Stock Code: 6443

TSEC Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Review Report

Q1 2026 and 2025

Address: 8F., No. 225, Sec. 3, Beixin Rd., Xindian Dist., New Taipei
City 231, Taiwan
Tel.: (02)2912-2199

§TABLE OF CONTENTS§

Item		Page	Notes No.to Financial Statements
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Independent Auditors' Review Report	3~4	-
IV.	Consolidated Balance Sheets	5	-
V.	Consolidated Statements of Comprehensive Income	6~7	-
VI.	Consolidated Statements of Changes in Equity	8	-
VII.	Consolidated Statements of Cash Flows	9~10	-
VIII.	Notes to Consolidated Financial Statements
	(I) Company History	11	I
	(II) Date and Procedure for Approval of Financial Statements	11	II
	(III) Application of Newly Issued, Amended Standards and Interpretations	11~13	III
	(IV) Summary of Significant Accounting Policies	13~14	IV
	(V) Critical Accounting Judgments, Assumptions, and Key Sources of Estimation Uncertainty	14	V
	(VI) Description of Material Accounting Items	14~47	VI-XXX
	(VII) Related-party Transactions	47~50	XXXI
	(VIII) Pledged Assets	50	XXXII
	(IX) Significant Contingent Liabilities and Unrecognized Commitments	50	XXXIII
	(X) Material Loss Caused by Natural Disasters	-	-
	(XI) Significant Subsequent Events	51	XXXIV
	(XII) Others	51~52	XXXV
	(XIII) Additional Disclosures
	1. Information about significant transactions	52, 54~55	XXXVI
	2. Information on investees	53, 56	XXXVI
	3. Information on investments in mainland China	53	XXXVI
	(XIV) Segment Information	53	XXXVII

Independent Auditors' Review Report

To Board of Directors and Shareholders of TSEC Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of TSEC Corporation and its subsidiaries as of March 31, 2026 and 2025, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the periods from January 1, 2026 to March 31, 2026 and from January 1, 2025 to March 31, 2025, and the notes to the consolidated financial statements (including a summary of significant accounting policies). Management is responsible for the preparation and fair presentation of Group the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review and the review reports of other auditors (please refer to the Other Matters paragraph), nothing has come to our attention that caused us to believe that the aforementioned consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of TSEC Corporation and its subsidiaries as of March 31, 2026 and 2025, and the consolidated financial performance and consolidated cash flows for the periods from January 1, 2026 to March 31, 2026 and from January 1, 2025 to March 31, 2025, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the Financial Supervisory Commission.

May 8, 2026

Other Matter Paragraph

In the consolidated financial statements of the invested company included in the evaluation of equity method by the TSEC Corporation Group, the financial statements of Yuan-Yu Solar Energy Co., Ltd. and NFC III Renewable Power Co., Ltd. were not reviewed by our auditors, but by other auditors. Therefore, the conclusions made by our auditors regarding the amounts presented in the financial statements of investee companies in the aforementioned consolidated financial statements are based on the review results of the other auditors. As of March 31, 2026 and 2025, the carrying amounts of investments accounted for using the equity method in the aforementioned investee companies were NT$ 492,077 thousand and NT$ 550,547 thousand, respectively, representing 7.7% and 5.5% of total consolidated assets, respectively. For the periods from January 1, 2026 to March 31, 2026 and from January 1, 2025 to March 31, 2025, the shares of profit or loss of associates recognized under the equity method for the aforementioned investee companies were NT$ (5,906) thousand and NT$ (2,178) thousand, respectively, representing 6.05% and 1.77% of total consolidated comprehensive income, respectively.

Deloitte & Touche
CPA Cheng-Chuan Yu
CPA Meng-Kuei Yu

Securities and Futures Commission Approval Number
Tai-Cai-Zheng-Liu-Zi No. 0930128050
Financial Supervisory Commission Approval Number
Jin-Guan-Zheng-Shen-Zi No. 1130357402

TSEC Corporation and Subsidiaries
Consolidated Balance Sheets
March 31, 2026 and December 31, 2025 and March 31, 2025
Unit: NTS thousand

Code	Assets	March 31, 2026		December 31, 2025		March 31, 2025
		Amount	%	Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Note VI)	$ 394,654	6	$ 611,512	9	$ 583,181	6
1110	Financial assets at fair value through profit or loss (Note VII)	43	-	-	-	2	-
1136	Financial assets at amortized cost (Notes VIII and XXXII)	95,760	1	51,981	1	113,323	1
1150	Notes receivable (Notes IX and XXV)	250,834	4	243,753	4	725,871	7
1172	Accounts receivable (Notes IX and XXV)	133,272	2	205,561	3	376,768	4
1180	Accounts receivable - related parties (Notes IX, XXV and XXXI)	-	-	39	-	4	-
1200	Other receivables (Note IX)	1,031	-	1,262	-	3,500	-
1210	Other receivables - related parties (Note XXXI)	422	-	55	-	421	-
1220	Current tax assets (Note IV)	2,309	-	4,159	-	3,687	-
130X	Inventories (Note X)	482,167	8	374,853	6	1,097,943	11
1470	Other current assets (Note XVIII)	47,297	1	74,348	1	55,763	1
11XX	Total current assets	1,407,789	22	1,567,523	24	2,960,463	30
Non-current assets
1517	Financial assets at fair value through other comprehensive income (Note XI)	-	-	-	-	45,020	-
1535	Financial assets at amortized cost (Notes VIII and XXXII)	26,740	-	50,764	1	60,797	1
1550	Investments accounted for using the equity method (Notes XIII and XXXII)	679,892	11	684,076	10	779,404	8
1600	Property, plant and equipment (Notes XIV and XXXII)	4,031,422	64	4,121,836	62	5,565,169	56
1755	Right-of-use assets (Note XV)	10,293	-	11,820	-	2,557	-
1760	Investment properties (Note XVI)	2,159	-	2,618	-	3,994	-
1780	Other intangible assets (Note XVII)	5,094	-	6,413	-	7,646	-
1840	Deferred tax assets (Note IV)	-	-	-	-	243,231	2
1990	Other non-current assets (Notes XVIII and XXXI)	189,663	3	180,085	3	266,485	3
15XX	Total non-current assets	4,945,263	78	5,057,612	76	6,974,303	70
1XXX	Total assets	$ 6,353,052	100	$ 6,625,135	100	$ 9,934,766	100
Code	Liabilities and equity
Current liabilities
2100	Short-term borrowings (Notes XIX and XXXII)	$ 487,932	8	$ 300,000	4	$ 113,593	1
2110	Short-term bills payable (Notes XIX and XXXII)	-	-	119,832	2	109,847	1
2130	Contract liabilities (Notes XXV and XXXI)	28,095	1	62,324	1	32,369	-
2150	Notes payable (Note XX)	-	-	4	-	14	-
2170	Accounts payable (Note XX)	112,766	2	103,216	2	216,044	2
2180	Accounts payable - related parties (Note XXXI)	26	-	-	-	-	-
2200	Other payables (Note XXI)	153,473	2	220,414	3	201,382	2
2220	Other receivables from related parties (Notes XXXI)	-	-	102	-	-	-
2280	Lease liabilities (Note XV)	5,062	-	5,365	-	2,235	-
2320	Current portion of long-term borrowings (Notes XIX and XXXII)	331,603	5	387,150	6	484,353	5
2399	Other current liabilities (Note XXI)	18,851	-	19,014	-	23,018	-
21XX	Total current liabilities	1,137,808	18	1,217,421	18	1,162,855	11
Non-current liabilities
2540	Long term-term borrowings (Notes XIX and XXXII)	1,316,980	21	1,412,671	21	1,735,191	18
2550	Provisions	29,639	-	29,702	1	28,915	-
2570	Deferred tax liabilities (Note IV)	12,126	-	10,048	-	7,777	-
2580	Lease liabilities (Note XV)	5,308	-	6,514	-	322	-
2635	Preferred share liabilities (Note XXIII)	287,949	5	287,949	5	287,949	3
2670	Other non-current liabilities (Note XXI)	18,807	-	18,807	-	1,080	-
25XX	Total non-current liabilities	1,670,809	26	1,765,691	27	2,061,234	21
2XXX	Total liabilities	2,808,617	44	2,983,112	45	3,224,089	32
Equity attributable to owners of the Company (Note XXIV)
3110	Share capital	5,127,967	81	5,127,967	77	5,127,967	52
3200	Capital reserve	1,702,733	27	1,702,733	26	1,965,641	20
Accumulated losses
3310	Legal reserve	-	-	-	-	76,100	1
3320	Special reserve	170,510	3	170,510	3	170,900	2
3350	Deficit to be compensated	( 3,464,961 )	( 55 )	( 3,364,330 )	( 51 )	( 628,177 )	( 7 )
3300	Total accumulated losses	( 3,294,451 )	( 52 )	( 3,193,820 )	( 48 )	( 381,177 )	( 4 )
3400	Other equity	5,321	-	2,274	-	( 4,632 )	-
31XX	Total equity attributable to owners of the Company	3,541,570	56	3,639,154	55	6,707,799	68
36XX	Non-controlling interests (Note XXIV)	2,865	-	2,869	-	2,878	-
3XXX	Total equity	3,544,435	56	3,642,023	55	6,710,677	68
Total liabilities and equity		$ 6,353,052	100	$ 6,625,135	100	$ 9,934,766	100

The accompanying notes are an integral part of the financial statements.
(Please refer to the review report of Deloitte Taiwan dated May 8, 2026)

Chairman: Wei Ren Investment Co., Ltd.
Representative: Kuo-Jung Liao
Manager: Cheng-Ye Yu
Chief Accounting Officer: Wei-Che Chang

TSEC Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income
For the three months ended March 31, 2026 and 2025

Unit: NT$ thousand, except loss per share in NT$

Code		For the three months ended March 31, 2026		For the three months ended March 31, 2025
		Amount	%	Amount	%
4000	Operating Revenue (Notes XXV, XXXI and XXXVII)	$ 406,130	100	$ 741,598	100
5000	Operating Costs (Notes X, XXII and XXV)	427,024	105	772,434	104
5900	Gross operating loss	( 20,894 )	( 5 )	( 30,836 )	( 4 )
5920	Realized gross loss on sales with associates	( 107 )	-	( 120 )	-
5950	Net gross operating loss	( 21,001 )	( 5 )	( 30,956 )	( 4 )
	Operating expenses (Notes XXII and XXV)
6100	Selling and marketing	16,135	4	18,117	3
6200	General and administrative	36,462	9	44,280	6
6300	Research and development	6,249	2	12,487	2
6450	Reversal gain on expected credit losses (Note IX)	( 4,000 )	( 1 )	( 4,202 )	( 1 )
6000	Total operating expenses	54,846	14	70,682	10
6500	Other Incomes and expenses, net (Note XXV)	( 480 )	-	( 941 )	-
6900	Net operating loss	( 76,327 )	( 19 )	( 102,579 )	( 14 )
	Non-operating income and expenses
7010	Other income (Note XXV and XXXI)	2,914	1	2,747	1
7020	Other gain and loss (Note XXV)	157	-	659	-
7050	Finance costs (Note XXV)	( 19,080 )	( 4 )	( 15,992 )	( 2 )
7060	Share of profit or loss of associates	( 6,985 )	( 2 )	( 1,093 )	-
7100	Interest income (Note XXV)	752	-	2,016	-
7000	Total non-operating income and expenses	( 22,242 )	( 5 )	( 11,663 )	( 1 )
7900	Pre-tax net loss	( 98,569 )	( 24 )	( 114,242 )	( 15 )
7950	Income tax expense (Notes IV and XXVI)	( 2,066 )	( 1 )	( 3,936 )	( 1 )
8200	Net loss for the period	( 100,635 )	( 25 )	( 118,178 )	( 16 )

(Continued to the next page)

(Continued)

Code		For the three months ended March 31, 2026		For the three months ended March 31, 2025
		Amount	%	Amount	%
Other comprehensive income
8310	Items that will not be reclassified subsequently to profit or loss:
8316	Unrealized gain on investments in equity instruments measured at fair value through other comprehensive income (Note XXIV)	$ -	-	($ 4,811)	( 1 )
8320	Share of other comprehensive income of associates and joint ventures accounted for using the equity method (Note XXIV)	2,908	1	( 4 )	-
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences in the translation of the financial statements of foreign operations (Note XXIV)	149	-	111	-
8399	Income tax relating to items that may be reclassified subsequently to profit or loss (Note XXVI)	( 10 )	-	( 22 )	-
8300	Other comprehensive income (loss) for the period, net of income tax	3,047	1	( 4,726 )	( 1 )
8500	Total comprehensive income	($ 97,588 )	( 24 )	($ 122,904 )	( 17 )
Net loss attributable to:
8610	The owners of the Company	($ 100,631 )	( 25 )	($ 118,175 )	( 16 )
8620	Non-controlling interests	( 4 )	-	( 3 )	-
8600		($ 100,635 )	( 25 )	($ 118,178 )	( 16 )
Total Comprehensive Income Attributable To:
8710	Owners of the Company	($ 97,584 )	( 24 )	($ 122,901 )	( 17 )
8720	Non-controlling interests	( 4 )	-	( 3 )	-
8700		($ 97,588 )	( 24 )	($ 122,904 )	( 17 )
Loss per share (Note XXVII)
9710	Basic	($ 0.20 )		($ 0.23 )
9810	Diluted	($ 0.20 )		($ 0.23 )

The accompanying notes are an integral part of the financial statements. (Please refer to the review report of Deloitte Taiwan dated May 8, 2026)

Chairman: Wei Ren Investment Co., Ltd.

