TXC Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
TXC Corporation

Opinion

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

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

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and 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 Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter identified in the Company’s parent company only 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.

The key audit procedures that we performed included the following:

We obtained an understanding for specific customers 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.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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 parent company only financial statements.

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. 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 parent company only 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 parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

TXC CORPORATION

PARENT COMPANY ONLY 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)	$ 1,998,906	10	$ 2,296,766	11
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	17,353	-	61,965	-
Financial assets at amortized cost - current (Notes 4 and 9)	104,016	1	78,674	-
Trade receivables (Notes 4 and 10)	2,536,036	13	2,703,385	14
Trade receivables from related parties (Notes 4, 10 and 26)	309,873	2	351,713	2
Other receivables (Notes 4 and 10)	55,114	-	60,308	-
Other receivables from related parties (Notes 4 and 26)	9	-	1,086	-
Current tax assets (Notes 4 and 22)	78,982	-	78,982	-
Inventories (Notes 4 and 11)	1,489,550	8	1,503,653	8
Other current assets	18,164	-	129,062	1
Total current assets	6,608,003	34	7,265,594	36
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8)	38,079	-	96,392	1
Investments accounted for using the equity method (Notes 4 and 12)	10,117,173	51	9,587,307	48
Property, plant and equipment (Notes 4 and 13)	2,709,173	14	2,482,549	13
Right-of-use assets (Notes 4 and 14)	6,368	-	11,302	-
Investment properties (Notes 4 and 15)	14,745	-	15,966	-
Intangible assets (Note 4)	15,424	-	9,130	-
Deferred tax assets (Notes 4 and 22)	15,914	-	23,383	-
Prepayment for equipment	116,306	1	412,507	2
Refundable deposits	3,480	-	3,572	-
Net defined benefit assets - non-current (Notes 4 and 18)	-	-	5,227	-
Total non-current assets	13,036,662	66	12,647,335	64
TOTAL	$ 19,644,665	100	$ 19,912,929	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 16)	$ 251,504	1	$ -	-
Financial liabilities at fair value through profit or loss - current (Notes 4 and 7)	274	-	-	-
Trade payables	592,965	3	545,977	3
Trade payables to related parties (Note 26)	1,140,374	6	1,100,132	6
Other payables (Note 17)	700,409	4	692,348	4
Other payables to related parties (Note 26)	1,193	-	16,852	-
Current tax liabilities (Notes 4 and 22)	21,751	-	49,629	-
Lease liabilities - current (Notes 4 and 14)	4,697	-	4,896	-
Current portion of long-term borrowings and bonds payable (Note 16)	33,333	-	419,333	2
Other current liabilities	26,905	-	71,630	-
Total current liabilities	2,773,405	14	2,900,797	15
NON-CURRENT LIABILITIES
Long-term borrowings (Note 16)	800,000	4	533,333	3
Deferred tax liabilities (Notes 4 and 22)	114,647	1	108,649	-
Lease liabilities - non-current (Notes 4 and 14)	1,814	-	6,511	-
Guarantee deposits received	35,061	-	39,284	-
Total non-current liabilities	951,522	5	687,777	3
Total liabilities	3,724,927	19	3,588,574	18
EQUITY (Note 19)
Ordinary shares	3,429,930	17	3,429,930	17
Capital surplus	4,622,037	23	4,622,137	23
Retained earnings
Legal reserve	2,653,110	14	2,437,715	12
Special reserve	222,793	1	527,767	3
Unappropriated earnings	5,729,985	29	5,379,666	27
Total retained earnings	8,605,888	44	8,345,148	42
Other equity
Exchange differences on translating the financial statements of foreign operations	(369,158)	(2)	(140,531)	(1)
Unrealized gain on financial assets at fair value through other comprehensive income	(104,942)	-	67,671	1
Total other equity	(474,100)	(2)	(72,860)	-
Treasury shares	(264,017)	(1)	-	-
Total equity	15,919,738	81	16,324,355	82
TOTAL	$ 19,644,665	100	$ 19,912,929	100

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

TXC CORPORATION

PARENT COMPANY ONLY 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, 20 and 26)	$ 9,812,882	100	$ 9,821,044	100
COST OF GOODS SOLD (Notes 11, 21 and 26)	7,780,915	79	7,672,257	78
GROSS PROFIT	2,031,967	21	2,148,787	22
UNREALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES/AND JOINT VENTURES	(13,234)	-	(14,091)	-
REALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES/AND JOINT VENTURES	14,091	-	9,266	-
REALIZED GROSS PROFIT	2,032,824	21	2,143,962	22
OPERATING EXPENSES (Notes 4, 21 and 26)
Selling and marketing expenses	261,174	2	261,769	3
General and administrative expenses	266,320	3	247,924	2
Research and development expenses	694,855	7	723,146	7
Total operating expenses	1,222,349	12	1,232,839	12
PROFIT FROM OPERATIONS	810,475	9	911,123	10
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 21)	37,180	-	44,432	-
Other income (Notes 21 and 26)	51,324	-	26,943	-
Other gains and losses (Notes 21 and 26)	(37,826)	-	194,291	2
Finance costs (Note 21)	(36,043)	-	(38,206)	-
Shares of profits of associates and joint ventures (Note 12)	1,182,639	12	1,260,804	13
Total non-operating income and expenses	1,197,274	12	1,488,264	15
PROFIT BEFORE INCOME TAX	2,007,749	21	2,399,387	25
INCOME TAX EXPENSE (Notes 4 and 22)	203,215	2	261,972	3
NET PROFIT FOR THE YEAR	1,804,534	19	2,137,415	22
			(Continued)

TXC CORPORATION

PARENT COMPANY ONLY 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	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	$ 12,247	-	$ 16,307	-
Unrealized loss on investments in equity instruments at fair value through other comprehensive income	6,027	-	(74,943)	(1)
Share of the other comprehensive income of associates and joint ventures accounted for using the equity method	48,882	1	87,901	1
	67,156	1	29,265	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	(224,852)	(3)	424,239	5
Share of the other comprehensive income (loss) of associates and joint ventures accounted for using the equity method	(3,775)	-	17,936	-
	(228,627)	(3)	442,175	5
Other comprehensive income (loss) for the year, net of income tax	(161,471)	(2)	471,440	5
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 1,643,063	17	$ 2,608,855	27
EARNINGS PER SHARE (Note 23)
From continuing operations
Basic	$ 5.28		$ 6.55
Diluted	$ 5.23		$ 6.39

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

TXC CORPORATION

PARENT COMPANY ONLY 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			Others		Treasury shares	Total Equity
		Ordinary Share	Bond Conversion Entitlement		Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
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 19)
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
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
Convertible bond 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
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
Appropriation of 2024 earnings (Note 19)
Legal reserve	-	-	-	-	215,395	-	(215,395)	-	-	-	-
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
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	-	-	12,533	(228,627)	54,623	-	(161,471)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	-	1,817,067	(228,627)	54,623	-	1,643,063
Donations from shareholders	-	-	-	(100)	-	-	-	-	-	-	(100)
Disposal of equity instruments at fair value through other comprehensive income	-	-	-	-	-	-	227,236	-	(227,236)	-	-
Buy-back of treasury shares	-	-	-	-	-	-	-	-	-	(264,017)	(264,017)
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

