THINKING - Annual Report 2024 | FinancialReports.eu

Thinking Electronic Industrial Company Limited and Subsidiaries

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

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The entities that are required to be included in the consolidated financial statements of affiliates as of and for the year ended December 31, 2024, under the “Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are all the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standard No. 10 “Consolidated Financial Statements”. In addition, the information required to be disclosed in the consolidated financial statements has all been disclosed in the consolidated financial statements of the parent and subsidiary companies. Consequently, Thinking Electronic Industrial Co., Ltd. and its subsidiaries did not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

Thinking Electronic Industrial Co., Ltd.

Sui, Tai-Zhong Chairman February 20, 2025

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Thinking Electronic Industrial Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Thinking Electronic Industrial Co., Ltd. (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

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

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2024. 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 of the Group’s consolidated financial statements for the year ended December 31, 2024 is described as follows:

Authenticity of sales revenue

The Group’s operating revenue for the year ended December 31, 2024 was $7,519,697 thousand. Based on the Standards on Auditing of the Republic of China, revenue recognition is presumed to have a significant risk. Therefore, we considered the authenticity of revenue from specific customers as a key audit matter. For the accounting policy on revenue recognition, refer to Note 4 (l) to the financial statements.

In addition to obtaining an understanding of the internal controls relevant to the recognition of operating revenue, we performed the following audit procedures:

We obtained an understanding of and tested the operating effectiveness of the internal controls relevant to the revenue recognition of the Group.
We obtained details on the sales revenues of specific customers, randomly selected an adequate number of samples and examined shipping documents and receipt vouchers. We also verified the amounts collected and confirmed that payers and sales customers were in agreement with one another regarding the authenticity of revenue.

Other Matter

We have also audited the parent company only financial statements of Thinking Electronic Industrial Co., Ltd. as of and for the years ended December 31, 2024 and 2023, respectively, on which we have issued an unmodified opinion.

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 Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the FSC, 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 Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the 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 auditors’ 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 disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated 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 the consolidated financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Chen-Li Chen and Yu-Hsiang Liu.

Deloitte & Touche Taipei, Taiwan Republic of China February 20, 2025

Notice to Readers

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

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

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 , 7 and 28) Financial assets at amortized cost - current (Notes 4 and 8 ) Notes receivable (Notes 10 and 30) Accounts receivable, net (Notes 4 and 10) Accounts receivables from related parties (Notes 10 and 29) Other receivables Current tax assets (Notes 4 and 25) Inventories (Notes 4 and 11) Other financial assets - current (Notes 12 and 30) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 9) Financial assets at amortized cost - non-current (Notes 4 and 8) Property, plant and equipment (Notes 4, 14, 30 and 31) Right-of-use assets (Notes 4 and 15) Investment property, net (Notes 4 and 16) Computer software, net (Note 4) Deferred tax assets (Notes 4 and 25) Prepayments for equipment Net defined benefit assets - non-current (Notes 4 and 21) Other financial assets - non-current (Notes 12 and 30) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 4 and 17) Financial liabilities at fair value through profit or loss - current (Notes 4, 7 and 28) Notes payable (Note 18) Accounts payable (Note 18) Accounts payable to related parties (Note 29) Other payables (Note 19) Other payables to related parties (Note 29) Current tax liabilities (Notes 4 and 25) Lease liabilities - current (Notes 4 and 15) Current portion of long-term borrowings (Notes 4 and 17) Refund liabilities - current (Notes 4 and 20) Other current liabilities (Notes 4 and 17) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 4 and 17) Deferred tax liabilities (Notes 4 and 25) Lease liabilities - non-current (Notes 4 and 15) Long-term deferred revenue (Notes 4 and 17) Guarantee deposits received Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 13 and 22) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity attributable owners of the Company NON-CONTROLLING INTERESTS (Notes 4, 13 and 22) Total equity TOTAL		December 31, 2024		December 31, 2023
		Amount % $ 3,069,921 20 1,142,471 7 480,242 3 658,417 4 2,349,081 15 271 - 63,152 - 5,247 - 1,455,448 9 200,389 1 231,209 2 9,655,848 61 27,903 - 1,356,518 9 3,862,150 25 516,616 3 28,692 - 34,987 - 93,473 1 113,616 1 44,292 - 14,759 - 43,675 - 6,136,681 39 $ 15,792,529 100 $ 415,000 3 4,212 - 394,126 2 446,649 3 1,515 - 702,275 5 883 - 147,836 1 30,592 - 178,612 1 156,608 1 46,408 - 2,524,716 16 680,030 4 1,744,198 11 90,056 1 30,482 - 6,483 - 5,175 - 2,556,424 16 5,081,140 32 1,281,127 8 352,907 2 1,584,900 10 256,236 2 6,983,444 44 8,824,580 56 131,336 1 10,589,950 67 121,439 1 10,711,389 68 $ 15,792,529 100		Amount % $ 2,599,316 19 1,127,549 8 302,843 2 432,050 3 1,930,604 14 620 - 66,081 1 27,192 - 1,236,708 9 95,120 1 170,893 1 7,988,976 58 27,682 - 986,429 7 3,693,813 27 372,854 3 33,375 1 39,913 1 163,861 1 142,079 1 31,036 - 23,584 - 146,227 1 5,660,853 42 $ 13,649,829 100 $ 135,000 1 629 - 65,390 1 407,028 3 820 - 721,868 5 1,357 - 27,267 - 44,994 - 131,589 1 76,342 1 26,564 - 1,638,848 12 895,659 7 1,547,020 11 81,328 1 31,902 - 2,084 - 5,175 - 2,563,168 19 4,202,016 31 1,281,127 9 352,907 3 1,454,089 11 140,627 1 6,337,262 46 7,931,978 58 (256,236) (2) 9,309,776 68 138,037 1 9,447,813 69 $ 13,649,829 100

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

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 23 and 29) OPERATING COSTS (Notes 11, 24 and 29) GROSS PROFIT OPERATING EXPENSES (Notes 4, 10, 24 and 29) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (gain) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 24 and 29) Interest income Other income Other gains and losses Finance costs Total non-operating income and expenses CONSOLIDATED PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 25) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) (Notes 4, 22 and 25) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain on investments in equity instruments at fair value through other comprehensive income Income tax related to items that will not be reclassified subsequently to profit or loss		2024 Amount % $ 7,519,697 100 4,539,950 61 2,979,747 39 363,037 5 434,539 6 409,964 5 (1,590) - 1,205,950 16 1,773,797 23 139,203 2 104,246 1 71,890 1 (23,876) - 291,463 4 2,065,260 27 532,287 7 1,532,973 20 11,521 - 221 - (2,304) - 9,438 -		2023
				Amount % $ 7,077,136 100 4,333,369 61 2,743,767 39 338,346 5 445,347 6 360,706 5 6,923 - 1,151,322 16 1,592,445 23 118,743 1 57,048 1 (28,851) - (16,838) - 130,102 2 1,722,547 25 411,388 6 1,311,159 19 781 - 1,959 - (156) - 2,584 - (Continued)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Income tax related to items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the year, net TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT ATTRIBUTABLE TO: Owners of the Company Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company Non-controlling interests EARNINGS PER SHARE (Note 26) Basic Diluted			2024 Amount % 484,189 6 (96,838) (1) 387,351 5 396,789 5 1,929,762 25 1,550,540 20 (17,567) - 1,532,973 20 1,946,360 25 (16,598) - 1,929,762 25 $ 12.10 $ 12.05		2023
		$			Amount % $ (146,960) (2) 29,392 - (117,568) (2) (114,984) (2) $ 1,196,175 17 $ 1,307,803 19 3,356 - $ 1,311,159 19 $ 1,192,506 17 3,669 - $ 1,196,175 17 $ 10.21 $ 10.17


		$
		$
		$
		$
		$

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

(Concluded)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

		Equity Attributable to Ow	ners of the Company	ners of the Company
Ordinary Shares Capital Surplus $ 1,281,127 $ 352,907 - - - - - - - - - - - - - - 1,281,127 352,907 - - - - - - - - - - - - - - $ 1,281,127 $ 352,907		Retained Earnings			Other Equity	Total Other Equity $ (140,627) - - - - - (115,609) (115,609) (256,236) - - - - - 387,572 387,572 $ 131,336
				Exchange Differences on Translation of Foreign Operations $ (132,408) - - - - - (117,568) (117,568) (249,976) - - - - - 387,351 387,351 $ 137,375	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income $ (8,219) - - - - - 1,959 1,959 (6,260) - - - - - 221 221 $ (6,039)
	Legal Reserve $ 1,316,508 137,581 - - 137,581 - - - 1,454,089 130,811 - - 130,811 - - - $ 1,584,900	Special Reserve Unappropriated Earnings $ 222,378 $ 5,776,786 - (137,581) - (691,809) (81,751) 81,751 (81,751) (747,639) - 1,307,803 - 312 - 1,308,115 140,627 6,337,262 - (130,811) 115,609 (115,609) - (666,186) 115,609 (912,606) - 1,550,540 - 8,248 - 1,558,788 $ 256,236 $ 6,983,444	Total Retained Earnings $ 7,315,672 - (691,809) - (691,809) 1,307,803 312 1,308,115 7,931,978 - - (666,186) (666,186) 1,550,540 8,248 1,558,788 $ 8,824,580

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

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Consolidated income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss (gain) recognized Net loss on financial assets or liabilities at fair value through profit or loss Finance costs Interest income Dividend income Loss on disposal of property, plant and equipment Reversal of write-down of inventories Recognition of provisions Amortization of grants income Other non-cash items Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss Notes receivable Accounts receivable Accounts receivables from related parties Other receivables Inventories Prepayments Other current assets Net defined benefit asset Notes payable Accounts payable Accounts payable to related parties Other payables Other payables to related parties Other current liabilities Other operating liabilities Cash generated from operations Interest received Interest paid Income taxes paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at amortized cost Proceeds from disposal of financial assets at amortized cost	2024 $ 2,065,260 408,666 14,579 (1,590) 16,702 23,876 (139,203) - 6,458 (86,771) 94,743 (2,421) (2,360) (47,739) (226,367) (417,589) 349 4,286 (143,479) - (60,316) (1,735) 328,736 39,621 695 18,616 (474) 17,521 (10,922) 1,899,142 130,420 (19,331) (221,324) 1,788,907 (1,008,072) 537,241	2023 $ 1,722,547 373,241 17,822 6,923 33,242 16,838 (118,743) (763) 16,529 (88,622) - (1,079) (697) (32,703) (108,311) (13,160) (620) 6,222 516,706 (17,968) 34,574 (20,725) (4,437) 22,221 819 10,830 (2,756) 6,712 (8,354) 2,366,288 102,355 (12,485) (327,535) 2,128,623 (870,857) 131,526 (Continued)

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THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in other financial assets Decrease in other financial assets Increase in other non-current assets Decrease in other non-current assets Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Proceeds from long-term borrowings Repayment of long-term borrowings Increase in guarantee deposits received Repayments of the principal portion of lease liabilities Cash dividends paid Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT THE END OF YEAR	2024 $ (3,329,360) 3,414,305 (470,840) 26,829 (9,039) (96,444) - (3,567) - - (938,947) 2,240,140 (1,960,140) 43,700 (219,119) 4,399 (73,458) (666,186) (630,664) 251,309 470,605 2,599,316 $ 3,069,921	2023 $ (2,660,443) 2,429,400 (862,483) 59,935 (15,499) - 188,009 (104,030) 4,596 763 (1,699,083) 420,000 (993,000) 155,148 (169,413) 405 (56,310) (691,809) (1,334,979) (68,365) (973,804) 3,573,120 $ 2,599,316

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

(Concluded)

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THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (Amounts in Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Thinking Electronic Industrial Co., Ltd. (the “Company”) was incorporated in July 1979. The Company mainly manufactures, processes and sells electric devices, thermistors, varistors and wires.

