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SUN MAX Interim / Quarterly Report 2025

Apr 20, 2026

52591_rns_2026-04-20_474a089b-dbd7-403c-a4ac-c617630c239a.pdf

Interim / Quarterly Report

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Stock No.: 6591

SUN MAX TECH LIMITED and its subsidiaries

Consolidated financial statements and Auditor’s Report Second Quarter, 2025 and 2024

Address: The Grand Pavilion Commercial Centre Oleander Way,802 West Bay Road P.O. Box 32052, 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 Chinese-language auditors’ report and financial statements shall prevai

  • 1 -

§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) Other matters
(11) Significant subsequent events
(12) Information on foreign currency assets
and liabilities with significant influence
(13) Notes of disclosure
1. Information about important
transactions
2. Transfer investment information
3. Information regarding investment in
the territory of mainland China
(14) Capital risk management
(15) Segment information		 Page
1
2
3~6
7
8
9
10~11
12
12
12~14
14~15
15
16~37
37
37
38
-
38
38~40
40
40
40~41
41
41~42		 Notes to financial
statements No.
-
-
-
-
-
-
-
1
2
3
4
5
6~24
25
26
27
-
28
29
30
30
30
31
33
  • 2 -

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 June 30, 2025 and 2024 and April 1 to June 30, 2025 and 2024 the related consolidated statements comprehensive of income, changes in shareholders’ equity and cash flows for the January 1 to June 30, 2025 and 2024 ended and the notes to consolidated financial statement (including a summary of significant accounting policies).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SUN MAX Group as of June 30, 2025 and 2024, April 1 to June 30, 2025 and 2024, and January 1 to June 30, 2025 and 2024 and the results of operations and cash flows for the years then ended in conformity with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and Article 34 “Interim Financial Reporting” of International Accounting Standards.

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.

  • 3 -

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 Q2 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.

The Key Audit Matters to be performed on the 2025 Q2 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 44% of the total operating revenue in 2025 Q2. 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 period is recognized as a Key Audit Matters.

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 authenticity of the sales.

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

The responsibility of the management is to have the consolidated financial statements presented fairly in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and Article 34 “Interim Financial Reporting” of International Accounting Standards. Also, maintain the necessary internal controls related to the consolidated financial statements to ensure that the consolidated financial statements are free of any material misstatement arising from frauds or errors.

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.

  • 4 -

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.

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.

  7. 5 -

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).

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 Q2 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, Tung-Ju Hsieh

CPA, Wei-Chun Ma

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

Financial Supervisory Commission approval no. Chin-Kuan-Cheng-Shen-Zi No. 1120349008

August 15, 2025

  • 6 -

SUN MAX TECH LIMITED and its subsidiaries

Consolidated Balance Sheets

June 30, 2025, December 31 and June 30, 2024

Unit: NTD thousand

Code

1100
1110
1170
1200
1220
130X
1479
11XX

1600
1755
1780
1900
15XX
1XXX
Code

2100
2170
2200
2230
2280
2320
2399
21XX

2540
2570
2580
2630
2670
25XX
2XXX

3110
3200
3310
3320
3350
3300
3410
3400
31XX
36XX

3XXX
 Assets
Current assets
Cash and cash equivalents (Note 6)

Financial assets at fair value through profit and loss current
(Note 7)
Net notes receivable and accounts receivable (Note 8)
Other receivables
Current income tax asset
Inventories (Note 9)
Other current assets (Note 10)

Total current assets

Non-current assets
Property, plant and equipment (Note 12 and 26)
Right-of-use assets (Note 13)
Intangible asset (Note 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)

Notes and account payables
Other payable (Note 16)
Current Tax Liability
Leasehold liability- current (Note 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
Long-term borrowings (Note 15 and 26)
Deferred tax liabilities
Leasehold liability- non-current (Note 13)
Deferred income- non-current (Note 23)
Other non-current liabilities

Total non-current liability

Total liabilities

Equity Attributable to Owners of the company (Note 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
 June 30, 2025
Amount
%
$ 621,929
21
-
-
734,843
25
1,603
-
8,825
-
175,951
6
16,206

-

1,559,357
52

1,294,185
43
44,664
2
7,368
-
82,983

3

1,429,200
48

$ 2,988,557
100

$ 40,000
1
203,871
7
303,259
10
16,171
1
17,976
1
33,569
1
7,884

-

622,730
21

358,260
12
124,079
4
11,000
-
30,140
1
-

-

523,479
17

1,146,209
38

387,296
13

928,019
31

122,946
4
-
-
534,200
18

657,146
22

137,110)
(
4)

137,110)
(
4)

1,835,351
62
6,997

-

1,842,348
62

$ 2,988,557
100
 December 31, 2024
Amount
%
$ 748,046
25

19
-

481,480
16

4,135
-

18,390
1

183,652
6
9,530

-

1,445,252
48


1,428,370
48

52,904
2

9,015
-
60,588

2

1,550,877
52

$ 2,996,129
100

$ 70,000
2

159,457
5

188,549
6

1,277
-

18,083
1

75,668
3
6,788

-

519,822
17


372,900
12

115,299
4

17,008
1

34,412
1
1,579

-

541,198
18

1,061,020
35

377,223
13

895,605
30


110,992
3

56,738
2
472,216
16

639,946
21

14,519

1

14,519

1


1,927,293
65
7,816

-

1,935,109
65

$ 2,996,129
100
 June 30, 2024 June 30, 2024
Amount
$ 621,929

-
734,843

1,603
8,825
175,951
16,206

1,559,357

1,294,185

44,664
7,368
82,983

1,429,200

$ 2,988,557

$ 40,000
203,871
303,259

16,171
17,976
33,569
7,884

622,730

358,260

124,079
11,000
30,140
-

523,479

1,146,209

387,296

928,019

122,946
-
534,200

657,146

137,110)

137,110)

1,835,351

6,997

1,842,348

$ 2,988,557
 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
 Amount
$ 754,857