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

TXC CORPORATION

PARENT COMPANY ONLY 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	$ 2,007,749	$ 2,399,387
Adjustments for:
Depreciation expenses	497,768	510,508
Amortization expenses	7,498	10,821
Net loss (profit) on fair value changes of financial assets and liabilities at fair value through profit or loss	1,581	(5,103)
Finance costs	36,043	38,206
Interest income	(37,180)	(44,432)
Dividend income	(1,072)	(4,651)
Share of profit of associates and joint ventures	(1,182,639)	(1,260,804)
Gain on disposal of property, plant and equipment	(885)	(2,200)
Write-down of inventories	9,963	8,644
Unrealized gain on the transactions with subsidiaries, associates and joint ventures	13,234	14,091
Realized gain on the transactions with subsidiaries, associates and joint ventures	(14,091)	(9,266)
Changes in operating assets and liabilities:
Trade receivables	167,349	(155,062)
Trade receivables from related parties	41,840	(131,723)
Other receivables	4,669	(33,761)
Other receivables from related parties	1,077	6,742
Inventories	4,140	(46,228)
Other current assets	110,898	(114,151)
Trade payables	46,988	39,180
Trade payables to related parties	40,242	25,173
Other payables	8,052	67,308
Other payables to related parties	(15,659)	14,983
Other current liabilities	(44,725)	41,297
Net defined benefit assets	20,536	(4,948)
Cash generated from operations	1,723,376	1,364,011
Interest paid	(36,034)	(32,737)
Income taxes paid	(220,688)	(165,853)
Net cash generated from operating activities	1,466,654	1,165,421
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of financial assets at fair value through other comprehensive income	64,340	-
Purchase of financial assets at amortized cost	(104,170)	-
Proceeds from sale of financial assets at amortized cost	74,860	1,372
Purchase of financial assets at fair value through profit or loss	-	(75,185)
Proceeds from sale of financial assets at fair value through profit or loss	43,305	-
Payments for property, plant and equipment	(425,540)	(409,048)
		(Continued)

TXC CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025	2024
Proceeds from disposal of property, plant and equipment	$ 4,389	$ 6,128
Increase in refundable deposits	-	(1,006)
Decrease in refundable deposits	92	-
Payments for intangible assets	(13,792)	(6,358)
Increase in prepayment for equipment	-	(153,282)
Interest received	37,695	44,266
Dividend received from associates	451,880	402,840
Other dividends received	23,087	22,215
Net cash (used in) generated from investing activities	156,146	(168,058)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	228,953	-
Repayments of bonds payable	-	(301,400)
Proceeds from long-term borrowings	2,100,000	3,000,000
Repayments of long-term borrowings	(2,219,333)	(4,336,088)
Proceeds from guarantee deposits received	-	29,734
Refund of guarantee deposits received	(4,223)	-
Repayments of principle portion of lease liabilities	(4,896)	(4,418)
Dividends paid to owners of the company	(1,783,563)	(1,393,911)
Proceeds from issuance of ordinary shares	-	2,337,500
Buy-back of treasury shares	(264,017)	-
Other changes in capital surplus	(100)	(147)
Net cash used in financing activities	(1,947,179)	(668,730)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	26,519	(4,704)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(297,860)	323,929
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	2,296,766	1,972,837
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 1,998,906	$ 2,296,766

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

TXC CORPORATION

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

1. ORGANIZATION AND OPERATIONS

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 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 voluntarily 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 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.

11 -

12 -

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the Company’s board of directors on March 9, 2026.

3. APPLICATION OF NEW, AMENDED 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 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 parent company only 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 Company'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 Company 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 Company 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 Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company 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 Company as a whole, the Company 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 parent company only financial statements were authorized for issue, the Company is continuously assessing the possible impact of the above amended standards and interpretations on the Company'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 parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

The parent company only 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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When preparing these parent company only financial statements, the Company used the equity method to account for its investment in subsidiaries, associates and joint ventures. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owner of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries, associates and joint ventures, the share of other comprehensive income of subsidiaries, associates and joint ventures and the related equity items, as appropriate, in these parent company only financial statements.

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 financial statements are authorized for issue; and
3) Liabilities for which the Company 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. Foreign currencies

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

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 was 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.

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For the purpose of presenting parent company only 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.

e. 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.

f. Investments in subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company’s share of equity of subsidiaries.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company’s share of loss of a subsidiary exceeds its interest in that subsidiary (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 Company’s net investment in the subsidiary), the Company continues recognizing its share of further loss, if any.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business 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 Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

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The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Company.

g. Investments in associates

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

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

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

Any excess of the cost of acquisition over the Company’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 Company’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 Company’s proportionate interest in the associate. The Company 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 accounted for using the equity method. If the Company’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.

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When the Company’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 Company’s net investment in the associate), the Company discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Company 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 asset, 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 Company 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 Company 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 Company continues to apply the equity method and does not remeasure the retained interest.

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

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.

Expect 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 effects 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 rental and/or for capital appreciation.

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.

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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 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. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

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 and intangible assets other than goodwill

At the end of each reporting period, the Company 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 Company 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.

l. Financial instruments

Financial assets and financial liabilities are recognized when the Company 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 FVTPL) 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 FVTPL are recognized immediately in profit or loss.

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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.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such 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 dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 25.

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 assets 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, note and trade receivables at amortized cost, other receivables, 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 Company 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 Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets

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

The Company always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Company 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 Company 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 Company 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.

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2) Financial liabilities

a) Subsequent measurement

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

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are held for trading.

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 25.

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 Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contract 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 Company 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. Leases

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

1) The Company as lessor

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

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

2) The Company as lessee

The Company 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 parent company only 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 Company 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 parent company only 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.

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

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p. Government grants

Government grants related to income are not recognized until there is reasonable assurance that the Company 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 Company recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Company 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 Company 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 expenses 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 benefits expense in the period in which they occur or 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 Company'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.

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

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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 Company 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 Company 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 and the acquisition of a subsidiary, the tax effect is included in the accounting for the business combination and investments in a subsidiary.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’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.

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

25 -

26 -

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 378	$ 479
Checking accounts and demand deposits	1,548,528	1,217,903
Cash equivalents (investments with original maturities of less than three months)
Time deposits	300,000	978,384
Repurchase agreements collateralized by bonds	150,000	100,000
	$ 1,998,906	$ 2,296,766

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

	December 31
	2025	2024
Demand deposits	0.005%-3.35%	0.001%-3.76%
Time deposits	1.65%	1.5%-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 at FVTPL - 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
Domestic listed shares	-	43,000
Hybrid financial assets
Convertible bonds	17,353	17,550
	17,353	60,550
	$ 17,353	$ 61,965
Financial liabilities at FVTPL - 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 exchange 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 exchange currency options	USD/NTD	2025.01.03-2025.02.05	USD7,000/NTD225,900

The Company entered into foreign exchange forward contracts and exchange contracts during the years ended December 31, 2025 and 2024 to manage exposures 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
Foreign investments
Unlisted shares	3,903	6,422
	$ 38,079	$ 96,392

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 Company's strategy of holding these investments for long-term purposes.

In 2025, the Company 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 Company's subsidiary, TXC (Ningbo) Corporation, 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.

