THUNDER TIGER CORP.
PARENT COMPANY ONLY
FINANCIAL STATEMENTS AND
REPORT OF INDEPENDENT ACCOUNTANTS
YEARS ENDED DECEMBER 31, 2025 AND 2024

For the convenience of readers and for information purpose only, the independent accountants’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language independent accountants’ report and financial statements shall prevail.

— 1 —

CONTENTS

Item	Page
1. Cover page	1
2. Contents	2
3. Independent auditors’ report	3
4. Parent company only balance sheets	4
5. Parent company only statements of comprehensive income	5
6. Parent company only statements of changes in equity	6
7. Parent company only statements of cash flows	7
8. Notes to parent company only financial statements
(1) General information	8
(2) The authorization of the parent company only financial statements	8
(3) Application of new and amended standards and interpretations	8~9
(4) Summary of significant accounting policies	9~23
(5) Critical accounting judgments, estimates and key sources of assumption uncertainty	23~24
(6) Contents of significant accounts	24~51
(7) Related party transactions	51~56
(8) Pledged assets	56
(9) Significant contingent liabilities and unrecognized contract commitments	56~62
(10) Significant disaster loss	62
(11) Significant subsequent events	62
(12) Others	62~71
(13) Supplementary disclosures	72
A. Significant transactions information	73~76
B. Information on investees	77~78
C. Information on investments in Mainland China	79
(14) Segment information	80
9. Statements of major accounting items	81~104

— 2 —

Crowe

國富浩華聯合會計師事務所

Crowe (TW) CPAs

80250高雄市苓雅區四維三路

6號27樓之1

27F-1., No.6, Siwei 3rd Rd.,

Lingya Dist., Kaohsiung City

80250, Taiwan

Tel +886 7 3312133

Fax +886 7 3331710

www.crowe.tw

REPORT OF INDEPENDENT ACCOUNTANTS

The Board of Directors and Shareholders of Thunder Tiger CORP.

Opinion

We have audited the accompanying parent company only balance sheets of Thunder Tiger Corporation. (the “Company”) as of December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the report of the other independent accountants, as described in the other matters section of our report, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Crowe

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2025 parent company financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 parent company only financial statements are stated as follows:

Valuation of inventory

Please refer to Note 4(7) to the parent company only financial statements for the accounting policy of inventories, Note 5(2)A for critical accounting judgments, estimates and key sources of assumption uncertainty of inventories, and Note 6(6) for inventory valuation.

Description

As of December 31, 2025, inventory was accounted for $312,011 thousand, as 12.62% of the total assets. Due to rapid changes in technology, there is a higher risk of inventory losses arising from market value decline or obsolescence. The company measure inventories at the lower of cost and net realizable value; the estimation of net value is subject to management’s judgement, and therefore highly uncertain estimates, the valuation of inventory has been identified as a key audit matter.

How our audit addressed the matter

In relation to the key audit matter above, our principal audit procedures included the test and assessment of the policy of the inventory evaluation method, included the policy of the judgement of damaged inventories; Obtaining the inventory status of the Company; Obtaining net realizable value statement of each kind of inventory prepared by management and re-performed the calculation to assess the appropriateness of the valuation for obsolescent and damaged inventories.

Realizability of deferred income tax assets

Please refer to Note 4(18) to the parent company only financial statements for the accounting policy of “Impairment assessment of other receivable”, Note 5(2)B for critical accounting judgements, estimates and key sources of assumption uncertainly of impairment of other receivables, and Note 6(33) for Valuation of deferred income tax assets.

— 3-1 —

Crowe

Description

The deferred income tax assets of the Company included unused loss carryforwards and temporary differences. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. Assessment of realizability of deferred income tax assets involves critical accounting judgements and estimates of the management, the valuation of deferred income tax assets has been identified as a key audit matter.

How our audit addressed the matter

In relation to the key audit matter above, our principal audit procedures included obtaining estimated income statement prepared by the management, assessing the reasonableness of its revenue growth rate, gross margin and expense rate, also analyzing the reasonableness of the estimated income statement and the trend of historical results, confirming significant temporary differences adjustment to evaluate the reasonableness of deferred income tax assets.

Other Matters

We did not audit the financial statements of associates accounted for using the equity method that are included in the parent company only financial statements as of 2025 and 2024. Those financial statements were audited by other independent accountants, whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included in the parent company only financial statements is based solely on the audit reports of other independent accountants. The balances of these associates accounted for under the equity method amounted to $24,034 thousand and $21,979 thousand, representing 0.97% and 1.11% of total assets as of December 31, 2025 and 2024, respectively, and share of profits from associates and joint ventures amounted to $2,055 thousand and $4,781 thousand, representing 2.22% and 5.21% of the total profit and loss for the years ended December 31, 2025 and 2024, respectively,

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

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

— 3-2 —

Crowe

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

Those charged with governance (inclusive of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Independent Accountants’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

— 3-3 —

Crowe

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in Our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit team members. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

— 3-4 —

Crowe

The engagement partners on the audit resulting in this independent auditors’ report are Tzu Yun Su and Shu Man Tsai.

Crowe (TW) CPAs

Crowe (TW) CPAs
Kaohsiung, Taiwan (Republic of China)
February 24, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally accepted and applied in the Republic of China. For the convenience of readers, the independent auditors’ report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and parent company only financial statements shall prevail.

— 3-5 —

THUNDER TIGER CORP.

PARENT COMPANY ONLY BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

Assets	Note	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents	6(1)	$54,923	2	$76,618	4
Financial assets at FVTPL - current	6(2)	111,591	5	87,231	5
Current financial assets at amortized cost	6(3)	30,329	1	23,914	1
Notes receivable, net	6(4)	25	-	-	-
Notes receivable - related parties, net	6(4), 7	48,567	2	24,600	1
Accounts receivable, net	6(4)	51,165	2	6,570	-
Accounts receivable - related parties, net	6(4), 7	19,152	1	18,958	1
Other receivables	6(5)	47	-	7,689	1
Other receivables - related parties	6(5), 7	5,991	-	5,093	-
Current income tax assets	6(33)	350	-	210	-
Inventories	6(6)	312,011	13	201,734	10
Prepayments	6(7)	47,850	2	26,988	1
Other current assets	6(8)	7,633	-	9,012	1
Total current assets		689,634	28	488,617	25
NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income or loss - noncurrent	6(9)	$250,682	10	$169,420	9
Noncurrent financial assets at amortized cost	6(3)	7,157	-	27,512	1
Investments accounted for using equity method	6(10)	754,264	31	733,345	37
Property, plant and equipment	6(11)	277,113	11	183,174	9
Right-of-use assets	6(12)	101,123	4	59,292	3
Investment properties, net	6(13)	131,972	5	115,769	6
Intangible assets	6(14)	19,701	1	17,532	1
Deferred income tax assets	6(33)	37,343	2	42,437	2
Pension assets	6(20)	7,778	-	6,705	-
Other non-current assets	6(15)	195,771	8	141,642	7
Total noncurrent assets		1,782,904	72	1,496,828	75
TOTAL ASSETS		$2,472,538	100	$1,985,445	100
Liabilities and Equity
CURRENT LIABILITIES
Short-term loans	6(16)	$185,000	7	$203,311	10
Contract liabilities - current	6(26)	42,200	2	6,769	1
Notes payable - related parties	7	-	-	2,647	-
Accounts payable		12,071	1	24,460	1
Accounts payable - related parties	7	18,122	1	23,193	1
Other payables	6(17)	29,903	1	26,214	1
Other payable - related parties	7	3,918	-	1,792	-
Lease liabilities - current	6(12)	17,835	1	12,283	1
Current portion of long-term loans	6(19)	30,829	1	66,763	3
Other current liabilities - other	6(18)	9,847	-	9,781	1
Total current liabilities		349,725	14	377,213	19

		December 31, 2025		December 31, 2024
Liabilities and Equity	Note	Amount	%	Amount	%
NONCURRENT LIABILITIES
Long-term loans	6(19)	$59,282	2	$156,227	8
Deferred income tax liabilities	6(33)	10,831	-	16,052	1
Lease liabilities - noncurrent	6(12)	144,501	6	113,041	5
Other non-current liabilities - other	6(18)	25,130	2	34,605	2
Total noncurrent liabilities		239,744	10	319,925	16
Total Liabilities		589,469	24	697,138	35
EQUITY
Share capital	6(21)
Ordinary shares		1,526,298	62	1,426,298	72
Capital surplus	6(22)	772,217	31	371,098	19
Retained earnings	6(24)
Unappropriated earnings		(450,287)	(18)	(535,031)	(27)
Other equity	6(25)	34,841	1	25,942	1
Total Equity		1,883,069	76	1,288,307	65
TOTAL LIABILITIES AND EQUITY		$2,472,538	100	$1,985,445	100

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

THUNDER TIGER CORP.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Item	Note	Year Ended December 31
		2025		2024
		Amount	%	Amount	%
OPERATING REVENUES	6(26)	$385,564	100	$141,054	100
OPERATING COSTS	6(6)	(288,713)	(75)	(111,633)	(79)
GROSS PROFIT (LOSS)		96,851	25	29,421	21
UNREALIZED GROSS PROFIT ON SALES TO SUBSIDIARIS AND ASSOCIATES		(192)	-	(219)	-
REALIZED GROSS PROFIT ON SALES TO SUBSIDIARIS AND ASSOCIATES		219	-	214	-
GROSS PROFIT (LOSS), NET		96,878	25	29,416	21
OPERATING EXPENSES
Sales and marketing		(12,557)	(3)	(8,186)	(6)
General and administrative		(94,880)	(25)	(79,701)	(56)
Research and development		(107,492)	(27)	(62,835)	(45)
Expected credit gain (loss)		1,851	-	(2,759)	(2)
Total operating expenses		(213,078)	(55)	(153,481)	(109)
INCOME (LOSS) FROM OPERATIONS		(116,200)	(30)	(124,065)	(88)
NON-OPERATING INCOME AND EXPENSES
Interest income	6(28)	2,410	1	818	1
Other income	6(29)	135,425	35	119,440	85
Other gains and losses	6(30)	125,276	32	61,850	44
Finance costs	6(31)	(14,247)	(3)	(11,741)	(8)
Expected credit gain (loss)	6(32)	(7,541)	(2)	(23,161)	(17)
Share of profits (loss) of subsidiaries, associates and joint ventures	6(10)	(34,064)	(9)	57,195	40
Total non-operating income and expenses		207,259	54	204,401	145
INCOME (LOSS) BEFORE INCOME TAX		91,059	24	80,336	57
INCOME TAX BENEFIT (EXPENSE)	6(33)	(3,416)	(1)	(8,577)	(6)
NET INCOME (LOSS)		87,643	23	71,759	51
OTHER COMPREHENSIVE INCOME (LOSS)	6(34)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation		962	-	1,246	1
Unrealized gain (loss) on investments in equity instruments at FVTOCI		21,502	5	(90)	-
Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures		(30)	-	27	-
Income tax benefit (expense) related to items that will not be reclassified subsequently to profit or loss		(192)	-	(249)	-
Items that may be reclassified subsequently to profit or loss:

Item	Note	Year Ended December 31
		2025		2024
		Amount	%	Amount	%
Exchange differences on translating foreign operations		(14,886)	(4)	22,347	16
Income tax benefit (expense) related to items that may be reclassified subsequently to profit or loss		2,230	1	(3,352)	(3)
Total other comprehensive loss, net of income tax		9,586	2	19,929	14
TOTAL COMPREHENSIVE INCOME		$97,229	25	$91,688	65
EARNINGS PER SHARE
Basic	6(35)	$0.58		$0.50
Diluted	6(35)	$0.58		$0.50

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

THUNDER TIGER CORP.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Ordinary Shares	Capital Surplus	Retained Earnings		Other		Total Equity
			Legal Reserve	Unappropriated Earnings	Exchange Differences on Translating Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
BALANCE AT JANUARY 1, 2024	$ 1,426,298	$ 371,098	$ -	(607,812)	$ 7,526	$ (491)	$ 1,196,619
Net income in 2024	-	-	-	71,759	-	-	71,759
Other comprehensive income (loss) in 2024, net of income tax	-	-	-	1,022	18,995	(88)	19,929
Total comprehensive income in 2024	-	-	-	72,781	18,995	(88)	91,688
BALANCE AT DECEMBER 31, 2024	1,426,298	371,098	-	(535,031)	26,521	(579)	1,288,307
Net income in 2025	-	-	-	87,643	-	-	87,643
Other comprehensive income (loss) in 2025, net of income tax	-	-	-	687	(12,656)	21,555	9,586
Total comprehensive income in 2025	-	-	-	88,330	(12,656)	21,555	97,229
Capital increase in cash	100,000	395,361	-	-	-	-	495,361
Change in ownership of subsidiaries	-	(390)	-	(3,586)	-	-	(3,976)
Share - based payment transactions	-	6,148	-	-	-	-	6,148
BALANCE AT DECEMBER 31, 2025	$ 1,526,298	$ 772,217	$ -	$ (450,287)	$ 13,865	$ 20,976	$ 1,883,069

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

THUNDER TIGER CORP.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

Item	Year Ended December 31
	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$91,059	$80,336
Adjustments :
Adjustments to reconcile profit (loss)
Depreciation	53,580	30,333
Amortization	6,875	4,922
Expected credit loss	5,690	25,920
Gain (loss) on financial assets and liabilities at FVTPL, net	20,253	(17,274)
Interest expense	14,247	11,741
Interest income	(2,410)	(818)
Dividend income	(3,136)	(2,371)
Share - Based Benefit Compensation Cost	6,148	-
Share of loss (profit) of subsidiaries, associates and joint ventures	34,064	(57,195)
Gain on disposal and retirement of property, plant and equipment	-	(599)
Transfer of property, plant and equipment to expenses	144	-
Unrealized gross profit on sales to subsidiaries and associates	192	219
Realized gross profit on sales to subsidiaries and associates	(219)	(214)
Advance receipts of authorized trademark patent payment	(9,524)	(9,524)
Other	(1,811)	(2,017)
Total adjustments to reconcile profit (loss)	124,093	(16,877)
Changes in operating assets and liabilities :
Decrease (increase) in financial assets at FVTPL	(44,613)	17,532
Decrease (increase) in notes receivable	(23,992)	(15,701)
Decrease (increase) in accounts receivable	(42,938)	(16,530)
Decrease (increase) in other receivables	(794)	(1,932)
Decrease (increase) in inventories	(105,797)	(101,053)
Decrease (increase) in prepayments	(20,862)	7,545
Decrease (increase) in other current assets	1,379	(5,464)
Total changes in operating assets	(237,617)	(115,603)
Net changes in operating liabilities :
Increase (decrease) in contract liabilities	35,431	4,455
Increase (decrease) in notes payable	(2,647)	2,647
Increase (decrease) in accounts payable	(17,460)	39,881
Increase (decrease) in other payables	5,974	8,483
Increase (decrease) in other current liabilities	66	66
Total changes in operating liabilities	21,364	55,532
Total net changes in operating assets and liabilities	(216,253)	(60,071)
Total adjustments	(92,160)	(76,948)
Cash generated from (used in) operations	(1,101)	3,388
Interest received	2,407	2,077
Interest paid	(14,223)	(10,880)
Income tax paid	(1,645)	(1,395)
Net cash generated from (used in) operating activities	(14,562)	(6,810)

	Year Ended December 31
Item	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income or loss	($59,760)	$0
Acquisition of financial assets at amortised cost	13,940	(6,376)
Acquisition of investments accounted for using equity method	(75,848)	(52,500)
Increase in prepayments for investments	(18,900)	-
Acquisition of property, plant and equipment	(18,623)	(4,503)
Proceeds from disposal of property, plant and equipment	-	3,450
Increase in refundable deposits	(902)	-
Decrease in refundable deposits	-	1,383
Acquisition of intangible assets	(9,044)	(12,272)
Decrease in other non-current assets	(8,962)	4,574
Increase in prepayments for equipment	(162,866)	(52,453)
Dividends received	6,885	6,475
Net cash generated from (used in) investing activities	(334,080)	(112,222)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans	-	77,311
Decrease in short-term loans	(18,311)	-
Proceeds from long-term loans	104,070	145,000
Repayments of long-term loans	(237,070)	(77,133)
Repayments of lease principal	(17,103)	(11,924)
Capital increase in cash	495,361	-
Net cash generated from (used in) financing activities	326,947	133,254
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(21,695)	14,222
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR	76,618	62,396
CASH AND CASH EQUIVALENTS - END OF YEAR	$ 54,923	$ 76,618

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

THUNDER TIGER CORP.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. GENERAL INFORMATION

Thunder tiger Corp. (collectively as the "Company") was incorporated in October 2, 1979. The Company engages mainly in the manufacturing and selling of remote-controlled planes, helicopters, cars, boats, and engine parts, and medical devices.

The Company's shares have been listed on Taiwan Stock Exchange since June 21, 2007.

The parent company only financial statements are presented in the Company's functional currency, New Taiwan Dollars.

2. THE AUTHORIZATION OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

The parent company only financial statements were approved and authorized for issue by the Board of Directors on February 24, 2026.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

(1) Effect of adoption of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

A. New standards, interpretations and amendments endorsed by the FSC and effective from 2025 are as follows:

New IFRSs	Effective Date Announced by IASB
Amendments to IAS 21 “Lack of Exchangeability”	January 1, 2025

B. The Company has evaluated the aforementioned standards and interpretations, and there's no significant effect to the Company's financial position and performance.

(2) Effect of new issuances or amendments to IFRSs as endorsed by the FSC but not yet adopted

A. New standards, interpretations and amendments endorsed by the FSC and effective from 2026 are as follows:

New IFRSs	Effective Date Announced by IASB
Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Amendments to the Classification and Measurement of Financial Instruments	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Nature-dependent electricity Contract”	January 1, 2026
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026

B. The Company has evaluated the aforementioned standards and interpretations, and there is no significant effect to the Company's financial position and performance.

(3) Effect of the IFRSs issued by IASB but not yet endorsed and issued into effect by FSC:

New IFRSs	Effective Date Announced by IASB
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18, “Presentation and Disclosure in Financial Statements”	January 1, 2027(Note)
IFRS 19, “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027
Amendments to IAS 21 “Converted to highly inflationary currency”	January 1, 2027

Note: In the press release issued by the FSC on September 25, 2025, public companies will be required to apply IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”) starting from the fiscal year 2028. The entities can choose to early adopt IFRS 18 based on their requirements after the FSC endorses IFRS 18.

A. Except as stated below, The Company has assessed that the above standards and interpretations have no significant impact on the Company's financial position and financial performance.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 will replace IAS1 and update the structure of the consolidated income statement. Added new disclosures on management performance measurement, and strengthened the aggregation and segmentation principles applied to the main financial statements and notes.

