TMC — Annual Report 2024

Dec 17, 2024

Taiwan Mask Corporation

Parent Only financial statements and independent auditor’s report 2024 and 2023

(Stock Code: 2338)

Company address: No. 11, Chuangxin 1st Road, Hsinchu County, Hsinchu Science Park

Telephone: (03)563-4370

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Taiwan Mask Corporation

2024 and 2023 Parent Only Financial Statements and Independent Auditor’s Report

Table of Contents

Items I. Cover Page II. Table of Contents III. Independent Auditors’ Report IV. Parent Only Balance Sheets V. Parent Only Statements of Comprehensive Income VI. Parent Only Statements of Changes in Equity VII. Parent Only Statements of Cash Flows VIII. Notes to the Parent Only Financial Statements (I) Company History (II) Date and procedures for passing the financial statement (III) Newly Released and Amended Standards and Interpretations (IV) Summary of Significant Accounting Policies (V) Critical Accounting Judgments and Key Sources of Estimation and Uncertainty (VI) Summary of Significant Accounting Items (VII) Related Party Transactions (VIII) Pledged Assets

Page/Number/Index 1 2 ~ 4 5 ~ 8 9 ~ 10 11 12 13 ~ 14 15 ~ 73 15 15 15 16 ~ 26 26 27 ~ 56 57 ~ 60 60

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Items (IX) Significant Contingent Liabilities and Unrecognized Contractual Commitments (X) Losses Due to Major Disasters (XI) Major Events after Financial Statement Date (XII) Others (XIII) Supplementary Disclosure 1. Information on significant transactions 2. Information on investees 3. Information on investments in Mainland China 4. Information on Major Shareholders (XIV) Segment Information IX. Schedule of Significant Accounting Items Cash and Cash Equivalents Schedule Accounts Receivable Schedule Inventories Schedule Financial assets schedule at fair value through profit and loss Schedule of Investments Changes Accounted for Using Equity Method Property, Plant and Equipment Cost Changes Schedule Property, Plant and Equipment Accumulated Depreciation Changes Schedule Right-of-Use Assets Schedule Right-of-Use Assets Accumulated Depreciation Schedule Short-Term Borrowings Schedule

Page/Number/Index 60 61 61 61 ~ 72 72 72 72 73 73 73 Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule 7 Schedule 8 Schedule 9 Schedule 10

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Items Long-Term Borrowings Schedule Sales Income Schedule Operating Costs Schedule Manufacturing Expenses Schedule Operating Expenses Schedule Employee Benefits, Depreciation, Depletion and Amortization in the Current Period	Page/Number/Index Schedule 11 Schedule 12 Schedule 13 Schedule 14 Schedule 15 Schedule 16

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Independent Auditors’ Report

(114) Tsai-Sheng-Bao-Zi No. 24005005

To Taiwan Mask Corporation:

Opinions

We have audited the accompanying parent-only balance sheets of Taiwan Mask Corporation as of December 31, 2024 and 2023, and the related statements of comprehensive income, of changes in equity and of cash flows for the years ended December 31, 2024 and 2023, and notes to the parent-only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of the other independent auditors, as described in the Other matters section of our report, the parent-only financial statements present fairly, in all material respects, the standalone financial position of Taiwan Mask Corporation as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years ending on December 31, 2024 and 2023, 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 Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in Taiwan. Our responsibilities under those standards are further described in the Independent Auditor’s Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of Taiwan Mask Corporation in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the reports of the other independent auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of Taiwan Mask Corporation of fiscal year 2024. These matters were addressed in the context of our audit of the standalone financial statements as a whole and, in forming our opinion thereon, we do not provide a standalone opinion on these matters.

Key audit matters for the parent-only financial statements in fiscal year 2024 are stated as follows:

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Income recognition

Explanation

For the accounting policy on income recognition, please refer to Note 4 (27) of the financial report. For sales revenue please refer to Note 6 (21); the operating income in fiscal year 2024 is NT$4,260,484 thousand.

Taiwan Mask Corporation mainly produces and sells products such as masks and integrated circuits used in semiconductors, and has a large and diversified sales base. Trading conditions vary according to market conditions and customer needs. Considering that sales revenue is a major transaction that has a significant impact on the standalone financial statements, we believe that the recognition of sales revenue is one of the most important matters to be considered in this year's audit.

How our audit addressed the matter

We have performed primary audit procedures for the above matter as follows:

1. Understand the type of major income and assess internal operations, review revenue recognition and accounting treatment.

2. Obtain the sales revenue statement, sample the sales transactions and verify the relevant documents to determine the appropriateness of the sales revenue.

3. Execute the cut-off test for the sales receipts transaction for a certain period of time before and after the closing date, and confirm that the account is correct at the time of entry.

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

Management is responsible for the preparation and fair presentation of the standalone financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of standalone financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent only financial statements, management is responsible for assessing Taiwan Mask Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate Taiwan Mask Corporation 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 Taiwan Mask Corporation's financial reporting process.

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Independent auditor’s responsibilities for the audit of the standalone financial statements

Our objectives are to obtain reasonable assurance about whether the parent 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 ROC AS 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 standalone financial statements.

As part of an audit conducted in accordance with ROC AS, we exercise professional judgment and professional skepticism throughout the audit. We also conduct the following undertakings:

1. Identify and assess the risks of material misstatement of the parent 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 Taiwan Mask Corporation’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 significant doubt on Taiwan Mask Corporation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the parent 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 report. However, future events or conditions may cause Taiwan Mask Corporation to cease to continue as a going concern.

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

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

We communicated 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 for the current period.

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-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 auditor’s report because the adverse consequences of doing so would reasonable are expected to outweigh the public interest benefits of such communication.

PricewaterhouseCoopers Taiwan

Ya-Hui Cheng

CPA

Chien-Yu Liu

Securities and Futures Bureau of Financial Supervisory Commission of the Executive Yuan Approval Document for Attestation: Jin-Guan-Zheng-Liu-Zi No. 0960072936

Financial Supervisory Commission of the Executive Yuan Approval Document for Attestation: Jin-Guan-Zheng-Shen-Zi No. 1090350620

March 12, 2025

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Taiwan Mask Corporation Parent Only Balance Sheets December 31, 2024 and 2023

Assets	December31,2024 Notes Amount % 6(1) $ 532,868 3 6(2) and 8 1,050,247 7 6(3) - - 6(21) 76,496 1 6(4) 795,123 5 6(4) and 7 5,612 - 19,243 - 7 602,437 4 6(5) 205,380 1 104,704 1 752 - 3,392,862 22 6(2) and 8 57,520 - 6(3) and 8 518,270 3 6(6) 1,296,209 9 6(7) and 8 8,713,454 57 6(8) 401,774 3 6(10) and 8 585,436 4 28,286 - 6(28) 13,011 - 6(11) 346,110 2 11,960,070 78 $ 15,352,932 100 (Continued)	Unit: NT$ Thousand December31,2023 Amount % $ 451,993 3 397,340 3 3,000 - 86,821 - 685,798 5 6,494 - 4,520 - 90,940 - 129,575 1 97,617 1 190 - 1,954,288 13 859,962 6 417,504 3 1,866,791 13 7,862,213 54 535,527 4 662,854 5 45,675 - 5,310 - 359,147 2 12,614,983 87 $ 14,569,271 100
		Amount $ 451,993 397,340 3,000 86,821 685,798 6,494 4,520 90,940 129,575 97,617 190 1,954,288 859,962 417,504 1,866,791 7,862,213 535,527 662,854 45,675 5,310 359,147 12,614,983 $ 14,569,271
Current assets 1100 Cash and Cash Equivalents 1110 Financial Assets at Fair Value Through Profit or Loss - Current 1136 Financial Assets at Amortized Cost - Current 1140 Contract Asset - Current 1170 Accounts Receivables (Net) 1180 Accounts Receivables - Related Parties (Net) 1200 Other Receivables 1210 Other Receivables - Related Parties 130X Inventories 1410 Prepayments 1470 Other Current Assets 11XX Total Current Assets Non-Current Assets 1510 Financial Asset at Fair Value Through Profit or Loss - Non Current 1535 Financial Assets at Amortized Cost - Non Current 1550 Investment under Equity Method 1600 Property, plant and equipment 1755 Right-of-use Asset 1760 Investment property (Net) 1780 Intangible assets 1840 Deferred Income Tax Assets 1900 Other Non-Current Assets 15XX Total Non-Current Assets 1XXX Total Assets

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Taiwan Mask Corporation Parent Only Balance Sheets December 31, 2024 and 2023

Unit: NT$ Thousand

Liabilities and Equities	Notes 6(12) 6(2) 6(21) 6(13) 7 6(15) 6(14) 6(15) 6(28) 6(16) 6(31) 6(17) 6(18) 6(19) 6(20) 6(17) 9 11	December 31,2024 Amount % $ 2,406,478 16 19,204 - 13,611 - 116,962 1 819,364 5 793 - - - 25,928 - 857,444 6 24,108 - 4,283,892 28 3,609,156 23 2,634,986 17 - - 388,343 3 7,473 - 33,914 - 6,673,872 43 10,957,764 71 2,564,562 17 1,532,041 10 863,958 6 581,828 4 20,148 - ( 1,167,369) ( 8 ) 4,395,168 29 $ 15,352,932 100	December 31,2023 Amount % $ 1,079,983 8 9,383 - 33,984 - 117,596 1 669,580 5 4,131 - 2,623 - 31,939 - 872,834 6 47,783 - 2,869,836 20 3,424,600 23 2,592,429 18 219 - 514,436 4 10,648 - 33,961 - 6,576,293 45 9,446,129 65 2,564,465 18 1,439,959 9 827,460 6 1,464,101 10 1,641 - ( 1,174,484) ( 8) 5,123,142 35 $ 14,569,271 100
		Amount $ 2,406,478 19,204 13,611 116,962 819,364 793 - 25,928 857,444 24,108 4,283,892 3,609,156 2,634,986 - 388,343 7,473 33,914 6,673,872 10,957,764 2,564,562 1,532,041 863,958 581,828 20,148 ( 1,167,369) 4,395,168 $ 15,352,932	Amount $ 1,079,983 9,383 33,984 117,596 669,580 4,131 2,623 31,939 872,834 47,783 2,869,836 3,424,600 2,592,429 219 514,436 10,648 33,961 6,576,293 9,446,129 2,564,465 1,439,959 827,460 1,464,101 1,641 ( 1,174,484) 5,123,142 $ 14,569,271
Current liabilities 2100 Short Term Loans 2120 Financial Liabilities at Fair Value Through Profit or Loss - Current 2130 Contract Liabilities - Current 2170 Accounts Payable 2200 Other Payables 2220 Other Payables - Related Parties 2230 Income Tax Liabilities for the Period 2280 Lease Liability - Current 2320 Long-term liabilities due within one year or one business cycle 2399 Other Current Liabilities - Other 21XX Total Current Liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term Loans 2570 Deferred Income Tax. 2580 Lease liability - Non Current 2640 Defined Benefit Liabilities - Non Current 2645 Guarantee Deposits Received 25XX Total Non-Current Liabilities 2XXX Total Liabilities Capital 3110 Capital stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3350 Unappropriated earnings Other equity interests 3400 Other equity interests 3500 Treasury stock 3XXX Total Equities Major Commitments and Contingencies Major Events after Financial Statement Date 3X2X Total Liabilities and Equities

The attached notes to the standalone financial statements are part of the standalone financial report.

Chairman: Sean Chen

Manager: Lidon Chen

Accounting Officer: Yu-Ming Fan

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Taiwan Mask Corporation Parent Only Statement of Comprehensive Income January 1 to December 31 of 2024 and 2023

Unit: NT$ Thousand (Except for earnings (loss) per share in NT$)

Items

2024 2023 Notes Amount % Amount % 6 (21) and 7 $ 4,260,484 100 $ 3,985,541 100 6(5) ( 2,833,103) ( 66)( 2,322,564)( 58) 1,427,381 34 1,662,977 42 6(26) (27) ( 82,663 ) ( 2) ( 75,496 ) ( 2) ( 288,760 ) ( 7) ( 304,800 ) ( 8) ( 201,143 ) ( 5) ( 152,015 ) ( 4) 12(2) ( 3,295) - ( 418) - ( 575,861) ( 14)( 532,729)( 14) 851,520 20 1,130,248 28 6(22) 18,675 - 27,316 1 6(23) 196,036 5 204,573 5 6(24) ( 172,931 ) ( 4) ( 8,162 ) - 6(25) ( 200,045 ) ( 5) ( 162,406 ) ( 4) ( 1,070,993) ( 25)( 579,274)( 15) ( 1,229,258) ( 29)( 517,953)( 13) ( 377,738 ) ( 9) 612,295 15 6(28) ( 94,783) ( 2)( 246,169)( 6) ($ 472,521) ( 11) $ 366,126 9 6(16) $ 237 - ($ 1,145 ) - 6(20) 18,507 - ( 8,867) - $ 18,744 - ($ 10,012) - ($ 453,777) ( 11) $ 356,114 9 6(29) ($ 2.21) $ 1.75 ( $ 2.21) $ 1.65

4000 Operating income 5000 Operating costs 5900 Gross profit Operating Expenses 6100 Selling Expenses 6200 Administrative Expenses 6300 R&D Expenses 6450 Expected loss on credit impairment 6000 Total Operating Expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other Incomes 7020 Other Gains and Losses 7050 Financial Costs 7070 The share of subsidiaries, affiliates and joint venture profits and losses recognized by the equity method 7000 Total Non-Operating Incomes and Losses 7900 Net loss/profit before tax 7950 Income Tax Expense 8200 Net (loss) profit for the period Other Comprehensive Incomes (Net) Components of other comprehensive income that will not be reclassified to profit or loss 8311 Re-measurements of defined benefit plan Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statement translation differences of foreign operations 8300 Other Comprehensive Incomes (Net) 8500 Total comprehensive income for the year Earnings (loss) per share 9750 Basic 9850 Diluted

The attached notes to the standalone financial statements are part of the standalone financial report.

Manager: Lidon Chen

Chairman: Sean Chen

Accounting Officer: Yu-Ming Fan

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Taiwan Mask Corporation Parent Only Changes of Equity Statements January 1 to December 31 of 2024 and 2023

Unit: NT$ Thousand

Notes 2023 Balance as at January 1, 2023 Net profit for the period Other Comprehensive Profit or Loss 6(20) Total comprehensive income for the year Distribution and appropriation of earnings for 2022 6(19) Legal capital reserve Cash dividends Distribution of cash from capital surplus 6(18) Adjustment of capital reserve by dividends paid to subsidiaries 6(18) Changes in ownership interests in subsidiaries recognized 6(18) Changes in shares of affiliates and joint ventures recognized under the equity method 6(18) Subsidiaries donated treasury stock 6(17) Treasury stocks transfer to employees 6(17) Payment of overdue unclaimed dividends to shareholders 6(18) Balance as of December 31, 2023 2024 Beginning Balance as of January 1, 2024 Net loss Other Comprehensive Profit or Loss 6(20) Total comprehensive income for the year Distribution and appropriation of earnings for 2023 6(19) Legal capital reserve Cash dividends Changes in ownership interests in subsidiaries recognized 6(18) Adjustment of capital reserve by dividends paid to subsidiaries 6(18) Subsidiaries donated treasury stock 6(17) Changes in shares of affiliates and joint ventures recognized under the equity method 6(18) Conversion of convertible bonds 6 (14) (18) Ending Balance as of December 31, 2024	Notes		Capital stock		Capital surplus		Retained	earnings	earnings		Other equity interests	Other equity interests	Other equity interests		Treasury stock		Total Equity
							Legal reserve		Unappropriated earnings		Financial statement translation differences of foreign operations	Unrealized gain or loss on financial assets measured at fair value through other comprehensive income
			$ 2,564,465 - - - - - - - - - - - - $ 2,564,465 $ 2,564,465 - - - - - - - - - 97 $ 2,564,562		$ 1,251,681 - - - - - ( 49,797 ) 90,829 133,604 13,793 - - ( 151 ) $ 1,439,959 $ 1,439,959 - - - - - 1,196 52,997 - 37,203 686 $ 1,532,041		$ 769,952 - - - 57,508 - - - - - - - - $ 827,460 $ 827,460 - - - 36,498 - - - - - - $ 863,958		$ 1,729,293 366,126 ( 1,145 ) 364,981 ( 57,508 ) ( 572,665 ) - - - - - - - $ 1,464,101 $ 1,464,101 ( 472,521 ) 237 ( 472,284 ) ( 36,498 ) ( 373,491 ) - - - - - $ 581,828		$ 13,174 - ( 8,867 ) ( 8,867 ) - - - - - - - - - $ 4,307 $ 4,307 - 18,507 18,507 - - - - - - - $ 22,814		($ 2,666 ) - - - - - - - - - - - - ($ 2,666 ) ($ 2,666 ) - - - - - - - - - - ($ 2,666 )		($ 1,778,979) - - - - - - - - - 12,807 591,688 - ($ 1,174,484 ) ($ 1,174,484 ) - - - - - - - 7,115 - - ($ 1,167,369 )	$ 4,546,920 366,126 ( 10,012 ) 356,114 - ( 572,665 ) ( 49,797 ) 90,829 133,604 13,793 12,807 591,688 ( 151 ) $ 5,123,142 $ 5,123,142 ( 472,521 ) 18,744 ( 453,777 ) - ( 373,491 ) 1,196 52,997 7,115 37,203 783 $ 4,395,168

The attached notes to the standalone financial statements are part of the standalone financial report.