60

485,142


3,263

4,725

186,588
24,922

1,459,557


1,113,102


62,062

6,889
80,572

1,262,625

$ 2,722,182

$ -

131,980

294,782


10,660

17,748

63,457
6,663

525,290


176,080

104,651

26,092

35,180
318

342,321

867,611

376,515

893,361


110,992

56,738
397,588

565,318

10,932

10,932


1,846,126

8,445

1,854,571

$ 2,722,182
 %
















(
(















































































28
-
18
-
-
7

1
54
41
2
-

3
46
100
-
5
11
-
1
2

-
19
7
4
1
1

-
13
32
14
33
4
2
15
21

-

-
68

-
68
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

  • 7 -

SUN MAX TECH LIMITED and its subsidiaries

Consolidated Statement of Comprehensive Income

April 1 to June 30, 2025 and 2024, January 1 to June 30, 2025 and 2024

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

April 1to June April 1to June 30, 2025 April 1to June April 1to June 30, 2024 January1to June January1to June 30, 2025 January1to June January1to June 30, 2024
Code Amount % Amount % Amount % Amount %
4000 Operating revenue
 $
488,886		 100
 $
324,458		 100
 $
925,013
 100
 $
632,543
 100
5000 Operating cost (Note 9 and 20)
 ( 305,625) ( 62)
 ( 244,301) ( 75)
 ( 591,509)
 ( 64)
 ( 469,565)
 ( 74)
5900 Gross profit
 183,261 38
 80,157 25
 333,504
 36
 162,978
 26
Operating expenses (Note 20 and
25)
6100
Selling and Marketing
expense
 ( 13,935 ) (
3 )		 ( 9,928 ) (
3 )		 ( 23,407 ) ( 3 ) ( 18,468 ) ( 3 )
6200
General and administrative
expenses
 ( 38,761 ) (
8 )		 ( 37,771 ) ( 12 ) ( 87,009 ) ( 9 ) ( 71,945 ) ( 11 )
6300
Research and development
expenses
 ( 29,731) ( 6)
 ( 20,358) ( 6)
 ( 53,988)
 ( 6)
 ( 34,978)
 ( 6)
6000
Total operating expenses		 ( 82,427) ( 17)
 ( 68,057) ( 21)
 ( 164,404)
 ( 18)
 ( 125,391)
 ( 20)
6900 Profit from operations
 100,834 21
 12,100 4
 169,100
 18
 37,587
 6
Non-operating revenues and
expenses
7100
Interest revenue (Note 20)		 4,773 1 4,163 1 9,767 1 8,672 1
7010
Other income (Note 20 and
23) 4,817 1 5,182 2 7,850 1 7,171 1
7020
Other gains and losses (Note
12 and 20)
 ( 49,631 ) ( 10 ) 5,777 2
 ( 29,189 ) ( 3 ) 21,786 4
7050
Financial cost (Note 20)
 ( 3,146) ( 1)
 ( 2,056) ( 1)
 ( 6,576)
 ( 1)
 ( 4,576)
 ( 1)
7000
Total non-operating
income and expenses ( 43,187) ( 9)
 13,066 4
 ( 18,148)
 ( 2)
 33,053
 5
7900 Profit before income tax 57,647 12 25,166 8 150,952
 16 70,640
 11
7950 Income tax expense (Note 4 and
21)
 ( 14,618) ( 3)
 ( 6,265) ( 2)
 ( 43,614)
 ( 5)
 ( 26,355)
 ( 4)
8200 Net profit of current period
 43,029 9
 18,901 6
 107,338
 11
 44,285
 7
Other comprehensive income
(Note 19)
8360
Accounts to be reclassified to
profit or loss subsequently:
8361
Exchange differences on
Translating the
financial statements of
foreign operations
 ( 170,820) ( 35)
 13,399 4
 ( 151,629)
 ( 16)
 67,670
 11
8300
Total other
comprehensive
income or loss
 ( 170,820) ( 35)
 13,399 4
 ( 151,629)
 ( 16)
 67,670
 11
8500 Current period other
comprehensive income (Gross) ($
127,791)		 ( 26)
 $
32,300		 10
 ($
44,291)
 ( 5)
 $
111,955
 18
Net profit attributable to:
8610
Owners of the Company
 $
43,655		 9
 $
19,342		 6
 $
108,157
 12
 $
44,911		 7
8620
Non-controlling interest
 ( 626) -
 ( 441) -
 ( 819)
 -
 ( 626)
 -
8600
$
43,029		 9
 $
18,901		 6
 $
107,338
 12
 $
44,285
 7
Comprehensive income
attributable to:
8710
Owners of the Company
 ( $
127,165 )		 ( 26 ) $
32,741		 10
 ( $
43,472 )		 ( 5 ) $
112,581
 18
8720
Non-controlling interest
 ( 626) -
 ( 441) -
 ( 819)
 -
 ( 626)
 -
8700
($
127,791)		 ( 26)
 $
32,300		 10
 ($
44,291)
 ( 5)
 $
111,955
 18
Earnings per share (Note 22)
9710
Basic
 $
1.14		 $
0.51		 $
2.85		 $
1.22
9810
Diluted
 $
1.13		 $
0.51		 $
2.79		 $
1.18

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

  • 8 -

Unit: NTD thousand

SUN MAX TECH LIMITED and its subsidiaries Consolidated Statements of Changes in Equity January 1 to June 30, 2025 and 2024

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 January 1 to June 30, 2024
D3
Other comprehensive income in January 1 to
June 30, 2024
D5
Total Comprehensive profit or loss in January 1
to June 30, 2024
Z1
Balance as of June 30, 2024

A1
Balance as of January 1, 2025

Appropriation of 2024 earnings
B1
Legal reserve
B3
Special reserve
B5
Cash dividends
I1
Conversion of convertible bonds
D1
Net profit for the January 1 to June 30, 2025
D3
Other comprehensive income in January 1 to
June 30, 2025
D5
Total Comprehensive profit or loss in January 1
to June 30, 2025
Z1
Balance as of June 30, 2025
 Equity of the company Equity of the company Total
$ 1,749,462

-
-

102,463 )
86,546
44,911

67,670

112,581

$ 1,846,126

$ 1,927,293

-
-

90,957 )
42,487
108,157

151,629)

43,472)

$ 1,835,351
 Non-controlling
interest
$ 9,071

-
-
-

-
(
626 )

-

(
626)

$ 8,445

$ 7,816

-
-
-

-
(
819 )

-

(
819)

$ 6,997
 Total equity
Common stock
capital
$ 356,403

-
-
-
20,112
-

-


-

$ 376,515

$ 377,223

-
-
-
10,073
-

-


-

$ 387,296
 Capital surplus
$ 826,927

-
-
-
66,434
-

-


-

$ 893,361

$ 895,605

-
-
-
32,414
-

-


-

$ 928,019
 Retained earnings Unappropriated
earnings
$ 490,212

(
11,852 )
(
23,220 )
(
102,463 )
-
44,911

-


44,911

$ 397,588

$ 472,216

(
11,954 )
56,738
(
90,957 )
-
108,157

-


108,157

$ 534,200
 Other equity
Exchange
differences on
Translating the
financial statements
of foreign
operations
( $ 56,738 )

-
-
-

-
-

67,670


67,670

$ 10,932

$ 14,519

-
-
-

-
-
(
151,629)

(
151,629)

($ 137,110)
Legal reserve
$ 99,140

11,852
-
-
-
-
-

-

$ 110,992

$ 110,992

11,954
-

-
-
-
-

-

$ 122,946
 Special reserve
$ 33,518

-

23,220

-

-
-

-


-

$ 56,738

$ 56,738

-

(
56,738 )
-

-
-

-


-

$ -


























(
(
(
(




(
(


 (




(
(
(
(




(
(
(
(

(


(

(
(




(
(
(
 $ 1,758,533
-
-

102,463 )
86,546
44,285
67,670
111,955
$ 1,854,571
$ 1,935,109
-
-

90,957 )
42,487
107,338
151,629)
44,291)
$ 1,842,348

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

  • 9 -

SUN MAX TECH LIMITED and its subsidiaries

Consolidated Statements of Cash Flows

January 1 to June 30, 2025 and 2024

Unit: NTD thousand

Code
Cash flow from operating activities
A10000
Current period net income before tax
A20010
Adjustments for:
A20100
Depreciation expenses
A20200
Amortization expenses
A20300
Expected credit impairment loss
(reversal gain)
A20400
Net loss (gain) on financial assets
and liabilities at fair value
through profit and loss
A20900
Financial cost
A21200
Interest revenue
A22500
Gain on disposal of property,
plant, and equipment
A23700
Write-downs of inventories and
loss of idle inventory
(recovery gain)
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 (outflow) from
operating activities		 January 1 to June
30, 2025

$ 150,952
47,930
2,771
183
15
6,576
(
9,767 )
(
15,011 )
(
9,249 )
(
13 )
(
1,020 )
80
( 253,496 )
945
16,950
(
6,676 )
44,414
21,811
1,093
(
1,563)
(
3,075 )
11,354
(
6,297 )
4,725
(
13,840)
(
7,133)		 January 1 to June
30, 2024
$ 70,640
44,637
1,847
(
1,889 )
(
163 )
4,576
(
8,672 )
-
44,088
(
19 )
(
4,460 )
276
77,358
3,408
(
10,402 )
(
11,418 )
(
19,161 )
12,871
(
285 )
(
11)
203,221
8,317
(
3,699 )
7,598
(
48,722)
166,715

(Continued on next page)

  • 10 -

(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 inflow (outflow) from
investing activities
Cash flow from financing activities
C00200
Repayments of short-term borrowings
C01700
Repayments of proceeds from
long-term loans
C04020
Payment of principal element of lease
liabilities
CCCC
Net cash used in from financing
activities
DDDD Effects of exchange rate changes on the
balance of Cash held in foreign
currencies
EEEE
Net increase (decrease) in cash and cash
equivalents
E00100 Balance of cash and cash equivalents at the
beginning of period
E00200 Balance of cash and cash equivalents at the
ending of period		 January 1 to June
30, 2025
$ -
(
16,873 )
69,101
-
422
(
1,707 )

(
30,487 )

214

20,670

(
30,000 )
(
14,640 )
(
9,536)
(
54,176)
(
85,478)
( 126,117 )
748,046
$ 621,929		 January 1 to June
30, 2024
$ 921
(
17,699 )
-
(
1,571 )
-
(
71 )
(
19,908 )

3,604
(
34,724)
(
26,011 )
(
7,320 )
(
8,669)
(
42,000)

37,369
127,360
627,497
$ 754,857

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

  • 11 -

SUN MAX TECH LIMITED

SUN MAX TECH LIMITED and subsidiaries

Notes to Consolidated Financial Statements

January 1 to June 30, 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 August 15, 2025.

