SUN MAX — Annual Report 2025

Apr 20, 2026

SUN MAX TECH LIMITED and its subsidiaries

Consolidated financial statements and Auditor's Report 2025 and 2024

Address: The Grand Pavilion Commercial Centre Oleander Way,802 West Bay Road P.O. Box32052, Grand Cayman KY1-1208 Cayman Islands Tel.: (02)82263300

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

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§TABLE OF CONTENTS§

Item 1. Cover page 2. Table of Contents 3. Independent Auditors’ Report 4. Consolidated Balance Sheets 5. Consolidated Statement of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to Consolidated Financial Statements (1) Organization and operations (2) Financial reporting date and procedures (3) Application of new and revised standards and interpretation (4) Summary of significant accounting policies (5) Main source of significant accounting judgment, estimates and assumptions uncertainty (6) Summary of significant accounting titles (7) Related party transactions (8) Pledged assets (9) Significant contingent liabilities and unrecognized contractual commitments (10) Significant subsequent events (11) Information on foreign currency assets and liabilities with significant influence (12) Notes of disclosure 1. Information about important transactions 2. Transfer investment information 3. Information regarding investment in the territory of mainland china (13) Capital risk management (14) Segment information	Page 1 2 3~6 7 8~9 10 11~12 13 13 13~15 15~27 27 27~53 53 53 53 - 54~55 55 55 55~56 56 56~57	Notes to financial statements No.
		1 2 3 4 5 6~24 25 26 27 - 28 29 29 29 30 31

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Independent Auditors’ Report

To: SUN MAX TECH LIMITED:

Opinion

We have audited the accompanying consolidated financial statements of SUN MAX TECH LIMITED and its subsidiaries (hereinafter, “SUN MAX Group”) which comprise the balance sheets as of December 31, 2025 and 2024 and the related consolidated statements comprehensive of income, changes in shareholders’ equity and cash flows for the years then ended and the notes to consolidated financial statement (including a summary of significant accounting policies).

In our opinion, the accompany consolidated financial statements present fairly, in all material respects, the financial position of SUN MAX Group and its subsidiaries 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 Issuer,” and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretation (IFRIC) and SIC Interpretations*.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Auditing Standards. Our responsibilities under those standards are further described in the responsibilities of auditors’ responsibilities for the audit of the consolidated financial statements section of our report. The personnel of the CPA Firm subject to the independence requirement have acted independently from the business operations of SUN MAX Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and with other responsibilities of the Norm of Professional Ethics for Certified Public Accountant of the Republic of China performed. We believed that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

The “Key Audit Matters” means that the independent auditor has used their professional judgment to audit the most important matters on the 2025 consolidated financial statements of SUN MAX Group. These matters were addressed in the content 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 those matters.

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The Key Audit Matters to be performed on the 2025 consolidated financial statements of SUN MAX TECH LIMITED follows:

Recognition of revenue

The operating revenue of the Power Group is mainly from the sales of cooling fans and concentrated in the top ten customers, of which the operating revenue of the top two customers’ accounts for about 40% of the total operating revenue in 2025. In the opinion of the accountant, the company's industry is highly competitive and the management may be under pressure to achieve the expected goals. Therefore, it is judged that the top two customers and the top ten new customers may have higher income recognition risks. Therefore, the existence of the revenue recognition of the top two customers and the top ten new customers in the current year is recognized as a Key Audit Matters. Please refer to Note 4(11) for revenue recognition policy.

The audit procedure for potential misstatement risk of revenue recognition is as below:

1. Understand and test the effectiveness of internal control related to sales revenue recognition.

2. Examine whether or not there are any changes among the top ten customers; if there is a new party, not only review its basic information and credit evaluation form, but also test the transaction details to see if there are any anomalies.

3. For the top two customers and the top ten new customers, we randomly check the relevant transaction certificates, including the purchase orders, shipping orders, invoices and collection information, to confirm the existence of the sales.

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

The responsibility of management is to prepare fairly presented consolidated financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reports Standards, International Accounting Standards interpretations, and announcements of interpretations recognized and published by the Financial Supervisory Commission and maintain necessary internal control related to the preparation of consolidation of financial statements in order to ensure the material misstatement caused by fraud or error does not exist in the consolidated financial statements.

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

Those in charge of governance (including the Auditing Committee) are responsible for overseeing the reporting process of SUN MAX Group.

Auditors’ Responsibilities for 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 and Independent Auditors’ Report. Reasonable assurance is a high level of assurance, but is not a guarantee that and audit conducted in accordance with the accounting principles in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. If fraud or errors are considered materials, 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.

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As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgement and maintain professional skepticism throughout the audit. We also perform the following works:

1. 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 risks, and obtain evidence that is sufficient and appropriate to provide a basis of our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

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

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

4. Conclude the appropriateness of the use of the going concern basis of accounting by the management, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on SUN MAX Group and its ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Independent Auditors’ Report to the related disclosures in the consolidated financial statements or, if such disclosure are inappropriate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the Independent Auditors’ Report. However, future events or conditions may cause SUN MAX Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure, and content of the consolidated statements, including related notes, whether the consolidated statements represent the underlying transactions and events in a matter that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence on the financial information of business entities within the Group in order to express an opinion on the consolidated financial statements. The independent auditor is responsible for guiding, supervising, and implementing the audit of the Group; also, is responsible for forming an opinion on the audit of the Group.

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

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From the matters communicated with those in charge of governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of SUN MAX Group of 2025 and are therefore the Key Audit Matters. We describe these matters in our Independent 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 communications.

Deloitte & Touche CPA, Chia-Ming Chang

CPA, Tung-Ju Hsieh

Financial Supervisory Commission approval no. no. Chin-Kuan-Cheng-Shen-Zi No. Chin-Kuan-Cheng-Shen-Zi No. 1140350638 1090347472

Financial Supervisory Commission approval no.

March 11, 2026

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SUN MAX TECH LIMITED and its subsidiaries

Consolidated Balance Sheets

December 31, 2025 and 2024

Unit: NTD thousand

Code 1100 1110 1170 1200 1220 130X 1479 11XX 1600 1755 1780 1990 15XX 1XXX Code 2100 2120 2170 2200 2230 2280 2320 2399 21XX 2530 2540 2570 2580 2630 2670 25XX 2XXX 3100 3200 3310 3320 3350 3300 3410 3400 31XX 36XX 3XXX	Assets Current assets Cash and cash equivalents (Note 4 and 6) Financial assets at fair value through profit and loss current (Note 4 and 7) Net notes receivable and accounts receivable (Note 4 and 8) Other receivables Current income tax asset (Note 4 and 21) Inventories (Note 4 and 9) Other current assets (Note 10) Total current assets Non-current assets Property, plant and equipment (Note 4, 12 and 26) Right-of-use assets (Note 4 and 13) Intangible asset (Note 4 and 14) Other non-current assets (Note 10) Total non-current assets Total assets Liabilities and equity Current liabilities Short-term borrowings (Note 15 and 26) Financial liabilities at fair value through profit and loss current (Note 4 and 7) Notes and account payables Other payable (Note 16) Current income tax liabilities (Note 4 and 21) Leasehold liability- current (Note 4 and 13) Long-term debts and bonds payable that are due within one year (Note 15, 17 and 26) Other current liabilities Total current liability Non-current liabilities Corporate bonds payable (Note 4 and 17) Long-term borrowings (Note 15 and 26) Deferred income tax liabilities (Note 4 and 21) Leasehold liability- non-current (Note 4 and 13) Deferred income (Note 23) Other non-current liabilities Total non-current liability Total liabilities Equity Attributable to Owners of the company (Note 4 and 19) Common stock capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on Translating the financial statements of foreign operations Total other equity Total equity of the company Non-controlling interest Total equity Total liabilities and equity		December 31, 2025 Amount % $ 1,090,256 31 - - 620,346 17 2,519 - 2,756 - 179,311 5 21,945 1 1,917,133 54 1,358,529 39 38,032 1 8,520 - 202,148 6 1,607,229 46 $ 3,524,362 100 $ 52,500 1 775 - 177,171 5 210,373 6 20,479 1 17,962 1 29,280 1 7,746 - 516,286 15 233,545 6 343,620 10 145,128 4 3,064 - 32,118 1 1 - 757,476 21 1,273,762 36 411,225 12 1,067,515 30 122,946 4 - - 635,823 18 758,769 22 6,903 - 6,903 - 2,244,412 64 6,188 - 2,250,600 64 $ 3,524,362 100	December 31, 2025 Amount % $ 1,090,256 31 - - 620,346 17 2,519 - 2,756 - 179,311 5 21,945 1 1,917,133 54 1,358,529 39 38,032 1 8,520 - 202,148 6 1,607,229 46 $ 3,524,362 100 $ 52,500 1 775 - 177,171 5 210,373 6 20,479 1 17,962 1 29,280 1 7,746 - 516,286 15 233,545 6 343,620 10 145,128 4 3,064 - 32,118 1 1 - 757,476 21 1,273,762 36 411,225 12 1,067,515 30 122,946 4 - - 635,823 18 758,769 22 6,903 - 6,903 - 2,244,412 64 6,188 - 2,250,600 64 $ 3,524,362 100		December 31, 2024	December 31, 2024	December 31, 2024
			Amount $ 1,090,256 - 620,346 2,519 2,756 179,311 21,945 1,917,133 1,358,529 38,032 8,520 202,148 1,607,229 $ 3,524,362 $ 52,500 775 177,171 210,373 20,479 17,962 29,280 7,746 516,286 233,545 343,620 145,128 3,064 32,118 1 757,476 1,273,762 411,225 1,067,515 122,946 - 635,823 758,769 6,903 6,903 2,244,412 6,188 2,250,600 $ 3,524,362			Amount $ 748,046 19 481,480 4,135 18,390 183,652 9,530 1,445,252 1,428,370 52,904 9,015 60,588 1,550,877 $ 2,996,129 $ 70,000 - 159,457 188,549 1,277 18,083 75,668 6,788 519,822 - 372,900 115,299 17,008 34,412 1,579 541,198 1,061,020 377,223 895,605 110,992 56,738 472,216 639,946 14,519 14,519 1,927,293 7,816 1,935,109 $ 2,996,129		%
								25 - 16 - 1 6 - 48 48 2 - 2 52 100 2 - 5 6 - 1 3 - 17 - 12 4 1 1 - 18 35 13 30 3 2 16 21 1 1 65 - 65 100

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

Chairman: HSU Wen-Faung

Manager: HSU Wen-Faung

Head of Accounting: YAO, Cheng-Min

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SUN MAX TECH LIMITED and its subsidiaries Consolidated Statement of Comprehensive Income

January 1 to December 31, 2025 and 2024

Unit: NTD thousands, except Earnings Per Share (NTD)

Code 4000 Operating income (Note 4) 5000 Operating cost (Note 9 and 20) 5900 Gross profit Operating expenses (Note 20 and 25) 6100 Selling and Marketing expense 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Profit from operations Non-operating revenues and expenses 7100 Interest revenue (Note 20) 7010 Other income (Note 20 and 23) 7020 Other gains and losses (Note 20) 7050 Financial cost (Note 20) 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense (Note 4 and 21) 8200 Net profit for the year (Continued on next page)		2025

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(Continued from previous page)

Code Other comprehensive income (Note 4 and 19) 8360 Accounts to be reclassified to profit or loss subsequently: 8361 Exchange differences on Translating the financial statements of foreign operations 8300 Total other comprehensive income or loss 8500 Total Comprehensive Income for the year Net profit attributable to: 8610 Owners of the Company 8620 Non-controlling interest 8600 Comprehensive income attributable to: 8710 Owners of the Company 8720 Non-controlling interest 8700 Earnings per share (Note 22) 9710 Basic 9810 Diluted		2025		% 1) 1) 11 12 - 12 11 - 11		2024
		Amount $ 7,616) 7,616) $ 200,536 $ 209,780 1,628) $ 208,152 $ 202,164 1,628) $ 200,536 $ 5.37 $ 4.96				Amount $ 71,257 71,257 $ 189,541 $ 119,539 1,255) $ 118,284 $ 190,796 1,255) $ 189,541 $ 3.21 $ 3.11		%
	( ( ( (		( (		( (			6 6 15 9 - 9 15 - 15

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

Chairman: HSU Wen-Faung Manager: HSU Wen-Faung Head of Accounting: YAO, Cheng-Min

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SUN MAX TECH LIMITED

SUN MAX TECH LIMITED and subsidiaries Consolidated Statements of Changes in Equity January 1 to December 31, 2025 and 2024

Unit: NTD thousand

Code A1 Balance as of January 1, 2024 Appropriation of 2023 earnings B1 Legal reserve B3 Special reserve B5 Cash dividends I1 Conversion of convertible bonds D1 Net profit for the year ended December 31, 2024 D3 Other comprehensive income in 2024 D5 Total Comprehensive profit or loss in 2024 Z1 Balance as of December 31, 2024 Appropriation of 2024 earnings B1 Legal reserve B3 Special reserve B5 Cash dividends E1 Proceeds from issuance of ordinary shares N1 Share-based payment transactions C5 Issuance of convertible corporate bonds recognized in the equity component – share options I1 Conversion of convertible bonds D1 Net profit for the year ended December 31, 2025 D3 Other comprehensive income in 2025 D5 Total Comprehensive profit or loss in 2025 Z1 Balance as of December 31, 2025							Equity of the company	Equity of the company				Total $ 1,749,462 - - 102,463 ) 89,498 119,539 71,257 190,796 1,927,293 - - 90,957 ) 139,850 4,646 15,128 46,288 209,780 7,616) 202,164 $ 2,244,412	Non-controlling interest $ 9,071 - - - - ( 1,255 ) - ( 1,255) 7,816 - - - - - - - ( 1,628 ) - ( 1,628) $ 6,188		Total equity
		Share Capital $ 356,403 - - - 20,820 - - - 377,223 - - - 23,000 - - 11,002 - - - $ 411,225		Capital surplus $ 826,927 - - - 68,678 - - - 895,605 - - - 116,850 4,646 15,128 35,286 - - - $ 1,067,515			Retained earnings		Unappropriated earnings $ 490,212 ( 11,852 ) ( 23,220 ) ( 102,463 ) - 119,539 - 119,539 472,216 ( 11,954 ) 56,738 ( 90,957 ) - - - - 209,780 - 209,780 $ 635,823	Other equity Exchange differences on Translating the financial statements of foreign operations ( $ 56,738 ) - - - - - 71,257 71,257 14,519 - - - - - - - - ( 7,616) ( 7,616) $ 6,903
						Legal reserve $ 99,140 11,852 - - - - - - 110,992 11,954 - - - - - - - - - $ 122,946		Special reserve $ 33,518 - 23,220 - - - - - 56,738 - 56,738 ) - - - - - - - - $ -
							(		( ( ( ( (	( ( (	( ( (		( ( ( (	( ( (	$ 1,758,533 - - 102,463 ) 89,498 118,284 71,257 189,541 1,935,109 - - 90,957 ) 139,850 4,646 15,128 46,288 208,152 7,616) 200,536 $ 2,250,600

