Syncmold Enterprise Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
Syncmold Enterprise Corporation

Opinion

We have audited the accompanying parent company only financial statements of Syncmold Enterprise Corporation (the "Corporation"), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the "parent company only financial statements").

In our opinion, based on our audits and the report of other auditors (refer to the other matter paragraph), the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Corporation as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Base on our audits and the report of other auditors, 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 for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Corporation’s parent company only financial statements for the year ended December 31, 2025 is described as follows:

Occurrence of Sales Revenue under Triangular Trade

The sales revenue of the Corporation under triangular trade should be recognized when the control of inventory was transferred upon actual shipment of goods by the overseas subsidiaries. Due to the significant and frequent nature of the sales revenue under triangular trade in relation to total operating revenue, the occurrence of sales revenue under triangular trade was deemed as a key audit matter for the year ended December 31, 2025. Refer to Note 4 to the parent company only financial statements for the related revenue recognition policies.

In response to this key audit matter, our main audit procedures performed for the Corporation were as follows:

We obtained an understanding of and assessed the operating effectiveness of the design and implementation of the relevant internal controls.
We performed detailed verification tests on the selected samples of sales revenue under triangular trade, checked transaction vouchers, and confirmed the occurrence of sales revenue.
We checked payment receipts or reconciled sales customer account records for any irregularities.

Other Matter

We did not audit the financial statements of associates accounted for using the equity method. These were instead audited by other auditors. Our opinion, insofar as it relates to the amounts included for associates accounted for using the equity method, is based solely on the reports of other auditors. As of December 31, 2025 and 2024, the amounts of investments accounted for using the equity method were NT$214,821 thousand and NT$188,702 thousand, respectively, which accounted for 2.04% and 1.69% of the Corporation’s total assets, respectively. For the years ended December 31, 2025 and 2024, the share of profit of associates accounted for using the equity method amounted to NT$32,959 thousand and NT$31,195 thousand, respectively, which accounted for 10.59% and 2.27% of the Corporation’s total comprehensive income, respectively.

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

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

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

Those charged with governance, including supervisors, are responsible for overseeing the Corporation’s financial reporting process.

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

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

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025, and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Yao-Lin Huang and Shih-Chieh Chou.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 2, 2026

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and parent company only financial statements shall prevail.

SYNCMOLD ENTERPRISE CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 439,924	4	$ 1,043,715	9
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	202,603	2	171,728	2
Financial assets at amortized cost - current (Notes 4 and 8)	-	-	458,990	4
Trade receivables, net (Notes 4 and 9)	701,358	7	323,902	3
Trade receivables from related parties (Notes 4 and 27)	182,551	2	203,289	2
Other receivables from related parties (Notes 4 and 27)	13,143	-	9,241	-
Inventories (Notes 4 and 10)	53,270	-	107,083	1
Other current assets (Note 4)	6,092	-	18,887	-
Total current assets	1,598,941	15	2,336,835	21
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 4 and 7)	76,128	1	87,755	1
Investments accounted for using the equity method (Notes 4 and 11)	8,314,067	79	8,240,411	73
Property, plant and equipment (Notes 4, 12, 27 and 28)	174,405	2	187,834	2
Right-of-use assets (Notes 4 and 13)	1,144	-	832	-
Intangible assets (Notes 4 and 14)	5,112	-	6,186	-
Goodwill (Notes 4 and 15)	324,597	3	324,597	3
Deferred tax assets (Notes 4 and 23)	1,004	-	1,817	-
Net defined benefit assets (Notes 4 and 19)	11,370	-	10,457	-
Other non-current assets	601	-	1,242	-
Total non-current assets	8,908,428	85	8,861,131	79
TOTAL	$ 10,507,369	100	$ 11,197,966	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 4 and 16)	$ 1,413,000	14	$ 1,090,000	10
Trade payables	208	-	4,887	-
Trade payables from related parties (Note 27)	1,181,541	11	1,582,826	14
Other payables (Note 18)	232,178	2	331,147	3
Other payables from related parties (Note 27)	133,135	1	103,806	1
Current tax liabilities (Notes 4 and 23)	74,051	1	48,618	-
Lease liabilities - current (Notes 4 and 13)	639	-	533	-
Current portion of long-term borrowing (Notes 4, 16 and 28)	4,642	-	4,558	-
Other current liabilities	3,265	-	3,783	-
Total current liabilities	3,042,659	29	3,170,158	28
NON-CURRENT LIABILITIES
Long-term borrowing (Notes 4, 16 and 28)	30,129	-	34,771	1
Deferred tax liabilities (Notes 4 and 23)	171,286	2	253,720	2
Lease liabilities - non-current (Notes 4 and 13)	514	-	307	-
Guarantee deposits received	140	-	140	-
Other non-current liabilities (Notes 4 and 11)	8,621	-	7,958	-
Total non-current liabilities	210,690	2	296,896	3
Total liabilities	3,253,349	31	3,467,054	31
EQUITY
Ordinary shares	1,442,686	14	1,442,686	13
Capital surplus	3,376,992	32	3,371,549	30
Retained earnings
Legal reserve	1,231,223	12	1,128,761	10
Special reserve	272,779	2	619,827	5
Unappropriated earnings	1,390,351	13	1,440,868	13
Total retained earnings	2,894,353	27	3,189,456	28
Other equity
Exchange differences on translating the financial statements of foreign operations	(477,874)	(4)	(281,598)	(2)
Unrealized gain (loss) of financial assets at fair value through other comprehensive income	17,863	-	8,819	-
Total other equity	(460,011)	(4)	(272,779)	(2)
Total equity	7,254,020	69	7,730,912	69
TOTAL	$ 10,507,369	100	$ 11,197,966	100

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

(With Deloitte & Touche auditors' report dated March 2, 2026)

SYNCMOLD ENTERPRISE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4, 21 and 27)	$ 3,020,760	100	$ 3,634,923	100
OPERATING COSTS (Notes 4, 10, 22 and 27)	2,513,738	83	2,816,064	78
GROSS PROFIT	507,022	17	818,859	22
OPERATING EXPENSES (Notes 22 and 27)
Selling and marketing expenses	125,027	4	120,124	3
General and administrative expenses	191,080	7	274,537	8
Research and development expenses	128,906	4	164,895	4
Expected credit gain (Notes 4 and 9)	-	-	(92)	-
Total operating expenses	445,013	15	559,464	15
PROFIT FROM OPERATIONS	62,009	2	259,395	7
NON-OPERATING INCOME AND EXPENSES
Other income (Notes 22 and 27)	11,886	-	7,498	-
Other gains and losses	-	-	169	-
Interest income (Note 27)	15,525	1	56,896	2
Net foreign exchange (loss) gain (Notes 4 and 29)	(4,468)	-	22,352	1
Net gain on financial assets at fair value through profit (Note 4)	45,542	2	23,711	1
Share of profit of subsidiaries and associates (Notes 4 and 11)	460,957	15	853,551	23
Interest expenses	(23,719)	(1)	(17,683)	(1)
Total non-operating income and expenses	505,723	17	946,494	26
PROFIT BEFORE INCOME TAX FROM OPERATIONS	567,732	19	1,205,889	33
INCOME TAX EXPENSE (Notes 4 and 23)	70,316	3	184,528	5
NET PROFIT FOR THE YEAR	497,416	16	1,021,361	28

(Continued)

SYNCMOLD ENTERPRISE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	$ 756	-	$ 3,066	-
Share of other comprehensive income of subsidiaries accounted for using the equity method	9,397	-	3,298	-
Income tax relating to items that will not be reclassified subsequently to profit or loss	(151)	-	(613)	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations	(196,276)	(6)	344,824	10
Other comprehensive income (loss) for the year	(186,274)	(6)	350,575	10
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 311,142	10	$ 1,371,936	38
EARNINGS PER SHARE (Note 24)
Basic	$ 3.45		$ 7.13
Diluted	$ 3.43		$ 7.03

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

(With Deloitte & Touche auditors’ report dated March 2, 2026)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	Capital		Capital Surplus (Notes 4 and 20)	Retained Earnings (Note 20)				Other Equity
	Ordinary Shares (Note 20)	Capital Collected in Advance (Note 17)		Legal Reserve	Special Reserve	Unappropriated Earnings	Total	Exchange Differences on Translating of the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total	Total Equity
BALANCE ON JANUARY 1, 2024	$ 1,237,258	$ 170,511	$ 3,180,597	$ 1,064,029	$ 518,796	$ 1,160,008	$ 2,742,833	$ (626,422)	$ 6,595	$ (619,827)	$ 6,711,372
Appropriation of 2023 earnings
Legal reserve	-	-	-	64,732	-	(64,732)	-	-	-	-	-
Special reserve	-	-	-	-	101,031	(101,031)	-	-	-	-	-
Cash dividends distributed by the Corporation	-	-	-	-	-	(578,000)	(578,000)	-	-	-	(578,000)
	-	-	-	64,732	101,031	(743,763)	(578,000)	-	-	-	(578,000)
Changes in affiliated companies recognized under the equity method	-	-	-	-	-	(265)	(265)	-	-	-	(265)
Unclaimed dividends	-	-	85	-	-	-	-	-	-	-	85
Net profit for the year ended December 31, 2024	-	-	-	-	-	1,021,361	1,021,361	-	-	-	1,021,361
Other comprehensive income for the year ended December 31, 2024, net of income tax	-	-	-	-	-	3,188	3,188	344,824	2,563	347,387	350,575
Total comprehensive income for the year ended December 31, 2024	-	-	-	-	-	1,024,549	1,024,549	344,824	2,563	347,387	1,371,936
Convertible corporate bonds	205,428	(170,511)	166,680	-	-	-	-	-	-	-	201,597
Actual acquisition of interests in subsidiaries	-	-	366	-	-	-	-	-	-	-	366
Changes in ownership equity in a subsidiary	-	-	23,821	-	-	-	-	-	-	-	23,821
Disposal of investment in equity instrument designated as at fair value through other comprehensive income by associates	-	-	-	-	-	339	339	-	(339)	(339)	-
BALANCE ON DECEMBER 31, 2024	1,442,686	-	3,371,549	1,128,761	619,827	1,440,868	3,189,456	(281,598)	8,819	(272,779)	7,730,912
Appropriation of 2024 earnings
Legal reserve	-	-	-	102,462	-	(102,462)	-	-	-	-	-
Special reserve	-	-	-	-	(347,048)	347,048	-	-	-	-	-
Cash dividends distributed by the Corporation	-	-	-	-	-	(793,477)	(793,477)	-	-	-	(793,477)
	-	-	-	102,462	(347,048)	(548,891)	(793,477)	-	-	-	(793,477)
Unclaimed dividends	-	-	87	-	-	-	-	-	-	-	87
Net profit for the year ended December 31, 2025	-	-	-	-	-	497,416	497,416	-	-	-	497,416
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	-	1,612	1,612	(196,276)	8,390	(187,886)	(186,274)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	499,028	499,028	(196,276)	8,390	(187,886)	311,142
Actual acquisition of interests in subsidiaries	-	-	5,356	-	-	-	-	-	-	-	5,356
Disposal of investment in equity instrument designated as at fair value through other comprehensive income by associates	-	-	-	-	-	(654)	(654)	-	654	654	-
BALANCE ON DECEMBER 31, 2025	$ 1,442,686	$ -	$ 3,376,992	$ 1,231,223	$ 272,779	$ 1,390,351	$ 2,894,353	$ (477,874)	$ 17,863	$ (460,011)	$ 7,254,020

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

(With Deloitte & Touche auditors' report dated March 2, 2026)

