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TA YIH INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY FINANCIAL
STATEMENTS AND INDEPENDENT AUDITORS'
REPORT
DECEMBER 31, 2025 AND 2024

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

TA YIH INDUSTRIAL CO., LTD.
DECEMBER 31, 2025 AND 2024 PARENT COMPANY ONLY FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT TABLE OF CONTENTS

Contents	Page
1. Cover Page	1
2. Table of Contents	2 ~ 3
3. Independent Auditors’ Report	4 ~ 9
4. Parent Company Only Balance Sheets	10 ~ 11
5. Parent Company Only Statements of Comprehensive Income	12
6. Parent Company Only Statements of Changes in Equity	13
7. Parent Company Only Statements of Cash Flows	14 ~ 15
8. Notes to the Parent Company Only Financial Statements	16 ~ 57
(1) History and Organization	16
(2) The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization	16
(3) Application of New Standards, Amendments and Interpretations	16 ~ 18
(4) Summary of Material Accounting Policies	18 ~ 26
(5) Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty	26 ~ 27
(6) Details of Significant Accounts	27 ~ 46

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Contents

(7) Related Party Transactions 47 ~ 50
(8) Pledged Assets 50
(9) Significant Contingent Liabilities and Unrecognized Contract 50

Commitments

(10) Significant Disaster Loss 50
(11) Significant Events after the Balance Sheet Date 50
(12) Others 51 ~ 57
(13) Supplementary Disclosures 57
(14) Segment Information 57

Statements of Major Accounting Items 58 ~ 80

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INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Ta Yih Industrial Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Ta Yih Industrial Co., Ltd. (the “Company”) as of December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its 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 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 Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2025 parent company only financial statements. 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, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 parent company only financial statements are stated as follows:

Key audit matter: Cut-off of sales revenue from hub warehouse

Description

Please refer to Notes 4(22) and 6(13) to the parent company only financial statements for the accounting policy and the details of sales revenue relating to this key audit matter, respectively. The sales revenue generated from the hub warehouse was $1,445,254 thousand for the year ended December 31, 2025, which accounted for 40% of the total operating revenue.

The Company mainly manufactures and sells automobile and locomotive lamps. The Company also sells its products to overseas markets and recognizes revenue when customers pick up the goods from the hub warehouse, upon which the risks and rewards are transferred. The sales model of overseas markets depends on the delivery of goods from hub warehouse. The Company recognizes sales revenue based on movements of inventories contained in the statements or other information provided by the hub custodians. As there are numerous sales revenue transactions from hubs and the transaction amounts prior to and after the balance sheet date are significant to the financial statements, we considered the cut-off of hub sales revenue as the key audit matter of our 2025 annual audit.

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How our audit addressed the matter

Our key audit procedures performed in respect of the above key audit matter included the following:

We validated the effectiveness of the management’s controls in respect of the cut-off of sales revenue from hub warehouse.
We performed cut-off tests of hub sales revenue for a specific period prior to and after the balance sheet date, including verifying records of picking goods from hubs and confirming records of inventory movements are recorded in the appropriate period.
We conducted a physical count of inventory quantities held at hubs and agreed to accounting records.

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 Company’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 Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company’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 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 Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

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

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

Yeh, Fang-Ting

Independent Accountants

Lin, Hsiu-Shan

PricewaterhouseCoopers, Taiwan

Republic of China

March 13, 2026

The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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(AYIH INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

TAYIH INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Corrected in thousands of New Taiwan dollars)

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 185,633	6	$ 284,528	10
1150	Notes receivable, net	6(2) and 12	6	-	10	-
1170	Accounts receivable, net	6(2) and 12	682,637	23	607,672	22
1180	Accounts receivable - related parties, net	6(2), 7 and 12	664	-	9,429	-
1200	Other receivables		85,893	3	22,728	1
1220	Current income tax assets	6(20)	11,222	1	-	-
130X	Inventories	5(2), 6(3)(5)	932,248	31	819,437	29
1410	Prepayments		98,213	3	53,571	2
1479	Other current assets, others		30,445	1	6,205	-
11XX	Total current assets		2,026,961	68	1,803,580	64
Non-current assets
1550	Investments accounted for using equity method	6(4) and 7	-	-	8,159	-
1600	Property, plant and equipment	6(5)	852,770	28	893,814	32
1755	Right-of-use assets	6(6) and 7	22,760	1	28,751	1
1780	Intangible assets		932	-	1,531	-
1840	Deferred income tax assets	6(20)	22,854	1	41,636	2
1915	Prepayments for equipment	6(22)	35,999	1	30,894	1
1920	Guarantee deposits paid		28,690	1	8,835	-
1990	Other non-current assets, others		1,429	-	7,034	-
15XX	Total non-current assets		965,434	32	1,020,654	36
1XXX	Total assets		$ 2,992,395	100	$ 2,824,234	100

(Continued)

(AYIH INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(7)	$ -	-	$ 50,000	2
2130	Contract liabilities - current	6(13) and 7	143,783	5	74,578	3
2150	Notes payable		297	-	38,796	1
2170	Accounts payable		566,857	19	387,802	14
2180	Accounts payable - related parties	7	26,037	1	26,838	1
2200	Other payables	6(8)	183,252	6	178,436	6
2220	Other payables - related parties	7	32,738	1	28,134	1
2230	Current income tax liabilities	6(20)	10,523	-	10,523	-
2280	Lease liabilities - current	7	15,173	1	12,299	1
2399	Other current liabilities, others		45,025	1	25,303	1
21XX	Total current liabilities		1,023,685	34	832,709	30
Non-current liabilities
2570	Deferred income tax liabilities	6(20)	77,250	3	77,561	3
2580	Lease liabilities - non-current	7	7,985	-	16,854	-
2640	Net defined benefit liabilities - non-current	6(9)	15,960	1	26,421	1
2670	Other non-current liabilities, others		2,174	-	2,410	-
25XX	Total non-current liabilities		103,369	4	123,246	4
2XXX	Total liabilities		1,127,054	38	955,955	34
Equity
Share capital
3110	Common stock	6(10)	762,300	26	762,300	27
3200	Capital surplus	6(11)	61,412	2	61,278	2
Retained earnings		6(12)
3310	Legal reserve		699,326	23	688,058	24
3320	Special reserve		68,264	2	68,264	3
3350	Unappropriated retained earnings		274,039	9	287,886	10
3400	Other equity interest		-	-	493	-
3XXX	Total equity		1,865,341	62	1,868,279	66
Significant contingent liabilities and unrecognized contract commitments		9
3X2X	Total liabilities and equity		$ 2,992,395	100	$ 2,824,234	100

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

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(13) and 7	$ 3,629,959	100	$ 3,696,220	100
5000	Operating costs	6(3)(9)(18)(19) and 7	( 3,039,113)	( 84)	( 3,183,322)	( 86)
5900	Operating margin		590,846	16	512,898	14
5920	Realized gain on sales	6(4)	-	-	730	-
5950	Net operating margin		590,846	16	513,628	14
	Operating expenses	6(9)(18)(19), 7 and 12
6100	Selling expenses		( 198,505)	( 5)	( 163,228)	( 5)
6200	General and administrative expenses		( 138,801)	( 4)	( 151,265)	( 4)
6300	Research and development expenses		( 145,671)	( 4)	( 159,896)	( 4)
6450	Expected credit impairment (loss)
	gain		( 958)	-	3,445	-
6000	Total operating expenses		( 483,935)	( 13)	( 470,944)	( 13)
6900	Operating profit		106,911	3	42,684	1
	Non-operating income and expenses
7100	Interest income	6(14)	3,211	-	5,250	-
7010	Other income	6(15)	6,102	-	18,901	-
7020	Other gains and losses	6(4)(6)(16), 7 and 12	( 31,941)	( 1)	20,995	1
7050	Finance costs	6(6)(17) and 7	( 1,097)	-	( 4,225)	-
7070	Share of profit (loss) of subsidiaries, associates and joint ventures accounted for using equity method	6(4)
			6	-	( 705)	-
7000	Total non-operating income and expenses		( 23,719)	( 1)	40,216	1
7900	Profit before income tax		83,192	2	82,900	2
7950	Income tax (expense) benefit	6(20)	( 16,783)	-	4,528	-
8200	Net profit for the year		$ 66,409	2	$ 87,428	2
	Other comprehensive income (loss)
	Components of other comprehensive income (loss) that will not be reclassified to profit or loss
8311	Actuarial gains on defined benefit plans	6(9)	$ 9,053	-	$ 31,564	1
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(20)	( 1,811)	-	( 6,313)	-
	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations	6(4)	( 616)	-	39,567	1
8399	Income tax related to components of other comprehensive income (loss) that will be reclassified to profit or loss	6(20)	123	-	( 3,944)	-
8300	Other comprehensive income for the year		$ 6,749	-	$ 60,874	2
8500	Total comprehensive income for the year		$ 73,158	2	$ 148,302	4
	Earnings per share (in dollars)	6(21)
9750	Basic		$ 0.87		$ 1.15
9850	Diluted		$ 0.87		$ 1.15