Manager: Cheng-Ye Yu

Chief Accounting Officer: Wei-Che Chang

Representative: Kuo-Jung Liao

TSEC Corporation and Subsidiaries
Consolidated Statements of Changes in Equity
For the three months ended March 31, 2026 and 2025
Unit: Except as otherwise noted, NTS thousand

Code		Equity attributable to owners of the Company (Note 24)
		Share capital			Accumulated losses			Other equity
		Number of Shares (In Thousands)	Amount	Capital reserve	Legal reserve	Special reserve	Deficit to be compensated	foreign differences in the translation of the financial statements of foreign operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total	Non-controlling interests (Notes XII and XXIV)	Total equity
A1	Balance at January 1, 2025	512,797	$ 5,127,967	$ 1,965,641	$ 76,100	$ 170,900	($ 339,398)	$ 206	($ 170,716)	$ 6,830,700	$ 2,881	$ 6,833,581
Q1	Disposal of in equity instruments at fair value through other comprehensive income (Note XI)	-	-	-	-	-	( 170,604 )	-	170,604	-	-	-
D1	Net loss for the three months ended March 31, 2025	-	-	-	-	-	( 118,175 )	-	-	( 118,175 )	( 3 )	( 118,178 )
D3	Other comprehensive income after tax for the period for the three months ended March 31, 2025	-	-	-	-	-	-	89	( 4,815 )	( 4,726 )	-	( 4,726 )
D5	Total comprehensive income (loss) for the three months ended March 31, 2025	-	-	-	-	-	( 118,175 )	89	( 4,815 )	( 122,901 )	( 3 )	( 122,904 )
Z1	Balance at March 31, 2025	512,797	$ 5,127,967	$ 1,965,641	$ 76,100	$ 170,900	($ 628,177 )	$ 295	($ 4,927 )	$ 6,707,799	$ 2,878	$ 6,710,677
A1	Balance at January 1, 2026	512,797	$ 5,127,967	$ 1,702,733	$ -	$ 170,510	($ 3,364,330 )	($ 100 )	$ 2,374	$ 3,639,154	$ 2,869	$ 3,642,023
D1	Net loss for the period from January 1, 2026 to March 31, 2026	-	-	-	-	-	( 100,631 )	-	-	( 100,631 )	( 4 )	( 100,635 )
D3	Other comprehensive income after tax from January 1, 2026 to March 31, 2026	-	-	-	-	-	-	139	2,908	3,047	-	3,047
D5	Total comprehensive loss from January 1, 2026 to March 31, 2026	-	-	-	-	-	( 100,631 )	139	2,908	( 97,584 )	( 4 )	( 97,588 )
Z1	Balance at March 31, 2026	512,797	$ 5,127,967	$ 1,702,733	$ -	$ 170,510	($ 3,464,961 )	$ 39	$ 5,282	$ 3,541,570	$ 2,865	$ 3,544,435

The accompanying notes are an integral part of the financial statements.
(Please refer to the review report of Deloitte Taiwan dated May 8, 2026)

Chairman: Wei Ren Investment Co., Ltd.
Representative: Kuo-Jung Liao

Manager: Cheng-Ye Yu

Chief Accounting Officer: Wei-Che Chang

TSEC Corporation and Subsidiaries
Consolidated Statements of Cash Flows
For the three months ended March 31, 2026 and 2025
Unit: NT$ thousand

Code	Cash flows from operating activities	For the three months ended March 31, 2026	For the three months ended March 31, 2025
A10000	Pre-tax net loss	($ 98,569)	($ 114,242)
A20010	Items of income, expenses, gains and losses:
A20100	Depreciation expense	84,559	157,195
A20200	Amortization expense	1,319	1,114
A20300	Reversal of expected credit losses	( 4,000)	( 4,202)
A20400	Net gain on fair value changes of financial assets at fair value through profit or loss	( 43)	( 2)
A20900	Finance costs	19,080	15,992
A21200	Interest income	( 752)	( 2,016)
A22300	Share of profit or loss of associates	6,985	1,093
A24000	Realized losses from associates	107	120
A24100	Net unrealized (gain) loss on foreign currency exchange	( 513)	501
A22500	Loss on disposal of property, plant and equipment	480	-
A29900	Lease modification gain	-	( 26)
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	( 7,081)	( 218,595)
A31150	Accounts receivable	76,289	412,841
A31160	Accounts receivable from related parties	39	4
A31180	Other receivables	617	( 268)
A31190	Other receivables from related parties	( 367)	( 274)
A31200	Inventories	( 107,314)	67,007
A31240	Other current assets	27,051	( 31,684)
A32125	Contract liabilities	( 34,229)	( 15,213)
A32130	Notes payable	( 4)	4
A32150	Accounts payable	9,550	1,008
A32160	Accounts payable - related parties	26	-
A32180	Other payables	( 55,771)	( 48,296)
A32190	Other payables from related parties	( 102)	-
A32200	Provisions	( 63)	733
A32230	Other current liabilities	( 163)	( 482)
A33000	Cash from operating activities	( 82,869)	222,312
A33100	Interest received	366	1,628

(Continued)

Code		For the three months ended March 31, 2026	For the three months ended March 31, 2025
A33300	Finance costs paid	($ 15,713)	($ 13,112)
A33500	Refund (payment) of income tax	1,851	152
AAAA	Net cash inflow (outflow) from operating activities	( 96,365 )	210,676
	Cash flows from investing activities
B00010	Financial assets obtained at fair value through other comprehensive income (FVTOCI)	-	( 49,831 )
B00040	Acquisition of financial assets at amortized cost	( 19,755 )	-
B00050	Proceeds from sale of financial assets at amortized cost	-	20,014
B02700	Payments for property, plant and equipment (Note XXVIII)	( 22,653 )	( 62,743 )
B02800	Proceeds from disposal of property, plant, and equipment	8,401	-
B03700	Increase in refundable deposits	( 2,502 )	-
B03800	Decrease in refundable deposits	-	298
BBBB	Net cash used in investing activities	( 36,509 )	( 92,262 )
	Cash flows from financing activities
C00100	Increase in short-term borrowings	187,932	-
C00200	Decrease in short-term borrowings	-	( 36,611 )
C00600	Decrease in short-term notes payable	( 119,832 )	( 19,995 )
C01600	Proceeds from long-term borrowings	350,000	-
C01700	Repayments of long-term borrowings	( 501,238 )	( 99,254 )
C04020	Repayment of principal of lease liabilities	( 1,509 )	( 1,922 )
CCCC	Net cash outflows from financing activities	( 84,647 )	( 157,782 )
DDDD	Effect of exchange rate changes on cash and cash equivalents	663	367
EEEE	Net decrease in cash and cash equivalents	( 216,858 )	( 39,001 )
E00100	Cash and cash equivalents at the beginning of the period	611,512	622,182
E00200	Cash and cash equivalents at the end of the period	$ 394,654	$ 583,181

The accompanying notes are an integral part of the financial statements. (Please refer to the review report of Deloitte Taiwan dated May 8, 2026)

Chairman: Wei Ren Investment Co., Ltd.
Representative: Kuo-Jung Liao

Manager: Cheng-Ye Yu

Chief Accounting Officer: Wei-Che Chang

TSEC Corporation and Subsidiaries
Notes to Consolidated Financial Statements
For the three months ended March 31, 2026 and 2025
(Unless otherwise specified, amounts are in NT$ thousand)

I. Company History

TSEC Corporation (hereinafter referred to as “the Company”, and together with the entities controlled by the Company, hereinafter referred to as the “Group”) was approved for incorporation on June 24, 2010 and is principally engaged in the design, manufacture, construction and sale of solar cells, modules and power plants.

The Company's shares have been listed for trading on the Taiwan Stock Exchange since October 1, 2015.

These Consolidated Financial Statements are presented in NT$, the Company's functional currency.

II. Date and Procedure for Approval of Financial Statements

These Consolidated Financial Statements were Approved by the Board of Directors of the Company on May 8, 2026.

III. Application of Newly Issued, Amended Standards and Interpretations

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

The application of the IFRSs endorsed and issued into effect by the FSC does not have material impact on the Group's accounting policies.

(II) IFRS Accounting Standards Issued by the IASB but Not Yet Endorsed and Issued into Effect by the FSC

Newly Issued/Amended/Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	Undecided
IFRS 18 “Presentation and Disclosures in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Disclosure of Non-Publicly Accountable Subsidiaries” (including the 2025 amendments)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

11 -

Note 2: On September 25, 2025, the FSC announced that enterprises in Taiwan shall apply IFRS 18 starting from January 1, 2028, and may choose early adoption after IFRS 18 is approved by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and related consequential amendments

IFRS 18 will supersede IAS 1 "Presentation of Financial Statements". The main changes comprise:

The Group shall assess whether it has specific primary operating activities of investing in particular types of assets and providing financing to customers, and accordingly classify income and expense items in the statement of profit or loss into the operating, investing, financing, income tax and discontinued operations categories.
The income statement shall be reported as operating income, pre-tax income before financing, and the sum and total of profit and loss.
Provide guidance to strengthen aggregation and segmentation: The consolidated company must identify the assets, liabilities, equity, income, expenses and cash flows generated from individual transactions or other matters, and consolidated company and aggregate them based on common characteristics, so that each line item presented in the financial statements has at least one similar characteristic. Items that are dissimilar from other items should be disaggregated. The consolidated company only labels such items as "other" when it is unable to find a more informative label.
Increasing the disclosure of the performance measurement defined by management: When the consolidated company has open communication outside the financial statements, and when management's view of the consolidated company's overall financial performance on a certain aspect is disclosed to users of the financial statements, it shall be disclosed in a separate note to the financial statements on performance measurements defined by management, including descriptions of the measurements, how to calculate them, reconciliations between them and any subtotals or totals specified in IFRS, and the impact of relevant adjustments on income tax and non-controlling interests, etc.

In addition, IAS 7 "Statement of Cash Flows" is amended as follows:

When the Group prepares cash flows from operating activities using the indirect method, operating profit or loss shall be used as the starting point for reconciliation.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If, upon assessment, the Group has specific primary operating activities, it shall consider the category in which dividend income, interest income and interest expense are presented in the statement of profit or loss, and accordingly determine the classification of dividends received, interest received and interest paid in the statement of cash flows; however, each of the aforementioned cash flows may only be classified in a single category in the statement of cash flows.
12 -

Except for the above impact, as of the date these Consolidated Financial Statements were approved for issue, the Group is still assessing the impact of the amendments to the standards and interpretations on its financial position and financial performance, and the relevant impact will be disclosed when the assessment is completed.

IV. Summary of Significant Accounting Policies

(I) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, "Interim Financial Reporting" as endorsed and issued into effect by the FSC. Disclosure information included in the consolidated financial statements is less than those required in a complete set of annual consolidated financial statements.

(II) Basis of preparation

The statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

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

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

(III) Basis of consolidation

See Notes XII and Table 3 of Note XXXVI for detailed information on subsidiaries.

(IV) Other material accounting policies

Except as described below, please refer to the summary of significant accounting policies in the 2025 Consolidated Financial Statements.

Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

13 -

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

When the Group adopts accounting policies, management must make the relevant judgments, estimates and assumptions based on historical experience and other relevant factors for information that is not readily available from other sources. Actual results may differ from these estimates.

The consolidated company takes into account the impacts of inflation and possible market interest rate fluctuations on the relevant critical accounting estimates of cash flows, growth rates, discount rates, and profitability. The management will continue to review the estimates and the basic assumptions.

Please refer to the description of major sources of significant accounting judgments, estimates and assumptions uncertainty in the 2025 Consolidated Financial Statements.