The Company’s shares have been listed on the Taiwan Stock Exchange since September 2000.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on February 20, 2025.

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

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

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Company and its subsidiaries (the “Group”)’s accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

New, Amended and Revised Standards and Interpretations Amendments to IAS 21 “Lack of Exchangeability”	Effective Date Announced by IASB
	January 1, 2025 (Note)

Note: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

Amendments to IAS 21 “Lack of Exchangeability”

The amendments stipulate that a currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations. An entity shall estimate the spot exchange rate at a measurement date when a currency is not exchangeable into another currency to reflect the rate at which an orderly exchange

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transaction would take place at the measurement date between market participants under prevailing economic conditions. In this situation, the Group shall disclose information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, its financial performance, financial position and cash flows.

New, Amended and Revised Standards and Interpretations Annual Improvements to IFRS Accounting Standards - Volume 11 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information” IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	Effective Date Announced by IASB (Note)
	January 1, 2026 January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

New, Amended and Revised Standards and Interpretations
Annual Improvements to IFRS Accounting Standards - Volume 11

Amendments to IFRS 9 and IFRS 7 “Amendments to the
Classification and Measurement of Financial Instruments”

Amendments to IFRS 9 and IFRS 7 “Contracts Referencing
Nature-dependent Electricity”

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 -
Comparative Information”

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

Effective Date
Announced by IASB (Note)

January 1, 2026
January 1, 2026
January 1, 2026
To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2027
January 1, 2027

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of Compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, related regulations and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

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

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

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

Current assets include:

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

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and
3) Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

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

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

See Note 13, Table 8 and 9 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

In preparing the financial statements of each individual entity in the group, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of

14 -

exchange prevailing at the dates of the transactions.

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

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

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

For the purposes of presenting the consolidated financial statements, the functional currencies of the Company and its foreign operations (including subsidiaries in other countries that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income attributed to the owners of the company and non-controlling interests.

On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

f. Inventories

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

g. Property, plant, and equipment

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

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Freehold land is not depreciated.

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

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

h. Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the end of owner-occupation.

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

i. Intangible assets

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

Expenditures on research activities are recognized as expenses in the period in which they are incurred.

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

j. Impairment of property, plant and equipment, right-of-use assets, investment properties and intangible assets

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

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

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

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k. Financial instruments

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

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

1) Financial assets

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

a) Measurement category

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost, and investments in equity instruments at FVTOCI.

i Financial assets at FVTPL

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

Financial assets at FVTPL are subsequently measured at fair value, and any dividends and interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 28.

ii Financial assets at amortized cost

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

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable, accounts receivable, other receivables and other financial assets are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset.

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

i) Significant financial difficulty of the issuer or the borrower;
17 -

ii) Breach of contract, such as a default;

iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

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

iii Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable).

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

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

For internal credit risk management purposes, the Group considers the following situations as indication that a financial asset is in default (without taking into account any collateral held by the Group):

i Internal or external information shows that the debtor is unlikely to pay its creditors.
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ii When a financial asset is more than 180 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

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

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Financial liabilities
a) Subsequent measurement

Except financial liabilities at FVTPL, all financial liabilities are measured at amortized cost using the effective interest method. Financial liabilities at FVTPL including financial liabilities held for trading are stated at fair value, and any gains or losses on such financial liabilities are recognized in other gains or losses.

Fair value is determined in the manner described in Note 28.

b) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

3) Derivative financial instruments

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g., financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts, and the host contracts are not measured at FVTPL.

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l. Revenue recognition

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

Revenue from sale of goods comes from sales of thermistors and varistors. Sales of thermistors and varistors are recognized as revenue when the goods are shipped or delivered to the customer’s specific location because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers, and bears the risks of obsolescence. Accounts receivable are recognized simultaneously.

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

Refund liabilities are based on the historical experience and different contract items to estimate the probable sales returns and allowance.

m. Leases

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

For a contract that contains a lease component and non-lease components, the Group allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

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

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

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

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

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

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

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of

20 -

the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

n. Borrowing costs

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

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

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

o. Government grants

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

Government grants related to income are recognized in other income on a systematic basis over the period in which the group recognized as expense the related cost that the grants intend to compensate. Specifically, government grants whose primary condition is that the group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

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

The benefit of a government loan received at a below-market rate of interest is treated as a government grant measured as the difference between the proceeds received and the fair value of the loan base on prevailing market interest rate.

p. Employee benefits

1) Short-term employee benefits

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

2) Retirement benefits

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

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

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

q. Taxation

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

1) Current tax

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

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

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

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

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

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

3) Current and deferred taxes

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

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5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

When developing material accounting estimates, the Group considers the possible impact on the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised if the revisions affect only that year, or in the year of the revisions and future years if the revisions affect both current and future years.

Key Sources of Estimation Uncertainty

a. Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions on probability of default and loss given default. The Group uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. For details of the key assumptions and inputs used, see Note 10. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

b. Write-down of inventories

The net realizable value of inventories 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. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts Demand deposits Cash equivalents Time deposits with original maturities of 3 months or less The annual interest rate of time deposits (%)		December 31	December 31
		2024 $ 2,270 74 2,860,230 207,347 $ 3,069,921 0.65-1.55	2023 $ 3,647 74 1,316,094 1,279,501 $ 2,599,316 0.855-5.7

The Group transacted with variety of financial institutions which are high credit quality to disperse credit risk, hence, there was no expected credit loss.

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7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets-current Financial assets mandatorily classified as at FVTPL Hybrid financial assets Structured deposits (a) Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Foreign exchange forward contracts (b)		December 31	December 31
		2024 $ 1,142,471 $ 4,212	2023 $ 1,127,549 $ 629

a. Structured deposits combined with embedded derivatives which have no direct connection to major contract. Because the major contract included in the above financial assets should be measured under IFRS 9, the entire contract therefore mandatorily classified as at FVTPL.
b. At the end of the year, outstanding forward exchange contracts not under hedge accounting were as follows:

December 31, 2024

					Notional Amount
			Currency	Maturity Date	(In Thousands)
Sell			USD/NTD	2025.01	USD33,000/NTD1,079,640
Sell			USD/CNY	2025.01	USD12,000/CNY87,581
December	31,	2023
					Notional Amount
			Currency	Maturity Date	(In Thousands)
Sell			EUR/USD	2024.01	EUR4,000/USD4,406

The Group entered into forward exchange contracts and swap contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

Details of profit and loss of financial instruments at FVTPL for the year 2024 and 2023 list on Note 24.

8. FINANCIAL ASSETS AT AMORTIZED COST

Time deposits with original maturities of more than 3 months Current Non-current The annual interest rate (%)		December 31	December 31
		2024 $ 1,836,760 $ 480,242 1,356,518 $ 1,836,760 1.7-3.55	2023 $ 1,289,272 $ 302,843 986,429 $ 1,289,272 3-4.18

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9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

Investments in equity instruments at FVTOCI Domestic unlisted shares		December	31
		2024 $ 27,903	2023 $ 27,682

These investments in equity instruments are not held for trading or for short-term gains. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI.

10. NOTES AND ACCOUNTS RECEIVABLE

Notes receivable At amortized cost Gross carrying amount - operating Accountsreceivable- non-related parties At amortized cost Gross carrying amount - operating Less: Allowance for impairment loss Accountsreceivablefrom related parties At amortized cost Gross carrying amount - operating		December 31	December 31
		2024 $ 658,417 $ 2,367,938 18,857 $ 2,349,081 $ 271	2023 $ 432,050 $ 1,950,683 20,079 $ 1,930,604 $ 620

Refer to Note 30 for information related to notes receivable pledged as security.

The Company’s notes receivable and accounts receivable have been measured by amortized cost. Refer to Note 28 for information related to credit management policy.

The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated using a provision matrix prepared by reference to the past default records of the debtor and an analysis of the debtor’s current financial position, adjusted for economic conditions of the industry in which the debtor operates and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date.

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

There were no notes receivable that were past due and not impaired at the end of the reporting years.

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The following table details the loss allowance of accounts receivable based on the Group’s provision matrix:

December 31, 2024

Not Past Due Expected credit loss rate 0%-0.05% Gross carrying amount $ 2,261,546 Loss allowance (Lifetime ECLs) (1,023) Amortized cost $ 2,260,523	1 to 30 Days Pass Due 0.5% $ 16,756 (84) $ 16,672	31 to 60 Days Pass Due 1% $ 54,968 (550) $ 54,418	61 to 90 Days Pass Due 30% $ 16,686 (5,006) $ 11,680	91 to 180 Days Pass Due 50% $ 12,118 (6,059) $ 6,059	Over 180 Days Pass Due 100% $ 6,135 (6,135) $ -	Total $ 2,368,209 (18,857) $ 2,349,352

December 31, 2023

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	Not Past Due 0%-0.05% $ 1,832,137 (952) $ 1,831,185	1 to 30 Days Pass Due 0.5% $ 4,041 (20) $ 4,021	31 to 60 Days Pass Due 1% $ 83,718 (826) $ 82,892	61 to 90 Days Pass Due 30% $ 13,650 (4,026) $ 9,624	91 to 180 Days Pass Due 50% $ 7,004 (3,502) $ 3,502	Over 180 Days Pass Due 100% $ 10,753 (10,753) $ -	Total $ 1,951,303 (20,079) $ 1,931,224

The movements of the loss allowance of accounts receivable were as follows:

Balance at January 1 Net remeasurement (reversal) of loss allowance Amounts written off Foreign exchange gains and losses Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 20,079 (1,590) (334) 702 $ 18,857	2023 $ 29,209 6,923 (15,838) (215) $ 20,079

11. INVENTORIES

Finished goods Work-in-process Semi-finished Raw materials Supplies Inventory in transit		December 31	December 31
		2024 $ 681,201 265,844 222,349 253,152 28,729 4,173 $ 1,455,448	2023 $ 619,092 225,714 173,079 191,382 21,133 6,308 $ 1,236,708

The cost of goods sold related to inventories includes the reversal of write-down of inventory and unallocated production overhead. The amounts were as follows:

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Cost of goods sold Loss of inventory scrapped Inventory write-downs (reversed) Unallocated manufacturing overhead	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 4,539,950 $ 52,243 (139,014) 23,451 $ (63,320)	2023 $ 4,333,369 $ 61,277 (149,899) 5,139 $ (83,483)

Unallocated fixed overheads attributable to idle capacity are recognized as cost of goods sold in the period when they are incurred.