SYNCMOLD ENTERPRISE CORPORATION
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$ 567,732	$ 1,205,889
Adjustments for:
Depreciation expenses	7,465	19,472
Amortization expenses	7,413	8,535
Expected credit gain	-	(92)
Net gain on financial assets at fair value through profit or loss	(45,542)	(23,711)
Interest expenses	23,719	17,683
Interest income	(15,525)	(56,896)
Dividend income	(10,758)	(6,569)
Share of profit of subsidiaries and associates	(460,957)	(853,551)
Gain on disposal of property, plant and equipment	-	(169)
Reversal of write-downs of inventories	(381)	(6,427)
Net loss on unrealized foreign currency exchange	15,700	35,737
Changes in operating assets and liabilities
Trade receivables	(381,836)	(105,385)
Trade receivables from related parties	20,738	9,436
Inventories	54,194	(42,859)
Other receivables from related parties	(13,143)	(8,717)
Other current assets	24,806	(2,114)
Other non-current assets	(15)	-
Net defined benefit assets	(157)	(92)
Notes payable and trade payables	(22,202)	(68,612)
Trade payables to related parties	(401,285)	277,345
Other payables	(98,792)	115,937
Other current liabilities	634	(198)
Cash generated from operations	(728,192)	514,642
Interest paid	(22,996)	(16,941)
Income tax paid	(126,656)	(79,412)
Net cash (used in) generated from operating activities	(877,844)	418,289
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at amortized cost	(430,560)	(576,820)
Proceeds from sale of financial assets at amortized cost	881,180	264,970
Purchase of financial assets at fair value through profit or loss	(208,434)	(104,639)
Proceeds from sale of financial assets at fair value through profit or loss	234,728	47,604
Acquisition of long-term equity investments under the equity method	-	(5,517)
Payments for property, plant and equipment	(2,238)	(9,026)
Proceeds from disposal of property, plant and equipment	8,895	9,415
Decrease in refundable deposits	656	988
Purchase of intangible assets	(6,339)	(7,930)
		(Continued)

SYNCMOLD ENTERPRISE CORPORATION
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
Interest received	$ 24,644	$ 53,933
Dividends received	599,492	164,851
Net cash generated from (used in) investing activities	1,102,024	(162,171)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	323,000	230,000
Repayments of long-term borrowings	(4,558)	(4,484)
Increase in guarantee deposits received	-	108
Increase (decrease) in financing payables to related parties	30,050	(14,950)
Repayment of the principal portion of lease liabilities	(693)	(979)
Dividends paid	(793,477)	(578,000)
Acquisition of additional interests in subsidiaries	(382,293)	(192,127)
Net cash used in financing activities	(827,971)	(560,432)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(603,791)	(304,314)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	1,043,715	1,348,029
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 439,924	$ 1,043,715

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

(With Deloitte & Touche auditors’ report dated March 2, 2026) (Concluded)

10 -

SYNCMOLD ENTERPRISE CORPORATION

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Syncmold Enterprise Corporation (the "Corporation") was incorporated in the Republic of China (ROC) in July 1979. The Corporation is mainly engaged in the processing, manufacturing, trading, technology licensing and related import and export business of various metal molds, plastic molds and electronic parts.

The Corporation's shares were approved for listing on the emerging stock board of the Taipei Exchange (TPEx) in December 2005. After obtaining approval from the Financial Supervisory Commission, Executive Yuan in November 2006, the Corporation's shares were listed on the over-the-counter (OTC) market on January 11, 2007. In November 2009, the Corporation obtained approval to transfer the listing of its shares to the Taiwan Stock Exchange (TWSE). The Corporation was officially listed and started trading its shares on December 17, 2009.

The parent company only financial statements are presented in the Corporation's functional currency, the New Taiwan dollar.

2. APPROVAL OF PARENT COMPANY ONLY FINANCIAL STATEMENTS

The parent company only financial statements were approved by the Corporation's board of directors on March 2, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Corporation's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by the International Accounting Standards Board (IASB)
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

As of the date the parent company only financial statements were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations on the Corporation's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above New IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Corporation shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Corporation shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Corporation shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Corporation labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Corporation as a whole, the Corporation shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

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

The Corporation shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Corporation shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the parent company only financial statements were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations on the Corporation’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”).

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit assets which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

When preparing these parent company only financial statements, the Corporation used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same as the amounts attributable to the owners of the Corporation in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates and the share of other comprehensive income of subsidiaries and associates.

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c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Corporation does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after re-assessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held interests in the acquiree, the excess is recognized immediately in profit or loss as a bargain purchase gain.

e. Foreign currencies

In preparing the Corporation's parent company only financial statements, transactions in currencies other than the Corporation's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

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For the purpose of presenting the parent company only financial statements, the functional currencies of the Corporation (including subsidiaries in other countries that use currencies which are different from the currency of the Corporation) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

f. Inventories

Inventories consist of raw materials, supplies, finished goods and products and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

g. Investments in subsidiaries

The Corporation uses the equity method to account for its investments in subsidiaries.

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

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation's share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation's share of equity of subsidiaries.

Changes in the Corporation's ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Corporation's share of loss of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Corporation's net investment in the subsidiary), the Corporation continues recognizing its share of further loss, if any.

Any excess of the cost of acquisition over the Corporation's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Corporation assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee's financial statements as a whole. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

Profit or loss resulting from downstream transactions are eliminated in full only in the parent company only financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized only in the parent company only financial statements only to the extent of interests in the subsidiaries that are not related to the Corporation.

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h. Investments in associates

An associate is an entity over which the Corporation has significant influence and that is not a subsidiary.

The Corporation uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the associates. The Corporation also recognizes the changes in the Corporation’s share of the equity of associates.

When the Corporation subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Corporation’s proportionate interest in the associate. The Corporation records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Corporation’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

Profits and losses resulting from upstream transactions and downstream transactions are recognized only in the parent company only financial statements only to the extent of interests in the associates that are not related to the Corporation.

i. Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Goodwill

Goodwill arising from the acquisition of a business is measured at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Corporation’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is expected to benefit from the synergies of the combination.

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A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.

If goodwill has been allocated to a cash-generating unit and the entity disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

k. Intangible assets

1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

Impairment of property, plant and equipment, right-of-use assets and intangible assets other than goodwill.

At the end of each reporting period, the Corporation reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

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m. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL and financial assets at amortized cost.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 26.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortized cost (including cash and cash equivalents, notes receivable, trade receivables, other receivables, other receivables from related parties and refundable deposits) are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and

ii) Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;

ii) Breach of contract, such as a default;

iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or

iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

b) Impairment of financial assets

The Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).

The Corporation always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Corporation recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Corporation measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The Corporation recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

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c) Derecognition of financial assets

The Corporation derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received is recognized in profit or loss.

2) Equity instruments

Equity instruments issued by the Corporation are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.

Equity instruments issued by the Corporation are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Corporation’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Corporation’s own equity instruments.

3) Convertible bonds

The component parts of compound instruments (i.e., convertible bonds) issued by the Corporation are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or upon the instrument’s maturity date. Any embedded derivative liability is measured at fair value.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised; in which case, the balance recognized in equity will be transferred to capital surplus - share premiums. When the conversion option remains unexercised at maturity, the balance recognized in equity will be transferred to capital surplus - share premiums.

Transaction costs that relate to the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component.

n. Revenue recognition

The Corporation identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

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1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of electronic components and molding products. Sales of electronic components and molding products are recognized as revenue when the goods are delivered via the modes of transportation as stated in the agreements with customers, e.g. FOB shipping or FOB destination modes because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. Goods are sold at fixed prices as stated in the agreements with customers.

The Corporation does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

2) Revenue from the rendering of services

Service income is recognized when services are provided.

3) Licensing revenue

Royalty revenue is recognized when the technique remains functional without updates and technical supports. When the customer uses the intellectual property for mass production, the price is decided based on production, sales or other methods, and revenue is recognized according to royalty arrangements.

o. Leasing

At the inception of a contract, the Corporation assesses whether the contract is, or contains, a lease.

1) The Corporation as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

2) The Corporation as lessee

The Corporation recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

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Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments that depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Corporation uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, the Corporation remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Corporation accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease. Lease liabilities are presented on a separate line in the balance sheets.

p. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

q. Government grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized as in other income on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants intend to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognized in profit or loss in the period in which they are received.

r. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

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Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Corporation’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

s. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary difference to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Corporation is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Corporation expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes for the year

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Corporation's accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Corporation considers the possible impact of US reciprocal tariffs on the cash flow projection, growth rates, discount rates, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 1,265	$ 1,283
Checking accounts and demand deposits	375,799	452,302
Cash equivalents
Time deposits with original maturities within 3 months	62,860	590,130
	$ 439,924	$ 1,043,715

The market rate intervals of cash in the bank at the end of the reporting period were as follows:

	December 31
	2025	2024
Bank deposits	0.000%-4.11%	0.000%-5.00%

FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets at fair value through profit or loss (FVTPL) - current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic listed shares	$ 202,603	$ 171,728
Financial assets at FVTPL - non-current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic emerging market shares	$ 22,864	$ 30,584
Domestic unlisted shares	20,952	19,928
Overseas unlisted shares	17,472	22,345
Private funds	14,840	14,898
	$ 76,128	$ 87,755

FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Current
Time deposits with original maturities of more than 3 months	$ -	$ 458,990

The ranges of interest rates for time deposits with original maturities of more than 3 months was 5.01%-5.41% per annum as of December 31, 2024.

TRADE RECEIVABLES, NET

	December 31
	2025	2024
At amortized cost
Gross carrying amount	$ 701,358	$ 323,902
Less: Allowance for impairment loss	-	-
	$ 701,358	$ 323,902

The average credit period of sales of goods is 90-150 days. No interest was charged on trade receivables. Credit rating information is obtained from independent rating agencies where available or, if not available, the Corporation uses other publicly available financial information or its own trading records to rate its major customers. The Corporation's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management annually.

The Corporation applies the simplified approach to providing for expected credit losses prescribed, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Corporation's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Corporation's different customer base.

The Corporation writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Corporation continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Corporation's provision matrix.

December 31, 2025

	Not Past Due	Less than 30 Days	31 to 90 Days	91 to 180 Days	Over 180 Days	Total
Expected credit loss rate	-	-	-	-	-
Gross carrying amount	$ 701,213	$ 145	$ -	$ -	$ -	$ 701,358
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$ 701,213	$ 145	$ -	$ -	$ -	$ 701,358

December 31, 2024

	Not Past Due	Less than 30 Days	31 to 90 Days	91 to 180 Days	Over 180 Days	Total
Expected credit loss rate	-	-	-	-	-
Gross carrying amount	$ 320,841	$ 3,050	$ 11	$ -	$ -	$ 323,902
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$ 320,841	$ 3,050	$ 11	$ -	$ -	$ 323,902

The movements of the loss allowance of trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ -	$ 92
Less: Reversal of loss allowance	-	(92)
Balance on December 31	$ -	$ -

27 -

10. INVENTORIES

	December 31
	2025	2024
Products	$ 53,270	$ 99,746
Raw materials	-	5,174
Work in process	-	30
Finished goods	-	2,133
	$ 53,270	$ 107,083

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 was $2,513,738 thousand and $2,816,064 thousand, respectively. The cost of goods sold for the years ended December 31, 2025 and 2024, included reversals of inventory write-downs of $381 thousand and $6,427 thousand, respectively. Inventory write-downs were reversed as a result of the reversed value in certain markets.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in subsidiaries	$ 8,099,246	$ 8,051,709
Investments in associates	214,821	188,702
	$ 8,314,067	$ 8,240,411

a. Investments in subsidiaries

	December 31
	2025	2024
Grand Advance Inc.	$ 3,338,528	$ 3,653,501
Syncmold Enterprise (Samoa) Corp.	2,280,117	2,502,576
Syncmold Enterprise (USA) Corp.	(8,621)	(7,958)
Leohab Enterprise Co., Ltd.	705,864	483,374
Gatetech Technology Inc.	616,437	650,365
SynX Tech Co., Ltd.	39,914	49,930
Syncmold Enterprise Vietnam Co., Ltd.	685,325	662,387
Syncmold Enterprise (Malaysia) Sdn., Bhd	2,877	2,397
Syncmold Enterprise (Singapore) Pte., Ltd.	6,959	6,669
Syncmold Enterprise (Thailand) Co., Ltd.	331,638	40,510
Syncmold DONG NAI Company Limited	91,587	-
	8,090,625	8,043,751
Add: Credit balance of investments reclassified to non-current liabilities	8,621	7,958
	$ 8,099,246	$ 8,051,709

Name of Subsidiaries	Proportion of Ownership and Voting Rights
	December 31
	2025	2024
Grand Advance Inc.	100.00%	100.00%
Syncmold Enterprise (Samoa) Corp.	100.00%	100.00%
Syncmold Enterprise (USA) Corp.	100.00%	100.00%
Leohab Enterprise Co., Ltd.	80.22%	80.22%
Gatetech Technology Inc.	75.94%	74.17%
SynX Tech Co., Ltd.	100.00%	100.00%
Syncmold Enterprise Vietnam Co., Ltd.	100.00%	100.00%
Syncmold Enterprise (Malaysia) Sdn., Bhd	100.00%	100.00%
Syncmold Enterprise (Singapore) Pte., Ltd.	100.00%	100.00%
Syncmold Enterprise (Thailand) Co., Ltd.	100.00%	100.00%
Syncmold DONG NAI Company Limited	100.00%	-

The Corporation continued to support Syncmold Enterprise (USA) Corp. and recognized investment loss based on the proportion of the Corporation's ownership. The credit balances of long-term equity investment transferred to other liabilities were $8,621 thousand and $7,958 thousand on December 31, 2025 and 2024, respectively.

