co., Ltd. (SINTOP)	4,951	-	4,866	-
SINBON Electronics Mexico, S. DE R.L. DE C.V. (SB Mexico)	(68,546)	60,435	(545)	(44,737)
Subtotal	2,411,412	(71,403)	2,656,030	442,504
Investments in associates:
Argosy Research Inc.	38,471	(1,264)	34,472	2,177
Total	$2,449,883	$(72,667)	$2,690,502	$444,681

(2) Investments in subsidiaries

Investing subsidiaries was expressed as "Investments accounted for using the equity method" in the parent company only financial statements, and was made the adjustment which was necessary.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(3) Investments in associates

The Company’s investments in Argosy Research Inc. are not individually material. The aggregate financial information of the Company’s share of its associates is as follows:

	For the years ended 31 December
	2025	2024
Profit from continuing operations	$38,471	$34,472
Other comprehensive income (post-tax)	(11,176)	(7,416)
Total comprehensive income	$27,295	$27,056

The associates had no contingent liabilities or capital commitments and pledged as of 31 December 2025 and 2024.

Fair value of the investment in the associate when there is a quoted market price for the investment:

Argosy Research Inc. is a listed entity on the Taipei Exchange (TPEx). The fair value of the investment in Argosy Research Inc. was NT$482,183 thousand and NT$474,602 thousand as of 31 December 2025 and 2024.

T-CONN Precision Co., Ltd. is a listed entity on the Taipei Exchange (TPEx). The fair value of the investment in T-CONN Precision Co., Ltd. was NT$620,769 thousand and NT$822,827 thousand as of 31 December 2025 and 2024.

Our audit, insofar as it related to the investments accounted for using the equity method amounting to NT$1,051,457 thousand and NT$2,562,997 thousand as of 31 December 2025 and 2024; the related shares of investment income from the associates and joint ventures amounted to NT$171,685 thousand and NT$1,136,447 thousand for the years ended 31 December 2025 and 2024, respectively; and the related shares of other comprehensive income from the associates and joint ventures amounted to NT$(65,816) thousand and NT$105,579 thousand for the years ended 31 December 2025 and 2024, respectively; are based solely on the reports of other independent auditors.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(7) Property, plant and equipment

	Land	Buildings	Machinery and equipment	Office equipment	Transportation equipment	Other equipment	Leasehold improvements	Construction in progress and equipment pending examination	Total
Cost:
As of 1 January 2025	$203,245	$640,836	$268,576	$74,015	$1,603	$66,434	$103,999	$46,900	$1,405,608
Additions	-	6,534	14,680	5,270	-	8,364	-	26,902	61,750
Disposals	-	(1,999)	(1,452)	(800)	-	(194)	(1,357)	-	(5,802)
Other changes	34,177	33,131	6,819	4,900	-	633	-	(67,000)	12,660
As of 31 December 2025	$237,422	$678,502	$288,623	$83,385	$1,603	$75,237	$102,642	$6,802	$1,474,216
As of 1 January 2024	$203,245	$602,089	$248,988	$70,351	$1,603	$53,102	$107,761	$ -	$1,287,139
Additions	-	7,389	16,324	4,128	-	13,433	-	46,900	88,174
Disposals	-	(1,731)	(4,264)	(747)	-	(827)	(554)	-	(8,123)
Other changes	-	33,089	7,528	283	-	726	(3,208)	-	38,418
As of 31 December 2024	$203,245	$640,836	$268,576	$74,015	$1,603	$66,434	$103,999	$46,900	$1,405,608
Depreciation and impairment:
As of 1 January 2025	$ -	$249,994	$213,593	$65,148	$1,267	$31,121	$30,771	$ -	$591,894
Depreciation	-	52,005	29,396	7,969	168	9,852	12,998	-	112,388
Disposals	-	(1,999)	(1,452)	(800)	-	(194)	(1,357)	-	(5,802)
As of 31 December 2025	$ -	$300,000	$241,537	$72,317	$1,435	$40,779	$42,412	$ -	$698,480
As of 1 January 2024	$ -	$210,820	$183,173	$54,393	$989	$24,536	$21,792	$ -	$495,703
Depreciation	-	40,905	34,684	11,427	278	7,412	9,533	-	104,239
Disposals	-	(1,731)	(4,264)	(672)	-	(827)	(554)	-	(8,048)
As of 31 December 2024	$ -	$249,994	$213,593	$65,148	$1,267	$31,121	$30,771	$ -	$591,894
Net carrying amount as of:
31 December 2025	$237,422	$378,502	$47,086	$11,068	$168	$34,458	$60,230	$6,802	$775,736
31 December 2024	$203,245	$390,842	$54,983	$8,867	$336	$35,313	$73,228	$46,900	$813,714

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Property, plant and equipment was not pledged.

There is no capitalization of interest due to purchase of property, plant and equipment.

Components of building that have different useful lives are the main building structure and air conditioning, which are depreciated over 50 years and 25 years, respectively.

(8) Other non-current assets

	As of 31 December
	2025	2024
Long-term receivable-related parties	$56,629	$95,131
Prepayment for equipment	12,088	25,668
Refundable deposits	20,315	13,931
Long-term deferred charges	776	3,647
Other assets	754	754
Total	$90,562	$139,131

Other non-current assets were not pledged.

(9) Short-term loans

	As of 31 December
	2025	2024
Unsecured bank loans	$2,550,000	$1,700,000
	As of 31 December
	2025	2024
Interest rates applied	1.75%~1.85%	1.79%~1.88%

The Company's unused short-term lines of credits amounted to NT$4,672,560 thousand and NT$5,983,720 thousand as of 31 December 2025 and 2024, respectively.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(10) Bonds payable

	As of 31 December
	2025	2024
Liability component
Principal amount	$ -	$816,700
Discounts on bonds payable	-	(13,379)
Subtotal	-	803,321
Less: current portion	-	(803,321)
Net	$ -	$ -
Embedded derivative	$ -	$ -
Equity component	$ -	$74,246

Issuance of convertible bonds:

A. On 12 December 2022, the Company issued the eighth domestic zero coupon unsecured convertible bonds. The terms of the convertible bonds were evaluated to include a liability component, embedded derivatives (a call option and a put option) and an equity component (an option for conversion into issuer's ordinary shares). The terms of the bonds are as follows:

Issue amount: NT$1,000,000 thousand

Period: 12 December 2022 ~ 12 December 2025

Redemption clauses:

a. The Company may redeem the bonds, in whole or in part, after 3 months of the issuance (13 March 2023) and prior to 40 days before the maturity date (2 November 2025), at the principal amount of the bonds with an interest calculated at the rate of 0% per annum (early redemption conversion price) if the closing price of the Company's ordinary shares on the Taiwan Stock Exchange (TWSE) for a period of 30 consecutive trading days, is at least 130% of the conversion price.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

b. The Company may redeem the bonds, in whole or in part, after 3 months of the issuance (13 March 2023) and prior to 40 days before the maturity date (2 November 2025), at the early redemption conversion price if at least 90% in principal amount of the bonds has already been exchanged, redeemed, purchased or cancelled.

c. The Company may redeem the bonds in cash, within 5 trading days after the base date of withdrawing the bonds as stated on the “Withdrawal of Convertible Bonds Notice”, at the par value if the bondholders do not reply to the share affair agency in writing before the base date.

Reversal clauses:

a. The bondholders have the right to require the Company to redeem all or any portion of the bonds, 40 days prior to 2 year anniversary (12 December 2024) of the issuance, at the principal amount of the bonds with an interest calculated at the rate of 0.5% per annum.

Terms of Exchange:

a. Underlying Securities: Common shares of the Company

b. Exchange Period: The bonds are exchangeable at any time on or after 13 March 2023 and prior to 12 December 2025 into common shares of the Company.

c. Exchange Price and Adjustment: The exchange price was originally NT$286.5 per share. The exchange price will be subject to adjustments upon the occurrence of certain events set out in the indenture. As of 31 December 2024, the exchange prices were NT$270.9.

In accordance with IFRS 9, said financial instrument is classified as an embedded derivative so the exercise price of the embedded put option is allocated to the liability component and equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. The difference between the equity component and the book value was recognized in profit or loss. The difference between the liability component and the book value was recognized in “Share premium-warrants”.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The financial (assets) liabilities of the convertible bonds measured at fair value through profit or loss, amounted to NT$0 thousand as of both 31 December 2025 and 2024.

The convertible bonds that had been converted amounted to NT$183,300 thousand as of both 31 December 2025 and 2024.

(11) Post-employment benefits

Defined contribution plan

The Company adopt a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company will make monthly contributions of no less than 6% of the employees’ monthly wages to the employees’ individual pension accounts. The Company have made monthly contributions of 6% of each individual employee’s salaries or wages to employees’ pension accounts.

Pension expenses under the defined contribution plan for the years ended 31 December 2025 and 2024 were NT$43,819 thousand and NT$41,481 thousand, respectively.

Defined benefits plan

The Company adopt a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contribute an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company assess the balance in the designated labor pension fund. If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company will make up the difference in one appropriation before the end of March the following year.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under discretionary accounts, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute NT$7,200 thousand to its defined benefit plan during the 12 months beginning after 31 December 2025.

The weighted average duration of the defined benefits obligation was 7.7 years as of 31 December 2025.

Pension costs recognized in profit or loss are as follows:

	For the years ended 31 December
	2025	2024
Current service costs	$462	$528
Net interest on the net defined benefit liabilities	315	470
Total	$777	$998

Reconciliations of liabilities of the defined benefit obligation and plan assets at fair value are as follows:

	As of
	31 Dec. 2025	31 Dec. 2024	1 Jan.2024
Defined benefit obligation	$102,812	$121,026	$119,050
Plan assets at fair value	(91,369)	(97,041)	(78,417)
Net defined benefit liabilities	11,443	23,985	40,633
Less: current portion	(65)	(83)	(103)
Net defined benefit liabilities, non-current	$11,378	$23,902	$40,530

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Reconciliation of liabilities (assets) of the defined benefit plan are as follows:

	Defined benefit obligation	Plan assets at fair value	Net defined benefit liabilities
As of 1 January 2024	$119,050	$(78,417)	$40,633
Current period service costs	528	-	528
Interest expense (income)	1,488	(1,018)	470
Subtotal	121,066	(79,435)	41,631
Remeasurements of the defined benefit liabilities /assets:
Actuarial gains and losses arising from changes in financial assumptions	(1,776)	-	(1,776)
Experience adjustments	2,515	-	2,515
Remeasurements of the defined benefit assets	-	(6,385)	(6,385)
Subtotal	739	(6,385)	(5,646)
Payments of benefit obligation	(779)	779	-
Contributions by employer	-	(12,000)	(12,000)
As of 31 December 2024	121,026	(97,041)	23,985
Current period service costs	462	-	462
Interest expense (income)	1,815	(1,500)	315
Subtotal	123,303	(98,541)	24,762
Remeasurements of the defined benefit liabilities /assets:
Actuarial gains and losses arising from changes in financial assumptions	748	-	748
Experience adjustments	(600)	-	(600)
Remeasurements of the defined benefit assets	-	(6,367)	(6,367)
Subtotal	148	(6,367)	(6,219)
Payments of benefit obligation	(20,639)	20,639	-
Contributions by employer	-	(7,100)	(7,100)
As of 31 December 2025	$102,812	$(91,369)	$11,443

The principal assumptions used in determining the Company's defined benefit plan are shown below:

	As of 31 December
	2025	2024
Discount rate	1.36%	1.50%
Expected rate of salary increases	3.00%	3.00%

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Sensitivity analysis for significant assumption are shown below:

	For the years ended 31 December
	2025		2024
	Defined benefit obligation increase	Defined benefit obligation decrease	Defined benefit obligation increase	Defined benefit obligation decrease
Discount rate increase by 0.50%	$ -	$2,622	$ -	$3,408
Discount rate decrease by 0.50%	2,765	-	3,601	-
Future salary increase by 1.00%	5,530	-	7,219	-
Future salary decrease by 1.00%	-	5,082	-	6,606

The sensitivity analyses above are based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analyses compared to the previous period.