12. OTHER FINANCIAL ASSETS

Pledge demand deposits Pledge time deposits Deposits of banker’s acceptance Refundable deposits Current Non-current The annual interest rate of pledge time deposits (%)		December 31	December 31
		2024 $ 94,869 33,660 71,860 14,759 $ 215,148 $ 200,389 14,759 $ 215,148 0.67	2023 $ 51,471 28,800 14,849 23,584 $ 118,704 $ 95,120 23,584 $ 118,704 1.32

For other financial assets pledged information please refer to Note 30.

13. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements were as follows:

Main

Name of Investor
Name of Investee
Businesses and
Products
The Company
Yenyo Technology Co., Ltd. (Yenyo)
Note 1
Greenish Co., Ltd. (Greenish)
Note 2
Thinking (Changzhou) Electronic Co., Ltd.
(Thinking Changzhou)
Note 3
Thinking Holding (Cayman) Co., Ltd.
(Thinking Holding)
Note 2
Thinking Electronic USA, Inc.
(Thinking USA)
Note 4
Thinking (Viet Nam) Electronic Co., Ltd.
（Thinking Viet Nam）
Note 3
Greenish
Thinking Changzhou
Note 3 Percentage of Ownership (%)
December 31,
2024
December 31,
2023
Description
63.76
63.76
100.00
100.00
47.39
47.39
100.00
100.00
Note 7
100.00
100.00
100.00
100.00
Note 8
52.61
52.61
(Continued)

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Main

Name of Investor
Name of Investee
Businesses and
Products
Thinking Holding
Thinking International Co., Ltd.
(Thinking International)
Note 2
Thinking (HK) Enterprises Limited
(Thinking HK)
Note 2
View Full (Samoa) Ltd. (View Full Samoa)
Note 2
Thinking Electronic (Samoa) Ltd.
(Thinking Samoa)
Note 2
Thinking International
Thinking (Yichang) Electronic Co., Ltd.
(Thinking Yichang)
Note 3
Thinking HK
Jiang Xi Thinking Electronic Co., Ltd.
(Jiangxi Thinking)
Note 5
View Full Samoa
Dong Guan Welkin Electronic Co., Ltd.
(Dongguan Welkin)
Note 6
Thinking Samoa
Dongguan Welkin
Note 6
Thinking Changzhou
Dongguan Welkin
Note 6
Dongguan Welkin
Welkin Electronic Co., Ltd.
(Zhongshan Welkin)
Note 3

Percentage of Ownership (%)
December 31,
2024
December 31,
2023
Description
100.00
100.00
Note 7
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Note 7
100.00
100.00
64.96
64.96
Note 9
8.76
8.76
Note 9
26.28
26.28
Note 9
100.00
100.00

(Concluded)

Note 1: Processing, selling and manufacturing diodes.
Note 2: International trading and investment.
Note 3: Manufacturing and selling thermistors, varistors and sensors.
Note 4: Electronic product design and marketing.
Note 5: Manufacturing and selling thermistors and varistors.
Note 6: Manufacturing and selling thermistors, varistors, sensors and equipment.
Note 7: In order to cope with the working capital demands, the Group invested Thinking Holding US$0.3 million and, through its subsidiary Thinking International, registered Thinking Yichang in mainland China.
Note 8: In order to integrate manufacturing, marketing and facility layouts, the board of directors resolved to set up a new subsidiary in Vietnam on February 8, 2023, and the total investment amount is expected to be US$27 million. As of December 31, 2024, the Group had invested US$4.8 million in the subsidiary.
Note 9: In response to optimizing the organizational structure of the Group, the board of directors of Dongguan Welkin resolved to merge Guangdong Welkin Thinking Electronic Co., Ltd. (Guangdong Welkin Thinking) in April 2023, and the base date for the merger was June 30, 2023. Guangdong Welkin Thinking was dissolved after the merger, and Dongguan Welkin has completed the registration.
28 -

14. PROPERTY, PLANT, AND EQUIPMENT

a. Changes in costs and accumulated depreciation

For the Year ended December 31, 2024

Cost Balance at January 1, 2024 Additions Disposals Effect of foreign currency exchange differences Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Depreciation expense Disposals Effect of foreign currency exchange differences Balance at December 31, 2024 Carrying amount at December 31, 2024	Land $ 195,719 - - - $ 195,719 $ - - - - $ - $ 195,719	Buildings $ 1,181,170 871,604 (1,362 ) 48,895 $ 2,100,307 $ 384,236 62,653 (1,362 ) 13,576 $ 459,103 $ 1,641,204	Machinery and Equipment Leasehold Improvements $ 2,635,190 $ 137,591 268,856 6,048 (81,769 ) - 93,953 7,219 $ 2,916,230 $ 150,858 $ 1,388,832 $ 117,601 226,857 7,369 (48,678 ) - 45,826 6,218 $ 1,612,837 $ 131,188 $ 1,303,393 $ 19,670	Others t $ 479,303 514,904 (3,899 ) 12,658 $ 1,002,966 $ 345,496 64,057 (3,703 ) 7,794 $ 413,644 $ 589,322	Construction in Progress and Equipment o be Inspected $ 1,301,005 (1,196,180 ) - 8,017 $ 112,842 $ - - - - $ - $ 112,842	Total $ 5,929,978 465,232 (87,030 ) 170,742 $ 6,478,922 $ 2,236,165 360,936 (53,743 ) 73,414 $ 2,616,772 $ 3,862,150

For the Year ended December 31, 2023

Cost Balance at January 1, 2023 Additions Disposals Effect of foreign currency exchange differences Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Depreciation expense Disposals Effect of foreign currency exchange differences Balance at December 31, 2023 Carrying amount at December 31, 2023	Land $ 195,719 - - - $ 195,719 $ - - - - $ - $ 195,719	Buildings $ 995,231 200,726 (200 ) (14,587) $ 1,181,170 $ 343,299 45,337 (200 ) (4,200) $ 384,236 $ 796,934	Machinery and Equipment Leasehold Improvements $ 2,550,730 $ 126,040 318,212 13,950 (202,603 ) - (31,149) (2,399) $ 2,635,190 $ 137,591 $ 1,316,973 $ 109,473 213,387 10,170 (126,737 ) - (14,791) (2,042) $ 1,388,832 $ 117,601 $ 1,246,358 $ 19,990	Others t $ 468,037 31,898 (16,550 ) (4,082) $ 479,303 $ 325,693 38,205 (15,952 ) (2,450) $ 345,496 $ 133,807	Construction in Progress and Equipment o be Inspected $ 978,941 326,294 - (4,230) $ 1,301,005 $ - - - - $ - $ 1,301,005	Total $ 5,314,698 891,080 (219,353 ) (56,447) $ 5,929,978 $ 2,095,438 307,099 (142,889 ) (23,483) $ 2,236,165 $ 3,693,813

A reconciliation of the above-mentioned increase in property, plant and equipment and the amount paid in the consolidated statements of cash flows is as follows:

Investing activities that affected both cash and non-cash items Additions to property, plant, and equipment Decrease in payables for equipment (in other payables)	For the Year Ended December 31
	2024 2023 $ 465,232 $ 891,080 38,150 15,622 (Continued)

29 -

Decrease in prepayments for equipment Capitalization of depreciation Payments of acquisition of property, plant and equipment	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ (28,463) (4,079) $ 470,840	2023 $ (43,635) (584) $ 862,483 (Concluded)

b. Useful lives

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

Buildings Main plants 20-60 years Improvement engineering 2-60 years Machinery and equipment 1-19 years Leasehold improvements 10 years Others 3-19 years

c. As of December 31, 2024 and 2023, the Group didn’t provide property, plant and equipment as guarantee.

15. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings		December 31	December 31
	2024 $ 468,905 47,711 $ 516,616 For the Year Ended		2023 $ 303,863 68,991 $ 372,854 December 31
		2024 $ 191,017 $ 11,589 33,932 $ 45,521	2023 $ 58,350 $ 7,929 52,594 $ 60,523

Except for the recognized depreciation and additions, the Group did not have impairment or subleasing of right-of-use assets for the years ended December 31, 2024 and 2023.

30 -

b. Lease liabilities

Carrying amount Current Non-current		December 31	December 31
		2024 $ 30,592 90,056 $ 120,648	2023 $ 44,994 81,328 $ 126,322

Range of discount rates for lease liabilities was as follows:

Land Buildings	December 31
	2024 2023 0.75-5.8 0.75-1.38 1.35-4.7 3.72-5.13

c. Material leasing activities and terms

The Group leases land and buildings for the use of plants and offices.

1) Land

The land is located in Nanzih Export Processing Zone with the remaining useful life of 1 to 6 years, and the leases are renewable upon expiration. The government reserves the right to adjust rent according to the assessed land value.

The right-of-use land is located in mainland China with the remaining useful life of 30 to 48 years.

The right-of-use land is located in Vietnam with the remaining useful life of 34 years. The government of Vietnam adjusts rent annually according to the assessed land value per square meter.

2) Buildings

The building is located in Zuoying District, Kaohsiung City with the remaining useful life of 3 years. The Group is granted the right to renew the lease upon expiration.

The building is located in mainland China with the remaining useful life of 1 to 4 years. The lease payments will be adjusted every 3 years based on the changes in market rental rates.

The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease period. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 5,866 $ 1,398 $ 84,210	2023 $ 6,376 $ 878 $ 69,430

31 -

Lease arrangements under operating leases for the leasing out of investment properties are presented in Note 16.

16. INVESTMENT PROPERTIES

Cost Balance at January 1 Effect of foreign currency exchange differences Balance at December 31 Accumulated depreciation Balance at January 1 Depreciation expense Effect of foreign currency exchange differences Balance at December 31 Carrying amount at December 31	For the Year Ended	For the Year Ended	December 31
		2024 $ 113,190 5,903 $ 119,093 $ 79,815 6,288 4,298 $ 90,401 $ 28,692	2023 $ 115,189 (1,999) $ 113,190 $ 75,013 6,203 (1,401) $ 79,815 $ 33,375

Depreciation is provided on a straight-line basis over the estimated useful lives of 5-22 years.

The Group has buildings located in Beijing, Suzhou, and Nanchang, China with fair values that are not evaluated by an independent valuer but valued by the management using the valuation model that market participants would use in determining the fair value, and the fair value was measured using Level 3 inputs. The valuation was arrived at by reference to market evidence of transaction prices for similar properties. The calculated fair value was $81,399 thousand and $95,207 thousand as of December 31, 2024 and 2023, respectively.

17. BORROWINGS

a. Short-term borrowings

Credit loans The annual interest rate (%) b. Long-term borrowings		December 31	December 31
		2024 $ 415,000 1.77-2.105	2023 $ 135,000 0.5-1.64

Credit loans Less: Government grants discount	December 31
	2024 2023 $ 861,902 $ 1,037,322 3,260 10,074 (Continued)

32 -

Less: Current portion of long-term borrowings The annual interest rate (%)		December 31	December 31
		2024 $ 178,612 $ 680,030 1.225	2023 $ 131,589 $ 895,659 1.1 (Concluded)

The Company obtained borrowings under the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan”, which have interest at prime rate and are used for capital expenditures and operating turnovers. Monthly installments start on the fourth year from the date of initial drawdown until October 2030. The borrowing interest rate is lower than the market rate due to government subsidy policies, as a result, a portion of the loan is classified as government grants, recognized as deferred revenue (other current liabilities) and long-term deferred revenue, and transferred to profit or loss over the useful lives of the related assets.

18. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

The Group’s notes payable and accounts payable were from operating activities and were not secured by collaterals.

The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms; therefore, no interest was charged on the outstanding accounts payable.

19. OTHER PAYABLES

Payable for salaries and bonuses Payable for purchase of equipment Payable for employees’ compensation Payable for remuneration of directors Others		December 31	December 31
		2024 $ 417,451 26,243 84,452 25,991 148,138 $ 702,275	2023 $ 388,726 64,393 75,333 22,494 170,922 $ 721,868

20. REFUND LIABILITIES

Balance at January 1 Additional provisions recognized Usage Effects of foreign currency exchange differences Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2024 $ 76,342 94,743 (15,782) 1,305 $ 156,608	2023 $ 84,696 - (8,354) - $ 76,342

33 -

The discount on refund liabilities was based on historical experience, management’s judgments and other known reasons to estimate sales compensation and offset refund liability when compensation actually occurs.

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans
1) The Company and Yenyo of the Group adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.
2) Thinking Changzhou, Dongguan Welkin, Thinking Yichang, Jiangxi Thinking, Guangdong Welkin Thinking and Zhongshan Welkin of the Group make contributions in accordance with the local regulations. The subsidiaries are required to contribute a specified percentage of salaries to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan are to make the specified contributions.

b. Defined benefit plans

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

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit assets		December 31	December 31
		2024 $ 76,363 (120,655) $ (44,292)	2023 $ 82,717 (113,753) $ (31,036)

Movements in net defined benefit assets were as follows:

	Present Value
	of the Defined
	Benefit	Fair Value of	Net Defined
	Obligation	the Plan Assets	Benefit Assets
Balance at January 1, 2023	$ 104,610	$ (114,140)	$	(9,530)
Service cost
Current service cost	96	-		96
				(Continued)

34 -

	Present Value	Present Value
	of the Defined
		Benefit	Fair Value of	Net Defined
	Obligation		the Plan Assets	Benefit Assets
Net interest expense (income)	$	1,012	$ (1,375)	$	(363)
Recognized in profit or loss		1,108	(1,375)		(267)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-	(1,064)		(1,064)
Actuarial loss - experience adjustments		283	-		283
Recognized in other comprehensive income		283	(1,064)		(781)
Contributions from the employer		-	(2,020)		(2,020)
Benefits paid		(23,284)	4,846		(18,438)
Balance at December 31, 2023		82,717	(113,753)		(31,036)
Service cost
Current service cost		35	-		35
Net interest expense (income)		946	(1,346)		(400)
Recognized in profit or loss		981	(1,346)		(365)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-	(10,433)		(10,433)
Actuarial gain
Changes in financial assumptions		(984)	-		(984)
Experience adjustments		(104)	-		(104)
Recognized in other comprehensive income		(1,088)	(10,433)		(11,521)
Contributions from the employer		-	(1,370)		(1,370)
Benefits paid		(6,247)	6,247		-
Balance at December 31, 2024	$	76,363	$ (120,655)	$	(44,292)
					(Concluded)

Through the defined benefit plans under the Labor Standards Law, the Company and Yenyo of the Group are exposed to the following risks:

1) Investment risk

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

2) Interest risk

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

35 -

3) Salary risk

The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

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

Discount rate (%) Expected rate of salary increase (%)	December 31
	2024 2023 1.5-1.6 1.25 2-3 2-3

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

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase (decrease) 1% increase 1% decrease		December	31
		2024 $ (757) $ 774 $ 3,175 $ (2,949)	2023 $ (989) $ 1,017 $ 4,171 $ (3,820)

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

The expected contributions to the plans for the next year Average duration of the defined benefit obligation (years)		December	31
		2024 $ 1,262 6.1-7.7	2023 $ 1,970 7.1-9.4

22. EQUITY

a. Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31	December 31
		2024 $ 200,000 $ 2,000,000 128,113 $ 1,281,127	2023 $ 200,000 $ 2,000,000 128,113 $ 1,281,127

36 -

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

b. Capital surplus

May be used to offset a deficit, distributed as cashdividends, ortransferred to ordinary shares (Note) Conversion of bonds Issuance of ordinary shares Treasury share transactions Difference between consideration and carrying amount of the subsidiaries acquired		December 31	December 31
		2024 $ 265,446 59,168 23,649 4,644 $ 352,907	2023 $ 265,446 59,168 23,649 4,644 $ 352,907

Note: Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to ordinary shares (limited to a certain percentage of the Company’s capital surplus and to once a year).

c. Retained earnings and dividend policy

Under the dividend policy in the Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonuses to shareholders.

The Company’s dividend policy is also designed to meet the current and future development plans and takes into consideration the investment environment, capital needs, domestic or international competitive conditions while simultaneously meeting shareholders’ interests. The Company shall distribute the dividends at no less than 30% of the distributable earnings of the current year. The way to distribute dividends could be either through cash or shares, and cash dividends shall not be less than 20% of total dividends.

Items referred to under Rule No. 1090150022 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards” should be appropriated to or reversed from a special reserve by the Company. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and thereafter distributed.

The legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2023 and 2022 were approved in the shareholders’ meeting on June 18, 2024 and June 13, 2023, respectively. The appropriations of earnings for 2023 and 2022 were as follows:

37 -

Legal reserve Special reserve (reversed) Cash dividends		Appropriation of Earnings For the Year Ended 2023 2022 $ 130,811 $ 137,581 115,609 (81,751) 666,186 691,809 $ 912,606 $ 747,639	Dividend Per Share (NT$)
			For the Year Ended
		2023 $ 130,811 115,609 666,186 $ 912,606	2023 2022 $ 5.2 $ 5.4

The appropriations of earnings for 2024 were proposed by the Company’s board of directors on February 20, 2025. The appropriation and dividends per share were as follows:

	Appropriation	Dividend Per
	of Earnings	Share (NT$)
Legal reserve	$ 155,878
Special reserve (reversed)	(256,236)
Cash dividends	781,488	$ 6.1
	$ 681,130

The appropriations of earnings for 2024 are subject to the resolution of the shareholders in their meeting to be held on June 17, 2025.

d. Other equity items
1) Exchange differences on translation of foreign operations

Balance at January 1 Recognized for the year Exchange differences on translation of the financial statements of foreign operations Income tax benefit (expenses) relating to exchange differences arising on translation of foreign operations Balance at December 31 2) Unrealized valuation gain (loss) on financial assets at FVTOCI Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Balance at December 31	For the Year Ended	For the Year Ended	December 31
	2024 2023 $ (249,976) $ (132,408) 484,189 (146,960) (96,838) 29,392 $ 137,375 $ (249,976) For the Year Ended December 31
		2024 $ (6,260) 221 $ (6,039)	2023 $ (8,219) 1,959 $ (6,260)

38 -

e. Non-controlling interests

Balance at January 1 Share in (loss) gain for the year Other comprehensive income during the year Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2024 $ 138,037 (17,567) 969 $ 121,439	2023 $ 134,368 3,356 313 $ 138,037

23. OPERATING REVENUE

Revenue from contracts with customers Revenue from sale of goods Service revenue	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 7,519,576 121 $ 7,519,697	2023 $ 7,077,049 87 $ 7,077,136

a. Refer to Note 4 (l) for information related to contracts with customers.

b. Contract balances

December 31, 2024 December 31, 2023 Notes and accounts receivable (Note 10) $ 3,007,769 $ 2,363,274	January 1, 2023 $ 2,247,891

c. Disaggregation of revenue

For the year ended December 31, 2024

Reportable Segments The company Thinking Changzhou Jiangxi Thinking Dongguan Welkin and Zhongshan Welkin Others	Type of revenue	Type of revenue
	Revenue from Sale of Passive Components $ 2,833,165 1,723,449 43,844 2,286,528 632,590 $ 7,519,576	Service Revenue $ 121 - - - - $ 121	Total $ 2,833,286 1,723,449 43,844 2,286,528 632,590 $ 7,519,697

39 -

For the year ended December 31, 2023

Reportable Segments The company Thinking Changzhou Jiangxi Thinking Dongguan Welkin and Zhongshan Welkin Others	Type of revenue	Type of revenue
	Revenue from Sale of Passive Components $ 2,795,535 1,744,608 57,946 1,827,094 651,866 $ 7,077,049	Service Revenue $ 87 - - - - $ 87	Total $ 2,795,622 1,744,608 57,946 1,827,094 651,866 $ 7,077,136

24. CONSOLIDATED NET PROFIT

Consolidated net profit included following items:

a. Interest income

For the Year Ended	For the Year Ended	December 31
2024 $ 50,772 69,351 19,080 $ 139,203 For the Year Ended		2023 $ 68,969 27,661 22,113 $ 118,743 December 31
2024 $ 87,159 6,784 - 10,303 $ 104,246 For the Year Ended		2023 $ 40,609 4,877 763 10,799 $ 57,048 December 31
	2024 $ (16,702) 107,614 (6,458) (12,564) $ 71,890	2023 $ (33,242) 36,858 (16,529) (15,938) $ (28,851)

40 -

d. Finance costs

For the Year Ended	For the Year Ended	December 31
2024 $ 24,907 3,488 28,395 4,519 $ 23,876 For the Year Ended		2023 $ 19,978 5,866 25,844 9,006 $ 16,838 December 31
2024 $ 4,519 1.1-1.23 For the Year Ended		2023 $ 9,006 0.975-1.23 December 31
	2024 $ 360,936 45,521 6,288 14,579 427,324 4,079 $ 423,245 $ 328,247 74,131 6,288 $ 408,666 $ 2,547 12,032 $ 14,579	2023 $ 307,099 60,523 6,203 17,822 391,647 584 $ 391,063 $ 298,031 69,007 6,203 $ 373,241 $ 5,226 12,596 $ 17,822

41 -

f. Employee benefits expense

Short-term employee benefits Salary Others Retirement benefits Defined contribution plans Defined benefit plans (Note 21) An analysis of employee benefits expense by function Operating costs Operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 1,787,735 221,829 2,009,564 123,365 (365) 123,000 $ 2,132,564 $ 1,408,342 724,222 $ 2,132,564	2023 $ 1,689,667 192,273 1,881,940 113,616 (267) 113,349 $ 1,995,289 $ 1,332,133 663,156 $ 1,995,289

g. Compensation of employees and remuneration of directors

The Company accrues compensation of employees and remuneration of directors at rates of no less than 2% and no higher than 2%, respectively, of net profit before income tax, compensation of employees and remuneration of directors. The appropriations of employees’ compensation and remuneration of directors for the years ended December 31, 2024 and 2023, which were approved by the Company’s board of directors on February 20, 2025 and February 26, 2024, respectively, were as follows:

Accrual rate Employees’ compensation (%) Remuneration of directors (%) Amounts Employees’ compensation Remuneration of directors	For the Year Ended December 31
	2024 2023 3.8 3.9 1.3 1.3 $ 76,450 $ 66,157 25,991 22,494

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

There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2023 and 2022.

