SVBI — Audit Report / Information 2024

Nov 7, 2024

1786

SciVision Biotech Inc.

Parent Company Only Financial Statements for the Years Ended December 31, 2024, and 2023 and Independent Auditors’ Report

Address: No. 1, S. 1st Rd., Qianzhen Dist., Kaohsiung City Tel: (07)823-2258

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders SciVision Biotech Inc.

Opinion

We have audited the parent company only balance sheets of SciVision Biotech Inc. as of December 31, 2024 and 2023, and the related parent company only statements of comprehensive income, changes in equity, and cash flows for the years then ended, as well as the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements of the Company as of December 31, 2024 and 2023, and for the years then ended, are prepared, in all material respects, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and accordingly present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its financial performance and cash flows for the years then ended.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the Company for the year ended December 31, 2024. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our audit opinion thereon, and we do not provide a separate opinion on these matters. We have determined that the key audit matters to be communicated in our report are as follows:

1. Inventory Valuation

As of December 31, 2024, the net amount of product-related inventory of the Company was NT$66,686 thousand, which is material to the Company. Given the high technological threshold in the biotechnology industry, which is characterized by stringent regulatory and technical patent requirements, there is generally less concern regarding inventory obsolescence. However, due to the limited shelf life of products, there is a risk that some products may become unsalable because of stagnation or expiration. The assessment of obsolescence and valuation allowances

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for such inventory involves significant management judgment and was therefore identified as a key audit matter.

Our audit procedures included, but were not limited to, understanding and testing the design and operating effectiveness of internal controls established by management over inventory, including cost accounting and inventory assessment procedures; evaluating management's inventory count plan; selecting significant inventory locations and performing physical observation to verify the quantity and condition of the inventory; testing the accuracy of inventory aging reports and analyzing changes in aging, along with expected demand and market value; and assessing management’s analysis and evaluation of slow-moving and obsolete inventories, including the realizability of inventory and the estimation of net realizable value. We also tested the appropriateness of the allowance for inventory write-downs to net realizable value.

We also considered the adequacy of the disclosures related to inventory in Notes (5) and (6) to the parent company only financial statements.

1. Revenue Recognition

The primary business activities of the Company involve the research, development, manufacturing, and sales of hyaluronic acid and related application products. Revenue from sales is significantly affected by regulatory requirements and serves as a key indicator for evaluating the Company’s financial or operational performance. Therefore, there is a significant risk regarding the accuracy of the timing and amount of revenue recognition, and we identified revenue recognition as a key audit matter.

Our audit procedures included, but were not limited to, understanding and testing the design and operating effectiveness of internal controls over the sales and collection cycle; examining supporting documents for sales revenue, including contracts, customer orders, and shipping documents; reviewing key terms of the orders or contracts to identify performance obligations, price allocation, and the point in time when performance obligations are satisfied to assess the appropriateness of revenue recognition timing; selecting sales transactions from a specific period around the balance sheet date and verifying supporting documentation to confirm proper cutoff; and performing analytical procedures by product to identify any significant anomalies.

We also considered the adequacy of the revenue disclosures in Note (6) to the parent company only financial statements.

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

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

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

Those charged with governance of the Company are responsible for overseeing the Company’s financial reporting process.

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

As part of an audit in accordance with auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following:

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

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

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

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

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

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit of the investees included in the parent company only financial statements. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with

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relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of SciVision Biotech Inc. for the year ended December 31, 2024, and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Ernst & Young

Approved by the competent authority to audit and attest the financial reports of public companies Approval Number:

Jin-Guan-Zheng-Shen-Zi No.1010045851

Jin-Guan-Zheng-Shen-Zi No.1100352201

Auditors: Li, Fang-Wen & Hong, Guo-Sen

March 6, 2025

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Notice to Readers

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

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

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SCIVISION BIOTECH INC.

PARENT COMPANY ONLY BALANCE SHEETS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
ASSETS			December 31, 2024		December 31, 2023
Code	Item	Note	Amount	%	Amount	%
1100 1110 1136 1150 1170 1180 1200 130x 1410 1470 11xx 1550 1600 1755 1780 1840 1920 1990 15xx 1xxx	CURRENT ASSETS Cash and cash equivalents Financial assets at amortized cost - current Notes receivable, net Accounts receivable, net Accounts receivable - related parties Other receivables Inventories, net Prepayments Other current assets Total current assets NON-CURRENT ASSETS Property, plant and equipment Right-of-use assets Intangible assets Deferred tax assets Refundable deposits Other non-current assets Total non-current assets TOTAL Investments accounted for using equity method Financial assets at fair value through profit or loss - current	4/6.1 4/6.2 4/6.3 4/6.4 4/6.5 6.5/7 4/6.6 4/6.7 4/6.8 4/6.16 4/6.9 4/6.19	655,200 $ 65,504 99,900 8,400 163,272 7,752 994 66,686 42,787 4 1,110,499 45,944 1,083,737 21,551 1,648 5,016 260 2,950 1,161,106 2,271,605 $	29 3 5 - 7 - - 3 2 - 49 2 48 1 - - - - 51 100	505,288 $ 59,055 233,900 4,200 90,355 - 933 87,252 14,888 - 995,871 4,363 1,112,377 22,817 2,032 15,495 260 2,950 1,160,294 2,156,165 $	23 3 11 - 4 - - 4 1 - 46 - 52 1 - 1 - - 54 100

(Please refer to the Notes to the Parent Company Only Financial Statements)

Chairman: Han, Kai-Cheng Manager: Han, Tai-Hsien Chief Accounting Officer: Kuo, Ju-Ling

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SCIVISION BIOTECH INC.

PARENT COMPANY ONLY BALANCE SHEETS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
LIABILITIES AND EQUITY			December 31, 2024		December 31, 2023
Code	Item	Note	Amount	%	Amount	%
2130 2170 2200 2230 2280 2321 2399 21xx 2530 2550 2570 2580 2640 2645 25xx 2xxx 3100 3110 3130 3200 3300 3310 3320 3350 3400 3xxx	CURRENT LIABILITIES Contract liabilities-current Accounts payable Other payables Current income tax liabilities Lease liabilities-current Other current liabilities-others Total current liabilities NONCURRENT LIABILITIES Corporate bonds payable Provisions - non-current Deferred tax liabilities Lease liabilities - non-current Net defined benefit liabilities - non-current Deposits received Total non-current liabilities Total liabilities Capital stock Common stock Bond conversion entitlement certificates Total capital stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL Current portion of corporate bonds payable or bonds subject to put options EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT	6.15 6.11/7 4/6.19 4/6.16 4/6.10 4/6.10 4/6.13 4/6.16 4/6.12 6.14 6.14 4	2,428 $ 7,042 158,875 12,201 1,176 134,785 731 317,238 - 21,146 4,346 21,678 8,140 2,006 57,316 374,554 717,920 627 718,547 844,081 88,339 876 246,032 335,247 (824) 1,897,051 2,271,605 $	- - 7 1 - 6 - 14 - 1 - 1 - - 2 16 32 - 32 37 4 - 11 15 - 84 100	6,966 $ 6,738 119,299 5,765 1,216 - 1,003 140,987 323,843 21,025 27 22,854 18,918 2,006 388,673 529,660 677,099 212 677,311 700,339 70,500 843 178,388 249,731 (876) 1,626,505 2,156,165 $	1 - 6 - - - - 7 15 1 - 1 1 - 18 25 31 - 31 32 3 - 9 12 - 75 100

(Please refer to the Notes to the Parent Company Only Financial Statements)

Chairman: Han, Kai-Cheng Manager: Han, Tai-Hsien Chief Accounting Officer: Kuo, Ju-Ling

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SCIVISION BIOTECH INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Code	Item	Note	2024		2023
			Amount	%	Amount	%
4000 5000 5900 5910 5950 6000 6100 6200 6300 6900 7000 7100 7010 7020 7050 7070 7900 7950 8000 8200 8300 8310 8311 8349 8360 8361 8399 8500 9750 9850	Operating revenue Operating costs Gross profit Unrealized profit (loss) from sales Gross profit (loss) from operations Operating expenses Selling expenses Administrative expenses Research and development expenses Total operating expense Net operating income Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Total non-operating income and expenses Profit before tax Tax expense Profit (loss) from continuing operations Profit (loss) Other comprehensive income Income tax related to components of other comprehen Exchange differences on translation Total other comprehensive income Total comprehensive income Earnings per share (NT$) Basic earnings per share Diluted earnings per share Share of profit (loss) of subsidiaries accounted for using equity method Components of other comprehensive income that will not be reclassified to profit or loss Gains (losses) on remeasurements of defined benefit plans Components of other comprehensive income that will be reclassified to profit or loss Income tax related to components of other comprehensive income that will be reclassified to profit or loss	4/6.15/7 4/6.6/6.17 4/6.17 6.18 6.19 6.18 6.19 6.19 4/6.20	868,233 $ (221,598) 646,635 (2,045) 644,590 (245,269) (86,808) (66,915) (398,992) 245,598 20,521 1,458 27,029 (5,091) 1,631 45,548 291,146 (48,892) 242,254 242,254 4,722 (944) 52 - 3,830 246,084 $ 3.51 $ 3.30 $	100 (26) 74 - 74 (28) (10) (8) (46) 28 3 - 3 - - 6 34 (6) 28 28 - - - - - 28	710,749 $ (200,494) 510,255 - 510,255 (176,480) (76,006) (55,776) (308,262) 201,993 14,872 861 2,941 (8,220) (2,450) 8,004 209,997 (32,097) 177,900 177,900 610 (122) (33) - 455 178,355 $ 2.66 $ 2.41 $	100 (28) 72 - 72 (25) (11) (8) (44) 28 2 - - - - 2 30 (5) 25 25 - - - - - 25

(Please refer to the Notes to the Parent Company Only Financial Statements)

Chairman: Han, Kai-Cheng Manager: Han, Tai-Hsien Chief Accounting Officer: Kuo, Ju-Ling

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SCIVISION BIOTECH INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

								(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
	Item	2	024	Capital Surplus		Retained Earnings		Others	Total
		Common Stock	Bond Conversion Entitlement Certificates		Legal Reserve	Special Reserve	Unappropriated Earnings	Foreign Currency Translation Reserve
Code		3110	3130	3200	3310	3320	3350	3410	31XX
A1 B1 B5 B17 C15 D1 D3 D5 I1 Z1 A1 B1 B3 B5 C15 C17 D1 D3 D5 I1 Z1	2022 Appropriations of earnings Legal reserve Cash dividends to shareholders Reversal of special reserve Cash dividends distributed from capital surplus 2023 Net income 2023 Other comprehensive income Conversion of convertible bonds Balance, December 31, 2023 2023 Appropriations of earnings Legal reserve Special reserve Cash dividends to shareholders Cash dividends distributed from capital surplus Other changes in capital surplus 2024 Net income 2024 Other comprehensive income Conversion of convertible bonds Balance, December 31, 2024 Balance, January 1, 2023 Total comprehensive income Balance, January 1, 2024 Total comprehensive income	661,904 $	- $	648,261 $ (3,035)	56,027 $ 14,473	859 $ (16)	144,723 $ (14,473) (130,266) 16 177,900 488	(843) $ (33)	1,510,931 $ - (130,266) - (3,035) 177,900 455
		-	-	-	-	-	178,388	(33)	178,355
		15,195	212	55,113					70,520
		677,099 $	212 $	700,339 $	70,500 $	843 $	178,388 $	(876) $	1,626,505 $
		677,099 $	212 $	700,339 $ (8,812) 170	70,500 $ 17,839	843 $ 33	178,388 $ (17,839) (33) (160,516) 242,254 3,778	(876) $ 52	1,626,505 $ - - (160,516) (8,812) 170 242,254 3,830
		-	-	-	-	-	246,032	52	246,084
		40,821	415	152,384					193,620
		717,920 $	627 $	844,081 $	88,339 $	876 $	246,032 $	(824) $	1,897,051 $

(Please refer to the Notes to the Parent Company Only Financial Statements)

Manager: Han, Tai-Hsien

Chairman: Han, Kai-Cheng

Chief Accounting Officer: Kuo, Ju-Ling

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SCIVISION BIOTECH INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Code	Item	2024	2023	Code	Item	2024	2023
		Amount	Amount			Amount	Amount
AAAA A10000 A20000 A20010 A20100 A20200 A20400 A20900 A21200 A22400 A22500 A23900 A29900 A30000 A31130 A31150 A31160 A31180 A31200 A31230 A31240 A32125 A32130 A32150 A32180 A32230 A32240 A33000 A33100 A33300 A33500 AAAA	CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Income and expense items not affecting cash flows: Depreciation expense Amortization expense Interest expenses Interest income Loss (gain) on disposal of property, plan and equipment Unrealized profit (loss) from sales Others Changes in operating assets and liabilities: Decrease (increase) in notes receivable Decrease (increase) in accounts receivable Decrease (increase) in other receivable Decrease (increase) in inventories Decrease (increase) in prepayments Decrease (increase) in other financial assets Increase (decrease) in contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in other payable Increase (decrease) in other current liabilities Increase (decrease) in net defined benefit liability Cash inflow (outflow) generated from operations Interest received Interest paid Income taxes refund (paid) Net cash flows from (used in) operating activities Decrease (increase) in accounts receivable - related parties Net loss (gain) on financial assets at fair value through profit or loss Share of loss (profit) of subsidiaries accounted using equity method	291,146 $ 62,766 501 (6,449) 5,091 (20,521) (1,631) (190) 2,045 626 (4,200) (72,917) (7,752) - 19,998 (27,899) (4) (4,538) - 304 36,483 (272) (6,056) 266,531 20,460 (408) (28,602) 257,981	209,997 $ 62,463 543 (2,895) 8,220 (14,872) 2,450 (544) - (1,379) - (13,294) 8,925 356 8,658 3,760 - 6,374 (4,063) (3,216) 25,057 66 (5,941) 290,665 14,718 (424) (30,973) 273,986	BBBB B00040 B00060 B01800 B02700 B02800 B03800 B04500 B06600 BBBB CCCC C04020 C04500 C09900 CCCC EEEE E00100 E00200	CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment Decrease in refundable deposits Acquisition of intangible assets Decrease in other financial assets Net cash flows from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payments of lease liabilities Cash dividends paid Other financing activities Net cash flows from (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Acquisition of financial assets measured at amortized cost Repayment of principal from financial assets measured at amortized cost upon maturity Acquisition of investments accounted for using equity method Proceeds from disposal of property, plant and equipment	(379,900) 513,900 (41,000) (30,768) 190 - (117) - 62,305 (1,216) (169,328) 170 (170,374) 149,912 505,288 655,200 $	(264,400) 62,610 - (14,485) 1,258 1 - 2,010 (213,006) (1,229) (133,301) - (134,530) (73,550) 578,838 505,288 $

(Please refer to the Notes to the Parent Company Only Financial Statements)

Chairman: Han, Kai-Cheng

Manager: Han, Tai-Hsien

Chief Accounting Officer: Kuo, Ju-Ling

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

1. GENERAL

SciVision Biotech Inc. (hereinafter referred to as the “Company”) was incorporated on November 12, 2001, with approval from the Ministry of Economic Affairs. The Company’s registered address is No. 1, S. 1st Rd., Qianzhen Dist., Kaohsiung City. Formerly named KeJing Biotech Inc., the Company changed its name to SciVision Biotech Inc. on August 1, 2005. The Company is primarily engaged in the production and sales of hyaluronic acid medical devices and related application products. The Company’s shares were initially listed on the Taipei Exchange (TPEx) on December 29, 2010, and subsequently transferred to the Taiwan Stock Exchange Corporation (TWSE) on November 12, 2013.

