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Tecom Co., LTD.
Consolidated Financial Statements for the years
ended December 31, 2025 and 2024 with
Independent Auditors’ Report
(Stock Symbol 2321)

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.

Tecom Co., LTD.

Consolidated Financial Statements for the years ended December 31, 2025 and 2024 Independent Auditors’ Report

Table of contents

Item	Page
I、Cover page	1
II、Table of contents	2～3
III、Representation letter	4
IV、Independent auditors’ report	5～8
V、Consolidated balance Sheets	9～10
VI、Consolidated statements of comprehensive income	11
VII、Consolidated statements of changes in equity	12
VIII、Consolidated statements of cash flow	13～14
IX、Notes to the consolidated financial statements	15～60
(1) Company history and business scope	15
(2) Approval date and procedures of the consolidated financial statements	15
(3) New standards, amendments and interpretations adopted	15～16
(4) Summary of significant accounting policies	17～26
(5) Major sources of uncertainty arising from significant accounting judgments, estimates, and assumptions	26
(6) Explanation of significant accounts	27～47
(7) Related party transactions	47～50
(8) Restricted assets	50
(9) Significant Contingencies and Unrecognized Contract Commitments	50

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Item	Page
(10) Significant Disaster Loss	50
(11) Significant subsequent events	50
(12) Others	50 ~ 58
(13) Other disclosures	58 ~ 59
(14) Segment information	59 ~ 60

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Tecom Co., LTD.

Statement of Consolidated Financial Statements of Affiliated Enterprises

For the 2025 fiscal year (from January 1,2025 to December 31, 2025) of the Company in accordance with “Regulation Governing the Preparation of Consolidated Financial Statements and Related Reports of Affiliated Enterprises”, the companies that should be included in the preparation of consolidated financial statements of affiliated enterprises and companies that should be included in the preparation of consolidated financial statements of parent-subsidiary enterprises according to International Financial Reporting Standard No. 10 are the same, and the information that should be disclosed in the consolidated financial statements of affiliated enterprises has already been disclosed in the consolidated financial statements of parent-subsidiary enterprises, therefore a separate consolidated financial statement of affiliated enterprises will not be prepared.

We hereby declare that all the information provided is true and accurate.

Tecom Co., LTD.
Chairman: Wu, Su-Chiu
March 9, 2026

Independent Auditors' Report

(2026) No. Finance-Auditing-Reporting- 25003313

The Board of Directors and Shareholders

Tecom Co., LTD.

Opinion

We have audited the accompanying consolidated balance sheets of Tecom Co., LTD. and its subsidiaries (the "Group") as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the consolidated financial statements, including the summary of significant accounting policies (together referred as "the consolidated financial statements").

In our opinion, based on our audits and the reports of other auditors (please refer to the section "Other Matter — Making Reference to the Audits of Component Auditors" of our audit report) the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group and its subsidiaries as of December 31, 2025 and 2024, and their consolidated financial performance and cash flows for the years ended December 31, 2025 and 2024, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS accounting standards), International Accounting Standards (IASs), Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC) as endorsed and issued into effective by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits entrusted by the Group in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the "Auditors' Responsibilities for the Audit of the consolidated Financial Statements" section of our report. We are independent of the Group and its subsidiaries in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the "Norm"), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group's consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we

do not provide a separate opinion on these matters.

The key audit matter about the consolidated financial statements of the Group for the year ended December 31, 2025 is as below:

Inventory Valuation

Description

The Group measures the inventories at the lower of cost and net realizable value. Please refer to Notes 5(2) for accounting assumptions and judgments, major sources of estimation uncertainty and information for inventory respectively. Please refer to Note 6(6) for the explanations about inventories. Inventory and allowance for inventory valuation loss are NT$130,699 thousand and NT$10,081 thousand, respectively as of December 31, 2025. The Group measures the inventories at the lower of cost and net realizable value. Due to the large inventory amount, the Group is at high risk of inventory impairment loss caused by the rapid changes in industry technology resulting in outdated products or lack of market sales value. Therefore, the valuation of inventories has been identified as a key audit matter.

Audit procedures in response

Our audit procedures performed for the above matter are as follows:

Assessed the rationality of policies on allowance for inventory valuation loss.
Selected specific part numbers and verified the net realizable value.
Checked the allowance for inventory valuation loss recognized.

Other Matter — Parent Company Only Financial Statements

Tecom Co., LTD. has prepared its parent company only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unqualified opinion for your reference.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including audit committee, are responsible for overseeing the financial reporting process of the Group.

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Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated 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 internal control of the Group.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Group. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated 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 auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated 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 Group to express an opinion on the consolidated

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financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2025 consolidated financial statements and are therefore the key audit matters. We describe these matters in our auditor's 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.

Accountants: Chiang, Cheng-Han Liu, Chien-Yu

For and on behalf of PricewaterhouseCoopers, Taiwan

Securities : Financial-Supervisory-Securitie

Competent s-Auditing-1130350413

Authority Financial-Supervisory-Securitie

Approved-certi s-Auditing-1090350620

fied No.

March 9, 2026

Tecom Co., LTD. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 and 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

ASSETS	Note	December 31,2025		December 31,2024
		AMOUNT	%	AMOUNT	%
CURRENT ASSETS
1100	Cash and cash equivalents	6 (1)	$ 145,070	12	$ 225,484	17
1110	Financial assets at fair value through profit or loss - current	6 (2)
			21,978	2	11,392	1
1136	Financial assets at amortized cost -current	6 (4) and 8
			177,809	14	175,401	14
1140	Contract assets - current	6(20)	-	-	1,199	-
1150	Notes receivable, net	6 (5)	18,893	1	12,861	1
1160	Notes receivable from related parties, net	6 (5) and 7	5,009	-	581	-
1170	Accounts receivable, net	6 (5)	107,407	9	98,699	8
1180	Accounts receivables from related parties, net	6 (5) and 7
			8,112	1	6,536	1
1200	Other receivables	7	2,478	-	3,930	-
130X	Inventories	6 (6)	120,618	10	105,081	8
1410	Prepayments		14,345	1	14,851	1
1460	Non-current assets held for sale, net	6(7)	19,152	2	-	-
1470	Other current assets		291	-	651	-
11XX	Total current assets		641,162	52	656,666	51
NON-CURRENT ASSETS
1517	Financial assets at fair value through other comprehensive income - non-current	6 (3) and 8
			227,223	19	229,551	18
1550	Investments accounted for using equity method	6 (8)
			-	-	18,205	1
1600	Property, plant and equipment	6(9) and 8	79,557	7	85,449	6
1755	Right-of-use assets	6(10) and 7	147,850	12	163,646	13
1760	Investment properties, net	6(11) and 8	8,407	1	8,807	1
1780	Intangible assets	6(12)	3,419	-	1,828	-
1840	Deferred income tax assets	6(27)	115,981	9	115,981	9
1900	Other non-current assets	8	2,274	-	12,703	1
15XX	Total non-current assets		584,711	48	636,170	49
1XXX	TOTAL ASSETS		$ 1,225,873	100	$ 1,292,836	100

(continued)

Tecom Co., LTD. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 and 2024
(EXRESSED 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(13) and 8	$ 209,500	17	$ 270,000	21
2130	Contract liabilities - current	6(20)	9,838	1	12,121	1
2150	Notes payable		2,647	-	3,147	-
2170	Accounts payable		90,047	8	76,955	6
2180	Accounts payable from related parties	7	3,088	-	478	-
2200	Other payables	6(14) and 7	64,507	5	60,572	5
2230	Current income tax liabilities		163	-	-	-
2250	Provisions for liabilities - current		2,796	-	5,301	-
2280	Lease liabilities - current	7	7,036	1	8,710	1
2320	Long-term liabilities - current portion	6(15) and 8	-	-	200,000	15
2399	Other current liabilities		9,257	1	8,724	1
21XX	Total current liabilities		398,879	33	646,008	50
Non-current liabilities
2540	Long-term borrowings	6(15) and 8	200,000	16	-	-
2550	Provisions for liabilities - non-current		2,324	-	2,172	-
2570	Deferred income tax liabilities	6(27)	880	-	880	-
2580	Lease liabilities - non-current	7	155,183	13	168,195	13
2600	Other non-current liabilities	6(16)	24,448	2	34,502	3
25XX	Total noncurrent liabilities		382,835	31	205,749	16
2XXX	Total liabilities		781,714	64	851,757	66
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
	Share capital	6(17)
3110	Ordinary shares		302,719	25	142,719	11
3120	Preferred shares		-	-	160,000	12
	Capital reserve	6(18)
3200	Capital reserve		-	-	6,237	-
	Retained earnings	6(19)
3350	Accumulated deficit		(	137,169 ) (	106,875 ) (	8 )
	Other equity
3400	Other equity		27,112	2	11,027	1
3500	Treasury stock	6(17)	-	-	13,812 ) (	1 )
31XX	Equity attributable to shareholders of the parent		192,662	16	199,296	15
36XX	NON - CONTROLLING INTERESTS	4 (3)	251,497	20	241,783	19
3XXX	Total Equity		444,159	36	441,079	34
	SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS	9
	SIGNIFICANT SUBSEQUENT EVENTS	11
3X2X	TOTAL LIABILITIES AND EQUITY		$ 1,225,873	100	$ 1,292,836	100

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

Chairman: Wu, Su-Chiu
CEO: Tien, Ying-Juei
Accounting Manager: Li, Mei-Ling

Tecom Co., LTD. and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 and 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

	Item	Notes	2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenues	6(20) and 7	$ 732,508	100	$ 631,414	100
5000	Operating costs	6(6) and 7	( 511,870 )	( 70 )	( 440,595 )	( 70 )
5950	Gross profit, net		220,638	30	190,819	30
	Operating expenses	6(25)(26) and 7
6100	Selling expenses		( 86,044 )	( 12 )	( 81,876 )	( 13 )
6200	Administrative expenses		( 68,083 )	( 9 )	( 58,236 )	( 9 )
6300	Research and development expenses		( 72,163 )	( 10 )	( 70,877 )	( 11 )
6450	Expected credit losses	12 (2)	( 538 )	-	( 2,264 )	-
6000	Total operating expenses		( 226,828 )	( 31 )	( 213,253 )	( 33 )
6900	Operating losses		( 6,190 )	( 1 )	( 22,434 )	( 3 )
	Non-operating income and expenses
7100	Interest income	6(21)	3,362	-	4,638	1
7010	Other income	6(22) and 7	21,919	3	14,187	2
7020	Other gains and losses	6(23)	( 10,670 )	( 1 )	2,463	1
7050	Financial costs	6(24)	( 15,365 )	( 2 )	( 17,023 )	( 3 )
7060	Share of profit of associates and joint ventures accounted for using the equity method	6(8)
			1,570	-	1,206	-
7000	Total non-operating income and expenses		816	-	5,471	1
7900	Income (loss) before income tax		( 5,374 )	( 1 )	( 16,963 )	( 2 )
7950	Income tax expense	6(27)	( 245 )	-	115	-
8200	Net income (loss)		( $ 5,619 )	( 1 )	( $ 16,848 )	( 2 )
	Other comprehensive income
	Not to be reclassified to profit or loss in subsequent periods
8311	Remeasurements of defined benefit plans	6(16)	$ 1,113	-	$ 4,568	1
8316	Unrealized valuation gains or losses from equity instruments investments measured at fair value through other comprehensive income	6(3)
			2,105	1	3,803	-
8300	Other comprehensive income, net		$ 3,218	1	$ 8,371	1
8500	Total comprehensive income		( $ 2,401 )	-	( $ 8,477 )	( 1 )
	NET INCOME (LOSS) ATTRIBUTABLE TO
8610	Shareholders of the parent		( $ 12,251 )	( 2 )	( $ 14,694 )	( 2 )
8620	Non-controlling interests		$ 6,632	1	( $ 2,154 )	-
	TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
8710	Shareholders of the parent		( $ 9,033 )	( 1 )	( $ 6,323 )	( 1 )
8720	Non-controlling interests		$ 6,632	1	( $ 2,154 )	-
	Earnings (losses) per share
9750	Basic earnings per share	6(28)	( $ 0.76 )	( $ 0.76 )	( $ 1.09 )
9850	Diluted earnings per share		( $ 0.76 )	( $ 0.76 )	( $ 1.09 )

