Stock Code:4569

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Report For the Years Ended December 31, 2025 and 2024

Address: P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Cayman KY1-1205 Cayman Islands.

Telephone: +66-38-570029

The independent auditors' report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and consolidated financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Consolidated Balance Sheets	4
5. Consolidated Statements of Comprehensive Income	5
6. Consolidated Statements of Changes in Equity	6
7. Consolidated Statements of Cash Flows	7
8. Notes to the Consolidated Financial Statements
(1) Company history	8
(2) Approval date and procedures of the consolidated financial statements	8
(3) New standards, amendments and interpretations adopted	8~10
(4) Summary of material accounting policies	10~25
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	25
(6) Explanation of significant accounts	26~49
(7) Related-party transactions	49~50
(8) Pledged assets	50
(9) Commitments and contingencies	50
(10) Losses due to major disasters	51
(11) Subsequent events	51
(12) Other	51
(13) Other disclosures
(a) Information on significant transactions	51~53
(b) Information on investees	53
(c) Information on investment in mainland China	53
(14) Segment information	53~54

KPMG

多快速索群合作計算學答題

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Sixxon Tech. Co., Ltd.:

Opinion

We have audited the consolidated financial statements of Sixxon Tech. Co., Ltd. and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2025 and 2024, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audits of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Operating Revenue

Please refer to note 4(n) “Revenue” of the consolidated financial statements for the accounting policy related to recognition of the operating revenue. Please refer to note 6(p) “Revenue from contracts with customers” of the consolidated financial statements for accounting information related to revenue recognition.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG
3-1

Description of key audit matter:

Sixxon Tech. Co., Ltd. and its subsidiaries are primarily engaged in manufacturing and sales of automotive components, the amount and changes in operating revenue may affect users' understanding of the overall financial statements. Sales revenue is the main indicator of whether the company's financial goals have been achieved. In order to meet investor expectations, sales revenue influences management's business decisions. The transaction terms involve many manual operations and judgments, and each sale requires confirmation that control of the goods has been transferred to the customer. Therefore, there is a significant risk of material misstatement due to either fictitious revenue or incorrect judgment of the timing of revenue recognition around the balance sheet date. This requires auditors to pay close attention, making it the key audit matter for this audit.

Audit procedure:

Our principal audit procedures included: understanding and assessing the accounting policy for operating revenue; understanding and evaluating the operating effectiveness of internal controls related to the recognition and cut-off of sales revenue; inspecting the terms of sales contracts; testing the effectiveness of internal controls over revenue recognition; verifying supporting documents related to sales revenue; and performing sales cut-off testing around the balance sheet date to assess whether the Group's operating revenue was accurate and recorded in the appropriate accounting period.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Group's financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 consolidated 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 consolidated 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.

KPMG

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 Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Wang, I-Wen and Kuo, Kuan-Ying.

KPMG

Taipei, Taiwan (Republic of China)

March 16, 2026

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and its cash flows in accordance with the 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 consolidated financial statements are those generally accepted and applied in the Republic of China.

The auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2025		December 31, 2024		Liabilities and Equity	December 31, 2025		December 31, 2024
		Amount	%	Amount			%	Amount	%	Amount	%
Current assets:						Current liabilities:
1100	Cash and cash equivalents (note (6)(a))	$ 835,252	23	761,251	23	2170	Accounts payable	$ 78,901	2	112,649	3
1110	Current financial assets at fair value through profit or loss (note (6)(b))	141,734	4	-	-	2200	Other payables (note (6)(j))	60,667	2	223,309	7
1136	Current financial assets at amortized cost (note (6)(c))	31,430	1	131,140	4	2230	Current income tax liabilities	36	-	106	-
1170	Accounts receivable, net (including related parties) (note (6)(d))	459,444	13	392,905	12	2280	Current lease liabilities	665	-	572	-
1310	Inventories, net (note (6)(e))	334,735	9	316,725	10	2300	Other current liabilities	19,865	1	21,105	1
1470	Other current assets (note (6)(h))	61,725	2	73,762	2	Non-current liabilities:		160,134	5	357,741	11
		1,864,320	52	1,675,783	51	2531	Bonds payable (note (6)(k))	475,388	13	-	-
Non-current assets:						2580	Non-current lease liabilities	573	-	-	-
1510	Non-current financial assets at fair value through profit or loss (notes (6)(b) and (k))	18,858	1	13,073	-	2600	Provisions for employee benefits, non-current (note (6)(l))	147,342	4	121,994	4
1600	Property, plant and equipment (notes (6)(f) and (8))	1,585,692	45	1,534,031	47	Total liabilities		783,437	22	479,735	15
1755	Right-of-use assets	1,234	-	612	-	Equity (notes (6)(k) and (n)):
1780	Intangible assets (note (6)(g))	13,005	-	3,652	-	Equity attributable to owners of parent :
1900	Other non-current assets (notes (6)(h), (7) and (8))	82,155	2	42,476	2	3100	Share capital	306,000	9	310,000	10
		1,700,944	48	1,593,844	49	3200	Capital surplus	1,929,187	54	1,946,655	60
						3310	Legal reserve	103,508	3	80,029	2
						3320	Special reserve	3,777	-	81,087	2
						3350	Unappropriated retained earnings	386,945	11	373,962	11
						3400	Other equity	76,988	2	(3,777)	-
						3500	Treasury shares	(26,557)	(1)	-	-
							Total equity attributable to owners of parent	2,779,848	78	2,787,956	85
						3600	Non-controlling interests	1,979	-	1,936	-
							Total equity	2,781,827	78	2,789,892	85
Total assets		$ 3,565,264	100	3,269,627	100	Total liabilities and equity		$ 3,565,264	100	3,269,627	100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

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

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue, net (note (6)(p))	$ 1,817,578	100	1,451,874	100
5000	Operating costs (notes (6)(e), (l) and (12))	1,438,934	79	1,130,417	78
	Gross profit from operations	378,644	21	321,457	22
	Operating expenses (notes (6)(l), (q), (7) and (12)):
6100	Selling expenses	78,002	4	80,048	5
6200	Administrative expenses	106,106	6	86,336	6
6300	Research and development expenses	46,570	3	63,384	4
6450	Expected credit losses (reversal gains) (notes (6)(d)and (r))	2,765	-	(2,927)	-
	Total operating expenses	233,443	13	226,841	15
6900	Operating income	145,201	8	94,616	7
	Non-operating income and expenses:
7100	Interest income	40,103	2	49,073	3
7190	Other income	2,316	-	192	-
7020	Other gains and losses	(1,828)	-	423	-
7230	Foreign exchange (losses) gains, net (note (6)(r))	(44,562)	(2)	104,099	7
7235	Losses on financial assets or liabilities at fair value through profit or loss (note (6)(r))	(1,322)	-	(2,730)	-
7510	Interest expense (note (6)(k))	(11,264)	(1)	(34)	-
7590	Miscellaneous disbursements	(1,932)	-	(217)	-
		(18,489)	(1)	150,806	10
7900	Profit before income tax	126,712	7	245,422	17
7950	Less: Income tax expenses (note (6)(m))	158	-	319	-
	Net profit	126,554	7	245,103	17
8300	Other comprehensive income:
8310	Items that will not be reclassified subsequently to profit or loss
8311	Remeasurements of defined benefit plans	(13,676)	-	(10,338)	-
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translation of foreign financial statements	80,843	4	77,469	5
8300	Other comprehensive income, net	67,167	4	67,131	5
8500	Total comprehensive income	$ 193,721	11	312,234	22
	Profit (loss), attributable to:
	Profit attributable to owners of parent	$ 126,589	7	245,129	17
	Profit (loss), attributable to non-controlling interests	(35)	-	(26)	-
	Net profit	$ 126,554	7	245,103	17
	Comprehensive income attributable to:
	Comprehensive income, attributable to owners of parent	$ 193,678	11	312,101	22
	Comprehensive income, attributable to non-controlling interests	43	-	133	-
		$ 193,721	11	312,234	22
	Earnings per share (note (6)(o)):
9750	Basic earnings per share (NT dollars)	$	4.13		7.91
9850	Diluted earnings per share (NT dollars)	$	4.13		7.90

