TXC Corporation and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

TXC CORPORATION

PETER LIN
Chairman

March 13, 2026

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
TXC Corporation

Opinion

We have audited the accompanying consolidated financial statements of TXC Corporation (the "Company") and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter identified in the Group’s consolidated financial statements for the year ended December 31, 2025 is stated as follows:

The Authenticity of Sales Revenue from Specific Customers

Sales revenue is the primary indicator used by management to evaluate business performance. We analyzed customer-specific sales revenue information and identified customers that met certain criteria. Based on our assessment, the sales revenue of these customers was subject to higher risk; therefore, the authenticity of revenue recognition from these customers was identified as a key audit matter. For the accounting policy for revenue recognition, please refer to Note 4.

The key audit procedures that we performed included the following:

We obtained an understanding of and tested the appropriateness of the design and the implementation of internal control system that is related to revenue recognition.
We selected samples from the revenue details of specific customers, checked the sales orders, delivery notes, shipping documents and invoices of the relevant transactions and reconcile them with the recorded amounts to confirm the authenticity of the revenue.
Obtain the subsequent receipt details for specific customers, verify the related supporting documents, and examine whether there are any anomalies between the sales counterparties and the payment counterparties to ensure the authenticity of revenue.

Other Matter

We have audited the accompanying parent company only financial statements of TXC Corporation as of December 31, 2025 and 2024 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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

In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative but to do so.

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated 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 consolidated 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 Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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 Group'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 consolidated 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 Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025, and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors' report are Ming-Chung Hsieh and Yi-Hua Peng.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 13, 2026

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' report and the accompanying consolidated 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 consolidated financial statements shall prevail.

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 3,877,499	18	$ 3,906,374	18
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	1,958,062	9	1,467,890	7
Financial assets at amortized cost - current (Notes 4 and 9)	346,777	2	104,092	-
Notes receivable (Notes 4 and 10)	210,500	1	190,906	1
Trade receivables (Notes 4 and 10)	3,435,759	16	3,560,547	16
Trade receivables from related parties (Notes 4, 10 and 29)	19,472	-	8,903	-
Finance lease receivables - current (Note 11)	2,396	-	4,640	-
Other receivables (Note 4)	64,227	-	70,868	-
Other receivables from related parties (Notes 4 and 29)	834	-	834	-
Current tax assets (Notes 4 and 24)	78,982	-	78,982	-
Inventories (Notes 4 and 12)	2,732,019	12	2,825,101	13
Other current assets	222,182	1	340,137	2
Total current assets	12,948,729	59	12,559,274	57
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8)	132,850	1	400,903	2
Financial assets at amortized cost - non-current (Notes 4 and 9)	-	-	215,803	1
Investments accounted for using the equity method (Notes 4 and 14)	445,948	2	464,962	2
Property, plant and equipment (Notes 4 and 15)	7,255,081	33	6,984,104	31
Right-of-use assets (Notes 4, 16 and 29)	194,698	1	208,109	1
Investment properties (Notes 4 and 17)	576,211	3	610,690	3
Other intangible assets (Note 4)	47,887	-	42,044	-
Deferred tax assets (Notes 4 and 24)	36,628	-	39,156	-
Finance lease receivables - non-current (Note 11)	-	-	2,444	-
Prepayment for equipment	165,649	1	628,193	3
Net defined benefit assets - non-current (Notes 4 and 20)	-	-	5,227	-
Other non-current assets	15,822	-	9,617	-
Total non-current assets	8,870,774	41	9,611,252	43
TOTAL	$ 21,819,503	100	$ 22,170,526	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 18)	$ 395,480	2	$ 206,126	1
Financial liabilities at fair value through profit or loss - current (Notes 4 and 7)	274	-	-	-
Contract liabilities - current (Notes 12 and 22)	-	-	42	-
Trade payables	1,695,801	8	1,689,082	8
Trade payables to related parties (Note 29)	21,684	-	1,767	-
Other payables (Note 19)	1,351,184	6	1,311,297	6
Other payables to related parties (Note 29)	1,374	-	16,989	-
Current tax liabilities (Notes 4 and 24)	109,474	-	96,968	1
Lease liabilities - current (Notes 4, 16 and 29)	6,500	-	8,400	-
Deferred revenue - current (Notes 19 and 26)	51,956	-	44,746	-
Current portion of long-term liabilities (Note 18)	385,281	2	728,189	3
Other current liabilities	50,330	-	95,303	-
Total current liabilities	4,069,338	18	4,198,909	19
NON-CURRENT LIABILITIES
Long-term borrowings (Note 18)	1,281,436	6	1,187,027	5
Deferred tax liabilities (Notes 4 and 24)	140,677	1	139,428	1
Lease liabilities - non-current (Notes 4, 16 and 29)	1,814	-	8,349	-
Deferred revenue - non-current (Notes 19 and 26)	159,919	1	62,028	-
Guarantee deposits received	129,524	-	130,606	1
Total non-current liabilities	1,713,370	8	1,527,438	7
Total liabilities	5,782,708	26	5,726,347	26
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 21)
Share capital
Ordinary shares	3,429,930	16	3,429,930	15
Capital surplus	4,622,037	21	4,622,137	21
Retained earnings
Legal reserve	2,653,110	12	2,437,715	11
Special reserve	222,793	1	527,767	3
Unappropriated earnings	5,729,985	26	5,379,666	24
Total retained earnings	8,605,888	39	8,345,148	38
Other equity
Exchange differences on translation of the financial statements of foreign operations	(369,158)	(2)	(140,531)	-
Unrealized (loss) gain on financial assets at fair value through other comprehensive income	(104,942)	-	67,671	-
Total other equity	(474,100)	(2)	(72,860)	-
Treasury shares	(264,017)	(1)	-	-
Total equity attributable to owners of the Company	15,919,738	73	16,324,355	74
NON-CONTROLLING INTERESTS	117,057	1	119,824	-
Total equity	16,036,795	74	16,444,179	74
TOTAL	$ 21,819,503	100	$ 22,170,526	100

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

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
SALES (Notes 4, 22 and 29)	$ 13,348,901	100	$ 12,672,258	100
COST OF GOODS SOLD (Notes 12, 23 and 29)	(8,938,963)	(67)	(8,185,113)	(65)
GROSS PROFIT	4,409,938	33	4,487,145	35
OPERATING EXPENSES (Notes 23 and 29)
Selling and marketing expenses	540,365	4	534,537	4
General and administrative expenses	785,386	6	735,199	6
Research and development expenses	1,060,519	8	1,080,925	8
Total operating expenses	2,386,270	18	2,350,661	18
PROFIT FROM OPERATIONS	2,023,668	15	2,136,484	17
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 23)	53,661	-	72,417	1
Other income (Notes 23 and 29)	221,634	2	137,373	1
Other gains and losses (Notes 23 and 29)	(39,462)	-	268,509	2
Finance costs (Note 23)	(66,806)	(1)	(56,143)	(1)
Shares of profits of associates and joint ventures (Note 14)	7,629	-	16,200	-
Total non-operating income and expenses	176,656	1	438,356	3
PROFIT BEFORE INCOME TAX	2,200,324	16	2,574,840	20
INCOME TAX EXPENSE (Notes 4 and 24)	(395,985)	(3)	(438,301)	(3)
NET PROFIT FOR THE YEAR	1,804,339	13	2,136,539	17
OTHER COMPREHENSIVE (LOSS) INCOME
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	12,247	-	16,307	-
Unrealized gain on investments in equity instruments at fair value through other comprehensive income	54,661	1	12,793	-
Share of the other comprehensive income of associates and join ventures accounted for using the equity method	248	-	165	-
	67,156	1	29,265	-
				(Continued)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	$ (236,655)	(2)	$ 424,239	4
Share of the other comprehensive (loss) income of associates and join ventures accounted for using the equity method	(3,775)	-	17,936	-
	(240,430)	(2)	442,175	4
Other comprehensive income (loss) for the year, net of income tax	(173,274)	(1)	471,440	4
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 1,631,065	12	$ 2,607,979	21
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 1,804,534	14	$ 2,137,415	17
Non-controlling interests	(195)	-	(876)	-
	$ 1,804,339	14	$ 2,136,539	17
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 1,643,063	12	$ 2,608,855	21
Non-controlling interests	(11,998)	-	(876)	-
	$ 1,631,065	12	$ 2,607,979	21
EARNINGS PER SHARE (Note 25)
From continuing operations
Basic	$ 5.28		$ 6.55
Diluted	$ 5.23		$ 6.39

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

(Concluded)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Company
	Shares (In Thousands)	Share Capital		Capital Surplus	Retained Earnings			Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Treasury Shares	Total	Non-controlling Interests
		Ordinary Shares	Bond Conversion Entitlement Certificates		Legal Reserve	Special Reserve	Unappropriated Earnings
BALANCE ON JANUARY 1, 2024	309,758	$ 3,097,570	$ 9	$ 1,718,693	$ 2,243,247	$ 143,071	$ 5,198,793	$ (582,706)	$ 54,939	$ -	$ 11,873,616	$ -
Appropriation of 2023 earnings (Note 21)
Legal reserve	-	-	-	-	194,468	-	(194,468)	-	-	-	-	-
Special reserve	-	-	-	-	-	384,696	(384,696)	-	-	-	-	-
Cash dividends distributed by the company	-	-	-	-	-	-	(1,393,911)	-	-	-	(1,393,911)	-
Net profit for the year ended December 31, 2024	-	-	-	-	-	-	2,137,415	-	-	-	2,137,415	(876)
Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	-	-	-	16,533	442,175	12,732	-	471,440	-
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	-	2,153,948	442,175	12,732	-	2,608,855	(876)
Convertible bonds converted to ordinary shares	8,235	82,360	(9)	816,091	-	-	-	-	-	-	898,442	-
Donations from shareholders	-	-	-	(147)	-	-	-	-	-	-	(147)	-
Issuance of ordinary shares for cash	25,000	250,000	-	2,087,500	-	-	-	-	-	-	2,337,500	-
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	-	-	120,700
BALANCE ON DECEMBER 31, 2024	342,993	3,429,930	-	4,622,137	2,437,715	527,767	5,379,666	(140,531)	67,671	-	16,324,355	119,824
Appropriation of 2024 earnings (Note 21)
Legal reserve	-	-	-	-	215,395	-	(215,395)	-	-	-	-	-
Reversal of special reserve	-	-	-	-	-	(304,974)	304,974	-	-	-	-	-
Cash dividends distributed by the company	-	-	-	-	-	-	(1,783,563)	-	-	-	(1,783,563)	-
Net profit for the year ended December 31, 2025	-	-	-	-	-	-	1,804,534	-	-	-	1,804,534	(195)
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	-	-	12,533	(228,627)	54,623	-	(161,471)	(11,803)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	-	1,817,067	(228,627)	54,623	-	1,643,063	(11,998)
Donations from shareholders	-	-	-	(100)	-	-	-	-	-	-	(100)	-
Disposal of investments in equity instruments designated as at fair value through other comprehensive income	-	-	-	-	-	-	227,236	-	(227,236)	-	-	-
Buy-back of ordinary shares	-	-	-	-	-	-	-	-	-	(264,017)	(264,017)	-
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	-	9,231	9,231
BALANCE ON DECEMBER 31, 2025	342,993	$ 3,429,930	$ -	$ 4,622,037	$ 2,653,110	$ 222,793	$ 5,729,985	$ (369,158)	$ (104,942)	$ (264,017)	$ 15,919,738	$ 117,057