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.

  • 12 -

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

Commission
The new / amended / revised standards or
interpretation
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”
Amendment to “IFRS 17”
Amendments to IFRS 17 “Initial Application of IFRS
17 and IFRS 9 - Comparative Information”		 IASB publication effective
date
January 1, 2026
January 1, 2026
January 1, 2026
January 1, 2023
January 1, 2023
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 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 evaluation.
The IFRSs released by the IASB but not yet approved
by the Financial Supervisory Commission		 and announcement effective
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”		 IASB publication effective
date (Note 1)
Undefined
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.

IFRS 18 “Presentation and Disclosure in Financial Statements”

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

  • All items of income and expense in the statement of profit or loss shall be classified in one of five categories, the operating category, the investing category, the financing category, the income taxes category, and the discontinued operations category.

  • 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.

  • 13 -

  • 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.

  • 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.

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 IAS 34 “Interim Financial Reporting” that are authorized by the FSC. This consolidated financial statement does not cover the IFRSs disclosure as required by the whole annual financial reporting.

  • (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.

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. 14 -

  5. (3) Basis of consolidation

Principle of consolidated financial statements preparation

This consolidated financial statement contains information from the financial statements of the Bank and its controlled entities (including structured entities). 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. 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.

  • (4) Other major accounting policy

Further to the elaboration specified hereunder, refer to the notes to major accounting policy of the consolidated financial statements for 2024.

Income tax

Income tax expense is the sum of the current income tax and deferred income tax. The income tax in the interim period is estimated based on the whole period and at the tax rate applicable to the total earnings expected in the period for the interim earnings before taxation.

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

Please refer to the 2024 Consolidated Financial Report for the significant accounting judgment, estimation, and the main source of assumption uncertainties.

  • 15 -

6. Cash and cash equivalents

6. Cash and cash equivalents Cash and cash equivalents Cash and cash equivalents
7.
8.		 June 30, 2025
December 31,
2024
June 30, 2024
Cash on hand and petty cash
$ 1,959
$ 1,283
$ 1,047
Bank checks and demand
deposits
201,416
142,301
91,195
Cash equivalents
Time deposits with an
initial maturity of less
than three months
418,554
604,462
662,615
$ 621,929
$ 748,046
$ 754,857
The interest rate range of time deposit as of balance sheet date listed below:
June 30, 2025
December 31,
2024
June 30, 2024
Time deposits
0.65%～4.23%
0.45%～4.8% 1.25%～5.25%
Financial instruments measured at fair value through profit or loss
June 30, 2025
December 31,
2024
June 30, 2024
Held-for-trade financial assets-
Current
Derivative
instrument-buy-/sell-back of
convertible bonds
$ -
$ 19
$ 60
Notes and accounts receivable, net
June 30, 2025
December 31,
2024
June 30, 2024
Notes receivable
$ 1,388
$ 1,468
$ 1,333
Receivable accounts- based on
cost after amortization
737,987
484,491
488,930
Less: Allowance for losses
(
4,532)
(
4,479)
(
5,121)
$ 734,843
$ 481,480
$ 485,142		 June 30, 2024
1.25%～5.25%
June 30, 2024

Held-for-trade financial assets-
Current
Derivative
instrument-buy-/sell-back of
convertible bonds
Notes and accounts receivable, net
June 30, 2025
$ -

June 30, 2025
$ 1,388

737,987

(
4,532)

$ 734,843
$ 60
June 30, 2024

Notes receivable

Receivable accounts- based on
cost after amortization

Less: Allowance for losses


(

(

(
 $ 1,333
488,930

5,121)
$ 485,142

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 notes receivable of the consolidated company as of June 30, 2025, December 31 and June 30, 2024, were not past due.

  • 16 -

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

June 30, 2025

une 30, 2025
Expected credit loss rate
Total book value

Allowance for loss
(expected credit loss
of the given duration)
Cost after amortization
 Not overdue Overdue 1 to 30
days		 Overdue 31 to 60
days		 Overdue over 60
days		 Total
0.09%～0.37%
$ 728,441

(
1,956)

$ 726,485
 4.25%～7.21%
$ 5,848

(
348)

$ 5,500
 21.29%～30.81%
$ 2,124

(
654)

$ 1,470
(
 100%
$ 1,574

1,574)
$ -
(
 -
$ 737,987

4,532)
$ 733,455

December 31, 2024

Expected credit loss rate
Total book value

Allowance for loss
(expected credit loss
of the given duration)
Cost after amortization
 Not overdue Overdue 1 to 30
days		 Overdue 31 to 60
days		 Overdue 31 to 60
days		 Overdue over 60
days		 Overdue over 60
days		 Total
0.10%～0.34%
$ 472,868

(
1,331)

$ 471,537
 5.26%～8.49%
$ 5,961

(
317)

$ 5,644
(
 29.95%
$ 4,042


1,211)

$ 2,831
(
 100%
$ 1,620

1,620)
$ -
(
 -
$ 484,491

4,479)
$ 480,012

June 30, 2024

une 30, 2024
Expected credit loss rate
Total book value

Allowance for loss
(expected credit loss
of the given duration)
Cost after amortization
 Not overdue Overdue 1 to 30
days		 Overdue 31 to 60
days		 Overdue over 60
days		 Total
0.11%～0.36%
$ 472,343

(
1,396)

$ 470,947
 4.93%～7.81%
$ 11,252

(
611)

$ 10,641
 20.12%～31.78%
$ 3,153

(
932)

$ 2,221
(
 100%
$ 2,182

2,182)
$ -
(
 -
$ 488,930

5,121)
$ 483,809

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

Balance, beginning
Add: Impairment loss appropriated
(reversal) in current period
Foreign currency translation differences
Balance, ending		 January 1 to June
30, 2025
$ 4,479
183
(
130)
$ 4,532		 January 1 to June
30, 2024

(
 $ 6,939
(
1,889 )

71
$ 5,121

9. Inventories

nventories
Finished goods

Work-in-process goods
Raw materials

 June 30, 2025
$ 82,442

52,486

41,023

$ 175,951
 December 31,
2024

$ 69,758

57,252

56,642

$ 183,652
 June 30, 2024






$ 90,372
38,636
57,580
$ 186,588

The loss allowance on inventory valuation is NTD 91,197 thousand, NTD 100,446 thousand and NTD 138,079 thousand on June 30, 2025, December 31 and June 30, 2024 respectively.

  • 17 -

The cost of goods sold on April 1 to June 30, 2025 and 2024, and on January 1 to June 30, 2025 and 2024 included loss of inventory in valuation (reversal gain) for an amount of NTD (16,459) thousand, NTD 27,841 thousand, NTD (9,249) thousand, and NTD 44,088 thousand, respectively.

