TMC - Interim / Quarterly Report 2025

Taiwan Mask Corporation and Subsidiaries Consolidated Financial Statements and Independent Auditor’s Review Report Q2 2025 and 2024 (Stock Code: 2338)

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

Telephone: (03)563-4370

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Taiwan Mask Corporation and Subsidiaries

’ Q2 2025 and 2024 Consolidated Financial Statements and Independent Auditor s

Review Report

		Items	Page
I.	Cover		1
II.	Table	of Contents	2 ~ 3
III.	Independent Auditors’ Review Report		4 ~ 6
IV.	Consolidated Balance Sheet		7 ~ 8
V.	Consolidated Statement of Comprehensive Income		9
VI.	Consolidated Statement of Changes in Equity		10
VII.	Consolidated Statement of Cash Flows		11 ~ 12
VIII.	Notes	to the Consolidated Financial Statements	13 ~ 79
	(I)	Company History	13
	(II)	Date and procedures for passing the financial statement	13
	(III)	Application of New and Revised International Financial Reporting
		Standards	13 ~ 14
	(IV)	Summary of Significant Accounting Policies	15 ~ 22
	(V)	Critical Accounting Judgments and Key Sources of Estimation and
		Uncertainty	22
	(VI)	Summary of Significant Accounting Items	22 ~ 60

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	Items	Page
(VII)	Related Party Transactions	60 ~ 62
(VIII)	Pledged Assets	63
(IX)	Significant Contingent Liabilities and Unrecognized Contract
	Commitments	64
(X)	Losses due to Major Disasters	64
(XI)	Major Events after Financial Statement Date	64
(XII)	Others	64 ~ 77
(XIII)	Supplementary Disclosure	78
(XIV)	Segment Information	78 ~ 79

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Independent Auditors’ Review Report (114) Tsai-Sheng-Bao-Zi No. 25001368

To Taiwan Mask Corporation,

Introduction

We have audited the accompanying consolidated balance sheets for the periods starting January 1 and ending June 30, 2025 and 2024, the consolidated statements of comprehensive income for the periods starting April 1 and ending June 30, 2025 and 2024, and starting January 1 and ending June 30, 2025 and 2024 and the consolidated statements of changes in equity and cash flows for the period starting January 1 and ending June 30, 2025 and 2024, as well as the notes to the consolidated financial statements (including the summary of significant accounting policies), for Taiwan Mask Corporation and subsidiaries (collectively referred to as the “Group”). The Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and IAS No. 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope

Except as explained in the following paragraph, we conducted our reviews in accordance with Standards on Review Engagements No. 2410, "Review of Financial Statements" in the Republic of China. The procedures performed when reviewing the consolidated financial statements include inquiries (mainly inquiring personnel responsible for financial and accounting tasks), analytical procedures and other review procedures. The scope of review is obviously smaller than that of audit. Therefore, the accountant may not be able to detect all the significant matters that can be identified through audit, so it is impossible to express an audit opinion.

Basis for qualified opinion

As stated in Note 4 (3) of the consolidated financial statements, the financial statements of the same period of some insignificant subsidiaries included in the aforementioned consolidated financial statements have not been reviewed by the CPAs and the total amount of their assets as of June 30, 2025 and 2024 was NT$3,007,654 thousand and NT$3,149,265 thousand, accounting for 16.16% and 14.17% of the total consolidated assets, respectively; the total amount of their liabilities was NT$1,942,439

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thousand and NT$2,414,348 thousand, accounting for 12.68% and 14.05% of the total consolidated liabilities, respectively; the total amount of comprehensive income from April 1 to June 30, 2025 and 2024 was NT$(165,761) thousand and NT$(244,647) thousand and that from January 1 to June 30, 2024 and 2023 was NT$(317,915) thousand and NT$(452,603) thousand, accounting for 29.33%, 77.56%, 36.28% and (156.90%) of the total consolidated comprehensive income, respectively. As stated in Notes 6 (6) to the Consolidated Financial Statements, part of the investment using the equity method is prepared based on the financial statements from each company for the same period not reviewed by an CPA. The balance of investments using the equity method as of June 30, 2025 and 2024 was NT$64,860 thousand and NT$80,584 thousand, accounting for 0.35% and 0.36% of the total consolidated assets, respectively; the share of assets of associates recognized using the equity of such from April 1 to June 30, 2025 and 2024 was NT$(16,057) thousand and NT$(7,524) thousand and that from January 1 to June 30, 2025 and 2024 was NT$(24,394) thousand and NT$(16,992) thousand, accounting for 2.84%, 2.39%, 2.78% and (5.89%) of the consolidated comprehensive income, respectively.

Qualified opinion

According to our results of the review, except for the part described by the basis for qualified opinion that the financial statement of insignificant subsidiaries and part of the investments using the equity method may affect adjustments to the consolidated financial statements upon the CPA's review, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2025 and 2024, the results of the consolidated financial operations from April 1 to June 30, 2025 and 2024 and that from January 1 to June 30, 2025 and 2024 and the consolidated cash flows from January 1 to June 30, 2025 and 2024 in conformity with the Regulations Governing the Preparation of Financial Statements by Securities Issuers and IAS 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Executive Yuan.

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Other matters

As stated in Note 12(4) of the consolidated financial statements, the photomask Group’s debt ratio and current ratio as of June 30, 2025, were 82% and 53%, respectively. The Group has already submitted a sound business plan.

PricewaterhouseCoopers Taiwan

Hsin-Yi Tsai

CPA

Chien-Yu Liu

Financial Supervisory Commission approval document number: Jin-Guan-Zheng-Shen-Zi No. 1140351490 Jin-Guan-Zheng-Shen-Zi No. 1090350620

August 1, 2025

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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2025 and December 31 and June 30, 2024

Assets	Notes	June 30,2025 Amount % $ 935,523 5 1,955,622 11 213,880 1 60,425 - 11,692 - 1,029,539 6 72 - 29,116 - 2,024 - 333 - 690,383 4 278,624 1 13,296 - 5,220,529 28 203,269 1 646,719 4 439,580 2 10,492,294 57 395,516 2 180,797 1 591,936 3 24,257 - 418,539 2 13,392,907 72 $ 18,613,436 100	December31,2024 Amount % $ 1,430,542 7 3,129,075 15 227,534 1 90,967 - 167 - 1,367,379 7 2,383 - 40,137 - 1,306 - 476 - 723,781 4 277,096 1 20,371 - 7,311,214 35 187,241 1 667,051 3 489,392 2 10,382,141 50 424,264 2 167,109 1 654,780 3 25,492 - 506,461 3 13,503,931 65 $ 20,815,145 100	Unit: NT$ Thousand June 30,2024 Amount % $ 1,353,779 6 1,691,642 8 335,145 1 83,089 - 4,134 - 1,568,647 7 1,432 - 21,851 - 1,227 - 332 - 806,140 4 367,985 2 15,179 - 6,250,582 28 3,142,088 14 581,157 3 481,656 2 9,695,789 44 544,670 2 168,804 1 659,248 3 59,412 - 637,162 3 15,969,986 72 $ 22,220,568 100
		Amount $ 935,523 1,955,622 213,880 60,425 11,692 1,029,539 72 29,116 2,024 333 690,383 278,624 13,296 5,220,529 203,269 646,719 439,580 10,492,294 395,516 180,797 591,936 24,257 418,539 13,392,907 $ 18,613,436	Amount $ 1,430,542 3,129,075 227,534 90,967 167 1,367,379 2,383 40,137 1,306 476 723,781 277,096 20,371 7,311,214 187,241 667,051 489,392 10,382,141 424,264 167,109 654,780 25,492 506,461 13,503,931 $ 20,815,145	Amount $ 1,353,779 1,691,642 335,145 83,089 4,134 1,568,647 1,432 21,851 1,227 332 806,140 367,985 15,179 6,250,582 3,142,088 581,157 481,656 9,695,789 544,670 168,804 659,248 59,412 637,162 15,969,986 $ 22,220,568
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 1150 Notes Receivables (Net) 1170 Accounts Receivables (Net) 1180 Accounts Receivables - Related Parties (Net) 1200 Other Receivables 1210 Other Receivables - Related Parties 1220 Tax Assets for the Period 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	6(1) 6(2) and 8 6(3) and 8 6(23) 6(4) 6(4) 6(4) and 7 7 6(5) 6(2) and 8 6(3) and 8 6(6) 6(7) and 8 6(8) 6(10) and 8 6(11) and 8 6(30) 6(13)

(continued on next page)

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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2025 and December 31 and June 30, 2024

													Unit: NT$ Thousand	Unit: NT$ Thousand
					June 30,2025				December31,2024				June 30,2024
	Liabilities and Equities	Notes			Amount	%			Amount	%			Amount	%
	Current liabilities
2100	Short Term Loans	6(14) and 7		$	4,788,863	26		$	6,200,355	30		$	6,369,560	29
2120	Financial Liabilities at Fair	6(2)
	Value Through Profit or Loss -
	Current				30,694		-		19,204		-		5,864	-
2130	Contract Liabilities - Current	6(23)			133,795		1		64,453		-		129,031	1
2150	Notes Payable				44,956		-		43,544		-		9,797	-
2170	Accounts Payable				379,160		2		541,758		3		463,021	2
2200	Other Payables	6(15)			1,375,568		8		1,236,829		6		1,646,720	7
2230	Income Tax Liabilities for the
	Period				8,664		-		10,730		-		50,782	-
2250	Provision for Liabilities -
	Current				9,460		-		5,568		-		3,260	-
2280	Lease Liability - Current				31,921		-		34,456		-		38,366	-
2320	Long-term liabilities due	6(16)
	within one year or one business	6(17)
	cycle				2,967,580	16			1,242,279		6		1,186,904	5
2399	Other Current Liabilities -
	Other				39,823		-		53,072		-		184,068	1
21XX	Total Current Liabilities				9,810,484	53			9,452,248	45			10,087,373	45
	Non-current liabilities
2530	Corporate bonds payable	6(16)			1,996,238	10			3,609,156	17			3,134,579	14
2540	Long-term Loans	6(17)			2,962,576	16			3,072,808	15			3,238,213	15
2550	Provision for Liabilities - Non-
	current				-		-		1,500		-		-	-
2570	Deferred Income Tax.	6(30)			162,215		1		162,297		1		163,953	1
2580	Lease liability - Non Current				377,756		2		402,942		2		519,218	2
2640	Defined Benefit Liabilities -	6(18)
	Non Current				4,061		-		7,474		-		9,532	-
2645	Guarantee Deposits Received				953		-		34,812		-		35,278	-
25XX	Total Non-Current
	Liabilities				5,503,799	29			7,290,989	35			7,100,773	32
2XXX	Total Liabilities				15,314,283	82			16,743,237	80			17,188,146	77
	Equity attributable to
	shareholders of the parent
	company
	Capital	6(19)
3110	Capital stock				2,564,562	14			2,564,562	12			2,564,465	11
	Capital surplus	6(20)
3200	Capital surplus				1,622,453		8		1,532,041		8		1,440,745	7
	Retained earnings	6(21)
3310	Legal reserve				863,958		5		863,958		4		863,958	4
3350	Unappropriated earnings		(		654,205 ) (		4)		581,828		3		1,483,486	7
	Other equity interests	6(22)
3400	Other equity interests		(		31,253 )		-		20,148		-		15,807	-
3500	Treasury stock	6(19) and 8	(		1,167,369 ) (		6) (		1,167,369) (		6) (		1,167,369) (	5)
31XX	Total Equities Attributable
	to Parent Company				3,198,146	17			4,395,168	21			5,201,092	24
36XX	Non-controlling Interests				101,007		1 (		323,260) (		1) (		168,670) (	1)
3XXX	Total Equities				3,299,153	18			4,071,908	20			5,032,422	23
	Major Commitments and	9
	Contingencies
	Major Events after Financial	11
	Statement Date
3X2X	Total Liabilities and Equities			$	18,613,436	100		$	20,815,145	100		$	22,220,568	100

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

Chairman: Sean Chen

Managerial Officer: Lidon Chen Accounting Officer: Shu-Hua Lin

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Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statement January 1 to June 30, 2025 and 2024

Items	Notes	April 1 to June 30, 2025 Amount % $ 1,589,933 100 ( 1,475,387) ( 93) 114,546 7 ( 68,535) ( 4) ( 91,581) ( 6) ( 81,792) ( 5) 14,660 1 ( 227,248) ( 14) ( 112,702) ( 7) 4,576 - 14,870 1 ( 312,163) ( 20) ( 78,554) ( 5) ( 23,452) ( 1) ( 394,723) ( 25) ( 507,425) ( 32) 6,157 - ($ 501,268) ( 32) $ 391 - ( 64,191) ( 4) ($ 63,800) ( 4) ($ 565,068) ( 36) ($ 395,782) ( 25) ( 105,486) ( 7) ($ 501,268) ( 32) ($ 459,582) ( 29) ( 105,486) ( 7) ($ 565,068) ( 36) ($ 1.85) ($ 1.85)	April 1 to June 30, 2024 Amount % $ 1,997,876 100 ( 1,617,492 ) ( 81) 380,384 19 ( 82,659 ) ( 4) ( 28,913 ) ( 2) ( 95,689 ) ( 5) ( 26,781 ) ( 1) ( 234,042 ) ( 12) 146,342 7 8,800 1 6,178 - ( 384,767 ) ( 19) ( 94,305 ) ( 5) ( 15,271 ) ( 1) ( 479,365 ) ( 24) ( 333,023 ) ( 17) 13,406 1 ($ 319,617 ) ( 16) $ - - 4,186 - $ 4,186 - ($ 315,431 ) ( 16) ($ 244,849 ) ( 12) ( 74,768 ) ( 4) ($ 319,617 ) ( 16) ($ 240,663 ) ( 12) ( 74,768 ) ( 4) ($ 315,431 ) ( 16) ($ 1.15) ($ 1.15)	Unit: NT$ Thousand Earning (Loss) per Share in NTD January 1 to June 30, 2025 January 1 to June 30, 2024 Amount % Amount % $ 3,217,890 100 $ 3,847,924 100 ( 2,921,150)( 91) ( 3,137,338) ( 81) 296,740 9 710,586 19 ( 164,711) ( 5) ( 159,355) ( 4) ( 205,673) ( 7) ( 181,523) ( 5) ( 169,503) ( 5) ( 199,277) ( 5) ( 6,585) - ( 39,700) ( 1) ( 546,472)( 17) ( 579,855) ( 15) ( 249,732)( 8) 130,731 4 7,919 - 16,362 - 31,560 1 13,752 - ( 415,230) ( 13) 335,880 9 ( 159,997) ( 5) ( 173,510) ( 4) ( 30,743)( 1) ( 25,872) ( 1) ( 566,491)( 18) 166,612 4 ( 816,223) ( 26) 297,343 8 ( 8,649) - ( 23,047) ( 1) ($ 824,872)( 26) $ 274,296 7 $ 391 - $ - - ( 51,792)( 1) 14,166 1 ($ 51,401)( 1) $ 14,166 1 ($ 876,273)( 27) $ 288,462 8 ($ 652,717) ( 20) $ 429,360 11 ( 172,155)( 6) ( 155,064) ( 4) ($ 824,872)( 26) $ 274,296 7 ($ 704,118) ( 22) $ 443,526 12 ( 172,155)( 5) ( 155,064) ( 4) ($ 876,273)( 27) $ 288,462 8 ($ 3.05)$ 2.01 ($ 3.05)$ 1.86
4000 Operating income 5000 Operating costs 5900 Gross profit Operating Expenses 6100 Selling Expenses 6200 Administrative Expenses 6300 R&D Expenses 6450 Expected Credit Impairment Benefit (Loss) 6000 Total Operating Expenses 6900 Operating gains (losses) Non-operating income and expenses 7100 Interest income 7010 Other Incomes 7020 Other Gains and Losses 7050 Financial Costs 7060 The share of affiliates and joint venture profits and losses recognized by the equity method 7000 Total Non-Operating Incomes and Losses 7900Net profit (loss) before tax 7950 Income tax expense (or benefit) 8200Net profit (loss) for the period Other Comprehensive Incomes (Net) Components of other comprehensive income that will not be reclassified to profit or loss 8320 Profit and loss of associates and joint ventures recognized by using equity method - Items that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statement translation differences of foreign operations 8300Other Comprehensive Incomes (Net) 8500Total comprehensive income for the year Net Incomes (Losses) Attributable to: 8610 Parent Company 8620 Non-controlling Interests Total Total Comprehensive Incomes (Losses) Attributable to: 8710 Parent Company 8720 Non-controlling Interests Total Earnings (loss) per share 9750 Basic 9850 Diluted	6(23) and 7 6(5) and 7 6(28)(29) and 7 12(2) 6(24) 6(25) and 7 6(26) 6(27) and 7 6(6) 6(30) 6(22) 6(31)

