THINKING — Annual Report 2024

Nov 12, 2024

Thinking Electronic Industrial Company Limited

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

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INDEPENDENT AUDITORS’ REPORT

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

Opinion

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

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2024 and 2023, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

The key audit matter of the Company’s financial statements for the year ended December 31, 2024 is described as follows:

Authenticity of sales revenue

The Company’s operating revenue for the year ended December 31, 2024 was $3,562,236 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 (k) to the financial statements.

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

1. We obtained an understanding of and tested the operating effectiveness of the internal controls relevant to the revenue recognition of the Company.

2. 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.

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

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

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

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

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

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

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

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

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

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

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 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 parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally applied in the Republic of China.

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

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

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

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Notes receivable (Note 9) Accounts receivable, net (Notes 4 and 9) Accounts receivables from related parties (Notes 9 and 27) Other receivables Other receivables from related parties (Note 27) Current tax assets (Notes 4 and 23) Inventories (Notes 4 and 10) Other financial assets - current (Notes 11 and 28) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8) Investments accounted for using the equity method (Notes 4 and 12) Property, plant and equipment (Notes 4, 13, 27 and 29) Right-of-use assets (Notes 4 and 14) Computer software, net (Note 4) Deferred tax assets (Notes 4 and 23) Prepayments for equipment (Note 27) Net defined benefit assets - non-current (Notes 4 and 19) Other financial assets - non-current (Notes 11 and 28) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 4 and 15) Financial liabilities at fair value through profit or loss- current (Notes 4,7 and 26) Accounts payable (Note 16) Accounts payable to related parties (Notes 16 and 27) Other payables (Note 17) Other payables to related parties (Note 27) Current tax liabilities (Notes 4 and 23) Lease liabilities - current (Notes 4 and 14) Current portion of long-term borrowings (Notes 4 and 15) Refund liabilities - current (Notes 4 and 18) Other current liabilities (Note 4) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 4 and 15) Deferred tax liabilities (Notes 4 and 23) Lease liabilities - non-current (Notes 4 and 14) Long-term deferred revenue (Note 4) Guarantee deposits received Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 4, 12 and 20) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		December 31, 2024		December 31, 2023
		Amount % $ 1,063,377 7 2,315 - 782,011 6 222,057 2 2,415 - - - 3,075 - 337,081 2 38,526 - 34,408 - 2,485,265 17 27,903 - 10,160,183 70 1,698,690 12 42,377 - 24,090 - 31,036 - 75,931 1 42,479 - 3,321 - 17,968 - 12,123,978 83 $ 14,609,243 100 $ 400,000 3 4,212 - 32,195 - 390,047 3 365,947 3 2,238 - 125,061 1 1,851 - 178,612 1 60,560 - 33,808 - 1,594,531 11 680,030 5 1,682,962 11 44,140 - 17,368 - 262 - 2,424,762 16 4,019,293 27 1,281,127 9 352,907 2 1,584,900 11 256,236 2 6,983,444 48 8,824,580 61 131,336 1 10,589,950 73 $ 14,609,243 100		Amount % $ 712,390 6 2,288 - 671,220 5 171,023 2 3,019 - 54 - 4,086 - 279,573 2 28,800 - 36,439 - 1,908,892 15 27,682 - 8,930,161 70 1,709,060 13 49,065 - 27,338 - 104,462 1 55,018 1 32,966 - 2,807 - 17,968 - 10,956,527 85 $ 12,865,419 100 $ 100,000 1 629 - 34,497 - 364,372 3 356,427 3 1,418 - 12,712 - 1,508 - 131,589 1 76,342 1 12,101 - 1,091,595 9 895,659 7 1,498,435 12 50,727 - 19,107 - 120 - 2,464,048 19 3,555,643 28 1,281,127 10 352,907 3 1,454,089 11 140,627 1 6,337,262 49 7,931,978 61 (256,236) (2) 9,309,776 72 $ 12,865,419 100

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

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

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, 21 and 27) OPERATING COSTS (Notes 10, 22 and 27) GROSS PROFIT UNREALIZED GAINS FROM SALES (Notes 4 and 27) REALIZED GAINS FROM SALES (Note 4) REALIZED GROSS PROFIT OPERATING EXPENSES (Notes 4, 9, 22 and 27) 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 12, 22 and 27) Interest income Other income Other gains and losses Finance costs Share of profit of subsidiaries Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 23) NET PROFIT FOR THE YEAR		2024 Amount % $ 3,562,236 100 2,309,633 65 1,252,603 35 (5,165) - 1,180 - 1,248,618 35 158,836 4 198,074 6 188,210 5 (1,520) - 543,600 15 705,018 20 37,276 1 5,764 - 28,280 1 (20,285) (1) 1,172,376 33 1,223,411 34 1,928,429 54 377,889 10 1,550,540 44		2023
				Amount % $ 3,172,798 100 2,022,702 64 1,150,096 36 (1,180) - 26,915 1 1,175,831 37 133,433 4 199,956 6 145,843 5 4,144 - 483,376 15 692,455 22 16,117 1 4,015 - (15,456) - (11,110) - 937,247 30 930,813 31 1,623,268 53 315,465 10 1,307,803 43

(Continued)

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

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

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 4, 20 and 23) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income of subsidiaries accounted for using the equity method Income tax related to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Share of the other comprehensive income of subsidiaries accounted for using the equity method 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 EARNINGS PER SHARE (Note 24) Basic Diluted			2024 Amount % 8,181 - 221 - 1,703 - (1,636) - 8,469 - 576,918 16 (92,729) (2) (96,838) (3) 387,351 11 395,820 11 1,946,360 55 $ 12.10 $ 12.05		2023
		$			Amount % $ (299) - 1,959 - 551 - 60 - 2,271 - (59,119) (2) (87,841) (3) 29,392 1 (117,568) (4) (115,297) (4) $ 1,192,506 39 $ 10.21 $ 10.17
		$

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

(Concluded)

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

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

BALANCE, JANUARY 1, 2023 Appropriation of 2022 earnings (Note 20) Legal reserve Cash dividends distributed by the Company Reversal of special reserve Net profit for the year ended December 31, 2023 Other comprehensive income (loss) for the year ended December 31, 2023 Total comprehensive income (loss) for the year ended December 31, 2023 BALANCE AT DECEMBER 31, 2023 Appropriation of 2023 earnings (Note 20) Legal reserve Special reserve Cash dividends distributed by the Company Net profit for the year ended December 31, 2024 Other comprehensive income (loss) for the year ended December 31, 2024 Total comprehensive income (loss) for the year ended December 31, 2024 BALANCE AT DECEMBER 31, 2024	Share Capital 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	Total Equity $ 8,809,079 - (691,809) - (691,809) 1,307,803 (115,297) 1,192,506 9,309,776 - - (666,186) (666,186) 1,550,540 395,820 1,946,360 $ 10,589,950
					Exchange Differences on Translation of Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (132,408) $ (8,219) - - - - - - - - - - (117,568) 1,959 (117,568) 1,959 (249,976) (6,260) - - - - - - - - - - 387,351 221 387,351 221 $ 137,375 $ (6,039)
			Legal Reserve Special Reserve Unappropriated Earnings Total Retained Earnings $ 1,316,508 $ 222,378 $ 5,776,786 $ 7,315,672 137,581 - (137,581) - - - (691,809) (691,809) - (81,751) 81,751 - 137,581 (81,751) (747,639) (691,809) - - 1,307,803 1,307,803 - - 312 312 - - 1,308,115 1,308,115 1,454,089 140,627 6,337,262 7,931,978 130,811 - (130,811) - - 115,609 (115,609) - - - (666,186) (666,186) 130,811 115,609 (912,606) (666,186) - - 1,550,540 1,550,540 - - 8,248 8,248 - - 1,558,788 1,558,788 $ 1,584,900 $ 256,236 $ 6,983,444 $ 8,824,580

The accompanying notes are an integral company only financial statements.