As of the date the accompany consolidated financial statements are authorized for issue, the Company is still evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(2) Basis of preparation

A. Except for the following items, the accompany parent company only financial statements have been prepared under the historical cost convention:

a. Financial assets and liabilities (including derivatives) measured at fair value through profit or loss.

b. Financial assets measured at fair value through other comprehensive income.

c. Liabilities on cash-settled share-based payment arrangements measured at fair value.

d. Defined benefit assets recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in compliance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

C. When preparing the parent company only financial statements, the Company accounts for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements.

(3) Foreign currency translation

A. Foreign currency transactions and balance

a. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

b. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

c. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.

B. Translation of foreign operations

a. The operating results and financial position of all the Company's subsidiaries, associates and joint ventures that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

(b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

b. When the foreign operation partially disposed of or sold is an associate or a joint venture, exchange differences that were recorded in other comprehensive income are proportionately reclassified to

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profit or loss as part of the gain or loss on sale. In addition, even when the Company retains partial interest in the former foreign associate or joint venture after losing significant influence over the former foreign associate or joint venture, such transactions should be accounted for as disposal of all interest in these foreign operations.

c. When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(4) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

a. Assets arising from operating activities that are expected to be realised, or intended to be sold or consumed within the normal operating cycle;
b. Assets held mainly for trading purposes;
c. Assets that are expected to be realised within twelve months from the balance sheet date;
d. Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.

B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

a. Liabilities that are expected to be paid off within the normal operating cycle;
b. Liabilities held mainly for trading purposes;
c. Liabilities that are to be paid off within twelve months from the balance sheet date (Even if a long-term refinancing or re-arrangement of payment agreements is completed after the balance sheet date and before the issuance of the financial report is approved, it is classified as current liabilities).
d. Liabilities for which has no substantial rights to extend the repayment date to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (including the original maturity of the time deposits within three months.)

(6) Financial instruments

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

Financial assets and financial liabilities are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. Transaction

costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

A. Financial assets

a. Category of financial assets

Financial assets are recognized on a trade date basis.

Financial assets are classified into the following categories: financial assets at fair value through profit or loss (FVTPL), financial assets at amortized cost and investments in equity instruments at fair value through other comprehensive income (FVTOCI).

(a) Financial assets at FVTPL

Financial assets measured at FVTPL for the current period include financial assets that are mandated to be measured at FVTPL for the current period and financial assets designated as measured at FVTPL for the current period. Financial assets that need to be measured at FVTPL include equity investment instruments that the company has not designated to be measured at FVTOCI. If the conditions for equity investment instruments are not met, the costs or investments of equity investment instruments or debt instruments shall be classified as amortized or measured at FVTOCI.

Financial assets that used to be classified as financial assets at amortized cost or FVTOCI, if not classified as FVTPL because of eliminating or materially reducing, then due to measuring assets, liabilities or profit or loss by using different basis and cause different result. The Company would make an irrevocable choice by classifying them as FVTPL at initial recognition.

Financial assets at fair value through profit or loss are measured at fair value, dividends generated are recognised in other income, and interest income and gains or losses arising from remeasurement are recognised in other gains and losses. For the determination of fair value, please refer to Note 12.

(b) Financial assets at amortized cost

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

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

Financial assets at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Expect for the following two cases, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset:

i. Purchased or originated credit-impaired financial assets: for those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

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ii. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets: for those financial assets, the Company shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

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

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

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

b. Impairment of financial assets

(a) At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable), investments in debt instruments that are measured at FVTOCI, lease receivable and contract assets.

(b) The Company always recognize lifetime Expected Credit Loss (i.e. ECL) for accounts receivables. For other financial assets, the Company recognize lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equaling to 12-month ECL.

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

(d) The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

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c. Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is meet:

(a) The contractual rights to receive cash flows from the financial asset expire.

(b) The contractual rights to receive cash flows from the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

(c) The Company neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

On derecognition of financial assets at amortized cost in its entirety, the difference between the financial asset’s carrying amount and the sum of the consideration received is recognized in profit or loss. On derecognition of debt instrument measured at fair value through other comprehensive income, the difference between the financial asset’s carrying amount and the sum of the consideration received and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of equity instruments at fair value through other comprehensive income in its entirety, the cumulative profit and loss will be transferred directly to retained earning without reclassified into profit and loss.

B. Equity instruments

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

C. Financial liabilities

a. Subsequent measurement

Except for the financial liability is either held for trading or is designated as at fair value through profit or loss, all financial liabilities are measured at amortized cost in accordance with the effective interest method.

b. Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

D. Modification of Financial Instruments

When the contractual cash flows of a financial instrument are renegotiated or modified and the renegotiation or modification does not result in the derecognition of that financial instrument, the

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Company recalculates the gross carrying amount of the financial asset or the amortized cost of the financial liabilities using the original effective interest rate and recognizes a modification gain or loss in profit or loss. Any costs or fees incurred adjust the carrying amount of the modified financial instrument and are amortized over the remaining term of the modified financial instrument. If the renegotiation or modification results in that the derecognition of that financial instrument is required, then the financial instrument is derecognized accordingly.

If the basis for determining the contractual cash flows of a financial asset or financial liability changes resulting from interest rate benchmark reform and the change is necessary as a direct consequence of interest rate benchmark reform and the new basis for determining the contractual cash flows is economically equivalent to the previous basis, the Company applies the practical expedient to account for that change as a change in effective interest rate. If changes are made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, the Company first applies the practical expedient aforementioned to the changes required by interest rate benchmark reform, and then applies the applicable requirements to any additional changes to which that practical expedient does not apply.

(7) Inventories

Inventories are stated at the lower of cost and net realizable value, priced at the standard cost in normal times, the difference between actual costs and normal standard costs is allocated in proportion to inventory and operational costs on fiscal year-end, in order to approach the amount of weighted-average cost. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and costs necessary to make the sale.

(8) Investments accounted for using the equity method / subsidiaries and associates

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

B. Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.

C. After acquisition of subsidiaries, the Company recognizes proportionately the share of profit and loss and other comprehensive income in the income statement as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss from a subsidiary exceeds the carrying amount of Company's interest in that subsidiary, the Company continues to recognize its share in the subsidiary's loss proportionately.

D. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or

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indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for under equity method and are initially recognized at cost.

E. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including the carrying amount of the investment in the associate determined using the equity method plus the long-term interests that, in substance, form part of the Group’s net investment in the associate, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

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

G. When the Company disposes of its investment in an associate, if it loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

H. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the Standalone financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the Standalone financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

(9) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized. For property, plant and equipment under construction, sample produced from testing whether the asset is functioning properly before its intended use are measured at lower of the costs or net realizable value. Proceeds from selling such an item and the cost of the item are recognized in profit or loss.

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

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C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in accounting estimate under IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors", from the date of the change.

Service lives estimated as follows:
- Machinery and equipment, 5 to 15 years;
- Molding equipment, 3 to 7 years;
- Other equipment, 2 to 15 years;

D. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

(10) Leases

The Company assesses whether the contract is (or includes) a lease at the date of the contract. For a contract that includes a lease component and one or more additional lease or non-lease components, the Company will allocate the consideration to the lease component base on the individual price of each lease component and the aggregated individual price of the non-lease component.

The Company as a lessee

Except for payments for low-value asset and short-term leases which will be recognized as expenses on a straight-line basis, the Company will recognize right-of-use assets and lease liabilities for all leases at the inception of lease.

Right-of-use asset

The right-of-use asset is initially measured at cost (including the initial measurement amount of the lease liability, the payments less incentives, initial direct costs and the estimated recover cost), the subsequent measurement is based on the cost less accumulated depreciation and accumulated impairment loss, and adjusting the amount of re-measures of lease liabilities.

The right-of-use asset is presented as a separate line item in the parent company only balance sheet except for those that meet the definition of investment properties.

The right-of-use asset recognized depreciation is using the straight-line basis from the date of the lease until the expiration of the useful life or the expiration of the lease term, the depreciation is provided that the title of the underlying asset will be acquired at the end of the lease period or, if the cost of the right-of-use asset reflects the execution of the purchase option.

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Lease liability

The lease liability is initially measured by the present value of the lease payment (including fixed payment, substantive fixed payment, change in lease payment depending on the index or rate, etc.). If the implied interest rate on the lease is easy to determine, the lease payment is discounted using that interest rate. If the interest rate is not easy to determine, the lessee’s increase borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. If the lease period, the evaluation of the purchase choice, the amount of expected to be paid under the residual value guarantee or the change in the index or rate used to determine the lease payment result in a change in the future lease payment, the Company will measure the lease liability and adjust the right to use assets relatively. If the carrying amount has been reduced to Zero, the remaining amount will recognize in the profit and loss. Lease liabilities are presented in a single-line project on the parent company only balance sheet.

The Company as lessor

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

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

(11) Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes), also include land held for a currently undetermined future use. Owned investment properties are initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Investment properties acquired through leases are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made on or before the commencement date, plus initial direct costs incurred and an estimate of costs to restore the underlying asset to the condition required by the terms and conditions of the lease, less any lease incentives received. These investment properties are subsequently measured at cost less accumulated depreciation and accumulated impairment loss and adjusted for any remeasurement of the lease liabilities.

All investment properties are depreciated using the straight-line method.

Investment properties in the course of construction are stated at cost less accumulated impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Depreciation of these assets commences when the assets are ready for their intended use.

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

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(12) Intangible assets

Intangible assets with finite useful lives that are acquired separately are measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis over the following estimated lives: computer software - 1 to 5 years; patents - 1 to 10 years. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Intangible assets are derecognized when disposed of or expected to have no future economic benefits generated through usage or disposal. On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(13) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist, the impairment loss shall be reversed to the extent of the loss previously recognized in profit or loss.

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

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. The recoverable amounts of goodwill shall be evaluated periodically. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

(14) Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

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(15) Employee benefits

A. Short-term employee benefits

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

B. Pensions

a. Defined contribution plans

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

b. Defined benefit plans

(a) Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior period. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognized past service costs. The defined benefit net obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

(b) Actuarial gains and losses arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

C. Employees' bonus and directors' remuneration

Employees' bonus and directors' remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. However, if the accrued amounts for employees' bonus and directors' remuneration are different from the actual distributed amounts as resolved by the shareholders at their shareholders' meeting subsequently, the differences should be recognized based on the accounting for changes in estimates.

D. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognizes expense when it can no longer withdraw an offer of termination benefits or it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet

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date shall be discounted to their present value.

(16) Share capital

Ordinary share is classified as equity. Incremental cost that can be attributed to the issuance of stocks or options is deducted from the capital issued.

(17) Share-based payment transactions

A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-market vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. And ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest.

B. Cash-settle share-based payment arrangements are the fair value of liabilities undertaken recognized in remuneration costs and liabilities in the vesting period and measured by the fair value of equity instruments offered at each balance sheet date and the settlement date. Any changes are recognized in profit or loss.

(18) Income tax

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

B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the subsequent year when the stockholders resolve to distribute retain the earnings.

C. Deferred income tax is recognized, using the balance sheet method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Besides, if relevant taxable and deductible temporary differences are not generated at the time the transaction happens, it would not be accounted either. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference

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will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

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

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

(19) Revenue Recognition

The Company recognizes revenues based on the following steps:

A. Identifying the contracts;
B. Identifying obligations in the contracts;
C. Determining prices;
D. Allocating prices into the obligations in the contracts;
E. Recognizing revenues while fulfilling the obligations.

The Company identify the contract with the customers, allocate the transaction price to the performance obligations, and recognize revenue when performance obligations are satisfied.

The Company does not adjust the promised amount of consideration for the effects of a significant financing component if the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

A. Goods sales

The Company sells remote-controlled models, medical devices and aseptic packages. Sales revenues are recognized while the control of goods is transferred to the customers since the customers already have the rights to use, take the major responsibility to resell the good, have full discretion over the channel and price to sell the products and bear the risk of obsolescence and loss. When the customers accept the products in accordance with the sales contract, and the Company has performed all obligations, the Company recognizes revenues and accounts receivable at the point and presents it in net term after deducting sales return, quantity discount and sales allowance.

The Company does not recognize sales revenue on materials delivered to subcontractors because this delivery does not involve a transfer of risks and rewards of materials ownership.

B. Service revenue

Revenue from technical services is recognized when services are provided.

C. Dividend revenue and interest revenue

a. Dividend revenue from investments is recognized when the rights of shareholders to receive

— 22 —

payment are established, provided that the economic profits arising from such transaction are highly probable to flow to the Company and the amount of such benefits can be reliably measured.

b. Interest revenue is recognized based on outstanding principal and applicable effective interest according to passage of time on an accrual basis.

(20) Borrowing costs

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

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

All borrowing costs other than those stated above are recognized in profit or loss in the period in which they are incurred.

(21) Government subsidy

Government subsidies are recognized at fair value when it is reasonably certain that the Company will comply with the conditions attached to the government subsidies and will receive such subsidies.

Government subsidies are recognized in profit and loss on a systematic basis during the period when the relevant costs that they intend to compensate are recognized as expenses by the company. If government subsidy is used to compensate for expenses or losses that have occurred, or for the purpose of providing the Company with immediate financial support and there is no future related cost, it is recognized in the profit and loss during the period when it can be received. Government subsidies related to property, plant and equipment are recognized as non-current liabilities, and recognized as profits and losses on a straight-line basis based on the estimated useful life of the relevant assets.

5. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The significant judgments, critical accounting estimates, and assumptions made by the Company in applying its accounting policies in the preparation of the accompanying parent company only financial statements are as follows:

(1) Critical judgements in applying accounting policies: None.

(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

As inventories are measured at the lower of cost and net realizable value, the Company is required to determine the net realizable value of inventories at the balance sheet date based on judgments and estimates. The Company assesses normal inventory consumption, as well as obsolete, slow-moving, or inventories lacking marketability at the balance sheet date, and writes down the carrying amount of inventories to their net realizable value where necessary. Such assessments are primarily based on expected future demand for products within a specified period. Accordingly, actual results may differ from these estimates, and such differences could have a material impact on the valuation of inventories.

— 23 —

B. Realizability of deferred income tax assets

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. Assessment of the realisability of deferred income tax assets involves critical accounting judgements and estimates of the management, including the assumptions of expected future sales revenue growth rate and profit rate, tax exempt duration, available tax credits, tax planning, etc. Any variations in global economic environment, industrial environment, laws, and regulations might cause material adjustments to deferred income tax assets.

CONTENTS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Item	December 31
	2025	2024
Cash on hand and revolving funds	$285	$314
Demand deposits and checking accounts	50,638	76,304
Time deposits	4,000	-
Total	$54,923	$76,618

A. The financial institutions dealing with the Company are credit worthy, and the Company does transactions with a number of financial institutions to diversify credit risk that are unlikely to be expected to default.

B. As of December 31, 2025 and 2024, the Company had Time deposits and restricted deposits that classified as current and non-current financial assets at amortized cost pledged to others, please refer to Note 6(3).

(2) Financial assets at FVTPL - current

Item	December 31
	2025	2024
Mandatorily
Domestic listed stocks	$7,980	$10,486
Foreign listed stocks	103,611	76,745
Total	$111,591	$87,231

A. The net income recognized as $123,976 thousand and $55,338 thousand in 2025 and 2024 respectively.

B. No financial assets at fair value through profit or loss were pledged to others.

C. Information relating to price risk of financial assets at fair value through profit or loss is provided in Note 12.

(3) Financial assets at amortized cost

	December 31
Item	2025	2024
Current
Restricted time deposits	$16,000	$9,332
Restricted bank deposits	14,329	14,582
Total	$30,329	$23,914
Non-current
Restricted bank deposits	$7,157	$27,512

A. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Company was carrying value.

B. Information relating to credit risk of financial assets at amortized cost is provided in Note 12.

(4) Notes and accounts receivable, net

	December 31
Item	2025	2024
Notes Receivable	$25	$-
Less: Loss allowance	-	-
Net	$25	$-
Notes receivable-related parties	$48,567	$24,600
Less: Loss allowance	-	-
Net	$48,567	$24,600
Total	$48,592	$24,600
	December 31
Item	2025	2024
Accounts Receivable	$93,161	$50,417
Less: Loss allowance	(41,996)	(43,847)
Net	$51,165	$6,570
Accounts Receivable-related parties	$19,152	$18,958
Less: Loss allowance	-	-
Net	$19,152	$18,958
Total	$70,317	$25,528

A. Please refer to Note 7(2) for the explanation of transactions with related parties.

B. The Company applies the simplified approach to provisions for expected credit losses, which permits the use of a lifetime expected credit losses provision for trade receivables. The expected credit losses

on trade receivables are estimated by reference to the provision matrix and past account aging records of the debtor, an analysis of the debtor's current financial position, and industrial trend. As the Company's historical credit losses experience does not show significantly different loss patterns for different customer segments, the provision for losses based on past due status of notes receivable and accounts receivable (including other receivables) is not further distinguished between the Company's different customer base.

C. The Company measures the loss allowance for notes receivable, accounts receivable according to the preparation matrix:

Age of trade receivable	December 31
	2025	2024
Not past due	$159,174	$49,934
Past due within 30 days	108	143
Past due 31-90 days	883	51
Past due 91-180 days	-	-
Past due 181-360 days	-	-
Past due over 360 days	740	43,847
Total	$160,905	$93,975

D. Please refer to Note 12 for the relevant credit risk management and assessment method.

(5) Other receivables

Item	December 31
	2025	2024
Other receivable
Other receivable-Hong Kong Zong Ze	$175,801	$175,941
Less: Loss allowance	(175,801)	(168,260)
Net	$ -	$7,681
Others	47	8
Subtotal	$47	$7,689
Other receivable-related parties
Others	5,991	5,093
Subtotal	$5,991	$5,093
Total	$6,038	$12,782

A. On March 27, 2017, the Company and Hong Kong Zhong Ze Culture Investment Holding Limited (Hong Kong Zhong Ze) entered into an equity transfer agreement to sell all shares of its subsidiary, THUNDER TIGER MODEL(BVI)CO. LTD., indirectly investing in 30% shares of Thunder Tiger (Ningbo) and 100% shares of Shang Hai Thunder Tiger Solutions Trading Co., Ltd., to Hong Kong Zhong Ze. The equity transfer agreement was resolved by the shareholders at their shareholders'

meeting on June 20, 2017. On December 31, 2018, considering the fact that both companies had entered into the agreement, the Company transferred the price of the agreement amounted to USD$5,756 thousand to other receivables because the counterparties had the obligations to transfer the shares and pay for the shares. Please refer to Note 9(1)A Summary of Commitments for the relevant disclosures provided.