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

Managerial Officer: Lidon Chen

Chairman: Sean Chen

Accounting Officer: Shu-Hua Lin

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Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Changes in Equity January 1 to June 30, 2025 and 2024

Unit: NT$ Thousand

Notes				Equity a	ttributableto shareh	ttributableto shareh	ol	ders of the parentcompany	ders of the parentcompany				Non- controlling Interests
	Capitalstock		Capitalsurplus	Retaine	d earnings			Otherequityinterests		Treasury stock		Total
				Legal reserve		Unappropriated earnings		Financial statement translation differences of foreign operations	Unrealized gain (loss) on investments on financial assets at fair value through other comprehensive income
6(22) 6(20) 6(19) 6(22) 6(20) 6(20) 4(3)	$ 2,564,465 - - - - - - - $ 2,564,465 $ 2,564,562 - - - - - - $ 2,564,562	$ 1,439,959 - - - - - 786 - $ 1,440,745 $ 1,532,041 - - - 97,085 ( 6,673 ) - $ 1,622,453		$ 827,460 - - - 36,498 - - - $ 863,958 $ 863,958 - - - - - - $ 863,958	$ 1,464,101 429,360 - 429,360 ( 36,498 ) ( 373,477 ) - - $ 1,483,486 $ 581,828 ( 652,717 ) - ( 652,717 ) - - ( 583,316 ) ($ 654,205 )		$ 4,307 - 14,166 14,166 - - - - $ 18,473 $ 22,814 - ( 51,792 ) ( 51,792 ) - - - ($ 28,978 )		($ 2,666 ) - - - - - - - ($ 2,666 ) ($ 2,666 ) - 391 391 - - - ($ 2,275 )	($ 1,174,484 ) - - - - - - 7,115 ($ 1,167,369 ) ($ 1,167,369 ) - - - - - - ($ 1,167,369 )	$ 5,123,142 429,360 14,166 443,526 - ( 373,477 ) 786 7,115 $ 5,201,092 $ 4,395,168 ( 652,717 ) ( 51,401 ) ( 704,118 ) 97,085 ( 6,673 ) ( 583,316 ) $ 3,198,146		($ 13,238 ) ( 155,064 ) - ( 155,064 ) - - ( 368 ) - ($ 168,670 ) ($ 323,260 ) ( 172,155 ) - ( 172,155 ) 13,106 - 583,316 $ 101,007	$ 5,109,904 274,296 14,166 288,462 - ( 373,477 ) 418 7,115 $ 5,032,422 $ 4,071,908 ( 824,872 ) ( 51,401 ) ( 876,273 ) 110,191 ( 6,673 ) - $ 3,299,153

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

Chairman: Sean Chen

Managerial Officer: Lidon Chen

Accounting Officer: Shu-Hua Lin

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Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flows January 1 to June 30, 2025 and 2024

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

Interest income

Interest Expenses

Subsidiaries donated treasury stock

Net loss/profit of financial assets and
liabilities at fair value through profit or
loss

Gain (loss) on disposal of investments

Share of losses of affiliated companies
recognized under the equity method

Disposal of interests in property, plant and
equipment

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
Notes Receivables
Accounts Receivables
Accounts Receivables－Related Parties
Other Receivables
Other Receivables－Related Parties
Inventories
Prepayments
Other Current Assets
Other Non-Current Assets
Net Changes of Liabilities related to
Operating Activities
Contract Liabilities
Notes Payable
Accounts Payable
Other Payables
Provisions
Other Current Liabilities
Defined Benefit Liabilities
Net Cash In-Flow from Operating
Interest Received
Interest Paid
Income Tax Paid
Net Cash In-Flow (Out-Flow) from
Operating Activities Notes
January 1 to June
30, 2025
January 1 to June
30, 2024
( $ 816,223 ) $ 297,343
6 (7)(8)(10)(28)
726,728
623,609
6(11)(28)
38,958
48,675
12(2)
6,585
39,700
6(24)
(
7,919 ) (
16,362 )
6(27)
159,997
173,510
7
-
7,115
6(2)(26)
401,005 (
294,468 )
6(6)(26)
(
49,191 ) (
45 )
6(6)
30,743
25,872
6(26)
(
30,032 ) (
13,950 )
6(8)(26)
(
32 ) (
1,459 )
6(11)(12) (26)
23,666
27,390
767,910 (
20,022 )
30,542
22,174
(
11,525 )
1,915
331,255 (
129,541 )
2,311 (
1,406 )
11,021
7,152
(
718 ) (
820 )
33,398 (
104,317 )
(
1,528 ) (
40,781 )
7,075 (
4,405 )
893 (
114 )
69,342 (
45,507 )
1,412
9,731
(
162,598 ) (
871 )
267,738
63,310
2,392 (
1,253 )
(
13,249 )
14,459
(
3,412) (
1,116)
1,816,544
685,518
7,919
16,362
(
132,826 ) (
149,902 )
(
9,419) (
22,804)
1,682,218
529,174

(Continued)

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Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flows January 1 to June 30, 2025 and 2024

Unit: NT$ Thousand

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

Proceeds from disposal of investments accounted
for using the equity method

Acquisition of Property, Plants and Equipment

Disposal of Property, Plants and Equipment

Acquisition of Intangible Assets

Increase in refundable deposit
Decrease of Guarantee 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

Repayment of corporate bonds

Redemption of Lease Principal

Increase in Guarantee Deposits Received

Decrease of Guarantee Deposits Received

Cash increase of non-controlling equity in
Subsidiaries

Net cash (outflow) inflow in funding
activities
Adjustments of Exchange Rate
Increase (Decrease) in Cash and Cash Equivalents
Beginning Balance of Cash and Cash Equivalents
Ending Balance of Cash and Cash Equivalents

Notes
January 1 to June
30, 2025
January 1 to June
30, 2024
6(3)
( $ 48,878 ) ( $ 122,719 )
6(3)
61,900
132,899
6(6)
- (
440,400 )
6(6)
60,616
-
6 (7)(32)
(
958,714 ) (
943,157 )
6(7)
95,176
36,859
6(11)
(
117 ) (
3,578 )
(
10,878 ) (
969 )
27,908
-
(
772,987 ) (
1,341,065 )
6 (33)
3,739,745
9,761,032
6 (33)
(
5,144,131 ) (
8,821,244 )
6 (33)
818,500
644,579
6 (33)
(
836,332 ) (
571,752 )
6 (33)
- (
299,417 )
6 (33)
(
21,791 ) (
25,207 )
6 (33)
31
-
6 (33)
(
33,890 ) (
7,004 )
4(3)
109,796
111,958
(
1,368,072 )
792,945
(
36,178 )
8,619
(
495,019 ) (
10,327 )
1,430,542
1,364,106
6(1)
$ 935,523 $ 1,353,779

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

Chairman: Sean Chen

Managerial Officer: Lidon Chen Accounting Officer: Shu-Hua Lin

~12~

Taiwan Mask Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Q2 2025 and 2024

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 and its subsidiary (collectively referred to as the "Group") mainly engage in the research, development, manufacturing and sales of photomask and integrated circuits, providing technical assistance, consultation, inspection and repair of the abovementioned products, and manufacturing and buying and selling of medical equipment.

II. Date and procedures for passing the financial statement

The consolidated financial statements were reported to the Board of Directors and issued on August 1, 2025.

III. Application of New and Revised International Financial Reporting Standards

(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 2025:

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

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

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(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 certain provisions of IFRS 9 and IFRS 7 regarding the January 1, 2026 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7, Sale “Power Purchase Agreement” January 1, 2026 IFRS 17 - Insurance contracts January 1, 2023 Amendment to IFRS 17 - Insurance contracts January 1, 2023 Amendments to IFRS 17 "First-time Adoption of IFRS 17 and IFRS 9 - January 1, 2023 Comparative Information" Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026

The Group 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 IFRS 10 and IAS 28 amendments, Sale or contribution of assets between an investor and its associate or joint venture IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	Effective Date Issued by
	IASB To be determined by the IASB January 1, 2027 January 1, 2027

The Group 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.

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IV. Summary of Significant Accounting Policies

Significant accounting policies are the same as those in Note 4 of the 2024 consolidated financial statements, except for the compliance statements, basis of preparation, basis of consolidation, and applicable parts of interim financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(I) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the IAS No. 34, “Interim Financial Reporting” as endorsed by the FSC.
The consolidated financial statements should be read in conjunction with the 2024 consolidated financial statements.

(II) Basis of Preparation

Except for the following items, these consolidated financial statements have been prepared under the historical cost convention.
(1) Financial assets and financial liabilities at fair value through profit or loss (including derivatives).
(2) Financial Assets at Fair Value Through Other Comprehensive Income.
(3) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
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 judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(III) Basis of consolidation

The basis for preparation of consolidated financial statements
The principles for preparing the consolidated financial statements are the same as those for the 2024 consolidated financial statements.

2. Subsidiaries included in the consolidated financial statements:

Name of Investment Company Name of Subsidiary Main Business Activity June 30, 2025 Taiwan Mask Corporation SunnyLake Park International Holding, Inc. Name of Investor 100 Taiwan Mask Corporation Youe Chung Capital Corporation Name of Investor 100 Taiwan Mask Corporation Miracle Technology CO., LTD. Electronics components manufacturing, electronics materials and precision equipment distribution and power component design 100 Taiwan Mask Corporation Innova Vision INC. Manufacturing, retail, wholesale and international trade of medical equipment 66.71	June 30,	Ownership (%) December 31, 2024 June 30, 2024 Explanation 100 100 Note 6 100 100 100 100 75.32 75.32 Note 4, Note 6

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Name of Investment Company Name of Subsidiary Main Business Activity June 30, 2025 Taiwan Mask Corporation One Test Systems Research, development and design of test equipment and related components 100 Taiwan Mask Corporation Pilot Energy Co., Ltd. Electronic parts and components and energy technical services 20.00 Youe Chung Capital Corporation Innova Vision INC. Manufacturing, retail, wholesale and international trade of medical equipment 0.13 Youe Chung Capital Corporation Aptos Technology INC. Design, packaging and testing of NAND flash memory, solid state drives and the related products 47.19 Youe Chung Capital Corporation Xsense Technology Corporation Name of Investor 100 Youe Chung Capital Corporation Xsense Technology Corporation (B.V.I.) Taiwan Branch Precious metal coating 53.00 Youe Chung Capital Corporation Digital-Can Tech. Co., Ltd. 3D Printing and Plastic Mold Design 57.39 Youe Chung Capital Corporation Pilot Energy Co., Ltd. Electronic parts and components and energy technical services 38.89 Youe Chung Capital Corporation Moment Semiconductor, Inc. Retail and wholesale of memory products 52.84 Aptos Technology INC. New Sunrise Limited Name of Investor 100 Pilot Energy Co., Ltd. ADL Energy Corp Electronic parts and components and energy technical services 100 ADL Energy Corp Aptos Global Holding Corp. Name of Investor 100 Miracle Technology CO., LTD. Jing Hao Investment Co., Ltd. Name of Investor 100 Miracle Technology CO., LTD. Miracle International Enterprise (Shanghai) Co., Ltd. Electronics components manufacturing, electronics materials and precision equipment distribution and power component design 100 Jing Hao Investment Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. Electronics components manufacturing, electronics materials and precision equipment distribution and power component design 100 Jing Hao Investment Co., Ltd. MIKO Technology Co., Ltd. Electronics components manufacturing, electronics materials and precision equipment distribution and power component design 100 Miko-China Enterprise (Shanghai) Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. IC product design, production and sales 79.17 Miracle International Enterprise(Shanghai) Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. IC product design, production and sales 20.83 Innova Vision INC. Innova Technology Medical equipment retail and 100	June 30,	Ownership (%) December 31, 2024 June 30, 2024 Explanation 100 100 Note 6 20.00 20.00 Note 3, Note 6 0.19 0.19 Note 4, Note 6 47.19 47.19 Note 2, Note 5, Note 6 100 100 Note 6 53.00 53.00 Note 6 57.39 57.39 Note 6 38.89 38.89 Note 3, Note 6 52.84 53.33 Note 1, Note 6 100 100 Note 6 100 100 Note 6 100 100 Note 6 100 100 Note 6 100 100 Note 6 100 100 Note 6 100 100 Note 6 79.17 79.17 Note 6 20.83 20.83 Note 6 100 100 Note 6

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Name of Investment Company Name of Subsidiary Main Business Activity June 30, 2025 wholesale Innova Vision INC. Innova Vision (B.V.I.) Inc. Name of Investor 100 Innova Vision INC. iPro Vision Inc. Medical equipment retail and wholesale 52.03 Innova Vision (B.V.I.) Inc. iPro Vision Inc. Medical equipment retail and wholesale 47.97	June 30,	Ownership (%) December 31, 2024 June 30, 2024 Explanation 100 100 Note 6 52.03 52.03 Note 6 47.97 47.97 Note 6

Note 1: In March 2023, the Company’s subsidiary, Youe Chung Capital Corporation, invested in Moment Semiconductor, Inc. with 53.33% shareholding. Moment Semiconductor, Inc. organized capital increase in cash by issuing new shares in September 2024. Youe Chung Capital Corporation did not execute based on shares proportion, so the shareholding declined from 53.33% to 52.84%; a capital reserve of NT$410 was recognized.
Note 2: The Company's subsidiary, Youe Chung Capital Corporation, which holds a majority of the Board of Directors of the company, has substantial control over the company and therefore included the company in the consolidated financial statements as a consolidated entity.
Note 3: Pilot Battery Co., Ltd. was renamed Pilot Energy Co., Ltd. in April 2024.
Note 4: The Company and its subsidiary, Youe Chung Capital Corporation, originally held 75.32% and 0.19% of the shares, respectively. In January 2025, Innova Vision Inc. conducted a capital increase through a cash capital increase of NT$200,000. Although the Company and its subsidiary participated in the subscription, they did not subscribe in proportion to their original shareholding percentages. As a result, their ownership decreased from 75.32% and 0.19% to 66.71% and 0.13%, respectively. A capital reserve of NT$57,918 was recognized.
Note 5: The shareholders’ meeting of Aptos Technology INC. passed a resolution to dissolve the company in June 2025 and filed for bankruptcy with the court in the same month. As of the date of these consolidated financial statements, the liquidation process has not yet been completed.
Note 6: The financial statements of the entity as of and for the three months ended June 30, 2025 and 2024 were not reviewed by independent accountants as the entity did not meet the definition of a significant subsidiary.
Subsidiaries not included in the consolidated financial statement: None.
Adjustments for subsidiaries with different balance sheet dates: None.
Significant restrictions: None.