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2024

Appropriation and distribution of retained earnings:

Legal reserve appropriated

Reversal of special reserve appropriated

Cash dividends of ordinary share

Profit (loss) for the year months ended December 31, 2024

Other comprehensive income for the year months ended December 31, 2024

Comprehensive income for the year months ended December 31, 2024

Cash dividends distributed from capital surplus

Changes in non-controlling interests

Balance at December 31, 2024

Appropriation and distribution of retained earnings:

Legal reserve appropriated

Reversal of special reserve appropriated

Cash dividends of ordinary share

Profit (loss) for the year months ended December 31, 2025

Other comprehensive income for the year months ended December 31, 2025

Comprehensive income for the year months ended December 31, 2025

Recognition of equity component due to issuance of convertible bonds

Cash dividends distributed from capital surplus

Purchase of treasury share

Cancellation of treasury share

Balance at December 31, 2025

Ordinary share	Capital surplus	Retained earnings			Other equity Exchange differences on translation of foreign financial statements	Treasury shares	Total equity attributable to owners of parent	Non-controlling interests	Total equity
		Legal reserve	Special reserve	Unappropriated retained earnings
$ 310,000	1,993,155	71,053	97,483	224,751	(81,087)	-	2,615,355	-	2,615,355
-	-	8,976	-	(8,976)	-	-	-	-	-
-	-	-	(16,396)	16,396	-	-	-	-	-
-	-	-	-	(93,000)	-	-	(93,000)	-	(93,000)
-	-	-	-	245,129	-	-	245,129	(26)	245,103
-	-	-	-	(10,338)	77,310	-	66,972	159	67,131
-	-	-	-	234,791	77,310	-	312,101	133	312,234
-	(46,500)	-	-	-	-	-	(46,500)	-	(46,500)
-	-	-	-	-	-	-	-	1,803	1,803
310,000	1,946,655	80,029	81,087	373,962	(3,777)	-	2,787,956	1,936	2,789,892
-	-	23,479	-	(23,479)	-	-	-	-	-
-	-	-	(77,310)	77,310	-	-	-	-	-
-	-	-	-	(124,000)	-	-	(124,000)	-	(124,000)
-	-	-	-	126,589	-	-	126,589	(35)	126,554
-	-	-	-	(13,676)	80,765	-	67,089	78	67,167
-	-	-	-	112,913	80,765	-	193,678	43	193,721
-	56,606	-	-	-	-	-	56,606	-	56,606
-	(49,600)	-	-	-	-	-	(49,600)	-	(49,600)
-	-	-	-	-	-	(84,792)	(84,792)	-	(84,792)
(4,000)	(24,474)	-	-	(29,761)	-	58,235	-	-	-
$ 306,000	1,929,187	103,508	3,777	386,945	76,988	(26,557)	2,779,848	1,979	2,781,827

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from operating activities:
Profit before income tax	$ 126,712	245,422
Adjustments:
Depreciation expense	229,502	185,310
Amortization expense	2,597	1,624
Expected credit losses (reversal gain)	2,765	(2,927)
Losses on financial assets or liabilities at fair value through profit or loss	1,322	2,730
Interest expense	11,264	34
Interest income	(40,103)	(49,073)
Gain on disposal of property, plant and equipment	(439)	(423)
Others	2,279	-
Total adjustments to reconcile profit	209,187	137,275
Changes in operating assets and liabilities:
Increase in financial assets or liabilities at fair value through profit or loss	-	(3,798)
Increase in accounts receivable (including related parties)	(69,678)	(59,836)
Increase in inventories	(18,010)	(79,276)
Decrease (increase) in other current assets	10,206	(44,237)
(Decrease) increase in accounts payable	(33,748)	64,366
Increase in accrued expenses and other payables	3,609	8,296
(Decrease) increase in other current liabilities	(8,740)	17,701
Increase in provisions for employee benefits	11,672	10,649
	(104,689)	(86,135)
Total adjustments	104,498	51,140
Cash inflow generated from operations	231,210	296,562
Interest received	41,919	50,304
Interest paid	(132)	(34)
Income taxes paid	(228)	(411)
Net cash flows from operating activities	272,769	346,421
Cash flows used in investing activities:
Acquisition of financial assets at fair value through profit or loss	(140,341)	(15,000)
Proceeds from disposal of financial assets at amortised cost	96,287	65,979
Acquisition of property, plant and equipment	(397,513)	(409,010)
Proceeds from disposal of property, plant and equipment	483	744
Acquisition of intangible assets	(410)	(1,792)
Decrease (increase) in other non-current assets	1,145	(629)
Increase in prepayments of equipment	(40,824)	(29,189)
Net cash flows used in investing activities	(481,173)	(388,897)
Cash flows from financing activities:
Proceeds from issuance of convertible bonds	519,850	-
Payment of lease liabilities	(680)	(662)
Cash dividends paid	(173,600)	(139,500)
Payments to acquire treasury shares	(84,792)	-
Change in non-controlling interests	-	1,803
Net cash flows from (used in) financing activities	260,778	(138,359)
Effect of exchange rate changes on cash and cash equivalents	21,627	(26,069)
Net increase (decrease) in cash and cash equivalents	74,001	(206,904)
Cash and cash equivalents at beginning of period	761,251	968,155
Cash and cash equivalents at end of period	$ 835,252	761,251

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Sixxon Tech. Co., Ltd. (the "Company") was incorporated on January 20, 2020, and registered in British Cayman Islands. The main purpose of the establishment was to restructure the organization for the application of listing on the Taiwan Stock Exchange ("TWSE") in the Republic of China. On March 30, 2020, the Company acquired all issued and outstanding ordinary shares of Global Thaixon Precision Industry CO., LTD. ("GT"), Thaixon Tech CO., LTD. ("TT") and Caltech (Hong Kong) LTD. ("Caltech"). The Company became the holding company of GT, TT and Caltech after restructuring the Group. GT, TT and Caltech are mainly engaged in designing, manufacturing, processing and selling of automotive, industrial, 3C and medical related components. The Company's shares have been listed and traded on the Taiwan Stock Exchange since July 31, 2023.

(2) Approval date and procedures of the consolidated financial statements:

The consolidated financial statements were authorized for issue by the Board of Directors on March 12, 2026.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

Amendments to IAS21 "Lack of Exchangeability"

(b) The impact of the IFRS Accounting Standards endorsed by the FSC but not yet effective.

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements:

IFRS 17 "Insurance Contracts" and amendments to IFRS 17 "Insurance Contracts"
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.

• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027
note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C.

(b) Basis of preparation

(i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis.

1) Financial assets at fair value through profit or loss are measured at fair value;
2) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note 4(o).

(ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(c) Basis of consolidation

(i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries.

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

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of investor	Name of subsidiary	Principal activity	Percentage of Ownership		Description
			December 31, 2025	December 31, 2024

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements.

The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

(ii) List of the subsidiaries in the consolidated financial statements:

Name of investor	Name of subsidiary	Principal activity	Percentage of Ownership		Description
			December 31, 2025	December 31, 2024
The Company	GT	Design, manufacture, processing and sale of automotive, industrial, 3C and medical related components.	100 %	100 %
〃	TT	Design, manufacture, processing and sale of automotive, industrial and 3C related components.	- %	100 %	Note 3
〃	Caltech	Sale of automotive related components.	100 %	100 %
〃	Singxon Pte.Ltd. (SX)	General investment.	100 %	100 %	Note 2
GT	Align Co., Ltd (Align)	Sale of medical related equipment and components.	49 %	49 %	Note 1

Note 1: This subsidiary is a new investment by GT in March 2024. The Group simultaneously controls its operating and financial activities, and assessed that it has substantial control, thus it is included in the consolidated financial statements as a subsidiary.