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

The parent company only financial statements of the Company for the years ended December 31, 2024 and 2023 were approved and authorized for issue by the Board of Directors on March 6, 2025.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

1. The impact of the initial application of IFRSs

The Company has adopted the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed by the Financial Supervisory Commission (FSC) that are applicable for annual periods beginning on or after January 1, 2024. The initial application of these new and amended standards did not have a material impact on the Company.

1. Standards or interpretations issued by the International Accounting Standards Board but not yet endorsed by the FSC as of the date of authorization for issuance of the financial statements:

Standard No. IAS 21	Title of the New Standard or Amendment Lack of Exchangeability	Effective Date
		January 1, 2025

• (1) Lack of Exchangeability (Amendments to IAS 21)

These amendments clarify the concept of exchangeability and how to determine the exchange rate when a currency lacks exchangeability. The amendments also introduce additional disclosure requirements in situations where a currency lacks exchangeability.

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

The above standards and interpretations have been issued by the International Accounting Standards Board, endorsed by the FSC, and are applicable for annual periods beginning on or after January 1, 2025. These standards or interpretations are not expected to have a material impact on the Company.

1. As of the date the financial statements were authorized for issue, the Company has not applied the following new, revised, and amended standards or interpretations that have been issued by the International Accounting Standards Board but have not yet been endorsed by the FSC:

Standard No. IFRS 10 and IAS 28 IFRS 17 IAS 18 IFRS 19 Amendments to IFRS 9 and IFRS 7 Volume 11 Amendments to IFRS 9 and IFRS 7	Title of the New Standard or Amendment Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Insurance Contracts Presentation and Disclosure of Financial Statements Disclosure Initiative — Subsidiaries without Public Accountability: Disclosures Amendments to the Classification and Measurement of Financial Instruments Annual Improvements to IFRSs Contracts Referencing Nature- dependent Electricity	Effective Date
		To be determined by the IASB January 1, 2023 January 1, 2027 January 1, 2027 January 1, 2026 January 1, 2026 January 1, 2026

• (1) Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

This project addresses the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures regarding the sale or contribution of assets from an investor to its associate or joint venture that results in the loss of control over a subsidiary. IAS 28 requires that gains or losses resulting from contributions of non-monetary assets to an associate or joint venture be recognized only to the extent of unrelated investors’ interests (i.e., as a “downstream” transaction), whereas IFRS 10 requires full recognition of gains or losses when control of a subsidiary is lost. The amendment limits the scope of the requirement in IAS 28. When the transaction involves the sale or contribution of assets that constitute a business as defined in IFRS 3 Business Combinations, the entire gain or loss shall be recognized.

The amendment also modifies IFRS 10 to clarify that when a parent loses control of a

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

subsidiary that does not constitute a business as defined in IFRS 3, and the transaction is made with an associate or joint venture, the gain or loss is recognized only to the extent of the interest attributable to the unrelated investors.

• (2) IFRS 17 “Insurance Contracts”

IFRS 17 introduces a comprehensive accounting model for insurance contracts, covering all relevant aspects including recognition, measurement, presentation, and disclosure. The core of the standard is the General Model, under which insurance contract groups are initially measured as the total of the present value of future cash flows and the contractual service margin. At the end of each reporting period, the carrying amount is the sum of the liability for remaining coverage and the liability for incurred claims.

In addition to the General Model, the standard provides a specific measurement approach for contracts with direct participation features, known as the Variable Fee Approach (VFA), and a simplified method for short-duration contracts, referred to as the Premium Allocation Approach (PAA).

IFRS 17 was originally issued in May 2017. Subsequent amendments were issued in 2020 and 2021 to defer the effective date by two years (from January 1, 2021 to January 1, 2023) and to introduce additional transition reliefs, reduce implementation costs through simplifications, and clarify certain provisions for better application. IFRS 17 replaces the interim standard IFRS 4 Insurance Contracts.

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

This standard will replace IAS 1 Presentation of Financial Statements. The key changes include:

• (a) Improved comparability of the statement of profit or loss The statement of profit or loss will categorize income and expenses into five defined categories: operating, investing, financing, income taxes, and discontinued operations. The first three are newly introduced categories to enhance the structure of the income statement, and all entities are required to present newly defined subtotals, including “operating profit or loss.” These changes aim to provide a consistent starting point for investors when analyzing financial performance across companies, thereby improving comparability.

• (b) Enhanced transparency of management performance measures Entities are required to disclose explanations of company-specific metrics related to the statement of profit or loss, referred to as management performance measures (MPMs).

• (c) More useful aggregation of financial information

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Guidance is provided on how to determine whether information should be presented in the primary financial statements or in the notes. This change is expected to lead to more detailed and useful disclosures. Entities are also required to provide more transparent information about operating expenses to help investors identify and understand the information they rely on.

• (4) Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)

This standard simplifies disclosure requirements for subsidiaries that do not have public accountability. Eligible subsidiaries may choose to apply this standard voluntarily.

• (5) Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)

These amendments include the following:

• (a) Clarification that financial liabilities are derecognized on the settlement date, and guidance is provided on the accounting treatment of financial liabilities settled via electronic payment before the settlement date.

• (b) Clarification on how to assess the cash flow characteristics of financial assets that include environmental, social, and governance (ESG)-linked or similar contingent features.

• (c) Clarification of the treatment of non-recourse assets and contractually linked instruments.

• (d) Additional disclosure requirements under IFRS 7 for financial assets or liabilities with terms or contingent features (including ESG-linked features), as well as for equity instruments measured at fair value through other comprehensive income (FVOCI).

• (6) Annual Improvements to IFRS Accounting Standards—Volume 11

• (a) Amendments to IFRS 1

These amendments align the hedge accounting requirements for first-time adopters with those in IFRS 9.

• (b) Amendments to IFRS 7

These amendments update outdated cross-references related to derecognition gains or losses.

• (c) Amendments to Implementation Guidance of IFRS 7

These amendments improve the wording in parts of the implementation guidance, including the introduction, disclosures of deferred fair value and trade price differences, and credit risk disclosures.

• (d) Amendments to IFRS 9

These amendments add cross-references to address questions about lessee derecognition of lease liabilities and clarify the definition of transaction price.

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SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

(e) Amendments to IFRS 10

These amendments remove inconsistencies between paragraphs B74 and B73 of the standard.

• (f) Amendments to IAS 7

These amendments remove references to the “cost method” in paragraph 37 of the standard.

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

These amendments include:

• (a) Clarification on the application of the “own use” exemption;

• (b) Permitting hedge accounting when such contracts are designated as hedging instruments;

• (c) Enhanced disclosure requirements to help investors understand the impact of such contracts on an entity’s financial performance and cash flows.

The above standards and interpretations have been issued by the International Accounting Standards Board but have not yet been endorsed by the Financial Supervisory Commission (FSC). Their actual effective dates will be subject to FSC regulations. The Company is currently assessing the potential impact of items (1) and (3) to (7) of the newly issued or amended standards and interpretations, and is not yet able to reasonably estimate their effects. The remaining new or amended standards and interpretations are not expected to have a material impact on the Company.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

1. Statement of Compliance

The parent company only financial statements of the Company for the years ended December 31, 2024 and 2023 were prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) approved by the Financial Supervisory Commission (FSC) of the Republic of China.

2. Basis of Preparation

Except for financial instruments measured at fair value, the parent company only financial statements are prepared on a historical cost basis. Unless otherwise stated, the financial statements are presented in thousands of New Taiwan dollars (NT$).

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

3. Foreign Currency Transactions

The Company’s parent company only financial statements are presented in New Taiwan dollars, which is the functional currency of the Company.

Foreign currency transactions are recorded in the functional currency using the exchange rates prevailing at the dates of the transactions. At each reporting date, monetary items denominated in foreign currencies are translated using the closing exchange rates; non-monetary items measured at fair value are translated using the exchange rate at the date when the fair value was determined; non-monetary items measured at historical cost are translated using the exchange rate at the transaction date.

Except for the following circumstances, exchange differences arising from the settlement or translation of monetary items are recognized in profit or loss in the period in which they arise:

• (1) Exchange differences on foreign currency borrowings that are regarded as adjustments to interest costs related to the acquisition of qualifying assets are capitalized as part of the cost of those assets.

• (2) Exchange differences on foreign currency items to which IFRS 9 Financial Instruments applies are accounted for in accordance with the accounting policies for financial instruments.

• (3) Exchange differences on monetary items that form part of the Company’s net investment in a foreign operation are initially recognized in other comprehensive income, and reclassified from equity to profit or loss on the disposal of the net investment.

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

4. Translation of Foreign Currency Financial Statements

In preparing the parent company only financial statements, the assets and liabilities of foreign operations are translated into New Taiwan dollars at the closing exchange rates at the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising from the translation are recognized in other comprehensive income. Upon the disposal of a foreign operation, the cumulative amount of exchange differences previously recognized in other comprehensive income and accumulated in a separate component of equity is reclassified from equity to profit or loss as part of the gain or loss on disposal. For partial disposals involving the loss of control of a subsidiary that includes a foreign operation, or a partial disposal resulting in the loss of significant influence or joint control over an associate or joint arrangement that includes a foreign operation, the retained interest, if classified as a financial asset, is accounted for as a disposal.

For partial disposals of a subsidiary that includes a foreign operation without the loss of control, the proportionate share of the cumulative amount of exchange differences recognized

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SCIVISION BIOTECH INC.

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in other comprehensive income is reattributed to non-controlling interests and not recognized in profit or loss. In the case of partial disposals of an associate or joint arrangement that includes a foreign operation, without losing significant influence or joint control, the proportionate share of the cumulative exchange differences is reclassified to profit or loss.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and are translated at the foreign operation’s functional currency.

5. Classification Criteria for Current and Non-current Assets and Liabilities

An asset is classified as current when it satisfies any of the following conditions. Assets that do not meet any of these criteria are classified as non-current:

• (1) It is expected to be realized, sold, or consumed in the normal operating cycle;

• (2) It is held primarily for the purpose of trading;

• (3) It is expected to be realized within twelve months after the reporting period; or

• (4) It is cash or a cash equivalent, unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

A liability is classified as current when it satisfies any of the following conditions. Liabilities that do not meet any of these criteria are classified as non-current:

• (1) It is expected to be settled in the normal operating cycle;

• (2) It is held primarily for the purpose of trading;

• (3) It is due to be settled within twelve months after the reporting period; or

• (4) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

6. Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. This includes time deposits with original maturities of three months or less.

7. Financial Instruments

The Company recognizes a financial asset or a financial liability when it becomes a party to the contractual provisions of the financial instrument.

Financial assets and financial liabilities that fall within the scope of IFRS 9 Financial Instruments are initially measured at fair value. For financial assets and financial liabilities not classified as at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability are added to or deducted from the fair value at initial recognition.

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

• (1) Recognition and Measurement of Financial Assets

The Company applies trade date accounting to recognize and derecognize regular way purchases or sales of financial assets.

Financial assets are classified, at subsequent measurement, as measured at amortized cost, at fair value through other comprehensive income (FVOCI), or at fair value through profit or loss (FVTPL), based on both:

• A. The entity’s business model for managing the financial assets; and

• B. The contractual cash flow characteristics of the financial asset.

Financial Assets Measured at Amortized Cost

Financial assets are measured at amortized cost if they meet both of the following conditions and are presented in the balance sheet under items such as notes receivable, accounts receivable, financial assets measured at amortized cost, and other receivables:

• A. Business model for managing financial assets: The financial assets are held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

• B. Contractual cash flow characteristics: The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets (excluding those designated in hedge relationships) are subsequently measured at amortized cost. Amortized cost is the amount at which the financial asset is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization of any difference between the initial amount and the maturity amount using the effective interest method, and adjusted for any loss allowance. Gains or losses are recognized in profit or loss when the asset is derecognized, through the amortization process, or when an impairment loss is recognized.

Interest income is recognized in profit or loss using the effective interest method, which is the effective interest rate applied to the gross carrying amount of the financial asset, except for the following cases:

• A. For purchased or originated credit-impaired financial assets, interest income is calculated using the credit-adjusted effective interest rate on the amortized cost of the financial asset;

• B. For financial assets that are not purchased or originated credit-impaired but have subsequently become credit-impaired, interest income is calculated by applying the effective interest rate to the amortized cost of the asset.