On May 30, 2024, the Corporation subscribed for additional new shares of Leohab Enterprise Co., Ltd. at a percentage different from its existing ownership percentage and increased its continuing interest from 70% to 80.22%. Refer to Note 26 for detailed information on the acquisition of non-controlling interests during 2024.

On March 25, 2025, August 14, 2024, and July 18, 2024, the Corporation acquired additional 1.77%, 0.09% and 0.03% ownership in Gatetech Technology Inc. for a cash consideration of $10,162 thousand, $543 thousand and $210 thousand, respectively. The proportion of the Group's ownership was 75.94% as of December 31, 2025. Refer to Note 26 for detailed information on the acquisition of non-controlling interests during 2025.

On November 22, 2024, the Corporation invested $50,000 thousand in cash to establish SynX Tech Co., Ltd.

On July 22, May 14, January 29, 2025 and September 4, 2024, the Corporation increased its capital investment in Syncmold Enterprise (THAILAND) Co., Ltd. by THB138,097 thousand, THB79,985 thousand, THB79,985 thousand and THB44,718 thousand, bringing the total investment amount to THB378,767 thousand (approximately NT$354,047 thousand), respectively.

On October 21, 2025, the Corporation invested $1,000 thousand in cash to establish Syncmold DONG NAI Company Limited, and increased its capital by $2,000 thousand on December 19, 2025, bringing the total investment amount to $3,000 thousand (approximately NT$93,240 thousand).

For details of the investments in subsidiaries indirectly held by the Corporation, refer to Note 30.

The share of profit or loss of subsidiaries accounted for using the equity method in 2025 and 2024 was calculated based on the subsidiaries' financial statements which have been audited for the same periods.

b. Investments in associates

	December 31
	2025	2024
Associates that are not individually material
Unlisted companies
High Grade Tech Co., Ltd.	$ 197,700	$ 174,714
Smart Automation Technology Inc. (Note)	17,121	13,988
	$ 214,821	$ 188,702

Aggregate information of associates that are not individually material:

	For the Year Ended December 31
	2025	2024
The Corporation’s share of:
Net profit of the year	$ 24,560	$ 28,562
Other comprehensive income	$ 8,399	$ 2,633

Note: The Corporation originally held 49% of the shares of Smart Automation Technology Inc. On July 5, 2024, the Corporation did not subscribe for cash capital increase of Smart Automation Technology Inc. for a cash consideration of $5,517 thousand, which resulted in a decrease in its ownership percentage from 49% to 47.11%, and the net equity was reduced by $265 thousand under the retained earnings.

All the investments of associates that are not individually material were accounted for using equity method, and the Corporation’s share of profit or loss and other comprehensive income from those investments were calculated based on audited financial statements.

PROPERTY, PLANT AND EQUIPMENT

	Freehold Land	Buildings	Equipment	Transpor-tation Equipment	Office Equipment	Total
Cost
Balance on January 1, 2025	$ 122,032	$ 73,634	$ 35,791	$ 550	$ 11,542	$ 243,549
Additions	-	359	-	-	1,879	2,238
Disposals	-	(4,021)	(27,378)	-	(4,136)	(35,535)
Balance on December 31, 2025	$ 122,032	$ 69,972	$ 8,413	$ 550	$ 9,285	$ 210,252
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 26,127	$ 21,726	$ 414	$ 7,448	$ 55,715
Depreciation expenses	-	2,026	1,972	90	2,684	6,772
Disposals	-	(4,021)	(18,483)	-	(4,136)	(26,640)
Balance on December 31, 2025	$ -	$ 24,132	$ 5,215	$ 504	$ 5,996	$ 35,847
Carrying amounts on December 31, 2025	$ 122,032	$ 45,840	$ 3,198	$ 46	$ 3,289	$ 174,405

(Continued)

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

	Freehold Land	Buildings	Equipment	Transportation Equipment	Office Equipment	Total
Buildings
Main buildings					20-50 years
Electromechanical power devices					4-5 years
Equipment					3-10 years
Transportation equipment					5-10 years
Office equipment					3-8 years

Property, plant and equipment used by the Corporation and pledged as collateral for bank borrowings are set out in Note 28.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024	2025	2024	2025	2024
Carrying amounts
Transportation equipment	$ 1,144	$ 832	$ 1,144	$ 832	$ 1,144	$ 832
Additions to right-of-use assets
Buildings	$ -	$ 414	$ -	$ 414	$ -	$ 414
Transportation equipment	693	552	693	552	693	552
	$ 693	$ 966	$ 693	$ 966	$ 693	$ 966

Except for the additions and recognized depreciation, the Corporation did not have any significant subleasing and impairment of right-of-use assets for the years ended December 31, 2025 and 2024.

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 639	$ 533
Non-current	$ 514	$ 307
Range of discount rates for lease liabilities was as follows:
	December 31
	2025	2024
Buildings	-	0.94%
Transportation equipment	0.94%-1.92%	0.94%-1.71%
c. Other lease information
	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 3,159	$ 9,588
Total cash outflow for leases	$ (3,869)	$ (10,586)

The Corporation's leases certain buildings which qualify as short-term leases. The Corporation has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

INTANGIBLE ASSETS

	Computer Software Cost
Cost
Balance on January 1, 2025	$ 16,402
Additions	6,339
Written off	(13,332)
Balance on December 31, 2025	$ 9,409
	(Continued)

32 -

Accumulated amortization	Computer Software Cost
Balance on January 1, 2025	$ 10,216
Amortization expenses	7,413
Written off	(13,332)
Balance on December 31, 2025	$ 4,297
Carrying amount on December 31, 2025	$ 5,112
Cost
Balance on January 1, 2024	$ 23,852
Additions	7,930
Written off	(15,380)
Balance on December 31, 2024	$ 16,402
Accumulated amortization
Balance on January 1, 2024	$ 17,061
Amortization expenses	8,535
Written off	(15,380)
Balance on December 31, 2024	$ 10,216
Carrying amount on December 31, 2024	$ 6,186
	(Concluded)

Computer software costs are amortized on a straight-line basis over one to five years.

15. GOODWILL

	December 31
	2025	2024
Cost
Balance on January 1	$ 366,777	$ 366,777
Balance on December 31	$ 366,777	$ 366,777
Accumulated impairment losses
Balance on January 1	$ 42,180	$ 42,180
Balance on December 31	$ 42,180	$ 42,180
Carrying amount on December 31	$ 324,597	$ 324,597

The Corporation acquired FulFil Tech Co., Ltd. on December 16, 2008 and recognized goodwill of $366,777 thousand. The goodwill mainly arises from the expected benefit from sales growth of electronic components and molding products, and the potential of developing new electronic models.

The recoverable amount of the electronic components and plastic molding department was determined based on a value-in-use calculation that used the cash flow projections in the financial budgets approved by management covering a 5-year period; the discount rates were 9.44% and 9.63% in 2025 and 2024, respectively. Other key assumptions included budgeted revenue and budgeted gross margin. These assumptions were based on the past performance of the cash-generating unit and management's expectations of future market development.

16. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 1,413,000	$ 1,090,000

The range of interest rate on bank loans was 1.86%-1.93% and 1.94%-2.02% per annum as of December 31, 2025 and 2024, respectively.

b. Long-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 28)
Mortgage loans	$ 34,771	$ 39,329
Less: Current portion	(4,642)	(4,558)
	$ 30,129	$ 34,771

The effective interest rate on long-term borrowings was 1.82% on December 31, 2025 and 2024.

17. BONDS PAYABLE

	December 31
	2025	2024
Domestic third unsecured convertible bonds	$ -	$ -
Less: Current portion	$ -	$ -

On September 9, 2021, the Corporation issued 12,000 units of NTD-denominated unsecured convertible corporate bonds with a 0% coupon rate, a 3-years issue period and a total principal amount of $1,200,000 thousand.

The bonds are convertible into ordinary shares of the Corporation at any time on or after December 10, 2021, and prior to September 9, 2024, except during the closed period or suspension period.

The conversion price of bonds is set based on the arithmetic mean of the business day's closing share price multiplied by the 102% premium rate before the effective date on August 20, 2021. As of September 4, 2025, the corporate bonds with a face value of $1,200,000 thousand have been fully converted.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares has exceeded 30% of the current conversion price for 30 consecutive business days, the Corporation may send a copy of the "Bond Redemption Notice" with an expiration date of one month by registered mail, and the expiration date of the period is determined as the base date for the recovery of bonds. The Corporation will redeem the bonds at their par value within 5 business days following the base date.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares is lower than 10% of the original total issue amount, the Corporation will therefore be entitled to send out a 30-day-expiration "Bond Redemption Notice" that is based on names recorded on the bondholder's name list 5 business days prior to the mailing day. The Corporation will redeem the bonds at their par value within 5 business days following the base date.

The convertible bonds contain both liability and equity components: The equity component was presented in equity under the heading of capital surplus - options. The liability components are recognized as liabilities of embedded derivative financial instruments and non-derivative products. Such embedded derivative financial instruments have been assessed at a fair value of $0 thousand; non-derivative product liabilities were measured at $0 thousand as of December 31, 2025 and 2024 based on amortized cost and its effective interest rate originally recognized was 1.0663%.

Proceeds from insurance (less transaction cost of $4,998 thousand)	$ 1,337,453
Equity component	(175,396)
Liability component at the date of issue (including $1,162,417 thousand of bonds payable and $360 thousand of financial asset at FVTPL - non-current)	1,162,057
Interest charged at an effective interest rate of 1.0663%	28,498
Convertible bonds converted into ordinary shares	(1,190,915)
Loss on valuation of financial instruments	360
Liability component on December 31, 2024	$ -

In 2024, the Corporation's third unsecured convertible bonds with a face value of $1,200,000 thousand have all been converted into 20,544.4 thousand ordinary shares.

18. OTHER PAYABLES

	December 31
	2025	2024
Other payables
Payables for salaries or bonuses	$ 188,409	$ 232,995
Others	43,769	98,152
	$ 232,178	$ 331,147

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plans adopted by the Corporation in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Corporation has no right to influence the investment policy and strategy.