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

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 2,200,324	$ 2,574,840
Adjustments for:
Depreciation expense	1,232,541	1,163,646
Amortization expense	15,095	17,946
Net gain on fair value changes of financial assets and liabilities at fair value through profit or loss	(26,455)	(31,998)
Finance costs	66,806	56,143
Interest income	(53,661)	(72,417)
Dividend income	(1,072)	(4,651)
Share of profit of associates and joint ventures	(7,629)	(16,200)
(Gain) loss on disposal of property, plant and equipment	(11,500)	332
Impairment reversed on property, plant and equipment	(296)	(5,617)
Write-down of inventories	9,778	10,625
Changes in operating assets and liabilities
Notes receivable	(19,594)	(103,335)
Trade receivables	124,856	(401,317)
Trade receivables from related parties	(10,569)	(526)
Other receivables	6,116	(38,621)
Other receivables from related parties	(20)	359
Inventories	83,474	(432,526)
Other current assets	117,955	(230,938)
Finance lease receivables	4,415	4,166
Contract liabilities	(42)	-
Trade payables	6,719	274,124
Trade payables to related parties	19,917	797
Other payables	39,657	209,776
Other payables to related parties	(15,615)	15,000
Other current liabilities	(44,973)	27,655
Net defined benefit assets	20,536	(4,948)
Deferred revenue	105,101	(12,110)
Cash generated from operations	3,861,864	3,000,205
Interest paid	(66,576)	(50,194)
Income tax paid	(382,548)	(354,352)
Net cash generated from operating activities	3,412,740	2,595,659
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of financial assets at fair value through other comprehensive income	310,701	-
Purchase of financial assets at amortized cost	(35,540)	(5,082)
Purchase of financial assets at fair value through profit or loss	(547,329)	(787,253)
Payments for property, plant and equipment	(1,198,467)	(2,198,588)
Proceeds from disposal of property, plant and equipment	97,440	53,795
Payments for intangible assets	(21,565)	(13,503)
		(Continued)

10 -

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
Increase in other non-current assets	$ (6,205)	$ -
Decrease in other non-current assets	-	72
Increase in prepayment for equipment	-	(280,174)
Interest received	54,176	72,251
Dividends received	23,087	22,215
Net cash used in investing activities	(1,323,702)	(3,136,267)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds of short-term borrowings	166,449	-
Repayments of short-term borrowings	-	(46,754)
Repayment of bonds payable	-	(301,400)
Proceeds from long-term borrowings	2,899,501	3,757,731
Repayments of long-term borrowings	(3,120,091)	(4,435,716)
Proceeds from guarantee deposits received	-	50,815
Refund of guarantee deposits received	(1,082)	-
Repayment of the principal portion of lease liabilities	(8,228)	(8,209)
Dividends paid to owners of the Company	(1,783,563)	(1,393,911)
Proceeds from issuance of ordinary shares	-	2,337,500
Payments for buy-back of ordinary shares	(264,017)	-
Changes in non-controlling interests	9,231	120,700
Other changes in capital surplus	(100)	(147)
Net cash (used in) generated from financing activities	(2,101,900)	80,609
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	(16,013)	162,104
NET DECREASE IN CASH AND CASH EQUIVALENTS	(28,875)	(297,895)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	3,906,374	4,204,269
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 3,877,499	$ 3,906,374

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

TXC CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

TXC Corporation (the "Company") was incorporated in the Republic of China (ROC) on December 28, 1983.

TXC specializes in producing high quality crystals and crystal oscillator (CXO) as well as develops a variety of sensors by core technology to satisfy the market demand. Sensors are applied to various applications including mobile communication, information and storage device, internet of things, vehicle electronics, telecommunication equipment, smart home, AI, medical care, and 5G, etc.

TXC's shares have been listed on the Taiwan Stock Exchange since August 26, 2002.

The consolidated financial statements are presented in the Company's functional currency, the New Taiwan dollar.

To ensure the rights and interests of investors through full disclosure of operational governance, the Company applied for the Corporate Governance Assessment held by the Taiwan Corporate Governance Association (TCGA). For the "Corporate Governance Evaluation" jointly held by the Taiwan Stock Exchange Corporation (TWSE) and Taipei Exchange, under the category of listed companies, the company was awarded as the top 20 percent in 2014, top 5 percent from 2015 to 2017, and top 6 to 20 percent from 2018 to 2024. The Company will continue to strengthen corporate governance with the intention to achieve international standards for protection of public interest. Since 2009, the Company has continuously prepared its Corporate Social Responsibility (CSR) Report in accordance with the GRI Standards. In 2021, the Company formally established the Sustainability Development Committee (ESG Committee) and simultaneously transformed the CSR Report into the Sustainability Report (ESG Report). The Company has obtained assurance from the third party verification body, the British Standards Institution (BSI), and has incorporated the Task Force on Climate-related Financial Disclosures (TCFD) framework and the Sustainability Accounting Standards Board (SASB) standards to align its sustainability disclosures with international practices.

In response to global sustainability trends and growing customer expectations regarding supply chain responsibility, the Company fully adopted the ISO 20400 Sustainable Procurement Guidelines beginning in 2025. The relevant operational procedures have been established and certified, and the Company continues to enhance sustainable supply chain governance through a structured and institutionalized management framework.

In the area as of climate change and energy management, the Company has established an ISO 50001 Energy Management System and has progressively completed the ISO 14064-1 organizational greenhouse gas inventory and the ISO 14067 product carbon footprint assessment. Through systematic energy data management and monitoring mechanisms, the Company has enhanced energy-use efficiency. At the same time, the Company has adopted a dual-track strategy of procuring external renewable energy and installing in-house solar power generation systems. In 2025, the Group's overall renewable energy usage rate reached $15.4\%$. Looking ahead, the Company will continue to increase the proportion of renewable energy consumption through this dual-track approach.

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2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on March 9, 2026.

3. APPLICATION OF NEW, AMEND AND REVISED STANDARDS, AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Amendments to IAS 21 "Lack of Exchangeability"

The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Group's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets

The amendments mainly amend the requirements for the classification of financial assets, including:

1) If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if,

In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and
In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature.

2) To clarify that a financial asset has non-recourse features if an entity's ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

3) To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches.

An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group's financial position and financial performance.

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

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

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

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

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

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, or other regulations and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

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

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

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

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c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and
3) Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries, including structured entities).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

See Note 13 and Table 4 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

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

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

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting consolidated financial statements, the financial statements of the Company's foreign operations (including subsidiaries, associates, joint ventures and branches in other countries) that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e., a disposal of the Company's entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

In a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to the non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

f. Inventories

Inventories

Inventories consist of raw materials, supplies, finished goods and work in process and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the specific identification of cost on the balance sheet date.

Properties for sale

Properties for sale is initially recorded at cost. The borrowing costs directly attributable to properties for sale are capitalized as part of the cost of the asset. When the property sales have been deemed as cost carried forward, cost is allocated by applying sales and building coverage ratios. Once selected, the same construction project cannot be changed in the preceding and following years.

The properties for sale are measured at the lower of cost and net realizable value. The net realizable value is the estimated selling prices of inventories less all estimated costs of completion and estimated costs necessary to make the sale.

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g. Investments in associates

An associate is an entity over which the Group has a significant influence and which is neither a subsidiary nor an interest in a joint venture.

The Group uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate is initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group’s share of the equity of associates attributable to the Group.

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

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method.

If the Group’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Group’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any assets, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest.

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When the Group transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group.

h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Freehold investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer of classification from investment properties to property, plant and equipment, the deemed cost of an item of property for subsequent accounting is its carrying amount at the commencement of owner-occupation.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of the property for subsequent accounting is its carrying amount at the end of owner-occupation.

For a transfer of classification from inventories to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the inception of an operating lease.

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

j. Intangible assets

1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

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2) Derecognition of intangible assets

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.

k. Impairment of property, plant and equipment, right-of-use asset, investment properties, intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset, investment properties and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding 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.

Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

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i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such a financial assets are mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and any remeasurement gains or losses on such financial assets are recognized in other gains and losses. The net gains or losses recognized in other gains and losses does not incorporate any dividends or interest earned on such financial assets. Fair value is determined in the manner described in Note 28.

ii. Financial assets at amortized cost

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

i) The financial assets are 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 asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables and other receivables at amortized cost and refundable deposits, are measured at amortized cost, which equals the gross carrying amount using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset.

Cash equivalents include time deposits and repurchase agreement with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

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

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

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

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b) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).

The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

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

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

c) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

On derecognition of a financial asset other than in its entirety, the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part that is no longer recognized is treated in the same way as when the financial asset is derecognized in entirety. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.

2) Financial liabilities

a) Subsequent measurement

Except the following situations, all financial liabilities are measured at amortized cost using the effective interest method.

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Financial liabilities at FVTPL

Financial liabilities held for trading are stated at fair value, and any remeasurement gains or losses on such financial liabilities are recognized in other gains or losses. Fair value is determined in the manner described in Note 28.

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

3) Derivative financial instruments

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts and exchange contracts, interest rate swaps and options.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g., financial liabilities) are treated as separate derivatives when they meet the definition of a derivative; their risks and characteristics are not closely related to those of the host contracts; and the host contracts are not measured at FVTPL.

m. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods

Revenue from the sale of goods comes from sales of crystals frequency control devices and sensors. Sales of crystals frequency control devices and sensors are recognized as revenue when the goods are delivered to the customer's specific location, the goods are shipped and the goods are picked up by customers because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently.

n. Leasing

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

1) The Group 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.

When the Group subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Group, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.

Under finance leases, the lease payments comprise fixed payments less any lease incentives payable. The net investment in a lease is measured at (a) the present value of the sum of the lease payments receivable by a lessor and any unguaranteed residual value accrued to the lessor plus (b) initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated to the relevant accounting periods so as to reflect a constant, periodic rate of return on the Group’s net investment outstanding in respect of 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.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

o. Borrowing costs

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

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

24 -

Other than stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

p. Government grants

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

Government grants related to income are recognized as a reduction of the related costs and other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they are received.

q. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost, past service cost, as well as gains and losses on settlements) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefit expenses in the period in which they occur and when the settlement occurs. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

r. Taxation

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

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

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

25 -

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

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred tax for the year

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

26 -

When developing material accounting estimates, the Group considers the possible impact of US reciprocal tariffs and other possible impacts on the cash flow projection, growth rates, discount rates, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 590	$ 725
Checking accounts and demand deposits	3,426,909	2,760,490
Cash equivalents (investments with original maturities of less than three months)
Time deposits	300,000	1,045,159
Repurchase agreements collateralized by bonds	150,000	100,000
	$ 3,877,499	$ 3,906,374

The market rate intervals of cash in bank at the end of the reporting period were as follows:

	December 31
	2025	2024
Demand deposits	0.0001%-3.35%	0.0001%-3.76%
Time deposits	1.65%	1.50%-4.61%
Repurchase agreements collateralized by bonds	1.40%-1.41%	1.47%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets - current
Financial assets mandatorily classified as at FVTPL
Derivative financial instruments (not under hedge accounting)
Foreign exchange forward contracts and exchange contracts*	$ -	$ 1,415
Non-derivative financial assets
Listed shares	-	43,000
Beneficiary certificate	306	308
Hybrid financial assets
Floating income financial products	1,940,403	1,405,617
Convertible bonds	17,353	17,550
	1,958,062	1,466,475
	$ 1,958,062	$ 1,467,890
Financial liabilities - current
Financial liabilities mandatorily classified as at FVTPL
Derivative financial instruments (not under hedge accounting)
Foreign exchange forward contracts and exchange contracts*	$ 274	$ -