(12) Equity

(a) Common stock

The Company’s authorized capital was NT$4,500,000 thousand as of 31 December 2025 and 2024. The issued capital was NT$2,400,690 thousand in a total of 240,069 thousand shares. Each share has one voting right and a right to receive dividends.

The investors requested to convert the Company’s convertible bonds into common stocks in the amount of NT$358 thousand in a total of 36 thousand shares from 1 January 2024 to 31 December 2024, and the registration process had completed as of 31 December 2024. The accumulated book value of certificate of entitlement to new shares from convertible bond amounted to NT$0 thousand as of 31 December 2024.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(b) Capital surplus

	As of 31 December
	2025	2024
Additional paid-in capital	$2,790,392	$2,790,392
Treasury share transactions	5,749	5,749
Share of changes in net assets of associates and joint ventures accounted for using the equity method	135,724	135,067
Difference between consideration received and carrying amount of interest in subsidiaries acquired or disposed	406,109	52,100
Increase through changes in ownership interests in subsidiaries	58,004	21,194
Premium from merge	705	705
Share options	-	74,246
Other	74,246	-
Total	$3,470,929	$3,079,453

According to the Company Act, the capital reserve shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

a. Payment of all taxes and dues;
b. Offset prior years' operation losses;
c. Set aside 10% as legal reserve;
d. Set aside or reverse special reserve in accordance with law and regulations;
e. The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders' meeting.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As the Company is undergoing a growth stage, the policy of dividend distribution should reflect its long-term financial planning. The Board of Directors shall make the distribution proposal annually and present it at the Shareholder’s meeting every year. The distribution of shareholders dividend shall be allocated cash dividends to be distributed may not be less than 10% of total dividends to be distributed.

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total authorized capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

When the Company distributing distributable earnings, it shall set aside to special reserve, an amount equal to “other net deductions from shareholders” equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements for the adoption of IFRS, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed from the special reserve.

The FSC on 31 March 2021, the FSC issued Order No. Financial-Supervisory-Securities-Corporate-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders' equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent use, disposal or reclassification of related assets, the Company can reverse the special reserve by the proportion of the special reserve first appropriated and distribute it.

The Company did not reverse any special reserve as a result of use, disposal or reclassification of related assets during the years ended 31 December 2025 and 2024.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Details of the 2025 and 2024 earnings distribution and dividends per share as approved and resolved by the Board of Directors' meeting and shareholders' meeting on 5 March 2026 and 27 May 2025, respectively, are as follows:

	Appropriation of earnings		Dividend per share (NT$)
	2025	2024	2025	2024
Cash dividends	$2,184,628	$2,460,707	$10.00	$10.25
Legal reserve	312,997	353,408
Special reserve	133,034	(266,594)

On 5 March 2026, the distribution of cash dividends from capital surplus amounting to NT$216,062 thousand was approved by the Board of Directors.

Please refer to Note 6(16) for further details on employees' compensation and remuneration to directors.

(13) Operating revenue

	For the years ended 31 December
	2025	2024
Revenue from contracts with customers
Sale of goods	$8,554,996	$8,565,507
Construction revenues	175,043	154,024
Other operating revenues	120,059	103,198
Total	$8,850,098	$8,822,729

Analysis of revenue from contracts with customers for the years ended 31 December 2025 and 2024 are as follows:

(a) Disaggregation of revenue

For the year ended 31 December 2025

	Green Energy	Industrial Application	Medical Health	Automotive& Aviation	Communication	Total
Sale of goods	$68,373	$6,220,685	$253,977	$180,956	$1,831,005	$8,554,996
Construction revenues	175,043	-	-	-	-	175,043
Other operating revenues	44,387	55,467	2,265	1,614	16,326	120,059
Total	$287,803	$6,276,152	$256,242	$182,570	$1,847,331	$8,850,098
Timing of revenue recognition :
At a point in time	$112,760	$6,276,152	$256,242	$182,570	$1,847,331	$8,675,055
Over time	175,043	-	-	-	-	175,043
Total	$287,803	$6,276,152	$256,242	$182,570	$1,847,331	$8,850,098

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For the year ended 31 December 2024

	Green Energy	Industrial Application	Medical Health	Automotive& Aviation	Communication	Total
Sale of goods	$1,128,584	$5,202,139	$227,727	$393,491	$1,613,566	$8,565,507
Construction revenues	154,024	-	-	-	-	154,024
Other operating revenues	51,704	36,020	1,577	2,725	11,172	103,198
Total	$1,334,312	$5,238,159	$229,304	$396,216	$1,624,738	$8,822,729
Timing of revenue recognition :
At a point in time	$1,180,288	$5,238,159	$229,304	$396,216	$1,624,738	$8,668,705
Over time	154,024	-	-	-	-	154,024
Total	$1,334,312	$5,238,159	$229,304	$396,216	$1,624,738	$8,822,729

(b) Contract balances

A. Contract assets - current

	As of
	31 Dec. 2025	31 Dec. 2024	1 Jan. 2024
Construction revenues	$437,856	$310,307	$332,941

For the year ended 31 December 2025, contract assets increased as the contract consideration had not yet been eligible for the right to receive. For the year ended 31 December 2024, contract assets decreased as the contract consideration had been unconditionally charged and transferred to accounts receivables.

B. Contract liabilities - current

	As of
	31 Dec. 2025	31 Dec. 2024	1 Jan. 2024
Sales of goods	$1,090,130	$1,289,528	$1,849,389
Construction revenues	302,960	350,454	355,174
Total	$1,393,090	$1,639,982	$2,204,563

For the year ended 31 December 2025 and 2024, contract liabilities decreased as performance obligations were partially satisfied.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2025, the Company's total transaction price apportioned to unsatisfied performance obligations is NT$2,990,830 thousand. The Company will gradually recognize the revenue with the completion of these projects, which are expected to be completed in the next 5 years.

(d) Assets recognized from costs to fulfil a contract

None.

(14) Expected credit losses

The Company had no expected credit losses for the years ended 31 December 2025 and 31 December 2024.

Please refer to Note 12 for more details on credit risk.

The Company measures the loss allowance of its contract assets and trade receivables (including note receivables, accounts receivables and long-term receivables (which is accounted for as other non-current assets)) at an amount equal to lifetime expected credit losses. The assessment of the Company's loss allowance as of 31 December 2025 and 2024 are as follows:

(a) The historical credit loss experience for contract assets shows that different customer segments do not have significantly different loss patterns. Therefore, the loss allowance of contract assets is measured at an amount equal to lifetime expected credit losses and with no distinction between groups, details are as follow:

	As of 31 December
	2025	2024
Gross carrying amount	$437,856	$310,307
Expected credit loss rates	-%	-%
Loss allowance	-	-
Total	$437,856	$310,307

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(b) The Company considers the grouping of accounts receivables by counterparties' credit rating, by geographical region and by industry sector and its loss allowance is measured by using a provision matrix. Additionally, the operational status and debt-paying ability of customers are considered, and individual assessments are conducted to determine whether additional expected credit losses need to be recognized. Details are as follows:

31 December 2025

	Not yet due (Note)	Overdue					Individual assessment	Total
		<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
Gross carrying amount	$1,343,495	$1,579	$ -	$ -	$12	$443	$147,864	$1,493,393
Loss ratio	-%	-%	-%	-%	-%	30-100%	-	-
Lifetime expected credit losses	-	-	-	-	-	(443)	-	(443)
Carrying amount	$1,343,495	$1,579	$ -	$ -	$12	$ -	$147,864	$1,492,950

31 December 2024

	Not yet due (Note)	Overdue					Individual assessment	Total
		<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
Gross carrying amount	$1,455,131	$1,700	$3,099	$ -	$ -	$1,166	$247,042	$1,708,138
Loss ratio	-%	-%	-%	-%	-%	30-100%	-	-
Lifetime expected credit losses	-	-	-	-	-	(1,166)	-	(1,166)
Carrying amount	$1,455,131	$1,700	$3,099	$ -	$ -	$ -	$247,042	$1,706,972

Note: The Company's note receivables are not overdue.

The movement in the provision for impairment of contract assets, note receivables, accounts receivables and long-term receivables during the years ended 31 December 2025 and 2024 are as follows:

	For the years ended 31 December
	2025	2024
Balance, beginning of year	$1,166	$1,166
Addition/(reversal) for the current period	-	-
Write off	(723)	-
Balance, end of year	$443	$1,166

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(15) Leases

The Company is a lessee.

The Company leases various properties, including real estate such as land, buildings, machinery and equipment, and transportation equipment. The lease terms range from 1 to 19 years.

The Company’s leases effect on the financial position, financial performance and cash flows are as follows:

A. Amounts recognized in the balance sheet

(a) Right-of-use asset

The carrying amount of right-of-use assets

	As of 31 December
	2025	2024
Land	$161,241	$ -
Buildings	182,828	161,131
Machinery and equipment	228	502
Transportation equipment	13,349	18,385
Total	$357,646	$180,018

During the years ended 31 December 2025 and 2024, The Company’s additions to right-of-use assets amounting to NT$223,981 thousand and NT$33,850 thousand, respectively.

(b) Lease liabilities

	As of 31 December
	2025	2024
Lease liability
Current	$62,344	$37,148
Non-Current	297,630	144,708
Total	$359,974	$181,856

Please refer to Note 6(17)(d) for the interest on lease liabilities recognized during the years ended 31 December 2025 and 2024 and refer to Note 12(5) liquidity risk management for the maturity analysis for lease liabilities as of 31 December 2025 and 2024.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

B. Amounts recognized in the statements of comprehensive income

Depreciation charge for right-of-use assets

	For the years ended 31 December
	2025	2024
Land	$1,414	$ -
Buildings	33,455	44,517
Machinery and equipment	274	398
Transportation equipment	9,843	10,551
Total	$44,986	$55,466

C. Income and costs relating to leasing activities

	For the years ended 31 December
	2025	2024
The expenses relating to short-term leases	$34,014	$19,888

D. Cash outflow related to lessee and lease activity

During the years ended 31 December 2025 and 2024, The Company's total cash outflows for leases amounting to NT$79,928 thousand and NT$76,722 thousand, respectively.