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

Chairman: HSU Wen-Faung

Manager: HSU Wen-Faung

Head of Accounting: YAO, Cheng-Min

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SUN MAX TECH LIMITED

SUN MAX TECH LIMITED and subsidiaries

Consolidated Statements of Cash Flows

January 1 to December 31, 2025 and 2024

Unit: NTD thousand

Code Cash flow from operating activities A10000 Income before income tax A20010 Profits and loss A20100 Depreciation expenses A20200 Amortization expenses A20300 Gain on reversal of expected credit A20400 Net loss (gain) on financial assets and liabilities at fair value through profit and loss A20900 Financial cost A21200 Interest revenue A21900 Share-based payment expenses A22500 Loss (gain) on disposal of property, plant, and equipment A23700 Write-downs of inventories and loss of idle inventory A29900 Reversal of provision A29900 Government grant A30000 Net change in operating assets and liabilities A31130 Notes receivable A31150 Accounts receivable A31180 Other receivables A31200 Inventories A31240 Other current assets A32150 Notes and account payables A32180 Other payables A32230 Other current liabilities A32990 Other non-current liabilities A33000 Cash generated for operations A33100 Interest received A33300 Interest paid A33500 Income tax refund A33500 Income tax paid AAAA Net cash inflow generated from operating activities	2025 $ 298,629 94,769 5,610 ( 971 ) 197 14,426 ( 21,112 ) 4,646 ( 14,976 ) 2,626 ( 3 ) ( 11,617 ) 799 ( 138,681 ) 634 1,715 ( 13,295 ) 17,714 21,356 945 ( 1,562) 261,849 22,094 ( 12,021 ) 11,256 ( 41,154) 242,024	2024
		$ 155,115 91,193 4,018 ( 1,809 ) ( 123 ) 9,252 ( 19,122 ) - 9 6,455 ( 32 ) ( 49,052 ) 141 81,086 3,385 30,167 1,744 8,316 11,376 ( 161 ) 1,264 333,222 17,918 ( 7,588 ) 8,973 ( 66,269) 286,256

(Continued on next page)

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(Continued from previous page)

Code Cash payments for investing activities B00050 Disposal of financial assets based on cost after amortization B02700 Purchase of property, plant, and equipment B02800 Disposal of property, plant, and equipment B03700 Increase in refundable deposits B03800 Decrease in Refundable deposits B04500 Purchase of intangible assets B07100 Increase in installment on equipment B09900 Receipt of government grants BBBB Net cash used in from investing activities Cash flow from financing activities C00100 Increase in short-term borrowings C00200 Repayments of short-term borrowings C01200 Issuance of convertible corporate bonds C01300 Convertible bonds buyback C01600 Proceeds from Long-term borrowings C01700 Repayments of proceeds from long-term loans C04020 Payment of principal element of lease liabilities C04500 Cash dividend paid C04600 Proceeds from issuance of ordinary shares CCCC Net cash generated from financing activities DDDD Effects of exchange rate changes on the balance of Cash held in foreign currencies EEEE Net increase in cash and cash equivalents E00100 Cash and cash equivalents at the beginning of the year E00200 Cash and cash equivalents at the end of the year	2025 $ - ( 67,858 ) 69,113 - 114 ( 4,429 ) ( 143,131 ) 9,900 ( 136,291) - ( 17,500 ) 247,194 ( 500 ) - ( 29,280 ) ( 19,017 ) ( 90,957 ) 139,850 229,790 6,687 342,210 748,046 $1,090,256	2024
		$ 921 ( 371,435 ) - ( 5,078 ) - ( 906 ) ( 4,508 ) 47,685 ( 333,321) 43,989 - - - 220,000 ( 15,860 ) ( 17,432 ) ( 102,463 ) - 128,234 39,380 120,549 627,497 $ 748,046

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

Chairman: HSU Wen-Faung Manager: HSU Wen-Faung Head of Accounting: YAO, Cheng-Min

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SUN MAX TECH LIMITED and its subsidiaries

Notes to Consolidated Financial Statements

January 1 to December 31, 2025 and 2024

(Unless otherwise provided, Unit: NTD Thousand)

1. Organization and operations

Sun Max Tech Limited (hereinafter referred to as “the Company”) was incorporated in the British Cayman Islands in November 2013 due to the organizational restructure initiated mainly for Taiwan Stock Exchange listing and trading. The Company become the holding company of Group. The cooling fan manufacturing, wholesale, retail, and international trade are the main business operations of the Company and the subsidiaries that are included in the consolidated financial statements (hereinafter referred to as “SUN MAX Group” or the “Consolidated Company”). The Company was approved by Taipei Exchange on November 30, 2016 to trade at Taiwan Stock Exchange Corporation in October 2017 and go public on December 28, 2017.

The consolidated financial statements are presented in the Company’s functional currency – New Taiwan Dollar.

2. Financial reporting date and procedures

The consolidated financial statements were approved by the Board of Directors on March 9, 2026.

3. Application of new and revised standards and interpretation

• (1) The first-time adoption and IFRS, IAS, IFRIC and SIC (hereinafter collectively known as “IFRSs”) that have been recognized and approved by the Financial Supervisory Commission (FSC)

The adoption of the IFRSs amended in 2025 that were recognized and issued by the Financial Supervisory Commission did not have a significant impact on the accounting policies of the consolidated company.

• (2) The adoption of IFRSs in 2026 that were recognized by the Financial Supervisory Commission

Commission
The new / amended / revised standards or interpretation	IASB publication effective date
Amendments to IFRS 9 and IFRS 7 - “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” “Annual Improvements to IFRS Accounting Standards—Volume 11” IFRS 17 “Insurance Contracts” (including amendments in 2020 and 2021)	January 1, 2026 January 1, 2026 January 1, 2026 January 1, 2023

The consolidated company assessed the adoption of the IFRSs that were recognized by the Financial Supervisory Commission in 2026 and concluded that it

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did not have a significant impact on the consolidated company. However, the consolidated company has been continuously evaluating the impact of the aforementioned amendments to regulations and interpretations on the financial status and financial performance as of the date the consolidated financial statements were passed and announced; also, the said impact will be disclosed upon the completion of the evaluation.

• (3) The IFRSs released by the IASB but not yet approved and announcement effective by the Financial Supervisory Commission

the Financial Supervisory Commission
The new / amended / revised standards or interpretation Amendment to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and Investment in Associates”. IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including amendments in 2025) Amendment to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	IASB publication effective date (Note 1)
	Undefined January 1, 2027 (Note 2) January 1, 2027 January 1, 2027

• Note 1: Unless otherwise stated, the aforementioned new / amended / revised standards or interpretation are effective in the years after the respective date.

• Note 2: On September 25, 2025, the FSC announced that Taiwanese companies should apply IFRS 18 from January 1, 2028, or may choose to apply it earlier after FSC approval.

IFRS 18 “Presentation and Disclosure in Financial Statements” and related amendment

IFRS 18 will replace IAS 1 “Presentation of Financial Statements”, and major changes of the Standard include:

• The consolidated company shall assess whether it has specific main business activities such as investing in specific types of assets and providing financing to customers, based on which the income and expense items in the income statement are classified into operating, investing, financing, income tax and discontinued operations categories.

• The income statement shall present operating profit or loss, profit or loss before financing and income tax, as well as subtotal and total profit and loss.

• The Standard enhances guidance on the principles of aggregation and disaggregation: The consolidated company shall identify assets, liabilities, equity, income, expenses and cash flows arising from individual transactions or events and aggregate them into items based on similar characteristics so that items aggregated and presented as line items in the primary financial statements have at least one similar characteristic. Items with non-similarity characteristics in the main financial statements and notes should be divided. The consolidated company only marks “other” in the absence of more information.

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• Inclusion of specific requirements for the disclosure of management-defined performance measures: The consolidated company shall disclose all information about management-defined performance measures in a single note to the financial statements, including a description of the measure, how the measure is calculated, a reconciliation between the measure and the total/subtotal required to be presented or disclosed by IFRS Accounting Standards, and tax and non-controlling interest effects for each reconciling item, when they are used in public communications outside the financial statements to communicate to users of financial statements management’s view of an aspect of the financial performance of the consolidated company as a whole.

In addition, the following amendments to IAS 7 “Statement of Cash Flows” were made:

• When the consolidated company prepares the statement of cash flows from operating activities using the indirect method, operating profit or loss shall be the starting point for reconciliation.

• The interest and dividends received by the consolidated company shall be classified as investment activities, and interest and dividends paid shall be classified as financing activities. If the consolidated company is assessed to have specific main business activities, it must consider the types of dividend income, interest income, and interest expense listed in the income statement to determine the classification of receiving dividends, receiving interest, and paying interest in the statement of cash flows. However, the above cash flows can only be classified in a single activity in the statement of cash flows.

Except the effects described above, the consolidated company has been continuously evaluating other effects of various amendments to regulations and interpretations on the financial status and financial performance as of the date the consolidated financial statements were passed and announced, and will make appropriate disclosure after the evaluation.

4. Summary of significant accounting policies

• (1) Compliance Statement

The consolidated financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs approved and published by the FSC.

• (2) Basis of preparation

Further to financial instruments measured at fair value, the content contained in this consolidated financial statement is compiled based on historical data.

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The evaluation of fair value could be classified into Level 1 to Level 3 by the observable intensity and importance of related input value:

1. Level 1 input value: refers to the quotation of the same asset or liability in an active market as of the evaluation (before adjustment).

2. Level 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.

3. Level 3 input value: the unobservable input value of asset or liability.

4. (3) Standards in differentiating current and non-current assets and liabilities. Current assets including:

5. Available-for-trade assets;

6. Assets expected to be realized within 12 months after the balance sheet date, and

7. Cash and cash equivalents (but excluding cash and cash equivalent with limitations from exchanging or repaying liabilities after 12 months of the day on the balance sheet).

Current liabilities including:

1. Available-for-trade liabilities;

2. liabilities due to be settled within 12 months after the balance sheet date, even if an agreement to refinance or to reschedule payments on a long-term basis is completed after the balance sheet date and before the financial reports are authorized for issue; or

3. liabilities the Consolidated Company on the balance sheet date does not have in substance the right to defer settlement thereof for at least 12 months after the balance sheet date.

Items other than the aforementioned current assets or liabilities are classified as noncurrent assets or non-current liabilities. Terms of a liability that could, at the option of the counterparty, result in its settlement by the transfer of the Consolidated Company’s own equity instruments do not affect its classification as current or noncurrent if the Consolidated Company classifies the option as an equity instrument.

• (4) Basis of consolidation

This consolidated financial statement contains the information of the financial statements of the Bank and its controlled entities (subsidiaries). The Consolidated Statement of Comprehensive Income already covered the operating profit and/or loss of the subsidiaries, which have been acquired or disposed of the current term, from the date of acquisition until the date of disposal. The subsidiaries’ financial statements have been properly adjusted to make the accounting policies consistent with the accounting policies of the consolidated company. In preparing these consolidated financial statements, the transactions, account balances, incomes and loss and expenses among the individual entities are written off in full amount. The total comprehensive incomes of the subsidiaries were non-controlling interest attributed to the Company’s owners and the non-controlling interest, to become the balance of loss even as the non-controlling interest.

When the changes of interest of the subsidiaries’ ownership by the Consolidated Company do not lead to the loss of control, it is disposed of as interest transactions.

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The book value of the Consolidated Company and non-controlling interest has been adjusted to reflect the changes of the relative interest of subsidiaries. The differential between the adjustment amount of non-controlling interest and the fair value of consideration received is directly recognized as interest and belongs to the owner of the Company.

For more details, shareholding ratio and operating items of the subsidiaries, please refer to Note 11, Attached table 5 and Attached table 7.

• (5) Foreign currency

For the transactions conducted in a currency other than the business entity’s functional currency (foreign currency), it is to be translated to the functional currency in accordance with the exchange rate on the transaction date when preparing the individual financial statements.

Foreign currency monetary items are translated at the closing rate on each balance sheet date. The exchange differences arising from the settlement of monetary items or translating monetary items are recognized in the current profit or loss.

The foreign non-currency items measured at fair value are translated in accordance with the exchange rate on the fair value determination date and the exchange difference is booked as current profit or loss. However, for the changes in fair value recognized in the other comprehensive profit or loss, the exchange difference is recognized in the other comprehensive profit or loss.

The foreign non-currency items measured at historical cost are translated in accordance with the exchange rate on the transaction date without the need for a translation again.

When preparing the consolidated financial statements, the assets and liabilities of the consolidated company’s foreign operations should be translated into New Taiwan dollars in accordance with the exchange rate on the balance sheet date. Income and expense items are translated in accordance with the current average exchange rates and the exchange differences are booked in the other comprehensive profit or loss.

If disposal on ownership of foreign operation for business combination, or disposal on partial ownership of foreign operation and lose control, or the retained equity is financial asset and treated according to financial instrument accounting policy from disposal on joint agreement or associate of foreign operation, all accumulated exchange difference will be reclassified to profit or loss related to foreign operation.

• 17 -

If the partial disposal of the subsidiaries of the foreign operation institution did not result in a loss of control, the cumulative exchange differences are re-attributed proportionally as non-controlling equity of the subsidiaries without any profit and loss recognized. In any other event of partial disposal of an overseas operating institution, the accumulated difference in foreign exchange was reclassified to profit and/or loss pro rata to the percentage of disposal.

(6) Inventories

Inventories include raw materials, materials, finished goods and work-in-process goods. Inventory is valued in accordance with the lower of cost or net cash value. When comparing cost and net cash value, except for the homogeneous inventories, it is based on the itemized lower of cost or net cash value. The net cash value is the estimated selling price net of the cost needed to have the remaining work completed and the estimated cost needed to complete the sale under normal circumstance. The cost of inventory is calculated using the weighted average method.