Financial Assets Measured at Fair Value Through Other Comprehensive Income (FVOCI)

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Financial assets are measured at fair value through other comprehensive income if they meet both of the following conditions and are presented in the balance sheet as “financial assets measured at fair value through other comprehensive income”:

• A. Business model for managing financial assets: The financial assets are held within a business model whose objective is both to collect contractual cash flows and to sell financial assets; and

• B. Contractual cash flow characteristics: The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The recognition of gains or losses on these financial assets is as follows:

• A. Before derecognition or reclassification, gains or losses (excluding impairment gains or losses and foreign exchange gains or losses, which are recognized in profit or loss) are recognized in other comprehensive income.

• B. Upon derecognition, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

• C. Interest income calculated using the effective interest method (i.e., applying the effective interest rate to the gross carrying amount) is recognized in profit or loss. In the following cases, interest is calculated differently:

• a. For purchased or originated credit-impaired financial assets, interest is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset.

• b. For financial assets that subsequently become credit-impaired, interest is calculated using the effective interest rate applied to the amortized cost.

In addition, for equity instruments within the scope of IFRS 9 that are not held for trading and are not contingent consideration recognized by an acquirer in a business combination under IFRS 3, the Company may, at initial recognition and on an irrevocable basis, elect to present subsequent changes in fair value in other comprehensive income. Amounts recognized in other comprehensive income for these equity instruments shall not be reclassified to profit or loss at any time. Upon disposal, the cumulative gain or loss previously recognized in other comprehensive income is transferred directly to retained earnings under another component of equity. Dividends on such investments are recognized in profit or loss unless they clearly represent a recovery of part of the cost of the investment.

Financial Assets Measured at Fair Value Through Profit or Loss (FVTPL)

Financial assets that do not meet the criteria for measurement at amortized cost or at fair value through other comprehensive income are measured at fair value through profit or loss. These assets are presented in the balance sheet as “financial assets measured at fair value through profit or loss.”

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Such financial assets are measured at fair value, and any remeasurement gains or losses are recognized in profit or loss. This includes any dividend or interest income received from the financial assets.

• (2) Impairment of Financial Assets

The Company recognizes and measures impairment allowances based on expected credit losses (ECLs) for debt investments measured at fair value through other comprehensive income (FVOCI) and financial assets measured at amortized cost. For debt investments measured at FVOCI, the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the investment.

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

• A. An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

• B. The time value of money; and

• C. Reasonable and supportable information available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.

The methods for measuring the loss allowance are as follows:

• A. 12-month expected credit losses: Applied to financial assets for which there has not been a significant increase in credit risk since initial recognition, or which are determined to have low credit risk at the reporting date. This also includes financial assets that were previously measured based on lifetime ECL but no longer meet the criteria for significant increase in credit risk at the reporting date.

• B. Lifetime expected credit losses: Applied to financial assets that have experienced a significant increase in credit risk since initial recognition, or that are purchased or originated credit-impaired financial assets.

• C. For trade receivables or contract assets that fall within the scope of IFRS 15, the Company applies the simplified approach and measures the loss allowance at an amount equal to lifetime expected credit losses.

• D. For lease receivables arising from transactions within the scope of IFRS 16, the Company also applies the simplified approach and measures the loss allowance based on lifetime expected credit losses.

At each reporting date, the Company assesses whether the credit risk of a financial instrument has increased significantly since initial recognition by comparing the risk of default at the reporting date with the risk at the initial recognition date. Additional credit risk-related disclosures are provided in Note 12.

• (3) Derecognition of Financial Assets

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

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

• A. The contractual rights to the cash flows from the financial asset have expired;

• B. The financial asset has been transferred and substantially all the risks and rewards of ownership of the asset have been transferred;

• C. The financial asset has been transferred, neither substantially all risks and rewards of ownership have been transferred nor retained, but control of the asset has been transferred.

When a financial asset is derecognized in its entirety, the difference between the carrying amount of the asset and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss previously recognized in other comprehensive income is recognized in profit or loss.

• (4) Financial Liabilities and Equity Instruments

Classification of Liabilities and Equity

The Company classifies its issued financial instruments as either financial liabilities or equity instruments in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of directly attributable transaction costs.

Compound Instruments

For convertible bonds issued by the Company, the liability and equity components are separately recognized in accordance with the terms of the contracts. In addition, before separating the equity component, the Company assesses whether any embedded call or put options are closely related to the host debt instrument in terms of economic characteristics and risks.

The liability component, excluding any embedded derivatives, is measured at fair value based on market interest rates for similar non-convertible instruments. This portion is subsequently measured at amortized cost until conversion or redemption. Embedded derivatives that are not closely related to the host debt instrument—such as put or call

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

options whose exercise prices are not approximately equal to the amortized cost of the debt at each exercise date—are, unless classified as part of the equity component, recognized as part of the liability component and measured at fair value through profit or loss in subsequent periods. The equity component is determined as the difference between the fair value of the compound instrument as a whole and the fair value of the liability component at initial recognition, and is not remeasured subsequently. If the convertible bonds do not contain any equity component, they are accounted for as hybrid instruments in accordance with IFRS 9.

Transaction costs are allocated to the liability and equity components in proportion to the allocation of proceeds at initial recognition.

When holders of the convertible bonds exercise their conversion rights prior to maturity, the carrying amount of the liability component is adjusted to its value at the date of conversion, which serves as the basis for recognizing the issuance of ordinary shares.

Financial Liabilities

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

Financial Liabilities at Fair Value Through Profit or Loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those designated as such upon initial recognition.

A financial liability is classified as held for trading if it meets any of the following conditions:

• A. It is acquired principally for the purpose of repurchasing it in the near term;

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

• C. It is a derivative, except for a financial guarantee contract or a derivative that is designated and effective as a hedging instrument.

For contracts that contain one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at FVTPL, provided it results in more relevant information and one of the following conditions is met at initial recognition:

• A. The designation eliminates or significantly reduces a measurement or recognition

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SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

inconsistency; or

• B. The financial liabilities or a group of financial assets and liabilities are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. Information about the portfolio is reported to key management personnel on this basis.

Gains or losses arising from the remeasurement of such financial liabilities are recognized in profit or loss. This includes any interest paid on the financial liability.

Financial Liabilities Measured at Amortized Cost

Financial liabilities measured at amortized cost, such as accounts payable and borrowings, are subsequently measured using the effective interest method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized or through the amortization process.

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

Derecognition of Financial Liabilities

A financial liability is derecognized when the obligation specified in the contract is discharged, canceled, or expires.

If an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not due to financial difficulties), such an exchange or modification is accounted for as a derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the original financial liability and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

• (5) Offsetting of Financial Assets and Financial Liabilities

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet only when the Company has a legally enforceable right to offset the recognized amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

8. Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in

24

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place in either:

(1) The principal market for the asset or liability; or

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

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

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

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

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

9. Inventories

Inventories are measured at the lower of cost and net realizable value on an item-by-item basis.

Cost is determined as the cost incurred to bring the inventories to their present location and condition, as follows:

Raw materials: Actual purchase cost.

Work-in-process and finished goods: Includes the cost of direct materials, direct labor, and an allocation of fixed manufacturing overheads based on normal production capacity, but excludes borrowing costs.

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

1. Investments Accounted for Using the Equity Method

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SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

The Company accounts for its investments in subsidiaries and associates using the equity method, except for those classified as non-current assets held for sale.

(1) Investments in Subsidiaries

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost, and its carrying amount is adjusted thereafter to recognize the Company's share of the subsidiary’s profit or loss and other comprehensive income. The Company’s share of the subsidiary’s profit or loss and other comprehensive income is recognized in the Company’s profit or loss and other comprehensive income, respectively. Distributions received from the subsidiary reduce the carrying amount of the investment.

Unrealized gains and losses resulting from upstream transactions between the Company and its subsidiaries are eliminated in the parent company only financial statements. In the case of downstream or lateral transactions, only the portion unrelated to the Company’s ownership interest in the subsidiary is recognized in the parent company only financial statements.

The financial statements of subsidiaries are prepared for the same reporting period as that of the Company, and adjustments are made where necessary to align the subsidiaries’ accounting policies with those of the Company.

Changes in a subsidiary’s equity that are not attributable to profit or loss or other comprehensive income, and do not affect the Company’s ownership interest, are recognized by the Company in proportion to its ownership share. Changes in ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The difference between the consideration paid or received and the adjustment to the carrying amount of the investment is recognized directly in equity.

When the Company loses control of a subsidiary, it discontinues the use of the equity method. The retained investment is measured at fair value, and the difference between the carrying amount of the subsidiary and the sum of the consideration received plus the fair value of the retained investment is recognized in profit or loss. If the subsidiary becomes a joint venture or a joint venture becomes a subsidiary, the Company continues to apply the equity method and does not remeasure the previously held interest.

At the end of each reporting period, the Company assesses whether there is any objective evidence indicating that an investment in a subsidiary is impaired. The impairment loss is measured as the difference between the recoverable amount of the subsidiary and its

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

carrying amount, and is recognized in the statement of comprehensive income, with the carrying amount adjusted accordingly.

• (2) Investments in Associates

An associate is an entity over which the Company has significant influence and that is not a subsidiary. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Any difference between the cost of investment and the Company’s share of the fair value of the identifiable net assets of the associate at the acquisition date is accounted for as follows:

• A. The excess of the cost of the investment over the Company’s share of the fair value of the identifiable net assets of the associate at the acquisition date is recognized as goodwill and included in the carrying amount of the investment. Goodwill is not amortized.

• B. If the Company’s share of the net fair value of the identifiable assets and liabilities of the associate exceeds the cost of the investment, the excess is reassessed, and any remaining excess after reassessment is recognized as income on the acquisition date.

Under the equity method, an investment in an associate is initially recognized at cost. After the acquisition date, the carrying amount of the investment is adjusted to reflect the Company’s share of the profit or loss and other comprehensive income of the associate. The Company’s share of profit or loss and other comprehensive income of the associate is recognized in the Company’s profit or loss and other comprehensive income, respectively. Distributions received from the associate reduce the carrying amount of the investment. When there are changes in the associate’s other comprehensive income, the Company adjusts the carrying amount of its investment to reflect its proportionate share. Unrealized gains and losses arising from transactions with associates are eliminated to the extent of the Company’s interest in the associate.

The associate’s financial statements are prepared for the same reporting period as that of the Company, and adjustments are made where necessary to align the associate’s accounting policies with those of the Company.

If the Company does not subscribe to new shares issued by an associate in proportion to its existing ownership and such action results in an increase in the Company’s ownership while maintaining significant influence, it is accounted for as an additional investment in the associate. If the Company’s ownership decreases due to non-proportional subscription and significant influence is retained, the proportionate share of previously recognized gains or losses in other comprehensive income is reclassified to profit or loss. Any increase or decrease in the associate’s equity as a result of changes in ownership that

27

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

do not affect the Company’s significant influence is adjusted to capital surplus. When changes in the associate’s equity do not arise from profit or loss or other comprehensive income and do not affect the Company’s ownership percentage, the Company recognizes such changes in equity in proportion to its ownership interest. The amount recognized in capital surplus is reclassified to profit or loss upon disposal of the associate, in proportion to the disposal.

When the Company loses significant influence over an associate, it ceases to apply the equity method. The retained investment is measured at fair value, and the difference between the carrying amount of the associate and the sum of the consideration received and the fair value of the retained investment is recognized in profit or loss. If an associate becomes a joint venture, or a joint venture becomes an associate, the Company continues to account for the investment using the equity method without remeasuring the previously held interest.

At the end of each reporting period, the Company assesses whether there is any objective evidence that an investment in an associate is impaired. Any difference between the recoverable amount of the associate and its carrying amount is recognized as an impairment loss in the statement of comprehensive income, with the carrying amount adjusted accordingly.

11. Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. The cost includes expenditures that are directly attributable to the acquisition of the asset, as well as the estimated costs of dismantling and removing the asset and restoring the site on which it is located, and any necessary interest incurred during the construction period. Each significant part of an item of property, plant and equipment is depreciated separately if it has a different useful life. When a significant component of property, plant and equipment requires regular replacement, the Company accounts for such a part as a separate asset and depreciates it over its specific useful life and depreciation method. The carrying amount of the replaced part is derecognized in accordance with IAS 16 Property, Plant and Equipment. If the cost of major inspections or overhauls meets the recognition criteria, it is recognized as part of the carrying amount of the asset as a replacement cost. Other repair and maintenance costs are recognized in profit or loss as incurred.

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

3 to 55 years

Buildings

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NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

SCIVISION BIOTECH INC.

Machinery and testing equipment	2 to 55 years
Transportation equipment	3 to 6 years
Office equipment	3 to 10 years
Right-of-use assets	10 to 47 years
Other equipment	5 to 10 years

An item of property, plant and equipment or any significant part thereof is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The resulting gain or loss is recognized in profit or loss.

The residual values, useful lives, and depreciation methods of property, plant and equipment are reviewed at the end of each financial year. Any changes in estimates are accounted for as changes in accounting estimates.

12. Leases

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

(1) The right to obtain substantially all of the economic benefits from the use of the identified asset; and

(2) The right to direct the use of the identified asset.

For contracts that are, or contain, leases, the Company accounts for each lease component within the contract as a separate lease and separates it from non-lease components. If a contract contains a lease component and one or more additional lease or non-lease components, the consideration in the contract is allocated to each lease component based on the relative stand-alone prices of the lease components and the aggregate stand-alone price of the non-lease components. The relative stand-alone prices of lease and non-lease components are determined based on the prices that the lessor (or a similar supplier) would charge separately for each component or for similar components. If observable stand-alone prices are not readily available, the Company maximizes the use of observable information to estimate the stand-alone prices.

The Company as Lessee

Except for leases that qualify for and are elected as short-term leases or leases of low-value assets, when the Company is the lessee under a lease contract, it recognizes a right-of-use asset and a lease liability for all leases.

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SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. If the interest rate implicit in the lease is readily determinable, the lease payments are discounted using that rate. If not readily determinable, the Company uses its incremental borrowing rate. The lease payments included in the measurement of the lease liability at the commencement date comprise the following:

• (1) Fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• (2) Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• (3) Amounts expected to be payable under residual value guarantees;

• (4) The exercise price of a purchase option if the Company is reasonably certain to exercise that option; and

• (5) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the lease liability is measured at amortized cost using the effective interest method. Interest on the lease liability is recognized to increase the liability, and lease payments made reduce the lease liability.