B. Information relating to credit risk is provided in Note 12.

(6) Inventories and operating costs

Item	December 31
	2025	2024
Raw materials	$132,381	$90,404
Work in process	119,577	54,876
Finished goods	60,053	56,454
Net	$312,011	$201,734
Item	Year Ended December 31
---	---	---
	2025	2024
Cost of goods sold	$275,090	$107,181
Loss on inventory valuation (gain from price recovery)	2,164	424
Unallocated manufacturing overhead	11,769	3,087
Loss (gain) on physical inventory	(47)	-
Others	(263)	941
Total	$288,713	$111,633

A. In 2025 and 2024, the company wrote down the inventory to the net realizable value, the inventory price reduction loss were recognized as $2,164 thousand and $424 thousand respectively.

B. Information relating to inventory pledged for the borrowings is provided in Note 12.

(7) Prepayments

Item	December 31
	2025	2024
Prepaid material purchase	$33,393	$9,259
Prepaid advertising expenses	1,622	1,310
Prepaid R&D expenses	747	1,800
Prepaid molding fee	1,381	4,694
Input tax	2,739	2,893
Others	7,968	7,032
Total	$47,850	$26,988

(8) Other current assets

Item	December 31
	2025	2024
Income tax refund receivable	$1,067	$1,608
Excess business tax paid	6,551	7,157
Others	15	247
Total	$7,633	$9,012

(9) Financial assets at fair value through other comprehensive income or loss - noncurrent

Item	December 31
	2025	2024
Equity instruments :
Domestic listed stocks	$49,993	$49,993
Domestic unlisted stocks	179,760	120,000
Subtotal	$229,753	$169,993
Valuation adjustment	20,929	(573)
Total	$250,682	$169,420

A. The Company invests in domestic listed and unlisted equity instruments in accordance with its medium- to long-term investment strategies, with the objective of generating long-term returns. Management considers that recognizing short-term fluctuations in fair value in profit or loss would be inconsistent with such investment objectives. Accordingly, the Company has elected to designate these investments as measured at fair value through other comprehensive income (FVTOCI).
B. Information relating to credit risk is provided in Note 12.
C. No financial assets at fair value through other comprehensive income were pledged to others.

(10) Investments accounted for using equity method

A. Investments accounted for using equity method of the Company are as follows:

Item	December 31
	2025	2024
Subsidiaries:
MANFORD INVESTMENT LTD. (MF)	$448,377	$485,044
UPTOP LTD. (UPTOP)	1	1
TTBIO CORP.	223,625	165,984
THUNDER TIGER ELECTRIC & ENGINEERING CORP.	(456)	67
TTSOLUTIONS, INC.	50,528	47,538
CADCAM MARINE PTY LTD.	45,846	50,879
Subtotal	$767,921	$749,513
Less: Accumulated impairment	(38,147)	(38,147)

Item	December 31
	2025	2024
Equity method investment surplus current liabilities	456	-
Net	$730,230	$711,366
Associates without significance:
Taiwan Swarm Innovation Inc.	24,034	21,979
Subtotal	$24,034	$21,979
Total	$754,264	$733,345

B. Subsidiaries:

a. For more information regarding the subsidiaries of the Company, please refer to Note 4(3)B to the Company's consolidated financial statements of 2025.
b. The Company invested via its subsidiary, MANFORD INVESTMENTS LTD., to invest in ASSOCIATED ELECTRICS, INC.in the US. As of December 31, 2025 and 2024, the accumulated impairment loss were both USD$38,147 thousand.
c. The Company invest in CADCAM MARINE PTY LTD. The investments accounted for using equity method were tested for impairment and no impairment loss should be recognized because the recoverable amount (higher of value in use and fair value less costs to sell) exceeded its carrying amount of the investments.

C. Associates

Shares of individually insignificant associates of the Company are summarized as follows:

	Year Ended December 31
	2025	2024
Share of:
Net income (loss)	$2,055	$4,781
Other comprehensive income (loss) (net after tax)	-	-
Total comprehensive income (loss)	$2,055	$4,781

D. The investments accounted for using equity method and the share of profit or loss and other comprehensive income of those investments were based on the financial statements audited by auditors for the same years.
E. The Company had investments accounted for using equity method pledged to others as of December 31, 2025 and 2024, please refer to Note 8.

(11) Property, plant and equipment

Item	December 31
	2025	2024
Machinery and equipment	$143,678		$93,098
Molding equipment	122,601		117,284
Other equipment	127,398		55,758
Total cost	$393,677		$266,140
Less: Accumulated depreciation and impairment	(116,564)		(82,966)
Net	$277,113		$183,174
Cost	Machinery and Equipment	Molding Equipment	Other Equipment
---	---	---	---
Balance at January 1, 2025	$93,098	$117,284	$55,758
Additions	3,013	5,317	10,231
Reclassification	47,567	-	61,409
Balance at December 31, 2025	$143,678	$122,601	$127,398
Accumulated depreciation and impairment
Balance at January 1, 2025	$15,014	$48,087	$19,865
Depreciation	9,329	12,472	11,797
Balance at December 31, 2025	$24,343	$60,559	$31,662
Cost	Machinery and Equipment	Molding Equipment	Other Equipment
---	---	---	---
Balance at January 1, 2024	$46,185	$55,294	$37,722
Additions	360	3,535	1,286
Disposals	(6,456)	-	(4,305)
Reclassification	53,009	58,455	21,055
Balance at December 31, 2024	$93,098	$117,284	$55,758
Accumulated Depreciation and Impairment
Balance at January 1, 2024	$14,643	$42,656	$17,653
Depreciation	3,976	5,431	6,517
Disposals	(3,605)	-	(4,305)
Balance at December 31, 2024	$15,014	$48,087	$19,865

A. Property, plant and equipment pledged for the borrowings: Please refer to Note 8.
B. Please refer to Note 6(31) for details of the amount of capitalized borrowing costs.

C. Reconciliations of current additions and the acquisition of property, plant and equipment in statement of cash flows were as follows:

Item	Year Ended December 31
	2025	2024
Acquisition of property, plant and equipment	$18,561	$5,181
Decrease (increase) in equipment payable	62	(678)
Cash paid for acquisition of property, plant and equipment	$18,623	$4,503

(12) Lease agreement

A. Right-of-use assets

Item	December 31
	2025	2024
Buildings	$120,723	$66,608
Less: Accumulated depreciation	(19,600)	(7,316)
Net	$101,123	$59,292
Cost	Year Ended December 31
---	---	---
	2025	2024
Beginning balance	$66,608	$66,608
Additions	54,115	-
Ending balance	$120,723	$66,608
Accumulated Depreciation
Beginning balance	$7,316	$491
Depreciation	12,284	6,825
Ending balance	$19,600	$7,316

B. Lease liabilities

	December 31
Item	2025	2024
Lease liabilities - current	$17,835	$12,283
Lease liabilities - noncurrent	$144,501	$113,041

Ranges of discount rates for lease liabilities were as follows:

	December 31
Item	2025	2024
Buildings	2.791%-3.01%	3.00%-3.01%

Please refer to Note 6(31) for interest on lease liabilities; Please refer to Note 12 for 0lease liabilities with repayment periods.

C. Material lease-in activities and terms

The Company leased several buildings for operating use, with the lease terms 5 to 10 years. As of December 31, 2025 and 2024, the right-of-use assets had no indicator of impairment, hence the impairment test were not operated. In accordance with the contract, without the lessor’s consent, the Company is not allowed to sublet the leased object to the third party.

D. Sublease

The Company sublet the part of buildings in industrial district, Xitun district, Taichung city to TTBIO Corp. in the form of operating lease, related right-of-use assets accounted for investment properties, please refer to Note 6(13). The right-of-use assets amount above are not including property under construction for investment properties purpose. Please refer to Note 6(29) for sublet income from right-of-use assets in 2025 and 2024.

E. Other lease information:

a. The current lease relevant expense information was as follows:

Item	Year Ended December 31
	2025	2024
Short-term lease expense	$3,185	$2,763
Low-value asset lease expense	$ -	$2
Variable lease payments that excluded in the measurement of lease liabilities	$ -	$-
Interest Expense on Lease Liabilities	$4,968	$3,908
Total cash outflow for leases (Note)	($25,256)	($18,297)

(Note): Including principle paid for current lease liabilities.

(13) Investment properties, net

Item	December 31
	2025	2024
Land	$57,649	$39,956
Buildings	18,699	12,491
Right-of-use assets	71,511	71,511
Total cost	$147,859	$123,958
Less: Accumulated depreciation	(15,887)	(8,189)
Net	$131,972	$115,769
Cost	Land	Buildings
---	---	---
Balance at January 1, 2025	$39,956	$12,491
Reclassification	17,693	6,208
Balance at December 31, 2025	$57,649	$18,699

Accumulated depreciation and impairment	Land	Buildings	Right-of-use assets	Total
Balance at January 1, 2025	$ -	$771	$7,418	$8,189
Depreciation	-	577	7,121	7,698
Balance at December 31, 2025	$ -	$1,348	$14,539	$15,887
Cost	Land	Buildings	Right-of-use assets	Total
---	---	---	---	---
Balance at January 1, 2024	$ 39,956	$ 12,491	$71,511	$123,958
Additions	-	-	-	-
Balance at December 31, 2024	$39,956	$12,491	$71,511	$123,958
Accumulated depreciation and impairment	Land	Buildings	Right-of-use assets	Total
Balance at January 1, 2024	$ -	$ 308	$297	$605
Depreciation	-	463	7,121	7,584
Balance at December 31, 2024	$ -	$771	$7,418	$8,189

A. The investment properties were the Company leased land and buildings in Guishan district, Taoyuan City to TTSOLUTIONS, Inc in the form of operating lease. The lessee does not have right of first refusal to the asset when lease term ends.

B. The right-of-use asset leased in the investment properties was that the Company sublet part of the leased building in the industrial Zone of Xitun district, Taichung City to TTBIO Corp. in the form of operating lease.

(14)Intangible assets

Item	December 31
	2025	2024
Computer software	$22,438	$18,025
Patents	3,791	3,744
Total cost	$26,229	$21,769
Less: Accumulated amortization	(6,528)	(4,237)
Net	$19,701	$17,532
Cost	Computer Software	Patents
---	---	---
Balance at January 1, 2025	$18,025	$3,744
Additions	7,736	1,308
Derecognition	(3,323)	(1,261)
Balance at December 31, 2025	$22,438	$3,791
Accumulated amortization
Balance at January 1, 2025	$2,995	$1,242
Amortization	5,708	1,167
Derecognition	(3,323)	(1,261)
Balance at December 31, 2025	$5,380	$1,148

Cost	Computer Software	Patents	Total
Balance at January 1, 2024	$8,953	$3,287	$12,240
Additions	11,101	1,171	12,272
Derecognition	(2,029)	(714)	(2,743)
Balance at December 31, 2024	$18,025	$3,744	$21,769
Accumulated amortization
Balance at January 1, 2024	$1,407	$651	$2,058
Amortization	3,617	1,305	4,922
Derecognition	(2,029)	(714)	(2,743)
Balance at December 31, 2024	$2,995	$1,242	$4,237

(15) Other non-current assets

Item	December 31
	2025	2024
Prepayments-related parties	$5,192	$4,622
Prepayments for equipment	137,788	112,423
Refundable deposits	8,811	7,909
Prepayments for investments	18,900	-
Others	25,080	16,688
Total	$195,771	$141,642

A. Prepayments-related parties is special fund used for employees' pension which was transferred to TTBIO CORP.
B. Refundable deposits are mainly for lease and product warranty.
C. The prepayments for investments was for Taiwan Swarm Innovation Inc. In December 2025, the board of directors passed a resolution to participate in the cash capital increase of Taiwan Swarm Innovation Inc. The share payment has been made but the change of registration has not yet been completed.
D. Please refer to Note 8 for non-current assets pledged as collateral for loans.

(16) Short-term loans

Borrowings Nature	December 31
	2025	2024
Mortgage loan	$185,000	$203,311
Interest	2.500%-2.985%	2.440%-2.797%

Please refer to Note 8 for assets pledged as collateral for short-term loans.

(17) Other payables

Item	December 31
	2025	2024
Accrued payroll	$13,100	$12,629
Service payable	1,225	1,085
Utility expense payable	1,956	1,814
Pension payable	941	755
Insurance payable	1,311	1,072
Equipment payable	1,110	1,172
Research and development payable	6,271	2,722
Others	7,907	6,757
Total	$33,821	$28,006

Please refer to Note 7(2)I for other payables with related parties.

(18) Other liabilities-current and non-current

Item	December 31
	2025	2024
Current
Advance receipts of authorized trademark patent payment – due within one year	$9,524	$9,524
Others	323	257
Total	$9,847	$9,781
Non-current
Advance receipts of authorized trademark patent payment	$28,570	$38,094
Less: portion due within one year	(9,524)	(9,524)
Subtotal	$19,046	$28,570
Deposits received	420	420
Deferred income - noncurrent	5,208	5,615
Reclassification of credit balance of investments accounted for using equity method to other non-current liabilities	456	-
Total	$25,130	$34,605

On December 28, 2012, the Company signed a patent and trademark licensing contract with its subsidiary – TTBIO Co., Ltd., and will exclusively license the patents and trademarks of medical products registered in Taiwan, mainland China, Europe and the United States to the subsidiary. The authorization period is 16 years from January 1, 2013 to December 31, 2028, and the amount is $152,381 thousand. The company recognized royalty income both $9,524 thousand in 2025 and 2024.

(19) Long-term loans and current portion of long-term loans

Item	December 31
	2025	2024
Mortgage loans	$90,111	$220,073
Mortgage loans –non-financial institutions	-	3,037
Less: prepaid interest	-	(120)
Subtotal	$90,111	$222,990
Less: portion due within one year	(30,829)	(66,763)
Long-term loans	$59,282	$156,227
Interest rate range	2.40%~3.05%	2.22%~3.92%
Maturity	2026~2045	2025~2043

A. The above long-term loans are repayable in installments in accordance with the agreed repayment schedules prior to maturity.
B. Please refer to Note 8 for assets pledged as collateral for long-term loans.

(20) Pension

A. Defined contribution plans

a. Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labour Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on

6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labour Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

b. The pension costs under the defined contribution pension plans of the Company were $3,032 thousand and $2,272 thousand for the years ended December 31, 2025 and 2024, respectively.

B. Defined benefit plans

a. The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method of the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit by next March. Since the Company has settled the retirement pension of the employee's defined benefit plan, the Company applied to Labor Affairs Bureau, Taichung City Government for stop reserving labor retirement.

b. The agreement between the Company and its subsidiary, TTBIO Corp. The employee's pension before the application of the "Labor Pension Act" shall be borne by the Company, TTBIO Corp. shall bear the employee's pension of subsequent years of service and the difference derived from salary adjustments, the pension of the subsequent years of service has not been appropriated to the Bank of Taiwan, and the company and TTBIO Corp. shall appropriate to TTBIO Corp. to set up a bank deposit account for special funds according to their borne part, and when employees retire, they will be paid by the special account of the subsidiary. As of December 31, 2025 and 2024, the balances appropriated by the company were $5,192 thousand and $4,622 thousand, respectively.

c. The amounts arising from the defined benefit obligation of the Company in the balance sheets were as follows:

Item	December 31
	2025	2024
Present value of defined benefit obligation	($6,468)	($6,421)
Fair value of plan assets	14,246	13,126
Net defined benefit assets (liabilities)	$7,778	$6,705

d. Movements of the net defined benefit assets were as follows:

Item	Year Ended December 31, 2025
	Present Value of Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Assets
Balance at January 1	($6,421)	$13,126	$6,705
Service cost
Current service cost	-	-	-
Interest (expense) income	(102)	213	111
Recognized in profit or loss	($102)	$213	$111
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	$ -	$907	$907
Actuarial loss (gain) -
Changes in financial assumptions	(124)	-	(124)
Experience adjustments	179	-	179
Recognized in other comprehensive income	$55	$907	$962
Contributions from the employer	$ -	$ -	$ -
Benefits paid from plan assets	-	-	-
Balance at December 31	($6,468)	$14,246	$7,778
	Year Ended December 31, 2024
Item	Present Value of Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Assets
Balance, at January 1	($7,058)	$11,916	$4,858
Service cost
Current service cost	-	-	-
Interest (expense) income	(86)	147	61
Recognized in profit or loss	($86)	$147	$61
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	$ -	$1,063	$1,063
Actuarial loss (gain)
Changes in financial assumptions	220	-	220
Experience adjustments	(37)	-	(37)
Recognized in other comprehensive income	$183	$1,063	$1,246
Contributions from the employer	$ -	$ -	$ -
Benefits paid from plan assets	540	-	540
Balance at December 31	($6,421)	$13,126	$6,705

The pension costs under the defined benefit plans of the Company were as follows:

Item	Year Ended December 31
	2025	2024
General and administrative expenses	($111)	($61)
Total	($111)	($61)

e. The Bank of Taiwan was commissioned to manage the Fund of the Company's defined benefit pension plan in accordance with the Fund's annual investment and utilization plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labour Retirement Fund" (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

f. The principal assumptions of the actuarial valuation were as follows:

	Measurement Date
	December 31, 2025	December 31, 2024
Discount rate	1.40%	1.65%
Future salary increase rate	2.00%	2.00%

Assumptions regarding future mortality experience are set based on actuarial valuation in accordance with the 6th version of Taiwan Standard Ordinary Experience Mortality Tables.

Item	December 31
	2025	2024
Discount rate
0.25% higher	($124)	($132)
0.25% lower	$127	$136
Expected rates of salary increase
0.25% higher	$15	$17
0.25% lower	($15)	($16)

The sensitivity analysis above is based on one assumption which changed while the other conditions that remain unchanged. In practice, more than one assumption may change all at once.

The method of analyzing sensitivity and the method of calculating net pension liability in the balance sheet are the same. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

g. The Company expects to make contributions of $0 thousand to the defined benefit plans for the year ended December 31, 2026.

h. As of December 31, 2025, the weighted average duration of the retirement plan is 7 years. The analysis of timing of the future pension payment was as follows:

Item	December 31
	2025	2024
Within 1 year	$249	$410
1~2 year(s)	1,021	238
3-5 years	732	1,369
Over 5 years	5,229	5,384
	$7,231	$7,401

(21)Share capital

A. Movements in the number of the Company’s ordinary shares outstanding were as follows:

Item	Year Ended December 31, 2025
	Shares (in thousands)	Amount
Beginning balance	142,630	$1,426,298
Capital increase in cash	10,000	100,000
Ending balance	152,630	$1,526,298
Item	Year Ended December 31, 2024
---	---	---
	Shares (in thousands)	Amount
Beginning balance	142,630	$1,426,298
Capital increase in cash	-	-
Ending balance	142,630	$1,426,298

As of December 31, 2025, the authorized capital is $2,000,000 thousand, consisting of 200,000 thousand shares, and the paid-in capital is $1,526,298 thousand with a per value of $10 (in dollars) per share.