28 -

9. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Current
Domestic investments
Pledge deposits (a)	$ 64,016	$ 78,674
Pledge time deposits (a and b)	40,000	-
	$ 104,016	$ 78,674

a. Refer to Note 27 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%.

10. ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

	December 31
	2025	2024
Trade receivables (including related parties)
At amortized cost
Gross carrying amount	$ 2,855,280	$ 3,064,469
Less: Allowance for impairment loss	(9,371)	(9,371)
	$ 2,845,909	$ 3,055,098
Other receivables
Tax refund receivable	$ 27,470	$ 29,846
Others	27,644	30,462
	$ 55,114	$ 60,308

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 Company 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 Company's credit risk was significantly reduced.

The Company 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 Company'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 Company's different customer base. The Company recognizes 100% loss allowance for trade receivables of greater than 120 days past due and unsecured.

The Company 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 Company 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 trade receivables based on the Company'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	0.34%	0.02%-0.66%	9.09%-13.64%	100%	100%
Gross carrying amount	$ 2,719,090	$ 135,732	$ 458	$ -	$ -	$ 2,855,280
Loss allowance (Lifetime ECL)	(9,247)	(62)	(62)	-	-	(9,371)
Amortized cost	$ 2,709,843	$ 135,670	$ 396	$ -	$ -	$ 2,845,909

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	0.32%	0.02%-0.66%	100%	100%	100%
Gross carrying amount	$ 2,893,421	$ 171,048	$ -	$ -	$ -	$ 3,064,469
Loss allowance (Lifetime ECL)	(9,324)	(47)	-	-	-	(9,371)
Amortized cost	$ 2,884,097	$ 171,001	$ -	$ -	$ -	$ 3,055,098

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

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 9,371	$ 10,053
Less: Amounts written off	-	(682)
Balance on December 31	$ 9,371	$ 9,371

11. INVENTORIES

	December 31
	2025	2024
Finished goods	$ 261,647	$ 269,942
Work in process	475,200	391,022
Raw materials	274,378	324,394
Supplies and spare parts	105,992	112,410
Merchandise	344,001	394,739
Inventory in transit	28,332	11,146
	$ 1,489,550	$ 1,503,653

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 was $7,780,915 thousand and $7,672,257 thousand, respectively. The cost of goods sold for the 2025 and 2024 included inventory write-downs of $9,963 thousand and $8,644 thousand, respectively.

30 -

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in subsidiaries	$ 9,693,053	$ 9,158,579
Investments in associates	424,120	428,728
	$ 10,117,173	$ 9,587,307
Investments in Subsidiaries
	December 31
	2025	2024
Unlisted companies
Taiwan Crystal Technology International Limited	$ 9,419,443	$ 8,879,763
TXC Technology Inc.	22,254	24,078
TXC Japan Corporation	28,989	31,865
Taiwan Crystal Technology (HK) Limited	204,048	209,731
TXC Europe GmbH	18,319	13,142
	$ 9,693,053	$ 9,158,579

The proportion of the Company's ownership was as follows:

	December 31
	2025	2024
Unlisted shares
Taiwan Crystal Technology International Ltd.	100	100
TXC Technology Inc.	100	100
TXC Japan Corporation	100	100
Taiwan Crystal Technology (HK) Limited	100	100
TXC Europe GmbH	100	100

Investments in Associates

	December 31
	2025	2024
Associate that is not individually material	$ 424,120	$ 428,728
	For the Year Ended December 31
	2025	2024
The Company's share of:
Profit from continuing operations	$ 20,925	$ 30,280
Other comprehensive income (loss)	(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.

13. PROPERTY, PLANT AND EQUIPMENT

	Freehold Land	Land Improvements	Buildings	Machinery and Equipment	Transportation Equipment	Office Equipment	Total
Cost
Balance on January 1, 2024	$ 621,855	$ 3,024	$ 1,632,809	$ 4,714,693	$ 1,610	$ 122,374	$ 7,096,365
Additions	-	-	117,545	253,235	-	38,268	409,048
Disposals	-	-	(3,684)	(156,138)	-	(4,114)	(163,936)
Balance on December 31, 2024	$ 621,855	$ 3,024	$ 1,746,670	$ 4,811,790	$ 1,610	$ 156,528	$ 7,341,477
Accumulated depreciation and impairment
Balance on January 1, 2024	$ -	$ 1,899	$ 806,310	$ 3,604,626	$ 758	$ 100,583	$ 4,514,176
Disposals	-	-	(3,684)	(152,210)	-	(4,114)	(160,008)
Depreciation expenses	-	312	67,755	425,514	173	11,006	504,760
Balance on December 31, 2024	$ -	$ 2,211	$ 870,381	$ 3,877,930	$ 931	$ 107,475	$ 4,858,928
Carrying amount on December 31, 2024	$ 621,855	$ 813	$ 876,289	$ 933,860	$ 679	$ 49,053	$ 2,482,549
Cost
Balance on January 1, 2025	$ 621,855	$ 3,024	$ 1,746,670	$ 4,811,790	$ 1,610	$ 156,528	$ 7,341,477
Additions	-	-	293,637	121,298	-	10,605	425,540
Disposals	-	(1,599)	(21,887)	(143,724)	-	(5,041)	(172,251)
Reclassification from prepayments for equipment	-	-	-	296,200	-	-	296,200
Balance on December 31, 2025	$ 621,855	$ 1,425	$ 2,018,420	$ 5,085,564	$ 1,610	$ 162,092	$ 7,890,966
Accumulated depreciation and impairment
Balance on January 1, 2025	$ -	$ 2,211	$ 870,381	$ 3,877,930	$ 931	$ 107,475	$ 4,858,928
Disposals	-	(1,599)	(21,887)	(140,221)	-	(5,041)	(168,748)
Depreciation expenses	-	213	80,049	398,585	173	12,593	491,613
Balance on December 31, 2025	$ -	$ 825	$ 928,543	$ 4,136,294	$ 1,104	$ 115,027	$ 5,181,793
Carrying amount on December 31, 2025	$ 621,855	$ 600	$ 1,089,877	$ 949,270	$ 506	$ 47,065	$ 2,709,173

There was no impairment assessment was performed for the years ended December 31, 2025 and 2024 as there was no indication of impairment.

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	2-10 years
Temperature control systems	4-7 years
Transportation equipments	4-7 years
Transportation equipments	5 years
Office equipments	2-8 years

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amounts
Buildings	$ 3,858	$ 6,430
Transportation equipment	2,510	4,872
	$ 6,368	$ 11,302
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ -	$ 11,923
Depreciation charge for right-of-use assets
Buildings	$ 2,572	$ 2,595
Transportation equipment	2,362	1,894
	$ 4,934	$ 4,489

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 4,697	$ 4,896
Non-current	1,814	6,511
	$ 6,511	$ 11,407

Range of discount rates for lease liabilities was as follows:

	December 31
	2025	2024
Buildings	2.49%	2.49%
Transportation equipment	3.00%-3.14%	3.00%-3.14%

c. Material leasing activities and terms

The Company leases certain warehouses in economic zone with lease term of 3 years, and leases car for business use with lease term of 3 years. The Company does not have a bargain purchase option to acquire the leased warehouse at the expire of the lease period.