VI. Cash and Cash Equivalents

	March 31, 2026	December 31, 2025	March 31, 2025
Cash on hand	$ 478	$ 479	$ 609
Checking accounts and demand deposits	378,178	591,033	500,693
Cash equivalents
Time deposits with original maturities of 3 months or less	15,998	20,000	81,879
	$ 394,654	$ 611,512	$ 583,181

The market interest rate intervals of demand deposits and time deposits with maturities of 3 months or less at the end of reporting period were as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Demand deposits	0.03%~0.71%	0.03%~0.71%	0.01%~1.10%
Time deposits with original maturities of 3 months or less	3.61%	1.72%	1.62%~4.44%

VII. Financial Instruments at Fair Value Through Profit or Loss

	March 31, 2026	December 31, 2025	March 31, 2025
Mandatorily measured at fair value through profit or loss
Derivatives (not designated as hedging instruments)
-forward exchange agreements	$ 43	$ -	$ 2

The outstanding forward foreign exchange contracts that did not apply hedge accounting and had not yet matured as of the balance sheet date were as follows:

March 31, 2026

	Currency	Maturity Date	Contract amount (NT$ thousand)
Purchased forward exchange contracts	USD against NTD	2026.04.16	USD	141 /NTD	4,493
Purchase of forward exchange agreement	USD against NTD	2026.04.23	USD	122 /NTD	3,899
Purchase of forward exchange agreement	RMB to NTD	2026.05.25	RMB	222 /NTD	1,031

March 31, 2025

	Currency	Maturity Date	Contract amount (NT$ thousand)
Purchased forward exchange contracts	RMB against NTD	2025.04.10	RMB	180 /NTD	822

The consolidated company entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. The purpose of its financial hedging strategy is to hedge against most of the market price risk.

VIII. Financial Assets at Amortized Cost

	March 31, 2026	December 31, 2025	March 31, 2025
Current
Time deposits with original maturities of more than 3 months	$ 17,910	$ 11,892	$ 55,118
Restricted assets - cash in banks	8,000	8,000	58,205
Restricted assets - time deposits with original maturities of more than 3 months	69,850	32,089	-
	$ 95,760	$ 51,981	$ 113,323
Non-current
Restricted assets - cash in banks	$ 21,472	$ 13,263	$ -
Restricted assets - demand deposits and time deposits	5,268	37,501	60,797
	$ 26,740	$ 50,764	$ 60,797

As of March 31, 2026, December 31, 2025 and March 31, the interest rate ranges for the above deposits were $0.655\% \sim 1.7\%$ , $0.04\% \sim 1.72\%$ and $0.66\% \sim 4.18\%$ , respectively.

For the pledge and collateral conditions of the above restricted assets, please refer to Note XXXII.

IX. Notes receivable, accounts receivable (including related parties) and other receivables

	March 31, 2026	December 31, 2025	March 31, 2025
Notes receivable
At amortized cost
Gross carrying amount	$ 250,834	$ 243,753	$ 725,871
Less: Allowance for impairment loss	-	-	-
	$ 250,834	$ 243,753	$ 725,871
Accounts receivable
At amortized cost
Gross carrying amount	$ 216,010	$ 292,299	$ 376,768
Less: Allowance for impairment loss	( 82,738 )	( 86,738 )	-
	$ 133,272	$ 205,561	$ 376,768
Accounts receivable from related parties
At amortized cost
Gross carrying amount	$ -	$ 39	$ 4
Less: Allowance for impairment loss	-	-	-
	$ -	$ 39	$ 4
Other receivables
Interest receivable	$ 999	$ 613	$ 1,699
Refund of prepayments receivable	-	-	1,469
Others	32	649	332
	$ 1,031	$ 1,262	$ 3,500

(I) Notes receivable

The Group reviews the recoverable amount of the notes receivable on the balance sheet date to ensure that appropriate impairment losses have been recorded for uncollectible notes receivable. As of March 31, 2026, December 31, 2025 and March 31, the Group assessed that notes receivable did not require recognition of expected credit losses.

To accelerate cash flow and enhance payment efficiency, the consolidated company agreed that payment from a certain customer would be made directly by the project owner to the consolidated company. However, this does not affect the original procurement contract terms or the responsibilities between the two parties. The consolidated company classifies notes receivable as current based on the agreed collection dates.

The aging analysis of notes receivable based on the record date is as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
1-60 days	$ 250,834	$ 3,898	$ 372,992
61-90 days	-	239,855	157,620
91-180 days	-	-	195,259
	$ 250,834	$ 243,753	$ 725,871

(II) Accounts receivable/accounts receivable from related parties

The average credit period of accounts receivable is 30-75 days. No interest is charged on accounts receivable. In addition, the consolidated company reviews the recoverable amount of each individual trade debt at the end of the year to ensure that adequate allowance is made for possible irrecoverable amounts. Accordingly, the Company's management believes that the Group has appropriately reflected credit risk. The Group continuously monitors credit exposure and the credit ratings of counterparties, and diversifies the total transaction amount among different customers with qualified credit ratings.

The Group recognizes the loss allowance for accounts receivable at an amount equal to lifetime expected credit losses. The ECLs on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecast and industry outlook. As the Group's historical credit loss experience indicates that there are no significant differences in loss patterns among different customer groups, the provision matrix does not further distinguish customer groups and only sets the expected credit loss rate based on the number of days past due of accounts receivable.

If there is evidence showing that a counterparty is facing serious financial difficulties and the Group cannot reasonably expect the amount to be recovered, the Group directly writes off the related accounts receivable, but will continue collection activities, and amounts recovered through collection are recognized in profit or loss.

The Group measures the loss allowance for accounts receivable (including related parties) based on the provision matrix as follows:

March 31, 2026

	Not Past Due	Up to 60 Days	61 to 120 Days	Over 121 Days	Individual Assessment	Total
Expected credit loss rate	0.00%	0.00%	-	-	100%
Gross carrying amount	$ 19,473	$ 113,799	$ -	$ -	$ 82,738	$ 216,010
Loss allowance (Lifetime ECLs)	-	-	-	-	( 82,738 )	( 82,738 )
Amortized cost	$ 19,473	$ 113,799	$ -	$ -	$ -	$ 133,272

December 31, 2025

	Not Past Due	Up to 60 Days	61 to 120 Days	Over 121 Days	Individual Assessment	Total
Expected credit loss rate	0.00%	0.00%	0.00%	-	100%
Gross carrying amount	$ 169,248	$ 8,483	$ 27,869	$ -	$ 86,738	$ 292,338
Loss allowance (Lifetime ECLs)	-	-	-	-	( 86,738 )	( 86,738 )
Amortized cost	$ 169,248	$ 8,483	$ 27,869	$ -	$ -	$ 205,600

March 31, 2025

	Not Past Due	Up to 60 Days	61 to 120 Days	Over 121 Days	Individual Assessment	Total
Expected credit loss rate	0%	-	-	-	-	-
Gross carrying amount	$ 130,865	$ -	$ -	$ -	$ 245,907	$ 376,772
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$ 130,865	$ -	$ -	$ -	$ 245,907	$ 376,772

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

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Balance at January 1	$ 86,738	$ 4,202
Add: Provision for impairment loss for the period	-	-
Less: Reversal of impairment loss for the period	( 4,000 )	( 4,202 )
Ending balance	$ 82,738	$ -

For information on the concentration of credit risk of the Group's receivables as of March 31, 2026, December 31, 2025 and March 31, please refer to Note XXX(IV).

(III) Other receivables

The consolidated company's account of other receivables is major interest receivable. The consolidated company adopted a policy of dealing only with credit worthy counterparties. The consolidated company determines whether credit risk has increased significantly since initial recognition and measures the loss allowance for other receivables by continuous monitoring of the debtor, with reference to the past default experience of the debtor and an analysis of the debtor's current financial position. As of March 31, 2026, December 31, 2025 and March 31, the Group assessed that the expected credit loss rates of other receivables were all 0%.

19 -

X. Inventories

	March 31, 2026	December 31, 2025	March 31, 2025
Raw materials	$ 247,093	$ 173,767	$ 946,848
Finished goods	197,515	173,894	132,237
Construction in progress	23,436	17,958	10,089
Work in process	14,123	9,234	8,769
	$ 482,167	$ 374,853	$ 1,097,943

The nature of the cost of goods sold is as follows:

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Cost of inventories sold	$ 420,239	$ 744,305
Others	6,785	28,129
	$ 427,024	$ 772,434

XI. Financial Assets at Fair Value Through Other Comprehensive Income

Investments in Equity Instruments at FVTOCI

	March 31, 2026	December 31, 2025	March 31, 2025
Non-current
Domestic listed common shares
Quanta Computer Inc.	$ -	$ -	$ 35,920
Taiwan Semiconductor
Manufacturing Co., Ltd.	-	-	9,100
	$ -	$ -	$ 45,020

The consolidated company invests in the above-mentioned common shares for medium and long-term strategic purposes, and expects to make profits through long-term investments. The consolidated company's management believes that if the fluctuations of the short-term fair value of these investments are recognized in profit or loss, it will be inconsistent with the aforementioned long-term investment strategy, so it has elected to designate such investments as at fair value through other comprehensive income.

As Eversol Corporation was discontinued on January 2, 2025, the consolidated company therefore derecognized its shares in the company, and transferred the related other equity - unrealized loss of valuation of financial assets measured at fair value through other comprehensive income of NT$170,604 thousand to retained earnings.

XII. Subsidiaries

Subsidiaries included in the consolidated financial statements

The entity responsible for preparing these consolidated statements is as follows:

Name of the investment company	Name of subsidiary	Business nature	Percentage of ownership
			March 31, 2026	December 31, 2025	March 31, 2025
TSEC Corporation	TSEC America, Inc. (Note 1)	Sales of solar related products; main operating risk is exchange rate.	100%	100%	100%
	Houchang Energy Corporation (Hou Chang Energy) (Note 2)	Energy storage system operations; main operating risks are government regulations and natural disasters	100%	100%	100%
	Yansheng Optoelectronics Corporation (Yansheng Optoelectronics)	Sales of solar power generating equipment and provision of energy technology services; main operating risks are government regulations and natural disasters	100%	100%	100%
	Yujing Geothermal Development Co., Ltd. (Yujing Geothermal Co., Ltd.)	Rental of geothermal power generating equipment, sale of self-generated electricity, and provision of energy technology services; main operating risks are government regulations and natural disasters	100%	100%	100%
	Hengli Energy Corporation (Hengli Energy)	Sales of renewable energy and provision of energy technology services; main operating risks are government regulations and natural disasters	100%	100%	100%
	Yuan Jin Energy Co., Ltd. (Yuan Jin Energy)	Sales of solar power generating equipment and provision of energy technology services; main operating risks are government regulations and natural disasters	90%	90%	90%
Hou Chang Energy Corporation	Hengyong Energy Corporation (Hengyong Energy)	Sales of solar power generating equipment and provision of energy technology services; main operating risks are government regulations and natural disasters	100%	100%	100%
	Yongli Energy Corporation (Yongli Energy)	Sales of solar power generating equipment and provision of energy technology services; main operating risks are government regulations and natural disasters	100%	100%	100%
Yuan Jin Energy Co., Ltd.	Jinjing Electric Power Co., Ltd. (Jinjing Electric Power)	Sales of solar power generating equipment and provision of energy technology services; main operating risks are government regulations and natural disasters	100%	100%	100%

Note 1: The Company resolved at the meeting of the Board of Directors on September 11, 2018 to dissolve and liquidate its subsidiary TSEC AMERICA, INC., and as of May 8, 2026, TSEC AMERICA, INC. had not yet carried out the statutory liquidation process.

Note 2: In March 2026, the Company converted claims into capital of its subsidiary - Houchang Energy Corporation in the amount of NT$ 100,000 thousand, with the shareholding ratio remaining unchanged.

For the nature of business, primary business premise, and the information on the registered country of the above subsidiary, please refer to Table 3 in Note XXXVI.

XIII. Investments Accounted for Using the Equity Method

Investments in Associates

	March 31, 2026	December 31, 2025	March 31, 2025
Material associates
Holdgood Energy Development Corporation (Holdgood)	$ 187,815	$ 186,895	$ 228,857
Yuan-Yu Solar Energy Co., Ltd. (Yuan-Yu)	81,508	84,908	131,561
NFC III Renewable Power Co., Ltd. (NFC III)	410,569	412,273	418,986
	$ 679,892	$ 684,076	$ 779,404

Material associates

Name of Associate	March 31, 2026	December 31, 2025	March 31, 2025
Holdgood	45.49%	45.49%	45.49%
Yuan-Yu	20%	20%	20%
NFC III	24%	24%	24%

Please refer to Table 3 in Note XXXVI for the business nature, main business location, and country of registration of the associate above.

The Group measures the above associates using the equity method.