Note 2: This subsidiary is a new investment by the Company in December 2024. The Group simultaneously controls its operating and financial activities, and assessed that it has substantial control, thus it is included in the consolidated financial statements as a subsidiary.

Note 3: The subsidiaries GT and TT were merged on August 1, 2025, through an absorption merger. GT is the surviving entity after the merger, and TT was dissolved.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(d) Foreign currencies

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(e) Classification of current and non-current assets and liabilities

The Group classifies the asset as current under one of the following criteria, and all other assets are classified as non current.

(i) It expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

(ii) It holds the asset primarily for the purpose of trading;

(iii) It expects to realize the asset within twelve months after the reporting period; or

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Group classifies the liability as current under one of the following criteria, and all other liabilities are classified as non current.

(i) It expects to settle the liability in its normal operating cycle;
(ii) It holds the liability primarily for the purpose of trading
(iii) The liability is due to be settled within twelve months after the reporting period; or
(iv) It 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.

(f) Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost or ;FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

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

Some trade receivables are held within a business model whose objective is achieved by both collecting contractual cash flows and selling by the Group, therefore, those receivables are measured at FVOCI. However, they are included in the ‘trade receivables’ line item.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, other receivables, guarantee deposit paid and other financial assets).

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date; and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for accounts receivable and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group's historical experience and informed credit assessment as well as forward-looking information.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 60 days past due.

The Group considers a financial asset to be in default when the financial asset is more than 180 days past due or the debtor is unlikely to pay its credit obligations to the Group in full.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of 'investment grade which is considered to be BBB- or higher per Standard & Poor's, Baa3 or higher per Moody's or twA or higher per Taiwan Ratings'.

Lifetime ECL are the ECL that result from all possible default events over the expected life of a financial instrument.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

12-month ECL are the portion of ECL that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk.

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECL are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer ;
a breach of contract such as a default or being more than 180 days past due ;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider ;
it is probable that the borrower will enter bankruptcy or other financial reorganization ; or
the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

4) Compound financial instruments

Compound financial instruments issued by the Group comprise convertible bonds denominated in NTD that can be converted to ordinary shares at the option of the holder, when the number of shares to be issued is fixed and does not vary with changes in fair value.

The liability component of compound financial instruments is initially recognized at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognized at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not remeasured.

Interest related to the financial liability is recognized in profit or loss. On conversion at maturity, the financial liability is reclassified to equity and no gain or loss is recognized.

5) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

6) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

7) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(iii) Derivative financial instruments

The Group holds derivative financial instruments to hedge its foreign currency and interest rate exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(i) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straightline basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1) Buildings and construction : 5~20 years
2) Machinery and equipment : 5~10 years
3) Office equipment and others : 3~8 years

Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.

(j) Leases

(i) Identifying a lease

At inception of a contract, the Group assesses whether a 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.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

fixed payments, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
amounts expected to be payable under a residual value guarantee; and
payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

there is a change in future lease payments arising from the change in an index or rate; or
there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or
there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
there is a change of its assessment on whether it will exercise a extension or termination option; or
there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of other office equipment that have a lease term of 12 months or less and leases of low-value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(iii) As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(k) Intangible assets

(i) Recognition and measurement

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Intangible assets that are acquired by the Group and have finite useful lives are measured at cost, less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

(iii) Amortization

Except for goodwill, amortization is calculated at the cost of the asset less its estimated residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful life of computer software, which is estimated to be 5 years from the date the software reaches the state of ready-for-use.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(l) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(m) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

A provision for warranties is recognized when the underlying products or services are sold, based on historical warranty data and a weighting of all possible outcomes against their associated probabilities.

(n) Revenue

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Sale of goods

The Group sells automotive, industrial, 3C and medical related components, etc. The Group recognizes revenue when control of the products has been transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

2) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(o) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an discounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(p) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

(i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

(ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) the same taxable entity; or
2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(q) Earnings per share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, such as convertible bonds and employee compensation.

(r) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparing these consolidated financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period.

There are no critical judgments in applying accounting policies that have significant effect on the amounts recognized in the consolidated financial statements.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows:

Inventories are supposed to be measured based on the lower of cost or net realizable value, management must exercise judgment and estimation to determine the net realizable value of inventories at the balance sheet date. Management evaluates the amounts of decline in inventories due to obsolescence or decline in market selling value on the balance sheet date, and reduces the cost of inventories to net realizable value.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash in hand	$ 20	28
Checking accounts and demand deposits	209,394	171,154
Time deposits	625,838	590,069
	$ 835,252	761,251

Please refer to note (6)(r) for the disclosure of the credit risk and the currency risk of the financial assets of the Group.

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

(i) The details as follows:

	December 31, 2025	December 31, 2024
Financial assets mandatory measured at fair value through profit or loss-current:
Non-derivative financial assets
Ordinary corporate bond	$ 141,734	-
Financial assets mandatory measured at fair value through profit or loss-non-current:
Non-derivative financial assets
Private equity investment	$ 18,558	13,073
Embedded derivative instruments
Call options of convertible bonds	300	-
Total	$ 18,858	13,073

As of December 31, 2025 and 2024, both the financial assets and liabilities at fair value through profit or loss had not been pledged as collateral.

The Group’s information of currency risk and fair value of financial instruments, please refer to note (6)(r).

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2025	December 31, 2024
Current
Time deposits with original maturities of more than three months and less than one year	$ 31,430	131,140

For credit risk, please refer to note (6)(r).

As of December 31, 2025 and 2024, the financial assets measured at amortized cost had not been pledged as collateral.

(d) Accounts receivable (including related parties)

	December 31, 2025	December 31, 2024
Accounts receivable (including related parties) –measured at amortized cost	$ 462,929	393,251
Less: loss allowance	(3,485)	(346)
	$ 459,444	392,905

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivable has been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowances were determined as follows:

	December 31, 2025
	Gross carrying amount	Weighted-average loss rate	Loss allowance
0 to 60 days	$ 448,414	-%	-
61 to 90 days	5,156	0.99%	51
91 to 120 days	3,308	3.36%	111
121 to 150 days	412	15.05%	62
151 to 180 days	86	19.77%	17
More than 181 days	5,553	58.42%	3,244
	$ 462,929		3,485

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance
0 to 60 days	$ 388,364	-%	-
61 to 90 days	3,006	1.00%	30
91 to 120 days	1,107	10.03%	111
121 to 150 days	76	15.79%	12
151 to 180 days	631	19.97%	126
More than 181 days	67	100.00%	67
	$ 393,251		346

The movements in the loss allowance for accounts receivable were as follows:

	For the years ended December 31
	2025	2024
Balance at January 1	$ 346	3,285
Impairment losses (reversed) recognized	2,751	(2,927)
Effect of movements in exchange rates	388	(12)
Balance at December 31	$ 3,485	346

As of December 31, 2025 and 2024, the accounts receivable had not been pledged as collateral.

(e) Inventories

(i) The details of inventories were as follows:

	December 31, 2025	December 31, 2024
Raw materials	$ 123,658	123,387
Semi-finished goods and work in progress	47,676	48,438
Finished goods	163,401	144,900
	$ 334,735	316,725

(ii) The details of the cost of sales for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Cost of sales and expense	$ 1,387,127	1,110,382
Provision for inventory valuation loss and obsolescence	21,775	10,453
Idle capacity and others	37,542	18,214
Revenue from sale of scraps	(7,510)	(8,632)
	$ 1,438,934	1,130,417
		(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) As of December 31, 2025 and 2024, the inventories had not been pledged as collateral.