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

42 -

25. INCOME TAX

a. Major components of income tax expense are as follows:

Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior years Deferred tax In respect of the current year Adjustments for prior years Tax rate amendment Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2024 $ 354,053 19,775 (9,990) 363,838 168,297 152 - 168,449 $ 532,287	2023 $ 191,479 31,408 (39,533) 183,354 222,604 1,736 3,694 228,034 $ 411,388

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

Profit before income tax Income tax expense calculated at the statutory rate Tax-exempt income Nondeductible expenses and tax-exempt income Income tax on unappropriated earnings Unrecognized loss carryforwards Unrecognized deductible temporary differences Tax rate amendment Usage of investment credit Adjustments for prior years’ tax Others Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 2,065,260 $ 582,427 - 7,655 19,775 8,405 (3) - (76,144) (9,838) 10 $ 532,287	2023 $ 1,722,547 $ 480,181 (153) 2,127 31,408 836 (77) 3,694 (68,831) (37,797) - $ 411,388

The tax rate applicable to income generated in the Republic of China is 20%, and the tax rate applicable to income generated in mainland China is 15% and 25%.

b. Income tax recognized in other comprehensive income

Deferred income tax Translation of foreign operations Remeasurement on defined benefit plans Income tax recognized in other comprehensive income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 96,838 2,304 $ 99,142	2023 $ (29,392) 156 $ (29,236)

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c. Current tax assets and liabilities

Current tax assets Tax refund receivable Current tax liabilities Income tax payable		December 31	December 31
		2024 $ 5,247 $ 147,836	2023 $ 27,192 $ 27,267

d. Deferred tax assets and liabilities

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

For the Year ended December 31, 2024

Deferred Tax Assets
Temporary differences
Unrealized loss on inventories

Unrealized gross profits
Unrealized refund liabilities
Exchange differences on translation of the
financial statements of foreign
operations
Others

Deferred Tax Liabilities
Temporary differences
Foreign investment income

Exchange differences on translation of the
financial statements of foreign
operations
Others

Balance,
Beginning of
Year
Recognized in
Profit or Loss
Recognized in
Other
Comprehensive
Income
Exchange
Differences
Balance, End
of Year
$ 60,457
$ (23,023 )
$ -
$ 1,726
$ 39,160
5,665
440
-
-
6,105
15,268
11,055
-
196
26,519
62,494
-
(62,494 )
-
-

19,977

2,222

(1,293)

783

21,689
$ 163,861
$ (9,306)
$ (63,787)
$ 2,705
$ 93,473
$ 1,489,641
$ 148,362
$ -
$ -
$ 1,638,003
-
-
34,344
-
34,344

57,379

10,781

1,011

2,680

71,851
$ 1,547,020
$ 159,143
$ 35,355
$ 2,680
$ 1,744,198

For the Year ended December 31, 2023

Deferred Tax Assets Temporary differences Unrealized loss on inventories Unrealized gross profits Unrealized refund liabilities Loss Carryforwards Exchange differences on translation of the financial statements of foreign operations Others	Balance, Beginning of Year Recognized in Profit or Loss Recognized in Other Comprehensive Income $ 88,155 $ (26,956 ) $ - 15,787 (10,122 ) - 16,939 (1,671 ) - 6,952 (6,940 ) - 33,102 - 29,392 22,537 (2,139 ) (156 ) $ 183,472 $ (47,828) $ 29,236	Exchange Differences Balance, End of Year $ (742 ) $ 60,457 - 5,665 - 15,268 (12 ) - - 62,494 (265) 19,977 $ (1,019) $ 163,861

(Continued)

44 -

Deferred Tax Liabilities Temporary differences Foreign investment income Others	Balance, Beginning of Year Recognized in Profit or Loss Recognized in Other Comprehensive Income $ 1,306,304 $ 183,337 $ - 61,367 (3,131) - $ 1,367,671 $ 180,206 $ -	Exchange Differences Balance, End of Year $ - $ 1,489,641 (857) 57,379 $ (857 ) $ 1,547,020

(Concluded)

e. Income tax assessments

The tax returns of the Company and Yenyo through 2022 have been assessed by the tax authorities.

26. EARNINGS PER SHARE

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

Net profit for the year

Profit for the year attributable to owners of the Company	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 1,550,540	2023 $ 1,307,803

Weighted average number of ordinary shares outstanding (in thousands of shares)

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of Employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended	For the Year Ended	December 31
		2024 128,113 567 128,680	2023 128,113 500 128,613

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

27. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The Group’s overall strategy remains unchanged from the last 2 years.

45 -

The Group is not subject to any externally imposed capital requirements.

28. FINANCIAL INSTRUMENTS

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

The Group’s management considers that the carrying amounts of financial assets and financial liabilities which are not measured at fair value approximate their fair values.

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

December 31, 2024 Financial assets at FVTPL Structured deposit Financialassets atFVTOCI Domestic unlisted shares Financial liabilities atFVTPL Derivative financial liabilities December 31, 2023 Financial assets at FVTPL Structured deposit Financialassets atFVTOCI Domestic unlisted shares Financial liabilities atFVTPL Derivative financial liabilities	Level 1 $ - $ - $ - Level 1 $ - $ - $ -	Level 2 $ - $ - $ 4,212 Level 2 $ - $ - $ 629	Level 3 $ 1,142,471 $ 27,903 $ - Level 3 $ 1,127,549 $ 27,682 $ -	Total $ 1,142,471 $ 27,903 $ 4,212 Total $ 1,127,549 $ 27,682 $ 629

There were no transfers between Level 1 and Level 2 in 2024 and 2023.

46 -
2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2024

Financial assets Balance at January 1, 2024 Purchases Disposals Recognized in profit or loss Recognized in other comprehensive income Foreign currency exchange differences Balanced at December 31, 2024	Debt Instruments Financial Assets at FVTPL $ 1,127,549 3,329,360 (3,414,305) 42,046 - 57,821 $ 1,142,471	Equity Instruments Financial Assets at FVTOCI Total $ 27,682 $ 1,155,231 - 3,329,360 - (3,414,305) - 42,046 221 221 - 57,821 $ 27,903 $ 1,170,374

For the year ended December 31, 2023

Financial assets Balance at January 1, 2023 Purchases Disposals Recognized in other comprehensive income Foreign currency exchange differences Balanced at December 31, 2023	Debt Instruments Financial Assets at FVTPL $ 914,951 2,660,443 (2,429,400) - (18,445) $ 1,127,549	Equity Instruments Financial Assets at FVTOCI $ 25,723 - - 1,959 - $ 27,682	Total $ 940,674 2,660,443 (2,429,400) 1,959 (18,445) $ 1,155,231

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

Financial Instrument Valuation Technique and Inputs

Derivatives - foreign exchange Discounted cash flow: future cash flows are estimated based on forward contracts observable forward exchange rates at the end of the year and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

4) Valuation techniques and inputs applied for Level 3 fair value measurement
a) The fair values of domestic unlisted shares are determined using the market approach where the inputs are categories of business, values of same type of company and operation of company.
b) The fair values of structured deposits mined using discounted cash flow method.
47 -
c. Categories of financial instruments

Financialassets FVTPL Mandatorily classified as at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Equity instruments Financial liabilities FVTPL Mandatorily classified as at FVTPL Amortized cost (Note 2)	December 31
	2024 2023 $ 1,142,471 $ 1,127,549 8,190,415 6,433,953 27,903 27,682 4,212 629 2,825,573 2,360,795

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables (excluding income tax refund receivable) and other financial assets.
2) The balances include financial liabilities at amortized cost, which comprise short-term loans, notes payable, accounts payable (including related parties), other payables (including related parties), long-term borrowings (including current portion) and guarantee deposits received.
d. Financial risk management objectives and policies

The main financial instruments of the Group include time deposits, equity instrument investments, notes receivables, trade receivables, notes payables, trade payables, borrowings, and lease liabilities. Financial risks associated with the management and operations of the Group included market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

The Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provided written principles on foreign currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The treasury function reports monthly to the Group’s management.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rate risks.

a) Foreign currency risk

The Group has foreign currency denominated sales and purchases, which exposes the Group to foreign currency risk. The Group engaged in derivative financial instruments within the scope of the policy, including forward exchange contracts and swap contracts, to mitigate the risk exposures to exchange rates that may arise from non-functional currency denominated assets and liabilities and certain anticipated transactions, but the impact of foreign currency exchange rate changes cannot be completely ruled out.

48 -

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities exposed to foreign currency risk at the end of the year are set out in Note 32.

Sensitivity analysis

The Group is mainly exposed to the risk from the fluctuations of the USD and the CNY, and the sensitivity rate used when reporting foreign currency risk internally to key management personnel in foreign exchange rates is 1%. The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies.

The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 1% change in currency rates. A positive number below indicates an increase in pre-tax profit associated with the functional currency.

Profit or loss	USD Impact For the Year Ended December 31 2024 2023 $ 12,145 $ 9,868	CNY Impact
		For the Year Ended December 31
		2024 2023 $ 5,228 $ 4,282

b) Interest rate risk

The interest rate risk of the Group is primarily related to its fixed interest rates and variable rate of borrowing funds. The Group manages its interest rate risk by using interest rate swap contracts and forward interest rate contracts. Furthermore, total amount of the Group’s cash and cash equivalents are considerably greater than the amount of bank loans which can process repayment procedure spontaneously. Therefore, interest rate risk does not have significant impact to the Group.

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2024 2023 $ 2,225,589 $ 2,658,677 220,648 261,322 4,036,367 2,472,443 1,173,642 1,027,248

Sensitivity analysis

If interest rates had been 1% higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2024 and 2023 would have been higher/lower by $28,627 thousand and by $14,452 thousand, respectively, which was mainly a result of the changes in the floating interest rate financial instrument.

49 -

2) Credit risk

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

The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group uses other publicly available financial information and its own trading records to rate its major customers. The Group is continuously monitoring and spreading the aggregate transactions to each credit-qualified counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Group annually.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

Bank loans are a major source of liquidity risk for the Group.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate at the end of the year.

December 31, 2024

On Demand or Less than 1 Month Non-interest bearing $ 346,949 Lease liabilities 2,219 Variable interest rate liabilities 16,395 Fixed interest rate liabilities 100,147 $ 465,710	1-3 Months 3 Months to 1 Year $ 869,417 $ 328,943 5,699 21,336 247,178 241,432 - - $ 1,122,294 $ 591,711	1-5 Years $ - 37,650 608,713 - $ 646,363	5+ Years $ - 91,403 99,615 -
			$ 191,018

Further information on the maturity analysis of the above financial liabilities was as follows:

Less than 1 Year Lease liabilities $ 29,254 Variable interest rate liabilities 505,005 $ 534,259	1-5 Years $ 37,650 608,713 $ 646,363	5-10 Years 10-15 Years 15-20 Years $ 13,367 $ 13,367 $ 13,367 99,615 - - $ 112,982 $ 13,367 $ 13,367	20+ Years $ 51,302 - $ 51,302

50 -

December 31, 2023

On Demand or Less than 1 Month Non-interest bearing $ 361,459 Lease liabilities 3,995 Variable interest rate liabilities 8,180 Fixed interest rate liabilities 35,277 $ 408,911	1-3 Months 3 Months to 1 Year $ 538,988 $ 295,816 8,056 36,212 17,096 117,165 100,061 118 $ 664,201 $ 449,311	1-5 Years $ - 38,611 922,558 - $ 961,169	5+ Years $ - 59,419 - -
			$ 59,419

Further information on the maturity analysis of the above financial liabilities was as follows:

Less than 1 Year Lease liabilities $ 48,263 Variable interest rate liabilities 142,441 $ 190,704	1-5 Years $ 38,611 922,558 $ 961,169	5-10 Years 10-15 Years 15-20 Years $ 7,321 $ 7,321 $ 7,321 - - - $ 7,321 $ 7,321 $ 7,321	20+ Years $ 37,456 - $ 37,456

b) Liquidity and interest rate risk table for derivative financial liabilities

The following table details the Group’s liquidity analysis of its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed is determined by reference to the projected interest rates as illustrated by the yield curves at the end of the year. Liquidity of derivative financial instruments of the Group is paid on demand or less than 1 month.