(16) Summary statement of employee benefits, depreciation and amortization expenses by function for the years ended 31 December 2025 and 2024:

| Function
Nature | For the years ended 31 December | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 | | | 2024 | | |
| | Operating costs | Operating expenses | Total | Operating costs | Operating expenses | Total |
| Employee benefits expense | | | | | | |
| Salaries | $303,606 | $571,662 | $875,268 | $269,669 | $794,748 | $1,064,417 |
| Labor and health insurance | 40,788 | 60,193 | 100,981 | 34,791 | 57,911 | 92,702 |
| Pension | 13,912 | 30,684 | 44,596 | 12,918 | 29,561 | 42,479 |
| Remuneration to directors | - | 22,000 | 22,000 | - | 26,000 | 26,000 |
| Other employee benefits expense | 31,354 | 33,837 | 65,191 | 29,248 | 37,228 | 66,476 |
| Depreciation | 80,805 | 76,569 | 157,374 | 75,766 | 83,939 | 159,705 |
| Amortization | 163 | 23,116 | 23,279 | 68 | 9,643 | 9,711 |

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2025 and 2024, the number of employees of the Company were 1,354 and 1,295; the number of directors who were not concurrently employees both were 8.

For the years ended 31 December 2025 and 2024, the average of employees benefits expense of the Company were NT$807 thousand and NT$984 thousand, respectively.

For the years ended 31 December 2025 and 2024, the average of employees salaries of the Company were NT$650 thousand and NT$827 thousand, respectively.

The Company's average salary expense adjustment for the year ended 31 December 2025 decreased by 21.40%.

The Company has set up an audit and risk committee to replace the supervisor in accordance with the regulations, so the supervisor's remuneration has not been recognized.

The Company's policy for compensation of directors, managers and employees is as follows:

The remuneration standard of the Company's managers shall be determined by the company's human resources unit in accordance with the relevant provisions of personnel performance evaluation, personal performance and contribution to the company's overall operations, and reference to the market level of the industry. After being reviewed by the Salary and Compensation Committee and approved by the Board of Directors, it will be implemented.

The Company's salary and remuneration policy is planned based on individual abilities and performance differentiation, and considering cost-effectiveness and risk control remuneration resources; and in order to attract, retain and motivate talents, relatively reasonable salary standards are formulated. The overall salary and remuneration package mainly include basic salary, bonuses, employee dividends, and benefits. Remuneration standard, basic salary is based on the market competition situation of the position held by the employee and the company's policy; bonus and employee dividend are paid in conjunction with the achievement of the employee's personal and departmental goals or the company's operating performance; the welfare part is in compliance with the law and regulations. The premise is to be revised at any time according to environmental needs, and the actual needs of employees are the main consideration, and welfare measures that employees can share are designed.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

According to the Articles of Incorporation, 1% to 15% of profit of the current year is distributable as employees' compensation (the proportion allocated to rank-and-file employees shall not be less than 10%) and no higher than 3% of profit of the current year is distributable as remuneration to directors. However, the company's accumulated losses shall have been covered. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees' compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders' meeting. Information on the Board of Directors' resolution regarding the employees' compensation and remuneration to directors can be obtained from the "Market Observation Post System" on the website of the TWSE.

Based on profit of 31 December 2025, the Company estimated the amounts of the employees' compensation and remuneration to directors for the year ended of 31 December 2025 to be 1.02% and 0.59% of profit, respectively. The employees' compensation and remuneration to directors for the year ended of 31 December 2025 amounted to NT$38,000 thousand and NT$22,000 thousand respectively, recognized as employee benefits expense.

A resolution was passed at the Board of Directors meeting held on 5 March 2026 to distribute NT$38,000 thousand and NT$22,000 thousand in cash as employees' compensation and remuneration to directors of 2025, respectively. Differences between the estimated amount and the actual distribution of the employee compensation and remuneration to directors for the year ended 31 December 2025 are recognized in profit or loss of the subsequent year in 2025.

The employees' compensation and remuneration to directors for the year ended of 31 December 2024 amount to NT$43,000 thousand and NT$26,000 thousand, respectively. No material differences exist between the recognized amount and the actual distribution of the employees' compensation and remuneration to directors for the year ended 31 December 2024.

(17) Non-operating income and expenses

(a) Interest income

	For the years ended 31 December
	2025	2024
Bank deposit interest	$21,119	$29,036

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(b) Other income

	For the years ended 31 December
	2025	2024
Dividend income	$28,863	$80,141
Rent income	1,708	9,747
Others	255,579	264,219
Total	$286,150	$354,107

	For the years ended 31 December
	2025	2024
Foreign exchange gains, net	$93,166	$50,578
Gains on disposal of property, plant and equipment	-	123
Gain on disposal of investments	-	18,056
(Losses) gains on financial asset at fair value through profit or loss (Note1)	(50,287)	268,147
Gains on financial liabilities at fair value through profit or loss (Note2)	-	1,488
Total	$42,879	$338,392

Note:
1. Balances were arising from financial assets mandatorily measured at fair value through profit or loss, including valuation adjustment, dividend income, interest income and exchange gains and losses etc.
2. Balances were arising from held for trading financial liabilities, including valuation adjustment, interest expense and exchange gains and losses etc.

(d) Finance costs

	For the years ended 31 December
	2025	2024
Interest on loans from bank	$36,235	$17,353
Interest on bonds payable	13,379	13,973
Interest on lease liabilities	1,438	1,387
Total	$51,052	$32,713

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(18) Components of other comprehensive income

For the year ended 31 December 2025

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans	$6,219	$ -	$6,219	$(1,244)	$4,975
Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income	(10,131)	-	(10,131)	-	(10,131)
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss	(62,293)	-	(62,293)	-	(62,293)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	(65,710)	-	(65,710)	13,142	(52,568)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss	(9,398)	-	(9,398)	-	(9,398)
Total of other comprehensive income	$(141,313)	$ -	$(141,313)	$11,898	$(129,415)

For the year ended 31 December 2024

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans	$5,646	$ -	$5,646	$(1,129)	$4,517
Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income	(46,386)	-	(46,386)	-	(46,386)
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss	(41,750)	-	(41,750)	-	(41,750)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	422,308	-	422,308	(84,122)	338,186
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss	18,459	-	18,459	-	18,459
Total of other comprehensive income	$358,277	$ -	$358,277	$(85,251)	$273,026

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(19) Income tax

The major components of income tax expense are as follows:

Income tax expense recognized in profit or loss

	For the years ended 31 December
	2025	2024
Current income tax expense (income) :
Current income tax charge	$680,866	$591,407
Adjustments in respect of current income tax of prior periods	(1,647)	(4,389)
Deferred tax (income) expense:
Deferred tax expense relating to origination and reversal of temporary differences	(132,557)	60,362
Total income tax expense	$546,662	$647,380

Income tax relating to components of other comprehensive income

	For the years ended 31 December
	2025	2024
Deferred tax (income) expense:
Exchange differences on translation of foreign operations	$(13,142)	$84,122
Remeasurements of defined benefit plans	1,244	1,129
Income tax relating to components of other comprehensive income	$(11,898)	$85,251

A reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

	For the years ended 31 December
	2025	2024
Accounting profit before tax from continuing operations	$3,671,659	$4,176,380
At the Company’s statutory income tax rate	$734,332	$835,276
Tax effect of revenues exempt from taxation	(53,461)	(64,460)
Tax effect of expenses not deductible for tax purposes	2,821	3,267
Tax effect of deferred tax assets/liabilities	(178,447)	(146,307)
Corporate income surtax on undistributed retained earnings	43,643	23,993
Adjustments in respect of deferred income tax of prior periods	109	-
Adjustments in respect of current income tax of prior periods	(1,647)	(4,389)
Other income tax effects arising from tax adjustments	(688)	-
Total income tax expense recognized in profit or loss	$546,662	$647,380

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax assets (liabilities) relate to the following:

For the year ended 31 December 2025

	Balance as of 1 January	Recognized in profit or loss	Recognized in other comprehensive income	Balance as of 31 December
Temporary differences
Exchange differences on translation of foreign operations	$1,112	$ -	$13,142	$14,254
Unrealized foreign exchange gains or losses	(2,594)	(4,239)	-	(6,833)
Loss from price reduction of inventories and slow-moving inventories	17,458	(3,731)	-	13,727
Revaluations of financial assets and liabilities at fair value through profit or loss	(79,764)	10,057	-	(69,707)
Investments accounted for using the equity method	(514,115)	131,175	-	(382,940)
Unrealized intragroup profits and losses	14,929	705	-	15,634
Remeasurements of defined benefit plans	5,620	-	(1,244)	4,376
Net defined benefit liabilities – non-current	981	(1,265)	-	(284)
Loss allowance	501	(145)	-	356
Convertible bonds	(2,979)	-	-	(2,979)
Deferred tax (expense) income		$132,557	$11,898
Net deferred tax assets (liabilities)	$(558,851)			$(414,396)
Reflected in balance sheet as follows:
Deferred tax assets	$40,601			$48,347
Deferred tax liabilities	$599,452			$462,743

For the year ended 31 December 2024

	Balance as of 1 January	Recognized in profit or loss	Recognized in other comprehensive income	Balance as of 31 December
Temporary differences
Exchange differences on translation of foreign operations	$85,234	$ -	$(84,122)	$1,112
Unrealized foreign exchange gains or losses	2,699	(5,293)	-	(2,594)
Loss from price reduction of inventories and slow-moving inventories	9,893	7,565	-	17,458
Revaluations of financial assets and liabilities at fair value through profit or loss	(26,136)	(53,628)	-	(79,764)
Investments accounted for using the equity method	(526,040)	11,925	-	(514,115)
Unrealized intragroup profits and losses	32,889	(17,960)	-	14,929
Remeasurements of defined benefit plans	6,749	-	(1,129)	5,620
Net defined benefit liabilities – non-current	3,181	(2,200)	-	981
Loss allowance	974	(473)	-	501
Convertible bonds	(2,681)	(298)	-	(2,979)
Deferred tax (expense) income		$(60,362)	$(85,251)
Net deferred tax assets (liabilities)	$(413,238)			$(558,851)
Reflected in balance sheet as follows:
Deferred tax assets	$141,619			$40,601
Deferred tax liabilities	$554,857			$599,452

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Unrecognized deferred tax liabilities relating to the investment in subsidiaries

The Company shall recognize the relevant deferred income tax liabilities for the income tax payable that may arise when the undistributed surplus of a foreign subsidiary is remitted back, in accordance with the undistributed surplus expected to be allocated by the future subsidiary.

The assessment of income tax returns

As of 31 December 2025, the Company’s income tax returns through 2023 have been assessed and approved by the tax authority.

Exposure to Pillar Two income taxes

As of December 31, 2025, the Company is not located in tax jurisdictions where Pillar Two Model Rules has been legislated or substantially enacted. Please refer to Note 6(23) for the information that some subsidiaries of the Company are located in tax jurisdictions where Pillar Two Model Rules has been legislated or substantially enacted.