In order to adjust the share capital structure, offset losses and increase net value per share, capital reduction by 10% was approved through the shareholders’ meeting on June 30, 2020, after the capital reduction, the share capital is 101,366,798 shares, decrease by 11,262,977 shares. On June 17, 2025, the Company’s board of directors resolved to stop processing.

B. As of December 31, 2025, the Company’s private placement ordinary shares was 4,463 thousand shares issued on December 28, 2012, and 3,210 thousand shares issued on July 26, 2019, except of the restriction on trading as required by the Securities and Exchange Act and the requirement for a

public offering could only be made three years after the issuance date, the Company is at a loss, it is still unable to apply for listing and trading.

C. On June 17, 2025, the Company’s shareholders approved to capital increase by private placement within the quota of 40 million shares for enrich capital, repay loans and response to the fund demand of future investment development. And authorized the Company’s board of directors to implement at the right time.

D. On November 12, 2024, the Company’s board of directors resolved to issue 10,000 thousand ordinary shares, with a par value of $10. The issuance of ordinary shares was approved by the FSC on December 27, 2024, and the board of directors set the subscription base date at February 24, 2025 with the issue price of $49.8 per share.

E. On November 11, 2025, the Board of Directors of our Company passed a resolution to conduct a cash capital increase, with the issuance of new ordinary shares not exceeding 12,000 thousand shares. The actual number of shares issued shall be handled by the Chairman within the limit.

(22) Capital surplus

Under the Company Act, the capital surplus generated from the excess of the issuance price over the par value of capital stock and donations can be used to offset deficit or may be distributed as stock dividends or in cash. Under the regulations of the Security Exchange Law, the maximum amount transferred from the foregoing capital surplus to the Company’s capital per year shall not be over 10% of the Company’s paid-in capital. Capital surplus can’t be used to offset deficit unless legal reserve is insufficient.

(23) Share-based payment transactions

A. For the years ended December 31, 2025 and 2024, the Company’s share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted	Vesting conditions
Stocks to employees	2025.2.11	10,000	Immediately vested

B. The Company used the Black-Scholes Option Pricing Model to estimate the fair value of option granted, and the information of calculation the fair value are as follows:

Type of arrangement	Grant date	Stock price	Exercise price	Expected volatility	Expected life	Expected dividend	Risk-free rate	Fair value per unit
Stocks to employees	2025.2.11	61.37	49.8	33.22%	0.068 year	-	1.1563%	11.6

C. Expenses incurred on Share-based payment transactions were as follows:

Item	Year Ended December 31
	2025	2024
Equity-settled	$6,148	$ -

(24) Retained earnings and dividend policy

A. In accordance with the dividend policy as set forth in the Company’s Articles of Incorporation, the company is in a changing environment and at the stage of stable growth, to meet the demand for operating funds and to develop long-term financial planning, when the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside a special reserve, and the remainder plus prior year’s unappropriated earnings will be recommended by the board of directors and approved through the shareholders’ meeting.

The appropriation of earning recommended by the board of directors, the total amount of shareholder dividends shall be 10% of the accumulated distributable earnings to 90%. However, at least 10% of total dividends should be distributed in cash.

B. Legal reserve may be used to offset a deficit, and be transferred to capital or distributed in cash. However, legal reserve can be transferred to capital or distributed in cash only when the legal reserve has exceeded 25% of the Company’s paid-in capital.

C. While earning distribution, the earnings can be distributed after appropriation of the equivalent amount of the debit balance of the other equities of the balance sheet.

D. The shareholders’ meeting held on June 17, 2025, and June 24, 2024 resolved no dividends distributed to the shareholders due to accumulated deficit.

E. The Company’s appropriations of earnings for 2025 had been approved in the meeting of the board of directors held on February 24, 2026. No dividends will be distributed to the shareholders due to accumulated deficit as of December 31, 2025. The appropriations of earnings for 2025 are to be presented for approval in the Company’s annual shareholders’ meeting to be held on May 14, 2026.

F. Information on the earnings appropriation proposed by the Company’s Board of Directors and approved by the Company’s shareholders is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(25) Other equity

Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Total
Balance, January 1, 2025	$26,521	($579)	$25,942
Exchange differences on translation of foreign financial statements	(12,656)	-	(12,656)
Unrealized gain (loss) on financial assets at fair value through other comprehensive income	-	21,502	21,502
Share of subsidiaries, associates and joint ventures accounted for using equity method	-	53	53
Balance, December 31, 2025	$13,865	$20,976	$34,841

—42—

Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Total
Balance, January 1, 2024	$7,526	($491)	$7,035
Exchange differences on translation of foreign financial statements	18,995	-	18,995
Unrealized gain (loss) on financial assets at fair value through other comprehensive income	-	(90)	(90)
Share of subsidiaries, associates and joint ventures accounted for using equity method	-	2	2
Balance, December 31, 2024	$26,521	($579)	$25,942

(26) Operating revenues

Item	Year Ended December 31
	2025	2024
Revenue from contracts with customer	$388,261	$141,414
Less: Sales return	(2,000)	(6)
Sales discount	(697)	(354)
Net	$385,564	$141,054

A. Explain of contract revenue

The Company manufactures and sells remote-controlled models, medical devices and aseptic packages, Revenue is the fair value of the received or receivable for the sales of goods in ordinary business activities, express net amount which deduct from business tax, Sales return and sales discount, Products are sold at a fixed price as agreed in the contract.

B. Segments of revenue from contracts with customers:

The Company’s revenue can be split into the following segments:

Item	Year Ended December 31, 2025
	Taiwan	China	Others	Total
Main product/Major service line
Unmanned Vehicle and remote-controlled products	$70,206	$ -	$10,634	$80,840
Medical devices products	2,000	40,447	-	42,447
Aseptic packages products	262,277	-	-	262,277
Total	$334,483	$40,447	$10,634	$385,564
Timing of revenue recognition
Revenue recognized at a specific timing	$334,483	$40,447	$10,634	$385,564

43 -

Year Ended December 31, 2024

Item	Taiwan	China	Others	Total
Main product/Major service line
Unmanned Vehicle and remote-controlled products	$ 13,129	$ -	$ -	$13,129
Medical devices products	3,200	17,046	-	20,246
Aseptic packages products	107,679	-	-	107,679
Total	$124,008	$17,046	$ -	$141,054
Timing of revenue recognition
Revenue recognized at a specific timing	$124,008	$17,046	$ -	$141,054

C. Contract balances

The Company recognizes the contract liabilities related to contract revenue as follows:

December 31
Item	2025	2024	2023
Receivables	$118,909	$50,128	$20,656
Contract liabilities - current	$42,200	$6,769	$2,314

a. Significant changes in contract assets and contract liabilities

The changes in the contract assets and contract liabilities primarily result from the timing difference between the satisfaction of performance obligation and the customer's payment, and there is no other significant changes.

b. Amount from previous period's satisfied performance obligations and beginning contract liabilities recognized in the current period as income were as follows:

Year Ended December 31
Revenue in the current period	2025	2024
From beginning contract liabilities	$6,769	$2,314
From previous period’s satisfied performance obligations	$ -	$ -

(27)Labor cost, depreciation and amortization

Year ended December 31, 2025
Item	Operating cost	Operating expenses	Total
Labor cost
Salaries	$18,044	$51,621	$69,665
Insurance	1,477	4,697	6,174
Pension	679	2,242	2,921
Remuneration to directors	-	6,550	6,550
Others	299	1,311	1,610
Depreciation	30,777	22,803	53,580
Amortization	1,066	5,809	6,875
Total	$52,342	$95,033	$147,375

Year ended December 31, 2024

Item	Operating cost	Operating expenses	Total
Labor cost
Salaries	$11,801	$36,448	$48,249
Insurance	1,073	3,504	4,577
Pension	498	1,713	2,211
Remuneration to directors	-	7,035	7,035
Others	224	806	1,030
Depreciation	10,502	19,831	30,333
Amortization	56	4,866	4,922
Total	$24,154	$74,203	$98,357

A. In order to motivate the morale of all employees, the Company's net income before tax before deducting remuneration to employees and Directors and after covering for losses in the current fiscal year, should be applied to remuneration to employees in an amount not less than 2% of the balance, and to Directors for an amount not more than 5% of the balance. Employee remuneration may be distributed in stock or cash subject to a resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors and reported to shareholders. Employee remuneration may be distributed in stock or cash; remuneration may also be distributed for employees of controlled or affiliated companies that meet the criteria.

B. Due to the accumulated loss of the Company for the years 2025 and 2024, the estimated amount of the above compensation and remuneration were both $0 thousand.

C. Information about the appropriation of employees' and directors' remuneration by the Company will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

D. The average numbers of employees in 2025 and 2024 were 80 and 68, respectively. The number of directors who were not adjunct employees in 2025 and 2024 were both 6. The Company's average employee benefit expenses in 2025 and 2024 were $1,005 thousand and $904 thousand, respectively. The Company's average wages and salaries in 2025 and 2024 were $871 thousand and $778 thousand, respectively, increased by 12% in 2025 and decreased by 6% in 2024, respectively.

E. The Company's average remuneration of supervisors in 2025 and 2024 were both $0 thousand.

F. The Company's salary and remuneration policy, including that for directors, managers and employees, is as follows:

(1) Directors' remuneration:

The remuneration to the directors shall be determined by the Board of Directors according to their degree of participation in the operation of the Company, the value of their contribution, and the usual standards of the industry. The Company's Articles of Incorporation clearly stipulate that not higher than 5% of the annual profit shall be allocated as the director's remuneration. The actual appropriation ration and amount are reviewed by the remuneration committee and submitted to the Board of Directors for resolution.

(2) Managers' remuneration:

The remuneration to the managers is based on their duties, operation performance and in

consideration of the Company's short-run and long-run performance, and is reviewed by the remuneration committee and submitted to the Board of Directors for resolution.

(3) Employees' compensation:

The Company provides a diversified compensation program that is competitive externally, fair internally adapted locally to retain and motivate employees. The employees' compensation includes monthly Salary, bonuses and retirement. The Company's Articles of Incorporation clearly stipulate that not less than 2% of the annual profit shall be allocated as the employees' compensation. No less than 20% of this amount will be allocated to grassroots employees for compensation. The employees' compensation shall be determined according to job responsibilities and professional skills, the bonuses and remuneration shall be determined according to personal working performance and contributions.

(28) Interest income

Item	Year Ended December 31
	2025	2024
Interest income
Interest on bank deposits	$2,353	$769
Interest on refundable deposits	57	49
Total	$2,410	$818

(29) Other income

Item	Year Ended December 31
	2025	2024
Patent income	$9,524	$9,524
Management service income	91,232	75,026
Rent income	14,101	14,023
Subsidies	7,914	15,376
Gain on disposal of molding equipment	1,293	1,293
Dividend income	3,136	2,371
Others	8,225	1,827
Total	$135,425	$119,440

(30) Other gains and losses

Item	Year Ended December 31
	2025	2024
Net currency exchange gain (loss)	$1,300	$5,917
Gain on financial assets at FVTPL	(20,253)	17,274
Gain (loss) on disposal of assets	-	599
Gain on disposal of investments	144,229	38,064
Others	-	(4)
Total	$125,276	$61,850

(31) Finance costs

Item	Year Ended December 31
	2025	2024
Interest
Interest on loans-banks and non-financial institutions	$9,937	$9,462
Interest on lease liabilities	4,969	3,907
Others	7	7
Subtotal	$14,913	$13,376
Less: capitalized amount for qualified assets	(666)	(1,635)
Total	$14,247	$11,741
Interest capitalized rate	2.68%-2.95%	2.71%-2.87%

(32) Expected credit loss

Item	Year Ended December 31
	2025	2024
Expected credit loss-Other receivables-current	$7,541	$23,161

Please refer to Note 6(5) and 12 for above expected credit loss of other receivables.

(33) Income tax expense

A. The major components of tax expense were as follows:

Current income tax	Year Ended December 31
	2025	2024
Current tax expense	$ -	$ -
Non-offset foreign tax	1,551	1,355
Prior year income tax adjustment	(46)	(5)
Total	$1,505	$1,350
Deferred income tax
The origination and reversal of temporary differences	$1,911	$7,227
Total	$1,911	$7,227
Income tax expense	$3,416	$8,577

B. Income tax expense recognized in other comprehensive income was as follows:

Item	Year Ended December 31
	2025	2024
Remeasurement of defined benefit plans	$192	$249
Exchange differences on translation of foreign financial statements	(2,230)	3,352
Total	($2,038)	$3,601

C. Reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

Item	Year Ended December 31
	2025	2024
Income (loss) before income tax	$91,059	$80,336
Income tax expense at the statutory rate	$18,211	$16,067
Tax effect of adjusting items:
Effects from items disallowed by tax regulation	11,875	(10,631)
Loss carryforwards	(30,086)	(5,436)
Non-offset foreign tax	1,551	1,355
Prior year income tax adjustment	(46)	(5)
Deferred income tax expense
Temporary differences	1,911	7,227
Income tax expense recognized in profit or loss	$3,416	$8,577

The applicable tax rate used by the Company is $20\%$ . In addition, the tax rate applicable to unappropriated earning is $5\%$ .

D. Current income tax assets and liabilities

Item	December 31
	2025	2024
Current income tax assets	$350	$210
Current tax liabilities	$ -	$ -

E. Deferred tax assets and liabilities from temporary differences

	Year Ended December 31, 2025
	Balance, Beginning of Year	Recognized in Profit or Loss	Recognized in Other Income	Balance, End of Year
Deferred income tax assets:
Temporary differences
Loss on inventories	$6,183	$432	$ -	$6,615
Unrealized gross profit on sales	736	(433)	-	303
Loss on foreign investment under equity method	10,474	1,181	-	11,655
Net defined benefit liabilities-non current	1,666	(22)	(192)	1,452
Loss carryforwards	23,016	(6,184)	-	16,832
Others	362	124	-	486
Subtotal	$42,437	($4,902)	($192)	$37,343
Deferred income tax liabilities:
Temporary differences
Gain on foreign investment under equity method	($15,024)	$3,056	$ -	($11,968)
Unrealized exchange gain	(1,028)	(65)	2,230	1,137
Subtotal	($16,052)	$2,991	$2,230	($10,831)
Total	$26,385	($1,911)	$2,038	$26,512

	Year Ended December 31, 2024
	Balance, Beginning of Year	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Balance, End of Year
Deferred income tax assets:
Temporary differences
Loss on inventories	$6,098	$85	$-	$6,183
Unrealized gross profit on sales	819	(83)	-	736
Loss on foreign investment under equity method	10,803	(329)	-	10,474
Net defined benefit liabilities-non current	2,035	(120)	(249)	1,666
Loss carryforwards	23,881	(865)	-	23,016
Others	268	94	-	362
Subtotal	$43,904	($1,218)	($249)	$42,437
Deferred income tax liabilities:
Temporary differences
Gain on foreign investment under equity method	($5,993)	($5,679)	($3,352)	($15,024)
Unrealized exchange gain	(698)	(330)	-	(1,028)
Subtotal	($6,691)	($6,009)	($3,352)	($16,052)
Total	$37,213	($7,227)	($3,601)	$26,385

F. Items with no deferred tax assets recognized:

	December 31
Item	2025	2024
Loss carryforwards	$16,832	$40,734
Deductible temporary differences	67,906	66,663
Total	$84,738	$107,397

G. The tax authorities have ratified the Company's income tax returns through Year 2023.

(34) Other comprehensive income (loss)

	Year Ended December 31, 2025
Item	Before tax	Income tax expense (benefit)	After tax
Items that will not be reclassified subsequently to profit or loss :
Remeasurement of defined benefit plans	$962	($192)	$770
Unrealized gain (loss) on financial assets at fair value through other comprehensive income	21,502	-	21,502
Share of subsidiaries, associates and joint ventures accounted for using equity method
Remeasurement of defined benefit plans	(83)	-	(83)
Unrealized gain (loss) on equity instruments at fair value through other comprehensive income	53	-	53
Subtotal	$22,434	($192)	$22,242

Item	Year Ended December 31, 2025
	Before tax	Income tax expense (benefit)	After tax
Items that may be reclassified subsequently to profit or loss:
Share of subsidiaries, associates and joint ventures accounted for using equity method
Exchange differences on translation of foreign financial statements	($14,886)	$2,230	($12,656)
Subtotal	($14,886)	$2,230	($12,656)
Recognized in other comprehensive income (loss)	$7,548	$2,038	$9,586
Item	Year Ended December 31, 2024
---	---	---	---
	Before tax	Income tax expense (benefit)	After tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	$1,246	($249)	$997
Unrealized gain (loss) on financial assets at fair value through other comprehensive income	(90)	-	(90)
Share of subsidiaries, associates and joint ventures accounted for using equity method
Remeasurement of defined benefit plans	25	-	25
Unrealized gain (loss) on equity instruments at fair value through other comprehensive income	2	-	2
Subtotal	$1,183	($249)	$934
Items that may be reclassified subsequently to profit or loss:
Share of subsidiaries, associates and joint ventures accounted for using equity method
Exchange differences on translation of foreign financial statements	$22,347	($3,352)	$18,995
Subtotal	$22,347	($3,352)	$18,995
Recognized in other comprehensive income (loss)	$23,530	($3,601)	$19,929

(35)Earnings per share

Item	Year Ended December 31
	2025	2024
Basic earnings per share:
Profit attributable to the Company owner	$87,643	$71,759
Net profit (loss) used to calculate basic earnings per share	$87,643	$71,759
Weighted average shares outstanding (in thousands)	151,150	142,630
Basic earnings (loss) per share (after tax)	$0.58	$0.50
Diluted earnings per share:
Profit (loss) attributable to the Company owner	$87,643	$71,759
Net profit (loss) used to calculate diluted earnings per share	$87,643	$71,759
Weighted average shares outstanding (in thousands)	151,150	142,630
Impact on employees’ compensation	-	-
Weighted average number of ordinary shares outstanding after dilution (in thousands)	151,150	142,630
Diluted earnings (loss) per share (after tax)	$0.58	$0.50

Since the Company offered to settle compensation paid to employees in cash or shares, the Company assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

(36) Business combinations

A. Acquisition of subsidiary:

Name	Date of acquisition	Ownership equity with voting rights/ Acquisition portion(%)	Transfer contingent
CADCAM MARINE PTY LTD.	September 30, 2024	60%/60%	$52,500

a. CADCAM MARINE PTY LTD.: The Company acquired CADCAM MARINE PTY LTD.'s share to expand the domestic and global market of unmanned surface vehicle, the share holding portion increased from 0% to 60%.