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	$ (5,532)	$ (5,013)

The Company's leases of certain building qualify as short-term leases. The Company 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 on January 1, 2024	$ 28,577
Additions	-
Disposals	-
Balance on December 31, 2024	$ 28,577
Accumulated depreciation and impairment
Balance on January 1, 2024	$ (11,352)
Disposals	-
Depreciation expenses	(1,259)
Balance on December 31, 2024	$ (12,611)
Carrying amounts on December 31, 2024	$ 15,966
Cost
Balance on January 1, 2025	$ 28,577
Disposals	(783)
Balance on December 31, 2025	$ 27,794
Accumulated depreciation and impairment
Balance on January 1, 2025	$ (12,611)
Disposals	783
Depreciation expenses	(1,221)
Balance on December 31, 2025	$ (13,049)
Carrying amounts on December 31, 2025	$ 14,745

The investment properties are depreciated using the straight-line method over their estimated useful lives of 3-51 years.

The fair value of the Company’s investment properties as of December 31, 2025 and 2024 was $78,482 thousand and $88,212 thousand, respectively. The determination of fair value valuation had not been performed by independent qualified professional valuers; however, the management of the Company had 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 Company’s investment properties were freehold properties.

16. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Bank borrowings	$ 251,504	$ -

The range of interest rates on bank loans was 4.40%-4.48% per annum on December 31, 2025.

b. Long-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 833,333	$ 952,666
Less: Current portions	(33,333)	(419,333)
Long-term borrowings	$ 800,000	$ 533,333
Detail of borrowings
Annual interest rate	0.98%-1.77%	0.98%-1.79%
Maturity date	Due by September 2027	Due by August 2026

35 -

17. 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	41,223	43,106
Payables for bonuses	199,362	190,227
Payables for annual leave	31,506	31,146
Payables for purchases of equipment	48,914	31,598
Others	93,220	94,124
	$ 700,409	$ 692,348

18. 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, the Company makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

The Company has set up appointed manager's pension fund and contributes monthly an amount of not less than 8% of the appointed manager's monthly salaries and wages to the Bank of Taiwan.

b. Defined benefit plans

The defined benefit plans adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes 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 Company 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 Company 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 Company has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Company's defined benefit plans are as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ -	$ 73,551
Fair value of plan assets	-	(78,778)
Net defined benefit (assets) 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	-
Receipt of plan assets	-	20,765	20,765
Balance at 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 Company 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 and 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 plans for the next year	$ -	$ 2,052
Average duration of the defined benefit obligation	-	9.1 years

38 -

19. 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 a 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, 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 the distribution of dividends and bonuses to shareholders.

For the policies on the distribution of compensation of employees and remuneration of directors as stipulated in the Articles of Incorporation, refer to compensation of employees and remuneration of directors in Note 21(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 deficit. 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 by 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 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 loss - equity instruments	6,027	(74,943)
Share from subsidiaries and associates accounted for using the equity method	48,596	87,675
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

e. Treasury shares

Purpose of Buy-Back	Shares Transferred to Employees (In Thousands of Shares)
Number of shares on January 1, 2025	-
Additions	3,000
Number of shares on 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.

20. REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from sale of goods	$ 9,812,882	$ 9,821,044
Contract Balances
	December 31, 2025	December 31, 2024
Trade receivables (Note 10)	$ 2,845,909	$ 3,055,098

21. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations attributable to:

a. Interest income

	For the Year Ended December 31
	2025	2024
Bank deposits	$ 31,445	$ 34,072
Financial assets at amortized cost	-	725
Others	5,735	9,635
	$ 37,180	$ 44,432

b. Other income

	For the Year Ended December 31
	2025	2024
Rental income	$ 6,220	$ 6,079
Dividends	1,072	4,651
Income from government grants	1,029	10,944
Equipment procurement project	37,914	-
Others	5,089	5,269
	$ 51,324	$ 26,943

c. Other gains and losses

	For the Year Ended December 31
	2025	2024
Gain on disposal of property, plant and equipment	$ 885	$ 2,200
Fair value changes of financial assets and financial liabilities
Financial assets mandatorily at FVTPL	(1,581)	5,103
Net foreign exchange gains	(31,761)	188,689
Depreciation of investment properties	(1,221)	(1,259)
Others	(4,148)	(442)
	$ (37,826)	$ 194,291

d. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 35,803	$ 31,955
Interest on convertible bonds	-	6,022
Interest on lease liabilities	240	229
	$ 36,043	$ 38,206

e. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
Property, plant and equipment	$ 491,613	$ 504,760
Investment properties	1,221	1,259
Right-of-use assets	4,934	4,489
Intangible assets	7,498	10,821
	$ 505,266	$ 521,329
		(Continued)

43 -

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 280,555	$ 295,462
Operating expenses	215,992	213,787
Non-operating expenses	1,221	1,259
	$ 497,768	$ 510,508
An analysis of amortization by function
Operating costs	$ 1,560	$ 47
Operating expenses	5,938	10,774
	$ 7,498	$ 10,821
		(Concluded)

f. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Post-employment benefits
Defined contribution plans	$ 30,101	$ 29,753
Defined benefit plans (Note 18)	627	2,511
	30,728	32,264
Other employee benefits
Payroll expense	1,038,759	1,097,808
Labor and health insurance	78,389	76,983
Others	34,307	30,455
	1,151,455	1,205,246
Total employee benefits expense	$ 1,182,183	$ 1,237,510
An analysis of employee benefits expense by function
Operating costs	$ 624,682	$ 658,529
Operating expenses	557,501	578,981
	$ 1,182,183	$ 1,237,510

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

If there is a change in the amounts after the annual parent company only financial statements were 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 parent company only financial statements for the years ended December 31, 2024 and 2023.

Information on the compensation of employees and remuneration of directors resolved by the Company's board of directors for 2025 and 2024 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

22. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 197,827	$ 225,552
Income tax on unappropriated earnings	7,750	-
Adjustments for prior year	(12,767)	(15,022)
	192,810	210,530
Deferred tax
In respect of the current year	10,405	51,442
Income tax expense recognized in profit or loss	$ 203,215	$ 261,972

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

	For the Year Ended December 31
	2025	2024
Profit before tax from continuing operations	$ 2,007,749	$ 2,399,387
Income tax expense calculated at the statutory rate	$ 401,550	$ 479,877
Nondeductible expenses in determining taxable income	(3,578)	799
Income tax on unappropriated earnings	7,750	-
Tax-exempt income	(233,322)	(254,252)
Deferred tax effect on earnings of subsidiaries	96,465	101,530
Investment tax credits	(52,883)	(50,960)
Adjustment for prior years’ tax	(12,767)	(15,022)
Income tax expense recognized in profit or loss	$ 203,215	$ 261,972

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 income tax assets and liabilities

	December 31
	2025	2024
Current tax assets
Income tax refund receivable	$ 78,982	$ 78,982
Current tax liabilities
Income tax payable	$ 21,751	$ 49,629

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 Compre-hensive Income	Closing Balance
Deferred tax assets
Unrealized loss on inventories	$ 6,816	$ 51	$ -	$ 6,867
Payable for annual leave	6,228	73	-	6,301
				(Continued)