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

Chairman: Wu, Su-Chiu
CEO: Tien, Ying-Juei
Accounting Manager: Li, Mei-Ling

Unit: NT thousand

Tecom Co., LTD. and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

December 31, 2025 and 2024

	Equity Attributable to Shareholders of the Parent
	Share capital			Capital Reserve	Accumulated deficit	Unrealized Gain (Loss) on Financial Assets at Fair value through other comprehensive income	Treasury stock	Total	non-controlling interests
	Notes	Ordinary shares	Preferred Shares
2024
Balance on January 1, 2024		$ 142,719	$ 160,000	$ 6,237	($ 116,306)	$ 26,781	($ 13,812)	$ 205,619	$ 259,049
Net loss for the year		-	-	-	( 14,694 )	-	-	( 14,694 )	( 2,154 )
Other comprehensive income (loss) for the year	6 (3)	-	-	-	4,568	3,803	-	8,371	-
Total comprehensive income for the year		-	-	-	( 10,126 )	3,803	-	( 6,323 )	( 2,154 )
Disposal of equity instruments at fair value through other comprehensive income	6 (3)	-	-	-	19,557	( 19,557 )	-	-	-
Changes in non-controlling interests	4 (3)	-	-	-	-	-	-	-	( 15,112 )
Balance on December 31, 2024		$ 142,719	$ 160,000	$ 6,237	($ 106,875)	$ 11,027	($ 13,812)	$ 199,296	$ 241,783
2025
Balance on January 1, 2025		$ 142,719	$ 160,000	$ 6,237	($ 106,875)	$ 11,027	($ 13,812)	$ 199,296	$ 241,783
Net loss for the year		-	-	-	( 12,251 )	-	-	( 12,251 )	6,632
Other comprehensive income (loss) for the year	6 (3)	-	-	-	1,113	2,105	-	3,218	-
Total comprehensive income for the year		-	-	-	( 11,138 )	2,105	-	( 9,033 )	6,632
Conversion of convertible preferred shares	6 (17)	160,000	( 160,000 )	-	-	-	-	-	-
Disposal of parent company's shares by subsidiaries treated as 6 (17)(18) treasury share transactions		-	-	( 6,237 )	( 5,176 )	-	13,812	2,399	3,082
Disposal of equity instruments at fair value through other 6 (3) comprehensive income		-	-	-	( 13,980 )	13,980	-	-	-
Balance on December 31, 2025		$ 302,719	$ -	$ -	($ 137,169 )	$ 27,112	$ -	$ 192,662	$ 251,497

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

Chairman: Wu, Su-Chiu

CEO: Tien, Ying-Juei

Accounting Manager: Li, Mei-Ling

Unit: NT thousand
2024

Tecom Co., LTD. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 and 2024

	Notes	2025	2024
Cash flows from operating activities:
Loss before income tax		($ 5,374)	($ 16,963)
Adjustments for:
The profit or loss items:
Depreciation expenses	6(9)(10)(11)(25)	22,220	25,188
Amortization expenses	6(12)(25)	2,117	1,675
Losses on disposal of property, plant and equipment	6(23)	32	-
Expected credit losses	12(2)	538	2,264
Interest expense	6(24)	15,365	17,023
Interest income	6(21)	( 3,362)	( 4,638)
Dividend income	6(22)	( 8,628)	( 8,440)
Share of profit of associates accounted for using equity method	6(8)	( 1,570)	( 1,206)
Net gains on financial assets at fair value through profit or loss	6(2)(23)	( 592)	( 492)
Prepayments for investments transferred to losses	6(23)	10,000	-
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		( 9,995)	3,530
Contract assets		1,199	8,892
Notes receivable		( 6,032)	4,473
Notes receivable from related parties		( 4,428)	( 181)
Accounts receivable		( 8,721)	29,413
Accounts receivable from related parties		( 1,576)	1,503
Other receivables		928	1,376
Inventories		( 15,537)	11,824
Prepayments		506	( 9,682)
Other current assets		360	1,416
Changes in operating liabilities
Contract liabilities		( 2,283)	7,030
Notes payables		( 500)	246
Accounts payables		13,092	2,395
Accounts payables to related parties		2,610	( 105)
Other payables		5,425	( 10,593)
Other payables to related parties		58	-
Provisions for liabilities		( 2,353)	146
Other current liabilities		533	1,432
Accrued pension liabilities		( 8,933)	( 8,838)
Cash inflows (outflows) generated from operations		( 4,901)	58,688
Interest received		3,319	4,988
Interest paid		( 15,348)	( 17,108)
Dividend received		9,251	9,713
Income tax paid		( 41)	( 2,871)
Net cash inflows (outflows) from operating activities		( 7,720)	53,410

(continued)

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Unit: NT thousand

Tecom Co., LTD. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 and 2024

	Notes	2025	2024
Cash flows from investing activities:
Decrease (increase) in financial assets at amortized cost		($ 2,408)	$ 79,243
Proceeds from disposal of financial assets at fair value through other comprehensive income		4,434	40,441
Acquisition of property, plant and equipment	6(29)	( 4,240)	( 7,793)
Proceeds from disposal of property, plant and equipment		18	-
Acquisition of intangible assets	6(12)	( 3,708)	( 2,129)
Decrease in guaranteed deposit paid		408	67
Net cash inflows (outflows) from investing activities		( 5,496)	109,829
Cash flows from financing activities:
Increase in short-term borrowings	6(30)	811,500	1,868,000
Decrease in short-term borrowings	6(30)	( 872,000)	( 1,922,000)
Increase in long-term borrowings	6(30)	200,000	-
Decrease in long-term borrowings	6(30)	( 200,000)	-
Increase (decrease) in guaranteed deposit received	6(30)	( 7)	332
Repayment of principal portion of lease liabilities	6(30)	( 12,172)	( 12,613)
Cash dividend paid to minority shareholders		-	( 15,112)
Treasury share transactions	6(17)	5,481	-
Net cash flows used in in financing activities		( 67,198)	( 81,393)
Net increase (decrease) in cash and cash equivalents		( 80,414)	81,846
Cash and cash equivalents at the beginning of the year	6(1)	225,484	143,638
Cash and cash equivalents at the end of the year	6(1)	$ 145,070	$ 225,484

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

Chairman: Wu, Su-Chiu

CEO: Tien, Ying-Juei

Accounting Manager: Li, Mei-Ling

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Tecom Co., LTD. and Subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025 and 2024
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)

COMPANY HISTORY AND BUSINESS SCOPE

Tecom Co., LTD. (the “Company”) was incorporated in Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in research, development, manufacture and sales of private branch exchange (PBX) systems and its components and peripherals, and Mobile Health managing system and monitor equipment. The Company is held by TECO Electric & Machinery Co., Ltd. with 63.52% of the shares, which is the ultimate parent company of the Group.

APPROVAL DATE AND PROCEDURES OF THE CONSOLIDATED FINANCIAL STATEMENTS

These consolidated financial statements were authorized for issuance by the Board of Directors on March 9, 2026.

NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS ADOPTED

(1). Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards accounting standards (“IFRSs accounting standards”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC 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 on the Group’s financial condition and financial performance based on the Group’s assessment.

(2). Effect of new issuances of or amendments to IFRSs accounting standards that came into effect as endorsed by the FSC but not yet adopted by the Group

New standards, interpretations and amendments that came into effect as 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 Contract”	January 1, 2023
Amendments to IFRS 17 “Insurance Contract”	January 1, 2023
Amendments 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

Except for those explained as follows, the above standards and interpretations have no significant impact on the Group’s financial condition and financial performance based on the Group’s assessment. Relevant affected amounts will be disclosed upon completion of assessment.

IFRS 9 and Amendments to IFRS 7 ‘Amendments to Classification and Measurement of Financial Instruments’

A. Clarifying the recognition and derecognition dates of some financial assets and liabilities, and adding the provision that an entity is permitted to deem a financial liability (or a part of a financial liability) that is settled in cash using an electronic payment system discharged before the settlement date if, and only if, the entity has initiated the payment instruction and the following conditions are met:

i. the entity does not have the ability to withdraw, stop or cancel the payment instruction;
ii. the entity does not have the practical ability to access the cash to be used for the settlement due to the payment instruction; and
iii. the settlement risk associated with the electronic payment system is not significant.

B. Updating the disclosure requirements for equity instruments designated as fair value through other comprehensive income (FVTOCI) through an irrevocable election, the fair value should be disclosed by category, without the need to disclose fair value information for each individual item. Additionally, the amount of fair value gains or losses recognized in other comprehensive income during the reporting period should be disclosed, separately showing the fair value gains or losses related to investments derecognized during the reporting period and those related to investments still held at the end of the reporting period; and the cumulative gains or losses transferred to equity upon derecognition of investments during the reporting period.

(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 IFRS 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 IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note)
IFRS 19 “Subsidiaries without Public Accountability”	January 1, 2027
Amendments to IAS21 “The Effects of Changes in Foreign Exchange Rates”	January 1, 2027

Note: The FSC issued a press release on September 25, 2025 to declare that public companies will apply International Financial Reporting Standards 18 (hereinafter referred to as “IFRS 18”) since the fiscal year of 2028. Entities that require to apply IFRS 18 in advance may elect to apply IFRS 18 in advance after FSC’s endorsement.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 “Presentation and Disclosure in Financial Statements” will replace IAS 1, and update the structure of statements of comprehensive income, increase the disclosure of management-defined performance measures, and enhance guidance on the principles of aggregation and disaggregation in the primary financial statements or in the notes.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unless otherwise stated, the principal accounting policies applied in the preparation of these consolidated financial statements set out below have been consistently applied to all the periods presented.

(1) Compliance statement

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, 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 "IFRS accounting standards").

(2) Basis of preparation

A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention :

(a) Financial assets at fair value through profit or loss
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with IFRS accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements

(a) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group 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. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Transactions, balances and unrealized gains and losses between companies within the Group have been eliminated. The accounting policies of subsidiaries have been adjusted as necessary to be consistent with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
(d) If the changes in the shares of the subsidiaries do not result in a loss of control (transactions with non-controlling interests), they are treated as equity transactions, that is, transactions between the owners. The difference between the adjustment amount of non-controlling interests and the fair value of the consideration paid or receivable is recognized directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. The accounting principles of all amounts previously recognized in other comprehensive income in relation to the subsidiary shall be as same as the basis of dispose of related assets or liabilities, which means any gain or loss previously recognized as other comprehensive income upon disposal of the related assets or liabilities will be reclassified to profit or loss when control of the subsidiary is lost.

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B. Subsidiaries included in the consolidated financial statements:

Investor	Subsidiary	Main Business Activities	Ownership (%)
			December 31, 2025	December 31, 2024	Explanation
Name	Name
Beaycom	Research, manufacture and sales of optical fiber communication systems and optical fibers, optical fiber cables and their components	43.76	43.76	Note
Tecom Co., LTD.	Opto-Electronics Technology Co., Ltd.
Tecom Co., LTD.	Wu Han Tecom Co., Ltd.	100.00	100.00

Notes : As of December 31, 2025 and 2024, the Company had full board seats of Baycom Opto-Electronics Technology Co., Ltd. and had control power. Although it did not directly or indirectly hold more than half of the voting shares, it was regarded as a subsidiary.

Subsidiaries not included in the consolidated financial statements: None.
Adjustments for subsidiaries with different balance sheet dates: None.
Significant restrictions: None.
Subsidiaries that have non-controlling interests that are material to the Group :

The total non-controlling interest of the Group as of December 31, 2025 and 2024 was respectively $251,497 and$ 241,783. The information on non-controlling interest and respective subsidiaries is as follows:

Subsidiary	Principal Place of business	Non-controlling interest
		December 31, 2025		December 31, 2024
		Amount	Ownership (%)	Amount	Ownership (%)
Baycom	Taiwan	$ 251,497	56.24%	$ 241,783	56.24%
Opto-Electronics Technology Co., Ltd.

Summarized financial information of the subsidiary :

Balance sheets

	Baycom Opto-Electronics Technology Co., Ltd.
	December 31, 2025	December 31, 2024
Current assets	$ 480,951	$ 298,988
Non-current assets	16,266	157,266
Current liabilities	( 49,263)	( 25,586)
Non-current liabilities	( 742)	( 729)
Total net assets	$ 447,212	$ 429,939

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Statements of comprehensive income

	Baycom Opto-Electronics Technology Co., Ltd.
	2025	2024
Revenue	$ 253,989	$ 136,810
Net profit (loss) before tax	11,793	( 3,946)
Income tax benefit (expense)	-	115
Net profit (loss), current	11,793	( 3,831)
Other comprehensive income (loss), net of tax	-	-
Total comprehensive income (loss) for the period	$ 11,793	($ 3,831)
Total comprehensive income (loss) attributable to non-controlling interests	$ 6,632	($ 2,154)
Dividends paid to non-controlling interests	$ -	$ 15,112

Statements of cash flows

	Baycom Opto-Electronics Technology Co., Ltd.
	2025	2024
Net cash inflows generated by operating activities	$ 4,792	$ 17,533
Net cash inflows (outflows) generated By (used in) investing activities	( 19,112)	13,315
Net cash outflows used in financing activities	( 6,697)	( 33,435)
Net decrease in cash and cash equivalents	( 21,017)	( 2,587)
Cash and cash equivalents at beginning of period	107,005	109,592
Net cash flows from financing activities	$ 85,988	$ 107,005

(4). Foreign currency translation

The financial statements of each individual consolidated entity were expressed in the currency which reflected its primary economic environment (functional currency). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation currency.

Foreign currency transactions and balances

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.
Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated 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.
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 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.
All foreign exchange gains and losses are presented in the statement of comprehensive income within "other gains and losses".

(5). Classification of current and non-current items

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

(1) Assets arising from operating activities that are to be realized, or are intended to be sold or consumed within the normal operating cycle;

(2) Assets held mainly for trading purposes;

(3) Assets and liabilities to be realized within twelve months after the reporting period;

(4) Cash or cash equivalents, except those that are restricted to exchanging or settling liabilities within at least twelve months after the date of the reporting period;

The Group classifies all assets not meeting the above criteria as non-current assets.

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

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

(2) Liabilities arising mainly from trading purposes;

(3) Those expected to be settled within twelve months after the reporting period;

(4) The Group does not have the right to defer settlement of the liability for at least twelve months after the reporting period.