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Subsidiaries that have non-controlling interests that are material to the Corporate Group:
The total non-controlling interests of the Group as of June 30, 2025, December 31 and June 30, 2024 were NT$101,007, NT$(323,260) and NT$(168,670), respectively. The following information shows subsidiaries that have non-controlling interests that are material to the Group:

Name of Subsidiary Aptos Technology and its subsidiaries Xsense Technology Corporation (B.V.I.) Taiwan Branch Pilot Energy Co., Ltd. and its subsidiaries	Main location of business Taiwan ($ Taiwan ( Taiwan	Non-controlling June 30, 2025 Ownership percentage Amount 71,559) 52.81% ($ 57,314) 47.00% ( 179,526 41.11%	Non-controlling	Interests December 31, 2024 Ownership percentage Amount 372,100) 52.81% 163,673) 47.00% 176,835 41.11%	Explanation

Name of Subsidiary Aptos Technology and its subsidiaries Xsense Technology Corporation (B.V.I.) Taiwan Branch Pilot Energy Co., Ltd. and its subsidiaries	Main location of business Taiwan ($ Taiwan ( Taiwan	June 30, 2024 Ratio of Share Amount Percentage 313,375) 52.81% 98,228) 47.00% 198,736 41.11%	Explanation

Aggregate financial information of subsidiaries:

Balance Sheet

Current assets Non-Current Assets Current liabilities Non-current liabilities Total net assets	Aptos Technology and its subsidiaries June 30, 2025 December 31, 2024 $ 20,959 $ 103,917 11,612 357,565 ( 726,279) ( 908,842) ( 61) ( 257,219) ($ 693,769) ($ 704,579)	June 30, 2024 $ 186,876 401,831 ( 882,764) ( 299,325) ($ 593,382)
	June 30, 2025 $ 20,959 11,612 ( 726,279) ( 61) ($ 693,769)

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	Xsense Technology Corporation (B.V.I.) Taiwan	Xsense Technology Corporation (B.V.I.) Taiwan	Branch
	June 30, 2025	December 31, 2024	June 30, 2024
Current assets	$ 167,982	$ 296,422	$ 468,913
Non-Current Assets	189,626	250,523	249,012
Current liabilities	( 703,483)	( 741,059)	( 852,870)
Non-current	( 127,873)	( 154,097)	( 74,032)
liabilities
Total net assets	($ 473,748)	($ 348,211)	($ 208,977)
	Pilot Energy Co., Ltd.	and its subsidiaries
	June 30, 2025	December 31, 2024	June 30, 2024
Current assets	$ 217,015	$ 246,193	$ 351,683
Non-Current Assets	427,465	388,182	203,229
Current liabilities	( 178,295)	( 166,838)	( 78,502)
Non-current	( 194,140)	( 165,666)	( 127,848)
liabilities
Total net assets	$ 272,045	$ 301,871	$ 348,562

Statement of Comprehensive Income Aptos Technology and its subsidiaries April 1 to June 30, 2025 April 1 to June 30, 2024 Revenue $ 69,329 $ 135,725 Net loss before taxes ( 59,371) ( 69,205) Income tax benefits - - Net loss of current period from continuing operations ( 59,371) ( 69,205) Net loss ( 59,371) ( 69,205) Other comprehensive income (net after tax) - - Total comprehensive income for the year ($ 59,371) ($ 69,205) Aptos Technology and its subsidiaries January 1 to June 30, 2025 January 1 to June 30, 2024 Revenue $ 130,653 $ 189,615 Net loss before taxes ( 72,190) ( 123,308) Income tax benefits - - Net loss of current period from continuing operations ( 72,190) ( 123,308) Net loss ( 72,190) ( 123,308) Other comprehensive income (net after tax) - - Total comprehensive income for the year ($ 72,190) ($ 123,308)	Statement of Comprehensive Income Aptos Technology and its subsidiaries April 1 to June 30, 2025 April 1 to June 30, 2024 Revenue $ 69,329 $ 135,725 Net loss before taxes ( 59,371) ( 69,205) Income tax benefits - - Net loss of current period from continuing operations ( 59,371) ( 69,205) Net loss ( 59,371) ( 69,205) Other comprehensive income (net after tax) - - Total comprehensive income for the year ($ 59,371) ($ 69,205) Aptos Technology and its subsidiaries January 1 to June 30, 2025 January 1 to June 30, 2024 Revenue $ 130,653 $ 189,615 Net loss before taxes ( 72,190) ( 123,308) Income tax benefits - - Net loss of current period from continuing operations ( 72,190) ( 123,308) Net loss ( 72,190) ( 123,308) Other comprehensive income (net after tax) - - Total comprehensive income for the year ($ 72,190) ($ 123,308)	Statement of Comprehensive Income Aptos Technology and its subsidiaries April 1 to June 30, 2025 April 1 to June 30, 2024 Revenue $ 69,329 $ 135,725 Net loss before taxes ( 59,371) ( 69,205) Income tax benefits - - Net loss of current period from continuing operations ( 59,371) ( 69,205) Net loss ( 59,371) ( 69,205) Other comprehensive income (net after tax) - - Total comprehensive income for the year ($ 59,371) ($ 69,205) Aptos Technology and its subsidiaries January 1 to June 30, 2025 January 1 to June 30, 2024 Revenue $ 130,653 $ 189,615 Net loss before taxes ( 72,190) ( 123,308) Income tax benefits - - Net loss of current period from continuing operations ( 72,190) ( 123,308) Net loss ( 72,190) ( 123,308) Other comprehensive income (net after tax) - - Total comprehensive income for the year ($ 72,190) ($ 123,308)
	January 1 to June 30, 2025 $ 130,653 ( 72,190) - ( 72,190) ( 72,190) - ($ 72,190)
		$ 189,615
		( 123,308) -
		( 123,308) ( 123,308) -
		($ 123,308)

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Revenue Net loss before taxes Income tax benefits Net loss of current period from continuing operations Net loss Other comprehensive income (net after tax) Total comprehensive income for the year Revenue Net loss before taxes Income tax benefits Net loss of current period from continuing operations Net loss Other comprehensive income (net after tax) Total comprehensive income for the year Revenue Net loss before taxes Income tax benefits Net loss of current period from continuing operations Net loss Other comprehensive income (net after tax) Total comprehensive income for the year Revenue Net loss before taxes Income tax benefits Net loss of current period from continuing operations Net loss Other comprehensive income (net after tax) Total comprehensive income for the year	Xsense Technology Corporation (B.V.I.) Taiwan Branch	Xsense Technology Corporation (B.V.I.) Taiwan Branch
	April 1 to June 30, 2025 $ 72,312	April 1 to June 30, 2024 $ 196,069
	( 49,053) ( 18,563) - -
	( 49,053) ( 18,563) ( 49,053) ( 18,563) - -
	($ 49,053) ($ 18,563) Xsense Technology Corporation (B.V.I.) Taiwan Branch
	January 1 to June 30, 2025 January 1 to June 30, 2024
	$ 147,000 $ 352,491
	( 125,537) ( 54,381) - -
	( 125,537) ( 54,381) ( 125,537) ( 54,381) - -
	($ 125,537) ($ 54,381) Pilot Energy Co., Ltd. and its subsidiaries April 1 to June 30, 2025 April 1 to June 30, 2024 $ 65,881 $ 14,760
	April 1 to June 30, 2025 $ 65,881
	( 14,396) ( 28,128) - -
	( 14,396) ( 28,128) ( 14,396) ( 28,128) - -
	($ 14,396) ($ 28,128) Pilot Energy Co., Ltd. and its subsidiaries January 1 to June 30, 2025 January 1 to June 30, 2024
	$ 94,462 $ 72,728
	( 34,490) ( 56,835) - -
	( 34,490) ( 56,835) ( 34,490) ( 56,835) - -
	($ 34,490) ($ 56,835)

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Statements of Cash Flows

Statements of Cash Flows
Cash In-Flow (Out-Flow) from Operating Activities Net cash (outflow) inflow in investing activities Net cash (outflow) inflow in funding activities Net increase (decrease) in cash and cash equivalents Beginning Balance of Cash and Cash Equivalents Ending Balance of Cash and Cash Equivalents Cash In-Flow (Out-Flow) from Operating Activities Net cash (outflow) inflow in investing activities Net cash (outflow) inflow in funding activities Net increase (decrease) in cash and cash equivalents Beginning Balance of Cash and Cash Equivalents Ending Balance of Cash and Cash Equivalents Cash In-Flow (Out-Flow) from Operating Activities Net cash (outflow) inflow in investing activities Net cash (outflow) inflow in funding activities Net increase (decrease) in cash and cash equivalents Beginning Balance of Cash and Cash Equivalents Ending Balance of Cash and Cash Equivalents	Aptos Technology and its subsidiaries January 1 to June 30, 2025 January 1 to June 30, 2024 $ 190,836 ($ 67,304) 8,487 2,821 ( 196,221) 11,491 3,102 ( 52,992) 11,282 57,865 $ 14,384 $ 4,873 Xsense Technology Corporation (B.V.I.) Taiwan Branch January 1 to June 30, 2025 January 1 to June 30, 2024 $ 23,092 ($ 79,219) 15,523 ( 14,023) ( 98,989) 54,826 ( 60,374) ( 38,416) 65,060 49,823 $ 4,686 $ 11,407 Pilot Energy Co., Ltd. and its subsidiaries January 1 to June 30, 2025 January 1 to June 30, 2024 ($ 19,553) $ 46,188 ( 90,805) ( 152,802) 69,618 ( 63,260) ( 40,740) ( 169,874) 59,897 231,797 $ 19,157 $ 61,923
	January 1 to June 30, 2025 ($ 19,553) ( 90,805) 69,618 ( 40,740) 59,897 $ 19,157

Cash In-Flow (Out-Flow) from Operating
Activities
Net cash (outflow) inflow in investing
activities
Net cash (outflow) inflow in funding
activities
Net increase (decrease) in cash and cash
equivalents
Beginning Balance of Cash and Cash
Equivalents
Ending Balance of Cash and Cash
Equivalents
Cash In-Flow (Out-Flow) from Operating
Activities
Net cash (outflow) inflow in investing
activities
Net cash (outflow) inflow in funding
activities
Net increase (decrease) in cash and cash
equivalents
Beginning Balance of Cash and Cash
Equivalents
Ending Balance of Cash and Cash
Equivalents
Cash In-Flow (Out-Flow) from Operating
Activities
Net cash (outflow) inflow in investing
activities
Net cash (outflow) inflow in funding
activities
Net increase (decrease) in cash and cash
equivalents
Beginning Balance of Cash and Cash
Equivalents
Ending Balance of Cash and Cash
Equivalents

Aptos Technology and its subsidiaries
January 1 to June 30, 2025
January 1 to June 30, 2024
$ 190,836
($ 67,304)
8,487
2,821
( 196,221)
11,491
3,102
( 52,992)
11,282
57,865
$ 14,384
$ 4,873
Xsense Technology Corporation (B.V.I.) Taiwan Branch
January 1 to June 30, 2025
January 1 to June 30, 2024
$ 23,092
($ 79,219)
15,523
( 14,023)
( 98,989)
54,826
( 60,374)
( 38,416)
65,060
49,823
$ 4,686
$ 11,407
Pilot Energy Co., Ltd. and its subsidiaries
January 1 to June 30, 2025
January 1 to June 30, 2024
($ 19,553)
$ 46,188
( 90,805)
( 152,802)
69,618
( 63,260)
( 40,740)
( 169,874)
59,897
231,797
$ 19,157
$ 61,923

January 1 to June 30, 2025
($ 19,553)
( 90,805)
69,618
( 40,740)
59,897
$ 19,157

After evaluating the operating conditions of its subsidiaries, Aptos Technology INC. and Xsense Technology Corporation, INC. Taiwan Branch, and the recoverability of related receivables, the Group recognized an impairment impact of NT$583,316. The amount was adjusted against retained earnings and non-controlling interests.

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(IV) Employee benefits

Pensions

Defined benefit plans

The calculation of pension cost during the interim period adopts the pension cost rate determined by actuarial calculations at the end of the previous financial year, and is based on the beginning of the year to the end of the current period. If there are major market changes and major reductions, liquidation or other major one-off events after the end date, adjustments shall be made and relevant information shall be disclosed in accordance with the abovementioned policies.

(V) Income tax

Income tax expenses of the interim period are calculated based on the estimated annual average effective tax rate applied to the pre-tax profit and loss of the interim period, and the relevant information shall be disclosed in accordance with the aforementioned policies.

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

There are no major changes, please refer to Note 5 of the 2024 consolidated financial statements.

VI. Summary of Significant Accounting Items

(I) Cash and Cash Equivalents

Cash on hand Checking accounts and demand deposits Time deposits Total	June 30, 2025 $ 500 935,023 -	December 31, 2024	June 30, 2024 $ 731 1,316,743 36,305 $ 1,353,779
		$ 396 1,426,654 3,492
	$ 935,523	$ 1,430,542

The Group 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.
The Group has no cash and cash and cash equivalents pledged to others.

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

Items June 30, 2025 Current items: Mandatory financial assets at fair value through profit or loss Shares of listed and OTC company $ 2,558,695 Valuation adjustment ( 603,073) $ 1,955,622 Financial liabilities mandatorily measured at fair value through profit or loss Convertible bond call/put options ($ 30,694) Non-current items: Mandatory financial assets at fair value through profit or loss Shares of listed and OTC company $ 99,900 Shares of non-listed and non-OTC company 24,516 Limited partnership 120,302 244,718 Valuation adjustment ( 41,449) $ 203,269	Items June 30, 2025 Current items: Mandatory financial assets at fair value through profit or loss Shares of listed and OTC company $ 2,558,695 Valuation adjustment ( 603,073) $ 1,955,622 Financial liabilities mandatorily measured at fair value through profit or loss Convertible bond call/put options ($ 30,694) Non-current items: Mandatory financial assets at fair value through profit or loss Shares of listed and OTC company $ 99,900 Shares of non-listed and non-OTC company 24,516 Limited partnership 120,302 244,718 Valuation adjustment ( 41,449) $ 203,269	December 31, 2024	June 30, 2024 $ 1,351,033 340,609 $ 1,691,642 ($ 5,864) $ 2,689,504 125,515 100,000 2,915,019 227,069 $ 3,142,088
		$ 3,469,504 ( 340,429) $ 3,129,075
		($ 19,204) $ 87,400 125,674 95,302
	244,718 ( 41,449) $ 203,269	308,376 ( 121,135) $ 187,241

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Details of financial assets/liabilities at fair value through profit or loss recognized in profit or loss are as follows:

April 1 to June 30, 2025
Financial assets mandatorily measured at
fair value through profit or loss
Shares of listed and OTC company
($ 244,315)
Convertible bond call/put options
( 2,954)
Beneficiary certificates
-
Shares of non-listed and non-OTC
company
-
($ 247,269)
January 1 to June 30, 2025
Financial assets mandatorily measured at
fair value through profit or loss
Shares of listed and OTC company
($ 389,515)
Convertible bond call/put options
( 11,490)
Beneficiary certificates
-
Shares of non-listed and non-OTC
company
-
($ 401,005)

April 1 to June 30, 2024
($ 407,078)
5,195
-
( 1,736)
($ 403,619)
January 1 to June 30, 2024
$ 274,069
3,519
-
16,880
$ 294,468

Please see Note 8 on how the Group provides financial assets at fair value through profit or loss as a pledged collateral.
Please see Note 12 (2) and (3) for the price risk and fair value information related to financial assets and liabilities at fair value through profit or loss.

(III) Financial assets measured at amortized cost

Items Current items: Demand Deposit Time deposits Non-current items: Demand Deposit Time deposits Total	June 30, 2025 $ 154,352 59,528 $ 213,880 $ 382,809 263,910 $ 646,719	December 31, 2024 $ 148,097 79,437 $ 227,534 $ 384,710 282,341 $ 667,051	June 30, 2024 $ 155,799 179,346 $ 335,145 $ 292,110 289,047 $ 581,157

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

Interest income Interest income	April 1 to June 30, 2025 $ 2,731 January 1 to June 30, 2025 $ 4,684	April 1 to June 30, 2024 $ 2,753
		January 1 to June 30, 2024
		$ 5,317

~24~

As of June 30, 2025, December 31, 2024 and June 30, 2024, without taking into account any collateral held or credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group was NT$860,599, NT$894,585 and NT$916,302, respectively.
Please see Note VIII on how the Group provides financial assets at amortized cost as a pledged collateral.