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

• (1) The amount of the initial measurement of the lease liability;

• (2) Any lease payments made at or before the commencement date, less any lease incentives received;

• (3) Any initial direct costs incurred by the lessee; and

• (4) An estimate of the costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located, or restoring the underlying asset to the condition required by the terms and conditions of the lease.

Subsequently, the right-of-use asset is measured at cost less accumulated depreciation and accumulated impairment losses, applying the cost model.

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

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

Except for leases that qualify for and are elected as short-term leases or leases of low-value

30

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

assets, the Company presents right-of-use assets and lease liabilities separately in the balance sheet, and presents depreciation expenses and interest expenses on leases separately in the statement of comprehensive income.

For short-term leases and leases of low-value assets, the Company elects to recognize the lease payments as expenses on a straight-line basis or another systematic basis over the lease term.

The Company as Lessor

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

For contracts that contain both lease and non-lease components, the Company allocates the consideration in the contract in accordance with IFRS 15.

The Company recognizes lease payments from operating leases as rental income on a straight-line basis or another systematic basis. Variable lease payments from operating leases that do not depend on an index or a rate are recognized as rental income in the period in which they are earned.

13. Intangible Assets

Intangible assets acquired separately are initially measured at cost. After initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Internally generated intangible assets that do not meet the recognition criteria are not capitalized and are recognized as expenses when incurred.

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

Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives and are tested for impairment whenever there is an indication of impairment. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each financial year. If the expected useful life of the asset or the pattern in which future economic benefits are expected to be consumed differs from previous estimates, the amortization method or period is adjusted accordingly and treated as a change in accounting estimate.

Intangible assets with indefinite useful lives are not amortized but are tested for impairment annually, either individually or at the cash-generating unit level. These assets are also reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment. If such assessment changes, the change is accounted for

31

SCIVISION BIOTECH INC.

• NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

prospectively.

Gains or losses arising from derecognition of intangible assets are recognized in profit or loss.

– Intangible Assets in Development Research and Development Costs

Research costs are recognized as expenses when incurred. Development expenditures on an individual project are recognized as intangible assets if all of the following conditions are met:

• (1) Technical feasibility of completing the intangible asset so that it will be available for use or sale;

• (2) Intention to complete the intangible asset and ability to use or sell it;

• (3) The asset is expected to generate probable future economic benefits;

• (4) Availability of adequate technical, financial, and other resources to complete the development and to use or sell the asset; and

• (5) Expenditures attributable to the development phase can be reliably measured.

Capitalized development expenditures are measured using the cost model, i.e., at cost less accumulated amortization and accumulated impairment losses. During the development phase, the asset is tested for impairment annually. Once development is complete and the asset is available for use, it is amortized over the period in which the asset is expected to generate future economic benefits.

14. Impairment of Non-Financial Assets

At the end of each reporting period, the Company assesses whether there is any indication that assets within the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing is required for a particular asset, the Company estimates the recoverable amount of the asset either on an individual basis or at the level of the cash-generating unit (CGU) to which the asset belongs. An impairment loss is recognized if the carrying amount of the asset or the CGU exceeds its recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use.

For assets other than goodwill, the Company assesses at the end of each reporting period whether there is any indication that an impairment loss previously recognized may no longer exist or may have decreased. If any such indication exists, the Company estimates the recoverable amount of the asset or the CGU. If the recoverable amount increases due to a change in the estimate of the asset’s service potential, the reversal of the impairment loss is recognized. However, the carrying amount after the reversal shall not exceed the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized.

The CGU or group of CGUs to which goodwill has been allocated is tested for impairment annually, regardless of whether there is any indication of impairment. If the impairment test indicates that the CGU’s carrying amount exceeds its recoverable amount, an impairment loss is recognized. The impairment loss is first allocated to reduce the carrying amount of goodwill,

32

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

and any remaining loss is then allocated to the other assets of the CGU on a pro rata basis according to their carrying amounts. Once recognized, an impairment loss for goodwill shall not be reversed in any subsequent period.

Impairment losses and reversals relating to continuing operations are recognized in profit or loss.

15. Provisions

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. If the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset only when the reimbursement is virtually certain. Where the effect of the time value of money is material, provisions are measured at the present value of the expected expenditures required to settle the obligation, using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as a borrowing cost.

Where an obligation is incurred over a period of time, a provision for levies is recognized progressively over that period.

Provisions for Decommissioning, Restoration, and Rehabilitation Costs

Provisions for the decommissioning and removal of property, plant and equipment and the restoration of the site on which they are located are measured at the present value of the estimated future cash flows expected to be incurred in settling the obligation, and are recognized as part of the cost of the related asset. The cash flows are discounted using a pretax rate that reflects current market assessments of the time value of money and the risks specific to the decommissioning obligation. The unwinding of the discount is recognized as a borrowing cost when incurred. Estimated future decommissioning costs are reviewed and adjusted appropriately at the end of each reporting period. Changes in the estimated future costs or in the discount rate are recognized as an adjustment to the cost of the related asset.

16. Revenue Recognition

Revenue from contracts with customers primarily arises from the sale of goods. The Company’s accounting treatment is described as follows:

Sale of Goods

The Company manufactures and sells goods. Revenue is recognized when the promised goods are delivered to the customer and the customer obtains control of the goods (i.e., the customer has the ability to direct the use of the goods and obtain substantially all the remaining benefits from them). The main products include high-end hyaluronic acid medical devices. Revenue is recognized based on the price specified in the contract.

33

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

The credit terms for the sale of goods typically range from 30 to 90 days. A contract asset is reclassified as accounts receivable when control of the goods has been transferred and the right to receive consideration becomes unconditional. These accounts receivable are shortterm in nature and do not contain a significant financing component.

In certain contracts, the Company receives part of the consideration from the customer at contract inception. Since the Company has an obligation to subsequently deliver goods, a contract liability is recognized. Such contract liabilities are typically recognized as revenue within one year and do not give rise to a significant financing component.

Rendering of Services

The Company also provides service revenue primarily related to product development services for its manufactured high-end hyaluronic acid medical devices. These services are separately priced or contractually negotiated and are provided over the term of the contract. Since the Company provides development services throughout the contract period and payment is based on milestones that represent transfer of benefits to the customer upon achievement, the customer obtains control of the service output at specific points in time. Therefore, the related performance obligations are satisfied at a point in time, and revenue is recognized when the service is completed. Revenue is recognized based on the contractually agreed price. The accumulated amount of recognized revenue is highly unlikely to be subject to significant reversal.

For most service contracts, the Company collects the contract consideration evenly over the service period after the service has been provided. If the Company has transferred the service to the customer but does not yet have an unconditional right to payment, a contract asset is recognized. In other cases, where partial consideration is received from the customer at contract inception and the Company has an obligation to render services in the future, a contract liability is recognized.

17. Post-employment Benefit Plans

The Company’s employee retirement policy applies to all formally employed personnel. Contributions to the employee pension fund are fully deposited into a dedicated pension fund account managed by the Supervisory Committee of Business Entities' Labor Retirement Reserve. As the pension assets are deposited under the name of the Supervisory Committee and are completely separate from the Company, they are not included in the parent company only financial statements.

For post-employment benefit plans classified as defined contribution plans, the Company contributes an amount not less than 6% of each employee’s monthly wages to the pension fund. These contributions are recognized as expenses in the period in which the related services are rendered.

For post-employment benefit plans classified as defined benefit plans, the Company

34

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

recognizes obligations based on actuarial valuations using the projected unit credit method as of the end of the reporting period. Remeasurements of the net defined benefit liability (asset), including the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset), changes in the effect of the asset ceiling (excluding amounts included in net interest), and actuarial gains and losses, are recognized in other comprehensive income in the period in which they occur and are immediately transferred to retained earnings. Past service cost, which arises from plan amendments or curtailments, is recognized as an expense at the earlier of:

• (1) The date when the plan amendment or curtailment occurs; or

• (2) The date when the Company recognizes related restructuring costs or termination benefits.

Net interest on the net defined benefit liability (asset) is calculated by applying the discount rate to the net defined benefit liability (asset) at the beginning of the reporting period, taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments.

18. Income Tax

Income tax expense (benefit) represents the total amount of current tax and deferred tax relating to profit or loss for the period.

Current Income Tax

Current income tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (or recovered from) the taxation authorities, using the tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is also recognized in other comprehensive income or equity rather than in profit or loss.

The additional income tax on undistributed earnings is recognized as income tax expense on the date the distribution of earnings is approved by the shareholders’ meeting.

Deferred Income Tax

Deferred income tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements at the end of the reporting period.

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

• (1) Where the deferred tax liability arises from the initial recognition of goodwill or from the initial recognition of an asset or liability in a transaction that is not a business combination

35

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

and, at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss); and

• (2) In respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

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

• (1) When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss); and

• (2) In respect of deductible temporary differences associated with investments in subsidiaries, associates, and joint ventures, deferred tax assets are recognized only to the extent that it is probable the temporary differences will reverse in the foreseeable future and taxable profit will be available to utilize those temporary differences.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items not recognized in profit or loss is also not recognized in profit or loss but in other comprehensive income or directly in equity, consistent with the recognition of the related transaction. Deferred tax assets are reviewed at the end of each reporting period and adjusted accordingly.

Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

In accordance with the temporary exception under the “International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12),” deferred tax assets and liabilities related to Pillar Two income taxes shall not be recognized, and related information shall not be disclosed.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

In preparing the parent company only financial statements, management is required to make judgments, estimates, and assumptions at the end of the reporting period that affect the reported amounts of revenues, expenses, assets, liabilities, and disclosures of contingent liabilities.

36

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amounts of assets or liabilities in future periods.

The key assumptions concerning the future and other sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: 1. Accounts Receivable – Estimation of Impairment Losses

The Company measures impairment losses on accounts receivable based on expected credit losses over the life of the asset. This involves the difference between the contractual cash flows (carrying amount) and the expected cash flows (considering forward-looking information), discounted to present value. However, for short-term receivables, the impact of discounting is insignificant, and impairment losses are measured based on the undiscounted difference.

2. Inventories

The estimated net realizable value of inventories considers circumstances such as damage, full or partial obsolescence, or declines in selling prices. It is based on the most reliable evidence available at the time of estimation regarding the amount expected to be realized from the inventories. Please refer to Note 6.6 for further details.

3. Post-employment Benefit Plans

The cost of post-employment benefits and the present value of defined benefit obligations are determined using actuarial valuations. These valuations involve various assumptions such as the discount rate and expected changes in salaries. For detailed information on the assumptions used in measuring pension costs and obligations, please refer to Note 6.12.

4. Income Taxes

Uncertainty exists in the interpretation of complex tax laws, as well as in the amount and timing of future taxable income. Due to extensive international business operations and the long-term and complex nature of contractual arrangements, differences between actual outcomes and assumptions, or changes in assumptions in future periods, may result in adjustments to previously recognized tax benefits and expenses. Provisions for income taxes are based on reasonable estimates of the outcome of tax audits by the tax authorities in the jurisdictions where the Company operates.

Deferred tax assets relating to unused tax losses, tax credits carried forward, and deductible temporary differences are recognized to the extent that it is probable that future taxable income or taxable temporary differences will be available to utilize them. The amount of deferred tax assets that can be recognized is based on estimates regarding the timing and amount of future taxable income and the implementation of tax planning strategies. As of December 31, 2024,

37

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

information on the Company’s unrecognized deferred tax assets is disclosed in Note 6.19.

6. DESCRIPTION OF SIGNIFICANT ACCOUNTING ITEMS

1. Cash and Cash Equivalents

Cash and Cash Equivalents
Cash on hand and petty cash Bank deposits Total	December 31, 2024 $ 314 654,886 $ 655,200	December 31, 2023
		$ 429 504,859
		$ 505,288

1. Financial Assets at Fair Value Through Profit or Loss – Current

Mandatorily measured at fair value through profit or loss: Derivative instruments not designated as hedging instruments －Beneficiary certificates －Corporate bonds Total	December31,2024 $ 13,903 51,601 $ 65,504	December31,2023
		$ 10,797 48,258
		$ 59,055

The Company has not pledged any financial assets measured at fair value through profit or loss as collateral.

1. Financial Assets Measured at Amortized Cost – Current

Time deposits – current	December 31, 2024 $ 99,900	December 31, 2023
		$ 233,900

The Company has not pledged any financial assets measured at amortized cost as collateral.

1. Notes Receivable, Net

Notes Receivable, Net
Notes receivable, net		December 31, 2024 December 31, 2023
		$8,400 $4,200

The Company has not pledged any notes receivable as collateral.

1. Accounts Receivable, Net

Accounts Receivable, Net
Accounts receivable Less: Allowance for impairment loss Subtotal Accounts receivable – related parties Total	December 31,2024 $ 163,272 － 163,272 7,752 $171,024	December 31,2023
		$ 90,355 －
		90,355 －
		$90,355

• (1) The Company typically grants customers credit terms ranging from 30 to 90 days from the end of the month. As of December 31, 2024 and 2023, the total carrying amounts were

38

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

NT$171,024 thousand and NT$90,355 thousand, respectively.

• (2) An aging analysis of accounts receivable, net, past due is as follows:

December 31, 2024

December 31, 2024
Total carrying amount Loss rate Lifetime expected credit loss Subtotal December 31, 2023 Total carrying amount Loss rate Lifetime expected credit loss Subtotal	Not Past Due	Days Past Due	Total $ 171,024 － $171,024 Total $ 90,355 － $90,355
		Within 30 Days
	$ 171,024 0%	$－ 0%
	－	－
	$171,024	$ －
	Not Past Due	Days Past Due
		Within 30 Days
	$ 90,355 0%	$－ 0%
	－	－
	$90,355	$ －

• (3) The Company has not pledged any accounts receivable as collateral.