The Group classifies all liabilities not meeting the above criteria as non-current liabilities.

(6). 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 above criteria and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents.

(7). Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.
On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
At initial recognition, the Group measures the financial assets at fair value, and recognizes relevant transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and the gains or losses are recognized in profit or loss.
Dividends are recognized in profit or loss as dividend revenue when the Group's right to receive payment of the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the Group, and the amount of the dividend can be measured reliably.

(8). Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income are equity instruments which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive.
A regular way purchase or sale of financial assets at fair value through other comprehensive income are recognized and derecognized, as applicable, using trade date accounting.
At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value. The changes in fair value of equity instruments are recognized in other comprehensive income. The cumulative gain or loss recognized in other comprehensive income shall not be reclassified to profit or loss upon derecognition, but instead shall be transferred to the "retained earnings" item. Dividends are recognized in profit or loss as dividend revenue when the Group's right to receive payment of the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the Group, and the amount of the dividend can be measured reliably.

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(9). Financial assets at amortized cost

Financial assets at amortized cost are those that meet all of the following criteria:
(1) The objective of the Group’s business model is achieved by collecting contractual cash flows.
(2) The assets’ contractual cash flows represent solely payments of principal and interest.
A regular way purchase or sale of financial assets at amortized cost are recognized and derecognized, as applicable, using trade date accounting.
At initial recognition, the Group measures the financial assets at fair value plus transaction costs, and subsequently recognizes interest income by effective interest rate method based on amortization procedures during the outstanding period. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.
The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.
The bank deposit which is subject to restriction on use does not meet the definition of cash and cash equivalents, and is classified as financial assets measured at amortized cost.

(10). Accounts and notes receivable

Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(11). Impairment of financial assets

At each balance sheet date, the Group shall assess whether the credit risk on financial assets at amortized cost and lease payments receivables has increased significantly since initial recognition. The Group shall consider all the reasonable and provable information (including foreseeing information). If the credit risk on the financial assets has not increased significantly since initial recognition, the Group shall measure the loss allowance for that instrument at an amount equal to 12-month expected credit losses. If the credit risk on a financial instrument has increased significantly since initial recognition, the Group shall measure the loss allowance for that instrument at an amount equal to lifetime expected credit losses. For those accounts receivables or contract assets not containing significant financing component, the Group shall measure the loss allowance at an amount equal to lifetime expected credit losses.

(12). Leasing arrangements—operating lease

Lease income from an operating lease net of any incentives given to the lessee is recognized in profit or loss on a straight-line basis over the lease term.

(13). Inventories

Inventories are measured at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads. 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 the estimated costs necessary to make the sale.

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(14). Non-current assets held for sale

A non-current asset is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use, and its sale is highly probable, and is measured at the lower of its carrying amount and fair value less costs to sell.

(15). Investments accounted for under the equity method - associates

Associates are all entities over which the Group 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.
An investment in an associate is adjusted thereafter to recognize the Group’s share of profit or loss and other comprehensive income of the associate in profit or loss and other comprehensive income accordingly. If the Group’s share of losses of an associate equals or exceeds its interest in the associate (including any receivables without collaterals), the Group discontinues recognizing its share of further losses. After the Company’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.
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 Group’s ownership percentage of the associate, the Group recognizes change in ownership interests in the associate in ‘capital reserve’ in proportion to its ownership.
The Group’s share of unrealized profits or losses arising from transactions between the Group and associates are eliminated. Unless transactions provide evidence of an impairment loss of the assets transferred, the unrealized losses shall be eliminated as well. Appropriate adjustments of accounting policies of the associates have been made to be uniform with the accounting policies of the Group.
When the Group disposes of an associate, if the Group loses significant influence of the associate, the amount previously recognized in other comprehensive income which relates to the associate, the accounting treatment shall be the same as disposal of the related assets and liabilities. That is, if a gain or loss previously recognized in other comprehensive income by the Group would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss to profit or loss. If the Group still has significant influence over the associate, the Group shall only reclassify to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest

(16). Property, plant and equipment

Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
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 Group 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.
Property, plant and equipment shall be depreciated over estimated useful life by straight-line method under cost model. Each component of property, plant and equipment that is significant in relation to the total cost of the item is depreciated separately.
The residual value, the useful life, and depreciation method of an item of property, plant, and equipment shall be reviewed at each financial year-end and, if expectations of residual value and useful life differ from previous estimates, or there are significant changes in the pattern in which the asset’s future economic benefits are expected to be consumed, the changes shall be accounted for as a change in an accounting estimate in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors.” The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures
25 ~ 55 years

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Machinery equipment 3 ~ 5 years
Test equipment 3 ~ 5 years
Other equipment 2 ~ 5 years

(17). Lessee's lease transactions – Right-of-use Assets / Lease liabilities

The Group recognizes right-of-use assets and lease liabilities for all leases at the inception of the lease. When a lease contract is a short-term lease or a lease of a low-value underlying asset, the lease payments are recognized as an expense on a straight-line basis over the lease term.
Lease liabilities are recognized at the present value of the lease payments outstanding at the inception of the lease, discounted at the Group's incremental borrowing rate of interest. Lease payments are fixed rental payments.
Right-of-use assets are recognized at cost at the inception of the lease, which is the original measurement of lease liabilities and any original direct costs incurred.

Right-of-use assets are measured by cost model subsequently. The Group shall depreciate the right-of-use assets from the commencement date to the earlier of the useful life of the right-of-use asset or the end of the lease term. When re-evaluating lease liabilities, any re-measurement amounts of lease liabilities shall be adjusted accordingly with the right-of-use asset.

(18). Investment properties

Investment property is recognized at acquisition cost and subsequently measured using the cost model. Except for land, depreciation is provided on a straight-line basis over the estimated useful lives of 10~55 years.

(19). Intangible assets

Intangible assets including computer software and technology are amortized on a straight-line basis over its estimated useful life of 1 ~ 3 years.

(20). Impairment of non-financial assets

If any indication an asset may be impaired is present, the Group shall assess the recoverable amount of the asset at the balance sheet date. If the recoverable amount of the asset is less than it carrying amount, impairment loss shall be recognized. Recoverable amount is the higher of the asset's net fair value and its value in use. If the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss shall be reversed. The increased carrying amount of an asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined, net of amortization or depreciation, had no impairment loss been recognized for the asset in prior years.

(21). Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Subsequently, any difference between the proceeds, net of transaction costs, and the redemption value is recognized in profit or loss over the period of the borrowings as interest expenses using the effective interest method.
When it is likely that some or all of the credit limit will be drawn down, the cost incurred at the establishment of the limit is recognized as transaction costs of the loan and deferred to be recognized as an adjustment to the effective interest rate when advances are made; when it is unlikely that some or all of the credit limit will be drawn down, the cost is recognized as a prepayment and amortized over the period related to the limit.

(22). Notes and accounts payables

Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
The short-term notes and accounts payables without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(23). Derecognition of financial liabilities

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

(24). Provisions

Provisions (including warranty and decommissioning liabilities) are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

(25). Employee benefits

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.

Pensions

(1) 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.

(2) Defined benefit plans

A. 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 Group 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 high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

B. Remeasurements arising on defined benefit plan are recognized in other comprehensive income in the period in which they arise and are recorded as retaining earnings.

Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' 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 subsequent actual distributed amounts is accounted for as changes in estimates.

(26). Income tax

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.
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 and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax

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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 shareholders meeting resolves the earning distribution.

Deferred income tax is recognized, using the balance sheets liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction 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 income tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (or tax law) that have been enacted or substantially enacted by the end of the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
Deferred income 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 the end of the balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.
Current income tax assets and liabilities are offset and the net amount is reported in the balance sheets 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 income tax assets and liabilities are offset on the balance sheets 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.
A deferred tax asset shall be recognized for the carryforward of unused tax credits to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(27). Share capital

Ordinary shares are classified as equity. The classification of preferred shares is based on the evaluation of the specific rights attached to the preferred shares in relation to the substance and definition of the contractual agreement and financial liabilities and equity instruments. When the basic characteristics of financial liabilities are displayed, they are classified as liabilities, otherwise they are classified as equity. The net amount after deducting income tax from the increase in costs directly related to the issuance of new shares is listed in equity as a price deduction.
When the Company repurchases the issued shares, the consideration paid shall be recognized as a reduction of shareholders' equity after netting off any directly attributable incremental costs. When the repurchased shares are reissued, the difference between the sales proceeds received and the carrying amount, net of any directly attributable incremental costs and any related income taxes, shall be recognized as an adjustment to equity.

(28). Revenue recognition

Sales of goods

(1) The Group is engaged in manufacture and sales of business communication systems, smart electromechanical and optical fiber related products. Sales are recognized when control of the products has been transferred, when the products are delivered to the customer, 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 Group has objective evidence that all criteria for acceptance have been satisfied.

(2) Sales revenue is recognized based on the price specified in the contract, net of the estimated sales discounts. Historical experience is usually used to estimate the sales

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discounts. Revenue is recognized only to the extent that it is highly probable that a significant reversal in the amount will not occur, and shall be re-estimated at each balance sheet date. A refund liability is recognized at expected sales discounts payable to customers in relation to sales made until the end of the reporting period. The sales are made mainly with a credit term of open account 30 to 120 days. As the time interval between the transfer of committed goods or services and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

(3) The Group's obligation to provide a repair for faulty products under the standard warranty terms is recognized as a provision when sales are made.
(4) An accounts 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.
(5) Customer shall pay the contract price according to the payment terms agreed upon. If the customer pays in advance before the transfer of goods control, it shall be recognized as a contract liability and recognized as revenue after the transfer of goods control.

Costs of obtaining contracts with customers

Although the incremental costs incurred in obtaining customer contracts are expected to be recoverable, as the related contract period is less than one year, such costs are expensed upon occurrence.

(29). Government grants

Government grants shall be recognized at fair value when there is reasonable assurance that the Group will comply with the conditions attaching to them, and that the grants will be received. Government grants shall be recognized in profit or loss on a systematic basis over the periods in which the Group recognizes as expenses the related cost for which the grants are intended to compensate.

(30). Operating segments

Operating segments are reported in a manner consistent with the internal management reports provided to the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

MAJOR SOURCES OF UNCERTAINTY ARISING FROM SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS

When preparing these consolidated financial statements, the management has exercised its judgment to determine the accounting policies adopted and has made accounting estimates and assumptions based on reasonable expectations of future events, considering the circumstances as of the balance sheet date. Significant accounting estimates and assumptions may involve inherent uncertainties and could differ from actual results. The management will continue to evaluate and adjust these estimates and assumptions based on historical experience and other factors. Such estimates and assumptions carry a risk of significant adjustments to the carrying amounts of assets and liabilities in the next financial year. Please refer to the following explanation regarding the uncertainties associated with significant accounting judgments, estimates, and assumptions:

(1) Critical judgments in applying the Group's accounting policies

None.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date based on judgments and estimates. Due to the rapid technology innovation, the Group 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.

As of December 31, 2025 the carrying amount of the Group's inventories was $120,618.

EXPLANATION OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 169	$ 194
Checking accounts and demand deposits	86,760	112,359
Time deposits	58,141	101,508
Deposits in transit	-	11,423
	$ 145,070	$ 225,484

The Group transacts with a variety of financial institutions with high credit quality for the purpose of dispersing credit risk, so it expects that the probability of counterparty default is low.
The information of cash classified as "Financial assets at amortized cost" due to restrictions on use is stated in Note 8.

(2) Financial assets at fair value through profit or loss

Assets	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 21,924	$ 11,365
Fair value adjustments	54	27
	$ 21,978	$ 11,392

Amounts recognized in profit in relation to financial assets at fair value through profit or loss are listed below:

	2025	2024
Financial assets and mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 592	$ 492

(3) Financial assets at fair value through other comprehensive income

Items	December 31, 2025	December 31, 2024
Non-current items:
Equity instruments
Listed and OTC stocks	$ 200,024	$ 200,024
Emerging market stocks	-	18,415
Unlisted, non-OTC stocks, and stocks in emerging market	87	87
	200,111	218,526
Fair value adjustments	27,112	11,025
	$ 227,223	$ 229,551

The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. As of December 31, 2025 and 2024 the fair value above is respectively $227,223 and $229,551.
Amounts recognized in profit or loss and comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	2025	2024
Equity instruments at fair value through other comprehensive income
Changes in fair value recognized in other comprehensive income (loss)	$ 2,105	$ 3,803
Accumulated gains (losses) transferred to retained earnings due to derecognition	($ 13,980)	$ 19,557
Dividend income recognized in profit or loss
Those held at the end of the current period	$ 8,518	$ 8,440

Costs of financial assets at fair value through other comprehensive income sold in 2025 amounted to $18,414, proceeds from the disposal amounted to $4,434. The accumulated losses recognized in other comprehensive income transferred to retained earnings amounted to $13,980.
Details of the Group’s financial assets at fair value through other comprehensive income pledged to others are provided in Note 8.