• (7) Property, plant, and equipment

Property, plant and equipment are recognized at cost and measured subsequently in accordance with the cost net of accumulated depreciation and accumulated impairment loss.

Property, plant and equipment construction in progress is recognized at cost net of the accumulated impairment loss. Costs include professional service expanses and loan costs that meet the capitalization conditions. These assets are classified to the respective property, plant and equipment upon completion and ready for use with depreciation appropriated.

Property, plant, and equipment are depreciated in accordance with the straightline method in the expected useful lives. Depreciation of each major part is appropriated separately. The Consolidated Company shall at least inspect the estimated service life, residual value and depreciation method by the day of the end of each fiscal year and postpone the effect of applying estimated accounting changes.

When real estate, plants and equipment are de-recognized, the differential between the net disposal amount and the book value of such assets shall be recognized as income.

• (8) Intangible assets

1. Acquired separately

The intangible asset with limited useful life acquired separately was originally measured at cost and subsequently measured at cost, net of accumulated amortization and accumulated impairment losses. Depreciation is recognized using the straight-line method for intangible asset. The estimated useful lives, residual values and depreciation method are reviewed at the end of each yearly reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Intangible asset with indefinite useful lives is measured at cost net of accumulated impairment losses.

• 18 -

• Acquisition as part of a business combination

Intangible asset acquired through business combination is measured at its fair value on the acquisition date, and is recognized separately from goodwill. Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

1. De-recognition

In removing intangible assets, the difference between the net proceeds of disposition and the book value shall be recognized as income.

• (9) Impairment of the property, plant and equipment, right-of-use assets, and intangible assets (other than goodwill).

The consolidated company assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets and intangible assets (other than goodwill) may have been impaired. If there is any indication of impairment occurring, the recoverable amount of the asset should be estimated. If the recoverable amount of an individual asset cannot be estimated, the consolidated company is to estimate the recoverable amount of the respective cash-generating unit.

The intangible asset with indefinite useful lives and not yet available for use should be tested for impairment at least annually or should be tested when there is an indication of impairment.

The recoverable amount is the fair value net of cost or the value in use whichever is higher. When the recoverable amount of an individual asset or cash-generating unit is less than its book amount, the book amount of the asset or cash-generating unit should be reduced to its recoverable amount. The impairment loss is recognized in the profit or loss.

Inventory, property, plants and equipment, and intangible assets recognized due to contracts with customers will firstly recognize impairment losses according to regulation requirements for inventory write-down and the regulations mentioned above. Secondly, it should be recognized as impairment loss when the carrying amount of relevant assets of contract cost exceed the amount of considerations to which it expects to be entitled from providing relevant goods or services after deducting direct relevant costs. In order to work on the assessment for impairment of cash-generating units, hereafter adding carrying amount of relevant assets of contract costs into the cash-generating units to which it belongs.

When the impairment loss is reversed subsequently, the carrying amount of the assets, cash-generating units or relevant assets of contract cost will increase to the revised recoverable amount, while the carrying amount after increase does not exceed the carrying amount of the assets, cash-generating units or relevant assets of contract costs that would have been at the date of reversal had the impairment loss not been recognized previously (excluding amortization or depreciation). The reversed impairment loss is recognized in the profit or loss.

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(10) Financial instruments

When the consolidated company has become a party to the instrument contract, the financial assets and financial liabilities are to be recognized in the consolidated balance sheet.

For the initial recognition of the financial assets and financial liabilities, if the financial assets or financial liabilities are not measured at fair value through profit or loss, it is measured at fair value plus transaction cost that is directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction cost directly attributable to the acquisition or issuance of financial assets or financial liabilities that are measured at fair value through profit or loss is immediately recognized in the profit or loss.

1. Financial assets

The financial assets transaction are recognized and de-recognized in accordance with the trade date accounting.

(1) Classification of measurement

The classification of the Consolidated Company’s financial assets includes financial assets at fair value through profit or loss, and financial assets measured at amortized cost.

• A. Financial assets at fair value through profit and loss

Financial assets at fair value through income statements included financial assets at fair value through income statements and financial assets designated at fair value through income in statements. Financial assets mandatory at fair value through profit or loss include equity instrument investments not designated at fair value through other comprehensive income, and liability instrument investments not qualified for classifying as measured at amortized cost or at fair value through other comprehensive income.

Financial assets at fair value through profit or loss are measured at fair value, the dividends, interest, and gains or losses on remeasurements thereof are recognized as other gains and losses and gains or losses arising from re-measurements are recognized as other gains and losses. For more details about how to determine the fair value, please refer to Note 24 Notes to “Financial Instruments”

• B. Financial assets based on cost after amortization

If the financial assets of the consolidated company met both of the following conditions, classify as financial assets on the basis of cost after amortization:

• a. Financial assets held under particular mode of operation and the purpose of holding is for the collection of cash flow from contracts; and

• b. Cash flow generated on particular dates deriving from the contacts and the cash flow is wholly for the payment of principal and interest accrued from the outstanding amount of the principal.

Financial assets on the basis of cost after amortization (including cash and cash equivalents, and accounts receivable on the basis of cost

• 20 -

after amortization and other financial assets) shall be determined for the total book value under the effective interest rate method after the initial recognition net of the cost of any impairment after amortization for measurement. Any exchange gains or loss will be recognized as income.

Cash equivalents are time deposits within 3 months from the date of acquisition, with high liquidity, can be converted into cash with marginal risk on the change in value, and are used for the fulfillment of short-term commitment in cash settlement.

(2) Impairments of financial assets and contract assets

The consolidated company shall, on each balance sheet day, evaluate the financial assets on the basis of cost after amortization on the basis of anticipated credit loss (including accounts receivable), the investment of debt instruments at fair value through other comprehensive income, and loss from receivable rents and impairment of contract assets.

Accounts receivable and receivable rents shall be recognized for provisions for loss on the basis of anticipated credit loss within the perpetuity of the assets. Other financial assets shall be evaluated for any significant increase of risk from the day of initial recognition. If none is found, recognize for provision for anticipated credit loss along a period of 12 months. If it is, recognize for provision of anticipated credit risk within the perpetuity of the assets.

Anticipated credit loss is the weighted average loss of credit on the basis of the weight of the risk of default. Anticipated credit loss in a period of 12 months means the expected loss of credit from the financial instruments within 12 months due to default. Anticipated credit loss with the perpetuity of the financial instruments means the expected loss of credit from the financial instruments within the perpetuity of these financial instruments.

For internal credit risk management purpose, the Consolidated Company, without considering the collateral, determines the following circumstances indicating that a default has occurred on the financial instrument:

• A. There is internal or external information indicating that the debtor is no longer able to pay off a debt.

• B. Payments are overdue for more than 60 days, unless there are reasonable and supporting information showing that the delayed default benchmark is more appropriate.

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All impairment of financial assets is recognized through the reduction of the book value of the provisioned account. However, the provision for loss of investment of debt instruments at fair value through comprehensive income shall be recognized as other comprehensive income without the reduction of its book value.

(3) The de-recognition of financial assets

The consolidated company has financial assets de-recognized only when the contractual rights from the cash flows of a financial asset becomes invalid or when the financial assets are transferred and almost all the risks and rewards of the asset ownership have been transferred to other enterprises.

When particular entry of financial assets measured on the basis of cost after amortization is removed, the difference between its book value and consideration shall be recognized as income. When particular debt instruments measured at fair value through comprehensive income is entirely removed, the total sum of any other accumulated gains or loss of the difference between book value and consideration recognized as other comprehensive income shall be recognized as income. When particular equity instruments measured at fair value through comprehensive income are entirely removed, the accumulated gains of loss shall be directly transferred to retained earnings without being classified as income.

2. Equity instruments

The debt and equity instruments issued by the consolidated company are classified as financial liabilities or equity pursuant to the contractual agreements and the definition of financial liabilities and equity instruments.

Equity instruments issued by the consolidated company are recognized for an amount after deducting the direct issuing cost from the proceeds collected.

The Company’s equity retrieved is debited or credited to the equity. The Company’s equity purchased, sold, issued, or cancelled is not recognized in the profit or loss.

3. Financial liabilities

(1) Subsequent measurement

All financial assets shall be measured under the effective interest rate method on the cost after amortization except under the following circumstances:

Financial liabilities at fair value through profit and loss

Fair value through profit or loss financial liabilities are held for trading.

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The related gain or loss is recognized in other gains and losses/interest incurred is recognized in finance costs, and gains or losses arising from other remeasurements are recognized in other gains and losses when the financial liabilities held at fair value through profit or loss.

Please refer to Note 24 for the determination of fair value.

• (2) De-recognition of financial liabilities

When de-recognizing financial liabilities, the difference between the book amount and the consideration paid (including any transferred noncash assets or assumed liabilities) is recognized as profit or loss.

1. Convertible corporate bonds

The compound financial instruments (convertible corporate bonds) issued by the consolidated company are classified as financial liabilities and equity respectively in the original recognition according to the substance of the contractual agreement and the definition of financial liabilities and equity instruments.

In the original recognition, the fair value of the liability is estimated according to the prevailing market interest rate of a similar non-convertible instrument; also, it is measured at the amortized cost that is calculated according to the effective interest method before the conversion or maturity date. The liability of an embedded non-equity derivative is measured at fair value.

The conversion right classified as equity is equal to the residual amount of the total fair value of the compound instrument deducting the fair value of the liability determined individually and net of the income tax effect; also, it will not be measured subsequently. When the conversion right is executed, the relevant liability and equity amount will be transferred to the capital stock and additional paid-in capital - issuance premium. If the conversion rights of the convertible corporate bonds have not been executed on the due date, the amount recognized in the equity will be transferred to the additional paid-in capital - issuance premium.

The relevant transaction costs of the issuance of convertible corporate bonds are amortized to the liabilities of the instrument (included in the book value of the liability) and the equity (included in the equity) in proportion to the total amortization amount.

• (11) Recognition of revenue

The consolidated company, after identifying the performance obligations, had the transaction price amortized to each performance obligation and recognized as income when the performance obligations were fulfilled.

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For contract of goods transferred or service performed and proceed collected within one year, the significant financial component is not trade price adjusted.

Commodity sales revenue

Good sales revenue is from the sales of cooling fan. As the customers own the right for pricing and use, take the main responsibility for re-sell and take obsolete risk at the point of shipping, the consolidated company recognized sales revenue and account receivable at that point.

• (12) Lease

The Company assesses whether or not the arrangement is (or includes) a lease arrangement on the agreement date

The consolidated company is the lessee

Except for recognizing low-value asset leases applying to exemption and lease payments for short-term leases being recognized as an expense on a straight-line basis over the lease term, other leases will be recognized as right-of-use assets and lease liabilities at lease commencement date.

The right-of-use asset is measured at cost (including the amount equal to the lease liability at its initial recognition, lease payments made before the commencement of the lease less any received, any incurred by the lessee, and an estimate of costs to be incurred by the restoring the underlying asset to the condition required) less any depreciation and any accumulated impairment losses. Additionally, the cost is subsequently adjusted for any. Right-of-use assets are separately presented on the Balance Sheets.

The right-of-use assets were depreciated on a straight-line basis over the period from the commencement date of the lease to expiration of its useful life or expiration of the lease term, whichever date is earlier. If the ownership of the underlying asset will be acquired at the end of the lease period, or if the cost of the right-of-use asset reflects exercising an option, the asset will be depreciated over the period from the commencement date of the lease to expiration of the useful life of the underlying asset.

The present values of lease liabilities are measured initially by the lease payments (including fixed payments, in-substance fixed payments, variable lease payments dependent on an index or rate, amounts expected to be repaid by the lessee under the residual value guarantee, the exercise price of a purchase option that the lessee is reasonably certain to exercise, and payments for terminating the lease if the lease term reflects early termination). If the implied interest rate of the lease is easily determined, the lease payments will be discounted to their present value using that interest rate. If such interest rate is not easily determined, the incremental borrowing rate will be used.

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Subsequently, the lease liabilities are measured at amortised cost using effective interest method and the interest expenses are amortized over the lease term. If there is a change in future lease payments due to changes in the lease term, the expected payment amount under the residual value guarantee, the evaluation of the purchase option of the underlying asset, or changes in the index or rate used to determine the lease payments, the Company remeasures the lease liability and adjusts the right-ofuse asset accordingly, except if the carrying amount of the right-of-use asset has been reduced to zero, where the remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not accounted for as separate leases, the remeasurement of the lease liability due to a reduction in the scope of the lease decreases the right-of-use asset and recognizes a gain or loss on partial or full termination of the lease; the remeasurement of the lease liability due to other modifications adjusts the right-of-use assets. Lease liabilities are separately presented on the Balance Sheets.

(13) Borrowing costs

Borrowing costs directly belonging to acquiring, building or producing assets that meet the requirements are part of the costs of such assets until the completion of all necessary activities that the assets reaching the status of expected use or sale.

If specific borrowings are temporarily used for investment before the occurrence of capital expenses that meet the requirements, the investment revenues earned will be deducted from the borrowing costs that meet the capitalization conditions.

In addition to the transaction stated in the preceding paragraph, all other loan costs are recognized as profit and loss upon occurring.

(14) Government grant

A government subsidy can only be recognized when it is firmly believed that the Consolidated Company will comply with the terms added to the government subsidy and will receive such subsidy.

Government grants related to revenue are recognized in other income on a systematic basis over the period in which the related costs for which they are intended to compensate are recognized as expenses by the consolidated company. Government grants whose primary condition is that the consolidated company qualifying for them should purchase, construct or otherwise acquire non-current assets are recognized as deferred income, which should be recognized in profit or loss on a reasonable and systematic basis over the useful life of the relevant asset.

If the government subsidy is used for compensating expenses or losses that have already occurred or for the purpose of immediate financial support to the Consolidated Company without any related cost in the future, it will be recognized as income during the receivable period.

If a government grant is in the form of a transfer of a non-monetary asset for use by the consolidated company, the grant is recognized and measured at the same amount as the non-monetary asset.

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The difference between the government loan amount received at below-market interest rates by the consolidated company and the fair value of the loan based on the market interest rate at the time is recognized as government grant.