• Inventories, Net

Raw materials and supplies Work in process Finished goods and semi- finished goods Total	December 31,2024 $ 43,346 13,568 9,772 $ 66,686	December 31,2023 $ 57,112 14,338 15,802 $ 87,252

Inventory-related expenses recognized during the period: 2024 Cost of goods sold $ 221,257 Inventory write-down (reversal of write- down) 341 Cost of sales $221,598	2023
	$ 200,536 (42)
	$200,494

The Company recognized an inventory write-down of NT$341 thousand in 2024 due to inventories being written down to net realizable value. In 2023, a reversal of inventory writedown of NT$42 thousand was recognized as a result of the recovery in prices of certain inventories for which allowance had been made at the beginning of the year, or due to the sale or use of such inventories.

The above inventories were not pledged as collateral.

39

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

7. Investments Accounted for Using the Equity Method

Name of Investee Subsidiaries: UNI-PROFIT INDUSTRIAL LIMITED Chengze Medical Instruments (Shanghai) Co., Ltd. TALENT CRO Inc. CANDACE BIOMEDICAL INC. (Note 1) Total	December 31,2024	December 31,2023 Amount % of Ownership $ 1,128 100.00% 1,533 100.00% 1,702 100.00% － － $4,363
	Amount % of Ownership $ 1,198 100.00% 1,747 100.00% 2,235 100.00% 40,764 100.00% $45,944
		$4,363

Note 1: On July 10, 2024, the Company established CANDACE BIOMEDICAL INC. through investment and acquired 100% of its equity.

The investments accounted for using the equity method were not pledged as collateral.

The Company’s shares of the profit or loss of subsidiaries accounted for using the equity method for the years 2024 and 2023 are as follows:

Name of Investee UNI-PROFIT INDUSTRIAL LIMITED (UNI-PROFIT) Chengze Medical Instruments (Shanghai) Co., Ltd. TALENT CRO Inc. CANDACE BIOMEDICAL INC. Total	2024 $ 70 162 (410) 1,809 $1,631	2023
		$ (44) 173 (2,579) －
		$ (2,450)

40

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

8. Property, Plant and Equipment

Property, Plant and Equipment
Property, plant and equipment used by the Company	December 31, 2024 $1,083,737	December 31, 2023
		$1,112,377

(1) Property, plant and equipment used by the Company

Cost Land Buildings Machinery and testing equipment Other equipment Total Accumulated depreciation and impairment Buildings Machinery and testing equipment Other equipment Total Construction in progress and equipment pending inspection Net carrying amount	January1,2024	Additions	Disposals	Others(Note)	Reclassification	December 31, 2024
	$ 4,731 686,586 863,650 45,619	$－ 1,129 12,596 2,666	$－ － (430) (1,379)	$－ － － －	$ － － 2,984 －	$ 4,731 687,715 878,800 46,906
	$1,600,586	$16,391	$ (1,809)	$ －	$ 2,984	$ 1,618,152
	$ 158,095 302,244 31,373	$ 11,138 47,586 2,776	$ － (430) (1,379)	$ － － －	$ － － －	$ 169,233 349,400 32,770
	$491,712	$ 61,500	$ (1,809)	$ －	$ －	$551,403
	3,503	16,527	(58)	－	(2,984)	16,988
	$1,112,377					$ 1,083,737

41

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Cost Land Buildings Machinery and testing equipment Other equipment Total Accumulated depreciation and impairment Buildings Machinery and testing equipment Other equipment Total Construction in progress and equipment pending inspection Net carrying amount	January1,2023	Additions	Disposals	Others(Note)	Reclassification	December 31, 2023
	$ 4,731 686,318 856,340 39,993	$－ 268 6,492 5,686	$－ － － (2,005)	$－ － － －	$ － － 818 1,945	$ 4,731 686,586 863,650 45,619
	$1,587,382	$12,446	$ (2,005)	$ －	$ 2,763	$ 1,600,586
	$ 146,800 254,833 30,174	$ 11,295 47,411 2,490	$ － － (1,291)	$ － － －	$ － － －	$ 158,095 302,244 31,373
	$431,807	$ 61,196	$ (1,291)	$ －	$ －	$ 491,712
	4,619	1,710	(63)	－	(2,763)	3,503
	$1,160,194					$ 1,112,377

Note: Refers to the retirement, restoration, and repair costs of leasehold improvements.

For information on property, plant and equipment pledged as collateral, please refer to Note 8.

42

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

9. Intangible Assets

Intangible Assets
Computer software costs Trademark and patent rights Total Cost Computer software costs Trademark and patent rights Total Accumulated depreciation and impairment Computer software costs Trademark and patent rights Total Net carrying amount Cost Computer software costs Trademark and patent rights Total Accumulated depreciation and impairment Computer software costs Trademark and patent rights Total Net carrying amount		December 31,2024		December 31,2023 $－ 2,032 $2,032 Disposals December 31, 2024 $－ $ 2,249 － 9,029 $ － $11,278 $－ $ 2,249 － 7,381 $ － 9,630 $1,648 Disposals December 31, 2023 $－ $ 2,249 － 8,912 $ － $11,161 $－ $ 2,249 － 6,880 $ － 9,129 $2,032	December 31,2023
		$	－ 1,648		$	－ 2,032
		$	1,648		$	2,032
		January 1, 2024	Additions			December 31, 2024 $ 2,249 9,029 $11,278 $ 2,249 7,381 9,630 $1,648 December 31, 2023 $ 2,249 8,912 $11,161 $ 2,249 6,880 9,129 $2,032
	$ 2,249 8,912		$－ 117	$－ －
	$11,161		$117	$ －
	$ 2,249 6,880		$－ 501	$－ －
	9,129		$501	$ －
	$2,032		Additions	Disposals
	January 1, 2023
	$ 2,249 8,912		$－ －	$－ －
	$11,161		$ －	$ －
	$ 2,249 6,337		$－ 543	$－ －
	8,586		$543	$ －
	$2,575

The Company has not pledged any intangible assets as collateral.

43

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. Corporate Bonds Payable

Corporate Bonds Payable
Domestic unsecured convertible bonds payable Less: Current portion Net carrying amount	December 31, 2024	December 31, 2023 $ 323,843 － $ 323,843
	$ 134,785 (134,785)
	$－

Domestic unsecured convertible bonds payable Liability component: Face value of domestic unsecured convertible bonds payable Discount on domestic unsecured convertible bonds payable Subtotal Less: Current portion Net carrying amount Embedded derivative financial instruments Equity component	December 31, 2024	December 31, 2023 $ 326,100 (2,257) $ 323,843 － $ 323,843 $－ $ 8,306
	$ 132,900 1,885
	$ 134,785
	(134,785)
	$－
	$－
	$ 3,385

On October 3, 2022, the Company issued domestic unsecured convertible bonds with a zero percent coupon rate. Based on the analysis of the contract terms, the convertible bonds consist of a debt component and an equity component (the holder’s option to convert the bonds into the Company’s common shares). The main issuance terms are as follows:

Total issuance amount: NT$400,000 thousand

Issuance period: From October 3, 2022 to October 3, 2025

Conversion terms:

• A. Conversion target: Common shares of the Company

• B. Conversion period: Bondholders may request conversion into the Company’s common shares, in lieu of cash repayment, from January 4, 2023 to October 3, 2025

• C. Conversion price and adjustment: The conversion price was initially set at NT$48.25 per share. In the event of any adjustment event as stipulated in the terms of issuance, the conversion price shall be adjusted in accordance with the prescribed formula. The conversion price as of December 31, 2024 was NT$46.29 per share.

44

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

As of December 31, 2024, the amount converted was NT$267,100 thousand.

11. Other Payables

Commissions payable Compensation to employees and directors Salaries payable Others Total	December 31, 2024	December 31, 2023
	$ 82,887 32,576 18,203 25,209	$ 61,173 23,332 16,640 18,154
	$ 158,875	$ 119,299

12. Post-employment Benefit Plans

(1) Defined Contribution Plans

For the years 2024 and 2023, the amounts recognized by the Company as expenses under defined contribution plans were NT$3,520 thousand and NT$3,376 thousand, respectively.

(2) Defined Benefit Plans

The amounts recognized as expenses under the defined benefit plans were as follows:

Item	2024	2023
Operating costs Selling expenses Administrative expenses Research and development expenses Total	$ 226 54 1,245 95	$ 223 49 1,362 98
	$1,620	$1,732

• (3) The cumulative amounts of actuarial gains or losses recognized in other comprehensive income were as follows:

Beginning balance Actuarial gain (loss) for the year Ending balance	2024	2023
	$ 16,092 (4,722)	$ 16,702 (610)
	$ 11,370	$ 16,092

45

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

• (4) Reconciliation of the present value of defined benefit obligations and the fair value of plan assets:

Present value of defined benefit obligations Fair value of plan assets Contribution status Net defined benefit liability	2024	2023 $ 53,884 (34,966) 18,918 $ 18,918
	$ 52,465 (44,325)
	8,140
	$ 8,140

• (5) Changes in the present value of defined benefit obligations:

Opening balance Current service cost Actuarial gains or losses Ending balance	2024 $ 53,884 2,082 (3,501) $ 52,465	2023 $ 52,423 2,144 (683) $ 53,884

• (6) Changes in the fair value of plan assets:

Opening fair value of plan assets Return on plan assets Actuarial gains or losses Employer contributions Closing fair value of plan assets	2024	2023
	$ 34,966 462 1,221 7,676	$ 26,954 412 (73) 7,673
	$44,325	$34,966

• (7)As of December 31, 2024, the Company expects to contribute NT$7,655 thousand to the defined benefit plan within the next twelve months.

• (8) The composition of the Company’s plan assets as a percentage of total fair value is as follows:

Cash Others	Pension Plan(%)	Pension Plan(%)
	December 31, 2024	December 31, 2023
	40％ 60％	45％ 55％

The actual returns on plan assets for the years 2024 and 2023 were NT$1,683 thousand

46

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

and NT$339 thousand, respectively.

The expected rate of return on plan assets is estimated based on historical return trends, analyst forecasts of market performance over the period of the defined benefit obligation, and reference to the management and performance of the labor retirement fund by the Supervisory Committee of Business Entities' Labor Retirement Reserve, as well as considering a minimum return not lower than the two-year time deposit interest rate offered by local banks.

• (9) The following principal assumptions were used in determining the Company’s defined benefit plan:

Discount rate Expected salary increase rate	December 31, 2024	December 31, 2023
	1.65％ 3.00％	1.20％ 3.00％

• (10) A 0.25% increase or decrease in the discount rate would have the following impact:

2024 Increase by 0.25% Decrease by 0.25% Present value of defined benefit obligation $ (1,068) $ 1,103	2024	2023	2023
	Increase by 0.25% Decrease by 0.25%	Increase by 0.25%	Decrease by 0.25%

• (11) The amounts related to the defined benefit plan for the years 2024 and 2023 are as follows:

Present value of defined benefit obligation at year-end Fair value of plan assets at year-end Surplus (deficit) of the plan at year-end Experience adjustment on defined benefit obligation Experience adjustment on plan assets	2024	2023
	$ 52,465 (44,325)	$ 53,884 (34,966)
	$ 8,140	$ 18,918
	$ (1,490) $ 1,221	$ (1,434) $ (73)

47

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

13. Provisions

January 1, 2024 Changes due to discount rate and accretion of discount December 31, 2024 Current－December 31, 2024 Non-current－December 31, 2024 January 1, 2023 Changes due to discount rate and accretion of discount December 31, 2023 Current – December 31, 2023 Non-current – December 31, 2023	Decommissioning, Restoration and Dismantling Costs
	$ 21,025 121
	$ 21,146
	$ － $ 21,146 Decommissioning, Restoration and Dismantling Costs
	$ 20,904 121
	$ 21,025
	$ － $ 21,025

Decommissioning, Restoration and Dismantling Costs

The provision for decommissioning, restoration, and dismantling costs was recognized in accordance with the terms of the land lease agreement between the Company and the Kaohsiung Export Processing Zone Administration. The Company is required to restore the leased site to its original condition at the end of the lease term, as estimated based on the agreement.

14. Equity

(1) Capital Stock

• A.As of December 31, 2024 and 2023, the Company’s authorized capital was NT$1,000,000 thousand, consisting of 100,000 thousand shares with a par value of NT$10 per share.

• B. As of December 31, 2024 and 2023, the Company’s issued capital was NT$717,920 thousand and NT$677,099 thousand, consisting of 71,792 thousand and 67,710 thousand shares with a par value of NT$10 per share, respectively.

• C. In 2024, holders of the Company’s convertible bonds exercised conversion rights, resulting in the issuance of 4,124 thousand common shares with a par value of NT$10 each. As of December 31, 2024, NT$627 thousand of these shares were not yet registered and were recorded under “bond conversion entitlement certificates.”

48

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

(2) Capital Surplus

Capital Surplus
Share premium Expired employee stock options Treasury share transactions Equity component arising from the issuance of convertible bonds – stock option rights Transferred from exercised conversion rights Total	December 31, 2024	December 31, 2023
	$ 821,631 13,325 5,570 3,385 170	$ 673,138 13,325 5,570 8,306 －
	$844,081	$700,339

In accordance with applicable laws, capital surplus can only be used to offset losses. When there is no accumulated deficit, the excess of the issuance price over the par value of shares and donations received may be capitalized annually up to a prescribed percentage of paidin capital, or distributed in cash to shareholders in proportion to their shareholding.

• (3) Earnings Distribution and Dividend Policy

According to the Company’s Articles of Incorporation, earnings for the fiscal year shall be distributed in the following order:

1. Payment of taxes.

2. Offsetting of prior years’ losses.

3. Appropriation of 10% of the current net income as legal reserve. However, this requirement may be waived once the accumulated legal reserve equals the total paid-in capital.

4. Appropriation or reversal of special reserves in accordance with applicable laws and regulations or directives of the securities authority.

5. Any remaining balance shall be allocated by the Board of Directors in the form of earnings distribution. If the distribution is in the form of new shares, it shall be resolved by the shareholders’ meeting. If it is in cash, it shall be approved by a resolution of the Board of Directors attended by at least two-thirds of the directors and resolved by a majority of the directors present, and reported to the shareholders’ meeting.