~28~

(4) Financial assets at amortized cost

Items	December 31, 2025	December 31, 2024
Current items:
Demand deposit	$ 2,000	$ 23,512
Time deposits	175,809	151,889
Total	$ 177,809	$ 175,401

Amounts recognized in profit or loss in relation to financial assets at amortized cost are listed below:

	2025	2024
Interest income	$ 1,907	$ 2,572

Without considering other credit enhancements, the amounts most representing the maximum credit risk exposure of financial assets at amortized cost as of December 31, 2025 and 2024 are $177,809 and $175,401, respectively.
Please refer to Note 8 for the details of the financial assets measured at amortized cost pledged as collaterals as of December 31, 2025 and 2024.
As the counterparty of the Group's investment in time deposits are financial institutions of good credit quality, the default risk is expected to be extremely low.

(5) Notes and Accounts receivable (including from related party)

	December 31, 2025	December 31, 2024
Notes receivable	$ 18,893	$ 12,861
Notes receivable from related party	5,009	581
Less: Loss allowance	-	-
	$ 23,902	$ 13,442
Accounts receivable	$ 109,746	$ 101,673
Accounts receivable from related party	8,112	6,536
Less: Loss allowance	( 2,339)	( 2,974)
	$ 115,519	$ 105,235

The aging analysis of notes and accounts receivable is as follows:

	December 31, 2025		December 31, 2024
	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
Not past due	$ 101,414	$ 23,902	$ 95,982	$ 13,442
Less than 30 days past due	5,949	-	3,364	-
Between 31 and 90 days past due	110	-	1,841	-
Between 91 and 180 days past due	8,666	-	4,074	-
Between 181 and 270 days past due	26	-	535	-
More than 271 days past due	1,693	-	2,413	-
	$ 117,858	$ 23,902	$ 108,209	$ 13,442

The aging analysis is based on the number of days overdue.

The accounts receivables and notes receivables as of December 31, 2025 and 2024 were due to the contracts with customers. As of January 1, 2024, the balance of account receivables from contracts with customers was $156,851.
Without considering other credit enhancements, the amounts most representing the maximum credit risk exposure of notes receivables as of December 31, 2025 and 2024 are $23,902 and $13,442, respectively. The amounts most representing the maximum credit risk exposure of accounts receivables as of December 31, 2025 and 2024 are $115,519 and $105,235, respectively.
Please refer to Note 12(2) for the information on the credit risk of accounts and notes receivables.

(6) Inventories

	December 31, 2025
	Cost	Loss allowance	Carrying amount
Finished goods	$ 75,091	($ 5,555)	$ 69,536
Work in process	3,877	( 549)	3,328
Raw materials	51,731	( 3,977)	47,754
	$ 130,699	($ 10,081)	$ 120,618
	December 31, 2024
	Cost	Loss allowance	Carrying amount
Merchandise	$ 2,270	$ -	$ 2,270
Finished goods	87,010	( 37,008)	50,002
Work in process	9,453	( 692)	8,761
Raw materials	66,925	( 22,877)	44,048
	$ 165,658	($ 60,577)	$ 105,081

Inventory costs recognized as expenses or losses are as follows:

	2025	2024
Cost of inventories sold	$ 479,267	$ 414,527
Maintenance costs	450	601
Construction cost	-	3,977
Inventory valuation losses	10,424	8,127
Others	21,729	13,363
	$ 511,870	$ 440,595

(7) Non-current assets held for sale

The Group resolved by the board of directors on October 31, 2025 to sell the whole shares of investments in three associates accounted for using equity method, and transferred the relevant account to non-current assets held for sale. The transactions have been completed in January 2026. Those non-current assets held for sale as of December 31, 2025 amounted to $19,152.

(8) Investments accounted for using equity method

	2025	2024
At January 1	$ 18,205	$ 18,273
Share of profit or loss of investments
accounted for using equity method	1,570	1,206
Earnings distribution of investments
accounted for using equity method	( 623)	( 1,274)
Transferred to non-current assets held for sale	( 19,152)	-
At December 31	$ -	$ 18,205
	December 31, 2025	December 31, 2024
Associate :
Tecnos International Consulting Co., Ltd. (Note)	$ -	$ 9,752
Teco Tour Travel Service co., ltd. (Note)	-	1,555
Taian Technology Sdn. Bhd.	-	3
A-Tel Inc.	-	-
E-Joy International Co., Ltd. (Note)	-	6,895
	$ -	$ 18,205

Note: Those have been transferred to non-current assets held for sale in October 2025. Please refer to the explanations in Note 6(7).

The Group has no individual significant associate.
Aggregate information of the carrying amounts and operation results of the Group's individual insignificant associates was as follows:

	2025	2024
Loss from continuing operations	($ 10,543)	($ 5,470)
Other comprehensive income (net after tax)	-	-
Total comprehensive loss for the year	($ 10,543)	($ 5,470)

(9) Property, plant and equipment

	2025
	Buildings and structures	Machinery equipment	Test equipment	Other equipment	Total
At January 1
Cost	$ 156,749	$ 15,446	$ 3,935	$ 17,969	$ 194,099
Accumulated depreciation and impairment	( 94,608)	( 4,603)	( 353)	( 9,086)	( 108,650)
	$ 62,141	$ 10,843	$ 3,582	$ 8,883	$ 85,449
At January 1	$ 62,141	$ 10,843	$ 3,582	$ 8,883	$ 85,449
Additions	-	1,228	182	1,286	2,696
Disposals	-	-	-	( 50)	( 50)
Depreciation expense	( 2,822)	( 2,116)	( 616)	( 2,984)	( 8,538)
At December 31	$ 59,319	$ 9,955	$ 3,148	$ 7,135	$ 79,557
At December 31
Cost	$ 156,749	$ 16,353	$ 4,037	$ 13,634	$ 190,773
Accumulated depreciation and impairment	( 97,430)	( 6,398)	( 889)	( 6,499)	( 111,216)
	$ 59,319	$ 9,955	$ 3,148	$ 7,135	$ 79,557

~32~

	2024
	Buildings and structures	Machinery equipment	Test equipment	Other equipment	Total
At January 1
Cost	$ 178,965	$ 17,843	$ 483	$ 19,362	$ 216,653
Accumulated depreciation and impairment	( 104,795)	( 4,981)	( 162)	( 8,364)	( 118,302)
	$ 74,170	$ 12,862	$ 321	$ 10,998	$ 98,351
At January 1	$ 74,170	$ 12,862	$ 321	$ 10,998	$ 98,351
Additions	-	263	3,452	3,389	7,104
Reclassifications	( 9,364)	-	-	-	( 9,364)
Depreciation expense	( 2,665)	( 2,282)	( 191)	( 5,504)	( 10,642)
At December 31	$ 62,141	$ 10,843	$ 3,582	$ 8,883	$ 85,449
At December 31
Cost	$ 156,749	$ 15,446	$ 3,935	$ 17,969	$ 194,099
Accumulated depreciation and impairment	( 94,608)	( 4,603)	( 353)	( 9,086)	( 108,650)
	$ 62,141	$ 10,843	$ 3,582	$ 8,883	$ 85,449

The major components of the building and construction of the Group are buildings, which are depreciated over 55 years, and the rest are decoration projects, which are depreciated over 25 years.
Please refer to Note 8 for the information on property, plant and equipment pledge as collaterals.

(10) Lease transactions - lessee

The underlying assets leased by the Group include land, buildings and business vehicles, etc., and the lease periods after considering the extension options and the period of the contract are usually from 1 to 23 years. The lease contracts are negotiated individually and include various terms and conditions. In addition to the leased assets not being used as collateral for borrowing, there are no other restrictions.
The lease period of part of the buildings and equipment does not exceed 12 months, and the underlying assets of the lease payments for assets of low value are copy machines, etc.
The carrying amount of right-of-use assets and depreciation expenses recognized are shown as below:

	Carrying amount
	December 31, 2025	December 31, 2024
Land	$ 147,314	$ 161,846
Building	536	1,800
Transportation equipment (business car)	-	-
	$ 147,850	$ 163,646
	Depreciation expense
	2025	2024
Land	$ 7,753	$ 8,092
Building	5,529	5,530
Transportation equipment (business car)	-	367
	$ 13,282	$ 13,989

Additions to the right-of-used assets for the years ended December 31, 2025 and 2024 amounted to $4,265 and $3,680, respectively.
The information on profit or loss related to lease contracts is shown below:

Items affecting current profit or loss	2025	2024
Interest expense on the lease liabilities	$ 4,170	$ 4,541
Expenses for short-term lease contracts	$ 4,020	$ 2,768
Expenses for the leases of low-value assets	$ 290	$ 270

The cash outflows arising from leases for the years ended December 31, 2025 and 2024 amounting to $20,652 and $20,192, respectively.
When determining the lease term, all facts and circumstances that would give rise to economic incentives for the exercise of any extension options were taken into consideration. If a significant event occurs that affects the evaluation of exercising any extension options, the lease term will be re-estimated.

(11) Investment properties

	2025	2024
	Buildings and structures	Buildings and structures
January 1
Cost	$ 22,216	$ -
Accumulated depreciation	(13,409)	-
	$ 8,807	$ -
January 1	$ 8,807	$ -
Reclassification	-	9,364
Depreciation expenses	(400)	(557)
December 31	$ 8,407	$ 8,807
December 31
Cost	$ 22,216	$ 22,216
Accumulated depreciation	(13,809)	(13,409)
	$ 8,407	$ 8,807

Rental income and direct operating expenses of investment properties:

	2025	2024
Rental income from investment properties	$ 5,050	$ 5,049
Direct operating expenses arising from investment properties generating rental income	$ 136	$ 169

The fair value of the investment properties held by the Group amounted to $40,098 and $36,103 as of December 31, 2025 and 2024, respectively, which is based on the valuation result from the third parties and belongs to level 3 fair value.

(12) Intangible assets

	2025
	Computer software	Technology	Total
At January 1
Cost	$ 3,755	$ -	$ 3,755
Accumulated amortization	( 1,927)	-	( 1,927)
	$ 1,828	$ -	$ 1,828
At January 1	$ 1,828	$ -	$ 1,828
Additions	3,708	-	3,708
Amortization expenses	( 2,117)	-	( 2,117)
At December 31	$ 3,419	$ -	$ 3,419
At December 31
Cost	$ 5,078	$ -	$ 5,078
Accumulated amortization	( 1,659)	-	( 1,659)
	$ 3,419	$ -	$ 3,419
	2024
---	---	---	---
	Computer software	Technology	Total
At January 1
Cost	$ 2,053	$ 2,143	$ 4,196
Accumulated amortization	( 987)	( 1,835)	( 2,822)
	$ 1,066	$ 308	$ 1,374
At January 1	$ 1,066	$ 308	$ 1,374
Additions	2,232	-	2,232
Amortization expenses	( 1,367)	( 308)	( 1,675)
Others	( 103)	-	( 103)
At December 31	$ 1,828	$ -	$ 1,828
At December 31
Cost	$ 3,755	$ -	$ 3,755
Accumulated amortization	( 1,927)	-	( 1,927)
	$ 1,828	$ -	$ 1,828

Intangible assets are amortized as follows :

(13) Short-term borrowings

	2025	2024
Operating costs	$ 332	$ 236
Selling expenses	704	471
Administrative expenses	583	416
Research and development expenses	498	552
	$ 2,117	$ 1,675
Type of borrowings	December 31, 2025	Interest rate range
---	---	---
Bank borrowings
Secured borrowings	$ 128,000	2.05%~2.48%
Credit borrowings	81,500	2.05%~2.59%
	$ 209,500
Type of borrowings	December 31, 2024	Interest rate range
Bank borrowings
Secured borrowings	$ 155,000	2.29%~2.64%
Credit borrowings	115,000	2.30%~2.995%
	$ 270,000

The interest expenses arising from long-term and short-term borrowings recognized in profit or loss for the years 2025 and 2024 amounted to $11,146 and $12,437, respectively.

(14) Other payables

	December 31, 2025	December 31, 2024
Payables for salaries	$ 33,783	$ 27,832
Payables for dividends	55	55
Others	30,669	32,685
	$ 64,507	$ 60,572

(15) Long-term borrowings

Type of borrowing	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2025
Bank Secured Borrowings	May 23, 2025~ May 23, 2028. Interests shall be paid monthly, and the principal shall be repaid at maturity.	2.45%	Note 8	$ 200,000
Less: the current portion				-
				$ 200,000
Type of borrowing	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2024
Bank Secured Borrowings	December 29, 2021~ December 29, 2024. Interests shall be paid monthly, and the principal shall be repaid at maturity.	2.54%	Note 8	$ 200,000
Less: the current portion				( 200,000)
				$ 200,000

(16) Pensions

1.(1) The Company has a defined benefit pension plan in accordance with the Labor Standards Law of Taiwan, 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 Law. 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 contributes monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

(2) The amounts recognized in the balance sheets are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations($ contributed)	50,171	($ 57,329)
Fair value of plan assets	27,089	24,194
	( 23,082)	( 33,135)
	800	806
Cumulative unadjusted amount
Net liabilities recognized in the balance sheets	($ 22,282)	($ 32,329)

(3) Changes in net defined benefit liabilities are as follows:

	2025
	Present value of defined benefit obligations		Fair value of plan assets	Net defined benefit liability
	($	57,329)	$ 24,194	($ 33,135)
At January 1	(	130)	-	( 130)
Current service costs	(	917)	387	( 530)
Interest income (expenses)	(	58,376)	24,581	( 33,795)
Remeasurements
Actuarial gains		-	1,505	1,505
Effects of changes inFinancial assumptions		871)	-	( 871)
Experience adjustments		479	-	479
	(	392)	1,505	1,113
		-	9,600	9,600
Pension fund contribution		8,597	( 8,597)	-
Paid pension
At December 31	($	50,171)	$ 27,089	($ 23,082)
	2024
---	---	---	---	---
	Present value of defined benefit obligations		Fair value of plan assets	Net defined benefit liability
	($	65,199)	$ 18,638	($ 46,561)
At January 1	(	184)	-	( 184)
Current service costs	(	782)	224	( 558)
Interest income (expenses)	(	66,165)	18,862	( 47,303)
Remeasurements

~37~

	-	2,351	2,351
Actuarial gains
Effects of changes in financial assumptions	1,487	-	1,487
	730	-	730
Experience adjustments	2,217	2,351	4,568
	-	9,600	9,600
Pension fund contribution	6,619	(6,619)	-
Paid pension	($ 57,329)	$ 24,194	($ 33,135)
At December 31

(4) 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 asset 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.