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

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

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss (gain) Net loss on financial assets or liabilities at fair value through profit or loss Finance costs Interest income Dividend income Share of profit of subsidiaries Gain on disposal of property, plant and equipment Reversal of write-down of inventories Unrealized gain on transactions with subsidiaries Realized gain on transactions with subsidiaries Amortization of grants income 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 Other receivables from related parties Inventories Prepayments Other current assets Net defined benefit assets 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 investment accounted for using equity method Acquisition of property, plant and equipment	2024 $ 1,928,429 117,868 11,410 (1,520) 51,322 20,285 (37,276) - (1,172,376) (12) (27,236) 5,165 (1,180) (2,084) (47,739) (27) (109,271) (51,034) 332 54 (30,272) - 2,031 (1,332) (2,302) 25,675 41,706 257 19,401 (10,922) 729,352 37,548 (15,742) (105,050) 646,108 - (157,867)	2023 $ 1,623,268 81,802 14,058 4,144 33,242 11,110 (16,117) (763) (937,247) (305) (26,045) 1,180 (26,915) (746) (32,703) 269 158,188 8,770 (138) 1,004 96,620 (17,968) 16,742 (19,751) 7,523 (14,605) 14,845 (3,674) 9,028 (8,354) 976,462 19,058 (6,748) (257,868) 730,904 (158,581) (438,029) (Continued)

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

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

Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (Increase) in other financial assets Dividends received Net cash generate from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits received Repayments of the principal portion of lease Cash dividends paid Net cash used in financing activities 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 $ 12 (8,162) (10,240) 424,261 248,004 2,085,140 (1,785,140) 43,700 (219,119) 142 (1,662) (666,186) (543,125) 350,987 712,390 $ 1,063,377	2023 $ 305 (12,381) 122,408 763 (485,515) 325,000 (903,000) 141,830 (156,288) - (1,465) (691,809) (1,285,732) (1,040,343) 1,752,733 $ 712,390

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

(Concluded)

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THINKING ELECTRONIC INDUSTRIAL CO., LTD.

NOTES TO PARENT COMPANY ONLY 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 parent company only financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the 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 material impact on the Company’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 Company 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 transaction would take place at the measurement date between market participants under prevailing

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economic conditions. In this situation, the Company 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.

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

New, Amended and Revised Standards and Interpretations 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 parent company only financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

• a. Statement of Compliance

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

• b. Basis of preparation

The parent company only 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.

The subsidiaries are incorporated in the parent company only financial statements under the equity method. To make net profit for the year, other comprehensive income and equity in the parent company only financial statements equal to those attributed to owners of the Company on consolidated financial statements, the effect of the differences between the parent company only basis and consolidated basis are adjusted in the investments accounted for using the equity method, the related share of the profit or loss, the related share of other comprehensive income of subsidiaries and related equity.

• 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 parent company only financial statements are authorized for issue; and

• 3) Liabilities for which the Company 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. Foreign currencies

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

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

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For the purposes of presenting the parent company only 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.

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 are reclassified to profit or loss.

• e. 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.

• f. Investments accounted for using the equity method

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

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

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

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. Differences between the carrying amounts of the investment and the fair value of the consideration paid or received are directly recognized in equity.

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

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

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a

• 13 -

subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

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

• 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.

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. 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.

• i. Impairment of property, plant and equipment, right-of-use asset and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset 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 Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to individual

• 14 -

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 corresponding the 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.

• j. Financial instruments

Financial assets and financial liabilities are recognized when the Company 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, 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 26.

• ii Financial assets at amortized cost

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

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

• 15 -

• 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;

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

The Company always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Company 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 Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

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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 Company considers the following situations as indication that a financial asset is in default (without taking into account any collateral held by the Company):

• i Internal or external information shows that the debtor is unlikely to pay its creditors.

• ii When a financial asset is more than 180 days past due unless the Company 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 Company 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 26.

• 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 Company 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.

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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.

k. Revenue recognition

The Company 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 Company 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.

l. Leases

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

For a contract that contains a lease component and non-lease components, the Company 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 Company 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 Company 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.

• 18 -

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, the 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 Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the parent company only balance sheets.

m. 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.

• n. Government grants

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

Government grants related to income are recognized in other income on a systematic basis over the period in which the Company recognized as expense the related cost that the grants intend to compensate. Specifically, government grants whose primary condition is that the Company 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 Company 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.

• o. 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.

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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.

Net defined benefit assets represent the actual surplus in the Company’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.

p. Taxation

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

1) Current tax

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

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

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary 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 Company 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.

• 20 -

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 Company 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.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’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 Company 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 Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’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 9. 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.

• 21 -

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 $ 788 74 1,062,515 - $ 1,063,377 -	2023 $ 575 74 349,263 362,478 $ 712,390 0.855-5.7

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

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial liabilities at FVTPL-current Financial liabilities mandatorily classified as at FVTPL Derivative instruments (non-designated hedges) Foreign exchange forward contracts		December	31
		2024 $ 4,212	2023 $ 629

At the end of the year, outstanding foreign exchange forward 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 Company entered into foreign exchange forward 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 22.

• 22 -

8. 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.

9. NOTES AND ACCOUNTS RECEIVABLE

Notes receivable At amortized cost Gross carrying amount - operating Accounts receivable - non-related parties At amortized cost Gross carrying amount - operating Less: Allowance for impairment loss Accounts receivable - related parties At amortized cost Gross carrying amount - operating (Note 27)		December 31	December 31
		2024 $ 2,315 $ 786,321 4,310 $ 782,011 $ 222,057	2023 $ 2,288 $ 677,074 5,854 $ 671,220 $ 171,023

The Company’s notes receivable and accounts receivable have been measured by amortized cost. Refer to Note 26 for information related to credit management policy.

The Company 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 Company 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 Company 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.

The following table details the loss allowance of accounts receivable (including related parties) based on the Company’s provision matrix:

• 23 -

December 31, 2024

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost December 31, 2023 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	Not Past Due 0%-0.05% $ 974,580 (389) $ 974,191 Not Past Due 0%-0.05% $ 821,300 (362) $ 820,938	1 to 30 Days Pass Due 0.5% $ 15,729 (79) $ 15,650 1 to 30 Days Pass Due 0.5% $ 1,567 (7) $ 1,560	31 to 60 Days Past Due 1% $ 13,051 (131) $ 12,920 31 to 60 Days Past Due 1% $ 18,044 (180) $ 17,864	61 to 90 Days Pass Due 30% $ 1,102 (331) $ 771 61 to 90 Days Pass Due 30% $ 1,947 (584) $ 1,363	91 to 180 Days Pass Due 50% $ 1,073 (537) $ 536 91 to 180 Days Pass Due 50% $ 1,037 (519) $ 518	Over 180 Days Pass Due 100% $ 2,843 (2,843) $ - Over 180 Days Pass Due 100% $ 4,202 (4,202) $ -	Total $ 1,008,378 (4,310) $ 1,004,068 Total $ 848,097 (5,854) $ 842,243

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 Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 5,854 (1,520) (24) $ 4,310	2023 $ 15,523 4,144 (13,813) $ 5,854

10. INVENTORIES

Finished goods Semi-finished Work-in-process Raw materials Supplies Inventory in transit		December 31	December 31
		2024 $ 201,613 19,782 70,130 34,771 6,612 4,173 $ 337,081	2023 $ 152,028 23,121 63,657 29,959 4,500 6,308 $ 279,573

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:

Cost of goods sold	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 2,309,633	2023 $ 2,022,702

(Continued)

• 24 -

Loss of inventory scrapped Inventory write-downs (reversed) Unallocated production overhead	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 12,672 (39,908) 7,000 $ (20,236)	2023 $ 11,982 (38,027) 4,134 $ (21,911) (Concluded)

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

11. OTHER FINANCIAL ASSETS

Pledged demand deposits Pledged time deposits Refundable deposits Current Non-current The annual interest rate of pledge time deposits (%)		December	31
		2024 $ 4,866 33,660 3,321 $ 41,847 $ 38,526 3,321 $ 41,847 0.67	2023 $ - 28,800 2,807 $ 31,607 $ 28,800 2,807 $ 31,607 1.32