Gross settled Forward exchange contracts Inflows Outflows		December 31	December 31
		2024 $ 1,468,413 (1,472,625) $ (4,212)	2023 $ 136,560 (137,189) $ (629)

e. Transfers of financial assets

The Group transferred a portion of its banker’s acceptance bills in mainland China to some of its suppliers in order to settle the trade payables to these suppliers. As the Group has transferred substantially all risks and rewards relating to these bills receivable, it derecognized the full carrying amount of the bills receivable and the associated trade payables. However, if the derecognized bills receivable are not paid at maturity, the suppliers have the right to request that the Group pay the unsettled balance; therefore, the Group still has continuing involvement in these bills receivable.

The maximum exposure to loss from the Group’s continuing involvement in the derecognized bills receivable is equal to the face amounts of the transferred but unsettled bills receivable, and as of December 31, 2024 and 2023, the face amounts of these unsettled bills receivable were $620,065 thousand and $312,429 thousand, respectively. The unsettled bills receivable will be due in 6 months after December 31, 2024 and 2023. Taking into consideration the credit risk of these derecognized bills receivable, the Group estimates that the fair values of its continuing involvement are not significant.

51 -

During the years ended December 31, 2024 and 2023, the Group did not recognize any gains or losses upon the transfer of the banker’s acceptance bills. No gains or losses were recognized from the continuing involvement, both during the current year or cumulatively.

29. TRANSACTIONS WITH RELATED PARTIES

Balances, transactions and revenues and expenses among the Group have been eliminated on consolidation and are not disclosed in this note. Details of transaction between the Group and other related parties were as follows:

a. Related party name and its relationship with the Group

Related Party Name Relationship with the Group

Welkin Electronic Industrial Co., Ltd. (Pingtung Welkin) Boh Chin Investment Co., Ltd. (Boh Chin Investment) Honungxin Technology Co., Ltd. (Honungxiu Technology) Thinking Education Foundation

Related party in substance Related party in substance Related party in substance Related party in substance

b. Sales of goods

Related Party Category/Name Related party in substance- Pingtung Welkin	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 1,751	2023 $ 1,337

The sale prices and terms between the Group and its related parties were not significantly different from those of ordinary transactions.

c. Purchases of goods

Related Party Category/Name Related party in substance- Pingtung Welkin Related party in substance- Honungxin Technology	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 8,202 116 $ 8,318	2023 $ 2,341 409 $ 2,750

The purchase prices and terms between the Group and its related parties were not significantly different from those of ordinary transactions.

d. Receivables from related parties

Related Party Line Item Category/Name Accounts receivables from related parties Related party in substance Pingtung Welkin		December 31	December 31
		2024 $ 271	2023 $ 620

The payment terms between the Group and the related parties were 60 days from the end of the month, and the outstanding payment receivables from related parties were unsecured and no impairment losses were recognized.

52 -

e. Payables to related parties

Related Party Line Item Category/Name Accounts payable - related parties Related party in substance Pingtung Welkin Honungxin Technology Other payables - related parties Related party in substance Pingtung Welkin Honungxin Technology	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 1,515 - $ 1,515 $ 745 138 $ 883	2023 $ 814 6 $ 820 $ 653 704 $ 1,357

The payment terms between the Group and the related parties were 60 days from the end of the month, and the outstanding amounts due to related parties are not guaranteed.

f. Prepayments

Related Party Line Item Category/Name Prepayments for equipment Related party in substance Pingtung Welkin Honungxin Technology		December	31
		2024 $ 596 7,382 $ 7,978	2023 $ 370 8,132 $ 8,502

g. Acquisition of property, plant and equipment

For the Year Ended December 31, 2024

For the Year Ended December 31, 2024
Related Party Category/Name Related party in substance Honungxin Technology	Purchase Price
		$ 750

h. Other transactions with related parties
1) Consigned processing

Related Party Line Item Category/Name Processing expense Related party in substance Pingtung Welkin Honungxin Technology	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 492 535 $ 1,027	2023 $ 4,902 554 $ 5,456

The prices and payment terms with substantial related parties were not comparable because the Group did not have other consigned processing businesses with non-related parties. The payment

53 -

term was 60 days from the end of the month.

2) Lease arrangements

Related Party Line Item Category/Name Lease expense Related party in substance Boh Chin Investment	For	the Year Ended December 31	the Year Ended December 31
		2024 $ 480	2023 $ 480

The lease contract between the Group and related parties in substance is based on the market rental agreement under the general payment terms.

3) Donation

For the promotion of culture and education, the Company donated $1,000 thousand to Thinking Education Foundation, a related party in substance, and recognized donation expense in September 2024.

i. Remuneration of key management personnel

Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 63,588 1,098 $ 64,686	2023 $ 67,743 1,315 $ 69,058

The remuneration of directors and other members of key management is determined by the remuneration committee based on the performance of individuals and market trends.

30. ASSETS PLEDGED AS COLLATERAL FOR SECURITY

The Group provided the following assets as collateral for deposits for government grants contract and payment, tariff guarantee for imported and exported, deposits for construction contract and payment:

Notes receivable Others financial assets		December 31	December 31
		2024 $ 297,197 200,389 $ 497,586	2023 $ 204,301 95,120 $ 299,421

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Except for the estimated refund liabilities in Note 20, the Group has not yet executed commitments related to the acquisition of land use rights and the purchase of real estate, plant, and equipment, amounting to $807,651 thousand and $213,689 thousand as of December 31 ,2024 and 2023, respectively. However, there is a dispute with the supplier regarding the settlement of construction costs for the plant, and the company has entrusted a lawyer for negotiation or pre-litigation mediation. The Group has assessed that above issues will not materially impact financial or operation.

54 -

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

		Foreign			Carrying
	Currency (In				Amount (In
	Thousand)		Exchange Rate		Thousand)
December31,2024
Financial assets
Monetary items
USD	$	9,600	7.1889	(USD:CNY)	$ 314,160
USD		29,736	32.725	(USD:NTD)	973,111
CNY		180,269	4.5522	(CNY:NTD)	820,621
CNY		8,482	0.1391	(CNY:USD)	38,612
Financial liabilities
Monetary items
USD		203	7.1889	(USD:CNY)	6,643
USD		2,020	32.725	(USD:NTD)	66,105
CNY		73,895	4.5522	(CNY:NTD)	336,385
December 31, 2023
Financial assets
Monetary items
USD		18,510	7.0974	(USD:CNY)	568,350
USD		26,080	30.705	(USD:NTD)	800,786
CNY		93,468	4.3262	(CNY:NTD)	404,361
CNY		9,934	0.1409	(CNY:USD)	42,976
Financial liabilities
Monetary items
USD		413	7.0974	(USD:CNY)	12,681
USD		12,039	30.705	(USD:NTD)	369,657
CNY		4,415	4.3262	(CNY:NTD)	19,100

Refers to Note 24 (c) for the informational related to realized and unrealized net foreign exchange loss. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the Group’s entities.

33. ADDITIONAL DISCLOSURES

a. Information on significant transactions and b. investees
1) Financing provided to others: Table 1
2) Endorsement/guarantee provided: Table 2
3) Marketable securities held (excluding investment in subsidiaries): Table 3.
55 -
4) Marketable securities acquired or disposed of at cost or price of at least NT$300 million or 20% of the paid-in capital: Table 4.
5) Acquisition of individual real estate at cost of at least NT$300 million or 20% of the paid-in capital: Table 5.
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None.
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 6.
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 7.
9) Information on investees: Table 8.
10) Trading in derivative instruments: Note 7.
11) Intercompany relationships and significant intercompany transaction: Table 10.
c. Information on investments in Mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China areas: Table 9.
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses:
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year: Table 6.
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year: Table 6.
- c) The amount of property transactions and the amount of the resultant gains or losses: None.
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes: None.
- e) The highest balance, the end of year balance, the interest rates range, and total current year interest with respect to financing of funds: None.
- f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receiving of services: None.
d. Information of major shareholder: Shareholding ratio of 5 percent or greater showing the names and the number of shares and percentage of ownership held by each shareholder: Table 11.
56 -

34. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on type of goods or services delivered or provided. The Group’s reportable segments were as follows:

a. The Company: Manufacturing, processing and selling of electric devices, thermistors, varistors and wines.
b. Thinking Changzhou: Manufacturing and selling thermistors, varistors and sensors as principal business.
c. Jiangxi Thinking: Manufacturing and selling thermistors and varistors as principal business.
d. Dongguan Welkin: Manufacturing and selling thermistors, varistors, sensors and equipment as principal business.
e. Zhongshan Welkin: Manufacturing and selling thermistors, varistors and sensors as principal business.

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segment:

For the Year ended December 31,2024 Revenues from external customers Inter-segment revenue Segment revenue Segment income Interest income Other income Other gains and losses Finance costs Consolidated profit before income tax Income tax Consolidated net income December 31,2024 Total segment assets Total segment liabilities FortheYearendedDecember31,2023 Revenues from external customers Inter-segment revenue Segment revenue Segment income Interest income Other income Other gains and losses Finance costs Consolidated profit before income tax Income tax Consolidated net income December31,2023 Total segment assets Total segment liabilities	The Company $ 2,833,286 728,950 $ 3,562,236 $ 705,018 $ 4,449,060 $ 4,019,293 $ 2,795,622 377,176 $ 3,172,798 $ 692,455 $ 3,935,258 $ 3,555,643	Thinking Changzhou $ 1,723,449 1,217,294 $ 2,940,743 $ 246,436 $ 3,657,932 $ 691,276 $ 1,744,608 1,177,073 $ 2,921,681 $ 319,939 $ 3,954,236 $ 551,315	Jiangxi Thinking $ 43,844 1,081,010 $ 1,124,854 $ 211,029 $ 1,289,035 $ 141,330 $ 57,946 772,904 $ 830,850 $ 158,260 $ 1,027,982 $ 127,711	Dongguan Welkin and Zhongshan Welkin $ 2,286,528 2,705,898 $ 4,992,426 $ 557,944 $ 4,523,571 $ 1,370,267 $ 1,827,094 2,047,720 $ 3,874,814 $ 363,527 $ 3,490,855 $ 1,040,940	Others $ 632,590 931,668 $ 1,564,258 $ 88,987 $ 3,452,235 $ 334,864 $ 651,866 643,515 $ 1,295,381 $ 37,690 $ 3,315,179 $ 288,236	Adjustment and Elimination $ - (6,664,820) $ (6,664,820) $ (35,617 ) $ (1,579,304 ) $ (1,475,890 ) $ - (5,018,388) $ (5,018,388) $ 20,574 $ (2,073,681) $ (1,361,829)	Consolidated Amount $ 7,519,697 - $ 7,519,697 $ 1,773,797 139,203 104,246 71,890 (23,876) 2,065,260 532,287 $ 1,532,973 $ 15,792,529 $ 5,081,140 $ 7,077,136 - $ 7,077,136 $ 1,592,445 118,743 57,048 (28,851 ) (16,838) 1,722,547 411,388 $ 1,311,159 $ 13,649,829 $ 4,202,016

Segment profit represents the profit before tax earned by each segment without interest income, other income, other gains and finance costs. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

57 -

a. Other segment information

The Company Thinking Changzhou Jiangxi Thinking Dongguan Welkin and Zhongshan Welkin Others	Depreciation and amortization	Depreciation and amortization	Depreciation and amortization
	For the Year Ended		December 31
		2024 $ 129,278 99,261 44,303 87,195 63,208 $ 423,245	2023 $ 95,860 104,238 39,796 95,081 56,088 $ 391,063

b. Revenue from major products

The following is an analysis of the Group’s revenue from its major products.