At the end of the reporting period, outstanding foreign exchange forward contracts and exchange contracts not under hedge accounting were as follows:

	Currency	Maturity Date	Contract Amount (In Thousands)
December 31, 2025
Knock-out forward	USD/RMB	2026.01.19-2026.03.16	USD9,000/RMB64,442
Exchange contracts	USD/NTD	2026.01.14	USD2,000/NTD59,716
Foreign currency options	USD/NTD	2026.01.20-2026.02.24	USD8,000/NTD249,800
December 31, 2024
Knock-out forward	USD/RMB	2025.01.13	USD4,000/RMB29,030
Exchange contracts	USD/NTD	2025.01.21-2025.02.04	USD7,000/NTD222,583
Foreign currency options	USD/NTD	2025.01.03-2025.02.05	USD7,000/NTD225,900

The Group entered into foreign exchange forward contracts and exchange contracts during the years ended December 31, 2025 and 2024 to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities. However, those contracts did not meet the criteria of hedge effectiveness and therefore were not accounted for using hedge accounting.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2025	2024
Non-current
Domestic investments
Listed shares
Win Win Precision Technology Co., Ltd.	$ -	$ 40,678
Unlisted shares	34,176	49,292
	34,176	89,970
Foreign investments
Unlisted shares	98,674	310,933
	$ 132,850	$ 400,903

These investments in equity instruments are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes.

In 2025, the Group sold its shares in Win Win Precision Technology Co., Ltd. in order to manage credit concentration risk. The shares sold had a fair value of $64,340 thousand and its related unrealized gain of $3,984 thousand was transferred from other equity to retained earnings

In 2025, the Group sold its shares in Ningbo SJ Electronics Co., Ltd. in order to manage credit concentration risk. The shares sold had a fair value of $246,361 thousand and its related unrealized gain of $223,252 thousand was transferred from other equity to retained earnings

29 -

9. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Current
Domestic investments
Pledge deposits (a)	$ 88,703	$ 104,092
Pledged time deposits (a and b)	40,000	-
Time deposits with original maturities of more than one year (c)	218,074	-
	$ 346,777	$ 104,092
Non-current
Domestic investment
Time deposits with original maturity of more than one year (c)	$ -	$ 215,803

a. Refer to Note 30 for information relating to investments in financial assets at amortized cost pledged as security.
b. As of December 31, 2025, the range of interest rates for pledged time deposits was 0.66%.
c. The ranges of interest rates for time deposits with original maturities of more than 1 year were approximately 2.9%-3.3% per annum as of December 31, 2025 and 2024.

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable
At amortized cost
Gross carrying amount	$ 210,500	$ 190,906
Less: Allowance for impairment loss	-	-
	$ 210,500	$ 190,906
Trade receivables
At amortized cost
Gross carrying amount	$ 3,468,095	$ 3,582,382
Less: Allowance for impairment loss	(12,864)	(12,932)
	$ 3,455,231	$ 3,569,450

In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base. The Group recognizes 100% loss allowance for trade receivables of greater than 120 days past due and unsecured.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable and trade receivables based on the Group's provision matrix:

December 31, 2025

	Not Past Due	1 to 60 Days	61 to 120 Days	121 to 180 Days	Over 180 Days	Total
Expected credit loss rate	0.37%	0.01%-0.63%	3.17%-4.75%	100%	100%
Gross carrying amount	$ 3,502,756	$ 175,381	$ 458	$ -	$ -	$ 3,678,595
Loss allowance (Lifetime ECL)	(12,819)	(26)	(19)	-	-	(12,864)
Amortized cost	$ 3,489,937	$ 175,355	$ 439	$ -	$ -	$ 3,665,731

December 31, 2024

	Not Past Due	1 to 60 Days	61 to 120 Days	121 to 180 Days	Over 180 Days	Total
Expected credit loss rate	0.36%	0.04%-0.6%	100%	100%	100%
Gross carrying amount	$ 3,560,024	$ 213,264	$ -	$ -	$ -	$ 3,773,288
Loss allowance (Lifetime ECL)	(12,831)	(101)	-	-	-	(12,932)
Amortized cost	$ 3,547,193	$ 213,163	$ -	$ -	$ -	$ 3,760,356

The movements of the loss allowance of trade receivables were as follows:

	2025	2024
Balance at January 1	$ 12,932	$ 13,442
Less: Amounts written off	-	(682)
Foreign exchange gains and losses	(68)	172
Balance at December 31	$ 12,864	$ 12,932

31 -

11. FINANCE LEASE RECEIVABLES

	December 31
	2025	2024
Undiscounted lease payments
Year 1	$ 2,439	$ 4,846
Year 2	-	2,486
Year 3	-	-
Year 4	-	-
Year 5	-	-
Year 5 onwards	-	-
	2,439	7,332
Less: Unearned finance income	(43)	(248)
Net investment in leases presented as finance lease receivable	$ 2,396	$ 7,084

12. INVENTORIES

	December 31
	2025	2024
Finished goods	$ 517,760	$ 620,191
Work in process	863,613	703,672
Raw materials	581,401	672,994
Supplies and spare parts	135,664	142,292
Merchandise	459,019	507,971
Buildings and land held for sale	174,562	177,981
	$ 2,732,019	$ 2,825,101

The cost of crystal inventories recognized as cost of goods sold for 2025 and 2024 included $8,938,963 thousand and $8,185,113 thousand, respectively. The cost of goods sold for 2025 and 2024 included inventory write-downs of $9,778 thousand and $10,625 thousand, respectively.

The details of the building and land held for sale are as follows:

	December 31, 2025
Area	Buildings and Land Held for Sale	Contract Liabilities - Current
Jing Yuan	$ 174,562	$ -
	December 31, 2024
Area	Buildings and Land Held for Sale	Contract Liabilities - Current
Jing Yuan	$ 177,981	$ 42

13. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

The detail information of the subsidiaries at the end of reporting period was as follows:

Investor	Investee	Nature of Activities	Proportion of Ownership		Remark
			December 31	December 31
TXC Corporation (TXC)	Taiwan Crystal Technology International Limited (TCTI)	Investment management	100	100	a
	TXC Technology, Inc.	Marketing activities	100	100	b
	TXC Japan Corporation	Marketing activities	100	100	c
	Taiwan Crystal Technology (HK) Limited (TCT-HK)	International trading	100	100	e
	TXC Europe GmbH	Marketing activities	100	100	j
Taiwan Crystal Technology International Limited	TXC (Ningbo) Corporation (TXC-Ningbo)	Research and development, manufacture, and sale of quartz elements and related electronic products	100	100	d
TXC (Ningbo) Corporation	TXC (Chongqing) Corporation (TXC-Chongqing)	Research and development, manufacture, and sale of quartz elements and related electronic products	100	100	f
	Chongqing Zhongyang Properties Co., Ltd. (Chongqing Zhongyang)	Properties development	100	100	g
	Ningbo Beilun Jingyu Trading Corporation (Beilun Jingyu)	International trading	100	100	h
	Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited (Ding Kai Investment)	Investment management	100	100	i
	TETC CORP. NINGBO (TETC-NINGBO)	Research and development, manufacture, and sale of quartz elements and related electronic products	100	100	l
	PT TXC TECHNOLOGY INDONESIA (SUB)	Research and development, manufacture, and sale of quartz elements and related electronic products	80	81	n
Chongqing Zhongyang Properties Co., Ltd.	ChongQing Dingsen Commercial Management Co., Ltd	Property management	100	100	k
TETC CORP. NINGBO	Shanghai JCH Co., Ltd (JCH)	Marketing activities and technical services	100	100	m

a. Taiwan Crystal Technology International Limited was incorporated on December 23, 1998 in Samoa.
b. TXC Technology, Inc. was incorporated on December 1, 2000 in California, U.S.A.
c. TXC Japan Corporation was incorporated on September 13, 2005 in Yokohama, Japan.
d. TXC (Ningbo) Corporation was incorporated on March 12, 1999 in Ningbo, China.
e. Taiwan Crystal Technology (HK) Limited was incorporated on July 6, 2010 in Hong Kong Special Administrative Region, China.
f. TXC (Chongqing) Corporation was incorporated on October 11, 2010 in Chongqing, China.
g. Chongqing Zhongyang Properties Co., Ltd. was incorporated on February 14, 2011 in Chongqing, China.
h. Ningbo Beilun Jingyu Trading Corporation was incorporated on September 7, 2011 in Ningbo, China.
i. Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited was incorporated on May 12, 2017 in Beilun District, Ningbo, China.

j. TXC Europe GmbH was founded in Germany on August 17, 2018.
k. ChongQing Dingsen Commercial Management Co., Ltd. was incorporated on February 21, 2019 in Chongqing, China.
l. TETC CORP. NINGBO was incorporated on December 30, 2020 in Ningbo, China.
m. Shanghai JCH Co., Ltd. was registered on October 13, 2022 in Shanghai, China.
n. PT TXC Technology Indonesia was registered on March 6, 2024 in Surabaya, Indonesia.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in associates and join ventures	$ 445,948	$ 464,962
a. Investment in associates
	December 31
	2025	2024
Associates that are not individually material	$ 424,120	$ 428,728
	For the Year Ended December 31
	2025	2024
The Group’s share of:
Profit from continuing operations	$ 20,925	$ 30,280
Other comprehensive (loss) income	(3,527)	18,101
Total comprehensive income for the year	$ 17,398	$ 48,381

Refer to Table 4 "name, locations, and related information of investees on which the Company exercises significant influence" for the nature of activities, principal place of business and country of incorporation of the associates.

b. Investment joint venture

	December 31
	2025	2024
Joint ventures that are not individually material	$ 21,828	$ 36,234
	For the Year Ended December 31
	2025	2024
The Group’s share of:
Loss from continuing operations	$(13,296)	$(14,080)
Total comprehensive loss for the year	$(13,296)	$(14,080)

Refer to Table 5 “information on investment in mainland China” for the nature of activities, principal place of business and country of incorporation of the joint venture.