(IV) Notes and accounts receivable

June 30, 2025 $ 11,692	December 31, 2024	June 30, 2024 $ 4,134
	$ 167
$ 1,140,289 72	$ 1,478,141 2,383	$ 1,637,771 1,432
		1,639,203 ( 69,124)
		$ 1,570,079

Aging of accounts receivable notes receivable is as follows:

June 30, 2025 December 31, 2024 Accounts Receivables Notes Receivables Accounts Receivables Notes Receivables	June 30, 2025 December 31, 2024 Accounts Receivables Notes Receivables Accounts Receivables Notes Receivables	June 30, 2025 December 31, 2024 Accounts Receivables Notes Receivables Accounts Receivables Notes Receivables	June 30, 2025 December 31, 2024 Accounts Receivables Notes Receivables Accounts Receivables Notes Receivables
$ 850,928 128,577 32,641 9,835 118,380 $ 1,140,361	$ 11,692 - - - -	$ 1,041,381 $ 167 142,862 - 116,488 - 43,381 - 136,412 - $ 1,480,524 $ 167 June 30, 2024 Accounts Receivables Notes Receivables
	$ 11,692

		$ 1,254,784 202,205 73,236 58,989 49,989 $ 1,639,203	$ 4,134 - - - - $ 4,134

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

~25~

As of June 30, 2025, December 31 and June 30, 2024, accounts receivable and notes receivable were entirely from contracts with customers. The balances of accounts receivable from contracts with customers as of January 1, 2024 was NT$1,484,881.
While not considering collaterals or other credit enhancements, the accounts receivable and notes receivable held by the Group had the maximum exposure of credit risk at NT$1,041,303, NT$1,369,929 and NT$1,574,213, respectively, as of June 30, 2025, December 31 and June 30 of 2024.
Please refer to Note 12 (2) for the information on credit risk of accounts receivable.
(V) Inventories

June 30, 2025

	June 30, 2025
Raw materials Work in process Finished goods Merchandise Total Raw materials Work in process Finished goods Merchandise Total Raw materials Work in process Finished goods Merchandise Total	Cost $ 291,127 118,525 199,798 170,087 $ 779,537 December 31, 2024	(Gain from reversal	Book value $ 251,209 102,348 190,369 146,457
		of) loss allowance on
		decline in market value of inventories ($ 39,918) ( 16,177) ( 9,429) ( 23,630) ($ 89,154) (Gain from reversal
			$ 690,383
			Book value $ 259,205 111,997 116,239 236,340
	Cost $ 332,936 144,526 141,455 259,813 $ 878,730 June 30, 2024 Cost $ 317,820 175,028 239,498 202,213 $ 934,559
		of) loss allowance on
		decline in market value of inventories ($ 73,731) ( 32,529) ( 25,216) ( 23,473) ($ 154,949) (Gain from reversal
			$ 723,781
			Book value $ 251,677 160,906 205,793 187,764
		of) loss allowance on
		decline in market value of inventories ($ 66,143) ( 14,122) ( 33,705) ( 14,449) ($ 128,419)
			$ 806,140

~26~

The cost of inventories recognized as losses by the Corporate Group.

Cost of goods sold Inventory valuation losses and (recovery gains) or obsolescence losses Revenue from sales of leftovers Others Cost of goods sold Inventory valuation losses and (recovery gains) or obsolescence losses Revenue from sales of leftovers Others	April 1 to June 30, 2025 $ 1,482,308 ( 6,005) ( 916) - $ 1,475,387 January 1 to June 30, 2025 $ 2,939,363 ( 16,495) ( 1,718) - $ 2,921,150	April 1 to June 30, 2024 $ 1,588,457 28,618 ( 1,127) 1,544
		$ 1,617,492 January 1 to June 30, 2024
		$ 3,101,817 34,747 ( 1,127) 1,901
		$ 3,137,338

From April 1 to June 30, 2025 and January 1 to June 30, 2025, part of the inventory for which the provision for impairment losses had been made in the previous period was sold, resulting in a recovery in the net realizable value of the inventory, which was recognized as a decrease in operating costs.

(VI) Investment under Equity Method

Affiliates: Advagene Biopharma Co., Ltd. Weida Hi-Tech Co., Ltd. TrueLight Corporation BKS Tec Corp.	June 30, 2025 $ 38,030 20,178 374,720 6,652 $ 439,580	December 31, 2024 $ 56,495 25,851 388,848 18,198 $ 489,392	June 30, 2024 $ 32,152 22,479 401,072 25,953 $ 481,656

Affiliates
(1) The basic information about the Group’s significant related parties is as follows:

Shareholding percentage

Name of Company TrueLight Corporation	Main location	June 30, 2025 12.11%	December 31, 2024 12.11%	June 30, 2024 12.11%	Measurement method Equity method
	of business Taiwan

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(2) The summarized financial information about the Group’s significant related parties is as follows:
Balance Sheet

Current assets Non-Current Assets Current liabilities Non-current liabilities Total net assets Proportion of net assets attributable to the related party Goodwill Book value of affiliates	TrueLight Corporation June 30, 2025 December 31, 2024 $ 592,558 $ 729,988 662,762 622,913 ( 200,892) ( 222,706) ( 214,310) ( 173,413) $ 840,118 $ 956,782 $ 101,742 $ 115,870 272,978 272,978 $ 374,720 $ 388,848	June 30, 2024 $ 961,497 644,866 ( 440,053) ( 106,538) $ 1,059,772 $ 128,094 272,978 $ 401,072
	June 30, 2025 $ 592,558 662,762 ( 200,892) ( 214,310) $ 840,118 $ 101,742 272,978 $ 374,720

Statement of Comprehensive Income TrueLight Corporation April 1 to June 30, 2025 Revenue $ 285,591 Net income of current period from continuing operations ($ 56,464) Other comprehensive income (net after tax) - Total comprehensive income for the year ($ 56,464) Dividends received from related parties $- TrueLight Corporation January 1 to June 30, 2025 Revenue $ 355,278 Net loss of current period from continuing operations ($ 52,774) Other comprehensive income (net after tax) - Total comprehensive income for the year ($ 52,774) Dividends received from related parties $-	April 1 to June 30, 2024 $ 138,628
	($ 62,002) -
	($ 62,002) $-
	January 1 to June 30, 2024
	$ 283,920
	($ 135,042) -
	($ 135,042) $-

(3) The book value and the share of operating results of each of the Group's insignificant affiliates are summarized as follows:

As of June 30, 2025, December 31 and June 30, 2024 the total amount of individual non-

~28~

material associates of the Group was NT$64,860, NT$100,544, and NT$80,584, respectively.

Total comprehensive income for the year Total comprehensive income for the year	April 1 to June 30, 2025 ($ 16,057) January 1 to June 30, 2025 ($ 24,394)	April 1 to June 30, 2024 ($ 7,524) January 1 to June 30, 2024
		($ 16,992)

As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group held 20.29%, 28.20% and 25.62% of shares of Advagene Biopharma Co., Ltd., respectively, and 28.20%, 29.54% and 28.20% of shares of Weida Hi-Tech Co., Ltd., respectively, making it the single largest shareholder in each case. However, the Group did not hold a majority of the Board of Directors' seats and therefore did not participate in all operational decisions and business policies including strategic decisions (e.g., financing, acquisition, personnel and dividend policies, etc.) of Advagene Biopharma Co., Ltd. and Weida Hi-Tech Co., Ltd. The Group's shareholdings alone did not meet the required attendance rate at shareholders' meetings, indicating that the Group has no power to direct relevant activities and therefore the Group does not have control over the company and has only significant influence.
The Group sold the shares of Advagene Biopharma Co., Ltd. from January to June 2025, resulting in a decrease in shareholding from 25.62% to 20.29%; a gain on disposal of investments of NT$49,191 was recognized.
In March 2024, the Group acquired 13,500 thousand common shares of TrueLight Corporation through private placement with an investment amount of NT$410,400. As of June 30, 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 Group has no actual ability to direct relevant activities. Therefore, it is concluded that the Group has no control over the company and only has significant influence.
In April 2024, the Group acquired 6,000 thousand common shares of BKS Tec Corp. through capital increase in cash, with an investment amount of NT$30,000. As of June 30, 2025, the shareholding ratio was 38.91%, making the Group the single largest shareholder of the company. However, the Group did not hold a majority of the Board of Directors' seats and therefore did not actually participate in the business decisions and operating policies, including strategic decisions (such as financing, acquisitions, personnel and dividend policies) of BKS Tec Corp. The Group's shareholding alone does not reach the statutory attendance percentage of shareholders meetings, indicating that the Group has no actual ability to direct relevant activities. Therefore, it is concluded that the Group has no control over the company and only has significant influence.
For the three months and six months ended June 30, 2025 and 2024, the audited company TrueLight Corporation, the investment income (loss) of long-term equity investments using the equity method is recognized based on the financial statements compiled by the investees for the same period while not reviewed by a CPA.

~29~

(VII) Property, plant and equipment

Buildings and structures (including	Buildings and structures (including	Machinery and equipment $ 9,602,172 ( 3,363,404) $ 6,238,768 $ 6,238,768 42,353 ( 466,182) 401,232 ( 486,889) 791,489 $ 6,520,771 $ 9,969,832 ( 3,449,061) $ 6,520,771	Office equipment	Transportation equipment $ 9,327 ( 5,607) $ 3,720 $ 3,720 270 ( 1,520) 1,326 ( 646) - $ 3,150 $ 8,077 ( 4,927) $ 3,150	Other equipment $ 990,567 ( 408,752) $ 581,815 $ 581,815 38,118 ( 1,857) 1,857 ( 86,171) ( 8,519) ( $ 525,243 $ 1,018,309 ( 493,066) $ 525,243	Other equipment $ 990,567 ( 408,752) $ 581,815 $ 581,815 38,118 ( 1,857) 1,857 ( 86,171) ( 8,519) ( $ 525,243 $ 1,018,309 ( 493,066) $ 525,243	Unfinished construction and	Unfinished construction and
							equipment under
$ (	land) 3,057,156 1,156,092) 1,901,064 1,901,064 19,152 - - 114,462) 15,552) 1,790,202 3,060,756 1,270,554) 1,790,202						$	acceptance 1,588,591 - 1,588,591 1,588,591 800,326 - - - 798,923) 1,589,994 1,589,994 - 1,589,994
			$ 107,518 ( 68,073) $ 39,445 $ 39,445 4,897 ( 245) 245 ( 9,931) - $ 34,411 $ 112,170 ( 77,759) $ 34,411		$ 990,567 ( 408,752) $ 581,815 $ 581,815 38,118 ( 1,857) 1,857 ( 86,171) ( 8,519) $ 525,243 $ 1,018,309 ( 493,066) $ 525,243
$				$			$
$ ( (		$ ( (		$ ( (		(	$
$		$		$			$
$ (		$ ( $		$ (			$
$				$			$

~30~

Buildings and structures (including	Buildings and structures (including	Machinery and equipment $ 8,379,360 ( 2,680,006) $ 5,699,354 $ 5,699,354 227,004 ( 91,040) 68,131 ( 396,346) 485,527 $ 5,992,630 $ 9,000,851 ( 3,008,221) $ 5,992,630	Other equipment	Unfinished construction and equipment under acceptance $ 1,162,876 - $ 1,162,876 $ 1,162,876 469,893 - - - ( 499,938) $ 1,132,831 $ 1,132,831 - $ 1,132,831	Unfinished construction and equipment under acceptance $ 1,162,876 - $ 1,162,876 $ 1,162,876 469,893 - - - ( 499,938) $ 1,132,831 $ 1,132,831 - $ 1,132,831
$ (	land) 2,966,356 938,487) 2,027,849 2,027,849 42,437 - - 110,005) 14,252				acceptance 1,162,876 - 1,162,876 1,162,876 469,893 - - - 499,938) 1,132,831 1,132,831 - 1,132,831
			$ 764,529 ( 240,244) $ 524,285 $ 524,285 63,506 ( 130) 130 ( 74,017) 9,077 $ 522,851 $ 836,982 ( 314,131) $ 522,851
$				$
$ (		$ ( (		$ (
$	1,974,553 3,023,045 1,048,492) 1,974,553	$		$
$ ( $		$ ( $		$
				$

The Group had no interest capitalization for investment property in the period between January 1 and June 30, 2025 and 2024.
The major components of the Group's houses and buildings include land, buildings and factory renovation projects. Except for land, they are depreciated for 5 to 56 years.
Information on property, plant and equipment pledged to others as collateral is provided in Note 8.
The abovementioned property, plant and equipment of the Group are for self-use.

~31~

(VIII) Leasing arrangements - lessee
The underlying assets leased by the Group include land, buildings and company vehicles. 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.
The carrying amount of right-of-use assets and the depreciation charge are as follows:

	June 30, 2025	June 30, 2025	June 30, 2025	December 31, 2024	December 31, 2024	June 30, 2024	June 30, 2024
	Book value			Book value		Book value
Land	$	314,272		$ 331,679		$ 472,947
Buildings and structures			9,467		15,268		17,935
Transportation equipment
(company vehicles)			15,098		17,911		15,630
Other equipment			56,679		59,406		38,158
	$	395,516		$ 424,264		$ 544,670
		April 1 to June		30, 2025	April 1 to June 30, 2024
		Depreciation			Depreciation
Land		$		4,474	$		6,501
Buildings and structures				2,864			3,006
Transportation equipment vehicles)	(company			2,843			2,906
Other equipment				1,205			823
		$		11,386	$		13,236
		January 1 to June 30, 2025			January 1 to June 30, 2024
		Depreciation			Depreciation
Land		$		8,947	$		13,002
Buildings and structures				6,008			6,425
Transportation equipment	(company
vehicles)				5,487			5,943
Other equipment				2,408			1,647
		$		22,850	$		27,017

For the period between January 1 and June 30, 2025 and 2024, the increase (decrease) in the right-of-use assets was (NT$5,898) and NT$17,057, respectively.

~32~

4. 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	January 1 to June 30, 2025 $ 3,106 1,382 1,054 32	January 1 to June 30, 2024 $ 3,812 2,734 1,225 1,459

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	April 1 to June 30, 2025 $ 1,531 764 386 8	April 1 to June 30, 2024 $ 1,934 2,210 76 591

For the six months ended June 30, 2025 and 2024, the Group’s total cash outflow for leases were NT$27,333 and NT$32,980, respectively.
Options to extend or terminate leases

In determining lease terms, the Group takes 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 Group leases out assets such as buildings. The lease contracts are typically made for periods of 1 to 2 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 Group’s rent receivable has no overdue payment, and the credit risk loss amount is not significant after assessment.
The Group recognized rental income of NT$5,432, NT$5,566, NT$10,854 and NT$9,975 based on operating lease contracts in the periods between April 1 and June 30 of 2025 and 2024 and between January 1 and June 30 of 2025 and 2024, respectively, and none of the lease contracts was a variable lease payment.
The maturity analysis of the undiscounted lease payments under the operating leases is as follows:

2024 2025	June 30, 2025 $ - 8,512 $ 8,512	December 31, 2024 $ - 18,261 $ 18,261	June 30, 2024 $ 8,406 -
			$ 8,406

~33~

(X) Real estate investment

January 1, 2025 Cost Accumulated depreciation January 1,2025 Reclassification for the period -- Cost Reclassification for the period -- Accumulated depreciation Depreciation June 30 June 30, 2025 Cost Accumulated depreciation January 1, 2024 Cost Accumulated depreciation January 1,2024 Depreciation June 30 June 30, 2024 Cost Accumulated depreciation	Buildings and structures
	$ 192,176 ( 25,067) $ 167,109 $ 167,109 16,874 ( 1,322) ( 1,864) $ 180,797 $ 209,050 ( 28,253) $ 180,797 Buildings and structures
	$ 192,176 ( 21,676) $ 170,500 $ 170,500 ( 1,696) $ 168,804 $ 192,176 ( 23,372) $ 168,804

~34~

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

April 1 to June 30, 2025 Rental income from investment property$ 5,432 Direct operating expenses incurred by investment property that generates rental income for the period $ 1,103 January 1 to June 30, 2025 Rental income from investment property$ 10,854 Direct operating expenses incurred by investment property that generates rental income for the period $ 2,250	April 1 to June 30, 2024 $ 5,566 $ 866
	January 1 to June 30, 2024 $ 9,975 $ 1,733

The fair value of investment property held by the Group as of June 30, 2025, December 31, 2024 and June 30, 2024 was NT$285,223, NT$271,457 and NT$159,256, respectively, which were measured using income approach and were classified as Level 3 fair value with the following key assumptions:

Discount rate Annual rent (net income) Number of years	June 30, 2025 3.49%~4.17% $ 19,606 45~50	December 31, 2024 3.36%~5.65% $ 17,955 45~50	June 30, 2024
			3.75%~5.89% $ 15,507 45~50

No capitalization of interest for investment property in the period between January 1 and June 30, 2025 and 2024.
As of June 30, 2025, December 31, 2024 and June 30, 2024, the investment property was pledged as collaterals, please refer to Note 8 for details.