6. The Company may distribute all or part of the legal reserve and capital surplus in accordance with applicable laws and regulations. If the distribution is in the form of new shares, it shall be resolved by the shareholders’ meeting; if in cash, it shall be approved by a resolution of the Board of Directors attended by at least two-thirds of the directors and resolved by a majority of the directors present, and reported to the shareholders’ meeting.

49

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

In consideration of the Company’s operating environment, stage of growth, future capital requirements, and long-term financial planning, as well as to meet shareholders’ need for cash flows, the Board of Directors shall propose an earnings distribution plan based on distributable earnings, which shall be resolved by the shareholders’ meeting. At least 50% of distributable earnings shall be distributed as shareholder dividends, of which cash dividends shall not be less than 30% of the total dividends distributed for the year, and up to 100% maximum.

Pursuant to the Company Act, the legal reserve shall be appropriated until the total amount reaches the Company’s paid-in capital. Legal reserve may be used to offset losses. When there is no accumulated deficit, the portion of legal reserve exceeding 25% of the paid-in capital may be distributed as new shares or cash in proportion to the shareholders’ existing shareholdings.

When allocating distributable earnings, the Company shall, in accordance with applicable laws and regulations, appropriate additional special reserve to make up for the difference between the special reserve originally set aside upon first-time adoption of IFRSs and the net amount of other equity items. When the net amount of other equity items subsequently reverses, the reversed amount of special reserve may be used for earnings distribution.

According to FSC Jin-Guan-Zheng-Fa-Zi No. 1090150022 dated March 31, 2021, the Company appropriated a special reserve in respect of unrealized revaluation surplus and cumulative translation adjustments that were transferred to retained earnings on the date of transition due to the exemption options adopted under IFRS 1 “First-time Adoption of International Financial Reporting Standards.” Upon use, disposal, or reclassification of the related assets, the Company may reverse the special reserve for earnings distribution proportionally.

On March 6, 2025, the Company’s Board of Directors resolved the earnings appropriation and distribution plan for the year ended December 31, 2024, as well as the dividend per share. On March 7, 2024, the Board resolved the earnings appropriation and distribution plan and the dividend per share for the year ended December 31, 2023, as follows:

Legal reserve (Reversal of) Special reserve Cash dividends on common stock	Earnings Appropriation and Distribution Plan	Earnings Appropriation and Distribution Plan	Dividendper Share(NT$) 2024 2023 $ 3.08 $ 2.37
	2024	2023	2024
	$ 24,603 (52) 221,481	$ 17,839 33 160,516	$ 3.08

50

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

On March 7, 2024, the Company’s shareholders’ meeting proposed a cash distribution of NT$8,812 thousand from capital surplus, representing NT$0.13 per share.

For information regarding the basis of estimation and recognized amount of compensation to employees and directors, please refer to Note 6.17.

15. Operating Revenue

perating Revenue
Sales of goods Rendering of services Other operating income Total	2024 $ 847,149 20,080 1,004 $868,233	2023
		$ 700,619 8,527 1,603
		$710,749

(1) Disaggregation of Revenue

Timing of revenue recognition: At a point in time Over time Total Contract Balances A. Contract liabilities Sales of goods and royalties		2024 $ 868,233 $ － $ 868,233 $ December 31, 2024 December 31, 2023 $2,428 $6,966		2023
			$	710,749 －
			$	710,749
		December 31, 2024 $2,428		January 1, 2023
				$592

• (2) Contract Balances

A. Contract liabilities

The significant changes in the Company’s contract liabilities for the years ended December 31, 2024 and 2023 are summarized as follows:

Opening balance transferred to revenue in the current year Increase in advance receipts (net of amounts recognized as revenue during the year)	2024 $ (6,966) 2,428	2023
		$ (592) 6,966

B. Incremental Costs of Obtaining Contracts

The incremental costs incurred by the Company in 2024 and 2023 for obtaining contracts related to the sales of hyaluronic acid-based products amounted to NT$214,577 thousand

51

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

and NT$149,567 thousand, respectively, and were classified under selling expenses.

16. Leases

The Company as a lessee

The Company leases multiple parcels of land, with lease terms ranging from 10 to 47 years.

The impact of leases on the Company’s financial position, financial performance, and cash flows is summarized as follows:

• A. Amounts recognized in the balance sheet

• (a) Right-of-use assets

Carrying amount of right-of-use assets

Carrying amount of right-of-use assets
Land	December 31, 2024 $21,551	December 31, 2023
		$22,817

There were no additions to right-of-use assets in 2024 and 2023.

• (b) Lease liabilities

Lease liabilities
Lease liabilities Current Non-current	December 31, 2024 $22,854 $ 1,176 $ 21,678	December 31, 2023
		$24,070
		$ 1,216 $ 22,854

For details on interest expense on lease liabilities in 2024, please refer to Note 6.18(4) Finance Costs. For maturity analysis of lease liabilities as of 2024, please refer to Note 12.5 Liquidity Risk Management.

• B. Amounts recognized in the statement of comprehensive income

Depreciation of right-of-use assets

Depreciation of right-of-use assets
2024 Land $1,266 C. Gains and expenses related to lease activities for the lessee 2024 Expense relating to short-term leases $27	2023
	$1,267
	2023
	$28

52

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

• D. Cash outflows related to lease activities for the lessee

The total cash outflows for leases in 2024 and 2023 amounted to NT$1,243 thousand and NT$1,257 thousand, respectively.

• E. Other information related to leasing activities

Extension options and termination options

Certain property lease agreements of the Company include extension and termination options.

When determining the lease term, the Company considers the non-cancellable period during which it has the right to use the underlying asset, together with the periods covered by an option to extend the lease if it is reasonably certain that the Company will exercise that option, and periods covered by an option to terminate the lease if it is reasonably certain that the Company will not exercise that option. These options are used to maximize the operational flexibility of managing contracts. Most of these extension and termination options are exercisable only by the Company. The lease term is reassessed when significant events or changes in circumstances occur (within the lessee’s control) that affect the Company’s reasonable certainty to exercise options previously not included in the lease term or not to exercise options previously included.

1. Summary of Employee Benefits, Depreciation, and Amortization Expenses by Function:

Function Nature		2024			2023
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee benefit expenses
Salaries	55,346	53,567	108,913	48,841	49,177	98,018
Labor and health insurance	3,829	5,166	8,995	3,643	4,925	8,568
Retirement benefits	1,901	3,239	5,140	1,819	3,289	5,108
Compensation to directors	－	18,647	18,647	－	14,187	14,187
Other employee benefits	2,342	2,144	4,486	2,157	1,965	4,122
Depreciation expenses	50,620	12,146	62,766	50,848	11,615	62,463
Amortization expenses	－	501	501	－	543	543

As of December 31, 2024 and 2023, the number of the Company’s employees was 114 and 110, respectively, including 6 directors who did not concurrently serve as employees in both

53

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

years.

Additional Disclosures:

• (1) The average employee benefit expense in the current year was NT$1,181 thousand. The average in the prior year was NT$1,114 thousand.

• (2) The average salary expense per employee in the current year was NT$1,009 thousand; in the prior year, NT$943 thousand.

• (3) The average change in salary expenses was 6.94%.

• (4) Compensation Policy:

• A. The Company evaluates the performance and determines the compensation of directors and managers by referring to the industry standards, and by assessing the reasonableness of the correlation between individual performance, company performance, and future risks.

• B. Employee compensation is based on market salary levels for similar positions, the scope of responsibilities, and the individual's contribution to the Company’s business objectives. The compensation determination process takes into account not only the overall operating performance of the Company but also the individual's performance and contribution to the Company’s results.

According to the Company’s Articles of Incorporation, if the Company has earnings in the year, no less than 5% shall be allocated as compensation to employees, and no more than 5% as compensation to directors. However, if there are accumulated losses, an amount sufficient to offset the losses shall be retained first. The aforementioned compensation to employees may be paid in the form of stock or cash and shall be approved by a resolution of the Board of Directors with the attendance of at least two-thirds of the directors and consent of more than half of the attending directors. The resolution shall also be reported to the shareholders’ meeting. Relevant information on the compensation to employees and directors approved or reported by the Board and shareholders’ meetings can be found on the Taiwan Stock Exchange’s Market Observation Post System.

The compensation to employees and directors for the years ended December 31, 2024 and 2023, as resolved by the Board of Directors on March 6, 2025, and March 7, 2024, respectively, is as follows:

Compensation to employees Compensation to directors	2024 $ 16,288 16,288	2023
		$ 11,666 11,666

The amount of compensation to employees and directors for 2023 reported at the shareholders’ meeting was not materially different from the amount resolved by the Board of Directors on March 7, 2024, and was also consistent with the amounts recognized as expenses in the accounts.

54

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

18. Non-operating Income and Expenses

• (1) Interest Income

Interest income Other Income Rental income Other income Total Other Gains and Losses Gain on disposal of property, plant, and equipment Net foreign exchange gain (loss) Net gain (loss) on financial assets and liabilities at fair value through profit or loss Total Finance Costs Interest on corporate bonds payable Interest on lease liabilities Interest on asset retirement obligations Total	2024 $20,521 2024 $ 52 1,406 $1,458 2024 $ 190 20,390 6,449 $27,029 2024 $ (4,562) (408) (121) $ (5,091)	2023
		$14,872
		2023
		$ 135 726
		$861
		2023
		$ 544 (498) 2,895
		$2,941
		2023
		$ (7,675) (424) (121)
		$ (8,220)

• (2) Other Income

• (3) Other Gains and Losses

(4) Finance Costs

55

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

(5) Components of Other Comprehensive Income

The components of other comprehensive income for the year ended December 31, 2024 are as follows:

Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations Total	Amount for the Period	Reclassification Adjustment	Other Comprehensive Income	Tax Benefit (Expense)	Amount After Tax
	$ 4,722 52	$－ －	$ 4,722 52	$ (944) －	$ 3,778 52
	$ 4,774	$－	$ $ 4,774	$ (944)	$ 3,830

The components of other comprehensive income for the year ended December 31, 2023 are as follows:

Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations Total	Amount for the Period	Reclassification Adjustment	Other Comprehensive Income	Tax Benefit (Expense)	Amount After Tax
	$ 610 (33)	$－ －	$ 610 (33)	$ (122) －	$ 488 (33)
	$ 577	$－	$ 577	$ (122)	$ 455

56

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

19. Income Tax

(1) Major Components of Income Tax Expense:

Income tax recognized in profit or loss 2024 Current income tax expense: Current tax payable $ 33,539 Adjustment of prior years’ income tax in the current year (147) Deferred income tax expense (benefit): Tax benefit arising from the origination and reversal of temporary differences 6,861 Deferred tax arising from the origination and reversal of tax loss carryforwards and tax credits 8,639 Tax expense $ 48,892 Income tax recognized in other comprehensive income: 2024 Deferred tax benefit: Remeasurement of defined benefit obligation $ (944) Exchange differences arising on translation of foreign operations － Income tax relating to components of other comprehensive income $ (944)	Income tax recognized in profit or loss 2024 Current income tax expense: Current tax payable $ 33,539 Adjustment of prior years’ income tax in the current year (147) Deferred income tax expense (benefit): Tax benefit arising from the origination and reversal of temporary differences 6,861 Deferred tax arising from the origination and reversal of tax loss carryforwards and tax credits 8,639 Tax expense $ 48,892 Income tax recognized in other comprehensive income: 2024 Deferred tax benefit: Remeasurement of defined benefit obligation $ (944) Exchange differences arising on translation of foreign operations － Income tax relating to components of other comprehensive income $ (944)	2023 $ 25,401 (2,695) 1,408 7,983 $ 32,097 2023 $ (122) － $ (122)
Deferred tax benefit: Remeasurement of defined benefit obligation Exchange differences arising on translation of foreign operations Income tax relating to components of other comprehensive income
	$ (944) －
	$ (944)

57

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

• (2) Reconciliation of Income Tax Expense and Accounting Profit Multiplied by Applicable Tax Rate:

Profit before tax from continuing operations Income tax calculated at the statutory tax rate applicable to the Company Tax effect of non-deductible expenses for tax purposes Tax effect of temporary differences recognized as deferred income tax assets/liabilities Adjustment of prior years’ current income tax in the current year Tax effect of other adjustments according to tax regulations Total income tax expense recognized in profit or loss	2024	2023
	$ 291,146	$ 209,997
	$ 58,229 614 (1,668) (147) (8,136)	$ 41,999 1,889 (1,409) (2,695) (7,687)
	$ 48,892	$ 32,097

58

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

(3) Deferred Income Tax Assets (Liabilities):

Temporary differences Investment tax credits Pension Others Deferred income tax (expense) Net deferred income tax assets (liabilities) Presented on the balance sheet as follows: Deferred income tax assets Deferred income tax liabilities			2024
	Opening balance	Recognized in profit or loss $ (8,575) (1,212) (4,067) $ (13,854)	Recognized in other comprehensive income	Recognized in equity	Endingbalance $ 2,045 1,628 (3,003) $ 670 $ 5,016 $ 4,346
	$ 10,620 3,784 1,064		$－ (944) －	$－ － －
			$ (944)	$－
	$ 15,468
	$ 15,495
	$ 27

Temporary differences Investment tax credits Pension Others Deferred income tax (expense) Net deferred income tax assets (liabilities) Presented on the balance sheet as follows: Deferred income tax assets Deferred income tax liabilities			2023
	Opening balance	Recognized in profit or loss $ (8,037) (1,188) (167) $ (9,392)	Recognized in other comprehensive income	Recognized in equity $－ － $－	Endingbalance
	$ 18,657 5,094 1,231		$－ (122) －		$ 10,620 3,784 － 1,064
			$ (122)
	$ 24,982				$ 15,468
	$ 25,035				$ 15,495
	$ 53				$ 27

(4) Unrecognized Deferred Income Tax Assets:

As of December 31, 2024 and 2023, the unrecognized deferred income tax assets amounted to NT$15,605 thousand and NT$15,109 thousand, respectively.