15. PROPERTY, PLANT AND EQUIPMENT

	Freehold Land	Land Improvements	Buildings	Machinery and Equipment	Transportation Equipment	Office Equipment	Property under Construction	Total
Cost
Balance at January 1, 2024	$ 621,855	$ 3,024	$ 2,898,736	$ 11,137,193	$ 24,059	$ 433,368	$ 283,196	$ 15,401,431
Additions	79,407	-	262,532	1,100,306	3,809	151,649	592,734	2,190,508
Disposals	-	-	(3,684)	(365,942)	-	(9,998)	-	(379,624)
Reclassified from intangible assets	-	-	-	-	-	6,165	-	6,165
Reclassified	-	-	90	5,053	-	(5,053)	(90)	-
Effect of foreign currency exchange differences	1,982	-	67,830	341,370	1,229	17,914	27,888	658,221
Balance at December 31, 2024	$ 703,244	$ 3,024	$ 3,225,904	$ 12,226,188	$ 29,097	$ 593,996	$ 903,728	$ 17,684,781
Accumulated depreciation and impairment
Balance at January 1, 2024	$ -	$ 1,898	$ 1,476,351	$ 7,817,454	$ 18,861	$ 316,536	$ -	$ 9,631,100
Disposals	-	-	(3,684)	(311,989)	-	(9,824)	-	(325,497)
Depreciation expenses	-	312	136,543	939,370	2,875	51,226	-	1,130,326
Reversal of impairment losses	-	-	-	(5,617)	-	-	-	(5,617)
Effect of foreign currency exchange differences	-	-	35,636	222,189	982	11,558	-	270,365
Balance at December 31, 2024	$ -	$ 2,210	$ 1,644,846	$ 8,661,407	$ 22,718	$ 369,496	$ -	$ 10,700,677
Carrying value at December 31, 2024	$ 703,244	$ 814	$ 1,580,658	$ 3,564,781	$ 6,379	$ 224,500	$ 903,728	$ 6,984,104
Cost
Balance at January 1, 2025	$ 703,244	$ 3,024	$ 3,225,904	$ 12,226,188	$ 29,097	$ 593,996	$ 903,728	$ 17,684,781
Additions	-	-	346,771	803,556	161	32,401	15,578	1,190,467
Disposals	-	(1,599)	(21,887)	(394,841)	-	(14,471)	-	(422,798)
Reclassified as investment properties	-	-	(8,519)	-	-	-	-	(8,519)
Reclassified	-	-	865,763	(1,171)	-	1,502	(866,094)	-
Reclassified from prepayments for equipment	-	-	-	462,544	-	-	-	462,544
Effect of foreign currency exchange differences	(7,731)	-	(6,461)	(125,711)	(561)	(8,451)	(51,414)	(200,329)
Balance at December 31, 2025	$ 695,513	$ 1,425	$ 4,401,171	$ 12,970,565	$ 28,697	$ 604,977	$ 1,798	$ 18,704,146
Accumulated depreciation and impairment
Balance at January 1, 2025	$ -	$ 2,210	$ 1,644,846	$ 8,661,407	$ 22,718	$ 369,496	$ -	$ 10,700,677
Disposals	-	(1,599)	(21,887)	(310,344)	-	(13,028)	-	(346,858)
Depreciation expenses	-	213	188,697	942,330	2,379	64,676	-	1,198,295
Reversed of impairment losses	-	-	-	(296)	-	-	-	(296)
Reclassified as investment properties	-	-	(6,157)	-	-	-	-	(6,157)
Reclassified	-	-	(282)	217	-	65	-	-
Effect of foreign currency exchange differences	-	-	(11,806)	(60,441)	(352)	(3,997)	-	(96,596)
Balance at December 31, 2025	$ -	$ 824	$ 1,793,411	$ 9,212,873	$ 24,745	$ 417,212	$ -	$ 11,449,065
Carrying value at December 31, 2025	$ 695,513	$ 601	$ 2,607,760	$ 3,757,692	$ 3,952	$ 107,765	$ 1,798	$ 7,255,081

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Land improvements 7 years
Buildings 3-51 years
Equipment
Major production equipments 1-10 years
Temperature control systems 4-7 years
Transportation equipments 4-7 years
Transportation equipments 4-5 years
Office equipment 2-8 years

Property, plant and equipment pledged as collateral for bank borrowings is set out in Note 30.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amounts
Land use right	$ 188,330	$ 196,807
Buildings	3,858	6,430
Transportation equipment	2,510	4,872
	$ 194,698	$ 208,109
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ -	$ 11,923
Depreciation charge for right-of-use assets
Land use right	$ 4,555	$ 4,685
Buildings	2,572	3,152
Transportation equipment	2,362	1,894
	$ 9,489	$ 9,731
Income from the subleasing of right-of-use assets (presented in other income)	$ (1,075)	$ (1,106)

Right-of-use assets pledged as collateral for bank borrowings are set out in Note 30.

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 6,500	$ 8,400
Non-current	1,814	8,349
	$ 8,314	$ 16,749

Range of discount rates for lease liabilities was as follows:

	December 31
	2025	2024
Buildings	2.49%-3.45%	1.27%-3.85%
Transportation equipment	3%-3.14%	3%-3.14%

c. Material lease-in activities and terms

The Group purchased the land use right for the construction of plants, offices and retail stores with use term of 50 years in mainland China and its payments was paid fully at the time of contract signed and can be renewed upon the expiration of the period. The Group does not have purchase options to acquire the land and buildings at the end of the contract.

d. Other lease information

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 396	$ 366
Total cash outflow for leases	$ (9,011)	$ (9,079)

The Group leases certain buildings which qualify as short-term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

INVESTMENT PROPERTIES

	Completed Investment Properties
Cost
Balance at January 1, 2024	$ 627,280
Transfer from inventories	66,433
Effect of foreign currency exchange differences	31,952
Balance at December 31, 2024	$ 725,665
Accumulated depreciation and impairment
Balance at January 1, 2024	$ (87,038)
Depreciation expenses	(23,589)
Effect of foreign currency exchange differences	(4,348)
Balance at December 31, 2024	$ (114,975)
Carrying amounts at December 31, 2024	$ 610,690
Cost
Balance at January 1, 2025	$ 725,665
Disposal	(783)
Transfer from property, plant and equipment	8,519
Effect of foreign currency exchange differences	(13,125)
Balance at December 31, 2025	$ 720,276
	(Continued)

Completed Investment Properties

Accumulated depreciation and impairment

Balance at January 1, 2025	$ (114,975)
Disposal	783
Transfer from property, plant and equipment	(6,157)
Depreciation expenses	(24,757)
Effect of foreign currency exchange differences	1,041
Balance at December 31, 2025	$ (144,065)
---	---
Carrying amounts at December 31, 2025	$ 576,211

(Concluded)

The investment real estate held by the combined company is mainly located in Pingzhen District of Taoyuan City and Ningbo City, Mainland China, and some of the factories and offices are leased to collect rents. The other part of the investment real estate is located in Chongqing City, mainland China, and is mainly self-built shopping malls to collect rents.

The investment properties held by the Group are depreciated using the straight-line method over their useful lives of 3-60 years.

The fair value of the Group's investment properties as of December 31, 2025 and 2024 was $270,434 thousand and $1,209,444 thousand, respectively. The determination of fair value was not performed by independent qualified professional valuers; however, the management of the Group used the valuation model that market participants would use in determining the fair value. The valuation was arrived at by reference to market evidence of transaction prices for similar properties.

All of the Group's investment properties were freehold properties. The investment properties pledged as collateral for bank borrowing are set out in Note 30.

18. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Bank loans	$ 296,231	$ 135,441
Letters of credit	99,249	70,685
Short-term borrowings	$ 395,480	$ 206,126

The interest rates on the bank loans and letters of credit were 1.70%-4.48% and 2.20%-3.20% per annum as of December 31, 2025 and 2024, respectively.

37 -

b. Long-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 30)
Bank loans	$ -	$ 493,627
Less: Current portion	-	(59,284)
	-	434,343
Unsecured borrowings
Bank loans	1,666,717	1,421,589
Less: Current portion	(385,281)	(668,905)
	1,281,436	752,684
Long-term borrowings	$ 1,281,436	$ 1,187,027
Detail of borrowings
Interest rate	0.98%-2.85%	0.98%-3.85%
Maturity date	Due by	Due by
	December 2029	October 2028
19. OTHER LIABILITIES
	December 31
	2025	2024
Current
Other payables
Payables for bonuses to employees and directors	$ 257,241	$ 281,492
Payables for commissions	28,943	20,655
Payables for salaries	179,366	185,907
Payables for bonuses	545,291	510,759
Payables for annual leave	44,835	48,950
Payables for purchases of equipment	122,273	95,250
Others	173,235	168,284
	$ 1,351,184	$ 1,311,297
Deferred revenue
Arising from government grants (Note 26)	$ 51,309	$ 43,616
Others	647	1,130
	$ 51,956	$ 44,746
Non-current
Deferred revenue
Arising from government grants (Note 26)	$ 159,919	$ 61,369
Others	-	659
	$ 159,919	$ 62,028

39 -

20. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

The employees of the Group's subsidiaries in mainland China are members of a state-managed retirement benefit plan operated by the government of China. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

b. Defined benefit plans

The defined benefit plan adopted by the Company of the Group in accordance with the Labor Standards Act is operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contribute amounts equal to 9% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Group has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ -	$ 73,551
Fair value of plan assets	-	(78,778)
Net defined benefit liabilities	$ -	$ (5,227)

Movements in net defined benefit liabilities (assets) were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities (Assets)
Balance on January 1, 2024	$ 176,155	$ (156,050)	$ 20,105
Service cost
Current service cost	791	-	791
Past service cost	2,005	-	2,005
Past service cost and loss (gain) on settlements	(996)	700	(296)
Net interest expense (income)	2,088	(2,077)	11
Recognized in profit or loss	3,888	(1,377)	2,511
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(12,908)	(12,908)
Actuarial (gain) loss - changes in financial assumptions	(6,261)	-	(6,261)
Actuarial (gain) loss - experience adjustments	(1,214)	-	(1,214)
Recognized in other comprehensive income	(7,475)	(12,908)	(20,383)
Contributions from the employer	-	(7,460)	(7,460)
Benefits paid	(99,017)	99,017	-
Balance on December 31, 2024	73,551	(78,778)	(5,227)
Service cost
Current service cost	720	-	720
Net interest expense (income)	1,103	(1,196)	(93)
Recognized in profit or loss	1,823	(1,196)	627
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(8,677)	(8,677)
Actuarial (gain) loss - experience adjustments	(6,632)	-	(6,632)
Recognized in other comprehensive income	(6,632)	(8,677)	(15,309)
Contributions from the employer	-	(856)	(856)
Benefits paid	(68,742)	68,742	-
Recovered plan assets	-	20,765	20,765
Balance on December 31, 2025	$ -	$ -	$ -

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

	For the Year Ended December 31
	2025	2024
Cost of goods sold	$ 362	$ 1,344
Selling and marketing expenses	127	219
General and administrative expenses	77	355
Research and development expenses	61	593
	$ 627	$ 2,511

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the (government/corporate) bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rate(s)	1.25%	1.50%
Expected rate(s) of salary increase	2.50%	2.50%

If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
Discount rate(s)
0.25% increase	$ -	$ (1,411)
0.25% decrease	$ -	$ 1,455
Expected rate(s) of salary increase
0.25% increase	$ -	$ 1,418
0.25% decrease	$ -	$ (1,382)

The above sensitivity analysis may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that changes in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plan for the next year	$ -	$ 2,052
Average duration of the defined benefit obligation	-	9.1 years

21. EQUITY

a. Share capital - ordinary shares

	December 31
	2025	2024
Shares authorized (in thousands of shares)	500,000	500,000
Shares authorized, par value $10 (in thousands of dollars)	$ 5,000,000	$ 5,000,000
Shares issued and fully paid (in thousands of shares)	342,993	342,993
Shares issued and fully paid (in thousands of dollars)	$ 3,429,930	$ 3,429,930

In order to align with long-term operational development, the Company introduced strategic partners, strengthened operational capital, and enhanced its financial structure. Considering the cost of raising funds and the timeliness and convenience of the introduction, the shareholders' meeting held on May 28, 2024, approved a private placement of up to 25,000 thousand shares of common stock through a cash capital increase. On June 20, 2024, the Board of Directors approved the issuance of 25,000 thousand common shares through a cash capital increase, with all shares to be subscribed for in cash by specific individuals, at a premium price of $93.5 per share. The total amount raised through the private placement was $2,337,500 thousand. The capital increase was registered and completed with the effective date set as July 2, 2024.