For information on other financial assets pledged, refer to Note 28.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries

Unlisted company Yenyo Technology Co., Ltd. (Yenyo) Greenish Co., Ltd. (Greenish) Thinking (Changzhou) Electronic Co., Ltd. (Thinking Changzhou) Thinking Holding (Cayman) Co., Ltd. (Thinking Holding) Thinking Electronic USA, Inc. (Thinking USA) Thinking (Viet Nam) Electronic Co., Ltd. (Thinking Viet Nam)		December 31	December 31
		2024 $ 208,674 3,112,322 1,868,668 4,826,241 995 143,283 $ 10,160,183	2023 $ 237,878 2,691,574 1,987,680 3,860,398 11,426 141,205 $ 8,930,161

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At the end of the reporting period, the percentages of owners’ voting rights in subsidiaries held by the Company were as follows:

Yenyo Greenish Thinking Changzhou Thinking Holding (Note 1) Thinking USA Thinking Viet Nam (Note 2)	Proportion of Ownership and Voting Rights
	December 31
	2024 2023 63.76% 63.76% 100.00% 100.00% 47.39% 47.39% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

• Note 1: In order to cope with the working capital demands, the Company invested Thinking Holding US$0.3 million and, through its subsidiary Thinking International, registered Thinking Yichang in mainland China.

• Note 2: 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 was US$27 million. As of December 31, 2024, the Company had invested US$4.8 million in the subsidiary.

The investments in subsidiaries accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2024 and 2023 were recognized based on the subsidiaries’ financial statements which have been audited.

13. PROPERTY, PLANT, AND EQUIPMENT

• a. Changes in cost and accumulated depreciation:

For the Year ended December 31, 2024

Cost Balance at January 1, 2024 Additions Disposals Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Depreciation expenses Disposals Balance at December 31, 2024 Carrying amount at December 31, 2024	Land $ 144,685 - - $ 144,685 $ - - - $ - $ 144,685	Buildings $ 210,271 614,185 - $ 824,456 $ 99,518 12,358 - $ 111,876 $ 712,580	Machinery and Equipment Leasehold Improvements $ 843,396 $ 1,514 74,019 - (5,634) - $ 911,781 $ 1,514 $ 534,919 $ 1,500 69,661 14 (5,634) - $ 598,946 $ 1,514 $ 312,835 $ -	Others Construction in Progress and Equipment to be Inspected $ 220,764 $ 1,120,898 472,860 (1,055,414 ) (730) - $ 692,894 $ 65,484 $ 196,531 $ - 33,987 - (730) - $ 229,788 $ - $ 463,106 $ 65,484	Total $ 2,541,528 105,650 (6,364) $ 2,640,814 $ 832,468 116,020 (6,364) $ 942,124 $ 1,698,690

• 26 -

For the Year ended December 31, 2023

Cost Balance at January 1, 2023 Additions Disposals Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Depreciation expenses Disposals Balance at December 31, 2023 Carrying amount at December 31, 2023	Land $ 144,685 - - $ 144,685 $ - - - $ - $ 144,685	Buildings $ 210,271 - - $ 210,271 $ 94,207 5,311 - $ 99,518 $ 110,753	Machinery and Equipment Leasehold Improvements $ 782,280 $ 1,514 61,837 - (721) - $ 843,396 $ 1,514 $ 471,129 $ 1,474 64,511 26 (721) - $ 534,919 $ 1,500 $ 308,477 $ 14	Others Construction in Progress and Equipment to be Inspected $ 211,705 $ 772,174 10,041 348,724 (982) - $ 220,764 $ 1,120,898 $ 186,988 $ - 10,525 - (982) - $ 196,531 $ - $ 24,233 $ 1,120,898	Total $ 2,122,629 420,602 (1,703) $ 2,541,528 $ 753,798 80,373 (1,703) $ 832,468 $ 1,709,060

A reconciliation of the above-mentioned increase in property, plant and equipment and the amount paid in the cash flow statement 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) Increase in payables for equipment to related parties (in other payables to related parties) Increase 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 $ 105,650 32,125 (563) 20,913 (258) $ 157,867	2023 $ 420,602 13,812 (1,093) 5,292 (584) $ 438,029

• 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 60 years Improvement engineering 60 years Machinery and equipment 8 years Leasehold improvements 10 years Others 5-10 years

• c. As of December 31, 2024 and 2023, the Company has not provided property, plant and equipment as guarantee.

• 27 -

14. 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 2023 $ 41,477 $ 49,065 900 - $ 42,377 $ 49,065 **For the Year Ended December 31 **
		2024 $ 2,239 $ 1,760 346 $ 2,106	2023 $ - $ 2,013 - $ 2,013

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

b. Lease liabilities

Carrying amount Current Non-current		December	31
		2024 $ 1,851 44,140 $ 45,991	2023 $ 1,508 50,727 $ 52,235

Range of discount rates for lease liabilities was as follows:

Land Buildings	December 31
	2024 2023 0.75-1.38 0.75-1.38 1.35 -

• c. Material leasing activities and terms

1) Land

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

• 28 -

2) Buildings

The Company leases buildings located in Zuoying District, Kaohsiung City for the use of offices with the remaining useful life of 3 years, and the leases are renewable upon expiration.

In addition, the Company 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 $ 527 $ 987 $ 3,771	2023 $ 968 $ 441 $ 3,543

15. BORROWINGS

• a. Short-term borrowings

Credit loans The annual interest rate (%) Credit loans		December 31	December 31
		2024 $ 400,000 1.77-2.005	2023 $ 100,000 1.64

• b. Long-term borrowings

Credit loans Less: Government grants discount Less: Current portion of long-term borrowings The annual interest rate (%)		**December 31 **	**December 31 **
		2024 $ 861,902 3,260 178,612 $ 680,030 1.225	2023 $ 1,037,322 10,074 131,589 $ 895,659 1.1

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.

• 29 -

16. ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

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

The Company 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.

17. OTHER PAYABLES

Payables for salaries and bonuses Payables for employees’ compensation Payables for purchases of equipment Payables for remuneration of directors Others		December 31	December 31
		2024 $ 170,742 84,452 12,731 25,991 72,031 $ 365,947	2023 $ 146,730 75,333 44,856 22,494 67,014 $ 356,427

18. REFUND LIABILITIES

Balance at January 1 Usage Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 76,342 (15,782) $ 60,560	2023 $ 84,696 (8,354) $ 76,342

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.

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

b. Defined benefit plans

The defined benefit plan adopted by the Company 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 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 Company 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 Company 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

• 30 -

managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Company’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 $ 60,922 (103,401) $ (42,479)	2023 $ 64,398 (97,364) $ (32,966)

Movements in net defined benefit assets were as follows:

	Present Value	Present Value
	of the Defined
		Benefit	Fair Value of	Net Defined
	Obligation		the Plan Assets	Benefit Assets
Balance at January 1, 2023	$	85,577	$ (99,091)	$ (13,514)
Service cost
Current service cost		96	-	96
Net interest expense (income)		832	(1,238)	(406)
Recognized in profit or loss		928	(1,238)	(310)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-	(878)	(878)
Actuarial (gain) loss
Experience adjustments		1,177	-	1,177
Recognized in other comprehensive income		1,177	(878)	299
Contributions from the employer		-	(1,003)	(1,003)
Benefits paid		(23,284)	4,846	(18,438)
Balance at December 31, 2023		64,398	(97,364)	(32,966)
Service cost
Current service cost		35	-	35
Net interest expense (income)		790	(1,208)	(418)
Recognized in profit or loss		825	(1,208)	(383)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-	(8,953)	(8,953)
Actuarial (gain) loss
Changes in financial assumptions		(725)	-	(725)
Experience adjustments		1,497	-	1,497
Recognized in other comprehensive income		772	(8,953)	(8,181)

(Continued)

• 31 -

	Present Value
	of the Defined
	Benefit	Fair Value of	Net Defined
	Obligation	the Plan Assets	Benefit Assets
Contributions from the employer	$ -	$ (949)	$	(949)
Benefits paid	(5,073)	5,073		-
Balance at December 31, 2024	$ 60,922	$ (103,401)	$	(42,479)
				(Concluded)

Through the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

1) Investment risk

The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets 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.