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

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Share capital - common stock	Capital surplus			Retained earnings			Other equity interest	Total
			Share premium	Gain on disposal of assets	Donated assets	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
For the year ended December 31, 2024
Balance at January 1, 2024		$ 762,300	$ 56,330	$ 4,142	$ 673	$ 684,741	$ 68,264	$ 231,885	($ 35,130)	$ 1,773,205
Net income		-	-	-	-	-	-	87,428	-	87,428
Other comprehensive income		-	-	-	-	-	-	25,251	35,623	60,874
Total comprehensive income		-	-	-	-	-	-	112,679	35,623	148,302
Distribution of 2023 net income:
Legal reserve		-	-	-	-	3,317	-	( 3,317 )	-	-
Cash dividends	6(12)	-	-	-	-	-	-	( 53,361 )	-	( 53,361 )
Unclaimed cash dividends overdue transferred to capital surplus		-	-	-	133	-	-	-	-	133
Balance at December 31, 2024		$ 762,300	$ 56,330	$ 4,142	$ 806	$ 688,058	$ 68,264	$ 287,886	$ 493	$ 1,868,279
For the year ended December 31, 2025
Balance at January 1, 2025		$ 762,300	$ 56,330	$ 4,142	$ 806	$ 688,058	$ 68,264	$ 287,886	$ 493	$ 1,868,279
Net income		-	-	-	-	-	-	66,409	-	66,409
Other comprehensive income (loss)		-	-	-	-	-	-	7,242	( 493 )	6,749
Total comprehensive income (loss)		-	-	-	-	-	-	73,651	( 493 )	73,158
Distribution of 2024 net income:
Legal reserve		-	-	-	-	11,268	-	( 11,268 )	-	-
Cash dividends	6(12)	-	-	-	-	-	-	( 76,230 )	-	( 76,230 )
Unclaimed cash dividends overdue transferred to capital surplus		-	-	-	134	-	-	-	-	134
Balance at December 31, 2025		$ 762,300	$ 56,330	$ 4,142	$ 940	$ 699,326	$ 68,264	$ 274,039	$ -	$ 1,865,341

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

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 83,192	$ 82,900
Adjustments
Adjustments to reconcile profit (loss)
Expected credit impairment loss (gain)	12	958	( 3,445 )
Provision for inventory market price decline	6(3)	9,554	26,612
Share of profit of subsidiaries, associates and joint ventures accounted for using equity method (including (realized) unrealized gain on sales)	6(4)	( 6 )	( 25 )
(Gain) loss on disposal of investments accounted for using equity method	6(4)(16)	( 602 )	12,099
Depreciation	6(5)(6)(18)	119,958	129,428
Loss on disposal of property, plant and equipment	6(16)	-	3,536
Loss from lease modification	6(6)(16)	16	424
Amortization	6(18)	1,748	3,890
Interest income	6(14)	( 3,211 )	( 5,250 )
Finance costs	6(17)	1,097	4,225
Net loss (gain) on foreign currency exchange		1,659	( 8,936 )
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable		4	9,087
Accounts receivable		( 76,734 )	87,597
Accounts receivable - related parties		8,588	87,509
Other receivables		( 63,165 )	4,553
Other receivables - related parties		-	3,115
Inventories		( 164,202 )	216,419
Prepayments		( 44,642 )	( 24,896 )
Other current assets, others		( 24,240 )	21,986
Changes in operating liabilities
Contract liabilities - current		69,205	49,331
Notes payable		( 38,499 )	( 53,845 )
Accounts payable		178,570	( 295,953 )
Accounts payable - related parties		( 987 )	( 26,629 )
Other payables		5,015	( 5,761 )
Other payables - related parties		4,604	( 18,419 )
Other current liabilities, others		19,722	( 22,218 )
Net defined benefit liabilities - non-current		( 1,408 )	( 909 )
Other non-current liabilities, others		( 236 )	11
Cash inflow generated from operations		85,958	276,436
Interest received		3,211	5,250
Interest paid		( 1,296 )	( 4,132 )
Income tax paid		( 11,222 )	( 67,867 )
Net cash flows from operating activities		76,651	209,687

(Continued)

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal and liquidation of investments	6(4)
accounted for using equity method		$ 8,151	$ 26,952
Cash paid for acquisition of property, plant and equipment	6(22)	( 28,068 )	( 107,586 )
Proceeds from disposal of property, plant and equipment		-	6,476
Acquisition of intangible assets		( 1,149 )	( 386 )
Increase in guarantee deposits paid		( 19,855 )	( 1,041 )
Decrease (increase) in other non-current assets, others		5,605	( 7,034 )
Net cash flows used in investing activities		( 35,316 )	( 82,619 )
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings	6(23)	( 50,000 )	( 160,000 )
Payments of lease liabilities	6(23)	( 14,134 )	( 12,043 )
Payment of cash dividends	6(12)	( 76,230 )	( 53,361 )
Unclaimed cash dividends overdue transferred to capital surplus		134	133
Net cash flows used in financing activities		( 140,230 )	( 225,271 )
Net decrease in cash and cash equivalents		( 98,895 )	( 98,203 )
Cash and cash equivalents at beginning of year	6(1)	284,528	382,731
Cash and cash equivalents at end of year	6(1)	$ 185,633	$ 284,528

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

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TA YIH INDUSTRIAL CO., LTD.
NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

History and Organization
(1) TA YIH Industrial Co., Ltd. (the “Company”) was incorporated in 1964. It was formerly known as Ta Yih Industrial Corp. and changed to its present name in 1976. The Company mainly sells, manufactures and processes automobile parts, motorcycle parts, railway vehicle parts, transportation machineries, industrial plastic parts, as well as invests in related industries.
(2) The Company’s shares have been listed on the Taiwan Stock Exchange since October 6, 1997.
The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization
These parent company only financial statements were authorized for issuance by the Board of Directors on March 13, 2026.
Application of New Standards, Amendments and Interpretations
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)
New standards, interpretations and amendments endorsed by the FSC and became effective from 2025 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
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
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
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 International Accounting Standards Board January 1, 2027 (Note)
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

Note : The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which

apply to the primary financial statements and notes.

4. Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation, the parent company only financial statements have been prepared under the historical cost convention.

B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5, ‘Critical accounting judgements, estimates and key sources of assumption uncertainty’.

(3) Foreign currency translation

Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Company’s presentation currency.

A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

B. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities

~18~

denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

D. All foreign exchange gains and losses are presented in the statement of comprehensive income within “Other gains and losses”.

(4) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

(a) Assets that are expected to be realized, or are intended to be sold or consumed in the normal operating cycle;

(b) Assets that are held primarily for the purpose of trading;

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

(a) Liabilities that are expected to be settled within the normal operating cycle;

(b) Liabilities that are held primarily for the purpose of trading;

(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(7) Impairment of financial assets

For financial assets at amortized cost at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Company recognizes the impairment provision for lifetime ECLs.

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(8) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(9) Inventories

Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. Inventories are recorded at the standard cost on the balance sheet date. The difference between actual costs and normal standard costs is allocated in proportion to inventory and operational costs on financial year-end, in order to approach the amount of weighted-average cost. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and applicable variable selling expenses. When the cost of inventories exceeds net realizable value, the amount of any write-down of inventories is recognized as cost of sales during the period; and the amount of any reversal of inventory write-down is recognized as a reduction in cost of sales during the period.

(10) Investments accounted for using equity method / subsidiaries and associates

A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

B. Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

C. After acquisition of subsidiaries, the Company recognizes proportionately the share of profit and loss and other comprehensive income in the income statement as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss in a subsidiary equals or exceeds the carrying amount of Company's interest in that subsidiary, the Company continues to recognize its share in the subsidiary's loss proportionately.

D. As long as the change in shareholding in the subsidiaries does not lead to loss of control (transactions with non-controlling interest), it is to be treated as equity, which are transactions between the owners. The difference between non-controlling equity adjustment amount and the fair value of payment and receipt is to be recognized as equity.

E. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

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F. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

G. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

H. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

I. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

J. According to Regulations Governing the Preparation of Financial Statements by Securities Issuers, “Profit for the year” and “Total other comprehensive income for the year” reported in the parent company only statement of comprehensive income, shall equal to “Profit for the year” and “Total other comprehensive income” attributable to owners of the parent reported in that entity's consolidated statement of comprehensive income. Total equity reported in the parent company only financial statements shall equal to equity attributable to owners of parent reported in the consolidated financial statements.

(11) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Asset	Useful lives
Buildings
Main buildings	40	to	60 years
Factory and other buildings	5	to	40 years
Machinery equipment	3	to	10 years
Molding equipment	2	to	3 years
Transportation equipment			5 years
Other equipment	3	to	7 years

(12) Leasing arrangements (lessee) - right-of-use assets/ lease liabilities

A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

(a) The amount of the initial measurement of lease liabilities; and
(b) Any lease payments made at or before the commencement date.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

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D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease and recognize the difference in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(13) Intangible assets

A. Computer software

Stated at cost and amortized on a straight-line basis over its estimated useful life of 3 years.

B. Patents

Stated at cost and amortized on a straight-line basis over its estimated useful life of 5 years.

(14) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

(15) Borrowings

Borrowings comprise short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the lifetime using the effective interest method.

(16) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(17) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(18) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

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B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognized immediately in profit or loss.

C. Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

D. Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(19) Income taxes

A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is

levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

F. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(20) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

(21) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are approved by the Company's shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

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(22) Revenue recognition

Sales of goods

A. The Company primarily manufactures and sells car lamps and molds related products. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

B. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(23) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes expenses for the related costs for which the grants are intended to compensate.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

A. As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the

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future. Therefore, there might be material changes to the evaluation.

B. As of December 31, 2025, the carrying amount of inventories was $932,248.

6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash:
Cash on hand and revolving funds	$ 915	$ 781
Checking accounts and demand deposits	169,003	250,962
	169,918	251,743
Cash equivalents:
Time deposits	15,715	32,785
	$ 185,633	$ 284,528

A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Company has no cash and cash equivalents pledged to others as of December 31, 2025 and 2024.

(2) Notes and accounts receivable, net

	December 31, 2025	December 31, 2024
Notes receivable	$ 6	$ 10
Accounts receivable	$ 685,509	$ 609,586
Less: Allowance for uncollectible accounts	( 2,872)	( 1,914)
	$ 682,637	$ 607,672
Accounts receivable - related parties	$ 665	$ 9,430
Less: Allowance for uncollectible accounts	( 1)	( 1)
	$ 664	$ 9,429

A. The aging analysis of notes and accounts receivable (including related parties) is as follows:

	December 31, 2025	December 31, 2024
Notes receivable
Not past due	$ 6	$ 10
Accounts receivable (including related parties)
Not past due	$ 666,564	$ 606,132
Within 90 days	17,040	11,924
91 to 180 days	309	-
181 to 270 days	189	6
Over 271 days	2,072	954
	$ 686,174	$ 619,016

The above aging analysis was based on the number of days past due.

B. As of December 31, 2025 and 2024, notes and accounts receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers amounted to $794,070.

C. As of December 31, 2025 and 2024, without considering any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the notes and accounts receivable was its carrying amount.

D. The Company has no notes and accounts receivable pledged to others as of December 31, 2025 and 2024.

E. Information relating to credit risk of notes and accounts receivable is provided in Note 12(2), 'Financial Instruments'.

(3) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Merchandise	$ 48,104	$ -	$ 48,104
Raw materials	341,066	( 38,622)	302,444
Work in progress	43,957	-	43,957
Finished goods	550,610	( 12,867)	537,743
	$ 983,737	($ 51,489)	$ 932,248
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Merchandise	$ 17,066	$ -	$ 17,066
Raw materials	327,599	( 36,077)	291,522
Work in progress	92,764	-	92,764
Finished goods	423,943	( 5,858)	418,085
	$ 861,372	($ 41,935)	$ 819,437

The cost of inventories recognized as expense for the year:

	For the years ended December 31,
	2025	2024
Cost of goods sold	$ 3,025,665	$ 3,131,802
Provision for inventory market price decline	9,554	26,612
Loss on scrapped inventories	4,802	28,692
Income from sale of scraps	( 908)	( 3,784)
	$ 3,039,113	$ 3,183,322

(4) Investments accounted for using equity method

A. Movements of investments accounted for using equity method are as follows:

	2025	2024
January 1	$ 8,159	$ 7,618
Share of profit or loss of investments accounted for using equity method	6	( 705)
Disposal of investments accounted for using equity method	( 8,151)	-
Realized gain on sales	-	730
Other equity - Exchange differences on translation of foreign financial statements	( 14)	516
December 31	$ -	$ 8,159

B. Details of investments accounted for using equity method are as follows:

	December 31, 2025	December 31, 2024
Subsidiary:
Ta Yih International Investment Co., Ltd. (BVI) (Note 1)	$ -	$ 8,159
Associates:
Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd. (Note 2)	$ -	$ -

(Note 1) Ta Yih International Investment Co., Ltd. completed its liquidation and deregistration procedures in September 2025. The Company received return of capital of $8,151 due to the liquidation, reversed foreign exchange differences of $616 related to the financial statements of overseas operating entities, and recognized an investment gain of $602 from the liquidation accounted for under the equity method (listed under “Other Gains and Losses”).

(Note 2) The Company entered into a stock transfer agreement on July 29, 2024 with a related party, Koito Manufacturing Co., Ltd., to sell all the equity of Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd. for JPY 120,000 thousand in cash (NTD 26,952). This equity transfer transaction has been completed, and the financial statements translation differences of foreign operations amounting to ($39,051) had been reversed. Additionally, an investment loss under the equity method totaling $12,099 had been recognized (listed under “Other Gains and Losses”).

C. For information regarding the subsidiary of the Company, please refer to Note 4(3), “Basis of consolidation” of the Company’s 2025 Annual Consolidated Financial Statements.

D. The Company has no investments accounted for using equity method pledged to others as of December 31, 2025 and 2024.

(5) Property, plant and equipment

	Land	Buildings	Machinery	Molding equipment	Transportation equipment	Other equipment	Total
January 1, 2025
Cost	$ 601,050	$ 207,344	$ 1,018,117	$ 82,420	$ 5,034	$ 328,233	$ 2,242,198
Accumulated depreciation	-	( 180,541)	( 852,411)	( 66,994)	( 4,804)	( 243,634)	( 1,348,384)
	$ 601,050	$ 26,803	$ 165,706	$ 15,426	$ 230	$ 84,599	$ 893,814
For the year ended December 31, 2025
January 1	$ 601,050	$ 26,803	$ 165,706	$ 15,426	$ 230	$ 84,599	$ 893,814
Additions	-	865	7,709	-	-	14,389	22,963
Transferred from inventories	-	-	1,156	40,465	-	216	41,837
Depreciation	-	( 5,090)	( 45,145)	( 20,347)	( 138)	( 35,124)	( 105,844)
Disposals - cost	-	( 2,899)	( 6,553)	( 64,734)	-	( 10,876)	( 85,062)
- accumulated depreciation	-	2,899	6,553	64,734	-	10,876	85,062
December 31	$ 601,050	$ 22,578	$ 129,426	$ 35,544	$ 92	$ 64,080	$ 852,770
December 31, 2025
Cost	$ 601,050	$ 205,310	$ 1,020,429	$ 58,151	$ 5,034	$ 331,962	$ 2,221,936
Accumulated depreciation	-	( 182,732)	( 891,003)	( 22,607)	( 4,942)	( 267,882)	( 1,369,166)
	$ 601,050	$ 22,578	$ 129,426	$ 35,544	$ 92	$ 64,080	$ 852,770

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	Land	Buildings	Machinery	Molding equipment	Transportation equipment	Other equipment	Total
January 1, 2024
Cost	$ 601,050	$ 270,754	$ 1,067,497	$ 263,648	$ 18,489	$ 365,962	$ 2,587,400
Accumulated depreciation	-	( 245,473)	( 890,545)	( 215,596)	( 17,797)	( 305,269)	( 1,674,680)
	$ 601,050	$ 25,281	$ 176,952	$ 48,052	$ 692	$ 60,693	$ 912,720
For the year ended December 31, 2024
January 1	$ 601,050	$ 25,281	$ 176,952	$ 48,052	$ 692	$ 60,693	$ 912,720
Additions	-	6,491	23,034	-	9,874	46,834	86,233
Transferred from inventories	-	-	13,738	763	-	7,683	22,184
Depreciation	-	( 4,942)	( 47,943)	( 33,389)	( 458)	( 30,579)	( 117,311)
Disposals - cost	-	( 69,901)	( 86,152)	( 181,991)	( 23,329)	( 92,246)	( 453,619)
- accumulated depreciation	-	69,874	86,077	181,991	13,451	92,214	443,607
December 31	$ 601,050	$ 26,803	$ 165,706	$ 15,426	$ 230	$ 84,599	$ 893,814
December 31, 2024
Cost	$ 601,050	$ 207,344	$ 1,018,117	$ 82,420	$ 5,034	$ 328,233	$ 2,242,198
Accumulated depreciation	-	( 180,541)	( 852,411)	( 66,994)	( 4,804)	( 243,634)	( 1,348,384)
	$ 601,050	$ 26,803	$ 165,706	$ 15,426	$ 230	$ 84,599	$ 893,814

A. As of December 31, 2025 and 2024, the Company's property, plant and equipment are all for its own use.
B. There was no capitalization of borrowing costs for the years ended December 31, 2025 and 2024.
C. As of December 31, 2025 and 2024, the Company has no property, plant and equipment pledged to others.