(5) Income Tax Return Assessment Status:

As of December 31, 2024, the Company’s income tax filings have been assessed and approved through fiscal year 2022.

59

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

20. Earnings per Share

Basic Earnings per Share Net income attributable to ordinary shareholders of the Company Effect of dilutive potential ordinary shares Interest on convertible bonds Employee compensation–stock Diluted Earnings per Share Net income attributable to ordinary shareholders of the Company plus effect of dilutive potential ordinary shares Basic Earnings per Share Net income attributable to ordinary shareholders of the Company Effect of dilutive potential ordinary shares Interest on convertible bonds Employee compensation–stock Diluted Earnings per Share Net income attributable to ordinary shareholders of the Company plus effect of dilutive potential ordinary shares		2024
	After-tax Amount $ 242,254 3,649 － $ 245,903	Weighted Average Shares Outstanding (in thousands) 69,105 5,208 157 74,470 2023	Earnings per Share (NT$)
			$ 3.51
			$ 3.30
	After-tax Amount $ 177,900 6,140 － $184,040	Weighted Average Shares Outstanding (in thousands) 66,847 9,445 150 76,442	Earnings per Share (NT$)
			$ 2.66
			$2.41

7. RELATED PARTY TRANSACTIONS

A. Names and Relationships of Related Parties:

Name of Related Party

UNI-PROFIT INDUSTRIAL LIMITED (UNI-PROFIT) Chengze Medical Instruments (Shanghai) Co., Ltd. TALENT CRO Inc. CANDACE BIOMEDICAL INC. Dynamic Medical Technologies Inc. (Note)

Relationship with the Company 100% owned subsidiary

100% owned subsidiary

100% owned subsidiary 100% owned subsidiary Key management personnel of the Company (corporate director)

60

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Note: As of June 28, 2023, Dynamic Medical Technologies Inc. ceased to be an associate of the Group due to loss of significant influence.

• B. Significant Transactions with Related Parties

• Sales

Dynamic Medical Technologies Inc. CANDACE BIOMEDICAL INC. Total	2024 $－ 3,500 $ 3,500	2023
		$ 22,100 －
		$ 22,100

The Company’s sales to Dynamic Medical Technologies Inc. are not comparable due to differences in sales region and product category. Other trading terms and credit conditions are not significantly different from those with general customers.

The Company entered into an exclusive distribution agreement with Dynamic Medical Technologies Inc. for its medical aesthetic products in the Taiwan region. The agreement was secured by a bank guarantee of NT$10,000 thousand. The distribution period was from November 20, 2011 to October 31, 2021. From November 1, 2021 to December 31, 2021, Dynamic Medical Technologies Inc. continued to sell the remaining inventory. In 2022, both parties agreed to renew the contract, with a new bank guarantee of NT$5,000 thousand. The new agreement is effective from January 1, 2022 to December 31, 2024, with a three-year term.

1. Services

2024 CANDACE BIOMEDICAL INC. $ 4,080 3. Rental Income December 31,2024 TALENT CRO Inc. $ 29 4. Accounts Receivable – Related Parties December 31,2024 CANDACE BIOMEDICAL INC. $ 7,752 5. Other Payables December 31,2024 TALENT CRO Inc. $ 2,760	2023
	$ －
	December 31,2023
	$ 112
	December 31,2023
	$ －
	December 31,2023
	$ －

61

SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

6. Operating Expenses

Operating Expenses
Chengze Medical Instruments (Shanghai) Co., Ltd. TALENT CRO Inc. Total	December 31,2024 $ 3,718 7,235 $ 10,953	December 31,2023
		$ 3,562 2,361
		$5,923

7. Compensation to Key Management Personnel of the Company 2024 Short-term employee benefits $ 24,958 Post-employment benefits 577 Total $ 25,535	2023
	$ 20,586 496
	$ 21,082

8. PLEDGED ASSETS

The details of the Company’s pledged assets are as follows:

Property, plant and equipment	BookValue	BookValue
	December31,2024 $ 478,272	December31,2023	Nature of Pledge Pledged for bank credit lines and long- term borrowings
		$ 486,726

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMIT-MENTS

None.

10. SIGNIFICANT LOSS FROM DISASTER

None.

11. SIGNIFICANT SUBSEQUENT EVENTS

On March 6, 2025, the Board of Directors resolved to issue the Company’s third domestic unsecured convertible bonds in the amount of NT$400 million. The bonds bear a 0% coupon rate and have a maturity of three years.

62

SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

12. OTHERS

1. Categories of Financial Instruments

Financial Assets Financial assets at FVTPL: Mandatorily measured at FVTPL Financial assets at amortized cost: Cash and cash equivalents (excluding cash on hand) Financial assets measured at amortized cost Accounts receivable Refundable deposits Financial Liabilities Financial liabilities at amortized cost: Accounts payable Bonds payable (including current portion) Lease liabilities Deposits received	December 31,2024	December 31,2023
	$ 65,504 654,886 99,900 180,418 260 December 31,2024	$ 59,055 504,859 233,900 95,488 260 December 31,2023
	$ 165,917 134,785 22,854 2,006	$ 126,037 323,843 24,070 2,006

2. Objectives of Financial Risk Management

The Company’s financial risk management objectives are primarily to manage market risk, credit risk, and liquidity risk related to operating activities. Risks are identified, measured, and managed based on the Company’s policies and risk appetite.

The Company has established appropriate policies, procedures, and internal controls in accordance with relevant regulations to manage the aforementioned financial risks. Significant financial activities must be reviewed by the Board of Directors in accordance with internal control systems. During the execution of financial management activities, the Company must strictly comply with its financial risk management guidelines.

3. Market Risk

The Company’s market risk refers to the risk that the fair value or cash flows of financial instruments will fluctuate due to changes in market prices. Market risks mainly include foreign exchange risk, interest rate risk, and other price risks.

In practice, it is rare for a single risk variable to change in isolation, as changes in risk variables are usually correlated. However, the sensitivity analyses for the following risks do not take into account the interrelationships among these variables.

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

(1) Foreign Exchange Risk

The Company is exposed to foreign exchange risk primarily through its operating activities (when revenues or expenses are denominated in a currency different from the Company’s functional currency) and net investments in foreign operations.

Some of the Company’s foreign currency receivables and payables are denominated in the same currencies, which naturally offsets a portion of the exposure. For the remaining exposure, the Company uses forward foreign exchange contracts to manage foreign exchange risk. However, as these natural hedges and forward exchange contracts do not qualify for hedge accounting, hedge accounting is not applied. Additionally, as net investments in foreign operations are considered strategic investments, the Company does not hedge this exposure.

The sensitivity analysis below demonstrates the impact of an appreciation/depreciation of relevant foreign currencies on the Company’s profit or loss and equity, based on major foreign currency monetary items as of the end of the reporting period. The Company is primarily exposed to fluctuations in the exchange rates of the USD and RMB.

(2) Interest Rate Risk

Interest rate risk is the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in market interest rates. The Company’s exposure to interest rate risk mainly arises from floating-rate borrowings.

The Company manages its interest rate risk by maintaining an appropriate mix of fixed and floating rate borrowings.

• (3) Sensitivity Analysis of Pre-tax Effects of Relevant Risk Changes for 2024 and 2023:

2024

Major Risk	Change Assumption NTD to USD＋/－1％ NTD to RMB＋/－1％ NTD to EUR＋/－1％ Market interest rate＋/－10bps Change Assumption NTD to USD＋/－1％ NTD to RMB＋/－1％ NTD to EUR＋/－1％ Market interest rate＋/－10bps	Sensitivity of Profit or Loss (in Thousands of NTD)
Foreign Exchange Risk Interest Rate Risk 2023 Major Risk		－/＋4,727 －/＋278 －/＋168 ＋/－755 Sensitivity of Profit or Loss (in Thousands of NTD)
Foreign Exchange Risk Interest Rate Risk		－/＋3,029 －/＋214 －/＋92 ＋/－739

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

4. Credit Risk Management

Credit risk refers to the risk of financial loss to the Company if a counterparty fails to meet its contractual obligations. The Company is exposed to credit risk arising from its operating activities (primarily accounts and notes receivable) and from its financing activities (primarily bank deposits and various financial instruments).

Each business unit manages customer credit risk in accordance with the Company’s policies, procedures, and controls regarding customer credit risk. In addition, the Company uses certain credit enhancement tools where appropriate (such as advance payments and insurance) or may require guarantees from customers with weaker financial conditions to mitigate credit risk.

The Company’s finance department manages the credit risk associated with bank deposits and other financial instruments in accordance with Company policy. The Company only transacts with domestic and international financial institutions with good credit ratings, and there are no significant concerns about their ability to fulfill obligations. As a result, there is no material credit risk.

5. Liquidity Risk Management

The Company maintains financial flexibility through cash and cash equivalents and bank borrowings. The table below summarizes the contractual maturities of the Company’s financial liabilities based on the earliest possible repayment dates and undiscounted cash flows, including contractual interest payments. For floating rate liabilities, the undiscounted interest payments are based on the yield curve as of the end of the reporting period.

Non-Derivative Financial Liabilities

December 31, 2024 Accounts and other payables Convertible bonds Lease liabilities December 31, 2023 Accounts and other payables Convertible bonds Lease liabilities	Less than 1 year	2–3years	4–5years	Over 5 years	Total
	$ 165,917 136,927 1,569 $ 126,037 － 1,625	$－ － 3,103 $－ 335,981 3,120	$－ － 3,060 $－ － 3,092	$－ － 23,039 $－ － 24,559	$ 165,917 136,927 30,771 $ 126,037 335,981 32,396

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SCIVISION BIOTECH INC. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

6. Reconciliation of Liabilities Arising from Financing Activities

The reconciliation of liabilities arising from financing activities for the year ended December 31, 2024, is as follows:

January 1, 2024 Cash flows Non-cash changes December 31, 2024	Convertible Bonds	Lease Liabilities	Total Liabilities from Financing Activities
	$ 323,843 － (189,058)	$ 24,070 (1,216) －	$ 347,913 (1,216) (189,058)
	$ 134,785	$ 22,854	$ 157,639

The reconciliation of liabilities arising from financing activities for the year ended December 31, 2023, is as follows:

January 1, 2023 Cash flows Non-cash changes December 31, 2023	Convertible Bonds Lease Liabilities Total Liabilities from Financing Activities $ 386,688 $ 25,299 $ 411,987 － (1,229) (1,229) (62,845) － (62,845) $ 323,843 $ 24,070 $ 347,913

7. Fair Value of Financial Instruments

• (1) Valuation Techniques and Assumptions Used in Fair Value Measurement

Fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The methods and assumptions used by the Company in measuring or disclosing the fair value of financial assets and liabilities are as follows:

• A. The fair values of cash and cash equivalents, receivables, payables, and other current liabilities approximate their carrying amounts due to their short maturities.

• B. For financial assets and liabilities traded in active markets and with standard terms and conditions, fair value is determined based on quoted market prices (e.g., listed stocks, beneficiary certificates, bonds, and futures).

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

• (2) Fair Value of Financial Instruments Measured at Amortized Cost

The carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

8. Information on Foreign Currency Financial Assets and Liabilities with Significant Impact

The Company’s foreign currency financial assets and liabilities with significant impact are as follows:

Financial Assets	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2023	December 31, 2023	December 31, 2023
	Foreign Currency (in thousands)	Exchange Rate	NTD	Foreign Currency (in thousands)	Exchange Rate	NTD
	$ 14,419 6,215 493	32.785 4.478 34.14	$ 472,715 27,832 16,826	$ 9,866 4,947 272	30.705 4.327 33.98	$ 302,944 21,405 9,236
Monetary Items
USD RMB EUR

The above information is disclosed based on the foreign currency carrying amounts converted into the functional currency.

As the Company engages in transactions involving various foreign currencies, it is not practicable to disclose the foreign exchange gains and losses for each currency with significant impact separately. The foreign exchange gain (loss) of the Company for the years 2024 and 2023 amounted to NT$20,390 thousand and NT$(498) thousand, respectively.

9. Fair Value Hierarchy

• (1) Definition of Fair Value Hierarchy

All assets and liabilities measured or disclosed at fair value are classified based on the lowest level input that is significant to the overall fair value measurement. The levels are defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2: Observable inputs other than quoted prices included within Level 1, either directly or indirectly, for the asset or liability.

Level 3: Unobservable inputs for the asset or liability.

For assets and liabilities measured on a recurring basis, the Company re-assesses their classification at the end of each reporting period to determine whether any transfers between levels of the fair value hierarchy have occurred.

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

(2) Fair Value Hierarchy Information

The Company does not have any non-recurring assets measured at fair value. The fair value hierarchy information for recurring assets and liabilities measured at fair value is as follows:

as follows:
December 31, 2024 Assets measured at fair value: Financial assets at FVTPL Beneficiary certificates Corporate bonds December 31, 2023 Assets measured at fair value: Financial assets at FVTPL Beneficiary certificates Corporate bonds	Level 1	Level 2	Level 3	Total
	$ 13,903 51,601 Level 1	$－ － Level 2	$－ － Level 3	$ 13,903 51,601 Total
	$ 10,797 48,258	$－ －	$－ －	$ 10,797 48,258

There were no transfers between Level 1 and Level 2 fair value measurements during the years ended December 31, 2024 and 2023.

10. Capital Management

The primary objective of the Company’s capital management is to maintain a sound credit rating and capital ratio to support business operations and maximize shareholder returns. The Company manages and adjusts its capital structure based on economic conditions and may adjust dividends, return capital to shareholders, or issue new shares in order to maintain or modify the capital structure.

13. ADDITIONAL DISCLOSURES

1. Information on Significant Transactions and Investee Companies

2. (1) Financings provided: None.

3. (2) Endorsement/guarantee provided: None.

4. (3) Marketable securities held (excluding investments in subsidiaries and associates): See Table 1.

5. (4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million

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SCIVISION BIOTECH INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONTINUED) (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

or 20% of the paid-in capital: None.

• (5) Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: None.

• (6) Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None.

• (7) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: None.