	Opening Balance	Recognize in Profit or Loss	Recognize in Other Compre-hensive Income	Closing Balance
Determine benefit obligation	$ 1,317	$ (46)	$ (1,271)	$ -
Financial liabilities at fair value through profit or loss	910	(811)	-	99
Others	8,112	(5,465)	-	2,647
	$ 23,383	$ (6,198)	$ (1,271)	$ 15,914
Deferred tax liabilities
Subsidiaries and associates	$ 98,456	$ 6,088	$ -	$ 104,544
Unrealized exchange profit	9,910	(1,598)	-	8,312
Determine benefit obligation	-	-	1,791	1,791
Financial liabilities at fair value through profit or loss	283	(283)	-	-
	$ 108,649	$ 4,207	$ 1,791	$ 114,647
				(Concluded)

For the year ended December 31, 2024

	Opening Balance	Recognize in Profit or Loss	Recognize in Other Compre-hensive Income	Closing Balance
Deferred tax assets
Unrealized loss on inventories	$ 7,819	$ (1,003)	$ -	$ 6,816
Unrealized exchange loss	16,235	(16,235)	-	-
Payable for annual leave	6,214	14	-	6,228
Determine benefit obligation	6,384	(990)	(4,077)	1,317
Financial liabilities at fair value through profit or loss	4,950	(4,040)	-	910
Others	6,144	1,968	-	8,112
	$ 47,746	$ (20,286)	$ (4,077)	$ 23,383
Deferred tax liabilities
Subsidiaries and associates	$ 77,493	$ 20,963	$ -	$ 98,456
Unrealized exchange profit	-	9,910	-	9,910
Financial liabilities at fair value through profit or loss	-	283	-	283
	$ 77,493	$ 31,156	$ -	$ 108,649

e. Income tax assessments

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

23. 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
Earnings used in the computation of basic earnings per share	$ 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

Number of Shares

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares used 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 Company may settle the compensation of employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

24. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company 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 Company 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 Company is not subject to any externally imposed capital requirements.

47 -

48 -

25. 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 parent company only 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
Convertible bonds	$ 17,353	$ -	$ -	$ 17,353
Financial assets at FVTOCI
Investments in equity instruments
Domestic unlisted shares	$ -	$ -	$ 34,176	$ 34,176
Foreign unlisted shares	-	-	3,903	3,903
	$ -	$ -	$ 38,079	$ 38,079
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
Convertible bonds	17,550	-	-	17,550
	$ 60,550	$ 1,415	$ -	$ 61,965
Financial assets at FVTOCI
Investments in equity instruments
Domestic listed shares	$ 40,678	$ -	$ -	$ 40,678
Domestic unlisted shares	-	-	49,292	49,292
Foreign unlisted shares	-	-	6,422	6,422
	$ 40,678	$ -	$ 55,714	$ 96,392

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

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

For the year ended December 31, 2025

	Financial Assets at FVTOCI
	Equity Instruments
Balance on January 1, 2025	$ 55,714
Recognized in other comprehensive income (included in unrealized valuation gain (loss) on financial assets at FVTOCI)	(17,635)
Balance on December 31, 2025	$ 38,079
For the year ended December 31, 2024
	Financial Assets at FVTOCI
	Equity Instruments
Balance on January 1, 2024	$ 98,491
Recognized in other comprehensive income (included in unrealized valuation gain (loss) on financial assets at FVTOCI)	(42,777)
Balance on December 31, 2024	$ 55,714

3) Valuation techniques and inputs applied for the purpose of measuring 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.

4) Valuation techniques and inputs applied for the purpose of measuring 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.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
FVTPL
Mandatorily at FVTPL (1)	$ 17,353	$ 61,965
Financial assets at amortized cost (2)	5,007,434	5,495,504
Financial assets at FVTOCI
Equity instruments	38,079	96,392
Financial liabilities
FVTPL
Mandatorily as FVTPL (3)	274	-
Amortized cost (4)	3,554,839	3,347,259

1) The balances include foreign exchange forward contracts and exchange contracts, domestic listed shares and investment of equity instruments.

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

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

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

d. Financial risk management objectives and policies

The Company’s major financial instruments include equity and debt investments, trade receivables, other receivables, trade payables, other payables and borrowings. The Company’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 Company 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 Company seek to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Company’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 Company did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

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

50 -

51 -

1) Market risk

The Company’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 Company 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 Company’s foreign currency monetary.

There has been no change to the Company’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 Company to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilizing foreign exchange forward contracts.

The carrying amounts of the Company’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 31.

Sensitivity analysis

The Company is mainly exposed to the USD, JPY and RMB.

The following table details the Company’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 Company 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.

	Profit or Loss
	2025	2024
USD impact (i)	$ 14,416	$ 23,306
JPY impact (ii)	(430)	(72)
RMB impact (iii)	(3,071)	(2,903)

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

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

iii. The result was mainly attributable to the exposure on outstanding monetary items in RMB that were not hedged at the end of the year.

b) Interest rate risk

The Company is exposed to interest rate risk because the Company deposits and borrow funds at floating interest rates.

The carrying amount of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the year were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 490,000	$ 1,078,384
Financial liabilities	251,504	36,000
Cash flow interest rate risk
Financial assets	1,612,544	1,296,577
Financial liabilities	833,333	916,666

Sensitivity analysis

The sensitivity analysis below was determined based on the Company’s exposure to interest rates for both derivatives 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 Company’s pre-tax profit for the years ended December 31, 2025 and 2024 would increased/(decreased) by $1,948 thousand and $950 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 Company. At the end of the year, the Company’s maximum exposure to credit risk, which would cause a financial loss to the Company due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Company, 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 Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’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.

The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Company had available unutilized short-term bank loan facilities of approximately $5,865,163 thousand and $6,747,333 thousand, respectively.

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

The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed upon repayment periods. The tables has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company 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 extend that interest flows are at floating rate, the undiscounted amount was derived from the interest rate curve at the end of the year.

December 31, 2025

	Weighted Interest Average Effective Interest Rate (%)	Less than 1 Year	2-3 Years	4-5 Years	5+ Years	Total
Non-derivative financial liabilities
Trade payables	-	$ 1,733,339	$ -	$ -	$ -	$ 1,733,339
Other payables	-	701,602	-	-	-	701,602
Lease liabilities	2.49-3.14	4,697	1,814	-	-	6,511
Variable interest rate liabilities	0.98-1.77	33,333	800,000	-	-	833,333
Fixed interest rate liabilities	4.40-4.48	251,504	-	-	-	251,504

December 31, 2024

	Weighted Interest Average Effective Interest Rate (%)	Less than 1 Year	2-3 Years	4-5 Years	5+ Years	Total
Non-derivative financial liabilities
Trade payables	-	$ 1,646,109	$ -	$ -	$ -	$ 1,646,109
Other payables	-	709,200	-	-	-	709,200
Lease liabilities	2.49-3.14	4,896	6,511	-	-	11,407
Variable interest rate liabilities	0.98-1.79	383,333	533,333	-	-	916,666
Fixed interest rate liabilities	1.225	36,000	-	-	-	36,000

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 year.