(5) The principal actuarial assumptions used in calculating pension are summarized as follows:

	2025	2024
Discount rate	1.30%	1.60%
Future salary increases rate	1.70%	1.70%

The assumption of future mortality is estimated based on the sixth empirical life table in Taiwan.

The analysis of the present value of the definite benefit obligations for changes in the main assumptions adopted is as follows:

	Discount rate		Future salary increases rate
	Increase by 1%	Decrease by 1%	Increase by 1%	Decrease by 1%
December 31, 2025
Effect on present value of defined benefit obligations	($ 2,911)	$ 2,978	$ 2,459	($ 2,419)
December 31, 2024
Effect on present value of defined benefit obligations	($ 3,603)	$ 3,690	$ 3,106	($ 3,052)

The sensitivity analysis above is based on the analysis of the impact of a single assumption change with other assumptions unchanged. In practice, many assumptions may be correlated. The methods used in the sensitivity analysis in this period are the same as those used in calculation of net pension liabilities in the balance sheets.

The method and assumptions used in the sensitivity analysis in this period are the same as those in the previous period.

(6) The Group plans to contribute $9,600 to the pension plan in 2026.

(7) As of December 31, 2025, the weighted average duration of the pension plan is 6 years. The amount of pension that the Group plans to pay is $5,696 in 2026.

(1) Effective since July 1, 2005, the Company and its domestic subsidiaries have established a

defined contribution pension plan (New Plan) under the Labor Pension Act, covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute 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.

(2) The Company's subsidiaries in Mainland China have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China are based on a certain percentage of employees' monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

(3) The pension costs recognized under the defined contribution pension plans of the Group were $12,584 and $10,719 for the years ended December 31, 2025 and 2024, respectively.

(17) Ordinary shares

As of December 31, 2024, the Company's authorized capital was $9,450,000 (including 20,000 thousand shares which are for employee stock option), and the paid-in capital was $302,719, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

The Group's outstanding shares are shown as below: (Unit: share)

	2025	2024
January 1	14,132,908	14,132,908
The Company's shares disposed by subsidiaries	139,020	-
Conversion of convertible preferred shares	16,000,001	-
December 31	30,271,929	14,132,908

The Group's outstanding preferred shares are shown as below: (Unit: share)

	2025	2024
January 1	16,000,001	16,000,001
Conversion of convertible preferred shares	(16,000,001)	-
December 31	-	16,000,001

On October 12, 2012, the Company resolved by the Extraordinary Meeting of Shareholders to handle the cash capital increase by convertible preferred shares through private placement. The purpose of the cash capital increase is to increase working capital. The number of private placement shares is 333,333,350, and the subscription price per share is $1.5. The capital increase has raised $500,000, and the change registration has been completed. The main rights and obligations of this convertible preferred shares issued by private placement are shown as below:

(1) The dividends of preferred shares are not cumulative.

(2) The dividends of preferred shares shall be paid before distributing dividends to ordinary shareholders, which are calculated at an annual interest rate of 3% based on the issue price.

(3) Except when the dividends of ordinary shares distributed in the year of the aforementioned dividends exceed 3% of the par value, preferred shares shall not participate in the distribution of ordinary shares' earnings or capital reserves before the conversion.

(4) The issuance period of this preferred shares is five years. After the period, if the shareholders do not perform the conversion, the preferred stock dividend has been changed to "3% annual interest and cumulative".

(5) The preferred shareholders have the right to vote, to elect, and to be elected.

(6) When the Company issues new shares by cash, preferred shareholders have the same preemptive stock options as ordinary shareholders

(7) When the Company distributes the residual assets, the preferred shareholders have

the same order and percentage as ordinary shareholders.

(8) According to Article 68 of the "Regulations Governing the Offering and Issuance of Securities by the Issuer," the private placement preferred shares issued can apply for public offering after three years from the date of delivery of private placement securities.

(9) The preferred shareholders have no right to sell back.

(10) Investors may submit conversion applications to the issuing company at any time, except for suspension period, since the date from two years after the issuance of preferred shares. Each preferred share shall be converted into 1 ordinary share.

(11) The Board of Directors is authorized to formulate the issuance, conversion, and other related matters of preferred shares in accordance with the relevant laws and regulations.

(12) If the Company executes capital reduction, which gives rise to shares held by shareholders reduced based on the percentage of ownership, the accumulated dividend rights of preferred shares before the capital reduction will not be eliminated due to the capital reduction. After the capital reduction, the dividends shall be accumulated according to the number of shares reduced.

The Company has approved by the board of directors' resolution on October 31, 2025 to acquire the conversion application from the whole shareholders of preferred shares. Each preferred share is convertible into one ordinary share. The registration of the aforementioned conversion has been completed.
Treasury stock

(1) The subsidiary of the Company, BAYCOM OPTO-ELECTRONICS TECHNOLOGY CO., LTD., acquired 6,447 thousand of shares of the Company in 2011 for group strategic investment plans. The carrying amount per share is $4.89, and the total cost is $31,496. The amount recognized in treasury stock for the 2,821 shares calculated by the percentage of ownership of 43.76% is $13,784.

(2) The subsidiary of the Company, BAYCOM OPTO-ELECTRONICS TECHNOLOGY CO., LTD. disposed 318 thousand shares of the Company in 2025 for group strategic investment plan. The cost amounted to $31,560, and the proceeds from the disposal amounted to $5,481. The number of shares calculated in accordance with 43.76% of ownership by the Company is 139 thousand shares, and the treasury shares written off amounted to $13,812. Besides, as the subsidiary's disposal of the Company's shares is treated as treasury share transaction, $6,237 of capital surplus and $5,176 of accumulated deficit have been written down, $11,413 in total.

(3) After capital reduction, subscription of odd shares, and sales, the number of shares held by BAYCOM OPTO-ELECTRONICS TECHNOLOGY CO., LTD. are 0 thousand and 318 thousand, respectively, as of December 31, 2025 and 2024. The average carrying amount per share amounted to both $99.34, and the fair value per share amounted to both $15.45 as of December 31, 2024.

~39~

-40-

(18) Capital reserve

Pursuant to the R.O.C. Company Act, capital reserve arising from paid-in capital in excess of par value on issuance of common stocks 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 reserve to be capitalized mentioned above should not exceed 10% of the paid in capital each year. Capital reserve should not be used to cover the accumulated deficit unless the legal reserve is insufficient.

	2025		2024
	Change in net equity of associates		Change in net equity of associates
January 1	$	6,237	$	6,237
Disposal of the parent company's shares treated as treasury share transaction	(	6,237)		-
December 31	$	-	$	6,237

(19) Retained earnings (accumulated deficits)

Under the Article of Incorporation, the annual net income of the Company shall be appropriated in accordance with the priorities listed as follows:

(1) Tax payment.
(2) Recovery of losses.
(3) Appropriation of 10% for legal reserve unless the total legal reserve accumulated has already reached the amount of Groups' authorized capital.
(4) Appropriation or reversal of special reserve pursuant to applicable law or regulation.
(5) Distribution of preferred shares dividends
(6) The Board of Directors proposes to the shareholders meeting for resolutions to distribute the amount of the net profit, which includes the balance of the undistributed profit from the previous year, as dividends to the shareholders.

The Company's dividend distribution policy is subject to the Company's current and future investment environment, fund requirements, competition from local and abroad, and capital budgets, as well as taking into consideration the interests of shareholders, balance dividend, and the long-term financial planning. The Board of Directors shall prepare a proposal for the distribution of dividends to shareholders meeting each year in accordance with the law. The proportion of cash dividends distributed from the aforementioned shareholders' dividends each year shall not exceed 50%, but shall not be lower than 5%. However, this dividend distribution policy can be adjusted by the Board of Directors after resolution and submitted to the shareholders meeting for resolution according to the actual operating conditions.
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. However, the legal reserve may be distributed by issuing new shares or by cash, for the portion in excess of 25% of the paid-in capital.
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.
The accumulated deficits off-set for 2024 were resolved by the shareholders meeting on June 19, 2025.

(20)Operating revenue

	2025	2024
Revenue from contracts with customers	$ 732,508	$ 631,414

Disaggregation of revenue from contracts with customers

The Group’s revenue can be divided into major product lines and geographical regions as follows:

2025 :

	Business communication system			Intelligent electromechanical system and others			Optical fiber cable			Total
	Taiwan	USA	Others	Taiwan	USA	Others	Taiwan	USA	Others
Revenue from contracts with external customers	$382,858	$ 186	$ 365	$65,514	$1,731	$27,865	$239,725	$5,055	$9,209	$732,508

2024 :

	Business communication system			Intelligent electromechanical system and others			Optical fiber cable			Total
	Taiwan	USA	Others	Taiwan	USA	Others	Taiwan	USA	Others
Revenue from contracts with external customers	$385,338	$7,357	$ 11,108	$65,959	$313	$24,529	$124,397	$5,236	$7,177	$631,414

Contract assets and liabilities

(1) The contract assets and contract liabilities related to revenue from contracts with customers recognized by the Group are as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities - construction contracts	$ -	$ 1,199	$ 10,091
Contract liabilities - product sales contracts	$ 9,838	$ 12,121	$ 5,091

(2) Contract liabilities at the beginning of the period recognized as revenue in the current period

	2025	2024
Product sales contract	$ 6,552	$ 3,382

(21)Interest income

	2025	2024
Interests from bank deposits	$ 3,362	$ 4,638

(22)Other income

	2025	2024
Rent income	$ 5,384	$ 5,145
Dividend income	8,628	8,440
Other income - others	7,907	602
	$ 21,919	$ 14,187

(23)Other gains and losses

	2025	2024
Losses on disposal of property, plant and equipment	$ 32	$ -
Foreign currency exchange gains	1,145	3,701
Gains on financial assets at fair value through profit or loss	592	492
Prepayments for investment transferred to losses (Note)	(10,000)	-
Other net loss	(2,375)	(1,730)
	($ 10,670)	$ 2,463

Note: As the transaction of contract deposit for subscription of shares was not performed, the deposits were transferred to other losses.

(24)Financial cost

	2025	2024
Interest expense	$ 15,365	$ 17,023

(25) Additional information on nature of expenses

	2025	2024
Employee benefits expenses	$ 214,964	$ 200,910
Depreciation expenses of property, plant and equipment	8,538	10,642
Depreciation expenses of right-of-use assets	13,282	13,989
Depreciation expenses of investment properties	400	557
Amortization expenses of intangible assets	2,117	1,675
	$ 239,301	$ 227,773

(26) Employee benefit expenses

	2025	2024
Wages and salaries	$ 174,953	$ 163,105
Labor and health insurance fee	15,297	15,393
Pension expenses	13,244	11,462
Other personnel expenses	11,470	10,950
	$ 214,964	$ 200,910

According to the Company's Articles of Incorporation, the Company shall allocate remuneration to employees at the rate of 1%~10% of annual profits, and to directors at the rate of no higher than 5% of annual profits during the period; provided, however, that when the Company has accumulated losses, the profits shall be preserved to make up for losses, before distributing to employees and directors.
The amount shall be accrued based on the profit condition as of the current period for the years ended December 31, 2025 and 2024. Since as of December 31, 2025 and 2024, the Company incurs accumulated deficit, the amounts accrued are $0.
The information about the employees' and directors' remuneration resolved by the board of directors is available at the Market Observation Post System website.

(27) Income tax

Income tax expenses (benefits)

(1) Components of income tax expense:

	2025	2024
Current income tax :
Current income tax on profits for the year	$ 133	$ -
Underestimation (overestimation) on income tax in prior years	112	(115)
Total current income tax	$ 245	($ 115)
Deferred income tax:
Origination and reversal of temporary differences	-	-
Total deferred income tax	-	-
Income tax expenses (benefits)	$ 245	($ 115)

(2) Amount of income taxes related to other comprehensive income : None.
(3) Amount of income tax on income directly debited or credited in equity : None.