• (15) Employee benefits

• Short-term employee benefits

Liabilities related to short-term employee benefits are valued by the nondiscounted amount of expected payment exchanging for employee services.

2. Retirement benefits

Under the defined contribution pension plan, the pension amount appropriated during the service years of the employees is recognized as an expense.

• (16) Income tax

Income tax expense is the sum of the current income tax and deferred income tax.

1. Income tax expenses in the current period

The consolidated company determines the current income (loss) in accordance with the regulations of the income tax filing jurisdictions to calculate the income tax to be paid (recovered from).

Additional income tax on unappropriated earnings is calculated in accordance with the provisions of the Income Tax Act of the Republic of China, to be recognized in the year of the shareholder resolution meeting.

The adjustment to prior period income tax payable is booked as current income tax.

2. Deferred tax

Deferred tax is computed in accordance with the temporary differences between the book value of assets and liabilities and the tax bases of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences. Deferred income tax assets are recognized when there is a likelihood to have taxable income available for income tax credit resulting from the expenses of deductable temporary differences and tax loss carryforwards.

Deferred income tax liabilities are recognized for all taxable temporary differences related to the subsidiary, unless the consolidated company can control the timing of reversal of the temporary differences and that the temporary differences are unlikely to be reversed in the foreseeable future. The deductible temporary differences related to such investments are recognized as deferred income tax assets when there is likely a sufficient taxable income available for realizing a temporary difference and within the expected reverse in the foreseeable future.

The book amount of deferred income tax asset must be reviewed at each balance sheet date. The book amount of those that no longer have any sufficient taxable income to recover all or part of the asset, should be adjusted down. Those that are not originally recognized as deferred income tax assets should also be

• 26 -

reexamined at each balance sheet date. The book amount of those that are likely to generate taxable income in the future for the recovery of all or part of its assets should be adjusted up.

Deferred income tax assets and liabilities are measured in accordance with the expected liability liquidation or the tax rate in the period when the asset is realized. The tax rate is based on the tax rate and tax laws that are legislated or substantively legislated at the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequence resulted from the book value of the assets or liabilities expected to be recovered or liquidated on the balance sheet date.

3. Current & deferred income taxes

Current and deferred income taxes are recognized in the profit or loss, except for the current and deferred income taxes related to the items recognized in other comprehensive profit or loss or directly included in the equity are recognized in the other comprehensive profit or loss or directly included in the equity.

5. Main source of significant accounting judgment, estimates and assumptions uncertainty

The consolidated company at the time of adopting accounting policies, for the information hard to obtain from other sources, should have the relevant judgments, estimates, and assumptions made by the management in accordance with the historical experience and other essential factors. Actual results may differ from the estimates.

The accounting policies, estimates, and key assumptions adopted by the consolidated company have been assessed by management, and no significant uncertainties exist regarding accounting judgments, estimates, and assumptions.

6. Cash and cash equivalents

egarding accounting judgments, estimates, Cash and cash equivalents	and assumptions.
Cash on hand and petty cash Bank checks and demand deposits Cash equivalents Time deposits with an initial maturity of less than three months	December 31, 2025 $ 1,563 417,904 670,789 $ 1,090,256	December 31, 2024
			$ 1,283 142,301 604,462 $ 748,046

The interest rate range of time deposit as of balance sheet date listed below:

Time deposits	December 31, 2025 1.05%~3.89%	December 31, 2024
		0.45%~4.8%

• 27 -

7. Financial instruments measured at fair value through profit or loss

December 31, 2025 December 31, 2024

Held-for-trade financial assets-

Current Derivative instrument-buy-/sell-back of convertible bonds Held-for-trade financial liabilities- Current Derivative instrument-buy-/sell-back of convertible bonds	$ - $ 775	$ 19 $ -

8. Notes and accounts receivable, net

Notes and accounts receivable, net
Notes receivable Receivable accounts- based on cost after amortization Less: Allowance for losses	December 31, 2025 $ 669 623,172 ( 3,495) $ 620,346	December 31, 2024
	(	(	$ 1,468 484,491 4,479) $ 481,480

The consolidated company adopts the simplified method in IFRS 9 to recognize the allowance for loss of the accounts receivable according to the expected credit losses of the given duration. The full-lifetime expected credit losses are calculated using Provision Matrix, which considers the historical default records and current financial status, industry economic conditions, as well as GDP forecast and industry outlook. Due to the historical experience of credit losses of the consolidated companies, there is no significant difference in the loss patterns of different customer groups. Therefore, the provision matrix does not further distinguish the customer base, and only sets the expected credit loss rate based on the overdue days of receivables.

The consolidated company’s allowance for loss of receivables is determined according to the preparation matrix as follows:

December 31, 2025

December 31, 2025
Expected credit loss rate Total book value Allowance for loss (expected credit loss of the given duration) Cost after amortization December 31, 2024		Not overdue	Overdue 1 to 30 days 5.91%~7.77% $ 3,134 ( 191) $ 2,943 Overdue 1 to 30 days 5.26%~8.49% $ 5,961 ( 317) $ 5,644	Overdue 31 to 60 days		Overdue over 60 days			Total
	(	0.09%~0.36% $ 617,197 1,565) $ 615,632 Not overdue		25.16%~28.82% $ 1,538 ( 436) $ 1,102 Overdue 31 to 60 days		100% $ 1,303 ( 1,303) $ - Overdue over 60 days		(	- $ 623,172 3,495) $ 619,677 Total
Expected credit loss rate Total book value Allowance for loss (expected credit loss of the given duration) Cost after amortization
	(	0.10%~0.34% $ 472,868 1,331) $ 471,537	(	(	29.95% $ 4,042 1,211) $ 2,831	(	100% $ 1,620 1,620) $ -	(	- $ 484,491 4,479) $ 480,012

December 31, 2024

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Changes in the allowance loss of the accounts receivable are as follows:

Balance, beginning of year Add: Impairment loss reversal in current period Less: Write-offs in current period Foreign currency translation differences Balance, end of year	2025 $ 4,479 ( 971 ) - ( 13) $ 3,495	2024
		$ 6,939 ( 1,809 ) ( 711 ) 60 $ 4,479

9. Inventories

nventories
Finished goods Work-in-process goods Raw materials	December 31, 2025 $ 75,470 58,592 45,249 $ 179,311	December 31, 2024
			$ 69,758 57,252 56,642 $ 183,652

The loss allowance on inventory valuation is NTD 103,072 and NTD 100,446 thousand on December 31, 2025 and 2024 respectively.

The costs of goods sold for the years 2025 and 2024 included loss of inventory in valuation amounting to NTD 2,626 thousand and NTD 6,455 thousand, respectively.

10. Other assets

Other assets
Current Prepaid expenses Prepayment for Purchases Excess business tax paid Others Non-current Deferred income tax assets Prepayments for equipment Additional (Note 27) Refundable deposits	December 31, 2025 $ 11,103 2,850 7,979 13 21,945 47,413 144,757 9,978 202,148 $ 224,093	December 31, 2024
			$ 6,652 1,393 1,477 8 9,530 44,793 5,703 10,092 60,588 $ 70,118

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11. Subsidiaries

Subsidiaries included in the consolidated financial statements

The business entities of the consolidated financial statements are as follows:

Investor The Company The Company The Company The Company United Strategy Inc. United Strategy Inc. POWER LOGIC TECH. INC Power Logic Holdings Inc.	Subsidiaryname Power Logic Holdings Inc. United Strategy Inc. POWER LOGIC TECH. INC Sunny Sharp International Limited (including Taiwan branch) DONG GUAN DONG LI DIAN ZI CO. LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD CICHENG TECHNOLOGY CO., LTD. Power Logic Tech（Thailand）Co. Ltd	Nature of the operation Investment holding Investment holding Sales of cooling fan Investment in holding company and sales of cooling fan Production and sale of cooling fan Production and sale of cooling fan Production and sale of cooling fan Production and sale of cooling fan	The share-holding percentage as of December31,2025 100% 100% 100% 100% 100% 100% 80% 100% (Note)	The share-holding percentage as of December31,2024
				100% 100% 100% 100% 100% 100% 80% -

Note: In April 2025, Power Logic Holdings Inc. was approved for the establishment of Power Logic Tech (Thailand) Co. Ltd. In 2025, the Company contributed working capital of USD 9,600 thousand (equivalent to NTD 299,903 thousand). An additional USD 2,400 thousand (equivalent to NTD 74,965 thousand) will be contributed in March 2026. The estimated total investment amount is USD 13,000 thousand.

12. Property, plant, and equipment

Cost Balance, beginning of year Increase in current period Disposition in the year Reclassification Net exchange differences Balance, end of year Accumulated depreciation Balance, beginning of year Increase in current period Disposition in the year Net exchange differences Balance, end of year Net amount at the end of the year				2025
	Land	Buildings and leasehold improvement	Machine and equipment	Transportatio n equipment	Furniture and fixtures	Other equipment	Total
	$ 516,061 - ( 36,807 ) - - $ 479,254 $ - - - - $ - $ 479,254	$ 779,791 28,774 ( 19,868 ) - ( 10,053) $ 778,644 $ 109,943 25,083 ( 2,668 ) ( 1,145) $ 131,213 $ 647,431	$ 374,104 15,412 ( 1,414 ) 3,965 ( 5,114) $ 386,953 $ 191,637 34,650 ( 1,327 ) ( 2,104) $ 222,856 $ 164,097	$ 12,786 2,150 ( 354 ) - ( 205) $ 14,377 $ 5,494 872 ( 318 ) ( 94) $ 5,954 $ 8,423	$ 26,215 1,633 ( 577 ) - ( 147) $ 27,124 $ 22,760 1,135 ( 573 ) ( 101) $ 23,221 $ 3,903	$ 126,671 20,428 ( 108 ) 112 ( 1,804) $ 145,299 $ 77,424 13,566 ( 105 ) ( 1,007) $ 89,878 $ 55,421	$ 1,835,628 68,397 ( 59,128 ) 4,077 ( 17,323) $ 1,831,651 $ 407,258 75,306 ( 4,991 ) ( 4,451) $ 473,122 $ 1,358,529

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Cost Balance, beginning of year Increase in current period Disposition in the year Reclassification Net exchange differences Balance, end of year Accumulated depreciation Balance, beginning of year Increase in current period Disposition in the year Reclassification Net exchange differences Balance, end of year Net amount at the end of the year						2024	2024
		Land	Buildings and leasehold improvement		Machine and equipment	Transportatio n equipment		Furniture and fixtures	Other equipment	Total
		$ 286,501 229,560 - - - $ 516,061 $ - - - - - $ - $ 516,061		$ 671,296 83,124 - - 25,371 $ 779,791 $ 82,975 23,678 - - 3,290 $ 109,943 $ 669,848	$ 306,761 50,116 ( 51 ) 5,175 12,103 $ 374,104 $ 153,189 32,323 ( 48 ) 337 5,836 $ 191,637 $ 182,467		$ 12,153 - - - 633 $ 12,786 $ 4,382 873 - - 239 $ 5,494 $ 7,292	$ 25,488 404 ( 37 ) - 360 $ 26,215 $ 20,889 1,652 ( 33 ) - 252 $ 22,760 $ 3,455	$ 112,468 9,654 ( 63 ) ( 621 ) 5,233 $ 126,671 $ 60,646 14,371 ( 61 ) ( 337 ) 2,805 $ 77,424 $ 49,247	$ 1,414,667 372,858 ( 151 ) 4,554 43,700 $ 1,835,628 $ 322,081 72,897 ( 142 ) - 12,422 $ 407,258 $ 1,428,370

The net operating lease for buildings and leasehold improvements as of December 31, 2025 and 2024 were NTD 33,897 thousand and NTD 37,339 thousand, respectively.

The subsidiary, Power Logic Tech. Inc., sold the real estate and parking space at 2F., No. 16, Jian 8th Rd., Zhonghe Dist., New Taipei City, on February 27, 2025, with the transfer of ownership completed on March 26, 2025. The sale price was NTD 69,101 thousand (before tax), resulting in a gain on disposal of NTD 15,094 thousand (recorded under other gains and losses). The full amount of the proceeds has been received.

On September 23, 2024, the subsidiary Power Logic Tech. Inc. purchased the land and real estate (building) for use at 15F, No. 166, Jian 1st Rd, Zhonghe District, New Taipei City. The transaction was completed on November 19, 2024, for an amount of NTD 300,400 thousand, and the said transaction price was paid in full.

Depreciation expenses is appropriated in accordance with the straight line method and the years of useful life illustrated below:

eful life illustrated below:
Buildings	5 to 48 years
Leasehold improvement	5 to 10 years
Machine and equipment	2 to 10 years
Transportation equipment	5 to 10 years
Furniture and fixtures	2 to 10 years
Other equipment	2 to 10 years

The amount of real estate, plant and equipment registered for secured loan, please refer to Note 26.

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13. Lease agreement

(1) Right-of-use assets.

agreement Right-of-use assets.
Carrying amount of the right- of-use asset Land Buildings Transportation equipment Addition of right-of-use assets Depreciation expense of the right-of-use asset Land Buildings Transportation equipment	December 31, 2025 $ 17,614 14,442 5,976 $ 38,032 2025 $ 5,846 $ 409 15,252 3,802 $ 19,463	December 31, 2024
			$ 18,392 30,580 3,932 $ 52,904 2024
			$ 44,936 $ 422 15,703 2,171 $ 18,296

The sub-subsidiary of the Company, POWER LOGIC (JIANGXI TAI YI) CO., LTD, acquired the land use right of the original factory site from Anfu County Industrial Construction Investment Development Co for RMB4,493 thousand in 2020 and proceeded to improve the factory and establish the production line. The stateowned land use rights of the People’s Republic of China have been obtained for the above-mentioned lands with 50 years of economic life, the use rights of which will expire in January 2068.

Except for the aforesaid added and recognized depreciation expenses, the rightof-use assets of the consolidated company have not been significantly subleased or impaired as of 2025 and 2024.