Refer to Note XXXII for the merged company issued the equity of Yuan-Yu to the financial bank as collateral for Yuan-Yu financing.

The carrying amounts of investments accounted for using the equity method and the Group's shares of profit or loss and other comprehensive income thereof were recognized based on the financial reports of each associate for the same period reviewed by the auditors.

XIV. Property, Plant and Equipment

For self-use

	Land	Buildings	Machinery	Office equipment	Other equipment	Construction in progress	Total
Cost
Balance at January 1, 2026	$ 1,071,526	$ 4,802,277	$ 3,124,049	$ 24,603	$ 339,703	$ 46,098	$ 9,408,256
Additions	-	660	-	-	126	254	1,040
Disposal	-	-	( 390,036 )	( 176 )	( 42,891 )	-	( 633,103 )
Reclassification	-	22,182	-	-	-	( 22,182 )	-
Balance at March 31, 2026	1,071,526	4,825,119	2,534,013	24,427	296,938	24,170	8,776,193

(Continued to the next page)

(Continued)

	Land	Buildings	Machinery	Office equipment	Other equipment	Construction in progress	Total
Accumulated depreciation and impairment
Balance at January 1, 2026	$ -	$ 2,481,632	$ 2,478,443	$ 24,579	$ 301,766	$ -	$ 5,286,420
Depreciation expense	-	28,887	47,677	10	5,999	-	82,573
Disposal	-	-	( 581,158 )	( 176 )	( 42,888 )	-	( 624,222 )
Balance at March 31, 2026	-	2,510,519	1,944,962	24,413	264,877	-	4,744,771
Net amount at March 31, 2026	$ 1,071,526	$ 2,314,600	$ 589,051	$ 14	$ 32,061	$ 24,170	$ 4,031,422
Net amount at December 31, 2025 and January 1, 2026	$ 1,071,526	$ 2,320,645	$ 645,606	$ 24	$ 37,937	$ 46,098	$ 4,121,836
Cost
Balance at January 1, 2025	$ 1,071,526	$ 4,693,236	$ 2,962,082	$ 24,738	$ 329,999	$ 109,295	$ 9,190,876
Additions	-	5,684	46,895	-	597	5,547	58,723
Reclassification	-	19,414	-	-	-	( 19,414 )	-
Balance at March 31, 2025	1,071,526	4,718,334	3,008,977	24,738	330,596	95,428	9,249,599
Accumulated depreciation and impairment
Balance at January 1, 2025	-	2,045,712	1,227,248	24,674	231,947	-	3,529,581
Depreciation expense	-	33,511	111,873	10	9,455	-	154,849
Balance at March 31, 2025	-	2,079,223	1,339,121	24,684	241,402	-	3,684,430
Net on March 31, 2025	$ 1,071,526	$ 2,639,111	$ 1,669,856	$ 54	$ 89,194	$ 95,428	$ 5,565,169

No impairment losses were recognized or reversed in 2026 and from January 1, 2025 to March 31, 2025.

Property, plant and equipment are depreciated on a straight-line basis over the following useful lives:

Buildings and structures
Factory buildings and structures	50 years
Building improvement	3-20 years
Machinery	3-20 years
Office equipment	3 years
Other equipment	2 to 15 years

Refer to Note XXXIII for the details on the purchases of machines required for production and the significant commitments stated in the construction contracts.

For the financing collateral of property, plant and equipment as of March 31, 2026, December 31, 2025 and March 31, please refer to Note XXXII.

Refer to Note XXV(XI) for information on capitalised interest of the Group for 2026 and January 1 to March 31, 2025.

XV. Lease Agreement

(I) Right-of-use assets

	March 31, 2026	December 31, 2025	March 31, 2025
Carrying amount
Buildings	$ 10,293	$ 11,820	$ 2,255
Transportation equipment	-	-	302
	$ 10,293	$ 11,820	$ 2,557
	For the three months ended March 31, 2026		For the three months ended March 31, 2025
Additions to right-of-use assets	$ -		$ 1,803
Derecognization of the right-of-use assets	$ -		( $ 3,139 )
Depreciation charge for right-of-use assets
Buildings	$ 1,527		$ 1,757
Transportation equipment	-		130
	$ 1,527		$ 1,887

(II) Lease liabilities

	March 31, 2026	December 31, 2025	March 31, 2025
Carrying amount
Current	$ 5,062	$ 5,365	$ 2,235
Non-current	$ 5,308	$ 6,514	$ 322

Ranges of discount rates for lease liabilities were as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Buildings	2.14%~2.23%	2.14%~2.23%	2.14%~2.81%
Transportation equipment	-	-	3.06%

(III) Material leasing activities and terms

The Group leases several cars and buildings for use as official vehicles, employee dormitories and offices, with lease terms of 1 to 3 years. At the expiry of the lease terms, the Group does not have bargain purchase options.

Some of the lease contracts entered into by the consolidated company for the use of rooftops for solar photovoltaic equipment stipulate that the rent is calculated based on an agreed proportion of the electricity sales revenue generated under the power purchase and sale agreements entered into between the consolidated company and Taipower.

23 -

(IV) Other lease information

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Expenses relating to short-term leases and low-value asset leases	$ 874	$ 1,220
Total cash outflow for leases	($ 2,447)	($ 3,168)

The consolidated company's leases of certain parking spaces and staff dorms qualify as short-term leases, and leases of certain photocopiers qualify as low-value asset leases. The consolidated company has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

XVI. Investment Properties

	Buildings
Cost
Balance at January 1 and March 31, 2026	$ 39,762
Accumulated depreciation
Balance at January 1, 2026	37,144
Depreciation expense	459
Balance at March 31, 2026	37,603
Net amount at March 31, 2026	$ 2,159
Net amount at December 31, 2025 and January 1, 2026	$ 2,618
Cost
Balance at January 1 and March 31, 2025	$ 39,762
Accumulated depreciation
Balance at January 1, 2025	35,309
Depreciation expense	459
Balance at March 31, 2025	35,768
Net on March 31, 2025	$ 3,994

Investment properties are depreciated on a straight-line basis over the following useful lives:

Buildings and structures

Main building of factory 50 years

Building improvement 3-20 years

The investment properties are leased out for 1 year 6 months.

and the lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating leases of investment properties was as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Year 1	$ 1,560	$ 2,160	$ 9,360
Year 2	-	-	780
	$ 1,560	$ 2,160	$ 10,140

The fair value of investment property on December 31, 2024 was NT$ 58,417 thousand, measured using Level 3 inputs by the independent valuation firm Grand Elite Property Appraisal as of each balance sheet date; the valuation adopted the cost approach and comparison approach, and management, after reviewing the report, considered it still valid as of March 31, 2025; the fair value of investment property on December 31, 2025 was NT$ 56,251 thousand, measured using Level 3 inputs by the independent valuation firm Grand Elite Property Appraisal as of each balance sheet date; the valuation adopted the cost approach and comparison approach, and management, after reviewing the report, considered it still valid as of March 31, 2026.

	March 31, 2026	December 31, 2025	March 31, 2025
Fair value	$ 56,251	$ 56,251	$ 58,417

The Group's investment properties had no capitalised interest in 2026 and January 1 to March 31, 2025.

XVII. Other Intangible Assets

	March 31, 2026	December 31, 2025	March 31, 2025
Computer software	$ 5,094	$ 6,413	$ 7,646
	January 1 to March 31, 2026		January 1, 2025 to March 31, 2026
Cost
Balance at January 1	$ 67,716		$ 66,489
Disposal	-		( 80 )
Balance, end of period	67,716		66,409
Accumulated amortization
Balance at January 1	61,303		57,729
Amortization	1,319		1,114
Disposal	-		( 80 )
Balance, end of period	62,622		58,763
Carrying amount, end of period	$ 5,094		$ 7,646

Computer software is amortized on a straight-line basis over 1-5 years.

Summary of amortization by function

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Operating cost	$ 1,142	$ 1,016
Selling and marketing	20	18
General and administrative	142	67
Research and development	15	13
	$ 1,319	$ 1,114

XVIII. Other Assets - current and non-current

	March 31, 2026	December 31, 2025	March 31, 2025
Current
Prepayments for goods	$ 27,422	$ 38,358	$ 34,490
Prepaid expenses	14,887	32,698	15,752
Others	4,988	3,292	5,521
	$ 47,297	$ 74,348	$ 55,763
Non-current
Prepayments for equipment (capitalized interest included)	$ 21,949	$ 14,873	$ 91,727
Refundable deposits	167,714	165,212	174,758
	$ 189,663	$ 180,085	$ 266,485

XIX. Borrowings

(I) Short-term borrowings
	March 31, 2026	December 31, 2025	March 31, 2025
Secured borrowings
Bank guarantee loans	$ 227,932	$ 150,000	$ 110,000
Unsecured borrowings
Credit facility loans	260,000	150,000	3,593
	$ 487,932	$ 300,000	$ 113,593
Interest rate range	2.22%~2.66%	2.22%~2.45%	2.29%~2.34%

For guarantees provided by the consolidated company for short-term borrowings, refer to Note XXXII.

(II) Short-term bills payable

Outstanding short-term bills payable were as follows:

December 31, 2025

Guarantee/acceptance institution	Face amount	Discount amount	Carrying amount	Interest rate range	Name of collateral
Commercial paper
Taiwan Cooperative Bills Finance Corporation	$ 60,000	($ 84)	$ 59,916	2.558%	None
China Bills Finance Corporation	60,000	(84)	59,916	2.558%	None
	$ 120,000	($ 168)	$ 119,832

March 31, 2025

Promissory Institution	Nominal Amount	Discount amount	Carrying amount	Interest rate range	Name of collateral
Commercial paper
Mega Bills Finance Co., Ltd.	$ 20,000	($ 37)	$ 19,963	2.258%	None
Taiwan Cooperative Bills Finance Corporation	30,000	( 34)	29,966	2.278%	None
China Bills Finance Corporation	40,000	( 45)	39,955	2.278%	None
International Bills Finance Corporation	20,000	( 37)	19,963	2.248%	None
	$ 110,000	($ 153)	$ 109,847

(III) Long-term borrowings

	March 31, 2026	December 31, 2025	March 31, 2025
Secured borrowings
Syndicated loans (administration fee for syndicated loans)	$ 671,543	$ 798,735	$ 982,326
Bank mortgage loans	766,827	356,919	479,641
Unsecured borrowings
Bank borrowings	210,213	644,167	737,577
Total	1,648,583	1,799,821	2,199,544
Less: Current portion	( 331,603 )	( 387,150 )	( 464,353 )
Long-term borrowings	$ 1,316,980	$ 1,412,671	$ 1,735,191
Interest rate	1.72%~3.22%	1.72%~3.22%	1.72%~3.03%

Syndicated loans

(1) In December 2024, the Group entered into a syndicated loan agreement with a consortium of syndicated lending banks led by Taiwan Cooperative Bank as the lead bank, with a credit facility of NT$ 2,400,000 thousand (including Facility A of NT$ 500,000 thousand, Facility B of NT$ 1,500,000 thousand and Facility C of NT$ 400,000 thousand), and the borrowing period shall expire on the date 5 years from the first drawdown date. The period from the first drawdown date of Facility A to the date falling 3 months thereafter shall be the 1st period, and thereafter each 3-month period shall constitute 1 period, for a total of 20 periods for repayment of the principal of the credit facility, of which 4% of the principal shall be repaid in each of the 1st to 16th periods, 8% of the principal shall be repaid in each of the 17th and 19th periods, and the remaining principal shall be repaid in the final period; the principal of Facility B shall be repaid in full on the expiration date of the credit period. As of March 31, 2026,

December 31, 2025 and March 31, the balances of Facility A were NT$ 0 thousand, NT$ 0 thousand and NT$ 480,000 thousand, respectively; as of March 31, 2026, the balance of Facility B was NT$ 350,000 thousand.

During the term of the above borrowings, the Group's financial statements are required to meet certain financial ratios. If any agreed financial ratio is not met, the Group shall improve such non-compliance by way of cash capital increase or other means, and shall pay the lending banks a one-time compensation fee at 0.20% of the drawn and outstanding balance, and shall achieve compliance from the date after the financial statements are provided until the Group submits the next H1 or annual financial statements. If the Group achieves compliance within the aforementioned improvement period, it shall not be deemed a breach of such financial covenant. As of March 31, 2026 and December 31, 2025, the Group did not meet certain agreed ratios and plans to complete the waiver review of the financial ratios and amendment to the syndicated loan agreement on the next review date to achieve compliance with the financial covenants.