The relationship between income tax expenses (benefits) and accounting profit

	2025		2024
	$	580	($	3,728)
Income tax calculated by profit (loss) before tax multiplying the enacted tax rates
Items that shall be excluded based on tax laws		3,735		90
Tax exempt losses based on tax laws		1,124		6,933
Tax exempt income based on tax laws	(	5,851)		-
Temporary differences not recognized as deferred tax assets	(	13,082)	(	4,231)
Underestimation (overestimation) on income tax in prior years		112	(	115)
Tax effect from tax losses	(	2,339)		-
Tax losses not recognized as deferred tax assets		15,966		936
	$	245	($	115)

The amounts of deferred income tax assets or liabilities arising from temporary differences and tax losses are as follows :

	2025
	At January 1	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Recognized in equity	At December 31
Deferred tax assets
-Temporary differences:
Allowance for loss on decline in value of inventory	$ 473	$ -	$ -	$ -	$ 473
Tax loss	115,508	-	-	-	115,508
	$115,981	$ -	$ -	$ -	$115,981
Deferred tax liabilities
-Temporary differences:
Remeasurement of defined obligations	($ 880)	$ -	$ -	$ -	($ 880)
	2024
	At January 1	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Recognized in equity	At December 31
Deferred tax assets
-Temporary differences:
Allowance for loss on decline in value of inventory	$ 473	$ -	$ -	$ -	$ 473
Tax loss	115,508	-	-	-	115,508
	$115,981	$ -	$ -	$ -	$115,981
Deferred tax liabilities
-Temporary differences:
Remeasurement of defined obligations	($ 880)	$ -	$ -	$ -	($ 880)

Expiration dates of unused tax loss and amounts of unrecognized deferred income tax assets are as follows:

December 31, 2025

Year incurred	Amount filed/assessed	Unused amount	Unrecognized deferred income tax assets	Year of expiration
2016	$ 99,269	$ 99,269	$ 99,269	2026
2017	116,640	116,640	116,640	2027
2018	62,637	62,637	62,637	2028
2019	95,985	95,985	95,985	2029
2021	498,607	498,607	64,210	2031
2022	19,804	19,804	-	2032
2023	53,460	53,460	-	2033
2025	69,879	69,789	-	2035
	$ 1,016,281	$ 1,016,191	$ 438,741

December 31, 2024

Year incurred	Amount filed/assessed	Unused amount	Unrecognized deferred income tax assets	Year of expiration
2015	$ 278,639	$ 278,639	$ 278,639	2025
2016	99,269	99,269	99,269	2026
2017	116,640	116,640	116,640	2027
2018	62,637	62,637	62,637	2028
2019	95,985	95,985	90,021	2029
2021	498,607	498,607	-	2031
2022	19,804	19,804	-	2032
2023	53,165	53,165	-	2033
	$ 1,224,746	$ 1,224,746	$ 647,206

As described in Note 12(4) of the financial statements, the Group continues improving the operating condition, thus, tax losses may be utilized in future periods have been recognized as deferred income tax assets.

Deductible temporary differences not recognized deferred income tax assets :

	December 31, 2025	December 31, 2024
	$ 80,020	$ 128,838

Deductible temporary differences

Profit-seeking Enterprise Income Taxes of the Company have been verified by the tax collection authority until 2023.

(28) Losses per share

	2025
	Amount after tax	Weighted average number of ordinary shares outstanding (in thousands of shares)	Losses per share (in dollars)
Basic losses per share
Net loss attributable to shareholders of the	($ 12,251)	16,016	($ 0.76)

parent

	2024
	Amount after tax	Weighted average number of ordinary shares outstanding (in thousands of shares)	Losses per share (in dollars)
Basic losses per share
Net loss attributable to shareholders of the parent	($ 14,694)
less: preferred shares dividends	(720)
Losses attributable to ordinary shareholders of the parent	($ 15,414)	14,133	($ 1.09)
Diluted losses per share
Losses attributable to shareholders of the ordinary shareholders of the parent	(15,414)	14,133
Effect of dilutive potential ordinary shares 3% of cumulative convertible preferred shares	-	-
Losses attributable to shareholders of the ordinary shareholders of the parent plus the effect of potential ordinary shares	($ 15,414)	14,133	($ 1.09)

As the Company incurred loss for the years ended December 31, 2025 and 2024, there is no effect of dilutive potential ordinary shares. Therefore, diluted losses per share equal to basic losses per share.

(29) Supplemental information on cash flows

Investing activities with partial cash payments:

	2025	2024
Purchase of property, plant and equipment	$ 2,696	$ 7,104
Add: Opening balance of payables on equipment	1,566	3,041
Less: Ending balance of payables on equipment	-	( 1,566)
Less: Opening balance of prepayments for( equipment	22)	( 808)
Add: Ending balance of prepayments for equipment	-	22
Cash paid in current period	$ 4,240	$ 7,793

Financing activities not affecting cash flows:

	2025	2024
Share capital transferred from convertible preferred shares	$ 160,000	$ -

(30) Changes in liabilities from financing activities

	Short-term borrowings	Long-term borrowings			Total liabilities from financing activities
		current portion)	received	Lease liabilities

January 1, 2025	$ 270,000	$ 200,000	$ 2,173	$ 176,905	$ 649,078
Changes in cash flows	(60,500)	-	(7)	(12,172)	(72,679)

~47~

from financing activities

Interest expenses	-	-	-	4,170	4,170
Interest expenditures	-	-	-	( 4,170)	( 4,170)
Increase in lease liabilities	-	-	-	4,265	4,265
Modification in lease liabilities	-	-	-	( 6,779)	( 6,779)
December 31, 2025	$ 209,500	$ 200,000	$ 2,166	$ 162,219	$ 573,885
	Short-term borrowings	Long-term borrowings (including the Guaranteed deposits)		Lease liabilities	Total liabilities from financing activities
---	---	---	---	---	---
		current portion	received
January 1, 2024	$ 324,000	$ 200,000	$ 1,841	$ 185,838	$ 711,679
Changes in cash flows from financing activities	( 54,000)	-	332	( 12,613)	( 66,281)
Interest expenses	-	-	-	4,541	4,541
Interest expenditures	-	-	-	( 4,541)	( 4,541)
Increase in lease liabilities	-	-	-	3,680	3,680
December 31, 2024	$ 270,000	$ 200,000	$ 2,173	$ 176,905	$ 649,078

7. RELATED PARTY TRANSACTIONS

(1) Parent Company and the final Controller

The Company is controlled by TECO Electric & Machinery Co., Ltd. (registered in Taiwan), which owns 63.52% of the shares of the Company, and is the ultimate parent company and ultimate controller of the Company. The remaining 36.48% is held by the public.

(2) Names and relationships of related parties

Names of related parties	Related Party Category
TECO Electric & Machinery Co., Ltd.	Ultimate parent company
Guandehong Technology Co., Ltd.	Substantive related party
Taiwan Ericsson Co., Ltd.	Substantive related party
WANTGO.COM CO., LTD.	Substantive related party
Wuxi Teco Electric & Machinery Co., Ltd	Fellow subsidiary
JIE ZHENG PROPERTY SERVICE & MANAGEMENT CO., LTD.	Fellow subsidiary
Tecnos International Consulting Co., Ltd.	Fellow subsidiary
INFORMATION TECHNOLOGY TOTAL SERVICES CO., LTD.	Fellow subsidiary
TONG DAI CO., LTD.	Fellow subsidiary
Dong An Asset Development Management Co., Ltd.	Fellow subsidiary
TECO Technology (Vietnam) Co., Ltd.	Fellow subsidiary
AN-SHIN FOOD SERVICES CO.,LTD.	Fellow subsidiary
Teco Tour Travel Service co., Ltd.	Fellow subsidiary
E-Joy International Co., Ltd.	Fellow subsidiary
A-OK Technology Service Co., Ltd.	Fellow subsidiary
Taiwan Pelican Express Co., Ltd.	Fellow subsidiary
Taian Shen Electric Co., Ltd.	Fellow subsidiary
Taian (Subic) Electric Co., Ltd.	Fellow subsidiary
Shanghai TECO Electric & Machinery Co., Ltd.	Fellow subsidiary

TECO Australia Pty Limited (TAC) Fellow subsidiary
TECO - Westinghouse Motor Company Fellow subsidiary
TECO Westinghouse Motor Industrial Canada Fellow subsidiary
TECO New Zealand Ltd. Fellow subsidiary
YUBANTEC INDIA PRIVATE LIMITED Other related party

(3) Significant transactions with related parties

Operating revenue

	2025	2024
Sales of goods :
Fellow subsidiary	$ 23,191	$ 20,099
Parent company	8,365	8,454
	$ 31,556	$ 28,553

Sales are based on normal commercial terms and conditions.

Purchases of goods

	2025	2024
Purchases of goods
Parent Company	$ 5,234	$ 2,739

Purchases of goods are based on normal commercial terms and conditions.

Receivables from related parties

	December 31, 2025	December 31, 2024
Notes receivables :
Fellow subsidiary	$ 5,009	$ 581
Subtotal	5,009	581
Accounts receivables :
Fellow subsidiary	6,474	5,022
Parent company	1,638	1,514
Subtotal	8,112	6,536
Other receivables :
Substantive related party	12	11
Subtotal	12	11
Total	$ 13,133	$ 7,128

Receivables from related parties mainly arise from sales transactions, with a maturity of 30 to 120 days after the date of sale.

~48~

~49~

4. Payables to related parties

	December 31, 2025	December 31, 2024
Accounts payables :
Parent company	$ 3,088	$ 478
Other payables :
Fellow subsidiary	$ 162	$ 72
Parent Company	$ 248	$ 280
	$ 410	$ 352

The accounts payable to related parties are mainly from purchase transactions, and payment shall be made within 25 to 90 days after receipt of goods. There is no interest attached to the payables.

5. Service costs/other expenses

	2025	2024
Fellow subsidiary	$ 529	$ 238
Parent Company	$ 1,765	$ 1,554
	$ 2,294	$ 1,792

6. Lease transactions – lessee

(1) The Group rents offices and parking areas from fellow subsidiaries. The periods of the lease contracts are 1 year. The rents are paid at the end of each month or quarter.

The Group rents cars from the parent company. The lease period is 1 year, and the rents are paid at the end of each month.

(2) Acquisition of right-of-use assets

	2025	2024
Fellow subsidiary	$ 3,680	$ 3,680

(3) Rent expenses

	2025	2024
Fellow subsidiary	$ 91	$ 91
Parent company	$ -	$ 347
	$ 91	$ 438

The rent expenses recognized for the years ended December 31, 2025 and 2024 are in the scope of short-term leases in IFRS 16.

(4) Lease liabilities

A. Ending balance

	2025	2024
Fellow subsidiary	$ -	$ -

B. Interest expenses

	2025	2024
Fellow subsidiary	$ 50	$ 50

7. Leasing transaction – Lessor

In 2025 and 2024, the Group received rental income of $69 and $73, respectively, from leasing part of the plants and offices to related parties, which is collected on a monthly basis.

Substantive related party	December 31, 2025	December 31, 2024
	$ 69	$ 73

(4) Key management compensation

	December 31, 2025	December 31, 2024
Short-term employee benefits	$ 17,773	$ 16,596
Post-employment benefits	$ 354	$ 353
Total	$ 18,127	$ 16,949

~50~

8. RESTRICTED ASSETS

The details of the Group’s restricted assets are as follows:

| Assets Item | Carrying amount
December 31, 2025 | December 31, 2024 | Purpose |
| --- | --- | --- | --- |
| Bank deposits (recognized as financial assets at amortized cost) | $ 3,730 | $ 23,838 | Lease security deposit and borrowing restrictions |
| Guaranteed deposits paid | - | 681 | Guarantee for the customs duties |
| Financial assets at fair value through other comprehensive income—non-current | 227,136 | 219,620 | Guarantee for bank loans |
| Plant in Hsinchu | 67,726 | 70,948 | Guarantee for bank loans |
| | $ 298,592 | $ 315,087 | |

9. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

A. As of December 31, 2025, the Group commissioned banks to issue the guaranteed bills and guarantee letters for the fulfillment of sale contracts and bids, with a total amount of $19,921.

B. As of December 31, 2025, the amount of letter of credit issued but not used was $1,216.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS

(1) The Company has resolved by the board of directors on March 9, 2026 to make up for accumulated deficit by capital reduction amounting to $137,169. The capital reduction ratio is 45.312174%. The proposal is pending to be resolved by the regular shareholders meeting.

(2) The Company has resolved by the board of directors on March 9, 2026 to handle capital increase by private placement of ordinary shares. The upper limit of the issuance is 7,500 thousand shares, and the issuance may be separated into three times within one year after the date of the shareholders meeting’s resolution.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to operate with the goal to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, The group may issue new shares or sell assets to reduce debts. The Group monitors capital on the basis of the debt capital ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated balance sheet and the total net debts.