~35~

(XI)

2025 Trademark and concession $ 276,588 ( 96,765) $ 179,823 $ 179,823 - ( 13,542) - - $ 166,281 $ 276,588 ( 110,307) $ 166,281	2025 Trademark and concession $ 276,588 ( 96,765) $ 179,823 $ 179,823 - ( 13,542) - - $ 166,281 $ 276,588 ( 110,307) $ 166,281	Computer software $ 126,820 ( 95,181) $ 31,639	$ (

(	concession $ 276,588 96,765) $ 179,823 $ 179,823 - 13,542) - - $ 166,281 $ 276,588 110,307) $ 166,281
			$
(		$ 31,639 117 ( 14,199) - - $ 17,557
			$
(		$ 126,937 ( 109,380) $ 17,557	$ (
			$

~36~

January 1 Cost Accumulated amortization and impairments January 1 Add - Cost Amortization expense Impairment loss June 30 June 30 Cost Accumulated amortization and impairments	2024 Trademark and concession $ 280,614 ( 79,082) $ 201,532 $ 201,532 - ( 13,472) - $ 188,060 $ 280,614 ( 92,554) $ 188,060	2024 Trademark and concession $ 280,614 ( 79,082) $ 201,532 $ 201,532 - ( 13,472) - $ 188,060 $ 280,614 ( 92,554) $ 188,060	2024 Trademark and concession $ 280,614 ( 79,082) $ 201,532 $ 201,532 - ( 13,472) - $ 188,060 $ 280,614 ( 92,554) $ 188,060	Computer software $ 139,950 ( 84,083) $ 55,867 $ 55,867 778 ( 14,633) - $ 42,012 $ 140,728 ( 98,716) $ 42,012	$ (	Patents 149,599 4,222) 145,377 145,377 2,800 11,680) - 136,497 152,399 15,902) 136,497		Others $ 33,333 - $ 33,333 $ 33,333 - ( 8,890) - $ 24,443 $ 33,333 ( 8,890) $ 24,443	Goodwill $ 295,626 - $ 295,626 $ 295,626 - - ( 27,390) $ 268,236 $ 295,626 ( 27,390) $ 268,236	Total $ 899,122 ( 167,387) $ 731,735 $ 731,735 3,578 ( 48,675) ( 27,390) $ 659,248 $ 902,700 ( 243,452) $ 659,248

			concession $ 280,614 ( 79,082) $ 201,532 $ 201,532 - ( 13,472) - $ 188,060 $ 280,614 ( 92,554) $ 188,060
					$
					$ (
					$
					$ (
					$

Goodwill allocated to the cash-generating unit of the Group identified by the operating department:

June 30, 2025 Photomask and semiconductor segment $ 201,322	Medical segment $ 43,248	December 31, 2024 Photomask and semiconductor segment $ 224,988 June 30, 2024 Photomask and semiconductor segment $-	Medical segment $ 43,248
			Medical segment $-

For the impairment of intangible assets, please refer to Note 6 (12).

~37~

(XII) Impairment of non-financial assets

The details of the impairment loss of goodwill recognized by the Group from April 1 to June 30, 2025 and 2024 and from January 1 to June 30, 2025 and 2024 by department are disclosed as follows:

Recognized in profit or loss April 1 to June 30, 2025 April 1 to June 30, 2024 Photomask and - semiconductor segment $ 23,666 $ Recognized in profit or loss January 1 to June 30, 2025 January 1 to June 30, 2024 Photomask and semiconductor segment $ 23,666 $ 27,390

As business conditions were not as good as expected, and the recoverable amount was estimated to be less than the book value, an impairment loss of NT$23,666 and NT$27,390 was recognized in 2025 and 2024, respectively.

The recoverable amount of the Group is assessed based on the value in use. The value in use is calculated based on the pre-tax cash flow forecast of the financial budget approved by the management. The main assumptions used to calculate the value in use are as follows:

(1) Revenue growth rate: Reference to market-related information and estimated based on the planned operating sales plan.
(2) Margin rate: Reference to historical values and estimated based on the planned operating sales plan.
(3) Discount rate: The pre-tax ratio and reflects the specific risks of the relevant operating segments.

(XIII) Other Non-Current Assets

Prepayments for equipment Refundable Deposit Others Total	June 30, 2025 $ 357,813 59,528 1,198 $ 418,539	December 31, 2024 $ 427,812 76,558 2,091 $ 506,461	June 30, 2024 $ 543,884 91,495 1,783 $ 637,162

~38~

(XIV) Short Term Loans

Type of borrowings
June 30, 2024
Bank borrowings
Credit loan
$ 1,943,503
Secured borrowings 4,365,655
Other borrowings
Credit loan
60,402
$ 6,369,560
Type of borrowings
June 30, 2025
Bank borrowings
Credit loan
$ 2,257,686
Secured
borrowings
2,424,301
Other borrowings (Related Parties)
Credit loan
106,876
$ 4,788,863
Type of borrowings
December 31, 2024
Bank borrowings
Credit loan
$ 2,365,712
Secured
borrowings
3,723,674
Other borrowings (Related Parties)
Credit loan
110,969
$ 6,200,355

Range of interest
rate
Collateral
0.84%~4.09%
None
1.20%~4.01%
Certificates of deposit, reserve
accounts (Note), stocks of listed and
OTC companies and treasury stock
2.70%
None
Range of interest
rate
Collateral
1.6%~4.204%
None
0.5%~3.125%
Certificates of deposit, reserve
accounts (Note), stocks of listed and
OTC companies and treasury stock
2.7%
None
Range of interest
rate
Collateral
1.88%~4.09%
None
0.5%~3.61%
Certificates of deposit, reserve
accounts (Note), stocks of listed and
OTC companies and treasury stock
2.7%
None

For the three months ended June 30, 2025 and 2024, and the six months ended June 30, 2025 and 2024, the Group’s interest expense from the borrowings recognized in profit or loss were NT$29,711, NT$36,086, NT$64,256 and NT$68,573, respectively.

Note: The responsible person of the subsidiary is the joint guarantor.

~39~

(XV) Other Payables

June 30, 2025 Payable on machinery and equipment $ 526,137 Machine maintenance payable 156,980 Payroll and bonus payable 136,460 Remunerations payable to employees and directors 129 Dividends payable - Others 555,862 $ 1,375,568 (XVI) Corporate bonds payable June 30, 2025 Corporate bonds payable $ 4,300,000 Less: Amount of exercised conversion options ( 325,200) Less: Discount on corporate bonds payable ( 23,474) 3,951,326 Less: Corporate bonds with the put option exercised ( 33,400) Less: Corporate bonds redeemed early ( 299,416) Less: Corporate bonds with the call option exercised in one year( 1,622,272) $ 1,996,238	December 31, 2024 $ 649,734 55,693 156,053 168 - 375,181 $ 1,236,829 December 31, 2024 $ 4,300,000 ( 325,200) ( 32,828) 3,941,972 ( 33,400) ( 299,416) - $ 3,609,156	June 30, 2024 $ 489,429 53,459 117,938 151,978 373,477 460,439 $ 1,646,720 June 30, 2024 $ 3,500,000 ( 324,400) ( 41,021) 3,134,579 - - - $ 3,134,579

The terms of issuance for the Group's 3rd domestic unsecured convertible bonds are as follows:
(1) The Group 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.
(2) The bondholders may request the conversion of the convertible bonds into the Group'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.
(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

~40~

in accordance with the pricing model stipulated in the Conversion Measures in the event that the Group 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 June 30, 2025, the conversion price was NT$80.4 per share.

(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.
(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.
(6) As of June 30, 2025, a total amount of NT$325,200 had been converted into 3,743 thousand shares of common stock.
(7) As of June 30, 2025, 334 convertible bonds were repurchased at the price of NT$100 per bond; the repurchase amount was NT$33,400.
(8) During the issuance of the convertible bonds of the Group, according to the regulations of IAS 32 “Financial Instruments: Presentation”, the conversion right of equity nature is separated from the liability component, which is recognized under the “Capital surplus - subscription right” at an amount of 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 Group'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.

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Second series domestic secured convertible corporate bonds

In order to raise the Group's working capital, the board of directors resolved to approve on August 5, 2022 the issue of the second 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 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 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 Group's working capital, the board of directors resolved to approve on August 4, 2023 the issue of the third 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$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 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.
Fourth series domestic secured convertible corporate bonds

In order to raise the Group's working capital, the board of directors resolved to approve on August 4, 2023 the issue of the fourth 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 December 12, 2023 to expiration on

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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 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.
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 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.

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(XVII) Long-term Loans

Type of borrowings Borrowing period and payment method Range of interest rate Long-term bank borrowings Credit loan From January 24, 2022 to August 28, 2029, to be repaid in installments and installments over the agreed period 2.22%~ 3.95% Secured borrowings From January 28, 2022 to January 27, 2027, to be repaid in installments and installments over the agreed period 2.68% Secured borrowings From December 28, 2022 to December 28, 2032, repayable in portions and in installments during the term specified in the agreement 2.30%~ 2.58% Secured borrowings From July 26, 2023 to July 26, 2038, to be repaid in installments and installments over the agreed period 2.45%~ 3.23% Secured borrowings From December 29, 2022 to March 24, 2030, to be repaid in installments and installments over the agreed period 2.33%~ 3.02% Other long-term borrowings Credit loan From October 5, 2023 to January 2, 2027, to be repaid in installments and installments over the agreed period 4.96%~ 7.80% Secured borrowings From July 29, 2021 to March 28, 2029, to be repaid in installments and installments over the agreed period 2.45%~ 8.20% Secured borrowings From June 10, 2022 to July 28, 2028, to be repaid in installments and installments over the agreed period 3.44%~ 7.18% Less: Current portion of long-term borrowings	Collateral None (Note) Houses and buildings, machinery equipment and investment property Houses and buildings and investment property Plant and land Machinery and equipment None Machinery and equipment Machine and equipment, land, buildings and structures	June 30, 2025 $ 21,092 500,000 1,171,053 225,535 1,418,529 60,869 627,379 283,427 -
		4,307,884 ( 1,345,308) $ 2,962,576

Note: The responsible person of the subsidiary is the joint guarantor.

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Type of borrowings Borrowing period and payment method Long-term bank borrowings Credit loan From May 23, 2024 to August 28, 2029, to be repaid in installments and installments over the agreed period Credit loan From January 24, 2022 to January 24, 2027, to be repaid in installments and installments over the agreed period 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 27, 2022 to August 23, 2029, to be repaid in installments and installments over the agreed period Secured borrowings From July 26, 2023 to July 26, 2038, to be repaid in installments and installments over the agreed period Secured borrowings From October 29, 2021 to May 20, 2029, to be repaid in installments and installments over the agreed period Other long-term borrowings Credit loan From June 9, 2023 to August 2, 2026, to be repaid in installments and installments over the agreed period Secured borrowings From July 29, 2021 to March 28, 2029, to be repaid in installments and installments over the agreed period Secured borrowings From June 28, 2023 to June 28, 2025, to be repaid in installments and installments over the agreed period Less: Current portion of long-term borrowings	Range of interest rate 2.22%~ 3.95% 3.13% 2.68% 2.30%~ 2.58% 2.45%~ 3.23% 2.33%~ 4.47% 4.19%~ 7.80% 2.26%~ 8.20% 4.06%	Collateral December 31, 2024 None $ 23,696 None (Note) 4,335 Houses and buildings, machinery equipment and investment property 750,000 Houses and buildings and investment property 1,365,789 Plant and land 183,964 Machinery and equipment 974,629 None 129,052 Machinery and equipment 876,754 Machine and equipment, land, buildings and structures 6,868 - 4,315,087 ( 1,242,279) $ 3,072,808

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Type of borrowings Borrowing period and payment method Long-term bank borrowings Secured borrowings From December 28, 2022 to December 28, 2032, repayable in portions and in installments during the term specified in the agreement Secured borrowings From December 28, 2021 to January 28, 2027, repayable in portions and in installments during the term specified in the agreement Secured borrowings From July 26, 2023 to July 25, 2038, to be repaid in installments and installments over the agreed period Secured borrowings From January 5, 2021 to July 5, 2028, to be repaid in installments and installments over the agreed period Credit loan From January 24, 2022 to January 24, 2027, to be repaid in installments and installments over the agreed period Other long-term borrowings Secured borrowings From March 25, 2021 to March 28, 2029, to be repaid in installments and installments over the agreed period Secured borrowings From June 10, 2022 to July 28, 2028, to be repaid in installments and installments over the agreed period Credit loan From December 30, 2021 to December 29, 2025, to be repaid in installments and installments over the agreed period Less: Current portion of long-term borrowings	Range of interest rate 2.32%~ 2.68% 2.68% 2.45%~ 3.23% 2.38%~ 4.34% 3.23%~ 3.95% 2.45%~ 8.20% 2.26%~ 5.25% 4.19%~ 7.80%	Collateral June 30, 2024 Houses and buildings and investment property $ 1,348,026 Houses and buildings, machinery equipment and investment property 750,000 Plant and land 129,599 Machinery and equipment 893,463 None (Note) 24,532 Machinery and equipment 654,235 Houses, buildings, machinery and equipment, and land 390,485 None 234,777 - 4,425,117 ( 1,186,904) $ 3,238,213

Note: The responsible person of the subsidiary is the joint guarantor.

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(XVIII) Pensions

(1) The Company and its domestic subsidiaries operate 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 and its domestic subsidiaries contribute a monthly amount equal to 2% 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 and its domestic subsidiaries 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 and its domestic subsidiaries will make contribution for the deficit by the end of next March.
(2) As for the three months ended June 30, 2025and 2024 and the six months ended June 30, 2025 and 2024, the pension cost recognized by the Group according to the aforementioned pension requirements was NT$534, NT$534, NT$1,067 and NT$1,067, respectively.
(3) The expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 are NT$2,133.
(1) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (hereinafter referred to as the “New Plan”) under the Labor Pension Act (hereinafter referred to as the “Act”), covering all regular employees with domestic citizenship. Under the New Plan, the Company and its domestic subsidiaries contribute an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(2) The subsidiaries in China are subject to the pension plan system stipulated by the People's Republic of China (PRC) government. According to the PRC regulations, a certain percentage of the total salary of the local employees is appropriated as pension fund on a monthly basis. Except for the monthly contributions, the Company is not required to bear further obligations.
(3) As for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024, the pension cost recognized by the Group according to the aforementioned pension requirements was NT$11,957, NT$15,806, NT$25,345 and NT$28,366, respectively.