(2) In March 2023, the consolidated company signed a syndicated loan agreement with a bank syndicate with Mega International Commercial Bank as the lead bank. The credit line is $1,909,600 thousand (including $1,573,600 thousand for the limit of Type A loan and $336,000 thousand for Type B loan), and the loan period is five years from the date the loan is first utilized. The principal of Type A loan should be paid off before the date the credit period expires. As for Type B loans, the 12-month period after the loan is first utilized is considered period 1, and the subsequent period is one month; the principal is divided into 48 installments, with the remaining principal being paid off in the last period. As of March 31, 2026, December 31, 2025 and March 31, the balances of Facility A were NT$ 150,000 thousand, NT$ 600,000 thousand and NT$ 250,000 thousand, respectively; as of March 31, 2026, December 31, 2025 and March 31, the balances of Facility B were NT$ 182,000 thousand, NT$ 203,000 thousand and NT$ 266,000 thousand, respectively.

28 -

During the term of the above borrowings, the Group's financial statements are required to meet certain financial ratios. If any agreed financial ratio is not met, the Group shall improve such non-compliance by way of cash capital increase or other means to achieve compliance. If the Group achieves compliance within the aforementioned improvement period, it shall not be deemed a breach of such financial covenant. As of March 31, 2026 and December 31, 2025, the Group did not meet certain agreed ratios and plans to improve during the improvement period. If such non-compliance is not remedied by the deadline, the future interest rate will be increased by 0.15%.

The bank's unsecured and secured loan contract period is 5 to 7 years, and the principal and interest are paid monthly.

For guarantees provided by the consolidated company for long-term borrowings, refer to Note XXXII.

XX. Notes payable and accounts payable

	March 31, 2026	December 31, 2025	March 31, 2025
Notes payable - operating	$ -	$ 4	$ 14
Accounts payable - operating	$ 112,766	$ 103,216	$ 216,044

The average credit period for purchases was 30 to 90 days. The Group has established financial risk management policies to ensure that all payables are repaid within the pre-agreed credit periods.

XXI. Other Liabilities

	March 31, 2026	December 31, 2025	March 31, 2025
Current
Other payables
Payables for salaries or bonuses	$ 49,483	$ 75,980	$ 75,005
Payables for transportation and customs clearance	33,914	55,740	39,038
Payables for interests	30,358	26,991	16,998
Payables for labor and health insurance	8,365	9,217	13,003
Environmental protection fees payable	2,010	1,756	3,342
Payables for equipment	826	15,363	5,916
Business tax payable	58	6,654	2,100
Others	28,459	28,713	45,980
	$ 153,473	$ 220,414	$ 201,382

(Continued)

	March 31, 2026	December 31, 2025	March 31, 2025
Other liabilities
Deferred revenue-government grants	$ 12,900	$ 12,900	$ 14,000
Others	5,951	6,114	9,018
	$ 18,851	$ 19,014	$ 23,018
Non-current
Other liabilities
Guarantee deposits received	$ 18,807	$ 18,807	$ 1,080

XXII. Post-Employment Benefit Plans

The consolidated company adopted a pension plan under the Labor Pension Act, which is a state-managed defined contribution plan. Under the Labor Pension Act, an entity makes monthly contributions to employees' individual pension accounts at $6\%$ of monthly salaries and wages.

Pension expenses for these defined contribution plans are classified under the following accounts:

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Operating cost	$ 4,286	$ 6,819
Operating expenses	1,252	1,357
	$ 5,538	$ 8,176

XXIII. Preferred Stock Liabilities

The Group approved, at the shareholders' meeting on April 7, 2021, a private placement cash capital increase through the issuance of 75,000 thousand Class A preferred shares, with a par value of NT$ 10 per share. On November 18, 2021, the Board of Directors approved the issuance of 25,895 thousand shares at a price of NT$ 23.75 per share. The share proceeds of NT$ 615,000 thousand had been fully collected on December 2, 2021, and the registration of change was completed. In accordance with the issuance terms of such preferred shares, the preferred shares were separated into preferred share liabilities of NT$ 287,949 thousand and conversion rights of NT$ 327,051 thousand. The rights and obligations of this private placement of preferred shares are as follows:

(1) The distribution of earnings of the Group shall be handled in accordance with the Articles of Incorporation. Distributable earnings shall first be distributed to the current annual or quarterly and cumulative undistributed dividends of Class A preferred shares. If there are no earnings or the earnings are insufficient to fully distribute the dividends of Class A preferred shares, the distributable earnings shall still be distributed to Class A preferred shares in priority, and any insufficient dividends shall be preferentially made up in subsequent years or quarters when there are earnings.

(2) The annual dividend rate of Class A preferred shares is 2%, calculated based on the issue price per share and paid in cash. The ex-dividend base date for preferred share dividends is authorized to be separately determined by the Board of Directors. The amount of dividends distributed for the issuance year or quarter and the redemption year or quarter shall be calculated based on the actual number of days issued.

(3) If the expected dividend distribution amount of common shares exceeds the dividend amount of class A preferred shares in the current year, the shareholders of class A preferred shares can participate in the distribution.

(4) Except for the aforementioned dividend, the shareholders of class A preferred shares can participate in the appropriation of earnings and reserves to shareholders of common shares of preference shares.

(5) Class B preferred shares were promised to be transferred to common shares on the day following the third anniversary of the issue.

(6) Class A preferred stock is non-voting, except during the preferred shareholders' meetings and on matters regarding the shareholders' rights and obligations.

(7) When it comes to appropriate over common shares residual assets of the Company, class A preferred shares have priority preferred shares. However, the amount was limited to the issuance price plus the total amount of unpaid dividends.

(8) The issuance period of class A preferred shares was no period, the shareholders of class A preferred shares did not have the right to demand the Company call back class A preferred shares. However, after years of the issuance date, the Company can call back all or some of class A preferred shares at the actual issuance price in cash or other ways permitted by regulations. The rights and obligations of class A preferred shares that have not been called will continue until the Company calls back. In the current year of calling back the class A preferred shares, if the Company's shareholders resolve to appropriate dividends, the amounts of dividends, which have to be the number of actual distribute d as of the date of call back, will be calculated according to issuance days in the current year.

(9) The preemptive rights for stockholders of class A preferred stocks are the same as those of common stocks when the Company increases its capital by issuing shares.

(10) When class A preferred shares meet the condition of call back or mature in the issuance period, if the Company cannot call back all or some class A preferred shares due to force majeure or inscrutable fault of the Company, the rights of class A preferred shares which have not been called back will continue according to aforementioned issuance conditions until the Company calls back all the class A preferred shares. The dividends will be calculated according to the original annual rate and actual extension period, and the rights of class A preferred shares shall not be diminished according to the Company's articles of incorporation.

31 -

The Group resolved at the Board of Directors meeting on March 7, 2022 that the remaining 49,105 thousand unissued preferred shares would not continue to be issued within the remaining issuance period.

The Group resolved at the Board of Directors meeting on November 7, 2025 to redeem the privately placed Class A preferred shares issued on December 2, 2021 at the original issue price in the amount of NT$ 615,000 thousand, and authorized the Chairman to complete the redemption procedures in one or multiple times according to the Company's actual operational needs, and to set the capital reduction record date to process the cancellation and refund of share payments.

XXIV. Equity

(I) Share capital - ordinary shares

	March 31, 2026	December 31, 2025	March 31, 2025
Shares authorized (in thousands of shares)	700,000	700,000	700,000
Shares authorized	$ 7,000,000	$ 7,000,000	$ 7,000,000
Shares issued and fully paid (in thousands of shares)	512,797	512,797	512,797
Shares issued and fully paid	$ 5,127,967	$ 5,127,967	$ 5,127,967

The par value of the issued ordinary shares is NT$10. Each share entitles its holder to the right to vote and to receive dividends. And released convertible preferred stock (Preferred A) through private placement 25,895 thousand shares, please refer to Note XXIII.

The Company's total capital retains NT$50,000 thousand in a total of 5,000 thousand shares, with a par value of NT$10 per share, for the issue of employee stock options, which may be issued in tranches in accordance with the resolution of the Board of Directors.

(II) Capital reserve

	March 31, 2026	December 31, 2025	March 31, 2025
May be used to offset losses, distribute cash, or capitalize share capital
Share premium
Ordinary share premium	$ 1,361,293	$ 1,361,293	$ 1,624,201
Expired employee share options	14,372	14,372	14,372
May be used to offset a deficit only
Changes in the percentage of ownership interest in invested company accounted for using the equity method	11	11	11
Gain from exercising call rights	6	6	6
May not be used for any purpose
Preferred stock conversion rights (Note XXIII)	327,051	327,051	327,051
	$ 1,702,733	$ 1,702,733	$ 1,965,641

The capital reserve from shares issued in excess of par and donations could be used to offset deficits; in addition, when the Company has no deficit, such capital reserve may be distributed as cash dividends or transferred to capital (limited to a certain percentage of the Company's paid-in capital and once a year).

(III) Retained earnings and dividend policy

According to the earnings distribution policy under the Company's Articles of Incorporation, if there is profit in the annual final accounts, after paying taxes in accordance with the law and making up accumulated losses, 10% shall be appropriated as legal reserve, and the remainder shall then be appropriated to or reversed from special reserve in accordance with laws and regulations. If there is still a balance, together with accumulated undistributed earnings from previous years, it shall be used as earnings available for distribution, and the Board of Directors shall prepare an earnings distribution proposal to be submitted to the Annual General Meeting for resolution. The policies on the distribution of employees' compensation and remuneration of directors after the amendment refer to employees' compensation and remuneration of directors in Note XXV (IX).

In addition, in accordance with the dividend policy as stated in the Company's Articles, dividends shall be distributed in an appropriate manner based on the Company's future capital budget and funding needs. Dividends shall be distributed in the form of cash or shares, with the percentage of cash dividends not less than 10% of the total dividends distributed.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The Company held the Annual General Meeting on May 23, 2025, and Approved the 2024 earnings distribution proposal as follows:

	2024
Legal reserve used to offset losses	$ 76,100
Deficit compensated through capital reserve	$ 262,908
Reversal of special reserve	( $ 390 )

The Board of Directors of the Company proposed the following 2025 earnings/loss appropriation on March 4, 2026:

	2025
Deficit compensated through capital reserve	$ 1,375,682
Reversal of special reserve	( $ 170,510 )

The 2025 earnings/loss appropriation proposal is still subject to resolution at the Annual General Meeting expected to be convened in May 2026.

33 -

(IV) Other equity items

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

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Balance at January 1	($ 100)	$ 206
Incurred in the current period
Exchange differences on foreign operations	149	111
Income tax relating to items that may be reclassified subsequently to profit or loss	( 10)	( 22)
Ending balance	$ 39	$ 295

Unrealized gain on financial assets at FVTOCI

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Balance at January 1	$ 2,374	($ 170,716)
Incurred in the current period
Unrealized gains or losses
Equity instruments	-	( 4,811 )
Share of profit or loss of associates accounted for using the equity method	2,908	( 4 )
Gain or loss on disposal of equity instrument is transferred to retained earnings.	-	170,604
Closing balance	$ 5,282	($ 4,927 )

(V) Non-controlling interests

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Balance at January 1	$ 2,869	$ 2,881
Attributable to non-controlling interests
Net loss for the period	( 4 )	( 3 )
Closing balance	$ 2,865	$ 2,878

XXV. Net loss

(I) Operating revenue

Contract balance

	March 31, 2026	December 31, 2025	March 31, 2025	January 1, 2025
Notes receivable (Note IX)	$ 250,834	$ 243,753	$ 725,871	$ 507,276
Accounts receivable (Note IX)	$ 133,272	$ 205,561	$ 376,768	$ 785,407
Accounts receivable from related parties (Notes IX and XXXI)	$ -	$ 39	$ 4	$ 8
Contract liabilities
Sale of goods	$ 28,095	$ 62,324	$ 32,369	$ 47,582

Refer to Note IX for the explanation of accounts receivable generated from contracts.

The changes in the balance of contract liabilities primarily resulted from the timing difference between the Group's satisfaction of performance obligations and the respective customer's payment.

Details of revenue from contracts with customers

Please refer to Note XXXVII(I) for further information about the details of revenue.

Partially completed contracts

The timing of revenue recognition for performance obligations that have not been completely.