Passive components Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 7,334,069 185,628 $ 7,519,697	2023 $ 6,749,536 327,600 $ 7,077,136

c. Geographical information

1) The Group operates in two principal geographical areas - China and Taiwan.
2) The Group’s revenue from external customers by location of operations are detailed below.

Greater China (Include Taiwan) Europe Others	Revenue from External Customers	Revenue from External Customers	Revenue from External Customers
	For the Year Ended December 31
		2024 $ 5,858,951 897,848 762,898 $ 7,519,697	2023 $ 5,472,787 974,102 630,247 $ 7,077,136

3) The location of Group’s non-current assets are detailed below

China Taiwan Vietnam		Non-current Assets	Non-current Assets
		December 31
		2024 $ 2,395,525 2,039,252 164,959 $ 4,599,736	2023 $ 2,296,432 2,027,799 104,030 $ 4,428,261

Non-current assets exclude financial instruments, deferred tax assets and net defined benefit assets.

58 -
d. Information on major customers

No single customer contributed over 10% of the Group’s consolidated operating revenue.

59 -

TABLE 1

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2024

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

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Colla	teral	Financing Limit for Each Borrower (Note 2)	Aggregate Financing Limit (Note 2)	Note
													Item	Value
0	The Company	Thinking Viet Nam	Other receivables - related parties	Yes	$ 98,550 (US$ 3,000 thousand )	$ - (US$ - thousand )	$ - ( US$ - thousand )	5	Note 1	$ -	For short -term working capital	$ -	-	$ -	$ 3,176,985	$ 4,235,980

Note 1: For short-term financing necessities.

Note 2: The aggregate financing limit shall not exceed 40% of the net assets of the Company. The financing limit for the financing amount on each individual loan shall not exceed 30% of net assets. The financing amount on each individual loan shall not exceed 100% of the net asset of the Company for inter-company loans of funds between overseas subsidiaries in which the Company holds, directly or indirectly, 100% of the voting shares.

60 -

TABLE 2

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guar antor	Endorsee/	Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 2)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China	Note
		Name	Relationship (Note 1)
0	The Company	Thinking Viet Nam	b	$ 3,176,985	$ 328,500 (US$10,000thousand)	$ 327,250 (US$10,000thousand)	$ -	$ -	3.09	$ 5,294,975	Y	N	N

Note 1: Relationship information of endorser and endorsee should be noted.

a. The companies with which it has business relations.
b. Subsidiaries in which the company directly holds more than 50% of its total outstanding common stocks.
c. Companies in which the total outstanding common stocks held by the parent company and its subsidiaries, calculated on a combined basis, exceed 50%.
d. The parent company that directly or indirectly holds more than 50% of the total outstanding common stocks through its subsidiaries.
e. Companies in same type of business and providing mutual endorsements/guarantees in favor of each other in accordance with the contractual obligations in order to fulfill the needs of the construction project.
f. Shareholders making endorsements and/or guarantees for their mutually invested company in proportion to their shareholding percentage.
Note 2: The total amount of guarantee that may be provided by the Company shall not exceed 50% of the Company’s net asset; the total amount of guarantee provided by the Company to any single entity shall not exceed 30% of the Company’s net asset stated.
61 -

TABLE 3

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2024

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2024	December 31, 2024		Note
				Number of shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Company Thinking Changzhou Thinking Yichang Jiangxi Thinking Dongguan Welkin	Share ACPA TECHNOLOGY CO., LTD. CNY financial products Structured Deposits - E.SUN Bank CNY financial products Structured Deposits - Bank Of China Fortune Profit - Fubon Bank (China) CNY financial products Time Deposit Monthly Profit - Fubon Bank (China) Fortune Profit - Fubon Bank (China) CNY financial products Structured Deposits - E.SUN Bank Hui Ji XinFu Structured Deposits- CTBC Bank Monthly Profit - Fubon Bank (China)	- - - - - - - - -	Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	2,619,499 - - - - - - - -	$ 27,903 CNY 10,033 thousand CNY 70,424 thousand CNY 30,247 thousand CNY 10,191 thousand CNY 18,542 thousand CNY 80,790 thousand CNY 10,348 thousand CNY 20,402 thousand	11 - - - - - - - -	$ 27,903 CNY 10,033 thousand CNY 70,424 thousand CNY 30,247 thousand CNY 10,191 thousand CNY 18,542 thousand CNY 80,790 thousand CNY 10,348 thousand CNY 20,402 thousand

62 -

TABLE 4

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2024

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

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginn	ing Balance	Ac	quisition		D	isposal		Endin	g Balance
					Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Carrying Amount	Gain/Loss on Disposal	Number of shares	Amount (Note)
Thinking Changzhou Thinking Yichang Jiangxi Thinking Dongguan Welkin	CNY financial products Structured Deposits Structured Deposits CNY financial products Time Deposit Monthly Profit Structured Deposits CNY financial products Time Deposit Monthly Profit CNY financial products Point Gold Series Structured Deposit Structured Deposits Monthly Profit	Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	Cathay Bank E.SUN Bank Fubon Bank (China) Bank of China Fubon Bank (China) China Merchants Bank E.SUN Bank Fubon Bank (China)	- - - - - - - -	- - - - - - - -	CNY - thousand CNY - thousand CNY 40,000 thousand CNY 60,000 thousand CNY 50,200 thousand CNY 10,000 thousand CNY 70,350 thousand CNY - thousand	- - - - - - - -	CNY 110,000 thousand CNY 80,000 thousand CNY 20,000 thousand CNY 90,000 thousand CNY 51,000 thousand CNY 80,000 thousand CNY 150,190 thousand CNY 80,000 thousand	- - - - - - - -	CNY 110,730 thousand CNY 70,593 thousand CNY 61,175 thousand CNY 80,937 thousand CNY 92,408 thousand CNY 90,511 thousand CNY 141,625 thousand CNY 60,524 thousand	CNY 110,000 thousand CNY 70,000 thousand CNY 60,000 thousand CNY 80,000 thousand CNY 91,200 thousand CNY 90,000 thousand CNY 140,350 thousand CNY 60,000 thousand	CNY 730 thousand CNY 593 thousand CNY 1,175 thousand CNY 937 thousand CNY 1,208 thousand CNY 511 thousand CNY 1,275 thousand CNY 524 thousand	- - - - - - - -	CNY - thousand CNY 10,033 thousand CNY - thousand CNY 70,424 thousand CNY 10,191 thousand CNY - thousand CNY 80,790 thousand CNY 20,402 thousand

Note : This includes the unrealized gains or losses of financial assets measured at fair value through profit or loss.

63 -

TABLE 5

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

ACQUISITION OF INDIVIDUAL REAL ESTATE AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2024

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

Buyer	Property	Event Date	Transaction Amount	Payment Status	Counterparty	Relationship	I	nformation on Pre If Counterparty I	vious Title Transfe s A Related Party	r	Pricing Reference	Purpose of Acquisition	Other Terms
							Property Owner	Relationship	Transaction Date	Amount
Zhongshan Welkin	Second-phase plant	2024.12.10	CNY133,600 thousand	-	Guangdong Jian-an Changsheng Holding Group Co., Ltd	-	N/A	N/A	N/A	N/A	Tender	For operation use

64 -

TABLE 6

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2024

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

Buyer	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Receivable) Payable	Notes/Accounts (Receivable) Payable	Note
			Purchases/Sales	Amount	% of Total	Payment Terms	Unit Price	Payment Term	Ending Balance (Note)	% of Total
The Company Thinking Changzhou Thinking Yichang Jiangxi Thinking Dongguan Welkin	Thinking Changzhou Thinking Changzhou Thinking Yichang Dongguan Welkin Zhongshan Welkin Thinking Yichang Jiangxi Thinking Dongguan Welkin Jiangxi Thinking Dongguan Welkin Dongguan Welkin Zhongshan Welkin Zhongshan Welkin	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate Associate Associate Associate Associate Associate Subsidiary	Sales Purchases Purchases Purchases Sales Purchases Purchases Sales Purchases Sales Sales Sales Purchases	$ (200,626 ) 865,687 104,352 1,119,749 (481,006 ) 324,806 208,435 (121,571 ) 299,762 (464,899 ) (310,904 ) (261,909 ) 1,433,903	(5 ) 38 5 49 (12 ) 18 12 (4 ) 38 (34 ) (28 ) (23 ) 52	60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month	$ - - - - - - - - - - - - -	- - - - - - - - - - - - -	$ (89,893 ) 171,571 12,899 203,719 (112,203 ) 71,176 57,134 (30,119 ) 65,822 (107,236 ) (63,958 ) (50,212 ) 239,286	(10 ) 22 2 26 (11 ) 13 11 (3 ) 27 (24 ) (25 ) (19 ) 23

Note: All intercompany transactions have been eliminated upon consolidation.

65 -

TABLE 7

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2024

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

Company Name	Related Party	Relationship	Ending Balance (Note)	Turnover Rate		Overdue	Amounts Received in Subsequent Period	Allowance for Doubtful Accounts
					Amount	Actions Taken
The Company Thinking Changzhou Thinking Yichang Dongguan Welkin Zhongshan Welkin	Zhongshan Welkin The Company Dongguan Welkin The Company Dongguan Welkin	Subsidiary Parent company Associate Parent company Parent company	$ 112,203 171,571 107,236 203,719 239,286	5.76 5.02 5.40 5.93 7.20	$ - - - - -	- - - - -	$ 44,819 84,321 52,046 91,375 140,998	$ - - - - -

Note: All intercompany transactions have been eliminated upon consolidation.