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

The Company's 30,000 thousand shares authorized were reserved for the issuance of convertible bonds and employee share options.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital*
Issuance of ordinary shares	$ 2,699,275	$ 2,699,275
Conversion of bonds	1,814,500	1,814,500
Overdue options	80,518	80,518
The difference between consideration received or paid and the carrying amount of the subsidiaries' net assets during actual disposal or acquisition	331	331
May only be used to offset a deficit
Share of changes in capital surplus of associates or joint venture	23,981	23,981
Other	3,432	3,532
	$ 4,622,037	$ 4,622,137

Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and once a year).

c. Retained earnings and dividend policy

The shareholders of the Company held their regular meeting on May 27, 2025 and in that meeting, resolved the amendments to the Articles. The amendments explicitly stipulate that the proposal for profit distribution or offsetting of losses should be made at the end of six months of the fiscal year. The board of directors is authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders’ meeting.

Under the dividends policy as set forth in the amended Articles, profit distribution or offset of deficit can be made after the end of each half of the fiscal year, relevant proposals shall be formulated by the Board of Directors and, in accordance with applicable laws, regulations, and the principles set forth in the Articles of Incorporation, be reported to or submitted for approval at the shareholders’ meeting.

Under the dividends policy as set forth in the Articles before the amendments, where 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 or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonuses to shareholders.

For the policies on distribution of employees’ compensation and remuneration of directors and supervisors before and after amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 23(g).

The Corporation’s dividend policy takes into account the current and future investment environment, funding requirements, domestic and international competitiveness, and capital budgeting, while balancing shareholder interests and the Corporation’s long-term financial planning. Accordingly, distributable earnings for the year shall be allocated as shareholders’ dividends, which may be distributed in the form of cash or stock. Among them, cash dividends shall not be less than 50% of the total dividends.

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

When distributing the surplus, the Company is required to set aside additional special reserve equivalent to the net debit balance of the other equity interests in accordance with legal provisions (e.g., exchange differences on the translation of financial statements of foreign operating institutions, accumulated balances of unrealized gains and losses on financial assets at fair value through other comprehensive income). If there is a subsequent decrease in the amount of deductions from other equity items, the decrease can be transferred back to unappropriated earnings from the special surplus reserve.

The appropriations of earnings for 2024 and 2023, which were approved in the shareholders’ meetings on May 27, 2025 and May 28, 2024, respectively, were as follows:

	Appropriation of Earnings		Dividends Per Share (NT$)
	For Fiscal Year 2024	For Fiscal Year 2023	For Fiscal Year 2024	For Fiscal Year 2023
Legal reserve	$ 215,395	$ 194,468	$ -	$ -
Special reserve	(304,974)	384,696	-	-
Cash dividends	1,783,563	1,393,911	5.2	4.5

The appropriations of earnings for 2025 were as follows:

	Appropriation of Earnings	Dividends Per Share (NT$)
Legal reserve	$ 204,430	$ -
Special reserve	251,307	-
Cash dividends	1,461,970	4.3

In addition, on March 9, 2026, the Board of Directors resolved to distribute cash of $169,996 thousand from capital surplus. The above cash dividends were approved for distribution by the Board on March 9, 2026. The remaining items of earnings distribution were approved at the shareholders' meeting on May 27, 2026.

d. Others equity items

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

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ (140,531)	$ (582,706)
Exchange differences on the translation of the financial statements of foreign operations	(224,852)	424,239
Share from associates accounted for using the equity method	(3,775)	17,936
Balance on December 31	$ (369,158)	$ (140,531)

2) Unrealized valuation gain (loss) on financial assets at FVTOCI

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 67,671	$ 54,939
Recognized for the year
Unrealized gain (loss) - equity instruments	54,661	12,793
Share from associates accounted for using the equity method	(38)	(61)
Other comprehensive income (loss) recognized for the year	54,623	12,732
Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal	(227,236)	-
Balance on December 31	$ (104,942)	$ 67,671

3) Non-controlling interests

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 119,824	$ -
Share in profit for the year	(195)	(876)
Other comprehensive income for the year
Foreign currency translation differences on financial statements of foreign operations	(11,803)	-
Acquisition of non-controlling interests in subsidiaries	9,231	120,700
Balance on December 31	$ 117,057	$ 119,824

e. Treasury shares

Purpose of Buy-back	Shares Transferred to Employees (In Thousands of Shares)
Number of shares on January 1, 2025	-
Increase during the year	3,000
Number of shares at December 31, 2025	3,000

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as the rights to dividends and to vote.

REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Sale of goods	$ 13,334,425	$ 12,658,408
Revenue from leases	14,476	13,850
	$ 13,348,901	$ 12,672,258

Contract Balances

	December 31, 2025	December 31, 2024	January 1, 2024
Trade receivables (Note 10)	$ 3,455,231	$ 3,569,450	$ 3,167,780
Contract liabilities - current
Construction of properties	$ -	$ 42	$ 40
Sale of goods	17,579	17,886	31,550
	$ 17,579	$ 17,928	$ 31,590

The contract liabilities were unearned sales revenue and accounted for other current liabilities.

23. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations was attributable to:

a. Interest income

	For the Year Ended December 31
	2025	2024
Bank deposits	$ 37,818	$ 50,268
Financial assets at amortized cost	6,171	7,143
Others	9,672	15,006
	$ 53,661	$ 72,417

b. Other income

	For the Year Ended December 31
	2025	2024
Income from government grants	$ 106,656	$ 98,173
Dividends	1,072	4,651
Equipment procurement projects	37,914	-
Others	75,992	34,549
	$ 221,634	$ 137,373

c. Other gains and losses

	For the Year Ended December 31
	2025	2024
Gain (loss) on disposal of property, plant and equipment	$ 11,500	$ (332)
Fair value changes of financial assets and financial liabilities
Financial assets mandatorily at FVTPL	26,455	31,998
Net foreign exchange (losses) gains	(41,083)	259,956
Reversal of impairment losses on property, plant and equipment	296	5,617
Depreciation of investment properties	(5,772)	(5,566)
Others	(30,858)	(23,164)
	$ (39,462)	$ 268,509

d. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 66,419	$ 49,617
Interest on convertible bonds	-	6,022
Interest on lease liabilities	387	504
	$ 66,806	$ 56,143
e. Depreciation and amortization
	For the Year Ended December 31
	2025	2024
Property, plant and equipment	$ 1,198,295	$ 1,130,326
Investment properties	24,757	23,589
Right-of-use assets	9,489	9,731
Intangible assets	15,095	17,946
	$ 1,247,636	$ 1,181,592
An analysis of depreciation by function
Operating costs	$ 912,082	$ 860,398
Operating expenses	314,687	297,682
Other gains and losses	5,772	5,566
	$ 1,232,541	$ 1,163,646
An analysis of amortization by function
Operating costs	$ 1,734	$ 143
Operating expenses	13,361	17,803
	$ 15,095	$ 17,946
f. Employee benefits expense
	For the Year Ended December 31
	2025	2024
Post-employment benefits (Note 20)
Defined contribution plans	$ 149,844	$ 134,786
Defined benefit plans	627	2,511
	150,471	137,297
Other employee benefits
Payroll expense	2,941,636	2,722,425
Labor and health insurance	183,194	146,564
Others	133,106	117,073
	3,257,936	2,986,062
	$ 3,408,407	$ 3,123,359
		(Continued)

For the Year Ended December 31
2025 2024

An analysis of employee benefits expense by function
Operating costs $ 2,061,023 $ 1,827,338
Operating expenses 1,347,384 1,296,021
$ 3,408,407 $ 3,123,359
(Concluded)

g. Employees’ compensation and remuneration of directors for 2025 and 2024

The Company accrued employees’ compensation and remuneration of directors at the rates no less than 3% and no higher than 2%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. The shareholders of the Company resolved the amendments to the Company’s Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of no less than 35% of the compensation of employees as compensation distributions for non-executive employees.

The employees’ compensation and remuneration of directors for the years ended December 31, 2025 and 2024 which were approved by the Company’s board of directors on March 9, 2026 and March 10, 2025, respectively, were as follows:

Accrual rate

For the Year Ended December 31
2025 2024

Employees’ compensation 9.0% 9.0%
Remuneration of directors 1.5% 1.5%

Amount

For the Year Ended December 31
2025 2024

Employees’ compensation $ 201,897 $ - $ 241,279 $ -
Remuneration of directors 33,649 - 40,213 -

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

There was no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

48 -

49 -

24. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Major components of tax expense were as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 397,592	$ 395,111
Income tax on unappropriated earnings	7,750	-
Adjustments for prior year	(10,644)	(7,782)
	394,698	387,329
Deferred tax
In respect of the current year	1,287	50,972
Income tax expense recognized in profit or loss	$ 395,985	$ 438,301

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

	For the Year Ended December 31
	2025	2024
Profit before tax from continuing operations	$ 2,200,324	$ 2,574,840
Income tax expense calculated at the statutory rate	$ 440,065	$ 514,968
Tax effect of adjusting items:
Non-deductible expenses in determining taxable income	33,610	5,415
Tax-exempt income	(4,399)	(6,986)
Deferred tax effect of earnings of subsidiaries	96,465	101,531
Income tax on unappropriated earnings	7,750	-
Unrecognized temporary differences	160	(1,857)
Unrecognized loss carryforwards	3,962	5,858
Investment tax credit	(102,478)	(100,501)
Effect of different tax rate of group entities operating in other jurisdictions	(68,506)	(72,345)
Adjustment for prior years’ tax	(10,644)	(7,782)
Income tax expense recognized in profit or loss	$ 395,985	$ 438,301

b. Income tax expense recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year
Remeasurement of defined benefit plans	$ 3,062	$ 4,077

c. Current tax assets and liabilities

	December 31
	2025	2024
Current tax assets
Tax refund receivable	$ 78,982	$ 78,982
Current tax liabilities
Income tax payable	$ 109,474	$ 96,968

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

	Opening Balance	Recognize in Profit or Loss	Recognize in Other Comprehensive Income	Exchange Differences	Closing Balance
Deferred tax assets
Unrealized loss on inventories	$ 8,097	$ 23	$ -	$(25)	$ 8,095
Payables for annual leave	8,355	(534)	-	(60)	7,761
Determine benefit obligation	1,317	(46)	(1,271)	-	-
Property, plant and equipment	2,413	(43)	-	(48)	2,322
Financial liabilities at fair value through profit or loss	910	(811)	-	-	99
Deferred revenue	7,885	5,775	-	28	13,688
Others	10,179	(5,474)	-	(42)	4,663
	$ 39,156	$(1,110)	$(1,271)	$(147)	$ 36,628
Deferred tax liabilities
Associates	$ 98,457	$ 6,089	$ -	$ -	$ 104,546
Unrealized exchange gains	9,910	(1,598)	-	-	8,312
Determine benefit obligation	-	-	1,791	-	1,791
Financial assets at fair value through profit or loss	940	692	-	19	1,651
Property, plant and equipment	30,121	(5,006)	-	(738)	24,377
	$ 139,428	$ 177	$ 1,791	$(719)	$ 140,677

For the year ended December 31, 2024

	Opening Balance	Recognize in Profit or Loss	Recognize in Other Comprehensive Income	Exchange Differences	Closing Balance
Deferred tax assets
Unrealized loss on inventories	$ 8,748	$(705)	$-	$54	$8,097
Unrealized exchange loss	16,235	(16,235)	-	-	-
Payables for annual leave	7,594	676	-	85	8,355
Determine benefit obligation	6,384	(990)	(4,077)	-	1,317
Property, plant and equipment	3,114	(842)	-	141	2,413
Financial liabilities at fair value through profit or loss	4,950	(4,040)	-	-	910
Deferred revenue	12,373	(5,007)	-	519	7,885
Others	7,910	2,175	-	94	10,179
	$ 67,308	$(24,968)	$(4,077)	$893	$ 39,156

(Continued)

51 -

	Opening Balance	Recognize in Profit or Loss	Recognize in Other Comprehensive Income	Exchange Differences	Closing Balance
Deferred tax liabilities
Associates	$ 77,494	$ 20,963	$ -	$ -	$ 98,457
Unrealized exchange gains	-	9,910	-	-	9,910
Financial assets at fair value through profit or loss	222	697	-	21	940
Property, plant and equipment	34,076	(5,566)	-	1,611	30,121
	$ 111,792	$ 26,004	$ -	$ 1,632	$ 139,428
					(Concluded)

e. Income tax assessments

The income tax returns through 2022 had been assessed by the tax authorities.

25. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share from continuing operations were as follows:

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Profit for the period attributable to owners of the Company	$ 1,804,534	$ 2,137,415
Interest on convertible bonds after tax	-	4,817
Earnings used in the computation of diluted earnings per share	$ 1,804,534	$ 2,142,232

Weighted average number of ordinary shares outstanding (in thousand shares):

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares in the computation of basic earnings per share	341,977	326,292
Effect of potentially dilutive ordinary shares:
Convertible bonds	-	6,340
Employees’ compensation	2,966	2,764
Weighted average number of ordinary shares used in the computation of diluted earnings per share	344,943	335,396

The Group may settle the compensation paid to employees by cash or shares; therefore, the Group presumes that the entire amount of the compensation will be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the shares had a dilutive effect. Such dilutive effect of the potential shares was included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

52 -

26. GOVERNMENT GRANTS

As of December 31, 2025 and 2024, the Group received a government grant of $147,236 thousand and $23,860 thousand for its investment of equipment. The amount was recognized as deferred revenue and subsequently transferred to profit or loss over the useful life of the related asset.

27. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity attributable to owners of the Company (comprising issued capital, reserves, retained earnings and other equity).

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

28. FINANCIAL INSTRUMENTS

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

The management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values.

b. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Beneficiary certificate	$ 306	$ -	$ -	$ 306
Floating-rate investment products	-	1,940,403	-	1,940,403
Convertible bonds	17,353	-	-	17,353
	$ 17,659	$ 1,940,403	$ -	$ 1,958,062
Financial assets at FVTOCI
Domestic unlisted shares	$ -	$ -	$ 34,176	$ 34,176
Foreign unlisted shares	-	-	98,674	98,674
	$ -	$ -	$ 132,850	$ 132,850
Financial liabilities at FVTPL
Foreign exchange forward contracts and exchange contracts	$ -	$ 274	$ -	$ 274

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Domestic listed shares	$ 43,000	$ -	$ -	$ 43,000
Foreign exchange forward contracts and exchange contracts	-	1,415	-	1,415
Beneficiary certificate	308	-	-	308
Floating-rate investment products	-	1,405,617	-	1,405,617
Convertible bonds	17,550	-	-	17,550
	$ 60,858	$ 1,407,032	$ -	$ 1,467,890
Financial assets at FVTOCI
Domestic listed shares	$ 40,678	$ -	$ -	$ 40,678
Domestic unlisted shares	-	-	49,292	49,292
Foreign unlisted shares	-	-	310,933	310,933
	$ 40,678	$ -	$ 360,225	$ 400,903

There were no transfers between Levels 1 and 2 in the current and prior years.

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

For the year ended December 31, 2025

	Financial Assets at FVTOCI
	Equity Instruments
Financial assets
Balance on January 1, 2025	$ 360,225
Recognized in other comprehensive income (including in unrealized gain on financial assets at FVTOCI)	(192,253)
Disposal	(23,110)
Effect of foreign currency exchange differences	(12,012)
Balance on December 31, 2025	$ 132,850

For the year ended December 31, 2024

	Financial Assets at FVTOCI
	Equity Instruments
Financial assets
Balance at January 1, 2024	$ 302,913
Recognized in other comprehensive income (including in unrealized gain on financial assets at FVTOCI)	44,959
Effect of foreign currency exchange differences	12,353
Balance at December 31, 2024	$ 360,225

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

Financial Instruments	Valuation Techniques and Inputs
Derivatives - foreign exchange forward contracts and exchange contracts	Discounted cash flow.
	Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
Floating-rate investment products	Discounted cash flow.
	Future cash flows are discounted at a rate that reflects current borrowing interest rates of the bond issuers at the end of the reporting period

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

The Group uses price-book ratio approach, comparing the net value per share with other public companies among similar industries or evaluating share price based on average price-book ratio of other competitors, to capture the present value of the expected future economic benefits to be derived from the ownership of these investees.

The fair values of unlisted equity securities - ROC were determined using income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees. The significant unobservable inputs used are listed in the table below. An increase in long-term revenue growth rates or long-term pre-tax operating margin or a decrease in the WACC or discount for lack of marketability used in isolation would result in an increase in the fair value.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
FVTPL
Mandatorily classified as at FVTPL (1)	$ 1,958,062	$ 1,467,890
Financial assets at amortized cost (2)	7,961,642	8,064,873
Financial assets at FVTOCI
Equity instruments	132,850	400,903
Financial liabilities
FVTPL
Mandatorily classified as at FVTPL (3)	274	-
Amortized cost (4)	5,261,764	5,271,083

1) The balances include beneficiary certificate, foreign exchange forward contracts and exchange contracts, floating-rate investment products and investment of equity instruments.

2) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, other receivables and refundable deposits.

3) The balances include foreign exchange forward contract and exchange contracts.

4) The balances include financial liabilities at amortized cost, which comprise short-term and long-term loans, trade payables, other payables and guarantee deposits received.

d. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, notes receivables, trade receivables, other receivables, trade payables, other payables and borrowings. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provided written principles on foreign currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The corporate treasury function reports quarterly to the Group’s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.

55 -

56 -

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including: Foreign exchange forward contracts to hedge the exchange rate risk arising on the Group’s foreign currency monetary.

There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

Several subsidiaries of the Company have foreign currency denominated sales and purchases, which exposes the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period are set out in Note 34.

Sensitivity analysis

The Group is mainly exposed to the USD and JPY.

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (i.e., the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. The sensitivity analysis included external loans/borrowings as well as loans/borrowings to foreign operations within the Group where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in post-tax profit and other equity associated with the New Taiwan dollar weakening 1% against the relevant currency. For a 1% strengthening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on post-tax profit and other equity and the balances below would be negative.

	USD Impact		JPY Impact
	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Profit or loss	$ 23,744	$ 30,607	$ (1,855)	$ (1,136)

i. The result was mainly attributable to the exposure on outstanding monetary items in USD that were not hedged at the end of the reporting period.

ii. The result was mainly attributable to the exposure on outstanding monetary items in JPY that were not hedged at the end of the reporting period.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group deposit and borrow funds at floating interest rates.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 708,074	$ 1,414,244
Financial liabilities	395,480	242,126
Cash flow interest rate risk
Financial assets	3,515,612	2,811,300
Financial liabilities	1,666,717	1,879,216

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the year. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the year was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/(decreased) by $4,622 thousand and $2,429 thousand, respectively, which was mainly a result of its floating rate bank deposits and bank borrowings.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the total of the following:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and
b) The maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

57 -

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Group had available unutilized short-term bank loan facilities of $9,566,246 thousand and $9,135,693 thousand, respectively.

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

The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

To the extent that interest flows are floating rate, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

December 31, 2025

	Weighted Average Effective Interest Rate (%)	Less than 1 Year	2-3 Years	4-5 Years	5+ Years	Total
Non-derivative financial liabilities
Trade payables	-	$ 1,717,485	$ -	$ -	$ -	$ 1,717,485
Other payables	-	1,352,558	-	-	-	1,352,558
Lease liabilities	2.49-3.45	6,500	1,814	-	-	8,314
Variable interest rate liabilities	0.98-2.85	385,281	1,268,126	13,130	-	1,666,537
Fixed interest rate liabilities	1.70-4.48	395,480	-	-	-	395,480

December 31, 2024

	Weighted Average Effective Interest Rate (%)	Less than 1 Year	2-3 Years	4-5 Years	5+ Years	Total
Non-derivative financial liabilities
Trade payables	-	$ 1,690,849	$ -	$ -	$ -	$ 1,690,849
Other payables	-	1,328,286	-	-	-	1,328,286
Lease liabilities	1.27-3.85	8,400	8,349	-	-	16,749
Variable interest rate liabilities	0.98-3.85	692,189	1,071,323	115,704	-	1,879,216
Fixed interest rate liabilities	1.22-3.2	242,126	-	-	-	242,126

The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities are subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

b) Liquidity and interest rate risk tables for derivative financial liabilities

The following table details the Group’s liquidity analysis of its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.

December 31, 2025

	On Demand or Less Than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Net settled
Foreign exchange forward contracts and exchange contracts	$ 534	$ (808)	$ -	$ -	$ -
December 31, 2024
	On Demand or Less Than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Net settled
Foreign exchange forward contracts and exchange contracts	$ 519	$ 896	$ -	$ -	$ -

29. TRANSACTIONS WITH RELATED PARTY

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed as follows.

a. Related Party Name and Category

Related Party Name	Related Party Category
Tai Shing Electronics Components Corp.	Associate
TSE Technology (Ningbo) Co., Ltd.	Associate
Liang Shing Eclife Corp.	Other associate
LFC (Ningbo) Semiconductor Limited	Other associate
PETER LIN	Chairman of the Company

b. Sales of goods

Related Party Category	For the Year Ended December 31
	2025	2024
Associates	$ 36,252	$ 28,609
Other associates	7,485	6,398
	$ 43,737	$ 35,007

Selling prices and payment terms offered to related parties were similar with those offered to third parties.

c. Purchases of goods

Related Party Category	For the Year Ended December 31
	2025	2024
Associates	$ 46,332	$ 290
Other associates	5,230	4,987
	$ 51,562	$ 5,277

Purchase prices and payment terms offered by related parties were similar with those offered by third parties.

d. Other income

Related Party Category	For the Year Ended December 31
	2025	2024
Associates	$ 84	$ 101

e. Operating expenses

Related Party Category	For the Year Ended December 31
	2025	2024
Other associates	$ 1,973	$ 1,587

f. Commission revenue

Related Party Category	For the Year Ended December 31
	2025	2024
Associates	$ 1,535	$ 1,515

g. Rental revenue

Related Party	Location	Rent Collection	For the Year Ended December 31
			2025		2024
			Amount	% to Total Account Balance	Amount	% to Total Account Balance
TSE Technology (Ningbo) Co., Ltd.	Building P5, 1F., No. 189, Huangshan W. Rd., Beilun Dist., Ningbo City	Based on contract, and paid on a monthly basis	$ 8,856	-	$ 4,589	-
LFC (Ningbo) Semiconductor Limited	Building D4, No. 189, Huangshan W. Rd., Beilun Dist., Ningbo City	Based on contract, and paid on a monthly basis	371	-	382	-
Tai-Shing Electronics Components Corporation	6F., No. 4, Gongye 6th Rd., Pingzhen Dist., Taoyuan City 324, Taiwan	Based on contract, and paid on a monthly basis	3,682	-	3,619	-
			$ 12,909		$ 8,590

There is no significant difference in transaction terms between related parties and unrelated parties.

h. Receivables from related parties (excluding loans to related parties)

	December 31
Related Party Category	2025	2024
Associates	$ 16,779	$ 7,638
Other associates	2,761	1,333
Less: Allowance for impairment loss	(68)	(68)
	$ 19,472	$ 8,903

The outstanding trade receivables from related parties are unsecured.

i. Payables to related parties (excluding loans from related parties)

	December 31
Related Party Category	2025	2024
Other associates	$ 20,743	$ 1,458
Associates	941	309
	$ 21,684	$ 1,767

The outstanding trade payables from related parties are unsecured.