(2) Lease liability

impaired as of 2025 and 2024. Lease liability
Carrying amount of the lease liabilities Current Non-current	December 31, 2025 $ 17,962 $ 3,064	December 31, 2024
			$ 18,083 $ 17,008

The range of discount rates for lease liabilities is as follows:

Buildings Transportation equipment	December 31, 2025 2.00%~3.80% 2.28%~2.47%	December 31, 2024
		2.00%~3.80% 2.00%~2.41%

• 32 -

(3) Other lease information

Other lease information
Low-value asset lease expense Total cash of leases (outflow)		2025 $ 350 $ 20,419)		2024
	(		(	$ 356 $ 19,191)

14. Intangible assets

Intangible assets
Cost Balance, beginning of year Increase in current period Decrease for the year Reclassification Net exchange differences Balance, end of year Accumulated amortization Balance, beginning of year Amortized in current period Decrease for the year Net exchange differences Balance, end of year Net amount at the end of the year	2025 $ 33,659 4,429 ( 4,407 ) 880 ( 335) $ 34,226 $ 24,644 5,610 ( 4,407 ) ( 141) $ 25,706 $ 8,520	2024
		$ 29,117 906 ( 560 ) 3,418 778 $ 33,659 $ 20,683 4,018 ( 560 ) 503 $ 24,644 $ 9,015

Intangible assets composed mainly by computer software and amortized over 3–10 years of useful life.

15. Borrowings

(1) Short-term borrowings

rs of useful life. wings Short-term borrowings
Guaranteed loans(Note 26) Bank’s debt	December 31, 2025 $ 52,500	December 31, 2024
			$ 70,000

The bank borrowing rates were 2.45% and 2.42% on December 31, 2025 and 2024.

(2) Long-term borrowings

2024. Long-term borrowings
Guaranteed loans(Note 26) Bank’s debt Less: Amount due in one year Long-term borrowings	December 31, 2025 $ 372,900 29,280 $ 343,620	December 31, 2024
			$ 402,180 29,280 $ 372,900

• 33 -

The bank long-term loan interest rate were 2.45% and 2.47%–2.58% on December 31, 2025 and 2024, respectively.

• (3) The information of consolidated company registered as mortgage for bank borrowings secured loan, please refer to Note 26.

• (4) The information of endorsement guarantee provided by consolidated company, please refer to Note 29.

16. Other payables

refer to Note 29. Other payables
Current Salaries payable Insurance and housing fund payable Processing expenses payable Temporary employee service payable Commission and marketing expense Other payable Equipment payables Others	December 31, 2025 $ 83,549 41,846 35,886 1,705 354 31,746 6,076 9,211 $ 210,373	December 31, 2024
			$ 58,249 53,377 38,755 859 573 27,896 5,537 3,303 $ 188,549

17. Corporate bonds payable

Corporate bonds payable
The third domestic unsecured convertible corporate bond Less: Domestic third unsecured convertible corporate bonds amount net of depreciation The fourth domestic unsecured convertible corporate bond Less: Domestic fourth unsecured convertible corporate bonds amount net of depreciation Less: Amount due in one year	December 31, 2025 $ - - 250,000 ( 16,455 ) - $ 233,545	December 31, 2024
		$ 47,000 ( 612 ) - - ( 46,388) $ -

• (1) The Board of directors approved to issue unsecured convertible bond in Taiwan for the third time on May 6, 2022. The issuance is approved by Letter No. FinancialSupervisory-Securities-Corporate-11103468261 of the Financial Supervisory Commission. The unsecured convertible bond is issued in Taiwan for the third time on August 12, 2022 with terms below,

• Total Issued: NTD 200,000 thousand.

• 34 -

• Par value and issue price: NTD 100 thousand each; issued at 100% of the par value.

• Stated rate: annual interest 0%

• Duration: 3 years; August 12, 2022 to January August 12, 2025.

• Redemption method of the Company:

• (1) Redemption at maturity date:

The convertible bonds except be redeemed, buy-back, or converted, the Company repay with bond face value by cash at the maturity date.

• (2) Redeem before maturity date

From the next date after issuance of 3 months to the 40 days before the maturity date, if the common stock closing price exceed 30% of conversion price for continuous 30 trade days, the Company could collect all bonds at face value by cash.

From the next date after issuance of 3 months to the 40 days before the maturity date, if the outstanding balance is lower than 10% of total issuance amount, the Company could collect all bonds at face value by cash.

1. Sell back:

The bond holder could ask the Company to redeem the convertible bond hold at face value plus interest compensation after 2 years of issuance.

1. Conversion:

2. (1) Conversion period:

Start from the next date after issuance of 3 months and end at the maturity date.

• (2) Conversion price:

The conversion price is set by choosing one of the simple arithmetic average closing prices of the Company’s common shares over the period of one, three or five business day(s) prior to the record date to be the benchmark price, multiplied by the conversion premium rate of 105.1% as the basis of the calculation. The conversion price is set at NTD 48.50 per share upon issuance. As the Company issued common shares through a cash capital increase in 2025, the conversion price of the Company’s convertible bonds has been adjusted to NTD 40.91 per share in accordance with the terms of the contract.

• 35 -

• (3) Conversion price adjustment:

After the conversion price defined before the actual issuance date, the conversion price should be adjusted in accordance with the price adjustment formula if ex-rights or ex-dividend exists.

1. The convertible bond issued on August 12, 2022 includes liability and equity component. The equity component is presented as additional paid-in capitalStock option under equity. The effective interest rate of liabilities components is initially recognized at 2.17%.

initially recognized at 2.17%.
Issuance price (deduct transaction cost NTD 2,825
thousand)		$	197,175
Equity component	(		8,872 )
Financial liabilities-conversion and sell-back	(		789)
liability component at issuance date			187,514
Interest calculated at the effective rate of 2.17%			7,035
Conversion of bonds payable into common shares	(		194,049 )
Redemption of corporate bonds	(		500)
Liability component on December 31, 2025		$	-

On August 12, 2025, the Company redeemed the remaining unconverted convertible bonds with a face value of NTD 500 thousand and reclassified the capital reserve – equity component of issued convertible bonds – stock warrants to capital reserve – lapsed stock warrants, amounting to NTD 22 thousand.

During the period of issuance of the third domestic unsecured convertible corporate bonds mentioned above, a total face value of NTD 199,500 thousand in bonds was converted into 4,512 thousand shares of the Company’s common stock.

• (2) The Board of directors approved to issue unsecured convertible bond in Taiwan for the fourth time on May 9, 2025 and June 20, 2025. The issuance is approved by Letter No. Financial-Supervisory-Securities-Corporate-11403518031 of the Financial Supervisory Commission. The unsecured convertible bond is issued in Taiwan for the fourth time on August 27, 2025 with terms below,

• Total Issued: NTD 250,000 thousand.

• Par value and issue price: NTD 100 thousand each; issued at 100% of the par value.

• Stated rate: annual interest 0%

• Duration: 3 years; August 27, 2025 to August 27, 2028.

• 36 -

5. Redemption method of the Company:

• (1) Redemption at maturity date:

The convertible bonds except be redeemed, buy-back, or converted, the Company repay with bond face value by cash at the maturity date.

• (2) Redeem before maturity date

From the next date after issuance of 3 months to the 40 days before the maturity date, if the common stock closing price exceed 30% of conversion price for continuous 30 trade days, the Company could collect all bonds at face value by cash.

From the next date after issuance of 3 months to the 40 days before the maturity date, if the outstanding balance is lower than 10% of total issuance amount, the Company could collect all bonds at face value by cash.

1. Sell back:

The bond holder could ask the Company to redeem the convertible bond hold at face value plus interest compensation after 2 years of issuance.

1. Conversion:

2. (1) Conversion period:

Start from the next date after issuance of 3 months and end at the maturity date.

(2) Conversion price:

The conversion price is set by choosing one of the simple arithmetic average closing prices of the Company’s common shares over the period of one, three or five business day(s) prior to the record date to be the benchmark price, multiplied by the conversion premium rate of 105.01% as the basis of the calculation. The conversion price is set at NTD 79.79 per share upon issuance. As the Company issued common shares through a cash capital increase in 2025, the conversion price of the Company’s convertible bonds has been adjusted to NTD 78.61 per share in accordance with the terms of the contract.

• (3) Conversion price adjustment:

After the conversion price defined before the actual issuance date, the conversion price should be adjusted in accordance with the price adjustment formula if ex-rights or ex-dividend exists.

• 37 -

• The convertible bond issued on August 27, 2025 includes liability and equity component. The equity component is presented as additional paid-in capitalStock option under equity. The effective interest rate of liabilities components is initially recognized at 2.60%.

initially recognized at 2.60%.
Issuance price (deduct transaction cost NTD 2,806
thousand)		$ 247,194
Equity component	(	15,128 )
Financial liabilities-conversion and sell-back	(	594)
liability component at issuance date		231,472
Interest calculated at the effective rate of 2.60%		2,073
Liability component on December 31, 2025		$ 233,545

18. Retirement benefits plan

The pension system of the “Labor Pension Act” that is applicable to the Consolidated Company is a defined contribution pension plan subject to government management with an amount equivalent to 6% of the monthly salary appropriated and contributed to the personal account with the Bureau of Labor Insurance. The pension costs for the defined contribution plan recognized by the Consolidate Company for the years 2025 and 2024 were NTD 3,820 thousand and NTD 3,123 thousand, respectively.

The subsidiaries registered in P.R.C contribute 13% of total salary to endowment insurance in accordance with local endowment insurance plan. The pension fund management is the responsibility of management. The company’s responsibility is contribution monthly without further obligations. The defined contributed pension cost recognized in 2025 and 2024 is NTD 16,177 thousand and NTD 21,014 thousand per previous pension plan.

19. Equity

(1) Share Capital

vious pension plan. Share Capital
Authorized number of shares (thousand shares) Authorized capital Number of shares issued with fully paid-in capital (thousand shares) Outstanding capital	December 31, 2025 100,000 $ 1,000,000 41,122 $ 411,225	December 31, 2024
			100,000 $ 1,000,000 37,722 $ 377,223

On May 9, 2025, the Board of Directors resolved to issue new shares through a cash capital increase. On August 6, 2025, the Financial Supervisory Commission approved and registered the capital increase. The Company decided to issue 2,300 thousand shares for cash capital increase on August 15, 2025, and had it issued at a premium of NTD 62 per share on August 25, 2025. The base date for capital increase and stock subscription is scheduled on September 19, 2025.

• 38 -

Of the proposed new issuance mentioned above, 230 thousand shares will be reserved for employee stock option on May 2025. Accordingly, an employee compensation (under salary expense) and capital surplus of NTD 4,646 thousand were recognized, based on the fair value of the equity right instrument measured on the granted date.

On the “Third Domestic Unsecured Convertible Bonds” issued by the Company from 2025 and 2024, the bondholders used 465 and 922 convertible bonds for conversion to the issued 1,100 and 2,082 thousand new shares.

(2) Capital surplus

Capital surplus
May be applied to cover accumulated deficit, distributed in cash or transferred to capital. Other capital surplus of shares Lapsed stock options May not be used for any purpose. Convertible corporate bond equity constituents - stock options	December 31, 2025 $ 1,043,900 8,487 15,128 $ 1,067,515	December 31, 2024
			$ 885,055 8,465 2,085 $ 895,605

The additional paid-in capital from premium on stock issuance can be used to offset deficit. When the Corporation incurs no loss the additional paid-in capital may be transferred to capital or distributed in cash, but the transfer to capital is limited to designated portion of paid-in capital.

(3) Retained earnings and Dividend Policy

The Company has authorized the Board of Directors to handle earnings distribution related matters, and has dividends and bonuses paid in cash entirely or partially; also, has it reported in the latest shareholders’ meeting.

According to the Company’s Articles of Incorporation, if there are any retained earnings at the year-end, in addition to covering the accumulated deficit, the remaining earnings shall be retained or distributed in accordance with the resolution of the Board of Directors. Please refer to Note 20-(7) for the Company’s policy on the distribution of remuneration to employees, directors and supervisors.

According to the Articles of Incorporation, based on the capital expenditure, business expanding, improve financial plan and sustainable development requirements as the Company is at the growing phase, the dividend policy is to distribute cash or stock dividend based on capital expenditure budget and capital requirement.

• 39 -

Except restricted by public company related laws, the earnings, if any, after closing account every year, the Board of Directors should propose earning distribution plan to shareholders’ meeting as method and priority below,

• (a) Payment of tax and duty;

• (b) Covering of accumulated loss of prior years (if any);

• (c) Set aside 10% as the legal reserve per public company related laws, unless the legal reserve has achieved the Corporation’s paid-in capital.

• (d) Set the special reserve per public company related laws or Authority’s request;

• (e) The earnings of the year after deducting item (a) to (d) previous mentioned, adding the accumulated undistributed earnings of prior year is the distributable earnings. The earnings shall be distributed after the plan proposed by the Board of Directors and approved by the stockholders’ meeting. The dividend can be distributed in cash or stock. To be consistent with Cayman Islands laws, the minimum dividend should be 10% of earnings of the year after deducting item (a) to (d) previous mentioned, and the cash dividend percentage is no lower than 10% of total stockholders’ dividend and the upper limit is 100%.

The Company shall recognize and reverse special reserve in accordance with the law and regulations, and the “FAQ on the applicability of the recognition of special reserve after the adoption of IFRSs” by the Company.

The Company’s 2024 and 2023 earnings distributions are planned as follows:

Legal reserve appropriated Appropriation (reversal) of special reserve Cash dividends Cash dividend per share (NTD)		Distribution of retained earnings	Distribution of retained earnings	Distribution of retained earnings
		2024 $ 11,954 $ 56,738) $ 90,957 $ 2.40		2023
	(			$ 11,852 $ 23,220 $ 102,463 $ 2.75

The distribution of cash dividends stated in the preceding paragraph had been resolved in the board meeting on March 10, 2025 and March 14, 2024, respectively. The other earnings distribution items were resolved at the regular shareholders’ meeting on May 29, 2025 and May 31, 2024, respectively.

The Company had resolved in the board meeting the earnings distribution of 2025 on March 9, 2026 as follows:

on March 9, 2026 as follows:
Legal reserve appropriated Appropriation of special reserve Cash dividends Cash dividend per share (NTD)		2025
		$ 20,978 $ 7,616 $ 164,490 $ 4

• 40 -

The cash dividend above has resolved by the board meeting and is pending for the resolution for the distribution from the shareholders’ meeting on May 28, 2026.