(XIX) Capital

As of June 30, 2025, 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 at a par value of NT$10 per share. 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:

Unit: Thousand shares

	Unit: Thousand sh
January 1 Subsidiaries donated treasury stock June 30	2025 2024 213,663 213,153 - 500
	213,663 213,653

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
Company name of the
shareholding
Subsidiary: Youe Chung
Capital Corporation
The Company

June 30, 2025
Reasons for buyback
Number of
shares (thousand)
Book value
Subsidiary holds the company's stock 35,331
$ 502,776
Transfer shares to employees
7,462
664,593
42,793
$ 1,167,369
December 31, 2024
Reasons for buyback
Number of
shares (thousand)
Book value
Subsidiary holds the company's stock 35,331
$ 502,776
Transfer shares to employees
7,462
664,593
42,793
$ 1,167,369
June 30, 2024
Reasons for buyback
Number of
shares (thousand)
Book value
Subsidiary holds the company's stock 35,331
$ 502,776
Transfer shares to employees
7,462
664,593
42,793
$ 1,167,369

(2) 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.
(3) 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.

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(4) 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.
(5) The Company's stock held by the subsidiary Youe Chung Capital is treated as treasury stock. As of June 30, 2025, December 31, 2024, and June 30, 2024, Youe Chung Capital Corporation held 35,331 thousand shares of the Company. The average book value per share was NT$14.23, and the fair value per share was NT$28.7, NT$49.25 and NT$76.1, respectively. The cost of transferring treasury stocks is calculated based on the book amount of the Company’s stock held by Youe Chung Capital and the Company's indirect shareholding during each period.
(6) 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.
(7) 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. As of May 5, 2025, there were 2,977 thousand shares still not yet transferred to employees. The Board of Directors has resolved on May 5, 2025, to cancel the treasury shares, with a record date for the capital reduction on July 8, 2025.

(XX) 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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Trading of treasury stock $ 912,335 - - $ 912,335 Trading of treasury stock $ 859,338 - $ 859,338	$	stock option	Equity changes	$	Total $ 1,532,041 97,085 ( 6,673) $ 1,622,453 Total $ 1,439,959 786
	$	$ 288,895		$
	$	stock option			Total $ 1,439,959 786
$ 859,338 - $ 859,338			in affiliates $ 82,220 -
		$ 295,848 -
	$	$ 295,848	$ 82,220		$ 1,440,745

(XXI) Retained earnings

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.
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 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

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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 shareholders’ meeting of the Company has resolved to approve the proposal for covering losses for 2024 on May 28, 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 remaining at NT$1.5 per share, the total amount of cash dividends distributed from earnings in 2023 was adjusted to NT$373,491.

(XXII) Other equity interests

January 1 Difference in foreign currency translation: - Group June 30 January 1 Difference in foreign currency translation: - Group June 30	2025 Unrealized gains and losses ($ 2,666) 391 ($ 2,275) 2024 Unrealized gains and losses ($ 2,666) - ($ 2,666)	2025 Unrealized gains and losses ($ 2,666) 391 ($ 2,275) 2024 Unrealized gains and losses ($ 2,666) - ($ 2,666)	Foreign currency translation $ 22,814 ( 51,792) ($ 28,978) Foreign currency translation $ 4,307 14,166 $ 18,473	Total $ 20,148 ( 51,401) ($ 31,253) Total $ 1,641 14,166 $ 15,807

(XXIII) Operating income

Revenue from contracts with customers Revenue from contracts with customers	April 1 to June 30, 2025 $ 1,589,933 January 1 to June 30, 2025 $ 3,217,890	April 1 to June 30, 2024 $ 1,997,876
		January 1 to June 30, 2024
		$ 3,847,924

Segmentation of revenue from contracts with customers

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The Corporate Group derives its revenue from the transfer of goods and services either over time or at a point in time. The revenue can be divided into the following main product lines:

January 1 to June 30, 2025 Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time January 1 to June 30, 2024 Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time April 1 to June 30, 2025 Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time April 1 to June 30, 2024 Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time	Photomask and semiconductor segment $ 3,030,630 $ 1,055,137 1,975,493 $ 3,030,630 Photomask and semiconductor segment $ 3,754,600 $ 1,391,712 2,362,888 $ 3,754,600 Photomask and semiconductor segment $ 1,503,745 $ 541,260 962,485 $ 1,503,745 Photomask and semiconductor segment $ 1,939,062 $ 698,383 1,240,679 $ 1,939,062	Medical segment $ 86,188	Total $ 3,217,890 $ 1,242,397 1,975,493 $ 3,217,890 Total $ 3,847,924 $ 1,485,036 2,362,888 $ 3,847,924 Total $ 1,589,933 $ 627,448 962,485 $ 1,589,933 Total $ 1,997,876 $ 757,197 1,240,679 $ 1,997,876
		$ 86,188 -
		$ 86,188
		Medical segment $ 58,814
		$ 58,814 -
		$ 58,814
		Medical segment $ 187,260
		$ 187,260 -
		$ 187,260
		Medical segment $ 93,324
		$ 93,324 -
		$ 93,324

Contract Asset and Contract Liability
(1) The Group has recognized the following revenue-related contract assets and contract liabilities:

June 30, 2025 Contract Assets $ 60,425 Contract Liabilities$ 133,795	December 31, 2024 $ 90,967 $ 64,453	June 30, 2024 $ 83,089 $ 129,031	January 1, 2024 $ 105,263
			$ 174,538

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

April 1 to June 30, 2025 Opening balance of contract liabilities recognized in the current period $ 1,088 January 1 to June 30, 2025 Opening balance of contract liabilities recognized in the current period $ 45,142 (XXIV) Interest income April 1 to June 30, 2025 Interest from bank deposits $ 1,808 Interest income from financial assets measured at amortized cost 2,731 Other interest incomes 37 $ 4,576 January 1 to June 30, 2025 Interest from bank deposits $ 3,153 Interest income from financial assets measured at amortized cost 4,684 Other interest incomes 82 $ 7,919	April 1 to June 30, 2025 Opening balance of contract liabilities recognized in the current period $ 1,088 January 1 to June 30, 2025 Opening balance of contract liabilities recognized in the current period $ 45,142 (XXIV) Interest income April 1 to June 30, 2025 Interest from bank deposits $ 1,808 Interest income from financial assets measured at amortized cost 2,731 Other interest incomes 37 $ 4,576 January 1 to June 30, 2025 Interest from bank deposits $ 3,153 Interest income from financial assets measured at amortized cost 4,684 Other interest incomes 82 $ 7,919	April 1 to June 30, 2024 $ 8,288 January 1 to June 30, 2024 $ 121,659 April 1 to June 30, 2024 $ 5,960 2,753 87 $ 8,800 January 1 to June 30, 2024 $ 10,874 5,317 171 $ 16,362	April 1 to June 30, 2024 $ 8,288 January 1 to June 30, 2024 $ 121,659 April 1 to June 30, 2024 $ 5,960 2,753 87 $ 8,800 January 1 to June 30, 2024 $ 10,874 5,317 171 $ 16,362

	$ 4,576		$ 8,800 January 1 to June 30, 2024 $ 10,874 5,317 171
	January 1 to June 30, 2025
	$ 3,153 4,684 82
	$ 7,919		$ 16,362

(XXV) Other Incomes

Rental income Dividend income Other income - Others Rental income Dividend income Other income - Others	April 1 to June 30, 2025 $ 6,076 5,130 3,664 $ 14,870 January 1 to June 30, 2025 $ 12,198 5,130 14,232 $ 31,560	April 1 to June 30, 2024 $ 5,422 756
		$ 6,178 January 1 to June 30, 2024 $ 10,578 - 3,174 $ 13,752

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(XXVI) Other Gains and Losses

Gain (loss) on disposal of property, plant and equipment Gain (loss) on disposal of investments Gain on lease modifications Foreign currency exchange gains (losses) Loss (gain) on financial assets and liabilities at fair value through profit or loss Goodwill impairment loss Other losses -- Depreciation of investment properties Other Gains and Losses Disposal of interests in property, plant and equipment Gain (loss) on disposal of investments Gain on lease modifications Foreign currency exchange gains (losses) 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	April 1 to June 30, 2025 $ 14,111 3,472 8 ( 56,236) ( 247,269) ( 23,666) ( 1,016) ( 1,567) ($ 312,163) January 1 to June 30, 2025		April 1 to June 30, 2024 ($ 167) 45 591 19,247 ( 403,619) - ( 848) ( 16) ($ 384,767) January 1 to June 30, 2024 $ 13,950 45 1,459 55,072 294,468 ( 27,390) ( 1,696) ( 28) $ 335,880
	$ 30,032 49,191 32 ( 64,477) ( 401,005) ( 23,666) ( 1,864) ( 3,473) ($ 415,230)

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(XXVII) Financial Costs

Interest expenses: Bank and other borrowings Corporate bonds Lease liabilities Others Interest expenses: Bank and other borrowings Corporate bonds Lease liabilities Others	April 1 to June 30, 2025 $ 62,772 14,247 1,531 4 $ 78,554 January 1 to June 30, 2025 $ 128,396 28,483 3,106 12 $ 159,997	April 1 to June 30, 2024 $ 68,484 23,865 1,934 22
		$ 94,305
		January 1 to June 30, 2024
		$ 132,462 37,157 3,812 79
		$ 173,510

(XXVIII) Expenses by nature

Employee benefits expenditure Depreciation Amortization Employee benefits expenditure Depreciation Amortization	April 1 to June 30, 2025 $ 271,256 369,428 19,476 $ 660,160 January 1 to June 30, 2025 $ 609,162 726,728 38,958 $ 1,374,848	April 1 to June 30, 2024 $ 281,762 315,988 18,610
		$ 616,360
		January 1 to June 30, 2024
		$ 658,230 623,609 48,675
		$ 1,330,514

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(XXIX) Employee benefits expenditure

Payroll expenses Labor and health insurance fees Pension expense Other personnel expenses Payroll expenses Labor and health insurance fees Pension expense Other personnel expenses	April 1 to June 30, 2025 $ 219,476 22,353 12,491 16,936 $ 271,256 January 1 to June 30, 2025 $ 498,195 46,816 26,412 37,739 $ 609,162	April 1 to June 30, 2024 $ 216,205 28,542 16,340 20,675 $ 281,762 January 1 to June 30, 2024 $ 542,037 51,407 29,433 35,353 $ 658,230

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.
For the Company’s remuneration of employees and remuneration of directors for the period from January 1 to June 30, 2025, relevant expenses were not estimated for recognition due to a net loss in the current period. The estimated amounts for the Company’s remuneration of employees for the three months ended June 30, 2024 and the six months ended June 30, 2024 was NT$(29,000) and NT$50,000, respectively, and the estimated amounts of remuneration of directors were NT$2,400 and NT$7,800, respectively. The aforementioned amounts were recognized as payroll expenses. The 2024 remuneration of employees and remuneration of directors as resolved by the Board of Directors are consistent with the amounts recognized in the 2024 financial statements.

Information about employees remuneration and director remuneration of the Company as resolved by the Board of Directors is available on the MOPS.

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(XXX) Income tax

1. Income tax expense

Components of income tax expense:

Current tax: Current tax on profits for the year Additional surtax on undistributed earnings Total current tax Deferred income tax: Origination and reversal of temporary differences Total Deferred Income Tax Income tax expense (profit) Current tax: Current tax on profits for the year Additional surtax on undistributed earnings Total current tax Deferred income tax: Origination and reversal of temporary differences Total Deferred Income Tax Income Tax Expense	April 1 to June 30, 2025 $ 1,138 - 1,138 ( 7,295) ( 7,295) ($ 6,157) January 1 to June 30, 2025 $ 7,496 - 7,496 1,153 1,153 $ 8,649	April 1 to June 30, 2024 $ 20,611 756
		21,367 ( 34,773) ( 34,773) ($ 13,406) January 1 to June 30, 2024 $ 58,949 756
		59,705 ( 36,658) ( 36,658) $ 23,047

The Company’s profit-seeking income tax has been approved by the taxation authority through 2023.

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(XXXI) Earnings (loss) per share

April 1 to June 30, 2025

0.00% Basic and diluted loss per share Net loss attributable to ordinary shareholders of the parent 0.00% Earnings per share Profit attributable to ordinary shareholders of the parent Diluted Earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Convertible bonds Employee remuneration Profit attributable to ordinary shareholders of the parent company plus assumed conversion of all dilutive potential ordinary shares 0.00% Basic loss per share Net loss attributable to ordinary shareholders of the parent 0.00% Basic loss per share Net loss attributable to ordinary shareholders of the parent	January 1 to June 30, 2025 Amount after tax Weighted average share outstanding (thousand shares) ($ 652,717) 213,663 January 1 to June 30, 2024 Amount after tax Weighted average share outstanding (thousand shares) $ 429,360 213,477 $ 429,360 213,477 7,072 20,335 - 1,071 $ 436,432 234,883 Amount after tax Weighted average share outstanding (thousand shares) ($ 395,782) 213,663 April 1 to June 30, 2024 Amount after tax Weighted average share outstanding (thousand shares) ($ 244,849) 213,653	January 1 to June 30, 2025 Amount after tax Weighted average share outstanding (thousand shares) ($ 652,717) 213,663 January 1 to June 30, 2024 Amount after tax Weighted average share outstanding (thousand shares) $ 429,360 213,477 $ 429,360 213,477 7,072 20,335 - 1,071 $ 436,432 234,883 Amount after tax Weighted average share outstanding (thousand shares) ($ 395,782) 213,663 April 1 to June 30, 2024 Amount after tax Weighted average share outstanding (thousand shares) ($ 244,849) 213,653		Weighted average	Loss per share (in dollars) ($ 3.05) Earnings per share (in dollars) $ 2.01 $ 1.86 Loss per share (in dollars) ($ 1.85) Loss per share (in dollars) ($ 1.15)

		Amount after
		tax $ 429,360 $ 429,360 7,072 - $ 436,432

The weighted average number of shares outstanding during the periods between April 1 and June 30 of 2025 and 2024 and January 1 and June 30 of 2025 and 2024 has deducted the

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number of shares held by the subsidiary company Youe Chung Capital deemed as the Company's treasury stock (the number of shares is based on the Company’s shareholding). Since the periods between April 1 and June 30 of 2025 and January 1 and June 30 of 2024 were at a loss, there was no potential dilutive effect of ordinary shares and the diluted loss per share was equal to the basic loss per share.