Chairman: Sean Chen

Manager: Lidon Chen

Accounting Officer: Yu-Ming Fan

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Taiwan Mask Corporation Parent Only Statements of Cash Flow January 1 to December 31 of 2024 and 2023

Unit: NT$ Thousand

Cash Flow from Operating Activities Net (loss) profit before tax for the period Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities Revenues and Expenses Depreciation Amortization Expected loss on credit impairment Dividend income Interest income Disposal of interests in property, plant and equipment Interest Expenses Net Profit of Financial Asset at Fair Value Through Loss (Profit) Gain (loss) on disposal of investments The Share of Subsidiaries and Affiliates Profits and Losses Recognized by the Equity Method Property, plant and equipment reclassified as expenses Gain on lease modifications Goodwill impairment loss The Changes of Assets/ Liabilities related to Operating Activities Net Changes of Assets related to Operating Activities Mandatory financial assets at fair value through profit or loss Contract Assets Accounts Receivables Accounts Receivables－Related Parties Other Receivables Other Receivables－Related Parties Inventories Prepayments Other Current Assets Net Changes of Liabilities related to Operating Activities Contract Liabilities Accounts Payable Accounts payable - Related party Other Payables Other Payables- related Parties Other Current Liabilities Defined Benefit Liabilities Net Cash In-Flow from Operating Dividends Received Interest Received Interest Paid Income Tax Paid Net Cash In-Flow (Out-Flow) from Operating Activities

Notes January 1 to December31,2024 January 1 to December31,2023 ( $ 377,738 ) $ 612,295 6(26) 1,102,588 798,565 6(26) 23,067 24,041 6 (4) and 12 (II) 3,295 418 6(23) ( 50,497 ) ( 51,566 ) 6(22) ( 18,675 ) ( 27,316 ) 6(21) ( 40 ) - 6(25) 200,045 162,406 6(24) 159,301 ( 8,662 ) 6(24) ( 67 ) - 1,070,993 579,274 6(7) 12,906 78 ( 1,295 ) - 27,002 - 262 ( 12,500 ) 10,325 3,821 ( 112,620 ) 114,215 882 3,031 2,422 ( 1,456 ) ( 511,497 ) ( 73,497 ) ( 75,805 ) ( 10,866 ) 35,635 7,020 ( 566 ) 613 ( 20,373 ) ( 23,339 ) 42,156 8,592 ( 323 ) - ( 82,649 ) 7,370 - 1,626 ( 23,196 ) 18,601 ( 2,937) ( 7,012) 1,412,601 2,125,752 50,497 69,929 15,740 28,813 ( 186,518 ) ( 134,928 ) ( 119,544) ( 401,498) 1,172,776 1,688,068

(Continued)

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Taiwan Mask Corporation Parent Only Statements of Cash Flow January 1 to December 31 of 2024 and 2023

Cash Flow from Investment Activities Acquisition of Amortized Cost Financial Assets Disposal of Amortized Cost Financial Assets Acquisition of investment property by the Equity Method Disposal of investment under Equity Method Acquisition of Property, Plants and Equipment Disposal of Property, Plants and Equipment Acquisition of Intangible Assets Decrease (Increase) of Refundable Deposits Net Cash Outflow from Investing Activities Cash Flows from Financing Activities Increase of Short Term Loan Redemption of Short Term Loan Increase of Long Term Loan Redemption of Long Term Loan Issuance of corporate bonds Repayment of corporate bonds Distribution of cash dividends (including capital surplus distribution cash) Treasury stocks transfer to employees Redemption of Lease Principal (Decrease) Increase of Guarantee Deposits Received Transfer of unclaimed dividends as Additional Paid-in Capital Net Cash In-Flow (Out-Flow) from Funding Activities Net increase (decrease) in cash and cash equivalents Beginning Balance of Cash and Cash Equivalents Ending Balance of Cash and Cash Equivalents

Unit: NT$ Thousand Notes January 1 to December31,2024 January 1 to December31,2023 ( $ 237,300 ) ( $ 527,651 ) 139,540 332,921 ( 410,400 ) ( 324,431 ) 72 - 6(30) ( 1,654,873 ) ( 2,732,591 ) 242 - ( 5,678 ) ( 27,996 ) 3,870 ( 1,431 ) ( 2,164,527 ) ( 3,281,179 ) 6(31) 4,933,506 4,395,672 6(31) ( 3,607,011 ) ( 4,370,623 ) 6(31) 900,000 930,631 6(31) ( 915,555 ) ( 855,368 ) 6(31) 498,730 797,338 ( 332,817 ) - 6(19) ( 373,491 ) ( 622,462 ) 6(17) - 591,688 6(31) ( 30,689 ) ( 33,119 ) 6(31) ( 47 ) 87 - ( 151 ) 1,072,626 833,693 80,875 ( 759,418 ) 451,993 1,211,411 $ 532,868$ 451,993

The attached notes to the standalone financial statements are part of the standalone financial report.

Manager: Lidon Chen

Chairman: Sean Chen

Accounting Officer: Yu-Ming Fan

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Taiwan Mask Corporation Notes to the Parent Only Financial Statements 2024 and 2023

Unit: NT$ Thousand (Unless otherwise specified)

I. Company History

Taiwan Mask Corporation (hereinafter referred to as the "Company") was established on October 21, 1988, and started its operations in March 1989. The Company was approved by the shareholders meeting on June 12, 2000 to acquire Shin-Tai Technology Co., Ltd., on the merger record date of December 1, 2000, with the Company being the surviving entity. The Company mainly engage in the research, development, manufacturing and sales of photomask, providing technical assistance, consultation, inspection and repair of the abovementioned products.

II. Date and procedures for passing the financial report

The accompanying parent-only financial statements were approved and authorized for issuance by the Board of Directors on March 12, 2025.

III. Newly Released and Amended Standards and Interpretations

• (I) The impact from adopting the newly released and revised IFRS and IAS recognized and issued into effect by the Financial Supervisory Commission (FSC).

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the IFRS and IAS recognized and issued into effect by the Financial Supervisory Commission in 2024:

Effective Date Issued by Newly released/corrected/amended standards and interpretations IASB Amendments to IFRS 16 - “Liabilities of Lease from the January 1, 2024 Leaseback” Amendment to IAS 1 "Classification of Liabilities as Current or January 1, 2024 Non-Current" Amendment to IAS 1 "Non-Current Liabilities With Covenants" January 1, 2024 Amendments to IAS 7 and IFRS 7 "Supplier Financing January 1, 2024 Arrangements"

The Company believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

• (II) Impact of the newly released and amended IFRS and IAS recognized by the FSC not yet adopted by the Company.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the IFRS and IAS recognized by the Financial Supervisory Commission in 2025:

Effective Date Issued by Newly released/corrected/amended standards and interpretations IASB Amendments to IAS No. 21 "Lack of Exchangeability" January 1, 2025

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The Company believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

(III) IFRS and IAS issued by the IASB but not yet recognized by the FSC.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the IFRS and IAS issued by the IASB but not yet recognized by the FSC:

Newly released/corrected/amended standards and interpretations Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7, Sale “Power Purchase Agreement” IFRS 10 and IAS 28 amendments, Sale or contribution of assets between an investor and its associate or joint venture IFRS 17 - Insurance contracts Amendment to IFRS 17 - Insurance contracts Amendments to IFRS 17 "First-time Adoption 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 Issued by IASB January 1, 2026 January 1, 2026 To be determined by the IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026

The Company believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance, except for the following:

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 “Presentation and Disclosure in Financial Statements” replaces IAS 1, updates the structure of comprehensive income statement, requires the disclosure of management-defined performance measures, and enhances the principles for grouping and classifying information for main financial statements and notes.

IV. Summary of significant accounting policies

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

(I) Compliance statement

These parent only financial statements of the Company have been prepared in accordance with the "Rules Governing the Preparation of Financial Statements by Securities Issuers".

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(II) Basis of Preparation

1. Except for the following items, these standalone financial statements have been prepared under the historical cost convention.

2. (1) Financial assets and financial liabilities at fair value through profit or loss (including derivatives).

3. (2) Financial Assets at Fair Value Through Other Comprehensive Income.

4. (3) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

5. The preparation of financial statements in conformity with IFRS, IAS, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(III) Foreign currency translation

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (the "functional currency"). The parent only financial statements are presented in New Taiwan dollars, which is the Company's functional currency and reporting currency.

1. Foreign currency transactions and balances

2. (1) Foreign currency transactions are translated into the functional currency using spot exchange rate at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

3. (2) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated using spot exchange rate at the balance sheet date. Exchange differences arising from re-translation at the balance sheet date are recognized in profit or loss.

4. (3) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated using spot exchange rate at the balance sheet date. Their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated using spot exchange at the balance sheet date. Their translation differences are recognized in other comprehensive income. For those which are not measured at fair value, they measured by the historical exchange rate of the initial transaction date.

5. (4) All foreign exchange gains and losses are presented in the statement of comprehensive income within "Other gains and losses".

6. Translation of foreign operations

7. (1) The operating results and financial position of all corporate group entities and affiliates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

   • A. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet.

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• B. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period.

• C. All resulting exchange differences are recognized in other comprehensive income.

• (2) When the foreign operation that is partially disposed of or sold is a subsidiary, the accumulated conversion difference recognized as other comprehensive income is reattributed to the foreign operation's non-controlling interests on a pro rata basis. However, even if the Company retains part of its equity in the former subsidiary, but has lost control of the subsidiary of the foreign operation, it will be treated with as a disposal of the entire equity of the foreign operation

• (3) Goodwill and fair value adjustments arising on acquisition of a foreign entity are regarded as assets and liabilities of the foreign entity, and are translated at the closing rate.

(IV) Classification of current and non-current items

1. Assets that meet one of the following criteria are classified as current assets:

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

3. (2) Assets held mainly for trading purposes.

4. (3) Assets that are expected to be realized within twelve months from the balance sheet date.

5. (4) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.

Assets that do not meet the above criteria are considered non-current.

1. Liabilities that meet one of the following criteria are classified as current liabilities:

2. (1) Liabilities that are expected to be paid off within the normal operating cycle.

3. (2) Assets held mainly for trading purposes.

4. (3) Liabilities that are to be paid off within twelve months from the balance sheet date.

5. (4) The right to defer settlement of the liability for at least twelve months after the reporting period is not held.

Liabilities that do not meet the above criteria are considered non-current.

(V) Cash equivalents

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

(VI) Financial Assets at Fair Value Through Profit or Loss

1. Refer to the financial assets that are not measured at amortized cost, or are measured at fair value through other comprehensive gain or loss.

2. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

3. The Company measures financial assets at fair value in initial recognition. The related transaction costs are recognized in profit and loss. These financial assets are subsequently re-measured and stated at fair value, and any changes in the fair value of these financial assets

~18~

are recognized in profit or loss.

1. When the right to receive dividends is established, the economic benefits associated with the dividends are likely to flow in, and the amount of dividends can be reliably measured, the Company recognizes dividend income in profit or loss.

(VII) Financial assets measured at amortized cost

1. Refer to those that meet the following criteria at the same time:

2. (1) The objective of the business model is achieved by collecting contractual cash flows.

3. (2) The assets’ contractual cash flows solely represent payments of principal and interest.

4. The Company holds time deposits that are not considered cash equivalents. Due to the short holding period, the impact of discounting is insignificant and is measured by the amount of investment.

(VIII) Accounts and notes receivable

1. Refers to accounts and notes that have been unconditionally charged for the right to exchange the value of the consideration due to the transfer of goods or services.

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

(IX) Impairment Loss of Financial Assets

Regarding the financial assets measured at amortized cost, accounts receivable or contract assets that contain significant financing components, the Company, on each balance sheet date, considers all reasonable and supportable information (including forward-looking ones) and measure the loss allowance based on the 12-month expected credit losses for those that do not have their credit risk increased significantly since initial recognition. For those that have increased significantly since initial recognition, the loss allowance is measured based on the full lifetime expected credit losses. A loss allowance for full lifetime expected credit losses is also required for contract assets or trade receivables that do not constitute a financing transaction.

(X) De-recognition of financial assets

A financial asset is derecognized when the Company's rights to receive cash flows from the financial assets have expired.

(XI) Lessor's lease transaction - Operating lease

Lease income from operating leases, less any incentives given to the lessee, is amortized in current profit or loss on a straight-line basis over the lease term.

(XII) Inventories

Inventories are measured at the lower of cost or net realizable value, and the cost is determined by weighted-average method. The cost of finished goods and work-in-progress comprises raw materials, direct labor, other direct costs and related production overheads (amortized according to normal production capacity), but excludes borrowing costs. At the end of year, inventories are evaluated at the lower of cost or net realizable value. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable costs of completion and selling expenses.

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(XIII) Investments accounted for using equity method - Subsidiaries and associates

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

2. Unrealized gains or losses on transactions between Company and its subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

3. The Company recognized the profit and loss upon the acquisition of subsidiaries as the current profit and loss. Other comprehensive profit and loss after the acquisition are recognized as the other comprehensive profit and loss. If the Company's recognized profit and loss of the subsidiaries equal to or exceed the equity in the subsidiaries, the Company will continue to recognize the loss in proportion to its shareholding.

4. Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are equity transactions, and they are considered as transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is directly recognized in equity.

5. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

6. Associates refer to entities over which the Company has significant influence but is not in control. In general, the associates may have more than 20% of their voting shares directly or indirectly owned by the Company. The Company accounts for its investment in associates using the equity method, and the investment is initially recognized at cost.

7. The Company recognizes the profit and loss upon the acquisition of associates as the current profit and loss. Other comprehensive profit and loss after the acquisition are recognized as the other comprehensive profit and loss. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company will not recognize further losses, unless it has incurred legal or constructive obligations or make payments on behalf of the associate.

8. If an associate has changes in equity not from profit or loss or other comprehensive income, and such changes do not affect the Company's shareholding in the associate, the Company will recognize all changes in equity attributable to the Company's share of the associate as "capital surplus" according to the shareholding percentage.

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

~20~

1. In the event that an associate issues new shares and the Company does not subscribe to or acquire the new shares in proportion, which results in a change to the Company's shareholding percentage but the Company maintains a significant influence on the associate, the increase or decrease of the Company's share of equity interest is the adjustment of "capital surplus" and "investments accounted for under the equity method". If the investment percentage is reduced, in addition to the above adjustments, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionally on the same basis as would be required if the relevant assets or liabilities were disposed of.

2. Pursuant to the “Guidelines Governing the Preparation of Financial Statements by Securities Issuers”, the profit or loss during the period and other comprehensive income presented in consolidated financial statements shall be the same as the allocations of profit or loss during the period and of other comprehensive income attributable to owners of the parent presented in the financial statements prepared on a consolidated basis, and the owners' equity presented in the parent company only financial statements shall be the same as the equity attributable to owners of the parent presented in the financial statements prepared on a consolidated basis.

(XIV) Property, plant and equipment

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

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

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

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

Buildings and structures	3 years to 56 years
Machinery and equipment	2 years to 16 years
Transportation equipment	5 years
Office equipment	3 years to 9 years

(XV) Leasing agreements (lessee) - Right-of-use assets/lease liabilities

1. Leases are recognized as right-of-use assets and lease liabilities at the date at which the leased assets are available for use by the Company. For short-term leases or leases of lowvalue assets, lease payments are recognized as expenses on a straight-line basis over the

~21~

lease term.

1. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments include fixed payments, less any lease incentives receivables.

The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of re-measurement is recognized as an adjustment to the rightof-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

1. At the commencement date, the right-of-use asset is recognized at cost which includes:

2. (1) The amount of initial measurement of lease liability.

3. (2) Any lease payments made at or before the commencement date.

4. (3) Any original direct costs incurred.

5. (4) The estimated cost of dismantling, removing the underlying asset and restoring its location, or restoring the underlying asset to the condition required in the lease terms and conditions.

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

(XVI) Real estate investment

Investment properties are initially measured at cost, and may be subsequently measured using a cost model. Except for land, the service life is recognized on a straight-line basis of depreciation and is about 45 years.

• (XVII) Intangible assets

Computer software is recognized at the cost of acquisition, and amortized based on the estimated useful life of 3 years based on the straight-line method.

(XVIII) Impairment of non-financial assets

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

(XIX) Borrowings

Refers to long- and short-term funds borrowed from banks and other long- and short-term borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

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(XX) Accounts and notes receivable

1. Refers to debts incurred as a result of the purchase of raw materials, goods or services and the notes payable due to business and non-business purposes.

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

(XXI) Convertible bonds payable

The convertible bonds payable issued by the Company are embedded with conversion options (i.e., the holder's right to choose to convert to the Company's common stock for a fixed amount of shares), put options and call options. The issuance price is classified as financial assets, financial liabilities or equity at the time of initial issuance according to the terms of issuance, which is treated as follows:

1. Embedded put options and call options: "Financial assets or liabilities at fair value through profit or loss" are recorded at their net fair value on initial recognition; subsequently, "Gain or loss on financial assets (liabilities) at fair value through profit or loss" is recognized on the balance sheet date, with the difference valued at current fair value.

2. Master contract of corporate bonds: The difference between the fair value of the corporate bonds and the redemption value is recognized as a premium or discount on the corporate bonds payable at the time of original recognition; subsequently, it is recognized in profit or loss as an adjustment to "finance costs" using the effective interest method under the amortization procedure over the circulation period.

3. Embedded conversion options (which meet the definition of equity): On initial recognition, the remaining value of the issue amount, net of the above "financial assets or liabilities at fair value through profit or loss" and "corporate bonds payable", is recorded as "capital surplus - stock options" and is not subsequently remeasured.

4. Any directly attributable transaction costs of the issuance are allocated to each component of liabilities and equity in proportion to the original carrying amount of each component mentioned above.

5. Upon conversion, the components of liabilities (including “corporate bonds payable” and “financial assets or liabilities at fair value through profit or loss”) are subsequently measured according to their respective classifications, and the carrying amount of the aforementioned components of liabilities is added to the carrying amount of “capital surplus - stock options” as the issuance cost of common stock exchanged.

(XXII) Employee benefits

1. Short-term employee benefits

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

1. Pension

2. (1) Defined contribution plans

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

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• (2) Defined-benefit plans

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

• B. Re-measurements arising on defined-benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. The related expenses of the past service cost are immediately recognized as profit and loss.

3. Termination benefits

Refer to when companies decide to terminate the employees before the normal retirement date, or when employees decide to accept the benefits in exchange for the termination. The Company recognizes expenses when it is no longer able to withdraw the offer of termination benefits or when the relevant restructuring costs are recognized, whichever is earlier. Liabilities that are not expected to be paid off within twelve months from the balance sheet date should be discounted.

1. Remuneration for employees and directors

Employees' bonuses and directors' remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

(XXIII) Share-based payment to employees

The share-based payment agreement for delivery of equity is a transaction in which employees' labor service received as consideration for the Company's equity instrument at fair value, and it is recognized as compensation costs during the vesting period, and the equity is adjusted accordingly. The fair value of equity instrument shall reflect the effects of vesting and non-vesting conditions of market value. The recognized remuneration costs are adjusted in accordance with the expected service conditions to be met and the nonvesting market value conditions, until the final recognized amount is recognized with the vesting amount on the vesting date.

(XXIV)

Income tax

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

2. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted by the balance sheet date in the countries where the Company

~24~

and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

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

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

(XXV)

Capital

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

2. When the Company buys back the issued shares, the consideration paid, including any directly attributable incremental costs, is recognized as a deduction of shareholders’ equity with the net amount after tax. When purchased shares are reissued, the difference between the consideration received and the book amount after deducting any directly attributable incremental costs and the impact of income tax is recognized as an adjustment to shareholders’ equity.

(XXVI) Dividend distribution

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities. Stock dividends are recorded as dividends to be distributed and transferred to be common stocks on the record date of issuance of new shares.