(f) Property, plant and equipment

The cost and depreciation of the property, plant and equipment of the Group for the years ended December 31, 2025 and 2024 were as follows:

	Land	Buildings and construction	Machinery and equipment	Office equipment and others	Construction in progress and testing equipment	Total
Cost:
Balance at January 1, 2025	$ 346,421	461,059	2,242,145	182,893	481,424	3,713,942
Additions	-	1,720	63,417	3,796	162,329	231,262
Reclassification	-	206,530	351,916	60,628	(630,042)	(10,968)
Disposals	-	(2,730)	(12,947)	(2,275)	-	(17,952)
Effect of movements in exchange rates	14,256	29,564	112,260	10,719	(4,291)	162,508
Balance at December 31, 2025	$ 360,677	696,143	2,756,791	255,761	9,420	4,078,792
Balance at January 1, 2024	$ 324,605	409,956	2,031,697	161,863	10,917	2,939,038
Additions	-	20,629	90,886	10,095	456,477	578,087
Reclassification	-	1,790	7,516	-	(9,306)	-
Disposals	-	-	(26,896)	(420)	-	(27,316)
Effect of movements in exchange rates	21,816	28,684	138,942	11,355	23,336	224,133
Balance at December 31, 2024	$ 346,421	461,059	2,242,145	182,893	481,424	3,713,942
Depreciation and impairments loss:
Balance at January 1, 2025	$ -	299,899	1,752,408	127,604	-	2,179,911
Depreciation	-	28,959	182,631	17,188	-	228,778
Impairments loss	-	-	2,267	-	-	2,267
Disposals	-	(2,701)	(12,942)	(2,265)	-	(17,908)
Effect of movements in exchange rates	-	13,694	80,344	6,014	-	100,052
Balance at December 31, 2025	$ -	339,851	2,004,708	148,541	-	2,493,100
Balance at January 1, 2024	$ -	261,859	1,518,813	107,986	-	1,888,658
Depreciation	-	19,458	152,984	12,134	-	184,576
Disposals	-	-	(26,634)	(361)	-	(26,995)
Effect of movements in exchange rates	-	18,582	107,245	7,845	-	133,672
Balance at December 31, 2024	$ -	299,899	1,752,408	127,604	-	2,179,911
Carrying amounts:
Balance at December 31, 2025	$ 360,677	356,292	752,083	107,220	9,420	1,585,692
Balance at January 1, 2024	$ 324,605	148,097	512,884	53,877	10,917	1,050,380
Balance at December 31, 2024	$ 346,421	161,160	489,737	55,289	481,424	1,534,031

For business development needs, a subsidiary of the Group, GT, signed contracts with third parties for the expansion of its factory and office. As of December 31, 2025, the expansions of the office and factory had been completed.

As of December 31, 2025 and 2024, part of the Group's property, plant and equipment had been pledged as collaterals for its credit lines of borrowings, please refer to note (8).

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(g) Intangible assets

The cost and amortization of intangible assets of the Group for the years ended December 31, 2025 and 2024, were as follows:

	Computer software
Costs:
Balance at January 1, 2025	$ 27,142
Additions	410
Reclassification	10,968
Effect of movements in exchange rates	1,656
Balance at December 31, 2025	$ 40,176
Balance at January 1, 2024	$ 23,724
Additions	1,792
Effect of movements in exchange rates	1,626
Balance at December 31, 2024	$ 27,142
Accumulated amortization:
Balance at January 1, 2025	$ 23,490
Amortization	2,597
Effect of movements in exchange rates	1,084
Balance at December 31, 2025	$ 27,171
Balance at January 1, 2024	$ 20,416
Amortization	1,624
Effect of movements in exchange rates	1,450
Balance at December 31, 2024	$ 23,490
Carrying amounts:
Balance at December 31, 2025	$ 13,005
Balance at January 1, 2024	$ 3,308
Balance at December 31, 2024	$ 3,652

As of December 31, 2025 and 2024, the Group's intangible assets had not been pledged as collateral.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(h) Other current assets and other non-current assets

The other assets of the Group were as follows:

	December 31, 2025	December 31, 2024
Prepayments of equipment	$ 73,809	32,985
Supplies inventory	20,877	11,414
Tax refund receivables	17,014	22,056
Payment in advance	9,142	11,135
Restricted deposits	7,122	8,724
Other receivables	2,295	4,301
Input tax	1,139	19,919
Others	12,482	5,704
	$ 143,880	116,238
Other current assets	61,725	73,762
Other non-current assets	82,155	42,476
	$ 143,880	116,238

As of December 31, 2025 and 2024, part of the Group’s other assets were provided as collaterals for its loans, please refer to note (8).

(i) Short-term borrowings

The short-term borrowings of the Group were as follow:

	December 31, 2025	December 31, 2024
Unused credit lines	$ 250,475	240,575
Range of interest rates	3.4%~6.6%	3.90%~7.34%

Please refer to note (8) for the information about the Group providing assets as collaterals for its short-term borrowings and credit lines.

(j) Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses payables	$ 17,722	14,850
Equipment and constructions payables	12,875	179,126
Utilities payables	5,460	5,336
Freight payable	4,121	6,490
Professional service fees payable	4,350	4,155
Others	16,139	13,352
	$ 60,667	223,309

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(k) Bonds payable

On January 15, 2025, the Group issued the Republic of China’s first unsecured convertible bonds. The details were as follows:

(i) Details of bonds payable:

	December 31, 2025
Total amount of issued convertible bonds	$ 500,000
Unamortized discount on bonds payable	(24,612)
Ending balance of bonds payable	$ 475,388
Embedded derivative – call options (recorded as financial assets at fair value through profit or loss – non-current)	$ 300
Equity component – conversion options (recorded as capital surplus – share options)	$ 56,606
	2025
Embedded derivative – call options (recorded as (losses) gains on financial assets or liabilities at fair value through profit or loss)	$ (700)
Interest expense	$ (11,132)

(ii) The Company separated the conversion options from the liability component and recognized them separately as equity and liability. The related information was as follows:

	First convertible bonds
Compound interest present value of the principal of the convertible bonds at issuance	$ 469,950
Embedded derivative financial asset at issuance – call options	(1,000)
Equity component at issuance	57,300
Total amount of bonds payable at issuance	$ 526,250
Issuance costs	$ 6,400

The effective interest rate of the unsecured convertible bonds was 2.4749%.

The key terms of the convertible bonds issued were as follows:

1) Coupon rate: 0%
2) Term: 3 years (January 15, 2025 to January 15, 2028)

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Redemption terms

Within the period between three months after the issuance date (April 16, 2025) and 40 days before the last convertible date (December 6, 2027), if the closing price of the Company's common shares listed on the Taipei Exchange exceeds 30% of the conversion price for 30 consecutive business days, or if the remaining amount of the convertible bonds that have not been redeemed, repurchased, resold, or converted, is less than 10% of the total par value, then the Company could redeem the bonds at par value of the corporate bonds in cash within the next 5 business days on the base date.

4) Conversion terms

a) Bondholders may request to convert their convertible bonds into the Company's common shares at any time from the day after three months following the issuance date (April 16, 2025) until the maturity date (January 15, 2028), except for the following periods: the period in which transfer common shares is suspended by laws, the period starts from 15 business days before the book closure date for issuance of the bonus shares, book closure date for cash dividends, book closure date for rights issue, to the record date for distribution of entitlements, the period starts from the base date of capital reduction to the day before the transaction of reissue of shares after the capital reduction, the period starts from the starting date of the suspension of conversion for the change of the share's par value to the date before the trading date of the reissuance shares.

b) Conversion price:

The initial conversion price at issuance of NT$212 per share was adjusted to NT$203.9 per share on August 15, 2025 due to earnings distribution, with the approval of the board on July 10, 2025.