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 1.60 1.25 2 2

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		December	31
		2024 $ (504) $ 515	2023 $ (612) $ 628 (Continued)

• 32 -

Expected rate of salary increase 1% increase 1% decrease		**December **	**31 **
		2024 $ 2,106 $ (1,959)	2023 $ 2,568 $ (2,360) (Concluded)

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 will occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		**December 31 **
	2024 2023 $ 950 $ 990 6.1 year 7.1 year

20. 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

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 cash dividends, or transferred to ordinary shares (Note) Conversion of bonds Issuance of ordinary shares Treasury share transactions The difference between consideration and the carrying amount of 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).

• 33 -

• c. Retained earnings and dividends policy

Under the dividends 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 dividends 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:

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	Dividends Per Share (NT$)
			For the Year Ended
		2023 $ 130,811 115,609 666,186 $ 912,606	2023 2022 $ 5.2 $ 5.4

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

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

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

• 34 -

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 Share from subsidiaries accounted for using the equity method Income tax benefit (expenses) relating to exchange differences arising on translation of foreign operations Income tax benefit relating to share from subsidiaries accounted for using the equity method 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 $ (249,976) 576,918 (92,729) (115,384) 18,546 $ 137,375 For the Year Ended		2023 $ (132,408) (59,119) (87,841) 11,824 17,568 $ (249,976) December 31
		2024 $ (6,260) 221 $ (6,039)	2023 $ (8,219) 1,959 $ (6,260)

21. OPERATING REVENUE

		For	the Year Ended December 31	the Year Ended December 31	the Year Ended December 31
			2024	2023
Revenue from contracts with customers
Revenue from sale of goods		$	3,562,115	$ 3,172,711
Service revenue			121		87
		$	3,562,236	$ 3,172,798
a. Refer to Note 4 (k) for information related to contracts with customers.
b. Contract balances
	December 31,	December 31,		January	1,
	2024		2023	2023
Notes and accounts receivable (Note 9)	$ 1,006,383	$	844,531	$ 1,015,902

• 35 -

c. Disaggregation of revenue

Type of revenue Passive components Service revenue	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 3,562,115 121 $ 3,562,236	2023 $ 3,172,711 87 $ 3,172,798

22. NET PROFIT

Net profit included following items:

a. Interest income

Bank deposits Others Other income Grants Rental income Dividend income Others Other gains and losses Loss on financial assets at FVTPL Foreign exchange gains, net Gain on disposal of property, plant and equipment Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2024 2023 $ 37,210 $ 16,056 66 61 $ 37,276 $ 16,117 **For the Year Ended December 31 **
	2024 2023 $ 2,503 $ 1,290 847 734 - 763 2,414 1,228 $ 5,764 $ 4,015 **For the Year Ended December 31 **
		2024 $ (51,322) 80,057 12 (467) $ 28,280	2023 $ (33,242) 18,061 305 (580) $ (15,456)

b. Other income

c. Other gains and losses

• 36 -

d. Finance costs

Interest expense of borrowings Interest on lease liabilities Less: Amounts included in the cost of qualifying assets Information on capitalized interest is as follows: Capitalized interest amount Capitalization rate (%) e. Depreciation and amortization Property, plant and equipment Right-of-use-assets Computer software Less: Amounts included in the cost of qualifying assets An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses f. Employee benefits expense Short-term employee benefits Salary Others	For the Year Ended	For the Year Ended	December 31
	2024 $ 24,209 595 24,804 4,519 $ 20,285 For the Year Ended		2023 $ 19,447 669 20,116 9,006 $ 11,110 December 31
	2024 $ 4,519 1.1-1.23 For the Year Ended		2023 $ 9,006 0.975-1.23 December 31
	2024 $ 116,020 2,106 11,410 129,536 258 $ 129,278 $ 92,467 25,401 $ 117,868 $ 2,061 9,349 $ 11,410 For the Year Ended		2023 $ 80,373 2,013 14,058 96,444 584 $ 95,860 $ 67,756 14,046 $ 81,802 $ 3,830 10,228 $ 14,058 December 31
		2024 $ 461,621 89,803 551,424	2023 $ 419,799 83,318 503,117 (Continued)

• 37 -

Retirement benefits Defined contribution plans Defined benefit plans (Note 19) An analysis of employee benefits expense by function Operating costs Operating expenses	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2024 $ 16,731 (383) 16,348 $ 567,772 $ 221,041 346,731 $ 567,772	2023 $ 17,874 (310) 17,564 $ 520,681 $ 198,991 321,690 $ 520,681 (Concluded)

• 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 parent company only 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 parent company only 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.

• 38 -

23. 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 Income tax expense recognized in profit or loss	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2024 $ 217,362 19,775 (18,727) 218,410 159,327 152 159,479 $ 377,889	2023 $ 119,342 31,408 (29,250) 121,500 193,965 - 193,965 $ 315,465

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

Profit before income tax Income tax expense calculated at the statutory rate Nondeductible income in determining taxable income Nondeductible expenses in determining taxable income Tax-exempt income Income tax on unappropriated earnings Usage of investment credits Adjustments for prior years’ tax 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 $ 1,928,429 $ 385,685 - 6,278 - 19,775 (15,274) (18,575) $ 377,889	2023 $ 1,623,268 $ 324,654 (1,183) 2,754 (153) 31,408 (12,765) (29,250) $ 315,465

The applicable tax rate of the Company is 20%.

b. Income tax recognized in other comprehensive income

Deferred tax Remeasurement of defined benefit plans Exchange differences on the translation of the financial statements of foreign operations Share of other comprehensive loss of subsidiaries by using equity method Income tax recognized in other comprehensive income	For the Year Ended	For the Year Ended	December 31
		2024 $ 1,636 115,384 (18,546) $ 98,474	2023 $ (60) (11,824) (17,568) $ (29,452)

• 39 -

c. Current tax assets and liabilities

Current tax assets Tax refund receivable Current tax liabilities Income tax payable		December 31	December 31
		2024 $ 3,075 $ 125,061	2023 $ 4,086 $ 12,712

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

					Recognized	Recognized	in
		Balance,				Other
	Beginning of		Recognized in		Comprehensive			Balance, End
		Year	Profit or Loss			Income			of Year
Deferred Tax Assets
Temporary differences
Unrealized loss on inventories	$	16,361	$	(8,652)	$		-	$	7,709
Unrealized gross profits		5,665		440			-		6,105
Unrealized refund liabilities		15,268		(3,156)			-		12,112
Exchange differences on
translation of the financial
statements of foreign
operations		11,919		-		(11,919)			-
Share of other comprehensive
income (loss) of subsidiaries
for using the equity method		50,575		-		(50,575)			-
Others		4,674		1,619		(1,183)			5,110
	$	104,462	$	(9,749)	$	(63,677)		$	31,036
Deferred Tax Liabilities
Temporary differences
Foreign investment income	$	1,489,641	$	148,362	$		-	$	1,638,003
Exchange differences on
translation of the financial
statements of foreign
operations		-		-		103,465			103,465
Share of other comprehensive
income (loss) of subsidiaries
for using the equity method		-		-		(69,121)			(69,121)
Others		8,794		1,368		453			10,615
	$	1,498,435	$	149,730	$	34,797		$	1,682,962