The amounts included in the balance sheets in respect of the Corporation's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 21,990	$ 20,281
Fair value of plan assets	(33,360)	(30,738)
Net defined benefit assets	$ (11,370)	$ (10,457)

Movements in net defined benefit assets were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
Balance on January 1, 2024	$ 20,607	$ (27,906)	$ (7,299)
Net interest expense (income)	257	(349)	(92)
Recognized in profit or loss	257	(349)	(92)
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(2,483)	(2,483)
Actuarial (gain) loss
Changes in financial assumptions	(343)	-	(343)
Experience adjustments	(240)	-	(240)
Recognized in other comprehensive income	(583)	(2,483)	(3,066)
Balance on December 31, 2024	20,281	(30,738)	(10,457)
Net interest expense (income)	304	(461)	(157)
Recognized in profit or loss	304	(461)	(157)
			(Continued)

36 -

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Assets
Remeasurement
Return on plan assets (excluding amounts included in net interest)	$ -	$ (2,161)	$ (2,161)
Actuarial (gain) loss
Changes in financial assumptions	301	-	301
Experience adjustments	1,104	-	1,104
Recognized in other comprehensive income	1,405	(2,161)	(756)
Balance on December 31, 2025	$ 21,990	$ (33,360)	$ (11,370) (Concluded)

Through the defined benefit plans under the Labor Standards Act, the Corporation is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rate	1.25%	1.500%
Expected rate of salary increase	1.500%	1.500%
Mortality rate	According to the sixth experience life table of the insurance industry in Taiwan	According to the sixth experience life table of the insurance industry in Taiwan
Turnover rate	0%-7.5%	0%-7.5%

If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
Discount rate
25% increase	$ (301)	$ (333)
25% decrease	$ 310	$ 343
Expected rate of salary increase
25% increase	$ 304	$ 337
25% decrease	$ (297)	$ (330)

The sensitivity analysis presented above may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plans for the next year	$ -	$ -
Average duration of the defined benefit obligation	5.5 years	6.7 years

20. EQUITY

a. Share capital

Ordinary shares

	December 31
	2025	2024
Number of shares authorized (in thousands)	200,000	200,000
Shares authorized	$ 2,000,000	$ 2,000,000
Number of shares issued and fully paid (in thousands)	144,269	144,269
Shares issued	$ 1,442,686	$ 1,442,686

Fully paid ordinary shares, which have a par value of NT$10, carry one vote per shares and right to dividends.

The authorized shares include 3,000 thousand shares allocated for the exercise of employee share options.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note 1)
Issuance of ordinary shares	$ 1,937,386	$ 1,937,386
The difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition	419,969	414,613
Consolidation excess	852,372	852,372
Unclaimed dividends	294	207
May only be used to offset a deficit (Note 2)
Changes in percentage of ownership interests in subsidiaries	166,971	166,971
	$ 3,376,992	$ 3,371,549

Note 1: Such capital surplus, which includes the amount in excess of par value of issued stocks (including the issuance of ordinary shares at the excess premium, the conversion premium of bonds, and the premium of stocks due to the consolidation excess, etc.), unclaimed dividends, and the difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition, may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).

Note 2: Such capital surplus which arises from the effects of changes in ownership interests in subsidiaries may only be used to offset a deficit.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved by the shareholders in their meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 22-c.

As the Corporation is currently in the growth stage, the Corporation considers its industry development and long-term interests of shareholders as well as its programs to maintain operating efficiency and meet its financial goals when determining the distribution of bonuses in shares or cash. The board of directors shall propose allocation ratios every year and propose such allocation ratio at the shareholder’s meeting. For the distribution of bonuses to shareholders, cash dividends are preferred. Distribution of earnings may also be made in the form of share dividends; provided that the ratio of cash dividends distributed is 5% to 100% of the total dividends distributed.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

38 -

When a special reserve is appropriated for cumulative net debit balance reserves from prior period, the special reserve is only appropriated from the prior unappropriated earnings.

The appropriations of earnings for 2024 and 2023 which were approved by the shareholders in their meetings on May 29, 2025 and June 21, 2024, respectively, were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 102,462	$ 64,732
Special reserve	$ (347,048)	$ 101,031
Cash dividends	$ 793,477	$ 578,000
Dividends per share (NT$)	$ 5.50	$ 4.11

The appropriation of earnings for 2025, proposed by the Corporation’s board of directors on March 2, 2026, were as follows:

	For the Year Ended December 31, 2024
Legal reserve	$ 49,837
Special reserve	$ 187,232
Cash dividends	$ 432,806
Dividends per share (NT$)	$ 3.00

The appropriation of earnings and capital surplus for 2025 is subject to the resolution of the shareholders in the shareholders’ meeting to be held on May 29, 2026.

d. Special reserve

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 619,827	$ 518,796
Appropriated special reserve
(Reversals of) debits to other equity items	(347,048)	101,031
Balance on December 31	$ 272,779	$ 619,827

On the initial application of the IFRS Accounting Standards, the net increase arising from the retained earnings was not enough for the special reserve appropriation; thus, the Corporation appropriated a special reserve in the amount of $230,916 thousand, representing the remaining amount in retained earnings that resulted from the conversion to IFRS Accounting Standards. Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRS Accounting Standards. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.

39 -

40 -

21. REVENUES

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from the sale of goods	$ 2,783,552	$ 3,365,190
Other operating revenue	237,208	269,733
	$ 3,020,760	$ 3,634,923

a. Contracts with customers information

See Note 4 (n) for detailed information on contracts with customers

b. Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Trade receivables, net (Note 9)	$ 701,358	$ 323,902	$ 201,953
Trade receivables from related parties (Note 27)	182,551	203,289	212,725
	$ 883,909	$ 527,191	$ 414,678

22. NET PROFIT

a. Other income

	For the Year Ended December 31
	2025	2024
Dividends	$ 10,758	$ 6,569
Others (Note 27)	1,128	929
	$ 11,886	$ 7,498

b. Depreciation, amortization and employee benefits expense:

	For the Year Ended December 31
	2025			2024
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefits expense
Salaries expenses	$ -	$ 228,144	$ 228,144	$ 18,957	$ 308,243	$ 327,200
Labor insurance expenses	-	19,122	19,122	1,923	18,178	20,101
Pension expenses
Defined contribution plan	-	9,309	9,309	967	8,696	9,663
Defined benefit plans	-	(157)	(157)	-	(92)	(92)
Director’s remuneration	-	12,550	12,550	-	22,550	22,550
Other employee benefits	-	9,585	9,585	1,252	9,211	10,463
	$ -	$ 278,553	$ 278,553	$ 23,099	$ 366,786	$ 389,885
Depreciation	$ -	$ 7,465	$ 7,465	$ 3,804	$ 15,668	$ 19,472
Amortization	$ -	$ 7,413	$ 7,413	$ -	$ 8,535	$ 8,535

As of December 31, 2025 and 2024, the Corporation had 211 and 229 employees, respectively, which included 5 directors and 6 directors not concurrently serving as employees, respectively. The average employee benefits expenses were $1,291 thousand and $1,647 thousand, respectively. The average employees' salaries were $1,107 thousand and $1,467 thousand, respectively. The average adjustment of employee salary was (24.5)% which the calculation standard was the same as employee benefits expense.

The remuneration of directors shall be allocated in accordance with the Articles of Incorporation and shall be paid by remuneration committee upon the resolution of the board of directors and reported in the shareholders' meeting. The remuneration is based on the content of work, education, expertise and other standards, and the Corporation's operating conditions. Employees' performance and other factors such as salary increases or bonuses, and remuneration of managers are determined by compensation committee subject to the approval from the board of directors.

c. Compensation of employees and remuneration of directors

According to the Corporation's Articles of Incorporation, the Corporation shall use the current year's pre-tax profit before the distribution of the remuneration to employees and directors to make up for the accumulated loss, and if there is any remaining balance, the Corporation shall appropriate not less than 3% as employees' remuneration and not more than 2% as directors' remuneration. The shareholders of the Corporation resolved the amendments to the Corporation's Articles at their 2025 shareholders meeting. The amendments explicitly stipulate the allocation of 10% of the compensation of employees as compensation distributions for grass-roots employees. The compensation of employees (included grass-roots employees) and the remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Corporation's board of directors on March 2, 2026 and March 7, 2025, respectively, are as follows:

Accrual rate

	For the Year Ended December 31
	2025	2024
Compensation of employees	7.940%	7.181%
Remuneration of directors	1.906%	1.663%
Amount
	For the Year Ended December 31
	2025	2024
	Cash	Cash
Compensation of employees	$ 50,000	$ 95,000
Remuneration of directors	12,000	22,000

If there is a change in the amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The Corporation held board of director's meetings on March 7, 2025 and March 8, 2024 and the meeting resulted in the actual amounts of the compensation of employees and remuneration of directors.

For the Year Ended December 31

	2024		2023
	Compensation of Employees	Remuneration of Directors	Compensation of Employees	Remuneration of Directors
Amounts approved in the board of directors' meeting	$ 95,000	$ 22,000	$ 75,000	$ 17,000
Amounts recognized in the annual financial statements	$ 95,000	$ 22,000	$ 75,000	$ 17,000

There is no difference between the actual amounts of the compensation of employees and remuneration of directors for 2024 and 2023 and recognized in the profit and loss for the years ended December 31, 2024 and 2023.

Information on the compensation of employees and remuneration of directors resolved by the Corporation's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 135,948	$ 88,267
Income tax on unappropriated earnings	23,623	-
Adjustments for prior years	(7,483)	11,157
	152,088	99,424
Deferred tax
In respect of the current year	(81,772)	85,104
Income tax expense recognized in profit or loss	$ 70,316	$ 184,528

A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax	$ 567,732	$ 1,205,889
Income tax expense calculated at the statutory rate	$ 113,546	$ 241,178
Tax-exempt income	(59,370)	(67,807)
Income tax on unappropriated earnings	23,623	-
Adjustments for prior years’ tax	(7,483)	11,157
Income tax expense recognized in profit or loss	$ 70,316	$ 184,528

b. Current tax liabilities

	December 31
	2025	2024
Income tax payable	$ 74,051	$ 48,618

c. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities are as follows:

For the year ended December 31, 2025

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Allowance for exceeding limit	$ 1,300	$ (737)	$ -	$ 563
Allowance for inventory valuation and obsolescence losses	517	(76)	-	441
	$ 1,817	$ (813)	$ -	$ 1,004
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Gain on investments accounted for using the equity method	$ 233,518	$ (73,401)	$ -	$ 160,117
Defined benefit obligations	2,091	32	151	2,274
Unrealized exchange gains	17,641	(9,005)	-	8,636
Financial assets at FVTPL	470	(211)	-	259
	$ 253,720	$ (82,585)	$ 151	$ 171,286

For the year ended December 31, 2024

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Allowance for exceeding limit	$ 1,541	$ (241)	$ -	$ 1,300
Allowance for inventory valuation and obsolescence losses	1,802	(1,285)	-	517
Financial assets at FVTPL	184	(184)	-	-
	$ 3,527	$ (1,710)	$ -	$ 1,817

44 -

Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Gain on investments accounted for using the equity method	$ 152,540	$ 80,978	$ -	$ 233,518
Defined benefit obligations	1,459	19	613	2,091
Unrealized exchange gains	15,714	1,927	-	17,641
Financial assets at FVTPL	-	470	-	470
	$ 169,713	$ 83,394	$ 613	$ 253,720

d. Deductible temporary differences for which no deferred tax assets have been recognized in the balance sheets

	December 31
	2025	2024
Deductible temporary differences	$ 74,995	$ 74,995

The unrecognized deductible temporary differences are goodwill amortization and excess loss allowance.

e. Income tax assessments

The income tax returns of the Corporation except for those for 2022 and 2024, have been assessed and cleared by the tax authorities.

24. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Earnings used in the computation of basic earnings per share	$ 497,416	$ 1,021,361
Effect of potentially dilutive ordinary shares
Interest on convertible bonds	-	666
Earnings used in the computation of diluted earnings per share	$ 497,416	$ 1,022,027

The weighted average number of ordinary shares outstanding (in thousands of shares) is as follows:

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	144,269	143,177
Effect of potentially dilutive ordinary shares
Convertible bonds	-	1,092
Compensation of employees	866	1,209
Weighted average number of ordinary shares used in the computation of diluted earnings per share	145,135	145,478

The Corporation may settle the compensation paid to employees in cash or shares; therefore, the Corporation assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

25. CAPITAL MANAGEMENT

The Corporation manages its capital to ensure that entities in the Corporation will be able to continue as going concerns while maximizing the return to stockholders through the optimization of the debt and equity balance.

The strategy for managing the capital structure of the Corporation is based on the scale of the business, the future growth of the industry and the blueprints of the products' development. The Corporation calculates trading fund and cash based on its production capacity in order to have a long-term and completed plan. The Corporation takes into account product competition to estimate the products' contribution, operating profit margin and cash flow. It also considers the business cycle and the product's life cycle and risks when deciding the appropriate capital structure.

Key management personnel of the Corporation review the capital structure on a regular basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Generally, the Corporation uses a cautious risk management strategy.

26. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The Corporation's management believes that the carrying amounts of financial assets and financial liabilities not measured at fair value are close to their fair values, as their maturities are near or future cash flows are expected to approximate their carrying amounts.

45 -

b. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Listed shares	$ 202,603	$ -	$ -	$ 202,603
Emerging market shares	-	-	22,864	22,864
Domestic unlisted shares	-	-	20,952	20,952
Overseas unlisted shares	-	-	17,472	17,472
Private funds	-	-	14,840	14,840
	$ 202,603	$ -	$ 76,128	$ 278,731

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Listed shares	$ 171,728	$ -	$ -	$ 171,728
Emerging market shares	7,858	-	22,726	30,584
Domestic unlisted shares	-	-	19,928	19,928
Overseas unlisted shares	-	-	22,345	22,345
Private funds	-	-	14,898	14,898
	$ 179,586	$ -	$ 79,897	$ 259,483

There were no transfers between Levels 1 and 2 in the current and prior years.

2) Reconciliation of Level 3 fair value measurements of financial instruments

The financial assets which is measured by the third level of fair value is FVTPL.

Reconciliation of Level 3 fair value measurements of financial instruments in 2025 and 2024.

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 79,897	$ 73,574
Recognized in profit or loss (included in net (loss) gain on fair value changes of financial instruments at FVTPL)	(2,024)	5,898
Purchases	2,884	6,755
Refund of capital reduction	(4,629)	(6,330)
Balance on December 31	$ 76,128	$ 79,897

3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instrument	Valuation Technique and Inputs
Domestic third unsecured convertible bonds	Under the assumption that bonds will be redeemed on September 9, 2024, discount rate adopted is calculated via interpolation method using government bond yield rates from public offer 2-year and 5- year period.

4) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair values of emerging market shares are measured using the market approach, while the fair values of domestic and overseas unlisted shares and private funds are measured using the asset approach.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Mandatorily classified as at FVTPL	$ 278,731	$ 259,483
Financial assets at amortized cost (Note 1)	1,338,013	2,049,922
Financial liabilities
Financial liabilities at amortized cost (Note 2)	2,806,938	2,919,140

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, trade receivables, other receivables and refundable deposits.

Note 2: The balances include financial liabilities at amortized cost, which comprise trade payables, other payables less salaries payable, short-term borrowings, long-term borrowings, current portion of long-term borrowings and guarantee deposits received.

d. Financial risk management objectives and policies

The Corporation's major financial instruments include cash and cash equivalents, financial assets mandatorily classified as at FVTPL, financial assets at amortized costs, equity investment, trade receivables, trade payables, borrowings and lease liabilities. The Corporation's corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Corporation through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Corporation's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

There has been no change to the Corporation's exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

The Corporation has foreign currency sales and purchases, which exposes the Corporation to foreign currency risk.

The carrying amounts of the Corporation’s foreign currency-denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 29.

Sensitivity analysis

The Corporation is mainly exposed to the USD and RMB.

The following table details the Corporation’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency-denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and their translation was adjusted at the end of the reporting period for a 1% change in foreign currency rates. A negative number below indicates a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be positive.

	USD Impact		RMB Impact
	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Equity	$ 3,090	$ 488	$ (881)	$ (1,424)

This was mainly attributable to the exposure on outstanding receivables and payables in USD and RMB which were not hedged at the end of the reporting period.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign currency risk because the exposure at the end of the reporting period did not reflect the exposure during the period.

b) Interest rate risk

The Corporation is exposed to interest rate risk because the Corporation borrows funds at both fixed and floating interest rates.

The carrying amounts of the Corporation’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 62,860	$ 590,130
Financial liabilities	1,448,410	1,130,169
Cash flow interest rate risk
Financial assets	371,843	450,174

49 -

Sensitivity analysis

The sensitivity analysis below was determined based on the Corporation’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding at the end of the reporting period. A 100-basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 100-basis points higher/lower and all other variables were held constant, the Corporation’s pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $3,718 thousand and $4,502 thousand, respectively, which was mainly attributable to the Corporation’s exposure to interest rates on its variable-rate deposits.

c) Other price risk

The Corporation was exposed to equity price risk through its investments in domestic listed shares, domestic emerging market shares, domestic and overseas unlisted shares and private funds. In addition, the Corporation has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower, pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $2,787 thousand and $2,595 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Corporation. As at the end of the reporting period, the Corporation’s maximum exposure to credit risk, which would cause a financial loss to the Corporation due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Corporation, could be equal to the total of the carrying amount of the respective recognized financial assets as stated in the balance sheets.

In order to reduce credit risk, the management team of the Corporation designated a special team to decide the credit ratings of counterparties and other monitoring procedures to make sure there are appropriate actions taken to collect the overdue receivables. Additionally, on each balance sheet date, the Corporation reviews the recoverable amounts to ensure appropriate allowances have been made for doubtful accounts. Therefore, the Corporation considers its credit risk to be significantly reduced.

The Corporation continuously assesses the financial conditions of customers with outstanding receivables.

As the counterparties of the Corporation are financial institutions and companies with good credit ratings, the Corporation has limited credit risk.

50 -

3) Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants. The Corporation has enough operating capital to comply with all contractual obligations with loan covenants; therefore, there is no liquidity risk due to the inability to raise funds to meet contractual obligations.

The Corporation relies on bank borrowings as a significant source of liquidity. The Corporation had available unutilized bank loan facilities set out in below.

Financing facilities

	December 31
	2025	2024
Unsecured bank overdraft facilities, reviewed annually:
Amount used	$ 1,413,000	$ 1,090,000
Amount unused	1,787,000	2,010,000
	$ 3,200,000	$ 3,100,000
Secured bank overdraft facilities
Amount used	$ 34,771	$ 39,329
Amount unused	-	-
	$ 34,771	$ 39,329

TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Corporation and other related parties are disclosed below.

a. Related party name and category

Related Party Name	Related Party Category
Grand Advance Inc.	Subsidiary
Syncmold Enterprise (Samoa) Corp.	Subsidiary
Syncmold Enterprise (USA) Corp.	Subsidiary
Syncmold Enterprise Vietnam Co., Ltd.	Subsidiary
Syncmold Enterprise (Singapore) Pte. Ltd.	Subsidiary
Syncmold Enterprise (Malaysia) Sdn., Bhd.	Subsidiary
SynX Tech Co., Ltd.	Subsidiary
Leohab Enterprise Co., Ltd.	Subsidiary
Gatetech Technology Inc.	Subsidiary
Gatetech (Suzhou) Technology Co., Ltd.	Sub-subsidiary
Fuzhou Fulfil Tech Co., Ltd.	Sub-subsidiary
Fujian Khuan Hua Precise Mold Co., Ltd.	Sub-subsidiary
Chongqing Fulfil Tech Co., Ltd.	Sub-subsidiary
Forever Business Development Limited	Sub-subsidiary
	(Continued)

Related Party Name

Related Party Category

Suzhou Fulfil Electronics Co., Ltd.
Zhongshan Fulfil Tech. Co., Ltd
Suzhou Leoho Electronics Co., Ltd.
Commuwell Enterprise (Thailand) Co., Ltd.
Smart Automation Technology Inc.
Chen Chien Yuan
Chen Chien Hung

Sub-subsidiary
Sub-subsidiary
Sub-subsidiary
Sub-subsidiary
Associate
The Corporation's director
Related party in substance (first-degree
relative of the Corporation's director)
(Concluded)

b. Sales of goods

Line Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Sales	Subsidiaries	$ 84,661	$ 103,626
	Sub-subsidiary	-	3,138
		84,661	106,764
Other operating revenue	Sub-subsidiary
- royalty	Suzhou Fulfil Electronics Co., Ltd.	90,754	101,784
	Fuzhou Fulfil Tech Co., Ltd.	55,279	81,846
	Zhongshan Fulfil Tech. Co., Ltd.	50,950	58,937
		196,983	242,567
Other operating revenue	Subsidiaries	17,788	4,440
- service income	Sub-subsidiary
	Gatetech (Suzhou) Technology Co., Ltd.	18,332	18,751
	Others	4,105	3,281
		22,437	26,472
		$ 40,225	$ 375,803

The transaction prices and terms of collection between the Corporation and its related parties are the same as the non-related parties, except for the royalty income and service income which is based on that stated in the agreements.

c. Purchases of goods

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Subsidiaries
Leohab Enterprise Co., Ltd.	$ 306,594	$ 550
Syncmold Enterprise (Vietnam) Corp.	108,427	27,415
Others	12,727	437
Sub-subsidiary
Zhongshan Fulfil Tech. Co., Ltd	934,280	885,574
Suzhou Fulfil Electronics Co., Ltd.	553,241	882,211
Fuzhou Fulfil Tech Co., Ltd.	306,809	456,243
Chongqing Fulfil Tech Co., Ltd.	239,555	222,878
Others	130	314,571
	$ 2,461,763	$ 2,789,879

Purchases from related parties had no material differences in price or payment terms compared to transactions with unrelated parties.

d. Operating costs - manufacturing expense

	For the Year Ended December 31
Related Party Category	2025	2024
Associates	$ -	$ 42
e. Operating expenses
	For the Year Ended December 31
Related Party Category	2025	2024
Subsidiaries	$ 9,331	$ 10,873
Sub-subsidiary	-	125
	$ 9,331	$ 10,998
f. Leases agreements
	For the Year Ended December 31
Related Party Category	2025	2024
Lease expense
Related parties in substance	$ 1,680	$ 1,400
The Corporation’s director	912	760
	$ 2,592	$ 2,160

The rental amounts agreed in lease contracts between the Corporation and other related parties are determined based on market prices and general payment terms.

g. Receivables from related parties (excluding loans to related parties)

Line Item	Related Party Category/Name	December 31
		2025	2024
Trade receivables	Subsidiaries	$ 52,818	$ 41,477
	Sub-subsidiary
	Zhongshan Fulfil Tech. Co., Ltd	53,198	59,595
	Suzhou Fulfil Electronics Co., Ltd.	44,176	52,908
	Others	32,359	49,309
		$ 182,551	$ 203,289
Other receivables	Subsidiaries
	Gatetech Technology Inc.	$ -	$ 9,132
	Others	95	109
		$ 95	$ 9,241

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2025 and 2024, no allowance loss was recognized for trade receivables from related parties.

Other receivables between the Corporation and its related parties are mainly from service fee and equipment purchase payments. The Corporation recognizes the transactions that have not been paid to the suppliers as other payables.

h. Payables to related parties (excluding loans from related parties)

Line Item	Related Party Category/Name	December 31
		2025	2024
Trade payables	Subsidiaries
	Leohab Enterprise Co., Ltd.	$ 162,651	$ -
	Others	11,041	7,811
	Sub-subsidiary
	Suzhou Fulfil Electronics Co., Ltd.	249,324	531,727
	Zhongshan Fulfil Tech. Co., Ltd.	602,362	541,271
	Fuzhou Fulfil Tech Co., Ltd.	77,852	216,243
	Suzhou Leoho Electronics Co., Ltd.	-	199,429
	Others	78,311	86,345
		$ 1,181,541	$ 1,582,826
Other payables	Subsidiaries	$ 7,415	$ 5,317
	Sub-subsidiary	-	131
	Associates	-	3
		$ 7,415	$ 5,451

The outstanding trade payables to related parties are unsecured and would be repaid in cash.

i. Disposal of property, plant and equipment

	Proceeds		Gain (Loss) on Disposal
Related Party Category/Name	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Subsidiaries	$ 8,895	$ -	$ -	$ -

j. Loans to related parties

	For the Year Ended December 31
Related Party Category/Name	2025	2024
Interest revenue
Subsidiaries	$ 48	$ -
Other receivables
Subsidiaries
Financing	$ 13,000	$ -
Interest receivable	48	-
	$ 13,048	$ -

The Corporation provided Gatetech Technology Inc. with unsecured short-term loans at an interest rate of 2.18% for the year ended December 31, 2025.

k. Loans from related parties

	December 31
Related Party Category/Name	2025	2024
Other payables
Subsidiaries
Syncmold Enterprise (Samoa) Corp.	$ 94,290	$ 98,355
Forever Business Development Limited	31,430	-
	$ 125,720	$ 98,355

The interest rate of short-term borrowings from related parties was 0% in 2025 and 2024.

l. Endorsements and guarantees

	December 31
Related Party Category/Name	2025	2024
Subsidiaries
Amount endorsed	$ 1,443,847	$ 1,320,799
Amount utilized	$ 331,305	$ 192,549

m. Non-operating income

Line Item	Related Party Category/Name	December 31
		2025	2024
Service fee income for endorsement guarantee	Subsidiaries	$ 192	$ 325

n. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 32,222	$ 41,148
Post-employment benefits	386	331
	$ 32,607	$ 41,479

The remuneration of directors and key executives, as determined by the remuneration committee, was based on the performance of individuals and market trends.