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

The following table details the Company’s liquidity analysis for its derivative financial instruments. The table was 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	$ -	$ -	$ -

26. TRANSACTIONS WITH RELATED PARTY

Details of transactions between the Company and related parties are disclosed as follows.

a. Related party name and category

Related Party Name	Related Party Category
Tai-Shing Electronics Components Corporation	Associate
EcLife Co., Ltd.	Other associate
LFC (Ningbo) Semiconductor Limited	Other associate
TXC (Ningbo) Corporation	Subsidiary
TXC (Chongqing) Corporation	Subsidiary
Ningbo Beilun Jingyu Trading Corporation	Subsidiary
TETC CORP. NINGBO	Subsidiary
Shanghai JCH Co., Ltd.	Subsidiary
TXC Technology, Inc.	Subsidiary
Taiwan Crystal Technology (HK) Limited	Subsidiary
TXC Japan Corporation	Subsidiary
TXC Europe GmbH	Subsidiary
PT TXC Technology Indonesia	Subsidiary

b. Sales of goods

Line Item	Related Party Category	For the Year Ended December 31
		2025	2024
Sales	Subsidiaries	$ 1,250,385	$ 1,145,867
	Associates	27,244	28,560
	Other associates	6,944	5,823
		$ 1,284,573	$ 1,180,250

In 2025 and 2024, the selling price and purchasing price were not significantly different from those with third parties, except those for NGB, CKG, TETC, TXC Technology, TCTH, TXC JP and TXC EU whose trading price depends on its function within the Company.

c. Purchases of goods

Related Party Category	For the Year Ended December 31
	2025	2024
Subsidiaries
TXC (Ningbo) Corporation	$ 2,417,019	$ 2,491,061
TXC (Chongqing) Corporation	1,348,205	1,388,616
Others	561,949	526,938
	4,327,173	4,406,615
Associates	183	-
Other associates	164	417
	$ 4,327,520	$ 4,407,032

In 2025 and 2024, the selling price and purchasing price were not significantly different from those with third parties, except those for NGB, CKG, TETC, Ningbo Jingyu, TXC Technology, TCTH, TXC JP and PT TXC whose trading price depends on its function within the Company.

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
Subsidiaries
TXC Technology, Inc.	$ 67,374	$ 61,653
TXC Japan Corporation	26,271	27,997
TXC Europe GmbH	13,722	12,852
	107,367	102,502
Other associates	1,973	1,587
	$ 109,340	$ 104,089

The consulting fee above is due to the Company's part of business activities committed to the related parties.

f. Rental revenue

	For the Year Ended December 31
			2025		2024
Related Party	Location	Rent Collection	Amount	% to Total Account Balance	Amount	% to Total Account Balance
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	-

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

Related Party Category	December 31
	2025	2024
Subsidiaries
TXC (Ningbo) Corporation	$ 239,634	$ 268,868
TETC Corp. Ningbo	48,185	66,620
Others	11,670	7,544
	299,489	343,032
Associates	7,901	7,590
Other associates	2,551	1,159
Less: Allowance for impairment loss	(68)	(68)
	$ 309,873	$ 351,713

The outstanding accounts receivable from related parties are unsecured.

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

Related Party Category	December 31
	2025	2024
Subsidiaries
TXC (Ningbo) Corporation	$ 611,867	$ 650,476
TXC (Chongqing) Corporation	367,807	331,936
TETC Corp. Ningbo	108,099	114,567
Others	52,590	3,134
	1,140,363	1,100,113
Other associates	11	19
	$ 1,140,374	$ 1,100,132

The outstanding trade payables to related parties are unsecured.

i. Other receivables from related parties

Related Party Category	December 31
	2025	2024
Subsidiaries
TXC (Ningbo) Corporation	$ -	$ 1,072
Other associates	9	14
	$ 9	$ 1,086

Other receivables resulted from purchasing machinery and equipment on behalf of subsidiaries.

j. Other payables to related parties

Related Party Category	December 31
	2025	2024
Subsidiaries	$ 3	$ 35
Other associates	1,190	16,817
	$ 1,193	$ 16,852

The credit period of the transaction above is similar to those for the third parties.

k. Prepayments for equipment

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

l. Acquisitions for property, plant and equipment

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

m. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 70,038	$ 81,706
Post-employment benefits	324	585
	$ 70,362	$ 82,291

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

58 -

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for foreign exchange forward contracts:

	December 31
	2025	2024
Pledged deposits	$ 64,016	$ 78,674
Pledged time deposits	40,000	-
	$ 104,016	$ 78,674

28. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant contingencies and unrecognized commitments of the Company at December 31, 2025 were as follows:

As of December 31, 2025, the Company unrecognized commitments are as follows:

In Thousands of Foreign Currencies/New Taiwan Dollars

	Contract Amount	Paid Amount	Unpaid Amount
Acquisition of machinery and equipment	$ 137,800	$ 111,325	$ 26,475
Acquisition of machinery and equipment	RMB 98	RMB 39	RMB 59
Acquisition of machinery and equipment	USD 154	USD 154	USD -

29. 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 $48 per share, with a total transaction amount of approximately $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.

59 -

30. 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 sill not be the entity subject to carbon fees.

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 88,785	31.438 (USD:NTD)	$ 2,791,223
JPY	1,343,745	0.2008 (JPY:NTD)	269,824
RMB	14,126	4.4727 (RMB:NTD)	63,181
Non-monetary items
Investments accounted for using the equity method
USD	7,198	31.438 (USD:NTD)	226,301
JPY	144,368	0.2008 (JPY:NTD)	28,989
RMB	2,120,151	4.4727 (RMB:NTD)	9,419,444
EUR	496	36.8988 (EUR:NTD)	18,319
Financial liabilities
Monetary items
USD	42,930	31.438 (USD:NTD)	1,349,633
JPY	1,557,936	0.2008 (JPY:NTD)	312,834
RMB	82,796	4.4727 (RMB:NTD)	370,322

December 31, 2024

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 103,188	32.7810 (USD:NTD)	$ 3,382,606
JPY	1,353,397	0.2098 (JPY:NTD)	283,943
RMB	9,393	4.5603 (RMB:NTD)	42,835
Non-monetary items
Investments accounted for using the equity method
USD	7,132	32.7810 (USD:NTD)	233,809
JPY	151,882	0.2098 (JPY:NTD)	31,865
RMB	1,947,188	4.5603 (RMB:NTD)	8,879,763
EUR	385	34.1316 (EUR:NTD)	13,142
Financial liabilities
Monetary items
USD	32,093	32.7810 (USD:NTD)	1,052,041
JPY	1,387,877	0.2098 (JPY:NTD)	291,177
RMB	73,056	4.5603 (RMB:NTD)	333,157

For the years ended December 31, 2025 and 2024, realized and unrealized net foreign exchange gains or losses were $(31,761) thousand and $188,689 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 Company.

33. 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)

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 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.

61 -

TABLE 1

TXC CORPORATION

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	Shares	December 31, 2025
					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 wealth management 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 wealth management 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 wealth management 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 wealth management 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 wealth management 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	None	"	RMB 10,257	45,877	-	45,877

TABLE 2

TXC CORPORATION

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING AT LEAST NT$100 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

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	Actions 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

INFORMATION ON INVESTEES

FOR THE YEAR ENDED 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 (Losses) of the Investee	Share of Profit (Loss)
				December 31, 2025	December 31, 2024	Shares (In Thousands)	Percentage of Ownership	Carrying Amount
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

INFORMATION ON INVESTMENT 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 Investment 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 Dingsen 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

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		Notes/Accounts Receivable (Payable)		Unrealized (Gain) Loss
			Amount	%		Payment Term	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.
Financings directly or indirectly provided to the investees: None.
Other transactions that significantly impacted the current year's profit or loss or financial position: None.