10. Other assets

thousand, respectively.
Other assets
Current
Prepaid expenses

Prepayment for Purchases
Excess business tax paid
Others


Non-current
Deferred income tax assets
Refundable deposits
Prepayments for equipment
Additional (Note 27)


 June 30, 2025
$ 8,658

5,974
1,574

-


16,206

41,266
9,670

32,047


82,983

$ 99,189
 December 31,
2024

$ 6,652

1,393
1,477

8


9,530

44,793
10,092

5,703


60,588

$ 70,118
 June 30, 2024















$ 7,100
4,019
13,603
200
24,922
51,454
6,585
22,533
80,572
$ 105,494

11. Subsidiaries

Subsidiaries included in the consolidated financial statements

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

Investor Subsidiaryname
 Nature of the operation
June 30, 2025
The share-holding
percentage		 December 31, 2024
The share-holding
percentage
100%
100%
100%
100%
100%
100%
80%
-		 June 30, 2024
The share-holding
percentage
The Company

The Company

The Company

The Company

United Strategy Inc.

United Strategy Inc.

POWER LOGIC TECH. INC
Power Logic Holdings Inc.
 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

Taiyi (Jiangxi) Electronic Technology
Co., Ltd.

CICHENG TECHNOLOGY CO.,
LTD.

Power Logic Tech (Thailand) Co, Ltd		 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		 100%
100%
100%
100%
100%
100%
80%
100% (Note)		 100%
100%
100%
100%
100%
100%
80%
-

Note: Power Logic Tech (Thailand) Co., Ltd. was approved for establishment in April 2025. The Company has invested USD 3,600 thousand (equivalent to NTD 116,777 thousand) in operations.

  • 18 -

12. Property, plant, and equipment

January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025 January1to June 30,2025
Buildings and
leasehold
Machine and
Transportation
Furniture and
Other
Land improvement equipment
equipment		 fixtures equipment Total
Cost
Balance, beginning $ 516,061 $ 779,791 $ 374,104 $ 12,786 $ 26,215 $ 126,671 $ 1,835,628
Increase - - 7,261 27 - 11,640 18,928
Current disposal (
36,807 )		 (
19,868 )		 (
1,343 )		 - (
511 )		 (
96 )		 (
58,625 )
Reclassification - - 4,029 - - 114 4,143
Net exchange
differences
 -
(
52,715)
(
29,723)
(
1,314)
(
767)
(
12,478)
(

96,997)
Balance, ending $ 479,254 $ 707,208 $ 354,328 $ 11,499 $ 24,937 $ 125,851 $ 1,703,077
Accumulated
depreciation
Balance, beginning $ - $ 109,943 $ 191,637 $ 5,494 $ 22,760 $ 77,424 $ 407,258
Increase - 12,644 17,687 430 598 6,727 38,086
Current disposal - (
2,668 )		 (
1,263 )		 - (
511 )		 (
93 )		 (
4,535 )

Net exchange
differences
-
(



8,945)
(


14,462)
(

597)
(



606)
(



7,307)
(

31,917)
Balance, ending $ - $ 110,974 $ 193,599 $ 5,327 $ 22,241 $ 76,751 $ 408,892

Net, ending		 $ 479,254 $ 596,234 $ 160,729 $ 6,172 $ 2,696 $ 49,100 $ 1,294,185
January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024 January1to June 30,2024
Buildings and
leasehold
Machine and
Transportation
Furniture and
Other
Land improvement equipment
equipment		 fixtures equipment Total
Cost
Balance, beginning $ 286,501 $ 671,296 $ 306,761 $ 12,153 $ 25,488 $ 112,468 $ 1,414,667
Increase - 629 17,849 - - 3,182 21,660
Current disposal - - (
15 )		 - (
4 )		 (
21 )		 (
40 )
Reclassification - - 4,236 - - 76 4,312
Net exchange
differences
 -
 24,513
 11,408
 612
 345
 5,004
41,882
Balance, ending $ 286,501 $ 696,438 $ 340,239 $ 12,765 $ 25,829 $ 120,709 $ 1,482,481
Accumulated
depreciation
Balance, beginning $ - $ 82,975 $ 153,189 $ 4,382 $ 20,889 $ 60,646 $ 322,081
Increase - 11,505 15,597 435 821 7,182 35,540
Current disposal - - (
15 )		 - (
4 )		 (
21 )		 (
40 )

Net exchange
differences
 -
3,109

5,559
227


240


2,663
11,798
Balance, ending $ - $ 97,589 $ 174,330 $ 5,044 $ 21,946 $ 70,470 $ 369,379

Net, ending		 $ 286,501 $ 598,849 $ 165,909 $ 7,721 $ 3,883 $ 50,239 $ 1,113,102

The net operating lease for buildings and leasehold improvements and related equipment as of June 30, 2025 and 2024 were NTD 31,923 thousand and NTD 38,972 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.

  • 19 -

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

rs of useful 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.

13. Lease agreement

  • (1) Right-of-use assets.
er to Note 26.
agreement
Right-of-use assets.
Carrying amount of the
right-of-use asset
Land

Buildings
Transportation
equipment
 June 30, 2025
$ 16,314

20,473

7,877
$ 44,664
 December 31,
2024

$ 18,392

30,580

3,932

$ 52,904
 June 30, 2024






$ 18,574
38,452
5,036
$ 62,062
Addition of right-of-use
assets
Depreciation expense of
the right-of-use asset
Land

Buildings
Transportation
equipment
 April 1 to June
30, 2025
$ 101

3,752

950

$ 4,803
 April 1 to June
30, 2024

$ 106

3,958

543

$ 4,607
 January 1 to
June 30, 2025
$ 5,846

$ 208

7,735

1,901

$ 9,844
 January 1 to
June 30, 2024		 January 1 to
June 30, 2024










$ 44,748
$ 210
7,820
1,067
$ 9,097

The sub-subsidiary of the Company, Taiyi (Jiangxi) Electronic Technology Co., Ltd., acquired the land use right of the original factory site from Anfu County Industrial Construction Investment Development Co for RMB 4,493 thousand in 2020 and proceeded to improve the factory and establish the production line. The state-owned 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 right-of-use assets of the consolidated company have not been significantly subleased or impaired as of January 1 to June 30, 2025 and 2024.

  • 20 -

(2) Lease liability

Lease liability
Carrying amount of the
lease liabilities
Current

Non-current
 June 30, 2025
$ 17,976

$ 11,000
 December 31,
2024

$ 18,083

$ 17,008
 June 30, 2024



$ 17,748
$ 26,092

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

Buildings
Transportation equipment		 June 30, 2025
2.00%~3.80%
2.28%~2.47%		 December 31,
2024

2.00%~3.80%
2.00%~2.41%		 June 30, 2024
2.00%~3.80%
2.00%

(3) Other lease information

Low-value asset lease
expense
Total cash of leases
(outflow)		 April 1 to June
30, 2025
$ 87
 April 1 to June
30, 2024
$ 88

 January 1 to
June 30, 2025		 January 1 to
June 30, 2025		 January 1 to
June 30, 2024		 January 1 to
June 30, 2024

(		 $ 175

$ 10,325)
(		 $ 181
$ 9,545)

14. Intangible assets

Intangible assets Intangible assets Intangible assets
January 1 to June
30, 2025
January 1 to June
30, 2024
Cost
Balance, beginning
$ 33,659
$ 29,117
Increase
1,707
71
Decrease in the period
(
4,407 )
(
560 )
Net exchange differences
(		 1,938)
 707


Balance, ending
$ 29,021
 $ 29,335


Accumulated amortization
Balance, beginning
 $ 24,644
 $ 20,683
Amortization in the current period 2,771 1,847
Decrease in the period
(
4,407 )
(
560 )
Net exchange differences
(		 1,355)
 476


Balance, ending
$ 21,653
 $ 22,446


Net, ending
 $ 7,368
 $ 6,889

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

  • 21 -

15. Borrowings

  • (1) Short-term borrowings
wings
Short-term borrowings
Guaranteed loans (Note
26)
Bank’s debt
 June 30, 2025
$ 40,000
 December 31,
2024
$ 70,000
 June 30, 2024
$ -

The bank short-term borrowing rates were 2.43% and 2.42% on June 30, 2025 and December 31, 2024, respectively.