(20) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

| | For the years ended
31 December | |
| --- | --- | --- |
| | 2025 | 2024 |
| (a) Basic earnings per share | | |
| Profit attributable to ordinary equity holders of the Company | $3,124,997 | $3,529,000 |
| Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) | 240,069 | 240,051 |
| Basic earnings per share (NT$) | $13.02 | $14.70 |

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

| | For the years ended
31 December | |
| --- | --- | --- |
| | 2025 | 2024 |
| (b) Diluted earnings per share | | |
| Profit attributable to ordinary equity holders of the Company | $3,124,997 | $3,529,000 |
| Interest expense from convertible bonds | - | 11,179 |
| Profit attributable to ordinary equity holders of the Company after dilution | $3,124,997 | $3,540,179 |
| Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) | 240,069 | 240,051 |
| Effect of dilution: | | |
| Employee compensation stock (in thousands) | 197 | 164 |
| Convertible bonds (in thousands) | - | 3,033 |
| Weighted average number of ordinary shares outstanding after dilution (in thousands) | 240,266 | 243,248 |
| Diluted earnings per share (NT$) | $13.01 | $14.55 |

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and completion of the financial statements.

Related party transactions

Information of the related parties that had transactions with the Company during the financial reporting period is as follows:

Name and nature of relationship of the related parties

Name of the related parties	Nature of relationship
SINBON Ohio LLC	Subsidiary
Hong Kong SINBON Electronics Co., Ltd.	Subsidiary
Tong Cheng SINBON Electronics Co., Ltd.	Subsidiary
Jiangyin SINBON Electronics Co., Ltd.	Subsidiary
Beijing SINBON TongAn Renewable Energy Co., Ltd.	Subsidiary
SINBON USA L.L.C.	Subsidiary

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Name of the related parties	Nature of relationship
Radbon Electronics Co., Ltd.	Subsidiary
T-CONN Precision Co., Ltd.	Subsidiary
SINBON Hungary Kft.	Subsidiary
ENMAGIC Energy Co., Ltd.	Subsidiary
SINCEN Electronics Co., Ltd.	Subsidiary
SINBON Europe GmbH	Subsidiary
Kwan-Ze Corporation Ltd.	Subsidiary
SINBON Technologies Tennessee L.L.C.	Subsidiary
SINTOP Energy Management Co., Ltd.	Subsidiary
Jiangyin SINCEN Electronics Co., Ltd.	Subsidiary
SINBON Electronics Mexico, S. DE R.L. DE C.V.	Subsidiary

Significant transactions with related parties

(1) Sales

	For the years ended 31 December
	2025	2024
Subsidiaries	$96,006	$75,583

The sales price to the above related parties was determined through mutual agreement based on the market rates. The outstanding balance as of 31 December 2025 and 2024 was unsecured, non-interest bearing and must be settled in cash. The receivables from the related parties were not guaranteed.

(2) Purchases

	For the years ended 31 December
	2025	2024
Subsidiaries	$2,506,344	$2,405,880

The purchase price from the above related parties was determined through mutual agreement based on the market rates. The payment terms from the related party suppliers were comparable with third party suppliers.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(3) Accounts receivable-related parties

	As of 31 December
	2025	2024
Subsidiaries	$119,600	$195,427

(4) Long-term receivable-related parties

	As of 31 December
	2025	2024
Subsidiaries	$56,629	$95,131

(5) Other receivables

	As of 31 December
	2025	2024
Subsidiaries	$79,225	$67,352

(6) Accounts payable-related parties

	As of 31 December
	2025	2024
Subsidiaries	$737,270	$628,752

(7) Other payables

	As of 31 December
	2025	2024
Subsidiaries	$45,331	$15,231

(8) Advance Receipts

	As of 31 December
	2025	2024
Subsidiaries	$1,203	$ -

(9) Expenses

	For the years ended 31 December
	2025	2024
Subsidiaries	$74,369	$56,881

(10) Other income

	For the years ended 31 December
	2025	2024
Subsidiaries	$3,496	$4,800

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(11) Leases

(a) Depreciation

	For the years ended 31 December
	2025	2024
Subsidiaries	$ -	$216

(b) Interest expense

	For the years ended 31 December
	2025	2024
Subsidiaries	$ -	$4

	For the years ended 31 December
	2025	2024
Subsidiaries	$1,708	$9,747

The Company leases offices to related parties. The rental price is negotiated with reference to market conditions and paid monthly.

(12) Property transactions

(a) During the year ended 31 December 2025 : None

(b) The details of sales of property, plants and equipment and intangible assets to related parties during the year ended 31 December 2024 are as follows:

	Net book value	Transaction amount	Gain or loss on disposal
Subsidiaries	$75	$83	$8

(13) Key management personnel compensation

	For the years ended 31 December
	2025	2024
Short-term employee benefits	$142,984	$181,572
Post-employment benefits	44,596	42,479
Total	$187,580	$224,051

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Assets pledged as security

The following table lists assets of the Company pledged as security :

| Items | Carring amount
As of 31 December | | Secured liabilities |
| --- | --- | --- | --- |
| | 2025 | 2024 | |
| Other receivables - restricted assets | $1,370 | $ - | Guaranteed note payable |
| Other receivables - restricted assets | 9,600 | - | Lease Liabilities |
| | $10,970 | $ - | |

Significant contingencies and unrecognized contract commitments

(1) The Company provided guarantees for subsidiaries' financing to banks for the year ended 31 December 2025. Please refer to Note 13.1(b).

(2) As of 31 December 2025 and 2024, the Company was issued letters of guarantee by banks in the amount of NT$10,000 thousand both for importing goods,.

(3) Amounts available under unused letters of credit are as follows: (Foreign currency is expressed in thousands)

Currency	As of 31 December
	2025	2024
USD	$300	$300

(4) The Company is applying for subsidies under the Ministry of Economic Affairs' A+ Enterprise Innovation and R&D Refinement Program. As of 31 December 2025 and 2024, performance bond provided by banks amounted to NT$9,464 thousand and NT$7,523 thousand, respectively, and the banks has issued guarantee notes amounted to NT$40,000 thousand.

Significant disaster loss

None.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Significant subsequent events

None.

Others

(1) Categories of financial instruments

Financial assets

	As of 31 December
	2025	2024
Financial assets at fair value through profit or loss:
Mandatorily measured at fair value through profit or loss	$543,758	$563,648
Financial assets at fair value through other comprehensive income	320,352	338,731
Financial assets measured at amortized cost
Cash and cash equivalents (Excluding cash on hand)	1,897,069	1,858,235
Financial assets measured at amortized cost	-	1,370
Notes receivable	7,808	25,042
Accounts receivable	1,428,513	1,586,799
Other receivables	202,379	236,431
Long-term receivable	56,629	95,131
Refundable deposits	20,315	13,931
Total	$4,476,823	$4,719,318

Financial liabilities

	As of 31 December
	2025	2024
Financial liabilities at amortized cost:
Short-term loans	$2,550,000	$1,700,000
Notes and accounts payable	1,752,502	1,478,863
Bonds payable (including current portion with maturity less than 1 year)	-	803,321
Others payables	558,343	768,606
Lease liabilities	359,974	181,856
Total	$5,220,819	$4,932,646

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Financial risk management objectives and policies

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

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 and Audit and Risk Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there are usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense are denominated in a different currency from the Company’s functional currency) and the Company’s net investments in foreign subsidiaries.

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. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company's profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Company's foreign currency risk is mainly related to the volatility in the exchange rates for USD, EUR and JPY.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt instrument investments at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates and interest rate swaps. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit.

Pre-tax sensitivity analysis of changes in related risk factors for the years ended 31 December 2025 and 2024 are as follows:

For the year ended 31 December 2025

Main Risk	Fluctuation	Sensitivity of profit/loss	Sensitivity of equity
Foreign currency risk	NTD/USD rate +/- 1%	+/-$6,832	-
Foreign currency risk	NTD/EUR rate +/- 1%	+/-$5,708	-
Foreign currency risk	NTD/JPY rate +/- 1%	+/-$1,484	-
Interest rate risk	Market rate +/- 10 basis points	-/+$2,550	-

For the year ended 31 December 2024

Main Risk	Fluctuation	Sensitivity of profit/loss	Sensitivity of equity
Foreign currency risk	NTD/USD rate +/- 1%	+/-$10,092	-
Foreign currency risk	NTD/EUR rate +/- 1%	+/-$7,076	-
Foreign currency risk	NTD/JPY rate +/- 1%	+/-$1,347	-
Interest rate risk	Market rate +/- 10 basis points	-/+$1,700	-

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Equity price risk

The fair value of the Company’s listed and unlisted equity securities and conversion rights of the Euro-convertible bonds issued are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s listed and unlisted equity securities are classified under financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income, while conversion rights of the Euro-convertible bonds issued are classified as financial liabilities at fair value through profit or loss as it does not satisfy the definition of an equity component. 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.

At the reporting date, a change of 10% in the price measured at fair value through profit or loss could increase/decrease The Company’s profit for the years ended 31 December 2025 and 2024 by NT$54,376 thousand and NT$56,365 thousand, respectively.

Please refer to Note 12(9) for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments.

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

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2025 and 2024, amounts receivables from top ten customers represented 29% and 27% of the total accounts receivables of the Company. The credit concentration risk of other accounts receivables is insignificant.

Credit risk from balances with banks, fixed income securities 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, companies and government entities with good credit rating. Consequently, there is no significant credit risk for these counter parties.

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments, bank borrowings, convertible bonds and finance leases. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

Non-derivative financial liabilities

	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
As of 31 December 2025
Loans	$2,553,925	$ -	$ -	$ -	$2,553,925
Notes and accounts payable	1,752,502	-	-	-	1,752,502
Lease liabilities	74,754	66,724	48,291	186,640	376,409
As of 31 December 2024
Loans	$1,705,355	$ -	$ -	$ -	$1,705,355
Notes and accounts payable	1,478,863	-	-	-	1,478,863
Convertible bonds	816,700	-	-	-	816,700
Lease liabilities	38,869	47,253	27,181	75,644	188,947

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(6) Reconciliation of liabilities from financing activities

Reconciliation of liabilities for the year ended 31 December 2025:

	Short-term loans	Lease liabilities	Bonds payable (including maturity within a year)	Deposits received	Total liabilities from financing activities
As of 1 January 2025	$1,700,000	$181,856	$803,321	$353	$2,685,530
Cash flow	850,000	(44,476)	(816,700)	-	(11,176)
Non-cash change	-	222,594	13,379	-	235,973
As of 31 December 2025	$2,550,000	$359,974	$ -	$353	$2,910,327

Reconciliation of liabilities for the year ended 31 December 2024:

	Short-term loans	Lease liabilities	Bonds payable (including maturity within a year)	Deposits received	Total liabilities from financing activities
As of 1 January 2024	$980,000	$207,934	$799,113	$3,514	$1,990,561
Cash flow	720,000	(55,447)	-	(3,161)	661,392
Non-cash change	-	29,369	4,208	-	33,577
As of 31 December 2024	$1,700,000	$181,856	$803,321	$353	$2,685,530

(7) Fair values of financial instruments

(a) The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

a. The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and other current liabilities approximate their fair value due to their short maturities.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

b. For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities, beneficiary certificates, bonds and futures etc.) at the reporting date.

c. Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).

d. Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the Taipei Exchange, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)

e. The fair value of derivatives which are not options and without market quotations, is determined based on the counterparty prices or discounted cash flow analysis using interest rate yield curve for the contract period. Fair value of option-based derivative financial instruments is obtained using on the counterparty prices or appropriate option pricing model (for example, Black-Scholes model) or other valuation method (for example, Monte Carlo Simulation).