TXC CORPORATION

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item	Statement Index
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents	Statement 1
Statement of financial assets at fair value through profit or loss - non-current	Table 1
Statement of notes receivable	Note 10
Statement of trade receivables	Statement 2
Statement of other receivables	Note 10
Statement of inventories	Statement 3
Statement of changes in financial assets at fair value through other comprehensive income - non-current	Statement 4
Statement of changes in investments accounted for using the equity method	Statement 5
Statement of changes in property, plant and equipment	Note 13
Statement of changes in accumulated depreciation of property, plant and equipment	Note 13
Statement of changes in accumulated impairment of property, plant and equipment	Note 13
Statement of changes in investment properties	Note 15
Statement of changes in accumulated depreciation of investment properties	Note 15
Statement of deferred income tax assets	Note 22
Statement of financial liabilities at fair value through profit or loss - current	Note 7
Statement of trade payables	Statement 6
Statement of other payables	Note 17
Statement of long-term loans	Statement 7
Statement of deferred income tax liabilities	Note 22
Major Accounting Items in Profit or Loss
Statement of net revenue	Statement 8
Statement of cost of goods sold	Statement 9
Statement of manufacturing expenses	Statement 10
Statement of operating expenses	Statement 11
Statement of other gain and losses	Note 21
Statement of finance costs	Note 21
Statement of labor, depreciation and amortization by function	Statement 12

68 -

STATEMENT 1

TXC CORPORATION

CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, and Foreign Currencies)

Item		Amount
Cash
Cash on hand	Including USD1 thousand @31.438; JPY152 thousand @0.2008; HKD2 thousand @4.039; and SGD3 thousand @24.4435; EUR3 thousand @36.8988; RMB3 thousand @4.4727	$ 378
Cash in banks
Checking accounts and demand deposits		1,275,945
Foreign-currency deposits	Including USD328 thousand @31.438; RMB682 thousand @4.4727; EUR204 thousand @36.8988; HKD2 thousand @4.039; and JPY1,273,365 thousand @0.2008	272,583
Time deposits		300,000
Cash equivalents		150,000
		$ 1,998,906

STATEMENT 2

TXC CORPORATION

TRADE RECEIVABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Explanation	Amount
Related parties
TXC (Ningbo) Corporation	For goods	$ 239,634
TXC (Chongqing) Corporation	"	6,682
Tai-Shing Electronics Components Corporation	"	7,901
TETC CORP. Ningbo	"	48,185
TXC Japan Corporation	"	286
TXC Europe GmbH	"	4,702
EcLife Co., Ltd.	"	2,551
		309,941
Less: Allowance for impairment loss		(68)
		$ 309,873
Third parties
A Company	For goods	$ 203,488
B Company	"	195,813
C Company	"	131,560
Others (Note)	"	2,014,478
		2,545,339
Less: Allowance for impairment loss		(9,303)
		$ 2,536,036

Note: Each of the accounts was less than 5% of the total account balance.

STATEMENT 3

TXC CORPORATION

INVENTORIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Cost	Market Value (Note)
Raw materials	$ 277,235	$ 274,378
Supplies and spare parts	106,625	105,992
Work in process	479,494	475,200
Finished goods	287,047	261,647
Merchandise	345,148	344,001
Goods in transit	28,332	28,332
	1,523,881	$ 1,489,550
Less: Allowance for loss	(34,331)
	$ 1,489,550

Note: The Company's determination of market value is as follows:

Raw materials, supplies and spare parts, merchandise, work in progress, and finished goods: Stated at net realizable value.

STATEMENT 4

TXC CORPORATION

CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars and Shares)

	Beginning Balance		Remeasure	Increase		Decrease		Ending Balance			Pledge or Security
	Shares	Amount		Shares	Amount	Shares	Amount	Shares	% of Ownership	Amount
Listed shares
Win Win Precision Technology Co., Ltd.	1,788	$ 40,678	$ 23,662	-	$ -	1,788	$ 64,340	-		$ -	None
Unlisted shares
Godsmith Sensor Inc.	800	3,201	(568)	-	-	-	-	800	4	2,633	〃
Gallopwave Inc.	6,250	20,179	(9,263)	-	-	-	-	6,250	8	10,916	〃
RFIC Technology Corporation	3,334	25,912	(5,285)	-	-	-	-	3,334	12	20,627	〃
Stathera IP Holdings Inc.	65	6,422	(2,519)	-	-	-	-	65	1	3,903	〃
		55,714	(17,635)		-		-			38,079
		$ 96,392	$ 6,027		$ -		$ 64,340			$ 38,079

STATEMENT 5

TXC CORPORATION

CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars and Shares)

	Beginning Balance		Increase		Decrease		Equity in Investors Gain (Loss)	Ending Balance			Market Price or Net Asset Value		Valuation Method	Pledge or Security
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	% of Ownership	Amount	Unit Price	Amount (Note)
Unlisted company
Taiwan Crystal Technology International Ltd.	42,835	$ 8,879,763	-	$ -	-	$ 451,880	$ 991,560	42,835	100.00	$ 9,419,443	-	$ 9,419,443	Equity method	None
TXC Technology Inc.	300	24,078	-	-	-	-	(1,824)	300	100.00	22,254	-	22,254	Equity method	None
TXC Japan Corporation	2	31,865	-	-	-	-	(2,876)	2	100.00	28,989	-	28,989	Equity method	None
Taiwan Crystal Technology (HK) Limited	80	209,731	-	-	-	-	(5,683)	80	100.00	204,048	-	204,048	Equity method	None
Tai-Song Electronics Components Corporation	8,802	428,728	-	-	-	22,006	17,398	8,802	33.34	424,120	40.8	424,120	Equity method	None
TXC Europe GmbH	50	13,142	-	-	-	-	5,177	50	100.00	18,319	-	18,319	Equity method	None
		$ 9,587,307		$ -		$ 473,886	$ 1,003,752			$ 10,117,173		$ 10,117,173

Note: All the above are unlisted company which do not have market price to evaluated.

STATEMENT 6

TXC CORPORATION

ACCOUNTS PAYABLE

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Explanation	Amount
Related parties
TXC (Ningbo) Corporation	Payment for goods	$ 611,867
TXC (Chongqing) Corporation	"	367,807
PT TXC Technology Indonesia	"	52,590
EcLife Co., Ltd.	"	11
TETC CORP. Ningbo	"	108,099
		1,140,374
Third parties
A Corporation	Payment for goods	87,638
B Corporation	"	85,494
C Corporation	"	76,647
D Corporation	"	70,777
E Corporation	"	55,878
F Corporation	"	46,412
G Corporation	"	36,911
H Corporation	"	32,349
Others (Note)	"	100,859
		592,965
		$ 1,733,339

Note: Each of the accounts was less than 5% of the total account balance.