	March 31, 2026	December 31, 2025	March 31, 2025
Sale of goods
- Obligations satisfied in 2025	$ -	$ -	$ 32,369
- Performance in 2026	28,095	62,324	-
	$ 28,095	$ 62,324	$ 32,369

(II) Other incomes and expenses, net

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Net loss on disposal of property, plant and equipment	($ 480)	$ -
Others	-	( 941 )
Total	($ 480)	($ 941 )

(III) Interest income

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Cash in banks	$ 633	$ 1,011
Financial assets at amortized cost	104	998
Others	15	7
Total	$ 752	$ 2,016
(IV) Other revenue
	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Lease revenue	$ 2,450	$ 1,962
Others	464	785
	$ 2,914	$ 2,747
(V) Other gains and losses
	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Gains (losses) on financial assets and financial liabilities
Financial assets mandatorily classified as at fair value through profit or loss	$ 43	$ 2
Foreign currency exchange gains, net	114	636
Others	-	21
	$ 157	$ 659
(VI) Depreciation and amortization expenses
	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Property, plant and equipment	$ 82,573	$ 154,849
Right-of-use assets	1,527	1,887
Investment properties	459	459
Intangible assets	1,319	1,114
Total	$ 85,878	$ 158,309
An analysis of depreciation by function
Operating cost	$ 81,036	$ 151,784
Operating expenses	3,523	5,411
	$ 84,559	$ 157,195

(Continued to the next page)

(Continued)

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Amortization expense by function
Operating cost	$ 1,142	$ 1,016
Operating expenses	177	98
	$ 1,319	$ 1,114
(VII) Operating expenses directly related to investment properties
	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Generating rental income of investment properties
Depreciation expense	$ 459	$ 459
Tax	158	160
	$ 617	$ 619
(VIII) Employee benefit expenses
	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Post-employment benefits
Defined contribution plans (Note 22)	$ 5,538	$ 8,176
Salary expenses	126,045	200,604
Labor and health insurance expenses	12,898	21,090
Other employee benefits	10,618	19,860
Total employee benefit expenses	$ 155,099	$ 249,730
An analysis of employee benefit expense by function
Operating cost	$ 120,280	$ 208,678
Operating expenses	34,819	41,052
	$ 155,099	$ 249,730

(IX) Compensation of employees and remuneration of directors

The Company accrued compensation of employees and remuneration of directors at rates of no less than $5\%$ and no higher than $5\%$ , respectively, of net profit before income tax, compensation of employees, and remuneration of directors, after offsetting accumulated deficits, if any. The Company had a net loss before tax in 2026 and for the three months ended March 31, 2025; therefore, no employees' compensation and directors' remuneration were accrued. According to the amendment to the Securities and Exchange Act in August 2024, the Company amended the Articles of Incorporation as approved at the 2025 AGM, stipulating that where the Company has annual profits, no less than $1\%$ of the current year's profits shall be appropriated for salary adjustments or remuneration for grassroots employees; provided that where there are accumulated losses, an amount shall be reserved in advance for offsetting such losses.

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

Both 2025 and 2024 had net losses before tax; therefore, no employees' compensation and directors' remuneration were accrued.

For information on employees' compensation and directors' remuneration as resolved by the Board of Directors of the Company, please refer to the Market Observation Post System of the Taiwan Stock Exchange.

(X) Foreign currency exchange gain or loss

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Foreign currency exchange gains	$ 2,030	$ 2,712
Foreign currency exchange losses	( 1,916 )	( 2,076 )
Net foreign exchange gains	$ 114	$ 636

(XI) Finance costs

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Interest expense	$ 14,784	$ 13,067
Interest on preferred stocks	3,075	3,075
Finance costs	1,366	887
Interest on lease liabilities	64	26
Others	58	27
Less: Capitalized interest	( 267 )	( 1,090 )
	$ 19,080	$ 15,992

Information about capitalized interest is as follows:

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Capitalized interest	$ 267	$ 1,090
Capitalization rate	2.82%	2.13%

XXVI. Income Tax

(I) Income tax recognized in profit or loss

The main components of income tax benefits expenses are as follows:

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Current tax
In respect of the current period	$ -	$ -
Deferred income tax
In respect of the current period	2,066	3,936
Income tax benefit recognized in profit or loss	$ 2,066	$ 3,936

(II) Income tax recognized in other comprehensive income

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Deferred income tax
Incurred in the current period
- Translation of foreign operations	$ 10	$ 22

(III) Income tax assessments

The Company's filed tax return cases up to and including 2024 have been assessed by the tax collection authorities, and there was no material difference between the assessed amounts and the filed amounts.

The income tax returns of Yunsheng Optoelectronics Corporation and Yu Jing Geothermal Development Co., Ltd., Houchang Energy Corporation, Hengyong Energy Corporation, Hengli Energy Corporation, Yongli Energy Corporation and Yuan Jin Energy Co., Ltd. and through 2024, have been assessed by the tax authorities, and there is no significant difference between the number of cases assessed and declared.

XXVII. Loss per share

The net loss and weighted average number of ordinary shares used in the calculation of loss per share are as follows:

Net loss for the period

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Net loss used to calculate basic and diluted loss per share
Net loss attributable to owners of the Company	($ 100,631)	($ 118,175)

39 -

Unit: thousand shares

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Weighted average number of ordinary shares used to calculate basic loss per share	512,797	512,797

The Company incurred a net loss in 2026 and for the period from January 1, 2025 to March 31, 2025 and, due to the anti-dilutive effect, diluted loss per share was not calculated.

XXVIII. Cash Flow Information

(I) Non-cash transactions

The Group engaged in the following investing activities involving partial cash transactions in 2026 and for the period from January 1, 2025 to March 31, 2025:

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Acquisition of property, plant and equipment	$ 1,040	$ 58,723
Net increase in prepayments for equipment	7,076	( 43,912 )
Net increase in payables for purchase of equipment	14,537	47,906
Effect of foreign currency exchange differences	-	26
Cash paid	$ 22,653	$ 62,743

(II) Changes in liabilities arising from financing activities

For the three months ended March 31, 2026

	January 1,2026	Cash flows	Non-cash changes		Others	March 31,2026
			Additions to leases	Amortization of interest expense
Short-term borrowings	$ 300,000	$ 187,932	$ -	$ -	$ -	$ 487,932
Short-term bills payable	119,832	( 119,832 )	-	-	-	-
Long-term borrowings(including those due within one year)	1,799,821	( 151,238 )	-	-	-	1,648,583
Guarantee deposits received	18,807	-	-	-	-	18,807
Lease liabilities	11,879	( 1,509 )	-	64	( 64 )	10,370
Preferred stock liabilities	287,949	-	-	-	-	287,949
	$2,538,288	($ 84,647 )	$ -	$ 64	($ 64 )	$2,453,641

For the three months ended March 31, 2025

	January 1,2025	Cash flows	Non-cash changes		Others	March 31,2025
			Additions to leases	Amortization of interest expense
Short-term borrowings	$ 150,204	($ 36,611 )	$ -	$ -	$ -	$ 113,593
Short-term bills payable	129,842	( 19,995 )	-	606	( 606 )	109,847
Long-term borrowings(including those due within one year)	2,298,798	( 99,254 )	-	-	-	2,199,544
Guarantee deposits received	1,080	-	-	-	-	1,080
Lease liabilities	5,841	( 1,922 )	1,803	26	( 3,191 )	2,557
Preferred stock liabilities	287,949	-	-	-	-	287,949
	$2,873,714	($ 157,782 )	$ 1,803	$ 632	($ 3,797 )	$2,714,570

XXIX. Capital Risk Management

The Group manages its capital to ensure that each entity in the Group will be able to continue as a going concern while maximizing shareholders' returns through optimizing the balance of debt and equity.

The Group's key management personnel review the capital structure of the Group from time to time in light of the economic environment and business considerations. Based on the assessments and recommendations of key management personnel and in compliance with legal requirements, the Group will balance its overall capital structure through cash capital increases, issuance of new shares and financing, among other means.

XXX. Financial Instruments

(I) Fair value of financial instruments that are not measured at fair value

The management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values (or their fair values cannot be reliably measured).

(II) Fair value of financial instruments that are measured at fair value on a recurring basis

Fair value hierarchy

March 31, 2026

	Level 1	Level 2	Level 3	Total
Financial assets classified as at fair value through profit or loss
Derivatives	$ -	$ 43	$ -	$ 43

March 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets classified as at fair value through profit or loss
Derivatives	$ -	$ 2	$ -	$ 2
Financial assets at fair value through other comprehensive income
Investment in equity instruments
- Domestic listed, OTC and emerging stocks	$ 45,020	$ -	$ -	$ 45,020

There were no transfers between Level 1 and Level 2 fair value measurements in 2026 and for the period from January 1, 2025 to March 31, 2025.

41 -

Valuation techniques and inputs applied for Level 2 fair value measurement

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

(III) Categories of financial instruments

	March 31, 2026	December 31, 2025	March 31, 2025
Financial assets
Financial liabilities at FVTPL
Financial assets
mandatorily measured as at FVTPL	$ 43	$ -	$ 2
Financial assets at amortized cost (Note 1)	1,070,427	1,330,139	2,038,623
Financial assets at fair value through other comprehensive income
Investment in equity instruments	-	-	45,020
Financial liabilities
At amortized cost (Note 2)	2,639,707	2,754,346	3,034,050

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable, accounts receivable from related parties, other accounts receivable, other accounts receivable - related parties and refundable deposits (recognized as other non-current assets).

Note 2: The balance includes financial liabilities measured at amortized cost, such as short-term borrowings, short-term notes payable, notes payable, accounts payable, accounts payable - related parties, other payables (excluding salaries and bonuses payable, labor and health insurance, pensions, and business tax), other payables - related parties, long-term borrowings (including those due within one year), preferred stock liabilities and guarantee deposits received.

(IV) Financial risk management objectives and policies

The Group's major financial instruments include cash and cash equivalents, receivables, payables, short-term borrowings, short-term notes payable, long-term borrowings and lease liabilities. The Group's financial management department coordinates access to domestic and international financial markets, and analyzes and manages the financial risks relating to the operations of the Group in accordance with the degree and breadth of risk. These risks include market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk.

The Group uses derivative financial instruments to hedge exposures in order to mitigate the impact of such risks. The use of derivative financial instruments is governed by the policies approved by the Board of Directors. Internal auditors continually review compliance with the policies and exposure limits. The Group does not enter into transactions in financial instruments (including derivative financial instruments) for speculative purposes.

Market risk

The main market risk faced by the consolidated company is the risk of changes in foreign currency exchange rates (see (1) below) and the risk of changes in interest rates (see (2) below).

There had been no change to the consolidated company's exposure to market risks or the manner in which these risks were managed and measured.

(1) Foreign currency risk

For the carrying amounts of monetary assets and monetary liabilities denominated in the non-functional currency at the balance sheet date (including monetary items denominated in non-functional currencies in the consolidated financial statements), refer to Note XXXV.

Sensitivity analysis

The consolidated company is mainly exposed to the U.S. dollar.

The following table shows the Group's sensitivity analysis when the functional currency increases and decreases by 5% against each relevant foreign currency. 5% is the sensitivity rate used for reporting exchange rate risk to key management within the Group, and represents management's assessment of the reasonably possible range of changes in foreign currency exchange rates. The positive amounts in the following table indicate the amount of change in net loss before tax when the functional currency appreciates by 5% against each relevant currency; when the functional currency depreciates by 5% against each relevant foreign currency, the impact on net loss before tax would be a negative amount of the same amount.

	Impact of USD
	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Gain (loss)	($ 1,437)	($ 5,580)

This was mainly attributable to the exposure on outstanding bank deposits, financial assets at amortized cost, and payables denominated in U.S. dollars, which were not hedged at the end of the reporting period.

The consolidated company's sensitivity to the USD exchange rate decreased during the current period, mainly due to a reduction in net assets denominated in USD.

(2) Interest rate risk

The carrying amounts of the consolidated company's financial assets and financial liabilities with exposure to interest rate risk at the end of the reporting period were as follows:

	March 31, 2026	December 31, 2025	March 31, 2025
Fair value interest rate risk
- Financial liabilities	$ 298,319	$ 419,660	$ 400,353
Cash flow interest rate risk
- Financial assets	515,998	713,097	756,082
- Financial liabilities	2,136,515	2,099,821	2,313,137

Sensitivity analysis

The sensitivity analysis below was determined based on the Group's exposure to interest rates for non-derivative instruments at the end of the reporting period. A 25 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates increase/decrease by 25 basis points, with all other variables held constant, the Group's net loss before tax for 2026 and January 1 to March 31, 2025 would increase/decrease by NT$ 1,013 thousand and increase/decrease by NT$ 973 thousand, respectively, mainly due to the Group's exposure to interest rate risk on long-term borrowings.

The Group's interest rate sensitivity didn't have a material change during the period.

(3) Other price risk

The Group is exposed to the equity price risk due to its investment in equity securities. The Group's management manages the risk by holding different portfolios with different risks.

Sensitivity analysis

The following sensitivity analysis is based on the exposure to the equity price risk on the balance sheet date.