  • (2) Long-term borrowings
Long-term borrowings
Guaranteed loans (Note
26)
Bank’s debt
Less: Amount due in one
year
Long-term borrowings		 June 30, 2025
$ 387,540

29,280
$ 358,260		 December 31,
2024
$ 402,180


29,280

$ 372,900
 June 30, 2024






$ 190,720
14,640
$ 176,080

The bank long-term loan interest rate were 2.44%, 2.47%~2.58%, and 2.46% on June 30, 2025, December 31 and June 30, 2024, respectively.

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

  • (4) The information of endorsement guarantee provided by consolidated company, please refer to Note 30.

16. Other payables

please refer to Note 30.
Other payables
Current
Salaries payable

Insurance and housing fund
payable
Dividend payable
Processing expenses payable
Temporary employee service
payable
Commission and marketing
expense
Other payable
Equipment payables
Other payables

 June 30, 2025
$ 61,453

47,265
90,957
49,784
1,538
680
32,378
7,592

11,612

$ 303,259
 December 31,
2024

$ 58,249

53,377
-

38,755
859
573
27,896
5,537

3,303

$ 188,549
 June 30, 2024







$ 41,522
52,645
102,463
50,415
574
1,239
23,982
8,075
13,867
$ 294,782
  • 22 -

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

Less: Amount due in one year

 June 30, 2025
$ 4,300

(
11 )

(
4,289)

$		 December 31,
2024

$ 47,000

(
612 )

(
46,388)

$ -
 June 30, 2024
$ 50,000
(
1,183 )
(
48,817)
$ -

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. Financial-Supervisory-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,

  • (1) Total Issued: NTD 200,000 thousand.

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

  • (3) Stated rate: annual interest 0%

  • (4) Duration: 3 years; August 12, 2022 to August 12, 2025.

  • (5) Redemption method of the Company:

  • 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.

  1. 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.

  • 23 -

(6) 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.

  • (7) Conversion:

  • Conversion period:

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

  1. 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 distributed cash dividends in 2024, the conversion price of the Company’s bonds has been adjusted to NTD 42.39 per share in accordance with the terms of the contract.

  1. 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.

  • (8) The convertible bond issued on August 12, 2022 includes liability and equity component. The equity component is presented as additional paid-in capital- Stock option under equity. The effective interest rate of liabilities components is initially recognized at 2.17%.
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% 7,024
Conversion of bonds payable into common shares ( 190,249)
Liability component on June 30, 2025 $ 4,289

As of June 30, 2025, of the third issuance of unsecured convertible bonds, a total par value of NTD 195,700 thousand was converted to 4,419 thousand common shares.

  • 24 -

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 defined contributed pension cost recognized in April 1 to June 30, 2025 and 2024, January 1 to June 30, 2025 and 2024 were NTD 930 thousand, NTD 804 thousand, NTD 1,803 thousand and NTD 1,514 thousand, respectively, by consolidated company.

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 April 1 to June 30, 2025 and 2024, January 1 to June 30, 2025 and 2024 were NTD 1,823 thousand, NTD 4,673 thousand, NTD 7,451 thousand and NTD 9,377 thousand, respectively, per previous pension plan.

19. Equity

  • (1) Share Capital
y
Share Capital
Authorized number of
shares (thousand shares)
Authorized capital

Number of shares issued
with fully paid-in capital
(thousand shares)

Outstanding capital
 June 30, 2025

100,000

$ 1,000,000


38,730

$ 387,296
 December 31,
2024


100,000

$ 1,000,000


37,722

$ 377,223
 June 30, 2024









100,000
$ 1,000,000
37,652
$ 376,515

On the “Third Domestic Unsecured Convertible Bonds” issued by the Company from January 1 to June 30, 2025 and 2024, the bondholders used 427 and 892 convertible bonds for conversion to the issued 1,007 thousand and 2,011 thousand new shares.

(2) Capital surplus

new shares.
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

 June 30, 2025
$ 919,363

8,465

191

$ 928,019
 December 31,
2024

$ 885,055

8,465

2,085

$ 895,605
 June 30, 2024






$ 882,678
8,465
2,218
$ 893,361
  • 25 -

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.

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%.

  • 26 -

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.

  • (4) Other equity
meeting on May 29, 2025 and May 31, 2024, respectively.
Other equity		 meeting on May 29, 2025 and May 31, 2024, respectively.
Other equity		 meeting on May 29, 2025 and May 31, 2024, respectively.
Other equity
Exchange differences on Translating the financial statements of foreign operations
January 1 to June
30, 2025
January 1 to June
30, 2024
Balance, beginning
$ 14,519
( $ 56,738 )
Exchange differences from
financial statements of
foreign operating entities
(151,629)
67,670
Balance, ending
($ 137,110)
$ 10,932

Balance, beginning
Exchange differences from
financial statements of
foreign operating entities
Balance, ending
January 1 to June
30, 2025
$ 14,519
(151,629)
($ 137,110)

(
(		 ( $ 56,738 )
67,670
$ 10,932
  • (5) Non-controlling interest
Non-controlling interest
Balance, beginning
Net loss of current period
Balance, ending		 January 1 to June
30, 2025
$ 7,816
(
819)
$ 6,997		 January 1 to June
30, 2024

(
(
 $ 9,071
626)
$ 8,445

20. Consolidated net income

  • (1) Interest revenue
olidated net income
Interest revenue
Bank deposits
 April 1 to June
30, 2025		 April 1 to June
30, 2024
$ 4,163
 January 1 to
June 30, 2025		 January 1 to
June 30, 2024
$ 8,672
$ 4,773
 $ 9,767
 $ 8,672
  • 27 -

(2) Other income

Other income
April 1 to June
30, 2025
Rental income
$ 582

Government grants
(Note 23)
516
Others

3,719

$ 4,817

Other gains and losses
April 1 to June
30, 2025
Gain or loss on disposal
of property, plant, and
equipment
( $ 7 )
Net foreign exchange
gain (loss)
(
49,624 )
Gain (loss) on financial
assets and liabilities at
fair value through
profit and loss
-
Others

-

($ 49,631)

Financial cost
April 1 to June
30, 2025
Bank’s debt
$ 2,707

Interest on the
convertible bonds
161
Interest on lease
liabilities

278

Total
$ 3,146
 April 1 to June
30, 2024
$ 1,038

3,796

348

$ 5,182

April 1 to June
30, 2024
$ -


5,766

11


-

$ 5,777

April 1 to June
30, 2024
$ 1,379

272

405
$ 2,056
 January 1 to
June 30, 2025
$ 2,832

1,020

3,998

$ 7,850

January 1 to
June 30, 2025
$ 15,011

(
43,327 )
(
15 )
(
858)

($ 29,189)

January 1 to
June 30, 2025
$ 5,570

392

614

$ 6,576
 January 1 to
June 30, 2024
$ 2,053
4,460

658
$ 7,171
January 1 to
June 30, 2024
$ -

21,623

163

-
$ 21,786
January 1 to
June 30, 2024






$ 2,889
992
695
$ 4,576

(3) Other gains and losses

(4) Financial cost

(5) 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
 April 1 to June
30, 2025
$ 18,488


4,803

1,356

$ 24,647


$ 13,760

9,531

$ 23,291


$ 155

1,201

$ 1,356
 April 1 to June
30, 2024
$ 18,065
4,607


929

$ 23,601


$ 13,646

9,026

$ 22,672


$ 103

826

$ 929
 January 1 to
June 30, 2025
$ 38,086


9,844

2,771

$ 50,701


$ 28,110


19,820

$ 47,930


$ 320


2,451

$ 2,771
 January 1 to
June 30, 2024		 January 1 to
June 30, 2024






































$ 35,540
9,097
1,847
$ 46,484
$ 27,256
17,381
$ 44,637
$ 204
1,643
$ 1,847
  • 28 -

(6) Employee benefits expenses

Short-term employee
benefits
Salaries and wages
Labor insurance
and national
health insurance
Retirement benefits
Other employee benefits
Total employee benefits
expenses
Summary by function
Operating cost