STATEMENT 7

TXC CORPORATION

STATEMENT OF LONG-TERM BORROWINGS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Bank Name	Description	Amount	Issuance Date	Interest Rate	Collateral
DBS Bank Limited	Credit loan	$ 300,000	2025.02.03-2027.02.03	1.68%	-
CTBC Financial Holding Co., Ltd	Credit loan	33,333	2021.08.17-2026.08.17	0.98%	-
Yuanta Commercial Bank Co., Ltd	Credit loan	500,000	2025.09.03-2027.09.03	1.77%	-
		833,333
Less: Current portions		(33,333)
		$ 800,000

STATEMENT 8

TXC CORPORATION

OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Quartz crystal products	$ 9,855,282
Less: Sales returns	24,935
Less: Sales allowances	17,465
	$ 9,812,882

76 -

STATEMENT 9

TXC CORPORATION

COST OF GOODS SOLD

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Direct materials
Beginning materials	$ 436,804
Add: Material purchase	1,117,212
Add: Unfavorable cost variance	116,818
Less: Expense	(156,456)
Less: Others	(8,780)
Ending materials	(380,370)
	1,125,228
Direct labor	296,511
Overhead	967,147
Manufacturing cost	2,388,886
Beginning work in process	391,022
Add: Purchases	426,497
Add: Others	943
Less: Expense	(57,988)
Less: Favorable cost variance	(86,701)
Ending work in process	(475,200)
Finished goods cost	2,587,459
Beginning finished goods	269,942
Add: Unfavorable cost variance	29,718
Less: Expense	(9,744)
Less: Others	(143)
Ending finished goods	(261,647)
Production cost	2,615,585
Beginning merchandise inventory	394,739
Add: Purchase	5,091,391
Add: Unfavorable cost variance	14,591
Less: Expense	(1,131)
Less: Others	(65)
Ending merchandise inventory	(344,001)
Purchase cost	5,155,524
Loss on physical inventory	9,806
	$ 7,780,915

STATEMENT 10

TXC CORPORATION

OVERHEAD EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Explanation	Amount
Indirect labor	Including salary and wages, pension, food stipend, employee benefits and insurance etc.	$ 327,597
Indirect materials		121,315
Depreciation		280,555
Utilities		145,012
Others		92,668
		$ 967,147

Note: Each of the accounts was less than 5% of the total account balance.

78 -

STATEMENT 11

TXC CORPORATION

OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Selling and Marketing	General and Administration	Research and Development
Salary	$ 52,079	$ 160,514	$ 297,141
Insurance	3,291	19,301	18,573
Depreciation	410	7,887	207,695
Research expense	-	-	102,747
Import and export expense	39,546	-	-
Utilities Expense	450	62	36,509
Others	165,398	78,556	32,190
	$ 261,174	$ 266,320	$ 694,855

Note: Each of the accounts was less than 5% of the total account balance.

79 -

STATEMENT 12

TXC CORPORATION

EMPLOYEE WELFARE, DEPRECIATION AND AMORTIZATION EXPENSES

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

Item	2025			2024
	Operating Cost	Operating Expense	Total	Operating Cost	Operating Expense	Total
Salaries	$ 543,644	$ 461,466	$ 1,005,110	$ 579,552	$ 478,043	$ 1,057,595
Insurance	42,825	35,564	78,389	42,444	34,539	76,983
Pension	16,110	14,618	30,728	17,253	15,011	32,264
Remuneration of directors	-	33,649	33,649	-	40,213	40,213
Other employee benefit	22,103	12,204	34,307	19,280	11,175	30,455
	$ 624,682	$ 557,501	$ 1,182,183	$ 658,529	$ 578,981	$ 1,237,510
Depreciation expenses	$ 280,555	$ 215,992	$ 496,547	$ 295,462	$ 213,787	$ 509,249
Amortization expenses	$ 1,560	$ 5,938	$ 7,498	$ 47	$ 10,774	$ 10,821

Note 1: As of December 31, 2025 and 2024, the number of employees was 949 and 989 people both with 8 directors not included in the employees.

Note 2: Information should be disclosed:

a. The average of employee benefit is $1,221 thousand in the current year. The average of employee benefit is $1,220 thousand in the previous year.
b. The average of salaries is $1,068 thousand in the current year. The average of salaries is $1,078 thousand in the previous year.
c. Change in the average of salaries adjustment rates is (0.92)%.

Note 3: The Company did not have the supervisors for the years ended December 31, 2025 and 2024. Therefore, the Company did not have the corresponding remuneration of supervisors.

Note 4: The Company and its subsidiaries set the salary scales according to the relative contribution of the employees' positions, in line with the Company's operation and development strategy, and based on their personal performance, future development potential and the Company's operation status as the basis for salary adjustment and bonus payment, so as to encourage the employees to make positive efforts and excellent performance and to achieve the "internal fairness" and "individual fairness" pursuant to the salary; and to encourage employees to deliver great performance at work, the Company allocates a certain proportion of profit-making earnings as the basis of employee dividends and shares the earnings results with colleagues, considers the benchmark enterprises of the industry, regularly checks the rationality of various salary and welfare systems by the "remuneration committee", maintains the Company's high level employee welfare, attracts outstanding talents to join and stay for a long time.

Note 5: The remuneration of directors is determined based on the Company's Articles of Incorporation. Fair remuneration is provided by considering the operation results and contributions towards company performance. President and vice presidents remuneration payment policy is based on the Company's Salary Management Rules and salary levels for that job position in the industry market, the scope of authority of that job position inside the Company and the degree of contribution toward operation targets. The procedure for setting remuneration follows evaluation and review procedures under the Company's Director and Manager Performance Evaluation Rules. In addition, the Company's overall operational performance, future industry risks and development trends, individual performance achievement rates and contribution towards company performance are also considered in order to provide a fair compensation. The fairness of related performance evaluations and remuneration are reviewed by the salary and compensation committee and board of directors. The remuneration system is discussed at appropriate time based on the actual operating conditions and with respect to related laws to achieve a balance between sustainable company operation and risk control.

AI assistant

TXC — Audit Report / Information 2025

52274_rns_2026-04-14_3b37f69d-1b94-4557-bf96-90e20576051c.pdf

TXC Corporation

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

TXC CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TXC CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TXC CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TXC CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

1. ORGANIZATION AND OPERATIONS

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

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. ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

11. INVENTORIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

16. BORROWINGS

17. OTHER LIABILITIES

18. RETIREMENT BENEFIT PLANS

19. EQUITY

20. REVENUE

21. NET PROFIT FROM CONTINUING OPERATIONS

Accrual rate

Amount

22. INCOME TAXES RELATING TO CONTINUING OPERATIONS

23. EARNINGS PER SHARE

Net Profit for the Year

Number of Shares

24. CAPITAL MANAGEMENT

25. FINANCIAL INSTRUMENTS

26. TRANSACTIONS WITH RELATED PARTY

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

28. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

29. SIGNIFICANT EVENTS AFTER REPORTING PERIOD

30. OTHER ITEMS

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

33. SEPARATELY DISCLOSED ITEMS

TXC CORPORATION

TXC CORPORATION

TXC CORPORATION

TXC CORPORATION

TXC CORPORATION

TXC CORPORATION

TXC CORPORATION

CASH AND CASH EQUIVALENTS

TXC CORPORATION

TRADE RECEIVABLES

TXC CORPORATION

INVENTORIES

TXC CORPORATION

TXC CORPORATION

TXC CORPORATION

ACCOUNTS PAYABLE

TXC CORPORATION

TXC CORPORATION

OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

TXC CORPORATION

COST OF GOODS SOLD

TXC Audit Report / Information 2025