44 -

If equity prices increase/decrease by 5%, pre-tax other comprehensive income for January 1 to March 31, 2025 would increase/decrease by NT$ 2,251 thousand due to the increase/decrease in the fair value of financial assets at fair value through other comprehensive income.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the consolidated company. As of the end of the reporting period, the consolidated company's maximum exposure to credit risk, which will cause a financial loss to the consolidated company due to the failure of the counterparty to discharge its obligation, is primarily equal to the carrying amount of the respective recognized financial assets as stated in the balance sheets.

The consolidated company uses available financial information and mutual transaction records to rate major customers. The consolidated company continues to monitor the credit risk exposures and the credit ratings of their counterparties.

The Group's credit risk is mainly concentrated in the Group's top 10 customers by operating revenue. As of March 31, 2026, December 31, 2025 and March 31, the ratios of total accounts receivable from major customers were 57.17%, 93.46% and 73.57%, respectively.

Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support the operations of the Group and mitigate the impact of fluctuations in cash flows with long-term borrowings. The Group's management monitors the use of the bank financing facilities and ensured compliance with the terms of the borrowing terms.

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

The following tables detail the consolidated company's remaining contractual maturities for its borrowings with agreed-upon repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the consolidated company can be required to pay.

March 31, 2026

	On demand or less than 1 month	1 to 3 months	3 months to 1 year	Over 1 year
Non-derivative financial liabilities
Variable interest rate liabilities	$ 128,392	$ 186,944	$ 533,234	$ 1,362,491
Fixed interest rate liabilities	-	-	-	287,949
Non-interest bearing liabilities	78,211	106,504	30,050	478
Lease liabilities	515	1,030	3,723	5,377
	$ 207,118	$ 294,478	$ 567,007	$ 1,656,295

Additional information about the maturity analysis for lease liabilities:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years
Lease liabilities	$ 5,268	$ 5,377	$ -	$ -	$ -

December 31, 2025

	On demand or less than 1 month	1 to 3 months	3 months to 1 year	Over 1 year
Non-derivative financial liabilities
Variable interest rate liabilities	$ 85,918	$ 170,820	$ 474,998	$ 1,472,077
Fixed interest rate liabilities	119,832	-	-	287,949
Non-interest bearing liabilities	142,017	78,017	26,710	-
Lease liabilities	515	1,030	4,028	6,618
	$ 348,282	$ 249,867	$ 505,736	$ 1,766,644

Additional information about the maturity analysis for lease liabilities:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years
Lease liabilities	$ 5,573	$ 6,618	$ -	$ -	$ -

March 31, 2025

	On Demand or Less than 1 Month	1 to 3 months	3 months to 1 year	Over 1 year
Non-derivative financial liabilities
Variable interest rate liabilities	$ 31,343	$ 207,070	$ 389,345	$ 1,863,952
Fixed interest rate liabilities	109,847	-	-	287,949
Non-interest bearing liabilities	141,634	159,187	22,296	-
Lease liabilities	543	399	1,322	323
	$ 283,367	$ 366,656	$ 412,963	$ 2,152,224

Additional information about the maturity analysis for lease liabilities:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years
Lease liabilities	$ 2,264	$ 323	$ -	$ -	$ -

(2) Liquidity risk table for derivative financial instruments

For the liquidity analysis of derivative financial instruments, derivative instruments settled on a net basis are prepared based on undiscounted contractual net cash inflows and outflows; derivative instruments settled on a gross basis are prepared based on undiscounted gross cash inflows and outflows.

March 31, 2026

	On demand or less than 1 month	1 to 3 months	3 months to 1 year	Over 1 year
Gross settled
Foreign exchange forward contracts
- Inflow	$ 9,423	$ -	$ -	$ -
- Outflow	( 9,380 )	-	-	-
	$ 43	$ -	$ -	$ -

March 31, 2025

	On Demand or Less than 1 Month	1 to 3 months	3 months to 1 year	Over 1 year
Gross settled
Foreign exchange forward contracts
- Inflow	$ 822	$ -	$ -	$ -
- Outflow	( 820 )	-	-	-
	$ 2	$ -	$ -	$ -

(3) Financing facilities

	March 31, 2026	December 31, 2025	March 31, 2025
Unsecured bank overdraft facilities
- Amount used	$ 516,761	$ 1,306,232	$ 699,172
- Amount unused	1,006,004	1,868,265	1,883,785
	$ 1,522,765	$ 3,174,497	$ 2,582,957
Secured bank overdraft facilities:
- Amount used	$ 3,298,588	$ 2,378,617	$ 2,279,584
- Amount unused	3,101,919	2,917,717	3,758,984
	$ 6,400,507	$ 5,296,334	$ 6,038,568

XXXI. Related-party Transactions

Except as disclosed in other notes, the transactions between the Group and its related parties are as follows, and the transaction terms and prices are negotiated additionally:

(I) Related parties and relationship

Related Party	Relationship with the consolidated company
Holdgood	Associate
Yuan-Yu	Associate
KWE CORPORATION (KWE)	Substantive related party

(II) Operating revenue

Line Item	Related Party Category/Name	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Sales	Associate
	Holdgood	$ -	$ 41

The prices and collection period of sales transactions are based on the contract, which are similar to those of other companies in general.

(III) Rent revenue

Line Item	Related Party Category/Name	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Rent revenue	Associate
	Holdgood	$ 104	$ 96

The rent is determined according to the bargaining method, and the rent is charged on a monthly basis.

(IV) Other revenue

Line Item	Related Party Category/Name	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Other revenue	Associate
	Holdgood	$ 387	$ 696

Other revenue refers to amounts charged to associates and power plant maintenance cleaning costs, transaction contents are made based on the price and collection period stated in the contract.

(V) Contract liabilities

Line item	Related party category/name	March 31, 2026	December 31, 2025	March 31, 2025
Contract liabilities	Associate
	Holdgood	$ 1,292	$ -	$ -

(VI) Accounts receivable from related parties

Recognition Item	Related Party Category/Name	March 31, 2026	December 31, 2025	March 31, 2025
Accounts receivable from related parties	Associate
	Holdgood	$ -	$ 39	$ 4

Outstanding accounts receivable-the related party without guarantee deposits received. As of December 31, 2025 and March 31, 2026, accounts receivable - related parties were not past due, and no allowance for losses was required after assessment.

(VII) Other receivables from related parties

Recognition Item	Related Party Category/Name	March 31, 2026	December 31, 2025	March 31, 2025
Other receivables from related parties	Associate
	Holdgood	$ 422	$ 55	$ 421

Receivables for power plant maintenance fees and rent.

(VIII) Accounts payable - related parties

Line item	Related party category/name	March 31, 2026	December 31, 2025	March 31, 2025
Accounts payable - related parties	Associate
	Holdgood	$ 26	$ -	$ -

The outstanding balances of amounts payable to related parties were unsecured.

(IX) Other payables - related parties

Line item	Related party category/name	March 31, 2026	December 31, 2025	March 31, 2025
Other payables from related parties	Associate
	Holdgood	$ -	$ 102	$ -

These are payments for electricity purchase transactions.

(X) Endorsements/guarantees

Endorsements and guarantees provided by the groups.

Related Party Category/Name	March 31, 2026	December 31, 2025	March 31, 2025
Associate
Yuan-Yu	$ 120,000	$ 120,000	$ 120,000

As of March 31, 2026, December 31, 2025 and March 31, the amounts of collateral provided by the Company for the above endorsements/guarantees were NT$ 81,508 thousand, NT$ 84,908 thousand and NT$ 131,561 thousand, respectively.

(XI) Prepayment for equipment

Recognition Item	Related Party Category/Name	March 31, 2026	December 31, 2025	March 31, 2025
Prepayment for equipment purchase	Substantive related party
	KWE	$ 14,327	$ 14,327	$ 14,327

The amount represented an advance payment made by Jinjing Electric Power Co., Ltd. for the acquisition of solar photovoltaic power generation system equipment and related engineering services in accordance with the contract. The contract price for the project was determined after reference to equipment and material costs, project construction costs, market prices of similar projects and a reasonable profit margin, and was approved by the Board of Directors of Jinjing Electric Power Co., Ltd.

(XII) Remuneration to key management

	For the three months ended March 31, 2026	For the three months ended March 31, 2025
Short-term employee benefits	$ 7,130	$ 10,018
Post-employment benefits	135	162
	$ 7,265	$ 10,180

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

XXXII. Pledged Assets

The following assets have been pledged as collateral for import duties, bank borrowings, borrowings for purchases of materials, contracting of power plant business and other credit facilities:

	March 31, 2026	December 31, 2025	March 31, 2025
Land	$ 1,071,526	$ 1,071,526	$ 1,071,526
Buildings	1,670,758	1,689,024	1,743,824
Machinery	79,909	53,099	591,925
Other equipment	353	435	680
Investments accounted for using equity method	81,508	84,908	131,561
Financial assets at amortized cost	104,590	90,853	119,002
	$ 3,008,644	$ 2,989,845	$ 3,658,518

XXXIII. Significant Contingent Liabilities and Unrecognized Commitments

As of March 31, 2026, December 31, 2025 and March 31, the significant commitments of the Group as of the balance sheet dates were as follows:

(I) Commitments for construction contracts

	March 31, 2026	December 31, 2025	March 31, 2025
Purchased	$ 3,465	$ 3,465	$ 44,152
To be purchased in the future	31,407	29,630	37,816
Total Notional Amount	$ 34,872	$ 33,095	$ 81,968

(II) Commitments for material purchasing contracts

	March 31, 2026	December 31, 2025	March 31, 2025
Purchased	$ 52,418	$ 64,242	$ 262,675
To be purchased in the future	218,522	170,949	273,598
Total Notional Amount	$ 270,940	$ 235,191	$ 536,273

(III) Commitments for equipment purchasing contracts

	March 31, 2026	December 31, 2025	March 31, 2025
Purchased	$ 192	$ 66	$ 86,941
To be purchased in the future	18	144	14,129
Total Notional Amount	$ 210	$ 210	$ 101,070

XXXIV. Significant subsequent events:

The Board of Directors of the Company approved on May 8, 2026 the leasing of land by subsidiaries Hou Chang and Yujing Geothermal from related parties for geothermal development-related purposes, and the relevant lease terms and conditions shall be handled in accordance with the lease agreements.

XXXV. Foreign Currency Assets and Liabilities with Significantly Impact

The consolidated company's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies (including monetary items that have been written off in a non-functional currency in the consolidated financial statements). Foreign currency assets and liabilities with significant impact:

Unit: Foreign currency in NT$ thousand/NT$

March 31, 2026

	Foreign currency	Exchange rate	Carrying amount
Financial assets
Monetary items
USD	$ 2,057	31.995 (USD:NTD)	$ 65,814
Non-monetary items
USD	263	31.995 (USD:NTD)	8,407
Financial liabilities
Monetary items
USD	1,159	31.995 (USD:NTD)	37,082
December 31, 2025
	Foreign currency	Exchange rate	Carrying amount
Financial assets
Monetary items
USD	$ 1,733	31.43 (USD:NTD)	$ 54,468
Non-monetary items
USD	262	31.43 (USD:NTD)	8,259

(Continued to the next page)

(Continued)

	Foreign currency	Exchange rate	Carrying amount
Foreign currency liabilities
Monetary items
USD	$ 779	31.43 (USD:NTD)	$ 24,483
March 31, 2025
	Foreign currency	Exchange rate	Carrying amount
Financial assets
Monetary items
USD	$ 5,676	33.205 (USD:NTD)	$ 188,472
Non-monetary items
USD	263	33.205 (USD:NTD)	8,742
Financial liabilities
Monetary items
USD	2,315	33.205 (USD:NTD)	76,870

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

	For the three months ended March 31, 2026		For the three months ended March 31, 2025
Foreign currency	Exchange rate	Unrealized net foreign exchange (loss) gain	Exchange rate	Unrealized net foreign exchange (loss) gain
USD	31.631 (USD:NTD)	( $ 226 )	32.895 (USD:NTD)	( $ 351 )

XXVI. Additional Disclosures

(I) Information about significant transactions:

Financing provided to others: (Table 1).
Endorsements/guarantees provided: (Table 2).
Major securities held at the end of the period (excluding investments in subsidiaries and associates): (None).
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: (None).
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: (None).

Others: Business relationships and significant transaction details and amounts between the parent and subsidiaries, and among the subsidiaries. (None)

(II) Information on investees: Table 3.
(III) Information on investments in mainland China: (None).

XXXVII. Segment Information

Financial Information for Operating Segments

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the type of products delivered or services provided. The reportable segments of the consolidated company are the solar module segment and other segments.

Solar module segment: Provides manufacturing and after-sales services of solar module products.