(XXVII) Recognized revenue

1. The Company mainly provides photomask manufacturing services. The actual services provided and fees will vary according to different customers. Prices are negotiated separately before providing services, and are based on the prevailing market price. The performance obligations identified based on customer contracts are mainly for photomask manufacturing services, and revenue is recognized by measuring the degree of completion of performance obligations during the period of service provision.

~25~

With the provision of photomask manufacturing services, the customer simultaneously receives and consumes the performance benefits, and the customer has control over the asset when the asset is created or enhanced. The Company’s performance does not create any assets available for other purposes and has the exercisable right to the amount that has been completely performed till now. The related revenue is recognized by measuring the degree of completion of the performance obligation during the service period. The photomask manufacturing service is based on the input of the technical staff on the basis of the service, and the progress of completion is measured based on the percentage of the incurred cost to the estimated total cost. After the agreed service or shipment is fulfilled for the contract agreement, a bill is issued, so the contract assets are recognized when the service provided, and transferred to account receivables when the customer agrees to the Company to issue the bill.

1. The time interval between the transfer products or services promised to customers and the customers' payment has not exceeded one year, so the Company has not adjusted the transaction price to reflect the time value of money.

(XXVIII) Government subsidies

Government subsidies are recognized at fair value once it is reasonably convinced that the Company complies with the conditions for subsidies and will be receiving the subsidies. If the nature of the government subsidies is to compensate the expenses incurred by the Company, the government subsidies are recognized as current gains and losses on a systematic basis during the period in which the related expenses are incurred.

V. Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

The preparation of these parent only financial statements requires the management to make critical judgments in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Please see the following explanation of critical accounting judgments and key sources of estimation and uncertainty:

(I) Important judgments adopted by the accounting policies

• None.

• (II) Critical accounting estimates and assumptions

• Evaluation of Inventories

The Company is primarily engaged in production and sale of photomask products in the semiconductor industry. Due to rapid technological innovations, short life-cycle and competition within the photomask industry, the risk of price fluctuations, Loss on decline in value of inventories and obsolescence is higher than that of other industries. The Company measures inventory based on the lower of cost and net realizable value. For inventories that are older than a certain period of inventory age or are outdated and obsolete, the Company must use judgment and estimation to determine the net realizable value of the inventory on the balance sheet date. The valuation of inventory may undergo major changes.

As of December 31, 2024, the book value of the Company’s inventory was NT$205,380.

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VI. Summary of Significant Accounting Items

(I) Cash and Cash Equivalents

	Cash and Cash Equivalents
		December 31, 2024		December	31, 2023
	Demand Deposit	$	529,376	$	421,288
	Time deposits		3,492		30,705
	Total	$	532,868	$	451,993
	1. The Company associates with a variety of financial institutions all with high credit quality
	to disperse credit risk, so it expects that the	probability of counterparty default			is remote.
	2. The Company has no cash and cash and cash equivalents pledged to others.
	Financial assets and liabilities at fair value through profit or loss
	Items	December 31, 2024		December	31, 2023
	Current items:
	Mandatory financial assets at fair value
	through profit or loss
	Shares of listed and OTC company	$	1,220,959	$	442,498
	Valuation adjustment	(	170,712)	(	45,158)
		$	1,050,247	$	397,340
	Financial liabilities mandatorily measured at
	fair value through profit or loss
	Convertible bond call/put options	($	19,204)	($	9,383)
	Non-current items:
	Mandatory financial assets at fair value through profit or loss
	Shares of listed and OTC company	$	87,400	$	866,133
	Shares of non-listed and non-OTC		12,500		12,500
	company
	Valuation adjustment	(	42,380)	(	18,671)
		$	57,520	$	859,962
	1. Details of financial assets/liabilities at fair value through profit or			loss recognized in profit
	or loss are as follows:
		2024		2023
	Financial assets mandatorily measured at
	fair value through profit or loss
	Shares of listed and OTC company	($	160,601)	$	13,256
	Shares of non-listed and non-OTC		11,328	(	908)
	company
	Convertible bond call/put options	(	10,028)	(	3,686)
		($	159,301)	$	8,662

(II) Financial assets and liabilities at fair value through profit or loss

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1. Please see Note 8 on how the Company provides financial assets at fair value through profit or loss as a pledged collateral.

2. Please see Note 12 (2) and (3) for the price risk and fair value information related to financial assets at fair value through profit or loss.

(III) Financial assets measured at amortized cost

Items Current items: Time deposits Non-current items: Demand Deposit Common corporate bonds Time deposits Total	December 31, 2024 $- $ 382,810 100,000 35,460 $ 518,270	December 31, 2023 $ 3,000 $ 373,550 $ - 43,954 $ 417,504

1. Financial assets at amortized cost is recognized in the profit or loss shown as follows:

Interest income	2024 $ 4,136	2023 $ 1,837

1. While not considering the collaterals or other credit enhancements, the financial assets at amortized cost held by the Company had the maximum exposure of credit risk at NT$518,270 and NT$420,504 as of December 31, 2024 and 2023, respectively.

2. Please see Note 8 how the Company provides financial assets at amortized cost as a pledged collateral.

(IV) Accounts receivable (Including related parties)

Accounts Receivables Accounts Receivables－Related Parties Less: Loss allowance	December 31, 2024 $ 800,742 5,612 806,354 ( 5,619) $ 800,735	December 31, 2023 $ 688,122 6,494 694,616 ( 2,324) $ 692,292

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1. Aging of accounts receivable is as follows:

Not past due Up to 30 days 31-90 days 91-180 days More than 181 days past due	December 31, 2024 $ 631,299 93,283 77,026 4,037 709 $ 806,354	December 31, 2023 $ 575,140 88,263 28,821 2,090 302
		$ 694,616

The above is an aging report based on the number of days past due.

1. As of December 31, 2024 and 2023, accounts receivable and notes receivable were from contracts with customers. The balances of notes and accounts receivable as of January 1, 2023 was NT$809,956.

2. While not considering collaterals or other credit enhancements, the accounts receivable held by the Company had the maximum exposure of credit risk at NT$800,735 and NT$692,292, respectively, as of December 31, 2024 and 2023.

3. Please refer to Note 12 (2) for the information on credit risk of accounts receivable.

(V) Inventories

December 31, 2024

	December 31, 2024
Raw materials Work in process Finished goods Total Raw materials Work in process Finished goods Total	Cost $ 186,297 24,704 3,748 $ 214,749 December 31, 2023 Cost $ 103,921 26,609 3,839 $ 134,369	(Gain from reversal of) loss allowance on decline in market value of inventories Book value ($ 9,369) $ 176,928 - 24,704 - 3,748 ($ 9,369) $ 205,380 (Gain from reversal of) loss allowance on decline in market value of inventories Book value ($ 4,794) $ 99,127 - 26,609 - 3,839 ($ 4,794) $ 129,575
		of inventories ($ 4,794) - - ($ 4,794)

The cost of inventories recognized as losses by the Company.

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Cost of goods sold Loss on falling prices of inventory and inventory obsolescence (gain from recovery) Loss on scrapping of inventory	2024 $ 2,828,528 4,575 - $ 2,833,103	2023 $ 2,318,607 ( 321) 4,278 $ 2,322,564

For 2024 and 2023, part of the inventory for which the provision for impairment losses had been made in the previous period was sold and scrapped, resulting in a gain from recovery.

(VI) Investment under Equity Method

SunnyLake Park International Holdings, Inc. TrueLight Corporation Youe Chung Capital Corporation Innova Vision INC. Advagene Biopharma Co., Ltd. Miracle Technology CO., LTD. Weida Hi-Tech Co., Ltd. ONE TEST SYSTEMS Pilot Battery Co., Ltd. Subtotal	2024 $ 5,938 388,848 207,987 ( 23,539) 46,599 471,901 25,851 86,458 86,166 $ 1,296,209	2023 $ 5,683 - 987,383 142,651 32,974 472,096 26,081 121,332 78,591 $ 1,866,791

1. For information on the Company’s subsidiaries, please refer to Note 4 (3) of 2024 consolidated financial statements.

2. In March 2024, the Company acquired 13,500 thousand shares of TrueLight Corporation through private placement with an investment amount of NT$410,400. As of December 31, 2024, the shareholding ratio was 12.11%, making the Group the single largest shareholder of the Company. However, the Group’s shareholding does not reach the statutory attendance percentage of shareholders meetings, indicating that the Company has no actual ability to direct relevant activities. Therefore, it is judged that the Company has no control over the company, and only has a significant influence on it.

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(VII) Property, plant and equipment

January 1, 2024 Cost Accumulated depreciation 2024 January 1 Additions Disposals - Cost Disposal - Accumulated depreciation Depreciation Reclassification - Cost Reclassification - Accumulated depreciation December 31 December 31, 2024 Cost Accumulated depreciation	Buildings and structures (including land) $ 2,184,268 ( 835,607) $ 1,348,661 $ 1,348,661 41,202 - - ( 203,253) 121,941 ( 6,768) $ 1,301,783 $ 2,347,411 ( 1,045,628) $ 1,301,783	Buildings and structures (including land)	Machinery and equipment $ 7,184,723 ( 2,096,348) $ 5,088,375 $ 5,088,375 517,882 - - ( 712,384) 837,710 - $ 5,731,583 $ 8,540,315 ( 2,808,732) $ 5,731,583	(	Office equipment $ 56,112 35,304) $ 20,808 $ 20,808 13,616 - - 12,027) - - $ 22,397 $ 69,728 47,331) $ 22,397	Transportation equipment $ 6,268 ( 2,408) $ 3,860 $ 3,860 500 ( 810) 608 ( 1,274) - - $ 2,884 $ 5,958 ( 3,074) $ 2,884	Other equipment $ 551,186 ( 161,505) $ 389,681 $ 389,681 173,250 - - ( 124,296) 30,709 - $ 469,344 $ 755,145 ( 285,801) $ 469,344	Unfinished construction and equipment under acceptance $ 1,010,828 - $ 1,010,828 $ 1,010,828 1,109,433 - - - ( 934,798) - $ 1,185,463 $ 1,185,463 - $ 1,185,463	Total $ 10,993,385 ( 3,131,172) $ 7,862,213 $ 7,862,213 1,855,883 ( 810) 608 ( 1,053,234) 55,562 ( 6,768) $ 8,713,454 $ 12,904,020 ( 4,190,566) $ 8,713,454
			$			$		$
			$ (	(		$ ( (		$ (
			$			$		$
			$ (	(		$ (		$
			$			$		$

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January 1, 2023 Cost Accumulated depreciation 2023 January 1 Additions Depreciation Reclassification - Cost Reclassification - Accumulated depreciation December 31 December 31, 2023 Cost Accumulated depreciation	Buildings and structures (including land) $ 1,884,128 ( 654,821) $ 1,229,307 $ 1,229,307 154,027 ( 171,556) 146,113 ( 9,230) $ 1,348,661 $ 2,184,268 ( 835,607) $ 1,348,661	(	Machinery and	Machinery and	Office equipment $ 43,591 ( 24,094) $ 19,497 $ 19,497 12,261 ( 11,210) 260 - $ 20,808 $ 56,112 ( 35,304) $ 20,808	Office equipment	Transportation equipment $ 6,292 ( 3,425) $ 2,867 $ 2,867 2,165 ( 1,172) - - $ 3,860 $ 6,268 ( 2,408) $ 3,860	Other equipment $ 315,058 ( 79,963) $ 235,095 $ 235,095 193,715 ( 81,542) 42,413 - $ 389,681 $ 551,186 ( 161,505) $ 389,681	Unfinished construction and equipment under acceptance Total $ 364,782 $ 7,140,164 - ( 2,377,836) $ 364,782 $ 4,762,328 $ 364,782 $ 4,762,328 978,499 3,841,764 - ( 746,295) ( 332,453) 13,646 - ( 9,230) $ 1,010,828 $ 7,862,213 $ 1,010,828 $ 10,993,385 - ( 3,131,172) $ 1,010,828 $ 7,862,213	Unfinished construction and equipment under acceptance Total $ 364,782 $ 7,140,164 - ( 2,377,836) $ 364,782 $ 4,762,328 $ 364,782 $ 4,762,328 978,499 3,841,764 - ( 746,295) ( 332,453) 13,646 - ( 9,230) $ 1,010,828 $ 7,862,213 $ 1,010,828 $ 10,993,385 - ( 3,131,172) $ 1,010,828 $ 7,862,213
			$	equipment 4,526,313 1,615,533) 2,910,780 2,910,780 2,501,097 480,815) 157,313 -					$	acceptance 364,782 - 364,782 364,782 978,499 - 332,453) - 1,010,828 1,010,828 - 1,010,828
			$				$		$
		(	$				$ (		$ (
			$	5,088,375 7,184,723 2,096,348) 5,088,375			$		$
		(	$				$ (		$
			$				$		$

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1. The Company had no interest capitalization in 2024 and 2023.

2. The major components of the Company's houses and buildings include land, buildings and factory renovation projects. Except for land, they are depreciated for 5 to 56 years.

3. Information on property, plant and equipment pledged to others as collateral is provided in Note 8.

4. The abovementioned property, plant and equipment of the Company are for self-use.

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(VIII) Leasing arrangements - lessee

1. The underlying assets leased by the Company include land, buildings and company vehicles, and the leasing contracts are typically made for periods of 3 to 20 years. Lease contracts are negotiated separately and include a variety of terms and conditions. There are no restrictions for the leased assets, except that they cannot be used as loan collaterals.

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

Land Buildings and structures Transportation equipment (company vehicles) Other equipment Land Buildings and structures Transportation equipment (company vehicles) Other equipment	December 31, 2024 Book value $ 331,679 3,442 7,566 59,087 $ 401,774 2024 Depreciation $ 22,786 1,147 5,769 3,930 $ 33,632	December 31, 2023 Book value $ 481,190 4,590 9,941 39,806 $ 535,527 2023 Depreciation $ 25,710 1,116 6,092 3,164 $ 36,082

1. For 2024 and 2023, the increases of right-of-use assets were NT$33,134 and NT$30,171, respectively. The decreases of right-of-use assets of the Company in 2024 and 2023 were NT$133,255 and NT$0, respectively.

2. The information on profit or loss items related to lease contracts is as follows:

Items affecting current profit and loss Interest expenses on lease liabilities Expenses for short-term lease contracts Lease of low-value assets Gain on lease modifications	2024 $ 6,672 405 570 1,295	2023 $ 7,046 619 806 -

1. The Company’s total cash outflow on leases for 2024 and 2023 was NT$38,336 and NT$41,590, respectively.

2. Options to extend or terminate leases

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In determining lease terms, the Company into consideration all facts and circumstances that create economic incentives to exercise an option to extend or terminate leases. The assessment of lease period is reviewed if a significant event occurs which affects the assessment of options to extend or options not to terminate.

• (IX) Leasing arrangements - lessor

• The Company leases out assets such buildings. The lease contracts are typically made for periods of 1 to 5 years. The terms of lease contracts are negotiated separately and include various terms and conditions. In order to preserve the condition of leased assets, the Group usually requires lessees not to pledge the underlying leased assets.

• The Company recognized rental income of NT$137,699 and NT$138,419 based on operating lease contracts in 2024 and 2023, respectively, and none of the lease contracts were variable lease payments.

• The maturity analysis of the lease payments under the operating leases is as follows:

2024 2025 After Y+6 years Total	December 31, 2024 $ - 69,245 - $ 69,245	December 31, 2023 $ 71,264 26,577 - $ 97,841

(X) Real estate investment

January 1, 2024 Cost Accumulated depreciation 2024 January 1 Reclassification - Cost Reclassification - Accumulated depreciation Depreciation December 31 December 31, 2024 Cost Accumulated depreciation	Buildings and structures $ 756,945 ( 94,091) $ 662,854 $ 662,854 ( 68,468) 6,772 ( 15,722) $ 585,436 $ 688,477 ( 103,041) $ 585,436

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Buildings and structures

January 1, 2023 Cost Accumulated depreciation 2023 January 1 Reclassification - Cost Reclassification - Accumulated depreciation Depreciation December 31 December 31, 2023 Cost Accumulated depreciation	$ 770,879 ( 87,133) $ 683,746 $ 683,746 ( 13,934) 9,230 ( 16,188) $ 662,854 $ 756,945 ( 94,091) $ 662,854

1. Rental income and direct operating expenses of investment real estate:

Rental income from investment property Direct operating expenses incurred by investment property that generates rental income for the period	2024 $ 137,699 $ 15,722	2023 $ 138,419 $ 18,744

1. The fair value of the investment property held by the Company as of December 31, 2024 and 2023 were NT$1,982,672 and NT$1,854,899, respectively. They were valuated using the income method and were of Level 3 fair value, and the major assumptions are as follows:

Discount rate Annual rent (net income) Number of years	December 31, 2024 3.36% $ 111,640 50	December 31, 2023 3.75% $ 119,675 31~56

1. No capitalization of interest for investment property in 2024 and 2023.

2. As of December 31, 2024 and 2023, the investment properties had been used as collaterals. Please refer to Note 8.

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(XI) Other Non-Current Assets

Prepayments for equipment Refundable Deposit	December 31, 2024 $ 339,826 6,284 $ 346,110	December 31, 2023 $ 348,993 10,154 $ 359,147

(XII) Short Term Loans

Type of borrowings Range of interest December 31, 2024 rate Collateral Bank borrowings Credit loan $ 1,886,478 1.87%~2.63% None Secured 520,000 Shares of listed and OTC borrowings 2.21%~2.53% company $ 2,406,478 Type of borrowings Range of interest December 31, 2023 rate Collateral Bank borrowings Credit loan $ 919,983 0.88%~2.26% None Secured 160,000 1.96% Shares of listed and OTC borrowings company $ 1,079,983

The interest expenses recognized in profit and loss in 2024 and 2023 were NT$36,677 and NT$25,937, respectively.

(XIII) Other Payables

Payable on machinery and equipment Director and supervisor remuneration and employee bonus payable Payroll and bonus payable Machine maintenance payable Others	December 31, 2024 $ 432,736 - 58,517 55,693 272,418 $ 819,364	December 31, 2023 $ 238,389 92,000 64,314 44,906 229,971 $ 669,580

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(XIV) Corporate bonds payable

Corporate bonds payable Less: Amount of exercised conversion options Less: Discount on corporate bonds payable Less: Corporate bonds with the put option exercised Less: Early redemption	December 31, 2024 $ 4,300,000 ( 325,200) ( 32,828) 3,941,972 ( 33,400) ( 299,416) $ 3,609,156	December 31, 2023 $ 3,800,000 ( 324,400) ( 51,000) 3,424,600 - - $ 3,424,600

1. The terms of issuance for the Company's 3rd domestic unsecured convertible bonds are as follows:

2. (1) The Company has been approved by the competent authority to raise and issue NT$2,000,000 of the 3rd domestic unsecured convertible bonds, with a coupon rate of 0% and an issuance period of 5 years from August 3, 2021 to August 3, 2026. The convertible bonds are repayable in cash at par value on maturity. The convertible bonds were listed for trading on August 3, 2021.