(XXXII) Supplemental cash flow information

1. Investing activities with partial cash payments:

Purchase of property, plant and equipment Add: Prepayments for equipment at the end of the period Beginning balance of payable on equipment Less: Prepayments for equipment at the beginning of the period Ending balance of payable on equipment Cash paid during the year	January 1 to June 30, 2025 $ 905,116 357,813 649,734 ( 427,812) ( 526,137) $ 958,714	January 1 to June 30, 2024 $ 812,285 543,884 498,861 ( 422,444) ( 489,429) $ 943,157

Financing activities with no cash flow effects:

Dividends payable	January 1 to June 30, 2025 January 1 to June 30, 2024
	$- $ 373,477

(XXXIII) Changes in liabilities arising from financing activities

Short Term Loans Corporate bonds payable (mature within one year) Long-term borrowings (including current portion)	Short Term Loans Corporate bonds payable (mature within one year) Long-term borrowings (including current portion)	Short Term Loans Corporate bonds payable (mature within one year) Long-term borrowings (including current portion)	Lease liabilities $ 437,398 $ ( 21,791) ( 3,106 ( 3,106) ( 5,930) $ 409,677 $	Lease liabilities $ 437,398 $ ( 21,791) ( 3,106 ( 3,106) ( 5,930) $ 409,677 $	$	Total liabilities
						arising from financing activities $ 14,596,808 1,477,868) 31,589 3,106) 21,536) $ 13,125,887

$ 6,200,355 ( 1,404,386) - - ( 7,106) $ 4,788,863	$ 3,609,156 - 28,483 - ( 19,129) $ 3,618,510	$ 4,315,087 ( 17,832) - - 10,629 $ 4,307,884	$ 437,398 ( 21,791) 3,106 ( 3,106) ( 5,930)
			$ 409,677	$	$

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Corporate bonds	Corporate bonds	Long-term borrowings (including current portion) $ 4,342,556 72,827 - - - 9,734	Long-term borrowings (including current portion) $ 4,342,556 72,827 - - - 9,734	Lease liabilities $ 567,193 $ ( 25,207) ( 3,812 ( 3,812) - 15,598 $ 557,584 $	Lease liabilities $ 567,193 $ ( 25,207) ( 3,812 ( 3,812) - 15,598 $ 557,584 $	$	Total liabilities arising from financing activities $ 13,806,001 680,987 40,969 ( 17,360) 373,477 11,119
$ ( ( (	payable 3,424,600 299,417) 37,157 13,548) - 14,213) 3,134,579
				$ 567,193 ( 25,207) 3,812 ( 3,812) - 15,598
$		$	4,425,117	$ 557,584	$	$	$ 14,895,193

VII. Related Party Transactions

(I) Related parties' names and relationship

Name of the related parties Relationship with the Group Weida Hi-Tech Co., Ltd. Affiliates TrueLight Corporation Affiliate (Note 1) BKS Tec Corp. Affiliate (Note 2) Ontario Capital Co., Ltd. Other related party Taiwan Mask Charity Foundation Other related party

Note 1: The Group acquired the equity of TrueLight Corporation in March 2024, which was recognized in “Investment under Equity Method”. Please refer to Note 6(6) for details.

Note 2: The Group acquired the equity of BKS Tec Corp. in April 2024, which was recognized in “Investment under Equity Method”. Please refer to Note 6(6) for details.

(II) Significant transactions with the related parties

Operating revenue

Product sales: Affiliates Product sales: Affiliates	April 1 to June 30, 2025 $ 61 January 1 to June 30, 2025 $ 1,784	April 1 to June 30, 2024 $ 1,364
		January 1 to June 30, 2024
		$ 4,192

There are no major abnormalities in the transaction prices and payment terms of the related

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party compared to that of non-related parties.

Account receivable from related parties.

June 30, 2024 Accounts Receivables: Affiliates/other related party $ 72 Other Receivables: Affiliates/other related party2,024 Total $ 2,096	December 31, 2024 $ 2,383 1,306 $ 3,689	June 30, 2024 $ 1,432 1,227 $ 2,659

Acquisition of financial assets

BKS Tec Corp. was another related party to the Group. On April 1, 2024, the Group invested NT$30,000 to acquire 6,000 thousand shares of BKS Tec Corp., with a 38.91% shareholding, to have a significant influence on the company. The data was recognized in “Investment under Equity Method”. Please refer to Note 6(6) for details.

4. Others

(1) Deposits Received:

Affiliates/other related party	June 30, 2025 $ 118	December 31, 2024 $ 118	June 30, 2024 $ 118

(2) Rent income:

Affiliates/other related party Affiliates/other related party	April 1 to June 30, 2025 $ 971 January 1 to June 30, 2025 $ 1,933	April 1 to June 30, 2024 $ 438
		January 1 to June 30, 2024 $ 875

(3) Other income

Affiliates/other related party Affiliates/other related party	April 1 to June 30, 2025 $ 608 January 1 to June 30, 2025 $ 1,177	April 1 to June 30, 2024 $ 37
		January 1 to June 30, 2024 $ 145

(4) For the three months ended June 30, 2025, the Company’s subsidiary, Youe Chung Capital Corporation, donated 500,000 shares of the Company’s stock, totaling NT$7,115, to the Taiwan Mask Charitable Foundation.
(5) For the six months ended June 30, 2025 and 2024, the Company donated NT$402 and

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NT$838, respectively, in cash to the Taiwan Mask Charity Foundation.

Loaning of funds to related parties

Loans from related parties:

(1) Closing balance (recorded as "short-term borrowings") June 30, 2025 December 31, 2024 June 30, 2024 Other related party $ 106,876 $ 110,969 $ 60,402

(2) Interest expenses

April 1 to June 30, 2025 April 1 to June 30, 2024 Other related party $ 737 $ 457 January 1 to June 30, 2025 January 1 to June 30, 2024 Other related party $ 1,513 $ 686

The conditions for borrowing from related parties are that the interest is paid monthly at an annual interest rate of 2.7% after the loan is made, and the principal is repaid at maturity. The borrowing period is from August 3, 2023 to June 30, 2025.

(III) Compensation of key management personnel

Salary and short-term employee benefits Post-employment benefits Total Salary and short-term employee benefits Post-employment benefits Total	April 1 to June 30, 2025 $ 7,033 27 $ 7,060 January 1 to June 30, 2025 $ 15,595 54 $ 15,649	April 1 to June 30, 2024 $ 9,431 54
		$ 9,485 January 1 to June 30, 2024 $ 20,246 108
		$ 20,354

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VIII. Pledged assets

Assets pledged by the Corporate Group as collateral are as follows:

Assets Demand deposit (Recognized as "Financial assets at amortized cost") Time deposit (Recognized as "Financial assets at amortized cost") Stocks of publicly traded and OTC companies (recognized as "Financial assets at fair value through profit or loss") Shares of the Company (recognized as "treasury stock") (Note) Buildings and structures (including land) Machinery and equipment and equipment under acceptance Real estate investment Other equipment Intangible assets	Book value June 30, 2025 $ 437,163 310,421 1,939,591 493,070 1,199,263 4,087,578 180,797 26,040 817 $ 8,674,740	December 31, 2024 June 30, 2024 $ 532,807 $ 447,909 361,778 451,295 2,753,540 3,964,226 493,070 491,647 1,245,385 1,163,894 3,629,379 3,826,517 167,109 168,804 29,864 5,794 1,478 - $ 9,214,410 $ 10,520,086	December 31, 2024 June 30, 2024 $ 532,807 $ 447,909 361,778 451,295 2,753,540 3,964,226 493,070 491,647 1,245,385 1,163,894 3,629,379 3,826,517 167,109 168,804 29,864 5,794 1,478 - $ 9,214,410 $ 10,520,086	Purpose Short-term borrowings, reserve accounts, and corporate bond guarantee Short-term borrowings and customs guarantee Short Term Loans Short Term Loans Long-term Loans Long-term Loans Long-term Loans Long-term Loans Long-term Loans
		$ 532,807 361,778 2,753,540 493,070 1,245,385 3,629,379 167,109 29,864 1,478 $ 9,214,410
			$ 10,520,086

Note: The cost of pledged treasury stocks was NT$493,070 and its fair value was NT$994,455 as of June 30, 2025.

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IX. Significant Contingent Liabilities and Unrecognized Contract Commitments

(I) Contingencies

None.

(II) Commitments
Machine equipment maintenance contracts that have been signed but not yet paid

June 30, 2025 December 31, 2024 June 30, 2024 Machine maintenance $ 156,980 $ 55,693 $ 53,459

Capital expenditures that have been signed but not yet incurred

June 30, 2025 December 31, 2024 June 30, 2024 Property, plant and equipment $ 476,381 $ 1,175,844 $ 1,465,920

Lease agreement

Please see Note 6 (8) and (9)

X. Losses due to major disasters None.

XI. Major Events after Financial Statement Date
The Board of Directors of the Company approved the appointment of new Chairman on August 1, 2025.
Please refer to Note 6(19) for details regarding the cancellation of treasury shares of the Company.
On July 18, 2025, the Board of Directors resolved to set the price of the first private placement of common shares for 2025 at NT$24.4 per share. LUMINOUS RISE INVESTMENT CO., LTD. was determined as the prospective subscriber, and the subscription amount was 63,370 thousand shares, which was fully paid on July 31, 2025.

XII. Others

(I) Capital management

There was no significant change in the reporting period. Please refer to Note 12 in the 2024 consolidated financial statements.

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(II) Financial instruments

1. Types of financial instrument

Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities mandatorily measured at fair value through profit or loss Financial liabilities at amortized cost Short Term Loans Notes Payable Accounts Payable Other accounts payable (Including related parties) Corporate bonds payable (including portion matured in one year or one operating cycle) Long-term borrowings (including current portion) Guarantee Deposits Received Lease liabilities 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 Notes Receivables Accounts receivable (Including related parties) Other account receivable (Including related parties) Refundable Deposit	Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities mandatorily measured at fair value through profit or loss Financial liabilities at amortized cost Short Term Loans Notes Payable Accounts Payable Other accounts payable (Including related parties) Corporate bonds payable (including portion matured in one year or one operating cycle) Long-term borrowings (including current portion) Guarantee Deposits Received Lease liabilities 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 Notes Receivables Accounts receivable (Including related parties) Other account receivable (Including related parties) Refundable Deposit	June 30, 2025 $ 2,158,891 $ 935,523 860,599 11,692 1,029,611 31,140 59,528	June 30, 2025 $ 2,158,891		December 31, 2024 December 31, 2024 $ 3,316,316 $ 1,430,542 894,585 167 1,369,762 41,443 76,558 $ 3,813,057	June 30, 2024 $ 5,864 $ 6,369,560 9,797 463,021 1,646,720 3,134,579 4,425,117 35,278 $ 16,084,072 $ 557,584 June 30, 2024 $ 4,833,730 $ 1,353,779 916,302 4,134 1,570,079 23,078 91,495 $ 3,958,867
		June 30, 2025 $ 30,694 $ 4,788,863 44,956 379,160 1,375,568 3,618,510 4,307,884 953 $ 14,515,894 $ 409,677 $ 2,928,093
					$ 19,204 $ 6,200,355 43,544 541,758 1,236,829 3,609,156 4,315,087 34,812 $ 15,981,541 $ 437,398

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Risk management policies
(1) The Group’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 Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial position and performance.
(2) Risk management is carried out by a central finance department (Group finance) under policies approved by the Board of Directors. Group finance identifies, evaluates and hedges financial risks in close collaboration with the Group’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.
Significant financial risks and degrees of financial risks
(1) Market risk

A. Foreign exchange risk

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

June 30, 2025

	June 30, 2025
(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items USD : NTD JPY : NTD Euro : NTD	Foreign currency (in thousand) USD 29,195 CNY 37,025 JPY 217,681 USD 16,338 JPY 1,151,653 EUR 3,242	Book value Exchange rate (NT$ in thousands)
		29.300 $ 859,119 4.091 151,471 0.2034 44,275 29.300 480,709 0.2034 234,289 34.35 111,349

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December 31, 2024

Book value

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items USD : NTD JPY : NTD Euro : NTD (Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items USD : NTD JPY : NTD Euro : NTD	Foreign currency (in thousand) USD 38,770 CNY 46,309 JPY 512,938 USD 19,898 JPY 345,127 EUR 1,787 June 30, 2024 Foreign currency (in thousand) USD 47,468 CNY 73,932 JPY 164,147 USD 14,951 JPY 844,444 EUR 1,020	Exchange rate (NT$ in thousands) 32.785 $ 1,270,949 4.478 207,372 0.2099 107,666 32.785 652,347 0.2099 72,442 32.14 61,008 Book value Exchange rate (NT$ in thousands) 32.45 $ 1,539,125 4.445 328,629 0.2017 33,108 32.45 484,793 0.2017 170,324 34.71 35,399

B. The aggregate amount of all exchange gains (losses) (including realized and unrealized) recognized for April 1 to June 30, 2025 and 2024, and January 1 to June 30, 2025 and 2024 on monetary items of the Group that are significantly affected by exchange rate fluctuations are NT($56,236), NT$19,247, NT($64,477) and NT$55,072, respectively.
C. The analysis of foreign currency risk due to significant exchange rate fluctuation is as follows:

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January 1 to June 30, 2025 Sensitivity Analysis Fluctuation Effect on profit or loss 1% $ 8,591 1% 1,515 1% 443 1% ( 4,807) 1% ( 2,343) 1% ( 1,113)	January 1 to June 30, 2025 Sensitivity Analysis Fluctuation Effect on profit or loss 1% $ 8,591 1% 1,515 1% 443 1% ( 4,807) 1% ( 2,343) 1% ( 1,113)	Other comprehensive profit and
Sensitivity
Fluctuation 1% 1% 1% 1% 1% 1%
	loss $ 8,591 1,515 443 ( 4,807) ( 2,343) ( 1,113)	loss affected $ - - - - - -

January 1 to June 30, 2024 Sensitivity Analysis Fluctuation Effect on profit or loss 1% $ 15,391 1% 3,286 1% 331 1% ( 4,848) 1% ( 1,703) 1% ( 354)	January 1 to June 30, 2024 Sensitivity Analysis Fluctuation Effect on profit or loss 1% $ 15,391 1% 3,286 1% 331 1% ( 4,848) 1% ( 1,703) 1% ( 354)	Other comprehensive profit and
Sensitivity
Fluctuation 1% 1% 1% 1% 1% 1%
	loss $ 15,391 3,286 331 ( 4,848) ( 1,703) ( 354)	loss affected $ - - - - - -

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 and financial assets at fair value through other comprehensive income.
B. The Group invests primarily in equity instruments and open-end funds issued by domestic and foreign companies. The price of such equity instrument is subject to the uncertainty of the future value of investment target. If the equity instrument price had increased/decreased by 1% with all other variables held constant, net

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income after tax from equity instruments at fair value through profit or loss for the nine months ended June 30, 2025 and 2024, would have increased/decreased by NT$8,636 and NT$19,335, respectively; other comprehensive income classified as equity investment at fair value through other comprehensive income would have both increased/decreased by NT$0.

Cash flow and fair value interest rate risk

A. The Group's interest rate risk mainly comes from long-term borrowings issued at floating rates, which exposes the Group to cash flow interest rate risk. For the periods between January 1 and June 30, 2025 and 2024, the Group’s borrowings issued at floating rates were mainly denominated in New Taiwan dollars and US dollars.
B. The Group's borrowings are measured at amortized cost, and the annual interest rate is re-priced according to the contract, which exposes the Group to the risk of future market interest rate changes.
C. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, net income after tax for the nine months ended June 30, 2025 and 2024 would have increased/decreased by NT$9,097 and NT$10,794, respectively due to the change in interest expenses as a result of borrowings with floating interest rates.
(2) Credit risk
A. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments under contract obligations, 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 at fair value through profit or loss.
B. The management of credit risk is established with a Group 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 Group’s credit policy, each local entity in the Group 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 Group considers a contract payment overdue in accordance with the agreed payment terms a breach of contract.
D. The Group 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

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financial asset is considered low.