(l) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

	December 31, 2025	December 31, 2024
Net defined benefit obligations	$ 147,342	121,994

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Group were as follows:

	2025	2024
Defined benefit obligations at January 1	$ 121,994	101,007
Current service costs and interest	7,637	7,269
Benefits paid by the plan	(1,446)	(3,631)
Remeasurements of the net defined benefit liability
— Actuarial gains and losses arising from experience adjustments	13,676	10,338
Effective of movement in exchange rates	5,481	7,011
Defined benefit obligation on December 31	$ 147,342	121,994

2) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

	2025	2024
Current service costs	$ 5,448	4,964
Net interest of net liabilities for defined benefit obligations	2,189	2,305
	$ 7,637	7,269
Operating cost	$ 4,749	4,615
Operating expense	2,888	2,654
	$ 7,637	7,269

3) Actuarial assumptions

The principal actuarial assumptions of the Group at the reporting date were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.65%	2.24%
Future salary increasing rate	4.25%	4.00%

The expected allocation payment to be made by the Group to the defined benefit plan for the one-year period after the reporting date for 2025 is $41,363.

The weighted-average lifetime of the defined benefit plan is 8.98 years.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

4) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

	Influences of the defined benefit obligation
	Increased 0.25%	Decreased 0.25%
December 31, 2025:
Discount rate (variance 0.25%)	$ (2,216)	2,280
Future salary increasing rate(variance 0.25%)	2,217	(2,166)
December 31, 2024:
Discount rate (variance 0.25%)	(1,832)	1,886
Future salary increasing rate(variance 0.25%)	1,849	(1,805)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

(ii) Defined contribution plans

The Group allocates 3%~6% of each employee’s monthly wages to the labor pension personal account at Tisco Asset Management Co., Ltd. in accordance with the provisions of the Thailand Provident Fund ACT.

The Group recognized the pension costs under the defined contribution method amounting to $3,916 and $3,262 for the years ended December 31, 2025 and 2024, respectively. Payment was made to Tisco Asset Management Co., Ltd..

(m) Income taxes

(i) The Company was registered in the Cayman Islands and is not required to pay any profit-seeking enterprise income tax under the local laws and regulations. Within the Group, GT and TT were exempted from tax for their main business lines, with varying tax exemption periods depending on the products, in accordance with the Investment Promotion Act of Thailand, and with the approval of the Thailand Board of Investment. As of December 31, 2025, the Group’s tax exemption periods range from October 2026 to October 2031. Other entities within the Group are subject to a 20% corporate income tax rate under the Thai tax regulations. Caltech’s income for the years ended December 31, 2025 and 2024 was generated outside of Hong Kong, and therefore, is not subject to corporate income tax under Hong Kong tax law.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Income tax expenses

The details of income tax expense were as follows:

	2025	2024
Current tax expense
Current period	$ 158	319
	2025	2024
Profit before tax	$ 126,712	245,422
Income tax using the local tax rate of the Company	25,342	49,084
Tax-exempt income	(25,184)	(48,765)
	$ 158	319

(iii) Assessment of tax

The Company is not required to pay income tax in the country which it is incorporated.

In Thailand, where GT and TT operate, the Group’s income tax returns are not subject for approval by the tax authorities, and the income tax return of GT for the year 2024 and that of TT for the year 2025 have been certified by the tax authorities. In Hong Kong, where Caltech operates, the corporate income tax returns have been filed through 2024.

(n) Capital and other equity

(i) Capital surplus

The balances of capital surplus were as follows:

	December 31, 2025	December 31, 2024
Share premium	$ 1,872,240	1,946,314
Share-based compensation cost	341	341
Recognition of equity component – share options due to issuance of convertible bonds	56,606	-
	$ 1,929,187	1,946,655

Subject to the Cayman Islands Company Law and the Company’s Articles, the Board of Directors may capitalize the Company's unissued shares by repaying in full to shareholders in proportion to their shareholdings as stock dividends using the capital reserves, other reserve accounts, profit and loss accounts, or other distributable funds.

Subject to any direction from the Company in general meeting, the directors may, on behalf of the Company, exercise all powers and options conferred by the Cayman Islands Company Law with respect to the capital reserve. Subject to compliance with the Cayman Islands Company Law, the directors may, on behalf of the Company, offset the accumulated losses using the capital reserve.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

On March 12, 2026, the Company's Board of Directors resolved to appropriate capital surplus and distribute cash dividends of NT$3.25 per share, totaling $99,450.

(ii) Retained earnings and earnings distribution

As the Company continues to grow, the need for capital expenditures, business expansion and a sound financial planning for sustainable development, it is the Company's dividends policy that the dividends may be allocated to the Shareholders in the form of cash dividends and/or bonus shares according to the Company's future expenditure budgets, funding needs and in response to changes in the economic climate and the industry. If the Board of Directors resolves on the distribution of profits, it shall draw up a plan and approve the distribution of profits by an ordinary resolution of the shareholders' meeting. The Board of Directors shall prepare such plan of distribution of profits in the following manner: (a) the Company shall provide for the payment of taxes payable in accordance with the law, (b) and the net profit for the year shall first make up the losses of previous years, if any. Secondly, (c) distribute the legal reserve in accordance with the Applicable Public Company Rules, unless the legal reserve has reached the Company's paid-in capital, and (d) distribute a special reserve in accordance with the Applicable Public Company Rules or at the request of the competent authorities. Unless otherwise provided by law and the Applicable Public Company Rules, current year profits, after deducting the amounts listed in (a) to (d) above and adding the cumulative undistributed retained earnings from prior years, are considered distributable earnings, and the Board of Directors may prepare a distribution plan and submit it to the shareholders' meeting for approval. The distribution of retained earnings may be distributed by way of cash dividends or stock dividends (with shares distributed to shareholders in proportion to the amount of retained earnings transferred to capital). If the Board of Directors resolves to distribute profits, the total amount of shareholders' dividends shall be at least 30% of the current year profits after deducting items (a) to (c) above, of which the total amount of cash dividends paid shall not be less than 50% of the total amount of shareholders' dividends.

Subject to Law, the Board of Directors may distribute all or part of the dividends and bonuses, legal reserve in cash and / or capital surplus arising from premium on issuance of capital stock or the fair value of donated assets received after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the General shareholders' meeting.

On March 14, 2025 and March 14, 2024, the Company's Board of Directors resolved to appropriate the 2024 and 2023 cash dividends from retained earnings and distribution of cash dividends from capital surplus. The details were as follows:

	2024		2023
	Amount per share (NTD)	Total amount	Amount per share (NTD)	Total amount
Dividends distributed to ordinary shareholders:
Cash dividends	$ 4.00	124,000	3.00	93,000
Cash dividends distributed from capital surplus	1.60	49,600	1.50	46,500
	$ 5.60	173,600	4.50	139,500

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

On March 12, 2026, the Company's Board of Directors resolved the appropriation of 2025 earnings and resolved not to distribute cash dividends.

(iii) Treasury shares

To facilitate the transfer of shares to employees and to maintain the Company’s credit standing, as well as to protect shareholders’ equity, the Board of Directors resolved on April 15, 2025 to repurchase treasury shares in accordance with Article 28-2 of the Securities and Exchange Act. The Company conducted its first and second treasury share repurchases, with the planned repurchase volumes being 400 thousand shares and 800 thousand shares, respectively. As of December 31, 2025, the Company had repurchased 204 thousand shares and 400 thousand shares under the first and second treasury share repurchase programs, respectively. The transfer of the first treasury shares to employees has not yet been completed, while the second treasury shares were resolved by the Board of Directors to be cancelled on August 28, 2025, with August 28, 2025, designated as the base date for the capital reduction.

In accordance with the Securities and Exchange Act, the number of shares repurchased shall not exceed 10% of the total issued shares of the Company, and the total repurchase amount shall not exceed the sum of retained earnings, share premium, and realized capital surplus. Shares repurchased for the purpose of transferring to employees must be transferred within three years from the date of acquisition; otherwise, such shares shall be deemed unissued and cancelled. Treasury shares may not be pledged and do not carry shareholder rights prior to their transfer.