3. (2) The bondholders may request the conversion of the convertible bonds into the Company's common shares at any time from the day after the expiration of three months from the date of issuance of the corporate bonds to the maturity date, except during the period when the transfer of the corporate bonds is suspended in accordance with the regulations or laws, and the rights and obligations of the converted common shares are the same as those of the original issued common shares.

4. (3) The conversion price of the convertible bonds is determined in accordance with the pricing model stipulated in the Measures, and the conversion price will be adjusted in accordance with the pricing model stipulated in the Conversion Measures in the event that the Company is subject to anti-dilution provisions. The conversion price will be reset on the base date set by the Regulations in accordance with the pricing model stipulated in the Conversion Measures. As of December 31, 2024, the conversion price was NT$80.4 share.

5. (4) If the closing price of the Company's common stock exceeds 30% of the then conversion price for 30 consecutive business days from the day following the third month of the issuance of the convertible bonds to the 40th business day prior to the expiration of the issuance period, the Company may redeem the outstanding corporate bonds within the next 30 business days at the par value of the corporate bonds in cash.

6. (5) If the outstanding balance of the convertible bonds is less than 10% of the total par value of the corporate bonds issued, the Company may redeem the convertible bonds at any time thereafter for cash at the par value of the corporate bonds, from the day following the third month of the issuance of the corporate bonds to the 40th business day prior to the expiration of the issuance period.

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• (6) As of December 31, 2024, a total amount of NT$325,200 had been converted into 3,742 thousand shares of common stock.

• (7) As of December 31, 2024, 334 convertible bonds were repurchased at the price of NT$100 thousand; the repurchase amount was NT$33,400.

• Upon issuance of convertible bonds, the Company separated the conversion options from the components of liabilities in accordance with IAS 32, “Financial Instruments: Presentation”, and recorded “capital surplus - stock options” at NT$406,616. The embedded repurchase and repurchase rights are separated from the principal contractual debt instruments in accordance with IFRS 9, "Financial Instruments", because they are not closely related to the economic characteristics and risks of the principal contractual debt instruments, and are recorded as "financial assets or liabilities at fair value through profit or loss" on a net basis. The effective interest rate of the master contract debt after the separation was 0.0902%.

• First series domestic secured corporate bonds

In order to raise the Company's working capital, the board of directors resolved to approve on August 5, 2022 the issue of the first series domestic secured corporate bond. The issue has been reported to and approved by the Taipei Exchange, and the terms are as follows:

• (1) Total amount of issue: According to the different issue conditions, there are two types of bonds, A and B, of which A is issued with an amount of NT$300,000, and B is issued with an amount of NT$200,000, totaling NT$500,000.

• (2) Issue period: Five years, issued on September 28, 2022, and matured on September 28, 2027.

• (3) Coupon rate and repayment method of principal and interest: Both Bond A and Bond B have a fixed annual coupon rate of 1.80%. Simple interest is calculated and paid once a year, and the principal is repaid in cash at the face value of the bond at maturity.

• (4) Guarantee method: The Company's bonds are guaranteed by the joint delegation guarantee contract signed and the obligation and the contract of guarantee for the performance of corporate bonds signed by major banks.

• Second series domestic secured convertible corporate bonds

In order to raise the Company's working capital, the board of directors resolved to approve on August 5, 2022 the issue of the second series domestic secured corporate bond. The issue has been reported to and approved by the Taipei Exchange, and the terms are as follows:

• (1) Total amount of issue: According to the different issue conditions, there are two types of bonds, A and B, of which A is issued with an amount of NT$200,000, and B is issued with an amount of NT$300,000, totaling NT$500,000.

• (2) Issue period: Five years, issued on December 27, 2022, and matured on December 27, 2027.

• (3) Coupon rate and repayment method of principal and interest: Bond A has a fixed annual coupon rate of 2.20% and Bond B has a fixed annual coupon rate of 2.38%. Simple interest is calculated and paid once a year, and the principal is repaid in cash at the face value of the bond at maturity.

• (4) Guarantee method: The Company's bonds are guaranteed by the joint delegation guarantee contract signed and the obligation and the contract of guarantee for the

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performance of corporate bonds signed by major banks.

• (5) Upon the resolution of the Group's board of directors on May 27, 2024, the Chairman was authorized to repurchase all the second series domestic secured convertible corporate bonds B issued by the Company in 2022 from the securities dealer's office for cancellation and delisting. As the early repurchase was near the expiration of principal repayment of NT$300,000 on June 24, the delisting from Taipei Exchange was determined to be done on June 25, 2024.

• Third series domestic secured convertible corporate bonds

In order to raise the Company's working capital, the board of directors resolved to approve on August 4, 2023 the issue of the third series domestic secured corporate bond. The issue has been reported to and approved by the Taipei Exchange, and the terms are as follows:

• (1) Total amount issued: NT$300,000 in total.

• (2) Issuance period: Five years from issuance on August 28, 2023 to expiration on August 28, 2028.

• (3) Coupon rate and method of repayment of principal and interest: The coupon rate is a fixed interest rate of 1.62% per annum, and this simple interest is calculated once a year. At maturity, the principal is repaid in cash based on the face value of the bond.

• (4) Guarantee method: The Company's bonds are guaranteed by the joint delegation guarantee contract signed and the obligation and the contract of guarantee for the performance of corporate bonds signed by major banks.

• Fourth series domestic secured convertible corporate bonds

In order to raise the Company's working capital, the board of directors resolved to approve on August 4, 2023 the issue of the fourth series domestic secured corporate bond. The issue has been reported to and approved by the Taipei Exchange, and the terms are as follows:

• (1) Total amount issued: NT$500,000 in total.

• (2) Issuance period: Five years from issuance on December 12, 2023 to expiration on December 12, 2028.

• (3) Coupon rate and method of repayment of principal and interest: The coupon rate is a fixed interest rate of 1.8% per annum, and this simple interest is calculated once a year. At maturity, the principal is repaid in cash based on the face value of the bond.

• (4) Guarantee method: The Company's bonds are guaranteed by the joint delegation guarantee contract signed and the obligation and the contract of guarantee for the performance of corporate bonds signed by major banks.

• Fifth series domestic secured convertible corporate bonds

In order to raise the Group's working capital, the board of directors resolved to approve on August 1, 2024 the issue of the fifth series domestic secured convertible corporate bond. The issue has been reported to and approved by the Taipei Exchange, and the terms are as follows:

• (1) Total amount issued: NT$500,000 in total.

• (2) Issuance period: Five years from issuance on August 1, 2024 to expiration on August 1, 2029.

• (3) Coupon rate and method of repayment of principal and interest: The coupon rate is a

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fixed interest rate of 2.2% per annum, and the simple interest is calculated once a year. At maturity, the principal is repaid in cash based on the face value of the bond.

• (4) Guarantee method: The Company's bonds are guaranteed by the joint delegation guarantee contract signed and the obligation and the contract of guarantee for the performance of corporate bonds signed by major banks.

(XV) Long-term Loans

Type of borrowings Borrowing period and payment method Long-term bank borrowings Secured borrowings From January 28, 2022 to January 27, 2027, to be repaid in installments and installments over the agreed period Secured borrowings From December 21, 2022 to May 20, 2029, to be repaid in installments and installments over the agreed period Secured borrowings From December 27, 2022 to August 23, 2029, to be repaid in installments and installments over the agreed period Other long-term borrowings Secured borrowings Repayable in portions and in installments during the term specified in the agreement from May 22, 2023 to May 31, 2027 Less: Current portion of long-term borrowings	Range of interest rate 2.67% 2.30%~ 2.93% 2.30%~ 2.57% 3.58%	Collateral Houses and buildings, machinery equipment and investment property Machinery and equipment Houses and buildings and investment property Machinery and equipment	December 31, 2024 $ 750,000 1,060,000 1,215,790 466,640 -
			3,492,430 ( 857,444) $ 2,634,986

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Type of borrowings Borrowing period and payment method Range of interest rate Long-term bank borrowings Secured borrowings From December 28, 2021 to January 28, 2027, to be repaid in installments and installments over the agreed period 2.55% Secured borrowings From December 27, 2021 to December 27, 2027, to be repaid in installments and installments over the agreed period 2.25%~ 2.80% Secured borrowings From December 27, 2021 to December 27, 2032, to be repaid in installments and installments over the agreed period 2.20%~ 2.55% Other long-term borrowings Secured borrowings Repayable in portions and in installments during the term specified in the agreement from May 22, 2023 to May 31, 2027 3.58% Less: Current portion of long-term borrowings	Borrowing period and payment method	Range of	Collateral Houses and buildings and machine and equipment Machinery and equipment Houses and buildings and investment property Machinery and equipment	December 31, 2023 $ 1,000,000 900,000 1,005,263 560,000 - 3,465,263 ( 872,834)
				$ 2,592,429

(XVI) Pensions

1. (1) The Company operates a defined-benefit pension plan in accordance with the Labor Standards Act, which cover all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last six months prior to retirement. The Company contributes a monthly amount equal to 2%

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of employees’ monthly salaries and wages to a retirement fund at the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contribution for the deficit by the end of next March.

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

Present value of defined benefit obligations Fair value of plan assets Defined Benefit Liabilities	December 31, 2024 ($ 22,527) 15,575 ($ 6,952)	December 31, 2023 ($ 22,650) 12,417 ($ 10,233)

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

2024 Balance on January 1 Current service cost Interest (expense) income Re-measurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension Balance on December 31	Present value of defined benefit obligations ($ 22,650) ( 139) ( 294) ( 23,083) - 718 ( 1,326) ( 608) - 1,164 ($ 22,527)	Fair value of plan assets $ 12,417 - 174 12,591 845 - - 845 3,303 ( 1,164) $ 15,575	Defined Benefit Liabilities ($ 10,233) ( 139) ( 120) ( 10,492) 845 718 ( 1,326) 237 3,303 - ($ 6,952)

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Present value of defined benefit obligations 2023 Balance on January 1 ($ 21,153) Current service cost - Interest (expense) income ( 296) ( 21,449) Re-measurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions ( 251) Experience adjustments ( 950) ( 1,201) Pension fund contribution - Paid pension - Balance on December 31($ 22,650)	Fair value of plan assets $ 4,947 - 84 5,031 56 - - 56 7,330 - $ 12,417	Defined Benefit Liabilities ($ 16,206) - ( 212) ( 16,418) 56 ( 251) ( 950) ( 1,145) 7,330 - ($ 10,233)

• (4) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings are less than the aforementioned rates, government shall make payments for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating the fund and hence the Company is unable to disclose the classification of fair value of plan asset in accordance with IAS19 paragraph 142. The composition of fair value of plan assets as of December 31, 2024 and 2023 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

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

Discount rate Future salary increases	2024 1.6% 2.215%	2023 1.3% 2.125%

The assumptions for future mortality rates for the years 2024 and 2023 are estimated based on the Sixth Taiwan Life Insurance Experience Mortality Table

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

	Discount rate		Future salary increases	Future salary increases
	0.25% increase	0.25% decrease	0.25% increase	0.25% decrease
December 31, 2024
Effect on present value
of defined benefit
obligation	($ 608)	$ 629	$ 611	($ 593)
December 31, 2023
Effect on present value
of defined benefit
obligation	($ 637)	$ 661	$ 640	($ 620)

The sensitivity analysis above analyzes the impact from changing one of the assumptions while others remain constant. In practice, more than one assumption may change all at once. The sensitivity analysis is the same with the method used to calculate the net pension liabilities of the balance sheet.

• (6) The expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2025 are NT$2,133.

• (7) As of December 31, 2024, the weighted average duration of the retirement plan is 12 years.

• (1) Starting July 1, 2005, the Company has established a retirement plan based on the Labor Pension Act applicable to the domestic employees. Under the new plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

• (2) For 2024 and 2023, the pension costs recognized by the Company in accordance with the abovementioned pension measures were NT$17,223 and NT$14,779, respectively.

(XVII) Capital

1. As of December 31, 2024, the Company’s authorized capital was NT$5,000,000, consisting of 500,000 thousand shares (including 20,000 thousand shares which can be subscribed to as employee stock options). The paid-in capital was NT$2,564,562 with a value of NT$10. All proceeds from shares issued have been collected.

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The movements in the number of the Company's common stocks outstanding are as follows:

January 1 Subsidiaries donated treasury stock Treasury stocks transfer to employees Conversion of corporate bonds December 31	2024 213,153 500 - 10 213,663	Unit: Thousand shares 2023 205,230 900 7,023 - 213,153

2. Treasury stock

(1) Reasons for repurchase of shares and changes in the quantity:

Company name of the shareholding Subsidiary - Youe Chung Capital Corporation The Company Company name of the shareholding Subsidiary - Youe Chung Capital Corporation The Company	Reasons for buyback Subsidiary holds the company's stock Transfer shares to employees Reasons for buyback Subsidiary holds the company's stock Transfer shares to employees	December 31, 2024 Number of shares (thousand) Book value 35,331 $ 502,776 7,462 664,593 42,793 $ 1,167,369 December 31, 2023 Number of shares (thousand) Book value 35,831 $ 509,891 7,462 664,593 43,293 $ 1,174,484	December 31, 2024 Number of shares (thousand) Book value 35,331 $ 502,776 7,462 664,593 42,793 $ 1,167,369 December 31, 2023 Number of shares (thousand) Book value 35,831 $ 509,891 7,462 664,593 43,293 $ 1,174,484
		Number of shares (thousand) 35,831 7,462 43,293
			$ 1,174,484

• (2) For 2024 and 2023, the Company’s share-based payment arrangements were as follows:

Type of arrangement Transfer of treasury shares to employees	Grant date 2023.04.19	Quantity	Contract Period Immediate vesting	Vesting conditions Note
		granted 10,000

Note: The Company grants treasury stocks to employees of the Company and its subsidiaries.

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• (3) The Securities and Exchange Act stipulates that the percentage of the Company's repurchase of outstanding shares shall not exceed 10% of the Company's total issued shares, and the total value of shares purchased shall not exceed the retained earnings plus the premium of issued shares and the amount of realized capital reserve.

• (4) The treasury stocks bought back by the Company in accordance with the Securities and Exchange Act shall not be pledged. Before transfer, shareholders are not entitled to the shareholders' rights.

• (5) According to the provisions of the Securities and Exchange Act, the share repurchased to be transferred to employees shall be transferred within 5 years from the date of the purchase. If the transfer is not made within the time limit, the shares are deemed as unissued shares, and change of registration shall be made to cancel the shares. In order to maintain the Company’s credit and shareholders equity, the shares bought back should have the registration changed to cancel the shares within six months from the date of the purchase.

• (6) The Company's stock held by the subsidiary Youe Chung Capital is treated as treasury stock. As of December 31, 2024 and 2023, Youe Chung Capital held 35,331 thousand shares and 35,831 thousand shares, respectively, of the Company. The average book value per share was NT$14.23, and the fair value per share was NT$49.25 and NT$71.1, respectively. The cost of transferring treasury stocks is calculated based on the book value of the Company's stock held by Youe Chung Capital and the Company's indirect shareholding during each period.

• (7) On November 3, 2021, the Board of Directors resolved to purchase 6,000 thousand shares of the Company’s stock in the centralized trading market and transfer them to employees. This amount represented 2.37% of the total number of issued shares of the Company. The repurchase of 4,485 thousand shares was completed between November 4, 2021 and January 3, 2022. On January 21, 2022, the Board of Directors approved the transfer of 4,485 thousand shares to employees.

• (8) On May 6, 2022, the Board of Directors resolved to purchase 10,000 thousand shares of the Company’s stock in the centralized trading market and transfer them to employees. This amount represented 3.91% of the total number of issued shares of the Company. The repurchase of 10,000 thousand shares was completed between May 9, 2022 and July 8, 2022. On April 14, 2023, the Board of Directors approved the transfer of 10,000 thousand shares to employees, of which 7,023 thousand shares were transferred to employees in June 2023.

(XVIII) Capital surplus

In accordance with the Company Act, any capital surplus arising from paid-in capital in excess of the par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the Securities and Exchange Act requires that the amount of capital surplus to be capitalized, as above, should not exceed 10% of paid-in capital each year. Capital reserves should not be used to cover accumulated deficit unless the legal reserve is insufficient. The following is a breakdown of the capital reserve:

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January 1, 2024 Conversion of convertible bonds Redemption of convertible bonds Adjustment of capital reserve by dividends paid to subsidiaries Changes in ownership interests in subsidiaries recognized Changes in shares of affiliates recognized under the equity method December 31, 2024	January 1, 2024 Conversion of convertible bonds Redemption of convertible bonds Adjustment of capital reserve by dividends paid to subsidiaries Changes in ownership interests in subsidiaries recognized Changes in shares of affiliates recognized under the equity method December 31, 2024	Issue premiums $ 44,148 849 - - - -	Trading of treasury stock Changes in ownership interests in subsidiaries recognized $859,338 $ 154,097 - - - - 52,997 - - 1,196 - - $912,335 $ 155,293	stock option $295,848 ( 163) ( 6,790) - - - $288,895	stock option	Equity changes in affiliates $ 82,220 - - - - 37,165 $ 119,385	$
			$859,338 - - 52,997 - - $912,335
		$ 44,997

Issue premiums Trading of treasury stock Changes in ownership interests in subsidiaries recognized January 1, 2023 $ 96,650 $768,509 $ 17,788 Distribution of cash from capital surplus ( 49,797) - - Adjustment of capital reserve by dividends paid to subsidiaries - 90,829 - Changes in ownership interests in subsidiaries recognized ( 2,705) - 136,309 Changes in shares of affiliates recognized under the equity method - - - Payment of overdue unclaimed dividends to shareholders - - - December 31, 2023 $ 44,148 $859,338 $ 154,097		stock option	Equity changes in affiliates $ 68,427 - - - 13,793 - $ 82,220	Others $4,459 - - - - ( 151) $4,308	Total $1,251,681 ( 49,797) 90,829 133,604 13,793 ( 151) $1,439,959
		$295,848 - - - - - $295,848

(XIX) Retained earnings

1. According to the Articles of Incorporation, any surplus from profit concluded at the end of year by the Company is first subject to reimbursement of previous losses and payment of taxes, followed by 10% provision for legal reserve and provision or reversal of special reserve as the laws may require. Any earnings remaining shall be distributed as shareholders’ dividends in whole or partially.

2. The Company takes into account the overall business environment, industrial growth, and the Company's long-term financial planning for stable operation and development to adopt a residual dividend policy, which is mainly based on the Company's future capital budgeting plan to measure the annual capital needs. After using the retained earnings for funding, the remaining surplus will be distributed in the form of dividends, and the

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distribution steps are shown as follows:

• (1) Decide on the best capital budgeting.