(b) Fair value of financial instruments measured at amortized cost

The carrying amount of the Company’s financial assets and liabilities measured at amortized cost approximate their fair value.

Please refer to Note 12(9) for fair value measurement hierarchy for financial instruments of the Company.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(8) Derivative financial instruments

The related information for derivative financial instruments not qualified for hedge accounting and not yet settled as of 31 December 2025 and 2024 are as follows:

Embedded derivatives

The embedded derivatives arising from issuing convertible bonds have been separated from the host contract and were carried at fair value through profit or loss. Please refer to Note 6(10) for further information on this transaction.

(9) Fair value measurement hierarchy

(a) Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

(b) Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis is as follows:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2025

	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss
Stocks	$512,320	$ -	$ -	$512,320
Corporate bonds	31,438	-	-	31,438
Financial assets at fair value through other comprehensive income
Equity instrument measured at fair value through other comprehensive income	-	-	320,352	320,352
As at 31 December 2024	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss
Stocks	$563,648	$ -	$ -	$563,648
Financial assets at fair value through other comprehensive income
Equity instrument measured at fair value through other comprehensive income	-	-	338,731	338,731

Transfers between Level 1 and Level 2 during the period

During the years ended 31 December 2025 and 2024, there were no transfers between Level 1 and Level 2 fair value measurements.

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

	Assets
	At fair value through other comprehensive income
	Stocks
	2025	2024
Balance, beginning of year	$338,731	$385,959
Total gains and losses recognized:
Amount recognized in OCI (presented in "Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income)	(10,131)	(46,386)
The return of paid-in capital following liquidation (Note)	(58)	(842)
The return of paid-in capital for capital reduction	(8,190)	-
Balance, end of year	$320,352	$338,731

Note: The return of paid-in capital following liquidation were recognized as other receivables.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

As of 31 December 2025

	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
Financial assets:
At fair value through other comprehensive income
Stocks and others	Market approach	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value of the stocks	10% increase (decrease) in the discount for lack of marketability would result in decrease (increase) in the Company’s profit or loss by NT$32,035 thousand

As of 31 December 2024

	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
Financial assets:
At fair value through other comprehensive income
Stocks and others	Market approach	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value of the stocks	10% increase (decrease) in the discount for lack of marketability would result in decrease (increase) in the Company’s profit or loss by NT$33,873 thousand

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Company's Financial Department is responsible for validating the fair value measurements and ensuring that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Department analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company's accounting policies at each reporting date.

(c) Fair value measurement hierarchy of the Company's assets and liabilities not measured at fair value but for which the fair value is disclosed

As of 31 December 2025

	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investments accounted for using the equity method (please refer to Note 6(6))	$1,102,952	$ -	$ -	$1,102,952

As of 31 December 2024

	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investments accounted for using the equity method (please refer to Note 6(6))	$1,297,429	$ -	$ -	$1,297,429

(10) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

	As of 31 December 2025			As of 31 December 2024
	Foreign currencies	Foreign exchange rate	NTD	Foreign currencies	Foreign exchange rate	NTD
Financial assets
Monetary items:
USD	$65,029	31.44	$2,044,391	$67,099	32.78	$2,199,567
EUR	17,546	36.90	647,432	22,452	34.13	766,313
JPY	739,326	0.20	148,457	643,578	0.21	135,023
Financial liabilities
Monetary items:
USD	43,299	31.44	1,361,222	36,313	32.78	1,190,371
EUR	2,075	36.90	76,617	1,720	34.13	58,723
JPY	127	0.20	26	1,757	0.21	369

The Company has a number of different functional currencies; therefore, we are unable to disclose the exchange loss and gain of monetary financial assets and financial liabilities under each foreign currency that has significant impact. The Company recognized NT$93,166 thousand and NT$50,578 thousand foreign exchange gains for the years ended 31 December 2025 and 2024, respectively.

The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency).

(11) 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 maximize 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 payments to shareholders, return capital to shareholders or issue new shares.

SINBON ELECTRONICS CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Other disclosure

(1) Information at significant transactions and information on investees:

(a) Financing provided to others for the year ended 31 December 2025: Please refer to Attachment 1.

(b) Endorsement/Guarantee provided to others for the year ended 31 December 2025: Please refer to Attachment 2.

(c) Significant securities held as of 31 December 2025 (excluding subsidiaries, associates and joint ventures): Please refer to Attachment 3.

(d) Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock for the year ended 31 December 2025: Please refer to Attachment 4.

(e) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of the capital stock as of 31 December 2025: Please refer to Attachment 5.

(2) Information on investees:

Names, locations, main businesses and products, original investment amount, investment as of 31 December 2025, net income (loss) of investee company and investment income (loss) recognized for the year ended December 31, 2025: Please refer to Attachment 6.

(3) Information on investments in mainland China

(a) Investment in Mainland China: Please refer to Attachment 7.

(b) Directly or indirectly significant transactions through third regions with the investees in Mainland China: Please refer to Attachment 2, 4 and 5.

Segment information

In accordance with Article 22 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the Company is exempt from preparation and fully disclosed segment information in consolidated financial statements.

Attachment 1: Financing provided to others for the year ended 31 December 2025

No.	Lender (Note 1)	Counterparty	Financial statement account	Related Party	Maximum balance for the period	Ending balance	Actual amount provided	Interest rate	Nature of financing	Amount of sales to (purchases from) counter-party	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit of financing amount for individual counter-party (Note2)	Limit of total financing amount (Note3)
													Item	Value
0	The Company	SB Hungary	Other receivables	Y	$368,988	$368,988	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,620,692	$6,482,769
0	The Company	SB Hungary	Other receivables	Y	$368,988	$368,988	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,620,692	$6,482,769
0	The Company	SB Ohio	Other receivables	Y	$298,638	$282,942	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,620,692	$6,482,769
0	The Company	SB Ohio	Other receivables	Y	$282,942	$282,942	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,620,692	$6,482,769
0	The Company	SB SINGAPORE	Other receivables	Y	$31,438	$31,438	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,620,692	$6,482,769
1	KSEM	JSEM	Other receivables	Y	$5,491	$5,398	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$6,566	$6,566
2	BJSB	XZEM	Other receivables	Y	$45,758	$ -	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$60,250	$60,250
3	BJSB TongAn	XZEM	Other receivables	Y	$91,516	$ -	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$985,788	$985,788
3	BJSB TongAn	XZEM	Other receivables	Y	$91,516	$ -	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$985,788	$985,788
3	BJSB TongAn	JSEM	Other receivables	Y	$89,964	$89,964	$ -	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$985,788	$985,788

Note 1: The above transactions were all made between consolidated entities in the Group and have been reversed.
Note 2: Total financing limit for individual counterparty was set at $10\%$ of the lender's net worth of the financial statements which were audited by the certified public accountants as of 31 December 2025.
The Company: $\$ 16,206,922^{}10\% = \$ 1,620,692$
Total financing limit for individual counterparty was set at $40\%$ of the lender's net worth of the financial statements which were audited by the certified public accountants as of 31 December 2025.
KSEM: $\$ 16,414^{}40\% = \$ 6,566$
BJSB: $\$ 150,625^{}40\% = \$ 60,250$
BJSB TongAn: $\$ 2,464,470^{}40\% = \$ 985,788$
Note 3: Total financing limit was set at $40\%$ of the lender's net worth of the financial statements which were audited by the certified public accountants as of 31 December 2025.
The Company: $\$ 16,206,922^{}40\% = \$ 6,482,769$
KSEM: $\$ 16,414^{}40\% = \$ 6,566$
BJSB: $\$ 150,625^{}40\% = \$ 60,250$
BJSB TongAn: $\$ 2,464,470^{}40\% = \$ 985,788$
Note 4: For short-term financing.

Attachment 2: Endorsement/Guarantee provided to others for the year ended 31 December 2025

No. (Note 1)	Endorsor/ Guarantor	Receiving party		Limit of guarantee/ endorsement amount for receiving party (Note 3)	Maximum balance for the period	Ending balance	Actual amount provided	Amount of guarantee/ endorsement collateralized by properties	Percentage of accumulated guarantee amount to net assets value from the latest financial statement	Limit of total guarantee/ endorsement amount (Note 4)	Parent company's guarantee/ endorsement amount to subsidiaries (Note 5)	Subsidiaries' guarantee/ endorsement amount to parent company (Note 5)	Guarantee/ endorsement amount to company in Mainland China (Note 5)
		Company name	Releationship (Note 2)
0	The Company	SB Hungary	2	$6,482,769	$554,077	$535,403	$276,741	None	3.30%	$16,206,922	Y	N	N
0	The Company	Radbon	2	$4,862,077	$550,000	$300,000	$500	None	1.85%	$16,206,922	Y	N	N
0	The Company	SB Ohio	2	$6,482,769	$657,815	$628,760	$347,390	None	3.88%	$16,206,922	Y	N	N
0	The Company	SB USA	2	$6,482,769	$16,591	$15,719	$9,431	None	0.10%	$16,206,922	Y	N	N
1	T-CONN	T-CONN Zhongshan	2	$99,820	$145,831	$62,876	$ -	None	25.20%	$249,549	N	N	Y

Note 1: The Company and its subsidiaries are coded as follows:
1. The Company is coded "0".
2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

Note 2: According to the "Guidelines Governing the Preparation of financial statements by Securities Issuers" issued by the R.O.C. Securities and Futures Bureau, receiving parties should be disclosed as one of the following:
1. A company with which it does business.
2. A company in which the public company directly and indirectly holds more than 50% of the voting shares.
3. A company that directly and indirectly holds more than 50% of the voting shares in the public company.
4. A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
5. A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
6. A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
7. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: Limit of guarantee/endorsement amount for overseas subsidiary is 40% of the net worth of the financial statement audited by the certified public accountants as of 31 December 2025.
$16,206,92240%=$6,482,769
Limit of guarantee/endorsement amount for domestic subsidiaries is 30% of the net worth of the financial statement audited by the certified public accountants as of 31 December 2025.
$16,206,92230%=$4,862,077
Limit of guarantee/endorsement amount for T-CONN Zhongshan is 40% of the net worth of the financial statement of T-CONN which were audited by the certified public accountants as of 31 December 2025.
$249,549*40%=$99,820

Note 4: Limit of total guarantee/ endorsement amount is 100% of the net worth of the financial statement audited by the certified public accountants as of 31 December 2025.
Limit of total guarantee/ endorsement amount is 100% of the net worth of the financial statements of T-CONN which audited by the certified public accountants as of 31 December 2025.

Note 5: "Y" for the listed (OTC) parent company guarantees/endorses for subsidiary, subsidiary guarantees/endorses for the listed (OTC) parent company or guarantee/endorse for companies in Mainland China.

Attachment 3: Significant securities held as of 31 December 2025. (Excluding subsidiaries, associates and joint ventures)

Holding Company	Type and name of securities	Relationship (Note 1)	Financial statement account	As of 31 December 2025				Note
				Units/bonds/shares	Carrying amount	Percentage of ownership (%)	Fair value
The Company	SINTOP I Co., Ltd.	-	Financial assets at fair value through other comprehensive income, non-current	15,000,000	$104,733	15.00%	$104,733	-
The Company	Nextronics Engineering Corp.	-	Financial assets at fair value through profit or loss, current	4,899,954	512,045	11.93%	512,045	-

Note 1: Not required if the issuer of securities is not a related party.
Note 2: This table lists securities based on the principle of materiality.