(o) Earnings per share

The calculation of basic and diluted earnings per share were as follows:

	For the years ended December 31
	2025	2024
Basic earnings per share:
Profit attributable to ordinary shareholders of the Company	$ 126,589	245,129
Weighted-average number of outstanding ordinary shares (thousands)	30,624	31,000
Basic earnings per share (NT Dollars)	$ 4.13	7.91
Diluted earnings per share:
Profit attributable to ordinary shareholders of the Company	$ 126,589	245,129
Weighted-average number of outstanding ordinary shares (thousands)	30,624	31,000
Effect of dilutive potential ordinary shares:
Effect of employee share bonuses (thousands)	22	28
Adjusted weighted average number of ordinary shares outstanding (thousands)	30,646	31,028
Diluted earnings per share (NT Dollars)	$ 4.13	7.90

The convertible bonds issued by the company, which have anti-dilutive effect, were excluded from the calculation of diluted earnings per share for the years ended December 31, 2025.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Revenue from contracts with customers

(i) Disaggregation of revenue

	2025	2024
Primary geographical markets:
Thailand	$ 804,977	543,728
China	322,174	332,268
United States of America	188,050	138,247
Others	502,377	437,631
	$ 1,817,578	1,451,874
Major product lines:
Automotive	$ 1,026,872	882,364
Industry	517,048	394,181
3 C	135,813	104,116
Medical	137,845	71,213
	$ 1,817,578	1,451,874
	December 31, 2025	December 31, 2024
Accounts receivable	$ 462,929	393,251
Less: loss allowance	(3,485)	(346)
Total	$ 459,444	392,905

For the details of accounts receivable and loss allowance, please refer to note (6)(d).

(q) Remunerations to employees and directors

The Company should distribute no less than 2% of its net profit before employees' and directors' remuneration as employees' remuneration and no more than 2% of its net profit before employees' and directors' remuneration as directors' remuneration if the Company is profitable for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The remuneration to employees may be distributed in cash or in stocks, which may be distributed under an incentive program approved pursuant to the Company's Articles. The employees may include certain employees of the subsidiaries who meet the conditions prescribed by the Company.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024, the Company estimated its employee remuneration amounted to $2,608, and $5,049, respectively, and directors' remuneration amounted to $519, and $1,005, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remunerations to employees and directors of each period, multiplied by the percentage of remuneration of employees and directors, as specified in Company's Articles. These remunerations were expensed under operating expenses. If there are any subsequent adjustments to the actual remuneration amounts, the adjustments will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year.

For the years ended December 31, 2024, the estimated employee and directors' remuneration amounts are identical to those of the actual distributions. The related information is available on the Market Observation Post System website.

(r) Financial instruments

(i) Types of financial instruments

Financial assets

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss (including current and non-current)	$ 160,592	13,073
Financial assets measured at amortized cost:
Cash and cash equivalents	835,252	761,251
Accounts receivable, net	459,444	392,905
Other receivables	2,295	4,301
Time deposits with original maturities of more than three months	31,430	131,140
Restricted deposits (recognized as other non-current assets)	7,122	8,724
Refundable deposits (recognized as other non-current assets)	1,224	767
	$ 1,497,359	1,312,161

Financial liabilities

	December 31, 2025	December 31, 2024
Financial liabilities measured at amortized cost:
Accounts payable	$ 78,901	112,649
Other payables	60,667	223,309
Lease liabilities (including current and non-current)	1,238	572
Bonds payable	475,388	-
	$ 616,194	336,530

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Credit risk

1) Credit risk exposure

The carrying amount of financial assets represents the maximum amount exposed to credit risk.

2) Concentration of credit risk

Instead of concentrating on specific clients, the Group caters to wide variety of automotive, industrial, 3C and medical customers, resulting in the Group to have low credit risks of accounts receivable. In order to further reduce such risks, the Group continuously evaluates the financial positions of its customers and regularly reviews the recoverable amount of receivables to ensure the uncollectible amount are recognized appropriately as impairment loss, and the total amount of impairment loss was within management expectations.

3) Receivables credit risk

For credit risk exposure of accounts receivable, please refer to note (6)(d). Other financial assets at amortized cost, including other receivables and investment in bonds, are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses. Regarding how the financial instruments are considered to have low credit risk, please refer to note (4)(g) of the consolidated financial statements for the year ended December 31,2025.

The movement of loss allowance of other receivables for the years ended December 31, 2025 was as follows:

	Other receivables
Balance at January 1, 2025	$ -
Impairment loss recognized	14
Effects of movements in exchange rates	1
Balance at December 31, 2025	$ 15

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

	Carrying amount	Contractual cash flows	Within a year	1~2 years	Over 2 years
December 31, 2025
Non-derivative financial liabilities
Accounts payable	$ 78,901	(78,901)	(78,901)	-	-
Lease liabilities (including current and non-current)	1,238	(1,276)	(696)	(580)	-
Other payables	60,667	(60,667)	(60,667)	-	-
Bonds payable	475,388	(500,000)	-	-	(500,000)
	$ 616,194	(640,844)	(140,264)	(580)	(500,000)
December 31, 2024
Non-derivative financial liabilities
Accounts payable	$ 112,649	(112,649)	(112,649)	-	-
Lease liabilities (including current and non-current)	572	(580)	(580)	-	-
Other payables	223,309	(223,309)	(223,309)	-	-
	$ 336,530	(336,538)	(336,538)	-	-

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(iv) Currency risk

1) Exposure to foreign currency risk

The Group’s significant exposures to foreign currency risk were as follows:

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD
Financial assets
Monetary items
USD	2,147 USD/THB =31.37		67,480	2,916 USD/THB =34.07		95,601
EUR	4,265 EUR/THB =36.83		157,379	3,714 EUR/THB =35.48		126,796
USD	18,019 USD/TWD =31.43		566,337	22,338 USD/TWD =32.79		732,351
Financial liabilities
Monetary items
USD	2,416 USD/THB =31.37		75,935	1,424 USD/THB =34.07		46,686
EUR	28 EUR/THB =36.83		1,033	17 EUR/THB =35.48		580
JPY	39,679 JPY/THB =0.20		7,968	672,687 JPY/THB =0.22		141,197

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivables (including related parties), other receivables, financial assets measured at amortized cost, accounts payables and other payables that are denominated in foreign currency. An appreciation (depreciation) of 5% of each major foreign currency against Group entities’ functional currency as of December 31, 2025 and 2024 would have influenced the net profit before tax as follows:

	December 31, 2025	December 31, 2024
USD (against the THB)
Appreciation 5%	$ (423)	2,446
Depreciation 5%	423	(2,446)
EUR (against the THB)
Appreciation 5%	7,817	6,311
Depreciation 5%	(7,817)	(6,311)
USD (against the TWD)
Appreciation 5%	28,317	36,618
Depreciation 5%	(28,317)	(36,618)
JPY (against the THB)
Appreciation 5%	(398)	(7,060)
Depreciation 5%	398	7,060

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the years ended 2025 and 2024, foreign exchange gains (including realized and unrealized portions) were as follows:

	2025	2024
Net foreign exchange (loss) gains	(44,562)	104,099

(v) Interest rate analysis

The exposure to interest rate risk for financial assets and liabilities refers to the management of liquidity risk in this note.

The following sensitivity analysis is based on the exposure to the interest rate risk of non-derivative financial instruments on the reporting date. Regarding the liabilities with variable interest rates, the analysis is on the basis of the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.25% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

If the interest rate had increased or decreased by 0.25%, the Group's profit before tax for the years ended 2025 and 2024 would have increased or decreased by $523 and $428, respectively. This change would have primarily resulted from the Group's exposure to variable interest rates on checking and demand deposits account.

(vi) Fair value of financial instruments

1) Financial instruments measured at fair value

Except as described in the following paragraphs, carry amount of cash and cash equivalents, financial assets measured at amortized cost, account receivables and other receivables, restricted assets, refundable deposits, accounts payables, lease liabilities and other financial liabilities are reasonably close to the fair value.