(6) Leasing arrangements - lessee

A. The Company leases various assets including buildings, machinery and equipment, office equipment, and business vehicles. Rental contracts are typically made for periods of 2 to 6 years. Certain lease contracts of office equipment and business vehicles do not give priority rights to renew the lease or purchase the properties. The Group does not have bargain purchase options to acquire the leased buildings, machinery and equipment, at the end of the lease contracts. In addition, the Company is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

B. Short-term leases with a lease term of 12 months or less comprise underlying assets such as air compressors, forklift trucks, offices and warehouses, etc. Low-value assets comprise office equipment such as printers, etc.

C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

| | December 31, 2025
Carrying amount | December 31, 2024
Carrying amount |
| --- | --- | --- |
| Buildings | $ 11,735 | $ 20,447 |
| Machinery and equipment | 2,594 | - |
| Office equipment | 1,769 | 2,299 |
| Transportation equipment | 6,662 | 6,005 |
| | $ 22,760 | $ 28,751 |
| | For the years ended December 31, | |
| | 2025 | 2024 |
| | Depreciation | Depreciation |
| Buildings | $ 8,711 | $ 8,711 |
| Machinery and equipment | 1,415 | - |
| Office equipment | 531 | 531 |
| Transportation equipment | 3,457 | 2,875 |
| | $ 14,114 | $ 12,117 |

D. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $8,396 and $5,771, respectively.

E. The information on profit or loss relating to lease contracts is as follows:

	For the years ended December 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 456	$ 480
Expense on short-term lease contracts	2,655	3,620
Expense on leases of low-value assets	120	178
Loss on lease modification	16	424

F. For the years ended December 31, 2025 and 2024, the Company’s total cash outflow for leases was $17,365 and $16,321, respectively.

(7) Short-term borrowings

Type of borrowings	December 31, 2024	Interest rate	Collateral
Unsecured bank borrowings	$ 50,000	1.825%	None

There was no such situation as of December 31, 2025.

For more information about interest expense recognized in profit or loss by the Company for the years ended December 31, 2025 and 2024, please refer to Note 6(17), ‘Finance costs’.

(8) Other payables

	December 31, 2025	December 31, 2024
Wages, salaries and bonus payable	$ 113,945	$ 118,847
Utilities expenses payable	5,216	4,962
Molding equipment payables	2,506	6,212
Others	61,585	48,415
	$ 183,252	$ 178,436

(9) Pensions

A. The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company has established the pension fund monitoring committee in accordance with the Labor Standards Act and the manager pension fund managing committee in accordance with the Income Tax Act since August, 1987 and July, 1999. The Company contributes amounts equal to 11% and 8% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee and a manager pension fund administered by the manager pension fund managing committee. Pension contributions are deposited respectively in the Bank of Taiwan and Taiwan Business Bank in the committee’s name. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

Information about the abovementioned pension plan is disclosed as follows:

(a) The amounts recognized in the balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	($ 191,712)	($ 190,744)
Fair value of plan assets	175,752	164,323
Net defined benefit liabilities	($ 15,960)	($ 26,421)

(b) Movements in net defined benefit liabilities are as follows:

	For the year ended December 31, 2025
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liabilities
January 1	($ 190,744)	$ 164,323	($ 26,421)
Current service cost	( 614)	-	( 614)
Interest (expense) income	( 2,861)	2,483	( 378)
	( 194,219)	166,806	( 27,413)
Remeasurements:
Return on plan assets	-	12,107	12,107
(excluding amounts included in interest income or expense)
Change in financial assumptions	( 1,946)	-	( 1,946)
Experience adjustments	( 1,108)	-	( 1,108)
	( 3,054)	12,107	9,053
Pension fund contribution	-	2,400	2,400
Paid pensions	5,561	( 5,561)	-
December 31	($ 191,712)	$ 175,752	($ 15,960)

	For the year ended December 31, 2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liabilities
January 1	($ 236,141)	$ 177,247	($ 58,894)
Current service cost	( 1,185)	-	( 1,185)
Interest (expense) income	( 2,952)	2,246	( 706)
	( 240,278)	179,493	( 60,785)
Remeasurements:
Return on plan assets	-	16,487	16,487
(excluding amounts included in interest income or expense)
Change in financial assumptions	4,268	-	4,268
Experience adjustments	10,809	-	10,809
	15,077	16,487	31,564
Pension fund contribution	-	2,800	2,800
Paid pensions	34,457	( 34,457)	-
December 31	($ 190,744)	$ 164,323	($ 26,421)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company's defined benefit pension plan in accordance with the Fund's annual investment and utilization plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund" (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings are less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

(d) The principal actuarial assumptions used were as follows:

	For the years ended December 31,
	2025	2024
Discount rate	1.375%	1.50%
Future salary increase rate	2.50%	2.50%

Future mortality rate was estimated based on the $6^{\text{th}}$ Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2025 and 2024.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate		Future salary increase rate
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2025
Effect on present value of defined benefit obligation	($ 3,862)	$ 3,987	$ 3,875	$ 3,773
December 31, 2024
Effect on present value of defined benefit obligation	($ 4,132)	$ 4,269	$ 4,154	($ 4,041)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analyzing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(e) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2026 amount to $2,460.
(f) As of December 31, 2025, the weighted average duration of the retirement plan is 8.2 years. The analysis of timing of the future pension payment was as follows:

Within 1 year

Within 2 to 5 years

Over 6 years

$ 24,487

41,674

53,969

$ 120,130

B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the Company’s defined contribution pension plan for the years ended December 31, 2025 and 2024 were $20,248 and $22,694, respectively.

(10) Share capital

A. Movements in the number of the Company’s ordinary shares outstanding are as follows (Unit: in thousand shares):

	For the years ended December 31,
	2025	2024
Balance as of January 1 and December 31	76,230	76,230

B. As of December 31, 2025, the Company’s total authorized capital was $800,000, and the paid-in capital was $762,300, consisting of 76,230 thousand shares of ordinary stock, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

(11) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stock and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized as mentioned above shall not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(12) Retained earnings

A. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

B. In accordance with the Articles of Incorporation of the Company, considering future capital needs and long-term financial planning, the Company will set aside 10% as a legal reserve after paying taxes and covering accumulated losses in accordance with the law. However, when the legal reserve has reached the amount of paid-in capital, a special reserve shall be set aside for the amount of reductions in shareholders' equity occurred in that year. The remainder, together with any undistributed retained earnings, shall be used by the Board of Directors as the basis for proposing a distribution plan, which shall be submitted to the shareholders’ meeting for approval. The shareholders’ dividends shall not be lower than 50% of distributed retained earnings, and

~37~

the cash dividends shall not be lower than 50% of the total shareholders' dividends

The Company authorizes the board of directors, with more than two-thirds of the directors present and a resolution approved by more than half of the directors present, to distribute all or part of the dividends and bonuses, capital reserves or legal reserves in cash, and report it to the shareholders' meeting. The provisions of the preceding paragraph that must be resolved by the shareholders' meeting do not apply.

C. Special reserve

(a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings

(b) The amount of $23,122 previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

D. The Company recognized cash dividends distributed to owners amounting to $76,230 ($1 (in dollars) per share) and $53,361 ($0.7 (in dollars) per share) for the years ended December 31, 2025 and 2024, respectively. On March 13, 2026, the Board of Directors resolved to distribute cash dividends from 2025 earnings in the amount of $57,173 ($0.75(in dollars) per share).