55 -

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings:

	December 31
	2025	2024
Property, plant and equipment	$ 75,121	$ 75,526

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Corporation’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Corporation and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

December 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 32,483	31.43 (USD:NTD)	$ 1,020,941
RMB	29,131	4.496 (RMB:NTD)	130,973
Non-monetary items
Subsidiaries accounted for using the equity method
USD	178,767	31.43 (USD:NTD)	5,618,645
Financial assets at FVTPL - non-current
USD	556	31.43 (USD:NTD)	17,472
Financial liabilities
Monetary items
USD	42,313	31.43 (USD:NTD)	1,329,898
RMB	9,532	4.496 (RMB:NTD)	42,856
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 49,508	32.785 (USD:NTD)	$ 1,623,120
RMB	46,263	4.478 (RMB:NTD)	207,166
Non-monetary items
Subsidiaries accounted for using the equity method
USD	187,771	32.785 (USD:NTD)	6,156,077
Financial assets at FVTPL - non-current
USD	682	32.785 (USD:NTD)	22,345
			(Continued)

56 -

	Foreign Currency	Exchange Rate	Carrying Amount
Financial liabilities
Monetary items
USD	$ 50,998	32.785 (USD:NTD)	$ 1,671,969
RMB	14,456	4.478 (RMB:NTD)	64,734
			(Concluded)

The significant realized and unrealized foreign exchange gains (losses) were as follows:

	For the Year Ended December 31
	2025		2024
Foreign Currency	Exchange Rate	Net Foreign Exchange Gains (Losses)	Exchange Rate	Net Foreign Exchange Gains (Losses)
USD	31.18 (USD:NTD)	$ (5,891)	32.112 (USD:NTD)	$ 18,152
RMB	4.333 (RMB:NTD)	2,733	4.454 (RMB:NTD)	3,008
Others		(1,310)		1,192
		$ (4,468)		$ 22,352

30. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and investees:

1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Material marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (None)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)

b. Information on significant investees (Table 5)
c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 6)

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Tables 1, 3 and 4):

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.

c) The amount of property transactions and the amount of the resultant gains or losses.

d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to the financing of funds.

f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.

57 -

TABLE 1

SYNCMOLD ENTERPRISE CORPORATION

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Notes 1 and 2)	Ending Balance (Notes 1 and 2)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
0	Syncmold Enterprise Corporation	Grand Advance Inc.	Other receivables from related parties	Yes	$ 100,000	$ 100,000	$ -	-	Short-term financing	$ -	Operating capital	$ -	-	-	$ 1,450,804 (20% of the net worth of the Corporation)	$ 2,901,608 (40% of the net worth of the Corporation)
		Syncmold Enterprise (Samos) Corp.	Other receivables from related parties	Yes	100,000	100,000	-	-	Short-term financing	-	Operating capital				1,450,804 (20% of the net worth of the Corporation)	2,901,608 (40% of the net worth of the Corporation)
		Gaistech Technology Inc.	Other receivables from related parties	Yes	100,000	100,000	-	-	Short-term financing	-	Operating capital				1,450,804 (20% of the net worth of the Corporation)	2,901,608 (40% of the net worth of the Corporation)
		Leohab Enterprise Co., Ltd.	Other receivables from related parties	Yes	100,000	100,000	-	-	Short-term financing	-	Operating capital				1,450,804 (20% of the net worth of the Corporation)	2,901,608 (40% of the net worth of the Corporation)
		Commawell Enterprise (Thailand) Co., Ltd.	Other receivables from related parties	Yes	50,000	-	-	-	Short-term financing	-	Operating capital				1,450,804 (20% of the net worth of the Corporation)	2,901,608 (40% of the net worth of the Corporation)
		Syncmold Enterprise (THAILAND) Co., Ltd.	Other receivables from related parties	Yes	80,000	80,000	-	-	Short-term financing	-	Operating capital				1,450,804 (20% of the net worth of the Corporation)	2,901,608 (40% of the net worth of the Corporation)
		SynX Tech Co., Ltd.	Other receivables from related parties	Yes	50,000	50,000	13,000	2.18	Short-term financing	-	Operating capital				1,450,804 (20% of the net worth of the Corporation)	2,901,608 (40% of the net worth of the Corporation)
1	Grand Advance Inc.	Syncmold Enterprise (USA) Corp.	Other receivables from related parties	Yes	22,001	15,715	-	-	Short-term financing	-	Operating capital	-	-	-	667,924 (20% of the net worth of Grand Advance Inc.)	1,669,811 (50% of the net worth of Grand Advance Inc.)
2	Syncmold Enterprise (Samos) Corp.	Syncmold Enterprise Corporation	Other receivables from related parties	Yes	188,580	188,580	94,290	0.00	Short-term financing	-	Operating capital	-	-	-	459,951 (20% of the net worth of Syncmold Enterprise (Samos) Corp.)	1,149,879 (50% of the net worth of Syncmold Enterprise (Samos) Corp.)
		Chongqing Fulfil Tech Co., Ltd.	Other receivables from related parties	Yes	110,005	-	-	2.00	Short-term financing	-	Operating capital	-	-	-	459,951 (20% of the net worth of Syncmold Enterprise (Samos) Corp.)	1,149,879 (50% of the net worth of Syncmold Enterprise (Samos) Corp.)
		Grand Advance Inc.	Other receivables from related parties	Yes	94,290	94,290	-	-	Short-term financing	-	Operating capital				459,951 (20% of the net worth of Syncmold Enterprise (Samos) Corp.)	1,149,879 (50% of the net worth of Syncmold Enterprise (Samos) Corp.)

(Continued)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Notes 1 and 2)	Ending Balance (Notes 1 and 2)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
		Fuliking Development Limited	Other receivables from related parties	Yes	$ 71,189	$ 71,189	$ 71,189	0.00	Short-term financing	$ -	Operating capital	$ -	-	-	$ 459,951 (20% of the net worth of Synemold Enterprise (Samsa) Corp.)	$ 1,149,879 (50% of the net worth of Synemold Enterprise (Samsa) Corp.)
3	Forever Business Development Limited	Synemold Enterprise Corporation	Other receivables from related parties	Yes	31,430	31,430	31,430	0.00	Short-term financing	-	Operating capital	-	-	-	63,125 (20% of the net worth of the Company)	157,812 (50% of the net worth of the Company)
4	Fazhou Fulfil Tech Co., Ltd.	Fujian Khuan Hua Precise Mold Co., Ltd.	Other receivables from related parties	Yes	22,358	22,358	-	-	Short-term financing	-	Operating capital	-	-	-	212,079 (20% of the net worth of Fazhou Fulfil Tech Co., Ltd.)	530,197 (50% of the net worth of Fazhou Fulfil Tech Co., Ltd.)
		Faging Fagan Electronic Hardware Tech Co., Ltd.	Other receivables from related parties	Yes	31,301	31,301	-	-	Short-term financing	-	Operating capital	-	-	-	212,079 (20% of the net worth of Fazhou Fulfil Tech Co., Ltd.)	530,197 (50% of the net worth of Fazhou Fulfil Tech Co., Ltd.)
		Chongqing Fulfil Tech Co., Ltd.	Other receivables from related parties	Yes	26,830	26,830	-	-	Short-term financing	-	Operating capital	-	-	-	212,079 (20% of the net worth of Fazhou Fulfil Tech Co., Ltd.)	530,197 (50% of the net worth of Fazhou Fulfil Tech Co., Ltd.)
5	Suzhou Fulfil Electronics Co., Ltd.	Kunzhan Fulfil Tech Co., Ltd.	Other receivables from related parties	Yes	35,773	35,773	-	-	Short-term financing	-	Operating capital	-	-	-	379,783 (20% of the net worth of Suzhou Fulfil Electronics Co., Ltd.)	949,459 (50% of the net worth of Suzhou Fulfil Electronics Co., Ltd.)
6	Zhongshan Fulfil Tech. Co., Ltd.	Dongguan Khuan Huang Precise Mold Plastic Co., Ltd.	Other receivables from related parties	Yes	35,773	35,773	-	-	Short-term financing	-	Operating capital	-	-	-	234,758 (20% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.)	586,896 (50% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.)

Note 1: The authorized of loans was approved by the board of directors.
Note 2: The highest balance, ending balance, and the actual amount borrowed were calculated based on the exchange rate at the end of 2025.

(Concluded)

TABLE 2

SYNCMOLD ENTERPRISE CORPORATION

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorsee/Guarantee		Limit on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	Syncmold Enterprise Corporation	Gatetech Technology Inc.	Subsidiary	$ 1,450,804 (20% of the net worth of the Corporation)	$ 200,000	$ 200,000	$ 100,000	$ -	2.76	$ 3,627,010 (50% of the net worth of the Corporation)	Y	N	N
		Leohab Enterprise Co., Ltd.	Subsidiary	1,450,804 (20% of the net worth of the Corporation)	485,000	485,000	150,000	-	6.69	3,627,010 (50% of the net worth of the Corporation)	Y	N	N
		Syncmold Enterprise Vietnam Co., Ltd.	Subsidiary	2,176,206 (30% of the net worth of the Corporation)	628,600 (US$ 20,000 thousand)	628,600 (US$ 20,000 thousand)	81,305	-	8.67	3,627,010 (50% of the net worth of the Corporation)	Y	N	N
		Commuwell Enterprise (Thailand) Co., Ltd.	Sub-subsidiary	2,176,206 (30% of the net worth of the Corporation)	130,247 (THB 130,000 thousand)	130,247 (THB 130,000 thousand)	-	-	1.80	3,627,010 (50% of the net worth of the Corporation)	Y	N	N