B. Assets acquired amd liability burden on date of acquisition:

	CADCAM MARINE PTY LTD.
Current assets
Cash and cash equivalents	$52,877
Inventory	65,659
Other current assets	62
Non-current assets
Property, plant and equipment	13,389
Right-of-use assets	6,477
Deferred tax assets	15,807
Other non-current assets	1,115
Current liabilities
Contract liability	(15,879)
Lease liability-current	(3,701)
Other current liabilities	(4,431)
Non-current liabilities
Lease liability-non-current	(2,846)
Long term borrowing	(49,417)
Other non-current liabilities	(1,474)
Identifiable asset	$77,638

C. Goodwill on date of acquisition:

	CADCAM MARINE PTY LTD.
Transfer contingent	$52,500
Add: non-controlling interests	35,000
Less: fair value of identifiable asset	(77,638)
Goodwill from aquisition	$9,862

D. Net cash outflow of acquisition:

	CADCAM MARINE PTY LTD.
Transfer contingent by cash	$52,500
Less: acquired cash and cash equivalents balance	(52,877)
Total	($377)

7. RELATED PARTY TRANSACTIONS

(1) Related party name and category:

Related Party Name	Related Party Category
TTBIO Corp. (TTBIO)	Subsidiary
TTSOLUTIONS, Inc. (TTSOLUTIONS)	Subsidiary
TT Media Technology, Inc. (TT Media)	Subsidiary
Shanghai Thunder Tiger Innovation Co., Ltd. (TT Shanghai)	Subsidiary
Thunder Tiger (USA) Corp. (TTUSA)	Subsidiary
Associated Electrics, Inc. (AE INC.)	Subsidiary
CADCAM MARINE PTY LTD. (CADCAM)	Subsidiary
Taiwan Swarm Innovation Inc. (Taiwan Swarm Innovation)	Associate
Taiwan First Biotechnology Inc. (TBI)	Other related parties
AGV Products Corp. (AGV)	Other related parties
Koya Biotech Corp. (Koya Biotech)	Other related parties

(2) Significant transactions with related parties:

A. Operating revenue:

Item	Related Party Category / Name	Year Ended December 31
		2025	2024
Sales revenue	Other related party – TBI	$262,110	$107,397
Sales revenue	Other related parties	28	-
Sales revenue	Other subsidiaries	1,038	422
Sales revenue	Associate	675	-
Total		$263,851	$107,819

The transaction price of the company's sales to its subsidiaries is based on the relevant market price and is negotiated by both parties. Payment terms are approximately 60 days.

Selling prices of aseptic package products with TBI are equivalent to those with ordinary customers.

Payment term is monthly, and closes in 90 days.

B. Purchase:

Item	Related Party Category / Name	Year Ended December 31
		2025	2024
Purchase	Subsidiary – TTBIO	$29,681	$21,763
Purchase	Subsidiary – CADCAM	21,325	-
Purchase	Subsidiaries	10,240	7,435
Purchase	Associate	164	3,829
Total		$61,410	$33,027

Purchase prices with related parties are based on relevant market price and negotiated by both parties. Payment term is 60 days and prepayment before shipment.

C. Others

Item	Related Party Category / Name	Year Ended December 31
		2025	2024
Operation expenses	Subsidiaries	$6,439	$368
Operation expenses	Associate	1,425	3,193
Factory overhead	Other related parties	1,840	372
Operation expenses	Other related parties	-	20
Rent income	Subsidiary – TTBIO	8,856	9,008
Rent income	Subsidiaries	2,844	2,831
Management service income	Subsidiary – TTBIO	12,241	4,770
Management service income	Subsidiary – TTSOLUTIONS	10,686	8,569
Management service income	Subsidiary – AE Inc.	67,781	61,197
Management service income	Subsidiaries	6,904	548
Patent income	Subsidiary – TTBIO	9,524	9,524
Other income	Other related parties	166	425

a. The Company sublets part of the leased buildings to subsidiaries. The rent is collected on a monthly basis with reference to the rent level of local market.
b. The Company leases part of its properties to subsidiaries. The rent is collected on a monthly basis with reference to the rent level of local market.
c. The Company provides subsidiaries with service contracts of daily management and financial accounting.

D. Notes and accounts receivable

Item	Related Party Category / Name	December 31
		2025	2024
Notes receivable	Other related parties-TBI	$48,567	$24,600
Item	Related Party Category / Name	December 31
---	---	---	---
		2025	2024
Accounts receivable	Other related parties-TBI	$18,239	$18,825
Accounts receivable	Subsidiaries	889	133
Accounts receivable	Associate	24	-
Total		$19,152	$18,958

E. Other receivables

Item	Related Party Category / Name	December 31
		2025	2024
Other receivables	Subsidiary – TT Shanghai	$2,985	$2,880
Other receivables	Subsidiary – TTBIO	1,926	1,230
Other receivables	Subsidiary – TTSOLUTIONS	866	847
Other receivables	Subsidiaries	214	136
Total		$5,991	$5,093

Other receivables are mainly advances to subsidiaries.

F. Prepayments

Item	Related Party Category / Name	December 31
		2025	2024
Prepayments	Subsidiaries	$ -	$1,140
Prepayments	Associate	1,350	1,350
Total		$1,350	$2,490
Other non-current assets	Subsidiary – TTBIO	$5,192	$4,622

Other non-current assets is mainly employees' pension which was transferred to TTBIO Corp.

G. Property transactions: None.

H. Notes payable and accounts payable

Item	Related Party Category / Name	December 31
		2025	2024
Notes payable	Associate- Taiwan Swarm Innovation	$ -	$2,647
	Related Party	December 31
Item	Category / Name	2025	2024
Accounts payable	Subsidiary-TTBIO	$10,333	$15,697
Accounts payable	Subsidiary-CADCAM	1,779	4,851
Accounts payable	Subsidiary-TTSOLUTIONS	5,971	-
Accounts payable	Associate- Taiwan Swarm Innovation	39	2,645
Total		$18,122	$23,193

I. Other payables

a. Ending balance

Item	Related Party Category / Name	December 31
		2025	2024
Others	Subsidiaries	$3,527	$1,692
Others	Associate	391	100
Total		$3,918	$1,792

J. Lease agreement

Item	Related Party Category	December 31
		2025	2024
Acquisition of right-to-use assets	Other related parties-KOYA BIOTECH	$46,130	$ -
Item	Related Party Category	December 31
---	---	---	---
		2025	2024
Lease liabilities-current	Other related party-KOYA BIOTECH	$4,634	$ -
Lease liabilities-non-current	Other related party-KOYA BIOTECH	$42,115	$ -
Item	Related Party Category	December 31
---	---	---	---
		2025	2024
Interest expense	Other related parties	$1,042	$ -

The aforementioned lease agreement was entered into with reference to prevailing local market rental rates, and the rent is payable on a monthly basis.

K. Advance receipts of authorized trademark and income

Item	Related Party Category / Name	December 31
		2025	2024
Other liabilities-current	Subsidiary-TTBIO	$9,524	$9,524
Other liabilities-non current	Subsidiary-TTBIO	19,046	28,570
Total		$28,570	$38,094

The Company has entered into a patent and trademark licensing agreement with its subsidiary, TTBIO Co., Ltd. For the amount of income recognized, please refer to Note 6(18).

L. Advance receipts of management service income

Item	Related Party Category / Name	December 31
		2025	2024
Other liabilities-current	Subsidiary-AE INC.	$ -	$19

M. Deposits received

Item	Related Party Category / Name	December 31
		2025	2024
Deposits received	Subsidiary-TTSOLUTIONS	$420	$420

N. Provide endorsements and guarantees for related parties

Related Party Category	December 31
	2025	2024
Subsidiary-TTSOLUTIONS	$140,000	$126,525
Subsidiary-TTBIO	50,000	40,000
Subsidiary-AE INC.	65,354	41,521
Subsidiary-CADCAM	10,000	-
Total	$265,354	$208,046

O. Related parties provide endorsements and guarantees

Related Party Category	December 31
	2025	2024
Subsidiary-TT(USA)	$120,000	$ 120,000

P. In order to strengthen the recovery schedule of Thunder Tiger (Ningbo)'s creditor's rights, the company passed a resolution in board meeting on July 24, 2019 to transfer the loan of US$1,317.2 thousand from Thunder Tiger (Ningbo) to the wholly-owned Shanghai Thunder Tiger Solutions Trading Co., Ltd., Shanghai Thunder Tiger Solutions Trading Co., Ltd. filed a lawsuit against Thunder Tiger (Ningbo) in the PEOPLE'S COURT of YUYAO Municipality, Zhejiang Province. For details, please refer to Note 9 (1).

Q. Acquisition of equity interest

2025:

Investee	Investment Increase		Shareholding Percentage
	Shares (thousand shares)	Amount	Before Offering	After Offering
TTBIO	5,056	$75,838	56.88%	62.35%
TTSOLUTIONS	66,317	$10	73.68%	73.68%
TBI	2,300	$52,900	-	1.30%
Koya	688	6,902	-	4.30%
Biotech-preferred stock

The transaction price of the aforementioned stock was determined based on the investee's expert valuation and agreed upon by both parties through negotiation. As of December 31, 2025, the transaction price has been fully settled.

2024:

Investee	Investment Increase		Shareholding Percentage
	Shares (thousand shares)	Amount	Before Offering	After Offering
CADCAM	15,000	$52,500	-	60.00%
MARINE PTY

(3) Key management compensation

Related Party Category	Year Ended December 31
	2025	2024
Salaries and other short-term employee benefits	$9,297	$11,432
Post-employment benefits	108	108
Total	$9,405	$11,540

PLEDGED ASSETS

Item	December 31
	2025	2024
Stock-TTBIO	$51,541	$97,353
Inventory	-	2,917
Property, plant and equipment	70,527	72,078
Investment properties	75,000	51,677
Restricted deposits (current financial assets at amortized cost)	30,329	23,914
Restricted deposits (noncurrent financial assets at amortized cost)	7,157	27,512
Total	$234,554	$275,451

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Commitments

A. The Summaries of the equity transfer agreement between the Company and Hong Kong Zhong Ze Culture Investment Holding Limited (Hong Kong Zhong Ze) were as follow:

a. The Company intended to sell 30% shares of Thunder Tiger (Ningbo). After negotiating with Beijing Zhong Ze Culture Investment Holding Limited (Beijing Zhong Ze), on March 27, 2017, the Company and Hong Kong Zhong Ze entered into an equity transfer agreement to sell all shares of its subsidiary, THUNDER TIGER MODEL(BVI)CO. LTD. (TT(BVI)), indirectly investing in 30% shares of Thunder Tiger (Ningbo), to Hong Kong Zhong Ze. The transaction price was USD$5,756 thousand and the buyer prepaid 50% of the price on April 30, 2017. The rest of the price was paid after the registration of the equity transfer was finished within 7 days after the agreement was resolved by the shareholders at their shareholders' meeting on June 2017. The terms stipulated in the agreement were as follow:

(a) The final payment of 50% of the price should be paid within 7 days after the delivery date (the registration date in the government of British Virgin Islands).

(b) Within 7 days after the delivery date, if Hong Kong Zhong Ze didn't pay the final payment, the Company would issue a written notice and enter the negotiation process with Hong Kong Zhong Ze. If Hong Kong Zhong Ze still couldn't pay the final payment because of its reasons, both parties would reach an agreement to cancel the transaction and the registration of TT(BVI) would return to the original registration. Hong Kong Zhong Ze couldn't ask for the return of the deposit.

(c) Both parties should provide all documents needed for registration of the equity transfer before June 30, 2017. If the Company couldn't provide the documents needed for the registration of the equity transfer, the Company should pay the double amount of the deposit to Hong Kong Zhong Ze on July 1, 2017.

b. The Company and Hong Kong Zhong Ze signed “The supplementary agreement of the equity transfer agreement and the lawyer witness statement” on April 28, 2017. On the same date, Beijing Zhong Ze remitted USD$2,878 thousand, 50% of the price of the transaction, to the witness account of BEIJING CHAI&FU LAW FIRM, which was appointed by both parties. BEIJING CHAI&FU LAW FIRM, as the custodian of the deposit, protected both parties’ rights and the safety of the deposit and would return the deposit to Hong Kong Zhong Ze immediately after Hong Kong Zhong Ze remitted the price (in US dollars) of the equity transfer agreement to the Company’s account. If Hong Kong Zhong Ze failed to remit the price to the Company’s account, appointed lawyer firm should keep the deposit in its custody and fulfill the obligation according to the original agreement.

c. Because both parties couldn't finish the administrative process before June 30, 2017, the Company and Hong Kong Zhong Ze signed “The second supplementary agreement of the equity transfer agreement and the lawyer witness statement and commitment”. ZHANG, FU-GANG and XIA, XIANG-LU from BEIJING CHAI&FU LAW FIRM served as the witness and promisor, respectively. Before June 30, 2017, Hong Kong Zhong Ze should remit 15% of the price as earnest money, which was USD$863 thousand, and 50% of the price, which was USD$2,878 thousand, to the account of BEIJING CHAI&FU LAW FIRM, which was appointed by both parties. Both parties agreed the latest delivery date was August 5, 2017, and Hong Kong Zhong Ze should remit 100% of the price to the account appointed by the Company in Mega International Commercial Bank. The Company should finish the registration process of the equity transfer within 7 days after receiving the payment. If Hong Kong Zhong Ze failed to fulfill the obligation, BEIJING CHAI&FU LAW FIRM promised to remit 100% of the price (USD$5,756 thousand) and earnest money (USD$863 thousand) in RMB to the account appointed by the Company in China before August 10, 2017. The Company should finish equity settlement before August 17, 2017. As of June 30, 2017, Beijing Zhong Ze had remitted RMB$46,000 thousand (equal to USD$6,619 thousand) to the custody account of BEIJING CHAI&FU LAW FIRM on behalf of Hong Kong Zhong Ze.

d. On May 11, 2018, the Company and Thunder Tiger (Ningbo) entered into the agreement to transfer prepayment (USD$1,317.2 thousand) prepaid to Thunder Tiger (Ningbo) to financing provided.

e. On June 28, 2018, the Company received RMB$1,000 thousand, the first payment of the equity transfer agreement from Hong Kong Zhong Ze.

f. On January 3, 2019, the Company, TT(BVI), Thunder Tiger Aircraft Co., Ltd. (indirectly owned by Hong Kong Zhong Ze) and Hong Kong Zhong Ze jointly signed “the third supplementary agreement of the equity transfer agreement” to modify the object of the equity transfer agreement from 100% shares of TT(BVI) to 30% shares of Thunder Tiger (Ningbo). The parties also jointly signed “the agreement of investing in Thunder Tiger Automobile Industry Co., Ltd.” to invest in

— 57 —

Thunder Tiger Automobile Industry Co., Ltd. with the following amount: (a) USD$6,474 thousand, total amount of USD$5,756 thousand from selling 30% shares of Thunder Tiger (Ningbo) plus the earnest money USD$863 thousand and deduct RMB$1,000 thousand (equal to USD$145.2 thousand) paid by Hong Kong Zhong Ze on June 2018; (b) USD$1,351.8 thousand, total amount of USD$1,317.2 thousand plus interest USD$ 34.6 thousand from financing provided to Thunder Tiger (Ningbo). After the Company received by appointed account the total amount, USD$7,826 thousand (equal to RMB$54,103.7 thousand), and the terms of the investing agreement were fulfilled, the Company invested in Thunder Tiger Automobile Industry Co., Ltd. and the Company's subsidiary, Shang Hai Thunder Tiger Solutions Trading Co., Ltd, would gain 1.3526% shares of Thunder Tiger Automobile Industry Co., Ltd. Because Thunder Tiger Aircraft Co., Ltd. failed to pay for the price of the investing agreement and provide the verification report before February 20, 2019, Thunder Tiger Aircraft Co., Ltd. couldn't fulfill the effective terms of the investing agreement. On March 20, 2019, the Company issued a letter of demand to Thunder Tiger Aircraft Co., Ltd. and negotiated with Thunder Tiger Aircraft Co. to extend the deadline of payment. If Thunder Tiger Aircraft Co., Ltd. still failed to fulfill the effective terms of the investing agreement, all entities participating in the investing agreement would reach an agreement to terminate the investing agreement and the effective agreement would be the equity transfer agreement.

g. As of May 20, 2019, because Zhong Ze Group didn't fulfill the effective terms of the investing agreement of Thunder Tiger Automobile Industry Co., Ltd., the Company terminated the execution of the investing agreement pursuant to the resolution of Board of Directors' meeting held on May 31, 2019 and commissioned lawyer to issue the termination notice of the investing agreement and the third supplementary agreement of the equity transfer agreement, which was signed based on the premise of fulfillment of Investing in Thunder Tiger Automobile Industry Co., Ltd. The Company also notified Hong Kong Zhong Ze to pay the debt of the equity transfer agreement and earnest money according to the terms of the equity transfer agreement and "The second supplementary agreement of the equity transfer agreement and the lawyer witness statement and commitment".

h. After the termination notice was sent, the valid agreement was "The second supplementary agreement of the equity transfer agreement and the lawyer witness statement and commitment". To protect the Company's rights and interests, the Company commissioned lawyer in Beijing to execute the recourse of the price of the equity transfer agreement, the financing provided, and prepayment pursuant to the resolution of Board of Directors' meeting held on May 31, 2019. According to the terms of the equity transfer agreement, the Company submitted a dispute for arbitration to China International Economic and Trade Arbitration Commission (Arbitration Commission), and the arbitration was filed on August 23, 2019. BEIJING CHAI&FU LAW FIRM was jointly liable for the obligation borne by Hong Kong Zhong Ze, which was USD$6,474 thousand, the total amount of USD$5,756 thousand plus the earnest money USD$863 thousand and deduct RMB$1,000 thousand (equal to USD$145.2 thousand). The arbitral proceedings started on October 24, 2019 and the certificate of final ruling of civil property preservation was executed to frozen the account of BEIJING CHAI&FU LAW FIRM,