(13) Operating revenue

A. The Group derives revenue from contracts with customers for the sale of goods transferred at a point in time, which can be disaggregated into the following major product categories:

	For the years ended December 31,
	2025	2024
Car lamps	$ 3,246,018	$ 3,256,060
Molds	55,817	132,456
Others	328,124	307,704
	$ 3,629,959	$ 3,696,220

B. Contract liabilities

As of December 31, 2025, December 31, 2024 and January 1, 2024, the Company recognized contract liabilities of $143,783, $74,578 and $25,247, respectively. Revenue recognized for the years ended December 31, 2025 and 2024 that was included in the contract liability balance at the beginning of the year amounted to $11,346 and $8,417, respectively.

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(14) Interest income

	For the years ended December 31,
	2025	2024
Interest income from bank deposits	$ 3,211	$ 5,250

(15) Other income

	For the years ended December 31,
	2025	2024
Government grant income	$ 1,946	$ 654
Accounts payable reclassified to income due to the expiration of the statute of limitations	944	8,959
Royalty revenue	-	747
Other income	3,212	8,541
	$ 6,102	$ 18,901

(16) Other gains and losses

	For the years ended December 31,
	2025	2024
Net currency exchange (loss) gain	($ 32,527)	$ 37,513
Gain (loss) on disposal of investments accounted for using equity method	602	( 12,099)
Loss on disposal of property, plant and equipment	-	( 3,536)
Loss from lease modification	( 16)	( 424)
Royalty expense	-	( 342)
Other losses	-	( 117)
	($ 31,941)	$ 20,995

(17) Finance costs

	For the years ended December 31,
	2025	2024
Interest expense:
Bank borrowings	$ 641	$ 3,745
Interest expense on lease liabilities	456	480
	$ 1,097	$ 4,225

(18) Expenses by nature

	For the year ended December 31, 2025
	Operating costs	Operating expenses	Total
Employee benefit expense	$ 337,301	$ 191,174	$ 528,475
Depreciation	$ 100,370	$ 19,588	$ 119,958
Amortization	$ 397	$ 1,351	$ 1,748
	For the year ended December 31, 2024
	Operating costs	Operating expenses	Total
Employee benefit expense	$ 378,871	$ 206,726	$ 585,597
Depreciation	$ 112,103	$ 17,325	$ 129,428
Amortization	$ 522	$ 3,368	$ 3,890

(19) Employee benefit expense

	For the year ended December 31, 2025
	Operating costs	Operating expenses	Total
Wages and salaries	$ 269,993	$ 154,044	$ 424,037
Labor and health insurance	32,168	17,399	49,567
Pension costs	13,211	8,029	21,240
Directors' remuneration	-	1,980	1,980
Other personnel expenses	21,929	9,722	31,651
	$ 337,301	$ 191,174	$ 528,475
	For the year ended December 31, 2024
	Operating costs	Operating expenses	Total
Wages and salaries	$ 300,539	$ 166,882	$ 467,421
Labor and health insurance	36,595	17,886	54,481
Pension costs	16,087	8,498	24,585
Directors' remuneration	-	2,100	2,100
Other personnel expenses	25,650	11,360	37,010
	$ 378,871	$ 206,726	$ 585,597

A. For the years ended December 31, 2025 and 2024, the average number of employees of the Company were 715 and 813 employees, respectively, which included 8 and 6 non-employee directors. For the years ended December 31, 2025 and 2024, the average employee benefit expenses were $745 and $723, while average wages and salaries were $600 and $579, respectively. The average wages and salaries increased by 3.63% compared to prior year.

B. In accordance with the Articles of Incorporation of the Company, the annual pre-tax net profit before deducting employees' and directors' compensation will be distributed in the following manner:

(a) No more than 2% for directors' compensation

(b) No less than 1% for employees' compensation

From the aforementioned amounts, the ratio shall not be lower than 1% for employees' compensation. However, if there are accumulated losses, the Company should reserve the amount to offset the losses in advance, then distributed according to agreed proportions mentioned above. The employee compensation mentioned above may be paid in stock or cash. The recipients may include employees of controlled or subsidiary companies who meet certain criteria, with the conditions and methods of distribution authorized by the Board of Directors. Directors' compensation can only be in cash. Employee and directors' compensation distribution should be proposed to the shareholders' meeting report. In addition, the Company did not distribute directors' remuneration over years, and thus did not accrue directors' remuneration.

C. For the years ended December 31, 2025 and 2024, employees' compensation was accrued at $840 and $837, respectively. The aforementioned amounts were recognized in salary expenses. The employees' compensation was estimated and accrued based on the percentage of distributable profit of current year as of the end of reporting period as prescribed by the Company's Articles of Incorporation. The employees' compensation resolved by the Board of Directors for 2025 was $840 and the employees' compensation will be distributed in the form of cash. The amounts of employees' compensation as resolved by the Board of Directors was agreed with the estimated amount of $837 recognized in the 2024 financial statements. Information about employees' compensation of the Company as resolved by the Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(20) Income tax

A. Income tax expense (benefit):

(a) Components of income tax expense (benefit):

	For the years ended December 31,
	2025	2024
Current income tax:
Current tax on profits for the year	$ -	$ 21,303
Deferred income tax:
Origination and reversal of temporary differences	16,783	(25,831)
Income tax expense (benefit)	$ 16,783	($ 4,528)

(b) The income tax relating to components of other comprehensive income is as follows:

	For the years ended December 31,
	2025	2024
Remeasurement of defined benefit obligations	$ 1,811	$ 6,313
Financial statements translation differences of foreign operations	( 123)	3,944
	$ 1,688	$ 10,257

B. Reconciliation between income tax expense (benefit) and accounting profit:

	For the years ended December 31,
	2025	2024
Tax calculated based on profit before tax at the statutory tax rate	$ 16,638	$ 16,580
Effects from items adjusted in accordance with tax regulations	145	( 21,108)
Income tax expense (benefit)	$ 16,783	($ 4,528)

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

	For the year ended December 31, 2025
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	December 31
Deferred income tax assets
Temporary differences:
Loss on decline in market value of inventories	$ 8,387	$ 1,911	$ -	$ 10,298
Unused compensated absences	4,717	(107)	-	4,610
Long-term employee benefit liabilities	434	47	-	481
Pensions	5,283	(280)	(1,811)	3,192
Investment income	494	(494)	-	-
Loss on disposal of investments	22,321	(22,321)	-	-
Tax losses	-	4,273	-	4,273
	$ 41,636	($ 16,971)	($ 1,811)	$ 22,854
Deferred income tax liabilities
Temporary differences:
Increment tax on land revaluation	($ 76,736)	$ -	$ -	($ 76,736)
Unrealized exchange gains	(702)	188	-	(514)
Financial statements translation differences of foreign operations	(123)	-	123	-
	($ 77,561)	$ 188	$ 123	($ 77,250)
	($ 35,925)	($ 16,783)	($ 1,688)	($ 54,396)

~44~

	For the year ended December 31, 2024
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	December 31
Deferred income tax assets
Temporary differences:
Loss on decline in market value of inventories	$ 3,065	$ 5,322	$ -	$ 8,387
Unused compensated absences	4,410	307	-	4,717
Long-term employee benefit liabilities	432	2	-	434
Pensions	11,778	(182)	(6,313)	5,283
Unrealized exchange losses	1,731	(1,731)	-	-
Investment income	-	494	-	494
Loss on disposal of investments	-	22,321	-	22,321
Financial statements translation differences of foreign operations	3,821	-	(3,821)	-
	$ 25,237	$ 26,533	($ 10,134)	$ 41,636
Deferred income tax liabilities
Temporary differences:
Increment tax on land revaluation	($ 76,736)	$ -	$ -	($ 76,736)
Unrealized exchange gains	-	(702)	-	(702)
Financial statements translation differences of foreign operations	-	-	(123)	(123)
	($ 76,736)	($ 702)	($ 123)	($ 77,561)
	($ 51,499)	$ 25,831	($ 10,257)	($ 35,925)

D. Expiration dates of unused tax losses and amounts of unrecognized deferred tax assets are as follows:

December 31, 2025
Year incurred	Amount filed/ assessed	Unused amount	Unrecognized deferred tax assets	Expiry year
2025	$ 21,363	$ 21,363	$ -	2035

There were no such matters as of December 31, 2024.