66 -

TABLE 8

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

INFORMATION OF INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Inves	tment Amount	Balan	ce as of Dece	mber 31, 2024	Net Income (Loss) of the Investee	Share of profit (Loss)	Note
				December 31, 2024	December 31, 2023	Number of shares	Percentage of ownership (%)	Carrying Amount
The Company Thinking Holding	Yenyo Greenish Thinking Holding Thinking USA Thinking Viet Nam Thinking International Thinking HK View Full Samoa Thinking Samoa	Yilan British Virgin Island Cayman USA Vietnam Mauritius Hong Kong Samoa Samoa	Processing, sales and manufacturing of diodes Investment holding and international trading Investment holding and international trading Electronic product design and marketing Manufacturing and selling thermistors, varistors and sensors Investment holding and international trading Investment holding and international trading Investment holding and international trading Investment holding and international trading	$ 304,410 242,300 ( US$ 7,375 thousand ) 792,506 ( US$ 25,476 thousand ) 30,715 ( US$ 1,000 thousand ) 149,313 ( US$ 4,800 thousand ) 205,781 ( US$ 6,375 thousand ) 311,753 ( US$ 10,040 thousand ) 155,108 ( US$ 5,055 thousand ) 112,518 ( US$ 3,864 thousand )	$ 304,410 242,300 ( US$ 7,375 thousand ) 792,506 ( US$ 25,476 thousand ) 30,715 ( US$ 1,000 thousand ) 149,313 ( US$ 4,800 thousand ) 205,781 ( US$ 6,375 thousand ) 311,109 ( US$ 10,020 thousand ) 155,108 ( US$ 5,055 thousand ) 112,518 ( US$ 3,864 thousand )	25,732,508 7,374,997 25,476,302 1,000,000 - 6,375,000 10,040,000 5,055,000 3,864,354	63.76 100 100 100 100 100 100 100 100	$ 208,674 3,112,322 4,826,241 995 143,283 1,426,553 1,148,316 2,049,942 276,795	$ (48,475 ) 265,246 783,082 (10,949) (755) 170,995 196,224 366,707 49,426	$ (30,908 ) 260,149 752,821 (10,949 ) (755 ) 170,995 196,224 366,707 49,426	Note 1 Note 1 Note 1

Note 1: The share of profits or losses of investee includes the effect of unrealized gross profit on intercompany transaction.

Note 2: Information of investees which located in mainland China, refer to Table 9.

67 -

TABLE 9

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2024	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2024	Remittanc	e of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2024	Net Income (Loss)of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 6)	Carrying Amount as of December 31, 2024 (Note 6)	Accumulated Repatriation of Investment Income as of December 31, 2024	Note
							Outward	Inward
Thinking Changzhou Thinking Yichang Jiangxi Thinking Dongguan Welkin Zhongshan Welkin	Manufacturing and selling thermistors, varistors and sensors Manufacturing and selling thermistors, varistors and sensors Manufacturing and selling thermistors and varistors Manufacturing and selling thermistors, varistors, sensors and equipment Manufacturing and selling thermistors, varistors and sensors		$ 1,008,050 (US$ 31,260 thousand ) 203,439 ( US$ 6,300 thousand ) 310,330 ( US$ 10,000 thousand ) 868,640 ( CNY$194,782 thousand) 658,145 ( CNY$150,000 thousand)	Note 1 Note 2 Note 3 Note 4 Note 5	$ 452,725 203,439 310,330 265,306 -		$ - - - - -	$ - - - - -	$ 452,725 203,439 310,330 265,306 -	$ 435,953 171,105 196,482 564,515 129,956	100 100 100 100 100	$ 426,263 171,105 196,482 564,515 129,956	$ 3,775,325 1,425,362 1,147,705 3,161,840 853,938	$ 1,608,656 ( US$ 52,277 thousand ) - - - -	Notes 9 and 10 Note 10 Note 10 Note 10 Note 10

Accumulated Outward Remi Mainland China as of D	ttance for Investment in ecember 31, 2024	Inv	estment Amounts Authorized by the I Commission, MOEA		nvestment	Upper Limit on the Stipulated by the Inves		Amount of Investments tment Commission, MOEA
$1,231,800			$1,148,451			$6,353,970 (Note 8)
(US$ 38,774 thousand)			(US$ 35,094 thousand) (Note 7)

Note 1: Indirectly investment in mainland China through Greenish which was registered in the third area. The Company increased the amount of indirect investments in mainland China through Greenish since 2003.

Note 2: Indirectly investment in mainland China through companies registered in the third area (Thinking International).

Note 3: Indirectly investment in mainland China through companies registered in the third area (Thinking HK).
Note 4: Indirectly investment in mainland China through companies registered in the third area, View Full Samoa and Thinking Samoa and the subsidiary, Thinking Changzhou.
Note 5: Indirectly investment in mainland China through subsidiary (Dongguan Welkin).
Note 6: The financial statements have been audited by the ultimate parent company’s certified public accountant.
Note 7: The amount of US$35,094 thousand was the difference between the MOEA approved investment amount of US$38,774 thousand and the amount of accumulated outflow of investment from Taiwan of US$3,680 thousand. Such difference was the result of deducting the capital increase of US$32,024 thousand from the subsidiary in mainland China, deductions of US$176 thousand for remittance of liquidation proceeds to third parties not yet approved. The added surplus of the subsidiary in mainland China, which was approximately US$35,831 thousand, was repatriated, and the difference between the exchange rate of the remitted funds and US$49 thousand. The balance as of December 31, 2024 was based on the exchange rate of US$1=NT$32.725.
Note 8: The upper limit on investment in mainland China is determined by 60% of the Company’s consolidated net worth.
Note 9: The Company recognized share of profits of Thinking Changzhou was $202,018 thousand, and Greenish recognized share of profits of Thinking Changzhou was $224,245 thousand. Total amount of share of profits was $426,263 thousand. The difference between total amount of share of profits and the net income of Thinking Changzhou resulted from unrealized gross profit on intercompany transactions.
Note 10: All intercompany transactions have been eliminated upon consolidation.
68 -

TABLE 10

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

INTERCOMPANY BUSINESS RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Company Name	Counterparty	Nature of Relationship (Note 1)		Intercompany Transactions	Intercompany Transactions
				Financial Statement Item	Amount	Terms	Percentage of Consolidated Total Sales or Total Assets
0 1	The Company Thinking Changzhou	Thinking Changzhou Thinking Changzhou Thinking Changzhou Thinking Changzhou Thinking Yichang Thinking Yichang Thinking Yichang Thinking Yichang Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Yenyo Zhongshan Welkin Zhongshan Welkin Thinking Yichang Thinking Yichang Thinking Yichang Thinking Yichang Jiangxi Thinking Jiangxi Thinking Jiangxi Thinking Jiangxi Thinking Jiangxi Thinking Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Zhongshan Welkin Zhongshan Welkin Zhongshan Welkin ZhongshanWelkin	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	Sales Purchases Accounts receivable Accounts payable Sales Purchases Accounts receivable Accounts payable Sales Purchases Accounts receivable Accounts payable Other accounts payable Purchases Sales Accounts receivable Sales Purchases Accounts receivable Accounts payable Sales Purchases Accounts receivable Other accounts receivable Accounts payable Sales Purchases Accounts receivable Accounts payable Other accounts payable Prepayments Sales Purchases Accounts receivable Accounts payable	$ 200,626 865,687 89,893 171,571 8,248 104,352 3,024 12,899 39,067 1,119,749 16,666 203,719 1,419 987 481,006 112,203 98,956 324,806 20,613 71,176 95,587 208,435 31,072 1,821 57,134 121,571 66,170 30,119 12,697 5,455 1,438 35,493 12,717 6,522 4,558	Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month T/T days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 daysfromthe end ofthemonth	3 12 1 1 - 1 - - 1 15 - 1 - - 6 1 1 4 - - 1 3 - - - 2 1 - - - - - - - -

(Continued)

69 -

No.	Company Name	Counterparty	Nature of Relationship (Note)		Intercompany Transactions	Intercompany Transactions
				Financial Statement Item	Amount	Terms	Percentage of Consolidated Total Sales or Total Assets
2 3 4	Thinking Yichang Jiangxi Thinking Dongguan Welkin	Jiangxi Thinking Jiangxi Thinking Jiangxi Thinking Jiangxi Thinking Jiangxi Thinking Jiangxi Thinking Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Zhongshan Welkin Zhongshan Welkin Zhongshan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Dongguan Welkin Zhongshan Welkin Zhongshan Welkin Zhongshan Welkin Zhongshan Welkin Zhongshan Welkin Zhongshan Welkin Zhongshan Welkin	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1	Sales Purchases Accounts receivable Other accounts receivable Accounts payable Other accounts payable Sales Purchases Accounts receivable Accounts payable Other accounts payable Sales Purchases Accounts receivable Sales Purchases Accounts receivable Accounts payable Other accounts payable Sales Purchases Accounts receivable Sales Purchase Accounts receivable Accounts payable	$ 16,800 299,762 3,143 2,595 65,822 2,086 464,899 29,790 107,236 1,099 10,294 19,691 1,355 5,023 310,904 15,232 63,958 684 3,894 261,909 2,332 50,212 24,650 1,433,903 8,230 239,286	Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month Pricing by cost-plus practice Pricing by cost-plus practice 60 days from the end of the month 60 days from the end of the month	- 4 - - - - 6 - 1 - - - - - 4 - - - - 3 - - - 19 - 2

(Concluded)

Note : Transactions are categorized as follows:

1) Transactions from parent company to subsidiaries.
2) Transactions between subsidiaries.
70 -

TABLE 11

THINKING ELECTRONIC INDUSTRIAL CO., LTD

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2024

Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Boh Chin Investment Co., Ltd. Yih Chin Investment Co., Ltd.	27,178,247 16,271,153	21.21 12.70

Note: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration by the Company as of the last business day for the current quarter. The share capital in the parent company only financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

71 -

Balance at January 1 Recognized for the year Exchange differences on translation of the financial statements of foreign operations Income tax benefit (expenses) relating to exchange differences arising on translation of foreign operations Balance at December 31 2) Unrealized valuation gain (loss) on financial assets at FVTOCI Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Balance at December 31	For the Year Ended	For the Year Ended	December 31
	2024 2023 $ (249,976) $ (132,408) 484,189 (146,960) (96,838) 29,392 $ 137,375 $ (249,976) For the Year Ended December 31
		2024 $ (6,260) 221 $ (6,039)	2023 $ (8,219) 1,959 $ (6,260)

AI assistant

THINKING — Annual Report 2024

52076_rns_2024-11-12_186281a7-3168-48aa-b578-e94be86a9c22.pdf

Thinking Electronic Industrial Company Limited and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Authenticity of sales revenue

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

THINKING ELECTRONIC INDUSTRIAL CO., LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

b. Basis of preparation

k. Financial instruments

1) Financial assets

l. Revenue recognition

m. Leases

n. Borrowing costs

p. Employee benefits

1) Short-term employee benefits

2) Retirement benefits

q. Taxation

1) Current tax

2) Deferred tax

3) Current and deferred taxes

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

a. Estimated impairment of financial assets

b. Write-down of inventories

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT AMORTIZED COST

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

10. NOTES AND ACCOUNTS RECEIVABLE

December 31, 2024

December 31, 2023

11. INVENTORIES

12. OTHER FINANCIAL ASSETS

13. SUBSIDIARIES

14. PROPERTY, PLANT, AND EQUIPMENT

a. Changes in costs and accumulated depreciation

15. LEASE ARRANGEMENTS

b. Lease liabilities

1) Land

16. INVESTMENT PROPERTIES

17. BORROWINGS

a. Short-term borrowings

18. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

19. OTHER PAYABLES

20. REFUND LIABILITIES

21. RETIREMENT BENEFIT PLANS

b. Defined benefit plans

1) Investment risk

2) Interest risk

3) Salary risk

22. EQUITY

a. Ordinary shares

b. Capital surplus

c. Retained earnings and dividend policy

e. Non-controlling interests

23. OPERATING REVENUE

THINKING Annual Report 2024