—58—

which was authorized by THE THIRD INTERMEDIATE PEOPLE'S COURT OF BEIJING on October 8, 2019. On October 9, 2019, the Company added the requests to the arbitration to confirm “the third supplementary agreement of the equity transfer agreement and the investing agreement of Thunder Tiger Automobile Industry Co., Ltd.”, which were jointly signed by the Company, Hong Kong Zhong Ze and Thunder Tiger Aircraft Co., Ltd., would be terminated. The requests newly added to the arbitration was filed on December 2019 and January 2020, respectively. Arbitration Commission started arbitral proceedings on July 8, 2021. About the arbitration of the dispute caused by the equity transfer agreement and the investing agreement, the Company obtained the arbitration award of the termination of the investing agreement on August 27, 2021. About the arbitration of the equity transfer agreement, on August 27, 2021, the decision of the arbitral tribunal confirmed the existence of the transaction and obligation but didn't support the requests of the applicant. The arbitral tribunal decided that TT(BVI) had the right to demand reimbursement from Thunder Tiger Aircraft Co., Ltd. On December 15, 2021, according to the demand of arbitral tribunal, the Company submitted related documents to China International Economic and Trade Arbitration Commission to file for another arbitration, File No. S20212970, to protect legal rights by TT(BVI) demanding reimbursement from Thunder Tiger Aircraft Co., Ltd. On April 21, 2022, the arbitral tribunal started the first arbitral proceedings. On September 6, 2022, the arbitral tribunal started the second arbitral proceedings. The Company obtained the arbitral award, No. 0899, from China International Economic and Trade Arbitration Commission on April 21, 2023. The Commission supported the Company's arbitral demand and sentenced Thunder Tiger Aircraft Co., Ltd. to pay the Company USD$6,474 thousand as the price of the transaction. Nowadays, the appointed lawyer has filed an injunction with THE FOURTH INTERMEDIATE PEOPLE'S COURT OF BEIJING and completed register to execute the recourse of creditor's right.

i. Through Arbitration Commission, the Company applied to the court for a measure to preserve the property (USD$6,474 thousand) in the account of BEIJING CHAI&FU LAW FIRM. On August 23, 2019, Arbitration Commission submitted the Company's application of property preservation to THE THIRD INTERMEDIATE PEOPLE'S COURT OF BEIJING and the certificate of final ruling of civil property preservation was executed to frozen the account of BEIJING CHAI&FU LAW FIRM, which was authorized by THE THIRD INTERMEDIATE PEOPLE'S COURT OF BEIJING on October 23, 2019. According to the arbitral award on August 27, 2021, THE THIRD INTERMEDIATE PEOPLE'S COURT OF BEIJING terminated related property preservation of the account of BEIJING CHAI&FU LAW FIRM.

j. The Company transferred the accounts receivable from Thunder Tiger (Ningbo) USD$1,317.2 thousand and prepayment to subsidiary to Shang Hai Thunder Tiger Solutions Trading Co., Ltd., to shorten the timing of the debt recovery pursuant to the resolution of Board of Directors' meeting held on July 24, 2019. Shang Hai Thunder Tiger Solutions Trading Co., Ltd., Chinese domestic enterprise, filed a lawsuit in PEOPLE'S COURT OF ZHEJIANG YUYAO against Thunder Tiger (Ningbo). On September 26, 2019, the lawsuit went into the trial process. On August 5, 2019, PEOPLE'S COURT OF ZHEJIANG YUYAO announced the property preservation of RMB$ 9,570 thousand of Thunder Tiger (Ningbo). On July 31, 2020, the

— 59 —

Company's requests were rejected on court of first instance and the Company immediately filed an appeal before appeal deadline. The Company filed an appeal on August 6, 2020, and paid for the fees notified by the court on August 21, 2020. The Company finished the notarization process of the evidence needed for court of second instance with lawyer and submitted the evidence to INTERMEDIATE PEOPLE'S COURT OF NINGBO. On May 8, 2021, INTERMEDIATE PEOPLE'S COURT OF NINGBO initiated the second trial of the case of Thunder Tiger (Ningbo). On May 31, 2021, the Company was notified by INTERMEDIATE PEOPLE'S COURT OF NINGBO that on June 16, 2021, another trial would initiate. On August 17, 2021, court of second instance confirmed the fact of transaction and the amount of the obligation, however, because the arbitration related to the case hadn't obtained an arbitral award, the original judgment was upheld. On September 13, 2021, to protect the Company's rights and interests, the Company submitted the arbitration award related to the case and finished the application for the rehearing action. The case was filed with rehearing action No. 2021 Zhe Min Shen No.4261. On December 31, 2021, the case went into the trial process at HIGH PEOPLE'S COURT OF ZHEJIANG. On June 21, 2021, the Company submitted the application of extension of the deadline of property preservation to the court because previous property preservation was about to expire. According to the judgement on August 17, 2021, INTERMEDIATE PEOPLE'S COURT OF NINGBO terminated the related property preservation. On June 30, 2022, HIGH PEOPLE'S COURT OF ZHEJIANG announced the Company wined the suit. On August 12, 2022, compulsory enforcement was filed by PEOPLE'S COURT OF ZHEJIANG YUYAO and on November 29, 2022, the first certificate of ruling of compulsory enforcement was issued. Nowadays, the appointed lawyer has filed a lawsuit to revoke Thunder Tiger (Ningbo)'s distribution of the relevant land auction price in PEOPLE'S COURT OF ZHEJIANG YUYAO. This case was on trial on March 11, 2024, the appointed lawyer appeared in court and applied to the court that the lawsuit transferred to INTERMEDIATE PEOPLE'S COURT OF ZHEJIANG NINGBO, however, received rejection from the Court. PEOPLE'S COURT OF ZHEJIANG YUYAO had been on trail on July 19, 2024, the appointed lawyer appeared in court to safeguard the creditor's right of the Company. Received the judge form PEOPLE'S COURT OF ZHEJIANG YUYAO on October 8, 2024, the Court did not support the Company's claim. The appointed lawyer appealed to a higher court in October, 2024. INTERMEDIATE PEOPLE'S COURT OF ZHEJIANG NINGBO has been on a trail on January 20, 2025, and the appointed lawyer appeared in court to provide new evidence to the judge. On March 18, 2025, we received the second-instance judgment from INTERMEDIATE PEOPLE'S COURT OF NINGBO, and our claims were not supported by the court. The company has appointed lawyers to file an appeal on September 11, 2025.

k. At the same time, the Company demanded Thunder Tiger (Ningbo) to return the mold and the equipment in the custody of Thunder Tiger (Ningbo). On April 12, 2021, the preparatory proceeding was conducted at Taiwan Taichung District Court. On May 21, 2021, oral-argument sessions started. The original schedule of the trial was June 18, 2021 and July 23, 2021. Because of the COVID-19 pandemic, the trial was canceled. On July 23, 2021, the Company was notified by Taiwan Taichung District Court oral-argument sessions would be held on August 6, 2021. On

— 60 —

October 1, 2021, oral-argument sessions was finished at Taiwan Taichung District Court and the judgement was made by the court that Thunder Tiger (Ningbo) should pay USD$1,550,057 to the Company, on October 15, 2021. The Company submitted the certificate to the effect that the judgment has become final and binding and finished the notarization process in China and R.O.C. On July 21, 2022, a trial initiated in INTERMEDIATE PEOPLE'S COURT OF NINGBO. The number of the case was (2022) Ze 02 Ren Tai No.2 and the Company obtained the certificate of final ruling of property preservation of Thunder Tiger (Ningbo) with the amount of RMB$9,874 thousand. On November 2, 2022, INTERMEDIATE PEOPLE'S COURT OF NINGBO issued the certificate of final ruling of (2022) Ze 02 Ren Tai No.2-1 and confirmed the certificate of final ruling of No. 609 Civil Judgment in 2019 issued by Taiwan Taichung District Court. HIGH PEOPLE'S COURT OF ZHEJIANG threw out Thunder Tiger (Ningbo)'s objection on February 27, 2023, and issued the certificate of final ruling of (2022) Ze Fu Ren No.2. The Company completed the notarization and attestation of compulsory execution procedure against Thunder Tiger (Ningbo) on April 13, 2023. The continuation would be appointed to Mainland China's lawyer to apply for execution.

B. On June 21, 2017, the Company, Hong Kong Zhong Ze and Thunder Tiger Aircraft Co., Ltd. jointly signed the agreement about the authorization of copyright of Robo Hero robot.

a. The Company exclusively authorized Hong Kong Zhong Ze to use the technology of Robo Hero robot, including its patent right, trademark right, proprietary technology and intellectual property right, with the price of NTD$5,000 thousand. After Hong Kong Zhong Ze paid 50% of the price within 15 days, the Company delivered the use rights of Robo Hero robot to Hong Kong Zhong Ze. Hong Kong Zhong Ze should pay the final amount of the price within 30 days after first production of 300 Robo Hero robots. The agreement declared that Hong Kong Zhong Ze and its associates were exclusive licensed to produce Robo Hero robots in China. In the area outside China, the Company still had the ownership of the technology and exclusive right to use the technology. The Company committed that it wouldn't authorize the third party to use the Robo Hero technology except the agreement clearly agreed to authorize others to use the technology.

b. Hong Kong Zhong Ze and its associates had exclusive marketing rights to sell the products in China, Africa and South America and the Company had exclusive marketing rights in Southeast Asia, America, Japan, and Taiwan. When Hong Kong Zhong Ze started to sell Robo Hero robots, 6% of the price (FOB) of Robo Hero robot each sold would be charged by the Company as royalty. If the total amount sold in one year didn't reach 3,000, 6% of total selling price of 3,000 Robo Hero robots would be charged as royalty. The licensing duration was five years. When licensing duration expired, the agreement automatically extended five years if both parties had no disagreement. If any party had disagreement, opinion should be proposed 6 months before the contract expired. The authorization terms after the agreement expired would be negotiated by both parties. One year after the agreement became effective, any party could terminate the agreement before expiration date by notifying the other party one month before the termination. Upon termination of the agreement, the Parties shall have no further obligations or liabilities thereafter.

— 61 —

(2) Contingencies

The Company’s Subsidiary, TTSOLUTIONS, INC, and key account of Associated Electrics, Inc., Great Planes and Axial, were subsidiary of Hobbico, INC. On January 10, 2018, Hobbico, INC. applied for reorganization according to Title 11 of Code of Laws of the United States of America. On February 23, 2018, TTSOLUTIONS, INC obtained critical vendor status and signed the contract of critical vendor and the contract of offset with Hobbico, INC. As of December 31, 2021, the Group still had accounts receivable of USD$429 thousand, and the Company commissioned ASSOCIATED ELECTRICS (TAIWAN), INC., subsidiary of Associated Electrics, Inc. to submit the application to the court for executing the provisional seizure of the property. On November 8, 2019, the case was filed as Kuo Mao No.3 in 2019 at Taiwan New Taipei District Court. On November 8, 2019, the ruling of the provision seizure of property was made by the court. The case number was No. 1358 Judicial Ruling in 2019 issued by Taiwan New Taipei District Court. On February 9, 2023, Taiwan New Taipei District Court initiated the trial, and the Company won the suit. The Company had obtained the certificate of judgment quod recuperet on March 7, 2023. Besides, obtained Court's Final Verdict on December 18, 2023. Nowadays, the courts appointed appraisal companies to inspect the molding tools and expected to auction collateral for reversal of creditor’s rights.

(3) Capital expenditures committed but not yet incurred are as follows:

Item	December 31
	2025	2024
Property, plant and equipment	$592,986	$20,506

(4) As of December 31, 2025 and 2024, the Company issued guarantee notes for bank loans and performance amounted to $42,000 thousand and $42,000 thousand, respectively.

(5) As of December 31, 2025 and 2024, guarantees provided to banks by the Company for unmanned helicopter construction plan and the repayment guarantee of Ministry of National Defense prepayment of unmanned drone of Taiwan Small & Medium Enterprise Counseling Foundation amounted to $15,630 thousand and $24,817 thousand, respectively.

SIGNIFICANT DISASTER LOSS: NONE.
SIGNIFICANT SUBSEQUENT EVENTS: NONE.
OTHERS

(1) Capital risk management

The Company’s managing capital is based on industry scale of operating business, taking into consideration of the industry future growth and product developments, and sets up an appropriate market share, according to that, plans corresponding capital expenditure. In addition to calculate demanded working capital based on financial operating plans, and finally determine an appropriate capital structure by considering operating income and cash flow arising from product competitiveness.

(2) Financial instruments

A. Financial risk of financial instruments

Financial risk management policies

The Company’s activities expose to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To lower down the related financial risk, the Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial position and financial performance.

The plans for material treasury activities are reviewed by board of directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, the Company Treasury function must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.

Significant financial risks and degrees of financial risks

a. Market risk

Foreign exchange rate risk

(a) The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company used in various functional currency, primarily with respect to the USD. Foreign exchange rate risk arises from future commercial transactions and recognized assets and liabilities.

(b) The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.

(c) The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: TWD. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	Foreign Currency	Exchange Rate	December 31, 2025
			Carrying Value (NTD)	Sensitivity Analysis
				Variation	Profit and Loss Impact	Equity Impact
Financial assets
Monetary item
USD:NTD	7,217	31.42	226,746	increase 1%	2,267	-
RMB:NTD	664	4,496	2,985	increase 1%	30	-
Financial liabilities
Monetary item
USD:NTD	8	31.42	258	increase 1%	-	-

December 31, 2024

	Foreign Currency	Exchange Rate	Carrying Value (NTD)	Sensitivity Analysis
				Variation	Profit and Loss Impact	Equity Impact
Financial assets
Monetary item
USD:NTD	7,132	32.78	233,778	increase 1%	2,338	-
RMB:NTD	643	4.478	2,881	increase 1%	29	-
ILS:NTD	1,369	8.9942	12,310	increase 1%	123	-
Financial liabilities
Monetary item
USD:NTD	27	32.78	892	increase 1%	(9)	-

When New Taiwan dollar appreciates and other variation factors stay unchanged, there will be the same but opposite amount of influence as of December 31, 2025 and 2024.

Due to the exchange rate volatility, total exchange gain and loss (including realized and unrealized) from the Company's monetary items amounted to $1,300 thousand and $5,917 thousand for the years ended December 31, 2025 and 2024, respectively.

Price risk

Since the Company's investment in securities is classified as financial assets at FVTPL and financial assets at FVTOCI on the parent company only balance sheet, the Company expose to price risks of securities.

The Company mainly invests in domestic listed, foreign listed and unlisted stocks and beneficiary certificates. The price of such securities can be affected by changes in future value of those investment targets.

If the security price goes up or down by 1%, the post-tax income for the years 2025 and 2024 will increase or decrease by $1,116 thousand and $872 thousand due to the increase or decrease of the fair value of financial assets measured at FVTPL. the post-tax other comprehensive income for the years 2025 and 2024 will increase or decrease by $2,507 thousand and $1,694 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

Cash flow and fair value interest rate risk

(a) The Company's interest rate risk arises from short - term and long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. During the years ended December 31, 2025 and 2024, the Company's borrowings at variable rate were denominated in NTD.

(b) The Company analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios, the Company calculates the impact on profit and loss of a defined interest rate shift.

(c) As of December 31, 2025 and 2024, if interest rates on NTD-denominated borrowings at that date had been 1‰ higher with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024, would have been ($205) and ($307) higher (lower), respectively.

b. Credit risk

(a) Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost.

(b) The Company manages their credit risk taking into consideration the entire Company’s concern. For banks and financial institutions, examining deposit credit, only rated with good grade are accepted. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the management. The utilization of credit limits is regularly monitored.

(c) The Company adopts the assumptions under IFRS 9, there has been a significant increase in credit risk on that instrument since initial recognition, when the contract payments were past due over 30 days.

(d) If the credit rating grade of an investment target degrades two scales, there has been a significant increase in credit risk on that instrument since initial recognition.

(e) The Company adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.

(f) The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

(1) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties.

(2) The disappearance of an active market for a security because of financial difficulties.

(3) Default or delinquency in interest or principal repayments;

(4) Adverse changes in national or regional economic conditions that are expected to cause a default.

(g) The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse to secure their rights.

(h) The Company applies the simplified approach using the provision matrix, loss rate methodology to estimate expected credit loss. The Company uses the forecast ability of conditions to adjust historical and timely information to assess the default possibility of

— 65 —

accounts receivable. Movements in relation to the Company applying the simplified approach to provide loss allowance for notes receivable and accounts receivable are as follows:

	Individual	Group	Total
December 31, 2025
Expected loss rate	100.00%	0.62%
Total book value	$41,256	$119,649	$160,905
Loss allowance	41,256	740	41,996
	Individual	Group	Total
December 31, 2024
Expected loss rate	100.00%	1.58%
Total book value	$43,042	$50,933	$93,975
Loss allowance	43,042	805	43,847

Movements in loss allowance for notes and accounts receivable are as follows:

Item	Year Ended December 31
	2025	2024
Beginning balance	$43,847	$41,088
Add: provision for impairment loss	(1,851)	2,759
Ending balance	$41,996	$43,847

(i) Movements in loss allowance for other receivables measured at amortized cost are as follows:

Item	Year Ended December 31
	2025	2024
Beginning balance	$168,260	$145,099
Add: provision for impairment loss	7,541	23,161
Ending balance	$175,801	$168,260

(1) The attribution of the equity transfer agreement has been filed and the arbitral proceedings has started. According to the evaluation of the lawyer, the case was clear, and the evidence was sufficient. The possibility the requests made by the Company been supported was great. The court has made the final ruling of civil property preservation of the account of BEIJING CHAI&FU LAW FIRM. Besides, the respondent Hong Kong Zong Ze has assets and operates normally, therefore, the possibility of reclaiming share transfer receivable is high. The Company referred to the historical operating data of Thunder Tiger (Ningbo) to evaluates the possible impairment of the accounts receivable by the method of Investments accounted for using equity method continuously recognizing investing loss. After evaluating the case, the Company recognized impairment loss for the years ended December 31, 2025 and 2024 were NTD$7,541 thousand NTD$23,161 thousand, respectively. As of December 31, 2025, an impairment losses has been fully recognized.

(2) The case of financing provided for Thunder Tiger (Ningbo) of USD$1,317.2 thousand has been filed for lawsuit and the court has initiated the trial. On July 31, 2020, the Company's requests were rejected on court of first instance. After evaluating the case, the Company recognized impairment loss for the year ended December 31, 2020, were

NTD$12,295 thousand. As of December 31, 2020, the Company has recognized the impairment loss of the total amount of financing provided amounted to $37,516 thousand. The Company wrote off the accumulated impairment amounted to $37,516 thousands of the financing provided pursuant to the resolution of Board of Directors' meeting held on January 28, 2021. The Company would continue to execute the recourse of the creditor's rights.

c. Liquidity risk

(a) Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company's debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets.

(b) Surplus cash held by the units over and above balance required for working capital management are transferred to the Company treasury. Company treasury invests surplus cash in interest bearing current accounts and time deposits, choosing instruments with appropriate maturities of sufficient liquidity to provide sufficient head-room as determined by the aforementioned forecasts.

The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods.