60 -

TABLE 3

SYNCMOLD ENTERPRISE CORPORATION

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Kunshan Fulfil Tech Co., Ltd.	Suzhou Fulfil Electronics Co., Ltd.	Indirect subsidiary	Sales	$ (225,709)	(99)	Note	$ -	-	$ 49,926	99
Fuqing Fuqun Electronic Hardware Tech Co., Ltd.	Fuzhou Fulfil Tech Co., Ltd.	Indirect subsidiary	Sales	(169,862)	(39)	Note	-	-	10,544	12
Fuqing Fuqun Electronic Hardware Tech Co., Ltd.	Suzhou Fulfil Electronics Co., Ltd.	Indirect subsidiary	Sales	(102,548)	(24)	Note	-	-	19,605	23
Dongguan Khuan Huang Precise Mold Plastic Co., Ltd.	Syncmold Enterprise Vietnam Co., Ltd.	Indirect subsidiary	Sales	(111,440)	(33)	Note	-	-	52,160	48
Fuzhou Fulfil Tech Co., Ltd.	Syncmold Enterprise Corporation	Ultimate parent entity	Sales	(306,809)	(22)	Note	-	-	77,852	18
	Syncmold Enterprise (THAILAND) Co., Ltd.	Indirect subsidiary	Sales	(249,910)	(18)	Note	-	-	99,678	23
Zhongshan Fulfil Tech. Co., Ltd.	Syncmold Enterprise Corporation	Ultimate parent entity	Sales	(934,280)	(71)	Note	-	-	602,362	81
Suzhou Fulfil Electronics Co., Ltd.	Syncmold Enterprise Corporation	Ultimate parent entity	Sales	(553,241)	(24)	Note	-	-	249,324	30
Chongqing Fulfil Tech Co., Ltd.	Syncmold Enterprise Corporation	Ultimate parent entity	Sales	(239,555)	(76)	Note	-	-	78,311	78
Leohab Enterprise Co., Ltd.	Syncmold Enterprise Corporation	Parent company	Sales	(306,594)	(56)	Note	-	-	162,651	69
Syncmold Enterprise Vietnam Co., Ltd.	Syncmold Enterprise Corporation	Parent company	Sales	(108,427)	(9)	Note	-	-	10,132	2
Suzhou Leoho Electronics Co., Ltd.	Commuwell Enterprise (Thailand) Co., Ltd.	Indirect subsidiary	Sales	(335,883)	(33)	Note	-	-	252,131	50
	Leohab Enterprise Co., Ltd.	Indirect subsidiary	Sales	(294,178)	(29)	Note	-	-	143,631	28
Suzhou Fulfil Electronics Co., Ltd.	Kunshan Fulfil Tech Co., Ltd.	Indirect subsidiary	Purchases	225,709	12	Note	-	-	(49,926)	(13)
Fuzhou Fulfil Tech Co., Ltd.	Fuqing Fuqun Electronic Hardware Tech Co., Ltd.	Indirect subsidiary	Purchases	169,862	14	Note	-	-	(10,544)	(5)
Suzhou Fulfil Electronics Co., Ltd.	Fuqing Fuqun Electronic Hardware Tech Co., Ltd.	Indirect subsidiary	Purchases	102,548	6	Note	-	-	(19,605)	(5)
Syncmold Enterprise Vietnam Co., Ltd.	Dongguan Khuan Huang Precise Mold Plastic Co., Ltd.	Indirect subsidiary	Purchases	111,440	10	Note	-	-	(52,160)	(14)
Syncmold Enterprise Corporation	Fuzhou Fulfil Tech Co., Ltd.	Sub-subsidiary	Purchases	306,809	12	Note	-	-	(77,852)	(7)
Syncmold Enterprise (THAILAND) Co., Ltd.	Fuzhou Fulfil Tech Co., Ltd.	Indirect subsidiary	Purchases	249,910	92	Note	-	-	(99,678)	(93)
Syncmold Enterprise Corporation	Zhongshan Fulfil Tech. Co., Ltd.	Sub-subsidiary	Purchases	934,280	37	Note	-	-	(602,362)	(51)
	Suzhou Fulfil Electronics Co., Ltd.	Sub-subsidiary	Purchases	553,241	22	Note	-	-	(249,324)	(21)
	Chongqing Fulfil Tech Co., Ltd.	Sub-subsidiary	Purchases	239,555	10	Note	-	-	(78,311)	(7)
	Leohab Enterprise Co., Ltd.	Subsidiary	Purchases	306,594	12	Note	-	-	(162,651)	(14)
	Syncmold Enterprise Vietnam Co., Ltd.	Subsidiary	Purchases	108,427	4	Note	-	-	(10,132)	(1)
Commuwell Enterprise (Thailand) Co., Ltd.	Suzhou Leoho Electronics Co., Ltd.	Indirect subsidiary	Purchases	335,883	59	Note	-	-	(252,131)	(87)
Leohab Enterprise Co., Ltd.	Suzhou Leoho Electronics Co., Ltd.	Indirect subsidiary	Purchases	294,178	66	Note	-	-	(143,631)	(74)

Note: Payment terms are the same as the payment terms of non-related parties.

TABLE 4

SYNCMOLD ENTERPRISE CORPORATION

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance (Note)	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Zhongshan Fulfil Tech. Co., Ltd.	Syncmold Enterprise Corporation	Ultimate parent entity	$ 602,362	-	$ -	-	$ 156,219	$ -
Suzhou Fulfil Electronics Co., Ltd.	Syncmold Enterprise Corporation	Ultimate parent entity	249,324	-	-	-	87,932	-
Leohab Enterprise Co., Ltd.	Syncmold Enterprise Corporation	Parent entity	162,651	-	-	-	83,005	-
Suzhou Leoho Electronics Co., Ltd.	Leohab Enterprise Co., Ltd.	Indirect subsidiary	143,631	-	-	-	55,221	-
	Commuwell Enterprise (Thailand) Co., Ltd.	Indirect subsidiary	252,131	-	-	-	46,910	-

TABLE 5

SYNCMOLD ENTERPRISE CORPORATION

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
Syncmold Enterprise Corporation	Grand Advance Inc.	Samoa	General investment business	$ 506,240	$ 506,240	-	100.00	$ 3,338,528	$ 155,249	$ 155,588	(Note 1)
	Syncmold Enterprise (Samoa) Corp.	Samoa	General investment business	110,598	110,598	3,546	100.00	2,280,117	71,315	61,068	(Note 1)
	Syncmold Enterprise (USA) Corp.	USA	Trading, import and export in electronic parts	32	32	-	100.00	(8,621)	(1,011)	(1,011)	(Note 1)
	High Grade Tech Co., Ltd.	Taiwan	The design and sale of television hangers and related import and export businesses	36,075	36,075	2,280	35.63	197,700	61,180	21,436	(Note 1)
	Smart Automation Technology Inc.	Taiwan	Software design services	21,197	21,197	2,120	47.11	17,121	6,709	3,124	(Note 1)
	Leohab Enterprise Co., Ltd.	Taiwan	Precision hardware components manufacturing	332,534	332,534	32,109	80.22	705,864	230,754	217,799	(Note 1)
	Gatech Technology Inc.	Taiwan	Precision molding and magnesium alloy die caster manufacturing and transaction business	568,271	558,109	43,650	75.94	616,437	(66,420)	(51,276)	(Note 1)
	SynX Tech Co., Ltd.	Taiwan	Electronic parts processing manufacturing, trading and related import and export business	50,000	50,000	5,000	100.00	39,914	(10,016)	(10,016)	(Note 1)
	Syncmold Enterprise Vietnam Co., Ltd.	Vietnam	Electronic parts processing manufacturing, trading and related import and export business	579,944	579,944	-	100.00	685,325	73,386	73,380	(Note 1)
	Syncmold Enterprise (Malaysia) Sdn. Bhd.	Malaysia	The trading, imports and exports of electronic parts and customer support & service center	7,192	7,192	-	100.00	2,877	313	313	(Note 1)
	Syncmold Enterprise (Singapore) Pte., Ltd.	Singapore	The trading, imports and exports of electronic parts and products design	1,100	1,100	-	100.00	6,959	186	186	(Note 1)
	Syncmold Enterprise (Thailand) Co., Ltd.	Thailand	Electronic parts processing manufacturing, trading and related import and export business	354,047	75,155	3,788	100.00	331,638	(8,491)	(8,491)	(Note 1)
	Syncmold DONG NAI Company Limited	Vietnam	Electronic parts processing manufacturing, trading and related import and export business	93,240	-	-	100.00	91,587	(1,143)	(1,143)	(Note 1)
Grand Advance Inc.	Canford International Limited	Samoa	General investment business	119,342	119,342	-	100.00	1,898,804	203,121	202,993	(Note 1)
	Fullking Development Limited	Hong Kong	General investment business	160,175	160,175	-	100.00	1,102,638	5,002	5,002	(Note 1)
	Full Glary Holding Limited	Hong Kong	General investment business	259,720	259,720	-	100.00	274,492	(26,074)	(25,608)	(Note 1)
Syncmold Enterprise (Samoa) Corp.	Forever Business Development Limited	Samoa	General investment business	125,957	125,957	-	100.00	314,834	24,251	24,817	(Note 1)
	Full Celebration Limited	Samoa	General investment business	147,710	147,710	-	100.00	153,832	21,602	21,602	(Note 1)
Gatech Technology Inc.	Gatech Holding Ltd.	Samoa	General investment business	647,041	647,041	20,130	100.00	577,595	(25,876)	(25,876)	(Note 1)
Gatech Holding Ltd.	Gatech International Ltd.	Samoa	General investment business	657,284	657,284	20,268	100.00	577,595	(25,876)	(25,876)	(Note 1)
Leohab Enterprise Co., Ltd.	Sweet International Group Ltd.	British Virgin Islands	General investment business	147,834	147,834	5,868	100.00	705,275	208,300	188,651	(Note 1)
	Commawell Enterprise (Thailand) Co., Ltd.	Thailand	Plastic shot and hardware components manufacturing	141,564	141,564	1,450	100.00	323,180	46,911	46,911	(Note 1)
Sweet International Group Ltd.	Lucky King Holdings Ltd.	Mauritius	General investment business	147,834	147,834	5,868	100.00	724,922	208,300	208,300	(Note 1)

Note 1: Calculated based on the audited financial statements of the investee company and the Corporation's shareholding ratio.
Note 2: Refer to Table 6 for related information on investees from mainland China.

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025
					Outward	Inward
Fuzhou Fulfill Tech Co., Ltd.	Electronic parts processing and manufacturing. Trading and related import and export business	$ 43,335	Invested through Syncmold Enterprise (Samoa) Corp.	$ 65,469 (US$ 2,083 thousand)	$ -	$ -	$ 65,469 (US$ 2,083 thousand)	$ 35,938	100.00	$ 30,960	$ 1,050,139	$ 2,747,045 (US$ 87,402 thousand)
Fujian Khuan Hua Precise Mold Co., Ltd.	Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds	110,961	Invested through Syncmold Enterprise (Samoa) Corp.	42,619 (US$ 1,356 thousand)	-	-	42,619 (US$ 1,356 thousand)	35,967	100.00	36,914	295,449	-
Fuqing Fuqun Electronic Hardware Tech Co., Ltd.	Electronic parts processing and manufacturing. Trading and related import and export business	59,135	Invested through Syncmold Enterprise (Samoa) Corp.	-	-	-	-	19,039	100.00	18,923	207,158	122,514 (US$ 3,898 thousand)
Dongguan Khuan Huang Precise Mold Plastic Co., Ltd.	Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds	125,386	Invested through Forever Business Development Limited	-	-	-	-	20,566	100.00	18,454	203,838	86,118 (US$ 2,740 thousand)
Suzhou Fulfill Electronics Co., Ltd.	Electronic parts processing and manufacturing. Trading and related import and export business	18,506	Invested through Canford International Limited	-	-	-	-	203,121	100.00	203,320	1,898,917	1,602,553 (US$ 50,988 thousand)
Zhongshan Fulfill Tech. Co., Ltd.	Electronic parts processing and manufacturing. Trading and related import and export business	152,604	Invested through Fullking Development Limited	-	-	-	-	4,935	100.00	4,947	1,173,792	2,021,389 (US$ 64,314 thousand)
Kunshan Fulfill Tech Co., Ltd.	Manufacturing and assembling of laptops uses precise bearing, hardware and related accessories	234,336	Invested through Full Glary Holding Limited	188,580 (US$ 6,000 thousand)	-	-	188,580 (US$ 6,000 thousand)	(26,074)	100.00	(25,608)	274,537	-
Chongqing Fulfill Tech Co., Ltd.	The processing, manufacturing, related imports and exports of all electronic, plastic and hardware parts	139,310	Invested through Full Celebration Limited	-	-	-	-	21,602	100.00	21,712	153,820	569,637 (US$ 18,124 thousand)
Gatetech (Suzhou) Technology Co., Ltd.	Aluminum and magnesium alloy manufacturing and trading	726,502	Invested through Gatech International Ltd.	763,749 (US$ 24,300 thousand)	-	-	763,749 (US$ 24,300 thousand)	(25,876)	75.94	(19,556)	577,595	-
Suzhou Leoho Electronics Co., Ltd.	Precision hardware components manufacturing	206,690	Invested through Lucky King Holdings Ltd.	140,744 (US$ 4,478 thousand)	-	-	140,744 (US$ 4,478 thousand)	208,300	80.22	185,655	724,922	89,607 (US$ 2,851 thousand)

(Continued)

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by the Investment Commission, MOEA
$1,435,565
(US$45,675 thousand)	$2,434,033
(US$77,443 thousand)	$4,573,962

Note: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item	Statement Index
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents	1
Statement of financial assets at fair value through profit or loss - current	2
Statement of trade receivables	3
Statement of inventories	4
Statement of financial assets at FVTPL - non-current	5
Statement of changes in investments accounted for using the equity method	6
Statement of changes in property, plant and equipment	Note 12
Statement of changes in accumulated depreciation and accumulated impairment of property, plant and equipment	Note 12
Statement of changes in intangible assets	Note 14
Statement of deferred income tax assets	Note 23
Statement of other payables	Note 18
Statement of deferred income tax liabilities	Note 23
Statement of short-term borrowings	7
Statement of long-term borrowings	8
Major Accounting Items in Profit or Loss
Statement of net operating revenue	9
Statement of operating cost	10
Statement of operating expenses	11

66 -

STATEMENT 1

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item	Amount
Petty cash	$ 1,265
Cash in banks
Checking accounts	3,956
Demand deposits	160,731
Foreign currency demand deposits (Note 1)	211,112
Foreign currency time deposits (Note 2)	62,860
	$ 439,924

Note 1: The amount of US$8,623 thousand was calculated based on the exchange rate of US$1=NT$31.43. The amount of RMB61 thousand was calculated based on the exchange rate of RMB1=NT$4.496. The amount of EUR13 thousand was calculated based on the exchange rate of EUR1=NT$36.9 and the amount of SGD13 thousand was calculated based on the exchange rate of SGD1=NT$24.45 and the amount of JPY262 thousand was calculated based on the exchange rate of JPY1=NT$0.2008 and the amount of THB155 thousand was calculated based on the exchange rate of THB1=NT$1.0019 and the amount of KRW75,719 thousand was calculated based on the exchange rate of KRW1=NT$0.02201.