The strategy of capital management is the same in 2025 and 2024. The Group is committed to improving the capital structure and reducing the debt-to-capital ratio through appropriate planning and management. The debt to capital ratios as of December 31, 2025 and 2024 are shown as below:

	December 31, 2025	December 31, 2024
Total borrowings	$ 409,500	$ 470,000
Less: cash and cash equivalents	( 145,070)	( 225,484)
Net debt	264,430	244,516
Total equity	444,159	441,079
Total capital	$ 708,589	$ 685,595
Debt to capital ratio	37%	36%

(2) Financial instruments

1. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 21,978	$ 11,392
Financial assets at fair value through other comprehensive income	227,223	229,551
Financial assets at amortized cost
Cash and cash equivalents	145,070	225,484
Financial assets at amortized cost	177,809	175,401
Notes receivables	23,902	13,442
Accounts receivables	115,519	105,235
Other receivables	2,478	3,930
Guaranteed deposits paid	2,274	2,682
	$ 716,253	$ 767,117
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortized cost
Short-term borrowings	$ 209,500	$ 270,000
Notes payables	2,647	3,147
Accounts payables	93,135	77,433
Other payables	64,507	60,572
Long-term borrowings (including current portion)	200,000	200,000
Guaranteed deposits received	2,166	2,173
	$ 571,955	$ 613,325
Lease liabilities	$ 162,219	$ 176,905

2. Risk management policies

(1) The Group's operation is influenced by several financial risks, including market risk (including foreign exchange risk, interest rate risk and price risk), credit risk, and liquidity risk. The Group's overall risk management policy focuses on the unpredictable item of financial markets and seeks to reduce the risk that potentially pose adverse effects on the Group's financial position and financial performance.

(2) Risk management is executed by the Group's finance department by following authorized policies. The finance department cooperates with the Group's operating units, and takes

charge in identifying, evaluating and hedging financial risks. The Management has a written policy covering overall risk management. It also has written policies covering specific issues, such as exchange rate risk, interest rate risk, credit risk, derivative and non-derivative financial instruments used, and the investment of excess working capital.

Significant financial risks and degrees of financial risks

(1) Market risk

Foreign exchange risk

A. The Group operates on a cross-border basis, so it is exposed to foreign exchange risks arising from the differences between the functional currencies of the Company and its subsidiaries, primarily USD and CNY. The related foreign exchange risks arise from future commercial transactions and assets and liabilities already recognized.

B. The Group manages its foreign exchange risk through the Group Finance Department. To manage the foreign exchange risk arising from future business transactions and recognized assets and liabilities, all companies within the Group are regularly reviewed by the Group Finance Department for exchange rate fluctuations. When future business transactions, recognized assets or liabilities are priced in currencies other than the functional currency of the entity, foreign exchange risk arises.

C. The Group's businesses involve a number of non-functional currencies (the Group's functional currency is NTD), so they are affected by exchange rate fluctuations. The foreign assets and liabilities with significant exchange rate fluctuations are as follows:

	December 31, 2025
	Foreign currency amount(thousand)	Exchange rate	Carrying amount (NTD)
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : TWD	$ 710	31.430	$ 22,315
CNY : TWD	2,125	4.496	9,554
Financial liabilities
Monetary items
USD : TWD	$ 1,108	31.430	34,824
CNY : TWD	993	4.496	4,465
	December 31, 2024
	Foreign currency amount(thousand)	Exchange rate	Carrying amount (NTD)
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : TWD	$ 789	32.785	$ 25,867
CNY : TWD	3,531	4.478	15,812
Financial liabilities
Monetary items
USD : TWD	$ 1,121	32.785	36,752
CNY : TWD	1,358	4.478	6,081

D. The total amount of all exchange gains (losses) (including realized and unrealized) recognized by the Group due to exchange rate fluctuations are $1,145 and $3,701 respectively for the years ended December 31, 2025 and 2024.

E. The foreign currency market risks arising from significant fluctuations in exchange rate are analyzed as

follows :

	2025
	Sensitivity Analysis		Effect on other comprehensive income
	Extent of variation	Effect on profit or loss
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : TWD	1%	$ 223	$	-
CNY : TWD	1%	96		-
Financial liabilities
Monetary items
USD : TWD	1%	($ 348)	$	-
CNY : TWD	1%	( 45)		-
	2024
---	---	---	---	---
	Sensitivity Analysis		Effect on other comprehensive income
	Extent of variation	Effect on profit or loss
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : TWD	1%	$ 259	$	-
CNY : TWD	1%	158		-
Financial liabilities
Monetary items
USD : TWD	1%	($ 368)	$	-
CNY : TWD	1%	( 61)		-

Price risk

A. The Group's financial instruments, which are exposed to price risk, are financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in financial instruments, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

B. The Group mainly invests in financial instruments and open-end funds issued by domestic companies. The prices of the equity instruments are susceptible to market price risk arising from uncertainties about the future value of the investments. Assuming a hypothetical increase or decrease of 1% in the price of the aforementioned financial instruments at fair value through profit or loss while the other conditions remain unchanged could increase and decrease the Group's net income after tax for the years ended December 31, 2025 and 2024 by $220 and $114,

~53~

respectively. A change of increase or decrease 1% in the price of the aforementioned financial instruments at fair value through other comprehensive income could increase or decrease the Group's other comprehensive income for the years ended December 31, 2025 and 2024 by $2,272 and $2,296, respectively.

Cash flow and fair value interest rate risk

A. The Group's main interest rate risk arises from long-term and short-term borrowings with variable rates which expose the Group to cash flow interest rate risk. During the years ended December 31, 2025 and 2024, the Group's borrowings at variable rates were denominated in USD and NTD.

B. Borrowings of the Group are measured at amortized cost and the interest rate will be repriced according to the contractual agreement every year, thus the Group is exposed to the risk of future market rate fluctuations.

C. If interest rates on borrowings had increased or decreased 1% with all other variables held constant, net income after-tax for the years ended December 31, 2025 and 2024 would have decreased or increased $3,276 and $3,760, respectively, mainly as a result of interest expenses varying by floating rate borrowings.

(2) Credit risk

A. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments. Group is exposed to credit risks from accounts receivables that the counterparty is unable to pay off by the payment term, and the contractual cash flows at amortized cost.

B. The Group manages credit risk in terms of the Group. The Group only accepts banks or institutions assessed to be with good credit quality as correspondent bank or financial institutions. Based on internal credit policies, the Group shall manage and implement credit risk analysis before determining payment terms and delivery terms with new customers. Internal risk control evaluates customers' credit quality by considering the financial condition, past experiences, and other factors. The individual risk limits are established by the management level according to the internal rating, and the credit limit is monitored regularly.

C. Credit risk impairment assessment of financial assets at amortized cost :

(1) The Group adopts IFRS 9 assuming that if the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition; if past due over 90 days, a default has occurred.

(2) The Group has taken into consideration of the forward-looking considerations to adjust historical and current information and consider the credit ratings of the issuing banks to estimate the expected credit losses.

(3) The financial assets measured at amortized cost held by the Group include time deposits in banks and restricted deposits in banks, the credit ratings of which are all good, without any overdue in the past. Considering the overall economic environment without significant changes, the risk of credit loss is extremely low and the impact on the financial statements is also small.

D. Indicators that the Group used to determine whether an investment in debt instruments is credit-impaired are as follows:

(1) significant financial difficulty of the issuer, or it is becoming probable that the issuer will enter bankruptcy or other financial reorganization;

(2) the disappearance of an active market for that financial asset because of the financial difficulties of the issuer;

(3) the issuer delays or refuses the payments of interests or principal;

(4) Unfavorable changes in national or regional economic conditions that result in the default of the issuer.

E. The Group writes offs the amount of the financial assets at are not reasonably to be recovered after the recourse procedures. However, the Group will keep the legal procedures of recourse to preserve the right of debts.

F. Credit Risk Impairment Assessment of Accounts Receivable and Notes Receivable :

(1) The Group estimates the expected credit losses based on the simplified approach with a loss rate method for the accounts receivables and notes receivables grouped by customer's ratings.

(2) The Group has incorporated an adjustment to the loss rate based on past and current information over a certain period to estimate the provision for losses on

~54~

accounts receivables and notes receivables as of December 31, 2025 and 2024, as follows:

	Group A	Group B	Group C	Group D	Group E	Total
December 31, 2025
Expected loss rate	0.03%~1%	0.03%~2%	0.03%~5%	0.03%~10%	0.03%~100%
Total carrying amount	$ 79,433	$ 14,434	$ 23,999	$ 16,758	$ 7,136	$ 141,760
Loss allowance	$ 4	$ 1	$ 14	$ 292	$ 2,028	$ 2,339
	Group A	Group B	Group C	Group D	Group E	Total
December 31, 2024
Expected loss rate	0.03%~1%	0.03%~2%	0.03%~5%	0.03%~10%	0.03%~100%
Total carrying amount	$ 74,866	$ 10,149	$ 18,747	$ 12,803	$ 5,086	$ 121,651
Loss allowance	$ 772	$ -	$ 1	$ 415	$ 1,786	$ 2,974

(3) The Group's allowances of trade receivables are shown below:

	2025		2024
	Accounts receivables	Other receivables	Accounts receivables
At January 1	$ 2,974	$ -	$ 702
Provision for impairment loss	32	506	2,264
Write-off due to bad debt	( 673)	-	-
Effects of exchange rates	6	19	8
At December 31	$ 2,339	$ 525	$ 2,974

(3) Liquidity risk

A. Cash flow forecasting is performed by each operating entity of the Group and aggregated by Group treasury. The Financial Department of the Group monitors the forecast of the Group's liquidity needs to ensure that there are sufficient funds to meet operating needs and maintain sufficient uncommitted loan commitment at all times.

B. The Group of unutilized borrowing amounts are shown below:

	December 31, 2025	December 31, 2024
Floating Rate
expiry within 1 year	$ 438,272	$ 368,977
expiry more than 1 year	10,000	3,029
	$ 448,272	$ 372,006

C. The table below analyses the Group's non-derivative financial liabilities 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.

Non-derivative financial liabilities:

December 31, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	More than 5 years
Short-term loans	$211,319	$ -	$ -	$ -
Notes payable	2,647	-	-	-
Accounts payable	93,135	-	-	-
Other payables	64,507	-	-	-
Lease liability	10,980	10,930	32,040	149,519
Long-term loans (including expiry with in one year)	5,000	5,000	202,083	-

Derivative financial liabilities : None.

Non-derivative financial liabilities:

December 31, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	More than 5 years
Short-term loans	$271,860	$ -	$ -	$ -
Notes payable	3,147	-	-	-
Accounts payable	77,433	-	-	-
Other payables	60,572	-	-	-
Lease liability	12,993	11,110	33,330	166,652
Long-term loans (including expiry with in one year)	$271,860	$ -	$ -	$ -

Derivative financial liabilities : None.

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

(3) Fair value information

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 sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in derivative instruments is included in Level 2.

Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s equity investment without active market is included in Level 3.

Please refer to Note 6(11) for the fair value information on investment properties measured at cost.
Financial instruments not measured at fair value:

The carrying amounts of the Group's financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortized cost, notes receivables, accounts receivables, other receivables, guaranteed deposits paid (recognized as other non-current assets and financial assets at amortized cost), short-term borrowings, notes payables, accounts payables, other payables, long-term borrowings (including current portion), and guaranteed deposits received approximate to their fair values:

The related information on financial instruments classified based on the nature of assets and liabilities, characteristics and fair value hierarchy is as follows:

(1) The related information on the nature of the assets and liabilities is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Fair value on a recurring basis
Financial assets at fair value through profit or loss-Beneficiary certificates	$ 21,978	$ -	$ -	$ 21,978
Financial assets at fair value through other comprehensive income - Equity securities	227,136	-	87	227,223
Total	$ 249,114	$ -	$ 87	$ 249,201
Debt : None.
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Fair value on a recurring basis
Financial assets at fair value through profit or loss-Beneficiary certificates	$ 11,392	$ -	$ -	$ 11,392
Financial assets at fair value through other comprehensive income - Equity securities	229,464	-	87	229,551
Total	$ 240,856	$ -	$ 87	$ 240,943
Debt : None.

(2) The methods and assumptions the Group used to measure fair value are as follows:

A. The Group used market quoted prices as their fair values (that is, Level 1), which is the closing price of listed (emerging) shares.
B. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques.
C. When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

There is no transfer between level 1 and level 2 in 2025 and 2024.
Changes of level 3 of financial instruments in 2025 and 2024:

Equity securities

January 1, 2025

Gains recognized in other comprehensive income

December 31, 2025

$ 87

Equity securities

January 1, 2024	$ 1,101
Gains recognized in other comprehensive income	2,936
Transferred to level 1	( 3,950)
December 31, 2024	$ 87

(4) The future financial fitness plan

As of December 31, 2025, the debt-to-capital ratio was 63.77%, which is lower than the ratio during the same period last year. The active plans for financial fitness were shown as below:

Operation perspective: In order to strengthen operational performance, in addition to continuously developing forward-looking products, combining the new world trend, and observing the movement of the global economy, we will deepen management and strengthen financial structure in the future to enhance shareholder return on equity. The related important point is shown below:

(1) Combine the digital management system integrated in hardware and software with energy service company (ESCO) model, and coordinate with the equipment replacement subsidy for commercial service industry from the government, to save energy and decrease costs.

(2) Combine Smart Operation & Maintenance (Smart O&M) with energy management system, to empower the twin transition of decarbonization and intelligentization, and decrease the carbon emission and electricity consumption of the plants, production lines, and buildings.

(3) Keep deeply cultivating in relevant products including intelligent building intercom system, intelligent security surveillance system, and intelligent office business communication system, etc., and actively develop solutions for industries targeted application scenarios in industries.

(4) To continue adjusting the channel structure, introduce the agency of new products, improve product quality, strengthen after-sales maintenance services, and establish diversified internet service system to enhance profitability.

(5) At the core of ESG solutions, strengthen the cooperation with domestic and foreign leading electromechanical manufacturers, provide one-stop solutions, to accelerate the twin transition of enterprises.