(I) Segment revenue and results

	Module segment	Other segment	Inter-segment revenue and profit or loss eliminated	Total
For the three months ended March 31, 2026
Revenue from external customers	$ 398,879	$ 7,251	$ -	$ 406,130
Segment (loss) profit	($ 76,901)	$ 574	$ -	($ 76,327)
For the three months ended March 31, 2025
Revenue from external customers	$ 730,139	$ 11,459	$ -	$ 741,598
Segment (loss) profit	($ 94,603)	($ 8,318)	$ 342	($ 102,579)

Segment gains (losses) refer to the profits earned by each segment, excluding non-operating income and expenses, and income tax expenses. The measurement amount is provided to the chief operating decision maker for allocating resources to departments and assessing their performance.

(II) Total segment assets and liabilities

Segment total assets	March 31, 2026	December 31, 2025	March 31, 2025
Solar modules	$ 6,244,976	$ 6,451,754	$ 9,492,307
Other segment	108,076	173,381	442,459
Consolidated total assets	$ 6,353,052	$ 6,625,135	$ 9,934,766
Segment liabilities
Solar Module Segment	$ 2,753,079	$ 2,827,904	$ 3,054,745
Other segment	55,538	155,208	169,344
Total consolidated liabilities	$ 2,808,617	$ 2,983,112	$ 3,224,089

TSEC CORPORATION AND SUBSIDIARIES

Financing provided to others

For the three months ended March 31, 2026

Appendix 1
Unit: NT$ thousand

No. (Note 1)	Companies to which funds were loaned	Loan counterparties	Transaction item	Whether a related party	Maximum balance during the period	Closing balance	Actual amount drawn	Interest rate range	Nature of fund lending (Note 2)	Amount of business transactions	Reason for the need for short-term financing	Allowance for doubtful accounts amount	Collateral		Lending limit to individual counterparties (Note 3)	Total lending limit (Note 3)	Note
													Name	Value
0	TSEC Corporation	Houchang Energy Corporation	Other receivables from related parties	Yes	$ 150,000	$ 50,000	$ -	2.30%	2	$ -	Operating turnover	$ -	None	$ -	$ 554,157	$ 708,314	Note 4

Note 1: The description of the numbering column is as follows:
(1) The issuer fills in 0.
(2) The invester companies are numbered sequentially by company, starting from Arabic numeral 1.
Note 2: The description of the nature of fund lending is as follows:
(1) Fill in 1 for counterparties with business transactions.
(2) Fill in 2 for counterparties with a need for short-term financing.
Note 3: The Company's total lending limit and the limit for individual counterparties:
I. The Company's total amount of fund lending shall not exceed 40% of the Company's net worth in the most recent financial statements, and the amount to any single borrower shall not exceed 25% of the aforementioned total lending limit.
II. For lending to companies with business transactions, the total lending amount shall not exceed 20% of the Company's net worth in the most recent financial statements; the lending amount to any individual counterparty shall be limited to the total transaction amount between the two parties in the 12 months prior to the fund lending, with the transaction amount referring to the higher of purchases from or sales to the counterparty.
III. For fund lending due to the need for short-term financing, the total lending amount shall not exceed 20% of the Company's net worth in the most recent financial statements, and the amount to any individual counterparty shall not exceed 10% of the Company's net worth in the most recent financial statements.
IV. For fund lending between foreign companies in which the Company directly and indirectly holds 100% of the voting shares, the lending amount shall not exceed 10% of the lending company's net worth in the most recent financial statements, and the term shall not exceed one year.
Note 4: In March 2026, the Company converted NT$ 100,000 thousand of claims against Houchang Energy Corporation into capital contribution, resulting in a decrease in the ending balance of funds loaned to NT$ 50,000 thousand.

TSEC Corporation and Subsidiaries
Endorsements and guarantees provided by the groups
For the three months ended March 31, 2026

Table 2
(Unit: In NT$ thousand, unless specified otherwise)

No.	Guarantor	Guarantee		Limit of Endorsement/Guarantee for Single Enterprise (Note 2)	Maximum Endorsement/Guarantee Balance for Current Period (Note 4)	Balance of Endorsement/Guarantee, End of Period (Note 4)	Actual amount drawn	Endorsement/guarantee amount with assets pledged	Ratio of the accumulated endorsement and guarantee amount to the net value of the most recent financial statements (%) (Note 3)	Upper Limit of Endorsement/Guarantee Amount (Note 2)	Endorsement/guarantee from the parent company to a subsidiary (Note 5)	Endorsement/guarantee to a subsidiary to the parent company (Note 5)	Endorsement/guarantee to a subsidiary to the parent company (Note 5)
		Company name	Relationship (Note 1)
0	TSEC Corporation	Yuan-Yu Solar Energy Co., Ltd.	6	$ 708,314	$ 120,000	$ 120,000	$ 120,000	$ 81,508	3.39%	$ 1,593,707	N	N	N
0	TSEC Corporation	Houchang Energy Corporation	2	708,314	245,000	245,000	42,669	-	6.92%	1,593,707	Y	N	N
0	TSEC Corporation	Jinjing Electric Power Co., Ltd.	2	708,314	80,000	80,000	-	-	2.26%	1,593,707	Y	N	N

Note 1: The relationship between the endorser/guarantee and the party being endorsed/guaranteed is classified into the following five categories; fill in the number of categories each case belongs to:
1. A company with which it has business dealings.
2. The Company directly or indirectly holds more than 50% of the voting shares of the other company.
3. The other company directly or indirectly holds more than 50% of the voting shares of the Company.
4. Companies in which the Company holds, directly or indirectly, 90% or more of the voting shares may make endorsements/guarantees for each other, and the amount of endorsements/guarantees may not exceed 10% of the net worth of the Company. However, the restriction does not apply to endorsements/guarantees made between companies in which the Company holds, directly or indirectly, 100% of the voting shares.
5. The company provides mutual guarantees with other companies in the same industry or joint contractors as required by contract for construction projects.
6. The company provides guarantees for the investee company based on a joint investment relationship, with all contributing shareholders endorsing the guarantee in proportion to their shareholdings.
Note 2: The total amount of the Company's external endorsement guarantees shall not exceed 45% of the current net worth. The ceiling amount of endorsement guarantees to a single company is no more than 20% of the Company's net worth, and no more than 30% of the Company's net worth if it is to a single overseas affiliated company. The net value is based on the financial statements recently verified or audited by independent auditors.
Note 3: It is calculated according to the financial data of the company providing the endorsements/guarantees.
Note 4: The maximum balance of endorsements/guarantees for the current period and the ending balance of endorsements/guarantees are the amounts Approved by the Board of Directors.
Note 5: "Y" shall be entered only in the cases of endorsement/guarantee by the publicly listed parent to subsidiary; endorsement/guarantee by subsidiary to the publicly listed parent; endorsement/guarantee to entity in mainland China.

55 -

TSEC CORPORATION AND SUBSIDIARIES

Names, locations, and other information of investors over which the company exercises significant influence

For the three months ended March 31, 2026

(Unit: In NTS thousand, unless specified otherwise)

Table 3

Name of the investment company	Investor Company	Location	Main Business and Products	Investment Amount		Held at the end of the period			Net Income (Loss) of the Investor	Share of Profit	Note
				End of the period	End of the last period	Number of Shares (In Thousands)	%	Carrying amount
TSEC Corporation	TSEC AMERICA, INC.	1235 N Harbor Blvd Ste 240, Fullerton, CA 92832, U.S.A.	Sales of power generation equipment and solar energy-related products	$ 31,129 (USD 1,000,000)	$ 31,129 (USD 1,000,000)	100	100	$ 8,407	$ -	$ -	Notes 1, 4 and 6
	Houchang Energy Corporation	No. 335-12, Daxi Rd., Qianjin Vil., Pingtung City, Pingtung County	Energy Storage System Operations	260,500	160,500	26,050	100	( 22,631 )	( 1,669 )	( 1,669 )	Notes 1 and 6
	Yunsheng Optoelectronics Corporation	No. 335-12, Daxi Rd., Pingtung City, Pingtung County 900053, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	500	500	50	100	487	-	-	Notes 1 and 6
	Yujing Geothermal Development Co., Ltd.	No. 335-12, Daxi Rd., Qianjin Vil., Pingtung City, Pingtung County	Renewable energy self-use power generation equipment business	500	500	50	100	476	-	-	Notes 1 and 6
	Hengli Energy Corporation	No. 335-12, Daxi Rd., Pingtung City, Pingtung County 900053, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	4,989	4,989	500	100	4,776	( 65 )	( 65 )	Notes 1 and 6
	Yuan Jin Energy Co., Ltd.	8F., No. 225, Sec. 3, Beixin Rd., Xindian Dist., New Taipei City 231, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	26,100	26,100	2,610	90	25,781	( 35 )	( 31 )	Notes 1 and 6
	Yuan-Yu Solar Energy Co., Ltd.	No. 335-12, Daxi Rd., Pingtung City, Pingtung County 900053, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	120,000	120,000	12,000	20	81,508	( 16,997 )	( 3,399 )	Notes 3, 5 and 7
	Holdgood Energy Corporation	8F., No. 225, Sec. 3, Beixin Rd., Xindian Dist., New Taipei City 231, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	168,314	168,314	16,831	45.49	187,815	( 2,370 )	( 1,079 )	Notes 2 and 5
	NFC III Renewable Power Co., Ltd.	12F-4, No. 89, Songren Road, Xinyi District, Taipei City 110413, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	432,000	432,000	43,200	24	410,569	( 10,447 )	( 2,507 )	Notes 3
Houchang Energy Corporation	Hengli Energy Corporation	No. 335-12, Daxi Rd., Pingtung City, Pingtung County 900053, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	100	100	10	100	91	-	-	Notes 1 and 6
	Yongli Energy Corporation	No. 335-12, Daxi Rd., Pingtung City, Pingtung County 900053, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	100	100	10	100	91	-	-	Notes 1 and 6
Yuan Jin Energy Co., Ltd.	Jinjing Electric Power Co., Ltd.	No. 85, Guangfu N. Rd., Hukou Township, Hsinchu County 303036, Taiwan	Self-usage power generation equipment utilizing renewable energy industry	28,024	28,024	2,810	100	27,679	( 23 )	( 23 )	Notes 1 and 6

Note 1: The investment gains and losses of the subsidiaries accounted for using the equity method are calculated based on the financial statements that have been reviewed.
Note 2: The investment gain or loss of the associates under the equity method is calculated based on the financial statements reviewed by the Company's certified public accountants.
Note 3: The investment gains and losses of the associates accounted for using the equity method are calculated based on the financial statements that have been audited by the other CPAs.
Note 4: The Company resolved at the meeting of the Board of Directors on September 11, 2018 to liquidate and dissolve its subsidiary TSEC America, Inc., and as of May 8, 2026, TSEC America, Inc. had not yet carried out the statutory liquidation process.
Note 5: Carrying amount includes unrealized gross margin.
Note 6: Eliminated from the consolidated financial statements.
Note 7: The Company issued the equity of Yuan Yu Company to the bank lender as collateral for Yuan Yu Company's financing in Note XXXII.

AI assistant

TSEC Interim / Quarterly Report 2026

52564_rns_2026-05-26_67cd7140-740b-40b4-ba57-19469298d5ff.pdf

Other Matter Paragraph

IV. Summary of Significant Accounting Policies

(I) Statement of compliance

(II) Basis of preparation

(III) Basis of consolidation

(IV) Other material accounting policies

Income tax expense

X. Inventories

XI. Financial Assets at Fair Value Through Other Comprehensive Income

XIV. Property, Plant and Equipment

XXII. Post-Employment Benefit Plans

XXIII. Preferred Stock Liabilities

XXIV. Equity

(IX) Compensation of employees and remuneration of directors

XXVIII. Cash Flow Information

(I) Non-cash transactions

(II) Changes in liabilities arising from financing activities

XXXVII. Segment Information

Financial Information for Operating Segments

TSEC CORPORATION AND SUBSIDIARIES

AI assistant

TSEC — Interim / Quarterly Report 2026

52564_rns_2026-05-26_67cd7140-740b-40b4-ba57-19469298d5ff.pdf

Other Matter Paragraph

IV. Summary of Significant Accounting Policies

(I) Statement of compliance

(II) Basis of preparation

(III) Basis of consolidation

(IV) Other material accounting policies

Income tax expense

X. Inventories

XI. Financial Assets at Fair Value Through Other Comprehensive Income

XIV. Property, Plant and Equipment

XXII. Post-Employment Benefit Plans

XXIII. Preferred Stock Liabilities

XXIV. Equity

(IX) Compensation of employees and remuneration of directors

XXVIII. Cash Flow Information

(I) Non-cash transactions

(II) Changes in liabilities arising from financing activities

XXXVII. Segment Information

Financial Information for Operating Segments

TSEC CORPORATION AND SUBSIDIARIES

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