	December 31, 2025
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit and loss :
Non-derivative financial assets – ordinary corporate bond	$ 141,734	-	141,734	-	141,734
Non-derivative financial assets – private equity investments	18,558	-	-	18,558	18,558
Derivative financial assets – call options of convertible bonds	300	-	-	300	300
	$ 160,592
	December 31, 2024
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit and loss – non-current:
Non-derivative financial assets – private equity investments	$ 13,073	-	-	13,073	13,073

2) Valuation techniques for financial instruments measured at fair value

(2.1) Non-derivative financial instruments

The fair value of private equity investments held by the Group is measured using the net asset value method.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(2.2) Derivative financial instruments

Measurement of fair value of derivative instruments is based on the valuation techniques that are generally accepted by market participants. Fair value of forward exchange contracts is usually determined by the forward currency exchange rate.

3) Transfer between Level 1 and Level 2

There were no transfers between fair value level for the years ended December 31, 2025 and 2024.

4) Reconciliation of Level 3 fair values:

	Financial assets at fair value through profit or loss
	Non-derivative financial assets – private equity investment	Derivative financial assets – call options of convertible bonds
Balance at January 1, 2025	$ 13,073	-
Addition	7,500	1,000
Recognized in profit or loss	(2,015)	(700)
Balance at December 31, 2025	$ 18,558	300
		Financial assets at fair value through profit or loss
		Non-derivative financial assets – private equity investment
Balance at January 1, 2024		$ -
Addition		15,000
Recognized in profit or loss		(1,927)
Balance at December 31, 2024		$ 13,073

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure their fair value include “financial assets measured at fair value through profit or loss – private equity investment and call options of convertible bonds”.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Most of fair value measurements categorized within Level 3 use the single and significant unobservable inputs, only equity investments without an active market contains multiple significant unobservable inputs. The significant unobservable inputs of the equity instruments are independent from each other, as a result, there is no relevance between them.

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
Financial assets measured at fair value through profit or loss – private equity investment	Net asset value method	Net asset value	The higher the net asset is, the higher the fair value will be.
Financial assets measured at fair value through profit or loss – call options of convertible bonds	Least Squares Monte Carlo	Volatility (December 31, 2025: 52.38%,).	The higher the volatility is, the higher the fair value will be.

6) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The fair value measurement of financial instruments by the consolidated company is considered reasonable. However, the use of different valuation models or parameters may result in different valuation outcomes. For financial instruments classified as Level 3, changes in valuation parameters may affect the current period's profit or loss or other comprehensive income as follows:

	Input	Direction of Input Change	Fair Value Change Reflected in Other Comprehensive Income
			Favorable Change	Unfavorable Change
December 31, 2025
Financial assets at fair value through profit or loss – call options of convertible bonds	Volatility	5%	$ 20	(20)

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(s) Financial risk management

(i) Overview

The Group have exposures to the following risks from its financial instruments:

1) credit risk
2) liquidity risk
3) market risk

The following likewise discusses the Group’s objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying consolidated financial statements.

(ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The management is responsible for developing and monitoring the Group’s risk management policies and reports regularly to the Board of Directors on its activities.

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group management regularly oversees the compliance with the Group’s risk management policies and procedures and regularly reviews the adequacy of the risk management framework in relation to the risks faced by the Group. Internal Audit is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(iii) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Accounts receivable and other receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s review includes external ratings, when available, and, in some cases, bank references. Credit limits are established for each customer and represent the maximum open amount without requiring approval from the management.

The Group set the allowance for bad debt account to reflect the estimated losses for account and other receivables. The allowance for bad debt account consists of specific losses relating to individually significant exposure and the unrecognized losses arising from similar assets groups. The allowance for bad debt account is based on historical collection record of similar financial assets.

2) Investments

The exposure to credit risk for the bank deposits and other financial instruments is measured and monitored by the Group’s finance department. The Group only deals with banks and financial institutions with good credit rating. The Group does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

(iv) Liquidity risk

The Group manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Group is exposed to currency risk on sales, purchases, and borrowings that are denominated in a currency other than the respective functional currencies of the Group’s entities, primarily the THB, EUR, USD and NTD. The currencies used in these transactions are the USD and EUR.

Regarding other monetary assets and liabilities denominated in foreign currencies, when short-term imbalance occurs, the Group buys or sells foreign currencies at real-time exchange rates to ensure that the net risk of risk remains at an acceptable level.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Interest rate risk

As the Group holds assets with floating interest rates, it is exposed to cash flow interest rate risk. Please refer to note 6(r) for details of the Group's financial assets with floating interest rates.

(t) Capital management

The Group maintains the capital based on the current operating characteristics of the industry, future development, and changes in external environment, to assure there is financial resource and operating plan to support working capital, capital expenditures, debt redemption and dividend payment and so on. The management decides the optimized capital by using appropriate financial ratios. To maintain a strong capital base, the Group enhances the return on equity by optimizing debt-to-equity ratio. The Group's debt-to-equity ratio at the end of the reporting date was as follows:

	December 31, 2025	December 31, 2024
Total liabilities	$ 783,437	479,735
Total equity	$ 2,781,827	2,789,892
Debt-to-equity ratio	28.16%	17.20%

(u) Investing and financial activities not affecting the current cash flow

The Group’s investing and financing activities which did not affect the current cash flow for the years ended December 31, 2025 and 2024, were as follows:

(i) For right-of-use assets under leases.

(ii) Reconciliation of liabilities arising from financing activities was as follows:

	January 1, 2025	Cash flows	Non-cash changes	December 31, 2025
Lease liabilities	$ 572	(680)	1,346	1,238
Bonds payable	-	519,850	(44,462)	475,388
Total liabilities from financing activities	$ 572	519,170	(43,116)	476,626
	January 1, 2024	Cash flows	Non-cash changes	December 31, 2024
Lease liabilities	$ 1,234	(662)	-	572
Total liabilities from financing activities	$ 1,234	(662)	-	572

(7) Related-party transactions

(a) Parent company and ultimate controlling party

Sixxon Tech. Co., Ltd. is the ultimate parent company.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Names of related parties and their relationships with related parties

The followings are related parties that have had transactions with the Group during the periods covered in the consolidated financial statements.

Name of related party	Relationship with the Group
Imoberdorf AG	Other related parties
Fast Win Pte. Limited	Other related parties

(i) Property transactions

The prepayments of equipment to the related party for the years ended 2025 and 2024 were as follows:

	December 31, 2025	December 31, 2024
Imoberdorf AG	$ 23,221	17,779
Other related party	4,360	-
Total	$ 27,581	17,779

(d) Key management personnel compensation

Key management personnel compensation comprised:

	2025	2024
Short-term employee benefits	$ 38,086	32,142

(8) Assets pledged as security

The carrying amounts of asset pledged as security were as follows:

Asset pledged as security	Liabilities secured by pledged	December 31, 2025	December 31, 2024
Property, plant and equipment	Bank borrowings credit lines	$ 404,431	396,508
Restricted deposits (recognized as other non-current assets)	Guarantee	7,122	8,724
		$ 411,553	405,232

(9) Significant Commitments and Contingencies:

The Group's unrecognized contractual commitments at the balance sheet date were as follows:

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment	$ 26,530	61,989

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(10) Losses due to major disasters: None.
(11) Subsequent events: None.
(12) Other

(a) A summary of employee benefits, depreciation, and amortization, by function, is as follows:

| By function
By item | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating costs | Operating expenses | Total | Operating costs | Operating expenses | Total |
| Employee benefits | | | | | | |
| Salary | 350,961 | 122,363 | 473,324 | 291,740 | 109,275 | 401,015 |
| Labor and health insurance | 9,043 | 1,474 | 10,517 | 9,661 | 1,241 | 10,902 |
| Pension | 6,621 | 4,932 | 11,553 | 6,048 | 4,483 | 10,531 |
| Others | 17,057 | 1,905 | 18,962 | 16,289 | 1,594 | 17,883 |
| Depreciation | 218,748 | 10,754 | 229,502 | 166,470 | 18,840 | 185,310 |
| Amortization | 1,443 | 1,154 | 2,597 | 1,500 | 124 | 1,624 |

(b) Seasonality of operations:

The Group’s operations were not affected by seasonality or cyclicality factors.