• 40 -

For the Year ended December 31, 2023

					Recognized	Recognized	in
		Balance,				Other
	Beginning of		Recognized in		Comprehensive			Balance, End
		Year	Profit or Loss			Income			of Year
Deferred Tax Assets
Temporary differences
Unrealized loss on inventories	$	23,757	$	(7,396)	$		-	$	16,361
Unrealized gross profits		15,787		(10,122)			-		5,665
Unrealized refund liabilities		16,939		(1,671)			-		15,268
Exchange differences on
translation of the financial
statements of foreign
operations		95		-		11,824			11,919
Share of other comprehensive
income (loss) of subsidiaries
for using the equity method		33,007		-		17,568			50,575
Others		5,206		(592)		60			4,674
	$	94,791	$	(19,781)	$	29,452		$	104,462
Deferred Tax Liabilities
Temporary differences
Foreign investment income	$	1,306,304	$	183,337	$		-	$	1,489,641
Others		17,947		(9,153)			-		8,794
	$	1,324,251	$	174,184	$		-	$	1,498,435

• e. Income tax assessments

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

24. 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

Net profit used in the computation of earnings per share	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

• 41 -

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

25. CAPITAL MANAGEMENT

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

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

26. FINANCIAL INSTRUMENTS

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

The Company’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 FVTOCI Domestic unlisted shares Financial liabilities at FVTPL Derivative financial liabilities	Level 1 $ - $ -	Level 2 $ - $ 4,212	Level 3 $ 27,903 $ -	Total $ 27,903
				$ 4,212

• 42 -

December 31, 2023 Level 1 Level 2 Level 3 Financial assets at FVTOCI Domestic unlisted shares $ - $ - $ 27,682 Financial liabilities at FVTPL Derivative financial liabilities $ - $ 629 $ - There were no transfers between Level 1 and Level 2 in 2024 and 2023.	Total $ 27,682
	$ 629

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

Balance at January 1 Recognized in other comprehensive income Balanced at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2024 $ 27,682 221 $ 27,903	2023 $ 25,723 1,959 $ 27,682

It refers to financial assets at FVTOCI - Investments in equity instruments.

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

Financial Instrument Derivatives - foreign exchange forward contracts	Valuation Technique and Inputs Discounted cash flow: Future cash flows are estimated based on 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

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.

• c. Categories of financial instruments

Financialassets Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Equity instruments	December 31
	2024 2023 $ 2,111,687 $ 1,588,907 27,903 27,682 (Continued)

• 43 -

Financial liabilities FVTPL Mandatorily classified as at FVTPL Amortized cost (Note 2)	**December 31 **
	2024 2023 $ 4,212 $ 629 2,049,331 1,884,082 (Concluded)

• 1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables (including related parties, but exclude income tax refund receivable), other financial assets.

• 2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, accounts payable (including related parties) and other payables (including related parties), long-term borrowings (including current portion) and guarantee deposits received.

• d. Financial risk management objectives and policies

The Company’s major financial instruments include time deposits, equity instrument investments, notes receivable, accounts receivable, accounts payable, borrowings and lease liabilities. Financial risks associated with the management and operations of the Company included market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

The Company 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 Company’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 Company did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

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

• 1) Market risk

The Company’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 Company has foreign currency denominated sales and purchases, which exposes the Company to foreign currency risk. The Company 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.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities exposed to foreign currency risk at the end of the reporting year are set out in Note 30.

• 44 -

Sensitivity analysis

The Company is mainly exposed to the risk from the fluctuations of the USD, CNY and EUR, 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 Company’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	USD Impact		CNY Impact	CNY Impact		EUR Impact	EUR Impact
		For the Year Ended December 31			For the Year Ended December 31			For the Year Ended December 31
		2024 $ 8,665	2023 $ 3,924		2024 $ 4,826	2023 $ 3,218		2024 $ 2,806	2023 $ 2,586

b) Interest rate risk

The Company is exposed to interest rate risk because of borrowing funds at both fixed and variable interest rates. The risk is managed by maintaining an appropriate mix of fixed and variable rate borrowings.

The carrying amounts of the Company’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 $ 8,181 $ 365,285 145,991 152,235 1,096,181 378,063 1,158,642 1,027,248

Sensitivity analysis

If interest rates had been 1% higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2024 and 2023 would have been lower/higher by $625 thousand and $6,492 thousand, respectively, which was mainly a result of the changes in the floating interest rate financial instrument.

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 Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk which would cause a financial loss to the Company due to the failure of the counterparty to discharge its obligation provided due to the financial guarantees provided by the Company, could be the carrying amount of the respective recognized financial assets as stated in the parent company only balance sheets.

• 45 -

The Company 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 Company uses other publicly available financial information and its own trading records to rate its major customers. The Company 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 Company annually.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’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 Company.

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

The following table details the Company’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 Company 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 estimated at the end of the year.

December 31, 2024

On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 95,093 $ 437,211 $ 257,983 $ - $ - Lease liabilities 202 405 1,822 5,827 52,180 Variable interest rate liabilities 16,366 232,155 241,433 608,713 99,615 Fixed interest rate liabilities 100,147 - - - - $ 211,808 $ 669,771 $ 501,238 $ 614,540 $ 151,795 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Lease liabilities $ 2,429 $ 5,827 $ 6,362 $ 6,362 $ 6,362 $ 33,094 Variable interest rate liabilities 489,954 608,713 99,615 - - - $ 492,383 $ 614,540 $ 105,977 $ 6,362 $ 6,362 $ 33,094 December 31, 2023 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 90,034 $ 445,143 $ 221,337 $ - $ - Lease liabilities 178 356 1,629 6,978 59,419 Variable interest rate liabilities 8,180 17,096 117,165 922,558 - Fixed interest rate liabilities 246 100,032 - - - $ 98,638 $ 562,627 $ 340,131 $ 929,536 $ 59,419	On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 95,093 $ 437,211 $ 257,983 $ - $ - Lease liabilities 202 405 1,822 5,827 52,180 Variable interest rate liabilities 16,366 232,155 241,433 608,713 99,615 Fixed interest rate liabilities 100,147 - - - - $ 211,808 $ 669,771 $ 501,238 $ 614,540 $ 151,795 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Lease liabilities $ 2,429 $ 5,827 $ 6,362 $ 6,362 $ 6,362 $ 33,094 Variable interest rate liabilities 489,954 608,713 99,615 - - - $ 492,383 $ 614,540 $ 105,977 $ 6,362 $ 6,362 $ 33,094 December 31, 2023 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 90,034 $ 445,143 $ 221,337 $ - $ - Lease liabilities 178 356 1,629 6,978 59,419 Variable interest rate liabilities 8,180 17,096 117,165 922,558 - Fixed interest rate liabilities 246 100,032 - - - $ 98,638 $ 562,627 $ 340,131 $ 929,536 $ 59,419	On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 95,093 $ 437,211 $ 257,983 $ - $ - Lease liabilities 202 405 1,822 5,827 52,180 Variable interest rate liabilities 16,366 232,155 241,433 608,713 99,615 Fixed interest rate liabilities 100,147 - - - - $ 211,808 $ 669,771 $ 501,238 $ 614,540 $ 151,795 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Lease liabilities $ 2,429 $ 5,827 $ 6,362 $ 6,362 $ 6,362 $ 33,094 Variable interest rate liabilities 489,954 608,713 99,615 - - - $ 492,383 $ 614,540 $ 105,977 $ 6,362 $ 6,362 $ 33,094 December 31, 2023 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 90,034 $ 445,143 $ 221,337 $ - $ - Lease liabilities 178 356 1,629 6,978 59,419 Variable interest rate liabilities 8,180 17,096 117,165 922,558 - Fixed interest rate liabilities 246 100,032 - - - $ 98,638 $ 562,627 $ 340,131 $ 929,536 $ 59,419	On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 95,093 $ 437,211 $ 257,983 $ - $ - Lease liabilities 202 405 1,822 5,827 52,180 Variable interest rate liabilities 16,366 232,155 241,433 608,713 99,615 Fixed interest rate liabilities 100,147 - - - - $ 211,808 $ 669,771 $ 501,238 $ 614,540 $ 151,795 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Lease liabilities $ 2,429 $ 5,827 $ 6,362 $ 6,362 $ 6,362 $ 33,094 Variable interest rate liabilities 489,954 608,713 99,615 - - - $ 492,383 $ 614,540 $ 105,977 $ 6,362 $ 6,362 $ 33,094 December 31, 2023 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 90,034 $ 445,143 $ 221,337 $ - $ - Lease liabilities 178 356 1,629 6,978 59,419 Variable interest rate liabilities 8,180 17,096 117,165 922,558 - Fixed interest rate liabilities 246 100,032 - - - $ 98,638 $ 562,627 $ 340,131 $ 929,536 $ 59,419	On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 95,093 $ 437,211 $ 257,983 $ - $ - Lease liabilities 202 405 1,822 5,827 52,180 Variable interest rate liabilities 16,366 232,155 241,433 608,713 99,615 Fixed interest rate liabilities 100,147 - - - - $ 211,808 $ 669,771 $ 501,238 $ 614,540 $ 151,795 Further information on the maturity analysis of the above financial liabilities was as follows: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years 20+ Years Lease liabilities $ 2,429 $ 5,827 $ 6,362 $ 6,362 $ 6,362 $ 33,094 Variable interest rate liabilities 489,954 608,713 99,615 - - - $ 492,383 $ 614,540 $ 105,977 $ 6,362 $ 6,362 $ 33,094 December 31, 2023 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year 1-5 Years 5+ Years Non-interest bearing $ 90,034 $ 445,143 $ 221,337 $ - $ - Lease liabilities 178 356 1,629 6,978 59,419 Variable interest rate liabilities 8,180 17,096 117,165 922,558 - Fixed interest rate liabilities 246 100,032 - - - $ 98,638 $ 562,627 $ 340,131 $ 929,536 $ 59,419
		$ 6,362		$ 33,094
		Years - 6,978 922,558 - 929,536		5+ Years - 59,419 - - 59,419
	$		$