Operating expenses
 April 1 to June
30, 2025		 April 1 to June
30, 2025		 April 1 to June
30, 2024
$ 68,248

4,276
5,477

3,806

$ 81,807
$ 47,429


34,378

$ 81,807
 January 1 to
June 30, 2025
$ 199,903

8,404
9,254

12,762

$ 230,323

$ 140,086


90,237

$ 230,323
 January 1 to
June 30, 2024		 January 1 to
June 30, 2024





$ 105,311

3,245
2,753
6,612

$ 117,921

$ 76,357

41,564

$ 117,921














$ 137,299
8,491
10,891
8,448
$ 165,129
$ 95,806
69,323
$ 165,129

(7) Remuneration to employees, Directors and Supervisors

According to the Articles of Incorporation, the remuneration to employees and Directors’ is calculated by the income before tax and the remuneration to employees and Directors’ with rate no lower than 1.5% and higher than 2%. The estimated remuneration to employees and Directors and Supervisors in the April 1 to June 30, 2025 and 2024, January 1 to June 30, 2025 and 2024, were specified below:

Estimate on ratio

Estimate on ratio Estimate on ratio Estimate on ratio
Remuneration to employees
Remuneration to directors/
supervisors
Amount
April 1 to June
30, 2025
Remuneration to
employees
$ 2,904

Remuneration to
directors/supervisors
$ 968
 January 1 to June
30, 2025
January 1 to June
30, 2024
6%
4%
2%
2%
April 1 to June
30, 2024
January 1 to
June 30, 2025
January 1 to
June 30, 2024
$ 868
$ 7,265
$ 1,973
$ 433
$ 2,422
$ 986		 January 1 to June
30, 2024
6%
2%
April 1 to June
30, 2024
$ 868

$ 433
 4%
2%
January 1 to
June 30, 2024

$ 2,904

$ 968


$ 1,973
$ 986

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.

  • 29 -

The compensation of employees and remuneration to Directors and Supervisors for 2024 and 2023 were adopted by a resolution of the Board of Directors on March 10, 2025 and March 14, 2024, respectively as follows:

Amount

Amount
Remuneration to employees
Remuneration to directors/
supervisors		 2024
Cash
$ 5,192
$ 2,596		 2023
Cash


$ 5,186
$ 2,593

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.

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
Current

Additional 5% tax
levied on
undistributed
earnings
Prior year
adjustment

Deferred tax
Current

Income tax expense
recognized in the
profit or loss		 April 1 to June
30, 2025		 April 1 to June
30, 2025		 April 1 to June
30, 2024
$ 14,955

(
516 )
(
2,842)


11,597

(
5,332)

$ 6,265
 January 1 to
June 30, 2025		 January 1 to
June 30, 2025		 January 1 to
June 30, 2024
$ 31,278
289

3,899

35,466
(
9,111)
$ 26,355		 January 1 to
June 30, 2024
$ 31,278
289

3,899

35,466
(
9,111)
$ 26,355

(


(
 $ 19,158


200 )
4,014

22,972

8,354)

$ 14,618




$ 29,577


70
4,014

33,661

9,953

$ 43,614
 $ 31,278
289
3,899
35,466
9,111)
$ 26,355

(2) Income tax audit

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

Income tax audit
The tax filings for the Company and the subsidiaries
collection agency are as followed:		 verified by the tax
POWER LOGIC TECH. INC
SUNNY SHARP INTERNATIONAL LIMITED
TAIWAN BRANCH (BVI)
CICHENG TECHNOLOGY CO., LTD.		 Year verified
2023
2023
2023
  • 30 -

22. Earnings per share

Earnings per share
Basic earnings per share

Diluted earnings per share
 April 1 to June
30, 2025
$ 1.14

$ 1.13
 April 1 to June
30, 2024
$ 0.51

$ 0.51
 Unit: NTD per share
January 1 to
June 30, 2025
January 1 to
June 30, 2024
$ 2.85
$ 1.22
$ 2.79
$ 1.18



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

Net profit of current period

Net profit of current period
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		 April 1 to June
30, 2025
$ 43,655


161

$ 43,816
 April 1 to June
30, 2024
$ 19,342


272

$ 19,614
 January 1 to
June 30, 2025
$ 108,157


392

$ 108,549
 January 1 to
June 30, 2024








$ 44,911
992
$ 45,903

Number of Shares

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		 April 1 to June
30, 2025
38,187
107

644


38,938
 April 1 to June
30, 2024
37,607
32

1,172


38,811
 Unit: Thousand shares
January 1 to
June 30, 2025
January 1 to
June 30, 2024
38,007
36,881
144
67

824

1,898

38,975

38,846



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

  • 31 -

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 asset-related subsidies and are recorded as deferred income, and a gain or loss of NTD 389 thousand, NTD 413 thousand, NTD 804 thousand and NTD 814 thousand were recognized in April 1 to June 30, 2025 and 2024, January 1 to June 30, 2025 and 2024 under other income on a systematic basis over the depreciation period (recorded under other income).

  • (2) The Consolidated Company received other government subsidies for an amount of NTD 127 thousand and NTD 3,383 thousand on April 1 to June 30, 2025, and 2024, respectively; also, NTD 216 thousand and NTD 3,646 thousand (booked in the “other income” account) on January 1 to June 30, 2025 and 2024, respectively.

24. Financial instruments

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

  • Fair value level December 31, 2024

Fair value level
December 31, 2024
Financial assets at fair value
through profit and loss
Sell-/buy-back of convertible
bonds

June 30, 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
$ 19

Level 3
$ 60
 Total
$ 19
Total
$ 60
  1. Financial instruments are adjusted according to Level 3 fair value. January 1 to June 30, 2025
January 1 to June 30, 2025
Financial assets
Balance, beginning
Recognized in profit and loss (Other profit or
loss)
Delisting of convertible corporate bonds
Balance, ending		 Financial assets at
fair value through
profit and loss
Derivatives
$ 19
(
15 )
(
4)
$ -
  • 32 -

January 1 to June 30, 2024

January 1 to June 30, 2024
Financial assets (liabilities)
Balance, beginning
Recognized in profit and loss (Other profit or
loss)
Delisting of convertible corporate bonds
Balance, ending		 Financial assets
(liabilities) at fair
value through profit
and loss
Derivatives
( $ 14 )
163
(
89)
$ 60
  1. 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 on June 30, 2025, December 31 and June 30, 2024, was 46.88%, 36.23%, and 34.19%, respectively.

  • (2) Categories of financial instruments
Financial assets
Financial assets based on
cost after amortization
(Note 1)

The held-for-trade assets
measured at fair value
through profit or loss


Financial liabilities
Measured at amortized cost
(Note 2)
 June 30, 2025
$ 1,368,045


-

$ 1,368,045

$ 938,959
 December 31,
2024

$ 1,243,753


19

$ 1,243,772

$ 866,574
 June 30, 2024 June 30, 2024









$ 1,249,847
60
$ 1,249,907
$ 666,299

  • 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

  • 33 -

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.

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 29 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
January 1 to June
30, 2025
$ 22,624		 January 1 to June
30, 2024
$ 18,318
  • 34 -

(2) Interest rate risk

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

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


With fair value
interest rate risk
- Financial
liabilities

With cash flow
interest rate risk
- Financial
liabilities		 June 30,2025
$ 40,000

387,540		 December 31,
2024

$ 70,000

402,180		 June 30,2024
$ -
190,720

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 969 thousand and NTD 477 thousand in January 1 to June 30, 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.

  • 35 -

The credit risk of the consolidated company is from its’ biggest customer. The total account receivable portion from that customer is 38%, 27% and 23% as of June 30, 2025, December 31 and June 30, 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.

Bank loan is an important source of liquidity to the consolidated company. As of June 30, 2025, December 31 and June 30, 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.