Non-derivative Financial Liabilities	December 31, 2025
	Within 3 months	3 months-1 year	1-2 years	2-5 years	Over 5 years	Contract Cash Flow	Carrying Value
Short-term loans	$50,000	$135,000	$ -	$ -	$ -	$185,000	$185,000
Accounts payable	30,193	-	-	-	-	30,193	30,193
Other payables	33,821	-	-	-	-	33,821	33,821
Lease liabilities	5,582	16,745	22,326	65,013	73,121	182,787	162,336
Long-term loans (Inclusive of current portion)	7,685	23,144	30,257	15,936	13,089	90,111	90,111
Deposits received	-	-	-	420	-	420	420
Total	$127,281	$174,889	$52,583	$81,369	$86,210	$522,332	$501,881

Further information for lease liabilities with repayment periods was as follows:

Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	Undiscounted payments
Lease liabilities	$22,327	$87,339	$73,121	$ -	$ -	$ -	$182,787

December 31, 2024

Non-derivative Financial Liabilities	Within 3 months	3 months-1 year	1-2 years	2-5 years	Over 5 years	Contract Cash Flow	Carrying Value
Short-term loans	$77,750	$125,561	$ -	$ -	$ -	$203,311	$203,311
Notes payable	2,647	-	-	-	-	2,647	2,647
Accounts payable	47,653	-	-	-	-	47,653	47,653
Other payables	28,006	-	-	-	-	28,006	28,006
Lease liabilities	3,958	11,874	15,832	47,461	63,860	142,985	125,324
Long-term loans (Inclusive of current portion)	19,974	46,909	62,584	65,281	28,362	223,110	222,990
Deposits received	-	-	-	420	-	420	420
Total	$179,988	$184,344	$78,416	$113,162	$92,222	$648,132	$630,351

Further information for lease liabilities with repayment periods was as follows:

Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	Undiscounted payments
Lease liabilities	$15,832	$63,293	$63,860	$ -	$ -	$ -	$142,985

The Company does not expect a maturity analysis of which the cash flows timing would be significantly earlier, or the actual amount would be significantly different.

B. Categories of financial instruments:

Financial assets	December 31
	2025	2024
Financial assets measured at amortized cost
Cash and cash equivalents	$54,923	$76,618
Financial assets at amortized cost-current	30,329	23,914
Notes and accounts receivable	118,909	50,128
(including related parties)
Other receivables (including related parties)	6,038	12,782
Financial assets at amortized cost – non current	7,157	27,512
Refundable deposits	8,811	7,909
Financial assets at FVTPL - current	111,591	87,231
Financial assets at FVTOCI - non current	250,682	169,420
Financial liabilities
Financial liabilities measured at amortized cost
Short-term loans	185,000	203,311
Notes and accounts payable	30,193	50,300
(including related parties)
Other payables (including related parties)	33,821	28,006
Long-term loans	90,111	222,990
Lease liabilities	162,336	125,324
Deposits received	420	420

(3) Fair value information of financial instruments

A. Details of the fair value of the Company’s financial assets and financial liabilities not measured at fair value are provided in Note 12(3)B. Details of the fair value of the Company's investment property measured at cost are provided in Note 6(13).

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

Level 1: Quoted prices in active markets for identical assets or liabilities (unadjusted).

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

Level 3: Unobservable inputs for the asset or liability.

B. Financial instruments that are not measured at fair value:

The Company considers that the carrying amounts of financial instruments including financial assets at amortized cost, cash and cash equivalents, receivables, refundable deposits, short-term loans, payables and lease liabilities that are not measured at fair value approximate their fair values. Since the interest rate of long-term loans is close to the market interest rate, the carrying amount should be a reasonable basis for estimating the fair value.

C. Fair value hierarchy of financial assets measured at fair value

The fair value hierarchy of financial instrument is measured at fair value on a recurring basis. Information about the Company’s fair value hierarchy was disclosed in the following table:

Item	December 31, 2025
	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value
Financial assets measured at FVTPL
Domestic listed stocks	$7,980	$ -	$ -	$7,980
Foreign listed stocks	103,611	-	-	103,611
Financial assets measured at FVTOCI
Domestic listed stocks	47,840	-	-	47,840
Domestic unlisted stocks	-	-	202,842	202,842
Total	$159,431	$ -	$202,842	$362,273

Item	December 31, 2024
	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value
Financial assets measured at FVTPL
Domestic listed stocks	$10,486	$ -	$ -	$10,486
Foreign listed stocks	76,745	-	-	76,745
Financial assets measured at FVTOCI
Domestic listed stocks	53,820	-	-	53,820
Domestic unlisted stocks	-	-	115,600	115,600
Total	$141,051	$ -	$115,600	$256,651

D. Valuation techniques of financial instruments valued at fair value

(a) The fair value of financial assets and liabilities traded in an active market is based on the quoted market prices. The quotation, which is published by the main exchange center or that which was deemed to be a public bond by the Treasury Bureau of Center Bank, is included in the fair value of the listed securities instruments and the debt instruments in active markets with open bid.

A financial instrument is regarded as the quoted price in an active market if the quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency; and if those prices represent the actual and regularly occurring market transactions on an arm's length basis. Otherwise, the market is deemed to be inactive. Normally, a market is considered to be inactive when the bid-ask spread is increasing; or the bid-ask spread varies significantly; or there has been a significant decline in trading volume.

The fair value of financial instruments with active markets held by the Company are stated by their natures and types as follows:

a. Listed stocks: closing price.

(b) Except for the aforementioned financial instruments traded in an active market, the fair value is based on the valuation techniques or the quotation from the counterparty. The fair value refers to the current fair value of the other financial instruments with similar conditions and characteristics, using a discounted cash flow analysis or other valuation techniques, such as calculations of using models, based on the information acquired from the market at the balance sheet date.

The fair value of the Company's holding of unlisted stocks for which had no active market exists is estimated by using the market approach, which refers to the valuation of similar entities, quoted prices from a third party, the net worth of an entity and the operating performance. Significant unobservable inputs used to measure fair value are listed in the table below:

December 31, 2025:

Item	Measurement technique	Major unobservable input value	interval	Relationship between input value and fair value
Financial assets at fair value through other	Asset Value Method	Lack of control discount rate	21.81%	The higher the degree of lack of control, the lower the fair
	Market Approach	Lack of liquidity discount rate	21.19%	The higher the degree of lack of liquidity, the lower the fair
	Income Approach	Discount rate	13.08%	The higher the discount rate, the lower the fair value
December 31, 2024:
Item	Measurement technique	Major unobservable input value	interval	Relationship between input value and fair value
Financial assets at fair value through other comprehensive income or loss - stock	Asset Value Method	Lack of control discount rate	21.81%	The higher the degree of lack of control, the lower the fair value estimate
	Market Approach	Lack of liquidity discount rate	23.41%	The higher the degree of lack of liquidity, the lower the fair value estimate

E. Transfer between Level 1 and Level 2: None.

F. Changes in Level 3 instruments:

Item	Investment in unquoted financial instruments
	2025	2024
Beginning balance	$115,600	$114,080
Acquisition	59,760	-
Recognized in other comprehensive income	27,482	1,520
Ending balance	$202,842	$115,600

G. Valuation process for Level 3 fair value measurement:

Valuation process regarding fair value Level 3 is conducted by the Group's finance department, by which the independence of fair value of financial instruments is verified though use of independent data source in order to make the valuation results close to market conditions. Such valuation results are regularly reviewed so as to ensure their reasonableness.

(4) Transfer of financial assets:

Transferred financial assets fully derecognized: None.
Transferred financial assets not fully derecognized: None.

(5) Offset of financial assets and liabilities: None.
(6) Other:

On August 29, 2024, the Ministry of Environment announced the "Carbon Fee Collection Regulations," the "Voluntary Reduction Plan Management Regulations," and the "Designated Greenhouse Gas Reduction Targets for Carbon Fee Collection Entities," in October 2024, the Ministry also announced the carbon fee collection rate, effective since January 1, 2025. Our company's greenhouse gas emissions for 2025 did not exceed the carbon fee threshold; therefore, there is no need to estimate liabilities related to carbon emissions for 2025.

— 72 —

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans provided to other parties: Table 1.
B. Endorsements/guarantees provided: Table 2.
C. Marketable securities held: Table 3.
D. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Table 4.
E. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
F. Information about the derivative financial instruments transaction: None

(2) Information on investees: Table 5.

(3) Information on investments in Mainland China

A. Name of the invested company in Mainland China, main business items, paid-in capital, investment method, capital remittances and inflows, shareholding ratio, current period profits and losses and recognized investment profits and losses, period-end investment book value, investment income repatriated and Investment limits in mainland China: Table 6.
B. Significant transactions with investee companies in mainland China that occur directly or indirectly through third regions, as well as their prices, payment terms, unrealized gains and losses and other relevant information that are helpful in understanding the impact of investments in Mainland China on financial reports: None.

Table 1
THUNDER TIGER CORP.
LOANS PROVIDED TO OTHER PARTIES
DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

No. (Note 1)	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Interest Rate	Nature for Financing (Note 2)	Transaction Amounts	Reason for Financing	Allowance for Bad Debt	Collateral		Financing Limits for Each Borrowing Company (Note 3)	Financing Company's Total Financing Amount Limits (Note 4)
													Item	Value
0	THUNDER TIGER CORP.	Thunder Tiger (Ningbo) CORP. (Note 5)	Other receivables - Other	No	37,516 (USD 1,317)	37,516 (USD 1,317)	37,516 (USD 1,317)	5.25%	2	-	Operating capital	37,516	-	-	188,307	753,228

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1) The company is "0".
Note 2: Relationship with the borrower is classified into the following categories:
(1) The borrower having business relationship is numbered as "1".
(2) The borrower having the needs of short-term financing is numbered as "2".
Note 3: For trading partner: Shall not exceed 10% of the Company's net worth.
Note 4: Financing company's total financing amount limits: Shall not exceed 40% the Company's net worth.
Note 5: The case of financing provided for Thunder Tiger (Ningbo) of USD$1,317.2 thousand has been filed for lawsuit and the court has initiated the trial. As of December 31, 2020, the Company has recognized the impairment loss of the total amount of financing provided amounted to $37,516 thousand. The Company wrote off the accumulated impairment amounted to $37,516 thousand of the financing provided pursuant to the resolution of Board of Directors' meeting held on January 28, 2021. The Company would continue to execute the recourse of the obligation.

Table 2

THUNDER TIGER CORP.

ENDORSEMENTS/GUARANTEES PROVIDED

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

No. (Note 1)	Endorsers	Endorsees		Endorsement Limit for a Single Entity (Note 3)	Highest Balance During the Period	Ending Balance	Actual Amount Drawn	Balance Secured by Collaterals	Ratio of Accumulated Amount to net Worth of the Company	Maximum Amount of Endorsement (Note 3)	Provision of Endorsements by Parent Company to Subsidiary	Provision of Endorsements by Subsidiary to Parent Company	Provision of Endorsements to the Party in Mainland China
		Name of endorsees	Relationship (Note 2)
0	Thunder Tiger CORP.	AE INC.	2	753,228	67,175 (USD 2,200)	65,354 (USD2,080)	33,934 (USD 1,080)	-	3.47%	941,535	Y	N	N
		TTSOLUTIONS, INC.	2	753,228	140,000	140,000	65,000	-	7.43%	941,535	Y	N	N
		TTBIO CORP.	2	753,228	70,000	50,000	10,000	-	2.66%	941,535	Y	N	N
		CADCAM MARINE PTY LTD.	2	753,228	10,000	10,000	10,000	-	0.53%	941,535	Y	N	N
1	TT(USA) CORP.	Thunder Tiger CORP.	3	181,412	120,000	120,000	-	-	33.26%	217,694	N	Y	N

Note 1: The description of the number column is as follows:(1) The company is "0".
Note 2: The following code represents the relationship with the Company :
1. Trading partner.
2. The Company direct and indirect owns over 50% ownership of the investee company.
3. Directly and indirectly hold more than 50% of the company's equity.
4. A subsidiary jointly owned over 90% by the Company.
5. Guaranteed by the Company according to the construction contract.
6. An investee company. The guarantees were provided based on the Company's proportionate share in the investee company.
7. Joint and several guaranteed by the Company according to the pre-construction contract under Consumer protection Act.

Note 3: Endorsements/guarantees provided by the Company to a single enterprise shall not exceed 40% of the Company's net worth.

The maximum amount of the endorsements/guarantees provided by the Company shall not exceed 50% of the Company's net assets.

Endorsements/guarantees provided by TTUSA to a single enterprise shall not exceed 50% of its net worth on its recent financial report.

The maximum amount of the endorsements/guarantees provided by TTUSA shall not exceed 60% of its net assets on its current financial report.

Table 3
THUNDER TIGER CORP.
MARKETABLE SECURITIES HELD
DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

NO.	Investor	Type and Name of Securities	Relationship with the Issuer	General Ledger Account	Ending balance
					Number of Shares (in thousands)	Carrying Value	Percentage of Ownership	Fair Value
0	Thunder Tiger CORP.	Stock- Phihong Technology Co. Ltd	-	Financial assets at FVTPL - current	280	7,980	0.06%	7,980
		Stock- Parrot Drones S.A.S	-	Financial assets at FVTPL - current	250	68,371	0.82%	68,371
		Stock- Red Cat Holdings Inc	-	Financial assets at FVTPL - current	141	35,240	0.12%	35,240
		Total				111,591		111,591
		Stock-AGV Products Corporation	The chairman of the board of directors and the chairman of the company have a kinship within the second degree of kinship	Financial assets at FVTOCI - non-current	4,600	47,840	0.93%	47,840
		Stock-KOYA BIOTECH CORP.	The issuer's chairperson is the same as the Company's chairperson	Financial assets at FVTOCI - non-current	4,000	116,640	18.61%	116,640
		Stock-KOYA BIOTECH CORP.-preferred stock	The issuer's chairperson is the same as the Company's chairperson	Financial assets at FVTOCI - non-current	686	20,284	4.29%	20,284
		Taiwan First Biotechnology Inc.	The issuer's chairperson is the same as the Company's chairperson	Financial assets at FVTOCI - non-current	2,300	65,918	1.30%	65,918
		Total				250,682		250,682
1	TTBIO CORP.	Stock-KOYA BIOTECH CORP.	The issuer's chairperson is the same as the Company's chairperson	Financial assets at FVTOCI - non-current	10	291	0.05%	291
		Stock-KOYA BIOTECH CORP.-preferred stock	The issuer's chairperson is the same as the Company's chairperson	Financial assets at FVTOCI - non-current	4	124	0.03%	124
		Total				415		415

Table 4

THUNDER TIGER CORP.

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST

NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

| Company Name
Related Party | Nature of
Relationships | Transaction Details | | | | Abnormal Transaction | | (Notes/Accounts Payable)
Or Receivable | | Remarks | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Purchases/
Sales | Amount | % to
Total | Payment Terms | Unit Price | Payment Terms | Ending Balance | % to
Total | | |
| Thunder Tiger
CORP. | Taiwan First
Biotechnology
Inc. | Other related parties | Sales | 262,110 | 76.14% | Pursuant to the agreement | - | - | N/R 48,567
A/R 18,239 | 99.66%
16.24% | |
| TTSOLUTIONS,
INC. | AE INC. | The ultimate parent
company of both
companies are the
same. | Sales | 290,668 | 74.72% | Pursuant to the agreement | - | - | A/R 59,278 | 71.50% | |

Table 5
THUNDER TIGER CORP.
NAMES, LOCATIONS AND OTHER INFORMATION OF INVESTEE COMPANIES (EXCLUDING INVESTEE IN MAINLAND)
DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Remark
				As of December 31, 2025	As of December 31, 2024	Shares (In Thousands)	Percentage of Ownership	Carrying Value
Thunder Tiger CORP.	MF	Samoa	Investment holding	384,940	384,940	12,000	100.00%	410,230	(25,205)	(23,122)	Note 1
	TTBIO Corp.	Taiwan	Manufacturing, trading and maintenance of medical equipment	269,400	193,563	18,735	62.35%	223,625	(21,300)	(10,442)	-
	THUNDER TIGER ELECTRIC & ENGINEERING CORP.	Taiwan	Manufacturing and trading of green energy products	3,000	3,000	300	100.00%	(456)	(502)	(502)	-
	TTSOLUTIONS, INC.	Taiwan	Buying and selling of model products	31,318	31,308	147,365	73.68%	50,528	13,158	2,980	Note 1
	UPTOP	Samoa	Investment holding	-	-	50	100.00%	1	-	-	-
	Taiwan Swarm Innovation Inc.	Taiwan	Radio - controlled aircraft demonstration service	21,305	21,305	710	30.00%	24,034	11,815	2,055	Note 2
	CADCAM MARINE PTY LTD.	Taiwan	Manufacturing, trading and maintenance of boats and components	52,500	52,500	15,000	60.00%	45,846	(8,446)	(5,033)	Note 2
UPTOP	GM	British Virgin Islands	Investment holding	-	-	50	100.00%	1	-	-	-
MF	TT (USA)	USA	Investment holding	384,940	384,940	10,200	100.00%	436,827	(25,200)	(25,200)	Note 3
TT(USA)	AE INC.	USA	Sale and maintenance of model products	384,940	384,940	5	100.00%	308,891	(25,044)	(25,012)	Note 1

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Remark
				As of December 31, 2025	As of December 31, 2024	Shares (In Thousands)	Percentage of Ownership	Carrying Value
TT(USA)	TTI INC.	USA	Sale and maintenance of model products	147,379	147,379	4,600	100.00%	3,043	(1,309)	(1,309)	-
AE INC.	ASSOCIATED ELECTRICS (Taiwan). INC.	Taiwan	Wholesale of molds and telecommunications	13,860	13,860	-	100.00%	USD 28	(USD 71)	(USD 71)	-
TTSOLUTIONS, INC.	TT Media Technology, INC.	Taiwan	Buying and selling of model products	5,100	5,100	510	100.00%	12,780	3,836	3,836	-
THUNDER TIGER ELECTRIC & ENGINEERING CORP.	Hong Kong Thunder Tiger Innovation Co., LTD.	Hong Kong	Investment holding	2,170	2,170	-	100.00%	(1,119)	(494)	(494)	-
Hong Kong Thunder Tiger Innovation Co., Limited	Shanghai Thunder Tiger Solutions Trading Co., LTD.	China	Buying and selling commodities related to the Company's products	2,170	2,170	-	100.00%	(1,119)	(494)	(494)	-

Note 1 : The variance represents the elimination (turnover) of the investee company’s unrealized gross profit on sales.
Note 2 : The difference represents the current period apportionment of the purchase price.
Note 3 : The carrying amount does not include the amount of goodwill.