• (8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.

• (9) Entities over which the Company has direct or indirect significant influence or control (excluding investments in Mainland China): See Table 2.

• (10) Information about the derivative financial instruments transaction: None.

• Information on investment in mainland China: See Table 3.

• Information of major shareholders: See Table 4.

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Table 1: Marketable Securities Held (Excluding investments in subsidiaries, associates, and joint ventures)

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Table 1: Marketable Securities Held (Excluding investments in subsidiaries, associates, and joint ventures) (Amounts in Thousands of New Taiwan Dollars)
December 31, 2024
Held
Marketable Marketable Securities Name Relationship with the
Company Financial Statement Account Shares/Units Note
Securities Type (Note 1) Company (Note 2) Carrying Value Percentage of
Name Note Fair Value
(Note 3) Ownership (%
(In Thousands)
Beneficiary Yuanta Global Leaders Balanced F － Financial assets at fair value through profit or loss – current － $ 13,903 － $ 13,903 －
SciVision certificates
Biotech Inc.
Corporate bonds TSMC Arizona Foreign Bond － Financial assets at fair value through profit or loss – current － 51,601 － 51,601 －
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Note 1: The term “marketable securities” in this table refers to stocks, bonds, beneficiary certificates, and derivative securities derived from the aforementioned items, as defined under International Financial Reporting Standard No. 9 – Financial Instruments.

Note 2: If the issuer of the marketable security is not a related party, the corresponding column may be left blank.

Note 3: For securities measured at fair value, the column for carrying value should reflect the balance after fair value adjustments and deduction of accumulated impairment. For securities not measured at fair value, the column should show the original acquisition cost or amortized cost, net of accumulated impairment.

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Table 2: Where the CompanyDirectlyor Indirectlyhas Significant Influence or Control Over an In-vested Company (ExcludingInvestments in Mainl	Table 2: Where the CompanyDirectlyor Indirectlyhas Significant Influence or Control Over an In-vested Company (ExcludingInvestments in Mainl	Table 2: Where the CompanyDirectlyor Indirectlyhas Significant Influence or Control Over an In-vested Company (ExcludingInvestments in Mainl	Table 2: Where the CompanyDirectlyor Indirectlyhas Significant Influence or Control Over an In-vested Company (ExcludingInvestments in Mainl	and China):								(Amounts in Thousands of New Taiwan Dollars) (Amounts in Thousands of New Taiwan Dollars) Share of Profits/Losses of Investee Note $ 70 － ) $ (410) － － $ 1,809	(Amounts in Thousands of New Taiwan Dollars) (Amounts in Thousands of New Taiwan Dollars) Share of Profits/Losses of Investee Note $ 70 － ) $ (410) － － $ 1,809	(Amounts in Thousands of New Taiwan Dollars) (Amounts in Thousands of New Taiwan Dollars) Share of Profits/Losses of Investee Note $ 70 － ) $ (410) － － $ 1,809	(Amounts in Thousands of New Taiwan Dollars) (Amounts in Thousands of New Taiwan Dollars) Share of Profits/Losses of Investee Note $ 70 － ) $ (410) － － $ 1,809
Investor Company	Investee Company	Location	Main Businesses and Products	Original Inves	tment Amount		Balance as of December 31, 2024				Net Income (Losses) of the Investee		Share of Profits/Losses of Investee	Note
				December 31, 2024	December 31, 2023		Shares (In Thousands)	Percentage of Ownership	Carrying Value
SciVision Biotech Inc.	UNI-PROFIT INDUSTRIAL LIMITED (UNI-PROFIT)	Hong Kong	International Trading	1,451 $	1,451 $		390	100.00%	$ 1,198		$ 70		$ 70	－
SciVision Biotech Inc.	TALENT CRO Inc. TALENT CRO Inc.	Taiwan	Management Consulting Services	8,000 $	8,000 $		800	100.00%	$ 2,235		$ (410	)	$ (410)	－
SciVision Biotech Inc.	CANDACE BIOMEDICAL INC. CANDACE BIOMEDICAL INC.	Taiwan	Wholesale of Cosmetics	41,000 $	- $		4,100	100.00%	$ 40,764		$ 1,809		$ 1,809	－
Table 3: Information on Investment in Mainland China
Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital (US$ in Thousands)	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2024	Investm	ent Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2024	Net Income (Losses) of the Investee Company		Percentage of Ownership		Share of Profits/Losses	Carrying Amount as of Balance as of December 31, 2024	Accumulated Inward Remittance of Earnings as of December 31, 2024
					Outflow		Inflow
Chengze Medical Instruments (Shanghai) Co., Ltd.	Wholesale of Medical Devices	$63,791 (USD2,000,000)	1	63,791 $	－		－	63,791 $	$ 162		100.00%		$ 162	1,747 $	－
Accumulated Investment in Mainland China as of December 31, 2023 (US$ in Thousands)					Inv In	estment Amounts Authorized by vestment Commission, MOEA (US$ in Thousands) (Note 3)						Upper Limit on Investment
$63,791 (USD2,000,000)						$65,570 (USD2,000,000)						$1,138,231

Note 1: Investment methods are classified into the following three types; please indicate only the applicable category:

1. Direct investment in Mainland China.

2. Investment in Mainland China through a third-region company.

3. Other methods.

Note 2: Significant transactions, including pricing, payment terms, and unrealized gains or losses, conducted directly or indirectly through third-region companies with investees in Mainland China: None.

Note 3: All New Taiwan Dollar (NTD) amounts are translated using the exchange rate as of December 31, 2024.

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SciVision Biotech Inc.

1. Statement of cash and cash equivalents

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

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Item Summary Amount Note
Petty cash $ 33
Cash on hand 281
Subtotal 314
Bank deposits:
NTD checking and demand deposits 127,182 Exchange rate:
Foreign currency demand deposits － USD USD 2,033 thousand 66,659 32.785
Foreign currency demand deposits－JPY JPY 0.1 thousand - 0.210
Foreign currency demand deposits－HKD HKD 0.04 thousand - 4.222
Foreign currency demand deposits－RMB RMB 2,294 thousand 10,273 4.478
Foreign currency demand deposits－EUR EUR 492 thousand 16,799 34.140
Foreign currency demand deposits－GBP GBP 0.35 thousand 15 41.190
NTD time deposits 122,500
－
Foreign currency time deposits USD USD 9,500 thousand 311,458
Subtotal 654,886
Total $ 655,200
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SciVision Biotech Inc.

1. Statement of financial assets measured at amortized cost - current

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
NTD time deposits	NTD 99,900 thousand	99,900 $

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SciVision Biotech Inc.

3. Statement of notes receivable

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Customer Name	Summary	Amount	Note
Company A (Less): Allowance for credit losses Net amount		8,400 $ － 8,400 $

(Note): Individual customer balances not exceeding 5% of the total amount under this account are presented on a combined basis.

SciVision Biotech Inc.

4. Statement of trade receivables

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Customer Name	Summary	Amount	Note
Company B Company C Company D Company E Others (Note) Total (Less): Allowance for credit losses Net amount		98,809 $ 21,247 17,558 9,639 16,019 163,272 $ － 163,272 $

(Note): Individual customer balances not exceeding 5% of the total amount under this account are presented on a combined basis.

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SciVision Biotech Inc.

5. Statement of trade receivables - related parties

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Customer Name	Summary	Amount	Note
CANDACE BIOMEDICAL INC. (Less): allowance for credit losses Net amount		7,752 $ － 7,752 $

SciVision Biotech Inc.

6. Statement of other receivables

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Other receivables	Others	994 $

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SciVision Biotech Inc.

7. Statement of inventories

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Cost	Net realizable value	Note
Raw materials and supplies Work in process Finished goods Total (Less): Allowance for inventory valuation losses Net amount	43,799 $ 13,568 9,772 67,139 (453) 66,686 $	43,346 $ 13,568 9,772

SciVision Biotech Inc.

8. Statement of prepayments

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Prepaid insurance Prepayments for purchases Other prepaid expenses Other prepayments Others (Note) Total		2,935 $ 22,663 2,907 13,212 1,070 42,787 $

(Note): Item balances not exceeding 5% of the total amount under this account are presented on a combined basis.

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SciVision Biotech Inc.

1. Statement of changes in investments accounted for using the equity method

Year 2024

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(Amounts in Thousands of New Taiwan Dollars)
Investee Company (in thousandsSharesBeginning Balance) Amount Shares Additions during the PeriodAmount Reductions during the Period Shares Amount repatriatedEarnings Income (loss)RecognizedInvestment arising from TranslationExchange Differencesof Foreign Operations (in thousandsShares ) ShareholdingEnding Balancepercentage Amount Value or EquityTotal Marketbook Value ValuationBasis GuaranteedPledged or Note
UNI-PROFIT INDUSTRIAL LIMITED # 390 $ 1,128 － $ － － $ － $ － $ 70 $ － 390 100.00% $ 1,198 $ 1,198 Equity method None
Chengze Medical Instruments － 1,533 － － － － － 162 52 － 100.00% 1,747 1,747 Equity method None
(Shanghai) Co., Ltd.
TALENT CRO Inc. 800 1,702 － 943 － － － (410) － 800 100.00% 2,235 2,235 Equity method None (Note1)
CANDACE BIOMEDICAL INC. － － 4,100 41,000 － (2,045) － 1,809 － 4,100 100.00% 40,764 40,764 Equity method None (Note2)
Subtotal $ 4,363 $ 41,943 $ (2,045) $ － $ 1,631 $ 52 $ 45,944
(Less): Accumulated impairment － － － － － － －
Net amount $ 4,363 $ 41,943 $ (2,045) $ － $ 1,631 $ 52 $ 45,944
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(Note 1): Additions during the period represent employee compensation distributed to employees of subsidiaries, amounting to NT$943 thousand.

(Note 2): Additions during the period represent new investments of NT$41,000 thousand, and reductions during the period represent NT$2,045 thousand from downstream transactions between subsidiaries.

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SciVision Biotech Inc.
10. Statement of changes in right-of-use assets
Year 2024
(Amounts in Thousands of New Taiwan Dollars)
Changes during the Period
Item Beginning Balance Ending Balance Note
Increase Decrease Reclassification
Original cost
Right-of-use assets – land $ 27,472 $ － $ - $ - $ 27,472
SciVision Biotech Inc.
11. Statement of changes in accumulated depreciation of right-of-use assets
Year 2024
(Amounts in Thousands of New Taiwan Dollars)
Changes during the Period
Item Beginning Balance Ending Balance Note
Increase Decrease Reclassification
Accumulated depreciation
Right-of-use assets – land $ 4,655 $ 1,266 $ - $ - $ 5,921
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SciVision Biotech Inc.

14. Statement of other non-current assets

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Other non-current assets	Golf club membership	2,950 $

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SciVision Biotech Inc.

15. Statement of current contract liabilities

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Advance receipts		2,428 $

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SciVision Biotech Inc.

16. Statement of trade payables

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Supplier Name	Summary	Amount	Note
Company F Company G Company H Company I Company J Others (Note) Total		1,678 $ 909 588 551 503 2,813 7,042 $

(Note): Individual customer balances not exceeding 5% of the total amount under this account are presented on a combined basis.

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SciVision Biotech Inc.

17. Statement of other payables

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Summary	Amount	Note
Accrued salaries Accrued commissions Accrued employee bonuses Accrued compensation to directors Others (Note) Total	Provision for 2024 bonuses and December salaries	18,203 $ 82,887 16,288 16,288 25,209 158,875 $

(Note): Individual customer balances not exceeding 5% of the total amount under this account are presented on a combined basis.

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SciVision Biotech Inc.

18. Statement of other current liabilities

December 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

	(Amounts in Thousands	of New Taiwan Dollars)
Item	Amount	Note
Receipts under custody Other advances received Total	729 $ 2 731 $

SciVision Biotech Inc.

19. Statement of non-current net defined benefit liability

Year 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Amount	Note
Beginning Balance Provision for the period Allocation for the period Actuarial gains and losses for the period Ending Balance	18,918 $ 1,620 (7,676) (4,722) 8,140 $

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20. Statement of deposits received

December 31, 2024

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(Amounts in Thousands of New Taiwan Dollars)
Item Summary Amount Note
Performance bond and rental deposits for Shen Yong Real
Deposits received $ 2,006
Estate
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SciVision Biotech Inc.

21. Statement of operating revenue

Year 2024

(Amounts in Thousands of New Taiwan Dollars)

Item	Quantity	Amount
Hyaluronic acid-based products Chemical raw materials Service income Other operating income Total (Less): Sales returns and allowances Net amount	77,285 boxes/pieces/bottles 557kg 279kg	843,649 $ 7,000 20,080 1,004 871,733 (3,500) 868,233 $

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SciVision Biotech Inc.

23. Statement of operating expenses

一

Year 2024

(Amounts in Thousands of New Taiwan Dollars)

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Administrative
Item Selling expenses R&D expenses Total
expenses
Salaries and wages $ 12,088 $ 41,393 $ 21,971 $ 75,452
Utilities 2,039 7,007 2,504 11,550
Depreciation 575 7,675 3,896 12,146
－ －
Research service fees 9,917 9,917
－ －
Promotion expenses 217,008 217,008
Service fees 1,966 8,720 1,274 11,960
－ －
Supplies expenses 21,790 21,790
Other expenses (Note) 11,593 22,013 5,563 39,169
Total $ 245,269 $ 86,808 $ 66,915 $ 398,992
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(Note): Item balances not exceeding 5% of the total amount under this account are presented on a combined basis.

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SciVision Biotech Inc.

24. Statement of non-operating revenue and expenses

Year 2024

(Amounts in Thousands of New Taiwan Dollars)

Item

Amount

Interest income Rental income Miscellaneous income Total other income Gain on disposal of property, plant and equipment Net foreign exchange gain Net gain on financial assets and liabilities at fair value through profit or loss Total other gains and losses Finance costs Share of profit or loss of subsidiaries and associates accounted for under the equity method Total non-operating income and expenses

20,521 $ 52 1,406 1,458 190 20,390 6,449 27,029 (5,091) 1,631 45,548 $

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