• (4) Other equity

Exchange differences on Translating the financial statements of foreign operations

20.	Balance, beginning of year Current Exchange differences from financial statements of foreign operating entities Reclassification adjustment Disposal of foreign operations Current period other comprehensive income Balance, end of year (5) Non-controlling interest Balance, beginning of year Net loss for the year Balance, end of year Consolidated net income (1) Interest revenue Bank deposits (2) Other income Rental income Government grants (Note 23) Others	2025 $ 14,519 ( 7,616 ) - ( 7,616) $ 6,903 2025 $ 7,816 ( 1,628) $ 6,188 2025 $ 21,112 2025 $ 3,987 11,617 19,736 $ 35,340	2024	2024
			( $ 56,738 ) 61,580 9,677 71,257 $ 14,519 2024
		(	(	$ 9,071 1,255) $ 7,816 2024
				$ 19,122 2024
				$ 5,339 49,052 5,505 $ 59,896

• 41 -

(3) Other gains and losses

Other gains and losses
Net gain or loss on disposal of property, plant, and equipment Net foreign exchange gain (loss) Gain (loss) on financial assets and liabilities at fair value through profit and loss Others	2025 $ 14,976 ( 13,971 ) ( 197 ) ( 933) ($ 125)	2024
		( $ 9 ) 25,795 123 - $ 25,909

(4) Financial cost

Financial cost
Bank’s debt Interest on the convertible bonds Interest on lease liabilities Total Depreciation, and amortization Property, plant, and equipment Right-of-use assets. Intangible assets Total Depreciation expense summary by function Operating cost Operating expenses Amortization expense summary by function Operating cost Operating expenses		2025 $ 10,898 2,476 1,052 $ 14,426 2025 $ 75,306 19,463 5,610 $ 100,379 $ 55,735 39,034 $ 94,769 $ 629 4,981 $ 5,610		2024
				$ 6,333 1,516 1,403 $ 9,252 2024
				$ 72,897 18,296 4,018 $ 95,211 $ 54,523 36,670 $ 91,193 $ 467 3,551 $ 4,018

(5) Depreciation, and amortization

• 42 -

(6) Employee benefits expenses

Employee benefits expenses
Short-term employee benefits Salaries and wages Labor insurance and national health insurance Share-based payment transaction - equity-settled Retirement benefits (Note 18) Other employee benefits Total employee benefits expenses Summary by function Operating cost Operating expenses		2025 $ 381,991 16,966 4,646 19,997 29,506 $ 453,106 $ 267,843 185,263 $ 453,106		2024
				$ 294,387 17,611 - 24,137 15,567 $ 351,702 $ 203,642 148,060 $ 351,702

• (7) Remuneration to employees, Directors and Supervisors

According to the Articles of Incorporation, the Company shall appropriate no lower than 1.5% of profit before tax, distribution of employee and director/supervisor remuneration for the current year, as remuneration to employees and no more than 2% as remuneration to directors. The compensation of employees and remuneration to Directors and Supervisors assessed for 2025 and 2024 were adopted by a resolution of the Board of Directors on March 9, 2026 and March 10, 2025, respectively as follows:

Estimate on ratio

Estimate on ratio
Remuneration to employees Remuneration to directors/supervisors Amount Remuneration to employees Remuneration to directors/supervisors		2025 6% 2% 2025 Cash $ 14,084 $ 4,695		2024
				4% 2% 2024
				Cash
				$ 5,192 $ 2,596

If there are still changes in the amount specified in the consolidated financial statement after announcement, proceed to the accounting of change and adjusted for booking in the next fiscal year.

The actual amount for remuneration to employees and Directors and Supervisors in 2024 and 2023 did not vary from the amount recognized in the consolidated financial statements of 2024 and 2023.

• 43 -

For further information on the appropriation of remuneration to the employees and Directors and Supervisors by the Company, visit the “MOPS” website of Taiwan Stock Exchange Corporation.

21. Income tax

• (1) Income tax recognized in profit or loss

The major components of income tax expense are as follows:

Income tax expenses in the current period Incurred during the year Additional 5% tax levied on undistributed earnings Prior year adjustment Deferred tax Incurred during the year Income tax expense recognized in the profit or loss		2025 $ 59,760 70 4,065 63,895 26,582 $ 90,477		2024
				$ 24,822 - 3,924 28,746 8,085 $ 36,831

(2) Income tax expense calculated by net income before tax per book and tax rate regulated by laws adjusted as below:

by laws adjusted as below:
		2025		2024
Profit before income tax		$ 298,629		$ 155,115
Income tax expense of net income
before tax at the statutory tax
rate (25%)		$ 74,658		$ 38,780
Non-deductible expenses and
losses for tax purposes		2,406		294
Non-taxable income	(	14,473 )	(	16,958 )
Sale of house and land
transactions income tax		2,078		-
Additional levy on undistributed
earnings		70		-
Withholding tax for overseas
earnings remittance		23,363		16,334
Unrecognized temporary
differences	(	4,611 )	(	3,783 )
Others		7		4
Income tax expense of prior years
adjusted in the current year		4,065		3,924
Effect of variation in taxation rates
on the consolidation of the
group and individual entities.		2,914	(	1,764)
Income tax expense recognized in
the profit or loss		$ 90,477		$ 36,831

Because the parent company, Power Logic Holdings Inc., United Strategy Inc. and Sunny Sharp International Limited registered in Cayman and Samoa, there is no income tax.

• 44 -

The income tax rate subjected to 25% for subsidiaries in China per the income tax laws in P.R.C. The income tax rate subjected to 20% for subsidiaries in Taiwan per the income tax laws in R.O.C. Further, the dividend income of Power Logic Holdings Inc. and United Strategy Inc. is subjected to 10 % tax rate per the income tax laws in P.R.C.

• (3) Current income tax asset and liability

P.R.C. Current income tax asset and liability
Current income tax asset Tax refund receivable Current Tax Liability Payable income tax	December 31, 2025 $ 2,756 $ 20,479	December 31, 2024
			$ 18,390 $ 1,277

• (4) Deferred income tax assets and liabilities

2025

2025
Deferred income tax assets Temporary difference Financial and tax difference for cost of goods sold Falling price of inventory Allowance for losses Deferred income Provisions Loss deduction Deferred tax liabilities Temporary difference Unrealized exchange gain Financial and tax difference for sales revenue Tax payable for overseas earnings remittance	Balance, beginning of year		Recognized in the profit or loss $ 3,090 873 ( 216 ) ( 395 ) - - $ 3,352 ( $ 465 ) 7,036 23,363 $ 29,934		Others $ 130 ) 421 ) 3 ) 178 ) - - $ 732) $ - 105 ) - $ 105)	Balance, end of year
		$ 10,513 24,408 539 8,603 34 696 $ 44,793 $ 701 14,211 100,387 $ 115,299		( ( ( ( ( ( (			$ 13,473 24,860 320 8,030 34 696 $ 47,413 $ 236 21,142 123,750 $ 145,128

• 45 -

2024

2024
Deferred income tax assets Temporary difference Financial and tax difference for cost of goods sold Falling price of inventory Allowance for losses Deferred income Provisions Unrealized exchange loss Loss deduction Deferred tax liabilities Temporary difference Unrealized exchange gain Financial and tax difference for sales revenue Tax payable for overseas earnings remittance	Balance, beginning of year		Recognized in the profit or loss ( $ 1,728 ) 24 ( 443 ) ( 408 ) ( 10 ) ( 882 ) 148 ($ 3,299) $ 701 ( 6,273 ) 10,358 $ 4,786		Others $ 587 1,137 15 441 2 - - $ 2,182 $ - 945 - $ 945	Balance, end of year
		$ 11,654 23,247 967 8,570 42 882 548 $ 45,910 $ - 19,539 90,029 $ 109,568					$ 10,513 24,408 539 8,603 34 - 696 $ 44,793 $ 701 14,211 100,387 $ 115,299

(5) Income tax audit

The tax filings for the Company and the subsidiaries verified by the tax collection agency are as followed:

agency are as followed:
POWER LOGIC TECH. INC SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） CICHENG TECHNOLOGY CO., LTD.	Year verified
	2023 2023 2023

22. Earnings per share

Earnings per share
Basic earnings per share Diluted earnings per share		2025 $ 5.37 $ 4.96	Unit: NTD per share 2024
				$ 3.21 $ 3.11

• 46 -

The earnings and weighted average common stock shares used in calculating the earnings per share are as follows:

Net profit for the year

earnings per share are as follows: Net profit for the year
The net income applied to calculate basic earnings per share Effect of dilutive potential common stock: Net interest on convertible bonds Net profits for the calculation of diluted earnings per share Number of Shares Weighted average common stock shares used to calculate basic earnings per share Effect of dilutive potential common stock: Remuneration to employees Convertible corporate bonds Weighted average common stock shares used to calculate diluted earnings per share		2025 2024 $ 209,780 $ 119,539 2,476 1,516 $ 212,256 $ 121,055 Unit: Thousand shares 2025 2024 39,063 37,279 205 115 3,539 1,552 42,807 38,946

If the consolidated company may choose to have the employee compensation distributed via a stock or cash dividend, calculate the diluted earnings per share, assuming that the bonus to employees is with a stock dividend distributed, with the weighted average number of shares outstanding included when the potential common stock has a diluted effect. When diluted EPS is calculated in the next year resolves the number of share distribution for employee compensation, the dilution effect is also considered for such potential common shares.

23. Government grant

• (1) In July 2019, the consolidated company entered into an investment agreement with the People’s Government of Anfu County, Jiangxi Province, in which subsidies amounting to RMB 3,681 thousand and RMB 3,523 thousand were paid for land use rights and buildings, respectively; in addition, subsidies amounting to RMB 2,123 thousand were paid for building-related improvements, for a total of approximately NTD 40,411 thousand. Therefore, the above-mentioned government grants are classified as assetrelated subsidies and are recorded as deferred income, and a gain or loss of NTD 1,582 thousand and NTD 1,634 thousand is recognized in fiscal year 2025 and 2024 under other income on a systematic basis over the depreciation period (recorded under other income).

• (2) The Consolidated Company received subsidies for other government grants for the years 2025 and 2024 totaling NTD 10,035 thousand and NTD 47,418 thousand, respectively (recorded as other income).

• 47 -

24. Financial instruments

• (1) Information on fair value – financial instruments at fair value on repetition.

• Fair value level

December 31, 2025

Fair value level December 31, 2025
Financial liabilities at fair value through profit and loss Sell-/buy-back of convertible bonds December 31, 2024 Financial assets at fair value through profit and loss Sell-/buy-back of convertible bonds		Level 1 $ - Level 1 $ -		Level 2 $ - Level 2 $ -		Level 3 $ 775 Level 3 $ 19		Total
								$ 775 Total
								$ 19

1. Financial instruments are adjusted according to Level 3 fair value.

2025

2025
Financial assets (liabilities) Balance, beginning of year Addition due to issuance of new debt Recognized in profit and loss (Other profit or loss) Delisting of convertible corporate bonds Balance, end of year	Financial assets (liabilities) at fair value through profit and loss
	Derivatives
	$ 19 ( 594 ) ( 197 ) ( 3) ($ 775)

2024

2024
Financial assets (liabilities) Balance, beginning of year Recognized in profit and loss (Other profit or loss) Delisting of convertible corporate bonds Balance, end of year	Financial assets (liabilities) at fair value through profit and loss
	Derivatives
	( $ 14 ) 123 ( 90) $ 19

• 48 -

• Evaluation techniques and an input value of Level 3 fair value measurement

For selling-/buying-back of convertible bonds, the binary tree–based model for convertible bond valuation is used to estimate the fair value and the stock price volatility is used as significant unobservable inputs. When share price volatility increases, the fair value of these derivatives will increase. The stock price volatility adopted as of December 31, 2025 and 2024 was 50.85% and 36.23%, respectively.

(2) Categories of financial instruments

36.23%, respectively. Categories of financial instruments
Financial assets The held-for-trade assets measured at fair value through profit or loss Financial assets based on cost after amortization (Note 1) Financial liabilities The held-for-trade assets measured at fair value through profit or loss Measured at amortized cost (Note 2)	December 31, 2025 $ - 1,723,099 $ 1,723,099 $ 775 1,046,489 $ 1,047,264	December 31, 2024
			$ 19 1,243,753 $ 1,243,772 $ - 866,574 $ 866,574

• Note 1: The balance includes financial assets at amortized cost such as cash and cash equivalents, net notes and accounts receivable, refundable deposits and other receivables.

• Note 2: The balance includes short-term borrowings, notes and accounts payable, other payables, long-term borrowings due within one year, corporate bonds payable, and financial liabilities measured at amortized cost, such as corporate bonds payable and long-term borrowings.

• (3) Financial risk management purpose and policies

The financial instruments of the consolidated company are account receivable, account payable, corporate bonds payable and lease liability included. These risks include market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The managements monitor risk and execute policy to reduce risk exposure according to its’ authority.

• 49 -

1. Market Risk

The major financial risk faced by the consolidated company resulted from the operating activities include foreign exchange rate risk [see (1) below] and interest rate risk [see (2) below].

There is no change in the consolidated company’s related financial instruments market risk exposure and the way the consolidated company manages and assesses the exposure.

(1) Exchange rate risk

The consolidated company is exposure to exchange rate fluctuation because its’ subsidiaries sell and purchase in foreign currency.

Please refer to Note 28 for the consolidated company’s monetary assets and monetary liabilities book value (including the written-off monetary items that are measured with non-functional currency on the consolidated financial statements) that are measured with non-functional currency on the balance sheet date.

Sensitivity analysis

Influences to the consolidated companies mainly arise from fluctuations in USD.

The consolidated company’s sensitivity analysis for New Taiwan Dollar (functional currency) to each relevant foreign currency exchange rates that increased or decreased by 5% is illustrated in the following table. The 5% sensitivity is used internally for reporting the exchange rate risk to management and is the assessment by management regarding the reasonable and possible changes in foreign exchange rates. The sensitivity analysis includes only the outstanding monetary items in foreign currency; also, the translation at year-end is adjusted in accordance with the changes in exchange rates by 5%. The table below indicates the income before tax increase amount when NTD devalued 5% against other related currencies; the income before tax decrease the same amount when NTD appreciated 5% against other related currencies.

Profit and loss	Impact of USD	Impact of USD
	2025 $ 36,285	2024
		$ 27,479

(2) Interest rate risk

The interest rate exposure is from the entities within the consolidated company borrowing with fixed and floating rates.