• 46 -

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

Lease liabilities Variable interest rate liabilities	Less than 1 Year $ 2,163 142,441 $ 144,604	1-5 Years $ 6,978 922,558 $ 929,536	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 Company’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 is 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)

27. TRANSACTIONS WITH RELATED PARTIES

• a. Related party name and its relationship with the Company

Related Party Name Yenyo Thinking Changzhou Thinking Yichang Jiangxi Thinking Dongguan Welkin Zhongshan Welkin Thinking Viet Nam Welkin Electronic Industrial Co., Ltd. (Pingtung Welkin) Boh Chin Investment Co., Ltd. (Boh Chin Investment) Honungxin Technology Co., Ltd (Honungxin Technology) Thinking Education Foundation	Related Party Category
	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Related party in substance Related party in substance Related party in substance Related party in substance

• 47 -

b. Operating revenue

Related Party Line Item Category/Name Sales of goods Subsidiaries Thinking Changzhou Dongguan Welkin Zhongshan Welkin Others Related party in substance Pingtung Welkin	For the Year Ended	For the Year Ended	December 31
		2024 $ 200,626 39,067 481,006 8,251 1,751 $ 730,701	2023 $ 203,462 115,422 55,669 2,623 1,337 $ 378,513

The price of goods sold to related parties is calculated at cost plus gross profit. Additionally, the term of collection was 60 days from the end of the month, which was the same as those with non-related parties.

The amounts of unrealized gain on transactions with subsidiaries were $5,165 thousand and $1,180 thousand as of December 31, 2024 and 2023, respectively, which were recognized as the deduction of investments accounted for using the equity method.

c. Purchases of goods

Related Party Line Item Category/Name Purchases of goods Subsidiaries Dongguan Welkin Thinking Changzhou Others 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 $ 1,119,749 865,687 105,339 8,132 $ 2,098,907	2023 $ 1,039,295 854,360 61,078 2,341 $ 1,957,074

The purchase price with related parties was based on cost plus gross profit. The prices were not comparable as the Company has no other similar category of purchases with non-related parties. The term of collection was 60 days from the end of the month.

d. Receivables from related parties

Related Party Line Item Category/Name Accounts receivables from related Subsidiaries parties Thinking Changzhou Dongguan Welkin Zhongshan Welkin Others Related party in substance Pingtung Welkin		December 31	December 31
		2024 $ 89,893 16,666 112,203 3,024 271 $ 222,057	2023 $ 91,687 22,978 54,904 834 620 $ 171,023

(Continued)

• 48 -

Related Party Line Item Category/Name Other receivables from related parties Subsidiaries (exclude loans to related parties) Thinking Yichang		**December 31 **	**December 31 **
		2024 $ -	2023 $ 54 (Concluded)

The payment terms between the Company and the related parties were 60 days from the end of the month, and the outstanding payment receivables from related parties were unsecured. For the years ended December 31, 2024 and 2023, no impairment losses were recognized for trade receivables from related parties.

e. Payables to related parties

Related Party Line Item Category/Name Accounts payable to related parties Subsidiaries Dongguan Welkin Thinking Changzhou Others Related party in substance Pingtung Welkin Other payables to related parties Subsidiaries Dongguan Welkin Others Related party in substance Honungxin Technology Pingtung Welkin		**December 31 **	**December 31 **
		2024 $ 203,719 171,571 13,242 1,515 $ 390,047 $ 1,419 74 - 745 $ 2,238	2023 $ 173,785 173,059 16,714 814 $ 364,372 $ 71 - 704 643 $ 1,418

Other payables to related parties were classified under payables for equipment and processing. The payment terms between the Company 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 (in prepaid equipment payment)

Related Party Line Item Category/Name Prepayments for equipment Related party in substance Honungxin Technology Pingtung Welkin		**December **	**31 **
		2024 $ 7,382 596 $ 7,978	2023 $ 7,382 370 $ 7,752

• 49 -

• g. Acquisition of property, plant and equipment

For the Year Ended December 31, 2024

Related Party Category/Name	Purchase Price
Subsidiaries - Dongguan Welkin	$ 6,772

• h. Other transactions with related parties

• 1) Consigned processing

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 $ 487	2023 $ 4,815

The prices and payment terms with substantial related parties were not comparable because the Company did not have other consigned processing businesses with non-related parties. The payment term was 60 days from the end of the month.

• 2) Consigned purchases

Related Party Category/Name Subsidiaries Thinking Changzhou Thinking Yichang Others	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2024 $ 85 1,343 399 $ 1,827	2023 $ 14,303 137 265 $ 14,705

• 3) Lease arrangements

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

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

4) 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 .

• 50 -

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 $ 59,109 859 $ 59,968	2023 $ 63,002 1,084 $ 64,086

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.

28. ASSETS PLEDGED AS COLLATERAL FOR SECURITY

The Company provided the following assets as deposits for government grants contract and deposits of construction contract:

Other financial assets		December	31
		2024 $ 38,526	2023 $ 28,800

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Except for the estimated refund liabilities in Note 18, the Company has yet executed commitments related to the acquisition of property, plant and equipment were $77,880 thousand and $88,865 thousand as of December 31, 2024 and 2023, respectively. However, there is a dispute with the supplier regarding the settlement of construction payments for the plant, and the matter is currently under negotiation with the assistance of legal counsel. The Company has assessed that the above issue will not materially impact financial or operation.