Attachment 4: Related party transactions for purchases and sales exceeding the lower of NT$100 million or 20 percent of the capital stock for the year ended 31 December 2025.

Related-party	Counter-party	Relationship	Intercompany Transactions				Details of non-arm's length transaction		Notes and accounts receivable (payable)
			Purchases (Sales)	Amount	Percentage of total consolidated purchase (Sales)	Terms	Unit price	Terms	Carrying amount	Percentage of total consolidated receivables (payable)
The Company	JYSB	Subsidiary	Purchase	$2,091,940	32.17%	Trading condition is the same as other supplier	N/A	N/A	$(646,668)	-36.90%
The Company	SINBON USA	Subsidiary	Purchase	$255,664	3.93%	Trading condition is the same as other supplier	N/A	N/A	$(40,845)	-2.33%
JYSB	SINBON USA	Associates	Purchase	$151,330	2.25%	Trading condition is the same as other supplier	N/A	N/A	$(25,629)	-1.13%
JYSC	JYSB	Parent	Purchase	$744,787	35.75%	Trading condition is the same as other supplier	N/A	N/A	$(522,725)	-32.92%
BJSB TongAn	JSEM	Subsidiary	Purchase	$324,660	15.77%	Trading condition is the same as other supplier	N/A	N/A	$(191,161)	-17.29%
HKSB	JYSB	Associates	Purchase	$653,247	12.07%	Trading condition is the same as other supplier	N/A	N/A	$(217,399)	-15.75%
T-CONN	T-CONN Zhongshan	Subsidiary	Purchase	$322,579	63.84%	Trading condition is the same as other supplier	N/A	N/A	$(169,729)	-71.40%
JSEM	BJSB TongAn	Parent	Purchase	$218,117	29.10%	Trading condition is the same as other supplier	N/A	N/A	$(294,168)	-38.36%
JYSB	JYSC	Subsidiary	Purchase	$643,040	9.58%	Trading condition is the same as other supplier	N/A	N/A	$(134,363)	-5.95%
JSEM	JYSB	Associates	Purchase	$128,889	17.19%	Trading condition is the same as other supplier	N/A	N/A	$(169,729)	-19.15%

Attachment 5: Receivables from related parties with accounts exceeding the lower of NT$100 million or 20 percent of the capital stock as of 31 December 2025.

Related-party	Counter-party	Relationship	Amount	Average collection turnover	Overdue account receivable-related parties		Collection in subsequent period	Allowance for doubtful debts
					Amount	Processing method
The Company	T-CONN	Subsidiary	$130,878	0.08	$ -	-	$12,735	$ -
HKSB	SHSB	Associates	$171,122	0.03	$ -	-	$5,692	$ -
JYSB	The Company	Parent	$646,668	3.47	$ -	-	$55,967	$ -
JYSB	JYSC	Subsidiary	$522,725	2.93	$ -	-	$217	$ -
JSEM	BJSB TongAn	Parent	$191,161	2.87	$ -	-	$ -	$ -
JYSB	HKSB	Associates	$217,399	3.17	$ -	-	$16,717	$ -
BJSB TongAn	JSEM	Subsidiary	$294,168	0.76	$ -	-	$ -	$ -
JYSC	JYSB	Parent	$134,363	9.57	$ -	-	$133,585	$ -
JYSB	JSEM	Associates	$146,860	1.17	$ -	-	$625	$ -
T-CONN Zhongshan	T-CONN	Parent	$169,729	1.86	$ -	-	$14,046	$ -

Note 1: The financing provided to others has been disclosed in Attachment 1.

Attachment 6: Names, locations, main businesses and products, original investment amount, investment as of 31 December 2025, net income (loss) of investee company and investment income (loss) recognized for the year ended 31 December 2025: (Excluding investment in Mainland China)

Investor	Investor company	Address	Main businesses and products	Initial Investment		Investment as of 31 December 2025			Net income (loss) of investee company	Investment income (loss) recognized (Note1)	Note
				Ending balance	Beginning balance	Number of shares	Percentage of ownership (%)	Book value
The Company	HKSB	Hong Kong	Selling a wide variety of connectors, wires and cables	HKD 95,606,000	HKD 95,606,000	-	100.00%	$976,771	$503,190	$503,190	Subsidiary
				$401,262	$401,262
The Company	Kwan-Ze	New Taipei City, Taiwan	Selling a wide variety of electronic materials and holding company	$235,600	$235,600	29,200,000 shares	100.00%	$804,845	$188,995	$188,995	Subsidiary
The Company	SB BVI	British Virgin Islands	Holding company	USD 45,021,000	USD 45,021,000	-	100.00%	$8,470,531	$1,465,888	$1,464,600	Subsidiary
				$1,461,158	$1,461,158
The Company	SINTOP	New Taipei City, Taiwan	Renewable energy investment management consulting business	$6,804	$6,804	680,400 shares	53.57%	$13,008	$9,241	$4,951	Subsidiary
The Company	Argosy Technologies Co., Ltd.	Hsinchu City, Taiwan	Product and sells a variety of electronic components, computers and peripheral equipment	$49,452	$49,452	3,032,598 shares	3.37%	$159,004	$1,143,047	$38,471	Investor under the equity method
The Company	SINBON USA LLC	OHIO, USA	Logistic center	USD 21,979,000	USD 18,179,000	-	100.00%	$213,857	$(121,700)	$(123,333)	Subsidiary
				$678,063	$566,081
The Company	SINBON Europe GmbH	Pfarrkirchen, Germany	Logistic center	EUR 5,209,000	EUR 5,209,000	-	100.00%	$14,551	$1,774	$1,774	Subsidiary
				$185,241	$185,241
The Company	Radbon Electronics Co., Ltd.	Miaoli County, Taiwan	Manufacturing and selling a wide variety of connectors, wires and cables	$174,693	$199,652	33,946,000 shares	83.20%	$794,106	$218,468	$205,239	Subsidiary
The Company	T-CONN Precision	New Taipei City, Taiwan	Manufacturing and selling a wide variety of connectors, wires and cables	$288,098	$288,098	28,063,688 shares	56.15%	$137,379	$(104,583)	$(54,171)	Subsidiary
The Company	SB Hungary	Komárom-Esztergom megye, Hungary	Manufacturing and selling a wide variety of connectors, wires and cables	EUR 16,264,000	EUR 15,264,000	-	100.00%	$89,136	$(14,182)	$(20,677)	Subsidiary
				$557,858	$523,342
The Company	SB Mexico	San Luis Potosí, Mexico	Manufacturing and trading of electronic components	USD 19,800,000	USD 13,068,000	-	99.00%	$560,987	$(68,546)	$(68,546)	Subsidiary
				$620,951	$424,154
BISB TongAn	TWSC	Miaoli County, Taiwan	Manufacturing and selling a wide variety of connectors, wires and cables	RMB 5,800,000	RMB 10,405,000	2,500,000 shares	100.00%	RMB 10,960,000	RMB 13,000	$-	Sub-subsidiary
				$25,000	$45,000			$49,301	$58
SINBON USA L.L.C	SB Ohio	OHIO, USA	Manufacturing and selling a wide variety of connectors, wires and cables	USD 17,674,000	USD 13,874,000	-	100.00%	USD 5,203,000	USD 13,926,000	$-	Sub-subsidiary
								$163,578	$(122,471)
SINBON USA L.L.C	STT	U.S.A Tennessee	Logistic center.	USD 140,000	USD 140,000	-	100.00%	USD 257,000	USD 49,000	$-	Sub-subsidiary
				$4,542	$4,542			$8,079	$1,536
Kwan-Ze	Argosy Research Inc.	Hsinchu City, Taiwan	Produce and sells a variety of electronic components, computers and peripheral equipment	$197,969	$197,969	14,771,152 shares	16.39%	$755,075	$1,143,047	$-	Investor under the equity method
Kwan-Ze	SB Mexico	San Luis Potosí, Mexico	Manufacturing and trading of electronic components.	USD 200,000	USD 132,000	-	1.00%	$6,274	$(68,546)	$-	Subsidiary
				$6,274	$4,286

Investor	Investor company	Address	Main businesses and products	Initial Investment		Investment as of 31 December 2025			Net income (loss) of investee company	Investment income (loss) recognized (Note1)	Note
				Ending balance	Beginning balance	Number of shares	Percentage of ownership (%)	Book value
Argosy Research Inc.	Argosy Technology Inc.(USA)	12731 RAMONA BLVD, #205 BALDWIN PARK, CA 91706	Sell Multimedia related products, ODM and OED	$30,347	$30,347	-	100.00%	$-	$-	$-	Investor under the equity method
Argosy Research Inc.	Argosy International B.V.	De Bindetij 72 1321 ER Almere The Netherlands	Leasing operations and sell ODM and OED	$22,314	$22,314	-	100.00%	$38,732	$19,319	$-	Investor under the equity method
Argosy Research Inc.	Global Sabre Electronics Co., Ltd.	Mauritius	Selling a wide variety of connectors and cables	$-	$-	-	100.00%	$64,146	$(16,481)	$-	Investor under the equity method
Argosy Research Inc.	ARGOSY Technology (VIETNAM) Co., Ltd.	Hung Yin province, Vietnam	Selling a wide variety of connectors and cables	$257,677	$158,767	-	100.00%	$218,494	$(10,584)	$-	Investor under the equity method
Argosy Research Inc.	ROTEC LIMITED	British Virgin Islands	Holding company	$543,588	$543,588	-	88.04%	$837,945	$7,141	$-	Investor under the equity method
Global Sabre Electronics Co., Ltd	ROTEC LIMITED	British Virgin Islands	Holding company	$72,918	$72,918	-	11.96%	$113,833	$7,141	$-	Investor under the equity method

Note 1: The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.