Note 2: The amount of US$2,000 thousand was calculated based on the exchange rate of US$1=NT$31.43.

STATEMENT 2

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Name	Name of Marketable Securities	Shares	Face Value	Amount	Acquisition Cost	Fair Value		Note
						Stock Price	Amount
Stock	Winmate Inc.	540,000	10	$ 5,400	$ 35,599	149.50	$ 80,730	-
	Eris Technology Corp.	54,321	10	543	14,487	133.50	7,252	-
	Chicony Power Technology Co., Ltd.	50,000	10	500	6,706	91.90	4,595	-
	Universal Microwave Technology, Inc.	94,000	10	940	37,872	679.00	63,826	-
	Yageo Corporation	200,000	10	2,000	39,298	231.00	46,200	-
				$ 9,383	$ 133,962		$ 202,603

STATEMENT 3

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF TRADE RECEIVABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Client Name	Amount
A	$ 433,970
B	45,322
C	44,866
D	44,221
E	40,121
F	37,301
Others (Note)	55,557
	701,358
Less: Allowance for impairment loss	-
	$ 701,358

Note: The amount from each individual client included in others does not exceed 5% of the account balance.

69 -

STATEMENT 4

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
	Cost	Net Realized Value
Products	$ 55,475	$ 53,270
	55,475	$ 53,270
Less: Allowance for inventory valuation losses	(2,205)
	$ 53,270

STATEMENT 5

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item	Balance, January 1, 2025		Acquisition		Decrease		Gain (Losses) on Financial Assets at FVTPL - Non-current	Balance, December 31, 2025		Collateral	Note
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	Amount
Domestic emerging market shares
Gigastone Corporation	216,011	$ 7,858	-	$ -	216,011	$ 7,329	$ (529)	-	$ -	None	-
Tiga Gaming Inc.	1,332,132	22,726	-	-	-	-	138	1,332,132	22,864	None	-
		30,584		-		7,329	(391)		22,864
Domestic unlisted shares
WK Technology Fund IX II Ltd.	3,000,000	19,928	-	-	-	-	1,024	3,000,000	20,952	None	-
Overseas unlisted shares
Hercules BioVenture, L.P.	210,526	6,769	-	-	-	-	(269)	210,526	6,500	None	-
Foxfortune Technology Limited	624,000	15,576	-	-	124,800	3,814	(790)	499,200	10,972	None	-
		22,345		-		3,814	(1,059)		17,472
Private funds
China Development of Healthcare Venture of Limited Partnership	25,903,675	14,898	2,884,275	2,884	815	815	(2,127)	28,787,135	14,840	None	-
		$ 87,755		$ 2,884		$ 11,958	$ (2,553)		$ 76,128

STATEMENT 6

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

	Balance as of January 1, 2025			Increase in Investments	Share of Profit or Loss of Subsidiaries and Associates	Exchange Differences on Translating the Financial Statements of Foreign Operations	Difference Between Consideration and Carrying Amount of Subsidiaries Acquired	Share of Other Comprehensive Income of Subsidiaries Accounted for Using the Equity Method	Cash Dividends	Balance of December 31, 2025
	Shares (In Thousands)	Shareholding Ratio %	Amount							Shares (In Thousands)	Shareholding Ratio %	Amount	Note
Unlisted companies
Syncmold Enterprise (Samoa) Corp.	3,546	100.00	$ 2,502,576	$ -	$ 61,068	$(76,317)	$ -	$ -	$(207,210)	3,546	100.00	$ 2,280,117	Notes 1 and 2
Grand Advance Inc.	-	100.00	3,653,501	-	155,588	(95,877)	-	-	(374,684)	-	100.00	3,338,528	Notes 1 and 2
Syncmold Enterprise (USA) Corp.	-	100.00	(7,958)	-	(1,011)	348	-	-	-	-	100.00	(8,621)	Notes 1 and 2
High Grade Tech Co., Ltd.	2,280	35.63	174,714	-	21,436	-	-	8,390	(6,840)	2,280	35.63	197,700	Notes 1 and 2
Smart Automation Technology Inc.	2,120	47.11	13,988	-	3,124	9	-	-	-	2,120	47.11	17,121	Notes 1 and 2
Lashab Enterprise Co., Ltd.	32,109	80.22	483,374	-	217,799	4,691	-	-	-	32,109	80.22	705,864	Notes 1 and 2
Gatetech Technology Inc.	42,634	74.17	650,365	10,162	(51,276)	823	5,356	1,007	-	43,650	75.94	616,437	Notes 1 and 2
SynX Tech Co., Ltd.	5,000	100.00	49,930	-	(10,016)	-	-	-	-	5,000	100.00	39,914	Notes 1 and 2
Syncmold Enterprise Vietnam Co., Ltd.	-	100.00	662,387	-	73,380	(50,442)	-	-	-	-	100.00	685,325	Notes 1 and 2
Syncmold Enterprise (Malaysia) Sdn. Bhd.	-	100.00	2,397	-	313	167	-	-	-	-	100.00	2,877	Notes 1 and 2
Syncmold Enterprise (Singapore) Pte. Ltd.	-	100.00	6,669	-	186	104	-	-	-	-	100.00	6,959	Notes 1 and 2
Syncmold Enterprise (Thailand) Co., Ltd.	807	100.00	40,510	278,891	(8,491)	20,728	-	-	-	3,788	100.00	331,638	Notes 1 and 2
Syncmold DONG NAI Company Limited	-	100.00	-	93,240	(1,143)	(510)	-	-	-	-	100.00	91,587
			8,232,453	$ 382,293	$ 460,957	$(196,276)	$ 5,356	$ 9,397	$(588,734)			8,305,446
Add: Credit balance of Investments reclassified to non-current liabilities			7,958									8,621
			$ 8,240,411									$ 8,314,067

Note 1: Calculated based on the audited financial statements of the investee companies and the shareholding ratio.
Note 2: No pledges or guaranteed investments accounted for using the equity method as at the end of 2025.

STATEMENT 7

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF SHORT-TERM BORROWINGS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Credit Type	Contract Date	Annual Rate (%)	Ending Balance	Credit Line	Security Guarantees	Note
Bank loan
Yuanta Commercial Bank Co., Ltd.	2025/11/17-2026/02/11	1.88	$ 150,000	$ 700,000	None	Note 1
Yuanta Commercial Bank Co., Ltd.	2025/11/17-2026/02/11	1.88	150,000	700,000	None	Note 1
Yuanta Commercial Bank Co., Ltd.	2025/11/17-2026/02/11	1.88	200,000	700,000	None	Note 1
CTBC Bank Co., Ltd.	2025/11/27-2026/02/06	1.86	200,000	600,000	None	Note 2
CTBC Bank Co., Ltd.	2025/12/08-2026/03/06	1.88	300,000	600,000	None	Note 2
CTBC Bank Co., Ltd.	2025/11/07-2026/02/06	1.88	100,000	600,000	None	Note 2
TAIPEI FUBON Commercial Bank Co., Ltd.	2025/10/17-2026/01/16	1.89	100,000	500,000	None	Note 3
E.SUN Commercial Bank, Ltd.	2025/11/07-2026/02/06	1.93	200,000	500,000	None	Note 4
E.SUN Commercial Bank, Ltd.	2025/10/31-2026/01/30	1.93	13,000	500,000	None	Note 4
			$ 1,413,000

Note 1: Short-term borrowings facilities from Yuanta Commercial Bank Co., Ltd. was $700,000 thousand.
Note 2: Short-term borrowings facilities from CTBC Bank Co., Ltd. was $600,000 thousand.
Note 3: Short-term borrowings facilities from TAIPEI FUBON Commercial Bank Co., Ltd. was $500,000 thousand.
Note 4: Short-term borrowings facilities from E.SUN Commercial Bank, Ltd. was $500,000 thousand.

STATEMENT 8

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF LONG-TERM BORROWINGS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Credit Type	Contract Date	Annual Rate (%)	Ending Balance	Credit Line	Security Guarantees
Bank loan
E.SUN Commercial Bank, Ltd.	2021/01/27-2033/01/27	1.82	$ 30,423	$ 30,423	Property, plant and equipment
E.SUN Commercial Bank, Ltd.	2021/01/29-2033/01/29	1.82	4,348	4,348	Property, plant and equipment
			34,771	$ 34,771
Less: Current portions			(4,642)
			$ 30,129

STATEMENT 9

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF NET OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item	Quantity	Amount
Sales revenue
Display hinges	71,159,325	$ 2,782,240
Others		1,312
		2,783,552
Other operating revenue		237,208
		$ 3,020,760

75 -

STATEMENT 10

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Raw material, beginning of year	$ 6,661
Add: Raw material purchased	5
Raw materials used	6,666
Manufacturing cost	6,666
Add: Work in process, beginning of year	30
Less: Work in process, end of year	-
Work in process generated	30
Cost of finished goods	6,696
Add: Finished goods, beginning of year	2,346
Less: Finished goods, end of year	-
Cost of finished goods sold	9,042
Add: Product, beginning of year	100,633
Purchase of products	2,460,002
Less: Product, end of year	(55,475)
Transferred to operating expense	(83)
Cost of products	2,514,119
Less: Reversal of write-downs of inventories	(381)
	$ 2,513,738

STATEMENT 11

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Selling Expenses	General and Administrative	Research and Development Expense	Total
Salary (Note 2)	$ 33,024	$ 125,901	$ 90,921	$ 249,846
Others (Note 1)	92,003	65,179	37,985	195,167
	$ 125,027	$ 191,080	$ 128,906	$ 445,013

Note 1: The amount of each item in others does not exceed 5% of the account balance.

Note 2: Included salary, pension and remuneration of directors.

77 -

AI assistant

SYNCMOLD — Audit Report / Information 2026

51868_rns_2026-05-11_fa316d95-ede7-46d4-a8fc-225cf3e675f0.pdf

Syncmold Enterprise Corporation

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Sales Revenue under Triangular Trade

Other Matter

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

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

Notice to Readers

SYNCMOLD ENTERPRISE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL INFORMATION

2. APPROVAL OF PARENT COMPANY ONLY FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

s. Taxation

1) Current tax

2) Deferred tax

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

10. INVENTORIES

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. LEASE ARRANGEMENTS

15. GOODWILL

16. BORROWINGS

17. BONDS PAYABLE

18. OTHER PAYABLES

19. RETIREMENT BENEFIT PLANS

20. EQUITY

21. REVENUES

22. NET PROFIT

23. INCOME TAXES

24. EARNINGS PER SHARE

Net Profit for the Year

25. CAPITAL MANAGEMENT

26. FINANCIAL INSTRUMENTS

Sensitivity analysis

Sensitivity analysis

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

30. SEPARATELY DISCLOSED ITEMS

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF TRADE RECEIVABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF LONG-TERM BORROWINGS

FOR THE YEAR ENDED DECEMBER 31, 2025

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF NET OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

SYNCMOLD ENTERPRISE CORPORATION

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