E. The Group 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 Group 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 Group may write off the amount of financial assets that cannot be reasonably expected to be recovered after recourse. However, the Group will continue the recourse to protect the rights of the claims.
H. The Group has incorporated forward-looking considerations to adjust the loss rate built according to historical and current data in order to estimate the loss allowance of accounts receivable and notes receivable. The provision matrix for the periods ended June 30, 2025, December 31 and June 30, 2024 is shown as follows:

June 30, 2025	Not past due	Not past due	Up to 30 days	31-90 days	91-180 days	More than 181 days past due		Total
Expected loss rate	0.01%		0.01~26.57%	0.01~76.79%	66.68~100%	27.72%~100%
Total book value	$ 862,620		$ 128,577	$ 32,641	$ 9,835	$ 118,380	$ 1,152,053
Loss allowance		-	-	( 2,601)	( 3,289)	( 104,860)	(	110,750)
December 31, 2024	Not past due		Up to 30 days	31-90 days	91-180 days	More than 181 days past due		Total
Expected loss rate	0.01%		2.27~8.26%	9.12~66.68%	37.32~100%	75.03~100%
Total book value	$ 1,041,548		$ 142,862	$ 116,488	$ 43,381	$ 136,412	$ 1,480,691
Loss allowance		-	-	( 8,669)	( 7,468)	( 94,625)	(	110,762)
June 30, 2024	Not past due		Up to 30 days	31-90 days	91-180 days	More than 181 days past due		Total
Expected loss rate	0.01%		0.01~30.48%	0.01~62.25%	0.01~100%	0.10~100%
Total book value	$ 1,258,918		$ 202,205	$ 73,236	$ 58,989	$ 49,989	$ 1,643,337
Loss allowance		-	-	( 2,648)	( 18,427)	( 48,049)	(	69,124)

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

January 1 Recognize impairment loss Impact from exchange rate Amounts written off due to uncollectibility June 30	2025 $ 110,762 6,585 ( 324) ( 6,273) $ 110,750	2024 $ 29,423 39,700 1 - $ 69,124

(3) Liquidity risk
A. Cash flow forecasting is performed by the operating entities of the Corporate Group and aggregated by the Group’s treasury department. The Group’s Finance Department monitors the forecasts 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 Group will not exceed the relevant borrowing limits or violate the terms. These forecasts consider the Group’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 Group's finance department. The finance department of the Group invests the remaining funds in interest-bearing demand deposits, time deposits, and 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 adequate headroom as determined by the aforementioned forecasts. As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group held money market positions of NT$1,796,122, NT$2,325,127 and NT$2,270,081, respectively, which are expected to generate cash flow immediately to manage liquidity risk.
C. The Group's unutilized borrowings are shown as follows:

Floating rate Short-term credit limits Medium to long- term credit limits Fixed rate Medium to long- term credit limits	June 30, 2025 $ 753,316 - 44,493 $ 797,809	December 31, 2024 $ 920,414 - 4,493 $ 924,907	June 30, 2024 $ 1,106,613 - 8,326 $ 1,114,939

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D. The following table shows the Group’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:

June 30, 2025 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts Payable Other accounts payable (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received December 31, 2024 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts Payable Other accounts payable (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received June 30, 2024 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts Payable Other accounts payable (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received	Within 1 year $ 4,836,238 44,956 379,160 1,375,568 38,583 1,679,660 1,447,873 - Within 1 year $ 6,350,812 43,544 541,758 1,236,829 41,751 38,260 1,339,012 - Within 1 year $ 6,437,731 9,797 463,021 1,646,720 44,004 27,260 1,309,570 -	1 to 2 years $ - - - - 31,120 38,260 1,434,361 953 1 to 2 years $ - - - - 34,076 38,260 1,232,450 34,812 1 to 2 years $ - - - - 39,401 27,260 1,328,140 35,278	2 to 5 years $ - - - - 73,765 2,074,120 1,340,963 - 2 to 5 years $ - - - - 77,196 3,715,520 1,557,319 - 2 to 5 years $ - - - - 98,793 3,243,980 1,639,885 -	Over 5 years $ - - - - 315,437 - 320,775 - Over 5 years $ - - - - 337,258 - 437,867 - Over 5 years $ - - - - 434,538 - 443,433 -

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(III) Fair value information

The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in stocks of publicly traded or OTC firms and beneficiary certificates is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability The fair value of the Group’s investment in stocks of non-publicly traded or non-OTC firms and private equity fund is included in Level 3.
Financial instruments not measured at fair value
Cash, notes receivable, accounts receivable, other receivable, short-term borrowings, notes payable, accounts payable and other payable as reasonable approximation of fair value.
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:

June 30, 2025 Level 1 Assets Recurring fair value measurements Financial Assets at Fair Value Through Profit or Loss Equity securities $ 1,955,622 Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Convertible bond call/put options $-	June 30, 2025 Level 1 Assets Recurring fair value measurements Financial Assets at Fair Value Through Profit or Loss Equity securities $ 1,955,622 Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Convertible bond call/put options $-	June 30, 2025 Level 1 Assets Recurring fair value measurements Financial Assets at Fair Value Through Profit or Loss Equity securities $ 1,955,622 Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Convertible bond call/put options $-	Level 2 $ 63,330 $-	Level 3 $ 139,939 $ 30,694	Total $ 2,158,891 $ 30,694
		$-
Financial liabilities at fair value through profit or loss Convertible bond call/put options

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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 June 30, 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 $ 3,129,075 $- Level 1 $ 4,607,097 $-	Level 2 $ 57,520 $- Level 2 $ 92,372 $-	Level 3 $ 129,721 $ 19,204 Level 3 $ 134,261 $ 5,864	Total $ 3,316,316 $ 19,204 Total $ 4,833,730 $ 5,864

The methods and assumptions adopted by the Group for assessing the fair value are as follows:
(1) The Group 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 consolidated

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balance sheet (for example, the Taipei Exchange refers to the yield curve, the Reuters adopts the average quotation of interest rate of commercial promissory notes).

(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 Group. 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 Group'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 consolidated 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.
(4) The Group incorporates credit risk valuation adjustments into the consideration of the fair value of financial instruments and non-financial instruments to reflect counterparty credit risk and the credit quality of the Group, respectively.
There was no transfer between Levels 1 and 2 for the six months ended June 30, 2025 and 2024.
The following table shows the changes in Level 3 from January 1 to June 30, 2025 and 2024:

January 1, 2025 Acquisition cost of the period Sold in this period Recognized in profit or loss of the period Impact from exchange rate June 30, 2025 January 1, 2024 Acquisition cost of the period Recognized in profit or loss of the period Impact from exchange rate June 30, 2024	Financial instruments $ 110,517 15,000 ( 2,925) ( 11,490) ( 1,857) $ 109,245 Financial instruments $ 104,312 20,000 3,519 566
	$ 128,397

As Image Match Design Inc. was officially listed on the Emerging Stock Market on March 10, 2025, and trading volume in the market has increased steadily, sufficient observable market data has become available. Accordingly, the Group reclassified the fair value measurement of the investment from Level 3 to Level 2 at the end of the month in which the event occurred.
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:

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June 30, 2025

June 30, 2025
Derivative equity/liability instruments: Shares of non-listed and non-OTC company Convertible bond call/put options December 31, 2024 Derivative equity/liability instruments: Shares of non-listed and non-OTC company Convertible bond call/put options June 30, 2024 Derivative equity/liability instruments: Shares of non-listed and non-OTC company Convertible bond call/put options	Fair value $ 139,939 ( 30,694) Fair value $ 129,721 ( 19,204) Fair value $ 134,261 ( 5,864)	Valuation technique Net asset value method Convertible bond evaluation model Valuation technique Net asset value method Convertible bond evaluation model Valuation technique Net asset value method Convertible bond evaluation model	Significant unobservable inputs Range (weighted average) Net asset value - Stock price volatility 43.34% Significant unobservable inputs Range (weighted average) Net asset value - Stock price volatility 32.66% Significant unobservable inputs Range (weighted average) Net asset value - Stock price volatility 31.02%	Relationship between inputs and fair value The higher the net asset value, the higher the fair value The higher the stock price volatility, the higher the fair value Relationship between inputs and fair value The higher the net asset value, the higher the fair value The higher the stock price volatility, the higher the fair value Relationship between inputs and	Relationship between
			Net asset value Stock price volatility Significant unobservable inputs Net asset value Stock price volatility
				fair value The higher the net asset value, the higher the fair value The higher the stock price volatility, the higher the fair value

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

June 30, 2025

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Changes	Recognized in profit or loss Favorable changes Adverse changes $ 1,399 ($ 1,399) $ 20 ( 20) $ 1,419 ($ 1,419) $ December 31, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,297 ($ 1,297) $ 50 ( 50) $ 1,347 ($ 1,347) $ June 30, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,343 ($ 1,343) $ 10 - $ 1,353 ($ 1,343) $	Recognized in profit or loss Favorable changes Adverse changes $ 1,399 ($ 1,399) $ 20 ( 20) $ 1,419 ($ 1,419) $ December 31, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,297 ($ 1,297) $ 50 ( 50) $ 1,347 ($ 1,347) $ June 30, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,343 ($ 1,343) $ 10 - $ 1,353 ($ 1,343) $	Recognized in profit or loss Favorable changes Adverse changes $ 1,399 ($ 1,399) $ 20 ( 20) $ 1,419 ($ 1,419) $ December 31, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,297 ($ 1,297) $ 50 ( 50) $ 1,347 ($ 1,347) $ June 30, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,343 ($ 1,343) $ 10 - $ 1,353 ($ 1,343) $	Recognized in profit or loss Favorable changes Adverse changes $ 1,399 ($ 1,399) $ 20 ( 20) $ 1,419 ($ 1,419) $ December 31, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,297 ($ 1,297) $ 50 ( 50) $ 1,347 ($ 1,347) $ June 30, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,343 ($ 1,343) $ 10 - $ 1,353 ($ 1,343) $	Recognized in profit or loss Favorable changes Adverse changes $ 1,399 ($ 1,399) $ 20 ( 20) $ 1,419 ($ 1,419) $ December 31, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,297 ($ 1,297) $ 50 ( 50) $ 1,347 ($ 1,347) $ June 30, 2024 Recognized in profit or loss Favorable changes Adverse changes $ 1,343 ($ 1,343) $ 10 - $ 1,353 ($ 1,343) $	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 - $ - - - - $- Recognized in other comprehensive income Favorable changes Adverse changes - $ - - - - $- Recognized in other comprehensive income Favorable changes Adverse changes - $ - - - - $-
± 1% ± 1% Changes
± 1% ± 1% Changes
	Favorable changes $ 1,343 10		($	Adverse changes 1,343) -		$
							changes - - -
± 1% ± 1%
	$	1,353	($	1,343)	$	$

(IV) Sound Business Plan

As of June 30, 2025, the Group’s financial structure showed a debt ratio of 82% and a current ratio of 53%. In response, the Group has formulated and is actively implementing a sound business plan that addresses capital, operations and governance.

In terms of capital, the Company continues to sign credit contracts with major banks and extend short-term credit lines. Simultaneously, in July 2025, the Company also introduced strategic investors through private placement of common shares to improve the financial structure. The Company will continue to plan a public offering to increase capital in cash, in order to replenish the working capital and to reduce its debt-to-equity ratio.

In terms of operations, the Group has streamlined its organizational structure, optimized capacity allocation, strictly controlled raw material procurement and expense spending, and implemented a tiered tracking mechanism for accounts receivable to improve gross margin

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and accelerate cash collection.

In terms of governance, the Group has implemented an enterprise-wide risk management mechanism and established a quarterly reporting system to regularly update the Board of Directors and the Audit Committee on the execution status. The Group also evaluates market conditions to dispose of non-core assets or reinvestments as needed to supplement cash flow.

The Group expects that the full implementation of the above measures will ensure its ability to continue as a going concern and maintain long-term financial stability.

XIII. Supplementary Disclosure

(I) Significant transactions information

Loans to others: Please refer to Table 1.
Provision of endorsements and guarantees to others: Please refer to Table 2.
Significant securities held (excluding investment in subsidiaries, associates, and joint venture equity): Please refer to Table 3 for details.
Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: None.
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.
Significant intercompany transactions: Please refer to Table 4 for details.
(II) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Table 5.

(III) Information on investments in Mainland China

Basic information: Please refer to Table 6.
Significant transactions, either directly or indirectly through a third party or region, with investee companies in China: Please refer to Table 4.

XIV. Segments Information

(I) General information

Management has determined the reportable operating segments based on reports reviewed by the president and used to make strategic decisions.

The Group's corporate structure, the basis for division of segments, and the basis for measurement of segment information have not changed significantly during the current period.

(II) Segments Information

Information on the reporting segments provided to the chief operating decision maker is shown as follows:

January 1 to June 30, 2025:

Photomask and Medical segment Total semiconductor segment

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Revenue from external clients Segment revenue Segment margin Segment margin include: Depreciation Amortization expense Financial Costs Interest income Investments income recognized by using equity method Segment assets	$ 3,030,630 ($ 80,594) ($ 747,658) ($ 690,529) ($ 30,889) ($ 149,821) $ 7,720 ($ 30,743) $ 17,556,966	$ 187,260 ($ 7,205) ($ 68,565) ($ 36,198) ($ 8,069) ($ 10,176) $ 199 $- $ 1,056,470	$ 3,217,890 ($ 87,799) ($ 816,223) ($ 726,728) ($ 38,958) ($ 159,997) $ 7,919 ($ 30,743) $ 18,613,436

January 1 to June 30, 2024:

Revenue from external clients Segment revenue Segment margin Segment margin include: Depreciation Amortization expense Financial Costs Interest income Investments income recognized by using equity method Segment assets	Photomask and semiconductor segment	Medical segment	Total $ 3,847,924 ($ 112,317) $ 297,343 ($ 623,609) ($ 48,675) ($ 173,510) $ 16,362 ($ 25,872) $ 22,220,568
		$ 93,324 ($ 5,735) ($ 136,090) ($ 43,378) ($ 4,576) ($ 13,422) $ 123 $- $ 1,182,397
	$ 3,754,600 ($ 106,582) $ 433,433 ($ 580,231) ($ 44,099) ($ 160,088) $ 16,239 ($ 25,872) $ 21,038,171

(III) Reconciliation for segment income

Sales between segments are conducted according to the principle of transactions at fair value. The operating revenue from external customers reported to the operating decision maker is measured in a manner consistent with that in the income statement.

The consolidated income, assets and liabilities of related segments are consistent with the consolidated income, consolidated assets and consolidated liabilities, so there is no reconciliation information.

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AI assistant

TMC — Interim / Quarterly Report 2025

52014_rns_2025-12-24_a916da65-91f6-4085-a892-f501406031bc.pdf

Taiwan Mask Corporation and Subsidiaries

’ Q2 2025 and 2024 Consolidated Financial Statements and Independent Auditor s

Review Report

Table of Contents

Introduction

Scope

Basis for qualified opinion

Qualified opinion

Other matters

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2025 and December 31 and June 30, 2024

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2025 and December 31 and June 30, 2024

Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statement January 1 to June 30, 2025 and 2024

Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Changes in Equity January 1 to June 30, 2025 and 2024

Chairman: Sean Chen

Managerial Officer: Lidon Chen

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flows January 1 to June 30, 2025 and 2024

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flows January 1 to June 30, 2025 and 2024

Taiwan Mask Corporation and Subsidiaries Notes to the Consolidated Financial Statements

I. Company History

II. Date and procedures for passing the financial statement

III. Application of New and Revised International Financial Reporting Standards

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

IV. Summary of Significant Accounting Policies

(I) Compliance statement

(II) Basis of Preparation

(III) Basis of consolidation

2. Subsidiaries included in the consolidated financial statements:

Balance Sheet

Statements of Cash Flows

(IV) Employee benefits

Pensions

Defined benefit plans

(V) Income tax

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

VI. Summary of Significant Accounting Items

(I) Cash and Cash Equivalents

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

(III) Financial assets measured at amortized cost

(IV) Notes and accounts receivable

(VI) Investment under Equity Method

Shareholding percentage

(VII) Property, plant and equipment

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

(IX) Leasing arrangements - lessor

(X) Real estate investment

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

(XI)

(XII) Impairment of non-financial assets

(XIII) Other Non-Current Assets

(XIV) Short Term Loans

(XV) Other Payables

(XVII) Long-term Loans

(XVIII) Pensions

(XIX) Capital

(XX) Capital surplus

(XXI) Retained earnings

(XXII) Other equity interests

(XXIII) Operating income

(XXV) Other Incomes

(XXVI) Other Gains and Losses

(XXVII) Financial Costs

(XXVIII) Expenses by nature

(XXIX) Employee benefits expenditure

(XXX) Income tax

1. Income tax expense

(XXXI) Earnings (loss) per share

(XXXII) Supplemental cash flow information

1. Investing activities with partial cash payments:

(XXXIII) Changes in liabilities arising from financing activities

VII. Related Party Transactions

(I) Related parties' names and relationship

(II) Significant transactions with the related parties

4. Others

(III) Compensation of key management personnel

VIII. Pledged assets

TMC Interim / Quarterly Report 2025