E. The Company’s income tax returns through 2022 have been assessed and approved by the Tax

-45-

Authority. As of March 13, 2026, there were no administrative litigation cases.

(21) Earnings per share

	For the year ended December 31, 2025
	Amount after tax	Weighted average number of shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to the ordinary shareholders	$ 66,409	76,230	$ 0.87
Diluted earnings per share
Profit attributable to the ordinary shareholders	$ 66,409	76,230
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	42
Profit attributable to the ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	$ 66,409	76,272	$ 0.87
	For the year ended December 31, 2024
	Amount after tax	Weighted average number of shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to the ordinary shareholders	$ 87,428	76,230	$ 1.15
Diluted earnings per share
Profit attributable to the ordinary shareholders	$ 87,428	76,230
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	27
Profit attributable to the ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	$ 87,428	76,257	$ 1.15

(22) Supplemental cash flow information

A. Investing activities with partial cash payments:

	For the years ended December 31,
	2025	2024
Acquisition of property, plant and equipment	$ 22,963	$ 86,233
Add: Ending balance of prepayments for equipment	35,999	30,894
Less: Beginning balance of prepayments for equipment	( 30,894)	( 9,541)
Cash paid for acquisition of property, plant and equipment	$ 28,068	$ 107,586

B. Investing activities with no cash flow effects:

	For the years ended December 31,
	2025	2024
Inventories transferred to property, plant and equipment	$ 41,837	$ 22,184

(23) Changes in liabilities from financing activities

	For the year ended December 31, 2025
	Short-term borrowings	Lease liabilities	Guarantee deposits received	Liabilities from financing activities
January 1	$ 50,000	$ 29,153	$ 240	$ 79,393
Changes in cash flow from financing activities	( 50,000)	( 14,134)	-	( 64,134)
Changes in other non-cash items	-	8,139	-	8,139
December 31	$ -	$ 23,158	$ 240	$ 23,398
	For the year ended December 31, 2024
	Short-term borrowings	Lease liabilities	Guarantee deposits received	Liabilities from financing activities
January 1	$ 210,000	$ 41,786	$ 240	$ 252,026
Changes in cash flow from financing activities	( 160,000)	( 12,043)	-	( 172,043)
Changes in other non-cash items	-	( 590)	-	( 590)
December 31	$ 50,000	$ 29,153	$ 240	$ 79,393

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7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
Ta Yih International Investment Co., Ltd. (BVI)	Subsidiary
Koito Manufacturing Co., Ltd.	Entity with significant influence on the Company
Guangzhou Koito Automotive Lamp Co., Ltd.	Subsidiary of the entity with significant influence on the Company
Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.	Subsidiary of the entity with significant influence on the Company (Note)
India Japan Lighting Private Limited	Subsidiary of the entity with significant influence on the Company
PT. Indonesia Koito	Subsidiary of the entity with significant influence on the Company
Thai Koito Company Limited	Subsidiary of the entity with significant influence on the Company
Hubei Koito Automotive Lamp Co., Ltd.	Subsidiary of the entity with significant influence on the Company
North American Lighting Inc.	Subsidiary of the entity with significant influence on the Company
NAL DO BRASIL INDUSTRIA E COMERCIO DE COMPONENTES DE ILUMINACAO LTDA	Subsidiary of the entity with significant influence on the Company
Ta Yih Kenmos Auto Parts Co., Ltd.	Substantive related party
Ta Yih Kenmos Auto Parts (Thailand) Co., Ltd.	Substantive related party
Ta Yih International Hotel Co., Ltd.	Substantive related party
DBM Reflex of Taiwan Co., Limited	Substantive related party
Chenwang Industrial Co., Ltd.	Substantive related party

(Note) Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd., previously an associate in which the Company held a 49% interest, changed its status on July 29, 2024, due to an equity transfer transaction with Koito Manufacturing Co., Ltd. It is now recognized as a subsidiary of an entity that has significant influence on the Company.

(2) Significant related party transactions

A. Operating revenue

	For the years ended December 31,
	2025	2024
Sales of goods:
Substantive related parties	$ 18,783	$ 14,157
Subsidiaries of the entity with significant influence on the Company	4,171	-
Koito Manufacturing Co., Ltd.	410	145,511
Associates	-	2,262
	$ 23,364	$ 161,930

The prices of sales of goods with related parties did not have substantive difference compared to non-related parties, except the prices of sales of goods with associates were added based on the costs. The collection term for domestic sales with related parties is 90 days. Except for Koito Manufacturing Co., Ltd., which the payment is received within 2 months of monthly settlement, and for associate which the payment is received within 4 to 6 months of monthly settlement, the collection term for export sales with related parties is based on the term of individual transaction, which is normally 90 days, and the collection term does not have substantive difference compared to non-related parties.

B. Purchases

	For the years ended December 31,
	2025	2024
Purchases of goods:
Entity with significant influence on the Company	$ 111,309	$ 118,807
Substantive related parties	37,723	9,199
Subsidiaries of the entity with significant influence on the Company	16,005	11,230
Associates	-	75
	$ 165,037	$ 139,311

The price of goods purchased do not have substantive difference between related and non-related parties. Except for the associate which the payment is paid within 4 months of monthly settlement, the payment term for related parties depends on individual transaction, which is normally 90 days, and does not have substantive difference from non-related parties.

C. Disposal of investments accounted for using equity method

	For the year ended December 31, 2024
	Disposal proceeds	Loss on disposal
Koito Manufacturing Co., Ltd.	$ 26,952	($ 12,099)

There were no such matters in 2025.

D. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
Substantive related parties	$ 665	$ 8,620
Subsidiaries of the entity with significant influence on the Company	-	810
	665	9,430
Less: Allowance for uncollectible accounts	(1)	(1)
	$ 664	$ 9,429

The outstanding trade receivables from related parties are unsecured.

E. Contract liability

	December 31, 2025	December 31, 2024
Advance sales receipts :
Subsidiaries of the entity with significant influence on the Company	$ 5,854	$ -
Entity with significant influence on the Company	-	356
	$ 5,854	$ 356

F. Payables to related parties

	December 31, 2025	December 31, 2024
Accounts payable:
Entity with significant influence on the Company	$ 18,499	$ 19,691
Substantive related parties	7,538	7,087
Associates	-	60
	$ 26,037	$ 26,838
Other payables:
Koito Manufacturing Co., Ltd.	$ 32,309	$ 28,134
Substantive related parties	429	-
	$ 32,738	$ 28,134

The outstanding trade payables from related parties are unsecured.

G. Lease transactions - lessee

(a) The Company leases plants and machinery equipment from Ta Yih Kenmos Auto Part Co., Ltd. Rental contracts are typically made for periods from April 1, 2022 to March 31, 2027, and from July 1, 2025 to November 30, 2026, respectively. Rents are determined by reference to market prices and are paid monthly starting from the first day of lease.

i. The Company acquired right-of-use assets from Ta Yih Kenmos Auto Parts Co., Ltd.

amounting to $4,010 and $- for the years 2025 and 2024, respectively.

ii. The carrying amount of lease liabilities recognized by the Company as of December 31, 2025 and 2024 was $13,023 and $18,628, respectively. Interest expense recognized for the years ended December 31, 2025 and 2024 were $225 and $287, respectively.

(b) The lease period of the offices and warehouses leased from Ta Yih Kenmos Auto Part Co., Ltd. shall not exceed 12 months. Rents are determined by reference to market prices and are paid monthly starting from the first day of lease.

For the years ended December 31, 2025 and 2024, the Company recognized rent expense amounting to $1,308 and $1,322, respectively, due to the above lease transactions.

H. Other transactions with related parties

Royalty expenses:

The Company entered into a royalty expense contract with Koito Manufacturing Co., Ltd. on June 1, 1987, original contract period 8 years, in accordance with the provisions of the contract, if either party doesn't give notice of termination of the original contract 6 months prior to the end of the period, extended every 3 years. The royalty expenses were $65,859 and $66,814 for the years ended December 31, 2025 and 2024, respectively (listed as “operating costs” and “operating expenses”).

(3) Key management personnel compensation

	For the years ended December 31,
	2025	2024
Salaries and other short-term employee benefits	$ 14,086	$ 15,790
Post-employment benefits	237	141
	$ 14,323	$ 15,931

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

Pledged Assets

None.

Significant Contingent Liabilities and Unrecognized Contract Commitments

As of December 31, 2025 and 2024, the balances for contracts that the Company entered into but not yet paid are $3,831 and $6,645, respectively.

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

None.