(13) Other disclosure items

(a) Information on significant transactions:

The followings were the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year ended December 31, 2025:

(i) Lending to other parties:

(In Thousands of New Taiwan Dollars/other currencies)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance (Note 2)	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits	Maximum limit of fund financing	Note
													Item	Value
0	The Company	GT	Other receivables	Yes	33,205 (USD 1,000)	31,430 (USD 1,000)	-	0%	Short-term financing	-	Operating demand	-	-	-	1,111,939	1,111,939	Note 3
1	SX	GT	Other receivables	Yes	199,230 (USD 6,000)	125,720 (USD 4,000)	62,860 (USD 2,000)	0%	"	-	"	-	-	-	322,888	322,888	"

Note 1: Companies which have business transactions with the Company, the loan amount should be the same as the latest year transaction amount, and subject to the limitation of 40% of the Company’s net worth; for companies which have a need for short-term financing, lending cannot exceed 40% of each entity’s net worth. For subsidiaries or companies whose 100% of the voting shares are directly or indirectly owned by the Company, the total amount of lending cannot exceed 100% of the Company’s net worth, the individual amount cannot exceed 100% of the Company’s amount.
Note 2: The accordance of the exchange rate is based on the end of the reporting date.
Note 3: The aforementioned transactions had been eliminated upon the preparation of the consolidated financial statements.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Guarantees and endorsements for other parties: None.

(iii) Information regarding securities held at the reporting date (subsidiaries, associates and joint ventures not included):

(Amounts in Thousands of New Taiwan Dollars/shares)

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance				Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company	Corporate Venture Capital Alliance Innovation Fund	-	Non-current financial assets at fair value through profit or loss	-	18,558	5.41 %	18,558	Note 1
The Company	TSMC Arizona International Bond	-	Current financial assets at fair value through profit or loss	-	63,023	- %	63,023
The Company	UBS Group AG International Bond	-	Current financial assets at fair value through profit or loss	-	78,711	- %	78,711

Note 1: The amount includes a capital increase of $7,500, which is expected to be paid in January 2026.

(iv) Information regarding related-party purchase and/or sales exceeding 100 million or 20% of the Company's paid in capital: None.

(v) Information regarding receivables from related parties exceeding 100 million or 20% of the Company's paid in capital:

(In Thousands of New Taiwan Dollars/other currencies)

Name of company	Counter-party	Nature of relationship	Ending balance (Note 3)	Turnover rate	Overdue		Amounts received in subsequent period (Note 3)	Allowance for bad debts	Note
					Amount	Action taken
SX	GT	With the same ultimate parent company	62,860 (USD 2,000)	Note 1	-	-	-	-	Note 2

Note 1: Other receivables arising on loans are not applicable.
Note 2: The aforementioned transactions had been written-off upon the preparation of the consolidated financial statements.
Note 3: The accordance of the exchange rate is based on the end of the reporting date.

(vi) Significant transactions and business relationship between the parent company and its subsidiaries for the nine months ended December 31, 2025:

(Amounts in Thousands of New Taiwan Dollars)

No. (Note 1)	Company name	Counter party	Nature of Relationship (Note 2)	Intercompany transactions
				Account name (Note 4)	Amount (Note 5)	Terms	Percentage of the consolidated revenue or total assets (Note3)
1	SX	GT	3	Other receivables-related party (Note 6)	62,860	Interest rate 0%	1.76%

Note 1: Companies are numbered as follows:
Parent company - 0
Subsidiary - starting from 1

Note 2: The relationships between transaction parties are numbered as follows:
Parent company and subsidiary - 1
Subsidiary and parent company - 2
Subsidiary and subsidiary - 3

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Note 3: Regarding the ratio of the transaction amount to the consolidated total operating income or total assets, it is calculated by the ending balance to the consolidated if it is recognized as liabilities; if as profit or loss, then by the ending cumulative amount to the consolidated total operating income.
Note 4: The section only disclosed the information of sales and trade receivables of inter-company transactions, as well as the purchases and trade payables.
Note 5: Assets and liabilities items are translated into New Taiwan dollars at the exchange rates at the ending date of the reporting period; income and expense items are translated at the average exchange rates for the period.
Note 6: Arising from loans.

(b) Information on investments:

The followings were the information on investees for the years ended December 31, 2025:

(In Thousands of New Taiwan Dollars/shares)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount			Balance as of December 31, 2025			Net income (losses) of investee (Note 2)	Shares of profits/ losses of investee (Note 2)
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
The Company	GT	Thailand	Design, manufacture, processing and sale of automotive, industrial, 3C and medical related components	NTD 2,209,277	NTD 1,660,940	58,750,000	100 %	2,273,440	209,424	215,402	Note 1, Note3
The Company	TT	Thailand	Design, manufacture, processing and sale of automotive, industrial and 3C related components	NTD -	NTD 548,337	-	- %	-	(36,241)	(36,241)	Note 1, Note3
The Company	Caltech	Hong Kong	Sale of automotive related components	NTD 90,227	NTD 90,227	25	100 %	20,676	(265)	(265)	Note 1
The Company	SX	Singapore	General investment	NTD 328,747	NTD 3,268	10,000,000	100 %	322,888	8,374	8,374	"
GT	Align	Thailand	Sale of medical related equipment and component	NTD 1,733	NTD 1,733	196,000	49 %	1,901	(69)	(34)	"

Note 1: The aforementioned transactions had been eliminated upon the preparation of the consolidated financial statements.
Note 2: Investment income (loss) recognized was translated into New Taiwan Dollar at the average exchange rate for the years ended December 31, 2025. The other amounts related to foreign currency were translated into New Taiwan Dollar at the exchange rate at the balance sheet date.
Note 3: The subsidiaries GT and TT were merged on August 1, 2025, through an absorption merger. GT is the surviving entity after the merger, and TT was dissolved.

(14) Segment information:

(a) The Group has one reportable segment, mainly engaged in the design, production and sale of automotive, industrial, 3C and medical related components. Please refer to the balance sheet and statement of comprehensive income for details of departmental profit and loss, departmental assets, and departmental liability in line with the financial statements.

(b) Overall company information

(i) Product information: Please refer to note 6(p) for the related information.

(Continued)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Geographic information

Stated below are the geographic information on the Group’s sales presented by destination of sales and non-current assets presented by location.

1) Revenue for external customers: Please refer to note 6(p) for the related information.

2) Non-current assets:

Country	December 31, 2025	December 31, 2024
Thailand	$ 1,671,590	1,569,510

Non-current assets include property, plant and equipment, intangible assets, and other assets, not including financial instruments.

(iii) Information about major customers

Sales to individual customer constituting over 10% of the total revenue in the consolidated statements of comprehensive income of 2025 and 2024 are summarized as follow:

	2025		2024
	Amount	Percentage of the consolidated revenue%	Amount	Percentage of the consolidated revenue%
Company C	$ 293,143	16 %	213,930	15 %
Company F	201,027	11 %	100,145	7 %
	$ 494,170	27 %	314,075	22 %

AI assistant

Sixxon — Audit Report / Information 2026

52411_rns_2026-05-13_42f789d2-3073-465b-b9ea-680a2ac86335.pdf

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Table of contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Operating Revenue

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

Consolidated Balance Sheets

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Consolidated Statements of Comprehensive Income

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Balance at January 1, 2024

Balance at December 31, 2024

Balance at December 31, 2025

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Consolidated Statements of Cash Flows

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

(ii) Functional and presentation currency

(c) Basis of consolidation

(i) Principles of preparation of the consolidated financial statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(l) Impairment of non-financial assets

(m) Provisions

(n) Revenue

(i) Revenue from contracts with customers

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

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

(i) The details as follows:

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

SIXXON TECH. CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(e) Inventories

Sixxon Audit Report / Information 2026