Table 6

THUNDER TIGER CORP.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

DECEMBER 31, 2025

(1) Mainland Investment Information:

(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee Company	Percentage of Ownership	Share of Profit/Loss	Carrying Amount as of December 31, 2025	Accumulated Inward Remittance of Earnings as of December 31, 2025
					Outflow	Inflow
Thunder Tiger (Ningbo) CORP.	Production and sales of aeronautical models, nautical models and other model car, aircraft, boats, two - stroke model engines, remote controls and other spare parts manufacturing.	$936,010	Note 1	$577,783	-	-	$577,783	-	30%	-	Note 3	-
Shanghai Thunder Tiger Solutions Trading Co., LTD.	Buying and selling commodities related to the Company's products	2,170	Note 5	2,170	-	-	2,170	(494)	100%	(494)	(1,119)	-
Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
---	---	---
$579,953	$579,953	-

Note 1: Set up a Company with an investment of US$18,000 thousand through a third-region and reinvest in the mainland,
Note 2: Thunder Tiger (Ningbo) CORP. is denominated in US dollars.
Note 3: On March 27, 2017, the Company and Hong Kong Zhong Ze Culture Investment Holding Limited (Hong Kong Zhong Ze) entered into an equity transfer agreement to sell all shares of its subsidiary, THUNDER TIGER MODEL(BVI)CO. LTD. The company has transferred the agreed price to other receivables on December 31, 2018. An impairment loss has been fully recognized on December 31, 2025.
Note 4: The investment amount approved by the Investment Review Committee of the Ministry of Economic Affairs and the cumulative investment amount remitted from Taiwan to the mainland at the end of the current period were both US$17,750 thousand.
Note 5: Reinvested in the mainland with US$70 thousand through third-region companies.

—80—

14. SEGMENT INFORMATION

The Company has provided the operating segments disclosure in the consolidated financial statements.

STATEMENTS OF MAJOR ACCOUNTING ITEMS
CONTENTS

Item	Statement Index
Statements of major accounting items in assets, liabilities and equity
Statement of cash and cash equivalents	P.83
Statement of financial assets at fair value through profit or loss – current list	P.84
Statement of current financial assets at amortized cost list	Note 6(3)
Statement of notes receivable	P.85
Statement of notes receivable - related parties	P.86
Statement of accounts receivable	P.87
Statement of accounts receivable - related parties	P.88
Statement of other receivables	P.89
Statement of other receivables - related parties	P.90
Statement of inventories	P.91
Statement of prepayments	Note 6(7)
Statement of other current assets	Note 6(8)
Statement of noncurrent financial assets at amortized cost	Note 6(3)
Statement of financial assets at fair value through other comprehensive income or loss - noncurrent	P.92
Statement of changes in investments accounted for using equity method	P.93
Statement of changes in property, plant and equipment	Note 6(11)
Statement of changes in accumulated depreciation of property, plant and equipment	Note 6(11)
Statement of changes in right-of-use assets	Note 6(12)
Statement of changes in accumulated depreciation of right-of-use assets	Note 6(12)
Statement of changes in investment properties	Note 6(13)
Statement of changes in accumulated depreciation of investment properties	Note 6(13)
Statement of changes in intangible assets	Note 6(14)
Statement of deferred income tax assets	Note 6(34)
Statement of other non-current assets	Note 6(15)
Statement of short - term loans	P.94
Statement of contract liabilities - current	P.95
Statement of accounts payables	P.96
Statement of accounts payables - related parties	P.97
Statement of other current liabilities	Note 6(18)
Statement of other payables	Note 6(17)
Statement of lease liabilities	Note 6(12)
Statement of long-term loans and current portion of long-term loans	P.98

— 81 —

Statement of deferred income tax liabilities	Note 6(33)
Statement of other non-current liabilities - other	Note 6(18)
Statements of major accounting items in profit or loss
Statement of net revenue	P.99
Statement of cost of revenue	P.100
Statement of factory overhead	P.101
Statement of sales and marketing expenses	P.102
Statement of general and administrative expenses	P.103
Statement of research and development expenses	P.104
Statement of other gains and losses	Note 6(30)
Statement of finance costs	Note 6(31)
Statement of labor, depreciation and amortization by function	Note 6(27)

—82—

THUNDER TIGER CORP.
STATEMENT OF CASH AND CASH EQUIVALENTS
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Item	Description	Amount	Remark
Cash	Cash	$165	USD 4
			JPY 134
	Petty cash	120
Subtotal		$285
Cash in banks	Checking accounts	$1,610
	Demand deposits	45,462
	Foreign deposits	3,566	USD 113
	Time deposits	4,000
Subtotal		$54,638
Total		$54,923

USD:NTD 1:31.42
JPY:NTD 1:0.20085

— 83 —

THUNDER TIGER CORP.
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT
DECEMBER 31, 2025

(In Thousands Shares & Thousands of New Taiwan Dollars)

Item	Description	Share or Unit	Acquisition Costs	Fair Value
				Price per Unit	Total
Domestic listed stocks
Phihong Technology Co. Ltd	Stocks	280	$13,944	28.50	$7,980
Foreign listed stocks
Parrot Drones S.A.S	Stocks	250	33,949	273.06	68,371
Red Cat Holdings Inc	Stocks	141	30,978	249.16	35,240
Total			$78,871		$111,591

—84—

THUNDER TIGER CORP.
STATEMENT OF NOTES RECEIVABLE
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)
Client Name	Description	Amount	Remark
Company A	Note of trade receivable	$25
Total		$25
Less: Allowance for impairment loss		-
Net		$25

— 85 —

THUNDER TIGER CORP.
STATEMENT OF NOTES RECEIVABLE - RELATED PARTIES
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount
TAIWAN FIRST	Note of trade	$48,567
BIOTECHNOLOGY INC	receivable
Total		$48,567
Less: Allowance for impairment loss		-
Net		$48,567

— 86 —

THUNDER TIGER CORP.
STATEMENT OF ACCOUNTS RECEIVABLE
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)
Client Name	Description	Amount	Remark
Company A	Trade receivable	$41,256
Company B	Trade receivable	46,690
Others	Under 5%	5,215
Total		$93,161
Less: Allowance for impairment loss		(41,996)
Net		$51,165

—87—

THUNDER TIGER CORP.
STATEMENT OF ACCOUNTS RECEIVABLE - RELATED PARTIES
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)
Client Name	Description	Amount	Remark
TAIWAN FIRST BIOTECHNOLOGY INC	Trade receivable	$18,239
Others	Under 5%	913
Total		$19,152
Less: Allowance for impairment loss		-
Net		$19,152

— 88 —

THUNDER TIGER CORP.
STATEMENT OF OTHER RECEIVABLES
DECEMBER 31, 2025

Item	Description	(In Thousands of New Taiwan Dollars)
		Amount	Remark
Receivables	Zhong Ze share	$175,801
Interest receivable	Time deposits interest	12
Other receivable	Accrued rent receivable	35
Total		$175,848
Less:Allowance for impairment loss		(175,801)
Net		$47

— 89 —

THUNDER TIGER CORP.
STATEMENT OF OTHER RECEIVABLES-RELATED PARTIES
DECEMBER 31, 2025

Item	Description	Amount
Shanghai Thunder Tiger Solutions Trading Co.,LTD.	Receivable prepayments	$2,985
TTBIO Corp.	Manged services accounts receivable	1,926
TTSOLUTIONS,INC.	Manged services accounts receivable	866
TT Media Technology, INC.	Manged services accounts receivable	53
ASSOCIATED ELECTRICS, (Taiwan). INC.	Receivable prepayments	149
CADCAM MARINE PTY LTD.	Receivable prepayments	12
Total		$5,991

90 -

THUNDER TIGER CORP.
STATEMENT OF INVENTORIES
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description	Amount
		Cost	Fair Value
Raw materials	Components	$132,381	$132,728
Work in process	Medical devices	119,577	311,633
Finished goods	Remote-controlled models	60,053	69,365
Total		$312,011	$513,726

—91—

THUNDER TIGER CORP.
STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME OR LOSS-NONCURRENT
FOR THE YEAR ENDED DECEMBER 31, 2025

Item	Balance, January 1, 2024		Increase		Decrease		Balance, December 31, 2024		Collateral
	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value
Stock:
A.G.V. PRODUCTS CORP.	4,600	$53,820	-	$ -	-	($5,980)	4,600	$47,840	None
KOYA BIOTECH CORP.	4,000	115,600	-	1,040	-	-	4,000	116,640	None
KOYA BIOTECH CORP.	-	-	686	20,284	-	-	686	20,284	None
- Preferred stocks
TAIWAN FIRST	-	-	2,300	65,918	-	-	2,300	65,918	None
BIOTECHNOLOGY INC
Net		$169,420		$87,242		($5,980)		$250,682

Current increase of $87,242 thousand, includes $59,760 thousands additions and $27,482 thousands proceeds unrealized gain on financial assets at FCTOCI.
Current decrease of $5,980 thousand includes proceeds unrealized loss on financial assets at FVTOCI.

— 92 —

THUNDER TIGER CORP.
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands Shares & Thousands of New Taiwan Dollars)

Names	Beginning Balance		Increase		Decrease		Ending Balance			Market Value or Net Value		Collateral or Pledge
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price	Total Amount
Investments accounted for using equity method:
Manfood Investment Ltd.	12,000	$485,044	-	$1,512	-	$38,179	12,000	100.00%	$448,377	36.41	$436,967	Nil
UPTOP LTD.	50	1	-	-	-	-	50	100.00%	1	0.02	1	Nil
TTBIO CORP.	13,679	165,984	5,056	75,945	-	18,304	18,735	56.88%	223,625	12.00	222,830	Partial pledge
THUNDER TIGER ELECTRIC &ENGINEERING CORP.	300	67	-	-	-	523	300	100.00%	(456)	(1.52)	(456)	Nil
TTSOLUTIONS, INC.	81,048	47,538	66,317	2,990	-	-	147,365	73.68%	50,528	0.63	92,612	Nil
TAIWAN SWARM INNOVATION INC.	710	21,979	-	2,055	-	-	710	30.00%	24,034	20.18	15,945	Nil
CADCAM MARINE PTY LTD.	15,000	50,879	-	-	-	5,033	15,000	60.00%	45,846	2.53	37,977	Nil
Subtotal		$771,492		$82,502		$62,039			$791,955		$805,876
Less: Impairment		(38,147)							(38,147)		(38,147)
Add: Transferred to investment surplus using equity method		-							456		456
Total		$733,345							$754,264		$768,185
1. Current increase of $82,502 thousand is listed below:						2. Current decrease of $62,039 thousand is listed below:
Additions			$75,848			Share of Profit or Loss of Subsidiaries, associates and joint			$39,098
Share of Profit or Loss of Subsidiaries, associates and joint ventures			5,034			Other Comprehensive Income			14,969
Other Comprehensive Income			53			Unrealized Gross Profit on Sales			192
Capital surplus			55			Capital surplus			445
Realized Gross Profit on Sales			219			Retained earnings			3,586
Realized Profit in Disposition of assets			1,293			Dividends distribution			3,749
Total			$82,502			Total			$62,039

THUNDER TIGER CORP.
STATEMENT OF SHORT-TERM LOANS
DECEMBER 31, 2025

| Creditor | Description | Ending Balance | Contract Period | Loan Commitments | (In Thousands of New Taiwan Dollars)
Collateral | Remark |
| --- | --- | --- | --- | --- | --- | --- |
| First Commercial Bank | Mortage loan | $50,000 | 2025.10.25-2026.12.03 | 50,000 | Stock | |
| Taiwan Cooperative Bank | Mortage loan | 15,000 | 2025.09.09-2026.07.22 | 20,000 | Demand deposits | |
| The Shanghai Commercial&Savings Bank | Mortage loan | 30,000 | 2025.09.10-2026.09.10 | 50,000 | Demand deposits | |
| SinoPac Bank | Mortage loan | 30,000 | 2025.09.17-2026.05.31 | 30,000 | Demand deposits | |
| Shin Kong Bank | Mortage loan | 30,000 | 2025.07.24-2026.06.02 | 30,000 | Demand deposits | |
| DBS Bank | Mortage loan | 10,000 | 2025.10.14-2026.03.05 | 30,000 | Demand deposits | |
| Taishin International Bank | Mortage loan | 20,000 | 2025.12.10-2026.03.10 | 20,000 | Time deposits | |
| Total | | $185,000 | | | | |
| Range of Interest Rates (%) | | 2.50%-2.985% | | | | |

— 94 —

THUNDER TIGER CORP.
STATEMENT OF CONTRACT LIABILITIES - CURRENT
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount
Company A	Unearned sales revenue	$9,701
Company B	Unearned sales revenue	5,959
Others	Under 5%	26,540
Total		$42,200

— 95 —

THUNDER TIGER CORP.
STATEMENT OF ACCOUNTS PAYABLES
DECEMBER 31, 2025

Vendor Name	Description	Amount
Company A	Trade payable	$645
Others	Under 5%	11,426
Total		$12,071

— 96 —

THUNDER TIGER CORP.
STATEMENT OF ACCOUNTS PAYABLES - RELATED PARTIES
DECEMBER 31, 2025

Vendor Name	Description	Amount
TTBIO CORP.	Trade payable	$10,333
TTSOLUTIONS INC.	Trade payable	$5,971
CADCAM MARINE PTY INC.	Trade payable	1,779
Others	Trade payable	39
Total		$18,122

—97—

THUNDER TIGER CORP.
STATEMENT OF LONG-TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS
DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Credior	Description	Amount	Contract Period	Collateral
The Shanghai Commercial&Savings Bank	Mortage loan	$16,284	2025.07.18-2045.07.18	Investment property
Yuanta Commercial Bank	Mortage loan	19,167	2024.11.15-2027.11.15	Demand deposits
Mega International Commercial Bank	Mortage loan	33,000	2023.08.22-2028.08.22	Equipment
Bank SinoPac	Mortage loan	21,660	2025.07.29-2028.07.29	Equipment
Total		$90,111
Less: Current portion of long-term loans		(30,829)
Balance, End of Year		$59,282
Range of Interest Rates (%)		2.40%–3.05%

— 98 —

THUNDER TIGER CORP.
STATEMENT OF NET REVENUE
FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of Pieces / In Thousands of New Taiwan Dollars)

Item	Quantity	Amount
Unmanned vehicle and remote-controlled products	15	$82,832
Medical devices products	13	42,447
Aspetic packages products	340,894	262,982
Total renvenue		$388,261
Less: Sales return		(2,000)
Sales discount		(697)
Nte revenue		$385,564

— 99 —

THUNDER TIGER CORP.
STATEMENT OF COST OF REVENUE
FOR THE YEAR ENDED DECEMBER 31, 2025

Item	(In Thousands of New Taiwan Dollars) Amount
Raw materials at January 1, 2025	$108,417
Add: Raw materials purchased	241,923
Work in process transfer in	61,506
Gain on physical count	25
Others	12,161
Less: Raw materials at December 31, 2025	(152,472)
Raw materials sold	(12)
Transfer to operating expenses	(65,904)
Others	(930)
Raw materials used	$204,714
Direct labor	10,443
Factory overhead	68,361
Manufacturing cost	$283,518
Add: Work in process at January 1 2025	54,876
Work in process purchased	39,860
Finished goods transfer in	4,492
Expense transfer in	60,504
Less: Work in process at December 31, 2025	(119,577)
Transfer to raw materials	(61,506)
Cost of finished goods	$262,167
Add: Finished goods at January 1 2025	69,350
Finished goods purchased	21,843
Gain on physical count	22
Others	(687)
Less: Finished goods at December 31, 2025	(73,035)
Transfer to work in process	(4,492)
Others	(78)
Cost of finished goods sold	$275,090
Adjustment items of cost
Impairment loss on inventories	2,164
Loss on physical count	(47)
Others	(275)
Unallocated factory overhead	11,769
Cost of product	$288,701
Raw material sold	12
Total cost of revenue	$288,713

— 100 —

THUNDER TIGER CORP.
STATEMENT OF FACTORY OVERHEAD
FOR THE YEAR ENDED DECEMBER 31, 2025

Item	Amount (In Thousands of New Taiwan Dollars)
Indirect labor	$7,601
Utilities expense	20,402
Depreciation	30,777
Unallocated manufacturing expenses	(11,769)
Others (Note)	21,350
Total	$68,361

Note: The amount of each item does not exceed 5% of the account balance.

101 -

THUNDER TIGER CORP.
STATEMENT OF SALES AND MARKETING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025

Item	(In Thousands of New Taiwan Dollars) Amount
Freight	$3,214
Travel expenses	741
Advertising	6,788
Others (Note)	1,814
Total	$12,557

Note: The amount of each item does not exceed 5% of the account balance.

-102-

THUNDER TIGER CORP.
STATEMENT OF GERNERAL AND ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025

| Item | (In Thousands of New Taiwan Dollars)
Amount |
| --- | --- |
| Salary and wages | $32,561 |
| Depreciation | 18,692 |
| Professional service fees | 8,695 |
| Others (Note) | 34,932 |
| Total | $94,880 |

Note: The amount of each item does not exceed 5% of the account balance.

103 -

THUNDER TIGER CORP.
STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025

Item	Amount (In Thousands of New Taiwan Dollars)
Salary and wages	$25,951
Others (Note)	81,541
Total	$107,492

Note: The amount of each item does not exceed 5% of the account balance.

-104-

AI assistant

TT — Audit Report / Information 2025

52709_rns_2026-04-24_b8e81372-daeb-4501-8192-11b28366ffc2.pdf

REPORT OF INDEPENDENT ACCOUNTANTS

Opinion

Basis for Opinion

Key Audit Matters

Valuation of inventory

Description

How our audit addressed the matter

Realizability of deferred income tax assets

Description

How our audit addressed the matter

Other Matters

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

Independent Accountants’ Responsibilities for the Audit of the Parent Company Only Financial Statements

1. GENERAL INFORMATION

2. THE AUTHORIZATION OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Financial assets

a. Category of financial assets

(a) Financial assets at FVTPL

(b) Financial assets at amortized cost

5. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

(6) Inventories and operating costs

(7) Prepayments

(12) Lease agreement

(15) Other non-current assets

(16) Short-term loans

(17) Other payables

(21)Share capital

(22) Capital surplus

(23) Share-based payment transactions

(26) Operating revenues

A. Explain of contract revenue

B. Segments of revenue from contracts with customers:

(36) Business combinations

7. RELATED PARTY TRANSACTIONS

Price risk

Cash flow and fair value interest rate risk

D. Valuation techniques of financial instruments valued at fair value

13. SUPPLEMENTARY DISCLOSURES

THUNDER TIGER CORP.

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST

THUNDER TIGER CORP.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

(1) Mainland Investment Information:

14. SEGMENT INFORMATION

More from TT

TT Audit Report / Information 2025