June 30, 2025

June 30, 2025
Non-derivative
financial liabilities
Notes and account
payables
No interest-bearing
liabilities
Lease liability
Floating rate
instruments
Fixed interest rate:		 Payment on
demand or
less than 1
month
$ 59,777
4,300
1,598
2,440
40,000
$ 108,115		 One-three
months
$ 104,667

-
3,196

4,880
-
$ 112,743		 3 months ~ 1
year
$ 39,427

-
13,874

21,960

-
$ 75,261		 1~5 years

$ -

-
11,184

358,260
-

$ 369,444
 Over 5 years



















$ -

-

-

-
-
$ -
  • 36 -

December 31, 2024

Non-derivative
financial liabilities
Notes and account
payables
No interest-bearing
liabilities
Lease liability
Floating rate
instruments
Fixed interest rate:		 Payment on
demand or
less than 1
month		 One-three
months
$ 77,181

-
3,174

4,880
-
$ 85,235		 3 months ~ 1
year
$ 41,129

-
14,281

21,960

-
$ 77,370		 1 ~5 years

$ -

-
17,342

372,900
-

$ 390,242
 Over5 years Over5 years


$ 41,147
47,000
1,587
2,440
70,000
$ 162,174
















$ -

-

-

-
-
$ -

June 30, 2024

Floating rate
instruments
Fixed interest rate:
June 30, 2024		 2,440

70,000
$ 162,174		 2,440

70,000
$ 162,174


4,880
-
$ 85,235
21,960

-
$ 77,370


372,900
-

$ 390,242
-

-
$ -
-

-
$ -
Non-derivative
financial
liabilities
Notes and account
payables

No interest-bearing
liabilities

Lease liability

Floating rate
instruments

 Payment on
demand or
less than 1
month



One-three
months
$ 67,241
-
3,169
2,440

$ 72,850
 3 months ~ 1
year
$ 29,542

50,000

14,263

10,980

$ 104,785
 1 ~5 years
$ -
-
26,825
58,560

$ 85,385
 Over5 years




$ 35,197
-
1,585
1,220

$ 38,002









$ -
-
-
117,520
$ 117,520

(2) Financing facilities

Financing facilities

Guaranteed bank loan
amount
- The amount
expensed
- The amount not
yet expensed
 June 30, 2025
$ 427,540

467,893
$ 895,433
 December 31,
2024

$ 472,180


519,453

$ 991,633
 June 30, 2024






$ 190,720
587,338
$ 778,058

25. Related party transactions

Remunerations to the management

Short-term employee benefits

Retirement benefits

 April 1 to June
30, 2025
$ 3,732


63

$ 3,795
 April 1 to June
30, 2024
$ 3,758


61

$ 3,819
 January 1 to
June 30, 2025
$ 7,644


125

$ 7,769
 January 1 to
June 30, 2024		 January 1 to
June 30, 2024








$ 7,249
120
$ 7,369

26. Pledged assets

Below assets are collaterals for bank borrowings:

Land, buildings and
architecture
 June 30, 2025
$ 694,276
 December 31,
2024

$ 751,759
 June 30, 2024 June 30, 2024
$ 443,204
  • 37 -

27. 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
 June 30, 2025
$ 174,783
 December 31,
2024

$ -
 June 30, 2024 June 30, 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 214,140 thousand (equivalent to NTD 194,204 thousand). THB 21,414 thousand (equivalent to NTD 19,420 thousand) had been paid for the aforementioned property as of June 30, 2025, and is recorded under “prepayment for equipment.” As of August 15, 2025, the transfer of ownership had not been completed.

28. Significant subsequent events

  • (1) The Company's Board of Directors resolved on May 9, 2025, to issue the 4th tranche of domestic unsecured convertible corporate bonds to finance reinvestment in its overseas subsidiary in Thailand. The bonds have a maturity of 3 years. The issuance of these bonds was approved by the FSC on August 6, 2025, and is now effective. The Company determined the actual issuance of 2,500 shares on August 15, 2025, each with a face value of NTD 100 thousand and a coupon rate of 0%. Issued at 100% of face value, the total amount raised was NTD 250,000 thousand.

  • (2) On May 9, 2025, the Board of Directors of the Company resolved to issue new shares to fund a cash capital increase for its overseas subsidiary in Thailand. The aforementioned cash capital increase was approved by the FSC on August 6, 2025. The Company decided to issue 2,300 thousand shares for cash capital increase on August 15, 2025, and the base date for capital increase and stock subscription is scheduled on September 7, 2025.

29. 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:

  • 38 -

June 30, 2025

June 30, 2025
Foreign
currency
Foreign currency
assets
Monetary item
USD
$ 15,640

USD
1,598

Foreign currency
liabilities
Monetary item
USD
1,720

USD
75

December 31, 2024
Foreign
currency
Foreign currency
assets
Monetary item
USD
$ 16,007

USD
1,828

Foreign currency
liabilities
Monetary item
USD
1,031

USD
41

June 30, 2024
Foreign
currency
Foreign currency
assets
Monetary item
USD
$ 11,622

USD
767

Foreign currency
liabilities
Monetary item
USD
1,049

USD
50
 Exchange rate
29.300 (USD : NTD)

7.1586 (USD : CNY)

29.300 (USD : NTD)

7.1586 (USD : CNY)

Exchange rate
32.785 (USD : NTD)

7.1884 (USD : CNY)

32.785 (USD : NTD)

7.1884 (USD : CNY)

Exchange rate
32.450 (USD : NTD)

7.1268 (USD : CNY)

32.450 (USD : NTD)

7.1268 (USD : CNY)
 Book value
$ 458,246
$ 46,811
$ 50,402
$ 2,183
Book value

Foreign currency
assets
Monetary item
USD

USD
Foreign currency
liabilities
Monetary item
USD
USD
June 30, 2024
Foreign currency
assets
Monetary item
USD

USD
Foreign currency
liabilities
Monetary item
USD
USD
$ 524,791
$ 59,941
$ 33,810
$ 1,346
Book value



$ 377,149
$ 24,878
$ 34,060
$ 1,612
  • 39 -

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):

Functional
currency
NTD
CNY
Functional
currency
NTD
CNY		 January 1 to June 30, 2025
Functional currency
exchanges for presentation
currency
Net gain (loss)
on foreign
exchange
1 (NTD: NTD) ( $ 43,121 )
4.435 (CNY: NTD) (
206)
($ 43,327)
April 1 to June 30, 2025
Functional currency
exchanges for presentation
currency
Net gain (loss)
on foreign
exchange
1 (NTD: NTD) ( $ 49,445 )
4.435 (CNY: NTD) (
179)
($ 49,624)		 January 1 to June 30, 2025
Functional currency
exchanges for presentation
currency
Net gain (loss)
on foreign
exchange
1 (NTD: NTD) ( $ 43,121 )
4.435 (CNY: NTD) (
206)
($ 43,327)
April 1 to June 30, 2025
Functional currency
exchanges for presentation
currency
Net gain (loss)
on foreign
exchange
1 (NTD: NTD) ( $ 49,445 )
4.435 (CNY: NTD) (
179)
($ 49,624)		 January 1 to June 30, 2024 January 1 to June 30, 2024 January 1 to June 30, 2024
Functional currency
exchanges for presentation
currency
1 (NTD: NTD)
4.435 (CNY: NTD)

April 1 to June 30,		 Functional currency
exchanges for presentation
currency
1 (NTD: NTD)
4.490 (CNY: NTD)

April 1 to June 30,		 Net gain (loss)
on foreign
exchange
$ 20,348

1,275
$ 21,623
2024
Functional currency
exchanges for presentation
currency
1 (NTD: NTD)
4.435 (CNY: NTD)
 Functional currency
exchanges for presentation
currency
1 (NTD: NTD)
4.490 (CNY: NTD)
 Net gain (loss)
on foreign
exchange
(
(
(

$ 5,148
618
$ 5,766

30. 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.

  • Other 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.

  • 40 -

  • 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.

  • (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.

31. 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.

32. 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 January 1 to June 30, 2025 and 2024.