Payment term of the transactions to related parties were similar to those for third parties.

j. Other receivables from related parties

	December 31
Related Party Category	2025	2024
Associates	$ 845	$ 820
Other	9	14
	$ 854	$ 834

k. Other payables to related parties

	December 31
Related Party Category	2025	2024
Other associates	$ 1,190	$ 16,817
Chairman of the Company	184	172
	$ 1,374	$ 16,989

Prepayments for equipment

	December 31
Related Party Category	2025	2024
Other associates	$ -	$ 809

m. Acquisitions of property, plant and equipment

	Purchase Price
	For the Year Ended December 31
Related Party Category	2025	2024
Other associates	$ 9,522	$ 38,114

n. Lease arrangements - Group is lessee

Line Item	Related Party Category	December 31
		2025	2024
Lease liabilities - current	Chairman of the Company PETER LIN	$ 864	$ 1,735
Lease liabilities - non-current	Chairman of the Company PETER LIN	$ -	$ 910
		For the Year Ended December 31
Related Party Category		2025	2024
Interest expense
Chairman of the Company		$ 73	$ 131
Lease expense
Chairman of the Company		$ 1,734	$ 1,707

o. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 156,509	$ 155,090
Post-employment benefits	1,934	3,057
	$ 158,443	$ 158,147

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

63 -

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for forward exchange transactions and bank borrowings:

	December 31
	2025	2024
Building and equipment, net	$ 251,644	$ 294,997
Investment properties	10,494	10,266
Pledged deposits	88,703	104,092
Pledged time deposits	40,000	-
Right-of-use assets	9,731	10,307
	$ 400,572	$ 419,662

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant contingencies and unrecognized commitments of the Group at December 31, 2024 were as follows:

a. On November 8, 2021, the board of directors of the Company approved its subsidiary TETC CORP. NINGBO to construct a plant project, with an estimated investment of RMB145,000 thousand. On April 19, 2022, the Company signed a construction contract. On June 25, 2024, due to a modification of the project design, an additional amount append to RMB123,000 thousand was recorded. The total contract amount divided into paid and unpaid is as follows:

	Contract Amount (Tax Included)	Paid Amount (Tax Included)	Unpaid Amount (Tax Included)
Property, plant and equipment	RMB 123,000	RMB 111,983	RMB 11,017

b. As of December 31, 2025, unrecognized commitments of the Group were as follows:

	Contract Amount (Tax Excluded)	Paid Amount (Tax Excluded)	Unpaid Amount (Tax Excluded)
Acquisition of machinery and equipment	$ 137,800	$ 111,325	$ 26,475
Acquisition of machinery and equipment	RMB 48,738	RMB 19,409	RMB 29,329
Acquisition of machinery and equipment	JPY 209,675	JPY 142,590	JPY 67,085
Acquisition of machinery and equipment	USD 2,071	USD 1,975	USD 96
Acquisition of machinery and equipment	IDR 40,764,939	IDR 38,882,421	IDR 1,882,518

32. SIGNIFICANT EVENTS AFTER REPORTING PERIOD

a. On February 9, 2026, the Board of Directors approved the disposal of all ordinary shares of Taishing Electronics Co., Ltd. held by the Company. The Company plans to dispose of 8,802 thousand shares at a price of NT$48 per share, with a total transaction amount of approximately NT$422,496 thousand.

b. On March 9, 2026, the Board of Directors approved a proposal to conduct a private placement of ordinary shares in accordance with Article 43-6 of the Securities and Exchange Act and other applicable regulations, in order to support the Company's long-term business development and strengthen working capital, while considering fundraising costs as well as efficiency and flexibility in introducing new capital. The Company intends to seek authorization from the shareholders' meeting to allow the Board of Directors to determine, based on negotiations with specific parties and prevailing market conditions, the timing of the private placement, within a limit of up to 50,000,000 shares, and to carry out the private placement in one or more tranches (up to two tranches) within one year from the date of the shareholders' approval.

33. OTHER ITEMS

On February 15, 2023, the president of the ROC announced the amendments to the "Climate Change Response Act", which added the provision of carbon fee collection. Subsequently, the Ministry of Environment announced the "Regulations Governing the Collection of Carbon Fees", "Regulations for Administration of Voluntary Reduction Plans" and "Designated Greenhouse Gas Reduction Goal for Entities Subject to Carbon Fees" on August 29, 2024 and the carbon fee rate on October 21, 2024. The fee will be levied starting from January 1, 2025. Based on the emissions of the Group in 2024, the Group expects that it will not be the entity subject to carbon fees.

34. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

Unit: In Thousands of Foreign Currencies and New Taiwan Dollars

December 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 81,549	31.438 (USD:NTD)	$ 2,563,737
USD	13,194	7.0289 (USD:RMB)	414,793
USD	1,251	16,634 (USD:IDR)	39,329
JPY	1,284,322	0.2008 (JPY:NTD)	257,892
JPY	1,517,249	0.0449 (JPY:RMB)	304,664
JPY	176,188	0.0064 (JPY:USD)	35,379
Financial liabilities
Monetary items
USD	18,535	31.438 (USD:NTD)	582,703
USD	1,285	7.0289 (USD:RMB)	40,398
USD	648	16,634 (USD:IDR)	20,372
JPY	1,528,126	0.2008 (JPY:NTD)	306,848
JPY	2,254,302	0.0449 (JPY:RMB)	452,664
JPY	119,300	0.0064 (JPY:USD)	23,955

December 31, 2024

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 93,304	32.7810 (USD:NTD)	$ 3,058,598
USD	10,218	7.1883 (USD:RMB)	334,956
JPY	1,409,219	0.2098 (JPY:NTD)	295,654
JPY	977,152	0.0460 (JPY:RMB)	205,006
JPY	635,293	0.0064 (JPY:USD)	133,284
Financial liabilities
Monetary items
USD	8,959	32.7810 (USD:NTD)	293,685
USD	1,196	7.1883 (USD:RMB)	39,206
JPY	1,340,041	0.2098 (JPY:NTD)	281,141
JPY	2.054,247	0.0460 (JPY:RMB)	430,981
JPY	168,827	0.0064 (JPY:USD)	35,420

For the years ended December 31, 2025 and 2024, realized and unrealized net foreign exchange gains (losses) were $(41,083) thousand and $259,956 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the entities in the group.

36. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others. (None)
2) Endorsements/guarantees provided. (None)
3) Significant marketable securities held. (Table 1)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20 percent of the paid-in capital. (Table 2)
5) Receivables from related parties amounting to at least NT$100 million or 20 percent of the paid-in capital. (Table 3)
6) Intercompany relationships and significant intercompany transactions. (Table 7)

b. Information on investees. (Table 4)

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 5)

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Table 6)

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year.

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year.

c) The amount of property transactions and the amount of the resultant gains or losses.

d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes.

e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds.

f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.

SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments under IFRS 8 “Operating Segments” were as follows:

a. Crystal segment

The chief operating decision maker see every crystal selling unit in Taiwan and China as an operating segment. While preparing the financial report, the Group considers the following reasons:

1) The similar gross profit between the selling units.

2) The similar product’s nature and manufacturing process.

3) The same product’s delivery type.

66 -

b. Real estate development segment

The department and sales of real estate, along with mall space leasing in Chongqing is considered a separate operating segment by the chief operating decision maker (CODM).

Segment revenue and results

	Segment Revenue		Segment Profit
	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Crystal segment	$ 13,334,425	$ 12,658,408	$ 2,041,843	$ 2,158,283
Real estate development segment	14,476	13,850	(18,175)	(21,799)
Continuing operations	$ 13,348,901	$ 12,672,258	2,023,668	2,136,484
Interest income			53,661	72,417
Other income			221,634	137,373
Other gains and losses			(39,462)	268,509
Finance costs			(66,806)	(56,143)
Share of profit of associates and joint ventures for using the equity method			7,629	16,200
Profit before tax (continuing operations)			$ 2,200,324	$ 2,574,840

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales for the years ended December 31, 2025 and 2024.

Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors' salaries, share of profit of associates, gains recognized on disposal of interests in former associates, lease income, interest income, gains or losses on disposal of property, plant and equipment, gains or losses on disposal of financial instruments, exchange gains or losses, valuation gains or losses on financial instruments, finance costs and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

c. Revenue from major products and services

	For the Year Ended December 31
	2025	2024
Crystals	$ 9,806,017	$ 9,819,322
Oscillators	3,071,723	2,370,901
Construction contract revenue	14,476	13,850
Others	456,685	468,185
	$ 13,348,901	$ 12,672,258

d. Geographical information

The Group operates in two principal geographical areas - Taiwan and China.