Attachment 7: Investment in Mainland China

Investee company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of 1 January 2025	Investment Flows
					Outflow	Inflow
BJSB	Manufacturing and selling a wide variety of connectors, wires and cables	RMB 12,830,000	Directly investment in Mainland China.	USD 1,020,000
$30,719	$-	$-	USD 1,020,000
$30,719	RMB438,000
$1,900	100.00%	RMB438,000
$1,900	RMB33,486,000
$150,625	USD11,030,000
$351,623
JYSB	Manufacturing and selling a wide variety of connectors, wires and cables	USD 37,780,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 22,050,000
$705,108	$-	$-	USD 22,050,000
$705,108	USD37,099,000
$1,157,164	100.00%	USD37,099,000
$1,157,164	USD201,746,000
$6,342,502	USD82,731,000
$2,513,591
SHSB	Selling a wide variety of connectors, wires and cables	USD 3,280,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 1,700,000
$55,358	$-	$-	USD 1,700,000
$55,358	USD1,473,000
$45,933	100.00%	USD1,473,000
$45,933	USD10,789,000
$339,169	USD3,437,000
$105,698
SZSB	Selling a wide variety of connectors, wires and cables	USD 2,810,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 2,750,000
$83,385	$-	$-	USD 2,750,000
$83,385	USD410,000
$12,778	100.00%	USD410,000
$12,778	USD9,068,000
$285,075	RMB46,400,000
$193,002
TCSB	Manufacturing and selling a wide variety of connectors, wires and cables	RMB 115,970,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 8,000,000
$248,003	$-	$-	USD 8,000,000
$248,003	USD8,014,000
$249,978	100.00%	USD8,014,000
$249,978	USD49,959,000
$1,570,615	USD5,766,000
$174,690
T-CONN Zhongshan	Manufacturing and selling a wide variety of connectors, wires and cables	USD 9,300,000	Directly investment in Mainland China	USD 3,686,000
$117,529	$-	$-	USD 3,686,000
$117,529	$(20,702)	56.15%	$(11,624)	$262,575	$93,742
BJSB TongAn	Manufacturing and selling a wide variety of connectors, wires and cables	RMB 130,100,000	Directly investment in Mainland China	USD 3,000,000
$89,134	$-	$-	USD 3,000,000
$89,134	$310,286	100.00%	$309,390	$2,461,117	$1,562,251
Argosy (Beijing) Technologies Co., Ltd.	Selling a wide variety of connectors, wires and cables	RMB 5,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 76,000
$2,389	$-	$-	USD 76,000
$2,389	$-	12.00%	$-	$-	$-
China Digital Library Corp.Ltd.	Technology development of computer software, transfer of technology, advisory service	RMB 88,600,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 750,000
$23,579	$-	$-	USD 750,000
$23,579	$-	4.85%	$-	$-	$-
Wu Xi S&D	Manufacturing and selling new flat panel displays	USD 4,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 1,900,000
$61,823	$-	$-	USD 1,900,000
$61,823	$-	-	$-	$-	$-

Attachment 7: Investment in Mainland China

Investee company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of 1 January 2025	Investment Flows
					Outflow	Inflow
Ning Bo Smart and Diligent Co., Ltd.	Manufacturing and selling a new Flat Panel Display	USD 2,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 1,140,000
$37,025	$ -	$ -	USD 1,140,000
$37,025	$ -	-	$ -	$ -	$ -
JY Sinact	Manufacturing and selling a wide variety of electronic materials	USD 9,500,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 5,266,000
$164,599	$ -	$ -	USD 5,266,000
$164,599	$ -	-	$ -	$ -	$ -
Shang Hai Conrek Electronics Trading Co., ltd.	Selling a wide variety of electronic materials	USD 160,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 104,000
$3,302	$ -	$ -	USD 104,000
$3,302	$ -	-	$ -	$ -	$ -
Dong Guan CMK	Manufacturing and selling a wide variety of connectors, wires and cables	USD 1,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 645,000
$20,768	$ -	$ -	USD 645,000
$20,768	$ -	-	$ -	$ -	$ -
Accumulated Investment in Mainland China as of 31 December 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
---	---	---
USD 52,087,000	USD 56,420,000	N/A(Note2)

Note 1: The investment income (loss) recognized in current period, the investment income (loss) were determined based on the following basis:
(1) The financial statements were audited by an international certified public accounting firm in cooperation with an R.O.C. accounting firm.
(2) The financial statements were audited by the auditors of the parent company.
(3) Others

Note 2: According to Order No. Jing-Shen-Zi-09704604680 issued by Ministry of Economic Affairs, R.O.C., the Company's investment in Mainland China is not limited to 60% of net worth or consolidated net worth specified by the Investment Commission.

SINBON ELECTRONICS CO., LTD.
THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS
FOR THE YEAR ENDED 31 DECEMBER 2025

ITEM	INDEX
STATEMENT OF CASH AND CASH EQUIVALENTS	1
STATEMENT OF ACCOUNTS RECEIVABLE	2
STATEMENT OF OTHER RECEIVABLES	3
STATEMENT OF INVENTORIES	4
STATEMENT OF OTHER CURRENT ASSETS	5
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME, NONCURRENT	6
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD	7
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT	Note 6 (7)
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT	Note 6 (7)
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS	8
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS	9
STATEMENT OF SHORT-TERM LOANS	10
STATEMENT OF ACCOUNTS PAYABLE	11
STATEMENT OF LEASE LIABILITIES	12
STATEMENT OF NET OPERATING REVENUES	13
STATEMENT OF OPERATING COSTS	14
STATEMENT OF MANUFACTURING EXPENSES	15
STATEMENT OF OPERATING EXPENSES	16
SUMMARY STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION	Note 6 (16)
STATEMENT OF NON-OPERATING INCOME, EXPENSES AND LOSSES	Note 6 (17)

101

SINBON ELECTRONICS CO., LTD.
1. STATEMENT OF CASH AND CASH EQUIVALENTS
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Description	Amount
Cash on hand &petty cash		$712
Bank savings
Demand deposits—NTD		447,037
Demand deposits—foreign	USD 27,487 thousand	1,450,032
currency	Exchange rate 1: 31.4380
	JPY 705,459 thousand
	Exchange rate 1: 0.2008
	EUR 11,498 thousand
	Exchange rate 1: 36.8988
	RMB 595 thousand
	Exchange rate 1: 4.4982
	GBP 395 thousand
	Exchange rate 1: 42.3061
	HKD 146 thousand
	Exchange rate 1: 4.0390
Total		$1,897,781

SINBON ELECTRONICS CO., LTD.
2. STATEMENT OF ACCOUNTS RECEIVABLE
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Third parties:
Client A		$156,976
Client B		93,578
Others (Note)		1,058,802
Subtotal		1,309,356
Less: loss allowance		(443)
Subtotal (third parties)		1,308,913
Related parties:
T-CONN Precision Co., Ltd.		91,242
SINBON Ohio LLC		21,365
Others (Note)		6,993
Subtotal (related parties)		119,600
Total		$1,428,513

(Note) The amount of individual client in others does not exceed 5% of the account blance.

SINBON ELECTRONICS CO., LTD.
3. STATEMENT OF OTHER RECEIVABLES
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
VAT and GST refund		$25,697
Other Receivables – Restricted Assets		10,970
Accrued incomes		14
Third parties
Client A		67,458
Others (Note)		19,015
Subtotal		86,473
Less: loss allowance		-
Subtotal (Third parties)		86,473
Related parties:
Jiangyin SINBON Electronics Co., Ltd.		39,436
SINBON Electronics Mexico, S. DE R.L. DE C.V.		20,211
HongKong SINBON Electronics Co., Ltd.		13,017
Others (Note)		6,561
Subtotal (Related parties)		79,225
Total		$202,379

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

103

SINBON ELECTRONICS CO., LTD.
4. STATEMENT OF INVENTORIES
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Cost	Net Realizable Value	Note
Raw materials	$1,039,923	$1,279,437	Please refer to Note 4 (10) for more details on net realizable value
Work in process	244,631	1,437,814
Finished goods	1,109,921	1,957,650
Merchandise	262,617	310,034
Subtotal	$2,657,092	$4,984,935

SINBON ELECTRONICS CO., LTD.
5. STATEMENT OF OTHER CURRENT ASSETS
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Description	Amount
Prepayment for purchases		$68,515
Prepaid expenses	Rent expense, Insurance etc.	32,263
Input tax (VAT)		22,840
Temporary payments and payments on behalf of others		3,687
Other prepayments		4,023
Total		$131,328

104

SINBON ELECTRONICS CO., LTD.
6. STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME, NONCURRENT FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Name of Securities	As of 1 January 2025		Additions		Decrease		Adjustments	As of 31 December 2025		Accumulated impairment	Collateral	Note
	Shares	Fair Value	Shares	Amount	Shares	Amount		Shares	Fair Value
Chengding Venture Capital Co., Ltd.	15,000,000	$109,682	-	$ -	-	$ -	$(21,280)	15,000,000	$88,402	N/A	None
Top Taiwan XIV Venture Capital Co., Ltd.	5,000,000	34,117	-	-	-	-	1,976	5,000,000	36,093	N/A	None
Top Taiwan Venture Capital Co., Ltd.	4,095,000	30,354	-	-	(819,000)	(8,190)	(241)	3,276,000	21,923	N/A	None	(Note 1)
Dynahz Technologies	2,771,670	58,964	-	-	-	-	10,237	2,771,670	69,201	N/A	None
VAN MOOF Global Holding BV	780,000	-	-	-	-	-	-	780,000	-	N/A	None
Bandrich, Inc.	330,000	58	-	-	(330,000)	(58)	-	-	-	N/A	None	(Note 2)
SINTOP I. Co., Ltd.	15,000,000	105,556	-	-	-	-	(823)	15,000,000	104,733	N/A	None
Total		$338,731		$ -		$(8,248)	$(10,131)		$320,352

Note 1: The return of paid-in capital returned from the capital reduction of Top Taiwan Venture Capital Co., Ltd. was NT$8,190 thousand.
Note 2: The return of paid-in capital returned from the liquidation of Bandrich, Inc. was NT$58 thousand.

SINBON ELECTRONICS CO., LTD.
7. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD
FOR THE YEAR ENDED 31 DECEMBER 2025

(In Thousands of New Taiwan Dollars)

Name	As of 1 January 2025		Additions		Decrease		Investment income (loss)	Exchange differences	As of 31 December 2025			Fair value/ Net assets value		Collateral	Note
	Shares	Fair Value	Shares	Amount	Shares	Amount			Shares	%	Amount	Unit price	Total Amount
SINBON International Enterprise Co., Ltd.	USD 53,281,715	$7,952,066		$ -		$(952,633)	$1,464,600	$6,498	USD 53,281,715	100.00	$8,470,531		$8,470,531	None	Note 1
Hong Kong SINBON Electronics Co., Ltd.	HKD 95,606,400	1,461,161		-		(861,365)	503,190	(126,215)	HKD 95,606,400	100.00	976,771		976,771	None	Note 2
Beijing SINBON TongAn Renewable Energy Co., Ltd.	USD 19,211,190	2,316,039		-		(164,400)	309,390	88	USD 19,211,190	99.92	2,461,117		2,461,117	None	Note 3
Kwan-Ze Corporation Ltd.	26,200,000 shares	803,193	3,000,000 shares	545		(181,699)	188,995	(6,189)	29,200,000 shares	100.00	804,845		804,845	None	Note 4
SINBON Europe GmbH	EUR 5,208,772.96	11,738		-		-	1,774	1,039	EUR 5,208,772.96	100.00	14,551		14,551	None	-
SINBON USA LLC	USD 18,178,736	228,646	USD 3,800,000	111,982		(341)	(123,333)	(3,097)	USD 21,978,736	100.00	213,857		213,857	None	Note 5
SINBON Hungary Kft.	EUR 9,000,000	77,316	EUR 1,000,000	34,516		-	(20,677)	(2,018)	EUR 10,000,000	100.00	89,136		89,136	None	Note 6
Argosy Research Inc..	3,032,598 shares	158,323		112		(36,639)	38,471	(1,264)	3,032,598 shares	3.37	159,004	159.00	482,183	None	Note 7
Radbon Electronics Co., Ltd.	36,600,000 shares	662,251	2,196,000 shares	390,819	4,850,000 shares	(464,203)	205,239	-	33,946,000 shares	83.20	794,106		794,106	None	Note 8
T-CONN Precision Co., Ltd.	28,063,688 shares	193,494		-		-	(54,171)	(1,944)	28,063,688 shares	56.15	137,379	22.12	620,769	None	-
SINTOP Energy Management Co., Ltd.	680,400 shares	12,437		-		(4,380)	4,951	-	680,400 shares	53.57	13,008		13,008	None	Note 9
SINBON Electronics Mexico, S. DE R.L. DE C.V.	USD 13,068,000	372,301	USD 6,732,000	196,797		-	(68,546)	60,435	19,800,000 shares	99.00	560,987		560,987	None	Note 10
Total		$14,248,965		$734,771		$(2,665,660)	$2,449,883	$(72,667)			$14,695,292		$15,501,861