(6) Build up AI and digital student ecosystem, to assist customers with the introduction of intelligent energy management system.

Financial perspective: Keep to maintain support from bank. The Company continue improving the management capacity and profitability to strengthen financial structure. With the successful operation of open-source savings and the support of major shareholders- TECO Electric Co., Ltd. as well as the continuous improvement of operational performance, the Company has successfully obtained continuous support from major banks for short-term and mid-to-term funds. For large and large orders, it also obtains project quotas from banks to support them. The Company's operations are not short of funds.
Organization perspective: Simplify the original three business unit into information and communication business unit and energy management business unit, strictly evaluation the performance of each department, consolidate core staffs, to enhance the operating motivation; decrease unnecessary expenditures, to increase cash inflows in the future, and improve operating effectiveness.
Other disclosures

(1) Significant transactions information

A. Loan 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): Refer to Table 1.
D. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid in capital or more: None.
E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.
F. Significant inter-company transactions during the reporting periods: Refer to Table 2.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to Table 3.

(3) Information on investments in Mainland China

A. Basic information: Refer to Table 4.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in China: Please refer to Table 5.

SEGMENT INFORMATION

(1) General information

The management hierarchy of the Group has identified the reportable segments based on the information used by the decision-makers in making decisions.

The Group's Board of Directors manages its business from a regional and product perspective; territorially, the Group currently focuses on product sales in Taiwan and the United States. The operating units disclosed by the Group mainly derive their revenue from business communication systems, smart electromechanics, and fiber optic cables.

(2) Segment information

The related information provided to the decision maker is as follows

2025 :

	Intelligent Business communication electromechanical system
	system	and others	Optical fiber cable	Total
External income	$ 383,409	$ 95,110	$ 253,989	$ 732,508
Internal Revenue	14,570	38,276	-	52,846
Segment income	$ 397,979	$ 133,386	$ 253,989	$ 785,354
Department (loss) profit	$ 17,752	($ 29,869)	$ 5,927	($ 6,190)

2024 :

	Intelligent Business communication electromechanical system
	system	and others	Optical fiber cable	Total
External income	$ 403,803	$ 90,801	$ 136,810	$ 631,414
Internal Revenue	58,573	-	-	58,573
Segment income	$ 462,376	$ 90,801	$ 136,810	$ 689,987
Department (loss) profit	$ 15,961	($ 26,676)	($ 11,719)	($ 22,434)

(3) Reconciliation for segment income

There is no profit adjustment for the operating department and the Company.

(4) Information on products and services

Please refer to Notes 6(20) for the Group’s product revenue information in 2025 and 2024.

(5) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$ 688,097	$ 238,937	$ 575,695	$ 259,369
USA	6,972	-	12,906	-
Others	37,439	296	42,813	361
Total	$ 732,508	$ 239,233	$ 631,414	$ 259,730

(6) Major customer information

Major customer information for the years ended December 31, 2025 and 2024 is as follows:

	2025		2024
	Revenue	Dept.	Revenue	Dept
Company A	$ 165,485	fiber optic cable	$ 67,022	fiber optic cable

Tecom Co., LTD. and Subsidiaries

Holding of significant marketable securities (not including subsidiaries, associates and joint ventures)

For the year ended December 31, 2025

Table 1

Securities held by Tecom Co., LTD.	Marketable securities Taiwan High Speed Rail Corporation(Ordinary shares)	Relationship with the securities issuer The parent company is its legal person director	General ledger account Financial assets measured at fair value through other comprehensive income, non-current	Number of shares 8,112,000	As of December 31, 2025
					Carrying amount $ 227,136	Ownership 0.14%	Fair value $ 227,136	Footnote Note 1
Tecom Co., LTD.	NEOVIDEO TECHNOLOGY CORPORATION(Ordinary shares)	None	Financial assets measured at fair value through other comprehensive income, non-current	1,066,667	87	19.39%	87
Baycom Opto-Electronics Technology Co., Ltd.	Fuhua Investment Trust Guardian Fund	None	Financial assets measured at fair value through profit or loss, current	545,765	11,867	-	11,867
Baycom Opto-Electronics Technology Co., Ltd.	Fuhua Investment Trust Ruihua Fund	None	Financial assets measured at fair value through profit or loss, current	796,109	10,111	-	10,111
Baycom Opto-Electronics Technology Co., Ltd.	Tecom Co., LTD.(unsecured corporate bonds)	Parent Company	Financial assets measured at amortized cost -,non-current	-	133,000	-	133,000	Note 2

Note 1: The Ordinary shares of the Company held by the Company are required for bank secured loans, and it is used as a secured. Please refer to Note 8 for details.
Note 2 The company issued the first domestic unsecured payable company bonds in Taiwan in 2021 with a total amount of NT$133,000, each with a face value of NT$1,000, fully issued according to the face value of the ticket, with a coupon rate of 2%, and a circulation period of 5 years from November 17, 2021 to November 17, 2026.
The principal of the ordinary company bonds without warranty shall be paid in cash once according to the face value of the bonds, and the interest shall be paid annually. Since the private placement targets are Baycom Opto-Electronics Technology Co., Ltd. included in the consolidation individual, the relevant transactions have been written off when preparing the combined financial statements.

Tecom Co., LTD. and Subsidiaries

Significant inter-company transactions during the reporting period

For the year ended December 31, 2025

Table 2

Expressed in thousands of

NTD

(Except as otherwise

indicated)

Transaction

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	$ Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Tecom Co., LTD.	Wu Han Tecom Co., Ltd.	1	Sales revenue	$ 12,611	Based on terms of agreement	2%
0	Tecom Co., LTD.	Wu Han Tecom Co., Ltd.	1	Purchases	14,761	Based on terms of agreement	2%
0	Tecom Co., LTD.	Wu Han Tecom Co., Ltd.	1	Service expenses	25,777	Based on terms of agreement	4%
1	Baycom Opto-Electronics Technology Co., Ltd.	Tecom Co., LTD.	2	Financial assets measured at amortized cost, current	133,000	Based on terms of agreement	11%

Note 1: The information of transactions between the Company and the consolidated subsidiaries should be noted in "Number" column.

(1) Number 0 represents the Company.
(2) The consolidated subsidiaries are numbered in order from number 1.

Note 2: The transaction relationships with the counterparties are as follows:

If one of the subsidiaries has already disclosed the transactions between the subsidiaries, the other subsidiary does not need to disclose it again.

(1) The Company to the consolidated subsidiary.
(2) The consolidated subsidiary to the Company.
(3) The consolidated subsidiary to another consolidated subsidiary.

Note 3: In calculating the ratio, the transaction amount is divided by consolidated total assets for balance sheet accounts and is divided by consolidated total revenues for income statement accounts.

Note 4: Based on general sale or purchase conditions.

Note 5: Only transactions with a value of more than one million are disclosed, and transactions between related parties are not disclosed separately.

~Table 2 Page 1~

Tecom Co., LTD. and Subsidiaries

Information on investees

For the year ended December 31, 2025

Table 3

Investor Tecom Co., LTD.	Investee Baycom Opto-Electronics Technology Co., Ltd.	Location Taiwan	Main business activities Research, manufacture and sales of optical fiber communication systems and optical fibers, optical fiber cables and their components	Initial investment amount			Shares held as at December 31, 2025			Net profit (loss) of the investee	Investment income (loss) recognized by the Company
				December 31,2025	December 31,2024	Number of shares	Ownership	Carrying amount
Tecom Co., LTD.	A-Tel Inc.	Guatemala	Operating telecommunications system service business	63,177	63,177	596,925	28.19	-	(42,961)	-	Note 1
Tecom Co., LTD.	Taian Technology Sdn. Bhd.	Malaysia	Production and sales of gate opening equipment industry	8,360	8,360	1,100,000	10	3	-	-
Tecom Co., LTD.	E-JOY ELECTRONICS INTERNATIONAL CO., LTD.	Taiwan	Wholesale of telecommunication equipment, wholesale of precision instruments and wholesale of electrical appliances, etc.	999	999	641,129	4.90	7,410	12,934	515	Note 2
Tecom Co., LTD.	TECNOS INTERNATIONAL CONSULTANT CO., LTD	Taiwan	Operation of talent dispatch service, project contracting service and education and training business	2,499	2,499	752,592	5.26	10,162	19,185	1,033	Note 2
Tecom Co., LTD.	TECO TOUR TRAVEL SERVICE CO., LTD.	Taiwan	Operating a travel service business	2,912	2,912	480,000	16.00	1,580	(470)	24	Note 2

Note 1: This company has invested in A-Tel Inc. receivables of $55,254 and has 100% impairment loss in the previous year.
Note 2: Those have been transferred to non-current assets held for sale in October 2025.

Tecom Co., LTD. and Subsidiaries

Information on investments in Mainland China

For the year ended December 31, 2025

Table 4

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount of investments remitted or recovered during the period			Net income of investee for the year ended December 31, 2025	Ownership inheld by the Company (inirect) or indirect)	Investment income (loss) recognized by the Company for the year ended December 31, 2025	Book value of investments in Mainland China as of December 31, 2025	Accumulate amount of investment income remitted back to Taiwan as of December 31, 2025
					Remitted to Mainland China	Remitted back to Taiwan	Net income of investee for the year ended December 31, 2025
Wu Han Tecom Co., Ltd.(Note 1)	Engage in technical development, production, sales and technical service of telecommunications network information related products.	$ 6,950	Through investment in a third region and reinvesting in a mainland company	$ 6,950	$ -	$ -	$ 6,950	$ 13,310	100	$ 16,879	$ 6,986	$ - Note 7
Company name		Accumulated amount of remittance from Taiwan to Mainland China		Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)						Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Wu Han Tecom Co., Ltd.		$ 6,950		$ 681,144						$ 266,495

Note 1 : The company has remitted US$995,000 to Tecom Global Tech Investment (B.V.I.) Limited, which US$200,000 has been remitted to invest in Wu Han Tecom Co., Ltd.

Tecom Global Tech Investment (B.V.I.) Limited has remitted back the investment fund in March, 2023, and the legal cancellation procedures have been completed in October, 2023,

Note 2 : The company has remitted US$15,050,000 to Tecom Global Tech Investment Pte Limited, which US$15,000,000 has been remitted to invest in Wu Xi Tecom Co., Ltd. It was dissolved and liquidated in January 2021.

Note 3 : The company has remitted US$1,500,000 to Tecom Tech Investment (B.V.I.) Limited, and all the investment has been remitted out of Tecom Communication Technology (Xiamen) Co., Ltd. and Beijing Tecom Innovation Technology Co., Ltd.

Dissolution and liquidation were completed in October 2017 and May 2019 respectively.

Note 4 : As of December 31, 2025, the upper limit of the company's investment in the mainland was $266,495 , which was 60% of the consolidated net worth of$ 444,159.

Note 5 : When the above Mainland investment project was completed, the investment limit of the company to Mainland China was 60% of the net value of the company's Third Quarter 2010, which is $2,933,752, amounting to $1,760,251.

Note 6 : The investment profit and loss recognized in this period is based on the financial information for the same period not audited by the certified accountant.

Note 7 : There are upstream transactions occurred $18.

Tecom Co., LTD. and Subsidiaries

Information on investments in Mainland China – Directly or indirectly through third-region invest in mainland China Major transactions

For the year ended December 31, 2025

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland	Sales revenue		Accounts receivables		Other expenses		Account payables
China	Amount	%	Amount	%	Amount	%	Amount	%
Wuhan Dongxun	$ 12,611	1.72%	$ 7,121	0.58%	$ 25,777	3.52%	$ 432	0.06%
Technology Co., Ltd
	Other payables		Purchase		Other income
	Amount	%	Amount	%	Amount	%
Wuhan Dongxun	$ 3,617	0.46%	$ 14,761	2.02%	$ 7,322	1.00%
Technology Co., Ltd

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Tecom Co., Ltd. — Audit Report / Information 2026

52005_rns_2026-05-11_01ef4db7-85fc-4eeb-8612-0a6171f0fb2a.pdf

Tecom Co., LTD.

Statement of Consolidated Financial Statements of Affiliated Enterprises

Opinion

Basis for Opinion

Key Audit Matters

Inventory Valuation

Description

Audit procedures in response

Other Matter — Parent Company Only Financial Statements

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Tecom Co., LTD. and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

December 31, 2025 and 2024

Tecom Co., LTD. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 and 2024

Tecom Co., LTD. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 and 2024

Statements of comprehensive income

Statements of cash flows

(4). Foreign currency translation

Foreign currency transactions and balances

(17) Ordinary shares

(18) Capital reserve

(19) Retained earnings (accumulated deficits)

(29) Supplemental information on cash flows

(30) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Parent Company and the final Controller

(2) Names and relationships of related parties

4. Payables to related parties

5. Service costs/other expenses

6. Lease transactions – lessee

7. Leasing transaction – Lessor

8. RESTRICTED ASSETS

9. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS

12. OTHERS

(2) Financial instruments

1. Financial instruments by category

2. Risk management policies

Price risk

(3) Fair value information

Tecom Co., LTD. and Subsidiaries

Holding of significant marketable securities (not including subsidiaries, associates and joint ventures)

Tecom Co., LTD. and Subsidiaries

More from Tecom Co., Ltd.

Tecom Co., Ltd. Audit Report / Information 2026