The Group’s revenue from continuing operations from external customers by location of operations and information on its non-current assets by location of assets are detailed below:

| | Revenue from
External Customers | | Non-current Assets | |
| --- | --- | --- | --- | --- |
| | For the Year Ended December 31 | | December 31 | |
| | 2025 | 2024 | 2025 | 2024 |
| Taiwan | $ 547,397 | $ 456,826 | $ 2,865,495 | $ 2,940,252 |
| Asia | 12,016,856 | 11,618,139 | 5,387,957 | 5,548,445 |
| America | 417,529 | 332,402 | 1,206 | 1,307 |
| Europe | 356,492 | 258,781 | 690 | 424 |
| Others | 10,627 | 6,110 | - | - |
| | $ 13,348,901 | $ 12,672,258 | $ 8,255,348 | $ 8,490,428 |

Non-current assets exclude financial instruments and deferred tax assets.

e. Information on major customers

Single customers contributing 10% or more to the Group’s revenue were as follows:

	For the Year Ended December 31
	2025	2024
F Group	$ 2,061,669	$ 1,992,216

TABLE 1

TXC CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
TXC (Ningbo) Corporation	Shares overseas - unlisted company
	Ningbo SJ Electronics Co., Ltd.	None	Financial assets at fair value through other comprehensive income - non-current	63	$ 32,153	1	$ 32,153
	Floating-rate investment products
	Agricultural Bank of China.	None	Financial assets at fair value through profit or loss - current	RMB 61,166	273,576	-	273,576
	Bank of Ningbo	"	"	RMB 50,609	226,360	-	226,360
	Bank of Communications	"	"	RMB 50,542	226,060	-	226,060
	China Everbright Bank	"	"	RMB 10,025	44,841	-	44,841
	Cathay United Bank	"	"	RMB 20,118	89,983	-	89,983
TXC (Chongqing) Corporation	Floating-rate investment products
	China Construction Bank	None	Financial assets at fair value through profit or loss - current	RMB 30,558	136,675	-	136,675
	CTBC Bank	"	"	RMB 47,271	211,430	-	211,430
	Bank of China	"	"	RMB 81,808	365,901	-	365,901
	Hua Xia Bank	"	"	RMB 20,004	89,472	-	89,472
	China Merchants Bank	"	"	RMB 4,031	18,031	-	18,031
Area Ding Kai Investment Management Company Limited	Shares overseas - unlisted company
	Zhejiang Bright Semiconductor Technology Co., Ltd.	None	Financial assets at fair value through other comprehensive income - non-current	7,004	62,618	3	62,618
Chongqing Zhongyang Properties Co., Ltd.	Floating-rate investment products
	Chongqing Rural Commercial Bank	None	Financial assets at fair value through profit or loss - current	RMB 9,123	40,805	-	40,805
	China Construction Bank	"	"	RMB 6,049	27,056	-	27,056
ChongQing Dingsen Commercial Management Co., Ltd.	Floating-rate investment products
	China Construction Bank	None	Financial assets at fair value through profit or loss - current	RMB 1,398	6,251	-	6,251
TETC Corp. Ningbo	Floating-rate investment products
	Agricultural Bank of China.	None	Financial assets at fair value through profit or loss - current	RMB 30,873	138,085	-	138,085
	Bank of Ningbo	"	"	RMB 10,257	45,877	-	45,877

TABLE 2

TXC CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NTS100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Payable or Receivable
			Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
TXC Corporation	TXC (Ningbo) Corporation	Subsidiary	Purchase	$ 2,417,019	34	No significant differences with the third parties	Its trading price depends on its function within the Group	No significant differences with the third parties	$ (611,868)	(35)
	TXC (Ningbo) Corporation	"	Sale	934,818	10	"	"	"	239,634	8
	TXC (Chongqing) Corporation	"	Purchase	1,348,205	19	"	"	"	(367,807)	(21)
	TETC CORP. Ningbo	"	Purchase	446,771	6	"	"	"	(108,099)	(6)
	TETC CORP. Ningbo	"	Sale	270,063	3	"	"	"	48,185	2
	PT TXC Technology Indonesia	"	Purchase	111,158	2	"	"	"	(52,590)	(3)
TXC (Ningbo) Corporation	TXC (Chongqing) Corporation	"	Purchase	361,024	13	"	"	"	(64,449)	(8)
	TETC CORP. Ningbo	"	Sale	136,833	3	"	"	"	45,534	4

TABLE 3

TXC CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Action Taken
TXC Corporation	TXC (Ningbo) Corporation	Subsidiary	$ 239,634	3.68	$ -	-	$ 60,226	$ -
TXC (Ningbo) Corporation	TXC Corporation	Parent entity	611,868	3.83	-	-	408,530	-
TXC (Chongqing) Corporation	TXC Corporation	Parent entity	367,807	3.85	-	-	222,541	-
TETC CORP. Ningbo	TXC Corporation	Parent entity	108,099	4.01	-	-	62,291	-

TABLE 4

TXC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars or U.S. Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee	Share of Profits (Loss)
				December 31, 2025	December 31, 2024	Shares (In Thousands)	Percentage of Ownership	Carrying Value
TXC Corporation	Taiwan Crystal Technology International Ltd.	Western Samoa	Investment management	$ 1,390,461	$ 1,390,461	42,835	100.00	$ 9,419,443	$ 1,139,383	$ 1,156,482
	Taiwan Crystal Technology (HK) Limited	Hong Kong	International trading	2,371	2,371	80	100.00	204,048	2,886	2,886
	TXC Japan Corporation	Japan	Marketing activities	6,172	6,172	2	100.00	28,989	(743)	(743)
	TXC Technology Inc.	U.S.A.	Marketing activities	9,879	9,879	300	100.00	22,254	(832)	(832)
	Tai-Shing Electronics Components Corporation	Taiwan	Manufacture and sales of electronics products	373,432	373,432	8,802	33.34	424,120	62,761	20,925
	TXC Europe GmbH	Germany	Marketing activities	1,746	1,746	50	100.00	18,319	3,921	3,921
TXC (Ningbo) Corporation	PT TXC Technology Indonesia	Indonesia	Research and development, manufacture, and sale of quartz elements and related electronic products	517,840	517,840	16,000	80.00	468,229	(1,206)	(1,011)

TABLE 5

TXC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars or U.S. Dollars)

Name of the investees in mainland China, main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, percentage of ownership, investment income or loss, ending balance of investment, dividends remitted by the investee, and the limit of investment in mainland China:

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2025 (In Thousand)	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025 (In Thousand)	Net Income (Loss) of the Investee	Percentage of Ownership	Investment Gain (Loss)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025
					Outward	Inward
TXC (Ningbo) Corporation	Research and development, manufacture, and sale of quartz elements and related electronic products	$ 2,350,052	Indirect investment of the Corporation in mainland China through the Corporation's subsidiary in a third region	$ 1,427,630	$ -	$ -	$ 1,427,630	$ 1,139,403	100.00	$ 1,139,403	$ 9,478,528	$ 2,159,384
TXC (Chongqing) Corporation	Research and development, manufacture, and sale of quartz elements and related electronic products	1,162,074	Other investment of the Corporation in mainland China	-	-	-	-	233,159	100.00	233,159	1,995,987	306,500
TETC CORP. NINGBO	Research and development, manufacture, and sale of quartz elements and related electronic products	656,740	Other investment of the Corporation in mainland China	-	-	-	-	475,891	100.00	475,891	2,311,229	-
Chongqing Zhongyang Properties Co., Ltd.	Properties development	684,908	Other investment of the Corporation in mainland China	-	-	-	-	(15,847)	100.00	(15,847)	763,545	-
Ningbo Beilun Jingyu Trading Corporation	International trading	7,090	Other investment of the Corporation in mainland China	-	-	-	-	5	100.00	5	6,547	-
LFC (Ningbo) Semiconductor Limited	Research and development in integrated circuit	246,257	Other investment of the Corporation in mainland China	-	-	-	-	(45,272)	29.37	(13,296)	21,828	-
Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited	Investment management	160,043	Other investment of the Corporation in mainland China	-	-	-	-	-	100.00	-	62,893	-
ChongQing Dingxen Commercial Management Co., Ltd.	Property management	4,390	Other investment of the Corporation in mainland China	-	-	-	-	2,348	100.00	2,348	3,738	-
Shanghai JCH Co., Ltd	Marketing activities and technical services	2,238	Other investment of the Corporation in mainland China	-	-	-	-	4,009	100.00	4,009	23,675	-

The limited amounts of the investment in mainland China

Accumulated Outward Remittance for Investments in mainland China as of December 31, 2025	Investment Amounts Authorized by the Investments Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
$ 1,427,630	$ 2,350,052	$ -

Note: The investment in mainland China has no maximum limit since the Company has acquired the approval from the Industrial Development Bureau for the establishment of the Company's operating headquarters in Taiwan.

TABLE 6

TXC CORPORATION AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Company Name	Investee Company	Transaction Type	Purchase/Sale		Price	Transaction Details		Accounts/Notes Receivable (Payable)		Unrealized (Gain) Loss
			Amount	%		Payment Terms	Comparison with Normal Transactions	Ending Balance	%
TXC Corporation	TXC (Ningbo) Corporation	Purchase	$ 2,417,019	34	Its trading price depends on its function within the Group	Similar with third parties	Its trading price depends on its function within the Group	$ (611,868)	(35)	$ 21,567
	TXC (Ningbo) Corporation	Sale	934,818	10	"	"	"	239,634	8	9,480
	TXC (Chongqing) Corporation	Purchase	1,348,205	19	"	"	"	(367,807)	(21)	20,257
	TETC CORP. NINGBO	Purchase	446,771	6	"	"	"	(108,099)	(6)	5,154
	TETC CORP. NINGBO	Sale	270,063	3	"	"	"	48,185	2	2,704
	PT TXC Technology Indonesia	Purchase	111,158	2	"	"	"	(52,590)	(3)	3,146

The transactions of properties and the profit or loss: None.
Endorsements guarantees or collateral directly or indirectly provided to the investees: None.
Financing directly or indirectly provided to the investees: None.
Other transactions that significantly impacted the current year's profit or loss or financial position: None.

TABLE 7

TXC CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Company Name	Counterparty	Relationship (Note 1)	Transaction Details
				Financial Statement Accounts	Amount	Payment Terms (Notes 1 and 2)	Percentage of Total Sales or Assets (%)
0	TXC Corporation	TXC (Ningbo) Corporation	a	Sales	$ 934,818	a	7
				Purchase	2,417,019	a	18
				Trade receivables	239,634	a	1
				Trade payables	611,868	a	3
		TXC (Chongqing) Corporation	a	Purchase	1,348,205	a	10
		TETC CORP. NINGBO	a	Trade payables	367,807	a	2
				Sales	270,063	a	2
				Purchase	446,771	a	3
				Trade receivables	48,185	a	-
		PT TXC Technology Indonesia	a	Trade payables	108,099	a	-
				Purchase	111,158	a	1
				Trade payables	52,590	a	-
1	TXC (Ningbo) Corporation	TXC (Chongqing) Corporation	c	Purchase	361,024	c	3
				Trade payables	64,449	c	-
		TETC CORP. NINGBO	c	Sales	136,833	c	1
				Trade receivables	45,534	c	-

Note 1: a. Represent the transactions from parent company to subsidiary.
c. Represent the transactions between subsidiaries.

Note 2: In 2025, the selling price and purchasing price were not significantly different from those of third parties, except those for TXC (Ningbo) Corporation, TXC (Chongqing) Corporation, TETC CORP. NINGBO and PT TXC Technology Indonesia which is depending on its function within the Group.

Note 3: The Company may decide whether to list the material transactions in this table according to the principle of materiality.

AI assistant

TXC — Audit Report / Information 2025

52274_rns_2026-04-14_0a415608-f807-42fb-870e-da2311e6af39.pdf

TXC Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

The Authenticity of Sales Revenue from Specific Customers

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TXC CORPORATION AND SUBSIDIARIES

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMEND AND REVISED STANDARDS, AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Financial liabilities at FVTPL

b) Derecognition of financial liabilities

3) Derivative financial instruments

m. Revenue recognition

Revenue from the sale of goods

n. Leasing

1) The Group as lessor

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

11. FINANCE LEASE RECEIVABLES

12. INVENTORIES

13. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

18. BORROWINGS

20. RETIREMENT BENEFIT PLANS

21. EQUITY

23. NET PROFIT FROM CONTINUING OPERATIONS

24. INCOME TAXES RELATING TO CONTINUING OPERATIONS

25. EARNINGS PER SHARE

Net Profit for the Year

26. GOVERNMENT GRANTS

27. CAPITAL MANAGEMENT

28. FINANCIAL INSTRUMENTS

29. TRANSACTIONS WITH RELATED PARTY

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

32. SIGNIFICANT EVENTS AFTER REPORTING PERIOD

33. OTHER ITEMS

34. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

36. SEPARATELY DISCLOSED ITEMS

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