• (2) Decide on the financing required for one of the capital budgeting items.

• (3) Decide on the amount of the financing to be supported by retained earnings (methods such as cash capital increase or corporate bonds and so on can be adopted as support).

• (4) After retaining the portion required for operation needs out of the earnings remainder, the rest should be distributed to shareholders in the form of dividends. Cash dividends distribution proportion should not be lower than 20% of the total amount of dividends for the distribution proportion of the Company’s dividends.

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

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

• The Company’s Board of Directors approved the proposal for covering the losses in 2024 on March 12, 2025.

• The Company's shareholders’ meeting resolved on May 27, 2024 to distribute a cash dividend of NT$1.50 per common share from the 2023 earnings, with a total dividend of NT$373,477. In addition, due to the conversion of convertible bonds, the number of the Company’s outstanding shares changed to 248,994 thousand shares (excluding the treasury stock of 7,462 thousand shares). With the cash dividends remained at NT$1.5 per share, the total amount of cash dividends distributed from earnings in 2023 was adjusted to NT$373,491.

(XX) Other equity interests

her equity interests
January 1 Difference in foreign currency translation December 31 January 1 Difference in foreign currency translation December 31	2024 Unrealized gains and losses ($ 2,666) - ($ 2,666) 2023 Unrealized gains and losses ($ 2,666) - ($ 2,666)	Foreign currency translation $ 4,307 18,507	Total $ 1,641 18,507 $ 20,148 Total $ 10,508 ( 8,867) $ 1,641
		$ 22,814
		Foreign currency translation $ 13,174 ( 8,867) $ 4,307

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(XXI) Operating income

Revenue from contracts with customers	2024 $ 4,260,484	2023 $ 3,985,541

1. Segmentation of revenue from contracts with customers

The Company derives its revenue from the transfer of goods and services either over time. The revenue can be divided into the following main product lines:

2024 Revenue from contracts with external customers Cut-off point of income recognition Income recognized gradually over time	Photomask and semiconductor segment
	$ 4,260,484 $ 4,260,484

2023 Revenue from contracts with external customers Cut-off point of income recognition Income recognized gradually over time	Photomask and semiconductor segment
	$ 3,985,541 $ 3,985,541

1. Contract Asset and Contract Liability

2. (1) The Company has recognized the following revenue-related contract assets and contract liabilities:

Contract Assets Contract Liabilities	December 31, 2024	December 31, 2023	January 1, 2023 $ 90,642
	$ 76,496 $ 13,611	$ 86,821 $ 33,984
			$ 57,323

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

Opening balance of contract liabilities recognized in the current period	2024 $ 3,087	2023 $ 1,704

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(XXII) Interest income

Interest from bank deposits Interest income from financial assets measured at amortized cost Other interest incomes	2024 $ 14,426 4,136 113 $ 18,675	2023 $ 25,360 1,837 119
		$ 27,316

(XXIII) Other Incomes

(XXIV)	Rental income Dividend income Subsidy income Other income - Others Other Gains and Losses Disposal of interests in property, plant and equipment Gain on lease modifications Foreign currency exchange gain (loss) Net loss/profit of financial assets and liabilities at fair value through profit or loss Goodwill impairment loss Other losses -- Depreciation of investment properties Other Gains and Losses	2024 $ 137,699 50,497 - 7,840 $ 196,036 2024 $ 40 1,295 28,170 ( 159,234) ( 27,002) ( 15,722) ( 478) ($ 172,931)	2023 $ 138,419 51,566 5,335 9,253 $ 204,573 2023 $ - - ( 636) 8,662 ( 16,188) - ($ 8,162)

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(XXV) Financial Costs

Interest expenses: Bank borrowings Convertible bonds Lease liabilities Others	2024 $ 128,539 64,715 6,672 119 $ 200,045	2023 $ 111,935 43,376 7,046 49 $ 162,406

(XXVI) Expenses by nature

2024 Employee benefits expenditure $ 481,403 Depreciation expense (Note) 1,102,588 Amortization expense 23,067 Note: Including investment property and right-of-use assets	2023 $ 516,888 798,565 24,041

(XXVII) Employee benefits expenditure

Payroll expenses Labor and health insurance fees Pension expense Other personnel expenses	2024 $ 399,422 39,624 17,343 25,014 $ 481,403	2023 $ 441,770 34,816 14,991 25,311 $ 516,888

1. According to the Articles of Incorporation, the Company shall distribute not less than 10% of the current year’s profit situation for employee remuneration and not more than 2% of current year’s profit situation for director remuneration. However, profits must first be taken to offset against cumulative losses, if any.

2. For 2024 and 2023, employee remuneration was accrued at NT$0 and NT$80,000, respectively, and director remunerations was accrued at NT$0 and NT$12,000, respectively. The amounts were listed as payroll expenses.

The remuneration of employees and directors for 2024 and 2023 were estimated in accordance with the Articles of Incorporation taking the annual profit into account.

The 2024 and 2022 remuneration for employees, directors as resolved by the Board of Directors are consistent with the amounts recognized in the 2024 and 2023 financial statements.

Information about employees remuneration and director remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post

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System”.

(XXVIII) Income tax

1. Income tax expense

Components of income tax expense:

	2024		2023
Current tax:
Current tax on profits for the year	$	153,467	$	182,991
Underestimation (overestimation) of	(	764)		70,339
income tax in previous years
Impact tax deductibles of investment	(	50,000)		-
Total current tax		102,703		253,330
Deferred income tax:
Origination and reversal of temporary	(	7,920)	(	7,161)
differences
Total Deferred Income Tax	(	7,920)	(	7,161)
Income Tax Expense	$	94,783	$	246,169
Reconciliation between income tax expense and accounting			profit
	2024		2023
Tax calculated based on profit before	($	36,209)	$	122,459
tax and statutory tax rate
Impact tax deductibles of investment	(	50,000)	(	50,000)
Fees excluded according to the tax		181,756		113,684
law
Tax-exempt income under the tax law		-	(	10,313)
Over provision of prior year's income	(	764)		70,339
tax
Income Tax Expense	$	94,783	$	246,169

2. Reconciliation between income tax expense and accounting profit

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

Temporary differences: - Deferred income tax assets: Pension liabilities Loss on inventory Interest on corporate bonds Amortization of bond issue costs Unrealized exchange loss Subtotal - Deferred income tax liabilities: Unrealized gain on exchange Subtotal Total Temporary differences: - Deferred income tax assets: Pension liabilities Loss on inventory Unrealized exchange loss Subtotal - Deferred income tax liabilities: Unrealized gain on exchange Total	2024 January 1 $ 2,047 959 - - 2,304	Recognized in	Recognized in other comprehensive	Recognized in	December 31 $ 1,391 1,874 $ 3,732 ( 244) 6,258 $ 13,011 $- - $ 13,011 December 31 $ 2,047 959 2,304 $ 5,310 ($ 219) $ 5,091
		profit or loss ($ 656) 915 3,732 ( 244) 3,954 $ 7,701 $ 219 219 $ 7,920 Recognized in	income $ - - - - - $- $- - $- Recognized in other comprehensive	equity $ - - - - - $- $- - $- Recognized in
	$ 5,310
	($ 219)
	( 219)
	$ 5,091
	2023 January 1 $ - - 1,780
		profit or loss $ 2,047 959 524 $ 3,530 $ 3,631 $ 7,161	income $ - - - $- $- $-	equity $ - - - $- $- $-
	$ 1,780
	($ 3,850) ($ 2,070)

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1. Deductible temporary difference not recognized as deferred income tax assets

Deductible temporary difference	December 31, 2024 $ 110,261	December 31, 2023 $ 100,350

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

(XXIX) Earnings (loss) per share

Basic and diluted loss per share Net loss attributable to common stock shareholders for the period Earnings per share Profit attributable to ordinary shareholders Diluted Earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Convertible bonds Employee remuneration Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	2024 Amount after tax ($ 472,521) 2023 Amount after tax $ 366,126 $ 366,126 14,029 - $ 380,155		Weighted average share outstanding (thousand shares) 213,570 Weighted average share outstanding (thousand shares) 209,180 209,180 20,335 1,331 230,846	Loss per share (TWD) ($ 2.21) Loss per share (TWD) $ 1.75 $ 1.65	Loss per share (TWD) ($ 2.21) Loss per share (TWD) $ 1.75 $ 1.65
					(TWD) 1.75 1.65
				$

The weighted-average number of shares outstanding for 2024, and 2023 was net of the number of Company’s shares held by the Company and its subsidiary - Youe Chung Capital Corporation as treasury stock (the number of shares was calculated based on the Company’s ownership ratio). The diluted loss per share was equal to basic loss per share because there was no dilutive effect on potential common stock for 2024 because of the loss.

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(XXX) Supplemental cash flow information

Investing activities with partial cash payments:

Purchase of property, plant and equipment Add: Opening balance of payable on equipment Prepayments for equipment at the end of the period Less: Ending balance of payable on equipment Prepayments for equipment at the beginning of the period Cash paid during the year	2024 $ 1,855,883 240,893 339,826 ( 432,736) ( 348,993) $ 1,654,873	2023 $ 3,841,764 105,604 348,993 ( 240,893) ( 1,322,877) $ 2,732,591

(XXXI) Changes in liabilities arising from financing activities

January 1, 2024 Change in cash flow from financing activities Interest Expenses Interest Paid Other Non-Cash Transactions December 31, 2024	Short Term Loans $1,079,983 1,326,495 - - -	Corporate bonds payable $3,424,600 165,751 64,715 ( 45,975) 65	Long-term borrowings (including current portion) $3,465,263 ( 15,555) - - 42,722	Lease liabilities $546,375 ( 30,689) 6,672 ( 6,672) ( 101,415) $414,271	Guarantee Deposits Received $ 33,961 ( 47) - - - $ 33,914	Total liabilities
						arising from financing activities $ 8,550,182 1,445,955 71,387 ( 52,647) ( 58,628) $ 9,956,249
	$2,406,478	$3,609,156	$3,492,430

January 1, 2023 Change in cash flow from financing activities Interest Expenses Interest Paid Other Non-Cash Transactions December 31, 2023	Short Term Loans $1,054,934 25,049 - - - $1,079,983	Corporate bonds	Long-term borrowings (including current portion) $3,390,000 75,263 - - -	Lease liabilities $549,323 ( 33,119) 7,046 ( 7,046) 30,171 $546,375	Guarantee Deposits Received $33,874 87 - - - $33,961	Total liabilities arising from financing activities $7,637,175 864,618 50,422 ( 27,586) 25,553
		payable $2,609,044 797,338 43,376 ( 20,540) ( 4,618) $3,424,600
			$3,465,263			$8,550,182

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VII. Related Party Transactions

(I) Related parties' names and relationship

Name of the related parties Miracle Technology CO., LTD. Youe Chung Capital Corporation Innova Vision INC. Aptos Technology INC. Miracle International Enterprise(Shanghai) Co., Ltd. Xsense Technology Corporation (B.V.I.) Taiwan Branch Digital-Can Tech. Co., Ltd. ADL Energy Corp Pilot Battery Co., Ltd. Weida Hi-Tech Co., Ltd. TrueLight Corporation YLTLink Technology Corporation Taiwan Mask Charity Foundation BKS Tec Corp.

Relationship with the Company

Subsidiary Subsidiary Subsidiary 2nd-tier subsidiary 2nd-tier subsidiary 2nd-tier subsidiary 2nd-tier subsidiary 2nd-tier subsidiary Subsidiary Affiliates Affiliate (Note 1) Affiliate (Note 2) Other related party Other related party

• Note 1: TrueLight re-elected the directors of the Board of directors on May 30, 2024. The Chairman of the Board of directors is the CEO and General Manager of the Company, and the company is an affiliate of the Company.

• Note 2: YLTLink Technology Corporation is a subsidiary of TrueLight Corporation. The Chairman of the Board of directors and the CEO and General Manager of the Company are the same person.

(II) Significant transactions with the related parties

1. Operating revenue

Product sales: Subsidiary 2nd-tier subsidiary Affiliates	2024 $ 5,500 15,716 9,621 $ 30,837	2023 $ 11,716 23,415 1,336 $ 36,467

There are no major abnormalities in the transaction prices and payment terms of the related party compared to that of non-related parties.

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2. Account receivable from related parties.

Accounts Receivables: Subsidiary 2nd-tier subsidiary Affiliates Subtotal Other Receivables: Youe Chung Capital Corporation Innova Vision INC. Subsidiary Aptos Technology INC. 2nd-tier subsidiary Affiliates Other related party Subtotal Total	December 31, 2024 $ 1,432 1,811 2,369	December 31, 2023 $ 1,629 4,865 - 6,494 - 28,883 278 35,350 26,022 - 407 90,940 $ 97,434
	5,612
	300,000 128,094 - 165,937 7,100 501 805
	602,437
	$ 608,049

3. Other Payables - Related Parties

Other Payables: Digital-Can Tech. Co., Ltd. 2nd-tier subsidiary Subtotal Total Acquisition of other assets Account item Digital-Can Tech. Co., Ltd. Fixed assets 2nd-tier subsidiary Fixed assets Total	December 31, 2024 December 31, 2023 $ 704 $ 2,505 89 1,626 793 4,131 $ 793 $ 4,131 2024 2023 Acquisition price Acquisition price $ 171,337 $ 163,637 3,860 - $ 175,197 $ 163,637

1. Acquisition of other assets

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5. Acquisition of financial assets

• 2024: None. 2023:

Account item SubsidiaryInvestment under equity method SubsidiaryInvestment under equity method 2nd-tier subsidiaryInvestment under equity method	2023 Number of shares acquired Acquisition price 940,000 $ 124,031 1,020,000 $ 20,400 3,600,000 $ 180,000	2023 Number of shares acquired Acquisition price 940,000 $ 124,031 1,020,000 $ 20,400 3,600,000 $ 180,000
		$ 20,400
		$ 180,000

6. Others

(1) Guarantee Deposits Received: Subsidiary Other related party (2) Rental income: Innova Vision INC. Subsidiary Aptos Technology INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch 2nd-tier subsidiary Other related party	2024 $ 416 118 $ 534 2024 $ 17,628 2,689 50,785 48,044 2 1,725 $ 120,873	2024 $ 416 118	2023 $ 473 118 $ 591 2023 $ 16,174 2,626 52,812 48,697 18 1,677 $ 122,004
		$ 534

The Company leases buildings to subsidiaries, 2nd-tier subsidiaries and other related parties. The lease contract period is from 2020 to 2025, and the rent is collected in accordance with the contract.

(3) Prepayments for equipment: 2nd-tier subsidiary	2024 $-	2023 $ 20,894

• (4) The Company issued cash dividends of NT$52,997 and NT$90,829 to Youe Chung Capital in 2024 and 2023, respectively.

• (5) In 2024 and 2023, the Company donated NT$1,728 and NT$2,685, respectively, in cash to the Taiwan Mask Charity Foundation.

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(III) Compensation of key management personnel

2024 Salary and short-term employee benefits $ 9,839 Post-employment benefits 14,880 $ 24,719 Pledged assets Assets pledged by the Company as collateral are as follows: Book value Assets December 31, 2024 December 31, 2023 Time deposit (Recognized as financial assets at amortized cost) $ 35,460 $ 43,954 Demand deposit (Recognized as financial assets at amortized cost) 382,810 373,550 Stocks of publicly traded and OTC companies (recognized as "Financial assets at fair value through profit or loss") 793,986 626,858 Buildings and structures 1,199,487 594,621 Real estate investment 121,246 662,854 Machinery and equipment and equipment under acceptance 3,286,966 2,846,465 Office equipment 993 2,702 $ 5,820,948 $ 5,151,004

2023 $ 28,344 108

$ 28,452 Purpose Guarantee of cargo out of free trade zone and lease deposit Corporate bond guarantee Short Term Loans Long-term Loans Long-term Loans Long-term Loans Long-term Loans

VIII. Pledged assets

IX. Significant Contingent Liabilities and Unrecognized Contract Commitments

(I) Contingencies

None.

(II) Commitments

1. Machine equipment maintenance contracts that have been signed but not yet paid

Machine maintenance	December 31, 2024 $ 55,693	December 31, 2023 $ 44,906

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2. Capital expenditures that have been signed but not yet incurred

Property, plant and equipment	December 31, 2024 $ 1,175,844	December 31, 2023 $ 980,980

3. Lease agreement

Please see Note 6 (8) and (9)

X. Losses due to major disasters

None.

XI. Major Events after Financial Statement Date

The resolution of the Company’s Board on March 12, 2025 passed the losses make up. Please refer to Note 6 (19) for details.

XII. Others

(I) Capital management

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including "current and non-current borrowings" as shown in the parent only balance sheet) less cash and cash equivalents. Total capital is calculated as "equity" as shown in the parent only balance sheet plus net debt.

The Company’s strategy in 2024 and 2023 was to take out long-term loans and issue corporate bonds to purchase machinery and equipment and obtain long-term working capital. For the years ended December 31, 2024 and 2023, the debt-to-capital ratios were as follows:

Total borrowings Less: Cash and cash equivalents Net debt Total equity Total capital Debt-to-equity ratio	December 31, 2024 $ 9,508,064 ( 532,868) 8,975,196 4,395,168 $ 13,370,364 67.13%	December 31, 2023 $ 7,969,846 ( 451,993) 7,517,853 5,123,142 $ 12,640,995 59.47%

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(II) Financial instruments

1. Types of financial instrument

Financial assets Financial Assets at Fair Value Through Profit or Loss Mandatory financial assets at fair value through profit or loss Financial assets measured at amortized cost Cash and Cash Equivalents Financial assets measured at amortized cost Accounts receivable (Including related parties) Other account receivable (Including related parties) Refundable Deposit Financial liabilities Financial liabilities at amortized cost Short Term Loans Accounts Payable Other accounts payable (Including related parties) Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received Lease liabilities	December 31, 2024 $ 1,107,767 $ 532,868 518,270 800,735 621,680 6,284 $ 2,479,837 December 31, 2024 2,406,478 116,962 820,157 3,609,156 3,492,430 33,914 $ 10,479,097 $ 414,271	December 31, 2023 $ 1,257,302 $ 451,993 420,504 692,292 95,460 10,154 $ 1,670,403 December 31, 2023 $ 1,079,983 117,596 673,711 3,424,600 3,465,263 33,961 $ 8,795,114 $ 546,375

1. Risk management policies

(1) The Company’s activities expose it to a variety of financial risks, including market risk (exchange rate, interest rate and price), credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial position and performance.

(2) Risk management is carried out by the Company's finance department under policies

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approved by the Board of Directors. Company's finance department identifies, evaluates and hedges financial risks in close collaboration with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as currency exchange risk, interest rate risk, credit risk, the use of derivatives and non-derivative financial instruments and investment of excess liquidity.