~51~

12. Others

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the Company consists of net liabilities (borrowings offset by cash) and the equity, and the Company is not subject to any externally imposed capital requirements.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$ 185,633	$ 284,528
Notes receivable	6	10
Accounts receivable - related parties	683,301	617,101
Other receivables	85,893	22,728
Guarantee deposits paid	28,690	8,835
	$ 983,523	$ 933,202
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortized cost
Short-term borrowings	$ -	$ 50,000
Notes payable	297	38,796
Accounts payable - related parties	592,894	414,640
Other payables - related parties	215,990	206,570
Guarantee deposits received
(listed as “other non-current liabilities”)	240	240
	$ 809,421	$ 710,246
Lease liabilities (including current portion)	$ 23,158	$ 29,153

B. Financial risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk.

(b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Company operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, CNY and JPY. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.

ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Foreign exchange risk arises when future commercial transactions, recognized assets or liabilities are denominated in a currency that is not the entity's functional currency.

iii. The Company's businesses involve some non-functional currency operations (the Company's functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 12,684	31.43	$ 398,670
CNY:NTD	1,142	4.496	5,135
JPY:NTD	7,254	0.2008	1,457
Financial liabilities
Monetary items
USD:NTD	349	31.43	10,971
CNY:NTD	4,842	4.496	21,770
JPY:NTD	99,870	0.2008	20,054

	December 31, 2024
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 9,377	32.785	$ 307,425
CNY:NTD	1,394	4.478	6,242
JPY:NTD	171,339	0.2099	35,964
Financial liabilities
Monetary items
USD:NTD	216	32.785	7,082
CNY:NTD	2,801	4.478	12,543
JPY:NTD	108,140	0.2099	22,699

The sensitivity analysis of foreign exchange risk mainly focuses on the foreign currency monetary items at the end of the financial reporting period. If the exchange rate of NTD to all foreign currencies had appreciated or depreciated by 1% with all other variables held constant, the Company's profit, net of tax for the years ended December 31, 2025 and 2024 would have increased/decreased by $2,820 and $2,459, respectively.

iv. The total exchange (loss) gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2025 and 2024, amounted to ($32,527) and $37,513, respectively.

Price risk

The Company has not engaged in financial instrument or derivatives investment, hence is not exposed to significant market risk of price fluctuations.

Cash flow and fair value Interest rate risk

i. The Company's certain borrowings are financial instruments at floating rates. Thus, future cash flows fluctuate due to changes in market interest rates and further changes in effective rates of debt instruments. However, risk is partially offset by cash and cash equivalents held at variable rates and borrowings issued at fixed rates expose the Company to fair value interest rate risk.

ii. If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit, net of tax for the years ended December 31, 2025 and 2024 would have decreased/increased by $ - and $400, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

ii. The Company manages its credit risk taking into consideration the entire entity’s concern. According to the Company’s credit policy, the Company is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, considering their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.

iii. The Company adopts the management of credit risk. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument. The default occurs when the contract payments are past due over 365 days. In addition, the default occurs after the Company initiates recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.

iv. The Company’s credit risks are deemed significantly concentrated since the credit risks are mainly concentrated in the top three customers of the Company. The Company classifies customer’s notes and accounts receivable in accordance with credit rating of customer. The Company applies the modified approach using a provision matrix based on the loss rate methodology to estimate the expected credit loss and uses the forecast ability to adjust historical and timely information to assess the default possibility of notes and accounts receivable. On December 31, 2025 and 2024, the provision matrix is as follows:

	No indication of default of debtor
December 31, 2025	Not past due	Up to 90 days past due	91~180 days past due	Individual identification	Total
Rate	0%~0.03%	0.1%~30%	50%	100%
Total book value	$ 666,570	$ 17,040	$ 24	$ 2,546	$ 686,180
Loss allowance	( 232)	( 83)	( 12)	( 2,546)	( 2,873)
	$ 666,338	$ 16,957	$ 12	$ -	$ 683,307

~55~

No indication of default of debtor
December 31, 2024	Not past due	Up to 90 days past due	Individual identification	Total
Rate	0%~0.06%	0.1%~50%	100%
Total book value	$ 606,142	$ 11,924	$ 960	$ 619,026
Loss allowance	( 377)	( 578)	( 960)	( 1,915)
	$ 605,765	$ 11,346	$ -	$ 617,111

v. Movements in relation to the Company applying the modified approach to provide loss allowance for notes receivable and accounts receivable (including related parties) are as follows:

	For the years ended December 31,
	2025	2024
January 1	$ 1,915	$ 5,360
Expected credit losses (gains)	958	( 3,445)
December 31	$ 2,873	$ 1,915

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by the Company's Finance Department. Company's Finance Department monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any if its borrowing facilities.

ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Company's Finance Department. The Company's Finance Department invests surplus cash in interest bearing current accounts and time deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts, that are expected to readily generate cash inflows for managing liquidity risk.

iii. The Company has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate:
Expiring within one year	$ 1,075,720	$ 1,131,140

iv. The table below analyses the Company's non-derivative financial liabilities and relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

December 31, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years
Non-derivative financial liabilities:
Notes payable	$ 297	$ -	$ -
Accounts payable
(including related parties)	592,894	-	-
Other payables
(including related parties)	215,990	-	-
Lease liabilities	15,472	5,372	2,774
Guarantee deposits received	-	240	-
December 31, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years
---	---	---	---
Non-derivative financial liabilities:
Short-term borrowings	$ 50,065	$ -	$ -
Notes payable	38,796	-	-
Accounts payable
(including related parties)	414,640	-	-
Other payables
(including related parties)	206,570	-	-
Lease liabilities	12,669	11,683	5,423
Guarantee deposits received	-	240	-

v. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with enough frequency and volume to provide pricing information on an ongoing basis.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

B. The carrying amounts of the financial instruments which are not measured at fair value (including cash and cash equivalents, notes receivable, accounts receivable (including related parties), other

receivables, guarantee deposits paid, short-term borrowings, notes payable, accounts payable (including related parties), other payables (including related parties) and guarantee deposits received are approximate to their fair values.

13. Supplementary Disclosures

(According to the current regulatory requirements, the Company is only required to disclose the information for the year ended December 31, 2025)

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): None.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of the Company’s paid-in capital: Refer to table 1.
E. Receivables from related parties reaching $100 million or 20% of the Company’s paid-in capital: None.
F. Significant inter-company transactions during the reporting periods: None.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 2.

(3) Information on investments in Mainland China

A. Basic information: None.
B. Significant transactions with investee companies in Mainland China, either directly or indirectly through a third area: None.

14. Segment Information

Not applicable.

~57~

~58~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item		Description		Amount
Cash:
Cash on hand and revolving funds				$ 915
Checking accounts				764
Demand deposits - NTD				37,243
	- Foreign currency	USD	4,021 thousand @ 31.430
		CNY	563 thousand @ 4.496
		EUR	8 thousand @ 36.90
		JPY	6,904 thousand @ 0.2008
		THB	391 thousand @ 1.0019	130,996
				169,918
Cash equivalents:
Time deposits	- Foreign currency	USD	500 thousand @ 31.430
		Maturity date: January 12, 2026
		Annual interest rate: 3.68%		15,715
				$ 185,633

~59~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE, NET

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Client name	Description	Amount	Note
Company A	Accounts receivable	$ 227,881	—
Company B	Accounts receivable	209,574	—
Company C	Accounts receivable	69,462	—
Company D	Accounts receivable	38,091	—
Others (less than 5%)	Accounts receivable	140,501	—
		685,509
Less: Allowance for uncollectible accounts		( 2,872)
		$ 682,637

~60~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER RECEIVABLES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Suppliers	Description	Amount	Note
Tariff subsidy receivables	—	$ 68,147	—
Others (less than 5%)	—	17,746	—
		$ 85,893

~61~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount		Note
		Cost	Net Realizable Value
Merchandise	—	$ 48,104	$ 51,128	(Note)
Raw materials	—	341,066	338,329	(Note)
Work in progress	—	43,957	46,120	(Note)
Finished goods	—	550,610	697,772	(Note)
		983,737	$ 1,133,349
Less: Allowance for inventory valuation losses
		( 51,489)
		$ 932,248

(Note) Refer to Note 4(9) ‘Inventories’ of parent company only financial statements for the method to determine the net realizable value.