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The significant assets and liabilities denominated in foreign currencies were as follows:

		Foreign				Carrying
		Currency				Amount
	(In Thousand)		Exchange Rate		(In Thousand)
December 31, 2024
Financial assets
Monetary items
USD	$	28,423	32.725	(USD:NTD)	$	930,143
CNY		179,890	4.5522	(CNY:NTD)		818,895
EUR		8,282	34.13	(EUR:NTD)		282,665
						(Continued)

• 51 -

		Foreign				Carrying
		Currency				Amount
	(In Thousand)		Exchange Rate		(In Thousand)
Non-monetary items
Investments accounted for using the
equity method
USD	$	242,614	32.725	(USD:NTD)	$	7,939,558
CNY		410,516	4.5522	(CNY:NTD)		1,868,668
VND		112,821,260	0.00127	(VND:NTD)		143,283
Financial liabilities
Monetary items
USD		1,945	32.725	(USD:NTD)		63,650
CNY		73,877	4.5522	(CNY:NTD)		336,303
EUR		60	34.13	(EUR:NTD)		2,048
December 31, 2023
Financial assets
Monetary items
USD		24,479	30.705	(USD:NTD)		751,628
CNY		78,794	4.3262	(CNY:NTD)		340,879
EUR		7,674	34.14	(EUR:NTD)		261,990
Non-monetary items
Investments accounted for using the
equity method
USD		213,757	30.705	(USD:NTD)		6,563,398
CNY		459,452	4.3262	(CNY:NTD)		1,987,680
VND		113,417,671	0.00125	(VND:NTD)		141,205
Financial liabilities
Monetary items
USD		11,700	30.705	(USD:NTD)		359,249
CNY		4,415	4.3262	(CNY:NTD)		19,100
EUR		99	34.14	(EUR:NTD)		3,380
						(Concluded)

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

			Net Foreign
			Exchange Gains
	Foreign Currency	Exchange Rate	(Losses)
For the year ended December 31, 2024
USD		32.725 (USD:NTD)	$ 14,683
CNY		4.5522 (CNY:NTD)	3,432
EUR		34.13 (EUR:NTD)	(654)
			$ 17,461
For the year ended December 31, 2023
USD		30.705 (USD:NTD)	$ 11,504
CNY		4.3262 (CNY:NTD)	4,292
EUR		34.14 (EUR:NTD)	742
			$ 16,538

• 52 -

31. 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.

• 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) Trading in derivative instruments: Note 7.

• 10) Information on investees: Table 8.

• 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: Refer to Note 27.

  • 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.

• 53 -

• 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 shareholders

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 10

32. SEGMENT INFORMATION

The Company has provided the operating segments disclosure in the consolidated financial statements; the parent company only financial statements do not need to disclose segment information.

• 54 -

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.

• 55 -

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	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	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
0	The Company	Thinking Viet Nam	b	$ 3,176,985	$ 328,500 (US$10,000 thousand)	$ 327,250 (US$10,000 thousand)	$ -	$ -	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.

• 56 -

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 Deposit - 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 18,524 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 18,524 thousand CNY 80,790 thousand CNY 10,348 thousand CNY 20,402 thousand

• 57 -

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.

• 58 -

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 IfCounterparty 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	CNY 133,600 thousand	-	Guangdong Jian-an Changsheng Holding Group Co., Ltd	-	N/A	N/A	N/A	N/A	Tender	For operation use

• 59 -

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	% 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

• 60 -

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	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	Subsidiaries 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	$ - - - - -

• 61 -

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.

• 62 -

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 ) - - - -	Note 9 - - - -
									EA
Accumulated Outward Remi in Mainland China as of D	ttance for Investment ecember 31, 2024	In	vestment Amounts Authorized by th Investment Commission, MOEA		e	Upper Limit on the Amou Stipulated by the Investment		nt of Investments Commission, MO	EA
$1,231,800 (US$ 38,774 thousand)			$1,148,451 (US$ 35,094 thousand)			$6,353,970 (Note 8)
			(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: Financial report had been audited by 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 amount 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.

• 63 -

TABLE 10

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	12.21 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.

• 64 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM STATEMENT INDEX

MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY STATEMENT OF CASH AND CASH EQUIVALENTS 1 STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE Note 7 THROUGH PROFIT OR LOSS - CURRENT STATEMENT OF NOTES RECEIVABLE 2 STATEMENT OF ACCOUNTS RECEIVABLE 3 STATEMENT OF INVENTORIES 4 STATEMENT OF OTHER CURRENT ASSETS 5 STATEMENT OF CHANGES IN INVESTMENTS 6 ACCOUNTED FOR USING THE EQUITY METHOD STATEMENT OF CHANGES IN FINANCIAL ASSETS AT 7 FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT STATEMENT OF CHANGES IN PROPERTY, PLANT AND Note 13 EQUIPMENT STATEMENT OF CHANGES IN ACCUMULATED Note 13 DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT STATEMENT OF RIGHT-OF-USE ASSETS 8 STATEMENT OF DEFERRED INCOME TAX ASSETS Note 23 STATEMENT OF SHORT-TERM BORROWINGS 9 STATEMENT OF LONG-TERM BORROWINGS Note 15 STATEMENT OF ACCOUNTS PAYABLE 10 STATEMENT OF OTHER PAYABLES Note 17 STATEMENT OF OTHER CURRENT LIABILITIES 11 STATEMENT OF LEASE LIABILITIES 12 STATEMENT OF DEFERRED TAX LIABILITIES Note 23 MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS STATEMENT OF OPERATING REVENUE 13 STATEMENT OF OPERATING COSTS 14 STATEMENT OF OPERATING EXPENSES 15 STATEMENT OF OTHER GAINS AND LOSSES Note 22 STATEMENT OF LABOR, DEPRECIATION AND 16 AMORTIZATION BY FUNCTION

• 65 -

STATEMENT 1

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Foreign Currency (Thousand) Petty cash and cash on hand Bank deposits Checking accounts Demand deposits Foreign currency demand deposits (Note) USD 7,073 CNY 127,566 EUR 5,755 JPY 47,784 HKD 1,049	Amount $ 788 74 39,607 231,471 580,705 196,403 9,906 4,423 1,022,908 $ 1,063,377

Note: Foreign currency exchange rates of USD, CNY, EUR, JPY and HKD were as follows: USD:NTD=1: 32.725 CNY:NTD=1: 4.5522 EUR:NTD=1: 34.13 JPY:NTD=1: 0.2073 HKD:NTD=1: 4.215

• 66 -

STATEMENT 2

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

	Client Name	Description	Amount
Company A		Sale of goods	$ 1,225
Company B		Sale of goods	420
Company C		Sale of goods	113
Others (Note)		Sale of goods	557
			$ 2,315

Note: The amounts of individual clients that are included in others does not exceed 5% of the account balance.

• 67 -

STATEMENT 3

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Client Name Related parties Thinking Changzhou Dongguan Welkin Zhongshan Welkin Others (Note) Non-related parties Others (Note) Less: Loss allowance	Amount Over a Year Remark $ 89,893 $ - Sale of goods 16,666 - Sale of goods 112,203 - Sale of goods 3,295 - Sale of goods 222,057 - 786,321 3,078 Sale of goods (4,310) (3,078) 782,011 - $ 1,004,068 $ -

Note: The amount of individual clients that are included in others does not exceed 5% of the account balance.

• 68 -

STATEMENT 4

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF INVENTORIES DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Item Finished goods Semi-finished Work-in-process Raw materials Supplies Inventory in transit	Cost Net Realizable Value (Note) $ 201,613 $ 235,611 19,782 35,695 70,130 108,851 34,771 35,692 6,612 6,624 4,173 4,173 $ 337,081 $ 426,646

Note: Refer to Note 4 for accounting policy of net realizable value.

• 69 -

STATEMENT 5

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF OTHER CURRENT ASSETS DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Item Prepayments for purchases Prepaid expenses Office supplies Offsets against business tax payable Others	Amount $ 7,243 16,822 7,348 2,308 687 $ 34,408

• 70 -

STATEMENT 6

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2024

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

Investees Non-listed company Yenyo Greenish Thinking Changzhou Thinking Holding Thinking USA Thinking Viet Nam	Balance, January 1, 2024	Balance, January 1, 2024	Addition	s in Investment	Decrease	in Investment	Balance, December	31, 2024	Market V Net Asset	alue or s Value otal Amount Collateral Note $ 213,781 None 3,128,523 None 1,802,769 None 4,904,462 None 995 None 143,283 None $ 10,193,813
							% of Shares Ownership 25,732,508 63.76 7,374,997 100 14,814,804 47.39 25,476,302 100 1,000,000 100 - 100	Amount $ 208,674 3,112,322 1,868,668 4,826,241 995 143,283 $ 10,160,183
	Shares 25,732,508 7,374,997 14,814,804 25,476,302 1,000,000 -	Amount $ 237,878 2,691,574 1,987,680 3,860,398 11,426 141,205 $ 8,930,161	Shares - - - - - -	Amount $ 1,703 421,773 306,174 969,058 518 2,834 $ 1,702,060 (Note)	Shares - - - - - -	Amount $ 30,907 1,025 425,186 3,215 10,949 756 $ 472,038 (Note)			Unit Price T $ 8.31 424.21 178.93 192.51 0.99 -

Note: Share of profit and loss of investments accounted for using the equity method, realized and unrealized gain on transactions, remeasurement of defined benefit plans, exchange differences on the translation of the financial statements of foreign operations and repatriation of earnings.