1. Significant financial risks and degrees of financial risks

2. (1) Market risk

   • A. Foreign exchange risk

The Company's operations involve certain non-functional currencies (the Company’s functional currency is the New Taiwan dollar (NTD), so it is subject to the impact of exchange rate fluctuation. The details of assets and liabilities denominated in foreign currencies whose values would be materially affected by exchange rate fluctuations are as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD JPY : NTD Euro : NTD Financial liabilities Monetary items USD : NTD JPY : NTD Euro : NTD	December 31, 2024 Foreign currency (in thousand) USD 24,399 JPY 349,699 EUR 1,231 USD 9,565 JPY 342,403 EUR 1,787	Exchange

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(Foreign currency: functional currency) Financial assets Monetary items USD : NTD JPY : NTD Financial liabilities Monetary items USD : NTD JPY : NTD Euro : NTD	December 31, 2023 Foreign currency (in thousand) USD 24,952 JPY 6,857 USD 10,926 JPY 836,916 EUR 359	Exchange rate 30.705 0.2172 30.705 0.2172 33.980	Book value (NT$ in thousands)
			$ 766,154 1,489 $ 335,484 181,778 12,192

• B. Total exchange gain/loss, including realized and unrealized gains from significant foreign exchange variations on monetary items held by the Company amounted to a gain of NT$28,170 and (NT$636) for the years ended December 31, 2024 and 2023, respectively.

• C. The analysis of foreign currency risk due to significant exchange rate fluctuation is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD JPY : NTD Euro : NTD Financial liabilities Monetary items USD : NTD JPY : NTD Euro : NTD	2024 Sensitivity Analysis Fluctua tion Effect on profit or loss 1% $ 7,999 1% 734 1% 420 1% ($ 3,136) 1% ( 719) 1% ( 610)	Other comprehensive profit
	tion 1% 1% 1% 1% 1% 1%	and loss affected $ - - - - -

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(Foreign currency: functional currency) Financial assets Monetary items USD : NTD JPY : NTD Financial liabilities Monetary items USD : NTD JPY : NTD Euro : NTD	2023 Sensitivity Analysis Fluctuation Effect on profit or loss 1% $ 7,662 1% 15 1% ($ 3,355) 1% ( 1,818) 1% ( 122)	Other comprehensive profit and loss affected
	Fluctuation 1% 1% 1% 1% 1%
		$ - - - - -

Price risk

• A. The equity instruments owned by the Company exposing to the price risk are financial assets at fair value through profit or loss.

• B. The Company invests primarily in beneficiary certificates and equity instruments. The price of such equity instrument is subject to the uncertainty of the future value of investment target. If the price of such equity instrument increases or decreases by 1%, while all other factors remain unchanged, the net profit after tax affected by equity instruments at fair value through profit or loss after tax for 2024 and 2023 is an increase or decrease of NT$8,862 and NT$10,058, respectively.

Cash flow and fair value interest rate risk

• A. The Company’s interest rate risk mainly comes from long-term borrowings issued at floating rates, which exposes the Company to cash flow interest rate risk. For 2024 and 2023, the Company’s borrowings issued at floating rates were mainly denominated in New Taiwan Dollars.

• B. The Company's borrowings are measured at amortized cost, and the annual interest rate is re-priced according to the contract, which exposes the Company to the risk of future market interest rate changes.

• C. If the long- and short-term borrowing rates increase or decrease by 0.25%, while all other factors remain constant, the net profit after tax for 2024 and 2023 is a decrease or increase of NT$11,798 and NT$9,090, respectively, mainly due to the interest expense changes caused by the floating interest rate.

• (2) Credit risk

• A. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments under contract obligations,

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and the defaults are accounts receivable and the contract cash flow from debt instruments measured at amortized cost, measured at fair value through other comprehensive income and measured at fair value through profit or loss.

• B. The management of credit risk is established with a Company perspective. Only the banks and financial institutions with an independent credit rating of at least "A" can be accepted as transaction partners of the Group. According to the internal credit policy, each operating entity of the Company is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.

• C. The Company considers a contract payment overdue in accordance with the agreed payment terms a breach of contract.

• D. The Company uses IFRS 9 to provide the following assumption as a basis for determining whether there is a significant increase in the credit risk of financial instruments after the original recognition:

• (A) If the contract payment is overdue for more than 30 days in accordance with the agreed payment terms, the credit risk of the financial asset is significantly increased since the original recognition.

• (B) For bond investments in Taipei Exchange, if any external rating agency rates it as an investment grade on the balance sheet date, the credit risk of the financial asset is considered low.

• E. The Company uses the following indicators to determine the status of credit impairments of debt instruments:

• (A) The issuer has suffered significant financial difficulties or is likely to enter bankruptcy or other financial restructuring.

• (B) The issuer has suffered significant financial difficulties or is likely to enter bankruptcy or other financial restructuring.

• (C) The issuer delays or does not pay for the interest or principal.

• (D) Unfavorable changes in the national- or regional-level economic situation resulting in the issuer's default.

• F. The Company categorizes the accounts receivable from customers based on the characteristics of trade credit risks. The simplified approach is adopted for estimating the expected credit loss based on the provision matrix.

• G. The Company may write off the amount of financial assets that cannot be reasonably expected to be recovered after recourse. However, the Company will continue the recourse to protect the rights of the claims.

• H. The Company has incorporated forward-looking considerations to adjust the loss rate built according to historic and current data in order to estimate the loss allowance of accounts receivables. The provision matrix for the years ended December 31, 2024 and 2023 are shown as follows:

~66~

December 31, 2024 Expected loss rate Total book value Loss allowance December 31, 2023 Expected loss rate Total book value Loss allowance	Not past due 0.01% $ 631,299 $ - Not past due 0.01% $ 575,140 $ -	30 days past due 8.62% $ 93,283 $ - 30 days past due 0.50% $ 88,263 $ -	31 to 90 days past due 66.68% $ 77,026 ($ 3,851) 31 to 90 days past due 5.27% $ 28,821 ($ 1,442)	91 to 180 days past due 66.68% $ 4,037 ($ 1,413) 91 to 180 days past due 15.37% $ 2,090 ($ 731)	181 to 360 days past due Total 75.46% $ 709 $ 806,354 ($ 355) ($ 5,619) 181 to 360 days past due Total 64.93% $ 302 $ 694,616 ($ 151) ($ 2,324)

• I. The Company adopts a simplified method in which the loss allowance for the accounts receivable is shown as follows:

accounts receivable is shown as follows:
2024 January 1 $ 2,324 Recognize impairment loss3,295 December 31 $ 5,619	2023 $ 1,906 418
	$ 2,324

• (3) Liquidity risk

• A. Cash flow forecasting is performed by the operating entity of the Company and aggregated by the Company’s finance department. The Company’s Finance Department monitors the forecast of the Group’s demand for working capital to ensure that it has sufficient funds to meet operational needs, and maintains sufficient unspent loan commitments at all times so that the Company will not exceed the relevant borrowing limits or violate the terms. These forecasts take into account the Company’s debt financing plan, compliance with debt terms, and compliance with the financial ratio objectives of the internal balance sheet.

• B. The remaining cash held by each operating entity will be transferred back to the Company's finance department. The finance department of the Company invests the remaining funds in interest-bearing demand deposits, time deposits, financial assets at fair value through profit or loss, financial assets at amortized cost (time deposits with a maturity of more than 3 months and less than 12 months), as the instruments chosen have appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. For the years ended December 31, 2024 and 2023, the position of money market held by the Company is at NT$532,868 and NT$451,993, respectively, and is expected to generate immediate cash flow to manage liquidity risk.

• C. The Company's undrawn borrowing facilities are shown as follows:

Floating rate Mature within one year	December 31, 2024 $ 543,000	December 31, 2023 $ 1,141,826

~67~

• D. The following table shows the Company’s non-derivative financial liabilities and derivative financial liabilities settled on a net or total amount, grouped according to the relevant maturity date. Non-derivative financial liabilities are analyzed based on the remaining period from the balance sheet date to the contract maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December 31, 2024 Non-derivative financial liabilities:	Within 1 year $ 2,413,129 116,962 820,157 31,584 38,260 928,962 - Within 1 year $ 1,105,920 117,596 673,711 38,896 34,400 953,532 -	1 to 2 years $ - - - 29,180 38,260 997,156 33,914 1 to 2 years $ - - - 35,466 34,400 822,570 33,961	2 to 5 years $ - - - 75,576 3,715,520 1,420,547 - 2 to 5 years $ - - - 97,241 3,558,260 1,528,823 -	Over 5 years $ - - - 337,258 - 342,118 - Over 5 years $ - - - 446,083 - 374,298 -
Short Term Loans Accounts Payable Other accounts payable (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received December 31, 2023 Non-derivative financial liabilities:
Short Term Loans Accounts Payable Other accounts payable (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received

~68~

(III) Fair value information

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

2. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in stocks of publicly traded or OTC firms and beneficiary certificates is included in Level 1.

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

4. Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in stocks of non-publicly traded or non-OTC firms is included in Level 3.

5. Financial instruments not measured at fair value

6. Cash and cash equivalents, notes receivable, accounts receivable, other receivable, shortterm borrowings, notes payable, accounts payable and other payable as reasonable approximation of fair value.

7. The related information for financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

December 31, 2024 Assets Recurring fair value measurements Financial assets at fair value through profit or loss - Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Convertible bond call/put options	Level 1 $ 1,050,247 $-	Level 2 $ 57,520 $-	Level 3 $- $ 19,204	Total $1,107,767 $ 19,204

~69~

December 31, 2023 Assets Recurring fair value measurements Financial assets at fair value through profit or loss - Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Convertible bond call/put options	Level 1 $ 1,190,010 $-	Level 2 $ 67,292 $-	Level 3 $- $ 9,383	Total $1,257,302 $ 9,383

1. The methods and assumptions adopted by the Company for assessing the fair value are as follows:

2. (1) The Company adopt market pricing as the input of fair value (i.e., Level 1), and the breakdown of the characteristics of the instrument is as follows:

Shares of listed and OTC company Open-end funds Market price Closing price Net Value

• (2) Except for the abovementioned financial instruments with active markets, the fair value of the remaining financial instruments is obtained using valuation techniques. The fair value obtained through valuation techniques can refer to the current fair value of other financial instruments with similar substantive conditions and characteristics, discounted cash flow method, or other valuation techniques, including the use of market information available on the date of the parent only balance sheet.

• (3) The output of the valuation model is the estimated value, and the valuation technique may not reflect all the relevant factors of the financial instruments and non-financial instruments held by the Company. Therefore, the estimated value of the valuation model will be appropriately adjusted according to additional parameters, such as model risk or liquidity risk. According to the Company's fair value valuation model management policies and related control procedures, the management believes that in order to properly express the fair value of financial instruments and non-financial instruments in the parent only balance sheet, valuation adjustments are appropriate and necessary. The price information and parameters used in the valuation process are carefully assessed and appropriately adjusted according to current market conditions.

~70~

• (4) The Company incorporates credit risk valuation adjustments into the consideration of fair value of financial instruments and non-financial instruments to reflect counterparty credit risk and the credit quality of the Company, respectively.

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

• The following table shows the changes in Level 3 in 2024 and 2023:

January 1, 2024 Recognized in profit or loss December 31, 2024 January 1, 2023 Recognized in profit or loss December 31 2023	Financial instruments ($ 9,383) ( 9,821) ($ 19,204) Financial instruments ($ 5,697) ( 3,686) ($ 9,383)

1. The quantitative information about the significant unobservable input value of the valuation model and the sensitivity analysis of the significant unobservable input value change used in the Level 3 fair value measurements are explained as follows:

December 31, 2024

December 31, 2024
Derivative equity / liability Convertible bond call/put options December 31, 2023 Derivative equity / liability Convertible bond call/put options	Fair value Valuation technique	Significant unobservable inputs Stock price volatility Significant unobservable inputs Stock price volatility	Range (weighted	Relationship between inputs
			average) 32.66% Range (weighted	and fair value The higher the stock price volatility, the higher the fair value Relationship between inputs
	($19,204)Convertible bond evaluation model Fair value Valuation technique
			average) 29.44%	and fair value The higher the stock price volatility, the higher the fair value
	($9,383)Convertible bond evaluation model

1. The Company has carefully assessed the valuation models and parameters used to measure fair value. However, use of different valuation models or parameters may result in different measurement. For financial assets or liabilities classified in Level 3, changes

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in valuation parameters have the following impacts on the income or other comprehensive income of the period:

Financial assets Debt Financial assets Debt	Inputs Stock price fluctuation Inputs Stock price fluctuation	Changes ± 1% Changes ± 1%	December 31, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 50 ($ 50) December 31, 2023 Recognized in profit or loss Favorable changes Adverse changes $ 20 ($ 10)	Recognized in other comprehensive income Favorable changes Adverse changes - - Recognized in other comprehensive income Favorable changes Adverse changes - -	Recognized in other comprehensive income Favorable changes Adverse changes - - Recognized in other comprehensive income Favorable changes Adverse changes - -
			loss Favorable changes $ 20
				Favorable changes -

XIII. Supplementary Disclosure

(I) Significant transactions information

1. Loans to others: Please refer to Table 1.

2. Provision of endorsements and guarantees to others: Please refer to Table 2.

3. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 3.

4. Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company's paid-in capital: None.

5. Acquisition of real estate exceeding NT$300 million or 20% of paid-in capital or more: None.

6. Disposal of real estate exceeding NT$300 million or 20% of paid-in capital or more: None.

7. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to Table 4.

8. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.

9. Engaged in derivative trading: None.

10. Significant inter-company transactions during the reporting periods: Please refer to Table 5.

(II) Information on investees

Names, locations and other information of investee companies (not including investees in

~72~

China): Please refer to Table 6.

• (III) Information on investments in Mainland China

Please see Table 7.

• (IV) Information on Major Shareholders

Please see Table 8.

XIV. Segments Information

Not applicable.

~73~

Taiwan Mask Corporation and Subsidiaries

Unit: NT$ Thousand (Unless otherwise specified)

Table 1

Loans to Others

January 1 to December 31, 2024

No. (Note 1)	Companythat lent funds	Borrowing party	General ledger account	Related party?	Maximum Balance for the	Endingbalance	Amount Actually Drawn	Range of	Nature of loan	Amount of transaction	Reason for short-term financing	Amount of recognized	Collate	ral	Limit on loans granted to a single	Ceiling on total loangranted	Note
													Name	Value
0 0 0 1 1 1 1 2 3 4	Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Miracle Technology CO., LTD. Miko-China Enterprise (Shanghai) Co., Ltd. Pilot Energy Co., Ltd.	Youe Chung Capital Corporation Aptos Technology INC. Innova Vision INC. Moment Semiconductor, In Aptos Technology INC. Xsense Technology Corpor Innova Vision INC. Aptos Technology INC. Sichuan Miracle Power Technology Co., Ltd. Xsense Technology Corpor	Other Receivables－Related Parties Other Receivables－Related P ti Other Receivables－Related Parties cOther Receivables－Related Parties Other Receivables－Related Parties aOther Receivables－Related Parties Other Receivables－Related Parties Other Receivables－Related Parties Other Receivables－Related Parties aOther Receivables－Related Parties	Y Y Y Y Y Y Y Y Y Y	300,000 $ 130,000 50,000 30,000 390,000 330,000 180,000 170,000 68,175 100,000	300,000 $ 130,000 50,000 - 350,000 320,000 180,000 170,000 67,170 50,000	300,000 $ 80,000 50,000 - 340,000 310,000 180,000 170,000 44,780 40,000	2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.509% 2.7%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- $ - - - - - - - - -	Working Capital Turnover Working Capital Turnover Working Capital Turnover Working Capital Turnover Working Capital Turnover Working Capital Turnover Working Capital Turnover Working Capital Turnover Working Capital Turnover Working Capital Turnover	- $ - - - - - - - - -	Promissory note Promissory note Promissory note None Promissory note Promissory note Promissory note Promissory note None Promissory note	300,000 80,000 50,000 - 350,000 330,000 180,000 170,000 - 50,000	1,758,067 1,758,067 1,758,067 773,472 773,472 773,472 773,472 174,317 181,017 120,748	1,758,067 1,758,067 1,758,067 773,472 773,472 773,472 773,472 174,317 181,017 120,748	Note 2 Note 2 Note 2 Note 6 Note 6 Note 6 Note 6 Note 4 Note 8 Note 7

Note 1: The description of the number columns are as follows:

• (1) Fill in "0" for the issuer.

• (2) The investee company is numbered in sequence starting from the Arabic numeral 1 according to company type.

Note 2: Amendment to the Procedures for Lending Funds to Others:

• (1) Total amount of loans: The total amount of the Company's loans shall not exceed 40% of the Company's net value.

• (2) For companies or businesses that have business dealings with the Company, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.

• (3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s net value.

• (4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, are not restricted by the abovementioned paragraphs. However, the total amount of loans and the amount of loan to a single party shall not exceed 50% of the Company's net value.

• Note 3: Subsidiary - ADL Energy Corp Procedures for Lending Funds to Others:

• (1) The total loan amount shall not exceed 50% of the Company’s net value. However, for companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed 40% of the Company net value.

• (2) In addition to the provisions in (1), the loan amount of each individual borrower of companies or businesses that have business dealings with the Company shall not exceed the amount of transactions between the two parties. The amount of business transactions refers to the higher of the amount of goods purchased or sold between the (3) In addition to the provisions in (1), in which companies or businesses have a short-term financing need, and the loan amount of each individual borrowers not exceeding 40% of the Company net value, the financing amount refers to the accumulated balance of the company's short-term financing.

• (4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, or loans to the Company from any overseas companies in which the Company holds, directly or indirectly, 100% of the voting shares are not restricted by the abovementioned paragraphs. However, the total loan amount, limits for each individual borrower, and the period of loan should be specified. The total amount of loans lent between the overseas companies or to the parent company and the limit for each limit are specified as follows:

• I. The total amount loans to enterprises shall not exceed 50% of the Company’s net value. However, for companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed 40% of the Company net value.

• II. For overseas companies that have business dealings with each other, the individual loan amount shall not exceed the amount of transactions between the two parties. The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties.

• III. If there is a need for short-term financing, the loan amount of each individual borrowers shall not exceed 40% of the company's net value, and the financing amount refers to the accumulated balance of the short-term financing between overseas companies.

• (5) The highest balance for the current period is the amount resolved by the board.

Note 4: Subsidiary - Miracle Technology Procedures for Lending Funds to Others

• (1) Total amount of loans: The total amount of the Company's loans shall not exceed 40% of the Company's net value.

• (2) For companies or businesses that have business dealings with the Company, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.

• (3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s net value.