• 50 -

The book value of financial liability belonged to consolidated company exposed to interest rate as of balance sheet date is as below,

company exposed to interest	rate as of balance sheet	date is as below,	date is as below,
With fair value interest rate risk - Financial liabilities With cash flow interest rate risk - Financial liabilities	December 31, 2025 $ 52,500 $ 372,900	December 31, 2024
			$ 70,000 $ 402,180

Sensitivity analysis

The following sensitivity analyses are based on the interest rate risk exposure of the derivative and non-derivative instruments on the balance sheet date. For liabilities with floating rate, it is analyzed by assuming the liabilities on the balance sheet date are outstanding throughout the reporting period. The change in interest rate reported internally to management is the interest rate plus or minus 50 BPS, which represents management’s assessment of the reasonable and possible changes in interest rates.

If the interest increase 50 BPS and other variables remain unchanged, the income before tax of consolidated company decrease NTD 1,865 thousand and NTD 2,011 thousand in 2025 and 2024. It is mainly caused by the floating borrowing rates.

2. Credit Risk

Credit risk refers to the counterparty’s default on contractual obligations resulting in financial loss to the Group. As of balance sheet date, the maximum financial loss credit risk exposure of financial loss on obligation unfulfilled by the transaction party and financial guarantee provided by consolidated company is mainly from the book value of financial asset recognized in consolidated balance sheet.

The consolidated company rates the important customers with publicly obtained financial information and transaction record. The consolidated company continuously monitor the credit exposure and transaction parties’ credit ratings and scatters the total transaction amount to credit rating qualified customers. The credit facility of transaction party is reviews and approved yearly by accounting departments to control credit exposure.

The credit risk of the consolidated company is from its’ biggest customer. The total account receivable portion from that customer is 32% and 27% as of December 31, 2025 and 2024 respectively.

3. Liquidity Risk

The consolidated company has supported the Group’s business operation and mitigated the impact of changes in cash flow by managing and maintaining sufficient cash and cash equivalent position. The consolidated company’s management monitors the use of banking facilities and ensures the compliance of loan agreement.

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Bank loan is an important source of liquidity to the consolidated company. As of December 31, 2025 and 2024, the financing facility of the consolidated company, please refer to financing facility explanation (2) below.

(1) Liquidity and interest rate risk table of non-derivative financial liabilities

Non-derivative financial liabilities remaining contract maturity analysis is prepared in accordance with the consolidated company’s undiscounted cash flow (including principal and estimated interest) of financial liabilities on the possible earliest repayment date upon request. Therefore, the consolidated company may be required to immediately repay the bank loan is illustrated in the following table without considering the probability that the bank may immediately exercise such right. The other non-derivative financial liabilities maturity analysis is prepared in accordance with the agreed repayment date.

For the cash flow of the interest paid in accordance with the floating rate, the undiscounted interest amount is deduced from the yield rate curve on the balance sheet date.

December 31, 2025

December 31, 2025
Non-derivative financial liabilities Notes and account payables No interest-bearing liabilities Lease liability Floating rate instruments Fixed interest rate: December 31, 2024	Payment on demand or less than 1 month			One-three months $ 80,864 - 3,403 4,880 - $ 89,147 One-three months $ 77,181 - 3,174 4,880 - $ 85,235	3 months ~ 1 year $ 39,893 - 13,273 21,960 - $ 75,126 3 months ~ 1 year $ 41,129 - 14,281 21,960 - $ 77,370		1~5 years
	$ 56,414 - 1,702 2,440 52,500 $ 113,056 Payment on demand or less than 1 month						$ - 250,000 3,126 343,620 - $ 596,746 1~5 years
Non-derivative financial liabilities Notes and account payables No interest-bearing liabilities Lease liability Floating rate instruments Fixed interest rate:
		$ 41,147 47,000 1,587 2,440 70,000 $ 162,174					$ - - 17,342 372,900 - $ 390,242

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==> picture [384 x 129] intentionally omitted <==

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

(2) Financing facilities
December 31, 2025 December 31, 2024
Guaranteed bank loan
amount
- The amount
expensed $ 425,400 $ 472,180
- The amount not
yet expensed 500,119 519,453
$ 925,519 $ 991,633
----- End of picture text -----

25. Related party transactions

==> picture [440 x 87] intentionally omitted <==

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

Remunerations to the management
2025 2024
Short-term employee benefits $ 36,780 $ 26,780
Retirement benefits 253 241
Share-based payment 934 -
$ 37,967 $ 27,021
----- End of picture text -----

26. Pledged assets

Below assets are collaterals for bank borrowings:

Land, buildings and architecture	December 31, 2025 $ 719,495	December 31, 2024	December 31, 2024
			$ 751,759

1. Significant contingent liabilities and unrecognized contractual commitments

In addition to those described in other notes, the significant commitments and contingencies of the consolidated company as of the balance sheet date are as follows:

Material commitments

The Consolidated Company’s unrecognized contractual commitment is as follows:

Purchase of property, plant, and equipment	December 31, 2025 $ 77,551	December 31, 2024	December 31, 2024
			$ -

The subsidiary, POWER LOGIC TECH (THAILAND) CO., LTD., purchased land and a factory for self-use on May 9, 2025, for a total transaction amount of THB 197,000 thousand (equivalent to NTD 197,374 thousand). THB 137,900 thousand (equivalent to NTD 138,162 thousand) had been paid for the aforementioned property as of December 31, 2025, and is recorded under “prepayment for equipment”. The full purchase price was paid, with the transfer of ownership completed on February 10, 2026.

The subsidiary, POWER LOGIC TECH (THAILAND) CO., LTD., purchased building for self-use on May 9, 2025 and December 22, 2025, for a total transaction amount of THB 22,880 thousand (equivalent to NTD 22,923 thousand). THB 4,576 thousand (equivalent to NTD 4,585 thousand) had been paid for the aforementioned property as of December 31,

• 53 -

2025, and is recorded under “prepayment for equipment.” As of March 9, 2026, the transfer of ownership had not been completed.

28. Information on foreign currency assets and liabilities with significant influence

The following information is presented in foreign currency other than the functional currency of each entity of the Consolidated Company. The disclosed exchange rate refers to the exchange rate that such foreign currency converting into the functional currency. Foreign currency assets and liabilities with significant influence as follows:

December 31, 2025

December 31, 2025
Foreign currency assets Monetary item USD USD Foreign currency liabilities Monetary item USD USD December 31, 2024 Foreign currency assets Monetary item USD USD Foreign currency liabilities Monetary item USD USD	Foreign currency $ 20,002 4,345 1,202 55 Foreign currency $ 16,007 1,828 1,031 41	Exchange rate 31.43 (USD : NTD) 7.0288 (USD : CNY) 31.43 (USD : NTD) 7.0288 (USD : CNY) Exchange rate 32.785 (USD : NTD) 7.1884 (USD : CNY) 32.785 (USD : NTD) 7.1884 (USD : CNY)	Book value
			$ 628,669 $ 136,551 $ 37,784 $ 1,741 Book value
				$ 524,791 $ 59,941 $ 33,810 $ 1,346

The consolidated company mainly take the foreign currency exchange risk other than the US dollar. The following information is presented in the functional currency of each entity possessing foreign currency. The disclosed exchange rate refers to the exchange rate of such functional currency converting into the presentation currency. Foreign currency gains/losses of material impact (including realized and unrealized):

• 54 -

Functional currency NTD CNY	2025	Net gain (loss) on foreign exchange ( $ 9,994 ) ( 3,977) ($ 13,971)	2024
	Functional currency exchanges for presentation currency 1 (NTD: NTD) 4.365 (CNY: NTD)		Functional currency exchanges for presentation currency 1 (NTD: NTD) 4.510 (CNY: NTD)	Net gain (loss) on foreign exchange
		( ( (			$ 22,660 3,135 $ 25,795

29. Notes of disclosure

• (1) Information about important transactions and (2) transfer investment information:

• The Loaning of funds: Attached table 1.

• Endorsement and Guarantee: Attached table 2.

• Significant securities held at period end (excluding investment in subsidiaries, affiliate, and Joint Ventures equities): None.

• Purchase and sales transactions with related party amount over NTD 100 million or 20% and above of paid-in capital: Attached table 3.

• Related party receivables amounting to more than NTD 100 million or 20% of paid up capital: Attached table 4.

• Information on investees: Attached table 5.

• Business relationship and significant transactions between the Parent Company and Subsidiaries: Attached table 6.

• (3) Information regarding investment in the territory of mainland china

• The names of investees in China, operation items, paid-in capital, investment method, fund remittance –in and out, share-holding proportion, investment profit or loss, book value of investment of period end, wired-back investment profit or loss and investment limitation in China: Attached table 7.

• The significant transactions conducted with the investee company in China directly or indirectly, and the price, payment terms, and unrealized profit and loss:

  • (1) Purchase amount and percentage and the related payables ending balance and percentage: Attached table 3 and 6.

  • (2) Sale amount and percentage and the related account receivable ending balance and percentage: Attached table 3 and 6.

  • (3) Property transaction amount and the profit and loss arising from the acquisitions: None.

  • (4) Notes endorsement and guarantee, or the provided collateral ending balance and its purpose: Attached table 2.

• 55 -

• (5) The maximum financing balance, ending balance, interest rate interval, and total interest amount: Attached table 1.

• (6) Others transactions with significant influences on the profit and loss or financial position, such as, the offer or acceptance of labor services: None.

30. Capital risk management

The consolidated company manages capital to ensure the Group’s enterprises to maximize shareholder’s returns by optimizing the balance of debt and equity under the precondition of continuing operation.

The consolidated company capital structure is composed by the net liability of the consolidated company (e.g. loan deducted cash and cash equivalent) and equity.

The consolidated company is not required to comply with other external capital requirements.

31. Segment information

The consolidated company is operated for cooling fan production, purchase and sale mainly. The major business decision maker evaluate the operating performance based on the whole operating result. Therefore, the consolidated company is a single operating department and mainly operated in China. The operating department information and consolidated financial statements are consistent for 2025 and 2024.

(1) Main revenues from products and service

The major product and service revenue of the consolidated company analyzed as below:

below:
Cooling fan Others		2025 $ 1,745,461 7,428 $ 1,752,889		2024
				$ 1,261,246 1,569 $ 1,262,815

(2) Information by areas

The territory information of consolidated company is as below. The revenue is classified per customers’ geographic location and the non-current asset is classified per asset’s geographic location.

asset’s geographic location.
Area Revenue from external customers China Taiwan Others Total		2025 $ 1,464,468 92,430 195,991 $ 1,752,889		2024
				$ 1,076,302 66,014 120,499 $ 1,262,815

(Continued on next page)

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(Continued from previous page)

Area Non-current assets: China Taiwan Others Total		2025 $ 648,136 768,933 142,747 $ 1,559,816		2024
				$ 699,108 806,976 - $ 1,506,084

Non-current asset exclude deferred tax asset.

• (3) Information on key customers

Income generated from a single customer for more than 10% of the consolidated company’s total income is as follows:

company’s total income is as follows:
Customer A Customer B Customer C		2025 $ 476,555 224,470 177,411 $ 878,436		2024
				$ 249,874 202,287 107,534 $ 559,695

• 57 -

Unit: Unless otherwise stated, NTD Thousand

SUN MAX TECH LIMITED and its subsidiaries

The Loaning of Funds

2025

Attached table 1

No.	The lender of fund	The borrower of fund	Transaction title	Are they related parties	Maximum balance – current period	Balance, ending	The actual amounts disbursed	Interest rate collars	Nature of financing	Amount of business transactions	Reasons for the necessity of short-term financing	Amount of provision for bad debts	Collateral	Collateral	Limit of financing particular beneficiary (Note)	Total limit of financing (Note)	Remarks
													Name	Value
0 0 1 2 3 5	Sun Max Tech Limited Sun Max Tech Limited POWER LOGIC TECH. INC POWER LOGIC HOLDINGS INC. UNITED STRATEGY INC. SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI）	POWER LOGIC TECH. INC SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH (BVI) Sun Max Tech Limited Sun Max Tech Limited Sun Max Tech Limited Sun Max Tech Limited	Other receivables - related parties- Other Other receivables - related parties- Other Other receivables - related parties- Other Other receivables - related parties- Other Other receivables - related parties- Other Other receivables - related parties- Other	Yes Yes Yes Yes Yes Yes	$ 31,430 ( USD 1,000 ) 62,860 ( USD 2,000 ) 53,000 16,603 ( USD 500 ) 127,920 ( RMB 25,500 ) ( USD 300 ) 14,942 ( USD 450 )	$ 31,430 ( USD 1,000 ) 62,860 ( USD 2,000 ) - - - -	$ - - - - - -	NTD 2.80% USD 5.60% NTD 2.80% USD 5.60% 1.97%- 2.27% 5.00%- 6.36% 4.14%- 6.36% 5.98%	The necessity of short-term financing The necessity of short-term financing The necessity of short-term financing The necessity of short-term financing The necessity of short-term financing The necessity of short-term financing	$ - - - - - -	Operation turnover Operation turnover Operation turnover Operation turnover Operation turnover Operation turnover	$ - - - - - -	- - - - - -	- - - - - -	$ 897,765 897,765 161,757 332,877 1,397,112 129,110	$ 897,765 897,765 161,757 332,877 1,397,112 129,110	1 1 7 9 9 9

Note: Should fill in the operating procedure of lending company’s money to others, lending limitation for individual party and total lending amount.

1. The total lending amount to others can’t exceed 20% of latest net financial statements recently audited or reviewed by CPA. The lending to 100% direct or in-direct owned subsidiaries is not subjected to the limitation, but the highest amount can’t exceed 40% of latest net financial statements.

2. Business related company or entity: The total lending amount can’t exceed 10% of latest net financial statements recently audited or reviewed by CPA. The individual lending amount can’t exceed the transaction amount of recent year. The transaction amount is the purchase or sale amount which is higher.

3. Business related company or entity with short-term loan requirement to the Company: the total lending amount can’t exceed 10% of latest net financial statements recently audited or reviewed by CPA and the individual lending amount can’t exceed 5% of latest financial statements net value recently audited or reviewed by CPA. The lending to 100% direct or in-direct owned subsidiaries is not subjected to the limitation, but the highest total lending amount and individual lending amount can’t exceed 40% of latest net financial statements.

4. The total amount of subsidiaries lending to others can’t exceed 40% of subsidiary’s latest financial statements net value.