~62~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF PREPAYMENTS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Prepayments to suppliers	—	$ 75,563	—
Prepaid expenses	—	20,527	—
Others (less than 5%)	—	2,123	—
		$ 98,213

~63~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER CURRENT ASSETS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Suppliers	Description	Amount	Note
Input tax amount	—	$ 15,791	—
Freight advance	—	11,513	—
Others (less than 5%)	—	3,141	—
		$ 30,445

~64~

TA YIH INDUSTRIAL CO., LTD.
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - COST
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(5) ‘Property, plant and equipment’ of parent company only financial statements.

~65~

TA YIH INDUSTRIAL CO., LTD.
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - ACCUMULATED
DEPRECIATION
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(5) ‘Property, plant and equipment’ of parent company only financial statements
for the change in accumulated depreciation of property, plant and equipment.

Refer to Note 4(11) ‘Property, plant and equipment’ of parent company only financial statements
for the depreciation method and useful lives for assets.

~66~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN PREPAYMENTS FOR EQUIPMENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Balance as of January 1, 2025	Increase	Transfer (Note)	Balance as of December 31, 2025
Prepayment for equipment	$ 30,894	$ 28,068	($ 22,963)	$ 35,999

(Note) Transfer to ‘property, plant and equipment’.

~67~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CONTRACT LIABILITIES -CURRENT

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Suppliers	Description	Amount	Note
Company X	Advance sales receipts	$ 82,559	—
Company Y	Advance sales receipts	39,287	—
Company Z	Advance sales receipts	12,813
Others (less than 5%)	Advance sales receipts	9,124	—
		$ 143,783

~68~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Supplier Name	Description	Amount	Note
Company A	Accounts payable	$ 119,342	—
Company B	Accounts payable	74,547	—
Company C	Accounts payable	38,314	—
Company D	Accounts payable	36,405	—
Others (less than 5%)	Accounts payable	298,249	—
		$ 566,857

~69~

TA YIH INDUSTRIAL CO., LTD.
STATEMENT OF OTHER PAYABLES
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(8) ‘Other payables’ of parent company only financial statements.

~70~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER PAYABLES – RELATED PARTIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Supplier Name	Description	Amount	Note
Koito Manufacturing Co., Ltd.	Payables for royalty	$ 32,309	—
Others (less than 5%)	—	429	—
		$ 32,738

~71~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER CURRENT LIABILITIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Refund liabilities	—	$ 44,886	—
Others (less than 5%)	—	139	—
		$ 45,025

~72~

TA YIH INDUSTRIAL CO., LTD.
STATEMENT OF CHANGES IN DEFERRED TAX LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(20) ‘Income tax’ of parent company only financial statements.

~73~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Quantity	Amount		Note
		Subtotal	Total
Sales:
Car lamps	13,043 thousands	$ 3,277,674		—
Molds	121	56,059		—
Others		328,753		—
			$ 3,662,486
Less: Sales returns			( 4,233)	—
Sales discounts and allowances			( 28,294)	—
			$ 3,629,959

~74~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount
Merchandise at January 1, 2025	$ 17,066
Add: Merchandise purchased	78,469
Less: Transferred to expenses	( 5)
Transferred to equipments	( 24,120)
Merchandise at December 31, 2025	( 48,104)
Merchandise used during the year	23,306
Raw materials at January 1, 2025	327,599
Add: Raw materials purchased	1,944,392
Less: Transferred to expenses	( 21,757)
Sale of raw materials	( 295,412)
Scrapped	( 653)
Raw materials at December 31, 2025	( 341,066)
Raw materials used during the year	1,613,103
Direct labor	162,110
Manufacturing overhead	500,079
Manufacturing cost	2,275,292
Work in progress at January 1, 2025	92,764
Work in progress at December 31, 2025	( 43,957)
Cost of finished goods	2,324,099

~75~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING COSTS (Cont.)

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount
Finished goods at January 1, 2025	$ 423,943
Add: Finished goods purchased	538,787
Less: Transferred to expenses	( 7,406)
Transferres to equipments	( 17,717)
Scrapped	( 4,149)
Finished goods at December 31, 2025	( 550,610)
Cost of production and marketing	2,706,947
Sale of cost of raw materials	295,412
Cost of goods sold	3,025,665
Loss on scrapped inventories	4,802
Provision for inventory market price decline	9,554
Less: Income from sale of scrap	( 908)
Operating costs	$ 3,039,113

~76~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF MANUFACTURING OVERHEAD

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount	Footnote
Wages and salaries	$ 147,265	—
Depreciation	100,370	—
Utilities	68,568	—
Royalty	59,984	—
Insurance	15,679	—
Repair and maintenance	15,138	—
Others (less than 3%)	93,075	—
	$ 500,079

~77~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount	Footnote
Import/Export	$ 133,228	—
Loss on export sales	20,197	—
Freight	15,025	—
Wages and salaries	14,899	—
Professional service	4,062	—
Others (less than 3%)	11,094	—
	$ 198,505

~78~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount	Footnote
Wages and salaries	$ 62,086	—
Depreciation	15,934	—
Professional service	9,186	—
Insurance	8,036	—
Royalty	5,875	—
Software	5,024	—
Others (less than 3%)	32,660	—
	$ 138,801

~79~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount	Footnote
Wages and salaries	$ 85,088	—
Software	18,628	—
Examination	15,027	—
Insurance	9,653	—
Others (less than 3%)	17,275	—
	$ 145,671

~80~

TA YIH INDUSTRIAL CO., LTD.
STATEMENT OF SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION, AND
AMORTIZATION EXPENSES IN THE CURRENT PERIOD
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(18) ‘Expense by nature’ and Note 6(19) ‘Employee benefit expense’ of parent
company only financial statements.

TA YIH INDUSTRIAL CO., LTD.
Purchases or sales transactions with related parties reaching $100 million or 20% of the Company's paid-in capital
For the year ended December 31, 2025

Table 1
Expressed in thousands of NTD

Purchases/sales company	Name of the counterparty	Relationship	Description of transaction				Description and reasons for difference in transaction terms compared to non-related party		Notes or accounts receivable/(payable)		Percentage of notes or accounts receivable/(payable)
			Purchases(sales)	Amount	Percentage of net purchases(sales)	Credit Period	Unit Price	Credit Period	Amount	Percentage of net exsrvable/(payable)
Ta Yih Industrial Co., Ltd.	Koito Manufacturing Co., Ltd.	Entity with significant influence on the Company	Purchases	$ 111,309	4%	3 months	Not significantly different	Not significantly different	($ 18,499)	(3%)	-

Table 1, Page 1

TA YIH INDUSTRIAL CO., LTD.
Information on investees
For the year ended December 31, 2025

Table 2
Expressed in thousands of NTD

Investor	Investee	Location	Main Businesses	Original investment amount		Holding status as of December 31, 2025			Net income (loss) of the investee	Investment income (loss) recognized by the Company	Note
				Balance as of December 31, 2025	Balance as of December 31, 2024 (Note 1)	Shares	Percentage of ownership	Book value
Ta Yih Industrial Co., Ltd.	Ta Yih International Investment Co., Ltd. (BVI)	British Virgin Islands	General investments	$ -	$ 11,001	-	0.00	$ -	$ 6	$ 6	Subsidiary

(Note 1) Represents the original investment amount as of December 31, 2025.
(Note 2) Foreign currencies were translated into New Taiwan Dollars using the exchange rates as of report date as follows: USD:NTD 1:31.43.

Table 2, Page 1

AI assistant

TA YIH — Audit Report / Information 2025

51845_rns_2026-05-20_91e4edf4-0436-4603-a97d-a06ab92f37ba.pdf

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Key audit matter: Cut-off of sales revenue from hub warehouse

Description

How our audit addressed the matter

Responsibilities of management and those charged with governance for the parent company only financial statements

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

4. Summary of Material Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(3) Foreign currency translation

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Notes and accounts receivable, net

C. Special reserve

(13) Operating revenue

A. The Group derives revenue from contracts with customers for the sale of goods transferred at a point in time, which can be disaggregated into the following major product categories:

B. Contract liabilities

7. Related Party Transactions

12. Others

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

B. Financial risk management policies

Price risk

Cash flow and fair value Interest rate risk

13. Supplementary Disclosures

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

14. Segment Information

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE, NET

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER RECEIVABLES

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF PREPAYMENTS

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER CURRENT ASSETS

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN PREPAYMENTS FOR EQUIPMENT

FOR THE YEAR ENDED DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CONTRACT LIABILITIES -CURRENT

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER PAYABLES – RELATED PARTIES

DECEMBER 31, 2025

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER CURRENT LIABILITIES

DECEMBER 31, 2025

TA YIH Audit Report / Information 2025