• (4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, are not restricted by the abovementioned paragraphs. However, the total amount of loans and the amount of loan to a single party shall not exceed 50% of the Company's net value.

• Note 5: Subsidiary - Innova Vision Procedures for Lending Funds to Others

• (1) Total amount of loans: The total amount of the Company's loans shall not exceed 40% of the Company's net value.

(2) The loan amount of each individual borrower of companies or businesses that have business dealings with the Company shall not exceed the amount of transactions between the two parties in the past year. The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties, and shall not exceed 20% of the Company's net value. (3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s net value.

Note 6: Subsidiary - Youe Chung Capital Corporation Procedures for Lending Funds to Others

• (1) Total amount of loans: The total amount of the Company's loans shall not exceed 40% of the Company's net value.

• (2) For companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s net value.

• Note 7: Subsidiary - Pilot Energy Co., Ltd. Procedures for Lending Funds to Others:

The Company shall not loan funds to any of its shareholders or any other person except under the following circumstances:

• (1) Where an inter-company or inter-firm business transaction calls for a loan arrangement.

• (2) Where an inter-company or inter-firm short-term financing facility is necessary, provided that such financing amount shall not exceed 40% of the lender's net worth.

• Note 8: Subsidiary - Miko-China Enterprise (Shanghai) Co., Ltd. Procedures for Lending Funds to Others:

• (1) Total amount of loans: The total amount of the Company's loans shall not exceed 40% of the Company's net value.

• (2) For companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s net value.

Taiwan Mask Corporation and Subsidiaries

Endorsements and Guarantees to Others

Table 2

January 1 to December 31, 2024

Unit: NT$ Thousand (Unless otherwise specified)

No. (Note 1)	Endorser/guarantor	Partybeingendorsed/guaranteed	Partybeingendorsed/guaranteed	229,550 $ 174,317 174,317 452,543 120,748 120,748 Limits on Endorsement/ Guarantee Amount Applicable to Each Guarantee (Notes 3, 4, 5, 6)	Maximum Balance of Endorsement/ Guarantee for the Period	Ending Balance of Endorsement/ Guarantee	Amount ActuallyDrawn	Amount of Endorsement/ Guarantee Collateralized byProperties	Ratio of Accumulated Endorsement/Guaran tee to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable (Notes 3, 4, 5, 6)	Guarantee Provided by Parent Company to Subsidiary	Guarantee Provided by Subsidiary to Parent Company	Note N Note 3 N Note 6 N Note 6 N Note 5 N Note 7 N Note 7 Guarantee Provided to Subsidiaries in Mainland China
		Name of Company	Relationship (Note 2)
0 1 1 2 3 3	Taiwan Mask Corporation Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miko-China Enterprise (Shanghai) Co., Ltd. Pilot Energy Co., Ltd. Pilot Energy Co., Ltd.	Miracle Technology CO., LTD. Xsense Technology Corporation (B.V.I.) Taiwan Branch Aptos Technology INC. Miracle Technology CO., LTD. ADL Energy Corp Youe Chung Capital Corporation	2 1 1 3 2 3		221,060 $ 150,000 20,000 231,795 30,000 100,000	131,140 $ 150,000 20,000 228,378 - -	- $ 150,000 20,000 228,378 - -	- $ 150,000 20,000 228,378 - -	2.98% 34.42% 4.59% 50.47% 0.00% 0.00%	1,758,067 $ 174,317 174,317 452,543 120,748 120,748	Y N N N Y N	N N N Y N Y

Note 1: The description of the number columns are as follows:

• (1) Fill in "0" for the issuer.

• (2) The investee company is numbered in sequence starting from the Arabic numeral 1 according to company type.

Note 2: The relationship between the guarantor and the guarantee are one of the seven types indicated below:

• (1) A company with which it does business.

• (2) A company in which the Company directly and indirectly holds more than 50% of the voting shares.

• (3) A company that directly and indirectly holds more than 50% of the voting shares in the Company.

• (4) Companies in which the Company holds, directly or indirectly, 90%, or more of the voting shares may make endorsements/guarantees for each other.

• (5) A company that is mutually insured by a contract between peers or co-founders based on the needs of the contracted work.

• (6) A company that is guaranteed by all contributing shareholders in proportion to their shareholdings due to a joint investment relationship.

• (7) Companies that are engaged in joint and several guarantees for the performance guarantee of pre-sale housing sales contracts in accordance with the regulations of the Consumer Protection Act.

• Note 3: The Company's endorsement and guarantee practices for others provide that:

• (1) The total amount of the Company's external endorsement guarantee shall not exceed 30% of the Company's paid-in capital.

• (2) The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties.

• (3) Companies with which the Company has a parent-child relationship: The endorsement and guarantee for a single enterprise shall not exceed 10% of the Company's paid-in capital and the company's paid-in capital being endorsed and guaranteed.

• (4). The aggregate amount of the endorsement and guarantee of the Company and its subsidiaries as a whole shall not exceed 40% of the net worth of the Company, of which the endorsement and guarantee of a single subsidiary shall not exceed 20% of the net worth of the Company. Note 4: Subsidiary - ADL Energy Corp Endorsement and Guarantee Procedures:

• (1) The aggregate amount of cumulative external endorsement guarantees shall not exceed 40% of the net value of the Company's most recent audited or reviewed financial statements.

• (2) The amount of the endorsement guarantee for a single enterprise shall not exceed 30% of the net value of the company's most recent audited or reviewed financial statements.

• (3) The Company and its subsidiaries shall state in the shareholders' meeting the necessity and reasonableness of any endorsement or guarantee of more than 50% of the net value of the Company's most recent audited or reviewed financial statements. Note 5: Miko-China Enterprise (Shanghai) Co., Ltd. Endorsement and Guarantee Procedures:

The total amount of endorsement guarantee liability is limited to RMB 30 million, and the amount of endorsement guarantee for a single enterprise shall not exceed RMB 30 million; however, for the parent company that directly or indirectly holds, through a subsidiary, more than 50 Note 6: Subsidiary - Miracle Technology Co., Ltd. Endorsement and Guarantee Procedures:

The aggregate amount of cumulative external endorsement guarantees shall not exceed 40% of the net value of the Company's most recent audited or reviewed financial statements.

Note 7: Subsidiary - Pilot Energy Co., Ltd. Endorsement and Guarantee Procedures:

The aggregate amount of cumulative external endorsement guarantees shall not exceed 40% of the net value of the Company's most recent audited or reviewed financial statements.

Taiwan Mask Corporation and Subsidiaries Ending holding of marketable securities (not including subsidiaries, associates and joint ventures) December 31, 2024

Table 3

Unit: NT$ Thousand (Unless otherwise specified)

Company name of the shareholding	Marketable securities	Relationship with the marketable securities issuer		General ledger account		End of	period		Note
					Number of shares	Book value	Ownership	Fair value
		None None None None The parent company of the Company None None Parent company None None None The Company is a director of that company None None None None None None None		Financial Assets at Fair Value Through Profit or Loss - Current Financial Assets at Fair Value Through Profit or Loss - Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial assets measured at amortized cost Financial Assets at Fair Value Through Profit or Loss - Current Financial Assets at Fair Value Through Profit or Loss - Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Current Financial Assets at Fair Value Through Profit or Loss - Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Other Comprehensive Income - Non Current Financial Assets at Fair Value Through Profit or Loss - Non Current	7,554,000 14,329,000 10,000,000 1,000,000 - 5,080,000 34,154,000 35,331,440 24,540,000 2,962,000 378,000 1,000,000 750,000 - - 1,097,092 187,915 100,000 400,000	325,200 $ 725,047 34,600 22,920 100,000 218,694 507,187 1,740,073 1,241,724 111,223 2,925 10,000 7,500 20,000 67,802 - - - 21,494	0.06% 7.16% 4.61% 2.69% - 0.04% 16.61% 13.77% 12.27% 4.55% 2.07% 10.00% - - - 8.08% 3.13% 12.27% 0.31%	325,200 $ 725,047 34,600 22,920 100,000 218,694 507,187 1,740,073 1,241,724 111,223 2,925 10,000 7,500 20,000 67,802 - - - 21,494

Taiwan Mask Corporation and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

January 1 to December 31, 2024

		January 1 to December 31, 2024	January 1 to December 31, 2024
Companyengaged in Table 4	Counterparty	Relationship Purchase/sales Amount Subsidiary to parent company Sales 174,167 $ 2.30% Percentage of total purchase/sales Transaction details		Creditperiod	Difference from general transactions in terms of	Notes and accounts receivable/payable (Unless otherwise Unit: NT$	Note specified) Thousand
					Unitprice Credit period Equivalent to general transactions -	Balance Percentage of total notes and accounts receivable/payable
Digital-Can Tech. Co., Ltd.	Taiwan Mask Corporation		2.30%	Payment term of net 60		3,736 $ 0.64%	None

Taiwan Mask Corporation and Subsidiaries

Table 5

Significant inter-company transactions during the reporting periods

January 1 to December 31, 2024

Unit: NT$ Thousand (Unless otherwise specified)

Table 5			January	1 to December 31, 2024			(Unless otherwise specified) Unit: NT$ Thousand
No. (Note 1)	Name of the counterparty	Counterparty	Relationship		Status of t	ransaction
				General ledger account	Amount	Transaction terms	(Note 3) Percentage of consolidated total operating revenues or total assets
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 3 3 4 4 4 4 4 4 4 5 5 6 6 7 8 9	Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miko-China Enterprise (Shanghai) Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Pilot Energy Co., Ltd. Pilot Energy Co., Ltd. Innova Vision INC. Innova Vision INC. iPro Vision Inc. Digital-Can Tech. Co., Ltd. Aptos Technology INC.	Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle International Enterprise(Shanghai) Co., Ltd. Miracle International Enterprise(Shanghai) Co., Ltd. Miracle Technology CO., LTD. Aptos Technology INC. Innova Vision INC. Aptos Technology INC. Aptos Technology INC. Innova Vision INC. Innova Vision INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Xsense Technology Corporation (B.V.I.) Taiwan Branch Miracle Technology CO., LTD. Xsense Technology Corporation (B.V.I.) Taiwan Branch Youe Chung Capital Corporation Aptos Technology INC. Innova Vision INC. Youe Chung Capital Corporation Xsense Technology Corporation (B.V.I.) Taiwan Branch Aptos Technology INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Miracle International Enterprise(Shanghai) Co., Ltd. Miracle International Enterprise(Shanghai) Co., Ltd. Aptos Technology INC. Aptos Technology INC. Aptos Technology INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Sichuan Miracle Power Technology Co., Ltd. Aptos Technology INC. Miracle Technology CO., LTD. Sichuan Miracle Power Technology Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. Miracle Technology CO., LTD. Aptos Technology INC. Aptos Technology INC. Aptos Technology INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Xsense Technology Corporation (B.V.I.) Taiwan Branch Innova Vision INC. Innova Vision INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Xsense Technology Corporation (B.V.I.) Taiwan Branch iPro Vision Inc. iPro Vision Inc. Innova Vision INC. Taiwan Mask Corporation Taiwan Mask Corporation	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2	Sales Endorsement and guarantee Sales Accounts Receivables Accounts Receivables Other Receivables Rental income Other Incomes Rental income Other Receivables Other Incomes Other Receivables Other Incomes Rental income Rental income Other receivables (loans of funds) Other receivables (loans of funds) Other receivables (loans of funds) Interest income Interest income Interest income Endorsement and guarantee Sales Accounts Receivables Endorsement and guarantee Sales Other receivables (loans of funds) Sales Sales Other Receivables Endorsement and guarantee Other receivables (loans of funds) Interest income Sales Sales Other receivables (loans of funds) Other Receivables Interest income Other receivables (loans of funds) Interest income Other receivables (loans of funds) Interest income Other receivables (loans of funds) Interest income Accounts Receivables Sales Sales Sales Other Incomes	5,500 131,140 15,716 1,811 1,432 85,937 17,628 2,098 50,785 78,094 1,472 7,099 1,631 2,523 48,044 300,000 80,000 50,000 1,837 1,192 4,272 150,000 53,715 5,279 20,000 1,838 170,000 1,478 1,043 2,150 228,378 44,780 1,037 9,353 1,791 340,000 7,349 8,660 310,000 7,998 180,000 4,049 40,000 1,333 31,964 14,481 4,845 174,167 3,860	Net 60 Same with other customers Net 60 Net 60 Net 60 Same with other customers Same with other customers Receipt and payment at an agreed time Same with other customers Same with other customers Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Same with other customers Same with other customers Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Same with other customers Net 30 Net 30 Same with other customers Same with other customers Receipt and payment at an agreed time Net 60 Net 60 Receipt and payment at an agreed time Same with other customers Receipt and payment at an agreed time Receipt and payment at an agreed time Net 30 Net 30 Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Net 60 Net 60 Receipt and payment at an agreed time Net 60 Net 60	0.07% 0.63% 0.21% 0.01% 0.01% 0.41% 0.23% 0.03% 0.67% 0.37% 0.02% 0.03% 0.02% 0.03% 0.64% 1.43% 0.38% 0.24% 0.02% 0.02% 0.02% 1.98% 0.26% 0.07% 0.10% 0.01% 0.81% 0.02% 0.01% 0.03% 1.09% 0.21% 0.01% 0.12% 0.02% 1.63% 0.04% 0.11% 1.48% 0.11% 0.86% 0.05% 0.19% 0.02% 0.15% 0.19% 0.06% 2.30% 0.05%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is "0".

(2) The subsidiaries are numbered in order starting from "1".

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction): (1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiaries.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement account.

Note 4: Only transactions with an amount of more than NT$1 million will be disclosed, and transactions with related parties will not be disclosed separately.

Taiwan Mask Corporation and Subsidiaries

Table 6

Names, locations and other information of investee companies (not including investees in Mainland China)

January 1 to December 31, 2024

Unit: NT$ Thousand (Unless otherwise specified)

Name of Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares hel	d at the end o	f theperiod	Profit (loss) of the investee for the current period	Investment profit (loss) recognized for the currentperiod	Note
				Balance at the end ofperiod	End of the previousyear	Number of shares	Ownership	Book value
Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Aptos Technology INC. ADL Energy Corp Miracle Technology CO., LTD. Jing Hao Investment Co., Ltd. Innova Vision INC. Innova Vision INC. Innova Vision INC. Innova Vision (B.V.I) Inc. Pilot Energy Co., Ltd.	SunnyLake Park International Holdings, Inc. Youe Chung Capital Corporation Advagene Biopharma Co., Ltd. Miracle Technology CO., LTD. Weida Hi-Tech Co., Ltd. Innova Vision INC. ONE TEST SYSTEMS Pilot Energy Co., Ltd. TrueLight Corporation Advagene Biopharma Co., Ltd. Xsense Technology Corporation Xsense Technology Corporation (B.V.I.) Taiwan Branch Aptos Technology INC. Innova Vision INC. Digital-Can Tech. Co., Ltd. Pilot Energy Co., Ltd. Moment Semiconductor, Inc. BKS Tec Corp. New Sunrise Limited Aptos Global Holding Corp. Jing Hao Investment Co., Ltd. Miko Technology Co., Ltd Innova Technology Innova Vision (B.V.I) Inc. iPro Vision Inc. iPro Vision Inc. ADL Energy Corp	British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan United States Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Samoa Seychelles Taiwan Hong Kong Taiwan British Virgin Islands Japan Japan Taiwan	Re-investment Re-investment Medical, R&D, manufacturing Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Display panel control chip and other module’s research, design, development, manufacturing and sales Manufacturing, retail, wholesale and international trade of medical equipment Research, development and design of test equipment and related components Electronic parts and components and energy technical services Fiber-optic communication related products Medical, R&D, manufacturing Precious metal coating Precious metal coating Design, packaging and testing of NAND flash memory, solid state drives and the related products Manufacturing, retail, wholesale and international trade of medical equipment 3D Printing and Plastic Mold Design Electronic parts and components and energy technical services Retail and wholesale of memory products Electronics Components Manufacturing Re-investment Re-investment Re-investment Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Sales of contact lens Re-investment Sales of contact lens Sales of contact lens Electronic parts and components and energy technical services	103,045 $ 1,260,000 165,686 252,651 293,371 598,721 121,372 180,000 410,400 73,251 325,965 - 434,692 151,533 139,072 178,500 43,590 30,000 - 29,795 10,012 37 64,650 60,157 84,204 56,420 413,050	103,045 $ 1,260,000 165,691 252,651 293,371 598,721 121,372 180,000 - 75,021 325,965 - 434,692 151,533 139,072 178,500 40,000 - - 29,795 10,012 37 64,650 60,157 84,204 56,420 413,050	3,120,000 534,877,568 12,546,652 22,955,033 12,176,880 18,906,567 940,000 3,600,000 13,500,000 2,664,223 1 12,189,191 28,481,161 47,185 7,281,250 7,000,000 4,359,000 6,000,000 - 10,000,000 29,731,315 10,000 3,000,000 1,000,000 6,400 5,900 9,984,526	100% 100% 21.13% 100% 28.20% 75.32% 100% 20.00% 12.11% 4.49% 100.00% 53.00% 47.19% 0.19% 57.39% 38.89% 52.84% 38.91% 100% 100% 100% 100% 100% 100% 52.03% 47.97% 100%	5,938 $ 207,987 46,599 471,901 25,851 23,539) ( 86,458 86,166 388,848 9,895 6,224 105,901) ( 333,639) ( 49 126,254 178,563 19,635 18,198 - - 373,212 7,065 3,502) ( 922) ~~(~~ 1,200) ~~(~~ 1,106) ( 51,923	71) ($ 1,574,027) ~~(~~ 69,715) ( 18,155) ~~(~~ 1,130) ~~(~~ 220,853) ( 11,609) ( 101,125) ( 239,250) ~~(~~ 69,715) ~~(~~ 23) ~~(~~ 193,615) ~~(~~ 234,505) ~~(~~ 220,853) ( 34,411 101,125) ~~(~~ 26,838) ~~(~~ (41,233) - - 37,155 106) ~~(~~ 106) ~~(~~ 244 508 508 3,613	71) ($ 820,048) ( 16,223) ~~(~~ 18,155) ( 319) ~~(~~ 166,371) ( 7,870) ( 20,395) ~~(~~ 21,542) ( 4,098) ~~(~~ 23) ( 102,607) ~~(~~ 111,819) ( 400) ( 19,747 43,285) ~~(~~ 14,275) ~~(~~ (11,802) - - 37,155 106) ( 106) ( 244 264 244 3,613	Note

Note: As of December 31, 2024, the funds for shares have not been remitted.