• 71 -

STATEMENT 7

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME, NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2024

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

Investees Non-listed company’s shares ACPA TECHNOLOGY CO., LTD.	Balance, January 1, 2024 Shares Fair Value 2,619,499 $ 27,682	Additions in Inv	estment Amount (Note 1) $ 221	Decrease in Inv	estment Amount $ -	Balance, Decembe	r 31, 2024 Fair Value Accumulated (Note 2) Impairment Collateral $ 27,903 $ - None
	Shares 2,619,499	Shares -		Shares -		Shares 2,619,499

Note 1: Recognized as unrealized gain on financial assets at FVTOCI.

Note 2: Refer to Note 26 for fair value measurement.

• 72 -

STATEMENT 8

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

	Balance,	Balance,					Balance,
	January 1,						December 31,
		2024	Additions		Deductions		2024
Cost
Land	$ 58,682		$	993	$ (6,821 )		$ 52,854
Buildings		-		1,246		-	1,246
		58,682		2,239		(6,821)	54,100
Accumulated depreciation
Land		(9,617 )		(1,760 )		-	(11,377 )
Buildings		-		(346)		-	(346)
		(9,617)		(2,106)		-	(11,723)
	$ 49,065		$	133	$ (6,821)		$ 42,377

• 73 -

STATEMENT 9

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2024

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

		Interest Rates
Type of Borrowings and		for the Year	Balance, December
Bank Name	Contract Period	(%)	31, 2024
Credit Loans
Bank of Taiwan	2024/12/17-2025/03/17	1.77	$ 100,000
Fubon Bank	2024/12/26-2025/06/24	1.87	100,000
Cathay Bank	2024/12/27-2025/01/24	1.82	100,000
SinoPac Bank	2024/12/30-2025/02/27	2.005	100,000
			$ 400,000

Note: As of December 31, 2024, the amount of unused short-term borrowings was approximately $2,200,000 thousand.

• 74 -

STATEMENT 10

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Vendor Name Related parties Dongguan Welkin Thinking Changzhou Thinking Yichang Pingtung Welkin Yenyo Non-related parties Company D Company E Company F Company G Company H Company I Company J Others (Note)	Amount $ 203,719 171,571 12,899 1,515 343
	390,047
	4,981 3,198 2,653 2,497 2,317 1,952 1,659 12,938
	32,195
	$ 422,242

Note: The amount of individual vendor that are included in others does not exceed 5% of the account balance.

• 75 -

STATEMENT 11

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF OTHER CURRENT LIABILITIES DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Item Over received Withholding Temporary receipts Deferred revenue	Amount $ 28,210 2,125 420 3,053 $ 33,808

• 76 -

STATEMENT 12

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

		Discount Rate	Balance, December
Item	Lease Term	(%)	31, 2024
Land	2016.06-2030.10	0.75-1.38	$ 45,086
Buildings	2027.02	1.35	905
			45,991
Less: Lease liabilities - current			1,851
Lease liabilities - non-current			$ 44,140

• 77 -

STATEMENT 13

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Item Shipments (Thousand PCS) Revenue from sale of goods Passive components 6,440,919 Service revenue	Amount $ 3,562,115 121 $ 3,562,236

• 78 -

STATEMENT 14

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Item Production cost Raw material used Raw material, beginning of year Raw material purchased Raw material, end of year Others Supplies used Direct labor Manufacturing expense Manufacturing cost Work-in-process and semi-finished goods, beginning of year Work-in-process and semi-finished goods purchased Work-in-process and semi-finished goods, end of year Others Cost of finish goods Finish goods, beginning of year Finish goods purchased Finish goods, end of year Others Total of production cost Other operating cost Reversal of write-down of inventories Income from sale of scraps Loss of inventory scrapped Others

Amount $ 29,959 115,530 (34,771 ) 17,077 127,795 23,537 157,012 294,340 602,684 86,778 6,414 (89,912 ) 5,272 611,236 152,028 2,109,368 (201,613 ) (312,701) 2,358,318 (39,908 ) (10,655 ) 12,672 (10,794) (48,685) $ 2,309,633

• 79 -

STATEMENT 15

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Item Salaries Employee benefits (Note) Depreciation and amortization expense Remuneration of directors Professional service fees Export expense Utilities expense Shipping expense Consumption supplies Commission expense Others Expected credit loss reversed	Selling and Marketing Expenses General and Administrative Expenses Research and Development Expenses $ 62,030 $ 108,408 $ 108,095 8,710 16,967 16,530 5,426 11,287 18,037 - 25,991 - 5,774 11,830 2,834 16,838 77 3 273 2,257 13,339 13,087 632 216 6 111 12,314 11,090 - - 35,602 20,514 16,842 $ 158,836 $ 198,074 $ 188,210	Total $ 278,533 42,207 34,750 25,991 20,438 16,918 15,869 13,935 12,431 11,090 72,958 545,120 (1,520) $ 543,600

Note: The employee benefits includes labor and health insurance, pension, food stipend and others.

• 80 -

STATEMENT 16

THINKING ELECTRONIC INDUSTRIAL CO., LTD.

STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2024	Total $ 461,621 37,548 16,348 25,991 26,264 $ 567,772 $ 117,868 11,410	2023
	Operating Costs Operating Expenses $ 183,088 $ 278,533 16,970 20,578 7,317 9,031 - 25,991 13,666 12,598 $ 221,041 $ 346,731 $ 92,467 $ 25,401 2,061 9,349		Operating Costs Operating Expenses $ 162,448 $ 257,351 16,144 20,223 7,099 10,465 - 22,494 13,300 11,157 $ 198,991 $ 321,690 $ 67,756 $ 14,046 3,830 10,228	Total $ 419,799 36,367 17,564 22,494 24,457 $ 520,681 $ 81,802 14,058

• Note: a. For the years ended December 31, 2024 and 2023, the Company had 526 and 520 employees in average, respectively. There were 6 and 5 non-employee director of the reporting period, respectively.

• b. The average employee welfare expense for the years ended December 31, 2024 and 2023 was $1,042 thousand and $967 thousand, respectively.

• c. The average employee salary and bonuses for the years ended December 31, 2024 and 2023 was $888 thousand and $815 thousand, respectively.

• d. Change in the average employee salary and bonuses was increased in 9%.

• e. The Company has established an audit committee to replace the role of supervisor, so it has no remuneration for supervisor.

• f. The Company’s salary and remuneration policy (including directors, managers and employees).

1) Director

The Company’s remuneration of directors are distributed in accordance with the Articles of Incorporation. Please refer to Note 22 (g) for related regulations. The remuneration will be adjusted based on the Company’s operating conditions and the related regulations. In consideration of the Company’s sustainable development, the remuneration of directors will be submitted to the compensation committee and the board of directors for approval.

(Continued)

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2) Manager

Based on the “Rules for Distribution of Compensation to Managers”, the Company’s compensation committee will take the manager’s services provided and standards of the industry into consideration.

Monthly salary: Depending on the manager’s job tenure and the value of job title. Salary movement should not exceed 150% of the industry standards.

Variable salary: Depending on the Company’s operating condition, including bonuses and employee remuneration.

3) Employee

The principle of the Company’s employee salary system stands on fairness and competitiveness. Employee salary includes monthly salary and variable salary. For the total amount of remuneration of employees, please refer to Note 22 (g). Salary of employee is distributed according to the “Regulation of Salary” and according to the employee’s duties and professional skills. Remuneration of employee is also distributed according to the “Regulation of Distribution of Cash and Shares Dividends” and according to the employee’s performance and contribution to the Company.

(Concluded)

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