5. Business related company or entity with subsidiary, the total lending amount can’t exceed 20% of subsidiary’s latest net financial statements. The individual lending amount can’t exceed the transaction amount of recent year. The transaction amount is the purchase or sale amount which is higher.

6. Business related company or entity with short-term loan requirement to the subsidiary: the total lending amount can’t exceed 20% of subsidiary’s latest net financial statements. The individual lending amount can’t exceed 10% of latest subsidiary’s net financial statements. The net value is based on the latest financial statement audited or reviewed by CPA.

7. The intercompany loan between 100% direct or in-direct owned domestic subsidiaries and the Company is not subjected to the previous three limitation, but the highest total lending amount and individual lending amount can’t exceed 40% of subsidiary’s latest net financial statements.

8. The intercompany loan between 100% direct or in-direct owned foreign subsidiaries is not subjected to the previous four limitation, but the highest total lending amount and individual lending amount can’t exceed Subsidiary’s latest net financial statements.

9. The restriction on the total amount of loans and the maximum amount permitted to a single borrower in the preceding four paragraphs shall not apply to loans made by the Company to a foreign subsidiary in which the Company directly and indirectly holds 100% of the voting shares. However, the aggregate loan amount and the maximum amount permitted to any single borrower shall not exceed the net asset value of the subsidiary as per its most recent financial statements.

10. 58 -

Unit: Unless otherwise stated, NTD Thousand

SUN MAX TECH LIMITED and its subsidiaries

Endorsement and Guarantee

2025

Attached table 2

No. (Note 1)	The company providing the endorsement and/or guarantee	The party receiving the endorsement and/orguarantee	The party receiving the endorsement and/orguarantee	The limit of endorsements and/or guarantees to a single business entity	The highest balance of endorsements and/or guarantees in the current period	The ending balance of endorsements and/or guarantees	The actual amounts disbursed	The endorsements and/or guarantees secured with property	Ratio of cumulative endorsement and guarantee to net worth in the most recent financial statement (%)	The upper limit of an endorsement and/or guarantee	Guarantee and endorsem ent of parent company to subsidiary	Guarantee and endorsem ent by subsidiary to parent company	Guarantee and endorsem ent in Mainland China	Remarks
		Company name	Relation
0 0 0 0 0	Sun Max Tech Limited Sun Max Tech Limited Sun Max Tech Limited Sun Max Tech Limited Sun Max Tech Limited	DONG GUAN DONG LI DIAN ZI CO. LTD SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC HOLDINGS INC.	Parent Company and Sub-subsidiary Parent Company and Subsidiaries Parent Company and Subsidiaries Parent Company and Sub-subsidiary Parent Company and Subsidiaries	Note 2 Note 2 Note 2 Note 2 Note 2	$ 37,006 ( RMB 8,000 ) 40,000 166,025 ( USD 5,000 ) 231,291 ( RMB 50,000 ) 119,434 ( USD 3,800 )	$ - 40,000 157,150 ( USD 5,000 ) 152,035 ( RMB 34,000 ) 119,434 ( USD 3,800 )	$ - - - - -	$ - - - - -	0% 2% 7% 7% 5%	Note 3 Note 3 Note 3 Note 3 Note 3	Y Y Y Y Y	N N N N N	Y N N Y N

Note 1: The column for numbering is elaborated below:

(1) Fill in 0 for the issuer.

(2) The investees are sequentially numbered from 1 and so forth.

• Note 2: The endorsement guarantee amount to individual company by the Company do not exceed 10% of latest net financial statements audited by CPA: 2,244,412×10%=224,441, but the endorsement guarantee amount to 100% direct or indirect owned company by the Company is not subjected to the previous limitation. The endorsement guarantee amount to individual company do not exceed 150% net value of the Company: 2,244,412×150%=3,366,618.

• Note 3: The total endorsement guarantee amount by the Company do not exceed 20% of latest net financial statements audited by CPA: 2,244,412×20%=448,882, but the endorsement guarantee amount to 100% direct or in-direct owned company by the Company is not subjected to the previous limitation. The total endorsement guarantee amount do not exceed 150% net value of the Company: 2,244,412×150%=3,366,618.

• 59 -

SUN MAX TECH LIMITED and its subsidiaries

The purchase or sale with the related party for an amount exceeding NTD 100 million or 20% of paid-in capital

2025

Attached table 3

Unit: Unless otherwise stated, NTD Thousand

Purchasing (selling) company	Name of Counterparty	Relation		Transaction	Transaction		Trading terms different from general trade and reasons	Trading terms different from general trade and reasons	Account receivable(payable)	Account receivable(payable)	Remarks
			Purchas (Sale)	Amount	Percentage of total purchase (sale)	Credit term	Unit price	Credit term	Balance	Percentage to total account receivable(pay able)
SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD DONG GUAN DONG LI DIAN ZI CO. LTD POWER LOGIC TECH. INC	POWER LOGIC (JIANGXI TAI YI) CO., LTD SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） DONG GUAN DONG LI DIAN ZI CO. LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD	Affiliate Affiliate Affiliate Affiliate Affiliate	Sales Sales Sales Sales Sales	$ 185,488 492,832 130,460 337,558 142,904	26.19% 27.77% 7.35% 93.40% 68.72%	Payment term is due 90 days from the invoice date Payment term is due 90 days from the invoice date Payment term is due 90 days from the invoice date Payment term is due 90 days from the invoice date Payment term is due 90 days from the invoice date	- - - - -	- - - - -	$ 33,509 148,457 36,852 124,313 21,161	15.71% 24.86% 6.17% 95.55% 46.10%

Note: the sales and account receivable is eliminated from this consolidated statement.

• 60 -

SUN MAX TECH LIMITED and its subsidiaries

Accounts receivable-related party reaching NTD 100 million or more than 20% of the Paid-in shares capital

December 31, 2025

Attached table 4

Unit: Unless otherwise stated, NTD Thousand

The company booked in the receivables	Name of Counterparty	Relation	Receivables from related party	Turnover rate	Overdue Receivables from related parties	Overdue Receivables from related parties	Receivables amount collected from related parties subsequently	Provision for loss allowance
					Amount	Process
POWER LOGIC (JIANGXI TAI YI) CO., LTD DONG GUAN DONG LI DIAN ZI CO. LTD	SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） POWER LOGIC (JIANGXI TAI YI) CO., LTD	Affiliate Affiliate	$ 148,457 124,313	3.65 times 3.15 times	$ - -	- -	$ 99,097 70,370	$ - -

Note: the receivables from related parties is eliminated from this consolidated statement.

• 61 -

SUN MAX TECH LIMITED and its subsidiaries

The information of the invested company, the location, and so on

2025

Attached table 5

Unit: Unless otherwise stated, NTD Thousand

Investor	Investee’s name (Note 1, 2)	Location	Principal business	Initial investment amount	Initial investment amount	Ending shareholding	Ending shareholding	Ending shareholding	Invested company’s profit and loss	Investment profit/loss recognized in the current period	Remarks
				Current yearend	Last yearend	Number of Shares	Proportio n	Book value
Sun Max Tech Limited Sun Max Tech Limited Sun Max Tech Limited Sun Max Tech Limited POWER LOGIC TECH. INC POWER LOGIC HOLDINGS INC.	POWER LOGIC TECH. INC POWER LOGIC HOLDINGS INC. UNITED STRATEGY INC. SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） CICHENG TECHNOLOGY CO., LTD. POWER LOGIC TECH (THAILAND) CO. LTD.	Taiwan Samoa Samoa BVI Taiwan Thailand	Sales of cooling fan Investment holding Investment holding Investment in holding company and sales of cooling fan Sales of cooling fan Production and sale of cooling fan	$ 219,200 255,197 ( USD 8,445 ) 511,021 ( USD 16,960 ) 46,741 ( USD 1,550 ) 40,000 299,903 ( USD 9,600 )	$ 219,200 134,548 ( USD 4,445 ) 511,021 ( USD 16,960 ) 46,741 ( USD 1,550 ) 40,000 -	21,920 5,050 3,025 490 4,000 40,000	100 100 100 100 80 100	$ 404,393 332,877 1,397,112 127,348 24,751 313,316	$ 32,613 ( 3,842 ) 167,219 39,729 ( 8,139 ) 59	$ 32,613 ( 3,842 ) 167,219 41,716 (Note 4) ( 6,511 ) 59

• Note 1: If the public company is foreign holding company registered and takes the consolidated statements as the major statement according local laws, it is acceptable to disclose to the holding company only for foreign invested disclosure.

Note 2: Fill in by following regulations if not belongs to Note 1:

• (1) Columns of “Investee name”, “Area”, “Operating items”, “Original investment amount” and “Shares-holding at period end” should be filled in order according to the (public) Company reinvestment and the reinvestment of investee. The relationship between the (public) Company and investee is required to be indicated in the remarks column (e.g. it is a subsidiary or subordinate).

• (2) “The investee income” column should be filled in with profit or loss amount of investee of the period.

• (3) “The investee income” column is filled in with the recognized direct invested subsidiaries and investee profit and loss under equity of the Company only. No need to fill in other than these two. The subsidiary profit and loss included re-investment profit and loss to be recognized according to the regulations should be confirmed when filling in the “Recognized direct invested subsidiary profit and loss of the period”.

• Note 3: The details information of investee in China, please refer to the Attached table 7.

Note 4: Including unrealized gross from intercompany transactions.

• 62 -

SUN MAX TECH LIMITED and its subsidiaries

The business relationship between the parent company and its subsidiaries and among subsidiaries, and important intercompany transactions and amounts

2025

Attached table 6	Attached table 6				Unit: Unless otherwise stated, NTD Thousand	Unit: Unless otherwise stated, NTD Thousand	Unit: Unless otherwise stated, NTD Thousand
No. (Note 1)	Trader’s name	Counterparty	Relationship with trader (Note 2)		Transactions
				Title	Amount	Terms and conditions	The ratio of consolidated total income or assets (Note 3)
1 1 2 3 3 4 4 5 5 5 5 5 5	POWER LOGIC TECH. INC POWER LOGIC TECH. INC CICHENG TECHNOLOGY CO., LTD. SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH（BVI） DONG GUAN DONG LI DIAN ZI CO. LTD DONG GUAN DONG LI DIAN ZI CO. LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD	POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH (BVI) POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD POWER LOGIC (JIANGXI TAI YI) CO., LTD DONG GUAN DONG LI DIAN ZI CO. LTD DONG GUAN DONG LI DIAN ZI CO. LTD SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH (BVI) SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH (BVI) SUNNY SHARP INTERNATIONAL LIMITED TAIWAN BRANCH (BVI) POWER LOGIC TECH. INC	3 3 3 3 3 3 3 3 3 3 3 3 3	Sales revenue Accounts receivable Sales revenue Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Financial cost Sales revenue	$ 142,904 21,161 12,486 185,488 33,509 337,558 124,313 130,460 36,852 492,832 148,457 43,831 13,469	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	8.15% 0.60% 0.71% 10.58% 0.95% 19.26% 3.53% 7.44% 1.05% 28.12% 4.21% 2.50% 0.77%

Unit: Unless otherwise stated, NTD Thousand

Note 1: The information of business operation between the parent company and its subsidiaries should be documented in the respectively numbered column as follows: (1) Fill in “0” for parent company.

(2) The subsidiaries are sequentially numbered from 1 and so forth.

Note 2: The relationship with the traders is classified into three categories, which should be specified (the transaction conducted between the parent company and its subsidiaries or between two subsidiaries need not be disclosed in duplication. Such as: if the parent company has the transaction with the subsidiaries

disclosed, the subsidiaries need not to have it disclosed in duplication. If one of the two subsidiaries has the transaction disclosed, the other subsidiary needs not to have it disclosed in duplication).

(1) The Parent Company to the Subsidiary.

(2) The Subsidiary to the Parent Company.

(3) The Subsidiary to the Subsidiary.

Note 3: Calculate the ratio of the transaction amount to consolidate the total income or total assets. For the assets and liabilities account, calculate the ratio of the ending balance to the consolidated total assets. For the profits and losses account, calculate the ratio of the interim cumulated amount to the consolidated total income.

Note 4: The transaction term is no apparent difference existed for related and non-related party.

Note 5: The transaction above and over NTD 10 million.

• 63 -

Unit: Unless otherwise stated, NTD Thousand

SUN MAX TECH LIMITED and its subsidiaries

Information regarding investment in the territory of mainland china

2025

Attached table 7

Names of investees in China	Principal business	Paid-in shares Capital	Paid-in shares Capital	Mode of investments (Note 1)	Accumulated amount of investment remitted from Taiwan at beginning	Accumulated amount of investment remitted from Taiwan at beginning	Amount of investment remitted or recovered in current period	Amount of investment remitted or recovered in current period	Accumulated amount of investment remitted from Taiwan at ending	Invested company’s profit and loss	Ratio of shareholdin g of investment directly or indirectly made by the Company	Investment profit/loss recognized in current period (Note 2)	Book value of investment at ending	The investment income received at the end of the current period	Remarks
							Outward remittance	Recover
DONG GUAN DONG LI DIAN ZI CO. LTD	Production and sale of cooling fan Production and sale of cooling fan	$ 88,456 ( HKD 21,000 ) 688,394 ( CNY 150,000 )		2 (UNITED STRATEGY INC.) 2 (UNITED STRATEGY INC.)	$	- -	$ - -	$ - -	$ - -	$ 33,353 155,422	100.00 100.00	$ 33,353 153,888 (Note 4)	$ 195,867 1,279,213 (Note 4)	$ - -
Accumulated investment from Taiwan to Mainland China at ending			Amount of investment approved by Investment Commission of MOEA			Compliance with the limit of investment in Mainland China set forth by Investment Commission of MOEA
Not applicable			Not applicable			Not applicable

Note 1: There are three types of investments labeled by the respective number:

• (1) Direct investment in China.

• (2) Investment in China through the third region (please indicate the invested company in the third region).

• (3) Other ways.

• Note 2: Recognized as gains or losses on investment in current period:

• (1) Please mark out if there has no investment gain or loss yet because the investment is still under planning.

• (2) The basis of recognition of investment income is classified into following three types, which should be marked out.

  • A. Financial statements audited by international firm cooperated with accounting firm in R.O.C.

  • B. Financial statements audited by the CPAs who audit the parent company in Taiwan.

  • C. Others.

• Note 3: All figures presented in new Taiwan dollars.

• Note 4: including the un-realized gross profit from inter-company transaction.

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