Taiwan Mask Corporation and Subsidiaries

Information on investments in Mainland China

January 1 to December 31, 2024

Investee in Mainland China Table 7	Main business activities	Paid-upcapital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to China at the beginning of theperiod	Amount re Taiwan to C remitted bac for the	mitted from hina/Amount k to Taiwan period	Accumulated amount of remittance from Taiwan to China at the end ofperiod	Profit (loss) of the investee for the current period	Ownership held by the Company (direct or indirect)	(Note 2) Investment income (loss) recognized by the Company for the current	Ending carrying amount	Note Accumulated amount of investment income remitted back to Taiwan Unit: NT$ Thousand (Unless otherwise specified)	Note Accumulated amount of investment income remitted back to Taiwan Unit: NT$ Thousand (Unless otherwise specified)
					Remitted to	Remitted back
Miko-China Enterprise (Shanghai) Co., Ltd. Miracle International Enterprise(Shanghai) Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Name of Company	Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Electronics components manufacturing, electronics materials and precision equipment distribution and power component design IC product design, production and sales remittance from Taiwan to China as of the end of the	3,283 $ 10,215 53,676 amount approved bythe	1 1 3 China imposed by the Investment Commission	3,283 $ 10,215 -	- $ - -	- $ - -	3,283 $ 10,215 -	46,478 $ 2,512) ~~(~~ 9,143) ~~(~~	100% 100% 100%	46,478 $ 2,512) ~~(~~ 9,143) ~~(~~	452,542 $ 103,829 47,720	- $ - -	Note 2 (2) B Note 2 (2) B, Note 4 Note 2 (2) B
Miracle Technology CO., LTD.	13,498 $	13,498 $	$ 261,475

Note 1: Investment methods are classified into the following three categories; fill in the number of categories each case belongs to:

• (1) Directly invest in a company in Mainland China.

• (2) Through investing in an existing company in the third area (please specify the company), which then invested in Mainland China.

• (3). Others

Note 2: Investment income recognized by the Company for the current period

• (1) If it is still under preparation with no actual gain or loss, it shall be indicated in the box.

• (2) The basis for recognition of the investment gains or losses is divided into the following three,

• A. Financial statements audited and validated by an international accounting firm that has a collaborative relationship with CPA firms in Taiwan.

• B. Financial statements reviewed by a certified accountant or accounting firm who work with the parent company in Taiwan.

• C. Unaudited financial reports.

Note 3: The relevant figures in this table should be presented in New Taiwan Dollars.

Note 4: It was originally invested through Misun Technology Co., Ltd. Since the aforementioned company has gone through dissolution and liquidation, it has been changed to Miracle Technology Co., Ltd. directly investing in Miracle International Enterprise (Shanghai) Co., Ltd.

Taiwan Mask Corporation and Subsidiaries

Information on Major Shareholders

December 31, 2024

Table 8

Shares Name of Main Shareholders No. of shares held Ownership Youe Chung Capital Corporation 35,331,440 13.77%

	Taiwan Mask Corporation
	Cash and Cash Equivalents Schedule
	December 31, 2024
Schedule 1		Unit: NT$	Thousand
Items	Summary	Amount
Bank deposits
Demand deposits - NTD		$	174,234
- Foreign currency	USD 7,312, exchange rate 32.785		239,713
	JPY 349,699, exchange rate 0.2099		73,402
	EUR 1,231, exchange rate 34.14		42,027
	Maturity date: March 31, 2025, interest rate:
Time deposits -- NTD	1.285%		3,492
		$	532,868

Page 1, Schedule 1

Taiwan Mask Corporation Accounts Receivable Schedule December 31, 2024

Unit: NT$ Thousand

Schedule 2 Customer Name General customers Company F Company A Company B Company G Company H Company E Others Less: Allowance for bad debts Related party Miracle Technology Co., Ltd. Miracle International Enterprise(Shanghai) Co., Ltd. TrueLight Corporation Weida Hi-Tech Co., Ltd. Less: Allowance for bad debts	Summary	Amount $ 185,331 106,564 69,923 54,858 54,443 40,365 289,258 800,742 ( 5,619) 795,123 $ 1,432 1,811 54 2,315 5,612 - $ 5,612	Unit: NT$ Thousand Note
			The balance of each separate account did not exceed 5% of this account Account balance that has been more than a year is NT$0 Account balance that has been more than a year is NT$0

Page 1, Schedule 2

Schedule 3 Items Raw materials Work in process Finished goods Add: Loss on falling prices of inventory and inventory obsolescence	Taiwan Mask Corporation Inventories Schedule December 31, 2024 Amount Summary Cost $ 186,297 24,704 3,748 214,749 ( 9,369) $ 205,380	Market value $ 191,120 43,638 6,022	Unit: NT$ Thousand Note Net realizable value as the market value Net realizable value as the market value Net realizable value as the market value
		$ 240,780

Page 1, Schedule 3

Taiwan Mask Corporation Financial assets schedule at fair value through profit and loss January 1 to December 31, 2024

Schedule 4

Unit: NT$ Thousand

Name Common stocks of United Microelectronics Corporation Common stock of China Steel Structure Co., Ltd. Common stocks of Avision Inc. through private placement. Common Stock of 3S Silicon Tech Inc. Convertible bond call/put options Total	Opening Balance Number of Shares 7,554,000 14,334,000 10,000,000 1,000,000 -	Book value $ 397,340 792,670 55,700 11,592 ( 9,383) $ 1,247,919	Increase this period	Amount $ - - - 11,328 - $ 11,328	Decrease this period Number of Shares - ( 5,000) - - -	Amount ($ 72,140) ( 67,623) ( 21,100) - ( 9,821) ($ 170,684)	Ending balance Number of Shares 7,554,000 14,329,000 10,000,000 1,000,000 -	Book value $ 325,200 725,047 34,600 22,920 ( 19,204) $ 1,088,563	Guarantee or pledge Note Yes 1,800,000 shares pledged Yes 14,160,000 shares pledged None None None
			Number of Shares - - - - -

Page 1, Schedule 4

Taiwan Mask Corporation Schedule of Investments Changes Accounted for Using Equity Method January 1 to December 31, 2024

Schedule 5																Unit: NT$ Thousand	Unit: NT$ Thousand	Unit: NT$ Thousand
			Increase in investment for the		Decrease in investment for									Market value or equity
	Opening Balance		period		the period				Increase/decrease)		Ending balance					net value
									in investments					Unit
									accounted for		Ratio of			price
	Number of		Number of		Number of				using the equity	Number of	Share			(in			Guarantee
Name	Shares	Amount	Shares	Amount	Shares		Amount		method (Note)	Shares	Proportion		Amount	dollars)		or pledge Total amount		Note
SunnyLake Park
International	3,120,000	$ 5,683	- $	-		-	$	-	$ 255	3,120,000	100.00%		$ 5,938	$	-	$	- None
Holdings, Inc.
Youe Chung Capital
Corporation	534,877,568	987,383	-	-		-		-	( 779,396)	534,877,568	100.00%		207,987		-		- None
Innova Vision INC.	37,813,134	142,651	-	-	( 18,906,567)			-	( 166,190)	18,906,567	75.32%	(	23,539)		-		- None
Advagene Biopharma
Co., Ltd.	12,549,652	32,974	-	-	( 3,000)		(	5)	13,630	12,546,652	21.13%		46,599		-		- None
Miracle Technology CO.,
LTD.	22,955,033	472,096	-	-		-		-	( 195)	22,955,033	100.00%		471,901		-		- None
Weida Hi-Tech Co., Ltd.	12,176,880	26,081	-	-		-		-	( 229)	12,176,880	28.20%		25,851		-		- None
ONE TEST SYSTEMS	940,000 121,332		-	-				-	( 34,875)	940,000	100.00%		86,458		-		- None
Pilot Battery Co., Ltd.	3,600,000	78,591						-	7,575	3,600,000	20.00%		86,166				- None
TrueLight Corporation		- -	13,500,000	410,400				-	( 21,552)	13,500,000	12.11%		388,848				- None
Total		$ 1,866,791	$	410,400			($	5)	($ 980,977)				$ 1,296,209

Note: Mainly the share of profit or loss of subsidiaries and affiliates accounted for using the equity method, the share of other comprehensive income, and the cash dividends received from investees.

Page 1, Schedule 5

Taiwan Mask Corporation Property, Plant and Equipment Cost Changes Schedule January 1 to December 31, 2024

Schedule 6

Unit: NT$ Thousand

Items Buildings and structures (including land) Machinery and equipment Transportation equipment Office equipment Other equipment Unfinished construction and equipment to be inspected		Opening Balance		Increase this period	Decrease this period $ - - ( 810) - - - ($ 810)	Decrease this period	Reclassification for theyear $ 121,941 837,710 - - 30,709 ( 934,798) $ 55,562	Reclassification for theyear		Endingbalance Guarantee or pledge $ 2,347,411 Yes 8,540,315 Yes 5,958 None 69,728 Yes 755,145 None 1,185,463 None $12,904,020	Note
		$ 2,184,268 7,184,723 6,268 56,112 551,186 1,010,828 NT$10,993,385		$ 41,202 517,882 500 13,616 173,250 1,109,433 $ 1,855,883

Page 1, Schedule 6

Taiwan Mask Corporation Property, Plant and Equipment Accumulated Depreciation Changes Schedule January 1 to December 31, 2024

Schedule 7 Items Buildings and structures Machinery and equipment Transportation equipment Office equipment Other equipment		OpeningBalance		Increase thisperiod	Decrease this period $ - - ( 608) - - ($ 608)	Decrease this period		Reclassification for theyear		Unit: NT$ Thousand Balance of the period Note $ 1,045,628 2,808,732 3,074 47,331 285,801 $ 4,190,566	Unit: NT$ Thousand Balance of the period Note $ 1,045,628 2,808,732 3,074 47,331 285,801 $ 4,190,566
		$ 835,607 2,096,348 2,408 35,304 161,505 $ 3,131,172		$ 203,253 712,384 1,274 12,027 124,296 $ 1,053,234				$ 6,768 - - - - $ 6,768

Page 1, Schedule 7

Taiwan Mask Corporation Right-of-Use Assets Schedule January 1 to December 31, 2024

Schedule 8

Unit: NT$ Thousand

Items Land Buildings and structures Transportation equipment (company vehicles) Other equipment Total		OpeningBalance		Increase thisperiod	Decrease thisperiod ($ 157,906) ( 3,660) ( 12,650) ( 148) ($ 174,364)	Decrease thisperiod		Endingbalance $ 421,606 5,635 15,133 67,888 $ 510,262	Note
		$ 572,982 9,295 24,390 44,825 $ 651,492		$ 6,530 - 3,393 23,211 $ 33,134

Page 1, Schedule 8

Taiwan Mask Corporation Right-of-Use Assets Accumulated Depreciation Schedule January 1 to December 31, 2024

Unit: NT$ Thousand

Schedule 9 Items Land Buildings and structures Transportation equipment (company vehicles) Other equipment Total		OpeningBalance		Increase thisperiod	Decrease thisperiod ($ 24,651) ( 3,660) ( 12,650) ( 148) ($ 41,109)	Decrease thisperiod		Endingbalance $ 89,927 2,192 7,568 8,801 $ 108,488	Unit: NT$ Thousand Note
		$ 91,792 4,705 14,449 5,019 $ 115,965		$ 22,786 1,147 5,769 3,930 $ 33,632

Page 1, Schedule 9

Schedule 10 Types of borrowings Credit loan Secured borrowings	Explanation		Taiwan Mask Corporation Short-Term Borrowings Schedule December 31, 2024 Endingbalance Contract Duration Range of interest rate $ 1,886,478 May 31, 2024 - March 12, 2025 1.87%~2.63% 520,000 November 20, 2024 - March 12, 2025 2.21%~2.53% $ 2,406,478	Unit: NT$ Thousand Financing Amount Pledge or Guarantee Note $ - None - Yes Stock	Thousand Note

Page 1, Schedule 10

Taiwan Mask Corporation Long-Term Borrowings Schedule December 31, 2024

Schedule 11

Unit: NT$ Thousand

Pledge or Guarantee	Summary	Amount Borrowed	Contract Duration	Coupon rate
Houses and buildings, machinery equipment and investment property Buildings and investment property Machinery and equipment Less: Mature within one year	Intermediate- and long-term secured loans Intermediate- and long-term secured loans Intermediate- and long-term secured loans	$ 750,000 1,215,790 1,526,640 3,492,430 ( 857,444) $ 2,634,986	January 28, 2022 - January 27, 2027 12.28.2022~12.28.2032 December 21, 2022 - May 20, 2029	2.67% 2.30%~2.57% 2.30%~3.58%

Page 1, Schedule 11

	Taiwan Mask Corporation	Taiwan Mask Corporation
	Sales Income Schedule
	January 1 to December 31, 2024
Schedule 12			Unit: NT$ Thousand
Items	Quantity	Amount	Note
Photomask	67,559 pieces	$	4,260,484

Page 1, Schedule 12

Taiwan Mask Corporation Operating Costs Schedule January 1 to December 31, 2024

Unit: NT$ Thousand

Schedule 13 Items Direct materials Opening raw materials Incoming materials in the current period Ending raw materials Less: Transfer to expense Consumption in this period Director labor Manufacturing expenses Manufacturing cost Add: Opening work-in-progress Less: Ending work-in-progress Cost of finished goods Add: Opening finished goods Less: Ending finished goods Cost of manufacturing and sales Other operating costs Loss on falling prices of inventory and inventory obsolescence Operating costs	Unit: Amount $ 103,921 799,814 ( 186,297) ( 22,081) 695,357 120,716 2,010,459 2,826,532 26,609 ( 24,704) 2,828,437 3,839 ( 3,748) 2,828,528 4,575 $ 2,833,103	NT$ Thousand Note

Page 1, Schedule 13

Schedule 14 Items Depreciation Contract maintenance fee Salaries expense Utilities Others	Taiwan Mask Corporation Manufacturing Expenses Schedule January 1 to December 31, 2024 Unit: NT$ Thousand Summary Amount Note $ 923,904 535,059 164,894 105,136 The balance of each separate account did not exceed 5% of this account 281,466 $ 2,010,459

Page 1, Schedule 14

Taiwan Mask Corporation Operating Expenses Schedule January 1 to December 31, 2024

Unit: NT$ Thousand

Schedule 15 Items Marketing expenses: Shipping expenses Salaries expense Export declaration fee Others Administrative Expenses: Depreciation Salaries expense Bank expenses Utilities Others Research and development expenses: Depreciation Salaries expense Research and experiment fee Material costs Others	Summary		Unit: NT$ Thousa Amount Note $ 36,873 22,066 8,556 The balance of each separate account did not exceed 5% of this account 15,168 $ 82,663 $ 90,094 65,765 24,444 23,272 The balance of each separate account did not exceed 5% of this account 85,185 $ 288,760 $ 71,714 49,314 27,689 12,816 The balance of each separate account did not exceed 5% of this account 39,610 $ 201,143	Unit: NT$ Thousa Note

Page 1, Schedule 15

Taiwan Mask Corporation Employee Benefits, Depreciation, Depletion and Amortization in the Current Period January 1 to December 31, 2024

Schedule 16

Unit: NT$ Thousand

Function Type	2024				2023
	Operating costs	Operating expenses	Non-operating income and expenses	Total	Operating costs	Operating expenses	Non-operating income and expenses	Total
Employee benefits expenditure
Payroll expenses	$ 257,377	$ 137,145	$ -	$ 394,522	$ 289,137	$ 140,633	$ -	$ 429,770
Employee stock options	-	-	-	-	-	-	-	-
Labor and health insurance fees	26,273	13,351	-	39,624	23,053	11,763	-	34,816
Pension expense	11,157	6,186	-	17,343	9,887	5,104	-	14,991
Director remuneration	-	4,900	-	4,900	-	12,000	-	12,000
Other employee benefit expenses	20,006	5,008	-	25,014	16,150	9,161	-	25,311
Depreciation	923,904	162,962	15,722	1,102,588	658,076	124,301	16,188	798,565
Amortization expense	19,518	3,549	-	23,067	19,075	4,966	-	24,041

1. As of the end of the current period and the previous year, the number of employees was 496 and 463, respectively. The number of directors not concurrently holding employee positions was 5 for both periods.

2. Stocks are listed on the Taiwan Stock Exchange or the Taipei Exchange and the following information is disclosed:

3. (1) Average employee benefit expenses for the current year were NT$970 thousand (“Total employee benefit expenses for the current year/total directors’ remuneration”/“Number of employees for the current year - number of directors who are not also employees”).

Average employee benefit expenses for the previous year were NT$1,102 thousand ("Total employee benefit expenses for the previous year - total directors' remuneration"/"Number of employees for the previous year - number of directors who are not also employees").

Page 1, Schedule 16

Taiwan Mask Corporation

Employee Benefits, Depreciation, Depletion and Amortization in the Current Period (continued) January 1 to December 31, 2024

Schedule 16

Unit: NT$ Thousand

• (2) Average employee salary expense for the current year was NT$804 thousand (Total salary expense for the current year/"Number of employees for the current year - Number of directors who were not also employees").

• Average employee salary expense for the previous year was NT$938 thousand (Total salary expense for the previous year/"Number of employees for the previous year - Number of directors who were not also employees").

• (3) Change in average employee salary expense adjustment was ( 14%) (“Average employee salary expense for the current year/Average employee salary expense for the previous year”/Average employee salary expense for the previous year)

• (4) The Company has an audit committee, so there is no supervisor's remuneration.

• (5) The Company regularly reviews its policies, systems, standards and structure of performance appraisal and salary remuneration of directors and managerial officers according to the Remuneration Committee charter, and abided by the following rules:

• A. The performance evaluation of the directors and managerial officers and their salary and remuneration shall be considered in reference to the payment standard among industry peers and individual performances, in relevance to its reasonableness with the Company’s operations performance and future risks.

• B. These shall not lead directors and managerial officers to pursue salary and remuneration, engaging in risky conducts that outstrip the Company’s capacity to handle.

• C. The bonus proportion of short-term performance for directors and senior level managerial officers and partial changes to remuneration payment time shall be decided in consideration of the industrial characteristics and the nature of the Company’s business.

• (6) Directors’ remuneration and employee remuneration are subject to the Company’s Articles of Incorporation. The distribution shall be executed after the resolution approval at a Board meeting with more than two-thirds of directors attending and of more than half of the attending directors agreeing and passing the resolution, and reporting such to the shareholders meeting.

• A. Employee remuneration: Allocated based on the Company’s operating condition, and is distributed based on employee's position, performance, and tenure of service.

• B. Quarterly bonuses: Allocated based on the Company’s operating condition, and is given as an incentive for achieving the set targets.

• C. Annual salary adjustments: Carried out in accordance with the Company’s operating condition. Annual salary adjustment: Carried out in accordance with the Company's operating condition. The salary adjustment range takes into account the salary adjustment in the industry, domestic economic growth, price index, and individual performance appraisal.

Page 2, Schedule 16