  • (1) Main revenues from products and service

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

as below:
Cooling fan
Others		 January 1 to June
30, 2025
$ 921,998

3,015
$ 925,013		 January 1 to June
30, 2024




$ 631,291
1,252
$ 632,543
  • 41 -

(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.

per asset’s geographic location.
Area
Revenue from external
customers
China
Taiwan
Others
Total
Non-current assets:
China
Taiwan
Others
Total		 January 1 to June
30, 2025
$ 814,490
43,350

67,173
$ 925,013
$ 613,979
754,535

19,420
$ 1,387,934		 January 1 to June
30, 2024










$ 547,377
29,508
55,658
$ 632,543
$ 705,684
505,456
31
$ 1,211,171

Non-current asset exclude financial instrument and 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		 January 1 to June
30, 2025
$ 280,219
122,204

86,864
$ 489,287		 January 1 to June
30, 2024






$ 121,171
119,662

66,183
$ 307,016
  • 42 -

SUN MAX TECH LIMITED and its subsidiaries

The Loaning of Funds

January 1 to June 30, 2025

Attached table 1

Unit: Unless otherwise stated, NTD Thousand

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
1
2
3
5		 POWER LOGIC TECH.
INC
POWER LOGIC
HOLDINGS INC.
UNITED STRATEGY
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
Yes

Yes

Yes

Yes		 $ 53,000
16,603
( USD
500 )
127,920
(RMB 25,500 )
(USD
300 )
14,942
( USD
450 )		 $ 20,000
11,720
( USD
400 )
8,790
(RMB
- )
(USD
300 )
-		 $ -
-
-
-		 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		 $ -
-
-
-		 Operation
turnover
Operation
turnover
Operation
turnover
Operation
turnover		 $ -
-
-
-		 -
-
-
-		 -
-
-
-		 $ 155,576
185,579
1,221,782
101,221		 $ 155,576

185,579

1,221,782

101,221		 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. 43 -

Unit: Unless otherwise stated, NTD Thousand

SUN MAX TECH LIMITED and its subsidiaries

Endorsement and Guarantee

January 1 to June 30, 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
endorsement
of parent
company to
subsidiary
Guarantee
and
endorsement
by
subsidiary
to parent
company
Guarantee
and
endorsement
in Mainland
China

Remarks
Company name Relation
0
0
0
0		 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）
Taiyi (Jiangxi)
Electronic
Technology Co., Ltd.		 Parent
Company and
Sub-subsidiary
Parent
Company and
Subsidiaries
Parent
Company and
Subsidiaries
Parent
Company and
Sub-subsidiary
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 )
$ 32,744
( RMB 8,000 )

40,000

146,500
( USD 5,000 )

204,649
( RMB 50,000 )
$ -

-

-

-		 $ -

-
-
-		 2%
2%
8%
11%		 Note 3
Note 3
Note 3
Note 3		 Y
Y
Y
Y		 N
N
N
N		 Y
N
N
Y

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: 1,835,351×10%=183,535, but the endorsement guarantee amount to 100% direct or in-direct 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: 1,835,351×150%=2,753,027.

  • Note 3: The total endorsement guarantee amount by the Company do not exceed 20% of latest net financial statements audited by CPA: 1,835,351×20%=367,070, 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: 1,835,351×150%=2,753,027.

  • 44 -

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

January 1 to June 30, 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(payable)
Taiyi (Jiangxi) Electronic
Technology Co., Ltd.
SUNNY SHARP
INTERNATIONAL
LIMITED TAIWAN
BRANCH（BVI）
DONG GUAN DONG LI
DIAN ZI CO. LTD		 SUNNY SHARP
INTERNATIONAL
LIMITED TAIWAN
BRANCH（BVI）
Taiyi (Jiangxi) Electronic
Technology Co., Ltd.
Taiyi (Jiangxi) Electronic
Technology Co., Ltd.		 Affiliate
Affiliate
Affiliate		 Sales
Sales
Sales		 $ 253,985
102,557
163,716		 26.71%
27.61%
91.23%		 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

-


-


-		 -
-
-		 $ 168,166
51,724
115,727		 23.53%
21.26%
90.20%

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

  • 45 -

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

June 30, 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
Taiyi (Jiangxi) Electronic
Technology Co., Ltd.
DONG GUAN DONG LI DIAN ZI
CO. LTD		 SUNNY SHARP
INTERNATIONAL LIMITED
TAIWAN BRANCH（BVI）
Taiyi (Jiangxi) Electronic
Technology Co., Ltd.		 Affiliate
Affiliate		 $ 168,166
115,727		 3.51 times
3.18 times		 $ -
-		 -
-		 $ 104,039
87,360		 $ -
-

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

  • 46 -

SUN MAX TECH LIMITED and its subsidiaries

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

January 1 to June 30, 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		 Proportion
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
134,548
( USD
4,445 )
511,021
( USD 16,960 )
46,741
( USD
1,550 )
40,000
116,777
( USD
3,600 )		 $ 219,200
134,548
( USD
4,445 )
511,021
( USD 16,960 )
46,741
( USD
1,550 )

40,000
-
21,920
3,050
3,025
490

4,000
40,000		 100
100
100
100
80
100		 $ 388,939
185,579
1,221,782
98,442
27,985
109,247		 $ 17,159
(
9,394 )

114,805

11,840
(
4,096 )

212		 $ 17,159
(
9,394 )

114,805

12,810
(Note 4)
(
3,277 )

212


  • 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.

  • 47 -

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

January 1 to June 30, 2025

Attached table 6

Unit: Unless otherwise stated, NTD Thousand

No.
(Note 1)		 Trader’s name Counterparty Relationship with trader
(Note 2)		 Transactions Transactions

Title		 Amount Terms and conditions The ratio of
consolidated total
income or assets
(Note 3)
0
1
1
2
2
3
3
4
4
4
4
4		 Sun Max Tech Limited
POWER LOGIC TECH. INC
POWER LOGIC TECH. INC
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
Taiyi (Jiangxi) Electronic Technology Co.,
Ltd.
Taiyi (Jiangxi) Electronic Technology Co.,
Ltd.
Taiyi (Jiangxi) Electronic Technology Co.,
Ltd.
Taiyi (Jiangxi) Electronic Technology Co.,
Ltd.
Taiyi (Jiangxi) Electronic Technology Co.,
Ltd.		 SUNNY SHARP INTERNATIONAL
LIMITED TAIWAN BRANCH（BVI）
Taiyi (Jiangxi) Electronic Technology Co., Ltd.
Taiyi (Jiangxi) Electronic Technology Co., Ltd.
Taiyi (Jiangxi) Electronic Technology Co., Ltd.
Taiyi (Jiangxi) Electronic Technology Co., Ltd.
Taiyi (Jiangxi) Electronic Technology Co., Ltd.
Taiyi (Jiangxi) Electronic Technology 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）		 1
3
3
3
3
3
3
3
3
3
3
3		 Other receivables
Sales revenue
Accounts receivable
Sales revenue
Accounts receivable
Sales revenue
Accounts receivable
Sales revenue
Accounts receivable
Sales revenue
Accounts receivable
Financial expenses		 $ 64,460
73,274
25,272
102,557
51,724
163,716
115,727
57,796
18,300
253,985
168,166
24,290		 Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4		 2.16%
7.92%
0.85%
11.09%
1.73%
17.70%
3.87%
6.25%
0.61%
27.46%
5.63%
2.63%

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.

  • 48 -

  • 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.

  • 49 -

SUN MAX TECH LIMITED and its subsidiaries

Information regarding investment in the territory of mainland china

January 1 to June 30, 2025

Attached table 7

Unit: Unless otherwise stated, NTD Thousand

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
shareholding
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
Taiyi (Jiangxi)
Electronic
Technology 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.)		 $ -
-		 $ -
-		 $ -
-		 $ -
-		 $ 17,002
107,930		 100
100		 $ 14,275
(Note 4)
107,591
(Note 4)
$ 160,968
(Note 4)

1,125,819
(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.

  • 50 -

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