Note 1: SINBON International Enterprise Co., Ltd. repatriated profit in the amount of USD31,583 thousand (NT$952,293 thousand), and recognized unrealized losses of NT$340 thousand from changes in the fair value of financial assets measured at fair value through other comprehensive income relating to changes in the equity of the investee.
Note 2: Hong Kong SINBON Electronics Co., Ltd. repatriated profit of USD29,297 thousand (NT$861,365 thousand).
Note 3: Beijing SINBON TongAn Renewable Energy Co., Ltd. repatriated profit of RMB40,000 thousand (NT$164,400 thousand).
Note 4: Kwan-Ze Corporation Ltd. distributed stock dividends of 3,000,000 shares and cash dividends of NT$130,000 thousand, and recognized unrealized losses of NT$51,699 thousand from changes in the fair value of financial assets measured at fair value through other comprehensive income, and recognized additional paid-in capital of NT$545 thousand, both arising from changes in the equity of the investee.
Note 5: SINBON USA LLC made additional equity investment in the amount of USD3,800 thousand (NT$111,982 thousand), and recognized unrealized losses of NT$341 thousand from changes in the fair value of financial assets measured at fair value through other comprehensive income relating to changes in the equity of the investee.
Note 6: The Company made an additional equity investment in SINBON Hungary Kft. in the amount of EUR1,000 thousand (NT$34,516 thousand).
Note 7: Argosy Research Inc. distributed cash dividends of NT$26,727 thousand, and recognized unrealized losses of NT$9,912 thousand from changes in the fair value of financial assets measured at fair value through other comprehensive income, and recognized additional paid-in capital of NT$112 thousand, both arising from changes in the equity of the investee.
Note 8: Radbon Electronics Co., Ltd. increased its capital through the conversion of employee compensation. Since the subscription was not made proportionately, the Company recognized capital surplus of NT$36,810 thousand arising from changes in the investee's equity. In addition, the Company disposed of 4,850 thousand shares for proceeds of NT$464,203 thousand and recognized capital surplus of NT$354,009 thousand from the disposal.
Note 9: SINTOP Energy Management Co., Ltd. repatriated profit in the amount of NT$4,380 thousand.
Note 10: The Company made an additional equity investment in SINBON Electronics Mexico, S. DE R.L. DE C.V. in the amount of USD6,732 thousand (NT$196,797 thousand)

SINBON ELECTRONICS CO., LTD.
8. STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS
FOR THE YEAR ENDED 31 DECEMBER 2025

Cost:	Land	Buildings	Machine equipment	Transportation equipment	Total
As of 1 January 2025	$ -	$308,106	$684	$35,985	$344,775
Additions	162,655	56,519	-	4,807	223,981
Disposals	-	(90,911)	-	(8,368)	(99,279)
Exchange rate effects	-	54	-	-	54
As of 31 December 2025	$162,655	$273,768	$684	$32,424	$469,531

SINBON ELECTRONICS CO., LTD.
9. STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS
FOR THE YEAR ENDED 31 DECEMBER 2025

Depreciation and impairment:	Land	Buildings	Machine equipment	Transportation equipment	Total
As of 1 January 2025	$ -	$146,975	$182	$17,600	$164,757
Depreciation	1,414	33,455	274	9,843	44,986
Disposals	-	(89,524)	-	(8,368)	(97,892)
Exchange rate effects	-	34	-	-	34
Other changes	-	-	-	-	-
As of 31 December 2025	$1,414	$90,940	$456	$19,075	$111,885

107

SINBON ELECTRONICS CO., LTD.
10. STATEMENT OF SHORT-TERM LOANS
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Type	Description	Balance, End of Year	Contract Period	Interest rates applied (%)	Loan Commitments	Collateral
General credit limit	Land Bank of Taiwan	$300,000	Within 365 days	1.85%	NTD300,000,000	-
General credit limit	Taipei Fubon Commercial Bank Co., Ltd.	350,000	Within 365 days	1.81%	NTD850,000,000	-
General credit limit	HSBC Bank (Taiwan) Limited, Taichung Branch	1,300,000	Within 365 days	1.75%	USD 70,000,000	-
General credit limit	DBS Bank (Taiwan) Limited	300,000	Within 365 days	1.78%	USD 30,000,000	-
General credit limit	Bank of Taiwan	300,000	Within 365 days	1.81%	NTD300,000,000	-
	Total	$2,550,000

108

SINBON ELECTRONICS CO., LTD.
11. STATEMENT OF ACCOUNTS PAYABLE
31 DECEMBER 2025

(In Thousands of New Taiwan Dollars)

Vendor Name	Description	Amount
Third Parties:
Vendor A	Payment	$385,592
Others (Note)		624,619
Subtotal (Third parties)		1,010,211
Related parties:
Jiangyin SINBON Electronics Co., Ltd.	Payment	641,868
SINBON USA L.L.C.	Payment	41,940
Others (Note)		53,462
Subtotal (Related parties)		737,270
Total		$1,747,481

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

109

SINBON ELECTRONICS CO., LTD.
12. STATEMENT OF LEASE LIABILITIES
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Description	Period	Discount rate	Amount
Land	Science Park Land	2025.11.01~2044.12.31	0.7%	$161,241
Buildings	Office equipment	2020.11.01~2030.11.30	0.7%	185,107
	Factory
	Warehouse
	Parking space
Transportation equipment	Car leases	2022.06.06~2030.05.22	0.7%	13,397
Machine equipment	Production equipment	2024.05.06~2026.10.05	0.7%	229
Subtotal				359,974
Less: Current portion				(62,344)
Total				$297,630

SINBON ELECTRONICS CO., LTD.
13. STATEMENT OF NET OPERATING REVENUES
FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Shipments (Piece)	Amount
Cable assembly	24,235	$6,928,147
Cable connectors	417,536	1,558,207
Construction revenues		175,043
Other operating revenues		120,059
Others	5,863	68,642
Total		$8,850,098

110

SINBON ELECTRONICS CO., LTD.
14. STATEMENT OF OPERATING COSTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Amount
Cost of sales of goods manufactured
Direct material: Raw material purchased	$2,418,910
Add: Raw material, beginning of year	1,062,913
Transferred from finished goods	2,293,739
Less: Raw material, end of year	(1,086,276)
Sale of raw material	(394,927)
Transferred to expenses	(63,983)
Direct material used	4,230,376
Direct labor	188,651
Manufacturing expenses (Refer to 15)	409,826
Manufacturing cost	4,828,853
Add: Work in process, beginning of year	210,808
Less: Work in process, end of year	(250,066)
Cost of finished goods	4,789,595
Add: Finished goods, beginning of year	960,206
Finished goods purchased	2,653,488
Transferred from manufacturing expense	6,808
Others	(19,509)
Less: Finished goods, end of year	(1,123,631)
Transferred to raw material	(2,293,739)
Cost of sales of goods manufactured (A)	4,973,218
Cost of sales of goods purchased
Merchandise purchased	1,423,100
Add: Merchandise, beginning of year	201,612
Less: Merchandise, end of year	(265,755)
Transferred to expenses	(4,497)
Cost of sales of goods purchased (B)	1,354,460
Cost from sale of raw material (C)	394,927
Operating Costs (D)=(A)+(B)+(C)	6,722,605
Gains on valuation (E)	(18,655)
Loss on scrap of inventories (F)	39,254
Revenue from sale of scraps (G)	(499)
Purchased on behalf of others (H)	(357,515)
Other operating cost (I)	35,282
Construction costs (J)	140,885
Total(K)=(D)+(E)+(F)+(G)+(H)+(I)+(J)	$6,561,357

111

SINBON ELECTRONICS CO., LTD.
15. STATEMENT OF MANUFACTURING EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Indirect labor	$114,955
Depreciation expense	80,805
Processing costs	49,781
Insurance expense	43,580
Meal expense	24,072
Others (Note)	103,441
Less: Transferred to finished goods	(6,808)
Total	$409,826

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

112

SINBON ELECTRONICS CO., LTD.
16. STATEMENT OF OPERATING EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2025

(In Thousands of New Taiwan Dollars)

Item	Selling and Marketing Expenses	General and Administrative Expenses	Research and Development Expenses	Total
Payroll expense	$142,797	$207,677	$243,188	$593,662
Commission	61,103	-	-	61,103
Depreciation expense	12,789	40,057	23,723	76,569
Insurance expense	18,426	35,011	27,551	80,988
Freight expense	59,503	5,350	286	65,139
Sample expense	82,211	-	-	82,211
Service expense	3	62,188	768	62,959
Others (Note)	71,007	186,591	85,832	343,430
Total	$447,839	$536,874	$381,348	$1,366,061

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

113

AI assistant

SINBON Electronics Audit Report / Information 2026

52256_rns_2026-04-22_1e4f4a9c-7ee6-4557-b002-57ccd7e6b57d.pdf

Independent Auditors’ Report Translated from Chinese

Opinion

Basis for Opinion

Key Audit Matters

1. Valuation for inventories (Including inventories of the subsidiaries under the equity method)

2. Impairment of accounts receivable

Other Matter– Making Reference to the Audits of Other Auditors

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

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

Notice to Readers

Financial asset measured at fair value through profit or loss

(b) Impairment of financial assets

Equity instruments

Compound instruments

Financial liabilities

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

(e) Offsetting of financial instruments

(8) Derivative instrument

Company as a lessee

Company as a lessor

Sale of goods

Rendering of services

Construction revenues

(18) Borrowing costs

(19) Post-employment benefits

Deferred tax

Significant transactions with related parties

(1) Sales

(2) Purchases

Interest rate risk

Equity price risk

(4) Credit risk management

AI assistant

SINBON Electronics — Audit Report / Information 2026

52256_rns_2026-04-22_1e4f4a9c-7ee6-4557-b002-57ccd7e6b57d.pdf

Independent Auditors’ Report Translated from Chinese

Opinion

Basis for Opinion

Key Audit Matters

1. Valuation for inventories (Including inventories of the subsidiaries under the equity method)

2. Impairment of accounts receivable

Other Matter– Making Reference to the Audits of Other Auditors

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

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

Notice to Readers

Financial asset measured at fair value through profit or loss

(b) Impairment of financial assets

Equity instruments

Compound instruments

Financial liabilities

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

(e) Offsetting of financial instruments

(8) Derivative instrument

Company as a lessee

Company as a lessor

Sale of goods

Rendering of services

Construction revenues

(18) Borrowing costs

(19) Post-employment benefits

Deferred tax

Significant transactions with related parties

(1) Sales

(2) Purchases

Interest rate risk

Equity price risk

(4) Credit risk management

More from SINBON Electronics

SINBON Electronics Audit Report / Information 2026